WSR 14-17-059 PROPOSED RULES GAMBLING COMMISSION [Filed August 15, 2014, 9:04 a.m.]
Original Notice.
Preproposal statement of inquiry was filed as WSR 14-08-030.
Title of Rule and Other Identifying Information: WAC 230-15-295 Digital video recording equipment requirements.
Hearing Location(s): Spokane Davenport Hotel, 10 South Post Street, Spokane, WA 99201, (509) 455-8888, on October 9 or 10, 2014, at 9:00 a.m. or 1:00 p.m. Note: Meeting dates and times are tentative. Visit our web site at www.wsgc.wa.gov and select public meeting about ten days before the meeting to confirm meeting date/location/start time.
Date of Intended Adoption: October 9 or 10, 2014.
Submit Written Comments to: Susan Newer, P.O. Box 42400, Olympia, WA 98504-2400, e-mail Susan.Newer@wsgc.wa.gov, fax (360) 486-3625, by October 1, 2014.
Assistance for Persons with Disabilities: Contact Michelle Rancour by October 1, 2014, TTY (360) 486-3637 or (360) 486-3453.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The proposed change would require Class F and house-banked card room licensees' digital video recording and playback of images to have sufficient magnification and clarity to show fluid motion and allow the viewer to clearly distinguish the value of currency, coins, gaming chips, playing cards, and outcome of the game and effectively monitor in detail all areas requiring video coverage.
Staff worked with Class F and house-banked card room licensees on this rule change.
Statutory Authority for Adoption: RCW 9.46.070, 9.46.0282.
Statute Being Implemented: Not applicable.
Rule is not necessitated by federal law, federal or state court decision.
Name of Proponent: Washington state gambling commission, governmental.
Name of Agency Personnel Responsible for Drafting: Susan Newer, Lacey, (360) 486-3466; Implementation: David Trujillo, Director, Lacey, (360) 486-3512; and Enforcement: Mark Harris, Assistant Director, Lacey, (360) 486-3579.
A small business economic impact statement has been prepared under chapter 19.85 RCW.
Small Business Economic Impact Statement - RCW 19.85.040
Rules Package: WAC 230-15-295 Digital video recording equipment requirements.
Involvement of Small Businesses: All licensees impacted by this proposal were provided notification of the proposed changes by e-mail on May 13, 2014. Staff worked with the Recreational Gaming Association, an industry group for card rooms, on this proposal. Notice was published in the June 2014 editions of our Focus on Gambling newsletter and Card Room Connection newsletter, which are posted on our web site and mailed to licensees impacted by this proposal. The proposal was discussed at the July 11, 2014, study session in Grand Mound, Washington. This process provided small businesses opportunities in the development of the new rule. To date, we have received no objections to this proposal.
1. Description of the reporting, recordkeeping and other compliance requirements of the proposed rule:
2. Kinds of professional services that a small business is likely to need in order to comply: Card room licensees would likely require the use of a licensed service supplier that specializes in installing digital video surveillance equipment.
3. The actual costs to small business of compliance, including costs of equipment, supplies, labor and increased administrative costs: There is no cost for existing card rooms to meet the proposed changes if they continue to use their current digital video or analog recording equipment.
However, when a card room does replace their digital video equipment they may have additional cost if they also need to purchase new cameras to meet the rule requirements. Some cameras currently in use may work with new digital video equipment but will not give the required clarity that is needed to meet the new rule requirements. These cameras would need to be replaced.
The cost of a new camera is approximately $200. Labor to install each camera is $100 - $200. Card rooms would need at least one camera for each card table, one for the count area, and one for the cage.
4. Whether compliance with the rule, based on feedback received from licensees, will cause businesses to lose sales or revenue: There are no recordkeeping, reporting, or compliance requirements that will impose additional costs on our current licensees. The type of video recording equipment a card room uses has no relationship to revenue. We do not believe it will cause card rooms to lose revenues.
5. A determination of whether the proposed rule will have a disproportionate impact on small businesses: Card rooms would likely need to hire a licensed service supplier to install new cameras. Installation labor costs per hour are $50-$75. It would take one to two hours to install each camera. Card rooms impacted range from the largest with $13,495,742 in gross receipts in 2013 to $336,804 for the smallest. The cost per hour of labor is the same regardless of the size of the card room. Because the costs are the same for all card rooms, if a card room chose to hire a licensed service supplier, the financial impact would be greater on a smaller, versus a larger card room. Therefore, the cost of compliance could have a disproportionate impact on small businesses.
6. Steps taken by the agency to reduce the costs of the rule on small businesses or reasonable justification for not doing so. Agencies "must consider, without limitation, each of the following methods of reducing the impact of the proposed rule on small businesses":
a. Reducing, modifying, or eliminating substantive regulatory requirements;
We are not requiring current licensees to comply with the new requirements unless they choose to purchase and install new digital video equipment.
b. Simplifying, reducing, or eliminating recordkeeping and reporting requirements;
There are no immediate requirements for current licensees. If a licensee chooses to install new digital video recording it must have the features to meet the requirements.
c. Reducing the frequency of inspections;
There will be no additional inspections because of this rule change.
d. Delaying compliance timetables;
Current licensees are not required to meet the new requirements until they choose to purchase and install new digital video equipment.
e. Reducing or modifying fine schedules for noncompliance; or
We usually don't fine licensees for the first incident of noncompliance. Licensees are typically given verbal and written warnings before fines are considered for noncompliance.
f. Any other mitigation techniques including those suggested by small businesses or small business advocates.
We have not had the opportunity to receive suggestions yet. We will consider any we receive.
7. A description of how the gambling commission will involve small businesses in the development of the rule: All rules are discussed at study session(s) before they are up for discussion and possible filing by the commissioners. The purpose of these study sessions is to get input from the industry. This rule was discussed at the July 2014 study session.
8. A list of industries that will be required to comply with the rule: 7132. There are approximately fifty-six house-banked and Class F card rooms (gambling establishments) that would be required to comply with this rule.
9. An estimate of the number of jobs that will be created or lost as the result of compliance with the proposed rule: We do not believe the proposed rule change will result in the creation or loss of any jobs.
A copy of the statement may be obtained by contacting Susan Newer, Rules Coordinator, Washington State Gambling Commission, P.O. Box 42400, Olympia, WA 98504, phone (360) 486-3466, fax (360) 486-3625, e-mail Susan.Newer@wsgc.wa.gov.
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.
August 15, 2014
Susan Newer
Rules Coordinator
AMENDATORY SECTION (Amending WSR 07-09-033, filed 4/10/07, effective 1/1/08)
WAC 230-15-295 Digital video recording equipment requirements.
Digital recording, including audio recording where required, using a digital recording and storage system, must:
(1) Record all images on a hard drive; and
(2) Lock so that access to the erase and reformat functions and system data files is restricted to persons authorized in the internal controls; and
(3) Provide uninterrupted recording of surveillance, during playback or copying. Licensees may use motion-activated recording; and
(4) Be capable of copying original images maintaining the original native format; and
(5) Be stored at a rate of not less than twenty-five images per second; and
(6) Record images at a minimum resolution of 320 x 240 and display during playback at a minimum resolution of 640 x 480 or meet subsection (11)(d) of this section; and
(7) Store images in a format that is readable by our computer equipment; and
(8) Store images in a format that we can verify and authenticate; and
(9) Include the accurate time and date the video was originally recorded on the recorded images; and
(10) Be equipped with an uninterruptible power source to allow a proper system shutdown; and
(11) Meet the additional requirements in this subsection, if you open a new Class F or house-banked card room using digital video recording equipment or install new digital video recording equipment in your existing Class F or house-banked card room. However, if you buy an existing card room, you will not be required to meet these requirements until you install new digital video recording equipment.
(a) Each user must have a sign in with a unique ID and password that is not shared with other users; and
(b) Have an audio or visual indication of a malfunction; and
(c) Digital video recording equipment must track at least the following functions, which are available to us and a person designated by the licensee to oversee the equipment (system administrator) by a menu button on the digital video recording system:
(i) Date and time users log in and out; and
(ii) Date and time when video signals from gaming cameras are interrupted and when connection is restored; and
(iii) Date, time, and user when video is recorded to removable storage media along with the date, time, and camera being copied; and
(iv) Date and time when the equipment fails to record video or audio when required; and
(v) Date and time when remote access to equipment begins and ends along with the ability to identify the person or organization accessing the equipment and the files accessed during the remote access.
(d) Record and playback images with sufficient magnification and clarity that shows fluid motion and allows the viewer to clearly distinguish the value of currency, coins, gaming chips, playing cards, and outcome of the game and effectively monitor in detail all required areas.
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