WSR 05-07-119

PROPOSED RULES

GAMBLING COMMISSION


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

Original Notice.

Preproposal statement of inquiry was filed as WSR 05-04-103.

Title of Rule and Other Identifying Information: Amendatory sections WAC 230-08-130 Quarterly activity reports by operators of punch boards and pull-tabs, 230-08-140 Quarterly activity reports by distributors, 230-08-150 Quarterly activity reports by manufacturers, 230-08-160 Quarterly activity reports by operators of social and public card rooms, 230-08-165 Quarterly activity reports by linked bingo prize providers, 230-12-305 Licensee to report to the commission civil, criminal and administrative actions filed against them, and 230-12-310 Licensees to report to the commission civil, criminal and administrative actions filed against them.

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: RCW 9.46.070(8) provides for the commission "to require that any license holder... submit such reports as the commission may deem necessary." Currently, information is requested from licensees on a quarterly basis to determine compliance with licensee class levels and to gather data to publish reports on the gambling activities in Washington state. Staff is proposing a change from quarterly activity reporting to semiannual activity reporting for all commercial operators (punchboard/pull-tabs, card rooms, linked bingo prize providers, distributors, and manufacturers). Additionally, charitable/nonprofit operators with less than a Class D bingo license will report semiannually. Changes in reporting by licensees is necessary due to recent staff reductions in the unit that mails, audits, monitors, and processes the quarterly activity reports and prepares the statistical booklets. These staff reductions are the result of the $2.5 million budget reduction adopted by the commission in response to the legislature transferring $2.5 million from our budget to the state general fund in 2004.

Reasons Supporting Proposal: Semiannual reporting will continue to provide information needed by the commission to monitor license class levels to ensure licensees are operating in the correct license class based on annual gross receipts. Staff will continue to receive information needed to produce reports regarding gambling in Washington, while decreasing the amount of data and paper staff will need to process by hand. By reducing the number of times licensees report their activity to us from four to two times a year, the number of reports received will be reduced by 50%. Furthermore, the number of statistical booklets produced each year will decrease from five to three. This means less staff time will be needed to mail, audit, monitor, and input the data. However, we will still be getting the information needed from the licensees to determine compliance and gambling activities in Washington state. Finally, two housekeeping changes need to be made to WAC 230-12-305 and 230-12-310 to remove references to quarterly activity reports.

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 amendments will not impose additional costs to licensees.

A cost-benefit analysis is not required under RCW 34.05.328. No financial impact on licensees.

March 21, 2005

Susan Arland

Rules Coordinator

OTS-7931.2


AMENDATORY SECTION(Amending WSR 95-07-094, filed 3/17/95, effective 7/1/95)

WAC 230-08-130   ((Quarterly)) Activity reports by operators of punch boards and pull-tabs.   Each licensee for the operation of punch boards and pull-tabs shall submit an activity report to the commission concerning the operation of the licensed activity and other matters set forth below:

(1) Reports shall be submitted ((detailing activities occurring during each of the following periods of the year)) as follows:


(a) Commercial licensees must report on activity occurring between:

(i) January 1st ((through March 31st;

(b) April 1st)) through June 30th of each year; and

(((c))) (ii) July 1st ((through September 30th; and

(d) October 1st)) through December 31st of each year.

(b) Charitable/nonprofit licensees must report punch board/pull-tab activity in accordance with subsection (1) of this section, unless they are also licensed for Class D or above bingo. Class D or above bingo licensees with a punch board/pull-tab license must report punch board/pull-tab activity, on the combined quarterly report provided by the commission, to determine compliance with WAC 230-20-059.


(2) A report shall be submitted for any period of time the activity was operated or a license was valid. If a license is not renewed, a report for the period between the previous report filed and the expiration date shall be submitted;

(3) The report form shall be furnished by the commission and the completed report shall be received in the office of the commission or postmarked no later than thirty days following the end of the period for which it is made;

(4) The report shall be signed by the highest ranking executive officer or their designee. If the report is prepared by someone other than the licensee or an employee, the preparer shall print his/her name and phone number on the report;

(5) The report shall be completed in accordance with the related instructions furnished with the report. ((The report shall include the following:

(a) Gross gambling receipts from punch boards and from pull-tabs;

(b) Total amount of cash prizes paid out and the cost to the licensee of all merchandise prizes paid out for punch boards and for pull-tabs;

(c) Full details of all expenses related to the purchase and operation of punch boards and pull-tabs;

(d) Total net gambling income;

(e) The number of punch boards and the number of pull-tab series removed from play during the period; and

(f) The number of punch boards and the number of pull-tab series purchased during the period, less all unplayed devices returned for credit during the period.))

[Statutory Authority: RCW 9.46.070 and 9.46.0217. 95-07-094, 230-08-130, filed 3/17/95, effective 7/1/95. Statutory Authority: RCW 9.46.070. 94-11-095 (Order 251), 230-08-130, filed 5/17/94, effective 7/1/94. Statutory Authority: RCW 9.46.070 (8), (11) and (14). 88-13-060 (Order 179), 230-08-130, filed 6/14/88. Statutory Authority: Chapter 9.46 RCW. 86-19-056 (Order 161), 230-08-130, filed 9/15/86, effective 1/1/87. Statutory Authority: RCW 9.46.070 (8) and (9). 85-06-002 (Order 147), 230-08-130, filed 2/22/85. Statutory Authority: RCW 9.46.070(8). 82-04-010 (Order 118), 230-08-130, filed 1/22/82; Order 80, 230-08-130, filed 12/28/77; Order 70, 230-08-130, filed 5/24/77; Order 46, 230-08-130, filed 2/13/76; Order 29, 230-08-130, filed 1/23/75; Order 14, 230-08-130, filed 3/27/74; Order 5, 230-08-130, filed 12/19/73, 1:25 p.m.]

OTS-7932.2


AMENDATORY SECTION(Amending WSR 94-01-033, filed 12/6/93, effective 1/6/94)

WAC 230-08-140   ((Quarterly)) Activity reports by distributors.   Each licensed distributor shall submit an activity report to the commission concerning sales and services relating to gambling activities each quarter by completing a report form furnished by the commission. The following requirements shall be followed for completion and filing of activity reports:

(1) ((Quarterly reporting periods are defined as)) Licensees must report on activity occurring between:

(a) January 1st ((through March 31st;

(b) April 1st)) through June 30th of each year; and

(((c))) (b) July 1st ((through September 30th; and

(d) October 1st)) through December 31st of each year.

(2) The completed report shall be received in the office of the commission or postmarked no later than thirty days following the end of the period for which it is made;

(3) The report shall be signed by the highest ranking executive officer or their designee. If the report is prepared by someone other than the licensee or their employee, then the preparer's name and business telephone number must be provided;

(4) The report shall ((include, among other items, the following:

(a) The gross sales of gambling related supplies or equipment or merchandise of any kind which could be used to operate, or in connection with, punch boards, pull-tabs, pull-tab dispensing devices, bingo, or amusement games, where such sales are made in the state of Washington or for use or distribution within this state;

(b) The quantity of each specific type of device, equipment or merchandise sold within this state or for distribution and use within this state by the licensee;

(c) A listing of the name and address of each person who was a distributor's representative for the licensee during the three month period or who attempted to solicit sales of such devices, equipment or merchandise, either within the state of Washington or for use or distribution within the state; and

(d) The number of employees in the state of Washington other than those listed in (c) of this subsection)) be completed in accordance with the related instructions furnished with the report.

(5) Each distributor with an active license must submit a report regardless of the level of activity. If no activity was conducted during the period, a report stating "no activity" shall be submitted;

(6) If a licensee does not renew their license, then they shall file a report for the period between the previous report filed and the expiration date of the license.

[Statutory Authority: RCW 9.46.070. 94-01-033, 230-08-140, filed 12/6/93, effective 1/6/94. Statutory Authority: RCW 9.46.070 (4), (11) and (14). 89-24-002 (Order 201), 230-08-140, filed 11/27/89, effective 12/28/89. Statutory Authority: RCW 9.46.070 (8) and (9). 85-06-002 (Order 147), 230-08-140, filed 2/22/85. Statutory Authority: RCW 9.46.070(7). 79-09-029 (Order 91), 230-08-140, filed 8/14/79; Order 70, 230-08-140, filed 5/24/77; Order 46, 230-08-140, filed 2/13/76; Order 29, 230-08-140, filed 1/23/75; Order 5, 230-08-140, filed 12/19/73, 1:25 p.m.]

OTS-7933.2


AMENDATORY SECTION(Amending Order 251, filed 5/17/94, effective 7/1/94)

WAC 230-08-150   ((Quarterly)) Activity reports by manufacturers.   Each licensed manufacturer shall submit an activity report to the commission concerning all sales and services relating to gambling activities each quarter by completing a report form furnished by the commission. The following requirements shall be followed for completion and filing of activity reports:

(1) ((Quarterly reporting periods are defined as)) Licensees must report on activity occurring between:

(a) January 1st ((through March 31st;

(b) April 1st)) through June 30th of each year; and

(((c))) (b) July 1st ((through September 30th; and

(d) October 1st)) through December 31st of each year.

(2) The completed report shall be received in the office of the commission or postmarked no later than thirty days following the end of the period for which it is made;

(3) The report shall be signed by the highest ranking executive officer or their designee. If the report is prepared by someone other than the licensee or their employee, then the preparer shall print his/her name and phone number on the report;

(4) The report shall ((include, among other items, the following:

(a) The gross sales of gambling related supplies or equipment, or merchandise of any kind which could be used to operate, or in connection with, punch boards, pull-tabs, pull-tab dispensing devices, bingo, or amusement games, when such sales are made in the state of Washington or for distribution or use within the state of Washington;

(b) The quantity of each specific type of such device, equipment, or merchandise sold within the state or for distribution or use within the state of Washington by the licensee;

(c) A listing of the name and address of each person who was a manufacturer's representative for the licensee or who solicited sales of such devices or equipment for or on behalf of the licensee within the state of Washington or for use or distribution within the state; and

(d) The number of employees in the state of Washington other than those listed in (c) of this subsection)) be completed in accordance with the related instructions furnished with the report.

(5) Each manufacturer with an active license must submit a report regardless of the level of activity. If no activity was conducted during the period, a report stating "no activity" shall be submitted;

(6) If a licensee does not renew their license, then they shall file a report for the period between the previous report filed and the expiration date of the license.

[Statutory Authority: RCW 9.46.070. 94-11-095 (Order 251), 230-08-150, filed 5/17/94, effective 7/1/94; 94-01-033, 230-08-150, filed 12/6/93, effective 1/6/94. Statutory Authority: RCW 9.46.070 (4), (11) and (14). 89-24-002 (Order 201), 230-08-150, filed 11/27/89, effective 12/28/89. Statutory Authority: RCW 9.46.070 (8) and (9). 85-06-002 (Order 147), 230-08-150, filed 2/22/85; Order 70, 230-08-150, filed 5/24/77; Order 46, 230-08-150, filed 2/13/76; Order 29, 230-08-150, filed 1/23/75; Order 14, 230-08-150, filed 3/27/74; Order 5, 230-08-150, filed 12/19/73, 1:25 p.m.]

OTS-7934.2


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

WAC 230-08-160   ((Quarterly)) Activity reports by operators of social and public card rooms.   Each licensee for the operation of social or public card rooms shall submit an activity report to the commission concerning the operation of the licensed activity and other matters set forth below: Provided, That persons licensed under Class "D" - general, no fee charged, are exempt from all portions of this section:

(1) ((Reports shall be submitted detailing activities occurring during each of the following periods of the year)) Licensees must report on activity occurring between:


(a) January 1st ((through March 31st;

(b) April 1st)) through June 30th of each year; and

(((c))) (b) July 1st ((through September 30th; and

(d) October 1st)) through December 31st of each year.


(2) A report shall be submitted for any period of time the activity was operated or a license was valid. If a license is not renewed, a report for the period between the previous report filed and the expiration date shall be submitted;

(3) The report form shall be furnished by the commission and the completed report shall be received in the office of the commission or postmarked no later than thirty days following the end of the period for which it is made;

(4) The report shall be signed by the highest ranking executive officer or their designee. If the report is prepared by someone other than the licensee or an employee, the preparer shall print his/her name and phone number on the report;

(5) The report shall ((be completed in accordance with the related instructions furnished with the report. The report shall include the following:

(a) Gross gambling receipts;

(b) Full details of all compensation paid by the licensee to each person for any work connected with the management, promotion, conduct or operation of the card room;

(c) Full details of all other expenses related to the operation of the card room;

(d) Net gambling income or loss from the operation of the card room for the reporting period;

(e) The normal days and times of operation of the card room; and

(f) The total hours the card room was open during the period)) be completed in accordance with the related instructions furnished with the report.

[Statutory Authority: RCW 9.46.070. 00-09-052 (Order 383), 230-08-160, filed 4/14/00, effective 5/15/00. Statutory Authority: RCW 9.46.070 and 9.46.0217. 95-07-094, 230-08-160, filed 3/17/95, effective 7/1/95. Statutory Authority: RCW 9.46.070. 94-11-095 (Order 251), 230-08-160, filed 5/17/94, effective 7/1/94. Statutory Authority: Chapter 9.46 RCW. 86-19-056 (Order 161), 230-08-160, filed 9/15/86, effective 1/1/87. Statutory Authority: RCW 9.46.070 (8) and (9). 85-06-002 (Order 147), 230-08-160, filed 2/22/85. Statutory Authority: RCW 9.46.070 (4), (7), (8) and (11). 83-06-077 (Order 127), 230-08-160, filed 3/2/83; Order 80, 230-08-160, filed 12/28/77; Order 70, 230-08-160, filed 5/24/77.]

OTS-7935.2


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

WAC 230-08-165   ((Quarterly)) Activity reports by linked bingo prize providers.   Each licensed linked bingo prize provider shall submit an activity report to the commission concerning sales and services relating to gambling activities each quarter by completing a report form furnished by the commission. The following requirements shall be followed for completion and filing of activity reports:

(1) ((Quarterly reporting periods are defined as)) Licensees must report on activity occurring between:

(a) January 1st ((through March 31st;

(b) April 1st)) through June 30th of each year; and

(((c))) (b) July 1st ((through September 30th; and

(d) October 1st)) through December 31st of each year;

(2) The completed report shall be received in the office of the commission or postmarked no later than thirty days following the end of the period for which it is made;

(3) The report shall be signed by the highest ranking executive officer or their designee. If the report is prepared by someone other than the licensee or their employee, then the preparer's name and business telephone number must be provided;

(4) The report shall ((include, among other items, the following:

(a) The gross sales of gambling related supplies or equipment or merchandise of any kind which could be used to operate, or in connection with bingo games where such sales are made in the state of Washington or for use or for distribution within this state;

(b) The quantity of each specific type of device, equipment or merchandise sold within this state or for distribution and use within this state by the licensee;

(c) A listing of the name and address of each person who was a linked bingo prize provider's representative for the licensee during the three-month period or who attempted to solicit sales of such devices, equipment or merchandise, either within the state of Washington or for use or distribution within the state;

(d) The number of employees in the state of Washington other than those listed in (c) of this subsection;

(e) The gross prizes disbursed for all linked bingo prizes managed;

(f) The balance of linked bingo prizes accrued; and

(g) A list of bingo licensees participating in linked bingo prizes managed)) be completed in accordance with the related instructions furnished with the report;

(5) Each linked bingo prize provider with an active license must submit a report regardless of the level of activity. If no activity was conducted during the period, a report stating "no activity" shall be submitted; and

(6) If a licensee does not renew their license, then they shall file a report for the period between the previous report filed and the expiration date of the license.

[Statutory Authority: RCW 9.46.070. 98-24-090 (Order 369), 230-08-165, filed 12/1/98, effective 1/1/99.]

OTS-7936.1


AMENDATORY SECTION(Amending Order 420, filed 5/15/03, effective 7/1/03)

WAC 230-12-305   Licensee required to submit updated documents or information.   In addition to any other requirements set forth in these rules, persons licensed by the commission shall submit any new or updated documents or information including, but not limited to, the following:

(1) Articles of incorporation or by laws, or any other documents which set out the organizational structure and purposes;

(2) Internal Revenue Service tax exemption status (charitable/nonprofit organizations only);

(3) All contracts and agreements, whether oral or written which relate to gambling activities or alter the organizational structure of the licensee or its business activities in Washington state; and

(4) All cash or asset contributions, draws from lines of credit, and loans, from other than recognized financial institutions, which individually or collectively exceed a total of ten thousand dollars during any calendar year: Provided, That cash or asset contributions do not include donations to licensed charitable or nonprofit organizations.


Submission timeline.


(5) The new or updated documents and/or information shall be submitted to the commission ((by notation on the next quarterly activity report filed, and by attaching all details concerning each transaction: Provided, That licensees not required to submit quarterly activity reports shall submit the required information)) no later than sixty days following the transaction(s) date.

[Statutory Authority: RCW 9.46.070. 03-11-041 (Order 420), 230-12-305, filed 5/15/03, effective 7/1/03; 94-07-084 (Order 250), 230-12-305, filed 3/16/94, effective 4/16/94. Statutory Authority: RCW 9.46.070 (7)(14). 91-07-021, 230-12-305, filed 3/13/91, effective 4/13/91. Statutory Authority: Chapter 9.46 RCW. 87-09-043 (Order 167), 230-12-305, filed 4/14/87.]

OTS-7937.1


AMENDATORY SECTION(Amending Order 382, filed 4/14/00, effective 5/15/00)

WAC 230-12-310   Licensees to report to the commission civil, criminal and administrative actions filed against them.   (1) Each licensee shall report to the commission within fourteen days, all criminal actions filed against the licensee or the licensee's president, chief executive officer, chairman of the board, treasurer (chief financial officer), partner, person holding a substantial interest or manager of the licensed gambling activity. The final disposition of the case must be ((attached with the next quarterly activity report filed with the commission. Organizations not required to submit quarterly activity reports shall send the report to)) received by the commission within thirty days after the final disposition.

(2) Each licensee shall report to the commission within thirty days, all civil and administrative actions filed by or against persons listed in subsection (1) of this section that involve ownership or control of the business, dissolutions, actions significantly affecting business interests, such as patent or copyright infringement and all administrative actions from other gambling regulatory agencies, including those from other countries and Indian tribes. ((This report shall be attached to the next quarterly activity report filed with the commission. Organizations not required to submit quarterly reports shall send the report to)) The final disposition of the case must be received by the commission within thirty days of ((their receipt of notice of the action filed and within thirty days after)) the final disposition.

(3) The report shall consist of a complete copy of the original documents filed. The licensee shall notify the commission of the final disposition of the case and include a copy of the final documents filed including, but not limited to, settlement agreements.

(4) The director may exempt reporting specific types of civil actions upon written request and for good cause shown.

[Statutory Authority: RCW 9.46.070. 00-09-051 (Order 382), 230-12-310, filed 4/14/00, effective 5/15/00. Statutory Authority: Chapter 9.46 RCW. 86-21-060 (Order 162), 230-12-310, filed 10/14/86; Order 15, 230-12-310, filed 4/17/74.]

Washington State Code Reviser's Office