WSR 16-08-033 PERMANENT RULES GAMBLING COMMISSION [Order 718—Filed March 30, 2016, 9:13 a.m., effective April 30, 2016]
Effective Date of Rule: Thirty-one days after filing.
Purpose: These rule changes:
Citation of Existing Rules Affected by this Order: Amending WAC 230-03-185, 230-03-190, 230-05-030, 230-06-110, 230-13-010, 230-13-135, and 230-13-160.
Adopted under notice filed as WSR 16-04-053 on January 28, 2016.
Changes Other than Editing from Proposed to Adopted Version: WAC 230-03-185, language was added to require manufacturers of Group 12 amusement games that were approved before the effective date of this rule to apply by May 1, 2016, and be licensed by December 31, 2016.
WAC 230-06-110, language was added to clarify that lease agreements entered into prior to the effective date of this rule may continue until the manufacturer is licensed or December 31, 2016, whichever occurs first.
WAC 230-13-010, language was added to require games approved before the effective date of this rules package to be submitted for testing, including the application and deposit, by May 1, 2016.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.
Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 7, Repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 7, Repealed 0.
Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 7, Repealed 0.
Date Adopted: March 30, 2016.
Susan Newer
Rules Coordinator
AMENDATORY SECTION (Amending WSR 09-11-085, filed 5/18/09, effective 7/1/09)
WAC 230-03-185 Applying for a manufacturer license.
(1) You must apply for a manufacturer license if you:
(a) Make or assemble a completed piece or pieces of gambling equipment for use in authorized gambling activities; or
(b) Convert, modify, combine, add to, or remove parts or components of any gambling equipment for use in authorized gambling activities; or
(c) Manufacture group 12 amusement games approved or modified after May 1, 2016. Manufacturers of group 12 amusement games that were approved before the effective date of this rule must apply by May 1, 2016, and be licensed by December 31, 2016.
(2) You must demonstrate your ability to comply with all manufacturing, quality control, and operations restrictions imposed on authorized gambling equipment that you want to manufacture or market for use in Washington state.
(3) The licensing process may include an on-site review of your manufacturing equipment and process for each separate type of authorized gambling equipment to ensure compliance capability.
AMENDATORY SECTION (Amending WSR 06-07-157, filed 3/22/06, effective 1/1/08)
WAC 230-03-190 Applying for a distributor license.
You must apply for a distributor license if you:
(1) Buy or otherwise obtain a finished piece of gambling equipment for use in authorized gambling activities or a group 12 amusement game from another person and sell or provide that gambling equipment to a third person for resale, display, or use; or
(2) Are a manufacturer who sells or provides gambling equipment you do not make to any other person for resale, display, or use; or
(3) Service and repair authorized gambling equipment. However, distributors must not add, modify, or alter the gambling equipment; or
(4) Modify gambling equipment using materials provided by manufacturers to upgrade equipment to current technology.
AMENDATORY SECTION (Amending WSR 14-19-123, filed 9/17/14, effective 11/1/14)
WAC 230-05-030 Fees for other businesses.
All other business license applicants must pay the following fees to us when applying for gambling licenses, miscellaneous changes, or inspection services:
1. Commercial amusement games
2. Distributor
3. Fund-raising event equipment distributor
4. Gambling service supplier
5. Linked bingo prize provider
6. Call centers for enhanced raffles
7. Manufacturer
8. Permits
9. Changes
10. Other fees
11. Identification stamps
12. Two-part payment plan participation
AMENDATORY SECTION (Amending WSR 08-11-044, filed 5/14/08, effective 7/1/08)
WAC 230-06-110 Buying, selling, or transferring gambling equipment.
(1) All licensees and persons authorized to possess gambling equipment must closely control the gambling equipment in their possession.
(2) Before selling gambling equipment, licensees must ensure that the buyer possesses a valid gambling license or can legally possess the equipment without a license.
(3) Before purchasing gambling equipment, licensees must ensure that the seller possesses a valid gambling license.
(4) Applicants for Class F or house-banked card room licenses may purchase and possess gambling equipment during the prelicensing process, but only after receiving written approval from us.
(5) Charitable and nonprofit organizations conducting unlicensed bingo games, as allowed by RCW 9.46.0321, may possess bingo equipment without a license.
(6) Group 12 amusement games can only be sold or leased by a licensed manufacturer or distributor to a licensee. Lease agreements entered into prior to the effective date of this rule may continue until the manufacturer is licensed or December 31, 2016, whichever occurs first.
(7) Licensees may transfer gambling equipment as a part of a sale of a business as long as a condition of the sale is that the buyer receives a gambling license before the sale is complete. Licensees must make a complete record of all gambling equipment transferred in this manner, including I.D. stamps. Licensees must report these transfers, including a copy of the inventory record, to us.
AMENDATORY SECTION (Amending WSR 07-15-064, filed 7/16/07, effective 1/1/08)
WAC 230-13-010 Approval of new amusement games.
(1) Operators may introduce new games that meet the standards of an authorized group 1 through 11 amusement game without approval of the director as long as they provide the director or his or her designee with a description of the game, the rules of play, and the group number of the game with an explanation of why that group was chosen at least sixty days before introducing the game.
(((2))) The game cannot be introduced during this sixty day period unless approved sooner by us. The sixty day period stops when we request additional information.
(2) The following procedures apply to all group 12 amusement games. Games approved before the effective date of this rule must be submitted for testing, including the application and deposit, by May 1, 2016:
(a) An application and deposit must be submitted requesting approval of new group 12 amusement games and the applicant will provide all requested information;
(b) All amusement game equipment, programs, and games must be submitted for our review to verify compliance with chapter 9.46 RCW and Title 230 WAC.
(i) The equipment, programs, and/or games submitted must be fully functional/operational and capable of being tested once our review begins.
(ii) If the equipment is not fully functional/operational and ready for testing and review, we may require additional equipment or information before we start our review process.
(c) Amusement game equipment, programs, and games submitted for review must be identical to what will be marketed, distributed, and deployed in Washington;
(d) Group 12 amusement games must allow for a means of identifying and validating approved software that will demonstrate the authenticity of any software or game by a third-party verification program or tool;
(e) We will have sixty days to finish our review once your application is complete;
(f) We will notify you if we require additional information or if your equipment, program, or game malfunctions or is otherwise inoperable.
(i) You will have fourteen days to provide any additional information or correct any equipment, program, or game malfunction and the sixty day review period stops when this occurs. The review period will restart when we receive the requested additional information or when the problem is corrected. You will be responsible for any additional cost needed to review the additional information provided or review of any equipment, program, or game malfunction;
(ii) Review of your application may be terminated if you do not respond within fourteen days. You will be required to reapply under this rule if your application is terminated.
(g) You can only begin selling, leasing, distributing, or operating these amusement games once all entities or individuals are licensed under chapter 230-03 WAC and the amusement game equipment, program, and/or game(s) are approved by the director or director's designee;
(h) All licensed amusement games must operate as approved by the director or director's designee; and
(i) We may keep equipment, software, and/or games submitted for review to allow for continued testing and training as long as the equipment remains in play in Washington. We are not liable for any damage to equipment while in our possession.
(3) If the director or director's designee notifies the operator that the proposed game does not meet the standards or otherwise violates the gambling laws or rules, the operator:
(a) May not introduce the game; ((and))
(b) If already introduced, must remove it from play until the operator brings it into compliance with the authorized group; and
(c) If you do not agree with the director or director's designee's decision, you may file a petition for declaratory order with the commission according to RCW 34.05.240 and chapter 230-17 WAC.
AMENDATORY SECTION (Amending WSR 11-04-004, filed 1/20/11, effective 2/20/11)
WAC 230-13-135 Maximum wagers and prize limitations ((at certain amusement game locations)).
(1) The maximum wager is three dollars and fifty cents and the maximum cost for a prize is five hundred dollars if school-aged minors are allowed to play amusement games at the following locations:
(((1))) (a) Regional shopping centers; and
(((2))) (b) Movie theaters; and
(((3))) (c) Bowling alleys; and
(((4))) (d) Miniature golf course facilities; and
(((5))) (e) Skating facilities; and
(((6))) (f) Family sports complexes.
(((a))) (i) A "family sports complex" is a facility, at a permanent location, to which people go to play sports. A family sports complex must offer multiple sports activities, such as indoor soccer, outdoor soccer, lacrosse, baseball, Frisbee, and lawn bowling and the gross receipts must be primarily from these sports activities.
(((b))) (ii) A family sports complex does not include a facility owned or operated by a school or school district; and
(((7))) (g) Amusement centers; and
(((8))) (h) Grocery or department stores. A "department or grocery store" means a business that offers the retail sale of a full line of clothing, accessories, and household goods, or a full line of dry grocery, canned goods, or nonfood items plus some perishable items, or a combination of these. A department or grocery store must have more than ten thousand square feet of retail and support space, not including the parking areas; and
(((9))) (i) Any business whose primary activity is to provide food service for on premises consumption.
(2) For group 12 amusement games, the maximum wager is five dollars and the maximum cost for a prize is one thousand dollars.
AMENDATORY SECTION (Amending WSR 07-15-064, filed 7/16/07, effective 1/1/08)
WAC 230-13-160 Basing rent on a percentage of gross receipts.
Class B or above amusement game operators:
(1) May base the rent or consideration paid to a Class A commercial amusement game location or charitable or nonprofit amusement game location for group 12 amusement games on a percentage of revenue the activity generates if the method of distribution is specific.
(2) May not base the rent or consideration paid to a charitable or nonprofit organization on a percentage of revenue the activity generates unless the amount returned to the organization is equal to or exceeds twenty-two percent of the gross gambling receipts.
(3) Operators must pay the organization at least once a month.
(((3))) (4) If located at regional shopping centers, may use a percentage of receipts to pay rental leases. They are also exempt from the profits restrictions of RCW 9.46.120(2).
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