Preproposal statement of inquiry was filed as WSR 06-07-109.
Title of Rule and Other Identifying Information: Chapter 230-09 WAC, Fund-raising event rules.
Hearing Location(s): Inn at Gig Harbor, 3211 56th Street N.W., Gig Harbor, WA 98335, (253) 851-5402, on October 13, 2006, at 9:30 a.m.
Date of Intended Adoption: October 13, 2006.
Submit Written Comments to: Susan Arland, Rules Coordinator, P.O. Box 42400, Olympia, WA 98504, e-mail Susana@wsgc.wa.gov, fax (360) 486-3625, by October 1, 2006.
Assistance for Persons with Disabilities: Contact Shirley Corbett by October 1, 2006, TTY (360) 486-3637 or (360) 486-3447.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The gambling commission is rewriting its rules manual using plain English techniques. The rules manual has been divided into sections and is being rewritten a section at a time. Following are rules relating to all fund-raising events. These rules are written in plain talk and now numbered as chapter 230-09 WAC.
Statutory Authority for Adoption: RCW 9.46.070.
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 and Enforcement: Rick Day, Director, Lacey, (360) 486-3446.
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, and/or the proposed rule change clarifies language of rules without changing the effect.
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.
August 21, 2006
FUND-RAISING EVENT RULES
(2) Any licensees exceeding the calendar year net receipt limit must distribute excess net receipts within thirty days to another bona fide charitable or nonprofit organization that either:
(a) We license; or
(b) Meets the criteria set forth in RCW 9.46.0209.
(1) State that single wagers must not exceed ten dollars. Raffle wagers may exceed ten dollars, but must not exceed the limits set forth in RCW 9.46.0277; and
(2) Prohibit tipping.
(1) A cashier to handle the beginning bank, provide chips to the games, redeem chips and cash checks for the players; and
(2) A runner to transport money, chips, and lock boxes between gambling stations at the event; and
(3) Floor supervisors to supervise not more than six gambling stations each and who must supervise the transfer of lock boxes and chips and change trays to the count room; and
(4) Gambling station operators to control the activity at a specific gambling station.
(1) Bring all money from the FRE to the counting area; and
(2) Assign three cashiers to count the money. Two cashiers must be in the counting area at all times money is present; and
(3) Have at least two cashiers verify the beginning count and sign the record; and
(4) Restrict access to the counting area to the cashiers and to the runner(s) who transport money or chips to or from those stations; and
(5) Transfer all money and chips to the counting area at the end of the day or event for final tabulation, reconciliation, and verification; and
(6) Have at least three bankers or cashiers verify the final tabulation and reconciliation and sign the verification.
(1) The money paddle must remain in the lock box slot whenever it is not in use. The money slot of the lock box must not exceed three and one-half inches in length and one-half inch in width; and
(2) Dealers must exchange all currency presented by the players for coin or chips and the dealer must immediately place it in the lock box; and
(3) Licensees must keep the keys to all lock boxes in the counting area at all times; and
(4) Only cashiers may open the lock boxes and they must open them only in the counting area.
(1) Record a reconciliation of the ending cash on hand to net receipts; and
(2) Deposit the ending cash on hand within two banking days of the conclusion of the fund-raising event and must include a validated deposit slip as part of the records; and
(3) Not spend any of the ending cash before the deposit.
(2) Licensees may also use "members" and "bona fide members" as defined in RCW 9.46.0261 to manage or assist in the operation of an FRE.
(1) Licensees may allow people who are not members of the organization to perform incidental functions, which we will not consider "management or operation" under RCW 9.46.120. These incidental functions include:
(a) Serving food and drink to participants in the FRE; or
(b) Parking cars; or
(c) Maintaining general crowd control and order at the FRE; or
(d) Detecting people cheating, as long as that employee is a commissioned law enforcement officer with the power to make arrests in the jurisdiction in which the FRE is being held or is the employee of a commercial securities service firm licensed to provide these services by the city, town, or county in which the FRE is being conducted; or
(e) Providing janitorial functions; or
(f) Supervising these people, as long as the licensee does not pay these employees more than the local prevailing level of payment for supervising at events other than FREs.
(2) Licensees may also furnish food and nonalcoholic beverages to full and regular members who volunteer as long as the food or drink does not exceed twenty dollars per volunteer per FRE.
(3) If a licensee's employee is also a full and regular member of the organization or its auxiliary and is not scheduled for assigned employee duties at the time of the FRE, the employee may assist in the FRE.
PREMISES AND EQUIPMENT FOR FUND-RAISING EVENTS
(a) The commercial business is closed to the public at all times during which the licensee conducts the FRE; or
(b) The portion of the business premises in which the licensee conducts the FRE is separate and apart from the portion used by the commercial business. In this rule, "separate and apart" means having a permanent or temporary partition. The partition must:
(i) Have not more than two designated openings to limit pedestrian flow; and
(ii) Provide a solid, distinct separation between the portion of the premises where the licensee conducts the FRE and the portion of the premises the commercial business uses.
(2) Licensees must not conduct an FRE on or within a commercial business premises while any other organization is conducting an FRE on or within the same commercial business premises.
(2) Licensees must not hold an FRE on the premises of a commercial business if any of the licensee's officers are owners, managers, or employees of the commercial business.
(2) FRE licensees may sell their equipment to other FRE licensees or distributors.
(3) FRE licensees may loan or rent their own equipment for up to four events per year without obtaining an FRE equipment distributor license if:
(a) The FREs take place within the twelve calendar month period following the licensee's last FRE; and
(b) The licensee ensures their equipment is only used in FREs or other authorized activities, such as bingo.
(4) FRE equipment distributor licensees must sell, rent, or lease gambling equipment, premises, or services for use in an FRE on commercially reasonable terms.
(5) Licensees must make all rentals at a lump sum or hourly rate and rentals must not be based on a percentage of the income or profit from the FRE.
GAMBLING ACTIVITIES AUTHORIZED AT FUND-RAISING EVENTS
(1) Purchase the pull-tabs for specific use at FREs and record the identification and inspection services stamps on the form we provide; and
(2) Mix the pull-tabs and sell them out of a clear container. Licensees must not use a coin-operated dispensing device; and
(3) Use the manufacturer's set price for each specific series; and
(4) Have no more than three pull-tab series out for play at one time; and
(5) Sell all pull-tabs from a booth or similar confined area which prohibits public access to the pull-tabs; and
(6) Treat each pull-tab series as a separately numbered gambling station. Each series must have a separate corresponding lock box, money paddle, and chip tray for making change and payment of prizes. The attendant(s) on duty must immediately place all currency, coins, or chips used to purchase pull-tabs in the corresponding lock box. All change given back to players must be in the form of chips or coins from the chip tray; and
(7) Deface all winning pull-tabs when they are cashed in and put them in the corresponding lock box; and
(8) Pay winning pull-tabs in chips and coins only, or players may cash in winning pull-tabs for additional pull-tabs only from the same series; and
(9) Comply with all other rules and laws for pull-tabs in Title 230 WAC and chapter 9.46 RCW.
(1) Cashiers must immediately record all gross gambling receipts collected, prizes paid, and tabs sold and write the totals on the pull-tab accounting report we furnish according to the instructions attached; and
(2) After completing the count, cashiers must package or band winning pull-tabs separately and place them with the unused portion of that particular series in the original shipping container. The licensee must retain the used series for one year; and
(3) At the completion of the FRE, licensees must:
(a) Take all series still out for play to the count room and follow count room procedures; and
(b) Return all unopened pull-tab series to the licensed distributor who sold the series for a full refund. Licensees must not sell or operate the unopened series under their separate pull-tab license.
(1) Count income from bingo against the maximum net receipts authorized for FREs; and
(2) Comply with all of our rules for Class A, B, and C bingo.
(2) Licensees that do not have a separate bingo license must keep all unused disposable cards or packets as part of the FRE record. Licensees may return unused cards or packets to the distributor if there are no breaks in the consecutive card/audit numbers. Licensees must receive documentation from the distributor of the total number of cards or packets returned and the beginning and ending card/audit numbers.
(a) Solely under their fund-raising event license. Licensees must conduct all aspects of the raffle during the FRE. Income from this raffle counts toward the FRE limits; or
(b) Under a separate raffle license. Licensees must sell all tickets for the raffle and deposit all tickets in the drawing receptacle before the FRE and hold the raffle drawing at the FRE. Income from this raffle counts toward the limits of the licensee's raffle class.
(2) For raffles conducted under an FRE license, licensees must:
(a) Not sell single FRE raffle tickets for more than twenty-five dollars per ticket; and
(b) Not require a person to buy more than one ticket; and
(c) Use consecutively numbered tickets; and
(d) Ensure that each ticket has a separate and equal chance to win; and
(e) Randomly draw the winning ticket; and
(f) Operate and account for raffles as independent gambling stations at the FRE; and
(g) Maintain records to verify gross sales of tickets; and
(h) Report all FRE raffle income, prizes awarded, and other expenses and these amounts count toward the maximum net receipts authorized for FREs.
(1) Dealers must deal all cards from a dealing shoe. The deal must begin with a shoe containing at least four full decks of cards and proceed until the cards are reshuffled, withdrawn for examination, or replaced. The shoe must then be refilled with at least four decks of cards and the process repeated; and
(2) Dealers must deal cards to the players face up on the table; and
(3) Players must not pick up, shuffle, or cut the cards; and
(4) Licensees must use only standard size playing cards; and
(5) Dealers may shuffle the cards using a device, apparatus, or mechanism.
JOINT FUND-RAISING EVENTS
(1) Do not exceed their individual FRE limit for the calendar year or a single event; and
(2) Prepare a list of all persons from their organizations participating in the management or operation of the FRE. The list must be available on the premises of the FRE and contain, at a minimum, the name, address, telephone number, and a brief statement signed by the chief executive officer certifying that each member listed is a full and regular member of the organization; and
(3) Keep records which clearly disclose the amount of money received and spent in connection with the joint FRE.
(1) Be responsible for the central accounting system; and
(2) Comply with all recordkeeping and reporting rules; and
(3) Deposit the ending cash on hand; and
(4) Prepare and submit a fund-raising event report; and
(5) Disburse all funds due to any participating organizations by check within thirty days following the event.
LIMITED FUND-RAISING EVENTS
(1) Only members and guests of the organization may participate in a limited FRE. A limited FRE is not open to the public; and
(2) Only merchandise prizes, not cash, are awarded; and
(3) The organization may hire a licensed FRE equipment distributor to provide the equipment and staff to operate gambling stations; and
(4) The organization may deduct the cost of equipment rental and services when calculating the FRE net receipts limits.
(a) Require participants to purchase scrip with cash; and
(b) Exchange scrip at gambling stations for chips; and
(c) Allow only full and regular members to make cash transactions for scrip and maintain records during the FRE; and
(d) Disclose the prizes offered. The costs of prizes must not exceed fair market value. The organization may advertise the prize to the participants at the retail value; and
(e) Prevent the cost of all prizes from exceeding ten percent of the gross revenue of the event; and
(f) Comply with all other FRE rules.
(2) Licensees may allow unlimited wagering when using scrip.
(2) Employees of the FRE equipment distributor must:
(a) Wear a name tag with, at a minimum, their first name and the full name of the distributor; and
(b) Not handle cash transactions; and
(c) Not allow participants to purchase chips with cash.
(2) Licensees must ensure that participants play only for merchandise prizes.
(3) Licensees may allow participants to exchange chips or scrip for raffle tickets at the end of a limited FRE to determine who will win merchandise prizes.
(4) Licensees may only sell bingo cards to participants in exchange for scrip.