WSR 99-23-014

INTERPRETIVE AND POLICY STATEMENT

WASHINGTON STATE LOTTERY


[ Filed November 5, 1999, 2:50 p.m. ]

The Washington State Lottery has recently adopted or revised the following policies:

POL 110.009 - Policy and Procedure Approval, Revision and Maintenance (revision)

Clarified that the decision to develop new policies/procedure is made by either the director or deputy director, except that no approval is necessary if an external directive (WAC, RCW, etc.) requires a policy. Revisions do not need approval unless the change has a substantial effect on the operation of the lottery. Added that a timeline is developed for all policies that must be completed by a specific date.

Signed July 9, 1999.

POL 110.558 - Bonus Drawings (for Consumers) (revision)

If the first test on the primary random number generator fails, the secondary machine is used (rather than rerunning the tests). Clarified that the random number generators are not powered off. Added headquarters drawing official information.

Signed July 31, 1999.

POL 110.559 - Bonus Drawings (for Retailers) (new)

Outlines the process for conducting drawings using a computerized random number generator when management determines the type of promotion (bonus drawing) will be conducted using this method.

Signed August 16, 1999.

POL 120.004 - Leave Approval and Reporting (revision)

Deleted the requirement for employees to include "the general reason or circumstance for the sick leave" on their leave request. Clarified that military training leave is not limited to permanent, probationary and project employees - all employees qualify.

Signed July 16, 1999.

POL 120.011 - Discrimination/Retaliation Complaints (new)

This new policy/procedure establishes procedures to address complaints alleging discrimination and/or retaliation, including outlining to whom and in what format complaints are addressed and outlines guidelines for responding to complaints in a timely manner.

Signed July 20, 1999.

POL 130.001 - Performing Background Investigations on Applicants and Employees (revision)

The deputy director, rather than the security/legal director, now recommends to the director that initial or continued employment be denied to individuals who are subject to current prosecution or pending charges, those who have an outstanding warrant, and/or those who have a history that indicates a disregard for law, rules and regulations or shows financial distress.

Added that top candidates for a position complete an authorization for personal credit check (in addition to an authorization for background check). Clarified that fingerprinting is performed only on permanent employees during their first six months of employment.

Signed August 9, 1999.

POL 130.002 - Appointing, Training and Removing Lottery Security Officials (LSOs) and Lottery Drawing Officials (LDOs) (revision)

The drawing coordinator may now make an exception to the rule of appointing officials on a "first-come, first-served basis." An example of a reason to make an exception is that the security director needs to add personnel that will better serve the drawing and its integrity.

Signed August 9, 1999.

POL 130.003 - Certifying On-Line Balls (revision)

Deleted references to the lottery's internal audit manager; the duties of accompanying security when picking up new ball sets after being weighed by the metrologist is now performed by any available lottery manager. Added references to Lucky for Life ball sets. Clarified that recalibrations occur approximately six months after getting the new balls. Added a section on storing/destroying old balls; eliminated reference to storing the balls at the off-site warehouse until destruction (to allow for an alternate place of storage, as determined by the security chief).

Clarified that any type of "closeable container" is used to take balls to the metrologist. Clarified that balls are not always immediately lettered and/or used; sometimes they are stored in a locked, secured location with limited access, as approved by the security chief. Clarified that replacement of ball sets may occur at the beginning of the on-line drawing process, even though the security chief (or designee) does not have drawing duty that day.

Signed August 18, 1999.

POL 150.001 - Purchasing Securities for Lotto Jackpot Winners (revision)

With the implementation of jackpot winners being able to select cash option after winning a jackpot, rather than when purchasing a ticket, the lottery initiates the bid process when a winner selects annuity payments (rather than bidders automatically calling in when the jackpot is won). Brokers must fax confirmation within one hour, rather than four, of being awarded the bid.

Deleted references to the bank account titles and transferring funds, as these were not in the scope of the policy.

Signed September 27, 1999.

POL 230.004 - Accounts Receivable Write-Off (revision)

The director or designee now signs off on amounts of at least $10,000 (rather than $1,000) or more. The Attorney General's Office only signs off if the lottery is writing off for reasons not listed in the policy (rather than on anything of $1,000 or more). Adds the retailer support manager to the approval process. Added that customer service forwards a quarterly estimate of collectibility to financial services. Added Chapter 7 bankruptcy to the list of criteria used to determine it is no longer cost effective to pursue further collection efforts.

Signed August 24, 1999.

POL 240.001 - Power Protectors/Dedicated Power for On-Line Terminals (revision)

Licensing representatives and district sales representatives now have the authority to order the on-line vendor to install SADs, in some circumstances. Clarified that if dedicated power is allowed in lieu of a SAD unit, the retailer contract is altered to reflect that fact. Retailers can pay for SAD units via check (not just by EFT). Added a procedure.

Signed July 28, 1999.

POL 240.003 - Electronic Funds Transfer (EFT) Rejections (revision)

Retailers are now given three days (rather than five) to pay the deposit required after a second rejection. A retailer who has posted a bond and whose average thirteen-week sales exceed the amount of the bond, now have to pay the amount in excess of the bond. Added that when a reject is the fault of the lottery, the lottery reimburses the retailer for any rejection fees charged to the retailer.

Clarified that the lottery does not pursue unpaid accounts of retailers with a Chapter 7 bankruptcy. The legal services manager no longer signs revocation letters. Added that the collection agency sends a letter explaining that collection efforts will begin in thirty days. If the debt is not paid by the end of thirty days, one- percent interest begins accruing. The customer service supervisor may establish a payment plan with a terminating retailer, rather than send it to collection. However, the payment plan cannot exceed six months, and the account is immediately sent to collection if the retailer misses a payment.

Korean retailers now receive letters in both English and Korean. Forms for instant versus on-line terminals have now been combined into one form.

Signed August 25, 1999.

POL 240.004 - Terminating Retailers (revision)

Lottery security is no longer involved in any collection process. Licensing coordinator and on-line coordinator were combined into one job; both performed by a licensing representative.

Signed September 15, 1999.

POL 240.005 - Retailer Remodels (new)

This policy documents guidelines for paying communication line charges and protecting terminals from damage by determining if a terminal will be pinned and/or removed, when a retailer is remodeling a retail location.

Signed August 31, 1999.

POL 310.007 - On-Line Expansion/Retailer Approval (revision)

Two updates:

The sales manager (rather than the director) now signs all on-line expansion approvals.

Signed July 21, 1999.

Added "geographic void" and removed "market addition" as a reason to expand the on-line network. The "$600" Scratch Addition is now an "$800" Scratch Addition. Clarified that volume addition does not refer to chain convenience stores. The lottery now considers "26-week," rather than "13-week" sales averages when determining expansion. Added that when considering $800 Scratch Addition, director discretion, or geographic void, the lottery considers GMARK data, which is a summary of the research and analysis performed by the lottery's on-line vendor.

Clarified that: a) A sufficient number of terminals must be available before any addition can be made, and b) retailers must exhibit cooperation, provide lottery visibility, be the desired type and size of account and be in a desirable location, and have a sufficient volume of instant sales (as described on the on-line survey form).

Signed September 1, 1999.

POL 310.010 - Approving On-Line Terminal Moves (revision)

Clarified that the lottery's on-line vendor does not always pay the telephone line charges for on-line terminal moves. They usually pay the charges for "uncomplicated moves where existing conduit is used. The DSR and/or RSM work with the retailer and on-line vendor to determine who will pay the charges on a case-by-case basis."

Signed July 5, 1999.

POL 320.007 - Selling Lottery Tickets at an Off-Premise Location (revision)

Added licensing representative duties. Added that the special events coordinator completes an application for off-premise addendum. The lottery now accepts $50 bills (but nothing larger) at special events. No longer use "shift" envelopes, as sales are now accounted for by day rather than by shift. Eliminated the use of the "How and Where to Redeem Your Winning Lottery Ticket" sheets. The licensing representative no longer reconciles bills for telephone lines.

Signed July 27, 1999.

POL 320.052 - Super Bowl/$3 Touchdown Second Chance Drawing (for consumers) (new)

This policy establishes guidelines for selecting two winners of a trip for two to the 2000 Super Bowl. The policy spells out eligibility requirements, exact prizes, how the drawing is conducted, and how to claim prizes.

Signed September 3, 1999.

POL 320.053 - Pro-Bowl 2000/$3 Touchdown Retailer Promotion (new)

This policy establishes guidelines for awarding prizes to retailers for selling (activating) packs of Instant Game Number 260 from September 19 through October 16, 1999.

Signed August 3, 1999.

POL 410.002 - Mail Administration (revision)

The number of stamps kept on hand was decreased from 3,500 to the number determined by the administrative services manager; however, it will not exceed 100.

Signed September 27, 1999.

POL 420.021 - Purchasing Cards (new)

Allows the supply officer and some other designees to use a credit card to "efficiently accomplish low dollar purchases of goods and services." The procedure lists methods to obtain the cards, account for their use, etc.

Signed June 26, 1999.

To receive a copy of any of these policies, contact Becky Zopolis, Washington State Lottery, P.O. Box 43000, Olympia, WA 98504-3000, phone (360) 664-4816, fax (360) 664-4817.

November 4, 1999

Merritt D. Long

Director

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