WSR 97-03-092

PROPOSED RULES

GAMBLING COMMISSION

[Filed January 17, 1997, 12:01 p.m.]

Original Notice.

Preproposal statement of inquiry was filed as WSR 96-11-125.

Title of Rule: WAC 230-20-115 Gift certificates--Requirements.

Purpose: This rule establishes a limit on the number of occasions in which a gift certificate may be awarded as a bingo prize and clarifies that a gift certificate prize may not exceed forty dollars in value.

Statutory Authority for Adoption: RCW 9.46.070 (1), (8), (11), (14), (16), (20).

Summary: See Purpose above.

Name of Agency Personnel Responsible for Drafting: David Shaw, Lacey, (360) 438-7654, ext. 310; Implementation: Frank Miller, Lacey, (360) 438-7654, ext. 302; and Enforcement: Ben Bishop, Lacey, (360) 438-7654, ext. 370.

Name of Proponent: Bingo Task Force, Private.

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

Explanation of Rule, its Purpose, and Anticipated Effects: See Purpose above.

Proposal Changes the Following Existing Rules: See Purpose above.

No small business economic impact statement has been prepared under chapter 19.85 RCW. Proposal is exempt under RCW 19.85.025(2), therefore, a small business economic impact statement is not required.

Section 201, chapter 403, Laws of 1995, does not apply to this rule adoption. The agency does not choose to make section 201, chapter 403, Laws of 1995, apply to this rule adoption.

Hearing Location: Howard Johnson Hotel, 3105 Pine Street, Everett, WA 98201, on March 14, 1997, at 10:00 a.m.

Assistance for Persons with Disabilities: Contact Susan Green by March 10, 1997, TDD (360) 438-7638, or (360) 438-7654, ext. 302.

Submit Written Comments to: David Shaw, P.O. Box 42400, Olympia, Wa 98504-2400, FAX (360) 438-8652, by March 10, 1997.

Date of Intended Adoption: March 14, 1997.

January 13, 1997

David D. Shaw

Rules and Policy Coordinator

AMENDATORY SECTION (Amending Order 288 [WSR 96-07-078], filed 3/19/96, effective 7/1/96)

WAC 230-20-115 Gift certificates--Requirements. Gift certificates may be sold or issued as prizes during bingo games and such shall not be deemed sales of bingo cards for purposes of this title if licensees comply with the following restrictions:

(1) If sold, gift certificates shall be paid for in full at the time they are issued;

(2) Gross receipts from the sale of certificates shall be deposited separately into the gambling account no later than five banking days after receipt. The certificate numbers relating to the funds deposited shall be a part of the deposit record;

(3) For gift certificates awarded as prizes, the value of the certificate is recorded as a bingo prize on the daily bingo records for the sessions in which the certificate was issued. The certificate will be supported by a bingo prize receipt;

(4) Gift certificates shall be purchased from a commercial printer or licensed distributor and shall be prenumbered, consecutively issued, and have a predetermined value with the following information imprinted:

(a) The name of the organization issuing the certificate;

(b) The date issued and an expiration date no later than three months from the date issued for awarded certificates; and one year for sold certificates;

(c) The dollar value of the certificate; and

(d) Any conditions or contingencies related to redemption of the certificate;

(5) ((If given as a prize, the value of the certificate shall be no more than forty dollars U.S. currency)) Gift certificates may only be awarded as prizes on up to four occasions per year, and no prize shall include more than forty dollars U.S. currency in gift certificates;

(6) Certificates shall only be redeemed for bingo cards, food, drink, merchandise, punchboards or pull tabs upon the licensed premises from which it was issued;

(7) Certificates redeemed shall be applied against bingo activity and daily bingo records shall be modified in the cash reconciliation section of the approved record format to document the number and dollar value of certificates redeemed;

(8) A reconciliation of gift certificate inventory to certificates issued shall be performed on a monthly basis and will include the following control features:

(a) Purchase invoices will be retained for gift certificates and they will include the organization name, date of purchase, and beginning and ending certificate numbers;

(b) Redeemed certificates will be maintained with the corresponding daily sales records;

(c) Certificates not redeemed within the expiration date shall be properly accounted for as a donation; and

(d) A certificate log will be maintained and will include the following:

(i) Certificate number;

(ii) Certificate value;

(iii) Date of issue;

(iv) Expiration date;

(v) Date of redemption; and

(vi) If awarded as a prize, the session and date the prize is awarded.

[Statutory Authority: RCW 9.46.070 (1), (8) - (11), (14), (16), (20). 96-07-078, 230-20-115, filed 3/19/96, effective 7/1/96.]

Reviser's note: The bracketed material preceding the section above was supplied by the code reviser's office.

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