WSR 10-24-014

PROPOSED RULES

GAMBLING COMMISSION


[ Filed November 18, 2010, 5:17 p.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 10-18-042.

Title of Rule and Other Identifying Information: WAC 230-06-060 Maintain copy of commission rules on business premises.

Hearing Location(s): State Investment Board, 2100 Evergreen Park Drive S.W., Olympia, WA 98504, on January 13 or 14, 2011, at 9:00 a.m. or 1:00 p.m. NOTE: Meeting dates and times are tentative. Visit our web site at www.wsgc.wa.gov and select public meeting about ten days before the meeting to confirm meeting date/location/start time.

Date of Intended Adoption: January 13 or 14, 2011. NOTE: Meeting dates and times are tentative. Visit our web site at www.wsgc.wa.gov and select public meeting about ten days before the meeting to confirm meeting date/location/start time.

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 January 1, 2011.

Assistance for Persons with Disabilities: Contact Gail Grate, executive assistant, by January 1, 2011, TTY (360) 486-3637 or (360) 486-3453.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: Staff proposes repealing the rule requiring licensees to maintain a current version of gambling rules on their licensed premises.

Reasons Supporting Proposal: History of the Rule, WAC 230-06-060: This rule has been in place since 1974.

We have been considering repealing this requirement or allowing internet access in lieu of a paper manual for the past few years.

Gambling rules and laws are available on-line by visiting our web site and selecting Rules and Laws, and on the Washington state legislative web site. With modern technology we are seeing more licensees with access to the internet.

At the April 2010 study session, we asked licensees in attendance if the [they] preferred to access rules on-line or have a paper manual. Most attendees were house-banked card rooms and stated they preferred to access rules on-line.

In addition, field agents and licensing staff surveyed approximately two hundred licensees and about half prefer to access rules on-line and half prefer a paper manual. The license class did not seem to impact whether the licensee preferred to access rules on-line or have a paper copy on premises.

We surveyed field agents and found a majority felt licensees should not be required to maintain internet access to access rules. When licensees have questions, they typically call their local field agent, rather than refer to their rules manual. We have also found that rules manuals are often still in the cellophane wrapper from when they were new and mailed to licensees.

We asked several other state regulatory agencies and found they do not distribute paper manuals to their licensees. The agencies included: Employment security, horse racing commission (HRC), liquor control board (LCB), fish and wildlife, lottery commission (lottery), department of financial institutions, and the department of health (DOH). All provide access to rules/laws on their web sites and many provide brochures for specific activities they regulate. HRC, LCB, lottery, and DOH licensees sign a form agreeing to comply with rules when they apply for a license.

Impact on Licensees:

Opt-in for Paper Manual: If this rule is repealed, we plan to publish an article in the Focus on Gambling newsletter notifying licensees that if they want a paper rules manual they need to notify us (call us or sign-up on our web site) by a certain date.

Repealing this rule would also be one less rule for licensees to comply with.

New Paper Manuals: We anticipate printing enough 2011 edition of the rules manuals to provide copies for staff, licensees that request a copy in advance (opt-in), and extra copies to distribute upon request.

Licensee Newsletters: We will continue to provide a summary update of rules under review and the WAC text of adopted rule changes in our Focus on Gambling newsletter.

The last gambling rules manuals was [were] published in January 2008. Rules manuals are published every three years because of the large number of adopted rule changes. Updated rules are inserted into rules manuals, which over time, are more voluminous than the original rules manuals. Following the three year publication timeline, new manuals are due to be published the end of this year/first of next year.

The cost to publish and mail rules manuals is approximately $30,000. About seven thousand manuals are produced at each publication. About four thousand are mailed directly to all licensees, except card room employees. The remaining are distributed during the next three years with new organizational licensees (approximately thirty-forty manuals each month). New manuals are not distributed to licensees when they renew their license.

Repealing this rule could potentially save the agency $15,000 to $20,000 when publishing the 2011 edition of the gambling rules manual, depending on how many licensees opt-in to receive a manual.

Repealing this rule is in-line with HB 2287 which passed in 2009 requiring agencies to develop and implement a paper conservation program with a goal of reducing current paper use.

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: 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 was not prepared because the proposed rule change does not impose more than minor costs, as defined in chapter 19.85 RCW, to licensees.

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.

November 22 [18], 2010

Susan Arland

Rules Coordinator

OTS-3711.2


REPEALER

     The following section of the Washington Administrative Code is repealed:
WAC 230-06-060 Maintain copy of commission rules on business premises.

Washington State Code Reviser's Office