WSR 04-19-095

PROPOSED RULES

GAMBLING COMMISSION


[ Filed September 20, 2004, 2:48 p.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 04-16-024.

Title of Rule and Other Identifying Information: WAC 230-40-554 Chief executive officer or chief operations officer defined.

Hearing Location(s): Red Lion Hotel, Yakima Center, 607 East Yakima Avenue, Yakima, WA 98901, (509) 248-5900, on November 19, 2004, at 9:30 a.m.

Date of Intended Adoption: November 19, 2004.

Submit Written Comments to: Susan Arland, Rules Coordinator, P.O. Box 42400, Olympia, WA 98504, e-mail Susana@wsgc.wa.gov, fax (360) 486-3625, by November 1, 2004.

Assistance for Persons with Disabilities: Contact Shirley Corbett by November 1, 2004, TTY (360) 486-3637 or (360) 486-3447.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: Gary Murray, on behalf of the Recreational Gaming Association, requested that staff consider an amendment to allow a card room's chief executive officer (CEO) or chief operations officer (COO) (commonly referred to as the general manager) to also act as the gaming operations department manager (commonly referred to as the casino manager). Currently, agency rules require these positions to be held by two separate people. Requiring separate employees for each of these positions is a safeguard that was established when house-banked card rooms were first introduced in the state to protect a card room from a person performing "incompatible functions" (defined below). Mr. Murray states that if a card room owner is comfortable with a CEO performing both jobs, they should be allowed to hold both positions. He feels if a card room owner wants to eliminate the casino manager position and have the general manager oversee the gaming operations department in order to save money, they should be able to make that business decision.

Reasons Supporting Proposal: Staff believe allowing the CEO to also perform the duties of the gaming operations department manager would not compromise players and not necessarily compromise a card room if proper internal controls are in place. Therefore, staff proposes an amendment to WAC 230-40-544 to allow the CEO/COO to also act as the gaming operations department manager.

Statutory Authority for Adoption: RCW 9.46.070.

Statute Being Implemented: Not applicable.

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

Name of Proponent: Washington State Gambling Commission, governmental.

Name of Agency Personnel Responsible for Drafting: Susan Arland, Rules Coordinator, Lacey, (360) 486-3466; Implementation: Rick Day, Director, Lacey, (360) 486-3446; and Enforcement: Neal Nunamaker, Deputy Director, Lacey, (360) 486-3452.

No small business economic impact statement has been prepared under chapter 19.85 RCW. Not applicable.

A cost-benefit analysis is not required under RCW 34.05.328. Not applicable.

September 20, 2004

Susan Arland

Rules Coordinator



AMENDATORY SECTION [(Amending Order 383, filed 4/14/00)]WAC 230-40-554   Chief executive officer or chief operations officer defined.   The chief executive officer (CEO) or chief operations officer (COO) is the executive who has been designated by the owner, partners, or board of directors as the individual with overall responsibility for the business licensed to conduct card games. The CEO or COO may perform the duties of a gaming operation department manager as defined in WAC 230-40-556.

[Statutory Authority: RCW 9.46.070. 00-09-052 (Order 383), 230-40-554, filed 4/14/00, effective 5/15/00.]

Reviser's note: The bracketed material preceding the section above was supplied by the code reviser's office.

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