WSR 06-07-084

PERMANENT RULES

GAMBLING COMMISSION


[ Order 456 -- Filed March 14, 2006, 2:36 p.m. , effective July 1, 2006 ]


Effective Date of Rule: July 1, 2006.

Purpose: A punch board and pull-tab (PB/PT) service business provides nonmanagement related record-keeping services to PB/PT operators. If the businesses combined total gross billings are $20,000 or less, they can operate under a PB/PT service business permit for $217, with a renewal fee of $53. If the business exceeds the $20,000 threshold, they would need a service supplier license, which costs $630 each year. A licensed service supplier requested an amendment to increase the threshold to qualify for a PB/PT service business permit from $20,000 to $25,000. The commission adopted this change at their March 10, 2006, commission meeting.

Citation of Existing Rules Affected by this Order: Amending WAC 230-02-205, 230-02-208, and 230-04-133.

Statutory Authority for Adoption: RCW 9.46.070.

Adopted under notice filed as WSR 06-04-040 on January 26, 2006, with a published date of February 15, 2006.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 3, Repealed 0.

Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 0, Repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.

Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 3, Repealed 0.

Date Adopted: March 13, 2006.

Susan Arland

Rules Coordinator

OTS-8551.1


AMENDATORY SECTION(Amending Order 436, filed 9/16/04, effective 1/1/05)

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 regulated by the 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;

(f) Providing installation, integration, maintenance, or any other service of digital surveillance systems that allows direct access to the operating system; or

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

(d) 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)) twenty-five thousand dollars during any calendar year.

[Statutory Authority: RCW 9.46.070. 04-19-069 (Order 436), 230-02-205, filed 9/16/04, effective 1/1/05; 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.]

OTS-8552.1


AMENDATORY SECTION(Amending Order 362, filed 9/23/98, effective 1/1/99)

WAC 230-02-208   Punch board and pull-tab service business defined.   "Punch board and pull-tab service business" is defined as a person that provides recordkeeping services for punch board and pull-tab operators for compensation and:

(1) The individuals are not employees of the operator;

(2) The recordkeeping services do not include recommendations or advice of a management nature;

(3) The combined total gross billings for such services during any calendar year does not exceed ((twenty)) twenty-five thousand dollars; and

(4) The records completed are normally the responsibility of the operator. For purposes of this section, recordkeeping duties that are normally the responsibility of the operator include at least the following:

(a) Reconciling sales, prizes, and cash on hand for punch boards and pull-tab series;

(b) Completing mandatory records required by WAC 230-08-010: Provided, That recordkeeping services provided by a professional accounting business are exempt from these requirements when:

(i) The business performs services other than punch board and pull-tab records for the licensee;

(ii) The business has clients other than punch board and pull-tab licensees; and

(iii) The recordkeeping service only includes transcribing entries from the licensee into the required format; and/or

(c) Storing boards and series removed from play.

[Statutory Authority: RCW 9.46.070. 98-19-130 (Order 362), 230-02-208, filed 9/23/98, effective 1/1/99.]

OTS-8553.1


AMENDATORY SECTION(Amending Order 377, filed 11/30/99, effective 12/31/99)

WAC 230-04-133   Punch board and pull-tab service business -- Registration required -- Procedures -- Restrictions.   It is in the public's interest to closely control gambling devices and records relating to the operation of a gambling activity. The commission must identify all individuals and businesses that have control over gambling devices, including punch boards and pull-tabs, and all records relating to the operation of gambling activities. Businesses that provide punch board and pull-tab record services, as defined by WAC 230-02-208, shall register with the commission and receive a permit prior to providing services to a licensee. The following procedures and restrictions apply to punch board and pull-tab service businesses:

(1) Each business seeking to register as a punch board and pull-tab service business shall submit a permit application on a form provided by the commission. Such application shall be complete in every respect, accompanied by proper fees, and signed by the applicant. The application shall include at least the following:

(a) A complete description of the services provided; and

(b) Personal and criminal history forms for all individuals involved in providing services.

(2) The permit shall be valid for a period not to exceed one year from the date approved.

(3) Any changes in information provided with the application must be submitted to the commission within thirty days of change.

(4) The permit becomes void and the business must apply for a gambling service supplier license to continue providing services if any of the conditions listed below occur:

(a) The nature of the business being provided changes to include services defined in WAC 230-02-205(1); or

(b) The combined total gross billings from providing services exceeds ((twenty)) twenty-five thousand dollars during the permit period.

(5) The permit may be revoked by the director at any time for the following reasons:

(a) Reasons set forth in WAC 230-04-400 or RCW 9.46.075; or

(b) The permit holder has acted with gross negligence or intentionally misstated or manipulated a licensee's records or punch board/pull-tab games; or

(c) Failure to produce an operator's record or copies thereof, or punch board or pull-tab games when requested by a commission agent.

(6) Immediately upon request, a punch board and pull-tab service business shall provide the commission or any of its representatives a complete list of customers and the location where records of each are maintained.

(7) If a punch board and pull-tab service business or associate of such business has any interest in a licensed manufacturer or distributor, they shall inform the commission, any operator to which they provide services, and the manufacturer or distributor of the relationship. The director may restrict the manufacturer or distributor from selling punch boards or pull-tabs to such operator.

(8) Punch board and pull-tab service business permit holders shall follow the records requirements of WAC 230-08-026 (1)(a), (c), (d), (2), and (3). In addition, such businesses shall be familiar with minimum recordkeeping requirements and availability of records for services they provide, including but not limited to WAC 230-08-010, 230-12-010 and 230-30-072.

[Statutory Authority: RCW 9.46.070. 99-24-099 (Order 377), 230-04-133, filed 11/30/99, effective 12/31/99; 98-19-130 (Order 362), 230-04-133, filed 9/23/98, effective 1/1/99.]

Washington State Code Reviser's Office