Date of Adoption: August 9, 2002.

     Purpose: This rules package implements legislation, EHB 2918, adopted in the 2002 legislative session. The law became effective June 13, 2002. These rule changes allow bingo licensees to operate bingo games seven days a week and allows bingo halls to share a facility and operate up to seven days a week in such facility. Furthermore, a requirement in the new law requires that bingo licensees, which operate in a facility that offers bingo more than three days a week, include language in all promotions and advertising warning patrons that gambling can result in emotional and financial harm. This requirement was also amended into our WAC rules.

     Citation of Existing Rules Affected by this Order: Amending WAC 230-12-090, 230-20-104, 230-20-170, 230-50-010, and 230-20-070.

     Statutory Authority for Adoption: RCW 9.46.070.

      Adopted under notice filed as WSR 02-13-111 on June 19, 2002.

     Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 2, Amended 5, Repealed 0.

     Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted on the Agency's Own Initiative: New 2, Amended 5, Repealed 0.

     Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 5, Repealed 0.

     Number of Sections Adopted Using Negotiated Rule Making: New 2, Amended 5, Repealed 0;      Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.
     Effective Date of Rule: Thirty-one days after filing.

August 13, 2002

Susan Arland

Rules Coordinator

OTS-5776.2

NEW SECTION
WAC 230-20-002   Shared facilities for bingo licensees -- Separate management.   Charitable and nonprofit bingo licensees shall enter into a written agreement prior to sharing a facility to conduct bingo games. Bingo licensees in shared facilities shall meet the following requirements prior to operating in a shared facility.

Notification to the director - written agreement.

     (1) A written notification to share facilities must be made to the director at least thirty days prior to operating bingo in a shared facility. The notification must include, at a minimum, the following information:

     (a) Name of all organizations sharing the facility;

     (b) Names and signatures of the highest ranking officer for each organization involved;

     (c) Copies of any written agreements between organizations; and

     (d) The method by which expenses will be shared.

Requirements.

     (2) Each bingo licensee sharing a facility shall maintain management over its own gambling activities.

     (3) Each licensee will be solely responsible for its individual records, inventory, management, equipment, and operation of the gambling activities for which they hold a license.

     (4) Each licensee must complete a separate quarterly activity report according to the gambling receipts and expenses it is responsible for under the terms of the written agreement between the licensees.

     (5) Each licensee's head office or principal location defined in RCW 9.46.0205 must be located in the same county where the bingo game will be operated.

[]

OTS-5787.2

AMENDATORY SECTION(Amending WSR 94-23-007, filed 11/3/94, effective 1/1/95)

WAC 230-12-090   Problem gambling ((informational sign must be posted)) and caution disclosure -- Advertisements and posting signs.   The legislature recognizes that some individuals in Washington state are problem or compulsive gamblers. Because the state promotes and regulates gambling through the activities of the lottery commission, horse racing commission and gambling commission, the state has the responsibility to continue to provide resources for the support of services for problem and compulsive gamblers. RCW 9.46.071 requires that the lottery commission, horse racing commission and gambling commission shall jointly develop informational signs concerning problem and compulsive gambling, and the signs shall be placed in establishments of gambling licensees, horse racing licensees and lottery retailers.

Posting information signs.

     ((All gambling commission licensees shall prominently post the problem gambling informational signs at each entrance and exit of their establishments. The)) (1) Informational signs will be provided to the licensee by the gambling commission and will contain the toll-free hotline number for the Washington state council on problem gambling. All gambling commission licensees shall prominently post the problem gambling informational signs at each entrance and exit of their establishments. Brochures to patrons containing the toll-free hotline number meet the posting requirement and will be supplied by the gambling commission((: Provided, That licensees may develop signs in compliance with this rule and the provision of RCW 9.46.071, but the signs must be reviewed and approved by the gambling commission.

     If a licensee fails to prominently post the problem gambling informational signs in their establishments, they may be subject to a suspension of two days for the first violation, seven days for the second violation and fourteen days for each violation noted thereafter)).

Advertisements.

     (2) All bingo licensees who operate in a premises where bingo is conducted on more than three occasions per week shall conspicuously include the following statement in any advertising or promotion of gambling activities conducted by the licensee:

     "CAUTION: Participation in gambling activity may result in pathological gambling behavior causing emotional and financial harm. For help, call 1-800-547-6133."

[Statutory Authority: RCW 9.46.070. 94-23-007, § 230-12-090, filed 11/3/94, effective 1/1/95.]

OTS-5789.1

AMENDATORY SECTION(Amending Order 293, filed 6/18/96, effective 7/19/96)

WAC 230-20-104   Cash register method of receipting bingo income.   A cash register receipt may be used to document receipt of bingo income as long as the following requirements and standards are met:

Standards.

     (1) Cash registers used must perform the following functions or meet the following standards:

     (a) Have sufficient keys to record separately each type of sale as required by WAC 230-08-080;

     (b) Store and compute a total for each type of sale recorded and must be capable of providing such upon request;

     (c) The memory unit of electronic cash registers must retain all transactions recorded during a session, regardless of whether or not its power source is interrupted;

     (d) Record all transactions, customer receipt numbers, and control totals on the internal tape retained in the cash register. The internal tape, showing these transactions, shall be retained with the daily records of the licensee for a period of not less than three years; and

     (e) The cash register must assign and imprint on the customer receipt and internal tape a minimum four-digit consecutive number for every sales transaction processed. This numbering system must be of a type that can only be reset by service personnel and does not return to zero at the conclusion of any period of use or power interruption: Provided, That a cash register not meeting the requirements of this subsection but having adequate alternative control features may be used if written commission approval is received before use; and

     (f) Cash registers used to record receipts for Class D and above licensees shall also imprint a minimum three-digit consecutive number on the customer receipt and internal tape to notate each time transactions are totaled or when a set of transactions are totaled and closed: Provided, That a cash register not meeting the requirements of this subsection but having adequate alternative control features may be used if written commission approval is received before use;

Customers receipts.

     (2) The customer receipt must be imprinted with the following information:

     (a) The name of the licensee operating the activity;

     (b) The date;

     (c) The amount of money paid for the opportunity to play each type of game;

     (d) The total amount of money paid; and

     (e) The consecutive customer receipt number;

Retention.

     (3) All cash register receipts for voids, overrings, returns, "no sales" and any other receipts not issued to a player must be retained with the daily bingo records;

     (4) The internal cash register tapes from all uses other than bingo income receipting shall be retained by the licensee for not less than three years and be available for commission staff review upon request.

Shared bingo facilities.

     (5) A cash register may be used by multiple bingo licensees sharing a facility when the following information is recorded on a cash register use log:

     (a) Name of the organization using the register;

     (b) Name and signature of the cashier at the end of use;

     (c) Beginning and ending transaction numbers;

     (d) Date; and

     (e) Beginning and ending time.

[Statutory Authority: RCW 9.46.070 (1), (8) - (11), (14), (20). 96-13-067 (Order 293), § 230-20-104, filed 6/18/96, effective 7/19/96.]

OTS-5790.2

AMENDATORY SECTION(Amending WSR 95-23-091, filed 11/20/95, effective 1/1/96)

WAC 230-20-170   ((Bingo operation time and use of premises limitations.)) Hours for bingo games.   Bona fide charitable or nonprofit organizations, except when operating at an authorized agricultural fair or under RCW 9.46.0321, shall abide by the following restrictions when operating bingo games:

     (((1) Use of premises limitations: Charitable or nonprofit organizations shall not:

     (a) Conduct or allow its premises to be used for conducting bingo on more than three occasions per week; or

     (b) Conduct bingo in any location used by any other organization to conduct bingo which results in bingo games being conducted on more than three occasions per week at the same location.

     (2) Time limitations:

     (a) A bingo occasion may include as many bingo sessions a licensee desires, but shall not last more than eighteen consecutive hours.

     (b) A bingo occasion shall not begin or end between the hours of 2:00 a.m. and 6:00 a.m.: Provided, That the director may allow an occasion to end up to 4:00 a.m. as long as the following conditions remain in effect:

     (i) Local law enforcement agency with jurisdiction concurs; and

     (ii) If applicable, other state agencies involved in regulating the charitable or nonprofit organization's activities, including, but not limited to, the liquor control board, do not object.)) (1) Licensees shall not allow the use of their premises for bingo games between the hours of 2:00 a.m. and 6:00 a.m.: Provided, That the director may allow closing hours to be adjusted beyond 2:00 a.m. as long as the following conditions are met:

     (a) The director shall consult with the local law enforcement agency which has jurisdiction;

     (b) The director shall consult with other state agencies involved in regulation of the business;

     (c) A licensee must observe a four-hour period of closure at the end of each business day before beginning the next period of operation;

     (d) At all times during the hours of bingo operation, a bingo manager must be on duty and in the licensed bingo area; and

     (e) The licensee complies with any other terms and conditions imposed by the director.

     (2) The director may deny the request for extended hours or revoke hours already approved if the local law enforcement agency or a state agency objects or if the director determines that the licensee has violated any provisions of chapter 9.46 RCW, any other commission rule, or any of the terms set forth in subsection (1) of this section. All objections to changing a licensee's operating hours or requests to revoke an approved operating schedule must be submitted in writing.

     (3) The commission shall afford a licensee an opportunity for a brief adjudicative proceeding prior to denying or revoking the licensee's authorization for extended bingo hours of operation. The brief adjudicative proceeding shall be heard by an administrative law judge, under the provisions set forth in WAC 230-50-010(6), and RCW 34.05.482 through 34.05.494.

[Statutory Authority: RCW 9.46.070 (1), (8), (9), (11), (13), (14), (20). 95-23-091, § 230-20-170, filed 11/20/95, effective 1/1/96. Statutory Authority: RCW 9.46.070. 95-12-051, § 230-20-170, filed 6/2/95, effective 7/3/95. Statutory Authority: RCW 9.46.070 (1), (7), (11), (14) and (17). 83-21-073 (Order 137), § 230-20-170, filed 10/18/83. Statutory Authority: RCW 9.46.070 (8), (11) and (14). 83-13-050 (Order 134), § 230-20-170, filed 6/14/83; Order 53, § 230-20-170, filed 5/25/76; Order 15, § 230-20-170, filed 4/17/74; Order 5, § 230-20-170, filed 12/19/73, 1:25 p.m.]

OTS-5792.1

AMENDATORY SECTION(Amending Order 397, filed 2/9/01, effective 4/1/01)

WAC 230-50-010   Adjudicative proceedings -- Hearings.   (1) Adjudicative proceedings shall be commenced for any and all matters wherein the commission is causing administrative charges to be brought against any applicant, licensee or permittee within the limitations to chapter 34.05 RCW as applicable.

     (2) The commission shall afford an applicant for a license an opportunity for an adjudicative proceeding prior to denying such application, and shall afford a licensee the opportunity for an adjudicative proceeding prior to suspending or revoking a license.

     (3) The commission will afford a person applying to the commission for approval of a pull-tab dispensing device under WAC 230-30-095 an opportunity for an adjudicative proceeding prior to denying approval of such device.

     (4) No hearing will be conducted with respect to any adjudicative proceeding unless an application for an adjudicative proceeding and request for hearing is timely filed by the applicant or licensee with the commission in compliance with WAC 230-50-210. The application must be made upon a form to be obtained from the commission, or facsimile thereof, and must be received within 20 days following service upon the party affected by the commission or the director of a notice of administrative charges and opportunity for an adjudicative proceeding. Said document shall contain the maximum penalty that may be assessed should an application not be filed by the party affected. An application for an adjudicative proceeding and request for hearing shall accompany all notices of administrative charges.

     (5) If an application for an adjudicative proceeding is not timely filed, then the party affected shall have waived the right to a hearing on the allegations set forth in the notice of administrative charges. The party shall be deemed to be in default pursuant to RCW 34.05.440 and the commission and director may take action against the party not to exceed the maximum penalty as stated in the notice of administrative charges and opportunity for an adjudicative proceeding, which action shall be final.

     (6) The procedures of RCW 34.05.485, brief adjudicative proceedings, shall be used for the following purposes:

     (a) All hearings in which the penalty sought by the commission is for a suspension of seven days or less;

     (b) Hearings held pursuant to WAC 230-50-015 (stay of summary suspension);

     (c) Hearings held pursuant to WAC 230-04-400(3) (failure to pay required gambling taxes);

     (d) Hearings held pursuant to WAC 230-04-190 (10)(c) (two part payment plan: Failure to make second payment);

     (e) Hearings in which the parties have stipulated to facts or the parties have stipulated to charges, and the hearing is limited to a determination of whether facts constitute violations as charged and/or determination of appropriate penalty to be imposed;

     (f) Denial of an application to operate at a higher bingo license class when the licensee has been restricted by WAC 230-20-062;

     (g) Hearings held pursuant to WAC 230-20-059 (failure for charitable or nonprofit organizations to contribute required funds to their stated purpose or maintain a positive adjusted cash flow;

     (h) Hearings held pursuant to WAC 230-08-255 (failure for charitable or nonprofit organizations to make significant progress);

     (i) Denial or revocation of extended card room hours pursuant to WAC 230-40-400;

     (j) Denial or revocation of extended bingo hours of operation pursuant to WAC 230-20-170;

     (k) Denial of request for Phase II pursuant to WAC 230-40-810;

     (((k))) (l) Repeal of an approved card game pursuant to WAC 230-40-010; or

     (((l))) (m) Where the parties have stipulated to the use of brief adjudicative proceedings.

[Statutory Authority: RCW 9.46.070. 01-05-020 (Order 397), § 230-50-010, filed 2/9/01, effective 4/1/01; 00-09-052 (Order 383), § 230-50-010, filed 4/14/00, effective 5/15/00. Statutory Authority: RCW 9.46.070 (1), (2). 97-14-013, § 230-50-010, filed 6/20/97, effective 7/21/97. Statutory Authority: RCW 9.46.070. 95-13-030, § 230-50-010, filed 6/13/95, effective 7/14/95; 92-19-107 (Order 231), § 230-50-010, filed 9/18/92, effective 10/19/92. Statutory Authority: Chapter 34.05 RCW. 89-24-003 (Order 200), § 230-50-010, filed 11/27/89, effective 12/28/89. Statutory Authority: RCW 9.46.070(13). 80-03-059 (Order 98), § 230-50-010, filed 2/25/80; Order 45, § 230-50-010, filed 12/30/75; Order 9, § 230-50-010, filed 12/19/73.]

OTS-5777.1

NEW SECTION
WAC 230-20-005   Shared management and facilities for bingo licensees -- Shared allocation of revenues and expenses.   Charitable and nonprofit bingo licensees may enter into a written agreement to share a facility and the management of bingo games. No more than three bingo licensees shall share a facility. Bingo licensees operating under shared management and facilities shall meet the following requirements prior to operating:

Notification to the director - written agreement.

     (1) A written notification to share facilities must be made to the director, at least thirty days prior to operating in a shared facility. The notification must include, at a minimum, the following information:

     (a) The name of the lead organization and lead manager;

     (b) Name of all organizations sharing the facility;

     (c) Names and signatures of the highest ranking officer for each organization involved;

     (d) Copies of any written agreements between organizations; and

     (e) The method by which the gross gambling receipts, net income, expenses and prizes will be apportioned among the licensees conducting bingo.

Management.

     (2) All managers of the bingo operation must be a bona fide member or employee of at least one of the participating organizations.

     (3) Nonprofit gambling managers shall not participate in the operation of bingo games at more than one bingo facility.

Accounting.

     (4) Records must be maintained by the lead organization, which clearly disclose the amount of money received and expended by the bingo operation. Records of expenses shall disclose for what purpose the money was spent.

     (5) Each licensee must complete a separate quarterly activity report according to the percentage of gambling receipts and expenses it is responsible for under the terms of the written agreement contract between the licensees.

     (6) Each licensee's head office or principal location defined in RCW 9.46.0205 must be located in the same county where the bingo game will be operated.

     (7) A separate bank account must be established and maintained by the lead organization which will be used to deposit all proceeds from the bingo operation and pay all of the expenses in connection with the bingo operation, including, but not limited to, all payments of prizes.

     (8) Each licensee is responsible to keep records of gambling proceeds received from the bingo operation and the use of those proceeds towards the stated purpose of the organization.

[]

OTS-5788.1

AMENDATORY SECTION(Amending WSR 97-11-020, filed 5/13/97, effective 7/1/97)

WAC 230-20-070   Regulation of managers, operators, and other employees -- Charitable or nonprofit organizations.   Charitable or nonprofit organizations shall closely supervise all persons involved in the conduct of all gambling activities operated to ensure all rules of the commission are followed. The following restrictions apply to managers, operators, and other employees:

((What restrictions apply to persons involved in the operation of amusement games and raffles?)) Amusement games and raffles.

     (1) Amusement games and raffles. No person other than a bona fide member of a qualified charitable or nonprofit organization shall take any part in the management or operation of, including the furnishing of equipment for amusement games, or work as an employee upon, amusement games or raffles conducted by that organization under a license from the commission: Provided, That for purposes of this section, performing functions that are not of a supervisory or management nature shall not be considered taking part in the operation of amusement games or raffles if:

     (a) Such functions are performed by:

     (i) Employees of the organization, who are hired on a regular or part time basis, and who are employed primarily for purposes other than the conduct of such activities; or

     (ii) Individuals who are volunteers, when they are under the supervision of a member and are not directly or indirectly compensated for such functions;

     (b) The organization keeps records that will allow the commission to determine the amount of gross gambling receipts received from such activities and to identify individuals responsible for receiving and controlling such. Records shall include at least the following:

     (i) The full names, addresses, and phone numbers of employees and members involved in the activity; and

     (ii) The number of tickets issued, sold, or returned by each employee or member involved in raffle ticket sales.

     (c) Any additional cost to administer raffles authorized under authority of this section is paid by the licensee.

((What restrictions apply to persons involved in the operation of bingo games?)) Bingo.

     (2) ((Bingo.

     (a))) No person other than a bona fide member or an employee of a charitable or nonprofit organization shall take any part in the management or operation of bingo games conducted under a license issued by the commission, and no licensee shall allow any person not one of its members or employees to do so.

     (a) No person other than a bona fide member of a charitable or nonprofit organization operating without a license under RCW 9.46.0321 shall take any part in the management or operation of bingo conducted by that organization and no such organization shall allow any person not one of its members to do so.

     (b) No person who takes any part in the management or operation of a bingo game conducted by one licensee shall take any part in the management or operation of any bingo game conducted by any other organization, or any other branch of the same organization except under the following conditions:

     (i) A person participating in the conduct of bingo games by one Class A, B, or C licensee may also participate in the conduct of bingo games by other Class A, B, or C licensees on a voluntary basis only when such person receives no remuneration for services to other licensees and when the requirements of (c) of this subsection are satisfied; ((or))

     (ii) A person participating in the operation of bingo games conducted by one licensee under any class of license may also participate in the operation of bingo games conducted by other licensees under any class of bingo license, but only when that person has no managerial or supervisory responsibilities in connection with the operation of bingo activities by any licensee and when the requirements of (c) of this subsection are satisfied. An assistant gambling manager, as defined by WAC 230-04-145(6), shall not be deemed a person having managerial or supervisory responsibilities for the purpose of this section and may participate as an hourly employee in the bingo operations of other bingo licensees; or

     (iii) A person managing or taking part in the operation of a shared bingo operation as authorized by chapter 230-005 WAC.

     (c) ((Any licensee that desires to have any person, who participates in any manner in the conduct of bingo games for another licensee, participate in the conduct of its bingo games shall notify the commission, local police officials, and any other licensees for which the person works, in writing, of the following:

     (i) The name and address of that person;

     (ii) The name and address of any licensees for which that person is working; and

     (iii) The capacity in which that person is working for each licensee prior to the time that person participates in the conduct of the licensee's bingo games.

     (d))) No licensee shall allow any person to take any part in the management, supervision or operation of a bingo game except in conformance with this rule.

((What special exceptions apply to agricultural fairs?)) Agricultural fairs.

     (3) Certain premises excepted. The limitations set forth above in subsections (1) and (2) of this section shall not apply to qualified agricultural fairs conducting amusement games or bingo.

[Statutory Authority: RCW 9.46.070 (1), (11), (14), (17) and (19). 97-11-020, § 230-20-070, filed 5/13/97, effective 7/1/97. Statutory Authority: RCW 9.46.070. 95-09-062 (Order 268), § 230-20-070, filed 4/18/95, effective 5/19/95. Statutory Authority: RCW 9.46.070, 9.46.0205, 9.46.0277, 9.46.0315, 9.46.0321 and 9.46.0331. 93-17-098 (Order 243), § 230-20-070, filed 8/17/93, effective 1/1/94. Statutory Authority: RCW 9.46.070 (8) and (17). 83-23-055 (Order 138), § 230-20-070, filed 11/15/83. Statutory Authority: RCW 9.46.070(10). 80-03-060 (Order 99), § 230-20-070, filed 2/25/80; Order 68, § 230-20-070, filed 4/25/77; Order 65, § 230-20-070, filed 1/7/77; Order 53, § 230-20-070, filed 5/25/76; Order 29, § 230-20-070, filed 1/23/75; Order 14, § 230-20-070, filed 3/27/74; Order 5, § 230-20-070, filed 12/19/73, 1:25 p.m.]

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