BEFORE THE DEPARTMENT OF JUSTICE

OF THE STATE OF MONTANA

 

In the matter of the adoption of NEW RULE I concerning audit data storage devices and the amendment of ARM 23.16.1802 concerning definitions and ARM 23.16.1827 concerning record keeping requirements

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NOTICE OF ADOPTION AND AMENDMENT

 

            TO:  All Concerned Persons

 

            1.  On December 11, 2008, the Department of Justice published MAR Notice No. 23-16-207, regarding the public hearing on the proposed adoption and amendment of the above-stated rules at page 2540, 2008 Montana Administrative Register, Issue Number 23.

 

            2.  The Department of Justice amended ARM 23.16.1802 and 23.16.1827 exactly as proposed.

 

            3.  The department adopts the remaining rule with the following changes, stricken matter interlined, new matter underlined:

 

            NEW RULE I (23.16.1902) AUDIT DATA STORAGE DEVICES  (1)  The department may approve a VGM (video gambling machine) utilizing an ASD (audit storage device) for use in place of duplicate printed audit tapes.  Each VGM providing ASD support must be reported on a tier I and tier II system and operate in the following manner:

            (a) through (h) remain as proposed.

            (i)  the department will administer the distribution of private RSA public encryption keys to manufacturers as defined by the department;

            (j)  the department must be able to authenticate records through the use of an external software utility and public RSA private encryption keys as defined by the department;

            (k) through (n) remain as proposed.

 

            4.  A public hearing was held on January 7, 2009.  No adverse comments were offered at the public hearing.  However, Richard Ask, the division's Operations Bureau Chief, noted a potential conflicting variation in record keeping periods for VGMs using the ASD format.  Specifically, he noted that, without this amendment, it would be possible for a machine with an ASD to report manually, and be required to preserve the VGM records for 12 quarters, while another machine with an ASD might report electronically on a Tier system, and only be required to preserve records for 4 quarters.  He noted that without this rule amendment, manufacturers might have to specially program VGMs to retain records for 12 quarters, and would be contrary to the rationale for authorizing the digital storage of VGM records.

            Additionally, Ben Kamerzel, Supervisor of the Technical Services Section, noted that the terms "public key" and "private key" had been inadvertently reversed, and he urged they be corrected.  Mr. Kamerzel also suggested including the label "RSA" be included to properly identify the type of encryption keys required under the rule.  Mr. Kamerzel suggested further that the division's rationale for adopting the new rule should clarify that a "thumb drive" is only a common example of an audit storage device, but it could embrace other forms of digital media. 

 

By:  /s/ Steve Bullock                                                /s/ J. Stuart Segrest                               

        STEVE BULLOCK                                           J. STUART SEGREST

        Attorney General                                               Rule Reviewer

        Department of Justice

 

Certified to the Secretary of State January 20, 2009.