WSR 05-07-115

PROPOSED RULES

GAMBLING COMMISSION


[ Filed March 21, 2005, 4:57 p.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 05-04-097.

Title of Rule and Other Identifying Information: WAC 230-04-255 Directory may issue temporary licenses -- Procedures -- Restrictions.

Hearing Location(s): Red Lion Hotel at the Park, 303 West North River Drive, Spokane, WA 99201, (509) 326-8000, on May 13, 2005, at 9:30 a.m.

Date of Intended Adoption: May 13, 2005.

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 May 1, 2005.

Assistance for Persons with Disabilities: Contact Shirley Corbett by May 1, 2005, TTY (360) 486-3637 or (360) 486-3447.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The original rule was passed in 1974 and provided the director with the authority to issue a sixty day temporary license to qualified individuals and organizations. Throughout its existence, the commission has met on a periodic basis, generally once each month, to approve licenses and conduct other business. This schedule does not always allow for the timely issuance of licenses. To address this, the commission authorized the director to issue temporary licenses to bridge the gap between when the prelicense investigation was completed and the commission held its next meeting. However, the commission retained sole licensing approval over manufacturers. Manufacturers, at that time, were primarily engaged in the production of punchboards and pull-tabs. These games were seen as extremely vulnerable to manipulation. Some of this vulnerability stemmed from manufacturers producing games where the purchaser (distributor or operator) would know where the winning tabs were located. This was seen as the primary threat to the fledgling gambling industry in Washington. The rule has not been amended for twenty-six years. With the advent of house-banked card rooms, the commission expressed the desire to be actively involved in the licensing approval process. To accomplish that goal, this rule was amended effective May 2000, to require house-banked card room licenses to be approved by the commission, and the director would not issue temporary licenses.

Reasons Supporting Proposal: Each month, staff are pressured by internal and external sources to get applicants on the commission meeting agenda, so their license can be approved and they can begin operations (most typically, this a house-banked card room applicant). The deadline to be included on a commission agenda is three weeks prior to the meeting. If deadlines are not met, applicants must wait until the next meeting for approval. This amendment would give the director authority to issue temporary licenses to manufacturers and house-banked card rooms.

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. The amendment will not impose additional costs on licensees.

A cost-benefit analysis is not required under RCW 34.05.328. Amendment does not impose additional costs to licensees.

March 21, 2005

Susan Arland

Rules Coordinator

OTS-7920.1


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

WAC 230-04-255   Director may issue temporary licenses -- Procedures -- Restrictions.   The director may issue a temporary license upon the administrative approval of the application. The following procedures ((and restrictions)) apply to temporary licenses:

(1) ((The director shall not issue temporary licenses to:

(a) Manufacturers; and

(b) Applicants to operate house-banked card games;

(2))) Temporary licenses shall allow an applicant to conduct such activity for a period not to exceed sixty days.

(((3))) (2) If the application is not approved by the commission during the sixty day period, the temporary license shall become void: Provided, That if the commission does not conduct a meeting within the sixty-day period, the director may approve an additional temporary license to expire no later than the day following the next scheduled public meeting;

(((4))) (3) Once approved by the commission, a temporary license will be replaced with the issuance of a license to expire one year from the initial date of the temporary license.

[Statutory Authority: RCW 9.46.070. 00-09-052 (Order 383), 230-04-255, filed 4/14/00, effective 5/15/00; Order 12, 230-04-255, filed 2/14/74.]

Washington State Code Reviser's Office