The purpose and effect of the proposed rules will be to implement Florida Statutes regulating the conduct of slot machine operations at pari-mutuel racing facilities.

DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION
Division of Pari-Mutuel Wagering

RULE NO: RULE TITLE
61D-14.076: Electronic Card System
61D-14.077: Procedures for Electronic Fund Transfers
61D-14.078: Patron Slot Machine Gaming Accounts
PURPOSE AND EFFECT: The purpose and effect of the proposed rules will be to implement Florida Statutes regulating the conduct of slot machine operations at pari-mutuel racing facilities.
SUMMARY: The rules address the following subject matter areas: Specify allowances and requirements for player tracking system processes in the state under rule 14.076; articulate specific procedures for electronic funds transfers for patrons of facilities in the state under rule 14.077; and the requirements for the creation, maintenance and audit of patron slot machine gaming accounts under rule 14.078.
SUMMARY OF ESTIMATED REGULATORY COSTS: No Statement of Estimated Regulatory Cost was prepared.
Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.
SPECIFIC AUTHORITY: 551.103(1), 551.122 FS.
LAW IMPLEMENTED: 551.103(1)(d), (1)(e) FS.
IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE HELD AT THE DATE,TIME AND PLACE SHOWN BELOW(IF NOT REQUESTED, THIS HEARING WILL NOT BE HELD):
TIME AND DATE: October 24, 2006, 9:00 a.m. - 12:00 Noon
PLACE: Florida Department of Business and Professional Regulation, Northwood Centre, Board Room, 1940 N. Monroe Street, Tallahassee, Florida 32399.
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Mary Polombo, Clerk, Division of Pari-Mutuel Wagering, 1940 North Monroe Street, Tallahassee, Florida 32399-1035.
Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this program, please advise the Department at least 5 calendar days before the program by contacting Mary Polombo at [phone]. If you are hearing or speech impaired, please contact the agency using the Florida Dual Party Relay System by calling [phone] (Voice) or [phone] (TDD).
Written comments or suggestions on the proposed rule may be submitted to Mary Polombo, Clerk, Division of Pari-Mutuel Wagering, Department of Business and Professional Regulation, 1940 North Monroe Street, Tallahassee, Florida 32399-1035, within 21 days of this notice for inclusion in the record of this proceeding.

THE FULL TEXT OF THE PROPOSED RULE IS:

61D-14.076 Player Tracking System.

(1) Each slot machine licensee that offers the use of a card or device to its patrons for accessing funds from a patron account established under Rule 61D-14.078, F.A.C., or, uses such a card or device for tracking player history, shall include a description of this program or system as part of its internal control procedures and submit the internal control procedures to the division for approval.

(2) Any card or device referenced in (1) shall only be used for slot machine gaming at the slot machine license facility where the card or device was issued.

(3) Any activity involving a card or device referenced in (1) shall be recorded and maintained in a database that shall be available for inspection by the division or FDLE upon demand.  Information in the database shall be maintained for the time specified in Rule 61D-14.080(3)(b), F.A.C.

(4) Each card or device issued to a patron shall require at least a four digit Personal Identification Number (PIN) for use.

(5) The following errors related to the use of a card or device shall be recorded by the facility based monitoring system and a message shall be displayed by the slot machine or automatic ticket redemption machine to the patron:

(a) An invalid PIN.  This error shall cause the slot machine to prompt the patron for re-entry of the PIN.  However, the slot machine shall not allow more than three attempts to re-enter a PIN number for the card or device;

(b) Account unknown;

(c) Inactive or closed account as determined by Rule 61D-14.078(2)(g), F.A.C.; or

(d) Attempt to use a card or device that has been reported to the slot machine licensee as lost or stolen.

Statutory Authority 551.103(1), 551.122, FS.  Law Implemented 551.103(1)(d), (1)(e), FS.  History – New _______.

 

61D-14.077 Procedure for Electronic Fund Transfers.

(1)  A slot machine licensee that receives or transfers funds by wire, facsimile, electronic funds transfer, or any similar transfer shall comply with all requirements of this rule.  Any receipt or transfer of such funds shall be referred to as an Electronic Funds Transfer “EFT”.

(2)  The slot machine licensee shall establish a single transaction account for the receipt and transfer of all EFTs from, or on behalf of, patrons.

(3)  A slot machine licensee that receives or transmits an EFT shall establish a Patron Account pursuant to Rule 61D-14.078, F.A.C., for that patron at the slot machine licensee’s facility.

(4)  The slot machine licensee shall maintain internal control procedures for transmittal or receipt of EFT transactions. These internal control procedures shall include:

(a)  An anti-money laundering program; and

(b)  Identification of a program manager or other person responsible for ensuring that a procedure is implemented and administered by the slot machine licensee and monitored to maintain the following standards:

1.  Provisions for training of employees related to EFT functions within fourteen (14) days of the employee’s hire date.  No employee shall perform any function related to EFT until the employee has completed training.  Documentation of all training shall be maintained on site;

2.  Annual follow-up training for EFT employees;

3.  Ensure any contracted licensed vendor utilized by the slot machine licensee is implementing the standards of this rule, and the internal control standards of the slot machine licensee;

4.  Establish written policies and procedures for daily administration and reconciliation and monthly reconciliation of all EFT activity; and

5.  Establish a process for the slot machine license holder to maintain dual control standards and reconciliation practices when a licensed contracted vendor is utilized.

(c)  Procedures for receipt and transfer of EFT transactions shall include:

1.  Designation of licensed employees to complete EFT transactions on behalf of a patron;

2.  Recording signature and occupational license number of the slot machine licensed employee receiving and recording the information required by section;

3.  Verification of patron identification, attested by signature and inclusion of occupation license number of a designated slot machine licensee supervisor;

4.  Ensure the patron is present with the designated licensed employee during the process of receiving or sending the EFT;

5.  Maintaining an EFT Log and an EFT acknowledgement form to record notice and executions of EFT activity;

6.  Identify and verify the name, address and account information of the financial institution and the conductor of incoming EFTs; and

7.  Identify and verify the name, address and account information of the financial institution and the beneficiary for the account to which the funds will be credited.

(d)  Procedures for processing and documenting EFT reversals.  An EFT reversal occurs when an unprocessed or undepostied EFT fund is returned to the originating institution because:

1.  The transmitting financial institution, wherever located, is unable or unwilling to disclose the identity of the account or account owner from which the funds were originally transferred; or

2.  The individual designated as the recipient of the EFT funds is either unavailable at the time of the notice of EFT fund arrival or is unable to provide proper identification;

(e)  The EFT reversal procedure shall include:

1.  A log that shall contain entries of each EFT that has been reversed and that the division and the FDLE were advised of the reversal;

2.  A process for dual control standards and reconciliation controls when a contracted vendor administers EFT transactions;

3.  A process to comply with the criteria for mandatory filing of a Suspicious Activity Report by Casinos and Card Clubs, FinCEN Form 102 (April 2003), 31 United States Code 5318(g);

4.  Immediate notification of FDLE in their on site office in any instance when funds are immediately returned to the sending institution; and

5.  Documentation of a reversal shall meet all the conditions of this section.

Statutory Authority 551.103(1), 551.122, FS.  Law Implemented 551.103(1)(d), (1)(e), FS.  History – New _______.

 

61D-14.078 Patron Slot Machine Gaming Accounts.

(1) A slot machine licensee shall only establish wagering accounts for its patrons who are real persons.  Controls for such wagering accounts (Patron Accounts) shall be included within the slot machine licensee’s system of internal controls.

(2) The system of internal controls for Patron Accounts shall include procedures for the following:

(a) Verification of the identity of the patron by a form of identification required by Rule 61D-14.010, F.A.C.;

(b) Retention of a copy of the form of identification produced by the patron and a current photograph of the patron;

(c) Maintenance of the current street and mailing address and telephone number of the patron;

(d) Determination that the patron is not in the slot machine licensee’s database of excluded patrons maintained pursuant to Rule 61D-14.020, F.A.C.;

(e) Establishment of a signature file under the slot machine licensee’s internal control procedures pursuant to Rule 61D-14.058(7), F.A.C.;

(f) Reconciliation of the balances of the Patron Accounts, Patron Account Transaction Forms, and the log of transactions referenced in (7) made by patrons during a shift;

(g) Auditing and rendering inactive all Patron Accounts that have had no activity or those having a zero balance for a period of 90 days; and

(h) A requirement to reactivate a patron account, the patron shall present identification at the cage as required by Rule 61D-14.010, F.A.C., in person.

 (3) Funds deposited into a Patron Account shall only be used at the slot machine licensee’s facility in which the Patron Account was established.

(4) Patron Account Transaction Forms shall be serially pre-numbered two-part forms used in sequential order.

(5) The cashier shall record the following information on the Patron Account Transaction Form after verifying the identity of the patron or of the person making a deposit on behalf of the patron:

(a) Whether the transaction was a deposit or withdrawal;

(b) The name of the patron;

(c) The total amount of the transaction indicated with both a numerical total and a written amount;

(d) The date and time;

(e) Type of transaction (EFT, cash withdrawal, cash equivalent, or cash deposit);

(f) The signature and occupational license number of the cashier or, if computer generated, the occupational license number of the cashier; and

(g) All voided original and duplicate Patron Account Transaction Forms shall be marked "VOID" and shall require the signatures and occupational license numbers of the preparer and a supervisor.

(6) After preparation of the Patron Account Transaction Form, the cashier shall obtain the patron's signature and shall distribute the copies in the following manner:

(a) The original shall be forwarded to the slot machine licensee’s accounting department; and

(b) The duplicate copy shall be given to the patron.

(7) A log of all Patron Account transactions conducted at the cage shall be prepared on a daily basis that shall include the following:

(a) The date of the transaction;

(b) Patron Account Transaction Form Number;

(c) The name of the patron;

(d) The amount of the transaction; and

(e) The type of transaction (EFT, cash withdrawal, cash equivalent, or cash deposit).

(8) Withdrawals from Patron Accounts shall only be made to the person in whose name the Patron Account is established.

Statutory Authority 551.103(1), 551.122, FS.  Law Implemented 551.103(1)(d), (1)(e), FS.  History – New _______.

NAME OF PERSON ORIGINATING PROPOSED RULE: David J. Roberts, Director, Division of Pari-Mutuel Wagering
NAME OF SUPERVISOR OR PERSON WHO APPROVED THE PROPOSED RULE: Simone Marstiller, Secretary, Department of business and Professional Regulation
DATE PROPOSED RULE APPROVED BY AGENCY HEAD: September 20, 2006
DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAW: August 3, 2006