Original Notice.

Preproposal statement of inquiry was filed as WSR 01-15-068.

Title of Rule: House-banked card rooms: WAC 230-04-207 Additional requirements -- House-banked card rooms and 230-40-801 Interruption of card games -- Preoperational review and evaluation required -- House-banking.

Purpose: This filing will codify operating procedures which are currently handled through policy. These procedures will ensure [that] the security and integrity of the card games have not been compromised in any way during the time the card room was closed.

Statutory Authority for Adoption: RCW 9.46.070.

Summary: See Explanation of Rule below.

Reasons Supporting Proposal: See Purpose above.

Name of Agency Personnel Responsible for Drafting: Susan Arland, Lacey, (360) 486-3466; Implementation: Ben Bishop, Lacey, (360) 486-3446; and Enforcement: Bob Berg, Lacey, (360) 486-3452.

Name of Proponent: Staff, governmental.

Rule is not necessitated by federal law, federal or state court decision.

Explanation of Rule, its Purpose, and Anticipated Effects: Also see Purpose above. If a house-banked card room will be closed for more than seven days, the operator must inform commission staff why the card room is closed and the anticipated reopening date, within three days of the closure. If the closure exceeds sixty days, the licensee shall notify staff of any changes in their operation. When the licensee feels they are ready to reopen, the card room must undergo a preoperational review and evaluation (PORE) by commission staff. Staff will review the physical layout of the card room, internal accounting and administrative controls, and ensure there is adequate trained personnel in place. The licensee must correct any discrepancies found by staff and receive written approval from the director prior to reopening the card room. This amendment will codify operating procedures which are currently handled through policy.

Proposal Changes the Following Existing Rules: See Purpose and Explanation of Rule above.

No small business economic impact statement has been prepared under chapter 19.85 RCW. Proposal is exempt under RCW 19.85.025(2); therefore, a small business economic impact statement is not required.

RCW 34.05.328 does not apply to this rule adoption. This agency does not choose to make section 201, chapter 403, Laws of 1995, apply to this rule adoption.

Hearing Location: Sheraton Tacoma Hotel, 1320 Broadway Plaza, Tacoma, WA 98402, (253) 572-3200, on November 15, 2001, at 9:30 a.m.

Assistance for Persons with Disabilities: Contact Shirley Corbett by November 1, 2001, TDD (360) 486-3637, or (360) 486-3447.

Submit Written Comments to: Susan Arland, Rules Coordinator, P.O. Box 42400, Olympia, WA 98504-2400, (360) 486-3466, fax (360) 486-3625, by November 1, 2001.

Date of Intended Adoption: November 15, 2001.

September 13, 2001

Susan Arland

Rules Coordinator

OTS-5131.1

NEW SECTION
WAC 230-40-801   Interruption of card games -- Preoperational review and evaluation required -- Procedures -- House-banking.   A house-banked card room applicant, or a current licensee who interrupts operations for a substantial period, shall demonstrate the ability to comply with commission requirements prior to operating house-banked card games. In order to demonstrate such capability, the commission staff shall complete a preoperational review and evaluation (PORE) of the entire operation. The following requirements and preoperating procedures apply to house-banked card rooms:

Review and evaluation process.

(1) The commission staff shall review and evaluate the information presented per WAC 230-04-207 to determine:

(a) The internal accounting and administrative controls are adequate to assure gambling activities are controlled and results of operations are accurately recorded;

(b) The physical layout of the card room and supporting functions are adequate to implement the proposed accounting and administrative controls;

(c) The applicant has adequate trained personnel and an organizational structure that will support implementation of the proposed accounting and administrative controls.

Notification of interruptions in operations.

(2) A licensee shall notify the commission in writing if the operation of house-banked card games is interrupted for more than seven days. Such notification shall:

(a) Be made within three days of the interruption;

(b) Include the reason for ceasing operations; and

(c) Include the estimated date operations are planned to recommence.

Procedures for interruptions in operations that exceed sixty days.

(3) If a temporary interruption in operations exceeds sixty days, a licensee shall comply with the following procedures prior to commencing operations:

(a) Provide the commission, in writing, with any changes in the information required by WAC 230-04-207;

(b) Request commission staff to evaluate the impact of any changes in internal controls, physical layout, or personnel structure and to complete a PORE for changes that are material. The licensee shall be required to pay for such review and evaluation;

(c) Correct any discrepancies noted by the staff's review; and

(d) Receive written approval from the director to commence operations: Provided, That the director may allow limited operations when changes require the staff to observe operations in order to evaluate the impact of changes.

[]

OTS-5070.1

AMENDATORY SECTION(Amending Order 383, filed 4/14/00, effective 5/15/00)

WAC 230-04-207   ((Additional requirements -- ))House-banked card games -- Additional requirements.   Prior to ((being granted a license, each applicant)) an application for a house-banked card room license being presented to the commission for approval, the applicant shall demonstrate their ability to comply with commission requirements for ((operation of house-banked card)) such games. In order to demonstrate this capability, an applicant shall provide such information as the commission staff may require((. Such information shall be reviewed and any discrepancies corrected prior to the granting of a license)) and complete a preoperational review and evaluation (PORE) per WAC 230-40-801. At least the following shall be submitted as a part of their application:

Internal accounting and administrative controls.

(1) A detailed description of its planned system of internal accounting and administrative controls in the standard format prescribed by commission staff. Such information shall meet all requirements set forth in WAC 230-40-815 and be presented in both a narrative and diagrammatic form;

Physical layout.

(2) A detailed diagram of the planned physical layout of the card room and all supporting installations. Such diagram shall include at least the following:

(a) The location of all gaming tables;

(b) The location of all surveillance cameras;

(c) The count room;

(d) The surveillance room; and

(e) The cashier's cage;

(3) A detailed description of:

(a) Card games to be played, including rules of play; and

(b) Type of gaming tables, including table layouts.

[Statutory Authority: RCW 9.46.070. 00-09-052 (Order 383), 230-04-207, filed 4/14/00, effective 5/15/00.]

Washington State Code Reviser's Office