Original Notice.

     Preproposal statement of inquiry was filed as WSR 07-16-035.

     Title of Rule and Other Identifying Information: WAC 230-14-047 Standards for electronic video pull-tab dispensers.

     Hearing Location(s): DoubleTree Guest Suites, 16500 Southcenter Parkway, Seattle, WA 98188, (206) 575-8220, on January 11, 2008, at 9:30 a.m.

     Date of Intended Adoption: January 11, 2008.

     Submit Written Comments to: Susan Arland, P.O. Box 42400, Olympia, WA 98504-2400, e-mail Susana@wsgc.wa.gov, fax (360) 486-3625, by January 1, 2008.

     Assistance for Persons with Disabilities: Contact Gail Grate, Executive Assistant, by January 1, 2008, TTY (360) 486-3637 or (360) 486-3453.

     Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: Two proposed rule changes that would no longer allow electronic video pull-tab dispensers, WAC 230-14-045 and 230-05-030, were up for filing at the September 2007 commission meeting. At that meeting, the commission requested that the proposal be held over until the October commission meeting. At the October meeting, the commission voted to file the rules (filed under WSR 07-21-092) and asked staff to work with the industry on an alternative. Shown below is alternative #1 which would explicitly authorize the use of the Gold Crown and ZDI type electronic video pull-tab dispensers by incorporating prior commission decisions and more recent rule changes into a new rule. In effect, this maintains the status quo, but authorization would be explicit. The alternative also defines "cash."

     Reasons Supporting Proposal: See above.

     Statutory Authority for Adoption: RCW 9.46.070.

     Statute Being Implemented: Not applicable.

     Name of Proponent: Washington state gambling commission, governmental.

     Name of Agency Personnel Responsible for Drafting: Susan Arland, Rules Coordinator, Lacey, (360) 486-3466; Implementation: Rick Day, Director, Lacey, (360) 486-3446; and Enforcement: Mark Harris, Assistant Director, Lacey, (360) 486-3579.

     No small business economic impact statement has been prepared under chapter 19.85 RCW. Alternative #1 does not require a small business economic impact statement (SBEIS) because it provides clarification without changing current requirements. If the commission were to move forward with the original rule proposal, we would need to determine whether an exemption not requiring an SBEIS applies. If an exemption does not apply, an SBEIS would need to be completed.

     A cost-benefit analysis is not required under RCW 34.05.328. The Washington state gambling commission is not an agency that is statutorily required to prepare a cost-benefit analysis under RCW 34.05.328.

November 27, 2007

Susan Arland

Rules Coordinator

OTS-1213.1

ALTERNATIVE #1
NEW SECTION
WAC 230-14-047   Standards for electronic video pull-tab dispensers.   Electronic video pull-tab dispensers must be approved by us prior to use, meet the requirements below, and may incorporate only the features below and not perform additional functions.

     (1) Electronic video pull-tab dispensers must dispense a paper pull-tab as defined in WAC 230-14-010 and follow the rules for:

     (a) Pull-tabs; and

     (b) Flares; and

     (c) Authorized pull-tab dispensers.

     (2) Electronic video pull-tab dispensers that use a reading and displaying function must:

     (a) Use a video monitor for entertainment purposes only; and

     (b) Open all, or a portion of, the pull-tab in order to read encoded data that indicates the win or loss of the pull-tab if the dispenser is equipped to automatically open pull-tabs; and

     (c) Dispense the pull-tab to the player and not retain any portion of the pull-tab; and

     (d) Read the correct cash award from the pull-tab either when it is dispensed or when the pull-tab is reinserted into the dispenser; and

     (e) Display the cash award from the pull-tab, one pull-tab at a time; and

     (f) Provide:

     (i) An electronic accounting of the number of pull-tabs dispensed; and

     (ii) A way to identify the software version and name; and

     (iii) A way to access and verify approved components; and

     (iv) Security on the dispenser to prevent unauthorized access to graphic and prize amount displays.

     (3) Gift certificates or gift cards used in electronic video pull-tab dispensers must:

     (a) Be purchased with cash, check or electronic point-of-sale bank transfer before use in the dispenser; and

     (b) Be convertible to cash at any time during business hours; and

     (c) Subtract the cash value for the purchase of the pull-tab one pull-tab at a time.

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OTS-1218.1

NEW SECTION

WAC 230-06-003   Defining "cash."   "Cash," when used as a noun in this title, means currency in the form of coins or bills issued by the government of the United States or Canada only and does not include electronic, digital or other representations of money or other methods of payment.

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