WSR 14-05-081

PROPOSED RULES

GAMBLING COMMISSION

[Filed February 18, 2014, 12:52 p.m.]

Original Notice.

Preproposal statement of inquiry was filed as WSR 14-02-008.

Title of Rule and Other Identifying Information: New WAC 230-03-061 Fingerprinting persons holding an interest in the building of house-banked card room licensees or charitable or nonprofit licensees in regulatory groups III, IV, or V.

Hearing Location(s): Vancouver Heathman Lodge, 7801 N.E. Greenwood Drive, Vancouver, WA 98662, (360) 254-3100, on April 10 or 11, 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: April 10 or 11, 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 April 1, 2014.

Assistance for Persons with Disabilities: Contact Michelle Rancour by April 1, 2014, TTY (360) 486-3637 or (360) 486-3453.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: RCW 9.46.070(7) states in pertinent part that "Provided further, That the commission shall require fingerprinting and national criminal history background checks on any person seeking licenses, certifications, or permits under this chapter or of any person holding an interest in any gambling activity, building, or equipment to be used therefore, or of any person participating as an employee in the operation of any gambling activity… The commission must establish rules to delineate which persons named on the application are subject to national criminal history background checks." (emphasis added).

This new rule ensures the WAC is consistent with RCW 9.46.070(7) by requiring persons holding an "interest" in a building used for a gambling activity to undergo background checks. The rule describes an interest in a building used for a gambling activity as at least fifty-one percent, or less than fifty-one percent interest in a building when there is actual or potential influence or control of the operation of a house-banked card room or a charitable or nonprofit in regulatory groups III, IV, or V.

Statutory Authority for Adoption: RCW 9.46.070.

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.

No small business economic impact statement has been prepared under chapter 19.85 RCW. A small business economic impact statement was not prepared because this proposed rule change will not impose additional costs.

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.

February 18, 2014

Susan Newer

Rules Coordinator

NEW SECTION

WAC 230-03-061 Fingerprinting persons holding an interest in the building of house-banked card room licensees or charitable or nonprofit licensees in regulatory groups III, IV, or V.

(1) This rule only applies to house-banked card room licensees or charitable or nonprofit licensees in regulatory groups III, IV, or V licensed after July 1, 2014.

(2) Persons holding an "interest" in the building of these licensees must undergo a national criminal history background check, including fingerprinting.

(3) An "interest" means:

(a) Having fifty percent or more ownership in the building used for the gambling activity; or

(b) Having less than fifty percent ownership in the building used for the gambling activity and having actual or potential influence over the gambling activity.

(4) For house-banked card room licensees or charitable or nonprofit licensees in regulatory groups III, IV, or V licensed before July 1, 2014, this requirement applies when there is a change in:

(a) Persons holding an interest in the building; or

(b) Location of the house-banked card room; or