WSR 09-11-122

PROPOSED RULES

GAMBLING COMMISSION


[ Filed May 20, 2009, 9:18 a.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 09-04-075.

Title of Rule and Other Identifying Information: Amending WAC 230-05-030 Fees for other businesses, 230-14-065 One flare per punch board or pull-tab series, 230-14-080 Prize limits and percentage of winners required, 230-14-265 Retention requirements for punch boards and pull-tab series and 230-16-052 Standards for flares; and new sections WAC 230-14-320 Defining a cumulative prize pool pull-tab game, 230-14-325 Defining a cumulative prize pool pull-tab board, 230-14-330 Defining a cumulative prize pool pull-tab series, 230-14-335 Operating requirements for cumulative prize pool pull-tab series, 230-16-102 Cumulative prize pool pull-tab games, and 230-16-104 Cumulative prize pool pull-tab series flare.

Hearing Location(s): Inn at Gig Harbor, 3211 56th Street N.W., Gig Harbor, WA 98335, on August 14, 2009, at 9:00 a.m.

Date of Intended Adoption: August 14, 2009.

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 August 1, 2009.

Assistance for Persons with Disabilities: Contact Gail Grate, executive assistant, by August 1, 2009, TTY (360) 486-3637 or (360) 486-3453.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The petitioner is requesting the commission authorize a new type of pull-tab game called a cumulative prize pool pull-tab game. The cumulative prize pool pull-tab game is two or more separate games packaged together, each with a unique serial number. Each separate game awards one chance to open a seal on the cumulative prize pool board (flare).

Reasons Supporting Proposal: See above.

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: Bonanza Press, licensed manufacturer, 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 because the change would not impose additional costs on businesses.

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 18, 2009

Susan Arland

Rules Coordinator

OTS-2382.1


AMENDATORY SECTION(Amending Order 621, filed 11/20/07, effective 1/1/08)

WAC 230-05-030   Fees for other businesses.   All other business license applicants must pay the following fees to us when applying for gambling licenses, miscellaneous changes, or inspection services:


1. Commercial amusement games


License Annual Gross Gambling Receipts Fee
Class A Premises only *$327/$150
Class B Up to $50,000 $460
Class C Up to $100,000 $1,184
Class D Up to $250,000 $2,644
Class E Up to $500,000 $4,640
Class F Up to $1,000,000 $7,968
Class G Over $1,000,000 $9,970
*We reduce the license fee by $177 when you apply for additional licenses at the same business premises, apply for multiple licenses at the same business premises, or a licensee is renewing an annual license.

2. Distributor


License Annual Gross Sales Fee
Class A Nonpunch board/pull-tab only $659
Class B Up to $250,000 $1,318
Class C Up to $500,000 $1,980
Class D Up to $1,000,000 $2,644
Class E Up to $2,500,000 $3,446
Class F Over $2,500,000 $4,242

3. Fund-raising event equipment distributor


License Description Fee
Class A Rents or leases equipment for fund-raising event or recreational gaming activity up to 10 times per year. $260
Class B Rents or leases equipment for fund-raising event or recreational gaming activity more than 10 times per year. $659

4. Gambling service supplier


License Fee
Annual $687
Financing, consulting, and management contract review $143

5. Linked bingo prize provider


License Fee
Annual $4,414

6. Manufacturer


License Annual Gross Sales Fee
Class A Pull-tab dispensing devices only $659
Class B Up to $250,000 $1,318
Class C Up to $500,000 $1,980
Class D Up to $1,000,000 $2,644
Class E Up to $2,500,000 $3,446
Class F Over $2,500,000 $4,242

7. Permits


Type Description Fee
Agricultural fair One location and event only $27
Agricultural fair annual permit Annual permit for specified different events and locations $189
Recreational gaming activity $59
Manufacturer's special sales permit $211
Punch board and pull-tab service business permit Initial application fee $236
Punch board and pull-tab service business permit Renewal $56

8. Changes


Application Description Fee
Name $27
Location $27
Business classification Same owners $59
Exceeding license class New class fee, less previous fee paid, plus $27
Duplicate license $27
Corporate stock/limited liability company shares/units $59
License transfers $59

9. Other fees


Type Fee
Defective punch board/pull-tab cost recovery fees Up to $100
Failing to apply for license class upgrade Up to fifty percent of the difference between our fees for the licensee's present license class and the new license class or one thousand dollars, whichever is less, plus $27
Review of gambling equipment, supplies, services, or games Cost reimbursement

10. Identification stamps


Type Fee
(a) Punch boards and pull-tabs
(i) Standard Wagers fifty cents and below $.28
Wagers over fifty cents $1.11
(ii) Progressive jackpot pull-tab series Per series $11.19
(iii) Pull-tab series with carry-over jackpots and cumulative prize pool pull-tab series Per series $1.11
(b) Pull-tab dispensing devices
(i) Mechanical and electro-mechanical $.28
(ii) Electronic Dispensing devices that require initial and ongoing evaluation of electronic components or functions, such as reading encoded data on pull-tabs, accounting for income or prizes $112.04 annually
Replacement of identification stamps $26
(c) Disposable bingo cards
(i) Single game sets of individual cards or sheets of cards $.28
(ii) Multigame card packets $1.22
(iii) Cards used to play for linked bingo prizes Fee per 250 cards $.44
(iv) Cards used to play for linked bingo prizes Fee per 5,000 cards $8.96
(d) Coin or token-activated amusement games
Annually - operated at any Class A amusement game license location $28.00
(e) Electronic bingo card daubers
Annual $11.19
(f) Electronic card facsimile table
Annual $381.50

11. Two-part payment plan participation


Annual participation $27

[Statutory Authority: RCW 9.46.070. 07-23-083 (Order 621), 230-05-030, filed 11/20/07, effective 1/1/08; 07-03-082 (Order 606), 230-05-030, filed 1/18/07, effective 1/1/08; 06-07-157 (Order 457), 230-05-030, filed 3/22/06, effective 1/1/08.]

OTS-2369.1


AMENDATORY SECTION(Amending Order 614, filed 8/10/07, effective 1/1/08)

WAC 230-14-065   ((One)) Flares ((per)) for punch board or pull-tab series.   (1) Punch board and pull-tab licensees must have in public view only one flare per punch board or pull-tab series. Flares must have ((a Washington state identification)) an I.D. stamp number and series number on their face.

(2) Cumulative prize pool pull-tab games must have a cumulative prize pool board and a unique flare for each series.

[Statutory Authority: RCW 9.46.070. 07-17-058 (Order 614), 230-14-065, filed 8/10/07, effective 1/1/08.]

OTS-2370.1


AMENDATORY SECTION(Amending Order 623, filed 1/14/08, effective 2/14/08)

WAC 230-14-080   Prize limits and percentage of winners required.   Punch board or pull-tab operators must not possess, display, put out for play, sell, or otherwise transfer punch boards or pull-tab series that:

(1) Have a total payout of less than sixty percent of the total gross gambling receipts of the board or series((; or)), except in cumulative prize pool pull-tab games. In cumulative prize pool pull-tab games, the sixty percent prize payout requirement will be calculated based on the total amount of prizes from the cumulative prize pool board and the instant winners from each series, divided by the number of series contained in the game; and

(2) Offer boards or series, except for progressive series or carry-over jackpots, with a single cash prize that is more than twenty-five hundred dollars; or

(3) Offer a single merchandise prize that is more than twenty-five hundred dollars including markup; or

(4) Have a single pull-tab or punch with multiple winning combinations that are more than the prize limit; or

(5) Offer prizes for purchasing the last pull-tab or last punch (last sale) that are more than:

(a) One hundred dollars cash; or

(b) Merchandise that costs the licensee more than one hundred dollars; or

(c) The highest prize offered, whichever is less; or

(6) Series that have a key to any winning numbers or symbols.

[Statutory Authority: RCW 9.46.070. 08-03-062 (Order 623), 230-14-080, filed 1/14/08, effective 2/14/08; 07-17-058 (Order 614), 230-14-080, filed 8/10/07, effective 1/1/08.]

OTS-2374.1


AMENDATORY SECTION(Amending Order 614, filed 8/10/07, effective 1/1/08)

WAC 230-14-265   Retention requirements for punch boards and pull-tab series.   (1) Punch board and pull-tab operators must keep all punch boards or pull-tab series removed from play, including, at least:

(a) All prize flares; and

(b) All unplayed tabs; and

(c) All winning punches or tabs.

(2) Operators must make the items in subsection (1) of this section available on the licensed premises for us, local law enforcement, or local tax agencies to inspect.

(3) If stored off premises, operators must produce the game for inspection on demand.

(4) Operators must retain punch board or pull-tab series removed from play for:

(a) Charitable or nonprofit operators - Four months following the last day of the month in which the board or series was removed from play; and

(b) Commercial operators -

(i) Two months following the last day of the month in which they removed the board or series from play; and

(ii) Three months following the day they removed the board or series from play for winning punches or pull-tabs over twenty dollars. Operators must also retain the flare for these games; and

(c) Carry-over jackpot series - For four months after the last day of the month in which the carry-over jackpot was won; and

(d) Progressive pull-tab series - For one year. After the retention period, operators must destroy unsold progressive pull-tab series tabs in such a way that no one may find and use unopened winning tabs later; and

(e) Cumulative prize pool pull-tab games - for four months, following the last day of the month, in which the last seal is opened on the cumulative prize pull-tab game board.

[Statutory Authority: RCW 9.46.070. 07-17-058 (Order 614), 230-14-265, filed 8/10/07, effective 1/1/08.]

OTS-2318.1


NEW SECTION
WAC 230-14-320   Defining a cumulative prize pool pull-tab game.   "Cumulative prize pool pull-tab game" means a pull-tab game that contains two or more series. Each series in the game has a unique serial number.

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NEW SECTION
WAC 230-14-325   Defining a cumulative prize pool pull-tab game board.   "Cumulative prize pool pull-tab game board" means the flare for a cumulative prize pool pull-tab game.

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NEW SECTION
WAC 230-14-330   Defining a cumulative prize pool pull-tab series.   "Cumulative prize pool pull-tab series" means individually packaged groups of pull-tabs that make up a cumulative prize pool pull-tab game.

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NEW SECTION
WAC 230-14-335   Operating requirements for cumulative prize pool pull-tab games.   (1) Operators must conduct cumulative prize pool pull-tab games in the same way as other pull-tab series and must follow these additional requirements:

(a) Cumulative prize pool pull-tab game boards must be displayed until the game is permanently pulled from play.

(b) Once a seal card winner from each series is revealed, the seal card winner will pick one unopened seal from the cumulative prize pool pull-tab game board.

(c) If a player buys out a series, their name will be placed on all remaining empty lines on the list displayed on the series flare.

(d) Have more than one series in play at the same time, but may not commingle pull-tab series.

(e) Must not use substitute flares.

(2) Operators must prominently post house rules of how the winner of a series will be chosen if the operator removes a series from play before the list on the series flare is completed. For example, once the seal is open and a player's name is not on that line, house rules could indicate that the name above the winning line would be declared the winner of the series.

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OTS-2375.2


AMENDATORY SECTION(Amending Order 623, filed 1/14/08, effective 2/14/08)

WAC 230-16-052   Standards for flares.   Flares must clearly display the:

(1) Manufacturer of the punch board or pull-tab series. A stamp, seal or label identifying the manufacturer may be substituted if we have been informed; and

(2) Manufacturer assigned series number; and

(3) I.D. stamp; and

(4) Cost of each punch or pull-tab; and

(5) Total number of punches or pull-tabs in the series. For any newly designed flare or any previously designed flare for pull-tab series with a ticket count over six thousand, which has not yet been packaged, the number of pull-tabs must be printed in one-half inch size lettering; and

(6) Prizes available and the winning number or symbols. For prizes over twenty dollars, the winning numbers or symbols must be printed so each can be permanently and conspicuously deleted off the flare as each prize is won.

(a) A progressive jackpot meter board, for progressive jackpot series, is a supplement to the flare; and

(b) For cumulative prize pool pull-tab games, the seal card prizes from the cumulative prize pool board are not required to be printed on the series flares.

[Statutory Authority: RCW 9.46.070. 08-03-062 (Order 623), 230-16-052, filed 1/14/08, effective 2/14/08.]

OTS-2319.1


NEW SECTION
WAC 230-16-102   Cumulative prize pool pull-tab games.   (1) Manufacturers of cumulative prize pool pull-tab games must meet all standards of pull-tab construction, including the seals on the board; and

(2) A cumulative prize pool pull-tab game board must include at a minimum:

(a) All seal card prizes; and

(b) Manufacturer's name or logo; and

(c) Each cumulative prize pool pull-tab series number; and

(d) Form number; and

(e) Cost per play; and

(f) Game name; and

(3) A cumulative prize pool pull-tab game board must have the same number of seals as the number of series in the game.

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NEW SECTION
WAC 230-16-104   Cumulative prize pool pull-tab series flare.   A cumulative prize pool pull-tab series flare must meet the requirements of WAC 230-16-052 and include at a minimum:

(1) A perforated window or seal; and

(2) A list for players to write their name on for the chance to open a seal on the cumulative prize pool pull-tab board.

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Washington State Code Reviser's Office