PERMANENT RULES
Date of Adoption: July 13, 2001.
Purpose: This rule was amended to clarify the requirements for house-banked card rooms to request and receive approval to operate at Phase II wagering limits.
Citation of Existing Rules Affected by this Order: Amending WAC 230-40-803.
Statutory Authority for Adoption: RCW 9.46.070.
Adopted under notice filed as WSR 01-10-122 on [May 2, 2001] with a publication date of June 5, 2001.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.
Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 1, Repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.
Number of Sections Adopted Using Negotiated Rule Making:
New 1,
Amended 1,
Repealed 0;
Pilot Rule Making:
New 0,
Amended 0,
Repealed 0;
or Other Alternative Rule Making:
New 0,
Amended 0,
Repealed 0.
Effective Date of Rule:
Thirty-one days after filing.
July 13, 2001
Susan Arland
Rules Coordinator
OTS-5029.1
Alternative #1
AMENDATORY SECTION(Amending Order 383, filed 4/14/00, effective
5/15/00)
WAC 230-40-803
Phase II wager
limits -- Restrictions -- Procedures.
A house-banked card room
licensee shall not increase wager limits to Phase II levels prior
to operating for a minimum of six months and demonstrating that
it is capable of operating at higher wager limits and receiving
commission approval. The following procedures and restrictions
apply to the Phase II approval process:
((Restrictions.
(1) Prior to requesting approval for Phase II limits a
licensee shall:
(a) Operate for a minimum of six months;
(b) Have demonstrated compliance with commission requirements. A licensee shall be deemed to have demonstrated compliance when:
(i) Administrative actions are not pending;
(ii) Administrative actions have not occurred for at least the last six months; and
(iii) It is not currently under investigation by the commission or other law enforcement agency; and
(c) Have paid all gambling taxes due to counties, cities, or towns. For purposes of this section, gambling taxes include those taxes owed as of the most recent reporting period (month or quarter), as provided in the jurisdiction's ordinance, plus any interest and/or penalties that may be due.))
Review procedures.
(((2))) (1) Requests for an increase in wagering limits
shall be processed in the following manner:
(a) The licensee shall submit a written request for review, including a deposit of five thousand dollars to pay for the review;
(b) Commission staff shall review the licensee's entire house-banked card game operation. Such review shall include an evaluation of:
(i) The licensee's written internal accounting and administrative controls to ensure they are not materially different from those submitted and approved and that the licensee is following such in every material aspect;
(ii) Whether the licensee is operating house-banked card games in accordance with applicable WAC rules; and
(c) A summary of commission staff's findings ((and a
recommendation)) shall be presented to the ((commission at a
regular public meeting)) director.
Approval process.
(((3))) (2) Upon the completion of commission staff's
review, the director shall either forward the licensee's request
to the commission with a recommendation for approval or decline
to forward it as provided in subsection (3) of this section. If
the director forwards the request to the commission, the director
may authorize a licensee to increase Phase II wagering limits
((for up to five tables)) pending commission approval at the next
scheduled meeting;
(((4))) (3) The director may decline to forward a licensee's
request for Phase II wagering limits to the commission if:
(a) ((The licensee has failed to comply with any of the
restrictions set forth in subsection (1) of this section)) There
have been substantial or repetitive administrative actions in the
past six months or there is an ongoing investigation for
substantial or repetitive violations; or
(b) The commission staff's review reveals the licensee has
failed to follow WAC rules or its approved internal control
procedures and such failures are ((material or, because of
repetition, would be material)) substantial or deemed substantial
due to repetition; or
(c) ((Material violations of WAC rules are noted)) The
licensee has failed to pay any gambling taxes due to counties,
cities, or towns. For purposes of this section, gambling taxes
include those taxes owed as of the most recent reporting period
(month or quarter), as provided in the jurisdiction's ordinance,
plus any interest and/or penalties that may be due; and
(d) Actions to correct any deficiencies have not been completed and commission staff afforded adequate time to conduct a follow-up review.
(((5))) (4) If the director fails to forward a licensee's
request within sixty days following completion of commission
staff's review and has not commenced administrative actions, a
licensee shall be afforded an opportunity to a commission review
of the request. The commission may:
(a) Grant the licensee Phase II wager limit approval;
(b) Grant the licensee conditional Phase II approval; or
(c) Refer the request back to commission staff for further investigation.
Sale of a business operating under Phase II.
(((6))) (5) When a house-banked card room authorized to
operate at Phase II levels is sold or otherwise transferred, the
director may authorize the new licensee to remain at Phase II
levels if the new licensee demonstrates that the gambling
operation and internal controls will remain substantially
unchanged. Staff may review the operation to determine
compliance at the director's request. The licensee shall be
responsible for all costs of the review.
[Statutory Authority: RCW 9.46.070. 00-09-052 (Order 383), 230-40-803, filed 4/14/00, effective 5/15/00.]