PUBLIC PROTECTION CABINET
Department of Charitable Gaming
(Amendment)
820 KAR 1:034. Pulltab dispenser
construction and use.
RELATES
TO: KRS 238.505(5), 238.545(1), (2)
STATUTORY
AUTHORITY: KRS 238.515(2), (9), 238.545(1), (2)
NECESSITY,
FUNCTION, AND CONFORMITY: KRS 238.515(2) and (9) require the Department[Office]
of Charitable Gaming to establish reasonable standards for the conduct of charitable
gaming. KRS 238.545(1)(e) requires the department[office] to
establish standards for the use and control of pulltab dispensers. This administrative
regulation establishes standards for the use and control of pulltab dispensers.
Section
1. Approval of an Automated Pulltab Dispenser. (1) An automated pulltab
dispenser shall not be sold, leased, or otherwise furnished to any person in
the state unless it has been approved by the department[office].
(2)
Before approval by the department[office], a dispenser which is
identical to the dispenser intended to be sold, leased, or otherwise furnished
shall be certified by an independent testing laboratory that the dispenser
satisfies the manufacturing requirements established in Section 2 of this
administrative regulation.
(3)
If granted, approval shall extend only to the specific dispenser model
approved, and any modification shall first be approved by the department[office].
Section
2. Requirements for Automated Pulltab Dispensers. Each pulltab dispenser shall:
(1)
Contain a three (3) prong ground and surge protector, and shall be capable of
withstanding static electricity;
(2)
Accommodate pulltabs of different sizes;
(3)
Be constructed so that customers can see how many pulltabs remain within the
dispenser, or have resettable counters visible to the customer indicating the
number of pulltabs left in each column of the dispenser;
(4)
Have an outlet or tray to catch dispensed pulltabs;
(5)
Accurately dispense the correct number of pulltabs;
(6)
Contain one (1) or more player buttons on the front of the dispenser to
dispense pulltabs if pressed;
(7)
Contain a luminated electronic display to display the value of money deposited;
(8)
Be capable, if a malfunction occurs or the electrical power is interrupted
after the money has been validated, of accurately redisplaying the value of the
money after the malfunction or power is restored;
(9)
Not dispense any credits, or validate, read, or redeem a winning pulltab;
(10)
If using bill acceptors or similar devices that do not return change, clearly
disclose that fact to the customer;
(11)
Not have a video screen or produce audio sounds except for security alarms;
(12)
Not resemble a slot machine or other gambling device;
(13)
Contain the manufacturer’s name, dispenser’s serial number and model number,
and date of manufacture, all of which shall be permanently affixed to the side
of the dispenser;
(14)
Have an on/off switch in an inconspicuous location on the exterior of the
dispenser;
(15)
Not record test sales of pulltabs or money acceptances on the dispenser’s
accounting meters;
(16)
Contain a nonresettable accounting meter for total money validated and for the
total of pulltabs dispensed and shall be capable of retaining this information
for six (6) months after power has been disconnected;
(17)
Contain an EPROM microchip which holds the dispenser’s programming code and
which is identical in all respects to the manufacturer’s EPROM microchip
approved by the department[office];
(18)
Contain a RAM, or an EPROM microchip equipped with a RAM microchip, which shall
maintain the same information as required in subsection (17) of this section
for six (6) months after power has been disconnected. The microchip shall be
installed with a tamper-proof seal inside the dispenser;
(19)
Automatically discontinue operation if any nonresettable accounting meter, RAM
microchip, or an EPROM microchip is disconnected; and
(20)
Contain at least one (1) electronic money validator which shall:
(a)
Only validate United States money;
(b)
Not validate money in denominations in excess of twenty (20) dollars;
(c)
Transmit the value of validated money to the pulltab dispenser;
(d)
Be equipped with mechanisms to ensure that pulltabs will not be dispensed
unless the money is validated and retained;
(e)
Be capable of preventing acceptance of known counterfeit money;
(f)
Return any invalid money to the player;
(g)
Have at least one (1) removable stacker box capable of stacking bills or a
removable drop box contained in a separate locked compartment; and
(h)
Automatically discontinue accepting or validating money if a malfunction occurs
or if electrical power to the dispenser or currency validator is interrupted.
Section
3. Automated Pulltab Dispensing Limitations. (1)(a) A charitable organization
shall not use the dispenser until the charitable organization which previously
used the dispenser has removed its pulltabs and money from the dispenser.
(2)
Each charitable organization operating the dispenser shall place upon the
dispenser an identification label which displays the organization’s name and
license number.
(3)
The keys to open the locked doors to the dispenser’s ticket dispensing area and
cash box shall be solely in the possession and control of the designated
chairperson of the charitable organization conducting the charitable gaming
session.
(4)
The entire deal of pulltabs shall be sold from the dispenser and shall not be
sold on the floor.
(5)
All pulltabs in any one column shall have the same serial number.
(6)
A licensee shall not display, use, or otherwise furnish a dispenser which has
in any manner been tampered with or which otherwise may deceive the public or
affect a person’s chances of winning.
(7)
A pulltab deal shall not be placed in the dispenser until the entire deal of
pulltabs previously in the dispenser has been played out or permanently
removed.
(8)
After placement in the dispenser, a pulltab shall not be removed from the
dispenser, except for those pulltabs:
(a)
Actually played by consumers;
(b)
Removed by department[office] representatives or law enforcement
agencies;
(c)
Temporarily removed during necessary repair, and maintenance; or
(d)
Removed at the end of the gaming session.
(9)
At least one (1) chairperson who is listed on the application for licensure
shall be present at all times a pulltab dispenser is in use and shall be
responsible for the administration and conduct of the pulltab dispenser.
(10)
An organization utilizing a pulltab dispenser at its office location or owned
premises shall only utilize the dispenser during business hours.
Section
4. Inspection. The department[office] or its authorized
representatives may examine and inspect any automated pulltab dispenser. The
examination and inspection shall include immediate access to the dispenser and
unlimited inspection of all parts of the dispenser.
Section
5. Recordkeeping. (1) Each licensed charitable organization shall maintain the
following information in connection with its use of an automated pulltab
dispenser:
(a)
Date of purchase or lease of each dispenser;
(b)
Model and serial number of each dispenser;
(c)
Purchase or lease price of each dispenser;
(d)
Name, address, and license number of the distributor from whom the dispenser
was purchased, leased or otherwise furnished; and
(e)
A record of all maintenance and repairs relating to the dispenser.
(2)
Manufacturers and distributors shall maintain the following information in
connection with each sale or lease of a dispenser:
(a)
Date of sale or lease;
(b)
Quantity sold or leased;
(c)
Cost per dispenser;
(d)
Model and serial number of each dispenser; and
(e)
Name, address, and license number of the purchaser or lessee.
(3)
All records, reports, and receipts relating to dispenser sales, maintenance and
repairs required to be maintained shall be retained for a period of three (3)
years for examination by the department[office].
Section
6. Defects. (1)(a) If the department[office] detects or discovers
any defect or malfunction with the dispenser, that is not temporary in nature
or affects the integrity or security of the pulltab game, the department[office]
shall direct the manufacturer, distributor or organization to cease the sale,
lease, or use of the dispenser, as applicable, and shall require the
manufacturer to correct the defect, malfunction, or problem or recall the
dispenser immediately upon notification by the department[office]
to the manufacturer.
(b)
If the manufacturer, distributor, or organization detects or discovers any
defect or malfunction with the dispenser, which is not temporary in nature, the
entity shall immediately remove the dispenser from use and notify the department[office]
of that action.
SCOTT
JONES, Commissioner
AMBROSE
WILSON IV, Secretary
APPROVED
BY AGENCY: August 12, 2015
FILED
WITH LRC: August 14, 2015 at 11 a.m.
PUBLIC
HEARING AND PUBLIC COMMENT PERIOD: A public hearing on this administrative
regulation shall be held on September 24, 2015 at 10:30 a.m., Eastern Time at
the Department of Charitable Gaming, 132 Brighton Park Boulevard, Frankfort,
Kentucky 40601. Individuals interested in being heard at this hearing shall notify
this agency in writing by five (5) workdays prior to the hearing of their
intent to attend. If no notification of intent to attend the hearing is
received by that date, the hearing may be canceled. This hearing is open to the
public. Any person who wishes to be heard will be given an opportunity to
comment on the proposed administrative regulation. A transcript of the public
hearing will not be made unless a written request for a transcript is made. If
you do not wish to be heard at the public hearing, you may submit written
comments on the proposed administrative regulation. Written comments shall be
accepted until the end of the calendar day on September 30, 2015. Send written
notification of intent to be heard at the public hearing or written comments on
the proposed administrative regulation to the contact person.
CONTACT
PERSON: Noelle J. Bailey, General Counsel, Department of Charitable Gaming, 132
Brighton Park Boulevard, Frankfort, Kentucky 40601, phone (502) 573-5528, fax
(502) 573-6625.
REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT
Contact
person: Noelle J. Bailey
(1)
Provide a brief summary of:
(a)
What this administrative regulation does: This administrative regulation establishes standards
for the construction, use, and control of paper pulltab dispensers.
(b)
The necessity of this administrative regulation: This regulation is necessary
to establish construction standards and usage standards for operating paper
pulltab dispensers.
(c)
How this administrative regulation conforms to the content of the authorizing
statutes: The statutory authorities for this regulation are KRS 238.515(2),
(9), and KRS 238.545(1), (2). KRS 238.515 (2) and (9) set forth the powers of
the department to establish and enforce reasonable standards for the conduct of
charitable gaming and the operation of charitable gaming facilities and, to "promulgate
administrative regulations which are necessary to carry out the purposes and
intent of [KRS Chapter 238]." KRS 238.545(1) and (2) allow for the use of
paper pulltab dispensers. This regulation determines the construction of those
dispensers and how they can be used.
(d)
How this administrative regulation currently assists or will assist in the
effective administration of the statutes: This administrative regulation
facilitates effective administration of the statutes by providing standards for
the construction and use of paper pulltab dispensers.
(2)
If this is an amendment to an existing administrative regulation, provide a
brief summary of:
(a)
How the amendment will change this existing administrative regulation: HB 91
passed during the last legislative session allows for use of paper pulltab
dispensers at times other than during a gaming occasion. The regulation
amendment clarifies that a chairperson must still be present at all times the
dispenser is in use and clarifies that the pulltab dispensers should only be
operated during the business hours of the organization’s office location.
(b)
The necessity of the amendment to this administrative regulation: This
amendment is necessary as a result of HB 91 allowing for use of these
dispensers outside of bingo sessions.
(c)
How the amendment conforms to the content of the authorizing statutes: The statutory
authorities for this regulation are KRS 238.515(2), (9), and KRS 238.545(1),
(2). KRS 238.515 (2) and (9) set forth the powers of the department to
establish and enforce reasonable standards for the conduct of charitable gaming
and the operation of charitable gaming facilities and, to "promulgate
administrative regulations which are necessary to carry out the purposes and
intent of [KRS Chapter 238]." KRS 238.545(1) and (2) allow for the use of
paper pulltab dispensers. This regulation determines the construction of those
dispensers and how they can be used. This regulation amendment sets forth use
standards after the passage of HB 91 which changed KRS 238.545 to allow for the
use of paper pulltab dispensers outside of bingo sessions.
(d)
How the amendment will assist in the effective administration of the statutes: The
amendment sets forth parameters and standards for the use of paper pulltab
dispensers and reiterates charitable gaming law requiring the presence of a
chairperson at all times the dispenser is in operation.
(3)
List the type and number of individuals, businesses, organizations, or state
and local governments affected by this administrative regulation: This
amendment will impact charitable organizations utilizing paper pulltab
dispensers. There are currently 603 licensed organizations, but not all of
those utilize paper dispensers. They are mainly used by Veteran’s
organizations.
(4)
Provide an analysis of how the entities identified in Question (3) above will
be impacted by either the implementation of this administrative regulation, if
new, or by the change, if it is an amendment, including:
(a)
List the actions that each of the regulated entities identified in Question (3)
will have to take to comply with this administrative regulation or amendment: The
organization will be required to have a chairperson there at all times the
dispenser is in use.
(b)
In complying with this administrative regulation or amendment, how much will it
cost each of the entities identified in Question (3): There should be no cost
associated.
(c)
As a result of compliance, what benefits will accrue to the entities identified
in Question (3): The dispenser would likely replace use of a bartender or other
chairperson handing out paper pulltabs. This will lead to better tracking and
accountability of money and free up the chairperson to do other things.
(5)
Provide an estimate of how much it will cost to implement this administrative
regulation:
(a)
Initially: There will be no cost to implement this amendment to the
administrative regulation.
(b)
On a continuing basis: There should be no additional cost on a continuing
basis.
(6)
What is the source of the funding to be used in the implementation and
enforcement of this administrative regulation: There is no additional funding
necessary to implement this amendment to the administrative regulation. There
will be no additional funding necessary to enforce the provisions of the
amended regulation.
(7)
Provide an assessment of whether an increase in fees or funding will be
necessary to implement this administrative regulation, if new, or by change, if
it is an amendment: There will be no increase in fees or funding necessary to
implement this amendment to the administrative regulation.
(8)
State whether or not this administrative regulation establishes any fees or
directly or indirectly increases any fees: This amendment to the regulation
does not establish any new fees or directly or indirectly increase any fees.
(9)
TIERING: Is tiering applied? No. This regulation applies equally to all
organizations wishing to utilize pulltab dispensers at their office or owned
premises.
FISCAL NOTE ON STATE AND
LOCAL GOVERNMENT
1.
What units, parts, or divisions of state or local government (including cities,
counties, fire departments, or school districts) will be impacted by this
administrative regulation? The Kentucky Department of Charitable Gaming as
implementer of this regulation.
2.
Identify each state or federal statute or regulation that requires or
authorizes the action taken by the administrative regulation. KRS 238.515 and
KRS 238.545.
3.
Estimate the effect of this administrative regulation on the expenditures and
revenues of a state or local government agency (including cities, counties,
fire departments, or school districts) for the first full year the
administrative regulation is to be in effect. There should be no effect on the
expenditures or revenues of any government agency.
(a)
How much revenue will this administrative regulation generate for the state or
local government (including cities, counties, fire departments, or school
districts) for the first year? The amendment to the regulation should not
generate revenue in the first year or in subsequent years.
(b)
How much revenue will this administrative regulation generate for the state or
local government (including cities, counties, fire departments, or school
districts) for subsequent years? See response to (a) above.
(c)
How much will it cost to administer this program this program for the first
year? It is not anticipated that that there will be any cost in administering the
program that this regulation relates to.
(d)
How much will it cost to administer this program in subsequent years? See
response to (c) above.
Note: If specific
dollar estimates cannot be determined, provide a brief narrative to explain the
fiscal impact of this administrative regulation.
Revenues
(+/-): Not applicable; see response to (c) above.
Expenditures
(+/-): Not applicable; see response to (c) above.
Other
explanation: There should be no fiscal impact due to the amendment.
