WSR 00-15-039

PERMANENT RULES

GAMBLING COMMISSION


[ Order 385 -- Filed July 14, 2000, 3:37 p.m. , effective January 1, 2001 ]

Date of Adoption: July 14, 2000.

Purpose: This rules package requires that licensees, such as distributors, only sell gambling equipment to persons who can legally possess it. Furthermore, a new rule was written to streamline and clearly define gambling equipment in one rule, rather than several rules.

Citation of Existing Rules Affected by this Order: Repealing WAC 230-30-212 and 230-30-213; and amending WAC 230-04-110, 230-04-115, 230-04-120, 230-04-124, and 230-04-203.

Statutory Authority for Adoption: RCW 9.46.070.

Adopted under notice filed as WSR 00-11-114 on May 19, 2000, with a publication of June 7, 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Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

Number of Sections Adopted on the Agency's Own Initiative: New 2, Amended 5, Repealed 2.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 2, Amended 4, Repealed 0.

Number of Sections Adopted Using Negotiated Rule Making: New 2, Amended 5, Repealed 2; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0. Effective Date of Rule: January 1, 2001.

July 14, 2000

Susan Arland

Rules Coordinator

OTS-3958.5


NEW SECTION
WAC 230-02-412
Gambling equipment defined.

For purposes of this title, gambling equipment means any device, expendable supply or any other paraphernalia used in conjunction with or to facilitate gambling. Gambling equipment includes, but is not limited to:

(1) Amusement games;

(2) Punch boards and pull-tabs;

(3) Devices for dispensing pull-tabs;

(4) Electronic devices for conducting, facilitating or accounting for the results of gambling activities, including:

(a) Components of a tribal lottery system;

(b) Electronic devices for reading and displaying outcomes of pull-tabs defined by WAC 230-02-260; and

(c) Accounting systems that are a part of, or directly connected to, a gaming system including:

(i) Bet totalizers; or

(ii) Progressive jackpot meters;

(5) Bingo equipment, as defined in WAC 230-02-250;

(6) Equipment or machinery utilized for the manufacture of gambling equipment when such equipment is designed primarily for such purpose;

(7) Devices and supplies used to conduct card games, fund-raising events, recreational gaming activities, or Class III gaming activities, as defined in the Indian Gaming Regulatory Act at U.S.C. 25 chapter 29 2703 and in Tribal-State compacts, including, but not limited to:

(a) Gaming chips;

(b) Cards;

(c) Dice;

(d) Card shuffling devices;

(e) Graphical game layouts for table games;

(f) Ace finders or no-peak devices;

(g) Roulette wheels; and

(h) Tables manufactured exclusively for gaming purposes.

[]

OTS-3970.3


AMENDATORY SECTION(Amending WSR 97-21-043, filed 10/10/97, effective 11/10/97)

WAC 230-04-110
Licensing of manufacturers.

Except as authorized by WAC 230-04-115, a license must be obtained from the commission prior to manufacturing, selling, or supplying gambling equipment to any person(s) within this state, or for use within this state. The following ((definitions and)) requirements apply to certification and licensing of manufacturers:


Information required on an application.


(1) ((For purposes of this title, "gambling equipment" includes at least the following devices:

(a) Punch boards and pull-tabs;

(b) Devices for the dispensing of pull-tabs;

(c) Bingo equipment, as defined by WAC 230-02-250; and

(d) Any gambling equipment, patented or otherwise restricted gaming schemes, or paraphernalia for use in connection with licensed gambling activities, recreational gaming activities, or Class III tribal gaming activities, including table games, chips, cards, and dice.

(2) The applicant shall include upon the application form supplied by the commission, the following information, as well as all other information and materials required elsewhere in these rules:)) The following information shall be submitted on an application form supplied by the commission:

(a) The full name and address of the applicant;

(b) The full name and address of each location where such devices are manufactured or stored;

(c) The name, home address, and share of ownership of all owners of the manufacturing business if the business is not a corporation. If the business is a corporation, the name, address, and share of ownership of the officers, the directors, and substantial interest holders;

(d) A full description of each separate type of gambling equipment or device that an applicant seeks to manufacture or to market in this state;

(e) The brand name under which each type of gambling device or equipment is sold;

(f) If the applicant is incorporated under laws other than the laws of Washington state, then the full name and business and home address of the resident agent designated by the applicant pursuant to WAC 230-12-300; and

(g) A list of all distributors receiving gambling equipment and all businesses or organizations located within the state of Washington in which the applicant has any financial interest and the details of that financial interest. For the purpose of this subsection, the term financial interest shall include all arrangements through which a person directly or indirectly receives any portion of the profits of the licensed manufacturer and indebtedness between the licensee and any other person, other than a regulated financial institution, in excess of five thousand dollars.


Information to be included with an application.


(((3) An applicant must demonstrate the ability to comply with all manufacturing, quality control, and operational restrictions imposed on authorized gambling equipment, patented or otherwise restricted gaming schemes, or equipment that it seeks to manufacture or market for use within the state of Washington. The licensing process shall include an on-site review of the applicant's manufacturing equipment and process for each separate type of authorized gambling device, equipment, or scheme to ensure capability to comply with all regulatory requirements of this title and state/tribal compacts;

(4))) (2) The following information shall be included as an attachment to the application form:

(a) A list of all affiliated businesses or corporations in which the applicant, officers, directors, or substantial interest holders of the applicant, either directly or indirectly, own or control:

(i) As a sole proprietor; ((or))

(ii) As a partner; ((or))

(iii) More than fifty percent of the voting stock of a privately held or closed corporation; or

(iv) At least five percent of the voting stock of a publicly traded corporation.

(b) A list of all businesses or corporations licensed to conduct gambling activities or to supply gambling-related equipment, supplies, or services in which the applicant, officers, directors, or substantial interest holders of the applicant have any interest;

(c) A list of all jurisdictions in which the applicant or any of the officers, directors, or substantial interest holders of the applicant have been licensed regarding gambling((-))related activities at any level during the preceding ten years;

(d) A statement regarding whether the applicant or officers, directors, or substantial interest holders have ever had a license for gambling-related activities denied, revoked, or suspended by any jurisdiction for a period longer than thirty days. All details of such must be provided as a part of the application; and

(e) A statement acknowledging that all records related to the ownership or operation of the business shall be made available for review at the time and place requested by commission staff. ((In addition to other records requested, the following shall be available:

(i)))


Additional information may be required from applicant.


(3) The following records shall also be available for inspection by commission staff:

(a) Personal financial records of all substantial interest holders;

(((ii))) (b) All records related to the scope of activity, including sales of product, purchases of raw materials and parts, and any contracts, franchises, patent agreements, etc., related to sales or purchases; and

(((iii))) (c) Records related to any financial or management control of or by customers and suppliers.


Applicant to demonstrate ability to comply with rules.


(4) An applicant must demonstrate the ability to comply with all manufacturing, quality control, and operational restrictions imposed on authorized gambling equipment, patented or otherwise restricted gaming schemes (also referred to as proprietary games), or equipment that it seeks to manufacture or market for use within the state of Washington. The licensing process shall include an on-site review of the applicant's manufacturing equipment and process for each separate type of authorized gambling device, equipment, or scheme to ensure capability to comply with all regulatory requirements of this title and state/tribal compacts;


Notifying commission staff of changes on an application.


(5) The applicant shall notify the commission within thirty days of any change in the information submitted on or with the application form, including changes that occur after the license has been issued; and


Applicant to comply with all laws and rules.


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

[Statutory Authority: RCW 9.46.070 (2), (4), (12) and (20). 97-21-043, 230-04-110, filed 10/10/97, effective 11/10/97. Statutory Authority: RCW 9.46.070. 95-12-052, 230-04-110, filed 6/2/95, effective 7/3/95; 94-01-033, 230-04-110, filed 12/6/93, effective 1/6/94. Statutory Authority: RCW 9.46.070 and 9.46.0331. 91-19-093 (Order 227), 230-04-110, filed 9/18/91, effective 10/19/91. Statutory Authority: RCW 9.46.070 (4), (11) and (14). 89-24-002 (Order 201), 230-04-110, filed 11/27/89, effective 12/28/89. Statutory Authority: RCW 9.46.070 (4) and (6). 79-07-019 (Order 90), 230-04-110, filed 6/14/79; Order 12, 230-04-110, filed 2/14/74; Order 9, 230-04-110, filed 12/19/73 at 1:26 p.m.; Order 5, 230-04-110, filed 12/19/73 at 1:25 p.m.]

OTS-3971.5


AMENDATORY SECTION(Amending WSR 95-12-052, filed 6/2/95, effective 7/3/95)

WAC 230-04-115
Licensing of manufacturers -- Exception -- Special sales permit.

The director may grant a special sales permit authorizing a manufacturer to sell to a ((distributor)) licensee or a tribal government, on a limited basis, authorized gambling equipment, patented or otherwise restricted gaming scheme, or paraphernalia.


Criteria for a special sales permit.


(1)
A special sales permit may be issued when demand for a particular type of equipment, scheme, or paraphernalia is anticipated to be below the level of economic feasibility of obtaining a license ((or the type of product is not one for which licensing under WAC 230-04-110 is necessary to protect the public interest. Application for a special sales permit shall be processed in the following manner:

(1) An application shall be submitted on a form obtained from the commission setting forth the following information:)).


Information required on an application.


(2) The following information shall be submitted on an application form supplied by the commission:

(a) Description of product(s), including trade name(s);

(b) Anticipated scope of sales, in quantity and dollar value;

(c) The name and address of the ((distributor)) licensee(s) that will broker the equipment;

(d) All information necessary to determine the qualification of the manufacturer; and

(e) A list of all jurisdictions in which the applicant business or any of the officers, directors, or substantial interest holders is currently licensed to conduct business related to gambling((; and

(f) The application shall be accompanied by a nonrefundable processing fee of two hundred dollars. Applicants may be assessed additional fees after an estimate of investigation costs have been established;)).


Initial investigation by staff.


(((2))) (3) Upon receipt of all moneys requested by the commission, a limited investigation shall be initiated, the scope of which shall be established using the following criterion:

(a) Anticipated demand for such equipment;

(b) The nature of the equipment, including other sources of such equipment;

(c) The availability of information from appropriate sources to verify the qualification of such manufacturer;

(d) Annual sales compared to the anticipated cost of a comprehensive licensing investigation;

(e) Whether the equipment, after installation, will require an ongoing relationship with the manufacturer;

(f) Security issues related to the manufacturing, installation, and ongoing service of the equipment; and

(g) Other factors deemed relevant((;)).


Requirements not met for a special sales permit.


(((3))) (4) At any time during the investigation process, the director may determine that a license is required under WAC 230-04-110. Upon notification of such, the applicant may withdraw their permit application without prejudice. If the applicant elects to proceed with an application for a manufacturer's license, all fees will be credited toward the appropriate license fee((;)).


Duration of a special sales permit.


(((4))) (5) A special sales permit shall be valid for a period of one year from the date of issuance: Provided, That the director may void a permit upon written notice and require a license be obtained under WAC 230-04-110 prior to further sales.


Fee for a special sales permit.


(6) The fee for a special sales permit shall be as set forth in WAC 230-04-203
.

[Statutory Authority: RCW 9.46.070. 95-12-052, 230-04-115, filed 6/2/95, effective 7/3/95.]

OTS-3972.4


AMENDATORY SECTION(Amending WSR 97-21-043, filed 10/10/97, effective 11/10/97)

WAC 230-04-120
Licensing of distributors.

Prior to selling, renting, or otherwise supplying gambling equipment, supplies, or related paraphernalia, including service of such, to any person within the state of Washington or for use within the state of Washington, a distributor shall first obtain a license from the commission. The following ((definitions and)) requirements apply to certification and licensing of distributors:


Information required on an application.


(1) ((For purposes of this title, a license is required to sell, rent, or otherwise provide to any person the following items and/or services:

(a) Punch boards and pull-tabs;

(b) Devices for the dispensing of pull-tabs;

(c) Bingo equipment, as defined by WAC 230-02-250;

(d) Any gambling equipment or paraphernalia for use in connection with licensed gambling activities, recreational gaming activities, or Class III gaming activities, including table games, chips, cards, and dice; and

(e) Organizing and conducting recreational gaming activities on behalf of persons as defined by WAC 230-02-505.

(2) The applicant shall include upon the application form supplied by the commission, the following information, as well as all other information and materials required elsewhere in these rules:)) The following information shall be submitted on an application form supplied by the commission:

(a) The full name and address of the applicant;

(b) The business name and address of each location operated by the distributor or where records or inventory will be located;

(c) The name, home address, and share of ownership of all owners of the business if the business is not a corporation. If the business is a corporation, the name, address, and share of ownership of the officers, the directors, and substantial interest holders;

(d) A full description of each separate type of gambling equipment or related supplies that the distributor intends to market in this state or for use in this state;

(e) The brand name under which each type of gambling equipment will be sold;

(f) If the applicant does not maintain a business office within the state or is incorporated in another state or county, then the full name and business and home address of the resident agent designated by the applicant pursuant to WAC 230-12-300; and

(g) A list of all manufacturers of gambling equipment and all businesses or organizations located in the state of Washington in which the applicant has any financial interest and the details of that financial interest. For the purposes of this subsection, the term financial interest shall include all arrangements through which a person directly or indirectly receives any portion of the profits of the licensed distributor and indebtedness between any other person and the applicant, other than a regulated financial institution, in excess of five thousand dollars.


Information to be included with an application.


(((3))) (2) The following information shall be included as an attachment to the application form:

(a) A list of all affiliated businesses or corporations in which the applicant, officers, directors, or substantial interest holders of the applicant, either directly or indirectly, own or control:

(i) As a sole proprietor; ((or))

(ii) As a partner; ((or))

(iii) More than fifty percent of the voting stock of a privately held or closed corporation; or

(iv) At least five percent of the voting stock of a publicly traded corporation.

(b) A list of all businesses or corporations licensed to conduct business related to gambling activities in which the applicant, officers, directors, or substantial interest holders of the applicant have any interest;

(c) A list of all jurisdictions in which the applicant or any of the officers, directors, or substantial interest holders of the applicant have been licensed for gambling-related activities at any level during the preceding ten years;

(d) A statement regarding whether the applicant or officers, directors, or substantial interest holders of the applicant have ever had a license for gambling-related activities denied, revoked, or suspended by any jurisdiction for a period longer than thirty days. All details of such must be provided as a part of the application; and

(e) A statement acknowledging that all records related to the ownership or operation of the business shall be made available for review at the time and place requested by commission staff. ((In addition to other records requested, the following shall be available:))


Additional information may be required from applicant.

(((i))) (3) The following records shall also be available for inspection by commission staff:

(a) Personal financial records of all substantial interest holders;

(((ii))) (b) All records related to the scope of activity, including suppliers, customers, and any contracts related to sales or purchases; and

(((iii))) (c) Records related to any financial or management control of or by customers and suppliers.


Notifying commission staff of changes on an application.


(4) The applicant shall notify the commission within thirty days of any change in the information submitted on or with the application form((; and)), including changes that occur after the license has been issued.


Applicant to comply with all laws and rules.


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

[Statutory Authority: RCW 9.46.070 (2), (4), (12) and (20). 97-21-043, 230-04-120, filed 10/10/97, effective 11/10/97. Statutory Authority: RCW 9.46.070 (4), (11), (14), (17) and (20). 96-09-071 and 96-11-126, 230-04-120, filed 4/16/96 and 5/21/96, effective 7/1/96. Statutory Authority: RCW 9.46.070(4) and 9.46.215. 95-19-071, 230-04-120, filed 9/18/95, effective 1/1/96. Statutory Authority: RCW 9.46.070. 94-01-033, 230-04-120, filed 12/6/93, effective 1/6/94. Statutory Authority: RCW 9.46.070 and 9.46.0331. 91-19-093 (Order 227), 230-04-120, filed 9/18/91, effective 10/19/91. Statutory Authority: Chapter 9.46 RCW. 91-15-040 (Order 224), 230-04-120, filed 7/17/91, effective 8/17/91. Statutory Authority: RCW 9.46.070 (4), (11) and (14). 89-24-002 (Order 201), 230-04-120, filed 11/27/89, effective 12/28/89. Statutory Authority: RCW 9.46.070 (1), (4), (5), (6), (7), (11), (14) and (17) and 9.46.310. 85-01-065 (Order 145), 230-04-120, filed 12/18/84; Order 80, 230-04-120, filed 12/28/77; Order 23, 230-04-120, filed 9/23/74; Order 14, 230-04-120, filed 3/27/74; Order 5, 230-04-120, filed 12/19/73.]

OTS-3973.2


AMENDATORY SECTION(Amending Order 369, filed 12/1/98, effective 1/1/99)

WAC 230-04-124
Licensing of manufacturer, distributor, gambling service supplier, and linked bingo prize provider representatives -- Exceptions.

Except as allowed by this section, all individuals representing or acting as an agent of a licensed manufacturer, distributor, gambling service supplier or linked bingo prize provider shall be licensed by the commission prior to selling, promoting or ((supplying to)) providing any person gambling equipment, paraphernalia or related services ((in connection with licensed gambling activities, a representative or agent of a licensed manufacturer, distributor, gambling service supplier, or linked bingo prize provider shall first obtain a license from the commission)). This includes individuals that manage or supervise individuals selling, promoting, or providing products or services for which a license is required. A licensed manufacturer, distributor, gambling service supplier or linked bingo prize provider shall not allow an unlicensed person to represent them in transactions restricted by this section and shall take all measures necessary to prevent an unlicensed person from doing so. The following ((definitions and)) restrictions, procedures and exceptions apply to representative licenses:


Exceptions - representative license not required.


(1) The following individuals do not require a separate representative's license:

(a) A sole owner, partner, major officer or board member and/or owner of a substantial interest in an entity ((licensed as a manufacturer, distributor, gambling service supplier, or linked bingo prize provider shall not be required to be additionally licensed as a representative to engage in the selling or supplying of the entity's products or services.));

(b) Office, clerical or warehouse personnel who have contact with ((the public and)) customers or potential customers only by telephone ((or)) at the manufacturer's, distributor's, gambling service supplier's, or linked bingo prize provider's own premises when working under the immediate and direct supervision of an owner, partner, ((or)) major officer ((shall also be exempt from this licensing requirement. A manager or supervisor who is not a sole owner, partner or a major officer or owner of a substantial interest and whose duties and responsibilities include the supervision of selling, supplying and/or the promotion of products or services shall be licensed as required by this rule prior to performing such functions. A manufacturer, distributor, gambling service supplier, or linked bingo prize provider shall not allow an unlicensed person to represent them in such transactions and shall take all measures necessary to prevent an unlicensed person from doing so)), or a licensed manager or supervisor; and

(c) Resident agents required by WAC 230-12-300 when such agents are not involved in selling or providing products or services for which a license is required.


Signature of employer required.


(2) The manufacturer, distributor, gambling service supplier, or linked bingo prize provider for which the representative will work shall sign the application acknowledging that the applicant will be representing them with their full knowledge and consent.


Requirements.


(3) An applicant for a license as a distributor representative, gambling service supplier representative, or linked bingo prize provider representative shall:


Training.


(a) Complete a training course for any activity being managed, as required and provided by the commission within thirty days after the first day worked; and


Represent only one employer at a time - exceptions.


(b) Represent only one licensed manufacturer, distributor, gambling service supplier, or linked bingo prize provider at a time and shall not represent a manufacturer: Provided, That this rule shall not prevent a licensed representative from representing a manufacturer, distributor, and/or linked bingo prize provider when all businesses are owned by the same person: Provided further, That this rule shall not bar the distributor's representative from representing his own distributor who is also licensed as a manufacturer.


Conflict of interest.


(4) If a licensed gambling service supplier representative has any interest in a licensed manufacturer or distributor and they provide services to any punch board, pull-tab, or bingo operator, they shall inform the commission, the operator, and the manufacturer or distributor of the relationship. Such manufacturer or distributor shall be prohibited from selling punch boards, pull-tabs, or disposable bingo cards to such operator.

[Statutory Authority: RCW 9.46.070. 98-24-090 (Order 369), 230-04-124, filed 12/1/98, effective 1/1/99; 98-19-130 (Order 362), 230-04-124, filed 9/23/98, effective 1/1/99; 97-24-031, 230-04-124, filed 11/25/97, effective 1/1/98. Statutory Authority: RCW 9.46.070 and 9.46.0331. 91-19-093 (Order 227), 230-04-124, filed 9/18/91, effective 10/19/91. Statutory Authority: RCW 9.46.070 (4), (11) and (14). 89-24-002 (Order 201), 230-04-124, filed 11/27/89, effective 12/28/89.]

OTS-3840.4


AMENDATORY SECTION(Amending Order 377, filed 11/30/99, effective 12/31/99)

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 Up to five tables of limited card games - hearts, rummy, pitch, pinochle, and/or cribbage (Fee to play charged)

$ 166

Class C Tournament only, no more than ten consecutive days per tournament.

(($ ))

C-5 Up to five tables $ 166
C-10 Up to ten tables $ 300
C-15 Up to fifteen tables $ 500
Class D General - Up to five tables (No fee to play charged) $ 53
Class E *General (Fee to play charged)
E-1 One table only $ 398
E-2 Up to two tables $ 685
E-3 Up to three tables $ 1,142
E-4 Up to four tables $ 2,287
E-5 Up to five tables $ 3,440
Additional tables up to a maximum of fifteen may be authorized for an additional per table fee of $1000.
*In addition to the above initial license fee, the commission will assess all applicants/licensees the actual costs that exceed the license fee for conducting the initial investigation and inspection, any follow-up reviews or investigations involved in the approval of activities and schemes.
Class F Enhanced cardroom activities endorsement - Includes alternative fee collections (per hand; pot rake)((,)) and use of player-supported jackpot schemes ((and increased betting limits)).
Annual license fee $1,500
2. CARD GAMES - HOUSE-BANKED
All tables within a card room operating any house-banked card game shall be licensed under this license class.
*Annual license fee $6,000
Per table fee (up to fifteen tables) $1,500
*The commission will assess all applicants the actual costs for conducting the initial license investigation and premises inspection. Any post licensing follow-up reviews, inspections, internal control evaluations or subsequent phases of operation shall also be charged actual costs. Licensees will be evaluated and charged for these additional authorizations/phases on an individual case by case basis.

3.

COMMERCIAL

AMUSEMENT

GAMES


(Fee based on annual gross

gambling receipts)

* Class A Premises only ** $ 285/$ 130
Class B Up to $ 50,000 $ 398
Class C Up to $ 100,000 $ 1,024
Class D Up to $ 250,000 $ 2,287
Class E Up to $ 500,000 $ 4,012
Class F Up to $1,000,000 $ 6,883
Class G Over $1,000,000 $ 8,610
* 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)) $155 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.

4.

PUNCH BOARDS/

PULL-TABS


(Fee based on annual gross

gambling receipts)

VARIANCE*
Class A Up to $ 50,000 $ 5,000 $ 544
Class B Up to $ 100,000 $ 5,000 $ 971
Class C Up to $ 200,000 $ 10,000 $ 1,832
Class D Up to $ 300,000 $ 10,000 $ 2,663
Class E Up to $ 400,000 $ 10,000 $ 3,440
Class F Up to $ 500,000 $ 10,000 $ 4,153
Class G Up to $ 600,000 $ 10,000 $ 4,812
Class H Up to $ 700,000 $ 10,000 $ 5,416
Class I Up to $ 800,000 $ 10,000 $ 5,967
Class J Up to $ 1,000,000 $ 20,000 $ 6,765
Class K Up to $ 1,250,000 $ 25,000 $ 7,509
Class L Up to $ 1,500,000 $ 25,000 $ 8,201
Class M Up to $ 1,750,000 $ 25,000 $ 8,771
Class N Up to $ 2,000,000 $ 25,000 $ 9,290
Class O Over $ 2,000,000 Nonapplicable $ 10,208
* 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.
5. PUNCH BOARD AND PULL-TAB SERVICE BUSINESS
(See WAC 230-04-133) *Initial application fee $ 206
Additional associate $ 129
Renewal $ 51
*Includes up to two associates.

6.

DISTRIBUTOR

(Fee based on annual gross sales of gambling related supplies and equipment)
(a) Class A Nonpunch board/pull-tab only $ 571
Class B Up to $ 250,000 $ 1,142
Class C Up to $ 500,000 $ 1,715
Class D Up to $1,000,000 $ 2,287
Class E Up to $2,500,000 $ 2,977
Class F Over $2,500,000 $ 3,667
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-raising event or recreational gaming activity up to 10 times per year.

$ 226

Class B Rents or leases equipment for fund-raising event or recreational gaming activity more than 10 times per year.

$ 571

7. GAMBLING SERVICE SUPPLIER
(See WAC 230-04-119) $ 594
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.
An annual fee of $129 shall be charged for each new contract initiated by the gambling service supplier.
8. LINKED BINGO PRIZE PROVIDER
(See WAC 230-04-126) $ 3,815

9.

MANUFACTURER

(Fee based on annual gross sales of gambling related supplies and equipment)
Class A Pull-tab dispensing devices only $ 571
Class B Up to $ 250,000 $ 1,142
Class C Up to $ 500,000 $ 1,715
Class D Up to $1,000,000 $ 2,287
Class E Up to $2,500,000 $ 2,977
Class F Over $2,500,000 $ 3,667
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, compliance suitability evaluations, and renewal of licenses when travel cost is incurred to complete the investigation.

10.

PERMITS

AGRICULTURAL FAIR/

SPECIAL PROPERTY

BINGO

Class A One location and event only (See WAC 230-04-191) $ 26
Class B Annual permit for specified different events and locations (See WAC 230-04-193)

$ 166

RECREATIONAL

GAMING ACTIVITY

(RGA)

(See WAC 230-02-505

and 230-25-330)

$ 53

MANUFACTURER'S SPECIAL SALES PERMIT (See WAC 230-04-115) *$ 200
*The two hundred dollar fee is nonrefundable, whether the sales permit is approved or not. In addition, an applicant may be assessed additional fees incurred to process and determine suitability.

11.

CHANGES
NAME (See WAC 230-04-310) $ 26
LOCATION (See WAC 230-04-320) $ 26
BUSINESS (Same owners) $ 53
CLASSIFICATION (See WAC 230-04-340)
LICENSE CLASS (See WAC 230-04-260) New class fee, less previous fee paid, plus

$ 26

DUPLICATE LICENSE (See WAC 230-04-290) $ 26
OWNERSHIP OF STOCK (See WAC 230-04-340) $ 53
LICENSE TRANSFERS (See WAC 230-04-125,

230-04-340, and

230-04-350)

$ 53

12.

SPECIAL FEES
INVESTIGATION (See WAC 230-04-240) As required
IDENTIFICATION AND

INSPECTION

SERVICES STAMPS

(See WAC 230-08-017) As required
QUALITY CONTROL

INSPECTION FEES

(See WAC 230-30-030) As required
REPLACEMENT OF

IDENTIFICATION

STAMPS

(See WAC 230-30-017)

$ 26

EXCEEDING LICENSE

CLASS

(See WAC 230-04-260) As required
REVIEW,

INSPECTION AND/

OR EVALUATION

OF EQUIPMENT,

PARAPHERNALIA,

SERVICES, OR

SCHEMES

(See WAC 230-12-315) As required
SPECIAL SALES

PERMITS

(See WAC 230-04-115) As required

13.

SIX-MONTH

PAYMENT PLAN


(See WAC 230-04-190)


$ 26

[Statutory Authority: RCW 9.46.070. 99-24-099 (Order 377), 230-04-203, filed 11/30/99, effective 12/31/99; 98-21-010 (Order 366), 230-04-203, filed 10/9/98, effective 11/9/98. Statutory Authority: RCW 9.46.070(5). 97-23-053, 230-04-203, filed 11/17/97, effective 6/30/98. Statutory Authority: RCW 9.46.070 (5), (6), (11), (14). 97-14-012, 230-04-203, filed 6/20/97, effective 7/21/97. 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.]

OTS-3959.6


NEW SECTION
WAC 230-12-335
Control of gambling equipment -- Sales and purchases by and to licensees only -- Authorized transfers of gambling equipment.

It shall be the responsibility of all licensees to ensure that gambling equipment is closely controlled and possessed only by authorized persons. Gambling equipment possessed by unauthorized persons is subject to seizure and forfeiture. It shall be the responsibility of all licensees to report all unauthorized possession of such equipment to the commission. The following restrictions and exceptions apply to the transfer of gambling equipment:


Restrictions.


(1) Prior to selling gambling equipment to or purchasing such from any person, a licensee shall ensure that the person receiving or selling the equipment possesses a valid gambling license: Provided, That Class F and house-banked card room applicants may possess gambling equipment during the prelicensing process after receiving written approval from commission staff.


Authorized transfers of gambling equipment.


(2) In addition to normal business transactions between manufacturers, distributors and operators, the following transfers of gambling equipment are authorized:

(a) Gambling equipment may be transferred as a part of a sale of a business when such sale is contingent on the buyer receiving a gambling license prior to the completion of the transaction. A complete record shall be made of all gambling equipment transferred in this manner, including commission identification and inspection services stamp numbers. Such transfers, including a copy of the inventory record, shall be reported to the commission.

(b) Licensed operators or distributors whose license has been revoked, expired, or voluntarily surrendered may sell or otherwise transfer gambling equipment to a licensed manufacturer or distributor. Transfers of gambling equipment in this manner are subject to the following requirements:

(i) Such transfer shall be completed within thirty days of the date the license became invalid;

(ii) The transaction is for cash or credit against amounts owed a manufacturer by a distributor;

(iii) A complete inventory of all gambling equipment transferred in this manner, including commission identification and inspection services stamp numbers, shall be reported to the commission within ten days of the transaction by the operator or distributor selling the equipment; and

(iv) The licensed manufacturer or distributor receiving the equipment shall prepare a credit memorandum as required by WAC 230-08-025(2). A copy of the inventory record and notice of sale reported to the commission shall be attached and maintained as a part of this record.

(c) A bona fide charitable or nonprofit organization may sell or otherwise transfer gambling equipment used for fund-raising events to another charitable or nonprofit organization authorized to possess such equipment. Such transfers shall be limited as set forth in WAC 230-25-110. A complete inventory of all gambling equipment transferred in this manner shall be reported to the commission within ten days of the transaction by the charitable or nonprofit organization selling or transferring the equipment.

[]

OTS-3953.1


REPEALER

     The following section of the Washington Administrative Code is repealed:
WAC 230-30-212 Punch boards, pull-tabs and related equipment may be sold with sale of business.

OTS-3954.1


REPEALER

     The following section of the Washington Administrative Code is repealed:
WAC 230-30-213 Sale of punch boards, pull-tabs and pull-tab dispensing devices when license revoked, expired or voluntarily surrendered.

Washington State Code Reviser's Office