WSR 07-11-154

PERMANENT RULES

WASHINGTON STATE LOTTERY


[ Filed May 22, 2007, 4:19 p.m. , effective June 22, 2007 ]


Effective Date of Rule: Thirty-one days after filing.

Purpose: In compliance with regulatory reform and rules review, the Washington's lottery commission has revised the language in chapters 315-02 and 315-04 WAC to reflect improved organization of the rules in the chapters. The revisions improve on grammar, organization, and use accurate descriptive words of existing lottery business practice.

Citation of Existing Rules Affected by this Order: Amending chapters 315-02 and 315-04 WAC.

Statutory Authority for Adoption: RCW 67.70.040 (1), (3).

Other Authority: RCW 67.70.040.

Adopted under notice filed as WSR 07-08-002 on March 21, 2007.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 19, Repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 19, Repealed 0.

Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 19, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.

Date Adopted: May 22, 2007.

Jana L. Jones

Director of Legal Services

OTS-9599.1


AMENDATORY SECTION(Amending Order 3, filed 10/15/82)

WAC 315-02-010   Washington state lottery commission.   The Washington state lottery commission, hereinafter called "the commission," is the commission appointed by the governor pursuant to ((chapter 7, Laws of 1982 2nd ex. sess.)) RCW 67.70.030 as the regulatory agency charged with the authority and duty to regulate lottery activities.

[Statutory Authority: 1982 2nd ex.s. c 7. 82-21-038 (Order 3), 315-02-010, filed 10/15/82.]


AMENDATORY SECTION(Amending Order 3, filed 10/15/82)

WAC 315-02-050   Director of the Washington state lottery.   The director of the Washington state lottery, hereinafter called "the director," is the director appointed by the governor pursuant to ((section 5, chapter 7, Laws of 1982 2nd ex. sess.)) RCW 67.70.050, to be responsible for the supervision and administration of the operation of the lottery in accordance with the ((provisions of chapter 7, Laws of 1982 2nd ex. sess.)) RCW 67.70.060 and with the rules of the commission. The director may delegate to his or her employees such responsibilities as the director may deem necessary to carry out the duties and responsibilities of this chapter.

[Statutory Authority: 1982 2nd ex.s. c 7. 82-21-038 (Order 3), 315-02-050, filed 10/15/82.]


AMENDATORY SECTION(Amending Order 3, filed 10/15/82)

WAC 315-02-100   Definitions.   Words and terms used in these rules shall have the same meaning as each has under chapter ((7, Laws of 1982 2nd ex. sess.)) 67.70 RCW, unless otherwise specifically provided in these rules, or the context in which they are used clearly indicates that they be given some other meaning.

[Statutory Authority: 1982 2nd ex.s. c 7. 82-21-038 (Order 3), 315-02-100, filed 10/15/82.]


AMENDATORY SECTION(Amending WSR 98-08-067, filed 3/30/98, effective 4/30/98)

WAC 315-02-220   Ticket defined.   "Ticket" means a lottery ticket or share issued by the director for sale to the general public ((or for use in authorized promotional events and activities and authorized retailer incentive programs)).

[Statutory Authority: RCW 67.70.040. 98-08-067, 315-02-220, filed 3/30/98, effective 4/30/98; 89-21-029, 315-02-220, filed 10/10/89, effective 11/10/89. Statutory Authority: 1982 2nd ex.s. c 7. 82-21-038 (Order 3), 315-02-220, filed 10/15/82.]


REPEALER

     The following sections of the Washington Administrative Code are repealed:
WAC 315-02-150 General license defined.
WAC 315-02-160 Lottery retailer defined.
WAC 315-02-200 Provisional license defined.

OTS-9600.1


AMENDATORY SECTION(Amending Order 83, filed 12/16/85)

WAC 315-04-010   Lottery retailers.   The director shall license as lottery retailers such persons who will best serve the public interest and convenience, promote the sale of tickets and meet the eligibility criteria for application and licensure. "Lottery retailer," formerly known as "licensed agent" means a person licensed by the director and shall have the same meaning as licensed agent. Said lottery retailers shall be authorized to sell such tickets as in the director's opinion will promote the best interests of the commission and produce maximum revenue, but a lottery retailer need not be authorized to sell tickets for all games operated by the director. A lottery retailer may be required to post a bond or cash in lieu of a bond in such terms and conditions as the director may require.

[Statutory Authority: RCW 67.70.040. 86-01-060 (Order 83), 315-04-010, filed 12/16/85; 85-09-004 (Order 72), 315-04-010, filed 4/5/85; 84-01-002 (Order 41), 315-04-010, filed 12/8/83. Statutory Authority: 1982 2nd ex.s. c 7. 82-21-039 (Order 4), 315-04-010, filed 10/15/82.]


AMENDATORY SECTION(Amending Order 83, filed 12/16/85)

WAC 315-04-040   General license.   The director may issue a general license, which authorizes a lottery retailer to conduct the routine sale of tickets at a fixed structure or facility, to an applicant who qualifies for licensure. The general license shall authorize the lottery retailer to conduct the routine sale of tickets at the location specified on the general license. An addendum to the general or provisional license may be obtained as provided for in WAC 315-04-220, permitting the lottery retailer to sell tickets in locations other than that specified on its license. The general license shall be valid until terminated by the lottery or the lottery retailer, provided, the lottery retailer shall provide periodic updates of license information as required by the director.

[Statutory Authority: RCW 67.70.040. 86-01-060 (Order 83), 315-04-040, filed 12/16/85; 85-09-004 (Order 72), 315-04-040, filed 4/5/85. Statutory Authority: RCW 67.70.040 and 67.70.050. 83-05-029 (Order 14), 315-04-040, filed 2/10/83. Statutory Authority: 1982 2nd ex.s. c 7. 82-21-039 (Order 4), 315-04-040, filed 10/15/82.]


AMENDATORY SECTION(Amending Order 83, filed 12/16/85)

WAC 315-04-060   Provisional license.   A provisional license temporarily authorizes a lottery retailer to conduct the sale of tickets pending processing of the general license or application renewal.

(1) The director may issue a provisional license to an applicant for a general license after receipt of a person's fully completed lottery retailer's application, the authorization of a complete personal background check, and completion of a preliminary background check. The provisional license shall expire at the time of issuance of the general license or ninety days from the date the provisional license is issued, whichever occurs first. The provisional license may be extended by the director for one additional ninety-day period of time.

(2) If the ownership of an existing lottery retailer location changes, the director may issue a provisional license to the new owner. The provisional license shall expire twenty working days from the date of issuance if the director has not received the new owner's fully completed lottery retailer's application and authorization of a complete personal background check. If the required materials have been timely received by the director and a preliminary background check has been completed, the provisional license shall expire at the time of issuance of the general license or ninety days from the date the provisional license is issued, whichever occurs first.

[Statutory Authority: RCW 67.70.040. 86-01-060 (Order 83), 315-04-060, filed 12/16/85; 85-09-004 (Order 72), 315-04-060, filed 4/5/85; 84-22-047 (Order 68), 315-04-060, filed 11/7/84. Statutory Authority: 1982 2nd ex.s. c 7. 82-21-039 (Order 4), 315-04-060, filed 10/15/82.]


AMENDATORY SECTION(Amending Order 4, filed 10/15/82)

WAC 315-04-080   Bad checks submitted as payment for fees.   The payment of a fee with a check which for any reason is not promptly paid by the drawee bank shall be grounds for immediate denial of an application for the license, or for the suspension or revocation of a license issued for which the fee is due. The director ((shall)) may add (($15.00 to each)) the bank return item charge as a fee when payment of a check originally submitted is denied by the drawee bank, or when the check is required to be resubmitted for payment for any reason.

[Statutory Authority: 1982 2nd ex.s. c 7. 82-21-039 (Order 4), 315-04-080, filed 10/15/82.]


AMENDATORY SECTION(Amending WSR 98-20-013, filed 9/25/98, effective 10/26/98)

WAC 315-04-090   License issuance eligibility.   (1) The director may issue a license to any person to act as a lottery retailer who meets the eligibility criteria established by chapter ((7, Laws of 1982 2nd ex. sess.)) 67.70 RCW, and these rules.

(2) Before issuing a license, the director shall consider:

(a) The financial responsibility and security of the person and its business or activity;

(b) The background and reputation of the ((applicant)) person in the community for honesty and integrity;

(c) The type of business owned or operated by the ((applicant)) person to ensure consonance with the dignity of the state, the general welfare of the people and the operation and integrity of the lottery;

(d) The conformance of businesses located in residential areas to local land use and zoning codes, regulations, and ordinances;

(e) The accessibility of the ((applicant's)) person's place of business or activity to the public;

(f) The sufficiency of existing licenses to serve the public convenience;

(g) The volume of expected sales;

(h) The veracity of the information supplied in the application for a lottery retailer license; and

(i) The ((applicant's)) person's indebtedness to the state of Washington, local subdivisions of the state and/or the United States government.

(3) The director may condition the issuance of any license upon the posting of a bond or cash in lieu of a bond in such terms and conditions as the director may require.

(((4) The director shall establish procedures to assure that approval of the appropriate local governmental unit is obtained prior to issuance of a license to a business located in a residential area which is a nonconforming use under local land use and zoning codes, regulations, and ordinances.))

[Statutory Authority: RCW 67.70.040. 98-20-013, 315-04-090, filed 9/25/98, effective 10/26/98; 87-10-043 (Order 101), 315-04-090, filed 5/4/87; 86-01-060 (Order 83), 315-04-090, filed 12/16/85. Statutory Authority: RCW 67.70.040 and 67.70.050. 83-05-029 (Order 14), 315-04-090, filed 2/10/83. Statutory Authority: 1982 2nd ex.s. c 7. 82-21-037 (Order 2), 315-04-090, filed 10/15/82.]


AMENDATORY SECTION(Amending WSR 98-20-013, filed 9/25/98, effective 10/26/98)

WAC 315-04-095   Retailer credit criteria.   (1) The director shall deny ((an instant scratch ticket license or an on-line)) a lottery retailer license ((endorsement)) to any applicant whose credit is found to be poor.

(2) The director may grant ((an instant scratch ticket)) a lottery retailer license ((or an on-line license endorsement)) to an applicant whose credit is rated as marginal or minimum as defined in this section. Provided, the director shall require:

(a) Applicants whose credit is rated as marginal as defined in this section to obtain a surety bond or savings certificate under terms and conditions established by the director prior to issuance of the license. Such surety bond must be secured from a company licensed to do business in the state of Washington. The bond or certificate shall be in the amount of ((seven)) three thousand five hundred dollars unless the director determines a higher amount is required.

(b) Applicants whose credit is rated as minimum as defined in this section may be required to obtain a surety bond or post cash in lieu of a bond under terms and conditions established by the director or submit ((five)) three letters of credit to the lottery prior to issuance of the ((on-line license endorsement)) a lottery retailer license. Such surety bond must be secured from a company licensed to do business in the state of Washington. The bond or cash shall be in the amount of ((seven)) three thousand five hundred dollars unless the director determines a higher amount is required, based on sales volume and financial solvency of the retailer.

(3) In the event the retailer's credit is rated as poor or marginal subsequent to the issuance of the license the director may:

(a) Revoke or suspend a retailer's license; and/or

(b) Require such a retailer to secure a surety bond from a company licensed to do business in the state of Washington or post a savings certificate under terms and conditions established by the director. The surety bond or saving certificate shall be in the amount of ((seven)) three thousand five hundred dollars unless the director determines, based on sales volume and financial solvency of the retailer, a higher amount is required.

(4) Credit rating is defined as the ability to meet financial obligations when they become due. It includes current reporting accounts payable and public financial record information including, but not limited to, court records, other public records and reports from credit bureaus or other credit reporting agencies up to three years prior to the lottery's credit check request. A significant incident shall be defined as public financial record information which includes any lien, judgment, bankruptcy, involuntary collection action or any similar incident which reflects on the individual's willingness and ability to pay creditors. A numerical rating of "one" represents excellent credit. A numerical rating of "nine" represents involuntary collection.

(a) A "poor" credit rating indicates public record showing three or more significant incidents within the past three years.

(b) A "marginal" credit rating indicates public record information showing one or more significant incidents within the past three years.

(c) A "minimum" credit rating indicates the information is insufficient for evaluation.

(d) An "acceptable" credit rating indicates that there have been no significant incidents in the public record within the past three years. Provided, at least three accounts must be evaluated in order to receive an "acceptable" rating.

(5) Credit rating checks shall be conducted as follows:

(a) Corporation business credit ratings shall be checked. Personal credit ratings of the corporate officers and owners of ten percent or more equity in the corporation may also be checked.

(b) Sole proprietors and partnership business credit ratings shall be checked. Personal credit ratings of:

(i) The sole proprietor and his or her spouse; or

(ii) All partners and their spouses shall also be checked.

(c) Findings shall be applied in accordance with subsections (1), (2) and (3) of this section.

[Statutory Authority: RCW 67.70.040. 98-20-013, 315-04-095, filed 9/25/98, effective 10/26/98.]


AMENDATORY SECTION(Amending Order 83, filed 12/16/85)

WAC 315-04-125   Change of name or location.   Every change of business name or change of location without a change of ownership of a lottery retailer must be reported to the lottery prior to the change. The lottery shall review the change considering standard licensing criteria and compliance with WAC 315-04-090. Upon the lottery's approval, the lottery shall issue a license in the new name or with the new location address.

[Statutory Authority: RCW 67.70.040. 86-01-060 (Order 83), 315-04-125, filed 12/16/85; 85-09-004 (Order 72), 315-04-125, filed 4/5/85; 84-01-002 (Order 41), 315-04-125, filed 12/8/83.]


AMENDATORY SECTION(Amending WSR 98-20-013, filed 9/25/98, effective 10/26/98)

WAC 315-04-130   Death or incapacity of licensee.   (1) In the event of the proven incapacity, death, receivership, bankruptcy or assignment for benefit of creditors of any lottery retailer, upon approval of the director, the license may be transferred to a court appointed or court confirmed guardian, executor or administrator, receiver, trustee, or assignee for the benefit of creditors, who may continue to operate the activity under the license, subject to the provisions of chapter ((7, Laws of 1982 2nd ex. sess.)) 67.70 RCW and these rules.

(2) The person to whom a license is transferred hereunder must be otherwise qualified to hold a license.

(3) The license following transfer shall be void upon that person ceasing to hold such a court appointed or court confirmed position.

(4) The director may condition the transfer of any license under this section upon the posting of a bond or cash in lieu of a bond in such terms and conditions as the director may require.

[Statutory Authority: RCW 67.70.040. 98-20-013, 315-04-130, filed 9/25/98, effective 10/26/98; 86-01-060 (Order 83), 315-04-130, filed 12/16/85; 85-09-004 (Order 72), 315-04-130, filed 4/5/85. Statutory Authority: 1982 2nd ex.s. c 7. 82-21-039 (Order 4), 315-04-130, filed 10/15/82.]


AMENDATORY SECTION(Amending WSR 90-11-040, filed 5/10/90, effective 6/10/90)

WAC 315-04-132   Change of business structure, ownership, or officers.   (1) Every change of business structure of a person to whom a license has been issued must be reported to the lottery prior to the change. A change of business structure shall mean the change from one form of business organization to another, such as from sole proprietorship to partnership or corporation.

(2) Every substantial change of ownership of a person to whom a license has been issued must be reported to the lottery prior to the change. A substantial change of ownership shall mean the transfer of ten percent or more equity, or the addition or deletion of an owner of ten percent or more of the person.

(3) Every change of officers of a person to whom a license has been issued must be reported to the lottery not later than ten days following the effective day of the change.

(4) If the substantial change of ownership involves the addition or deletion of one or more owners or officers, the lottery retailer shall submit a license application reflecting the change(s) and any other documentation the director may require.

(5) If the substantial change of ownership involves the addition of one or more owners or officers who does not have on file with the lottery current "personal history information" and "criminal history information" forms, the director may require each such owner or officer ((shall)) to submit the required forms.

[Statutory Authority: RCW 67.70.040. 90-11-040, 315-04-132, filed 5/10/90, effective 6/10/90; 87-01-058 (Order 97), 315-04-132, filed 12/16/86; 86-01-060 (Order 83), 315-04-132, filed 12/16/85; 85-09-004 (Order 72), 315-04-132, filed 4/5/85; 84-12-057 (Order 58), 315-04-132, filed 6/4/84.]


AMENDATORY SECTION(Amending Order 83, filed 12/16/85)

WAC 315-04-140   License ((not a vested right)) capacity.   (((1) The possession of a license issued by the director to any person to act as a lottery retailer in any capacity is a privilege personal to that person and is not a legal right.

(2))) The possession of a license issued by the director to any person to act as a lottery retailer in any capacity does not entitle that person to sell tickets or obtain materials for any particular game.

[Statutory Authority: RCW 67.70.040. 86-01-060 (Order 83), 315-04-140, filed 12/16/85; 85-09-004 (Order 72), 315-04-140, filed 4/5/85; 84-01-002 (Order 41), 315-04-140, filed 12/8/83. Statutory Authority: 1982 2nd ex.s. c 7. 82-21-039 (Order 4), 315-04-140, filed 10/15/82.]


AMENDATORY SECTION(Amending Order 83, filed 12/16/85)

WAC 315-04-170   Tickets convenient to public.   (1) Every lottery retailer shall make the purchase of tickets convenient and readily accessible to the public.

(2) Each lottery retailer shall make tickets available for sale during its normal business hours at the location designated on its lottery retailer license, master business license, and lottery retailer contract.

[Statutory Authority: RCW 67.70.040. 86-01-060 (Order 83), 315-04-170, filed 12/16/85. Statutory Authority: 1982 2nd ex.s. c 7. 82-21-039 (Order 4), 315-04-170, filed 10/15/82.]


AMENDATORY SECTION(Amending WSR 98-11-091, filed 5/20/98, effective 6/20/98)

WAC 315-04-180   Obligations of lottery retailers.   (1)(a) ((The method of accounting for a retailer's payment to the director for instant ticket packs received prior to the lottery's instant ticket accounting system (ITAS) being fully operational shall be governed by TITLE 315 WAC and other applicable law as it was in effect prior to March 2, 1994.

(b) The method of accounting for a retailer's payment to the director for instant ticket packs received on or after the day ITAS becomes fully operational shall be governed by TITLE 315 WAC and other applicable law as it was in effect on the day of ITAS' becoming fully operational.

(c) It is the intent of the Washington state lottery commission that those repeals and amendments filed with the state of Washington office of the code reviser to take effect no earlier than February 9, 1994, shall take effect when ITAS is fully operational.

(d) The instant ticket accounting system referred to above became fully operational on March 2, 1994.

(2)(a))) Upon acceptance of a pack of instant tickets from the director, the retailer shall be responsible for the condition and security of the pack. The retailer shall hold the pack in its own safekeeping until it is ready to begin sale of the pack. Immediately prior to beginning sale, the retailer shall place the pack in "activated" status in the lottery's instant ticket accounting system (ITAS). Placement in activated status designates that the tickets in the pack may be sold, and prizes in the pack may be paid.

(b) In the event that instant tickets accepted by the retailer are lost, stolen or in any way unaccounted for prior to their being placed in activated status on ITAS, the retailer shall, upon discovery of their disappearance, immediately notify the director of each pack or portion of a pack so unaccounted for, lost or stolen. The retailer may be required to provide the director a police report or other evidence of the pack's disappearance. The retailer may be charged twenty-five dollars for each pack or portion of a pack unaccounted for, lost or stolen.

(c) A retailer may return an unopened pack, at no charge, to the director at any time prior to the pack having been placed in activated status. Within thirty days of the official end of an instant game, a retailer shall return to the director all packs never activated in that game. ((Retailers shall be charged twenty-five dollars for each pack or portion thereof which was not returned to the director and not activated in accordance with this section.))

(d) Upon placement of a pack in activated status, the retailer shall be liable to the director for payment for the pack, in the amount calculated under WAC 315-06-035. Payment for a pack shall be due to the director no later than ((twenty)) fifty calendar days after the pack has been placed in activated status or when eighty percent of the low tiered prizes have been validated, thereby validating the pack. The director shall not reimburse the retailer for any ticket losses which occur after activation of the pack from which the tickets came, except as allowed by WAC 315-04-210(2) or 315-06-190.

(e) Each lottery retailer and lottery license applicant shall sign and comply with a lottery instant retailer agreement. Failure to sign or to comply shall result in revocation or denial of a retailer's lottery license.

(((3))) (2) Each lottery retailer shall abide by the law, these rules and all other directives or instructions issued by the director.

(((4))) (3) Each lottery retailer grants to the director an irrevocable license to enter upon the premises of the lottery retailer in which tickets may be sold or any other location under the control of the lottery retailer where the director may have good cause to believe lottery materials and/or tickets are stored or kept in order to inspect said lottery materials and/or tickets and the licensed premises.

(((5))) (4) All property given, except tickets, to a lottery retailer remains the property of the director, and, upon demand, the lottery retailer agrees to deliver forthwith the same to the director.

(((6))) (5) All books and records pertaining to the lottery retailer's lottery activities shall be made available for inspection and copying, during the normal business hours of the lottery retailer and between 8:00 a.m. and 5:00 p.m., Monday through Friday, upon demand by the director.

(((7))) (6) All books and records pertaining to the lottery retailer's lottery activities shall be subject to seizure by the director without prior notice.

(((8))) (7) No lottery retailer shall advertise or otherwise display advertising in any part of the lottery retailer's premises as a licensed location which may be considered derogatory or adverse to the operations or dignity of the lottery ((and the lottery retailer shall remove any advertising forthwith if requested by the director)).

[Statutory Authority: RCW 67.70.040. 98-11-091, 315-04-180, filed 5/20/98, effective 6/20/98; 94-11-027, 315-04-180, filed 5/6/94, effective 6/6/94; 94-03-020, 315-04-180, filed 1/7/94, effective, see (1) of this section; 86-01-060 (Order 83), 315-04-180, filed 12/16/85; 84-05-008 (Order 51), 315-04-180, filed 2/7/84; 83-19-019 (Order 36), 315-04-180, filed 9/12/83. Statutory Authority: 1982 2nd ex.s. c 7. 82-21-037 (Order 2), 315-04-180, filed 10/15/82.]


AMENDATORY SECTION(Amending WSR 00-24-102, filed 12/6/00, effective 1/6/01)

WAC 315-04-190   Compensation.   (1) Lottery retailers shall be entitled to a discount on the retail price of the instant game tickets. The commission must approve the discount paid to the retailers.

(2) Lottery retailers authorized to sell ((on-line)) draw game tickets shall be entitled to a discount on the total of gross ((on-line)) draw game ticket sales less ((on-line)) draw game ticket cancellations. The commission must approve the discount paid to the retailers.

(3) Lottery retailers may receive additional compensation through programs including but not limited to additional discounts, retailer games, retailer awards, and retailer bonuses.

(a) The commission must approve each such program prior to its implementation.

(b) The director shall establish and publish the procedures necessary to implement any such program approved by the commission prior to initiation of the program.

(4) The lottery, when selling instant or ((on-line)) draw game tickets, as a lottery retailer, may use the proceeds from the applicable discount on the retail price of the tickets sold to pay fees or other charges associated with those sales.

[Statutory Authority: RCW 67.70.040. 00-24-102, 315-04-190, filed 12/6/00, effective 1/6/01; 92-19-057, 315-04-190, filed 9/11/92, effective 10/12/92; 91-20-062, 315-04-190, filed 9/25/91, effective 10/26/91; 87-17-012 (Order 103), 315-04-190, filed 8/10/87; 87-05-005 (Order 99), 315-04-190, filed 2/6/87; 86-12-001 (Order 91), 315-04-190, filed 5/22/86; 86-01-060 (Order 83), 315-04-190, filed 12/16/85; 84-21-013 (Order 66), 315-04-190, filed 10/5/84; 84-01-004 (Order 42), 315-04-190, filed 12/8/83. Statutory Authority: RCW 67.70.040 and 67.70.050. 83-05-029 (Order 14), 315-04-190, filed 2/10/83. Statutory Authority: 1982 2nd ex.s. c 7. 82-21-039 (Order 4), 315-04-190, filed 10/15/82.]


AMENDATORY SECTION(Amending WSR 99-01-038, filed 12/9/98, effective 1/9/99)

WAC 315-04-200   Denial, suspension or revocation of a license.   The director may deny an application for or suspend or revoke any license issued pursuant to these rules for one or more of the following reasons:

(1) Failure to meet or maintain the eligibility criteria for license application and issuance established by chapter ((7, Laws of 1982 2nd ex. sess.)) 67.70 RCW, or these rules;

(2) Failure to account for lottery tickets received or the proceeds of the sale of tickets or to post a bond if required by the director or to comply with the instructions of the director concerning the licensed activity;

(3) Failure to pay to the lottery any obligation when due;

(4) Violating any of the provisions of chapter ((7, Laws of 1982 2nd ex. sess.)) 67.70 RCW, or these rules;

(5) Failure to file any return or report or to keep records required by the director or by these rules;

(6) Failure to pay any federal, state or local tax or indebtedness;

(7) Fraud, deceit, misrepresentation or conduct prejudicial to public confidence in the lottery;

(8) If public convenience is adequately served by other licensees;

(9) Failure to sell a sufficient number of tickets to meet administrative costs;

(10) If there is a history of thefts or other forms of losses of tickets or revenue ((therefrom)) there from;

(11) Failure to follow the instructions of the director for the conduct of any particular game or special event;

(12) Failure to follow security procedures of the director for the handling of tickets or for the conduct of any particular game or special event;

(13) Makes a misrepresentation of fact to the purchaser, or prospective purchaser, of a ticket, or to the general public with respect to the conduct of a particular game or special event;

(14) Failure to comply with lottery point-of-sale requirements which have been published and disseminated to lottery retailers;

(15) Failure or inability to meet financial obligations as they fall due in the normal course of business;

(16) If there is a delay in accounting or depositing in the designated depository the revenues from the ticket sales;

(((12))) (17) Has violated, failed or refused to comply with any of the provisions, requirements, conditions, limitations or duties imposed by chapter 9.46 RCW (Gambling Act), or chapter 7, Laws of 1982 2nd ex. sess., or when a violation of any provisions of chapter 7, Laws of 1982 2nd ex. sess., has occurred upon any premises occupied or operated by any such person or over which he or she has substantial control;

(((13))) (18) Knowingly causes, aids, abets or conspires with another to cause any person to violate any of the laws of this state;

(((14))) (19) Has obtained a license by fraud, misrepresentation, concealment or through inadvertence or mistake;

(((15))) (20) Has been convicted of, or forfeited bond upon a charge of, or pleaded guilty to, forgery, larceny, extortion, conspiracy to defraud, wilful failure to make required payments or reports to a governmental agency at any level, or filing false reports ((therewith)), or of any similar offense or offenses, or of bribing or otherwise unlawfully influencing a public official or employee of any state or the United States, or of any misdemeanor, involving any gambling activity or physical harm to individuals or involving moral turpitude, or of any misdemeanor within the past six months of the license application date, or of any felony within ten years of the license application date; except as specifically provided by law, the provisions of chapter 9.96A RCW apply. However, RCW 9.96A.020 does not apply to a person who is required to register as a sex offender under RCW 9A.44.130;

(((16))) (21) Makes a misrepresentation of, or fails to disclose, a material fact to the commission or director on any report, record, application form or questionnaire required to be submitted to the commission or director. Misrepresentation of, or failure to disclose criminal history shall be considered a material fact for purposes of this section;

(((17))) (22) Denies the commission or director or their authorized representatives, including authorized local law enforcement agencies, access to any place where a licensed activity is conducted, or fails to promptly produce for inspection or audit any book, record, document or item required by law or these rules;

(((18))) (23) Is subject to current prosecution or pending charges, or a conviction which is under appeal, for any of the offenses indicated under subsection (((15))) (20) of this section: Provided, That at the request of an applicant for an original license, the director may defer decision upon the application during the pendency of such prosecution or appeal;

(((19))) (24) Has pursued or is pursuing economic gain in an occupational manner or context which is in violation of the criminal or civil public policy of this state if such pursuit creates probable cause to believe that the participation of such person in lottery or gambling or related activities would be inimical to the proper operation of an authorized lottery or gambling or related activity in this state. For the purposes of this section, occupational manner or context shall be defined as the systematic planning, administration, management or execution of an activity for financial gain;

(((20))) (25) Is a career offender or a member of a career offender cartel or an associate of a career offender or career offender cartel in such a manner which creates probable cause to believe that the association is of such a nature as to be inimical to the policy of this state or to the proper operation of the authorized lottery or gambling or related activities in this state. For the purposes of this section, career offender shall be defined as any person whose behavior is pursued in an occupational manner or context for the purpose of economic gain utilizing such methods as are deemed criminal violations of the public policy of this state. A career offender cartel shall be defined as any group of persons who operate together as career offenders((;

(21) Failure to follow the instructions of the director for the conduct of any particular game or special event;

(22) Failure to follow security procedures of the director for the handling of tickets or for the conduct of any particular game or special event;

(23) Makes a misrepresentation of fact to the purchaser, or prospective purchaser, of a ticket, or to the general public with respect to the conduct of a particular game or special event;

(24) Failure to comply with lottery point-of-sale requirements which have been published and disseminated to lottery retailers; or

(25) Failure or inability to meet financial obligations as they fall due in the normal course of business)).

[Statutory Authority: RCW 67.70.040. 99-01-038, 315-04-200, filed 12/9/98, effective 1/9/99; 94-23-047, 315-04-200, filed 11/10/94, effective 12/11/94; 87-01-058 (Order 97), 315-04-200, filed 12/16/86; 85-16-031 (Order 77), 315-04-200, filed 7/30/85; 85-09-004 (Order 72), 315-04-200, filed 4/5/85. Statutory Authority: RCW 67.70.040 and 67.70.050. 83-07-022 (Order 17), 315-04-200, filed 3/11/83. Statutory Authority: 1982 2nd ex.s. c 7. 82-21-037 and 82-21-068 (Orders 2 and 2A), 315-04-200, filed 10/15/82 and 10/20/82.]


AMENDATORY SECTION(Amending WSR 96-03-039, filed 1/10/96, effective 2/10/96)

WAC 315-04-220   Limited off premises sales permit.   (1) The director may permit any lottery retailer who has been issued a general or provisional license to sell tickets in locations other than that specified on its license and to employ persons to make such sales provided that:

(a) A lottery retailer requesting a "limited off premises sales permit" shall submit an application, completed in its entirety, using a form approved by the director.

(b) An application for a "limited off premises sales permit" for ((instant)) lottery tickets must be submitted to the lottery a minimum of thirty days prior to the event to provide adequate time for processing. ((An application for a "limited off premises sales permit" for on-line games must be submitted a minimum of thirty days prior to the event to provide adequate time for processing.)) Applications received after these time limits may not be approved.

(c) The geographical area and type of location in which such sales are requested shall be individually approved by the director.

(d) Each lottery retailer making such sales shall be individually approved by the director and shall display identification in such form and manner as shall be prescribed by the director.

(e) The lottery retailer and its employees shall abide by such other instructions and restrictions as may be prescribed by the director to govern such sales.

(2) ((The lottery retailer's license shall bear an addendum with the phrase "limited off premises sales permitted," and the licensed agent shall display with its license the addendum which sets forth the terms and conditions under which such sales may be made. A photocopy of the addendum shall be posted at each location where off premises sales are permitted.

(3))) Lottery retailers must redeem all tickets winning $600 or less presented for redemption at the off premises location and at their licensed location. The location of the licensed location must be posted at the off premises location. Lottery retailers must also provide claim forms to holders of tickets winning more than $600 at both locations.

(((4))) (3) The "limited off premises sales permit" shall be valid for not more than thirty days and may be renewed twice, if approved by the director, for periods not to exceed thirty days each.

(((5))) (4) Lottery retailers granted "limited off premises sales permits" will not be required to conduct other licensed business activities at the off premises locations.

(((6))) (5) Lottery retailers granted "limited off premises sales permits" shall bear all costs associated with such sales including but not limited to construction of booths, stands, etc.; telephone line installation; telephone line charges and installation of a dedicated electric circuit, provided, that the director, in his/her sole discretion, may agree that the lottery will bear some or all of said associated costs.

[Statutory Authority: RCW 67.70.040. 96-03-039, 315-04-220, filed 1/10/96, effective 2/10/96; 86-01-060 (Order 83), 315-04-220, filed 12/16/85; 85-13-015 (Order 75), 315-04-220, filed 6/10/85. Statutory Authority: RCW 67.70.040 and 67.70.050. 83-05-029 (Order 14), 315-04-220, filed 2/10/83.]


REPEALER

     The following sections of the Washington Administrative Code are repealed:
WAC 315-04-110 Duplicate licenses.
WAC 315-04-150 License to be displayed.

Washington State Code Reviser's Office