WSR 07-11-079

PROPOSED RULES

GAMBLING COMMISSION


[ Filed May 15, 2007, 12:04 p.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 07-08-008.

Title of Rule and Other Identifying Information: WAC 230-20-102 Bingo prizes -- Record of winners.

Hearing Location(s): La Quinta Inn and Suites, 1425 East 27th Street, Tacoma, WA 98421, (253) 383-0146, on July 13, 2007, at 9:30 a.m.

Date of Intended Adoption: July 13, 2007.

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

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

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The petitioner requests that bingo licensees no longer be required to record the address of winners of cash or merchandise bingo prizes of $20 or less.

The proposed change would also give licensees the option to record bingo winners under $20 on a prize receipt log, rather than on a separate prize receipt.

The rule requires a bingo prize receipt to be completed for each prize awarded at bingo games with the exception that merchandise prizes with a cost or fair market value of $15 or less may be receipted on a single log sheet as allowed in subsection (4) of the rule. The petitioner requests that cash and merchandise prizes of $20 or less be receipted on a prize receipt log.

Statutory Authority for Adoption: RCW 9.46.070.

Statute Being Implemented: Not applicable.

Name of Proponent: Ronnie Strong, licensed bingo operator, private.

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 15, 2007

Susan Arland

Rules Coordinator

OTS-9717.1


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

WAC 230-20-102   Bingo prizes -- Record of winners.   All payments of prizes for bingo games shall be accounted for and documented in a manner that affords independent verification of the amount paid and the fact of distribution to winners: Provided, That Class A and B bingo licensees, organizations conducting bingo under the provisions of RCW 9.46.0321, and bingo activities conducted at a qualified agricultural fair are exempt from all portions of this rule if the requirements of WAC 230-08-015 are followed. Payment of all prizes shall be documented using the following procedures:

(1) A prize receipt shall be completed for each prize awarded at bingo games: Provided, That cash and merchandise prizes with a cost or fair market value of ((fifteen)) twenty dollars or less may be receipted on a single log sheet as allowed in subsection (4) of this section. The following minimum information shall be recorded for each prize awarded:

(a) The date;

(b) The game number;

(c) The complete name and address of the winner. The following provision does not apply to linked bingo prizes: Provided, That an address of the winner is not required if prizes less than twenty dollars or greater than $300 are paid by check or a combination of cash or check and:

(i) Checks are drawn on the licensee's gambling bank account;

(ii) Checks are made payable only to the winner: Provided, That checks for prizes won by players under age eighteen may be made payable to the guardian or immediate family member accompanying the player;

(iii) The game number and prize receipt number are notated on the check;

(iv) Checks used are of a type that provides a duplicate copy. The copies become a part of the daily bingo records and must be maintained as such;

(v) All original checks are returned by the bank to the licensee. Original checks shall be available for inspection upon demand by the commission; and

(vi) Checks drawn on the licensee's gambling account are not cashed or otherwise redeemed by the licensee or on the licensees premises.

(d) The dollar amount of the prize or the licensee's cost of noncash prizes;

(e) A full description of all noncash prizes;

(f) The check number, if any portion of the prize is paid by check; and

(g) The initials of the bingo worker making the payout and the cashier making the payment.

(2) Prize receipts shall be consecutively issued in an ascending order. Prize receipts bearing a number below the highest number issued during a session shall be voided and retained with the daily records.

(3) The original of each prize receipt shall be given to the winner and a duplicate copy shall be retained by the licensee as a part of its records for a period of not less than three years.

(4) Cash and merchandise prizes with a cost or fair market value of ((fifteen)) twenty dollars or less may be receipted on a ((merchandise)) prize receipt log. A separate ((merchandise)) prize receipt log shall be maintained for each session used, and retained as a part of the bingo daily records. At a minimum, the following information must be recorded on the log:

(a) The date and session;

(b) The game number;

(c) The complete name of the winner printed;

(d) The cost of the prize or fair market value of the prize if donated;

(e) A full description of the prize;

(f) The initials of the person distributing the prize; and

(g) The criteria for awarding the prizes.

(5) Prize receipts shall be printed by a commercial printer and meet the following standards:

(a) Manufactured of two-part, self-duplicating paper that provides for an original and a duplicate copy;

(b) Imprinted with the name of the licensee and a consecutive ascending number that does not repeat in at least 100,000 occurrences: Provided, That Class E and smaller licensees may utilize receipts that are not imprinted with the licensee's name and which the consecutive number does not repeat in at least 1,000 occurrences; and

(c) Provide space for the licensee to record the information required by subsection (1) ((above)) of this section.

(6) All prize receipts purchased or otherwise obtained must be accounted for by the licensee. Prize receipts purchased or otherwise obtained by the licensee shall be documented on a vendor's invoice. This invoice, or a photocopy thereof, shall be maintained on the premises and available for inspection by commission staff. The following information shall be documented on the purchase invoice:

(a) Name of the vendor;

(b) Name of the purchasing organization;

(c) Date of purchase;

(d) Number of receipts purchased; and

(e) The beginning and ending receipt number.

(7) Licensees may establish an accrued prize fund for any game or set of games that have a progressive prize or offer a jackpot prize if special conditions are met during the game. Contributions to the accrued prize fund shall be treated as prizes awarded during the current session if the following conditions are met:

(a) Each game or set of games that offers a prize included in the accrued prize fund must be identified by the licensee prior to making contributions for such games;

(b) The licensee shall maintain a record, in an approved format, of all such games with at least the following information:

(i) The name of the game or set of games;

(ii) The sessions at which the game or set of games is played;

(iii) The game number(s) at each of the sessions the game or set of games is played;

(iv) The amount that will be added to the accrued prize fund each time the game or set of games is played;

(v) A description of how the contribution amount was determined;

(vi) The maximum accrued prize fund balance that will be reached for all games; and

(vii) The date of the most recent changes to this record;

(c) Prize receipts will be issued only when the prize is actually awarded;

(d) Once an election is made to accrue prizes for a particular game or set of games, the predetermined contribution amount must be added to the accrued prize fund each time the game or set of games is played, until the accrued prize fund reaches the maximum balance;

(e) Once the maximum is reached, no contributions will be made until the accrued prize fund balance has been decreased for a prize paid;

(f) Full details of accrued prizes outstanding at the end of each calendar quarter will be furnished on the licensee's activity report;

(g) A reconciliation of the prize fund shall be made on each "Daily summary - Cash control" record;

(h) The amount of prize accrued shall be deposited in the gambling receipts account per WAC 230-12-020;

(i) The balance of the gambling receipts banking account shall not be reduced at any time below the amount of prizes accrued and currently being offered: Provided, That accrued prizes may be transferred to a special bank account, for this purpose, if the balance is maintained at a level equal to or greater than the amount of prizes accrued and currently being offered;

(j) At no time shall the total accrued prize balance exceed two times the total amount of prizes available on the games identified in (a) of this subsection; and

(k) The accrued prize fund shall not be utilized for any purpose other than accumulating bingo prizes and the balance shall not be reduced except under the following circumstances:

(i) When prizes are actually awarded;

(ii) If management elects to discontinue games for which prizes were accrued. In this event, the operator shall amend all activity reports and tax returns that are affected by the action and which have been filed.

(8) Contributions made to an approved linked bingo prize shall be deposited into a separate account from the licensee's main gambling receipts account and shall be treated as prizes awarded during the session accrued.

(9) Linked bingo main and bonus prizes awarded during a session may not be treated as a prize awarded during the current session.

[Statutory Authority: RCW 9.46.070. 98-24-090 (Order 369), 230-20-102, filed 12/1/98, effective 1/1/99; 98-19-131 (Order 364), 230-20-102, filed 9/23/98, effective 1/1/99. Statutory Authority: RCW 9.46.070 (1), (11), (14). 98-04-024, 230-20-102, filed 1/28/98, effective 7/1/98. Statutory Authority: RCW 9.46.070, 9.46.0209, 9.46.0237, 9.46.0205 and 9.46.075. 96-24-008 (Order 303), 230-20-102, filed 11/21/96, effective 12/22/96. Statutory Authority: Chapter 9.46 RCW. 91-21-053 (Order 228), 230-20-102, filed 10/15/91, effective 11/15/91. Statutory Authority: RCW 9.46.070. 90-24-005 (Order 218), 230-20-102, filed 11/26/90, effective 12/27/90.]

Washington State Code Reviser's Office