WSR 04-20-107

PROPOSED RULES

GAMBLING COMMISSION


[ Filed October 5, 2004, 4:47 p.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 04-17-007.

Title of Rule and Other Identifying Information: WAC 230-02-205 Gambling service supplier 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: Delores Chiechi, representing the Recreational Gaming Association, has submitted a petition for rule change to amend WAC 230-02-205. This rule outlines what types of gambling related services would require the person or business performing them to obtain a gambling licensee [license]. Persons or businesses that loan money to more than one licensee must hold a service supplier license. This rule exempts banks and credit unions that are regulated by the Department of Financial Institutions (DFI) or any federally regulated commercial lending institution from licensure by the commission. First, Ms. Chiechi is requesting that mortgage companies no longer be required to obtain a service supplier license. The petitioner states that mortgage companies are licensed by DFI and should not have to obtain a license from the commission in order to loan funds to licensees. Secondly, this rule requires persons that provide gambling related consulting or other services to obtain a service supplier license. Ms. Chiechi is requesting that licensed certified public accountants providing gambling related services not have to hold a service supplier license.

Reasons Supporting Proposal: At the September meeting, the commission filed the petition and anticipate staff providing a recommendation on whether to support the petition or not at the next meeting.

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.

October 5, 2004

Susan Arland

Rules Coordinator



AMENDATORY SECTION [(Amending Order 380, filed 2/16/00)]WAC 230-02-205   Gambling service supplier defined.   A "gambling service supplier" is any person who provides gambling related services for compensation, whether 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 or other financial institution, such as mortgage companies, licensed and regulated by the Washington state department of financial institutions or any federally regulated commercial lending institution shall not be deemed as providing gambling related services;

(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;

(c) Attorneys and certified public accountants licensed in Washington state;

(d) Accountants, and governmental affairs consultants whose ((primary)) business is providing professional services that are primarily unrelated to the management or operation of gambling activities; and

(((d))) (e) 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. 00-05-102 (Order 380), 230-02-205, filed 2/16/00, effective 7/1/00; 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.]

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

Reviser's note: RCW 34.05.395 requires the use of underlining and deletion marks to indicate amendments to existing rules. The rule published above varies from its predecessor in certain respects not indicated by the use of these markings.

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