Continuance of WSR 13-01-037.

     Preproposal statement of inquiry was filed as WSR 11-15-019.

     Title of Rule and Other Identifying Information: New sections WAC 230-11-200 Defining electronic raffle system, 230-11-205 Operating requirements for electronic raffle systems, 230-11-210 Leasing electronic raffle systems, and 230-16-152 Remote access of electronic raffle systems.

     Hearing Location(s): Wenatchee Red Lion, 1225 North Wenatchee Avenue, Wenatchee, WA 98801, (509) 663-0711, on August 8 or 9, 2013, at 9:00 a.m. or 1:00 p.m.

     Date of Intended Adoption: August 8 or 9, 2013. 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 Newer, P.O. Box 42400, Olympia, WA 98504-2400, e-mail Susan.Newer@wsgc.wa.gov, fax (360) 486-3625, by August 1, 2013.

     Assistance for Persons with Disabilities: Contact Gail Grate, executive assistant, by August 1, 2013, TTY (360) 486-3637 or (360) 486-3453.

     Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: 50/50 Central, formerly a licensed manufacturer, submitted a petition requesting to sell raffle tickets using electronic raffle systems, including selling tickets at a discount and increasing the number of discount plans from one to four. The petition was filed for discussion at the November 2011 commission meeting. At the February 2012 commission meeting, staff reported that since the time the petition was received, 50/50 Central was purchased by another company. The new company had not applied for a license; however, we had been told by the petitioner that they planned to apply for a license. At that meeting, the commissioners voted to table the petition until a manufacturer was licensed to offer the electronic raffle systems in Washington state. The new company submitted an application in June 2012; however, they withdrew the application in July. In October 2012, Tri-City Hockey Booster Club expressed interest in the electronic raffle systems and advocated moving forward with rule making. On March 1, 2013, the new company again submitted an application for a new manufacturer license; however, in April, they requested the application be placed on hold due to costs. We have information that another organization may be interested in applying for a manufacturer license so the equipment can be used in Washington state. This continuance gives 50/50 Central and other potential applicants time to determine if they will pursue licensure or not.

     Reasons Supporting Proposal: See above.

     Statutory Authority for Adoption: RCW 9.46.070, 9.46.0277.

     Statute Being Implemented: Not applicable.

     Rule is not necessitated by federal law, federal or state court decision.

     Name of Proponent: Blair Smith, representing 50/50 Central Ltd., a previously licensed manufacturer, private.

     Name of Agency Personnel Responsible for Drafting: Susan Newer, Rules Coordinator, Lacey, (360) 486-3466; Implementation: David Trujillo, Interim Director, Lacey, (360) 486-3512; 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 rule change would not impose additional costs on any licensee. Although there is a cost associated with purchasing the electronic raffle system, licensees would not be required to use the system.

     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 7, 2013

Susan Newer

Rules Coordinator

OTS-5090.1

NEW SECTION

WAC 230-11-200   Defining electronic raffle system.   "Electronic raffle system" means computer software and related gambling equipment approved by us and used by raffle licensees to sell tickets, account for sales, and print paper tickets to determine winners.

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     (1) Raffle licensees using electronic raffle systems must:

     (a) Conduct their raffles in the same way as other raffles; and

     (b) Print individual raffle tickets prior to the drawing; and

     (c) Disconnect all connections that go outside of the electronic raffle system to ensure that internet capability is not available; and

     (d) Not allow raffle players to interact with the electronic raffle system.

     (2) Approved electronic raffle systems may bundle tickets and sell them at a discount if they:

     (a) Create the discount plan before selling any raffle tickets; and

     (b) Do not change the discount plan during the raffle; and

     (c) Make single nondiscounted tickets available to all participants; and

     (d) Only use up to a maximum of four discount plans for each raffle; and

     (e) Print each discounted raffle ticket number included in a bundle and a description of the discount plan on a single ticket/receipt.

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OTS-5091.1

NEW SECTION

WAC 230-16-152   Remote access of electronic raffle systems.   Licensed manufacturers or manufacturer representatives may access the electronic raffle systems for maintenance or repair. Remote access will only be enabled for the duration of the maintenance or repair and the connection terminated immediately after.

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