WSR 11-13-018

PROPOSED RULES

GAMBLING COMMISSION


[ Filed June 6, 2011, 8:24 a.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 11-09-032.

Title of Rule and Other Identifying Information: WAC 230-16-015 Punch board and pull-tab sales restrictions, 230-16-035 Pull-tab construction, and 230-16-195 Additional requirements for sales invoices.

Hearing Location(s): Vancouver Heathman Lodge, 7801 Greenwood Drive, Vancouver, WA 98662, on August 11 or 12, 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: August 11 or 12, 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 August 1, 2011.

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

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: Richard Norris, Bonanza Press a licensed manufacturer, is requesting the ability to purchase jar tickets from other manufacturers. The restrictions on manufacturers not selling to each other has been in the rules for many years. How this change may impact the rest of the pull-tab industry is unclear. As of this filing, we have received input from one pull-tab distributor supporting the proposed change and input from two manufacturers and a manufacturer industry group opposing the proposal. This petition was filed for further discussion at the May 2011, commission meeting.

Reasons Supporting Proposal: The petitioner verbally stated to staff he does not have the capability to manufacture jar tickets and wants to get into that niche of the business. He would like to purchase jar tickets from other manufacturers, add a flare, package the tickets as a completed pull-tab series, and sell them to distributors. He states he can package the games at a much lower cost than to buy a complete jar ticket pull-tab series from another manufacturer.

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: Richard Norris, 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 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.

June 1, 2011

Susan Arland

Rules Coordinator

OTS-3969.2


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

WAC 230-16-015   Punch board and pull-tab sales restrictions.   (1) Manufacturers, distributors, and manufacturer and distributor representatives must sell or distribute punch boards, pull-tabs, pull-tab dispensers, or related equipment only to other distributor, distributor representative, or punch board and pull-tab licensees.

(2) Distributors and distributor representatives must buy punch boards, pull-tabs, pull-tab dispensers, or related equipment only from other licensed manufacturers, distributors, or distributor representatives.

(3) Manufacturers may sell jar tickets to other manufacturers without a distributor license.

(4) Manufacturers must not sell any punch board or pull-tab series unless the winning punches or pull-tabs are randomly distributed and mixed among all other punches or pull-tabs in that board or series.

(((4))) (5) Manufacturers, distributors, and manufacturer and distributor representatives must not make sales promotion statements, demonstrations, or implications that imply:

(a) One portion of a pull-tab series contains more winners than other portions; or

(b) Operators can sell pull-tabs in some manner that would give the operator an advantage in selling more pull-tabs before having to pay out winners.

[Statutory Authority: RCW 9.46.070. 08-03-062 (Order 623), 230-16-015, filed 1/14/08, effective 2/14/08; 07-19-069 (Order 615), 230-16-015, filed 9/17/07, effective 1/1/08.]

OTS-3970.2


AMENDATORY SECTION(Amending Order 615, filed 9/17/07, effective 1/1/08)

WAC 230-16-035   Pull-tab construction.   Manufacturers must:

(1) File their label or trademark with us before printing pull-tabs; and

(2) Construct, glue, seal, or band pull-tabs to prevent the discovery of the winning numbers, symbols, or set of symbols, or game protection before the pull-tab is dispensed or opened by use of:

(a) Markings; or

(b) Difference in size; or

(c) Paper fiber; or

(d) Color; or

(e) Printing; or

(f) Any other method; and

(3) Construct all pull-tabs so that, when offered for sale to the public, they are virtually opaque and free of security defects detectable by:

(a) High intensity lights; or

(b) Peeking; or

(c) Any other method; and

(4) Construct all pull-tabs, except banded and latex covered pull-tabs, using a two or three ply paper stock construction; and

(5) Make winning and losing sheets for each game using the same paper stock; and

(6) For all progressive pull-tab series, make winning and losing sheets for each game using the same paper stock at the same time as the series; and

(7) Conspicuously print the series number and their name, label, or trademark on the pull-tab so both are readily visible before opening the pull-tab. Manufacturers that sell jar tickets to other manufacturers must include their name and the name of the manufacturer they are selling the tickets to. For example, Manufacturer A for Manufacturer B; and

(8) Perforate or clean-cut the openings centered over the symbols or numbers to allow players to easily open pull-tabs while preventing pull-tabs from opening prematurely in normal handling. Perforate on both horizontal lines of the opening and either perforate or clean-cut the vertical or elliptical line where players grasp the tab for opening after bending the edge of a ticket down. Manufacturers may include information to show players how to open the pull-tab or remove the latex to determine the symbols or numbers; and

(9) Not repeat series numbers used on that same manufacturer's form number within a three-year period.

[Statutory Authority: RCW 9.46.070. 07-19-069 (Order 615), 230-16-035, filed 9/17/07, effective 1/1/08.]

OTS-3971.1


AMENDATORY SECTION(Amending Order 635, filed 11/4/08, effective 1/1/09)

WAC 230-16-195   Additional requirements for sales invoices.   (1) In addition to the requirements of WAC 230-16-190, manufacturers and distributors must complete sales invoices that include:

(a) ((For distributors,)) A separate line for each I.D. stamp number; and

(b) Space for the operator to either attach a records entry label or enter the I.D. stamp number and the date they placed the equipment out for play, adjacent to the written entry the distributor makes; and

(c) For each punch board or pull-tab, at least:

(i) Trade name of the game; and

(ii) Type of gambling equipment; and

(iii) Form number or other manufacturer-assigned method to specifically identify a board or series, including the size or number of chances; and

(iv) I.D. stamp number; and

(d) For each pull-tab dispenser, at least:

(i) Trade name of the dispenser; and

(ii) Type of dispenser; and

(iii) I.D. stamp number; and

(e) For each set of cards or collation of packets of disposable bingo cards, at least:

(i) Type of product, including product line; and

(ii) Description of product, including the number of cartons, "series," "on," "cut," and "up"; and

(iii) I.D. stamp number; and

(iv) Serial number or, if packets, serial number of the top page; and

(v) Color and border pattern or, if packets, color and border pattern of the top page; and

(vi) The unit or package number when a series or collation has been divided; and

(vii) For disposable bingo cards to be sold for linked bingo prize games the beginning and ending sheet numbers sold to or returned from the operator; and

(f) For merchandise prizes, at least:

(i) The date of purchase; and

(ii) The company's name and complete business address; and

(iii) A full description of each item purchased; and

(iv) The quantity of items purchased; and

(v) The cost per individual items purchased; and

(g) For sequentially prenumbered card game recordkeeping forms, at least:

(i) Type of form; and

(ii) Beginning and ending serial numbers; and

(iii) Quantity of forms; and

(h) For all other gambling equipment, at least:

(i) Trade name of device; and

(ii) Type of device; and

(iii) Serial number or other identification numbers or characteristics; and

(2) Manufacturers and distributors must record and maintain information documenting the sales of progressive jackpot pull-tabs in a separate filing system. They may use a computerized system to separately track this information and provide immediate reports.

[Statutory Authority: RCW 9.46.070 and 34.05.353. 08-22-068 (Order 635), 230-16-195, filed 11/4/08, effective 1/1/09. Statutory Authority: RCW 9.46.070. 07-19-069 (Order 615), 230-16-195, filed 9/17/07, effective 1/1/08.]

Washington State Code Reviser's Office