WSR 00-05-102

PERMANENT RULES

GAMBLING COMMISSION


[ Order 380 -- Filed February 16, 2000, 10:21 a.m. , effective July 1, 2000 ]

Date of Adoption: February 11, 2000.

Purpose: Businesses that assemble components for gambling equipment under a contract with a licensed manufacturer and businesses that provide training of gambling activities now fall under the licensing requirements of a gambling service supplier. Furthermore, instructors at dealer schools will now be required to be licensed as a gambling service supplier representative.

Citation of Existing Rules Affected by this Order: Amending WAC 230-02-205, 230-02-206, and 230-04-119.

Statutory Authority for Adoption: RCW 9.46.070.

Adopted under notice filed as WSR 00-01-146A on December 9, 1999, with a publication of January 5, 2000.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 3, Repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 3, Repealed 0.

Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 3, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.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: July 1, 2000.

February 15, 2000

Susan Arland

Rules Coordinator

OTS-3461.6


AMENDATORY SECTION(Amending Order 361, filed 9/23/98, effective 1/1/99)

WAC 230-02-205
Gambling service supplier defined.

A "gambling service((s)) supplier" is any person who provides gambling related services for compensation, whether ((direct or indirect, to any licensed operator and who is not an employee of the operator receiving such services)) directly or indirectly.

(1) Gambling related services include at least the following:

(a) Providing consulting or advisory services regarding gambling activities;

(b) Providing gambling related management services;

(c) Providing financing for purchases or leases of gambling equipment or for providing infrastructure that supports gambling operations for more than one licensee. For purposes of this section, financing by any bank, mutual savings bank, or credit union regulated by the department of financial institutions or any federally regulated commercial lending institution shall not be deemed as providing gambling related services; ((or))

(d) Providing any other service or activity where influence may be exerted over any gambling activity licensed by the commission;

(e) Providing assembly of components for gambling equipment under a contract with a licensed manufacturer; or

(f) Training individuals to conduct authorized gambling activities.

(2) The term "gambling services supplier" does not include the following:

(a) Universities and colleges that are regulated by the Washington state board of community and technical colleges and the higher education coordinating board which train individuals to conduct authorized gambling activities;

(b) Licensed manufacturers or distributors who service and repair pull-tab dispensing devices, bingo equipment or any other authorized gambling equipment;

(((b))) (c) Attorneys, accountants, and governmental affairs consultants whose primary business is providing professional services that are unrelated to the management or operation of gambling activities; and

(((c))) (d) Persons that only provide nonmanagement related recordkeeping services for punch board and pull-tab operators, when the combined total gross billings from such services does not exceed twenty thousand dollars during any calendar year.

[Statutory Authority: RCW 9.46.070. 98-19-133 (Order 361), 230-02-205, filed 9/23/98, effective 1/1/99; 97-24-031, 230-02-205, filed 11/25/97, effective 1/1/98.]

OTS-3537.2


AMENDATORY SECTION(Amending WSR 97-24-031, filed 11/25/97, effective 1/1/98)

WAC 230-02-206
Gambling service((s)) supplier representative defined.

A "gambling service((s)) supplier representative" is any natural person who:

(1) Represents a licensed gambling service((s)) supplier and who is directly involved in providing a service listed in WAC 230-02-205(1);

(2) Instructs card room activities to students enrolled in a university or college regulated by the Washington state board of community and technical colleges, and the higher education coordinating board when such instruction covers dealer procedures as opposed to general casino management.

[Statutory Authority: RCW 9.46.070. 97-24-031, 230-02-206, filed 11/25/97, effective 1/1/98.]

OTS-3460.5


AMENDATORY SECTION(Amending Order 362, filed 9/23/98, effective 1/1/99)

WAC 230-04-119
Licensing of gambling service suppliers.

Prior to providing any type of gambling related service ((to any licensed operator)), a gambling service supplier shall first obtain a license or certification from the commission. The following requirements and restrictions apply to certification and licensing of gambling service suppliers:


License required.


(1) For purposes of this title, a license is required to provide any service related to licensed gambling activities as defined in WAC 230-02-205.


License not required.


(2) A sole owner, partner, major officer and/or owner of a substantial interest in a corporation licensed as a gambling service supplier shall not be required to be additionally licensed as a gambling service supplier representative to perform duties in connection with the gambling service supplier's business. Except as provided in this section, a gambling service supplier shall not employ any unlicensed person to perform duties for which a license is required and shall take measures necessary to prevent an unlicensed person from doing so.


Application for license or certification.


(((2))) (3) The applicant shall complete the application form supplied by the commission. The applicant shall provide, on the application form or attached thereto, a full description of all services provided or planned to be provided to each ((licencee)) licensee of the commission. Such description shall be in writing and include details necessary for commission staff to determine the scope of services provided to each licensee and the responsibilities of each party under the agreement.


Changes to the application.


(((3))) (4) The applicant shall notify the commission within thirty days of any change in the information submitted on or with the application form.


(((4) The applicant shall comply with all applicable laws of the United States and the state of Washington and all applicable rules of the commission.))


Limit of responsibility.


(5) In no circumstance may a gambling service supplier assume ultimate responsibility for ((an operator's gambling)) a licensee's activity.


License fees.


(6) License fees for gambling service suppliers shall be ((five hundred seventy-five dollars, plus one hundred twenty-five dollars per contract for gambling related services.

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)) as set forth in WAC 230-04-203.


Gambling service supplier holding an interest in a pull-tab manufacturer or distributor business.


(7) A licensed gambling service supplier or substantial interest holder thereof that provides services to punch board and pull-tab operators shall not hold a substantial interest in a licensed manufacturer or distributor of punch boards and pull-tabs: Provided, That for purposes of this section only, the director may determine that the spouse of an individual that is a substantial interest holder in a licensed gambling service supplier business will not be considered a substantial interest holder in the gambling service supplier business. In making such a determination, the director will assess the potential for involvement and/or influence in the gambling service supplier business and the manufacturer or distributor business and whether any potential influence is material. The director may impose additional requirements on either the gambling service supplier business and/or the manufacturer or distributor business. Such limitations may include, but are not limited to, prohibiting sales or providing services to an operator by the affected gambling service supplier business, or manufacturer or distributor business. At least the following documents may be considered by the director in a determination of potential influence:

(a) Community or marital property agreements;

(b) Separate property agreements;

(c) Prenuptial agreements; and

(d) Wills and codicils.

[Statutory Authority: RCW 9.46.070. 98-19-130 (Order 362), 230-04-119, filed 9/23/98, effective 1/1/99; 97-24-031, 230-04-119, filed 11/25/97, effective 1/1/98.]

Washington State Code Reviser's Office