WSR 97-14-012

PERMANENT RULES

GAMBLING COMMISSION

[Filed June 20, 1997, 11:28 a.m.]

Date of Adoption: June 13, 1997.

Purpose: Pull tab rules, to clarify and eliminate ambiguity of existing pull tab rules. These amendments represent housekeeping and organizational changes with a few exceptions relating to pull tab operations, reimbursement for defective games, and fees for identification stamps. References to carry over jackpots/pull tabs are deleted; carry over jackpots will be addressed in a separate rule.

Citation of Existing Rules Affected by this Order: Amending WAC 230-04-202, 230-04-203, 230-08-017, 230-30-030, 230-30-040, 230-30-050, 230-30-055, 230-30-070, 230-30-072, 230-30-080, 230-30-102, 230-30-103, 230-30-104, 230-30-106, 230-30-210 and 230-30-300; and new sections WAC 230-08-270 and 230-12-315.

Statutory Authority for Adoption: RCW 9.46.070 (5), (6), (11), (14).

Adopted under notice filed as WSR 97-09-077 on April 22, 1997.

Changes Other than Editing from Proposed to Adopted Version: (1) WAC 230-08-017 deleted reference to carry over jackpot by eliminating subsection (3)(a)(iv); (2) WAC 230-30-040 deleted references to carry over jackpots for pull tabs; (3) WAC 230-30-070 for purpose of triggering requirements for marking off flares and recording winners, the prize limits are changed from fifty dollars to "over twenty dollars"; (4) WAC 230-30-080 deleted references to carry over jackpots; prize limits remain at $500 instead of rising to $1,000; and (5) WAC 230-30-106 substituted references to subsection (4) and (5) for (3) and (4) in subsection (6)(b)(i).

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, amended 0, repealed 0; Federal Rules or Standards: New 0, amended 0, repealed 0; or Recently Enacted State Statutes: New 0, amended 0, repealed 0.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, amended 1, repealed 0.

Number of Sections Adopted on the Agency's own Initiative: New 0, amended 1, repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, amended 0, repealed 0.

Number of Sections Adopted using Negotiated Rule Making: New 0, amended 1, repealed 0; Pilot Rule Making: New 0, amended 0, repealed 0; or Other Alternative Rule Making: New 0, amended 0, repealed 0.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.

June 20, 1997

Soojin Kim

Rules and Policy Coordinator

AMENDATORY SECTION (Amending Order 304, filed 11/21/96, effective 1/1/97)

WAC 230-04-202 Fees--Bona fide charitable/nonprofit organizations. Bona fide charitable and nonprofit organizations shall submit the following fees to the commission when applying for gambling licenses, permits, miscellaneous changes, inspection services, or when assessed the cost of special investigation procedures by the commission:

LICENSE TYPE DEFINITION FEE

1. amusement games (Fee based on annual gross

gambling receipts)

* Class A Premises only $ 52

Class B Up to $10,000 $ 52

Class C Up to $25,000 $ 276

Class D Up to $50,000 $ 443

Class E Over $50,000 $ 772

* Allows a charitable or nonprofit organization to enter into a contract with Class "B" or above commercial amusement game licensee to locate and operate amusement games on their premises.



2. bingo

group (Fee based on annual

gross gambling receipts)

Class A Up to $ 15,000 $ 52

Class B Up to $ 50,000 $ 161

Class C Up to $ 100,000 $ 329

Class D Up to $ 250,000 $ 886

Class E Up to $ 500,000 $ 1,492

Class F Up to $1,000,000 $ 2,996

Class G Up to $1,500,000 $ 4,324

Class H Up to $2,000,000 $ 5,776

Class I Up to $2,500,000 $ 7,216

Class J Up to $3,000,000 $ 8,658

Class K Up to $3,500,000 $ 9,712

Class L Up to $4,000,000 $ 11,102

Class M Over $4,000,000 $ 12,492

(([and above]))

and above



3. card games

Class A General (Fee to play charged) $ 553

Class B Limited card games - hearts,

rummy, mahjongg,

pitch, pinochle, and cribbage

(Fee to play charged) $ 161

Class C Tournament only - no more than

ten consecutive days per tournament $ 52

Class D General (No fee to play charged) $ 52



4. fund-raising event

Class A One event - not more than

24 consecutive hours $ 329

Class B One event - not more than

72 consecutive hours $ 553

Class C Additional participant in joint

event (not lead organization) $ 161

Class D Fund-Raising Event Equipment $ 219

Distributor - rents or leases,

equipment for fund-raising event

or recreational gaming activity

for no more than ten times per

year*

Class E Fund-Raising Event Equipment $ 553

Distributor - rents or leases

equipment for fund-raising event

or recreational gaming activity more

than ten times per year.

* Charitable and nonprofit organizations licensed to conduct fund-raising events may rent their equipment up to four occasions during the term of the license without getting licensed as a distributor.



5. punchboards/

pull tabs (Fee based on annual gross

gambling receipts) variance(([*]))*

Class A Up to $ 50,000 $ 5,000 $ 527

Class B Up to $ 100,000 $ 5,000 $ 940

Class C Up to $ 200,000 $10,000 $ 1,774

Class D Up to $ 300,000 $10,000 $ 2,578

Class E Up to $ 400,000 $10,000 $ 3,330

Class F Up to $ 500,000 $10,000 $ 4,020

Class G Up to $ 600,000 $10,000 $ 4,658

Class H Up to $ 700,000 $10,000 $ 5,242

Class I Up to $ 800,000 $10,000 $ 5,776

Class J Up to $1,000,000 $20,000 $ 6,548

Class K Up to $1,250,000 $25,000 $ 7,268

Class L Up to $1,500,000 $25,000 $ 7,938

Class M Up to $1,750,000 $25,000 $ 8,490

Class N Up to $2,000,000 $25,000 $ 8,992

Class O Over $2,000,000 Nonapplicable $ 9,880

* A licensee will be allowed a one-time variance for each license class without having to upgrade or pay the penalties set forth in WAC 230-04-260: Provided, That a licensee utilizing the variance shall be required to upgrade to the higher license class upon renewal.



6. raffles (Fee based on annual gross

gambling receipts)

Class A Up to $ 5,000 $ 52

Class B Up to $10,000 $ 161

Class C Up to $25,000 $ 329

Class D Up to $50,000 $ 553

Class E Up to $75,000 $ 886

Class F Over $75,000 $ 1,326



7. ((combination license))

combination license

class a Allows gross gambling receipts of up to

$25,000 from bingo, $7,500 from raffles,

and $7,500 from amusement games, not to

exceed $30,000 combined gross gambling

receipts from all such activities. Allows

general card games where no fee to play

is charged. $ 100

class b Allows gross gambling receipts of up to

$60,000 from bingo, $15,000 from raffles,

and $15,000 from amusement games, not t to

exceed $75,000 combined gross] gambling

receipts from all such activities. Allows

general card games where no fee to play is

charged. $ 260

class c Allows gross gambling receipts of up to

$125,000 from bingo, $30,000 from raffles,

and $30,000 from amusement games not to

exceed $150,000 combined gross gambling

receipts from all such activities. Allows

general card games where no fee to play is

charged. $ 600



8. separate premises

bingo Per occasion (see WAC 230-04-300) $ 26



9. permits

agricultural (See WAC 230-04-191) $ 26

fair-bingo

recreational (See WAC 230-25-330 $ 52

gaming activity and 230-02-505)

(rga)



10. changes

name (See WAC 230-04-310) $ 26

location (See WAC 230-04-320) $ 26

fre (Date or time) (See $ 26

WAC 230-04-325)

license class (See WAC 230-04-260) $ 26

duplicate (See WAC 230-04-290) $ 26

license



11. special fees

investigation (See WAC 230-04-240) As required

replacement (((See WAC 230-30-016))) $ 26

identification (((See WAC 230-30-017)))

stamps (See WAC 230-08-017)

exceeding license (See WAC 230-04-260) As required

class

review, (((See WAC 230-08-017))) As required

inspection and/ (See WAC 230-12-315)

or evaluation

of equipment,

paraphernalia,

services, or

schemes



12. six-month (See WAC 230-04-190) $ 26

payment plan



[Statutory Authority: RCW 9.46.070 and 9.46.116. 96-24-007 (Order 304), 230-04-202, filed 11/21/96, effective 1/1/97. Statutory Authority: RCW 9.46.070. 95-02-003 and 94-23-093 (Order 260), 230-04-202, filed 12/22/94 and 11/17/94, effective 1/22/95 and 1/1/95.]

NOTES:

Reviser's note: RCW 34.05.395 requires the use of underlining and deletion marks to indicate amendments to existing rules, and deems ineffectual changes not filed by the agency in this manner. The bracketed material in the above section does not appear to conform to the statutory requirement.

Reviser's note: RCW 34.05.395 requires the use of underlining and deletion marks to indicate amendments to existing rules. The rule published above varies from its predecessor in certain respects not indicated by the use of these markings.

Reviser's note: The typographical errors in the above section occurred in the copy filed by the agency and appear in the Register pursuant to the requirements of RCW 34.08.040.

AMENDATORY SECTION (Amending Order 304, filed 11/21/96, effective 1/1/97)

WAC 230-04-203 Fees--Commercial stimulant and other business organizations. All persons seeking to operate gambling activities at business locations shall submit the following fees to the commission when applying for gambling licenses, permits, miscellaneous changes, inspection services, or when assessed the cost of special investigation procedures by the commission:



LICENSE TYPE DEFINITION FEE

1. card games

Class B Limited card games - hearts, $ 161

rummy, pitch, pinochle,

mahjongg, and/or cribbage (Fee to

play charged)

Class C Tournament only, no more than ten $ 161

consecutive days per tournament.

Class D General (No fee to play charged) $ 52

Class E General (Fee to play charged)

E-1 One table only $ 386

E-2 Up to two tables $ 663

E-3 Up to three tables $1,106

E-4 Up to four tables $2,214

E-5 Up to five tables $3,330



2. commercial

amusement (Fee based on annual gross

(([games])) gambling receipts)

games

* Class A Premises only (([**])) ** $276/$126

Class B Up to $ 50,000 $ 386

Class C Up to $ 100,000 $ 992

Class D Up to $ 250,000 $2,214

Class E Up to $ 500,000 $3,884

Class F Up to $1,000,000 $6,662

Class G Over $1,000,000 $8,334

* Allows a business that is qualified under WAC 230-04-138 (1)(f), (g), (h), (i), or (j) to enter into a contract with a class "B" or above commercial amusement game licensee to locate and operate amusement games upon their premises.

** Provides for a fee reduction of $150 when: Renewing an annual license; applying for an additional license(s) at the same premises; and/or applying for multiple licenses at the same premises.



3. punchboards/

pull tabs (Fee based on annual gross

gambling receipts)

variance*

Class A Up to $50,000 $ 5,000 $ 527

Class B Up to $100,000 $ 5,000 $ 940

Class C Up to $200,000 $10,000 $1,774

Class D Up to $300,000 $10,000 $2,578

Class E Up to $400,000 $10,000 $3,330

Class F Up to $500,000 $10,000 $4,020

Class G Up to $600,000 $10,000 $4,658

Class H Up to $700,000 $10,000 $5,242

Class I Up to $800,000 $10,000 $5,776

Class J Up to $1,000,000 $20,000 $6,548

Class K Up to $1,250,000 $25,000 $7,268

Class L Up to $1,500,000 $25,000 $7,938

Class M Up to $1,750,000 $25,000 $8,490

Class N Up to $2,000,000 $25,000 $8,992

Class O Over $2,000,000 Nonapplicable $9,880

* A licensee will be allowed a one-time variance for each license class without having to upgrade or pay the penalties set forth in WAC 230-04-260: Provided, That a licensee utilizing the variance shall be required to upgrade to the higher license class upon renewal.



4. distributor (Fee based on annual gross sales

of gambling related supplies and

equipment)

(a) Class A Nonpunchboard/pull tab only $ 553

Class B Up to $ 250,000 $1,106

Class C Up to $ 500,000 $1,660

Class D Up to $1,000,000 $2,214

Class E Up to $2,500,000 $2,882

Class F Over $2,500,000 $3,550

In addition to the annual fee, the commission will assess all applicants the actual costs incurred in conducting the investigation and inspection necessary for initial certification.

(b) fund-raising

event equipment

distributor

Class A Rents or leases equipment for fund- $219

raising event or recreational gaming

activity up to 10 times per year.

Class B Rents or leases equipment for fund- $553

raising event or recreational gaming

activity more than 10 times per year.



5. manufacturer (Fee based on annual gross sales

of gambling related supplies and

equipment)

Class A Machines only $ 553

Class B Up to $ 250,000 $1,106

Class C Up to $ 500,000 $1,660

Class D Up to $1,000,000 $2,214

Class E Up to $2,500,000 $2,882

Class F Over $2,500,000 $3,550

In addition to the annual fee, the commission will assess all applicants the actual costs incurred in conducting the investigation and inspection necessary for initial certification, quality control inspection for additional activities or product lines, and renewal of licenses when travel cost is incurred to complete the investigation.



6. permits

agricultural fair/

special property

bingo

Class A One location and event only $ 26

(See WAC 230-04-191)

Class B Annual permit for specified $161

different events and locations

(See WAC 230-04-193)

recreational (See WAC 230-02-505

gaming activity and 230-25-330) $ 52

(RGA)



7. changes

name (See WAC 230-04-310) $26

location (See WAC 230-04-320) $26

business (Same owners) $52

classification (See WAC 230-04-340)

license class (See WAC 230-04-260)

New class fee, less

previous fee paid, plus $26

duplicate (See WAC 230-04-290) $26

license

ownership (See WAC 230-04-340) $52

of stock

license (See WAC 230-04-125, $52

transfers 230-04-340, and

230-04-350)



8. special fees

investigation (See WAC 230-04-240) As required

identification and (See WAC 230-08-017) As required

inspection

services stamps

quality control (See WAC 230-30-030) As required

inspection fees

replacement of (((See WAC 230-30-016))) $26

identification (((See WAC 230-30-017)))

stamps (See WAC 230-30-017)

exceeding license (See WAC 230-04-260) As required

class

review, (((See WAC 230-08-017))) As required

inspection and/ (See WAC 230-12-315)

or evaluation

of equipment,

paraphernalia,

services, or

schemes

special sales (See WAC 230-04-115) As required

permits



9. six-month (See WAC 230-04-190) $26

payment plan



[Statutory Authority: RCW 9.46.070 and 9.46.116. 96-24-007 (Order 304), 230-04-203, filed 11/21/96, effective 1/1/97. Statutory Authority: RCW 9.46.070. 95-12-052, 230-04-203, filed 6/2/95, effective 7/3/95; 95-02-003 and 94-23-007, 230-04-203, filed 12/22/94 and 11/3/94, effective 1/22/95 and 1/1/95.]

NOTES:

Reviser's note: RCW 34.05.395 requires the use of underlining and deletion marks to indicate amendments to existing rules, and deems ineffectual changes not filed by the agency in this manner. The bracketed material in the above section does not appear to conform to the statutory requirement.

Reviser's note: The typographical errors in the above section occurred in the copy filed by the agency and appear in the Register pursuant to the requirements of RCW 34.08.040.

AMENDATORY SECTION (Amending WSR 94-01-033, filed 12/6/93, effective 1/6/94)

WAC 230-08-040 Sales invoices--Minimum information to be recorded for transfer of gambling equipment and merchandise--Retention--Penalties. The following requirements apply to sales invoices:

(1) In addition to entries required by WAC 230-08-025, the following information shall be recorded on invoices for sales or transfer of gambling equipment and merchandise:

(((1) Punchboards/pull tabs - for each board or series:

(a) Trade name of device;

(b) Type of device;

(c) Form number or other manufacturer-assigned scheme to specifically identify a device, including the size or number of chances; and

(d) Identification and inspection services stamp number.

(2) Pull tab dispensing devices:

(a) Trade name of device;

(b) Type of device; and

(c) Identification and inspection services stamp number.

(3) Disposable bingo cards - for each set of cards or collation of packets:

(a) Type of product, including product line;

(b) Description of product, including the number of cartons, "series," "on," "cut," and "up";

(c) Identification and inspection services stamp number;

(d) Serial number or, if packets, serial number of the top page;

(e) Color and border pattern or, if packets, color and border pattern of the top page; and

(f) The unit or package number when a series or collation has been divided as authorized in WAC 230-20-192(6).

(4) All other gambling equipment:

(a) Trade name of device;

(b) Type of device;

(c) Serial number or other identification numbers or characteristics; and

(d) Identification and inspection services stamp number.))

(a) Punchboards/pull tabs - for each board or series:

(i) Trade name of device;

(ii) Type of device;

(iii) Form number or other manufacturer-assigned scheme to specifically identify a device, including the size or number of chances; and

(iv) Identification and inspection services stamp number.

(b) Pull tab dispensing devices:

(i) Trade name of device;

(ii) Type of device; and

(iii) Identification and inspection services stamp number.

(c) Disposable bingo cards - for each set of cards or collation of packets:

(i) Type of product, including product line;

(ii) Description of product, including the number of cartons, "series," "on," "cut," and "up";

(iii) Identification and inspection services stamp number;

(iv) Serial number or, if packets, serial number of the top page;

(v) Color and border pattern or, if packets, color and border pattern of the top page; and

(vi) The unit or package number when a series or collation has been divided as authorized in WAC 230-20-192(6).

(d) Merchandise to be used as prizes for any gambling activity, whether purchased from a licensed distributor or from other than a licensed distributor, must be recorded on a sales invoice or receipt. The following information must be on the sales invoice or receipt provided by the seller:

(i) The date of purchase;

(ii) The company's name and adequate business address;

(iii) A full description of each item purchased;

(iv) The quantity of items purchased; and

(v) The cost per individual items purchased; and

(e) All other gambling equipment:

(i) Trade name of device;

(ii) Type of device;

(iii) Serial number or other identification numbers or characteristics; and

(iv) Identification and inspection services stamp number.

(2) All sales invoices and receipts must be maintained by the operator for at least three years.

(3) Any manufacturer, distributor, or licensed representative of either, who fails to accurately complete any invoice for the sale or return of a punchboard, pull tab series, pull tab dispensing device, disposable bingo cards, related merchandise, or other gambling device may be assessed a fee of up to fifty dollars per incomplete invoice. The fee shall be used to defray extra costs incurred by the commission in tracking transfers or other monitoring procedures as a result of errors or omissions.

[Statutory Authority: RCW 9.46.070. 94-01-033, 230-08-040, filed 12/6/93, effective 1/6/94.]

NEW SECTION

WAC 230-08-270 Transfer of any gambling devices requiring identification and inspection services stamps to be affixed. (1) Persons selling or otherwise furnishing punchboards, pull tabs, pull tab dispensing devices, disposable bingo cards, or other gambling equipment shall account for every such device received and/or transferred.

(2) All transfers shall be made by completing a sales invoice or credit memo, in accordance with WAC 230-08-040 and 230-08-025.

[]

NEW SECTION

WAC 230-12-315 Request for services related to gambling activities--Fees. Any person requesting commission staff review, inspection, and/or evaluation of equipment, paraphernalia, services, or schemes related to licensed gambling activities shall reimburse the commission the cost to conduct such. If the requestor is currently licensed or has applied for a license, there will be no assessment of cost for the first two hours of service: Provided, That this two-hour exemption does not apply to any review conducted as part of a prelicensing investigation. A deposit of the estimated cost may be required prior to performance of such service. If a deposit is required, it shall be received by the commission prior to the performance of any substantial work on the request.

[]

AMENDATORY SECTION (Amending 304, filed 11/21/96, effective 1/1/97)

WAC 230-08-017 Control of gambling equipment--Use of identification and inspection services stamps. To ensure gambling equipment is used only as authorized, manufacturers, distributors, and operators shall maintain close control over all gambling equipment in their possession. Each transfer of such equipment shall be documented by completing an invoice or other written record setting forth the information required by WAC 230-08-040. Identification and inspection services stamps obtained from the commission shall be used to identify gambling equipment and shall be permanently and conspicuously affixed to all equipment and devices designated by the commission. Once attached, identification and inspection services stamps shall not be removed, disfigured, or otherwise tampered with by any person. These stamps shall be attached and controlled in the following manner:

(1) Identification and inspection services stamps shall be attached to the following gambling equipment and devices:

(a) Punchboards and pull tab series;

(b) Pull tab dispensing devices;

(c) Disposable bingo cards: Provided, That this requirement applies to cards shipped for use in Washington state after December 31, 1993. All inventory on hand at the distributor and operator level at the close of business on December 31, 1993, shall be exempt from this requirement;

(d) Coin or token-activated amusement games operated at any Class A amusement game license location;

(e) Electronic bingo card daubers; and

(f) Other gambling equipment or devices, as determined by the director.

(2) Identification and inspection services stamps shall only be sold to and attached by licensed manufacturers or commission staff: Provided, That a licensed owner of controlled gambling equipment may purchase and attach stamps ((per WAC 230-30-018)) as outlined in subsections (7) and (8) of this section;

(3) The fee charged for identification and inspection services stamps shall be set by the commission at a level sufficient to fund regulation and control of gambling equipment. Fees shall be as set out below:

(a) Punchboards and pull tabs:

(i) Standard - wagers fifty cents and below - twenty-seven cents;

(ii) Standard - wagers over fify cents - one dollar;

(iii) (((ii))) Progressive jackpot pull tab series - ten dollars per series;

(((iii) Bonus pull tab series with carry-over jackpot prizes - five dollars;))

(b) Pull tab dispensing devices(([;][:])):

(i) Mechanical and electro-mechanical - twenty-seven cents:

(ii) Electronic - pull tab dispensing devices that require initial and ongoing evaluation of electronic components or functions, such as reading encoded data on pull tabs, accounting for income or prizes, and other functions determined by the director - one hundred dollars annually.

(c) Disposable bingo cards:

(i) Sets of individual cards or sheets of cards - twenty-seven cents;

(ii) Collations of cards - one dollar and ten cents.

(d) Coin or token-activated amusement games operated at any Class A amusement game license location - twenty-five dollars annually;

(e) Electronic bingo card daubers - ten dollars annually;

(f) Other equipment or devices - the actual cost of inspection or approval, as determined by the director.

(4) Devices that require identification and inspection services stamps to be installed annually shall have such stamps attached prior to placing any device into play and, on or before December 31 of the year preceding operation for each subsequent year: Provided, That annual identification and inspection services stamps shall be purchased and attached to electronic pull tab dispensing devices, coin operated amusement games, and electronic bingo card daubers located in the state on December 31, 1996, prior to the operation of such devices on or after January 1, 1997.

(5) Identification stamps shall only be affixed to gambling equipment or devices in such a manner as to assure reasonable inspection without obstruction. If equipment is enclosed or packaged within protective materials, the stamps shall be readily visible for inspection without removal of any portion of the protective packaging: Provided, That when more than one device is packed in a shipping carton, this requirement shall not apply if the identification and inspection services stamp numbers of all devices contained in the carton are printed or otherwise noted on the outside of the carton. Stamps and records entry labels shall be affixed in the following manner:

(a) Punchboards - on the reverse side in an area that will not obstruct removal of punches: Provided, That if sufficient space is not available on the reverse side, the records entry labels may be wrapped around and/or partially attached to the edge of a punchboard in a manner that will not obstruct display of prizes available or other information required by rules of the commission;

(b) Pull tabs - on the face or reverse side of the flare. If placed on the face, then they must be in an area that will not obstruct prizes available or any other information required by rules of the commission;

(c) Pull tab dispensing devices - on the outside of the main body, in an area that is not normally removed and replaced, and in a manner that will not obstruct the view of the pull tabs available for play. The records entry labels shall not be affixed to dispensing devices and may be discarded; and

(d) Disposable bingo cards - on the packing label attached to the outside of the shipping carton. Records entry labels shall be attached to the packing slip: Provided, That when a set or collation of cards is packed in more than one shipping carton, the stamp shall be attached to carton number one and the stamp number imprinted on all remaining shipping cartons.

(6) Identification and inspection services stamps shall not be attached to gambling equipment or devices that do not comply with rules of the commission. If a piece of equipment or a device requires specific commission approval, stamps shall not be affixed prior to such approval((; and)).

(7) ((Any person requesting commission staff review, inspection, and/or evaluation of equipment, paraphernalia, services, or schemes related to licensed gambling activities shall reimburse the commission the cost to conduct such. If the person requesting the service is currently licensed, there will be no assessment of cost for the first hour of service. A deposit of estimated cost may be required prior to performance of such service.)) A licensed owner of gambling devices which require annual identifications and inspection services stamps may purchase such from the commission. The licensee shall submit the appropriate fee, along with a form provided by the commission, to obtain the stamps.

(8) A licensed owner of pull tab dispensing devices may obtain a commission identification and inspection services stamp to replace an identification stamp affixed to a pull tab dispensing device that has become unidentifiable due to wear. The fee for replacement of the stamp shall be as required by WAC 230-04-202 and/or 230-04-203. The operator or distributor shall furnish the following information to the commission:

(a) A copy of the invoice from the operator, distributor or manufacturer for the purchase of the dispensing device in question; or

(b) A complete description of the pull tab dispensing device, serial number, manufacturer, and the commission stamp number previously affixed to the device, if known.

(9) Manufacturers shall maintain records that will allow accountability for all identification and inspection services stamps issued to them by the commission for at least three years after they are affixed to devices and sold. This accountability shall be by indefinite retention of unused or damaged stamps or by records as set out in WAC 230-08-025: Provided, That damaged stamps may be returned to the commission and will be replaced with serviceable stamps if they are accompanied by a detailed listing of the damaged stamps and a ten cent per stamp service charge.

[Statutory Authority: RCW 9.46.070 and 9.46.116. 96-24-007 (Order 304), 230-08-017, filed 11/21/96, effective 1/1/97. Statutory Authority: RCW 9.46.070. 94-23-007, 230-08-017, filed 11/3/94, effective 1/1/95; 94-01-033, 230-08-017, filed 12/6/93, effective 1/6/94. Statutory Authority: Chapter 9.46 RCW. 91-21-053 (Order 228), 230-08-017, filed 10/15/91, effective 11/15/91. Statutory Authority: RCW 9.46.070 (4), (11) and (14). 89-24-002 (Order 201), 230-08-017, filed 11/27/89, effective 12/28/89. Statutory Authority: RCW 9.46.070 (8), (11) and (14). 88-13-060 (Order 179), 230-08-017, filed 6/14/88.]

NOTES:

Reviser's note: RCW 34.05.395 requires the use of underlining and deletion marks to indicate amendments to existing rules, and deems ineffectual changes not filed by the agency in this manner. The bracketed material in the above section does not appear to conform to the statutory requirement.

Reviser's note: RCW 34.05.395 requires the use of underlining and deletion marks to indicate amendments to existing rules. The rule published above varies from its predecessor in certain respects not indicated by the use of these markings.

Reviser's note: The spelling error in the above section occurred in the copy filed by the agency and appears in the Register pursuant to the requirements of RCW 34.08.040.

AMENDATORY SECTION (Amending Order 198, filed 10/17/89, effective 11/17/89)

WAC 230-30-030 Punchboard and pull tab quality control program--Special inspections ((and transfer invoices--Special fees to recover costs)), defective devices, reimbursements, and fees. In order to ensure the integrity of punchboards and pull tab series, the commission shall establish and maintain a quality control program. This program shall include a level of inspection and evaluation deemed necessary by commission staff to assure standards set forth in this title are met. The cost of administering this program shall be borne by licensed manufacturers. The quality control program shall include at least the following:

(1) Special inspections - the commission shall have the authority to select any punchboard or pull tab series, whether held by an operator, storage service, distributor, or manufacturer and to examine the quality and/or integrity of the punchboard or pull tab series in any manner, including punching out or pulling all chances remaining thereon((: Provided, That if the punchboard or pull tab series so inspected is thereby altered in any manner and no defect, alteration, deceptive condition, or other violation is discovered, then the owner shall be reimbursed by the commission for his cost for the punchboard or pull tab series, and the device shall become the property of the commission. Provided further, That for each such punchboard or pull tab series inspected which is found to be defective in any area related to a quality control deficiency, by the manufacturer, a fee not to exceed $100.00 per each such punchboard or pull tab series inspected may be assessed by the commission against the manufacturer of the punchboard or pull tab series to compensate the commission for the inspection.

(2) Transfer invoices - any manufacturer, distributor, or licensed representative of either, that fails to accurately complete any invoice for the sale or return of a punchboard, pull tab series, dispensing device, or related merchandise as required by WAC 230-30-018 may be assessed a fee of up to $50.00 per invoice. The fee shall be used to defray extra costs incurred by the commission in tracking transfers or other monitoring procedures as a result of errors or omissions)). Manufacturers shall be responsible for reimbursing distributors or operators for unused games selected by the commission for quality control testing purposes. The reimbursement process shall be determined by commission policy. Manufacturers may be billed for the cost of quality control investigations which exceed forty hours of commission staff time.

(2) Defective punchboards or pull tab series - each punchboard or pull tab series which is deemed to be defective or unplayable shall be treated as follows, based on the status of the game:

(a) No punchboard or pull tab series which has been placed out for play and for which punches or tabs have been sold shall be returned to the distributor or manufacturer without commission approval. Upon discovery of a defect, the operator shall remove the board or series from play and notify the commission. The commission shall complete a quality control report which shall be used to return the board or series to the distributor or manufacturer; and

(b) Defective or recalled boards or series which have not yet been opened may be returned to the distributor or manufacturer without a quality control report.

(3) Credits or reimbursements for defective punchboards or pull tab series:

(a) Manufacturers shall reimburse distributors or operators for the cost of a replacement board or series which comply with subsection (2) of this section;

(b) Manufacturers may, at their discretion, reimburse operators for only actual net losses resulting from the play of a board or series due to its defect; and

(c) Credits and reimbursements for defective punchboards or pull tab series shall be handled as follows:

(i) All boards or series returned to a distributor or manufacturer shall be properly recorded on a credit memo in accordance with WAC 230-08-025; and

(ii) Reimbursements of actual net losses incurred from manufacturers to operators may be given through a credit memo to a distributor or a check to the operator. Adequate supporting documentation for all reimbursements must be retained by the manufacturer.

(4) Commission fees to recover costs for defective punchboards or pull tab series - the commission may assess a fee not to exceed one hundred dollars for each defective punchboard or pull tab series sold to operators for which a quality control report is completed. In addition, this fee shall not be assessed beyond the fifth series of a particular form number with the same defect.

[Statutory Authority: RCW 9.46.070(6). 89-21-069 (Order 198), 230-30-030, filed 10/17/89, effective 11/17/89. Statutory Authority: RCW 9.46.070 (1), (4), (5), (6), (7), (11), (14) and (17) and 9.46.310. 85-01-065 (Order 145), 230-30-030, filed 12/18/84. Statutory Authority: RCW 9.46.070 (5), (7), (8), (9), (11), (14) and (19). 84-13-038 (Order 140), 230-30-030, filed 6/15/84; Order 5, 230-30-030, filed 12/19/73.]

AMENDATORY SECTION (Amending Order 305, filed 11/21/96, effective 1/1/97)

WAC 230-30-040 Bonus pull tab ((games and carry-over jackpots))--Definitions--Restrictions. For purposes of this title, the following definition((s, restrictions,)) and requirements apply to bonus pull tab ((games and carry-over jackpots)) series:

(1) ((Definitions:

(a))) Bonus pull tab ((game)) series definition - A pull tab ((game)) series that includes a predetermined number of pull tabs which allow a player the opportunity to advance to a bonus section to determine the prize.

(((b) Carry-over jackpot prizes - A designated jackpot prize on a bonus pull tab game which, if not won, is carried over to another bonus pull tab game. There is no progression of the jackpot prize based on sales or receipts.))

What are the requirements of bonus pull tab games?

(2) Bonus pull tab ((games)) series must comply with the following:

(a) Each flare shall clearly set out the following:

(i) All prizes available, in accordance with WAC 230-30-106 (((2)(b)));

(ii) The number of chances available to advance and win a larger prize; and

(iii) The number of winning tabs at each prize level;

(b) Only guaranteed or minimum prizes may be used in calculating the sixty percent payout required by WAC ((230-30-075)) 230-30-080.

(c) The following are prohibited for use with bonus pull tab series:

(i) Substitute flares;

(ii) Merchandise prizes; and

(iii) "Last sale" prizes ((are not allowed on bonus pull tab games)).

((What additional requirements apply to bonus pull tab games with carry-over jackpots?))

(((3) Bonus pull tab games with carry-over jackpot prizes must meet the following additional requirements:

(a) The carry-over jackpot prize amount shall not be included in the sixty percent payout calculation;

(b) The amount of the carry-over jackpot prize and the method of carry-over shall be determined by the manufacturer and disclosed on the flare; and

(c) Carry-over jackpot prize amounts may not exceed two thousand five hundred dollars as required by WAC 230-30-075(2); and

(d) Carry-over jackpot prizes are authorized only on flares designed for bonus pull tab games. No substitute flares are allowed.))

((In bonus pull tab games with carry-over jackpots how must winning tickets be redeemed and what records should I keep?))

(((4) The following requirements apply to the redemption of winning tickets and record keeping for bonus pull tab games with carry-over jackpots:

(a) For jackpot prizes one thousand two hundred dollars and over, the winner's full name, address, and social security number shall be recorded on a separate form for income tax purposes;

(b) All winning tabs and winner information for jackpot prizes, along with the game flares, must be retained for at least one year from the date from which the games were removed from play;

(c) Winning tabs shall be redeemed in the same manner as required by WAC 230-30-070. For prizes where the winning tab is part of the flare, the amount of the prize awarded and the information required to be documented in WAC 230-30-070 (7)(a) shall be recorded on a separate piece of paper, as authorized by WAC 230-30-070 (7)(c); and

(d) Operators are required to maintain a separate record documenting the flow of carry-over jackpots from one game to another.

(e) Once all opportunities in a section of the flare have been won, all references to prizes no longer available to be won must be deleted from the flare.))

((What aspects of bonus pull tab games with carry-over jackpots require agency approval, and what standards are applicable to this approval process?

(5) The director shall approve all bonus pull tab games with carry-over jackpot prizes.

(a) The following shall be approved prior to sale in Washington:

(i) The manufacturing process used to manufacture bonus pull tab games with carry-over jackpot prizes; and

(ii) The secondary win code system.

(b) Any costs related to the approval of bonus pull tab games with carry-over jackpot prizes shall be billed to the persons requesting approval.))

[Statutory Authority: RCW 9.46.070, 9.46.120, 9.46.0273, 9.46.310 and 34.05.313. 96-24-006 (Order 305), 230-30-040, filed 11/21/96, effective 1/1/97.]

Reviser's note: RCW 34.05.395 requires the use of underlining and deletion marks to indicate amendments to existing rules. The rule published above varies from its predecessor in certain respects not indicated by the use of these markings.

Reviser's note: The typographical error in the above section occurred in the copy filed by the agency and appears in the Register pursuant to the requirements of RCW 34.08.040.

AMENDATORY SECTION (Amending WSR 95-23-109, filed 11/22/95, effective 1/1/96)

WAC 230-30-050 Punchboard and pull tab ((operation)) operating restrictions and dispensing limitations. The following operating restrictions and dispensing limitations apply to punchboards and pull tabs:

(1) No person under the age of eighteen years and no person visibly intoxicated or visibly under the influence of any narcotic, shall be allowed to play or sell any punchboard or pull tab ((device)) series. It shall be the responsibility of both the licensee and ((the responsibility of)) the person physically operating the punchboard or pull tab ((device)) series to determine and ensure that no unauthorized person is allowed to play or sell.

(2) No operator shall permit the display or operation of any punchboard or pull tab which may have in any manner been marked, defaced, tampered with or otherwise placed in a condition, or operated in a manner, which may deceive the public or which affects the chances of winning or losing upon the taking of any chance thereon.

(3) ((All pull tabs must be sold from a commission approved dispensing device or a clear container. If pull tabs are sold out of a clear container, the complete series must be placed in a container and mixed prior to being offered for sale. Failure to mix may result in a minimum five day suspension of license for each series not mixed. Licensees may bundle pull tabs into stacks of up to twenty dollars, provided the bundles are thoroughly mixed prior to sale to the public.

(4))) No punchboard or pull tab series shall be placed out for play unless it meets the requirements of WAC 230-30-080.

(4) Once placed out for play, a punchboard or pull tab series flare may not be modified or otherwise changed, except for the deletion of prizes as required by WAC 230-30-070.

(5) All records, reports and receipts relating to a punchboard or pull tab series in play must be retained on the licensed premises so long as the series or punchboard is in play and be made available on demand to law enforcement officers and representatives of the commission.

(((5) When operators purchase merchandise to be used as prizes on punchboards or pull tab series from other than a licensed distributor, the following information must be on the invoice provided by the seller:

(a) The date of purchase;

(b) The company's name and adequate business address;

(c) A full description of each item purchased;

(d) The quantity of items purchased;

(e) The cost per individual items purchased; and

(f) The sales invoice or receipt must be maintained by the operator for at least three years.)) (6) Pull tab dispensing limitations:

(a) No pull tab shall be added to a series of pull tabs after that series has been shipped from its place of manufacture;

(b) All pull tabs must be sold from a commission approved dispensing device or a transparent container. If sold from a transparent container, the pull tabs must be visible to the players so that the players are able to estimate the number of chances remaining in the series;

(c) All pull tabs in a series must be thoroughly mixed prior to being placed in a dispensing device or clear container and being offered for sale. Failure to mix may result in a minimum five-day suspension of license for each series not mixed;

(d) Licensees may assemble pull tabs into bundles with a sales price of up to twenty dollars: Provided, That the bundles must be thoroughly mixed prior to sale to the public;

(e) No person shall put out any pull tab series for play unless the series of pull tabs is wholly contained within the device or container used for dispensing that series. In cases where a spindle is used, the series of pull tabs may sit upon the device or container used for dispensing that series: Provided, That progressive jackpot pull tab games, as authorized by WAC 230-30-025, may utilize more than one machine for a series;

(f) No pull tab series, or any portion thereof, shall be placed in any pull tab dispensing device or container until any other series of pull tabs previously in the device or container has been played out or permanently removed from play: Provided, That in the use of a multiple series dispensing device, each series shall be played independently and in accordance with this provision;

(g) Once placed out for play, no pull tab shall be removed from the dispensing device or container until it is sold or the series is permanently removed from play, except only:

(i) Those pull tabs removed by commission representatives or other law enforcement agency inspecting the device; or

(ii) Those tabs temporarily removed during necessary repair or maintenance of the dispensing device or container; and

(7) Any punchboard or pull tab series that is permanently removed from play shall not be placed out for further play under any circumstances: Provided, That boards or series may be temporarily removed from play for any of the following reasons and returned to normal play at a later time:

(a) Pull tab series removed under authority of subsection (6)(g);

(b) To reserve a game for a specific player when:

(i) The licensee has established house rules for reserving games that include reasons or conditions for reserving such games and the maximum time for which a game may be reserved;

(ii) The house rules are clear in meaning and posted in a manner that players can observe; and

(iii) The board or series is clearly identified as reserved;

(c) A board or series is designated to be played during certain hours of the licensee's operation, such as "happy hour." Such games shall be clearly identified and house rules shall be posted regarding hours of play and/or other conditions affecting play.

[Statutory Authority: RCW 9.46.070 (1)-(4), (7), (8), (11), (12), (14), (20) and 9.46.110 (3), (4). 95-23-109, 230-30-050, filed 11/22/95, effective 1/1/96. Statutory Authority: RCW 9.46.070. 94-11-095 (Order 251), 230-30-050, filed 5/17/94, effective 7/1/94. Statutory Authority: RCW 9.46.070 and chapter 34.05 RCW. 90-21-053, 230-30-050, filed 10/15/90, effective 11/15/90. Statutory Authority: RCW 9.46.070 (4), (8), (11) and (14). 86-07-037 (Order 155), 230-30-050, filed 3/14/86. Statutory Authority: RCW 9.46.020 (1) and (23) and 9.46.070(1). 85-11-023 (Order 150), 230-30-050, filed 5/13/85. Statutory Authority: RCW 9.46.070(8). 81-21-033 (Order 114), 230-30-050, filed 10/15/81; Order 5, 230-30-050, filed 12/19/73.]

AMENDATORY SECTION (Amending Order 173, filed 11/23/87)

WAC 230-30-055 Standards for construction of punchboards. All punchboards sold for use in the state of Washington must comply with the following standards:

(1) Patterns: The punchboard shall be designed and manufactured with special care so as to eliminate any patterns between punchboards, or portions of punchboards, from which the location or approximate location of winning punches may be determined. Winning punches shall be randomly distributed and mixed among all other punches in the punchboard. Manufacturers shall employ at least the following steps to insure that no pattern exists.

(a) The form or permanent number sheets shall be mixed prior to cutting;

(b) After the strips (straws) have been crimped, all strips shall be thoroughly mixed prior to insertion in punchboards;

(c) When filling punchboards, workers shall alter the procedures for filling each separate set, so as to prevent any pattern between sets of punchboards; and

(d) No more than eight punchboards from any one set of boards shall be included in any case of punchboards for shipment to Washington.

(2) Serial numbers: ((Effective July 1, 1988,)) Serial numbers set forth on the form or permanent number sheets shall be nonsequential so as to ensure that no pattern is created which would permit the tracking of boards through the serial number.

(3) Guaranteed numbers: All numbers or symbols designated as winners on the flare must be guaranteed by the manufacturer as being present in the board. The manufacturer may at their option place a sticker or equivalent on the back of each punchboard setting forth additional numbers or symbols that are guaranteed to be in the board. The additional numbers or symbols on the back of the board shall not exceed 5% of the total punches in the board without the written permission of the commission.

(4) Security: All punchboards must be sealed so it is impossible to determine the number or symbol of any punch prior to being punched out of the board by any method or device including but not limited to the use of markings or light. Punchboards which have taped sides, corners, or edges are prohibited.

(5) Step-up boards:

(a) All cards, straws, or punches that contain the winners in the step-up portion of any punchboard shall be completely sealed so as to prevent premature winner identification and such items shall be thoroughly mixed so as to ensure that no pattern of winners exists.

(b) Step-up boards that contain winners covered by seals must have at least twenty-five different face sheets for use on that specific step-up board. Face sheets shall be utilized in such a manner so as to ensure random distribution during the manufacturing process.

[Statutory Authority: RCW 9.46.070 (11) and (14). 87-24-016 (Order 173), 230-30-055, filed 11/23/87.]

AMENDATORY SECTION (Amending Order 305, filed 11/21/96, effective 1/1/97)

WAC 230-30-070 Control of prizes -- Restrictions -- Bonus Prizes -- Displaying -- Procedures for awarding. Punchboard and pull tab prizes shall be closely controlled to ensure players are not defrauded.

What may be awarded as a punchboard or pull tab prize?

(1) All prizes from the operation of punchboards and pull tabs shall be awarded in cash or in merchandise.

(a) No licensee shall offer to pay cash in lieu of merchandise prizes which may be won.

(a) Value of merchandise prizes. (b) For purposes of this rule, the retail value of a merchandise prize shall be the amount actually paid ((therefor)) by the licensed operator plus 50 percent of that actual cost.

(([(b)])) (((b))) (2) Additional chances on a punchboard or pull tab game may not be awarded as a prize. Provided, That prizes may involve the opportunity to advance and win ((bonus prizes)) a larger prize on the same punchboard or pull tab game as set forth in subsection (3) (4) ((below)) of this section.

What is a bonus prize?

(((2))) (3) A bonus prize is a prize offered in a bonus pull tab game, defined in WAC 230-30-040(1). A step-up prize is a prize offered on a punchboard. The awarding of these prizes involves an immediate, additional opportunity to advance to a section of the game to determine the prize.

What additional requirements apply to the offering of bonus or step-up prizes?

(((3))) (4) ((The)) On games where players advance, the bonus or step-up prizes may not be less than the highest prize available, ((whether cash or merchandise,)) which might otherwise have been won by the punch or pull tab for which the opportunity was awarded. Each punchboard or pull tab game offering bonus or step-up prizes must clearly indicate on its flare the terms and conditions under which the bonus or step-up prize may be won, including the amount of the bonus or step-up prize.

How must prizes be displayed?

(((4))) (5) The licensee shall display prizes so that a customer can easily determine which prizes are available from any particular punchboard or pull tab series or device operated or located upon the premises. In addition, the following requirements apply.

(a) Merchandise prizes shall be displayed as follows:

(i) In the immediate vicinity of the punchboard or pull tab series and in plain view;

(ii) If size or space constraints do not allow the prize to be displayed as provided in (a)(i) of this subsection, the merchandise prize may be displayed elsewhere on the premises provided that a specific reference to that actual prize is noted on the flare; or

(iii) If the merchandise prize cannot be displayed on the premises, an accurate description and/or photograph of the prize must be displayed in plain view on or immediately adjacent to the flare.

(b) Cash prizes shall be clearly represented on the prize flare;

(c) Combination cash and merchandise prizes must meet the requirements of both ((subsections)) (a) and (b) of this subsection;

What is the procedure for removing prizes from flares and presenting prizes to winning players?

(((5))) (6) The following procedures apply to the removal of prizes from the game flare and the presentation of prizes to winning players:

(a) Upon determination of a winner of a merchandise prize, the licensee shall immediately remove that prize from the flare and present the prize to the winner upon demand;

(b) Upon determination of a winner of any cash prize ((of)) over twenty dollars ((or more)), or of any merchandise prize with a retail value ((of)) over twenty dollars ((or more)), the licensee shall permanently and conspicuously delete all references to that prize from any flare, punchboard, or pull tab dispensing device upon which such reference may appear, and from any other list, sign, or notice which may be posted, in such a manner that all future customers will know the prize is no longer available. On ((bonus)) step-up punchboards and bonus pull tab games, once all opportunities in a section of the flare have been won, all references to prizes no longer available to be won must be deleted on the flare. Operators may correct an inadvertently deleted prize by noting on the flare that such prize is still available. Such reference shall be permanently and conspicuously deleted when the prize is actually awarded. Failure to permanently and conspicuously delete a prize from the flare may result in the director initiating actions to revoke a license for violation of RCW 9.46.190 (defrauding a participant). The prize shall be paid or delivered to the winner only after all reference to such prize has been deleted from the flare.

What must I do if someone buys out a punchboard or pull tab game?

(((6))) (7) Payment of prizes. The licensee must pay or award to the customer or player playing the punchboard or pull tab series all such prizes that are required to be, but have not been, deleted from the flare when the punchboard or pull tab series is completely played out.

What is the procedure for redemption of winning pull tabs or punches?

(((7))) (8) Record of winners. When any person wins a cash prize of over twenty dollars or wins a merchandise prize with a retail value of more than twenty dollars from the play of any punchboard or pull tab series, the licensee or licensee's representative shall make a record of the win. The record of the win shall be made in the following manner:

(a) The winners shall be required to print their name and date of birth, in ink, upon the side of the winning punch or tab opposite the winning symbol(s);

(b) The licensee or their representative shall then verify the winner's identity and record the date and initial the winning punch or tab; and

(c) If the pull tab or punch is constructed or printed in such a manner as to preclude recording the information required in (a) and (b) of this subsection in a legible manner, the licensee may record the required information on a sheet of paper not less than three inches by five inches and staple the winning tab or punch thereto.

(((8))) (9) Defacing winning punches or tabs. The licensee shall, within twenty-four hours after a winning pull tab or punch of twenty dollars or more has been presented for payment, mark or perforate the winning symbols in such a manner that the pull tab or punch cannot be presented again for payment.

What special operating conditions apply to spindle, banded, or jar type pull tab games which award merchandise prizes only?

(((9))) (10) Spindle, banded, or "jar" type pull tabs played in a manner which awards merchandise prizes only. Pull tab series which award only merchandise prizes valued at no more than twenty dollars, are hereby permitted to employ schemes whereby certain predesignated pull tabs are free or the player is otherwise reimbursed the actual cost of said pull tabs. Flares for spindle-type pull tabs operated in this manner shall designate the total number of pull tabs in the series and the total number of pull tabs designated as free or reimbursable. Free or reimbursable pull tabs in these types of pull tab series shall not constitute a prize or prizes nor shall moneys collected and later reimbursed constitute revenue for the purposes of determining gross gambling receipts.

[Statutory Authority: RCW 9.46.070, 9.46.120, 9.46.0273, 9.46.310 and 34.05.313. 96-24-006 (Order 305), 230-30-070, filed 11/21/96, effective 1/1/97. Statutory Authority: RCW 9.46.070 (1)-(4), (7), (8), (11), (12), (14), (20) and 9.46.110 (3), (4). 95-23-109 and 95-24-048, 230-30-070, filed 11/22/95 and 11/30/95, effective 1/1/96. Statutory Authority: RCW 9.46.070. 94-23-094, 230-30-070, filed 11/17/94, effective 1/1/95. Statutory Authority: Chapter 9.46 RCW. 91-21-053 (Order 228), 230-30-070, filed 10/15/91, effective 11/15/91. Statutory Authority: RCW 9.46.070. 90-24-005 (Order 218), 230-30-070, filed 11/26/90, effective 12/27/90. Statutory Authority: RCW 9.46.070 (11) and (14). 90-11-058, 230-30-070, filed 5/15/90, effective 6/15/90. Statutory Authority: RCW 34.05.220(4), [34.05].230 and 9.46.070 (11) and (14). 90-05-032 (Order 205), 230-30-070, filed 2/14/90, effective 3/17/90. Statutory Authority: RCW 9.46.070 (11) and (14). 89-17-056 (Order 196), 230-30-070, filed 8/15/89, effective 9/15/89. Statutory Authority: RCW 9.46[.070] (8), (14). 87-17-052 (Order 171), 230-30-070, filed 8/18/87. Statutory Authority: Chapter 9.46 RCW. 87-03-023 (Order 164), 230-30-070, filed 1/13/87. Statutory Authority: RCW [9.46.]070 (1), (2) and (11) and [9.46.]110. 85-21-046 (Order 154), 230-30-070, filed 10/14/85. Statutory Authority: RCW 9.46.070 (8), (11) and (14). 85-03-024 (Order 142), 230-30-070, filed 1/9/85. Statutory Authority: RCW 9.46.070 (8) and (11). 82-01-065 and 82-03-033 (Order 115 and 116), 230-30-070, filed 12/18/81 and 1/18/82; 81-21-033 (Order 114), 230-30-070, filed 10/15/81. Statutory Authority: RCW 9.46.070(10). 79-09-029 (Order 91), 230-30-070, filed 8/14/79; Order 43, 230-30-070, filed 11/28/75; Order 29, 230-30-070, filed 1/23/75; Order 27, 230-30-070, filed 11/15/74; Order 23, 230-30-070, filed 9/23/74; Order 14, 230-30-070, filed 3/27/74; Order 12, 230-30-070, filed 2/14/74; Order 5, 230-30-070, filed 12/19/73.]

NOTES:

Reviser's note: RCW 34.05.395 requires the use of underlining and deletion marks to indicate amendments to existing rules, and deems ineffectual changes not filed by the agency in this manner. The bracketed material in the above section does not appear to conform to the statutory requirement.

Reviser's note: RCW 34.05.395 requires the use of underlining and deletion marks to indicate amendments to existing rules. The rule published above varies from its predecessor in certain respects not indicated by the use of these markings.

Reviser's note: The typographical errors in the above section occurred in the copy filed by the agency and appear in the Register pursuant to the requirements of RCW 34.08.040.

AMENDATORY SECTION (Amending Order 261, filed 12/5/94, effective 1/5/95)

WAC 230-30-072 Punchboard and pull tab inventory control--Retention requirements--Audit adjustments. Each punchboard and pull tab series purchased or otherwise obtained by an operator shall be controlled and accounted for ((in the following manner: (1))). Each operator shall closely monitor punchboard and pull tab series purchased to assure that Washington state identification and inspection service stamp numbers are correctly entered in all records and each device purchased is properly recorded. The following control procedures apply:

(((a) At the time a punchboard or pull tab series is delivered, each operator will assure that all required data is correctly recorded by the distributor by comparing the actual Washington state identification and inspection services stamp number attached to each punchboard and pull tab series to the number recorded on the purchase invoice;

(b))) (1) The delivery/receipt of punchboards and pull tab series shall be recorded as follows:

(a) All purchases of punchboards or pull tab series shall be recorded on a standard distributor's invoice, which will be used by the operator as a record to account for the punchboard or pull tab series between the time it is purchased and removed from play. Each invoice shall include space for the operator to ((either)) attach ((a)) the records entry label ((or enter the Washington state identification and inspection services stamp number)) from the device and the date the device was placed out for play: Provided, That in lieu of the distributor's invoice recording system, licensees utilizing a computerized recordkeeping system may use a separate inventory record to account for purchases and uses of punchboards and pull tabs((. Entries required to be made by the distributor on the purchase invoice shall be entered by the operator on the alternative inventory record at the time devices are received. The inventory record may be manually maintained or generated from a computer data base. If generated from a computer data base, all requirements relating to computer data base records and printouts, as set out in WAC 230-08-010 (6) and (7) shall be followed. Inventory records shall include space for the following entries for each punchboard or pull tab series purchased or otherwise obtained:

(i) Distributor's name;

(ii) Invoice number;

(iii) Date of purchase;

(iv) Name of the punchboard or pull tab series;

(v) Date placed into play;

(vi) The Washington state identification and inspection services stamp number entered by the distributor at the time of purchase; and

(vii) The Washington state identification and inspection services stamp number entered by the operator by attaching a records entry label at the time the device is placed into play: Provided, That a computer generated facsimile of the number may be imprinted on the inventory record in lieu of a records entry label;

(c))) as long as all necessary information is recorded. For these records, a computer generated facsimile of the stamp number may be imprinted on the inventory record in lieu of a records entry label.

(b) At the time a punchboard or pull tab series is delivered, each operator will assure that all required data is correctly recorded by the distributor by comparing the actual Washington state identification and inspection services stamp number attached to each punchboard and pull tab series to the number recorded on the purchase invoice;

(2) At the time a punchboard or pull tab series is placed into play, each operator shall record in the allotted space on the distributor's invoice or the inventory record the following:

(((i))) (a) Date placed into play; and

(((ii))) (b) Washington state identification and inspection services stamp number by attaching a records entry label((: Provided, That a computer generated facsimile of the number may be imprinted on the inventory record in lieu of a records entry label)).

(((d) If a device is returned to a distributor for any reason, including commission required recall, the operator shall record the date, invoice or credit memo number, and "returned" on the original purchase invoice or inventory log in the spaces allotted for "date-in-play" and "records entry label";

(2))) (3) Each punchboard or pull tab series which is removed from ((operation)) play, together with the prize flare, all unplayed tabs, and all winning punches or tabs, shall be retained by the operator and made available for inspection, on the licensed premises, by commission agents and/or local law enforcement and taxing agencies. If devices are stored off premises, they must be produced for inspection upon demand. The minimum retention time for devices removed from play shall be:

(a) Charitable or nonprofit licensees - at least four months following the last day of the month in which the device was removed from play; ((and))

(b) Commercial stimulant licensees - at least two months following the last day of the month in which the device was removed from play: Provided, That all winning punches or pull tabs in excess of twenty dollars shall be retained for at least ninety days following the day the device was removed from play: Provided further, That any commercial stimulant licensee ((that)) who fails to comply with all recordkeeping requirements of this title or who misstates gross gambling receipts by more than one percent during any calendar quarter shall be required, after written notification by the director, to retain all devices for at least four months following the last day of the month in which it was removed from play. Any licensee so restricted may petition the director to remove the increased retention requirement imposed after a minimum of one year. Any such petition shall include documentation of the steps taken to correct recordkeeping deficiencies. For purposes of computing gross gambling receipts for determining compliance with the recording accuracy requirement, the procedures in subsection (((5))) (6) of this section apply; and

(((3))) (c) In addition to (a) and (b) of this subsection, additional retention requirements may apply to specially authorized pull tab series;

(4) Each punchboard or pull tab series which is not placed out for ((public)) play or returned to the distributor or manufacturer from whom it was originally purchased, must be retained on the licensed premises and made available for inspection by the commission ((agents)) and/or local law enforcement and taxing agencies: Provided, That devices may be stored off premises if they are produced for inspection upon demand;

(((4) Each punchboard or pull tab series which is deemed by the operator to be defective or unplayable, for any reason, shall not be returned to the distributor or manufacturer without approval from the commission. If it is found to be defective after it has been placed out for play, all other rules apply and it must be recorded as required by WAC 230-08-010: Provided, That the retention time required by subsection (2) above may be shortened by the commission upon inspection and written release by a commission agent;))

(5) Each punchboard or pull tab series which has been placed out for play and is subsequently returned to a distributor or manufacturer is exempt from the retention requirements in subsection (3) of this section. The operator must retain a copy of the quality control report for the retention period normally applicable and must record each game on its monthly record required by WAC 230-08-010. If a device is returned to a distributor for any reason, including commission required recall, the operator shall record the date, invoice or credit memo number, and "returned" on the original purchase invoice or inventory record on the corresponding entry for the device;

(6) For purposes of compliance with the requirements of this section and license class compliance, gross gambling receipts from the operation of punchboards and pull tabs shall be adjusted for commission staff audit findings by using the following procedures:

(a) Unrecorded devices - gross gambling receipts shall be increased to account for any unrecorded devices purchased by an operator by adding the maximum amount that could be generated from the device, as determined by multiplying the total number of chances available by the price of a single chance. The adjustment shall be made to the records for the month in which the device was purchased; and

(b) Recording errors - gross gambling receipts shall be increased or decreased by an adjustment factor that is based upon the results of an audit of a sample of at least five devices randomly selected by the commission staff. The adjustment factor shall be determined by dividing the audited amount for the sample group of devices by the recorded amount for the same devices. The resulting product of this equation shall be applied to the total recorded gross gambling receipts for the calendar quarter from which the sample was taken and to the immediately preceding three quarters.

[Statutory Authority: Chapter 9.46 RCW. 94-24-054 (Order 261), 230-30-072, filed 12/5/94, effective 1/5/95. Statutory Authority: RCW 9.46.070. 94-07-084 (Order 250), 230-30-072, filed 3/16/94, effective 4/16/94. Statutory Authority: RCW 9.46.070 (7), (8), (9) and (17). 93-13-063 (Order 241), 230-30-072, filed 6/17/93, effective 7/18/93. Statutory Authority: RCW 9.46.070(6). 89-21-069 (Order 198), 230-30-072, filed 10/17/89, effective 11/17/89. Statutory Authority: RCW 9.46.070 (8), (11) and (14). 88-13-060 (Order 179), 230-30-072, filed 6/14/88.]

AMENDATORY SECTION (Amending Order 305, filed 11/21/96, effective 1/1/97)

WAC 230-30-080 ((Pull tab dispensing limitations.)) Punchboard and pull tab series restrictions--Prizes, size of game, and location of winners. (((1) No pull tabs shall be placed out for public play unless the total number of pull tabs originally in the series shall be clearly disclosed on the face of the flare advertising the prizes available from that series of pull tabs. The total number of pull tabs originally in the series will be placed upon the flare by the manufacturer prior to the series being sold to a distributor or operator.

(2) No pull tab shall be added to a series of pull tabs after that series has been shipped from its place of manufacture.

(3)(a) No pull tab series, or any portion thereof, shall be placed in, or if a spindle upon, any pull tab dispensing device or container until any other series of pull tabs previously in, or upon, the device or container has been played out or permanently removed from public play.

(b) Provided, that in the use of a multiple series dispensing device, each series shall be played independently and in accordance with the provisions in (a) above.

(4) No pull tab once placed out for public play shall be removed from the dispensing device or container until the series is permanently removed from public play, except only:

(a) Those pull tabs actually played by consumers; [or]

(b) Those pull tabs removed by commission representatives[,] or other law enforcement agency inspecting the device; or

(c) Those tabs temporarily removed during necessary repair or maintenance of the device.

(5) Once a pull tab has been removed from public play it shall not again be put out for public play, except tabs removed under subsection[s] (4)(b) and (c) [above].

(6) No person shall put out any pull tab series for public play unless the series of pull tabs is wholly contained within, or if a spindle upon, the device or container used for dispensing that series[:] Provided, that progressive jackpot pull tab games, as authorized by WAC 230-30-025, may utilize more than one machine for a series.

(7) No person shall sell or transfer to another person in this state, or for use within this state, or put out for public play, any pull tab series which contains more than ten-thousand individual pull tabs[:] Provided, that progressive jackpot pull tab games, as authorized by WAC 230-30-025, may contain up to fifty-thousand individual pull tabs.)) No operator, distributor, or manufacturer, or representative thereof shall possess, display, put out for play, sell, or otherwise transfer to any person in this state, or for use in this state, any punchboard or pull tab series which:

(1) Does not offer prizes that are equal to or greater than sixty percent of the total gross receipts available from the punchboard or pull tab series. The following applies to the sixty percent calculation:

(a) For the purposes of determining the percentage of prizes offered on any punchboard, or in any pull tab series, total merchandise prizes shall be computed at the amount actually paid by the licensed operator plus fifty percent of that actual cost; and

(b) Prize and percentage requirements for progressive pull tab series shall be calculated as set forth in WAC 230-30-025;

(2) Offers a single prize that exceeds:

(a) Five hundred dollars in cash: Provided, That progressive jackpot pull tab prizes, as authorized in WAC 230-30-025 shall be exempt from this requirement and shall be subject to the limits defined in those rules; or

(b) A merchandise prize, or combination cash-merchandise prize, for which the operator has expended more than five hundred dollars;

(3) Has multiple winners on an individual pull tab or punch that combined values exceed the single cash or merchandise prize limit in subsection (2) of this section;

(4) Offers prizes for purchasing the last ticket or last punch that exceeds:

(a) One hundred dollars cash; or

(b) Merchandise for which the licensee has expended more than one hundred dollars; or

(c) The highest prize offered, whichever is less;

(5) Contains more than ten thousand individual pull tabs: Provided, That progressive jackpot pull tab series, as authorized by WAC 230-30-025, may contain up to fifty thousand individual pull tabs;

(6) Utilizes a flare which does not meet the requirements of WAC 230-30-106;

(7) The winning punches or tabs have not been randomly distributed and mixed among all other punches or tabs in the board or series;

(8) The location, or approximate location, of any winning punches or tabs can be determined in advance of punching the punchboard or opening the tabs in any manner or by any device, by markings on the board, tabs, or container, or by use of a light;

(9) There exists a key to any winning numbers or symbols; or

(10) Does not conform in any other respect to the requirements of WAC rules as to the manufacture, assembly, or packaging of punchboards or pull tabs.

[Statutory Authority: RCW 9.46.070, 9.46.120, 9.46.0273, 9.46.310 and 34.05.313. 96-24-006 (Order 305), 230-30-080, filed 11/21/96, effective 1/1/97. Statutory Authority: RCW 9.46.070 (1)-(4), (7), (8), (11), (12), (14), (20) and 9.46.110 (3), (4). 95-23-109, 230-30-080, filed 11/22/95, effective 1/1/96. Statutory Authority: RCW 9.46.070. 93-12-082, 230-30-080, filed 5/28/93, effective 7/1/93. Statutory Authority: RCW 9.46.070(11). 91-10-004 (Order 222), 230-30-080, filed 4/18/91, effective 5/19/91. Statutory Authority: Chapter 9.46 RCW. 91-05-047 (Order 220), 230-30-080, filed 2/14/91, effective 3/17/91. Statutory Authority: RCW 9.46.030 (2) and (3) and 9.46.070 (11) and (14). 83-19-024 (Order 136), 230-30-080, filed 9/13/83. Statutory Authority: RCW 9.46.070(14). 81-19-073 (Order 112), 230-30-080, filed 9/15/81. Statutory Authority: RCW 9.46.070(10). 79-07-019 (Order 90), 230-30-080, filed 6/14/79; Order 55, 230-30-080, filed 6/25/76; Order 43, 230-30-080, filed 11/28/75; Order 15, 230-30-080, filed 4/17/74; Order 9, 230-30-080, filed 12/19/73, 1:26 p.m.; Order 5, 230-30-080, filed 12/19/73, 1:25 p.m.]

NOTES:

Reviser's note: RCW 34.05.395 requires the use of underlining and deletion marks to indicate amendments to existing rules, and deems ineffectual changes not filed by the agency in this manner. The bracketed material in the above section does not appear to conform to the statutory requirement.

AMENDATORY SECTION (Amending Order 305, filed 11/21/96, effective 1/1/97)

WAC 230-30-102 Pull tab series assembly and packaging. (1) Manufacturers of pull tabs shall ((manufacture,)) assemble((,)) and package each pull tab series in one container ((and in such a manner that none of the winning pull tabs, nor the location or approximate location of any of the winning pull tabs can be determined, in advance of opening the pull tabs in any manner or by any device, including but not limited to any pattern in manufacture, assembly, packaging, markings, or by the use of a light.)): Provided, That progressive jackpot pull tab games, as authorized by WAC 230-30-025, may be packaged in more than one container under the following conditions;

(a) All boxes are shrink wrapped and sealed with a sticker or seal of the manufacturer;

(b) Each individual box must be identically labeled with a manufacturer designed referencing system to include:

(i) Individual box reference and total boxes per series;

(ii) Series number; and

(iii) Identification and inspection services stamp number;

(c) Each case must be labeled to include:

(i) Case reference and total cases per set; and

(ii) Series number; and

(d) Each box and/or case must be packaged and shipped together. Cases must be specially marked to easily identify the contents during shipping.

(2) Winning pull tabs shall be randomly distributed and mixed among all other pull tabs in a series so as to eliminate any pattern as between series, or portions of series, from which the location or approximate location of any of the winning tabs may be determined. The pull tab series must be assembled so that no placement of winners or losers exist that allows the possibility of prize manipulation or "pick out." ((Manufacturers shall not manufacture or offer for sale in Washington any pull tab series in which the winning pull tabs are not distributed and mixed among all other pull tabs in that series.))

(3) Manufacturers will mix pull tabs prior to placing them in their final packing container. The mix shall insure that pull tabs are separated from the original collated row position and dispersed amongst all rows in the final packing container.

(4) Each series of pull tabs shall contain a packing slip placed inside the package containing the name of manufacturer, series number, date the series was packaged, and the name or identification of the person who packaged the series: Provided, That this information may be printed on the flare or the outside of the package, box or container in which the pull tabs are packed. This information must be readily available to commission staff from the manufacturer upon request. For progressive jackpot pull tab games, the packing slip and flare must be packaged with the first box of the series.

(5) Manufacturers of pull tabs shall print on the outside of the ((die cut)) box, package, or other container of pull tabs the ((following)) message (("Washington State law requires that pull tabs not sold through a mechanical pull tab dispensing device must be removed from the packaging container and mixed before selling to the public. Failure to remove and mix pull tabs from a packaging container may result in a minimum five day suspension of a license for each series not mixed.")) that pull tabs must be removed from the packaging container and thoroughly mixed prior to sale to the public: Provided, That the above information may be printed on a crack and peel sticker and placed on the outside of the ((die cut)) box, package, or other container of pull tabs((. The above information may be printed)) or on a ((colored)) packing slip ((and)) placed inside the package of pull tabs. Provided further, That packages of jar tickets may be exempt from this requirement upon the director's approval.

[Statutory Authority: RCW 9.46.070, 9.46.120, 9.46.0273, 9.46.310 and 34.05.313. 96-24-006 (Order 305), 230-30-102, filed 11/21/96, effective 1/1/97. Statutory Authority: RCW 9.46.070. 94-07-084 (Order 250), 230-30-102, filed 3/16/94, effective 4/16/94. Statutory Authority: Chapter 9.46 RCW. 91-21-053 (Order 228), 230-30-102, filed 10/15/91, effective 11/15/91. Statutory Authority: RCW 9.46.070 and chapter 34.05 RCW. 90-21-053, 230-30-102, filed 10/15/90, effective 11/15/90. Statutory Authority: RCW 9.46.070 (8), (11) and (14). 85-03-024 (Order 142), 230-30-102, filed 1/9/85; Order 78, 230-30-102, filed 11/17/77; Order 43, 230-30-102, filed 11/28/75.]

AMENDATORY SECTION (Amending Order 305, filed 11/21/96, effective 1/1/97)

WAC 230-30-103 Standards for construction of pull tabs. (1) ((All pull tabs manufactured for use in the state of Washington after January 1, 1992 shall utilize a secondary verification code to prohibit counterfeiting on tabs that award prizes greater than $20.00. Such codes shall be approved by the director prior to use within the state. Punchboards are exempt from the secondary verification code requirements.

(2))) Determination of winners prohibited.

(a) Pull tabs shall be constructed and glued, sealed, or banded so that it is impossible to determine the covered or concealed numbers, symbol, set of symbols, or game protection on the pull tab until it has been dispensed to and opened by the player, by any method or device, including but not limited to, ((the use of a)) markings, variance in size, variance in paper fiber, color or printing variations or light. ((Winning and losing sheets for each game must be manufactured using the same paper stock and must be manufactured at the same time for all progressive jackpot pull tab games.

(3))) (b) All pull tabs will be constructed to insure that, when offered for sale to the public, the pull tab is virtually opaque and free of security defects wherein winning pull tabs cannot be determined prior to being opened through the use of high intensity lights, peeking, or any other method.

(2) All pull tabs, except banded and latex covered pull tabs, will be constructed using a two or three ply paper stock construction. Winning and losing sheets for each game must be manufactured using the same paper stock and must be manufactured at the same time for all progressive pull tab series, as authorized in WAC 230-30-025.

(((4))) (3) The manufacturer shall conspicuously print on the ((face or cover sheet)) pull tab the series number and the name of the manufacturer or label or trademark identifying the manufacturer((. On banded pull tabs, the series number and the name of the manufacturer or label or trademark identifying the manufacturer shall be printed)) so both are readily visible prior to opening the pull tab. The label or trademark must be filed with the commission prior to the printing of the pull tab.

(((5) The cover sheet shall be color coded when individual series numbers are repeated and may show the consumer how to open the pull tab to determine the symbols or numbers.)) (4) The cover sheet will contain perforated and/or clean-cut openings centered over the symbols or numbers on the back of the face sheet in such a manner as to allow easy opening by the consumer after purchase of the pull tabs, while at the same time, not permitting pull tabs to be opened prematurely in normal handling. Perforation should exist on both horizontal lines of the opening with either perforated or clean-cut on the vertical or elliptical line where the tab must be grasped for opening after bending the edge of ticket down. ((On latex covered pull tabs, either the face or back of the pull tab shall be color coded when individual series numbers are repeated and may show the consumer how to remove the latex to determine the symbols or numbers. On banded pull tabs, the paper stock shall be color coded when individual series numbers are repeated.

(6) Pull tabs will be glued or sealed so that it is impossible to determine the covered or concealed numbers, symbol or set of symbols on the pull tab until it has been dispensed to and opened by the player.

(7) Thickness.

(a) Vendable pull tabs. Defined as pull tabs that are sold out of mechanical pull tab dispensing devices approved for such use in this state by the Washington state gambling commission.

(i) Single opening and double sided tabs. The overall bulk thickness of the pull tab shall be .045 inches plus or minus .003 inches.

(ii) Multiple opening tabs. The overall bulk thickness of the pull tab shall be .026 inches plus or minus .002 inches.

(b) Nonvendable pull tabs. Defined as pull tabs that cannot be sold out of mechanical pull tab dispensing devices approved for use in this state by the Washington state gambling commission. Nonvendable pull tabs may be dispensed from fishbowls, receptacles, packing boxes or spindles. Manufacturers may use any thickness, provided they comply with all other rules of the commission.

(c) All pull tabs within a single pull tab series shall be of the same thickness.

(8) Length and width.

(a) Vendable pull tabs.

(i) Single opening and double sided tabs shall be 1 7/8 inches x 1 inch plus or minus 1/8 inch.

(ii) Multiple opening tabs shall be [3 1/2] [3 2] inches by 1 7/8 inches plus or minus 1 inch.

(b) Nonvendable pull tabs - manufacturers may construct nonvendable pull tabs in any size provided the pull tab complies with all other rules of the commission.

(c) All pull tabs within a single pull tab series shall be uniform in length or width and not vary by more than 3/64 inch, provided that in no case shall winning pull tabs be identifiable by visible variation in dimension.

(9) All pull tabs will be constructed to insure that, when offered for sale to the public, the pull tab is virtually opaque and free of security defects wherein winning pull tabs cannot be determined prior to being opened through the use of high intensity lights, peeking, or any other method.

(10))) The tab may contain information to show the consumer how to open the pull tab or remove the latex to determine the symbols or numbers.

(5) No series numbers used on a series shall be repeated on that same manufacturer's form number within a three-year period.

(6) Each manufacturer shall establish ((his)) ((own game protection for each pull tab game or series of games. The game protection shall be a method of identifying)) methods of winner protection for each punchboard and pull tab series. Such protection shall afford operators, the commission, and other law enforcement personnel the ability to distinguish winning pull tabs from those that are non-winning, altered, forged ((pull tabs.)), or from another series. Such protection shall be completely hidden from view and undetectable by any means prior to a pull tab being opened.

(a) Each manufacturer shall establish its own primary game protection for each pull tab series. This game protection shall be a method of identifying winning pull tabs, after they have been purchased and opened, so as to distinguish them from non-winning pull tabs. The manufacturer may use special numbers, colors, designs, ink, or any combination thereof to establish the primary game protection. Manufacturers ((will submit to the gambling commission a letter explaining the game protection and will keep the commission informed on any changes.)) shall provide a written explanation of each protection scheme to the commission. Such notification shall be detailed and include pictures, diagrams, and/or samples necessary to thoroughly explain the scheme. The commission shall be notified in writing of any changes to protection schemes.

(b) All pull tabs manufactured for use in the state of Washington after January 1, 1992, shall utilize a secondary verification code to prevent counterfeiting on tabs that award prizes greater than twenty dollars. Such codes shall be approved by the director prior to use within the state. Punchboards are exempt from the secondary verification code requirements.

(c) Spindle-type pull tab series when played in the manner set out in WAC 230-30-078(8) are exempt from this requirement.

[Statutory Authority: RCW 9.46.070, 9.46.120, 9.46.0273, 9.46.310 and 34.05.313. 96-24-006 (Order 305), 230-30-103, filed 11/21/96, effective 1/1/97. Statutory Authority: RCW 9.46.070. 94-07-084 (Order 250), 230-30-103, filed 3/16/94, effective 4/16/94. Statutory Authority: Chapter 9.46 RCW. 91-21-053 (Order 228), 230-30-103, filed 10/15/91, effective 11/15/91; 87-15-052 (Order 169), 230-30-103, filed 7/14/87. Statutory Authority: RCW 9.46.070 (1), (2), and (11) and 9.46.110. 85-21-046 (Order 154), 230-30-103, filed 10/14/85. Statutory Authority: RCW 9.46.070 (5), (7), (8), (9), (11), (14) and (19). 84-13-038 (Order 140), 230-30-103, filed 6/15/84; Order 78, 230-30-103, filed 11/17/77; Order 43, 230-30-103, filed 11/28/75.]

Reviser's note: RCW 34.05.395 requires the use of underlining and deletion marks to indicate amendments to existing rules. The rule published above varies from its predecessor in certain respects not indicated by the use of these markings.

Reviser's note: The typographical errors in the above section occurred in the copy filed by the agency and appear in the Register pursuant to the requirements of RCW 34.08.040.

AMENDATORY SECTION (Amending WSR 90-21-053, filed 10/15/90)

WAC 230-30-104 Possession or sale of pull tab series in which winners or location of winners may be determined in advance--Prohibited. (1) No operator, distributor, or manufacturer, or representative thereof, with knowledge or in circumstances ((whereunder)) under which he/or she reasonably should have known, shall possess, display, put out for play, sell, or otherwise furnish to any person any pull tab series or pull tab from any series:

(a) In which the winning tabs have not been distributed and mixed among all other tabs in the series; or

(b) In which the location, or approximate location, of any of the winning tabs can be determined in advance of opening the tabs in any manner or by any device, including but not limited to, any pattern in the manufacture, assembly, or packaging of the tabs by the manufacturer, by any markings on the tabs or container, or by the use of a light; or

(c) Which does not conform in any other respect to the requirements of these rules as to manufacture, assembly, or packaging of pull tabs.

(((2) No manufacturer or distributor or representative thereof shall use as a sales promotion any statement, demonstration, or implication that any certain portion of a series of pull tabs contains more winners than other portions of the series or that any series of pull tabs may be sold by the operator in a particular manner that would give the operator any advantage in selling more of the pull tabs before having to pay out winners.))

[Statutory Authority: RCW 9.46.070 and chapter 34.05 RCW. 90-21-053, 230-30-104, filed 10/15/90, effective 11/15/90. Statutory Authority: RCW 9.46.070 (8), (11) and (14). 85-03-024 (Order 142), 230-30-104, filed 1/9/85; Order 78, 230-30-104, filed 11/17/77.]

AMENDATORY SECTION (Amending WSR 95-23-109, filed 11/22/95, effective 1/1/96)

WAC 230-30-106 ((Flare--Restrictions, standards for flares and substitute flares made by manufacturers, distributors or operators.)) Punchboard and pull tab flares restrictions -- Standards -- Substitute flares. The following restrictions, standards, and procedures apply to the use of flares and substitute flares:

(1) Except as set forth in subsection (6) (((2))) of this section, the flare advertising prizes available from the operation of any punchboard, or any series of pull tabs, shall be made by the manufacturer only ((Except as set forth below, flares shall not be altered by any operator or distributor, and shall:

(a) Be placed as follows:

(i) Only upon the upper face, or on the top, of any such punchboard; or

(ii) In plain view and in the vicinity of any pull tab dispensing device or container, provided if the flare is not attached to the dispensing device or container, a numerical or alphabetical reference shall be included directly on the flare and dispensing device or container clearly indicating which flare corresponds to which series; and

(b) Clearly set out each of the prizes available and the number or symbol which wins prizes; and

(c) Set out the winning numbers or symbols for prizes of twenty dollars or more in cash, or merchandise worth twenty dollars or more at retail, in such a manner that each may be easily and clearly deleted or marked off as each prize is won and awarded. For the purposes of this subsection the retail value of a merchandise prize shall be the amount actually paid by the licensed operator plus 50 percent of that actual cost.)) and shall not be altered by any operator or distributor;

(2) ((Substitute flares

(a) Distributors may make and apply substitute flares to punchboards and pull tab series provided that the conditions set forth in (c) of this subsection are satisfied;

(b) Licensed operators may make and use substitute flares on punchboards and pull tab series which offer merchandise or combination merchandise-cash prizes provided that the conditions set forth in (c) of this subsection are satisfied;

(c) Use of substitute flares:

(i) The substitute flare must comply with all the requirements of subsection (1)(a), (b) and (c) of this section;

(ii) Substitute flares must meet the requirements of WAC 230-30-015;

(iii) The winning numbers or symbols on the substitute flare shall be selected from the winning numbers or symbols on the flare made by the manufacturer, or from the optional numbers placed on the back of the board by the manufacturer. Provided flares and games which offer merchandise, or combination merchandise/cash prizes, in excess of $100.00 actual costs, must utilize numbers, not symbols to denote winners. Prizes must be assigned to the winning numbers consecutively starting with the highest value prize being assigned the lowest available winning number; and

(iv) The substitute flare is stapled to the manufacturer's flare and the manufacturer's flare is defaced so that it is unusable, but the identification and inspection services stamp is readable and visible.)) No person shall place or have out in public view more than one flare advertising the prizes available from the operation of any punchboard, or from any series of pull tabs;

(3) ((Spindle-type pull tab series when played in the manner set out in WAC 230-30-070(9) are exempt from this section.)) Flares shall be placed as follows:

(a) Only upon the upper face, or on the top of any punchboard; or

(b) In plain view and in the vicinity of any pull tab dispensing device or container. If the flare is not attached to the dispensing device or container, a numerical or alphabetical reference shall be included directly on the flare and dispensing device or container clearly indicating which flare corresponds to which series.

(((3))) (4) Standards for flares:

(a) Flares must clearly set out each of the prizes available and the numbers or symbols which win each prize. For progressive jackpot series, the progressive jackpot meter board shall be considered a supplement to the flare. Reference to such shall be made on the flare;

(b) Flares must set out the winning numbers or symbols for prizes of twenty dollars or more in cash, or merchandise worth twenty dollars or more at retail, in such a manner that each may be easily and clearly deleted or marked off as each prize is won and awarded. For the purposes of this subsection the retail value of a merchandise prize shall be the amount actually paid by the licensed operator plus 50 percent of that actual cost;

(c) The cost to the player for each punch or pull tab shall be clearly posted on the flare;

(d) The manufacturer shall clearly set out on the flare the series number assigned to that punchboard or pull tab series by the manufacturer. For pull tab series, this number shall be clearly displayed on the face of the flare. This series number shall not be altered by the distributor or operator;

(e) The flare shall contain the Washington state identification and inspection services stamp number assigned to the board or series, as required by WAC 230-08-017;

(f) For pull tab series, the total number of pull tabs originally in the series shall be clearly disclosed on the face of the flare. Effective July 1, 1997, the following flares shall prominently display the ticket count in one-half inch size lettering on the flare;

(i) Any newly designed flare;

(ii) Any previously designed flare for pull tab series with a ticket count over six thousand, which has not yet been packaged;

(g) Flares must contain the manufacturer of the board or series. A stamp, seal, or label which identifies the manufacturer may be substituted if the commission has been informed of such prior to its use.

(((4))) (5) Additional standards for bonus pull tab flares:

(a) The manufacturer shall develop and use at least twenty-five different versions of flares for each form number of a bonus series. Face sheets shall be utilized in such a manner so as to ensure random distribution during the manufacturing and packing process;

(b) The middle or advance level shall be labeled with the term "advance section" with a minimum one-quarter inch size lettering;

(c) The top tier level shall be labeled with the term "bonus section" with a minimum one-quarter inch size lettering;

(d) The number of winners which could be awarded in the top tier level shall be clearly noted on the flare with a minimum three-eighths inch size lettering. In addition, the number of winners and the number of advances in each advance level shall be clearly displayed;

(e) All prizes for each advance and bonus level shall be clearly displayed so that only the winners within the possible combinations are shown. Where applicable, the word "or" shall be used to illustrate the possible combinations in which the bonus prizes can be won.((; and)) Duplicate references to prizes shall not be shown on the flare.

(6) Substitute flares:

(a) A substitute flare may be utilized on punchboards or pull tabs, unless otherwise restricted by commission rules, provided all the requirements of this subsection are met.

(i) Distributors may apply manufacturer-produced substitute flares to punchboards and pull tab series;

(ii) Licensed operators or distributors may make and use substitute flares on punchboards and pull tab series which offer merchandise or combination merchandise-cash prizes.

(iii) The responsibility for ensuring the substitute flare meets the requirements set forth in this section shall rest with the manufacturer, distributor, or operator who changes the original flare and attaches the substitute flare.

(b) Substitute flare requirements:

(i) All substitute flares must comply with the requirements of subsections (4) and (5) of this section;

(ii) All substitute flares shall have the Washington state identification and inspection services stamp number and series number assigned to the punchboard or pull tab series permanently recorded in ink on the face of the substitute flare;

(iii) The original manufacturer's flare shall be permanently defaced so it is unusable and the substitute flare shall be attached to the original manufacturer's flare so that the original Washington state identification and inspection services stamp and series number can be accessed for inspection;

(iv) For flares converted from cash prizes to combination merchandise-cash prizes, at least fifty percent of the total value of prizes offered shall be merchandise; and

(v) Substitute flares which offer merchandise, or combination merchandise-cash, must utilize numbers, not symbols, to denote winners. The winning numbers on the substitute flare shall be selected from the winning numbers on the flare made by the manufacturer, or from the optional numbers placed on the back of the board by the manufacturer. Prizes must be assigned to the winning numbers consecutively, starting with the highest value prize being assigned the lowest available winning number.

(7) In addition to prizes established by manufacturers, commercial stimulant licensees may increase prizes or add additional prizes to punchboards or pull tab series if:

(a) Such prizes are cash or merchandise;

(b) The manufacturer's flare shall not be changed;

(c) Full details of the prizes, including requirements to qualify, shall be disclosed to players by means of an additional sign or notice that is permanently attached to the manufacturer's flare;

(d) The increase or additional prizes must be added to every prize that is within a tier or section of the flare; and

(e) Documentation regarding all additional prizes shall be stapled or otherwise permanently attached to the winning punch or pull tab for which such a prize is awarded. Minimum documentation shall include a description of the prize awarded and the name of the winner.

[Statutory Authority: RCW 9.46.070 (1)-(4), (7), (8), (11), (12), (14), (20) and 9.46.110 (3), (4). 95-23-109, 230-30-106, filed 11/22/95, effective 1/1/96. Statutory Authority: RCW 9.46.070(8), 9.46.0325 and 9.46.070. 93-10-005 (Order 238), 230-30-106, filed 4/21/93, effective 7/1/93. Statutory Authority: RCW 9.46.070 (8), (11) and (14). 89-11-048 (Order 192), 230-30-106, filed 5/16/89. Statutory Authority: RCW 9.46.070 (11) and (14). 87-24-016 (Order 173), 230-30-106, filed 11/23/87. Statutory Authority: RCW 9.46.070(10). 79-09-029 (Order 91), 230-30-106, filed 8/14/79; Order 43, 230-30-106, filed 11/28/75.]

Reviser's note: RCW 34.05.395 requires the use of underlining and deletion marks to indicate amendments to existing rules. The rule published above varies from its predecessor in certain respects not indicated by the use of these markings.

Reviser's note: The typographical errors in the above section occurred in the copy filed by the agency and appear in the Register pursuant to the requirements of RCW 34.08.040.

AMENDATORY SECTION (Amending Order 5, filed 12/19/73)

WAC 230-30-210 ((Buying from and selling to only licensees required.)) Sales restrictions. (1) No manufacturer, distributor or distributor's representative, shall sell or otherwise make available to any person any punchboards, pull tabs, pull tab dispensing devices or related equipment in this state unless it has first determined that such person has a valid license issued by the commission to sell or otherwise distribute such equipment within this state, or to operate such activity on a particular premise within this state.

(2) No operator, distributor or distributor's representative, shall purchase or otherwise obtain from any person any punchboard, pull tab, device for the dispensing of pull tabs or related equipment in this state until it has first determined that the person selling or otherwise offering such equipment has a valid license issued by the commission to sell the equipment in this state or has been registered with the commission as required.

(3) No operator shall put out for play and no distributor shall sell or otherwise furnish, any punchboard or series of pull tabs unless the manufacturer of punchboards or series of pull tabs has been licensed by the commission.

(4) No manufacturer or distributor or representative thereof shall use as a sales promotion any statement, demonstration, or implication that any certain portion of a series of pull tabs contains more winners than other portions of the series or that any series of pull tabs may be sold by the operator in a particular manner that would give the operator any advantage in selling more of the pull tabs before having to pay out winners.

(5) Manufacturers shall not offer for sale in Washington any punchboard or pull tab series in which the winning punches or pull tabs are not randomly distributed and mixed among all other punches or pull tabs in that board or series.

(6) This rule shall not prohibit licensed distributors from selling to Indian tribes operating Class II activities which are legal under federal law.

[Order 5, 230-30-210, filed 12/19/73.]

AMENDATORY SECTION (Amending Order 238, filed 4/21/93, effective 7/1/93)

WAC 230-30-300 Recall of defective punchboards, pull tabs or pull tab dispensing devices. (1) Upon a determination that punchboards, pull tabs or pull tab dispensing devices for sale in Washington do not meet commission standards, the director may order all defective products and all similarly constructed or printed products be recalled by the manufacturer(s).

(2) If the director orders such a recall, the manufacturer of the product shall be immediately notified regarding the items to be recalled, reason for the recall, effective date of the recall, and any other specific requirements. ((The)) Verbal notification shall be followed ((with a)) by written notification. Immediately upon ((the)) oral notification, manufacturers shall cease ((sale)) shipping affected product in the state and initiate actions to ensure complete compliance with the recall. Manufacturers ((will)) shall notify all distributors within ((72)) seventy-two hours of the items recalled, effective date of recall, and arrange for the prompt return of the defective items.

(3) Distributors, ((when)) once notified ((in writing)) of the recall by either the manufacturer or the commission ((of the recall)), shall immediately stop sales and/or delivery of the product. (((3))) The commission shall notify, in writing, each licensed distributor of gambling paraphernalia of the recall, effective dates thereof, the products involved, and of any special instructions if applicable.

(4) The commission shall ((then)) notify, in writing, each licensed operator who has received the product as to the items recalled, effective date and special instructions, if applicable. Operators shall not utilize any defective punchboards, pull tabs or pull tab dispensing devices after receiving written notification from the commission.

(((4))) (5) Prior to any reintroduction in the state of any recalled or similar item, the manufacturer must first submit the revised or reworked item to ((the)) commission staff for review, evaluation and approval. The manufacturer will be notified in writing, of the approval or disapproval ((and)). A copy of the approving letter ((will)) shall be sent by the manufacturer to the distributor with the next five shipments of the reworked item.

(((5))) (6) Manufacturers shall reimburse distributors the actual cost paid by the distributor for each punchboard, pull tab series or pull tab dispensing device recalled by order of the director. Manufacturers of recalled punchboards, pull tab series or pull tab dispensing devices shall compensate distributors for time and expenses incurred during a recall. Such compensation shall not exceed fifty cents per punchboard or pull tab series actually returned by the distributor to the manufacturer or((,)) twenty-five dollars per pull tab dispensing device.

[Statutory Authority: RCW 9.46.070(8), 9.46.0325 and 9.46.070. 93-10-005 (Order 238), 230-30-300, filed 4/21/93, effective 7/1/93. Statutory Authority: RCW 9.46.070 (8), (11) and (14). 88-07-059 (Order 175), 230-30-300, filed 3/15/88.]

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