WSR 06-23-032

PROPOSED RULES

GAMBLING COMMISSION


[ Filed November 6, 2006, 3:33 p.m. ]

     Original Notice.

     Preproposal statement of inquiry was filed as WSR 06-03-056.

     Title of Rule and Other Identifying Information: Amendatory section WAC 230-40-855 Acceptance of tips from patrons for house-banked activities.

     Hearing Location(s): DoubleTree Guest Suites, 16500 Southcenter Parkway, Seattle, WA 98188, (206) 575-8220, on January 12, 2007, at 9:30 a.m.

     Date of Intended Adoption: January 12, 2007.

     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 January 1, 2007.

     Assistance for Persons with Disabilities: Contact Shirley Corbett by January 1, 2007, TTY (360) 486-3637 or (360) 486-3447.

     Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: Card room tip reporting: The proposed rule change would require more detailed procedures for the accountability of tips received by card room employees in house-banked card rooms. Under the amendments:

     1. Tip ("toke") drop boxes must be locked and remain under camera coverage at all times; and

     2. Tips must be redeemed under surveillance; and

     3. Card room employees (CRE) must accurately report all tips to their employer. This puts the burden on the CRE to report accurately; and

     4. Tips received by the cage cashier must be counted by the shift/floor supervisor or security.

     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: Sharon Rees, Deputy Director, Lacey, (360) 486-3452.

     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.

October 31, 2006

Susan Arland

Rules Coordinator

OTS-9266.3


AMENDATORY SECTION(Amending Order 383, filed 4/14/00, effective 5/15/00)

WAC 230-40-855   Acceptance of tips from patrons for house-banked activities.   Licensees may allow selected employees to accept tips from patrons. If allowed, tips shall be controlled in a manner to ensure they are only received by authorized persons, properly accounted for, and maintained separate from all other gaming funds. The following restrictions and procedures apply:

     (1) No employee directly concerned with management, supervision, accounting, security, or surveillance shall solicit, accept or otherwise share any tip originating from any player or patron: Provided, That cage cashiers shall be allowed to accept tips.

     (2) Each licensee shall establish procedures necessary to ensure that the acceptance of tips by dealers is observed by the floor supervisor and surveillance. Procedures shall include an overt display of tips received, such as tapping the table with the tip prior to placing it in the tip container.

     (3) All tips must be dropped into a locked tip container which prevents the removal of chips except by unlocking. Tip containers must remain under camera coverage of the closed circuit television system at all times.

     (4) Tips to the cage cashier shall be deposited directly into the tip container by the patron. Cashier tip containers shall be located outside the cage enclosure. Tips received by a cage cashier must be counted by the shift/floor supervisor or security.

     (((4))) (5) Tips received shall be retained by employees or pooled among employees ((in such manner as determined by the licensee)) as described in the licensee's internal controls.

     (((5))) (6) Licensees shall establish and implement procedures for the ((proper)) accounting of tips received by authorized card room employees. The procedures shall be fully documented in the licensee's internal controls and shall describe in detail any methods used to allocate tips. ((Accounting and recording of tip income shall be in sufficient detail to meet federal income tax requirements.))

     (7) All tips received by licensed card room employees must be redeemed under surveillance at the cashier's cage. Card room employees must accurately report all tips to their employer as described in the licensee's internal controls.

     (8) All pooled tips must be redeemed under surveillance at the cashier's cage, count room or a gaming table.

[Statutory Authority: RCW 9.46.070. 00-09-052 (Order 383), § 230-40-855, filed 4/14/00, effective 5/15/00.]

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