Title of Rule: Gambling service supplier defined, WAC 230-02-205.

Purpose: Change is to exclude those who provide storage, counting services, and/or specialized recordkeeping services for gambling activities from the definition of gambling service supplier.

Statutory Authority for Adoption: RCW 9.46.070 (4), (14), and (20).

Summary: See Purpose above.

Reasons Supporting Proposal: Activities of gambling service suppliers and representatives need to be regulated.

Name of Agency Personnel Responsible for Drafting: Susan Arland, Lacey, (360) 438-7654 ext. 374; Implementation: Ben Bishop, Lacey, (360) 438-7640; and Enforcement: Sherri Winslow, Lacey, (360) 438-7640.

Name of Proponent: Staff, governmental.

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

Hearing Location: Inn at Gig Harbor, 3211 56th N.W., Gig Harbor, WA 98335, on August 14, 1998, at 9:30 a.m.

Assistance for Persons with Disabilities: Contact Susan Green by August 6, 1998, TDD (360) 438-7638, or (360) 438-7654 ext. 302.

Submit Written Comments to: Susan Arland, Mailstop 42400, Olympia, Washington 98504-2400, fax (360) 438-8652, by August 7, 1998.

Date of Intended Adoption: August 14, 1998.

July 21, 1998

Susan Arland

Public Information Officer

AMENDATORY SECTION (Amending WSR 97-24-031, filed 11/25/97, effective 1/1/98)

WAC 230-02-205  Gambling services supplier defined. A "gambling services supplier" is any person who provides gambling related services for compensation, whether direct or indirect, to any licensed operator ((or Class III tribal gaming facility,)) and who is not an employee of the operator receiving such services.

(1) Gambling related services include at least the following:

(a) Providing consulting or advisory services regarding gambling activities;

(b) Providing gambling related management services; or

(c) ((Providing storage, counting services, and/or specialized recordkeeping services for the gambling activity (except general recordkeeping services provided by a professional accountant); or)) Providing financing for purchases or leases of gambling equipment or for providing infrastructure that supports gambling operations for more than one licensee. For purposes of this section, financing by any bank, mutual savings bank, or credit union regulated by the department of financial institutions or any federally regulated commercial lending institution shall not be deemed as providing gambling related services;

(d) Providing any other service or activity where influence may be exerted over any gambling activity licensed by the commission.

(2) The term "gambling services supplier" does not include the following:

(a) Licensed manufacturers or distributors who service and repair pull tab dispensing devices, bingo equipment or any other authorized gambling equipment((.));

(((3) The term "gambling services supplier" does not include professional services, such as those provided by))

(b) Attorneys, accountants, and governmental affairs consultants((,)) whose primary business is providing professional services that are unrelated to the management or operation of gambling activities; and

(c) Individuals that only provide nonmanagement related recordkeeping services for punch board and pull-tab operators, when the combined total gross billings from such services does not exceed fifteen thousand dollars during any calendar year.

[Statutory Authority: RCW 9.46.070. 97-24-031, § 230-02-205, filed 11/25/97, effective 1/1/98.]