WSR 07-18-084

PROPOSED RULES

GAMBLING COMMISSION


[ Filed September 5, 2007, 8:23 a.m. ]

     Original Notice.

     Preproposal statement of inquiry was filed as WSR 07-11-009.

     Title of Rule and Other Identifying Information: New chapter 230-21 WAC, Public disclosure.

     Hearing Location(s): Red Lion Hotel at the Park, 303 West North River Drive, Spokane, WA 99201, (509) 326-8000, on October 12, 2007, at 9:30 a.m.

     Date of Intended Adoption: October 12, 2007.

     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 October 1, 2007.

     Assistance for Persons with Disabilities: Contact Gail Grate, Executive Assistant, by October 1, 2007, TTY (360) 486-3637 or (360) 486-3453.

     Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The gambling commission has rewritten its rules manual using plain English techniques. We anticipate the project will be completed by January 1, 2008. The rules manual was broken into sections and rewritten a section at a time. Most chapters are codified. This clean-up package includes rules and rule interpretations that were inadvertently missed during the rewrite, or to include amendments that were made to our current rules after the rules simplification project rule was adopted or to make housekeeping changes so the rules are easier to read. There may be some sustentative changes made during the rewrite.


Overview of Clean-Up Package Rule Changes

SUBSTANTIVE RULE CHANGES:

Post-1/1/2008 WAC 230-01-011 Deadlines for submitting items to be included in the commission meeting agenda.

Pre-1/1/2008 WAC 230-50-815 Deadlines for submitting items to be included in the commission meeting agenda -- Exceptions.

     We moved this rule from the hearing rules in chapter 230-50 WAC to the about the commission rules in chapter 230-01 WAC.


Post-1/1/2008 WAC 230-06-002 "We," "our," and "us" mean the commission and staff.

Pre-1/1/2008 WAC 230-03-001 "We," "our," and "us" mean the commission and staff.

     We moved this rule from the licensing rules in chapter 230-03 WAC to the rules for all licensees in chapter 230-06 WAC.


WAC 230-03-040 Signing the application.

     In March 2006, we discovered that we do not have the statutory authority to license incorporated cities and towns to operate gambling activities. The commission only licenses a handful of cities and towns. These cities and towns do not qualify as charitable or nonprofit entities.

     At that time, AAG Jerry Ackerman advised us to give the cities and town notice that we would be discontinuing licensing them when the new RSP rules went into effect January 1, 2008. As a result, we are amending WAC 230-03-040 to remove the authority of mayors, or their designees, to sign an application.


Post-1/1/2008 WAC 230-03-050 Additional information required from applicants for licensing.

     We revised this rule to include clearer instructions about what documents commercial applicants have to submit and what documents charitable and nonprofit applicants have to submit.


Post-1/1/2008 WAC 230-03-085 Denying, suspending, or revoking a license or permit.

     We added language back into the rule which had been omitted in the first version of the rule. This requirement has been a long-standing reason for denial, suspension, or revocation.


Post-1/1/2008 WAC 230-03-175 Requirements for commercial stimulant businesses.

     We reworded this rule because we discovered in subsection (1)(a)(ii)(A) that "and" should have been "or." On looking back, we also decided that this rule wasn't as "plain talk"ed as rules in other chapters, so we reworked the language.


Post-1/1/2008 WAC 230-03-180 Additional information required for a house-banked card room application.

     We added the preoperational review and evaluation (PORE) back in to chapter 230-03 WAC, Licensing. It was originally removed from chapter 230-03 WAC; however, the subject matter experts from the card game rules small group and the administration review team felt that we needed to state more clearly what the PORE entailed as part of the prelicensing/application rules.


Post-1/1/2008 WAC 230-03-210 Applying for a gambling service supplier license.

     We changed the language in this rule to definitively answer questions that continue to arise about when a person must be licensed as a gambling service supplier. Many applicants and licensees fail to understand our requirements that once they have financed two gambling related businesses as a gambling service supplier, they must continue to be licensed as a gambling service supplier to offer financing to any other gambling related businesses in the future.


Post-1/1/2008 WAC 230-05-001 Prorating or refunding of fees.

     When staff reviewed this rule, we found that it was not as clear as it could be. The amendment makes the distinctions about prorating or refunding fees as clear as possible.

     This prorating or refunding of fees is only available to businesses, not to individuals.


Post-1/1/2008 WAC 230-06-004 Defining "consecutively numbered," "consecutive," and "consecutively."

     We added this definition to the chapter for all licensees because we use the words "consecutively numbered," "consecutive," and "consecutively" throughout the rules and we want licensees and operators to know exactly what these methods of counting or setting out numbers mean. At places in the rules, we've used the word "sequentially" and we believe that "consecutively" works better in those places.


Post-1/1/2008 WAC 230-06-010 Age restrictions for players.

     After review, we returned this restriction on raffle sales and make certain that raffle tickets are only sold by young people who are part of a charitable or nonprofit agency which has proper adult supervision of the raffle and which has development of young people as part of its purpose.


Post-1/1/2008 WAC 230-06-031 Using wheels in promotional contests of chance, fund-raising events, or gambling activities.

     The current version of this requirement is actually a rule interpretation on WAC 230-12-045 Gambling promotions. We overlooked the rule interpretation during the rewriting process and we added the information it contains into chapter 230-06 WAC, Rules for all licensees, because it impacts several gambling activities. Incorporating rule interpretations was one of the goals of the rules simplification project.


WAC 230-06-035 Offer no c Credit, loans, or gifts prohibited.

     We overlooked a rule change which came as a response to a petition by Monty Harmon. The change the commission made was "staff's alternative" to the petition to amend WAC 230-12-050 Extension of credit, loans, or gifts prohibited -- Limited exception. That alternative included "gift certificates and gift cards" as permitted forms of payment which licensees may accept. The change was not included in the RSP chapter which we filed the next month.


Post-1/1/2008 WAC 230-06-050 Review of electronic or mechanical gambling equipment.

     We discovered as we were rewriting the inspection rules in the manufacturer, distributor and gambling service supplier rules that some information had been left out of WAC 230-06-050. We amended the rule to include this information, in particular, what persons submitting equipment do if they do not agree with the director's decision concerning the approval of their equipment.


Post-1/1/2008 WAC 230-06-051 Computation of time.

     We moved this rule from the hearing rules chapter of the WAC into the rules for all licensees chapter because the rule sets up the way time is computed for all actions of the agency regarding licensees, not just those who have administrative charges or hearings.


Post-1/1/2008 WAC 230-06-065 Display of licenses.

     We made two changes to this rule:

     1. In subsection (1), change the language to include the ability for licensees to display a copy of their license instead of the original; and

     2. In subsection (3), because card room employee licenses are issued for the location where the person works, require that the original to that license be on premises as well.


Post-1/1/2008 WAC 230-06-071 Washington state identification and inspection stamps to be called "I.D. stamps."

     We added a new rule to chapter 230-06 WAC, Rules for all licensees, that renames Washington state identification and inspection stamps as "I.D. stamps."

     We refer throughout the rules manual to the purchase, use, replacement, and safeguarding of these I.D. stamps by manufacturers, distributors, linked bingo prize providers, and operators.

     Therefore, we will call the stamps by the name most licensees and agents refer to them by: "I.D. stamps." It's simple and consistent, two of the goals of the rules simplification project.


Post-1/1/2008 WAC 230-06-074 Assistance required for commission inspections.

     We decided to add these three restrictions back into the rules because some portions were not covered by the RCW.


WAC 230-06-110 Buying, selling, or transferring gambling equipment.

     We recommend adding the blanket statement in subsection (1) that "All licensees and persons authorized to possess gambling equipment must closely control the gambling equipment in their possession." This removes the need for a rule in each chapter about a gambling activity that requires the licensee to control equipment and eliminates redundancy. We're also removing "commission identification and inspection stamps" and replacing it with "I.D. stamps."


Post-1/1/2008 WAC 230-06-120 Selling or transferring gambling equipment when no longer licensed.

     We changed the title of this rule to make more explicit that it applies when a business is no longer licensed. We added the word "only" to subsection (1) to make it clear that former licensees may only sell or transfer their gambling equipment to manufacturers and distributors. We're also removing "commission identification and inspection stamps" and replacing it with "I.D. stamps."


Post-1/1/2008 WAC 230-07-005 "Licensees," "licensee," "organizations," and "organization" defined.

     We changed the definition of licensees, licensee, organizations, and organization in this chapter, not just this particular section, to make it clearer to charitable and nonprofit organizations what standards they must meet if they are unlicensed and what standards they must meet if they are licensed.


Post-1/1/2008 WAC 230-07-106 Insuring prizes.

     The current version of this rule is actually a rule interpretation on WAC 230-12-223 Prohibited practices -- Leases and compensation and RCW 9.46.120 Restrictions on management or operation personnel -- Restriction on leased premises. This rule interpretation was overlooked during the rewriting process and we propose adding it in to the charitable and nonprofit organization rules, chapter 230-07 WAC, where it can explain the restrictions on purchasing insurance for various prizes organizations award in their gambling activities.


Post-1/1/2008 WAC 230-09-056 Activity reports for fund-raising event.

     We added a rule about activity reporting because it was inadvertently dropped from the draft during the RSP process.


WAC 230-09-120 Disposable bingo cards at fund-raising events.

     This is a "housekeeping change" which involves the change of the word "audit" changed to "control."


Post-1/1/2008 WAC 230-10-001 Defining "licensees," "licensee," "organizations," "organization," "operators" and "operator."

     We changed the word "section" to "chapter" to make the reference point for the definition more correct and precise.


New Rule WAC 230-10-180 Electronic bingo card dauber requirements.

     This rule was not in the clean-up package at the August meeting. Instead, it was on the agenda as an "RSP companion rule" to Ric Newgard's petition for rule change concerning bingo daubers and the printing of cards. The commissioners took final action on the petition and the companion rule at the August commission meeting. Due to code reviser's office requirements, this rule is being moved to the clean-up package. This rule incorporates the changes in Mr. Newgard's petition.


Post-1/1/2008 WAC 230-10-220 Player selection bingo game card requirements.

     We removed the requirements for instant winners from the player selection bingo game card rule. Fortunately, a stakeholder noticed this during the discussion period of chapter 230-10 WAC, Bingo rules and we pulled the rule from the chapter before it was passed, intending to correct the error. We have since added instant winner requirements back into player selection bingo game requirements.


Post-1/1/2008 WAC 230-10-235 Hidden face bingo game requirements.

     A licensee noticed during the discussion period of chapter 230-10 WAC, Bingo rules and we pulled the rule from the chapter before it was passed, intending to correct the error. We have since added instant winner provisions back into hidden face bingo game requirements.

     We also added the word "bingo" to subsection (2) to make it clear which licensees we were addressing in the rule.


WAC 230-10-310 Selling gift certificates.

     The change reflected in this rule is a "housekeeping change" which involves the change of a single word "sequential" to "consecutive."


WAC 230-10-330 Activity reports required for agricultural fairs, Class A, B and C bingo, agricultural fairs, and other organizations.

     We changed the title of WAC 230-10-330 to make it clearer.


Post-1/1/2008 WAC 230-10-331 Activity reports for Class D and above bingo licensees.

     We overlooked the rule on activity reports for Class D and higher bingo licensees when we were rewriting the bingo chapter, so we added WAC 230-10-331 into the chapter.


Post-1/1/2008 WAC 230-10-350 Recording bingo winners.

     We amended this rule to make the changes approved by the commission at the July 2007 commission meeting.


Post-1/1/2008 WAC 230-10-445 Linked bingo games;

Post-1/1/2008 WAC 230-10-446 Operating linked bingo prize games;

Post-1/1/2008 WAC 230-10-447 Prizes in linked bingo prize games;

Post-1/1/2008 WAC 230-10-451 Recordkeeping for linked bingo prize games;

Post-1/1/2008 WAC 230-10-456 Additional accounting records for linked bingo prize providers; and

Post-1/1/2008 WAC 230-10-457 Activity reports by linked bingo prize providers.

     As we were completing the manufacturer, distributor, and gambling service supplier rules, we discovered that several linked bingo prize provider rules were contained in the chapter. We moved those rules to the bingo rules, chapter 230-10 WAC, where we think they would be more easily located by linked bingo prize provider licensees.


Post-1/1/2008 WAC 230-11-001 Defining "licensees," "licensee," "organizations," and "organization."

     We changed this rule to include another citation to RCW 9.46.0209, concerning who may conduct raffles under the statute.


WAC 230-13-030 Group 4 -- Coin or token toss amusement game standards.

     This rule was not in the clean-up package at the August meeting. Instead, it was on the agenda as an "RSP companion rule." The commissioners took final action on this rule at the August commission meeting. Due to code reviser's office requirements, this rule is being moved to the clean-up package. We propose adding the definition of "four square inches" to the RSP version of this rule.


Post-1/1/2008 WAC 230-13-169 Activity reports for commercial amusement game licensees.

     We added a rule about activity reporting in commercial amusement games because it was inadvertently dropped from the draft during the RSP process.


WAC 230-14-040 Maximum number of pull-tabs in a series.

     We have changed the RSP version of the rule to match the rule petition passed at the July commission meeting for an increase in the number of pull-tabs permitted in a series and the number of carry-over jackpot pull-tabs permitted.


WAC 230-14-075 Substitute flares.

     This is a housekeeping change to keep the word "sequentially" in the description of how distributors may choose winning numbers from a manufacturer's prize flare. By this, we mean the distributor is choosing in sequence in groups larger than one unit, i.e. not consecutively. For instance, the distributor could choose 5, 10, 15, 20 as the sequence of the choice as opposed to choosing 1, 2, 3....

     We also removed the word "licensed" from before distributors because the only distributors we regulate are those who are licensed.


WAC 230-14-220 Prize limits for carry-over jackpot pull-tab series.

     We have changed the RSP version of the rule to match the rule petition passed at the July commission meeting for an increase in the prize limits permitted for carry-over jackpot pull-tab series.


WAC 230-14-284 Activity reports for punch boards and pull-tab licensees.

     We overlooked [the] rule about activity reporting for punch board and pull-tab licensees during the RSP process for the punch board and pull-tab chapter. This rule corrects that oversight. Since the August meeting, we have revised the rule to make it consistent with other rules about activity reports. The rule has been reordered; the substance is the same as what was filed at the August meeting.


Post-1/1/2008 WAC 230-15-035 Requirements for authorized card games.

     A rule petition by licensees filed for discussion at the April commission meeting asked for the number of games per hand be changed from two to three. At the July commission meeting, the commissioners agreed to final action on this rule petition.

     We are changing the post-1/1/2008 rule to align it with the change filed for final action at the July commission meeting.


New Rule WAC 230-15-111 Destruction and disposal of gambling chips.

     This rule was not in the clean-up package at the August meeting. Instead, it was on the agenda as an "RSP companion rule." The commissioners took final action on this rule at the August commission meeting. Due to code reviser's office requirements, this rule is being moved to the clean-up package. This change adds requirements for the destruction and disposal of chips.


Post-1/1/2008 WAC 230-15-126 Cutting cards in center dealer-dealt games.

     During the discussion of the card game rules, licensees approached staff about adding the player-dealt cutting cards rule to center-dealt games, so we added the rule. However, when the change was made, we made offering a cut a requirement when licensees wanted it to be an option. Therefore, we changed "must" to "may" in the rule.


Post-1/1/2008 WAC 230-15-135 Wagering limits for nonhouse-banked card games.

     In February 2007, Mr. Kimmerle brought forward a petition to raise wagering limits from twenty-five dollars to forty dollars. Commissioners passed the petition in May 2007. We are changing this rule to reflect the change passed by commission after card game rules, chapter 230-15 WAC, had already been enacted.


Post-1/1/2008 WAC 230-15-141 Additional merchandise or cash prizes for card games.

     This rule change resulted from an overlooked rule interpretation which should have been added into chapter 230-15 WAC, Card game rules. The rule impacts licensees choosing to add merchandise or other prizes to existing card games.

     One of the goals of the rule simplification project was to incorporate rule interpretations into the rules.


Post-1/1/2008 WAC 230-15-475 Tips from players and patrons to card room employees.

     The change to this rule comes from the addition of an "accounting manager who does not work as a cashier" as another person who can "verify" tip totals. This rule was pulled from the March package of the card room rules because of the on-going discussion with stakeholders. This change to the rule is acceptable both to staff and to stakeholders.


Post-1/1/2008 WAC 230-15-485 Electronic facsimiles of cards allowed.

     We removed subsections from this rule because the information about system requirements and the approval process for these electronic facsimiles was moved to chapter 230-16 WAC, Manufacturers, distributor, and gambling service supplier rules and including that information here would be duplicative.


Post-1/1/2008 WAC 230-15-491 Limiting payouts to dealers for tip or "toke" wagers.

     This rule was added to the card game rules chapter because this was a rule interpretation that existed before the RSP process began. The rule interpretation referred licensees to WAC 230-40-810 which is now WAC 230-15-490 and explains the method to calculate aggregate formulas for toke wagers. One of the goals of the RSP was to include rule interpretations.


Post-1/1/2008 WAC 230-15-670 Keeping a master key control box.

     Licensees requested this change during the review process for card game rules. There are two reasons for this change:

     1. By making those permitted access to the master key control box "other person(s) authorized by the owner," it is clear who has to authorize the access.

     2. Clarifying that the owner must authorize the entry means that the owner is responsible for who has access to the master key control box and removes the power to authorize access from managers or other employees.

HOUSEKEEPING:

     The following sections of the Washington Administrative Code were changed for wording, grammar, spelling, or clarity reasons:


WAC 230-06-055 Notify law enforcement of gambling activity.

     Reworded for clarity.


WAC 230-10-030 Bingo card definitions, 230-10-050 Electronically generated bingo cards additional requirements, 230-10-220 Player selection bingo game card requirements, 230-10-285 Selling entry guarantee tickets for special event bingo, 230-10-305 Gift certificates as bingo prizes, 230-10-350 Recording bingo winners, 230-10-420 Ticket method of receipting bingo income, 230-10-440 Combination receipting method for bingo income requirements, 230-15-300 Using multiplex and quad recording devices in required surveillance, 230-15-520 Requirements for fill/credit slips, and 230-15-535 Closing tables.

     Changed to replace the word "sequentially" or "sequential" with "consecutively" or "consecutive."


WAC 230-10-390 Disposable bingo card method for receipting bingo income required when disposable bingo cards used.

     Changed to add quotation marks around "on the way," the description of a bingo game.


WAC 230-10-455 Operating linked bingo prize games, 230-11-020 Recording information on ticket stub, 230-11-085 Modified and discounted pricing plans for tickets for members-only raffles, and 230-13-080 Operating coin- or token-activated amusement games.

     Changed to substitute "participant" for "player" and/or to change "tell" to "disclose to."


WAC 230-09-120 Disposable bingo cards.

     Changed to include the word "control" in place of "audit."

REPEALERS:


WAC 230-13-051 Incorporated cities and towns exempt from some information requirements for application.

     In March 2006, we discovered that we do not have the statutory authority to license incorporated cities and towns to operate gambling activities. The commission only licenses a handful of cities and towns. These cities and towns do not qualify as charitable or nonprofit entities. At that time, AAG Jerry Ackerman advised us to give the cities and town notice that we would be discontinuing licensing them when the new RSP rules went into effect January 1, 2008. As a result we are repealing WAC 230-03-051 Incorporated cities and towns exempt from some information requirements for application.


WAC 230-06-001 Defining "operator."

     We repealed this definition of "operator" because we define operator in other chapters in relation to the specific gambling activity being operated.


WAC 230-10-450.

     We repealed this rule because the need for linked bingo prize providers and all other licensees to control gambling equipment has been added to chapter 230-06 WAC, Rules for all licensees.


WAC 230-12-230 Agreements restricting freedom to buy and sell -- Prohibited.

     We recommend repealing subsections (1), (2), (5) and (6) of this rule. These restrictions on how linked bingo prize providers buy and sell are similar to restrictions for manufacturers, distributors, and operators which the commissioners repealed in October of 2005 when the commission decided not to regulate gambling by restricting the freedom to buy and sell in the marketplace. However, this particular rule was overlooked at that time.

     Subsections (3) and (4) of the rule were moved into chapter 230-13 WAC, Amusement game rules because they dealt with those activities and the decision was made to repeal them. To be complete, these subsections should be repealed.

     Reasons Supporting Proposal: To make our rules manual more user friendly.

     Statutory Authority for Adoption: RCW 9.46.070.

     Statute Being Implemented: Not applicable.

     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: 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, and/or the proposed rule change clarifies language of rules without changing the effect.

     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.

September 5, 2007

Susan Arland

Rules Coordinator

OTS-1000.1


NEW SECTION
WAC 230-01-011   Deadlines for submitting items to be included in the commission meeting agenda.   (1) To ensure that the public and the commissioners have sufficient notice of agenda items, we require that items for the commission's monthly meeting agenda be submitted in the format we require and delivered to our administrative office at least fourteen days before the regularly scheduled commission meeting.

     (2) Any items submitted after the time frame set forth in subsection (1) of this section must be approved by the commissioners in order to be included on the commission meeting agenda.

     (3) We publish the meeting agenda on our web site and with the code reviser's office as explained in WAC 230-01-010.

[]

OTS-1001.3


AMENDATORY SECTION(Amending Order 457, filed 3/22/06, effective 1/1/08)

WAC 230-03-040   Signing the application.   The applicant signs the application under oath and under penalty of perjury under the laws of the state of Washington. This oath affirms that the information on the application and any accompanying materials is accurate and complete.

     (1) The person signing the application must be:

     (a) The highest ranking officer of a charitable, nonprofit, or profit-seeking corporation, or limited liability company seeking licensure; or

     (b) The owner of a sole proprietorship seeking licensure; or

     (c) All partners of a partnership or general partner of a limited partnership seeking licensure((; or

     (d) The mayor or the mayor's designated representative of an incorporated city or town submitting the application)).

     (2) The person seeking an individual license and a designated officer of the organization for which the person will work must both sign the application.

[Statutory Authority: RCW 9.46.070. 06-07-157 (Order 457), § 230-03-040, filed 3/22/06, effective 1/1/08.]


AMENDATORY SECTION(Amending Order 457, filed 3/22/06, effective 1/1/08)

WAC 230-03-050   Additional information required from applicants for licensing.   (1) Applicants must give us details or copies of the following information on or attached to their application:

     (a) ((Articles of incorporation and bylaws; or, if not a corporation, a copy of any bylaws and other documents which set out the organizational structure and purposes of the organization; and

     (b))) The name of the resident agent as required by state law, and the agent's business and home address; and

     (((c))) (b) Internal Revenue Service tax exemption letter, if one is necessary; and

     (((d))) (c) All lease or rental agreements, whether oral or written, between the applicant and the owner of the site where the applicant will conduct gambling activity; and

     (((e))) (d) Any franchise agreements or other agreements, whether written or oral, between the applicant and distributors or manufacturers of equipment or between the applicant and any other person whose agreements relate to gambling activities or gambling equipment; and

     (((f))) (e) All proposed financing, consulting, and management agreements or contracts between applicant and any gambling service supplier; and

     (((g))) (f) Enough personal information to ensure each substantial interest holder is qualified to hold a license or participate in an authorized gambling activity; and

     (g) For commercial applicants: Articles of incorporation, limited liability corporation formation, partnership agreement, and other documents which set out the applicant's business structure; and

     (h) For charitable and nonprofit organization applicants: Articles of incorporation and bylaws; or, if not a corporation, a copy of any bylaws and other documents which set out the organizational structure and purposes of the organization.

     (2) Applicants must also give us any other information we request within thirty days of the request or within any other time frame we provide.

[Statutory Authority: RCW 9.46.070. 06-07-157 (Order 457), § 230-03-050, filed 3/22/06, effective 1/1/08.]


AMENDATORY SECTION(Amending Order 457, filed 3/22/06, effective 1/1/08)

WAC 230-03-085   Denying, suspending, or revoking ((a)) an application, license or permit.   We may deny, suspend, or revoke any application, license or permit, when the applicant, licensee, or anyone holding a substantial interest in the applicant's or licensee's business or organization:

     (1) Commits any act that constitutes grounds for denying, suspending, or revoking licenses or permits under RCW 9.46.075; or

     (2) Has been convicted of, or forfeited bond on a charge of, or pleaded guilty to a misdemeanor or felony crime involving physical harm to individuals. "Physical harm to individuals" includes any form of criminal assault, any crime involving a threat of physical harm against another person, or any crime involving an intention to inflict physical harm on another person; or

     (3) Has demonstrated willful disregard for complying with ordinances, statutes, administrative rules, or court orders, whether at the local, state, or federal level; or

     (4) Has failed to pay gambling taxes to local taxing authorities and the local taxing authority ((must petition)) have petitioned us to take action; or

     (5) Is serving a period of probation or community supervision imposed as a sentence for any juvenile, misdemeanor, or felony criminal offense, whether or not the offense is covered under RCW 9.46.075(4); or

     (6) Is the subject of an outstanding gross misdemeanor or felony arrest warrant; or

     (7) Fails to provide us with any information required under commission rules within the time required, or, if the rule establishes no time limit, within thirty days after receiving a written request from us; or

     (8) Poses a threat to the effective regulation of gambling, or creates or increases the likelihood of unfair or illegal practices, methods, and activities in the conduct of gambling activities, as demonstrated by:

     (a) Prior activities; or

     (b) Criminal record; or

     (c) Reputation; or

     (d) Habits; or

     (e) Associations; or

     (((8))) (9) Knowingly provides or provided goods or services to an entity that illegally operates gambling activities.

[Statutory Authority: RCW 9.46.070. 06-07-157 (Order 457), § 230-03-085, filed 3/22/06, effective 1/1/08.]


AMENDATORY SECTION(Amending Order 457, filed 3/22/06, effective 1/1/08)

WAC 230-03-175   Requirements for commercial stimulant businesses.   Businesses must provide evidence for us to determine the business' qualifications as a commercial stimulant as ((set forth)) required in RCW 9.46.0217. That evidence includes, but is not limited to:

     (1) Proof that it is an "established business" as used in RCW 9.46.0217. "Established business" means any business that:

     (a) Has been open to the public for sales of food or drink for on-premises eating and drinking for ninety days or more; or

     (((a) Provides)) (b) Passes an inspection by us, is ready to conduct food or drink sales, and gives us ((with)) a proposed operating plan which includes:

     (i) Hours of operation; and

     (ii) Estimated gross sales from each separate activity the business will conduct on the business premises including, but not limited to:

     (A) Gross sales from food or drinks sold for "on-premises" eating ((and)) or drinking; and

     (B) Gross sales from food or drinks sold "to go"; and

     (C) Gross sales from all other business activities; and

     (((b) Is ready to conduct food or drink sales; and

     (c) Passes an inspection by us; and))

     (2) Proof that it is "primarily engaged in the selling of food or drink for consumption on premises" as used in RCW 9.46.070(2). "Primarily engaged in the selling of food or drink for consumption on premises" means that before receiving a gambling license the business has total gross sales of food or drink for on-premises consumption equal to or greater than all other combined gross sales, rentals, or other income-producing activities which occur on the business premises when measured on an annual basis.

[Statutory Authority: RCW 9.46.070. 06-07-157 (Order 457), § 230-03-175, filed 3/22/06, effective 1/1/08.]


AMENDATORY SECTION(Amending Order 457, filed 3/22/06, effective 1/1/08)

WAC 230-03-180   Additional information required for a house-banked card room application.   If you apply for a house-banked card room license, you must provide at least the following as part of your application:

     (1) A detailed description, including flow charts, of your planned internal accounting and administrative control system. You must provide the information in the standard format we require; and

     (2) A detailed diagram of the planned physical layout of the business premises. The diagram must include at least:

     (a) The location of all gambling tables; and

     (b) The location of all surveillance cameras; and

     (c) The count room; and

     (d) The surveillance room; and

     (e) The cashier's cage; and

     (3) A detailed description of the card games offered for play, including rules of play, and the type of gambling tables operated, including table layouts.

     (4) Before you begin card game operations, we perform a preoperational review and evaluation (PORE). You must receive our written approval before operating.

     (5) The PORE determines whether:

     (a) You have:

     (i) An organizational structure that supports your proposed accounting and administrative controls; and

     (ii) Controls in place so that you closely monitor the gambling activities and accurately record financial information; and

     (iii) Have enough trained staff; and

     (b) The physical layout of the card room and supporting functions can handle the proposed accounting and administrative controls.

[Statutory Authority: RCW 9.46.070. 06-07-157 (Order 457), § 230-03-180, filed 3/22/06, effective 1/1/08.]


AMENDATORY SECTION(Amending Order 605, filed 11/29/06, effective 1/1/08)

WAC 230-03-210   Applying for a gambling service supplier license.   (1) You must apply for a gambling service supplier license if you perform any of the following gambling-related services for compensation:

     (a) Consulting or advisory services regarding gambling activities; or

     (b) Gambling management services; or

     (c) Financing for more than one licensee for purchases or leases of gambling equipment or financing for providing infrastructure or facilities, or equipment that supports gambling operations ((for more than one licensee)):

     (i) Once you have financed more than one licensee, you must be a licensed gambling service supplier until all loans with licensees or previous licensees are paid.

     (ii) Once you have been a licensed gambling service supplier, you must be licensed as a gambling service supplier again before financing purchases or leases for any licensee; or

     (d) Acting as a lending agent, or loan servicer, or placement agent;

     (i) Once you have financed more than one licensee, you must be a licensed gambling service supplier until all loans with licensees or previous licensees are paid.

     (ii) Once you have been a licensed gambling service supplier, you must be licensed as a gambling service supplier again before financing infrastructure for any licensee; or

     (e) Providing the assembly of components for gambling equipment under a contract with a licensed manufacturer or entering into an ongoing financial arrangement for gambling related software with a licensed manufacturer; or

     (f) Installing, integrating, maintaining, or servicing digital surveillance systems that allow direct access to the operating system; or

     (g) Training individuals to conduct authorized gambling activities; or

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

     (i) Performing the testing and certification of tribal lottery systems in meeting requirements specified in the tribal-state compact.

     (2) You do not need a gambling service supplier license if you are:

     (a) A bank, mutual savings bank, or credit union regulated by the department of financial institutions or any federally regulated commercial lending institution; or

     (b) A university or college regulated by the Washington state board of community and technical colleges and the higher education coordinating board that trains individuals to conduct authorized gambling activities; or

     (c) An attorney, accountant, or governmental affairs consultant whose primary business is providing professional services that are unrelated to the management or operation of gambling activities; or

     (d) A person who only provides nonmanagement-related recordkeeping services for punch board and pull-tab operators, when the combined total gross billings from such services do not exceed twenty-five thousand dollars during any calendar year; or

     (e) A person who provides names, images, artwork or associated copyrights, or trademarks, or patent use, or other features that do not affect the results or outcome of the game, for use in gambling equipment; or

     (f) Regulated lending institutions.

[Statutory Authority: RCW 9.46.070. 06-24-030 (Order 605), § 230-03-210, filed 11/29/06, effective 1/1/08; 06-07-157 (Order 457), § 230-03-210, filed 3/22/06, effective 1/1/08.]


REPEALER

     The following sections of the Washington Administrative Code are repealed:
WAC 230-03-001 "We," "our," and "us" mean the commission and staff.
WAC 230-03-051 Incorporated cities and towns exempt from some information requirements for application.

OTS-1002.1


AMENDATORY SECTION(Amending Order 457, filed 3/22/06, effective 1/1/08)

WAC 230-05-001   Prorating or refunding of fees.   (1) We may prorate organization license fees when we adjust expiration dates to schedule our workload.

     (2) We may adjust expiration dates to end on the same day for organizations licensed for more than one activity. Whenever we adjust license expiration dates under this provision, we may prorate the required fees.

     (3) We will not prorate or refund fees when:

     (a) You discontinue your gambling activities; or

     (b) You voluntarily surrender your license or permit; or

     (c) We suspend or revoke your license.

     (4) We keep a portion of your application fees whether we deny or administratively close your application or you withdraw it.

     (5) If you are a commercial stimulant or a charitable or nonprofit licensee, you ((may)) have one year from your license expiration to apply for a partial refund of your license fee if your annual gross gambling receipts are less than the minimum for your license class. ((We will refund)) After our approval, we refund you the difference between the fees you paid and the fees for the license class level you actually met. ((You must request the refund within twelve months.))

[Statutory Authority: RCW 9.46.070. 06-07-157 (Order 457), § 230-05-001, filed 3/22/06, effective 1/1/08.]

OTS-1003.3


NEW SECTION
WAC 230-06-002   "We," "our," and "us" mean the commission and staff.   In this title, "we," "our," and "us" mean the designated commission staff. If a rule refers to the powers or duties of the commissioners or the director or director's designee, the rule states specifically "commissioners" or "director or director's designee."

[]


NEW SECTION
WAC 230-06-004   Defining "consecutively numbered," "consecutive," and "consecutively."   (1) "Consecutively numbered" means a numbering system normally beginning with the number one, increased by one for each unit added to the group, and ending with a number equal to the total number of units in the group.

     (2) "Consecutive" and "consecutively" mean one after the other without gaps.

[]


AMENDATORY SECTION(Amending Order 601, filed 8/22/06, effective 1/1/08)

WAC 230-06-010   Age restrictions for players.   ((Licensee)) No one must ((not)) allow anyone under the age of eighteen to participate in gambling activities except:

     (1) To play in licensed bingo games when accompanied by an adult member of his((/)) or her immediate family or a guardian, who is at least eighteen years old((.)):

     (a) "Immediate family" means only the spouse, parents, or grandparents of an individual((.)); and

     (b) "Guardian" means only a court-appointed, legal guardian of an individual; or

     (2) To play bingo at agricultural fairs or school carnivals; or

     (3) To play amusement games; or

     (4) To sell raffle tickets for a charitable or nonprofit organization that:

     (a) Has development of youth as a primary purpose; and

     (b) Has at least three members or advisors who are eighteen years old and who supervise the operation of the gambling activity; and

     (c) Has an adult member or advisor designated as the manager for the gambling activity.

[Statutory Authority: RCW 9.46.070. 06-17-132 (Order 601), § 230-06-010, filed 8/22/06, effective 1/1/08.]


NEW SECTION
WAC 230-06-031   Using wheels in promotional contests of chance, fund-raising events, or gambling activities.  


Promotional contests of chance (PCOCs)


     (1) Operators may use wheels specifically manufactured for a promotional contest of chance (PCOC), whether commercially made or home made.

     (2) Operators must not use professionally manufactured wheels made specifically for gambling activities (for example, Big 6 Wheels) in PCOCs unless they receive permission ahead of time from us.


Fund-raising events (FREs)


     (3) Operators may use commercially made wheels in gambling activities for fund-raising events (FREs).


Separation of PCOCs from gambling activities and promotions


     (4) No wheel may be used in conjunction with their gambling activities by:

     Card room licensees.

     Pull-tab licensees.


Card rooms, pull-tabs, bingo, raffles


     (5) Licensees and operators must not use professionally manufactured wheels made specifically for gambling activities (for example, Big 6 Wheels) in:

     (a) Bingo; or

     (b) Card game; or

     (c) Pull-tab.

     (6) Operators may use commercially made or home made wheels as part of drawings for prizes, good neighbor prizes, or second element of chance prizes as part of bingo games, as set out in WAC 230-10-280.

     (7) Raffle licensees and operators may use:

     Other types of wheels, such as paddle wheels, in raffles; and

     Commercially made or home made wheels in an alternative drawing format for determining the winner of a raffle. Alternative drawing formats are set out in WAC 230-11-055 and 230-11-060.

[]


AMENDATORY SECTION(Amending Order 601, filed 8/22/06, effective 1/1/08)

WAC 230-06-035   Offer no credit, loans, or gifts.   (1) Licensees, employees, or members must not extend credit, make loans, or give gifts to any person playing in an authorized gambling activity or which makes it possible for any person to play in an authorized gambling activity.

     (2) Gifts are items licensees give to their customers. Licensees must not connect these gifts to gambling activities we regulate unless the gifts are:

     (a) Gambling promotions; or

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

     (c) Free or discounted food, drink, or merchandise which:

     (i) Costs less than five hundred dollars per individual item; and

     (ii) Must not be traded back to you for cash; and

     (iii) Must not give a chance to participate further in an authorized gambling activity.

     (3) You must collect the price required to participate in the gambling activity in full before allowing someone to participate. Licensees must collect cash, check, gift certificate, gift card, or electronic point-of-sale bank transfer.

     (4) If the price paid for the opportunity to play a punch board or pull-tab series is ten dollars or less, licensees may collect the price immediately after the play is completed.

     (5) If a charitable or nonprofit organization has a regular billing system for all of the activities of its members, it may use its billing system in connection with the playing of any licensed activities as long as the organization limits play to full and active members of its organization.

     (6) Charitable or nonprofit organizations may allow credit cards, issued by a state regulated or federally regulated financial institution, for payment to participate in raffles.

[Statutory Authority: RCW 9.46.070. 06-17-132 (Order 601), § 230-06-035, filed 8/22/06, effective 1/1/08.]


AMENDATORY SECTION(Amending Order 601, filed 8/22/06, effective 1/1/08)

WAC 230-06-050   Review of electronic or mechanical gambling equipment.   (1) Persons who wish to submit gambling equipment, supplies, services, or games for our review to verify compliance with chapter 9.46 RCW and TITLE 230 WAC must pay the application deposit before we perform the review. They must also reimburse us for any additional costs of the review.

     (2) We may require manufacturers to submit certain electronic or mechanical gambling equipment for review. The equipment must meet technical standards for compliance, accuracy, security, and integrity. To allow for continued testing and training, staff may keep any equipment submitted for review for as long as the equipment remains in play in Washington. The manufacturers must reimburse us for any costs of the review. ((We)) The commissioners and commission staff are not liable for any damage to equipment while in our possession.

     (3) Licensees must operate equipment identical to the version ((staff)) the director or director's designee approved.

     (4) If persons submitting equipment do not agree with the director or director's designee's decision, they may file a petition for declaratory order with the commission to be heard as a full review (de novo) by an administrative law judge, according to RCW 34.05.240 and chapter 230-17 WAC.

[Statutory Authority: RCW 9.46.070. 06-17-132 (Order 601), § 230-06-050, filed 8/22/06, effective 1/1/08.]


NEW SECTION
WAC 230-06-051   Computation of time.   (1) When a period is in commission rules, orders, or statute, the period of time begins to run on the day after the act, event, or default. The last day of the period is included, unless it is a Saturday, Sunday or a legal holiday, in which case the period runs until the end of the next day that is not a Saturday, Sunday or a legal holiday.

     (2) When the period is less than seven days, exclude Saturdays, Sundays and legal holidays in the calculation.

     (3) This section does not apply to periods of license suspension.

[]


AMENDATORY SECTION(Amending Order 601, filed 8/22/06, effective 1/1/08)

WAC 230-06-055   Notify law enforcement of gambling activity.   (1) Licensees must notify local law enforcement agencies, in writing, that they have been licensed before they begin to conduct any activity under the license.

     (2) Licensees must ((tell)) notify local law enforcement agencies of the:

     (a) ((The)) Address where they will conduct the gambling activity; and

     (b) ((The)) Type of gambling activity licensed; and

     (c) ((The)) First date they will conduct the gambling activity; and

     (d) ((The)) Proposed schedule for the operation of the gambling activity if they plan to conduct the activity on a regular basis.

     (3) Licensees must not conduct the activity until they have made the notification.

[Statutory Authority: RCW 9.46.070. 06-17-132 (Order 601), § 230-06-055, filed 8/22/06, effective 1/1/08.]


AMENDATORY SECTION(Amending Order 601, filed 8/22/06, effective 1/1/08)

WAC 230-06-065   Display ((copies)) of ((all)) licenses ((or have them present on business premises)).   (1) Licensees must prominently display originals or copies of all gambling activity licenses or permits we have issued in the gambling area of their business premises.

     (2) Licensees must have ((these)) the licenses and permits ready for inspection by us, other law enforcement, and the public at all times.

     (3) Card room employers may choose not to display employee licenses, but must maintain ((a copy of)) all card room employees' licenses, proof of licensing, or applications if we have not issued a license, on the licensed premises at all times.

[Statutory Authority: RCW 9.46.070. 06-17-132 (Order 601), § 230-06-065, filed 8/22/06, effective 1/1/08.]


NEW SECTION
WAC 230-06-071   Washington state identification and inspection stamps to be called "I.D. stamps."   We will refer to Washington state identification and inspection stamps as "I.D. stamps" throughout these rules.

[]


NEW SECTION
WAC 230-06-074   Assistance required for commission inspections.   When we arrive to conduct an inspection, the person or business under review must immediately provide:

     (1) All requested documents or equipment; and

     (2) A safe place with adequate space where we may perform the inspection; and

     (3) Reasonable assistance to us.

[]


AMENDATORY SECTION(Amending Order 601, filed 8/22/06, effective 1/1/08)

WAC 230-06-110   ((Buy, sell, or transfer)) Buying, selling, or transferring gambling equipment.   (1) All licensees and persons authorized to possess gambling equipment must closely control the gambling equipment in their possession.

     (2) Before selling gambling equipment, licensees must ensure that the buyer possesses a valid gambling license.

     (((2))) (3) Before purchasing gambling equipment, licensees must ensure that the seller possesses a valid gambling license.

     (((3))) (4) Applicants for Class F or house-banked card room licenses may purchase and possess gambling equipment during the prelicensing process, but only after receiving written approval from us.

     (((4))) (5) Licensees may transfer gambling equipment as a part of a sale of a business as long as a condition of the sale is that the buyer receives a gambling license before the sale is complete. Licensees must make a complete record of all gambling equipment transferred in this manner, including ((commission identification and inspection services stamp numbers)) I.D. stamps. Licensees must report these transfers, including a copy of the inventory record, to us.

[Statutory Authority: RCW 9.46.070. 06-17-132 (Order 601), § 230-06-110, filed 8/22/06, effective 1/1/08.]


AMENDATORY SECTION(Amending Order 601, filed 8/22/06, effective 1/1/08)

WAC 230-06-120   ((Sell or transfer)) Selling or transferring gambling equipment ((to manufacturers or distributors)) when no longer licensed.   (1) If we have revoked your operator or distributor license, your license has expired, or you have voluntarily surrendered your license, you may only sell or otherwise transfer gambling equipment to a licensed manufacturer or distributor.

     (2) Transfers of gambling equipment in this manner are subject to the following requirements:

     (a) The transfer must be complete within thirty days of the date the license became invalid; and

     (b) Distributors must use the cash or credit against amounts they owe manufacturers; and

     (c) Operators or distributors selling the equipment must report to us within ten days of the transaction a complete inventory of all the gambling equipment transferred, including commission ((identification and inspection services)) I.D. stamps ((numbers)); and

     (d) Manufacturers or distributors receiving the equipment must prepare a credit memorandum and retain it with their records.

[Statutory Authority: RCW 9.46.070. 06-17-132 (Order 601), § 230-06-120, filed 8/22/06, effective 1/1/08.]


REPEALER

     The following section of the Washington Administrative Code is repealed:
WAC 230-06-001 Defining "operator."

OTS-1005.1


AMENDATORY SECTION(Amending Order 609, filed 4/24/07, effective 1/1/08)

WAC 230-07-005   Defining "licensees," "licensee," "organizations," and "organization." ((defined.))   (1) In this ((section)) chapter of the rules, "licensee" and "licensees" means those charitable or nonprofit organizations which we require to be licensed to conduct gambling activities.

     (2) In this chapter, "organization" and "organizations" means:

     (a) Licensees; and

     (b) All bona fide charitable or nonprofit organizations conducting unlicensed gambling activities authorized by chapter 9.46 RCW.

[Statutory Authority: RCW 9.46.070. 07-10-032 (Order 609), § 230-07-005, filed 4/24/07, effective 1/1/08.]


NEW SECTION
WAC 230-07-106   Insuring prizes.   (1) We prohibit basing contracts for prize insurance on a percentage of the gambling activity.

     (2) We allow prize insurance based on a flat fee or monthly fee.

[]

OTS-1006.2


NEW SECTION
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

     (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 Order 604, filed 10/27/06, effective 1/1/08)

WAC 230-09-120   Disposable bingo cards.   (1) Licensees that have a separate bingo license and use disposable bingo cards at the FRE must follow the inventory control procedures for disposable cards in the bingo rules chapter.

     (2) Licensees that do not have a separate bingo license must keep all unused disposable cards or packets as part of the FRE record. Licensees may return unused cards or packets to the distributor if there are no breaks in the consecutive card/((audit)) control numbers. Licensees must receive documentation from the distributor of the total number of cards or packets returned and the beginning and ending card/((audit)) control numbers.

[Statutory Authority: RCW 9.46.070. 06-22-051 (Order 604), § 230-09-120, filed 10/27/06, effective 1/1/08.]

OTS-1007.2


AMENDATORY SECTION(Amending Order 610, filed 4/24/07, effective 1/1/08)

WAC 230-10-001   Defining "licensees," "licensee," "organizations," "organization," "operators" and "operator."   (1) In this ((section)) chapter of the rules, "licensee" and "licensees" means those charitable or nonprofit organizations which we require to be licensed to conduct gambling activities.

     (2) In this section of the rules, "organization" and "organizations" means:

     (a) Licensees; and

     (b) All bona fide charitable or nonprofit organizations conducting unlicensed gambling activities authorized by chapter 9.46 RCW.

     (3) In this section of the rules, "operator" and "operators" mean licensees, organizations, and individuals.

[Statutory Authority: RCW 9.46.070. 07-10-033 (Order 610), § 230-10-001, filed 4/24/07, effective 1/1/08.]


AMENDATORY SECTION(Amending Order 610, filed 4/24/07, effective 1/1/08)

WAC 230-10-030   Bingo card definitions.   For purposes of this title:

     (1) "Card" means a unique group and configuration of numbers printed on paper, cardboard, or other material used in bingo games. This is also called a "face."

     (2) "Card number" means the number the manufacturer assigns to identify a single card or face. The "card number" is also called a "face" or "perm" number.

     (3) "Number" means numeral or symbol printed on the card.

     (4) "Collate" means the process of cutting or assembling master sheets or precut sheets of cards from one or more sets of cards into packets or books for marketing purposes. "Collate" is also called "finish" or "finishing."

     (5) "Collation" means a group of packets or books of cards assembled from more than one set of cards.

     (6) "Cut" means the layout or orientation of cards or sheets of cards divided from a master sheet of cards. A "cut" may be either square, horizontal, or vertical.

     (7) "Disposable bingo card" means a nonreusable paper bingo card manufactured by a licensed manufacturer.

     (8) "Duplicate cards" means two or more cards that are imprinted with the same numbers.

     (9) "On" means the number of cards imprinted on a sheet. (Example: "Three on.")

     (10) "Pack" means a group of cards or sheets of cards collated into a book and each page or sheet is intended to play a separate bingo game, including "on-the-way" games, within a session. This is also called a "packet."

     (11) "Product line" means a specific type of card identifiable by unique features or characteristics when compared to other types of cards the manufacturer markets. A "product line" includes all series and all cards within each series the manufacturer identifies.

     (12) "((Sequentially)) Consecutively numbered" means a numbering system normally beginning with the number one, increased by one for each individual unit added to the group, and ending with a number identical to the total number of units assigned to that group.

     (13) "Serial number" means a number the manufacturer assigns for identification and tracking purposes to a set of cards. The same number must not identify another set of cards from the same product line, color, border pattern, and series in less than 999,999 occurrences or twelve months, whichever occurs first. If the product line is used as a determining factor for assignment of a serial number, the difference between various product lines must be readily identifiable by observation.

     (14) "Series" of cards means a specific group of cards that a manufacturer assigns ((sequential)) consecutive card numbers. The first and last card numbers in a series typically identify the group of cards. (Example: The "1 to 9000 series.")

     (15) "Set" of cards means a specific group of cards from the same product line, which are the same color, border pattern, and imprinted with the same serial number. A "set" of cards may include more than one series of cards.

     (16) "Sheet number" means the number the manufacturer assigns to identify an arrangement of more than one card that results from dividing master sheets of cards to help marketing.

     (17) "Skip" means the standard spread or difference between card or sheet numbers at different page levels in packs or packets.

     (18) "Subset" means a portion of a set of cards or collation of packets that a licensed distributor divides to help marketing.

     (19) "Up" means the number of pages or sheets collated into each packet or book of cards. (Example: "Eight up.")

[Statutory Authority: RCW 9.46.070. 07-10-033 (Order 610), § 230-10-030, filed 4/24/07, effective 1/1/08.]


AMENDATORY SECTION(Amending Order 610, filed 4/24/07, effective 1/1/08)

WAC 230-10-050   Electronically generated bingo cards -- Additional requirements.   (1) "Electronically generated bingo cards" means bingo cards for which a licensed manufacturer has predetermined the numbers and the sequence of arrangement and stored them electronically for computer access. Electronically generated bingo cards must:

     (a) Meet the requirements for bingo cards; and

     (b) Be printed by the licensed bingo operator, during the bingo session on a printer interfaced with the computer; and

     (c) If printed before the time of sale, be sold ((sequentially)) consecutively at each individual sales point, beginning with the lowest card, sheet, or transaction number; and

     (d) Have a master verification system that provides a facsimile of each card. The master verification system must display the exact numbers and the location or configuration of numbers on the card.

     (2) The bingo licensee must keep cards or sheets of cards not issued ((sequentially)) consecutively during a session as a part of their daily bingo records.

[Statutory Authority: RCW 9.46.070. 07-10-033 (Order 610), § 230-10-050, filed 4/24/07, effective 1/1/08.]


NEW SECTION
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 on devices; and

     (c) Have an I.D. stamp from us 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 data base which stores the bingo cards; and

     (e) 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) Use cards that meet all requirements of bingo cards and electronic bingo cards; and

     (g) Allow players to input the numbers called; and

     (h) Compare input numbers to bingo cards stored in an electronic data base; and

     (i) 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 Order 610, filed 4/24/07, effective 1/1/08)

WAC 230-10-220   Player selection bingo game card requirements.   (1) Bingo cards used in player selection bingo games:

     (((1))) (a) Must be printed on two-part, self-duplicating paper to include an original and a duplicate copy. The duplicate copy must be given to the player and the operator retains the original as a part of the daily bingo records; and

     (((2))) (b) Must include a control system in each set which:

     (((a))) (i) Identifies that specific set; and

     (((b))) (ii) Numbers each sheet of cards within a set ((sequentially)) consecutively; and

     (((c))) (iii) Allows tracking of the transfer of cards from the point of manufacture to the operator and from the operator to the player; and

     (((3))) (c) May be produced by unlicensed manufacturers if:

     (((a))) (i) The primary activity of the manufacturer is producing nongambling products; and

     (((b))) (ii) The cards meet the general bingo cards requirements; and

     (((c))) (iii) The licensee assumes responsibility for complying with all requirements for player selection cards; and

     (((d))) (iv) The invoice transferring these cards includes the beginning and ending card number in addition to meeting all other sales invoice requirements; and

     (((4))) (d) If electronically generated ((cards)), may be single copy cards if all information from the cards is either printed on a continuous transaction journal retained in the card generating device or stored on the computer hard drive in a data base and printed out at the end of each session.

     (2) Operators offering an "instant winner" game under player selection bingo must:

     (a) Meet all requirements for awarding bingo prizes; and

     (b) Award prizes of not more than twenty-five percent of the total prize pool or two hundred fifty dollars, whichever is less; and

     (c) For prizes of two hundred fifty dollars or more:

     (i) Have the winner sign the winning card on the back to verify a winner; and

     (ii) If using a two-part card, record a neutral player's name and complete address on the back of the original card to verify the winning card was paid.

[Statutory Authority: RCW 9.46.070. 07-10-033 (Order 610), § 230-10-220, filed 4/24/07, effective 1/1/08.]


NEW SECTION
WAC 230-10-235   Hidden face bingo game requirements.   (1) Hidden face bingo cards must meet the requirements for disposable bingo cards and each card or sheet of cards must:

     (a) Be printed, folded, and sealed in a manner that prohibits anyone from viewing or knowing the numbers, configuration of numbers on the card, or the card number before the player opens it; and

     (b) Have a separate numbering system that is randomly distributed when compared to the card number imprinted in the "free" space. Manufacturers must use procedures that mix cards or sheets of cards so that:

     (i) No consistent relationship exists between the "card numbers" and separate numbering system within a set or subset; and

     (ii) No patterns or consistent relationships exist in the location of a specific card number between subsets from different sets; and

     (iii) The serial number and the additional card or sheet number must be imprinted on the outside of the cards or sheets of cards and visible for recording without opening the card or sheet of cards; and

     (iv) Each set of cards must contain at least six thousand unique faces or patterns of numbers; and

     (2) Bingo licensees must:

     (a) Use the disposable bingo card receipting method for sales of hidden face bingo cards; and

     (b) Meet all inventory requirements for disposable bingo cards and disposable bingo card receipting; and

     (c) Comply with rules about sequentially issuing bingo cards to ensure that duplicate cards are not sold during a game. Licensees must sell each complete set or subset of cards before they issue any cards from a different set or subset. Licensees may sell cards from more than one set during a game if care is taken to ensure that no duplicate cards are sold; and

     (d) Complete all play during a single session and only use cards that are sold during that session; and

     (e) Select and call a new set of numbers for each game or set of games (example: "On the way" games); and

     (f) Have a separate display board, visible to the players, for displaying numbers called. The numbers must be displayed until the game is completed. Licensees may use alternative displays if the numbers are displayed on the electronic flashboard during all number selection periods; and

     (g) Document and prominently post the requirements for a completed game; and

     (3) Licensees offering an "instant winner" game under hidden face bingo must:

     (a) Meet all requirements for awarding bingo prizes; and

     (b) Award prizes of not more than twenty-five percent of the total prize pool or two hundred fifty dollars, whichever is less; and

     (c) For prizes of two hundred fifty dollars or more:

     (i) Have the winner sign the winning card on the back to verify a winner; and

     (ii) If using a two-part card, record a neutral player's name and complete address on the back of the original card to verify the winning card was paid; and

     (4) Players who have paid to participate in the game must be present when the numbers are selected.

[]


AMENDATORY SECTION(Amending Order 610, filed 4/24/07, effective 1/1/08)

WAC 230-10-305   Gift certificates as bingo prizes.   When issuing gift certificates as bingo prizes, bingo operators must:

     (1) Issue the gift certificates ((sequentially)) consecutively; and

     (2) Not exceed fifty dollars per bingo prize in value; and

     (3) Not issue gift certificates exclusively for punch boards or pull-tabs; and

     (4) Record the value of each gift certificate as a bingo prize in the daily bingo records under the session awarded; and

     (5) Keep the bingo prize receipt for the gift certificates as a part of the daily bingo records.

[Statutory Authority: RCW 9.46.070. 07-10-033 (Order 610), § 230-10-305, filed 4/24/07, effective 1/1/08.]


AMENDATORY SECTION(Amending Order 610, filed 4/24/07, effective 1/1/08)

WAC 230-10-310   Selling gift certificates.   When selling gift certificates, bingo operators must:

     (1) Issue the gift certificates ((sequentially)) consecutively; and

     (2) Ensure that the gift certificates are paid for in full at the time of purchase; and

     (3) Deposit all funds collected separately into the gambling account within five banking days; and

     (4) Include each gift certificate number with the deposit record.

[Statutory Authority: RCW 9.46.070. 07-10-033 (Order 610), § 230-10-310, filed 4/24/07, effective 1/1/08.]


AMENDATORY SECTION(Amending Order 610, filed 4/24/07, effective 1/1/08)

WAC 230-10-330   ((Recordkeeping)) Activity reports required for ((agricultural fairs,)) Class A, B, and C bingo, agricultural fairs, and other organizations.   Licensees must immediately account for all income from bingo games. Class A, B, and C bingo licensees, organizations conducting bingo under the provisions of RCW 9.46.0321, and bingo activities conducted at a qualified agricultural fair must follow the recordkeeping requirements in WAC 230-07-125 or any of the receipting methods for bingo income required for Class D or above licensees.

[Statutory Authority: RCW 9.46.070. 07-10-033 (Order 610), § 230-10-330, filed 4/24/07, effective 1/1/08.]


NEW SECTION
WAC 230-10-331   Activity reports for Class D and above bingo licensees.   Each organization licensed to conduct Class D and above bingo games must submit an activity report to the commission. The activity reports must be in the format we require and must:

     (1) Cover the periods:

     (a) January 1 through March 31; and

     (b) April 1 through June 30; and

     (c) July 1 through September 30; and

     (d) October 1 through December 31 of each year; and

     (2) Be received at our administrative office or postmarked no later than thirty days following the end of the reporting period; and

     (3) Be signed by the licensee's highest ranking executive officer or a designee. If someone other than the manufacturer or distributor or its employee prepares the report, then it must provide the preparer's name and business telephone number; and

     (4) Be submitted regardless of the level of activity. If no activity was conducted during the period, a report stating "no activity" must be submitted; and

     (5) Be filed even if licensees do not renew their license. They must file a report for the period between the previous report filed and the expiration date of the license.

[]


AMENDATORY SECTION(Amending Order 610, filed 4/24/07, effective 1/1/08)

WAC 230-10-350   Recording bingo winners.   Organizations conducting bingo under the provisions of RCW 9.46.0321, and bingo activities conducted at a qualified agricultural fair, and Class A and B bingo licensees do not have to follow this rule if they meet the requirements for lower volume charitable or nonprofit organizations in WAC 230-07-125. All other bingo licensees must report all prize payments for bingo games and drawings for prizes, good neighbor prizes, and second element of chance prizes at bingo games and record payment on a prize receipt.

     (1) Licensees must use prize receipts printed by a commercial printer. The receipts must:

     (a) Be two-part, self-duplicating paper that provides for an original and a duplicate copy; and

     (b) If the licensee is Class F or above, be imprinted with the name of the licensee and a consecutive ascending number that does not repeat in at least 100,000 occurrences; and

     (c) If the licensee is Class E or below, the receipt is not required to be imprinted with the licensee's name and the consecutive ascending number may repeat in 1,000 occurrences; and

     (d) Provide space for the licensee to record the information we require.

     (2) Licensees may receipt ((merchandise)) prizes with a cost or fair market value of ((fifteen)) twenty dollars or less on a single ((merchandise)) prize receipt log sheet. Licensees must:

     (a) Maintain a separate ((merchandise)) prize receipt log for each session; and

     (b) Retain the receipt log as a part of the bingo daily records.

     (3) Operators must complete the prize receipt including, at least:

     (a) Date; and

     (b) Game number; and

     (c) Complete name and address of the winner; and

     (d) Dollar amount of the prize or the operator's cost, if noncash prize; and

     (e) Full description of all noncash prizes; and

     (f) Check number, if any portion of the prize is paid by check; and

     (g) Initials of the bingo worker making the payout; and

     (h) Initials of the cashier making the payment.

     (4) Except for linked bingo prizes, licensees may omit an address for the winner if:

     (a) The prize is greater than $300; and

     (b) The licensee pays by check or a combination of cash and check; and

     (c) Checks are drawn on the licensee's gambling bank account; and

     (d) Checks used are of a type that provides a duplicate copy. The copies must be kept as a part of the daily bingo records; and

     (e) Checks are made payable only to the winner. Licensees may make checks for prizes won by players under age eighteen payable to the guardian or immediate family member accompanying the player; and

     (f) Licensees note the game number and prize receipt number on the check; and

     (g) The bank returns all original checks to the licensee. Licensees must have the original checks available for our inspection on demand; and

     (h) The licensee does not cash or otherwise redeem prize checks.

     (5) Licensees must record the complete name and address of the winner of linked bingo prizes.

     (6) Licensees must:

     (a) Issue prize receipts ((sequentially)) consecutively in an ascending order; and

     (b) Void and retain with the daily records any prize receipts bearing a lower number than the highest number issued during a session; and

     (c) Give the original of each prize receipt to the winner; and

     (d) Keep a duplicate copy as a part of their records for not less than three years; and

     (e) Account for and document all prize receipts purchased or otherwise obtained on a vendor's invoice; and

     (f) Keep the vendor's invoice, or a photocopy of it, on the premises and have it available for our inspection. The purchase invoice must document, at least:

     (i) Name of the vendor;

     (ii) Name of the purchasing organization;

     (iii) Date of purchase;

     (iv) Number of receipts purchased; and

     (v) The beginning and ending receipt number.

[Statutory Authority: RCW 9.46.070. 07-10-033 (Order 610), § 230-10-350, filed 4/24/07, effective 1/1/08.]


AMENDATORY SECTION(Amending Order 610, filed 4/24/07, effective 1/1/08)

WAC 230-10-390   Disposable bingo card method for receipting bingo income required when disposable bingo cards used.   Bingo licensees must use the disposable bingo card method to receipt for bingo income when disposable bingo cards are used. Licensees using the disposable bingo card method to receipt for bingo income must:

     (1) Use bingo cards that meet all disposable bingo card requirements; and

     (2) Complete the inventory control record; and

     (3) Record for each set of cards or sheets intended for playing a single game, including on-the-way games:

     (a) Serial number; and

     (b) The color and/or border pattern; and

     (c) The value of each card or sheet; and

     (d) The lowest consecutive card or sheet number issued as a receipt; and

     (e) The last card or sheet number issued as a receipt; and

     (f) Missing cards or sheets per the manufacturer's packing record; and

     (g) The number of cards returned and not issued; and

     (h) The number of cards issued as receipts; and

     (i) The total gross gambling receipts from all cards issued as receipts; and

     (4) Record for each set or collation of packs or packets of cards sold and intended for playing a defined set of games:

     (a) The serial number of the top sheet or page of the packet; and

     (b) The color and/or border pattern of the top sheet or page of the packet; and

     (c) The lowest consecutive card, sheet, or packet number for the first packet issued as a receipt; and

     (d) The card, sheet, or packet number of the last or highest packet issued as a receipt; and

     (e) The number of packets issued as receipts; and

     (f) The number of packets returned and not issued; and

     (g) Missing packets per the manufacturer's packing record; and

     (h) The value of each packet; and

     (i) The total gross receipts from all packets issued as receipts; and

     (5) Record each disposable card issued for each type of sale separately. When more than one card or sheet number appears on a sheet of cards, licensees must use the manufacturer's designated control system to determine the beginning and ending number sold. Each time the numbering of the sheets breaks in the set, licensees must make a separate entry in the records; and

     (6) ((Sequentially)) Consecutively issue each disposable card or sheet or packet of cards from the same set at each individual sales point. Licensees may sell these cards, sheets, or packets not issued during a session only at the next bingo session. Otherwise, licensees must retain these cards, sheets, or packets of cards for at least one year; and

     (7) Return unsold cards issued to the operator for a linked bingo prize to the linked bingo prize provider. The linked bingo prize provider must store these cards six months or until we have examined and approved them for destruction, whichever is less. Unopened blocks of two hundred fifty cards may be reissued.

[Statutory Authority: RCW 9.46.070. 07-10-033 (Order 610), § 230-10-390, filed 4/24/07, effective 1/1/08.]


AMENDATORY SECTION(Amending Order 610, filed 4/24/07, effective 1/1/08)

WAC 230-10-420   Ticket method of receipting bingo income.   Bingo licensees may use tickets to document receipts of bingo income. Tickets must be:

     (1) Manufactured by a commercial printer and imprinted with:

     (a) At least four digit numbers in a ((sequential)) consecutive series. Class F and above licensees must use tickets with numbers that do not repeat in at least 99,999 occurrences; and

     (b) Each ticket on a roll must represent the same dollar value or amount of money; and

     (c) Include the name of the licensee operating Class F and above bingo game; and

     (2) If used by Class F or above licensees, purchased from a licensed distributor or manufacturer; and

     (3) Issued ((sequentially)) consecutively from each roll, starting with the lowest numbered ticket; and

     (4) Accounted for by the licensee. If purchased from a commercial business or licensed distributor, documentation must be on the sales invoice. This invoice, or a photocopy, shall be maintained on the premises and available for inspection. Document the following information on the sales invoice for each roll of tickets purchased:

     (a) Name of distributor; and

     (b) Name of purchasing licensee; and

     (c) Date of purchase; and

     (d) Number of rolls of tickets purchased; and

     (e) The color, dollar value, total number of tickets, and beginning ticket number for each roll; and

     (5) Recorded in the daily records in the format we require; and

     (6) Retained by the licensee as a part of the bingo daily records for those not issued as receipts and that bears a number falling below the highest numbered ticket issued during that session and not be used to receipt for any type of income; and

     (7) Not be the same color and imprinted with the same ticket number as any other ticket on the premises.

[Statutory Authority: RCW 9.46.070. 07-10-033 (Order 610), § 230-10-420, filed 4/24/07, effective 1/1/08.]


AMENDATORY SECTION(Amending Order 610, filed 4/24/07, effective 1/1/08)

WAC 230-10-440   Combination receipting method for bingo income requirements.   (1) Bingo licensees using the combination method of receipting for bingo income must follow all requirements for cash register receipting; and

     (2) Licensees may sell similar cards used to play for the same prize at a volume discount, but they must record each separate discount price using a separate cash register or sales identification key to provide an audit trail; and

     (3) If receipting for the sale of disposable bingo cards, licensees must:

     (a) Follow all requirements for disposable bingo card receipting; and

     (b) In addition to those requirements, record the following for each session where sets of cards are sold:

     (i) The session number and date; and

     (ii) The beginning and ending control numbers of the top page of the packets; and

     (iii) Adjustments for any missing packets, compared to the manufacturer's packing record; and

     (iv) The number of packets distributed to sales points and returned as unsold; and

     (v) Total packets sold; and

     (vi) The value of each packet; and

     (vii) The extended value obtained by multiplying total packets issued times the value of each packet; and

     (viii) The cumulative number of packets issued from the series to date; and

     (c) ((Sequentially)) Consecutively issue each disposable card or sheet or packet of cards from the same set at each individual sales point. If sets are divided into subgroups, then licensees must issue packets or sheets of cards within each subgroup ((sequentially)) consecutively from each subgroup. Licensees may sell these cards, sheets, or packets not issued during a session only at the next bingo session. Otherwise, licensees must retain these cards, sheets, or packets of cards for at least one year; and

     (d) Record all required information in the inventory control record; and

     (e) Carry forward the totals from the transaction record to the daily bingo summary and reconcile sales against the cash register record; and

     (4) If receipting for electronically generated bingo cards, licensees must:

     (a) Follow all requirements of electronically generated bingo card receipting; and

     (b) Carry forward the totals from the transaction record to the daily bingo summary and reconcile sales against the cash register record; and

     (5) If receipting for bonus games, licensees must:

     (a) Follow all requirements of ticket receipting; and

     (b) ((Sequentially)) Consecutively issue tickets from each sales point. Licensees must retain tickets from each sales point with control numbers lower than the highest ticket issued at that sales point as a part of the daily bingo records; and

     (c) Carry forward the totals from the transaction record to the daily bingo summary and reconcile sales against the cash register record.

[Statutory Authority: RCW 9.46.070. 07-10-033 (Order 610), § 230-10-440, filed 4/24/07, effective 1/1/08.]


AMENDATORY SECTION(Amending Order 610, filed 4/24/07, effective 1/1/08)

WAC 230-10-445   Linked bingo games ((and prizes)).   (1) A linked bingo prize provider must request and receive approval from us before allowing a bingo operator to participate in a game that offers a linked bingo prize. ((A bingo))

     (2) Operators must not offer more than one linked bingo game per session or no more than three linked bingo games per day.

     (3) The linked bingo prize provider must notify us within seven days when an operator stops participating in linked bingo prize games.

[Statutory Authority: RCW 9.46.070. 07-10-033 (Order 610), § 230-10-445, filed 4/24/07, effective 1/1/08.]


NEW SECTION
WAC 230-10-446   Operating linked bingo prize games.  


Before the game begins.


     (1) The linked bingo prize provider (provider) must establish procedures for participating operators to follow that reduce the possibility of error; and

     (2) Providers must not restrict licensees from participating. However, a provider may establish minimum card sales by an operator to entitle that operator to receive equipment to conduct the game without paying compensation; and

     (3) Before beginning a linked bingo prize game, each operator must tell their players the serial numbers and sheet numbers for all cards sold at their premises; and

     (4) If hidden face bingo cards are used, providers may, as part of the game rules, allow players to mark all odd or even numbers based on the calendar date; and

     (5) All card sales must stop before the drawing of the first ball; and


During the game.


     (6) Bingo licensees operating linked bingo prize games must ensure that all numbers selected for a linked bingo prize are selected on the premises of a licensee taking part in the linked bingo prize and in the presence of players paying to participate in the game; and

     (7) If a provider distributes cards so that duplicate cards are in play, then the provider is responsible for paying the increases to the prize pool under WAC 230-10-125; and

     (8) The blower must remain in operation until management removes all balls and records the order in which they were removed; and

     (9) The caller must display the number to all players immediately after drawing each ball; and

     (10) Licensees may not require a player to call bingo on the last number called; and

     (11) When a player declares a winning bingo for the main or bonus prize, a licensed gambling manager, a neutral player, and the game caller must immediately verify the winning card and disclose the winning combination to all players.

[]


NEW SECTION
WAC 230-10-447   Prizes in linked bingo prize games.   (1) Operators may have up to forty-eight hours to award a main or bonus prize to the winner(s); and

     (2) Linked bingo prize providers may establish a consolation prize amount paid at each participating location. Participating licensees whose sales volume does not meet the minimum set out in WAC 230-10-455(2) may pay a consolation prize that is less than this amount; and

     (3) For all linked bingo prize games, a winner must be determined at each premises which sells cards to participate in the game.

[]


NEW SECTION
WAC 230-10-451   Recordkeeping for linked bingo prize games.   (1) Class A, B, or C bingo licensees participating in linked bingo games must maintain all records required for Class D bingo licensees for all their bingo operations; and

     (2) For funds contributed to accrued linked bingo prizes, licensees must modify each bingo game daily record to include, at least:

     (a) The amount of the contribution; and

     (b) The amount of any consolation prize the licensee paid for a linked bingo prize game; and

     (c) The name of the linked bingo prize provider to whom the contribution is made.

[]


NEW SECTION
WAC 230-10-456   Additional accounting records for linked bingo prize providers.   In addition to other accounting records, linked bingo prize providers must keep records in the format we require of:

     (1) Each prize offered; and

     (2) Equipment installed at participating licensees' locations that includes at least:

     (a) The name and address of the licensee where the equipment is installed; and

     (b) A physical description of the equipment and its cost; and

     (3) All bingo cards purchased or otherwise obtained, where the cards were distributed, and the date the cards were used; and

     (4) Video recording of each drawing in the previous one-year period that shows, at least:

     (a) The ball selection process, including the numbers drawn; and

     (b) All body movements of the caller.

[]


NEW SECTION
WAC 230-10-457   Activity reports by linked bingo prize providers.   Linked bingo prize providers must submit an activity report to us concerning their sales and services.

     (1) Providers must complete the report in the format we require; and

     (2) We must receive the completed report, or the report must be postmarked, no later than thirty days after the end of the reporting period; and

     (3) The highest ranking executive officer or designee must sign the report. 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; and

     (4) Licensees must report activities for:

     (a) January 1 through June 30; and

     (b) July 1 through December 31; and

     (5) Providers must report regardless of the level of activity. If the provider conducted no activity during the period, he or she must submit a report stating "no activity"; and

     (6) Providers must submit a report for any period of time their license was valid. If they do not renew their license, they must submit a report for the period between the previous semiannual report they filed and the date their license expired.

[]


REPEALER

     The following section of the Washington Administrative Code is repealed:
WAC 230-10-450 Controlling gambling equipment by linked bingo prize licensees.

OTS-1008.1


AMENDATORY SECTION(Amending Order 602, filed 9/26/06, effective 1/1/08)

WAC 230-11-001   Defining "licensees," "licensee," "organizations," and "organization." ((defined.))   (1) In this chapter, "licensee" and "licensees" means those charitable or nonprofit organizations which we require to be licensed to conduct raffles.

     (2) "Organization" and "organizations" means all bona fide charitable or nonprofit organizations conducting unlicensed raffles authorized by chapter 9.46 RCW, including those authorized by RCW 9.46.0209, 9.46.0315 and 9.46.0321.

[Statutory Authority: RCW 9.46.070. 06-20-040 (Order 602), § 230-11-001, filed 9/26/06, effective 1/1/08.]


AMENDATORY SECTION(Amending Order 602, filed 9/26/06, effective 1/1/08)

WAC 230-11-020   Record information on ticket stub.   If an organization sells raffle tickets to the general public or conducts raffles that do not require the winner to be present at the drawing, the organization must include a stub or other detachable section bearing a number, letter, or symbol matching the number, letter, or symbol on the ticket or object representing the ((player's)) participant's ticket. The organization's portion must include the participant's name, complete address, telephone number, and other information necessary to notify the winner.

[Statutory Authority: RCW 9.46.070. 06-20-040 (Order 602), § 230-11-020, filed 9/26/06, effective 1/1/08.]


AMENDATORY SECTION(Amending Order 602, filed 9/26/06, effective 1/1/08)

WAC 230-11-085   Modified and discounted pricing plans for tickets for members-only raffles.   (1) Licensees may use modified ticket pricing plans at members-only raffles when gross revenues do not exceed five thousand five dollars. One type of modified pricing plan is a penny raffle. A penny raffle is a raffle where licensees sell five hundred consecutively numbered tickets. Participants randomly choose tickets and pay the consecutive number of the ticket multiplied by a predetermined cost, for instance, one penny.

     (2) In modified pricing plans, licensees may sell tickets to enter a raffle for different values, not to exceed ten dollars for a single ticket, if the licensee:

     (a) ((Tells)) Discloses to the ((players)) participants the pricing plan before selling them a ticket to participate. The licensee must ((tell)) disclose to the ((player)) participant the total number of tickets in the population available and the number of tickets at each price level; and

     (b) Allows participants to randomly select their ticket from the population of remaining tickets and pay the amount printed on the ticket they select; and

     (c) Establishes records for an adequate audit trail to determine gross gambling receipts; and

     (d) Holds no more than two such drawings during a meeting or event; and

     (e) Sells multiple tickets to enter one or more drawings as a package and the total price of the package must not exceed twenty-five dollars.

[Statutory Authority: RCW 9.46.070. 06-20-040 (Order 602), § 230-11-085, filed 9/26/06, effective 1/1/08.]

OTS-1023.1


REPEALER

     The following section of the Washington Administrative Code is repealed:
WAC 230-12-230 Agreements restricting freedom to buy and sell -- Prohibited.

OTS-1009.3


AMENDATORY SECTION(Amending Order 612, filed 7/16/07, effective 1/1/08)

WAC 230-13-030   Group 4 -- Coin or token toss amusement game standards.   In Group 4 games, players toss one or more coins or tokens onto a surface or into a target area to win a prize. In coin or token toss amusement games:

     (1) The game must have a clear and unobstructed thirty-six inch vertical airspace above the target area or surface; and

     (2) The target or surface must be level and not altered to give an advantage to the operator; and

     (3) Any game which has a target area of four square inches or less must award a prize if any part of the coin or token is within the target area. "Four square inches" means a two-inch by two-inch square; and

     (4) If the target does not include a more than two-inch by two-inch square area, such as a rainbow or star, a prize must be awarded if any part of the coin or token lands on any portion of the target area.

[Statutory Authority: RCW 9.46.070. 07-15-064 (Order 612), § 230-13-030, filed 7/16/07, effective 1/1/08.]


AMENDATORY SECTION(Amending Order 612, filed 7/16/07, effective 1/1/08)

WAC 230-13-080   Operating coin or token activated amusement games.   (1) Coin or token activated amusement games must have nonresetting coin-in meters, certified as accurate to within plus or minus one coin or token in one thousand plays, which stop play of the machine if the meter is removed or disconnected when operating at:

     (a) Amusement parks; or

     (b) Regional shopping malls; or

     (c) Movie theaters; or

     (d) Bowling alleys; and

     (e) Miniature golf course facilities; and

     (f) Skating facilities; and

     (g) Amusement centers. "Amusement center" means a permanent location whose primary source of income is from the operation of ten or more amusement devices; and

     (h) Restaurants; and

     (i) Grocery or department stores. A "department or grocery store" means a business that offers the retail sale of a full line of clothing, accessories, and household goods, or a full line of dry grocery, canned goods, or nonfood items plus some perishable items, or a combination of these. A department or grocery store must have more than ten thousand square feet of retail and support space, not including the parking areas; and

     (j) Any premises that a charitable or nonprofit organization currently licensed to operate punch boards, pull-tabs, or bingo controls or operates.

     (2) All coin or token activated amusement games must have a coin acceptor capable of taking money for one play and may have an additional acceptor to include paper money.

     (3) Operators using amusement games that do not return change must have a change-making bill acceptor or the ability to get change in the immediate vicinity of such games. All amusement games using paper money acceptors must either:

     (a) Return change; or

     (b) Clearly disclose to ((the)) players before play that change is not returned and ((tell)) disclose to them where at the location they may get change.

[Statutory Authority: RCW 9.46.070. 07-15-064 (Order 612), § 230-13-080, filed 7/16/07, effective 1/1/08.]


NEW SECTION
WAC 230-13-169   Activity report for commercial amusement game licensees.   Commercial amusement game licensees must submit an activity report to the commission. 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; 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) Be filed even if they do not renew their license. They must file a report for the period between the previous report filed and the expiration date of the license.

[]


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

WAC 230-14-040   Maximum number of pull-tabs in a series.   The maximum number of pull-tabs must be no more than:

     (1) Ten Twenty-five thousand in a series; or

     (2) Six Ten thousand in a carry-over jackpot series; or

     (3) Fifty thousand in progressive jackpot series.


[Statutory authority: RCW 9.46.070.]

[Statutory Authority: RCW 9.46.070. 07-17-058 (Order 614), § 230-14-040, filed 8/10/07, effective 1/1/08.]

     Reviser's note: The typographical errors in the above section occurred in the copy filed by the agency and appear in the Register pursuant to the requirements of RCW 34.08.040.

     Reviser's note: RCW 34.05.395 requires the use of underlining and deletion marks to indicate amendments to existing rules. The rule published above varies from its predecessor in certain respects not indicated by the use of these markings.
AMENDATORY SECTION(Amending Order 614, filed 8/10/07, effective 1/1/08)

WAC 230-14-075   Substitute flares.   Manufacturers must make all flares. Operators or distributors must not alter flares, except that substitute flares are allowed if:

     (1) The manufacturer, distributor, or operator who changes the original flare and attaches the substitute flare is responsible for ensuring that the substitute flare meets all other requirements for flares; and

     (2) Manufacturers, distributors, or operators must permanently deface the original manufacturer's flare and attach the substitute flare to the original.

     (3) Distributors or operators may apply manufacturer-produced substitute flares to punch boards and pull-tab series; and

     (4) Distributors or operators must place substitute flares only on the upper face or the top of the punch board; and

     (5) If distributors or operators convert flares from cash-only prizes to combined merchandise and cash prizes, they must offer at least fifty percent of the total value of the prizes in merchandise; and

     (6) Distributors or operators may use substitute flares on punch boards and pull-tab series which offer merchandise or combination merchandise-cash prizes. These flares must use numbers, not symbols, to denote winners. distributors or operators making substitute flares must:

     (a) Select winning numbers from the manufacturer's original flare, or from the manufacturer's designated winning numbers on the punch board; and

     (b) Assign the highest valued prize(s) to the lowest available winning number(s); and

     (c) Assign the second highest valued prize(s) to the next lowest available winning number(s) and repeat that pattern until they have assigned all prizes based on their value to winning numbers. ((Licensed distributors)) Distributors may select winning numbers ((consecutively)) sequentially from the manufacturer's original flare; and

     (7) Substitute flares must have the I.D. stamp number and series number permanently recorded in ink on its face.


[Statutory authority: RCW 9.46.070.]

[Statutory Authority: RCW 9.46.070. 07-17-058 (Order 614), § 230-14-075, filed 8/10/07, effective 1/1/08.]

     Reviser's note: The typographical error in the above section occurred in the copy filed by the agency and appears in the Register pursuant to the requirements of RCW 34.08.040.

     Reviser's note: RCW 34.05.395 requires the use of underlining and deletion marks to indicate amendments to existing rules. The rule published above varies from its predecessor in certain respects not indicated by the use of these markings.
AMENDATORY SECTION(Amending Order 614, filed 8/10/07, effective 1/1/08)

WAC 230-14-220   Prize limits for carry-over jackpot pull-tab series.   Operators may use pull-tab series which include carry-over jackpots. Operators must use the following calculations for prizes and prize payouts for carry-over jackpots:

     (1) Guaranteed prizes must be sixty percent or more of gross gambling receipts available from the pull-tab series. "Guaranteed prizes" means all prizes available, excluding the contribution amount or carry-over jackpot; and

     (2) The manufacturer determines the contribution amount and the method of play and discloses both on the flare; and

     (3) The contribution amount for each series must not be more than five hundred dollars; and

     (4) An accumulated carry-over jackpot must not be more than two five thousand dollars; and

     (5) If the carry-over jackpot is awarded, the sum of the advance-level prize and the carry-over jackpot prize combined must not be more than five two thousand dollars; and

     (6) If the operator carries over the jackpot to a new series, the total of the advance-level prize and the consolation prize must not be more than five hundred dollars.


[Statutory authority: RCW 9.46.070.]

[Statutory Authority: RCW 9.46.070. 07-17-058 (Order 614), § 230-14-220, filed 8/10/07, effective 1/1/08.]

     Reviser's note: The typographical errors in the above section occurred in the copy filed by the agency and appear in the Register pursuant to the requirements of RCW 34.08.040.

     Reviser's note: RCW 34.05.395 requires the use of underlining and deletion marks to indicate amendments to existing rules. The rule published above varies from its predecessor in certain respects not indicated by the use of these markings.

OTS-1010.1


NEW SECTION
WAC 230-14-284   Activity report for punch boards and pull-tab licenses.   Punch boards and pull-tab licensees must submit an activity report to the commission.

     (1) Licensees must complete the report in the format we require; and

     (2) We must receive the completed report, or the report must be postmarked, no later than thirty days after the end of the reporting period; and

     (3) The highest ranking executive officer or designee must sign the report. 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; and

     (4) Licensees must report activities for:

     (a) January 1 through June 30; and

     (b) July 1 through December 31; and

     (5) Unless they are also licensed for Class D or above bingo, charitable and nonprofit licensees must submit a semiannual activity report for punch boards and pull-tabs; and

     (6) Class D or above bingo licensees with a punch board and pull-tab license must report punch board and pull-tab activity, on the combined quarterly report provided by the commission as explained in chapter 230-10 WAC; and

     (7) Licensees must submit a report for any period of time their license was valid. If licensees do not renew, they must submit a report for the period between the previous semiannual report they filed and the date their license expired.

[]

OTS-1011.2


AMENDATORY SECTION(Amending Order 608, filed 4/10/07, effective 1/1/08)

WAC 230-15-035   Requirements for authorized card games.   (1) In order for a game to be authorized, the game must:

     (a) Be played with standard playing cards or with electronic card facsimiles approved by the director or the director's designee; and

     (b) Offer no more than ((two)) three separate games with a single hand of cards. We consider bonus features and progressive jackpots separate games. If a player does not have to place a separate wager to participate, we do not consider it a separate game. An example of this is an "envy" or "share the wealth" pay out when another player achieves a specific hand; and

     (c) Not allow side bets between players.

     (2) Card game licensees may use more than one deck of cards for a specific game. They also may remove cards to comply with rules of a specific game, such as Pinochle or Spanish 21.

     (3) Players must:

     (a) Compete against all other players on an equal basis for nonhouse-banked games or against the house for house-banked games. All players must compete solely as a player in the card game; and

     (b) Receive their own hand of cards and be responsible for decisions regarding such hand, such as whether to fold, discard, draw additional cards, or raise the wager; and

     (c) Not place wagers on any other player's or the house's hand or make side wagers with other players, except for:

     (i) An insurance wager placed in the game of Blackjack; or

     (ii) An "envy" or "share the wealth" wager which allows a player to receive a prize if another player wins a jackpot or odds-based wager; or

     (iii) A tip wager made on behalf of a dealer.

     (4) A player's win or loss must be determined during the course of play of a single card game.

[Statutory Authority: RCW 9.46.070. 07-09-033 (Order 608), § 230-15-035, filed 4/10/07, effective 1/1/08.]


NEW SECTION
WAC 230-15-111   Destruction and disposal of gambling chips.   Licensees must submit internal controls to us outlining the procedures for destroying or disposing of gambling logo chips.

     (1) Licensees' internal controls must set out the method for destroying logo chips that are damaged or worn. The internal controls must include, at least:

     (a) That chips must be destroyed or mutilated in such a way that they are unusable for play; and

     (b) The two departments, one of which must be the accounting department, that will be responsible for overseeing chip destruction; and

     (c) Only licensed employees may perform chip destruction.

     (2) Licensees must record all gambling chips they destroyed on a chip destruction log in the format we require.

     (3) If a card room closes, the licensee or former licensee must:

     (a) Sell or otherwise transfer gambling equipment to a licensed manufacturer or distributor; or

     (b) Destroy the chips according to the established internal controls and provide the chip destruction log to us.

[]


AMENDATORY SECTION(Amending Order 611, filed 4/24/07, effective 1/1/08)

WAC 230-15-126   Cutting cards in center dealer-dealt games.   In center dealer-dealt games:

     (1) After the shuffle, the dealer ((must)) may offer the cards to a player for a cut. After this initial offer of a cut, the dealer may require any player who asks for a cut to pay a maximum of one dollar; and

     (2) Dealers must:

     (a) Not cut the cards more than twice during each hand or game; and

     (b) Place all the fees for cutting the cards into the pot for that hand or game.

[Statutory Authority: RCW 9.46.070. 07-10-034 (Order 611), § 230-15-126, filed 4/24/07, effective 1/1/08.]


AMENDATORY SECTION(Amending Order 608, filed 4/10/07, effective 1/1/08)

WAC 230-15-135   Wagering limits for nonhouse-banked card games.   Card room licensees must not exceed these wagering limits:

     (1) Poker -

     (a) There must be no more than five betting rounds in any one game; and

     (b) There must be no more than four wagers in any betting round, for example, the initial wager plus three raises; and

     (c) The maximum amount of a single wager must not exceed ((twenty-five)) forty dollars;

     (2) Games based on achieving a specific number of points - Each point must not exceed five cents in value;

     (3) Ante - No more than the maximum wager allowed for the first betting round for any game, except for Panguingue (Pan). The ante may, by house rule:

     (a) Be made by one or more players, but the total ante may not exceed the maximum wager allowed for the first betting round; and

     (b) Be used as part of a player's wager;

     (4) Panguingue (Pan) - The maximum value of a chip must not exceed ten dollars. An ante must not exceed one chip. We prohibit doubling of conditions. Players going out may collect no more than two additional chips for going out from each participating player.

[Statutory Authority: RCW 9.46.070. 07-09-033 (Order 608), § 230-15-135, filed 4/10/07, effective 1/1/08.]


NEW SECTION
WAC 230-15-141   Additional merchandise or cash prizes for card games.  


Nonproprietary games.


     (1) Licensees may add additional merchandise or cash prizes to nonproprietary games like Blackjack or Pai Gow. We consider these additional prizes a gambling promotion and they must:

     (a) Not be greater than five hundred dollars each; and

     (b) Meet all requirements of WAC 230-06-030.


Proprietary games.


     (2) Licensees must not add additional merchandise or cash prizes to proprietary games without the approval of the company that owns the rights to the games.

     (3) To indicate their approval, the owner of the rights to a proprietary game must:

     (a) Submit an alternative pay-table that includes the additional or revised prize payout to us for review and approval; or

     (b) Send an authorization letter to us allowing the addition of gambling promotions to their game.

     (4) Once we approve the changes, the revised pay-tables are available to all card game licensees. The prizes become a part of the game rules and we consider them prize payouts on the game. Because of this, we do not consider the prizes a gambling promotion.

[]


AMENDATORY SECTION(Amending Order 608, filed 4/10/07, effective 1/1/08)

WAC 230-15-300   Using multiplex and quad recording devices in required surveillance.   (1) Licensees must not use multiplexing and quad recording devices for required surveillance, except that they may use:

     (a) Multiplexing or quad recording devices on entrances and exits to the card room; and

     (b) Quad recording devices to record the movement of drop boxes between tables and the count room.

     (2) "Multiplex recording" means combining multiple video inputs into a single signal by cycling through the separate video inputs with the view rotating among different cameras in a predetermined order, recording each video input ((sequentially)) consecutively in the cycle. Multiplex recording does not provide continuous recording of each video input because the amount of time lapse in the cycle depends on the number of video inputs.

     (3) "Quad recording" means four separate video inputs that record continuously and combine into a single signal displayed on one monitor with a view of each video input.

[Statutory Authority: RCW 9.46.070. 07-09-033 (Order 608), § 230-15-300, filed 4/10/07, effective 1/1/08.]


NEW SECTION
WAC 230-15-475   Tips from players and patrons to card room employees.   (1) House-banked card game licensees may allow selected employees to accept tips from players or patrons.

     (2) If licensees allow house-banked card game dealers to accept tips, licensees must ensure that tips are controlled so that only authorized employees receive tips, that tips are properly accounted for, and that tips are maintained separately from all other gambling funds.

     (3) Cage cashiers may accept tips. They must locate their tip containers outside the cage enclosure. Players or patrons must deposit the tips directly into the container. A shift or floor supervisor, security, or an accounting manager who does not work as a cashier must verify the tips cage cashiers receive.

     (4) Employees directly concerned with management, supervision, accounting, security, or surveillance must not ask for, accept, or share any tip originating from players or patrons.

     (5) House-banked card game licensees must:

     (a) Establish and implement procedures for the accounting of tips received by authorized card room employees.

     (b) Fully document the procedures in their internal controls and describe in detail any methods used to allocate tips.

     (c) Establish procedures necessary to ensure that the floor supervisor and surveillance observe card room employees accepting tips. Procedures must include an overt display of received tips, for example tapping the table with the tip before placing it in the tip container.

     (6) Employees must:

     (a) Drop all tips into a locked tip container which prevents the removal of tips except by unlocking the container. Tip containers must remain under camera coverage of the closed circuit television system at all times; and

     (b) Keep all tips received or pool them with tips of all card room employees according to the licensee's internal controls; and

     (c) Redeem all tips received under surveillance at the cashier's cage; and

     (d) Accurately report all tips to their employer as described in the licensee's internal controls.

     (7) Licensees may determine whether employees must retain or pool tips among employees. Employees must redeem all pooled tips under surveillance at the cashier's cage, count room, or a gaming table.

[]


AMENDATORY SECTION(Amending Order 608, filed 4/10/07, effective 1/1/08)

WAC 230-15-485   ((Standards for)) Electronic facsimiles of cards allowed.   (1) House-banked card game licensees may use electronic card facsimiles approved by the director or the director's designee in house-banked card games ((if the system:

     (a) Produces accurate facsimiles of one or more standard deck(s) of cards; and

     (b) Randomly shuffles the cards before each round of play or shoe loading; and

     (c) Contains a backup system that records and displays at least five previous rounds of play; and

     (d) Meets the surveillance requirements for cards explained in WAC 250-15-280; and

     (e) Contains security protocols which prevent unauthorized access; and

     (f) Is designed to prevent the player from playing against the device; and

     (g) Allows testing of the computer software; and

     (h) Operates only under card room internal controls specific to each system; and

     (i) Is tested by a licensed game testing laboratory for compliance with these requirements; and

     (j) Meets any additional technical requirements we require.

     (2) Card room employees must operate the system.

     (3) The manufacturer must pay the costs of laboratory testing)).

     (2) Card room employees must operate the system.

[Statutory Authority: RCW 9.46.070. 07-09-033 (Order 608), § 230-15-485, filed 4/10/07, effective 1/1/08.]


NEW SECTION
WAC 230-15-491   Limiting payouts to dealers for tip or "toke" wagers for odds-based payouts.   (1) A "toke" is a wager made by a player as a tip for the dealer and it is treated as a separate bet.

     (2) House-banked card game licensees may:

     (a) Establish a separate, individual limit on the amount of the payout on a toke for odds-based payouts within the requirements of WAC 230-15-490; and

     (b) Restrict the types of wagers tokes are allowed on and the amounts of tokes.

     (3) Tokes are not included in the calculation of the player or table aggregate payout limits.

[]


AMENDATORY SECTION(Amending Order 608, filed 4/10/07, effective 1/1/08)

WAC 230-15-520   Requirements for fill/credit slips.   (1) Each fill/credit slip must be a ((sequentially)) consecutively prenumbered three-part form in the format we require. We may authorize use of a computer based accounting system which includes a nonrepeating ((sequential)) consecutive numbering system, which fulfills the controls and safeguards of the manual system. House-banked card game licensees must:

     (a) Control and account for each series of fill/credit slips they receive; and

     (b) Ensure the fill/credit slip dispenser is secured in the cashier's cage; and

     (c) Keep each series of fill/credit slips in a locked dispenser that will permit an individual fill/credit slip in the series and its copies to be written on simultaneously while still located in the dispenser, and will discharge the original and duplicate while the triplicate remains in a continuous, unbroken form in the dispenser; and

     (d) Use the forms in ((sequential)) consecutive order and account for all forms; and

     (e) Assign an accounting department employee to be responsible for controlling and accounting for the unused supply of fill/credit slips, placing fill/credit slips in the dispensers, and removing the triplicate copy from the dispensers. Only the accounting department employee may have access to the forms in the dispenser.

     (2) If there is a paper jam, the licensee may allow a security department employee access to the dispenser to clear it.

[Statutory Authority: RCW 9.46.070. 07-09-033 (Order 608), § 230-15-520, filed 4/10/07, effective 1/1/08.]


AMENDATORY SECTION(Amending Order 608, filed 4/10/07, effective 1/1/08)

WAC 230-15-535   Closing tables.   When closing tables, house-banked card game licensees must follow these steps:

     (1) The floor supervisor and the dealer assigned to the gambling table must count the gambling chips and coins. The surveillance department must monitor and record the entire count and closure process.

     (2) The floor supervisor assigned to the gambling table must record the chips and coins counted on a table inventory slip.

     (3) Licensees must use ((sequentially)) consecutively prenumbered three-part forms for table inventory slips. Table inventory slips must be in the format we require and have three parts:

     (a) The original (the closer); and

     (b) The duplicate (the opener); and

     (c) The triplicate (which is transported by security to accounting).

     (4) The floor supervisor and the dealer assigned to the gambling table must sign the table inventory slip, confirming the information recorded at the time of closing.

     (5) After both the dealer and floor supervisor have signed the closer, the dealer must deposit the closer in the drop box attached to the table. The dealer must place the opener face up in the chip tray, arranged so that it is clearly visible. Then the floor supervisor must lock the clear chip tray cover. The chip trays must be under recorded surveillance at all times.

     (6) A security department employee must take the triplicate of the table inventory slip to the accounting department.

     (7) If an error is made on the closer, the preparer must write "VOID" on all copies of the form and forward them to the accounting department.

     (8) If the locked chip trays are transported to the cashier's cage at the end of each gambling day, a cage cashier must determine that all locked chip trays have been returned to the cage and are adequately secured.

[Statutory Authority: RCW 9.46.070. 07-09-033 (Order 608), § 230-15-535, filed 4/10/07, effective 1/1/08.]


AMENDATORY SECTION(Amending Order 608, filed 4/10/07, effective 1/1/08)

WAC 230-15-670   Keeping a master key control box.   (1) House-banked card game licensees may keep a master key control box with access strictly limited to the owner(s), general manager, or other ((authorized)) person(s) authorized by the owner.

     (2) Keys in this key control box may include:

     (a) Extra keys for the department key boxes and restricted areas; and

     (b) Other keys included in the licensee's approved internal controls.

[Statutory Authority: RCW 9.46.070. 07-09-033 (Order 608), § 230-15-670, filed 4/10/07, effective 1/1/08.]

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