WSR 06-07-115



[ Filed March 17, 2006, 2:49 p.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 06-04-091.

Title of Rule and Other Identifying Information: Amendatory section WAC 230-12-050 Extension of credit, loans, or gifts prohibited -- Limited exception.

Hearing Location(s): Marcus Whitman Hotel, 6 West Rose, Walla Walla, WA 99362, (509) 525-2200, on June 16, 2006, at 1:30 p.m.

Date of Intended Adoption: June 16, 2006.

Submit Written Comments to: Susan Arland, Rules Coordinator, P.O. Box 42400, Olympia, WA 98504, e-mail, fax (360) 486-3625, by June 1, 2006.

Assistance for Persons with Disabilities: Contact Shirley Corbett by June 1, 2006, TTY (360) 486-3637 or (360) 486-3447.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: Currently, cash, checks and electronic point-of-sale bank transfers (debit cards) are authorized forms of payment to participate in gambling activities. Gift certificates and gift cards are prepaid and are treated the same as cash. This amendment would include gift cards and gift certificates as authorized forms of payment to participate in gambling activities.

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: Rick Day, Director, Lacey, (360) 486-3446; and Enforcement: Neal Nunamaker, 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 does not impose more than minor, if any, costs to businesses and no disproportionate impact to small businesses has been identified.

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.

March 18 [16], 2006

Susan Arland

Rules Coordinator


AMENDATORY SECTION(Amending Order 425, filed 10/13/03, effective 1/1/04)

WAC 230-12-050   Extension of credit, loans, or gifts prohibited -- Limited exception.   No licensee, member or employee thereof shall extend credit, make a loan, or grant a gift to any person playing in an authorized gambling activity, or which enables a person to play in an authorized gambling activity.

Gifts prohibited -- Exceptions.

(1) Gifts are items licensees give away to its customers and are not connected to gambling activities regulated by the commission. Licensees shall not offer gifts in conjunction with gambling activities, with the following exceptions:

(a) Promotions are allowed as authorized by WAC 230-12-045;

(b) Transportation services provided to and from gambling activities;

(c) Free or discounted food, drink or merchandise may be provided under the following conditions:

(i) The actual cost of any individual item may not exceed five hundred dollars;

(ii) The merchandise shall not be traded back to the licensee for cash or be used to further participate in an authorized gambling activity;

(d) For each individual gift with an actual cost over one hundred dollars, charitable and nonprofit organizations shall prepare and maintain a written record with the following information:

(i) How the recipients of the gifts were selected;

(ii) The number of gifts awarded; and

(iii) The total cost of each gift given.

Credit and loans prohibited -- Exceptions.

(2) The consideration required to participate in the gambling activity shall be collected in full, by cash, check, ((or)) electronic point-of-sale bank transfer, gift certificate, or gift card, prior to participation, with the following exceptions:

Punch boards/pull-tabs.

(a) The consideration paid for the opportunity to play a punch board or pull-tab series may be collected immediately after the play is completed only when such consideration is ten dollars or less;

Charitable/nonprofit organization's billing system for members.

(b) When a bona fide charitable or bona fide nonprofit organization conducting any of the activities authorized by chapter 9.46 RCW or commission rules has a regular billing system for all of the activities of its members with such organization, such billing system may be utilized in connection with the playing of any of the activities authorized hereunder if:

(i) The playing of such activity is limited to regular members of such organization who have become regular members prior to the commencement of such activity and whose qualifications for membership were not dependent upon, or in any way related to, the playing of such activity; and

(ii) The director has given prior written consent to the use of such billing system in connection with the conduct of activities authorized under these rules.

Raffle tickets purchased with credit cards.

(c) Charitable or nonprofit organizations utilizing credit cards, issued by a state and/or federally regulated financial institution, for payment to participate in raffles.

[Statutory Authority: RCW 9.46.070. 03-21-065 (Order 425), 230-12-050, filed 10/13/03, effective 1/1/04; 02-11-084 (Order 413), 230-12-050, filed 5/16/02, effective 7/1/02; 00-09-052 (Order 383), 230-12-050, filed 4/14/00, effective 5/15/00; 00-07-140 (Order 381), 230-12-050, filed 3/22/00, effective 7/1/00. Statutory Authority: RCW 9.46.070, 9.46.0209, 9.46.0237, 9.46.0205 and 9.46.075. 96-24-008 (Order 303), 230-12-050, filed 11/21/96, effective 12/22/96. Statutory Authority: RCW 9.46.070. 94-13-099 (Order 253), 230-12-050, filed 6/15/94, effective 7/16/94. Statutory Authority: RCW 9.46.070 (11), (14) and 9.46.0218 [9.46.0281]. 89-05-024 (Order 186), 230-12-050, filed 2/13/89; Order 51, 230-12-050, filed 4/30/76; Order 15, 230-12-050, filed 4/17/74; Order 5, 230-12-050, filed 12/19/73.]

Washington State Code Reviser's Office