Date of Adoption: May 9, 2003.
Purpose: Currently, loans of $2,000 or more must be reported to the commission if they are not obtained from a federally recognized financial institution. Staff source the funds to ensure the moneys are clean and persons with ties to criminal activities do not infiltrate gambling operations in Washington state. Language was added to require contributions of cash and assets to also be reported to the commission. This amendment enables staff to be fully informed on all of the licensee's financing activities and facilitates a more complete financial investigation on all parties involved in the financing of a gambling operation. Currently, a licensee can receive approval from staff for a line of credit (for example, from a financier licensed as a service supplier) from which they can take draws from over a period of time. At times, these draws can occur years after the original funds were investigated and sourced. During this time, the "original" moneys that were sourced are gone and other moneys are held in the account, which may be drawn on by the licensee. By requiring draws to be reported, staff can track the moneys and if necessary, source new funds that have replaced the funds, which were originally sourced. The reporting threshold was increased from $2,000 to $10,000.
Citation of Existing Rules Affected by this Order: Amending WAC 230-12-305.
Statutory Authority for Adoption: RCW 9.46.070.
Adopted under notice filed as WSR 03-08-001 on March 19, 2003.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.
Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 1, Repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.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:
Pilot Rule Making:
or Other Alternative Rule Making:
Effective Date of Rule: July 1, 2003.
May 15, 2003
AMENDATORY SECTION(Amending Order 250, filed 3/16/94, effective 4/16/94)
WAC 230-12-305 Licensee required to submit updated documents or information. In addition to any other requirements set forth in these rules, ((
licensed by the commission shall (( be required to)) submit any
(( changes in the following)) new or updated documents or
information (( on file with the commission)) including, but not
limited to, the following:
(1) Articles of incorporation or by laws, or any other documents which set out the organizational structure and purposes;
(2) Internal Revenue Service tax exemption status (charitable/nonprofit organizations only);
(3) All ((
leases, rental, consignment, franchise, or
other)) contracts and agreements (( relating)), whether oral or
written which relate to gambling activities or (( altering the
commercial stimulant business, whether oral or written)) alter
the organizational structure of the licensee or its business
activities in Washington state; and
(4) All cash or asset contributions, draws from lines of
credit, and loans, from other than recognized financial
institutions, which individually or collectively exceed a
total of ((
$2,000.00)) ten thousand dollars during any
calendar year: Provided, That cash or asset contributions do
not include donations to licensed charitable or nonprofit
(5) The new or updated documents and/or information shall be submitted to the commission by notation on the next quarterly activity report filed, and by attaching all details concerning each transaction: Provided, That licensees not required to submit quarterly activity reports shall submit the required information no later than ((
60)) sixty days following
the transaction(s) date.
[Statutory Authority: RCW 9.46.070. 94-07-084 (Order 250), § 230-12-305, filed 3/16/94, effective 4/16/94. Statutory Authority: RCW 9.46.070 (7)(14). 91-07-021, § 230-12-305, filed 3/13/91, effective 4/13/91. Statutory Authority: Chapter 9.46 RCW. 87-09-043 (Order 167), § 230-12-305, filed 4/14/87.]