WSR 07-11-077



[ Filed May 15, 2007, 11:57 a.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 07-05-019.

Title of Rule and Other Identifying Information: WAC 230-40-817 Destruction and disposal of gambling chips.

Hearing Location(s): Hilton, 301 West 6th Street, Vancouver, WA 98660, (360) 993-4500, on August 10, 2007, at 9:30 a.m.

Date of Intended Adoption: August 10, 2007.

Submit Written Comments to: Susan Arland, P.O. Box 42400, Olympia, WA 98504-2400, e-mail, fax (360) 486-3625, by August 1, 2007.

Assistance for Persons with Disabilities: Contact Gail Grate, Executive Assistant, by August 1, 2007, TTY (360) 486-3637 or (360) 486-3447.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: We require card room licensees to submit internal controls outlining how they will dispose of logo chips. This new rule expands and codifies requirements to maintain control over logo chips when a card room goes out of business or changes its logo. The new rule will require the following:

1. Chip destruction log (sample attached);

2. Method of destruction;

3. Designate the departments responsible for overseeing chip destruction. At least one licensed employee must be from the accounting department; and

Procedures to be followed if the licensee's chip inventory becomes obsolete (i.e., card room changes its name, license is revoked, expired, or voluntarily surrendered).

Statutory Authority for Adoption: RCW 9.46.070.

Statute Being Implemented: Not applicable.

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: Mark Harris, Assistant Director, Lacey, (360) 486-3579.

No small business economic impact statement has been prepared under chapter 19.85 RCW. A small business economic impact statement has not been prepared pursuant to RCW 19.85.025, and/or the proposed rule change clarifies language of rules without changing the effect.

A cost-benefit analysis is not required under RCW 34.05.328. The Washington state gambling commission is not an agency that is statutorily required to prepare a cost-benefit analysis under RCW 34.05.328.

May 14, 2007

Susan Arland

Rules Coordinator


WAC 230-40-817   Destruction and disposal of gambling chips.   Licensees must submit internal controls to the gambling commission outlining the procedures for disposing of gambling logo chips.

Damaged and worn chips.

(1) A card room's internal controls must set out the method for destroying logo chips that are damaged or worn. The following, at a minimum, must be included in the internal controls:

(a) Method of destruction. Chips must be destroyed or mutilated in such a way that they are unusable for play; and

(b) The two departments, one of which must be the accounting department, that will be responsible for overseeing chip destruction. Only licensed employees are allowed to perform chip destruction.

(2) All gambling chips destroyed by licensees shall be recorded on a chip destruction log in the format we prescribe.

Changing a logo or closing a card room.

(3) In the event the licensee's chip inventory becomes obsolete, the card room operator must:

(a) Sell or otherwise transfer gambling equipment to a licensed manufacturer or distributor; or

(b) Destroy the chips pursuant to the internal controls set forth in subsection (1) of this section.


Washington State Code Reviser's Office