WSR 18-04-014 PROPOSED RULES GAMBLING COMMISSION [Filed January 26, 2018, 11:22 a.m.] Original Notice. Preproposal statement of inquiry was filed as WSR 17-24-070. Title of Rule and Other Identifying Information: WAC 230-05-102 All licensed organizations report activity quarterly beginning with the July 1, 2018, through September 30, 2018, quarter, 230-07-155 Reporting annual activities for raffles, enhanced raffles, amusement games, Class A, B or C bingo, or combination licenses, 230-07-160 Reporting annual activity for agricultural fairs, 230-09-056 Activity reports for fund-raising events, 230-10-040 Disposable bingo cards—Additional requirements, 230-10-180 Electronic bingo card daubers requirements, 230-10-457 Activity reports for linked bingo prize providers, 230-13-169 Annual activity reports for commercial amusement game licensees, 230-16-160 I.D. stamps for gambling equipment, 230-16-165 Obtaining I.D. stamps, 230-16-175 Placing I.D. stamps and records entry labels, and 230-16-180 Records retention for I.D. stamp records. Hearing Location(s): On March 15, 2018, at 1:00 p.m., at the Hampton Inn and Suites, 4301 Martin Way East, Olympia, WA 98516. Hearing will take place at the March commission meeting. The meeting dates and times are tentative. Visit our web site at www.wsgc.wa.gov about seven days before the meeting, select "March Commission meeting" to confirm the hearing date, location, and start time. Date of Intended Adoption: March 15, 2018. Submit Written Comments to: Rules Coordinator, P.O. Box 42400, Olympia, WA 985041-2400 [98504-2400], email rules.coordinator@wsgc.wa.gov, fax 360-486-3624, by March 1, 2018. Assistance for Persons with Disabilities: Contact Julie Anderson, phone 360-486-3453, TTY 360-486-3637, email Julie.anderson@wsgc.wa.gov, by March 1, 2018. Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The key rules in this fourth rule package sets the filing deadlines for quarterly activity reporting, and revises the requirements on I.D. stamps under the new license fee structure.
The key changes to activity reporting and I.D. stamps in this fourth package:
Clarifies that annual activity report filers will report their gambling activity for their license year through June 30, 2018, on July 30, 2018. All licensees will begin reporting their activity quarterly beginning with the July 1-September 30 quarter. These rules were included in rule package #2 and have been moved to package #4.
Addresses I.D. stamps: I.D. stamps will only be required for punchboards/pull-tabs; and the commission will provide I.D. stamps to punchboards/pull-tab manufacturers at no cost. Reasons Supporting Proposal: The commissioners began considering changing the fee structure in 2014. The current fee structure was created over forty years ago. It began with twenty-five fees. Today the gambling commission has approximately one hundred ninety-four different fees for commercial and nonprofit organizations and individuals. This fee schedule is typically based on a "class" system, which can be cumbersome for licensees and agency staff. The gambling commission is looking to simplify this current system and its reporting requirements to allow it to be easier to navigate and have a licensing fee schedule that is more predictable for both the agency and its licensees. It is also looking to simplify its I.D. stamp rules. Statutory Authority for Adoption: RCW 9.46.070. Statute Being Implemented: 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 and Enforcement: Tina Griffin, 4565 7th Avenue S.E., Lacey, WA 98503, 360-486-3546; and Implementation: David Trujillo, 4565 7th Avenue S.E., Lacey, WA 98503, 360-486-3512. A school district fiscal impact statement is not required under RCW 28A.305.135. 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. This rule proposal, or portions of the proposal, is exempt from requirements of the Regulatory Fairness Act because the proposal: Is exempt under RCW 19.85.025(3) as the rules only correct typographical errors, make address or name changes, or clarify language of a rule without changing its effect; and rules set or adjust fees under the authority of RCW 19.02.075 or that set or adjust fees or rates pursuant to legislative standards, including fees set or adjusted under the authority of RCW 19.80.045. January 26, 2018 Brian J. Considine Legal and Legislative Manager
NEW SECTION
WAC 230-05-102 All licensed organizations report activity quarterly beginning with the July 1, 2018, through September 30, 2018, quarter.
(1) Beginning July 1, 2018, all licensed organizations must submit activity reports quarterly, regardless of whether they previously submitted reports annually, quarterly, or semi-annually and regardless of when their permit or license year ends.
(2) This includes gambling service suppliers and any other licensed organizations that did not previously submit activity reports.
(3) Licensed organizations that report annually must submit an activity report from the beginning of their license year through June 30, 2018. These reports are due July 30, 2018.
Beginning July 1, 2018, licensed organizations that report annually will report quarterly as set forth in this section.
(4) The activity reports must be in the format we require and must:
(5) All licensed organizations must submit quarterly license fees to us for each licensed gambling activity after the first quarter of their license year that begins on or after July 1, 2018, as set forth in WAC 230-05-124.
AMENDATORY SECTION (Amending WSR 13-19-056, filed 9/16/13, effective 10/17/13)
WAC 230-07-155 Reporting annual activity for raffles, enhanced raffles, amusement games, Class A, B, or C bingo, or combination licenses.
(1) Raffle, enhanced raffle, amusement game, Class A, B, or C bingo, or combination licensees must submit an annual report of all their activities in the format we require.
(2) We must receive the completed report in our office postmarked no later than thirty days following the expiration of their license(s). Licensed organizations that report annually must submit an activity report from the beginning of their license year through June 30, 2018, by July 30, 2018. These reports are due July 30, 2018.
Beginning July 1, 2018, reports required by this section must be submitted quarterly, as set forth in WAC 230-05-102.
(3) The highest ranking officer or his/her designee must sign the report.
(4) If the licensee has someone else prepare the report, then the preparer must include his/her name and phone number on the report.
(5) Licensees that operate retail sales activities in conjunction with bingo games must report the net income from those retail sales activities.
AMENDATORY SECTION (Amending WSR 07-10-032, filed 4/24/07, effective 1/1/08)
WAC 230-07-160 Reporting annual activity for agricultural fairs.
(1) Charitable or nonprofit licensees who operate bingo, raffles, and/or amusement games only at agricultural fairs and other special properties and permittees as defined in WAC 230-03-015 who operate bingo under another's license at agricultural fairs and other special properties must submit an annual report of all their activities in the format we require.
(2) We must receive the completed report in our office postmarked no later than thirty days following the expiration of the license year. Licensed organizations that report annually must submit an activity report from the beginning of their license year through June 30, 2018, by July 30, 2018. These reports are due July 30, 2018.
Beginning July 1, 2018, reports required by this section must be submitted quarterly, as set forth in WAC 230-05-102.
(3) Permittees operating under another's license must provide the licensee with all information about the permitted operation that is needed by the licensee to complete the annual activity report not less than ten days before the time that we require the licensee to file his or her report.
(4) The highest ranking officer or his or her designee must sign the report. If the licensee has someone else prepare the report, then the preparer must include his or her name and phone number on the report.
AMENDATORY SECTION (Amending WSR 07-21-116, filed 10/22/07, effective 1/1/08)
WAC 230-09-056 Activity reports for fund-raising events.
Fund-raising event licensees must submit an activity report to the commission concerning the operation of the licensed activities of each event. Licensees must complete the report in the format we require and the report must be:
(1) Received at our administrative office or postmarked no later than thirty days after the end of the authorized operating day or days((; and)). Licensed organizations that report annually must submit an activity report from the beginning of their license year through June 30, 2018, by July 30, 2018. These reports are due July 30, 2018.
Beginning July 1, 2018, reports required by this section must be submitted quarterly, as set forth in WAC 230-05-102.
(2) Signed by the licensee's highest ranking executive officer or designee. If someone other than the licensee or an employee prepares the report, the preparer must print his or her name and phone number on the report.
AMENDATORY SECTION (Amending WSR 07-10-033, filed 4/24/07, effective 1/1/08)
WAC 230-10-040 Disposable bingo cards—Additional requirements.
(1) Disposable bingo cards must:
(a) Meet all bingo card requirements; and
(b) Be imprinted with a unique set and configuration of numbers on each card; and
(c) Not duplicate cards within a specific product line; and
(d) Include a control system in each set which:
(i) Identifies that specific set and each specific card within that set; and
(ii) Allows tracking of the transfer of cards from the point of manufacture to the operator; and
(iii) Facilitates sale by the operator to the player((; and
(e) Have an identification and inspection stamp from us sold to the licensed manufacturer or to the operator and attached to the series by the licensed manufacturer, the operator, or us)).
(2) Bingo licensees using the combination receipting method may divide sets or collations of cards into no more than ten subgroups. Licensees must follow disposable bingo card inventory control requirements for each subgroup.
AMENDATORY SECTION (Amending WSR 07-21-116, filed 10/22/07, effective 1/1/08)
WAC 230-10-180 Electronic bingo card daubers requirements.
(1) Electronic bingo card daubers must:
(a) Be manufactured by licensed manufacturers; and
(b) Be sold, leased, and serviced by licensed distributors or manufacturers. Operators may perform routine maintenance; and
(c) ((Have an I.D. stamp from us that was sold to the licensed manufacturer or the operator and attached by the licensed manufacturer, the operator, or us; and
(d))) Be unable to modify the computer program which operates the dauber units or the electronic database which stores the bingo cards; and
(((e))) (d) Store preprinted bingo cards a player purchases. The electronic images of cards stored in daubers are for player convenience only and are not bingo cards for purposes of this title; and
(((f))) (e) Use cards that meet all requirements of bingo cards and electronic bingo cards; and
(((g))) (f) Allow players to input the numbers called; and
(((h))) (g) Compare input numbers to bingo cards stored in an electronic database; and
(((i))) (h) Identify to the player those stored bingo cards that contain the input numbers.
(2) Operators providing electronic daubers must have the cards printed, placed in a master index, and available for on-site inspection at the request of law enforcement agencies, customers, or us.
AMENDATORY SECTION (Amending WSR 07-21-116, filed 10/22/07, effective 1/1/08)
WAC 230-10-457 Activity reports for linked bingo prize providers.
Linked bingo prize providers must submit activity reports to us twice a year for their sales and services. The activity reports must be in the format we require and must:
(1) Cover the periods:
(a) January 1 through June 30; and
(b) July 1 through December 31; and
(2) Be received at our administrative office or postmarked no later than thirty days following the end of the reporting period. Licensed organizations that report annually must submit an activity report from the beginning of their license year through June 30, 2018, by July 30, 2018. These reports are due July 30, 2018.
Beginning July 1, 2018, reports required by this section must be submitted quarterly, as set forth in WAC 230-05-102; and
(3) Be signed by the licensee's highest ranking executive officer or a designee. If someone other than the licensee or an employee prepares the report, the preparer must print his or her name and business telephone number on the report; and
(4) Submit a report for any period of time their license was valid, even if they had no activity or did not renew.
AMENDATORY SECTION (Amending WSR 08-20-007, filed 9/18/08, effective 1/1/09)
WAC 230-13-169 Annual activity reports for commercial amusement game licensees.
Commercial amusement game licensees must submit an annual activity report to us in the format we require and must:
(1) Cover the license year of one calendar year or less; and
(2) Be received at our administrative office or postmarked no later than thirty days following the end of the reporting period. Licensed organizations that report annually must submit an activity report from the beginning of their license year through June 30, 2018, by July 30, 2018. These reports are due July 30, 2018.
Beginning July 1, 2018, reports required by this section must be submitted quarterly, as set forth in WAC 230-05-102; and
(3) Be signed by the licensee's highest ranking executive officer or a designee. If someone other than the commercial amusement game licensee or its employee prepares the report, then it must provide the preparer's name and business telephone number; and
(4) Submit a report for any period of time their license was valid, even if they had no activity or did not renew their license; and
(5) Complete the report according to the instructions furnished with the report.
AMENDATORY SECTION (Amending WSR 07-19-069, filed 9/17/07, effective 1/1/08)
WAC 230-16-160 I.D. stamps for gambling equipment.
(((1) If gambling equipment requires our approval, manufacturers and distributors must not attach I.D. stamps to the equipment until we approve it.
(2))) Manufacturers must permanently and prominently attach our I.D. stamps to their gambling equipment. Once attached, no one may remove or tamper with the I.D. stamps. Manufacturers must attach I.D. stamps to:
(((a))) (1) Punch boards; and
(((b))) (2) Pull-tab flares((; and
(c) Pull-tab dispensers; and
(d) Disposable bingo card packing slips; and
(e) Coin or token activated amusement games operated at locations with a Class A license; and
(f) Electronic bingo card daubers; and
(g) Electronic card facsimile tables; and
(h) Other items specified by the director)).
AMENDATORY SECTION (Amending WSR 07-19-069, filed 9/17/07, effective 1/1/08)
WAC 230-16-165 ((Purchasing)) Obtaining I.D. stamps.
(1) Manufacturers must ((purchase)) obtain I.D. stamps from us and attach them to the equipment specified in this chapter.
(2) Any manufacturer may return damaged stamps to us with a detailed listing of the damaged stamps ((and must pay a service charge)). We will then replace the I.D. stamps.
(((3) Owners of gambling equipment which require annual I.D. stamps must purchase I.D. stamps from us and attach them to their gambling equipment. Annual I.D. stamps expire on December 31 each year, even if the equipment was placed out for play mid-year.
(4) Owners of pull-tab dispensers must purchase I.D. stamps to replace worn I.D. stamps on pull-tab dispensers. The owner must send us:
(a) A copy of the invoice for the purchase of the dispenser from the manufacturer, distributor, or operator; or
(b) A complete description of the pull-tab dispenser, serial number, manufacturer, and the previous I.D. stamp number, if known.))
AMENDATORY SECTION (Amending WSR 07-19-069, filed 9/17/07, effective 1/1/08)
WAC 230-16-175 Placing I.D. stamps and records entry labels.
(((1))) Manufacturers must attach I.D. stamps and records entry labels to approved gambling equipment in the following way:
(((a))) (1) Punch boards - On the reverse side of the board in an area that will not obstruct removal of punches. If sufficient space is not available on the reverse side, licensees may wrap the records entry labels around or partially attach them to the edge of the punch board as long as this does not obstruct display of prizes available or other information we require.
(((b))) (2) Pull tabs - On the face or reverse side of the flare. If placed on the face, the I.D. stamps and records entry labels must not obstruct prizes available or other information we require.
(((c) Disposable bingo cards - On the packing label on the outside of the shipping carton. Manufacturers must attach records entry labels to the packing slip. When they pack a set or collation of cards in more than one shipping container, manufacturers may attach the I.D. stamp to the first container and print the I.D. stamp number on all remaining shipping containers.
(2) Electronic pull-tab dispensers, electronic bingo card daubers, and electronic facsimile card tables - Manufacturers or owners must attach I.D. stamps on the outside of the main body, in an area that is not normally removed and replaced, and in a way that does not obstruct the view of the pull-tabs available for play, the bingo cards, or the card facsimiles.
(3) Electromechanical and mechanical pull-tab dispensers - Manufacturers or owners must attach I.D. stamps on the outside of the main body, in an area that is not normally removed and replaced, and in a way that does not obstruct the view of the pull-tabs available for play or the card facsimiles. Licensees may discard records entry labels.
(4) Amusement games - Owners must attach I.D. stamps on the outside of the main body, in an area that is not normally removed and replaced, and in a way that does not obstruct the view of the amusement game prizes.))
AMENDATORY SECTION (Amending WSR 07-19-069, filed 9/17/07, effective 1/1/08)
WAC 230-16-180 Record retention for I.D. stamp records.
Manufacturers must keep records that provide an accountability trail for all I.D. stamps ((purchased)).
(1) For I.D. stamps attached to gambling equipment and sold, manufacturers must keep the I.D. stamps records for at least three years and include, at least:
(a) The name of the purchaser;
(b) The date of the sale; and
(c) The invoice number recording the sale.
(2) For all unused or damaged I.D. stamps, manufacturers must indefinitely retain the I.D. stamps or provide records that include enough detail to allow us to account for all I.D. stamps.
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