Original Notice.

     Preproposal statement of inquiry was filed as WSR 07-20-005.

     Title of Rule and Other Identifying Information: WAC 230-16-060 Assembly and packaging of pull-tab series and 230-14-260 Inventory control.

     Hearing Location(s): DoubleTree Guest Suites, 16500 Southcenter Parkway, Seattle, WA 98188, (206) 575-8220, on January 11, 2008, at 9:30 a.m.

     Date of Intended Adoption: January 11, 2008.

     Submit Written Comments to: Susan Arland, P.O. Box 42400, Olympia, WA 98504-2400, e-mail Susan2@wsgc.wa.gov, fax (360) 486-3625, by January 1, 2008.

     Assistance for Persons with Disabilities: Contact Gail Grate, Executive Assistant, by January 1, 2008, TTY (360) 486-3637 or (360) 486-3453.

     Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: Richard Newgard, representing the Washington Charitable and Civic Gaming Association, petitioned for this rule change. The petitioner is requesting that manufacturers be allowed to package pull-tab series containing more than 10,000 tickets in multiple packages, boxes, or containers. The following security requirements would be added to the rule:

     (1) Each container must be labeled to show the total shipping units, series number, and WSGC I.D. stamp number; and

     (2) Containers must be sealed and shrink wrapped; and

     (3) Cases (containing multiple containers) must be marked to identify contents; and

     (4) All containers in a series must be shipped together; and

     (5) Packaging containers must be identical within a series.

     At staff's suggestion, the petitioner also requests adding a requirement for operators to attach a packing slip to the series invoice and have the invoice maintained as part of the permanent gambling record.

     Reasons Supporting Proposal: See above.

     Statutory Authority for Adoption: RCW 9.46.070.

     Statute Being Implemented: Not applicable.

     Name of Proponent: Richard Newgard, representing the Washington Charitable and Civic Gaming Association, private.

     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: Mark Harris, Assistant Director, Lacey, (360) 486-3579.

     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 because the change would not impose additional costs on businesses. Pull-tabs already have to be packaged for shipment and the proposed rule change merely allows pull-tabs to be shipped in multiple packages rather than one package.

     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.

November 27, 2007

Susan Arland

Rules Coordinator

OTS-1217.1

AMENDATORY SECTION(Amending Order 615, filed 9/17/07, effective 1/1/08)

WAC 230-16-060   Assembly and packaging of pull-tab series.   When assembling and packaging a pull-tab series, manufacturers must:

     (1) Place each pull-tab series in one packaging container, unless the number of tickets in the series exceeds 10,000. For pull-tab series that contain more than 10,000 tickets, manufacturers may package the pull-tab series in more than one container if they:

     (a) Seal all containers with a sticker or seal and shrink wrap them; and

     (b) Identically label each container with a referencing system that identifies at least:

     (i) The series number; and

     (ii) The total boxes per series; and

     (iii) The I.D. stamp numbers; and

     (c) Mark the cases to identify the contents during shipping, including:

     (i) The series number; and

     (ii) The total cases per set; and

     (d) Package and ship each box or case together; and

     (e) Package the packing slip and flare with one box of the series; and

     (f) Ensure that no case, package, box or container shall be marked to make it distinguishable from any other case, package, box or container within the series; and

     (2) Not assemble the winning and losing pull-tabs in a way that would allow prize manipulation; and

     (3) Mix pull-tabs before placing them in their final container to ensure pull-tabs are separated from their original collated row position and dispersed among all rows in the container; and

     (4) Place a packing slip inside the container with the name of manufacturer, series number, date of packaging, and the name or identification of the person who packaged the series. Manufacturers may print this information on the flare or the outside of the container. Manufacturers must have this information readily available if we request it; and

     (5) Print on the outside of the container a message stating that operators must remove the pull-tabs from the container and thoroughly mix them before putting them out for play. Manufacturers must:

     (a) Print the information on:

     (i) A crack-and-peel sticker and place it on the outside of the packaging container; or

     (ii) A packing slip placed inside the container; or

     (b) Request our approval to exempt packages of jar tickets from this requirement.

[Statutory Authority: RCW 9.46.070. 07-19-069 (Order 615), § 230-16-060, filed 9/17/07, effective 1/1/08.]

OTS-1215.1

AMENDATORY SECTION(Amending Order 614, filed 8/10/07, effective 1/1/08)

WAC 230-14-260   Inventory control.   (1) Punch board and pull-tab operators must control and account for each punch board and pull-tab series they obtain. Operators must:

     (a) Enter the ((Washington state ())I.D. ((stamp))) stamp numbers for the series in all records; and

     (b) Attach the packing slip to the original invoice if the pull-tab series is packed in more than one container; and

     (c) Record each pull-tab dispenser they purchase.

     (2) Distributors must record every purchase of punch boards or pull-tabs on an invoice. Operators must use this record to account for each series between the time they purchase it and the time they remove it from play. Invoices must include space for the operator to attach:

     (a) The I.D. stamp numbers for each board or series; and

     (b) The date they placed the punch board or pull-tab series out for play.

     (3) When operators receive punch boards or pull-tab series, they must ensure that the manufacturer or distributor recorded all required data by comparing the Washington state identification stamp number attached to each punch board and pull-tab series to the number recorded on the purchase invoice.

     (4) Operators may use a separate computerized inventory record as long as they:

     (a) Use an I.D. stamp or print a computer generated facsimile of the stamp number on the inventory record; and

     (b) Record all other required information.

[Statutory Authority: RCW 9.46.070. 07-17-058 (Order 614), § 230-14-260, filed 8/10/07, effective 1/1/08.]

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