[Filed May 20, 2019, 12:30 p.m.]

Preproposal statement of inquiry was filed as WSR 19-05-066.

Title of Rule and Other Identifying Information: New WAC 230-16-152 Card shuffling devices connecting to a secure cellular network for billing purposes.

Hearing Location(s): On July 11, 2019, at 9:00 a.m., at the Hotel Murano, 1320 Broadway Plaza, Tacoma, WA 98402. Hearing will take place at the July commission meeting. The meeting date and time is tentative. Visit our web site at www.wsgc.wa.gov about seven days prior to the meeting, select "July Commission Meeting" to confirm the hearing date, location, and start time.

Date of Intended Adoption: July 11, 2019.

Submit Written Comments to: Ashlie Laydon, Rules Coordinator, P.O. Box 42400, Olympia, WA 98504-2400, email rules.coordinator@wsgc.wa.gov, fax 360-486-3624, by July 1, 2019.

Assistance for Persons with Disabilities: Contact Julie Anderson, phone 360-486-3453, TTY 360-486-3637, email Julie.anderson@wsgc.wa.gov, by July 1, 2019.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The proposed new rule would allow card shuffling devices to connect to a secure cellular modem for billing purposes. This would offer a new billing option for card shufflers found in licensed card rooms, where they would only be billed for the shuffler when it is in use.

Reasons Supporting Proposal: Currently, gambling equipment can only be connected to external tools for standard maintenance. This proposed new rule would allow specific gambling equipment, card shuffling devices, be connected through a secure cellular network for billing purposes and would offer licensed card rooms an additional billing option for the use of card shufflers.

Statutory Authority for Adoption: RCW 9.46.070.

Statute Being Implemented: RCW 9.46.070.

Rule is not necessitated by federal law, federal or state court decision.

Name of Proponent: Bo Zarach, Bally Technologies, Scientific Games, Las Vegas, Nevada, private.

Name of Agency Personnel Responsible for Drafting: Brian Considine, Managing Staff Attorney, 4565 7th Avenue S.E., Lacey, WA 98503, 360-486-3469; Implementation: David Trujillo, Director, 4565 7th Avenue S.E., Lacey, WA 98503, 360-486-3512; and Enforcement: Tina Griffin, Assistant Director, 4565 7th Avenue S.E., Lacey, WA 98503, 360-486-3546.

A school district fiscal impact statement is not required under RCW 28A.305.135.

A cost-benefit analysis is not required under RCW 34.05.328. A cost-benefit analysis must be completed for significant legislative rules. Per RCW 34.05.328 (5)(c), this proposed new rule does not meet the definition of a "significant legislative rule" and therefore does not require a cost-benefit analysis.

The proposed rule does not impose more-than-minor costs on businesses. Following is a summary of the agency's analysis showing how costs were calculated. The proposed new rule offers gambling equipment manufacturers an additional option related to card shuffler billings paid by licensed card rooms. This proposed rule and the possibility of an additional billing option has been sent to card room licensees for comment and feedback received by some of the card rooms is that this change could be a cost-savings for some card rooms, which is consistent with the manufacturer's statement for why it submitted a rules petition for this change. Authorizing this change does not have a disproportionate impact on small businesses because it does not require a licensee to change current billing practices. Instead, it amends rule language to allow another billing option a manufacturer and licensed card room can use in their commercial agreements. Therefore, this rule change should have no impact, or a net positive impact, for licensed card rooms if this is a billing option they choose to use.

WAC 230-16-152Card shuffling devices connecting to a secure cellular network for billing purposes.

Card shuffling devices can be connected to a secure cellular network for billing purposes.

(1) For the purposes of this rule:

(a) A secure cellular network includes the card shuffling device and a cellular modem that is used to transmit information via a secure cellular network.

(b) Billing purposes means transmitting historical shuffler data that is used when billing is based on the number of successful shuffles. Shuffler data includes:

(i) Equipment statistics such as software versions, serial numbers, network information, hard count meters, and shuffler configuration information; and

(ii) Usage information such as hard count meters, successful and unsuccessful shuffles, shuffles completed by service, number of card sorts, and the number of cards in each shuffle; and

(iii) History logs such as shuffler malfunctions, card recognition errors, and maintenance logs; and

(iv) Test messages used for setup.

(2) The following requirements apply when connecting card shuffling devices to a secure cellular network for billing purposes:

(a) An identical or substantially similar card shuffling device connected to a secure cellular network must be tested and approved by us, as outlined in WAC 230-06-050, before it can be used; and

(b) The transmitted data must not include card specific information, live gaming data, or any other gambling information; and

(c) Except for a confirmation notification from the network that the shuffler data was successfully received, there may only be one-way communication from the card shuffling device to the secure cellular network; and

(d) Transmitted information may only be accessed by the licensee or licensed manufacturer; and

(e) A record must be kept of all information transmitted and made available to us upon request.