S-0339.1  _______________________________________________

 

                         SENATE BILL 5317

          _______________________________________________

 

State of Washington      53rd Legislature     1993 Regular Session

 

By Senators Skratek and Haugen

 

Read first time 01/22/93.  Referred to Committee on Labor & Commerce.

 

Renaming the gambling commission, the horse racing commission, and the liquor control board as the gambling and liquor control board.


    AN ACT Relating to obsolete references; amending RCW 9.41.300, 9.46.0201, 9.46.0205, 9.46.0209, 9.46.0217, 9.46.0221, 9.46.0233, 9.46.0261, 9.46.0273, 9.46.0281, 9.46.0311, 9.46.0315, 9.46.0321, 9.46.0331, 9.46.0335, 9.46.0341, 9.46.0345, 9.46.0351, 9.46.0361, 9.46.060, 9.46.070, 9.46.075, 9.46.077, 9.46.080, 9.46.085, 9.46.090, 9.46.095, 9.46.100, 9.46.110, 9.46.116, 9.46.120, 9.46.130, 9.46.140, 9.46.150, 9.46.153, 9.46.158, 9.46.160, 9.46.170, 9.46.198, 9.46.210, 9.46.220, 9.46.225, 9.46.250, 9.46.285, 9.46.293, 9.46.300, 9.46.310, 9.46.350, 9.46.360, 10.93.020, 19.02.040, 19.02.050, 19.09.020, 19.126.070, 36.27.020, 42.17.2401, 43.03.028, 43.82.010, 51.16.210, 66.04.010, 66.08.020, 66.08.022, 66.08.075, 66.08.230, 66.12.190, 66.16.010, 66.24.010, 66.24.160, 66.24.185, 66.24.204, 66.24.206, 66.24.210, 66.24.260, 66.24.270, 66.24.480, 66.24.481, 66.24.490, 66.24.495, 66.28.040, 66.28.045, 66.40.030, 66.40.140, 66.44.190, 66.44.292, 66.44.310, 66.44.350, 67.16.010, 67.16.020, 67.16.040, 67.16.050, 67.16.060, 67.16.075, 67.16.100, 67.16.101, 67.16.102, 67.16.105, 67.16.110, 67.16.130, 67.16.140, 67.16.150, 67.16.160, 67.16.175, 67.16.190, 67.16.200, 67.16.230, 67.16.300, 67.70.055, 67.70.070, and 82.04.350; and reenacting and amending RCW 9.46.230 and 51.12.020.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

 

    Sec. 1.  RCW 9.41.300 and 1985 c 428 s 2 are each amended to read as follows:

    (1) It is unlawful for any person to enter the following places when he or she knowingly possesses or knowingly has under his or her control a firearm:

    (a) The restricted access areas of a jail, or of a law enforcement facility, or any place used for the confinement of a person (i) arrested for, charged with, or convicted of an offense, (ii) charged with being or adjudicated to be a juvenile offender as defined in RCW 13.40.020, (iii) held for extradition or as a material witness, or (iv) otherwise confined pursuant to an order of a court, except an order under chapter 13.32A or 13.34 RCW.  Restricted access areas do not include common areas of egress or ingress open to the general public;

    (b) A courtroom or judge's chamber, while either is being used for any judicial proceeding.  This does not include common areas of egress and ingress of the courthouse;

    (c) The restricted access areas of a public mental health facility certified by the department of social and health services for inpatient hospital care and state institutions for the care of the mentally ill, excluding those facilities solely for evaluation and treatment.  Restricted access areas do not include common areas of egress and ingress open to the general public; or

    (d) That portion of an establishment classified by the state gambling and liquor control board as off-limits to persons under twenty-one years of age.

    (2) Notwithstanding RCW 9.41.290, cities, towns, counties, and other municipalities may enact laws and ordinances:

    (a) Restricting the discharge of firearms in any portion of their respective jurisdictions where there is a reasonable likelihood that humans, domestic animals, or property will be jeopardized.  Such laws and ordinances shall not abridge the right of the individual guaranteed by Article I, section 24 of the state Constitution to bear arms in defense of self or others; and

    (b) Restricting the possession of firearms in any stadium or convention center, operated by a city, town, county, or other municipality, except that such restrictions shall not apply to:

    (i) Any firearm in the possession of a person licensed under RCW 9.41.070; or

    (ii) Any showing, demonstration, or lecture involving the exhibition of firearms.

    (3) The perimeter of the premises of any specific location covered by subsection (1) of this section shall be posted at reasonable intervals to alert the public as to the existence of any law restricting the possession of firearms on the premises.

    (4) Subsection (1) of this section does not apply to:

    (a) A person engaged in military activities sponsored by the federal or state governments, while engaged in official duties;

    (b) Law enforcement personnel; or

    (c) Security personnel while engaged in official duties.

    (5) Subsection (1)(a) of this section does not apply to a person licensed pursuant to RCW 9.41.070 who, upon entering the place or facility, directly and promptly proceeds to the administrator of the facility or the administrator's designee and obtains written permission to possess the firearm while on the premises or checks his or her firearm.  The person may reclaim the firearms upon leaving but must immediately and directly depart from the place or facility.

    (6) Subsection (1)(b) of this section does not apply to a judge or court employee or to any person licensed under RCW 9.41.070 who, before entering the restricted area, directly and promptly proceeds to the court administrator or the administrator's designee and obtains written permission to possess the firearm.

    (7) Subsection (1)(c) of this section does not apply to any administrator or employee of the facility or to any person who, upon entering the place or facility, directly and promptly proceeds to the administrator of the facility or the administrator's designee and obtains written permission to possess the firearm while on the premises.

    (8) Subsection (1)(d) of this section does not apply to the proprietor of the premises or his or her employees while engaged in their employment.

    (9) Any person violating subsection (1) of this section is guilty of a misdemeanor.

 

    Sec. 2.  RCW 9.46.0201 and 1987 c 4 s 2 are each amended to read as follows:

    "Amusement game," as used in this chapter, means a game played for entertainment in which:

    (1) The contestant actively participates;

    (2) The outcome depends in a material degree upon the skill of the contestant;

    (3) Only merchandise prizes are awarded;

    (4) The outcome is not in the control of the operator;

    (5) The wagers are placed, the winners are determined, and a distribution of prizes or property is made in the presence of all persons placing wagers at such game; and

    (6) Said game is conducted or operated by any agricultural fair, person, association, or organization in such manner and at such locations as may be authorized by rules ((and regulations)) adopted by the ((commission)) board pursuant to this chapter ((as now or hereafter amended)).

    Cake walks as commonly known and fish ponds as commonly known shall be treated as amusement games for all purposes under this chapter.

 

    Sec. 3.  RCW 9.46.0205 and 1987 c 4 s 3 are each amended to read as follows:

    "Bingo," as used in this chapter, means a game conducted only in the county within which the organization is principally located in which prizes are awarded on the basis of designated numbers or symbols on a card conforming to numbers or symbols selected at random and in which no cards are sold except at the time and place of said game, when said game is conducted by a bona fide charitable or nonprofit organization which does not conduct or allow its premises to be used for conducting bingo on more than three occasions per week and which does not conduct bingo in any location which is used for conducting bingo on more than three occasions per week, or if an agricultural fair authorized under chapters 15.76 and 36.37 RCW, which does not conduct bingo on more than twelve consecutive days in any calendar year, and except in the case of any agricultural fair as authorized under chapters 15.76 and 36.37 RCW, no person other than a bona fide member or an employee of said organization takes any part in the management or operation of said game, and no person who takes any part in the management or operation of said game takes any part in the management or operation of any game conducted by any other organization or any other branch of the same organization, unless approved by the ((commission)) board, and no part of the proceeds thereof inure to the benefit of any person other than the organization conducting said game.  For the purposes of this section, the organization shall be deemed to be principally located in the county within which it has its primary business office.  If the organization has no business office, the organization shall be deemed to be located in the county of principal residence of its chief executive officer:  PROVIDED, That any organization which is conducting any licensed and established bingo game in any locale as of January 1, 1981, shall be exempt from the requirement that such game be conducted in the county in which the organization is principally located.

 

    Sec. 4.  RCW 9.46.0209 and 1987 c 4 s 4 are each amended to read as follows:

    "Bona fide charitable or nonprofit organization," as used in this chapter, means:  (1) Any organization duly existing under the provisions of chapters 24.12, 24.20, or 24.28 RCW, any agricultural fair authorized under the provisions of chapters 15.76 or 36.37 RCW, or any nonprofit corporation duly existing under the provisions of chapter 24.03 RCW for charitable, benevolent, eleemosynary, educational, civic, patriotic, political, social, fraternal, athletic or agricultural purposes only, or any nonprofit organization, whether incorporated or otherwise, when found by the ((commission)) board to be organized and operating for one or more of the aforesaid purposes only, all of which in the opinion of the ((commission)) board have been organized and are operated primarily for purposes other than the operation of gambling activities authorized under this chapter; or (2) any corporation which has been incorporated under Title 36 U.S.C. and whose principal purposes are to furnish volunteer aid to members of the armed forces of the United States and also to carry on a system of national and international relief and to apply the same in mitigating the sufferings caused by pestilence, famine, fire, floods, and other national calamities and to devise and carry on measures for preventing the same.  Such an organization must have been organized and continuously operating for at least twelve calendar months immediately preceding making application for any license to operate a gambling activity, or the operation of any gambling activity authorized by this chapter for which no license is required.  It must have not less than fifteen bona fide active members each with the right to an equal vote in the election of the officers, or board members, if any, who determine the policies of the organization in order to receive a gambling license.  An organization must demonstrate to the ((commission)) board that it has made significant progress toward the accomplishment of the purposes of the organization during the twelve consecutive month period preceding the date of application for a license or license renewal.  The fact that contributions to an organization do not qualify for charitable contribution deduction purposes or that the organization is not otherwise exempt from payment of federal income taxes pursuant to the internal revenue code of 1954, as amended, shall constitute prima facie evidence that the organization is not a bona fide charitable or nonprofit organization for the purposes of this section.

    Any person, association or organization which pays its employees, including members, compensation other than is reasonable therefor under the local prevailing wage scale shall be deemed paying compensation based in part or whole upon receipts relating to gambling activities authorized under this chapter and shall not be a bona fide charitable or nonprofit organization for the purposes of this chapter.

 

    Sec. 5.  RCW 9.46.0217 and 1987 c 4 s 6 are each amended to read as follows:

    "Commercial stimulant," as used in this chapter, means an activity is operated as a commercial stimulant, for the purposes of this chapter, only when it is an incidental activity operated in connection with, and incidental to, an established business, with the primary purpose of increasing the volume of sales of food or drink for consumption on that business premises.  The ((commission)) board may by rule establish guidelines and criteria for applying this definition to its applicants and licensees for gambling activities authorized by this chapter as commercial stimulants.

 

    Sec. 6.  RCW 9.46.0221 and 1987 c 4 s 7 are each amended to read as follows:

    "((Commission)) Board," as used in this chapter, means the ((Washington state)) gambling ((commission)) and liquor control board created in ((RCW 9.46.040)) chapter 43.-- RCW (sections 1 through 3, 6, 13, and 20 of S-0336.2/93).

 

    Sec. 7.  RCW 9.46.0233 and 1987 c 4 s 24 are each amended to read as follows:

    (1) "Fund raising event," as used in this chapter, means a fund raising event conducted during any seventy-two consecutive hours but exceeding twenty-four consecutive hours and not more than once in any calendar year or a fund raising event conducted not more than twice each calendar year for not more than twenty-four consecutive hours each time by a bona fide charitable or nonprofit organization as defined in RCW 9.46.0209 other than any agricultural fair referred to thereunder, upon authorization therefor by the ((commission)) board, which the legislature hereby authorizes to issue a license therefor, with or without fee, permitting the following activities, or any of them, during such event:  Bingo, amusement games, contests of chance, lotteries and raffles:  PROVIDED, That (a) gross wagers and bets received by the organization less the amount of money paid by the organization as winnings and for the purchase cost of prizes given as winnings do not exceed ten thousand dollars during the total calendar days of such fund raising event in the calendar year; (b) such activities shall not include any mechanical gambling or lottery device activated by the insertion of a coin or by the insertion of any object purchased by any person taking a chance by gambling in respect to the device; (c) only bona fide members of the organization who are not paid for such service shall participate in the management or operation of the activities, and all income therefrom, after deducting the cost of prizes and other expenses, shall be devoted solely to the lawful purposes of the organization; and (d) such organization shall notify the appropriate local law enforcement agency of the time and place where such activities shall be conducted.  The ((commission)) board shall require an annual information report setting forth in detail the expenses incurred and the revenue received relative to the activities permitted.

    (2) Bona fide charitable or nonprofit organizations holding a license to conduct a fund raising event may join together to jointly conduct a fund raising event if:

    (a) Approval to do so is received from the ((commission)) board; and

    (b) The method of dividing the income and expenditures and the method of recording and handling of funds are disclosed to the ((commission)) board in the application for approval of the joint fund raising event and are approved by the ((commission)) board.

    The gross wagers and bets received by the organizations less the amount of money paid by the organizations as winnings and for the purchase costs of prizes given as winnings may not exceed ten thousand dollars during the total calendar days of such event.  The net receipts each organization receives shall count against the organization's annual limit stated in this subsection.

    A joint fund raising event shall count against only the lead organization or organizations receiving fifty percent or more of the net receipts for the purposes of the number of such events an organization may conduct each year.

    The ((commission)) board may issue a joint license for a joint fund raising event and charge a license fee for such license according to a schedule of fees adopted by the ((commission)) board which reflects the added cost to the ((commission)) board of licensing more than one licensee for the event.

 

    Sec. 8.  RCW 9.46.0261 and 1987 c 4 s 16 are each amended to read as follows:

    "Member" and "bona fide member," as used in this chapter, mean a person accepted for membership in an organization eligible to be licensed by the ((commission)) board under this chapter upon application, with such action being recorded in the official minutes of a regular meeting or who has held full and regular membership status in the organization for a period of not less than twelve consecutive months prior to participating in the management or operation of any gambling activity.  Such membership must in no way be dependent upon, or in any way related to, the payment of consideration to participate in any gambling activity.

    Member or bona fide member shall include only members of an organization's specific chapter or unit licensed by the ((commission)) board or otherwise actively conducting the gambling activity:  PROVIDED, That:

    (1) Members of chapters or local units of a state, regional or national organization may be considered members of the parent organization for the purpose of a gambling activity conducted by the parent organization, if the rules of the parent organization so permit;

    (2) Members of a bona fide auxiliary to a principal organization may be considered members of the principal organization for the purpose of a gambling activity conducted by the principal organization.  Members of the principal organization may also be considered members of its auxiliary for the purpose of a gambling activity conducted by the auxiliary; and

    (3) Members of any chapter or local unit within the jurisdiction of the next higher level of the parent organization, and members of a bona fide auxiliary to that chapter or unit, may assist any other chapter or local unit of that same organization licensed by the ((commission)) board in the conduct of gambling activities.

    No person shall be a member of any organization if that person's primary purpose for membership is to become, or continue to be, a participant in, or an operator or manager of, any gambling activity or activities.

 

    Sec. 9.  RCW 9.46.0273 and 1987 c 4 s 19 are each amended to read as follows:

    "Punch boards" and "pull-tabs," as used in this chapter, shall be given their usual and ordinary meaning as of July 16, 1973, except that such definition may be revised by the ((commission)) board pursuant to rules ((and regulations promulgated)) adopted pursuant to this chapter.

 

    Sec. 10.  RCW 9.46.0281 and 1987 c 4 s 21 are each amended to read as follows:

    "Social card game," as used in this chapter, means a card game, including but not limited to the game commonly known as "Mah-Jongg," which constitutes gambling and contains each of the following characteristics:

    (1) There are two or more participants and each of them are players.  However, no business with a public cardroom on its premises may have more than five separate tables at which card games are played;

    (2) A player's success at winning money or other thing of value by overcoming chance is in the long run largely determined by the skill of the player;

    (3) No organization, corporation or person collects or obtains or charges any percentage of or collects or obtains any portion of the money or thing of value wagered or won by any of the players:  PROVIDED, That this subsection shall not preclude a player from collecting or obtaining his or her winnings;

    (4) No organization or corporation, or person collects or obtains any money or thing of value from, or charges or imposes any fee upon, any person which either enables him or her to play or results in or from his or her playing in excess of two dollars per half hour of playing time by that person collected in advance:  PROVIDED, That a fee may also be charged for entry into a tournament for prizes, which fee shall not exceed fifty dollars, including all separate fees which might be paid by a player for various phases or events of the tournament:  PROVIDED FURTHER, That this subsection shall not apply to the membership fee in any bona fide charitable or nonprofit organization;

    (5) The type of card game is one specifically approved by the ((commission)) board pursuant to RCW 9.46.070; and

    (6) The extent of wagers, money or other thing of value which may be wagered or contributed by any player does not exceed the amount or value specified by the ((commission)) board pursuant to RCW 9.46.070.

 

    Sec. 11.  RCW 9.46.0311 and 1987 c 4 s 26 are each amended to read as follows:

    The legislature hereby authorizes bona fide charitable or nonprofit organizations to conduct bingo games, raffles, amusement games, and fund raising events, and to utilize punch boards and pull-tabs and to allow their premises and facilities to be used by only members, their guests, and members of a chapter or unit organized under the same state, regional, or national charter or constitution, to play social card games authorized by the ((commission)) board, when licensed, conducted or operated pursuant to the provisions of this chapter and rules ((and regulations)) adopted pursuant thereto.

 

    Sec. 12.  RCW 9.46.0315 and 1991 c 192 s 4 are each amended to read as follows:

    Bona fide charitable or bona fide nonprofit organizations organized primarily for purposes other than the conduct of raffles, are hereby authorized to conduct raffles without obtaining a license to do so from the ((commission)) board when such raffles are held in accordance with all other requirements of this chapter, other applicable laws, and rules of the ((commission)) board; when gross revenues from all such raffles held by the organization during the calendar year do not exceed five thousand dollars; and when tickets to such raffles are sold only to, and winners are determined only from among, the regular members of the organization conducting the raffle.  The organization may provide unopened containers of beverages containing alcohol as raffle prizes if the appropriate permit has been obtained from the ((liquor control)) board:  PROVIDED, That the term members for this purpose shall mean only those persons who have become members prior to the commencement of the raffle and whose qualification for membership was not dependent upon, or in any way related to, the purchase of a ticket, or tickets, for such raffles.

 

    Sec. 13.  RCW 9.46.0321 and 1987 c 4 s 28 are each amended to read as follows:

    Bona fide charitable or bona fide nonprofit organizations organized primarily for purposes other than the conduct of such activities are hereby authorized to conduct bingo, raffles, and amusement games, without obtaining a license to do so from the ((commission)) board but only when:

    (1) Such activities are held in accordance with all other requirements of this chapter, other applicable laws, and rules of the ((commission)) board;

    (2) Said activities are, alone or in any combination, conducted no more than twice each calendar year and over a period of no more than twelve consecutive days each time, notwithstanding the limitations of RCW 9.46.0205:  PROVIDED, That a raffle conducted under this subsection may be conducted for a period longer than twelve days;

    (3) Only bona fide members of that organization, who are not paid for such services, participate in the management or operation of the activities;

    (4) Gross revenues to the organization from all the activities together do not exceed five thousand dollars during any calendar year;

    (5) All revenue therefrom, after deducting the cost of prizes and other expenses of the activity, is devoted solely to the purposes for which the organization qualifies as a bona fide charitable or nonprofit organization;

    (6) The organization gives notice at least five days in advance of the conduct of any of the activities to the local police agency of the jurisdiction within which the activities are to be conducted of the organization's intent to conduct the activities, the location of the activities, and the date or dates they will be conducted; and

    (7) The organization conducting the activities maintains records for a period of one year from the date of the event which accurately show at a minimum the gross revenue from each activity, details of the expenses of conducting the activities, and details of the uses to which the gross revenue therefrom is put.

 

    Sec. 14.  RCW 9.46.0331 and 1991 c 287 s 1 are each amended to read as follows:

    The legislature hereby authorizes any person to conduct or operate amusement games when licensed and operated pursuant to the provisions of this chapter and rules ((and regulations)) adopted by the ((commission)) board at such locations as the ((commission)) board may authorize.  The rules shall provide for at least the following:

    (1) Persons other than bona fide charitable or bona fide nonprofit organizations shall conduct amusement games only after obtaining a special amusement game license from the ((commission)) board.

    (2) Amusement games may be conducted under such a license only as a part of, and upon the site of:

    (a) Any agricultural fair as authorized under chapter 15.76 or 36.37 RCW; or

    (b) A civic center of a county, city, or town; or

    (c) A world's fair or similar exposition that is approved by the bureau of international expositions at Paris, France; or

    (d) A community-wide civic festival held not more than once annually and sponsored or approved by the city, town, or county in which it is held; or

    (e) A commercial exposition organized and sponsored by an organization or association representing the retail sales and service operators conducting business in a shopping center or other commercial area developed and operated for retail sales and service, but only upon a parking lot or similar area located in said shopping center or commercial area for a period of no more than seventeen consecutive days by any licensee during any calendar year; or

    (f) An amusement park.  An amusement park is a group of activities, at a permanent location, to which people go to be entertained through a combination of various mechanical or aquatic rides, theatrical productions, motion picture, and/or slide show presentations with food and drink service.  The amusement park must include at least five different mechanical((,)) or aquatic rides, three additional activities, and the gross receipts must be primarily from these amusement activities; or

    (g) Within a regional shopping center.  A regional shopping center is a shopping center developed and operated for retail sales and service by retail sales and service operators and consisting of more than six hundred thousand gross square feet not including parking areas.  Amusement games conducted as a part of, and upon the site of, a regional shopping center shall not be subject to the prohibition on revenue sharing set forth in RCW 9.46.120(2); or

    (h) A location that possesses a valid license from the ((Washington state liquor [control])) board and prohibits minors on their premises; or

    (i) Movie theaters, bowling alleys, miniature golf course facilities, and amusement centers.  For the purposes of this section an amusement center shall be defined as a permanent location whose primary source of income is from the operation of ten or more amusement devices; or

    (j) Any business whose primary activity is to provide food service for on premises consumption and who offers family entertainment which includes at least three of the following activities:  Amusement devices; theatrical productions; mechanical rides; motion pictures; and slide show presentations.

    (3) No amusement games may be conducted in any location except in conformance with local zoning, fire, health, and similar regulations.  In no event may the licensee conduct any amusement games at any of the locations set out in subsection (2) of this section without first having obtained the written permission to do so from the person or organization owning the premises or an authorized agent thereof, and from the persons sponsoring the fair, exhibition, commercial exhibition, or festival, or from the city or town operating the civic center, in connection with which the games are to be operated.

    (4) In no event may a licensee conduct any amusement games at the location described in subsection (2)(g) of this section, without, at the location of such games, providing adult supervision during all hours the licensee is open for business at such location, prohibiting school-age minors from entry during school hours, maintaining full-time personnel whose responsibilities include maintaining security and daily machine maintenance, and providing for hours for the close of business at such location that are no later than 10:00 p.m. on Fridays and Saturdays and on all other days that are the same as those of the regional shopping center in which the licensee is located.

    (5) In no event may a licensee conduct any amusement game at a location described in subsection (2)(i) or (j) of this section, without, at the location of such games, providing adult supervision during all hours the licensee is open for business at such location, prohibiting school-age minors from playing licensed amusement games during school hours, maintaining full-time personnel whose responsibilities include maintaining security and daily machine maintenance, and prohibiting minors from playing the amusement games after 10:00 p.m. on any day.

 

    Sec. 15.  RCW 9.46.0335 and 1987 c 4 s 31 are each amended to read as follows:

    The legislature hereby authorizes any person, association, or organization to conduct sports pools without a license to do so from the ((commission)) board but only when the outcome of which is dependent upon the score, or scores, of a certain athletic contest and which is conducted only in the following manner:

    (1) A board or piece of paper is divided into one hundred equal squares, each of which constitutes a chance to win in the sports pool and each of which is offered directly to prospective contestants at one dollar or less;

    (2) The purchaser of each chance or square signs his or her name on the face of each square or chance he or she purchases; and

    (3) At some time not later than prior to the start of the subject athletic contest the pool is closed and no further chances in the pool are sold;

    (4) After the pool is closed a prospective score is assigned by random drawing to each square;

    (5) All money paid by entrants to enter the pool less taxes is paid out as the prize or prizes to those persons holding squares assigned the winning score or scores from the subject athletic contest;

    (6) The sports pool board is available for inspection by any person purchasing a chance thereon, the commission, or by any law enforcement agency upon demand at all times prior to the payment of the prize;

    (7) The person or organization conducting the pool is conducting no other sports pool on the same athletic event; and

    (8) The sports pool conforms to any rules ((and regulations)) of the ((commission)) board applicable thereto.

 

    Sec. 16.  RCW 9.46.0341 and 1987 c 4 s 32 are each amended to read as follows:

    The legislature hereby authorizes bona fide charitable or nonprofit organizations to conduct, without the necessity of obtaining a permit or license to do so from the ((commission)) board, golfing sweepstakes permitting wagers of money, and the same shall not constitute such gambling or lottery as otherwise prohibited in this chapter, or be subject to civil or criminal penalties thereunder, but this only when the outcome of such golfing sweepstakes is dependent upon the score, or scores, or the playing ability, or abilities, of a golfing contest between individual players or teams of such players, conducted in the following manner:

    (1) Wagers are placed by buying tickets on any players in a golfing contest to "win," "place," or "show" and those holding tickets on the three winners may receive a payoff similar to the system of betting identified as parimutuel, such moneys placed as wagers to be used primarily as winners' proceeds, except moneys used to defray the expenses of such golfing sweepstakes or otherwise used to carry out the purposes of such organization; or

    (2) Participants in any golfing contest(s) pay a like sum of money into a common fund on the basis of attaining a stated number of points ascertainable from the score of such participants, and those participants attaining such stated number of points share equally in the moneys in the common fund, without any percentage of such moneys going to the sponsoring organization; and

    (3) Participation is limited to members of the sponsoring organization and their bona fide guests.

 

    Sec. 17.  RCW 9.46.0345 and 1987 c 4 s 33 are each amended to read as follows:

    The legislature hereby authorizes bowling establishments to conduct, without the necessity of obtaining a permit or license to do so, as a commercial stimulant, a bowling activity which permits bowlers to purchase tickets from the establishment for a predetermined and posted amount of money, which tickets are then selected by the luck of the draw and the holder of the matching ticket so drawn has an opportunity to bowl a strike and if successful receives a predetermined and posted monetary prize:  PROVIDED, That all sums collected by the establishment from the sale of tickets shall be returned to purchasers of tickets and no part of the proceeds shall inure to any person other than the participants winning in the game or a recognized charity.  The tickets shall be sold, and accounted for, separately from all other sales of the establishment.  The price of any single ticket shall not exceed one dollar.  Accounting records shall be available for inspection during business hours by any person purchasing a chance thereon, by the ((commission)) board or its representatives, or by any law enforcement agency.

 

    Sec. 18.  RCW 9.46.0351 and 1987 c 4 s 34 are each amended to read as follows:

    (1) The legislature hereby authorizes any bona fide charitable or nonprofit organization which is licensed pursuant to RCW 66.24.400, and its officers and employees, to allow the use of the premises, furnishings, and other facilities not gambling devices of such organization by members of the organization, and members of a chapter or unit organized under the same state, regional, or national charter or constitution, who engage as players in the following types of gambling activities only:

    (a) Social card games as defined in RCW 9.46.0281 (1) through (4); and

    (b) Social dice games, which shall be limited to contests of chance, the outcome of which are determined by one or more rolls of dice.

    (2) Bona fide charitable or nonprofit organizations shall not be required to be licensed by the ((commission)) board in order to allow use of their premises in accordance with this section.  However, the following conditions must be met:

    (a) No organization, corporation, or person shall collect or obtain or charge any percentage of or shall collect or obtain any portion of the money or thing of value wagered or won by any of the players:  PROVIDED, That a player may collect his or her winnings; and

    (b) No organization, corporation, or person shall collect or obtain any money or thing of value from, or charge or impose any fee upon, any person which either enables him or her to play or results in or from his or her playing:  PROVIDED, That this subsection shall not preclude collection of a membership fee which is unrelated to participation in gambling activities authorized under this section.

 

    Sec. 19.  RCW 9.46.0361 and 1987 c 4 s 36 are each amended to read as follows:

    The legislature hereby authorizes bona fide charitable or nonprofit organizations to conduct, without the necessity of obtaining a permit or license to do so from the ((commission)) board, turkey shoots permitting wagers of money.  Such contests shall not constitute such gambling or lottery as otherwise prohibited in this chapter, or be subject to civil or criminal penalties.  Such organizations must be organized for purposes other than the conduct of turkey shoots.

    Such turkey shoots shall be held in accordance with all other requirements of this chapter, other applicable laws, and rules that may be adopted by the ((commission)) board.  Gross revenues from all such turkey shoots held by the organization during the calendar year shall not exceed five thousand dollars.  Turkey shoots conducted under this section shall meet the following requirements:

    (1) The target shall be divided into one hundred or fewer equal sections, with each section constituting a chance to win.  Each chance shall be offered directly to a prospective contestant for one dollar or less;

    (2) The purchaser of each chance shall sign his or her name on the face of the section he or she purchases;

    (3) The person shooting at the target shall not be a participant in the contest, but shall be a member of the organization conducting the contest;

    (4) Participation in the contest shall be limited to members of the organization which is conducting the contest and their guests;

    (5) The target shall contain the following information:

    (a) Distance from the shooting position to the target;

    (b) The gauge of the shotgun;

    (c) The type of choke on the barrel;

    (d) The size of shot that will be used; and

    (e) The prize or prizes that are to be awarded in the contest;

    (6) The targets, shotgun, and ammunition shall be available for inspection by any person purchasing a chance thereon, the ((commission)) board, or by any law enforcement agency upon demand, at all times before the prizes are awarded;

    (7) The turkey shoot shall award the prizes based upon the greatest number of shots striking a section;

    (8) No turkey shoot may offer as a prize the right to advance or continue on to another turkey shoot or turkey shoot target; and

    (9) Only bona fide members of the organization who are not paid for such service may participate in the management or operation of the turkey shoot, and all income therefrom, after deducting the cost of prizes and other expenses, shall be devoted solely to the lawful purposes of the organization.

 

    Sec. 20.  RCW 9.46.060 and 1973 1st ex.s. c 218 s 6 are each amended to read as follows:

    (1) The attorney general shall be general counsel for the ((state gambling commission)) board and shall assign such assistants as may be necessary in carrying out the purposes and provisions of this chapter, which shall include instituting and prosecuting any actions and proceedings necessary thereto.

    (2) The state auditor shall audit the books, records, and affairs of the ((commission)) board annually.  The ((commission)) board shall pay to the state treasurer for the credit of the state auditor such funds as may be necessary to defray the costs of such audits.  The ((commission)) board may provide for additional audits by certified public accountants.  All such audits shall be public records of the state.

    The payment for legal services and audits as authorized in this section shall be paid upon authorization of the ((commission)) board from moneys in the gambling revolving fund.

 

    Sec. 21.  RCW 9.46.070 and 1987 c 4 s 38 are each amended to read as follows:

    The ((commission)) board shall have the following powers and duties:

    (1) To authorize and issue licenses for a period not to exceed one year to bona fide charitable or nonprofit organizations approved by the ((commission)) board meeting the requirements of this chapter and any rules ((and regulations)) adopted pursuant thereto permitting said organizations to conduct bingo games, raffles, amusement games, and social card games, to utilize punch boards and pull-tabs in accordance with the provisions of this chapter and any rules ((and regulations)) adopted pursuant thereto and to revoke or suspend said licenses for violation of any provisions of this chapter or any rules ((and regulations)) adopted pursuant thereto:  PROVIDED, That the ((commission)) board shall not deny a license to an otherwise qualified applicant in an effort to limit the number of licenses to be issued:  PROVIDED FURTHER, That the ((commission or director)) board or chair shall not issue, deny, suspend or revoke any license because of considerations of race, sex, creed, color, or national origin:  AND PROVIDED FURTHER, That the ((commission)) board may authorize the ((director)) chair to temporarily issue or suspend licenses subject to final action by the ((commission)) board;

    (2) To authorize and issue licenses for a period not to exceed one year to any person, association, or organization operating a business primarily engaged in the selling of items of food or drink for consumption on the premises, approved by the ((commission)) board meeting the requirements of this chapter and any rules ((and regulations)) adopted pursuant thereto permitting said person, association, or organization to utilize punch boards and pull-tabs and to conduct social card games as a commercial stimulant in accordance with the provisions of this chapter and any rules ((and regulations)) adopted pursuant thereto and to revoke or suspend said licenses for violation of any provisions of this chapter and any rules ((and regulations)) adopted pursuant thereto:  PROVIDED, That the ((commission)) board shall not deny a license to an otherwise qualified applicant in an effort to limit the number of licenses to be issued:  PROVIDED FURTHER, That the ((commission)) board may authorize the ((director)) chair to temporarily issue or suspend licenses subject to final action by the ((commission)) board;

    (3) To authorize and issue licenses for a period not to exceed one year to any person, association, or organization approved by the ((commission)) board meeting the requirements of this chapter and meeting the requirements of any rules ((and regulations)) adopted by the ((commission)) board pursuant to this chapter ((as now or hereafter amended)), permitting said person, association, or organization to conduct or operate amusement games in such manner and at such locations as the ((commission)) board may determine;

    (4) To authorize, require, and issue, for a period not to exceed one year, such licenses as the ((commission)) board may by rule provide, to any person, association, or organization to engage in the selling, distributing, or otherwise supplying or in the manufacturing of devices for use within this state for those activities authorized by this chapter;

    (5) To establish a schedule of annual license fees for carrying on specific gambling activities upon the premises, and for such other activities as may be licensed by the ((commission)) board, which fees shall provide to the ((commission)) board not less than an amount of money adequate to cover all costs incurred by the ((commission)) board relative to licensing under this chapter and the enforcement by the ((commission)) board of the provisions of this chapter and rules ((and regulations)) adopted pursuant thereto:  PROVIDED, That all licensing fees shall be submitted with an application therefor and such portion of said fee as the ((commission)) board may determine, based upon its cost of processing and investigation, shall be retained by the ((commission)) board upon the withdrawal or denial of any such license application as its reasonable expense for processing the application and investigation into the granting thereof:  PROVIDED FURTHER, That if in a particular case the basic license fee established by the ((commission)) board for a particular class of license is less than the ((commission's)) board's actual expenses to investigate that particular application, the ((commission)) board may at any time charge to that applicant such additional fees as are necessary to pay the ((commission)) board for those costs.  The ((commission)) board may decline to proceed with its investigation and no license shall be issued until the ((commission)) board has been fully paid therefor by the applicant:  AND PROVIDED FURTHER, That the ((commission)) board may establish fees for the furnishing by it to licensees of identification stamps to be affixed to such devices and equipment as required by the ((commission)) board and for such other special services or programs required or offered by the ((commission)) board, the amount of each of these fees to be not less than is adequate to offset the cost to the ((commission)) board of the stamps and of administering their dispersal to licensees or the cost of administering such other special services, requirements or programs;

    (6) To prescribe the manner and method of payment of taxes, fees and penalties to be paid to or collected by the ((commission)) board;

    (7) To require that applications for all licenses contain such information as may be required by the ((commission)) board:  PROVIDED, That all persons (a) having a managerial or ownership interest in any gambling activity, or the building in which any gambling activity occurs, or the equipment to be used for any gambling activity, or (b) participating as an employee in the operation of any gambling activity, shall be listed on the application for the license and the applicant shall certify on the application, under oath, that the persons named on the application are all of the persons known to have an interest in any gambling activity, building, or equipment by the person making such application:  PROVIDED FURTHER, That the ((commission)) board may require fingerprinting and background checks on any persons seeking licenses under this chapter or of any person holding an interest in any gambling activity, building, or equipment to be used therefor, or of any person participating as an employee in the operation of any gambling activity;

    (8) To require that any license holder maintain records as directed by the ((commission)) board and submit such reports as the ((commission)) board may deem necessary;

    (9) To require that all income from bingo games, raffles, and amusement games be recorded and reported as established by rule ((or regulation)) of the ((commission)) board to the extent deemed necessary by considering the scope and character of the gambling activity in such a manner that will disclose gross income from any gambling activity, amounts received from each player, the nature and value of prizes, and the fact of distributions of such prizes to the winners thereof;

    (10) To regulate and establish maximum limitations on income derived from bingo:  PROVIDED, That in establishing limitations pursuant to this subsection the ((commission)) board shall take into account (((i))) (a) the nature, character, and scope of the activities of the licensee; (((ii))) (b) the source of all other income of the licensee; and (((iii))) (c) the percentage or extent to which income derived from bingo is used for charitable, as distinguished from nonprofit, purposes;

    (11) To regulate and establish the type and scope of and manner of conducting the gambling activities authorized by this chapter, including but not limited to, the extent of wager, money, or other thing of value which may be wagered or contributed or won by a player in any such activities;

    (12) To regulate the collection of and the accounting for the fee which may be imposed by an organization, corporation or person licensed to conduct a social card game on a person desiring to become a player in a social card game in accordance with RCW 9.46.0281(4);

    (13) To cooperate with and secure the cooperation of county, city, and other local or state agencies in investigating any matter within the scope of its duties and responsibilities;

    (14) In accordance with RCW 9.46.080, to adopt such rules ((and regulations)) as are deemed necessary to carry out the purposes and provisions of this chapter.  All rules ((and regulations)) shall be adopted pursuant to the administrative procedure act, chapter 34.05 RCW;

    (15) To set forth for the perusal of counties, city-counties, cities and towns, model ordinances by which any legislative authority thereof may enter into the taxing of any gambling activity authorized by this chapter;

    (16) To establish and regulate a maximum limit on salaries or wages which may be paid to persons employed in connection with activities conducted by bona fide charitable or nonprofit organizations and authorized by this chapter, where payment of such persons is allowed, and to regulate and establish maximum limits for other expenses in connection with such authorized activities, including but not limited to rent or lease payments.

    In establishing these maximum limits the ((commission)) board shall take into account the amount of income received, or expected to be received, from the class of activities to which the limits will apply and the amount of money the games could generate for authorized charitable or nonprofit purposes absent such expenses.  The ((commission)) board may also take into account, in its discretion, other factors, including but not limited to, the local prevailing wage scale and whether charitable purposes are benefited by the activities;

    (17) To authorize, require, and issue for a period not to exceed one year such licenses or permits, for which the ((commission)) board may by rule provide, to any person to work for any operator of any gambling activity authorized by this chapter in connection with that activity, or any manufacturer, supplier, or distributor of devices for those activities in connection with such business.  The ((commission)) board shall not require that persons working solely as volunteers in an authorized activity conducted by a bona fide charitable or bona fide nonprofit organization, who receive no compensation of any kind for any purpose from that organization, and who have no managerial or supervisory responsibility in connection with that activity, be licensed to do such work.  The ((commission)) board may require that licensees employing such unlicensed volunteers submit to the ((commission)) board periodically a list of the names, addresses, and dates of birth of the volunteers.  If any volunteer is not approved by the ((commission)) board, the ((commission)) board may require that the licensee not allow that person to work in connection with the licensed activity;

    (18) To publish and make available at the office of the ((commission)) board or elsewhere to anyone requesting it a list of the ((commission)) board licensees, including the name, address, type of license, and license number of each licensee;

    (19) To establish guidelines for determining what constitutes active membership in bona fide nonprofit or charitable organizations for the purposes of this chapter; and

    (20) To perform all other matters and things necessary to carry out the purposes and provisions of this chapter.

 

    Sec. 22.  RCW 9.46.075 and 1981 c 139 s 4 are each amended to read as follows:

    The ((commission)) board may deny an application, or suspend or revoke any license or permit issued by it, for any reason or reasons, it deems to be in the public interest.  These reasons shall include, but not be limited to, cases wherein the applicant or licensee, or any person with any interest therein:

    (1) Has violated, failed or refused to comply with the provisions, requirements, conditions, limitations or duties imposed by chapter 9.46 RCW ((and any amendments thereto)), or any rules adopted by the ((commission)) board pursuant thereto, or when a violation of any provision of chapter 9.46 RCW, or any ((commission)) board rule, has occurred upon any premises occupied or operated by any such person or over which he or she has substantial control;

    (2) Knowingly causes, aids, abets, or conspires with another to cause, any person to violate any of the laws of this state or the rules of the ((commission)) board;

    (3) Has obtained a license or permit by fraud, misrepresentation, concealment, or through inadvertence or mistake;

    (4) Has been convicted of, or forfeited bond upon a charge of, or pleaded guilty to, forgery, larceny, extortion, conspiracy to defraud, willful failure to make required payments or reports to a governmental agency at any level, or filing false reports therewith, or of any similar offense or offenses, or of bribing or otherwise unlawfully influencing a public official or employee of any state or the United States, or of any crime, whether a felony or misdemeanor involving any gambling activity or physical harm to individuals or involving moral turpitude;

    (5) Denies the ((commission)) board or its authorized representatives, including authorized local law enforcement agencies, access to any place where a licensed activity is conducted or who fails promptly to produce for inspection or audit any book, record, document or item required by law or ((commission)) board rule;

    (6) Shall fail to display its license on the premises where the licensed activity is conducted at all times during the operation of the licensed activity;

    (7) Makes a misrepresentation of, or fails to disclose, a material fact to the ((commission)) board;

    (8) Fails to prove, by clear and convincing evidence, that he, she or it is qualified in accordance with the provisions of this chapter;

    (9) Is subject to current prosecution or pending charges, or a conviction which is under appeal, for any of the offenses included under subsection (4) of this section:  PROVIDED, That at the request of an applicant for an original license, the ((commission)) board may defer decision upon the application during the pendency of such prosecution or appeal;

    (10) Has pursued or is pursuing economic gain in an occupational manner or context which is in violation of the criminal or civil public policy of this state if such pursuit creates probable cause to believe that the participation of such person in gambling or related activities would be inimical to the proper operation of an authorized gambling or related activity in this state.  For the purposes of this section, occupational manner or context shall be defined as the systematic planning, administration, management or execution of an activity for financial gain;

    (11) Is a career offender or a member of a career offender cartel or an associate of a career offender or career offender cartel in such a manner which creates probable cause to believe that the association is of such a nature as to be inimical to the policy of this chapter or to the proper operation of the authorized gambling or related activities in this state.  For the purposes of this section, career offender shall be defined as any person whose behavior is pursued in an occupational manner or context for the purpose of economic gain utilizing such methods as are deemed criminal violations of the public policy of this state.  A career offender cartel shall be defined as any group of persons who operate together as career offenders.

    For the purpose of reviewing any application for a license and for considering the denial, suspension or revocation of any license the ((gambling commission)) board may consider any prior criminal conduct of the applicant or licensee and the provisions of RCW 9.95.240 and of chapter 9.96A RCW shall not apply to such cases.

 

    Sec. 23.  RCW 9.46.077 and 1981 c 139 s 5 are each amended to read as follows:

    The ((commission)) board, when suspending any license for a period of thirty days or less, may further provide in the order of suspension that such suspension shall be vacated upon payment to the ((commission)) board of a monetary penalty in an amount then fixed by the ((commission)) board.

 

    Sec. 24.  RCW 9.46.080 and 1981 c 139 s 6 are each amended to read as follows:

    The ((commission)) board shall employ a full time ((director)) chair, who shall be the administrator for the commission in carrying out its powers and duties and who shall issue rules ((and regulations)) adopted by the ((commission)) board governing the activities authorized hereunder and shall supervise ((commission)) board employees in carrying out the purposes and provisions of this chapter.  In addition, the ((director)) chair shall employ a ((deputy director)) vice-chair, two assistant ((directors)) chairs, together with such investigators and enforcement officers and such staff as the ((commission)) board determines is necessary to carry out the purposes and provisions of this chapter.  The ((director, the deputy director, both assistant directors)) chair, vice-chair, both assistant chairs, and personnel occupying positions requiring the performing of undercover investigative work shall be exempt from the provisions of chapter 41.06 RCW((, as now law or hereafter amended)).  Neither the ((director)) chair nor any ((commission)) board employee working therefor shall be an officer or manager of any bona fide charitable or bona fide nonprofit organization, or of any organization which conducts gambling activity in this state.

    The ((director)) chair, subject to the approval of the ((commission)) board, is authorized to enter into agreements on behalf of the ((commission)) board for mutual assistance and services, based upon actual costs, with any state or federal agency or with any city, town, or county, and such state or local agency is authorized to enter into such an agreement with the ((commission)) board.  If a needed service is not available from another agency of state government within a reasonable time, the ((director)) chair may obtain that service from private industry.

 

    Sec. 25.  RCW 9.46.085 and 1986 c 4 s 1 are each amended to read as follows:

    A member or employee of the ((gambling commission)) board shall not:

    (1) Serve as an officer or manager of any corporation or organization which conducts a lottery or gambling activity;

    (2) Receive or share in, directly or indirectly, the gross profits of any gambling activity regulated by the ((commission)) board;

    (3) Be beneficially interested in any contract for the manufacture or sale of gambling devices, the conduct of (([a])) a gambling activity, or the provision of independent consultant services in connection with a gambling activity.

 

    Sec. 26.  RCW 9.46.090 and 1987 c 505 s 3 are each amended to read as follows:

    Subject to RCW 40.07.040, the ((commission)) board shall, from time to time, make reports to the governor and the legislature covering such matters in connection with this chapter as the governor and the legislature may require.  These reports shall be public documents and contain such general information and remarks as the ((commission)) board deems pertinent thereto and any information requested by either the governor or members of the legislature:  PROVIDED, That the ((commission appointed pursuant to RCW 9.46.040)) board may conduct a thorough study of the types of gambling activity permitted and the types of gambling activity prohibited by this chapter and may make recommendations to the legislature as to:  (1) Gambling activity that ought to be permitted; (2) gambling activity that ought to be prohibited; (3) the types of licenses and permits that ought to be required; (4) the type and amount of tax that ought to be applied to each type of permitted gambling activity; (5) any changes which may be made to the law of this state which further the purposes and policies set forth in RCW 9.46.010 ((as now law or hereafter amended)); and (6) any other matter that the ((commission)) board may deem appropriate.  Members of the ((commission)) board and its staff may contact the legislature, or any of its members, at any time, to advise it of recommendations of the ((commission)) board.

 

    Sec. 27.  RCW 9.46.095 and 1989 c 175 s 41 are each amended to read as follows:

    No court of the state of Washington other than the superior court of Thurston county shall have jurisdiction over any action or proceeding against the ((commission)) board or any member thereof for anything done or omitted to be done in or arising out of the performance of his or her duties under this title:  PROVIDED, That an appeal from an adjudicative proceeding involving a final decision of the ((commission)) board to deny, suspend, or revoke a license shall be governed by chapter 34.05 RCW, the Administrative Procedure Act.

    Neither the ((commission)) board nor any member or members thereof shall be personally liable in any action at law for damages sustained by any person because of any acts performed or done, or omitted to be done, by the ((commission)) board or any member of the ((commission)) board, or any employee of the ((commission)) board, in the performance of his or her duties and in the administration of this title.

 

    Sec. 28.  RCW 9.46.100 and 1991 sp.s. c 16 s 917 are each amended to read as follows:

    There is hereby created the gambling revolving fund which shall consist of all moneys receivable for licensing, penalties, forfeitures, and all other moneys, income, or revenue received by the ((commission)) board.  The state treasurer shall be custodian of the fund.  All moneys received by the ((commission)) board or any employee thereof, except for change funds and an amount of petty cash as fixed by rule ((or regulation)) of the ((commission)) board, shall be deposited each day in a depository approved by the state treasurer and transferred to the state treasurer to be credited to the gambling revolving fund.  Disbursements from the revolving fund shall be on authorization of the ((commission)) board or a duly authorized representative thereof.  In order to maintain an effective expenditure and revenue control the gambling revolving fund shall be subject in all respects to chapter 43.88 RCW but no appropriation shall be required to permit expenditures and payment of obligations from such fund.  All expenses relative to ((commission)) board business, including but not limited to salaries and expenses of the ((director)) chair and other ((commission)) board employees shall be paid from the gambling revolving fund.

    The state treasurer shall transfer to the general fund one million dollars from the gambling revolving fund for the 1991‑93 fiscal biennium.

 

    Sec. 29.  RCW 9.46.110 and 1991 c 161 s 1 are each amended to read as follows:

    The legislative authority of any county, city-county, city, or town, by local law and ordinance, and in accordance with the provisions of this chapter and rules ((and regulations promulgated)) adopted hereunder, may provide for the taxing of any gambling activity authorized by this chapter within its jurisdiction, the tax receipts to go to the county, city-county, city, or town so taxing the same:  PROVIDED, That any such tax imposed by a county alone shall not apply to any gambling activity within a city or town located therein but the tax rate established by a county, if any, shall constitute the tax rate throughout the unincorporated areas of such county:  PROVIDED FURTHER, That (1) punch boards and pull-tabs, chances on which shall only be sold to adults, which shall have a fifty cent limit on a single chance thereon, shall be taxed on a basis which shall reflect only the gross receipts from such punch boards and pull-tabs; and (2) no punch board or pull-tab may award as a prize upon a winning number or symbol being drawn the opportunity of taking a chance upon any other punch board or pull-tab; and (3) all prizes for punch boards and pull-tabs must be on display within the immediate area of the premises wherein any such punch board or pull-tab is located and upon a winning number or symbol being drawn, such prize must be immediately removed therefrom, or such omission shall be deemed a fraud for the purposes of this chapter; and (4) when any person shall win over twenty dollars in money or merchandise from any punch board or pull-tab, every licensee hereunder shall keep a public record thereof for at least ninety days thereafter containing such information as the ((commission)) board shall deem necessary:  AND PROVIDED FURTHER, That taxation of bingo and raffles shall never be in an amount greater than ten percent of the gross revenue received therefrom less the amount paid for or as prizes.  Taxation of amusement games shall only be in an amount sufficient to pay the actual costs of enforcement of the provisions of this chapter by the county, city or town law enforcement agency and in no event shall such taxation exceed two percent of the gross revenue therefrom less the amount paid for as prizes:  PROVIDED FURTHER, That no tax shall be imposed under the authority of this chapter on bingo or amusement games when such activities or any combination thereof are conducted by any bona fide charitable or nonprofit organization as defined in this chapter, which organization has no paid operating or management personnel and has gross income from bingo or amusement games, or a combination thereof, not exceeding five thousand dollars per year, less the amount paid for as prizes.  No tax shall be imposed on the first ten thousand dollars of net proceeds from raffles conducted by any bona fide charitable or nonprofit organization as defined in this chapter.  Taxation of punch boards and pull-tabs shall not exceed five percent of gross receipts, nor shall taxation of social card games exceed twenty percent of the gross revenue from such games.

 

    Sec. 30.  RCW 9.46.116 and 1985 c 7 s 2 are each amended to read as follows:

    The ((commission)) board shall charge fees or increased fees on pull-tabs sold over-the-counter and on sales from punch boards and pull-tab devices at levels necessary to assure that the increased revenues are equal or greater to the amount of revenue lost by removing the special tax on coin-operated gambling devices by the 1984 repeal of RCW 9.46.115.

 

    Sec. 31.  RCW 9.46.120 and 1987 c 4 s 40 are each amended to read as follows:

    (1) Except in the case of an agricultural fair as authorized under chapters 15.76 and 36.37 RCW, no person other than a member of a bona fide charitable or nonprofit organization (and their employees) or any other person, association or organization (and their employees) approved by the ((commission)) board, shall take any part in the management or operation of any gambling activity authorized under this chapter, and no person who takes any part in the management or operation of any such gambling activity shall take any part in the management or operation of any gambling activity conducted by any other organization or any other branch of the same organization, unless approved by the ((commission)) board, and no part of the proceeds thereof shall inure to the benefit of any person other than the organization conducting such gambling activities or if such gambling activities be for the charitable benefit of any specific persons designated in the application for a license, then only for such specific persons as so designated.

    (2) No bona fide charitable or nonprofit organization or any other person, association or organization shall conduct any gambling activity authorized under this chapter in any leased premises if rental for such premises is unreasonable or to be paid, wholly or partly, on the basis of a percentage of the receipts or profits derived from such gambling activity.

 

    Sec. 32.  RCW 9.46.130 and 1981 c 139 s 10 are each amended to read as follows:

    The premises and paraphernalia, and all the books and records of any person, association or organization conducting gambling activities authorized under this chapter and any person, association or organization receiving profits therefrom or having any interest therein shall be subject to inspection and audit at any reasonable time, with or without notice, upon demand, by the ((commission)) board or its designee, the attorney general or ((his)) the attorney general's designee, the chief of the Washington state patrol or ((his)) the chief's designee or the prosecuting attorney, sheriff or director of public safety or their designees of the county wherein located, or the chief of police or ((his)) the chief's designee of any city or town in which said organization is located, for the purpose of determining compliance or noncompliance with the provisions of this chapter and any rules ((or regulations)) or local ordinances adopted pursuant thereto.  A reasonable time for the purpose of this section shall be:  (1) If the items or records to be inspected or audited are located anywhere upon a premises any portion of which is regularly open to the public or members and guests, then at any time when the premises are so open, or at which they are usually open; or (2) if the items or records to be inspected or audited are not located upon a premises set out in subsection (1) above, then any time between the hours of 8:00 a.m. and 9:00 p.m., Monday through Friday.

    The ((commission)) board shall be provided at such reasonable intervals as the ((commission)) board shall determine with a report, under oath, detailing all receipts and disbursements in connection with such gambling activities together with such other reasonable information as required in order to determine whether such activities comply with the purposes of this chapter or any local ordinances relating thereto.

 

    Sec. 33.  RCW 9.46.140 and 1989 c 175 s 42 are each amended to read as follows:

    (1) The ((commission)) board or its authorized representative may:

    (a) Make necessary public or private investigations within or outside of this state to determine whether any person has violated or is about to violate this chapter or any rule or order hereunder, or to aid in the enforcement of this chapter or in the prescribing of rules and forms hereunder; and

    (b) Inspect the books, documents, and records of any person lending money to or in any manner financing any license holder or applicant for a license or receiving any income or profits from the use of such license for the purpose of determining compliance or noncompliance with the provisions of this chapter or the rules ((and regulations)) adopted pursuant thereto.

    (2) For the purpose of any investigation or proceeding under this chapter, the ((commission)) board or an administrative law judge appointed under chapter 34.12 RCW may conduct hearings, administer oaths or affirmations, or upon the ((commission's)) board's or administrative law judge's motion or upon request of any party may subpoena witnesses, compel attendance, take depositions, take evidence, or require the production of any matter which is relevant to the investigation or proceeding, including but not limited to the existence, description, nature, custody, condition, or location of any books, documents, or other tangible things, or the identity or location of persons having knowledge or relevant facts, or any other matter reasonably calculated to lead to the discovery of material evidence.

    (3) Upon failure to obey a subpoena or to answer questions propounded by the administrative law judge and upon reasonable notice to all persons affected thereby, the ((director)) chair may apply to the superior court for an order compelling compliance.

    (4) The administrative law judges appointed under chapter 34.12 RCW may conduct hearings respecting the suspension, revocation, or denial of licenses, who may administer oaths, admit or deny admission of evidence, compel the attendance of witnesses, issue subpoenas, issue orders, and exercise all other powers and perform all other functions set out in RCW 34.05.446, 34.05.449, and 34.05.452.

    (5) Except as otherwise provided in this chapter, all proceedings under this chapter shall be in accordance with the Administrative Procedure Act, chapter 34.05 RCW.

 

    Sec. 34.  RCW 9.46.150 and 1973 1st ex.s. c 218 s 15 are each amended to read as follows:

    (1) Any activity conducted in violation of any provision of this chapter may be enjoined in an action commenced by the ((commission)) board through the attorney general or by the prosecuting attorney or legal counsel of any city or town in which the prohibited activity may occur.

    (2) When a violation of any provision of this chapter or any rule ((or regulation)) adopted pursuant hereto has occurred on any property or premises for which one or more licenses, permits, or certificates issued by this state, or any political subdivision or public agency thereof are in effect, all such licenses, permits and certificates may be voided and no license, permit, or certificate so voided shall be issued or reissued for such property or premises for a period of up to sixty days thereafter.

 

    Sec. 35.  RCW 9.46.153 and 1981 c 139 s 14 are each amended to read as follows:

    (1) It shall be the affirmative responsibility of each applicant and licensee to establish by clear and convincing evidence the necessary qualifications for licensure of each person required to be qualified under this chapter, as well as the qualifications of the facility in which the licensed activity will be conducted;

    (2) All applicants and licensees shall consent to inspections, searches and seizures and the supplying of handwriting examples as authorized by this chapter and rules adopted hereunder;

    (3) All licensees, and persons having any interest in licensees, including but not limited to employees and agents of licensees, and other persons required to be qualified under this chapter or rules of the ((commission)) board shall have a duty to inform the ((commission)) board or its staff of any action or omission which they believe would constitute a violation of this chapter or rules adopted pursuant thereto.  No person who so informs the ((commission)) board or the staff shall be discriminated against by an applicant or licensee because of the supplying of such information;

    (4) All applicants, licensees, persons who are operators or directors thereof and persons who otherwise have a substantial interest therein shall have the continuing duty to provide any assistance or information required by the ((commission)) board and to investigations conducted by the ((commission)) board.  If, upon issuance of a formal request to answer or produce information, evidence or testimony, any applicant, licensee or officer or director thereof or person with a substantial interest therein, refuses to comply, the applicant or licensee may be denied or revoked by the ((commission)) board;

    (5) All applicants and licensees shall waive any and all liability as to the state of Washington, its agencies, employees and agents for any damages resulting from any disclosure or publication in any manner, other than a willfully unlawful disclosure or publication, of any information acquired by the ((commission)) board during its licensing or other investigations or inquiries or hearings;

    (6) Each applicant or licensee may be photographed for investigative and identification purposes in accordance with rules of the ((commission)) board;

    (7) An application to receive a license under this chapter or rules adopted pursuant thereto constitutes a request for determination of the applicant's and those person's with an interest in the applicant, general character, integrity and ability to engage or participate in, or be associated with, gambling or related activities impacting this state.  Any written or oral statement made in the course of an official investigation, proceeding or process of the ((commission)) board by any member, employee or agent thereof or by any witness, testifying under oath, which is relevant to the investigation, proceeding or process, is absolutely privileged and shall not impose any liability for slander, libel or defamation, or constitute any grounds for recovery in any civil action.

 

    Sec. 36.  RCW 9.46.158 and 1981 c 139 s 18 are each amended to read as follows:

    No applicant for a license from, nor licensee of, the ((commission)) board, nor any operator of any gambling activity, shall, without advance approval of the ((commission)) board, knowingly permit any person to participate in the management or operation of any activity for which a license from the ((commission)) board is required or which is otherwise authorized by this chapter if that person:

    (1) Has been convicted of, or forfeited bond upon a charge of, or pleaded guilty to, forgery, larceny, extortion, conspiracy to defraud, willful failure to make required payments or reports to a governmental agency at any level, or filing false reports therewith, or of any similar offense or offenses, or of any crime, whether a felony or misdemeanor involving any gambling activity or physical harm to individuals or involving moral turpitude; or

    (2) Has violated, failed, or refused to comply with provisions, requirements, conditions, limitations or duties imposed by this chapter, ((and any amendments thereto,)) or any rules adopted by the ((commission)) board pursuant thereto, or has permitted, aided, abetted, caused, or conspired with another to cause, any person to violate any of the provisions of this chapter or rules of the ((commission)) board.

 

    Sec. 37.  RCW 9.46.160 and 1991 c 261 s 3 are each amended to read as follows:

    Any person who conducts any activity for which a license is required by this chapter, or by rule of the ((commission)) board, without the required license issued by the ((commission)) board shall be guilty of a class B felony.  If any corporation conducts any activity for which a license is required by this chapter, or by rule of the ((commission)) board, without the required license issued by the ((commission)) board, it may be punished by forfeiture of its corporate charter, in addition to the other penalties set forth in this section.

 

    Sec. 38.  RCW 9.46.170 and 1991 c 261 s 4 are each amended to read as follows:

    Whoever, in any application for a license or in any book or record required to be maintained by the ((commission)) board or in any report required to be submitted to the ((commission)) board, shall make any false or misleading statement, or make any false or misleading entry or willfully fail to maintain or make any entry required to be maintained or made, or who willfully refuses to produce for inspection by the ((commission)) board, or its designee, any book, record, or document required to be maintained or made by federal or state law, shall be guilty of a gross misdemeanor subject to the penalty set forth in RCW 9A.20.021.

 

    Sec. 39.  RCW 9.46.198 and 1977 ex.s. c 326 s 14 are each amended to read as follows:

    Any person who works as an employee or agent or in a similar capacity for another person in connection with the operation of an activity for which a license is required under this chapter or by ((commission)) board rule without having obtained the applicable license required by the ((commission)) board under RCW 9.46.070(16) shall be guilty of a gross misdemeanor and shall, upon conviction, be punished by not more than one year in the county jail or a fine of not more than five thousand dollars, or both.

 

    Sec. 40.  RCW 9.46.210 and 1981 c 139 s 11 are each amended to read as follows:

    (1) It shall be the duty of all peace officers, law enforcement officers, and law enforcement agencies within this state to investigate, enforce, and prosecute all violations of this chapter.

    (2) In addition to the authority granted by subsection (1) of this section law enforcement agencies of cities and counties shall investigate and report to the ((commission)) board all violations of the provisions of this chapter and of the rules of the ((commission)) board found by them and shall assist the ((commission)) board in any of its investigations and proceedings respecting any such violations.  Such law enforcement agencies shall not be deemed agents of the ((commission)) board.

    (3) In addition to its other powers and duties, the ((commission)) board shall have the power to enforce the penal provisions of chapter 218, Laws of 1973 1st ex. sess. and as it may be amended, and the penal laws of this state relating to the conduct of or participation in gambling activities and the manufacturing, importation, transportation, distribution, possession, and sale of equipment or paraphernalia used or for use in connection therewith.  The ((director, the deputy director, both assistant directors)) chair, and each of the ((commission's)) board's investigators, enforcement officers, and inspectors shall have the power, under the supervision of the ((commission)) board, to enforce the penal provisions of chapter 218, Laws of 1973 1st ex. sess. and as it may be amended, and the penal laws of this state relating to the conduct of or participation in gambling activities and the manufacturing, importation, transportation, distribution, possession, and sale of equipment or paraphernalia used or for use in connection therewith.  They shall have the power and authority to apply for and execute all warrants and serve process of law issued by the courts in enforcing the penal provisions of chapter 218, Laws of 1973 1st ex. sess. and as it may be amended, and the penal laws of this state relating to the conduct of or participation in gambling activities and the manufacturing, importation, transportation, distribution, possession, and sale of equipment or paraphernalia used or for use in connection therewith.  They shall have the power to arrest without a warrant, any person or persons found in the act of violating any of the penal provisions of chapter 218, Laws of 1973 1st ex. sess. and as it may be amended, and the penal laws of this state relating to the conduct of or participation in gambling activities and the manufacturing, importation, transportation, distribution, possession, and sale of equipment or paraphernalia used or for use in connection therewith.  To the extent set forth above, the ((commission)) board shall be a law enforcement agency of this state with the power to investigate for violations of and to enforce the provisions of this chapter((, as now law or hereafter amended,)) and to obtain information from and provide information to all other law enforcement agencies.

 

    Sec. 41.  RCW 9.46.220 and 1991 c 261 s 10 are each amended to read as follows:

    (1) A person is guilty of professional gambling in the first degree if he or she engages in, or knowingly causes, aids, abets, or conspires with another to engage in professional gambling as defined in this chapter, and:

    (a) While engaging in professional gambling acts in concert with or conspires with five or more people;

    (b) Accepts wagers exceeding five thousand dollars during any calendar month on future contingent events; or

    (c) Operates, manages, or profits from the operation of a premises or location where persons are charged a fee to participate in card games, lotteries, or other gambling activities that are not authorized by this chapter or licensed by the ((commission)) board.

    (2) However, this section shall not apply to those activities enumerated in RCW 9.46.0305 through 9.46.0361 or to any act or acts in furtherance of such activities when conducted in compliance with the provisions of this chapter and in accordance with the rules adopted pursuant to this chapter.

    (3) Professional gambling in the first degree is a class B felony subject to the penalty set forth in RCW 9A.20.021.

 

    Sec. 42.  RCW 9.46.225 and 1987 c 4 s 37 are each amended to read as follows:

    The penalties provided for professional gambling in this chapter shall not apply to the activities authorized by this chapter when conducted in compliance with the provisions of this chapter and in accordance with the rules ((and regulations)) of the ((commission)) board.

 

    Sec. 43.  RCW 9.46.230 and 1987 c 202 s 139 and 1987 c 4 s 43 are each reenacted and amended to read as follows:

    (1) All gambling devices as defined in this chapter are common nuisances and shall be subject to seizure, immediately upon detection by any peace officer, and to confiscation and destruction by order of a superior or district court, except when in the possession of officers enforcing this chapter.

    (2) No property right in any gambling device shall exist or be recognized in any person, except the possessory right of officers enforcing this chapter.

    (3) All furnishings, fixtures, equipment, and stock, including without limitation furnishings and fixtures adaptable to nongambling uses and equipment and stock for printing, recording, computing, transporting, or safekeeping, used in connection with professional gambling or maintaining a gambling premises, and all money or other things of value at stake or displayed in or in connection with professional gambling or any gambling device used therein, shall be subject to seizure, immediately upon detection, by any peace officer, and unless good cause is shown to the contrary by the owner, shall be forfeited to the state or political subdivision by which seized by order of a court having jurisdiction, for disposition by public auction or as otherwise provided by law.  Bona fide liens against property so forfeited, on good cause shown by the lienor, shall be transferred from the property to the proceeds of the sale of the property.  Forfeit moneys and other proceeds realized from the enforcement of this subsection shall be paid into the general fund of the state if the property was seized by officers thereof or to the political subdivision or other public agency, if any, whose officers made the seizure, except as otherwise provided by law.  This subsection shall not apply to such items which are actually being used by, or being held for use by, a person licensed by the ((commission)) board or who is otherwise authorized by this chapter or by ((commission)) board rule to conduct gambling activities without a license in connection with gambling activities authorized by this section when:

    (a) The person is acting in conformance with the provisions of chapter 9.46 RCW((, as now or hereafter amended,)) and the rules ((and regulations)) adopted pursuant thereto; and

    (b) The items are of the type and kind traditionally and usually employed in connection with the particular activity.  Nor shall this subsection apply to any act or acts in furtherance of such activities when conducted in compliance with the provisions of this chapter and in accordance with the rules ((and regulations)) adopted pursuant thereto.

    (4) Whoever knowingly owns, manufactures, possesses, buys, sells, rents, leases, finances, holds a security interest in, stores, repairs, or transports any gambling device or offers or solicits any interest therein, whether through an agent or employee or otherwise, shall be guilty of a felony and fined not more than one hundred thousand dollars or imprisoned not more than five years or both:  PROVIDED, HOWEVER, That this subsection shall not apply to persons licensed by the ((commission)) board, or who are otherwise authorized by this chapter, or by ((commission)) board rule, to conduct gambling activities without a license, respecting devices which are to be used, or are being used, solely in that activity for which the license was issued, or for which the person has been otherwise authorized when:

    (a) The person is acting in conformance with the provisions of chapter 9.46 RCW((, as now or hereafter amended,)) and the rules ((and regulations)) adopted pursuant thereto; and

    (b) The devices are a type and kind traditionally and usually employed in connection with the particular activity.  Nor shall this subsection apply to any act or acts by such persons in furtherance of the activity for which the license was issued, or for which the person is authorized, when such activity is conducted in compliance with the provisions of this chapter((, as now or hereafter amended,)) and in accordance with the rules ((and regulations)) adopted pursuant thereto.  Subsection (2) of this section shall have no application in the enforcement of this subsection.  In the enforcement of this subsection direct possession of any such gambling device shall be presumed to be knowing possession thereof.

    (5) Whoever knowingly prints, makes, possesses, stores, or transports any gambling record, or buys, sells, offers, or solicits any interest therein, whether through an agent or employee or otherwise, shall be guilty of a gross misdemeanor:  PROVIDED, HOWEVER, That this subsection shall not apply to records relating to and kept for activities authorized by this chapter when the records are of the type and kind traditionally and usually employed in connection with the particular activity.  Nor shall this subsection apply to any act or acts in furtherance of such activities when conducted in compliance with the provisions of this chapter and in accordance with the rules ((and regulations)) adopted pursuant thereto.  In the enforcement of this subsection direct possession of any such gambling record shall be presumed to be knowing possession thereof.

 

    Sec. 44.  RCW 9.46.250 and 1987 c 4 s 45 are each amended to read as follows:

    (1) All gambling premises are common nuisances and shall be subject to abatement by injunction or as otherwise provided by law.  The plaintiff in any action brought under this subsection against any gambling premises, need not show special injury and may, in the discretion of the court, be relieved of all requirements as to giving security.

    (2) When any property or premise held under a mortgage, contract or leasehold is determined by a court having jurisdiction to be a gambling premises, all rights and interests of the holder therein shall terminate and the owner shall be entitled to immediate possession at his or her election:  PROVIDED, HOWEVER, That this subsection shall not apply to those premises in which activities authorized by this chapter or any act or acts in furtherance thereof are carried on when conducted in compliance with the provisions of this chapter and in accordance with the rules ((and regulations)) adopted pursuant thereto.

    (3) When any property or premises for which one or more licenses issued by the ((commission)) board are in effect, is determined by a court having jurisdiction to be a gambling premise, all such licenses may be voided and no longer in effect, and no license so voided shall be issued or reissued for such property or premises for a period of up to sixty days thereafter.  Enforcement of this subsection shall be the duty of all peace officers and all taxing and licensing officials of this state and its political subdivisions and other public agencies.  This subsection shall not apply to property or premises in which activities authorized by this chapter, or any act or acts in furtherance thereof, are carried on when conducted in compliance with the provisions of this chapter and in accordance with the rules ((and regulations)) adopted pursuant thereto.

 

    Sec. 45.  RCW 9.46.285 and 1973 2nd ex.s. c 41 s 8 are each amended to read as follows:

    This chapter constitutes the exclusive legislative authority for the licensing and regulation of any gambling activity and the state preempts such licensing and regulatory functions, except as to the powers and duties of any city, town, city-county, or county which are specifically set forth in this chapter.  Any ordinance, resolution, or other legislative act by any city, town, city-county, or county relating to gambling in existence on September 27, 1973, shall be as of that date null and void and of no effect.  Any such city, town, city-county, or county may thereafter enact only such local law as is consistent with the powers and duties expressly granted to and imposed upon it by chapter 9.46 RCW and which is not in conflict with that chapter or with the rules of the ((commission)) board.

 

    Sec. 46.  RCW 9.46.293 and 1989 c 8 s 1 are each amended to read as follows:

    Any fishing derby, defined under RCW 9.46.0229, shall not be subject to any other provisions of this chapter or to any rules ((or regulations)) of the ((commission)) board.

 

    Sec. 47.  RCW 9.46.300 and 1977 ex.s. c 326 s 17 are each amended to read as follows:

    All applications for licenses made to the ((commission)) board, with the exception of any portions of the applications describing the arrest or conviction record of any person, and all reports required by the ((commission)) board to be filed by its licensees on a periodic basis concerning the operation of the licensed activity or concerning any organization, association, or business in connection with which a licensed activity is operated, in the ((commission)) board files, shall be open to public inspection at the ((commission's)) board's offices upon a prior written request of the ((commission)) board.  The staff of the ((commission)) board may decline to allow an inspection until such time as the inspection will not unduly interfere with the other duties of the staff.  The ((commission)) board may charge the person making a request for an inspection an amount necessary to offset the costs to the ((commission)) board of providing the inspection and copies of any requested documents.

 

    Sec. 48.  RCW 9.46.310 and 1981 c 139 s 13 are each amended to read as follows:

    No person shall manufacture, and no person shall sell, distribute, furnish or supply to any other person, any gambling device, including but not limited to punch boards and pull-tabs, in this state, or for use within this state, without first obtaining a license to do so from the ((commission)) board under the provisions of this chapter.

    Such licenses shall not be issued by the ((commission)) board except respecting devices which are designed and permitted for use in connection with activities authorized under this chapter:  PROVIDED, That this requirement for licensure shall apply only insofar as the ((commission)) board has adopted, or may adopt, rules implementing it as to particular categories of gambling devices and related equipment.

 

    Sec. 49.  RCW 9.46.350 and 1981 c 139 s 16 are each amended to read as follows:

    At any time within five years after any amount of fees, interest, penalties, or tax which is imposed pursuant to this chapter, or rules adopted pursuant thereto, shall become due and payable, the attorney general, on behalf of the ((commission)) board, may bring a civil action in the courts of this state, or any other state, or of the United States, to collect the amount delinquent, together with penalties and interest:  PROVIDED, That where the tax is one imposed by a county, city or town under RCW 9.46.110, any such action shall be brought by that county, city or town on its own behalf.  An action may be brought whether or not the person owing the amount is at such time a licensee pursuant to the provisions of this chapter.

    If such an action is brought in the courts of this state, a writ of attachment may be issued and no bond or affidavit prior to the issuance thereof shall be required.  In all actions in this state, the records of the ((commission)) board, or the appropriate county, city or town, shall be prima facie evidence of the determination of the tax due or the amount of the delinquency.

 

    Sec. 50.  RCW 9.46.360 and 1992 c 172 s 2 are each amended to read as follows:

    (1) The negotiation process for compacts with federally recognized Indian tribes for conducting class III gaming, as defined in the Indian Gaming Regulatory Act, 25 U.S.C. Sec. 2701 et seq., on federal Indian lands is governed by this section.

    (2) The ((gambling commission)) board through the ((director)) chair or the ((director's)) chair's designee shall negotiate compacts for class III gaming on behalf of the state with federally recognized Indian tribes in the state of Washington.

    (3) When a tentative agreement with an Indian tribe on a proposed compact is reached, the ((director)) chair shall immediately transmit a copy of the proposed compact to all ((voting and ex officio members of the gambling commission)) board members and to the standing committees designated pursuant to subsection (((5))) (4) of this section.

    (4) ((Notwithstanding RCW 9.46.040, the four ex officio members of the gambling commission shall be deemed voting members of the gambling commission for the sole purpose of voting on proposed compacts submitted under this section.

    (5))) Within thirty days after receiving a proposed compact from the ((director)) chair, one standing committee from each house of the legislature shall hold a public hearing on the proposed compact and forward its respective comments to the ((gambling commission)) board.  The president of the senate shall designate the senate standing committee that is to carry out the duties of this section, and the speaker of the house of representatives shall designate the house standing committee that is to carry out the duties of this section.  The designated committees shall continue to perform under this section until the president of the senate or the speaker of the house of representatives, as the case may be, designates a different standing committee.

    (((6))) (5) The ((gambling commission)) board may hold public hearings on the proposed compact any time after receiving a copy of the compact from the ((director)) chair.  Within forty-five days after receiving the proposed compact from the ((director)) chair, the ((gambling commission, including the four ex officio members,)) board shall vote on whether to return the proposed compact to the ((director)) chair with instructions for further negotiation or to forward the proposed compact to the governor for review and final execution.

    (((7))) (6) Notwithstanding provisions in this section to the contrary, if the ((director)) chair forwards a proposed compact to the ((gambling commission)) board and the designated standing committees within ten days before the beginning of a regular session of the legislature, or during a regular or special session of the legislature, the thirty-day time limit set forth in subsection (((5))) (4) of this section and the forty-five day limit set forth in subsection (((6))) (5) of this section are each forty-five days and sixty days, respectively.

    (((8))) (7) Funding for the negotiation process under this section must come from the gambling revolving fund.

    (((9))) (8) In addition to the powers granted under this chapter, the ((commission)) board, consistent with the terms of any compact, is authorized and empowered to enforce the provisions of any compact between a federally recognized Indian tribe and the state of Washington.

 

    Sec. 51.  RCW 10.93.020 and 1988 c 36 s 5 are each amended to read as follows:

    As used in this chapter, the following terms have the meanings indicated unless the context clearly requires otherwise.

    (1) "General authority Washington law enforcement agency" means any agency, department, or division of a municipal corporation, political subdivision, or other unit of local government of this state, and any agency, department, or division of state government, having as its primary function the detection and apprehension of persons committing infractions or violating the traffic or criminal laws in general, as distinguished from a limited authority Washington law enforcement agency, and any other unit of government expressly designated by statute as a general authority Washington law enforcement agency.  The Washington state patrol is a general authority Washington law enforcement agency.

    (2) "Limited authority Washington law enforcement agency" means any agency, political subdivision, or unit of local government of this state, and any agency, department, or division of state government, having as one of its functions the apprehension or detection of persons committing infractions or violating the traffic or criminal laws relating to limited subject areas, including but not limited to, the state departments of natural resources, fisheries, wildlife, and social and health services, ((the state gambling commission,)) the state lottery commission, the state parks and recreation commission, the state utilities and transportation commission, the state gambling and liquor control board, and the state department of corrections.

    (3) "General authority Washington peace officer" means any full-time, fully compensated and elected, appointed, or employed officer of a general authority Washington law enforcement agency who is commissioned to enforce the criminal laws of the state of Washington generally.

    (4) "Limited authority Washington peace officer" means any full-time, fully compensated officer of a limited authority Washington law enforcement agency empowered by that agency to detect or apprehend violators of the laws in some or all of the limited subject areas for which that agency is responsible.  A limited authority Washington peace officer may be a specially commissioned Washington peace officer if otherwise qualified for such status under this chapter.

    (5) "Specially commissioned Washington peace officer", for the purposes of this chapter, means any officer, whether part-time or full-time, compensated or not, commissioned by a general authority Washington law enforcement agency to enforce some or all of the criminal laws of the state of Washington, who does not qualify under this chapter as a general authority Washington peace officer for that commissioning agency, specifically including reserve peace officers, and specially commissioned full-time, fully compensated peace officers duly commissioned by the states of Oregon or Idaho or any such peace officer commissioned by a unit of local government of Oregon or Idaho.  A reserve peace officer is an individual who is an officer of a Washington law enforcement agency who does not serve such agency on a full-time basis but who, when called by the agency into active service, is fully commissioned on the same basis as full-time peace officers to enforce the criminal laws of the state.

    (6) "Federal peace officer" means any employee or agent of the United States government who has the authority to carry firearms and make warrantless arrests and whose duties involve the enforcement of criminal laws of the United States.

    (7) "Agency with primary territorial jurisdiction" means a city or town police agency which has responsibility for police activity within its boundaries; or a county police or sheriff's department which has responsibility with regard to police activity in the unincorporated areas within the county boundaries; or a statutorily authorized port district police agency or four-year state college or university police agency which has responsibility for police activity within the statutorily authorized enforcement boundaries of the port district, state college, or university.

    (8) "Primary commissioning agency" means (a) the employing agency in the case of a general authority Washington peace officer, a limited authority Washington peace officer, an Indian tribal peace officer, or a federal peace officer, and (b) the commissioning agency in the case of a specially commissioned Washington peace officer (i) who is performing functions within the course and scope of the special commission and (ii) who is not also a general authority Washington peace officer, a limited authority Washington peace officer, an Indian tribal peace officer, or a federal peace officer.

    (9) "Primary function of an agency" means that function to which greater than fifty percent of the agency's resources are allocated.

    (10) "Mutual law enforcement assistance" includes, but is not limited to, one or more law enforcement agencies aiding or assisting one or more other such agencies through loans or exchanges of personnel or of material resources, for law enforcement purposes.

 

    Sec. 52.  RCW 19.02.040 and 1989 1st ex.s. c 9 s 316 are each amended to read as follows:

    (1) There is hereby created a board of review to provide policy direction to the department of licensing as it establishes and operates the business registration and licensing system.  The board of review shall be composed of the following officials or their designees:

    (a) Director, department of revenue;

    (b) Director, department of labor and industries;

    (c) Commissioner, employment security department;

    (d) Director, department of agriculture;

    (e) Director, department of trade and economic development;

    (f) Director, department of licensing;

    (g) Director, office of financial management;

    (h) ((Chairman,)) Chair, gambling and liquor control board;

    (i) Secretary, department of social and health services;

    (j) Secretary, department of health;

    (k) Secretary of state;

    (l) The governor; and

    (m) As ex officio members:

    (i) The president of the senate or the president's designee;

    (ii) The speaker of the house or the speaker's designee; and

    (iii) A representative of a recognized state-wide organization of employers, representing a large cross section of the Washington business community, to be appointed by the governor.

    (2) The governor shall be the chairperson.  In the governor's absence, the secretary of state shall act as chairperson.

    (3) The board shall meet at the call of the chairperson at least semi-annually or at the call of a member to:

    (a) Establish interagency policy guidelines for the system;

    (b) Review the findings, status, and problems of system operations and recommend courses of action;

    (c) Receive reports from industry and agency task forces;

    (d) Determine in questionable cases whether a specific license is to be included in the master license system;

    (e) Review and make recommendations on rules proposed by the business license center and any amendments to or revisions of the center's rules.

 

    Sec. 53.  RCW 19.02.050 and 1989 1st ex.s. c 9 s 317 are each amended to read as follows:

    (((1))) The legislature hereby directs the full participation by the following agencies in the implementation of this chapter:

    (((a))) (1) Department of agriculture;

    (((b))) (2) Secretary of state;

    (((c))) (3) Department of social and health services;

    (((d))) (4) Department of revenue;

    (((e))) (5) Department of fisheries;

    (((f))) (6) Department of employment security;

    (((g))) (7) Department of labor and industries;

    (((h))) (8) Department of trade and economic development;

    (((i))) (9) Gambling and liquor control board;

    (((j))) (10) Department of health;

    (((k))) (11) Department of licensing;

    (((l))) (12) Utilities and transportation commission; and

    (((m))) (13) Other agencies as determined by the governor.

 

    Sec. 54.  RCW 19.09.020 and 1986 c 230 s 2 are each amended to read as follows:

    When used in this chapter, unless the context otherwise requires:

    (1) A "bona fide officer or employee" of a charitable organization is one (a) whose conduct is subject to direct control by such organization; (b) who does not act in the manner of an independent contractor in his or her relation with the organization; and (c) whose compensation is not computed on funds raised or to be raised.

    (2) "Charitable organization" means any entity that solicits or collects contributions from the general public where the contribution is or is purported to be used to support a charitable activity.  "Charitable" (a) is not limited to its common law meaning unless the context clearly requires a narrower meaning; (b) does not include religious or political activities; and (c) includes, but is not limited to, educational, recreational, social, patriotic, legal defense, benevolent, or health causes.

    (3) "Compensation" means salaries, wages, fees, commissions, or any other remuneration or valuable consideration.

    (4) "Contribution" means the donation, promise or grant, for consideration or otherwise, of any money or property of any kind or value which contribution is wholly or partly induced by a solicitation.  Reference to dollar amounts of "contributions" or "solicitations" in this chapter means in the case of payments or promises to pay for merchandise or rights of any description, the value of the total amount paid or promised to be paid for such merchandise or rights less the reasonable purchase price to the charitable organization of any such tangible merchandise, rights, or services resold by the organization, and not merely that portion of the purchase price to be applied to a charitable purpose.

    (5) "Cost of solicitation" means and includes all direct and indirect costs, expenditures, debts, obligations, salaries, wages, commissions, fees, or other money or thing of value paid or incurred in making a solicitation.  Cost of solicitation does not include the reasonable purchase price to the charitable organization of any tangible goods or services resold by the organization as a part of its fund raising activities.

    (6) "Entity" means an individual, organization, group, association, partnership, corporation, agency or unit of state government, or any combination thereof.

    (7) "General public" or "public" means any individual located in Washington state without a membership or other official relationship with a charitable organization before a solicitation by the charitable organization.

    (8) "Independent fund raiser" or "independent fund-raising entity" means any entity that for compensation or other consideration, plans, conducts, manages, or administers any drive or campaign in this state for the purpose of soliciting contributions for or on behalf of any charitable organization or charitable or religious purpose, or that is engaged in the business of or is held out to persons in this state as independently engaged in the business of soliciting contributions for such purposes, or the business of planning, conducting, managing, or carrying on any drive or campaign in this state for such solicitations.  However, a nonprofit fund raiser or bona fide officer or other employee of a charitable organization shall not be deemed an independent fund raiser.

    (9) "Membership" means that for the payment of fees, dues, assessments, etc., an organization provides services and confers a bona fide right, privilege, professional standing, honor, or other direct benefit, in addition to the right to vote, elect officers, or hold office.  The term "membership" does not include those persons who are granted a membership upon making a contribution as the result of solicitation.

    (10) "Nonprofit fund raiser" means an entity registered as a nonprofit corporation under Title 24 RCW, or any entity exempt from federal income tax under section 501(c) of the Internal Revenue Code, that solicits and receives contributions exceeding five thousand dollars in any accounting year on behalf of a charitable or religious organization other than the nonprofit corporation.

    (11) "Other employee" of a charitable organization means any person (a) whose conduct is subject to direct control by such organization; (b) who does not act in the manner of any independent contractor in his or her relation with the organization; and (c) who is not engaged in the business of or held out to persons in this state as independently engaged in the business of soliciting contributions for charitable or religious purposes.

    (12) "Parent organization" means that part of a charitable organization that coordinates, supervises, or exercises control over policy, fund raising, or expenditures, or assists or advises one or more chapters, branches, or affiliates of such organization in the state of Washington.

    (13) "Political activities" means those activities subject to chapter 42.17 RCW or the Federal Elections Campaign Act of 1971, as amended.

    (14) "Religious activities" means those religious, evangelical, or missionary activities under the direction of a religious organization duly organized and operating in good faith that are entitled to receive a declaration of current tax exempt status for religious purposes from the United States government and the duly organized branches or chapters of those organizations.

    (15) "Secretary" means the secretary of state.

    (16) "Solicitation" means any oral or written request for a contribution, including the solicitor's offer or attempt to sell any property, rights, services, or other thing in connection with which:

    (a) Any appeal is made for any charitable purpose; or

    (b) The name of any charitable organization is used as an inducement for consummating the sale; or

    (c) Any statement is made that implies that the whole or any part of the proceeds from the sale will be applied toward any charitable purpose or donated to any charitable organization.

    The solicitation shall be deemed completed when made, whether or not the person making it receives any contribution or makes any sale.

    Bingo activities, raffles, and amusement games conducted under chapter 9.46 RCW and applicable rules of the Washington state gambling ((commission)) and liquor control board are specifically excluded and shall not be deemed a solicitation under this chapter.

 

    Sec. 55.  RCW 19.126.070 and 1985 c 440 s 2 are each amended to read as follows:

    Continued violation of this chapter constitutes grounds, in the discretion of the state gambling and liquor control board, for suspension or cancellation under RCW 66.24.010 of any license or certificate held by a supplier or its agent.

 

    Sec. 56.  RCW 36.27.020 and 1987 c 202 s 205 are each amended to read as follows:

    The prosecuting attorney shall:

    (1) Be legal adviser of the board of county commissioners, giving them his or her written opinion when required by the board or the chairperson thereof touching any subject which the board may be called or required to act upon relating to the management of county affairs;

    (2) Be legal adviser to all county and precinct officers and school directors in all matters relating to their official business, and when required draw up all instruments of an official nature for the use of said officers;

    (3) Appear for and represent the state, county, and all school districts subject to the supervisory control and direction of the attorney general in all criminal and civil proceedings in which the state or the county or any school district in the county may be a party;

    (4) Prosecute all criminal and civil actions in which the state or the county may be a party, defend all suits brought against the state or the county, and prosecute actions upon forfeited recognizances and bonds and actions for the recovery of debts, fines, penalties, and forfeitures accruing to the state or the county;

    (5) Attend and appear before and give advice to the grand jury when cases are presented to it for consideration and draw all indictments when required by the grand jury;

    (6) Institute and prosecute proceedings before magistrates for the arrest of persons charged with or reasonably suspected of felonies when the prosecuting attorney has information that any such offense has been committed and the prosecuting attorney shall for that purpose attend when required by them if the prosecuting attorney is not then in attendance upon the superior court;

    (7) Carefully tax all cost bills in criminal cases and take care that no useless witness fees are taxed as part of the costs and that the officers authorized to execute process tax no other or greater fees than the fees allowed by law;

    (8) Receive all cost bills in criminal cases before district judges at the trial of which the prosecuting attorney was not present, before they are lodged with the board of county commissioners for payment, whereupon the prosecuting attorney may retax the same and the prosecuting attorney must do so if the board of county commissioners deems any bill exorbitant or improperly taxed;

    (9) Present all violations of the election laws which may come to the prosecuting attorney's knowledge to the special consideration of the proper jury;

    (10) Examine at least once in each year the public records and books of the auditor, assessor, treasurer, superintendent of schools, and sheriff of his or her county and report to the board of county commissioners every failure, refusal, omission, or neglect of such officers to keep such records and books as required by law;

    (11) Examine once in each year the official bonds of all county and precinct officers and report to the board of county commissioners any defect in the bonds of any such officer;

    (12) Make an annual report to the governor as of the 31st of December of each year setting forth the amount and nature of business transacted by the prosecuting attorney in that year with such other statements and suggestions as the prosecuting attorney may deem useful;

    (13) Send to the state gambling and liquor control board at the end of each year a written report of all prosecutions brought under the state liquor laws in the county during the preceding year, showing in each case, the date of trial, name of accused, nature of charges, disposition of case, and the name of the judge presiding;

    (14) Seek to reform and improve the administration of criminal justice and stimulate efforts to remedy inadequacies or injustice in substantive or procedural law.

 

    Sec. 57.  RCW 42.17.2401 and 1991 c 200 s 404 are each amended to read as follows:

    For the purposes of RCW 42.17.240, the term "executive state officer" includes:

    (1) The chief administrative law judge, the director of agriculture, the administrator of the office of marine safety, the administrator of the Washington basic health plan, the director of the department of services for the blind, the director of the state system of community and technical colleges, the director of community development, the secretary of corrections, the director of ecology, the commissioner of employment security, the chairman of the energy facility site evaluation council, the director of the energy office, the secretary of the state finance committee, the director of financial management, the director of fisheries, the executive secretary of the forest practices appeals board, the ((director of the gambling commission)) chair of the gambling and liquor control board, the director of general administration, the secretary of health, the administrator of the Washington state health care authority, the executive secretary of the health care facilities authority, the executive secretary of the higher education facilities authority, the director of the higher education personnel board, ((the executive secretary of the horse racing commission,)) the executive secretary of the human rights commission, the executive secretary of the indeterminate sentence review board, the director of the department of information services, the director of the interagency committee for outdoor recreation, the executive director of the state investment board, the director of labor and industries, the director of licensing, the director of the lottery commission, the director of the office of minority and women's business enterprises, the director of parks and recreation, the director of personnel, the executive director of the public disclosure commission, the director of retirement systems, the director of revenue, the secretary of social and health services, the chief of the Washington state patrol, the executive secretary of the board of tax appeals, the director of trade and economic development, the secretary of transportation, the secretary of the utilities and transportation commission, the director of veterans affairs, the director of wildlife, the president of each of the regional and state universities and the president of The Evergreen State College, each district and each campus president of each state community college;

    (2) Each professional staff member of the office of the governor;

    (3) Each professional staff member of the legislature; and

    (4) Central Washington University board of trustees, board of trustees of each community college, each member of the state board for community and technical colleges ((education)), state convention and trade center board of directors, committee for deferred compensation, Eastern Washington University board of trustees, Washington economic development finance authority, The Evergreen State College board of trustees, forest practices appeals board, forest practices board, gambling ((commission)) and liquor control board, Washington health care facilities authority, higher education coordinating board, higher education facilities authority, higher education personnel board, ((horse racing commission,)) state housing finance commission, human rights commission, indeterminate sentence review board, board of industrial insurance appeals, information services board, interagency committee for outdoor recreation, state investment board, ((liquor control board,)) lottery commission, marine oversight board, oil and gas conservation committee, Pacific Northwest electric power and conservation planning council, parks and recreation commission, personnel appeals board, personnel board, board of pilotage (([commissioners])) commissioners, pollution control hearings board, public disclosure commission, public pension commission, shorelines hearing board, state employees' benefits board, board of tax appeals, transportation commission, University of Washington board of regents, utilities and transportation commission, Washington state maritime commission, Washington public power supply system executive board, Washington State University board of regents, Western Washington University board of trustees, and wildlife commission.

 

    Sec. 58.  RCW 43.03.028 and 1991 c 3 s 294 are each amended to read as follows:

    (1) There is hereby created a state committee on agency officials' salaries to consist of seven members, or their designees, as follows:  The president of the University of Puget Sound; the chairperson of the council of presidents of the state's four-year institutions of higher education; the chairperson of the State Personnel Board; the president of the Association of Washington Business; the president of the Pacific Northwest Personnel Managers' Association; the president of the Washington State Bar Association; and the president of the Washington State Labor Council.  If any of the titles or positions mentioned in this subsection are changed or abolished, any person occupying an equivalent or like position shall be qualified for appointment by the governor to membership upon the committee.

    (2) The committee shall study the duties and salaries of the directors of the several departments and the members of the several boards and commissions of state government, who are subject to appointment by the governor or whose salaries are fixed by the governor, and of the chief executive officers of the following agencies of state government:

    The arts commission; the human rights commission; the board of accountancy; the board of pharmacy; the capitol historical association and museum; the eastern Washington historical society; the Washington state historical society; the interagency committee for outdoor recreation; the criminal justice training commission; the department of personnel; the state finance committee; the state library; the traffic safety commission; ((the horse racing commission;)) the advisory council on vocational education; the public disclosure commission; the state conservation commission; the commission on Hispanic affairs; the commission on Asian-American affairs; the state board for volunteer fire fighters; the transportation improvement board; the public ((employees)) employment relations commission; the forest practices appeals board; and the energy facilities site evaluation council.

    The committee shall report to the governor or the chairperson of the appropriate salary fixing authority at least once in each fiscal biennium on such date as the governor may designate, but not later than seventy-five days prior to the convening of each regular session of the legislature during an odd-numbered year, its recommendations for the salaries to be fixed for each position.

    (3) Committee members shall be reimbursed by the department of personnel for travel expenses under RCW 43.03.050 and 43.03.060.

 

    Sec. 59.  RCW 43.82.010 and 1990 c 47 s 1 are each amended to read as follows:

    (1) The director of the department of general administration, on behalf of the agency involved, shall purchase, lease, rent, or otherwise acquire all real estate, improved or unimproved, as may be required by elected state officials, institutions, departments, commissions, boards, and other state agencies, or federal agencies where joint state and federal activities are undertaken and may grant easements and transfer, exchange, sell, lease, or sublease all or part of any surplus real estate for those state agencies which do not otherwise have the specific authority to dispose of real estate.  This section does not transfer financial liability for the acquired property to the department of general administration.

    (2) Except for real estate occupied by federal agencies, the director shall determine the location, size, and design of any real estate or improvements thereon acquired or held pursuant to subsection (1) of this section.

    (3) The director is authorized to purchase, lease, rent, or otherwise acquire improved or unimproved real estate as owner or lessee and to lease or sublet all or a part of such real estate to state or federal agencies.  The director shall charge each using agency its proportionate rental which shall include an amount sufficient to pay all costs, including, but not limited to, those for utilities, janitorial and accounting services, and sufficient to provide for contingencies; which shall not exceed five percent of the average annual rental, to meet unforeseen expenses incident to management of the real estate.

    (4) If the director determines that it is necessary or advisable to undertake any work, construction, alteration, repair, or improvement on any real estate acquired pursuant to subsections (1) or (3) of this section, the director shall cause plans and specifications thereof and an estimate of the cost of such work to be made and filed in his or her office and the state agency benefiting thereby is hereby authorized to pay for such work out of any available funds:  PROVIDED, That the cost of executing such work shall not exceed the sum of twenty-five thousand dollars.  Work, construction, alteration, repair, or improvement in excess of twenty-five thousand dollars, other than that done by the owner of the property if other than the state, shall be performed in accordance with the public works law of this state.

    (5) In order to obtain maximum utilization of space, the director shall make space utilization studies, and shall establish standards for use of space by state agencies.

    (6) The director may construct new buildings on, or improve existing facilities, and furnish and equip, all real estate under his or her management.

    (7) All conveyances and contracts to purchase, lease, rent, transfer, exchange, or sell real estate and to grant and accept easements shall be approved as to form by the attorney general, signed by the director or the director's designee, and recorded with the county auditor of the county in which the property is located.

    (8) The director may delegate any or all of the functions specified in this section to any agency upon such terms and conditions as the director deems advisable.

    (9) This section does not apply to the acquisition of real estate by:

    (a) The state college and universities for research or experimental purposes;

    (b) The state gambling and liquor control board for liquor stores and warehouses; and

    (c) The department of natural resources, the department of fisheries, the department of wildlife, the department of transportation, and the state parks and recreation commission for purposes other than the leasing of offices, warehouses, and real estate for similar purposes.

    (10) Notwithstanding any provision in this chapter to the contrary, the department of general administration may negotiate ground leases for public lands on which property is to be acquired under a financing contract pursuant to chapter 39.94 RCW under terms approved by the state finance committee.

 

    Sec. 60.  RCW 51.12.020 and 1991 c 324 s 18 and 1991 c 246 s 4 are each reenacted and amended to read as follows:

    The following are the only employments which shall not be included within the mandatory coverage of this title:

    (1) Any person employed as a domestic servant in a private home by an employer who has less than two employees regularly employed forty or more hours a week in such employment.

    (2) Any person employed to do gardening, maintenance, repair, remodeling, or similar work in or about the private home of the employer.

    (3) A person whose employment is not in the course of the trade, business, or profession of his or her employer and is not in or about the private home of the employer.

    (4) Any person performing services in return for aid or sustenance only, received from any religious or charitable organization.

    (5) Sole proprietors or partners.

    (6) Any child under eighteen years of age employed by his or her parent or parents in agricultural activities on the family farm.

    (7) Jockeys while participating in or preparing horses for race meets licensed by the ((Washington horse racing commission)) gambling and liquor control board pursuant to chapter 67.16 RCW.

    (8)(a) Except as otherwise provided in (b) of this subsection, any bona fide officer of a corporation voluntarily elected or voluntarily appointed in accordance with the articles of incorporation or bylaws of the corporation, who at all times during the period involved is also a bona fide director, and who is also a shareholder of the corporation.  Only such officers who exercise substantial control in the daily management of the corporation and whose primary responsibilities do not include the performance of manual labor are included within this subsection.

    (b) Alternatively, a corporation that is not a "public company" as defined in RCW ((23B.01.400(19))) 23B.01.400(20) may exempt eight or fewer bona fide officers, who are voluntarily elected or voluntarily appointed in accordance with the articles of incorporation or bylaws of the corporation and who exercise substantial control in the daily management of the corporation, from coverage under this title without regard to the officers' performance of manual labor if the exempted officer is a shareholder of the corporation, or may exempt any number of officers if all the exempted officers are related by blood within the third degree or marriage.  If a corporation that is not a "public company" elects to be covered under subsection (8)(a) of this section, the corporation's election must be made on a form prescribed by the department and under such reasonable rules as the department may adopt.

    (c) Determinations respecting the status of persons performing services for a corporation shall be made, in part, by reference to Title 23B RCW and to compliance by the corporation with its own articles of incorporation and bylaws.  For the purpose of determining coverage under this title, substance shall control over form, and mandatory coverage under this title shall extend to all workers of this state, regardless of honorary titles conferred upon those actually serving as workers.

    (d) A corporation may elect to cover officers who are exempted by this subsection in the manner provided by RCW 51.12.110.

    (9) Services rendered by a musician or entertainer under a contract with a purchaser of the services, for a specific engagement or engagements when such musician or entertainer performs no other duties for the purchaser and is not regularly and continuously employed by the purchaser.  A purchaser does not include the leader of a group or recognized entity who employs other than on a casual basis musicians or entertainers.

    (10) Services performed by a newspaper carrier selling or distributing newspapers on the street or from house to house.

    (11) Services performed by an insurance agent, insurance broker, or insurance solicitor, as defined in RCW 48.17.010, 48.17.020, and 48.17.030, respectively.

    (12) Services performed by a booth renter as defined in RCW 18.16.020.  However, a person exempted under this subsection may elect coverage under RCW 51.32.030.

 

    Sec. 61.  RCW 51.16.210 and 1989 c 385 s 1 are each amended to read as follows:

    (1) The department shall assess premiums, under the provisions of this section, for certain horse racing employments licensed in accordance with chapter 67.16 RCW.  This premium assessment shall be for the purpose of providing industrial insurance coverage for employees of trainers licensed under chapter 67.16 RCW, including but not limited to exercise riders, pony riders, and grooms, and including all on or off track employment.  For the purposes of RCW 51.16.210, 67.16.300, 51.16.140, 51.32.073, and 67.16.020 a hotwalker shall be considered a groom.  The department may adopt rules under chapter 34.05 RCW to carry out the purposes of this section, including rules providing for alternative reporting periods and payment due dates for coverage under this section.  The department rules shall ensure that no licensee licensed prior to May 13, 1989, shall pay more than the assessment fixed at the basic manual rate.

    (2) The department shall compute industrial insurance premium rates on a per license basis, which premiums shall be assessed at the time of each issuance or renewal of the license for owners, trainers, and grooms in amounts established by department rule for coverage under this section.  Premium assessments shall be determined in accordance with the requirements of this title, except that assessments shall not be experience rated and shall be fixed at the basic manual rate.  However, rates may vary according to differences in working conditions at major tracks and fair tracks.

    (3) For the purposes of paying premiums and assessments under this section and making reports under this title, individuals licensed as trainers by the ((Washington horse racing commission)) gambling and liquor control board shall be considered employers.  The premium assessment for a groom's license shall be paid by the trainer responsible for signing the groom's license application and shall be payable at the time of license issuance or renewal.

    (4) The fee to be assessed on owner licenses as required by this section shall not exceed one hundred fifty dollars.  However, those owners having less than a full ownership in a horse or horses shall pay a percentage of the required license fee that is equal to the total percentage of the ownership that the owner has in the horse or horses.  In no event shall an owner having an ownership percentage in more than one horse pay more than a one hundred fifty-dollar license fee.  The assessment on each owner's license shall not imply that an owner is an employer, but shall be required as part of the privilege of holding an owner's license.

    (5) Premium assessments under this section shall be collected by the ((Washington horse racing commission)) gambling and liquor control board and deposited in the industrial insurance trust funds as provided under department rules.

 

    Sec. 62.  RCW 66.04.010 and 1991 c 192 s 1 are each amended to read as follows:

    In this title, unless the context otherwise requires:

    (1) "Alcohol" is that substance known as ethyl alcohol, hydrated oxide of ethyl, or spirit of wine, which is commonly produced by the fermentation or distillation of grain, starch, molasses, or sugar, or other substances including all dilutions and mixtures of this substance.  The term "alcohol" does not include alcohol in the possession of a manufacturer or distiller of alcohol fuel, as described in RCW 66.12.130, which is intended to be denatured and used as a fuel for use in motor vehicles, farm implements, and machines or implements of husbandry.

    (2) "Beer" means any malt beverage or malt liquor as these terms are defined in this chapter.

    (3) "Brewer" means any person engaged in the business of manufacturing beer and malt liquor.

    (4) "Board" means the gambling and liquor control board, constituted under this title.

    (5) "Club" means an organization of persons, incorporated or unincorporated, operated solely for fraternal, benevolent, educational, athletic or social purposes, and not for pecuniary gain.

    (6) "Consume" includes the putting of liquor to any use, whether by drinking or otherwise.

    (7) "Dentist" means a practitioner of dentistry duly and regularly licensed and engaged in the practice of his or her profession within the state pursuant to chapter 18.32 RCW.

    (8) "Distiller" means a person engaged in the business of distilling spirits.

    (9) "Druggist" means any person who holds a valid certificate and is a registered pharmacist and is duly and regularly engaged in carrying on the business of pharmaceutical chemistry pursuant to chapter 18.64 RCW.

    (10) "Drug store" means a place whose principal business is, the sale of drugs, medicines and pharmaceutical preparations and maintains a regular prescription department and employs a registered pharmacist during all hours the drug store is open.

    (11) "Employee" means any person employed by the board, including a vendor, as hereinafter in this section defined.

    (12) "Fund" means 'liquor revolving fund.'

    (13) "Hotel" means every building or other structure kept, used, maintained, advertised or held out to the public to be a place where food is served and sleeping accommodations are offered for pay to transient guests, in which twenty or more rooms are used for the sleeping accommodation of such transient guests and having one or more dining rooms where meals are served to such transient guests, such sleeping accommodations and dining rooms being conducted in the same building and buildings, in connection therewith, and such structure or structures being provided, in the judgment of the board, with adequate and sanitary kitchen and dining room equipment and capacity, for preparing, cooking and serving suitable food for its guests:  PROVIDED FURTHER, That in cities and towns of less than five thousand population, the board shall have authority to waive the provisions requiring twenty or more rooms.

    (14) "Imprisonment" means confinement in the county jail.

    (15) "Liquor" includes the four varieties of liquor herein defined (alcohol, spirits, wine and beer), and all fermented, spirituous, vinous, or malt liquor, or combinations thereof, and mixed liquor, a part of which is fermented, spirituous, vinous or malt liquor, or otherwise intoxicating; and every liquid or solid or semisolid or other substance, patented or not, containing alcohol, spirits, wine or beer, and all drinks or drinkable liquids and all preparations or mixtures capable of human consumption, and any liquid, semisolid, solid, or other substance, which contains more than one percent of alcohol by weight shall be conclusively deemed to be intoxicating.  Liquor does not include confections or food products that contain one percent or less of alcohol by weight.

    (16) "Manufacturer" means a person engaged in the preparation of liquor for sale, in any form whatsoever.

    (17) "Malt beverage" or "malt liquor" means any beverage such as beer, ale, lager beer, stout, and porter obtained by the alcoholic fermentation of an infusion or decoction of pure hops, or pure extract of hops and pure barley malt or other wholesome grain or cereal in pure water containing not more than eight percent of alcohol by weight, and not less than one-half of one percent of alcohol by volume.  For the purposes of this title, any such beverage containing more than eight percent of alcohol by weight shall be referred to as "strong beer."

    (18) "Package" means any container or receptacle used for holding liquor.

    (19) "Permit" means a permit for the purchase of liquor under this title.

    (20) "Person" means an individual, copartnership, association, or corporation.

    (21) "Physician" means a medical practitioner duly and regularly licensed and engaged in the practice of his or her profession within the state pursuant to chapter 18.71 RCW.

    (22) "Prescription" means a memorandum signed by a physician and given by him or her to a patient for the obtaining of liquor pursuant to this title for medicinal purposes.

    (23) "Public place" includes streets and alleys of incorporated cities and towns; state or county or township highways or roads; buildings and grounds used for school purposes; public dance halls and grounds adjacent thereto; those parts of establishments where beer may be sold under this title, soft drink establishments, public buildings, public meeting halls, lobbies, halls and dining rooms of hotels, restaurants, theatres, stores, garages and filling stations which are open to and are generally used by the public and to which the public is permitted to have unrestricted access; railroad trains, stages, and other public conveyances of all kinds and character, and the depots and waiting rooms used in conjunction therewith which are open to unrestricted use and access by the public; publicly owned bathing beaches, parks, and/or playgrounds; and all other places of like or similar nature to which the general public has unrestricted right of access, and which are generally used by the public.

    (24) "Regulations" means regulations made by the board under the powers conferred by this title.

    (25) "Restaurant" means any establishment provided with special space and accommodations where, in consideration of payment, food, without lodgings, is habitually furnished to the public, not including drug stores and soda fountains.

    (26) "Sale" and "sell" include exchange, barter, and traffic; and also include the selling or supplying or distributing, by any means whatsoever, of liquor, or of any liquid known or described as beer or by any name whatever commonly used to describe malt or brewed liquor or of wine, by any person to any person; and also include a sale or selling within the state to a foreign consignee or his or her agent in the state.  "Sale" and "sell" shall not include the giving, at no charge, of a reasonable amount of liquor by a person not licensed by the board to a person not licensed by the board, for personal use only.  "Sale" and "sell" also does not include a raffle authorized under RCW 9.46.0315:  PROVIDED, That the nonprofit organization conducting the raffle has obtained the appropriate permit from the board.

    (27) "Soda fountain" means a place especially equipped with apparatus for the purpose of dispensing soft drinks, whether mixed or otherwise.

    (28) "Spirits" means any beverage which contains alcohol obtained by distillation, including wines exceeding twenty-four percent of alcohol by volume.

    (29) "Store" means a state liquor store established under this title.

    (30) "Tavern" means any establishment with special space and accommodation for sale by the glass and for consumption on the premises, of beer, as herein defined.

    (31) "Vendor" means a person employed by the board as a store manager under this title.

    (32) "Winery" means a business conducted by any person for the manufacture of wine for sale, other than a domestic winery.

    (33) "Domestic winery" means a place where wines are manufactured or produced within the state of Washington.

    (34) "Wine" means any alcoholic beverage obtained by fermentation of fruits (grapes, berries, apples, et cetera) or other agricultural product containing sugar, to which any saccharine substances may have been added before, during or after fermentation, and containing not more than twenty-four percent of alcohol by volume, including sweet wines fortified with wine spirits, such as port, sherry, muscatel and angelica, not exceeding twenty-four percent of alcohol by volume and not less than one-half of one percent of alcohol by volume.  For purposes of this title, any beverage containing no more than fourteen percent of alcohol by volume when bottled or packaged by the manufacturer shall be referred to as "table wine," and any beverage containing alcohol in an amount more than fourteen percent by volume when bottled or packaged by the manufacturer shall be referred to as "fortified wine."  However, "fortified wine" shall not include:  (a) Wines that are both sealed or capped by cork closure and aged two years or more; and (b) wines that contain more than fourteen percent alcohol by volume solely as a result of the natural fermentation process and that have not been produced with the addition of wine spirits, brandy, or alcohol.

    This subsection shall not be interpreted to require that any wine be labeled with the designation "table wine" or "fortified wine."

    (35) "Beer wholesaler" means a person who buys beer from a brewer or brewery located either within or beyond the boundaries of the state for the purpose of selling the same pursuant to this title, or who represents such brewer or brewery as agent.

    (36) "Wine wholesaler" means a person who buys wine from a vintner or winery located either within or beyond the boundaries of the state for the purpose of selling the same not in violation of this title, or who represents such vintner or winery as agent.

 

    Sec. 63.  RCW 66.08.020 and 1933 ex.s. c 62 s 5 are each amended to read as follows:

    The administration of this title, including the general control, management and supervision of all liquor stores, shall be vested in the gambling and liquor control board, constituted under this title.

 

    Sec. 64.  RCW 66.08.022 and 1961 ex.s. c 6 s 2 are each amended to read as follows:

    The attorney general shall be the general counsel of the gambling and liquor control board and he or she shall institute and prosecute all actions and proceedings which may be necessary in the enforcement and carrying out of the provisions of this chapter and Title 66 RCW.

    ((He)) The attorney general shall assign such assistants as may be necessary to the exclusive duty of assisting the gambling and liquor control board in the enforcement of Title 66 RCW.

 

    Sec. 65.  RCW 66.08.075 and 1937 c 217 s 5 are each amended to read as follows:

    No official or employee of the gambling and liquor control board of the state of Washington shall, during his or her term of office or employment, or for a period of two years immediately following the termination thereof, represent directly or indirectly any manufacturer or wholesaler of liquor in the sale of liquor to the board.

 

    Sec. 66.  RCW 66.08.230 and 1987 c 452 s 12 are each amended to read as follows:

    To provide for the operation of the wine commission prior to its first quarterly disbursement, the gambling and liquor control board shall, on July 1, 1987, disburse one hundred ten thousand dollars to the wine commission.  However, such disbursement shall be repaid to the gambling and liquor control board by a reduction from the quarterly disbursements to the wine commission under RCW 66.24.210 of twenty-seven thousand five hundred dollars each quarter until such amount is repaid.  These funds shall be used to establish the Washington wine commission and the other purposes delineated in chapter 15.88 RCW.

 

    Sec. 67.  RCW 66.12.190 and 1991 c 149 s 1 are each amended to read as follows:

    Notwithstanding any other provision of Title 66 RCW, the holder of a license to manufacture wine in a state which affords holders of a Washington license issued under RCW 66.24.170 an equal reciprocal shipping privilege, may ship for personal use and not for resale not more than two cases of wine of its own manufacture per year, with each case containing not more than nine liters, to any state resident twenty-one years of age or older.  Out-of-state wine manufacturers that are authorized to ship wine pursuant to RCW 66.12.190 through 66.12.220 shall first obtain a license from the Washington state gambling and liquor control board under procedures prescribed by rule of the board, before shipping wine into Washington.  Delivery of a shipment under this section shall not be deemed to constitute a sale in this state.

 

    Sec. 68.  RCW 66.16.010 and 1939 c 172 s 10 are each amended to read as follows:

    (1) There shall be established at such places throughout the state as the gambling and liquor control board, constituted under this title, shall deem advisable, stores to be known as "state liquor stores," for the sale of liquor in accordance with the provisions of this title and the regulations:  PROVIDED, That the prices of all liquor shall be fixed by the board from time to time so that the net annual revenue received by the board therefrom shall not exceed thirty-five percent.

    (2) The gambling and liquor control board may, from time to time, fix the special price at which pure ethyl alcohol may be sold to physicians and dentists and institutions regularly conducted as hospitals, for use or consumption only in such hospitals; and may also fix the special price at which pure ethyl alcohol may be sold to schools, colleges and universities within the state for use for scientific purposes.  Regularly conducted hospitals may have right to purchase pure ethyl alcohol on a federal permit.

    (3) The gambling and liquor control board may also fix the special price at which pure ethyl alcohol may be sold to any department, branch or institution of the state of Washington, federal government, or to any person engaged in a manufacturing or industrial business or in scientific pursuits requiring alcohol for use therein.

    (4) The gambling and liquor control board may also fix a special price at which pure ethyl alcohol may be sold to any private individual, and shall make regulations governing such sale of alcohol to private individuals as shall promote, as nearly as may be, the minimum purchase of such alcohol by such persons.

 

    Sec. 69.  RCW 66.24.010 and 1988 c 200 s 1 are each amended to read as follows:

    (1) Every license shall be issued in the name of the applicant, and the holder thereof shall not allow any other person to use the license.

    (2) For the purpose of considering any application for a license, the board may cause an inspection of the premises to be made, and may inquire into all matters in connection with the construction and operation of the premises.  For the purpose of reviewing any application for a license and for considering the denial, suspension or revocation of any license, the gambling and liquor control board may consider any prior criminal conduct of the applicant and the provisions of RCW 9.95.240 and of chapter 9.96A RCW shall not apply to such cases.  The board may, in its discretion, grant or refuse the license applied for.  No retail license of any kind may be issued to:

    (a) A person who has not resided in the state for at least one month prior to making application, except in cases of licenses issued to dining places on railroads, boats, or aircraft;

    (b) A copartnership, unless all of the members thereof are qualified to obtain a license, as provided in this section;

    (c) A person whose place of business is conducted by a manager or agent, unless such manager or agent possesses the same qualifications required of the licensee;

    (d) A corporation, unless it was created under the laws of the state of Washington or holds a certificate of authority to transact business in the state of Washington.

    (3) The board may, in its discretion, subject to the provisions of RCW 66.08.150, suspend or cancel any license; and all rights of the licensee to keep or sell liquor thereunder shall be suspended or terminated, as the case may be.  The board may request the appointment of administrative law judges under chapter 34.12 RCW who shall have power to administer oaths, issue subpoenas for the attendance of witnesses and the production of papers, books, accounts, documents, and testimony, examine witnesses, and to receive testimony in any inquiry, investigation, hearing, or proceeding in any part of the state, under such rules ((and regulations)) as the board may adopt.

    Witnesses shall be allowed fees and mileage each way to and from any such inquiry, investigation, hearing, or proceeding at the rate authorized by RCW 34.05.446((, as now or hereafter amended)).  Fees need not be paid in advance of appearance of witnesses to testify or to produce books, records, or other legal evidence.

    In case of disobedience of any person to comply with the order of the board or a subpoena issued by the board, or any of its members, or administrative law judges, or on the refusal of a witness to testify to any matter regarding which he may be lawfully interrogated, the judge of the superior court of the county in which the person resides, on application of any member of the board or administrative law judge, shall compel obedience by contempt proceedings, as in the case of disobedience of the requirements of a subpoena issued from said court or a refusal to testify therein.

    (4) Upon receipt of notice of the suspension or cancellation of a license, the licensee shall forthwith deliver up the license to the board.  Where the license has been suspended only, the board shall return the license to the licensee at the expiration or termination of the period of suspension.  The board shall notify all vendors in the city or place where the licensee has its premises of the suspension or cancellation of the license; and no employee may allow or cause any liquor to be delivered to or for any person at the premises of that licensee.

    (5)(a) At the time of the original issuance of a class H license, the board shall prorate the license fee charged to the new licensee according to the number of calendar quarters, or portion thereof, remaining until the first renewal of that license is required.

    (b) Unless sooner canceled, every license issued by the board shall expire at midnight of the thirtieth day of June of the fiscal year for which it was issued.  However, if the board deems it feasible and desirable to do so, it may establish, by rule pursuant to chapter 34.05 RCW, a system for staggering the annual renewal dates for any and all licenses authorized by this chapter.  If such a system of staggered annual renewal dates is established by the board, the license fees provided by this chapter shall be appropriately prorated during the first year that the system is in effect.

    (6) Every license issued under this section shall be subject to all conditions and restrictions imposed by this title or by the ((regulations)) rules in force from time to time.  All conditions and restrictions imposed by the board in the issuance of an individual license shall be listed on the face of the individual license along with the trade name, address, and expiration date.

    (7) Every licensee shall post and keep posted its license, or licenses, in a conspicuous place on the premises.

    (8) Before the board shall issue a license to an applicant it shall give notice of such application to the chief executive officer of the incorporated city or town, if the application be for a license within an incorporated city or town, or to the county legislative authority, if the application be for a license outside the boundaries of incorporated cities or towns; and such incorporated city or town, through the official or employee selected by it, or the county legislative authority or the official or employee selected by it, shall have the right to file with the board within twenty days after date of transmittal of such notice, written objections against the applicant or against the premises for which the license is asked, and shall include with such objections a statement of all facts upon which such objections are based, and in case written objections are filed, may request and the gambling and liquor control board may in its discretion hold a formal hearing subject to the applicable provisions of Title 34 RCW((, as now or hereafter amended)).  Upon the granting of a license under this title the board shall send a duplicate of the license or written notification to the chief executive officer of the incorporated city or town in which the license is granted, or to the county legislative authority if the license is granted outside the boundaries of incorporated cities or towns.

    (9) Before the board issues any license to any applicant, it shall give (a) due consideration to the location of the business to be conducted under such license with respect to the proximity of churches, schools, and public institutions and (b) written notice by certified mail of the application to churches, schools, and public institutions within five hundred feet of the premises to be licensed.  The board shall issue no beer retailer license class A, B, D, or E or wine retailer license class C or F or class H license covering any premises not now licensed, if such premises are within five hundred feet of the premises of any tax-supported public elementary or secondary school measured along the most direct route over or across established public walks, streets, or other public passageway from the outer property line of the school grounds to the nearest public entrance of the premises proposed for license, and if, after receipt by the school or public institution of the notice as provided in this subsection, the board receives written notice, within twenty days after posting such notice, from an official representative or representatives of the school within five hundred feet of said proposed licensed premises, indicating to the board that there is an objection to the issuance of such license because of proximity to a school.  For the purpose of this section, church shall mean a building erected for and used exclusively for religious worship and schooling or other activity in connection therewith. No liquor license may be issued or reissued by the board to any motor sports facility or licensee operating within the motor sports facility unless the motor sports facility enforces a program reasonably calculated to prevent alcohol or alcoholic beverages not purchased within the facility from entering the facility and such program is approved by local law enforcement agencies.  It is the intent under this subsection that a retail license shall not be issued by the board where doing so would, in the judgment of the board, adversely affect a private school meeting the requirements for private schools under Title 28A RCW, which school is within five hundred feet of the proposed licensee.  The board shall fully consider and give substantial weight to objections filed by private schools.  If a license is issued despite the proximity of a private school, the board shall state in a letter addressed to the private school the board's reasons for issuing the license.

    (10) The restrictions set forth in the preceding subsection shall not prohibit the board from authorizing the transfer of existing licenses now located within the restricted area to other persons or locations within the restricted area:  PROVIDED, Such transfer shall in no case result in establishing the licensed premises closer to a church or school than it was before the transfer.

    (11) Nothing in this section prohibits the board, in its discretion, from issuing a temporary retail or wholesaler license to a transferee of a retail or wholesaler license to continue the operation of the retail or wholesaler premises during the period a transfer application for the license from person to person at the same premises is pending and when the following conditions exist:

    (a) The licensed premises has been operated under a retail or wholesaler license within ninety days of the date of filing the application for a temporary license;

    (b) The retail or wholesaler license for the premises has been surrendered pursuant to issuance of a temporary operating license;

    (c) The applicant for the temporary license has filed with the board an application for transfer of the retail or wholesaler license at such premises to himself or herself; and

    (d) The application for a temporary license is accompanied by a temporary license fee established by the board by rule.

    A temporary license issued by the board under this section shall be for a period not to exceed sixty days.  A temporary license may be extended at the discretion of the board for an additional sixty-day period upon payment of an additional fee and upon compliance with all conditions required in this section.

    Refusal by the board to issue or extend a temporary license shall not entitle the applicant to request a hearing.  A temporary license may be canceled or suspended summarily at any time if the board determines that good cause for cancellation or suspension exists.  RCW 66.08.130 and chapter 34.05 RCW shall apply to temporary licenses.

    Application for a temporary license shall be on such form as the board shall prescribe.  If an application for a temporary license is withdrawn before issuance or is refused by the board, the fee which accompanied such application shall be refunded in full.

 

    Sec. 70.  RCW 66.24.160 and 1981 1st ex.s. c 5 s 30 are each amended to read as follows:

    A liquor importer's license may be issued to any qualified person, firm or corporation, entitling the holder thereof to import into the state any liquor other than beer or wine; to store the same within the state, and to sell and export the same from the state; fee six hundred dollars per annum.  Such liquor importer's license shall be subject to all conditions and restrictions imposed by this title or by the rules ((and regulations)) of the board, and shall be issued only upon such terms and conditions as may be imposed by the board.  No liquor importer's license shall be required in sales to the Washington state gambling and liquor control board.

 

    Sec. 71.  RCW 66.24.185 and 1984 c 19 s 1 are each amended to read as follows:

    (1) There shall be a license for bonded wine warehouses which shall authorize the storage of bottled wine only.  Under this license a licensee may maintain a warehouse for the storage of wine off the premises of a winery.

    (2) The board shall adopt similar qualifications for a bonded wine warehouse license as required for obtaining a domestic winery license as specified in RCW 66.24.010 and 66.24.170.  A licensee must be a sole proprietor, a partnership or a corporation.  One or more domestic wineries may operate as a partnership, corporation, business co-op or agricultural co-op for the purposes of obtaining a bonded wine warehouse license.

    (3) All bottled wine shipped to a bonded wine warehouse from a winery or another bonded wine warehouse shall remain under bond and no tax imposed under RCW 66.24.210 shall be due, unless the wine is removed from bond and shipped to a licensed Washington wine wholesaler.  Wine may be removed from a bonded wine warehouse only for the purpose of being (a) exported from the state, (b) shipped to a licensed Washington wine wholesaler, or (c) returned to a winery or bonded wine warehouse.

    (4) Warehousing of wine by any person other than (a) a licensed domestic winery or a bonded wine warehouse licensed under the provisions of this section, (b) a licensed Washington wine wholesaler, (c) a licensed Washington wine importer, or (d) the gambling and liquor control board, is prohibited.

    (5) A license applicant shall hold a federal permit for a bonded wine cellar and post a continuing wine tax bond in the amount of five thousand dollars in a form prescribed by the board prior to the issuance of a bonded wine warehouse license.  The fee for this license shall be one hundred dollars per annum.

    (6) The board shall adopt rules requiring a bonded wine warehouse to be physically secure, zoned for the intended use and physically separated from any other use.

    (7) Every licensee shall submit to the board a monthly report of movement of bottled wines to and from a bonded wine warehouse in a form prescribed by the board.  The board may adopt other necessary procedures by which bonded wine warehouses are licensed and regulated.

 

    Sec. 72.  RCW 66.24.204 and 1981 1st ex.s. c 5 s 33 are each amended to read as follows:

    (1) It shall be unlawful for any person, firm or corporation, to import wine into the state of Washington or to transport or cause the same to be transported into the state of Washington for sale therein, unless such person, firm or corporation, has obtained from the Washington state gambling and liquor control board and have in force a wine importer's license.  The license fee for such wine importer's license shall be sixty dollars per annum;

    (2) The wine importer's license herein provided for shall authorize the holder thereof to sell wine imported, or transported, or caused to be transported thereunder to licensed wine wholesalers within the state and to export the same from the state.  Every person, firm or corporation, licensed as a wine importer, shall establish and maintain a principal office within the state, at which shall be kept proper records of all wine imported into the state, under his, her, their, or its license.  No wine importer's license shall be granted to a nonresident of the state, nor to a corporation whose principal place of business is outside the state, until such applicant has established such principal office within the state as hereinbefore provided, and has designated a statutory agent within the state upon whom service can be made;

    (3) Every wine importer's license issued under this title shall be subject to all conditions and restrictions imposed by this title, or by the rules ((and regulations)) of the board.

 

    Sec. 73.  RCW 66.24.206 and 1981 1st ex.s. c 5 s 34 are each amended to read as follows:

    No wine wholesaler nor wine importer shall purchase any wine not manufactured within the state of Washington by a winery holding a license as a manufacturer of wine from the state of Washington, and/or transport or cause the same to be transported into the state of Washington for resale therein, unless the winery or manufacturer of such wine, or the licensed importer of wine produced outside the United States, has obtained from the Washington state gambling and liquor control board a certificate of approval, as hereinafter provided.  The certificate of approval herein provided for shall not be granted unless and until such winery, manufacturer, or licensed importer of wine produced outside the United States, shall have made a written agreement with the board to furnish to the board, on or before the twentieth day of each month, a report under oath, on a form to be prescribed by the board, showing the quantity of wine sold or delivered to each licensed wine importer, or imported by the licensed importer of wine produced outside the United States, during the preceding month, and shall further have agreed with the board, that such wineries, manufacturers, or licensed importers of wine produced outside the United States, and all general sales corporations or agencies maintained by them, and all of their trade representatives and agents, shall and will faithfully comply with all laws of the state of Washington pertaining to the sale of intoxicating liquors and all rules ((and regulations)) of the Washington state gambling and liquor control board.  If any such winery, manufacturer, or licensed importer of wine produced outside the United States, shall, after obtaining such certificate, fail to submit such report, or if such winery, manufacturer, or licensed importer of wine produced outside the United States, or general sales corporations or agencies maintained by them, or their trade representatives or agents, shall violate the terms of such agreement, the board shall, in its discretion, suspend or revoke such certificate:  PROVIDED, HOWEVER, That such certificates of approval shall only authorize the holder thereof to ship or import into the state of Washington specifically named designated and identified types of wine which conform to the provisions of RCW 66.28.110 and for which the gambling and liquor control board has issued a certificate of label approval.  The Washington state gambling and liquor control board shall not certify wines labeled with names which may be confused with other nonalcoholic beverages, whether manufactured or produced from a domestic winery or imported, nor wines which fail to meet quality standards established by the board.

    The fee for the certificate of approval, issued pursuant to the provisions of this title, shall be one hundred dollars per annum, which sum shall accompany the application for such certificate.

 

    Sec. 74.  RCW 66.24.210 and 1991 c 192 s 3 are each amended to read as follows:

    (1) There is hereby imposed upon all wines sold to wine wholesalers and the Washington state gambling and liquor control board, within the state a tax at the rate of twenty and one-fourth cents per liter:  PROVIDED, HOWEVER, That wine sold or shipped in bulk from one winery to another winery shall not be subject to such tax.  The tax provided for in this section may, if so prescribed by the board, be collected by means of stamps to be furnished by the board, or by direct payments based on wine purchased by wine wholesalers.  Every person purchasing wine under the provisions of this section shall on or before the twentieth day of each month report to the board all purchases during the preceding calendar month in such manner and upon such forms as may be prescribed by the board, and with such report shall pay the tax due from the purchases covered by such report unless the same has previously been paid.  Any such purchaser of wine whose applicable tax payment is not postmarked by the twentieth day following the month of purchase will be assessed a penalty at the rate of two percent a month or fraction thereof.  If this tax be collected by means of stamps, every such person shall procure from the board revenue stamps representing the tax in such form as the board shall prescribe and shall affix the same to the package or container in such manner and in such denomination as required by the board and shall cancel the same prior to the delivery of the package or container containing the wine to the purchaser.  If the tax is not collected by means of stamps, the board may require that every such person shall execute to and file with the board a bond to be approved by the board, in such amount as the board may fix, securing the payment of the tax.  If any such person fails to pay the tax when due, the board may forthwith suspend or cancel the license until all taxes are paid.

    (2) An additional tax is imposed equal to the rate specified in RCW 82.02.030 multiplied by the tax payable under subsection (1) of this section.  All revenues collected during any month from this additional tax shall be transferred to the state general fund by the twenty-fifth day of the following month.

    (3) An additional tax is imposed on wines subject to tax under subsection (1) of this section, at the rate of one-fourth of one cent per liter for wine sold after June 30, 1987.  Such additional tax shall cease to be imposed on July 1, 1993.  All revenues collected under this subsection (3) shall be disbursed quarterly to the Washington wine commission for use in carrying out the purposes of chapter 15.88 RCW.

    (4) Until July 1, 1995, an additional tax is imposed on all wine subject to tax under subsection (1) of this section.  The additional tax is equal to twenty-three and forty-four one-hundredths cents per liter on fortified wine as defined in RCW 66.04.010(34) when bottled or packaged by the manufacturer and one cent per liter on all other wine.  All revenues collected during any month from this additional tax shall be deposited in the drug enforcement and education account under RCW 69.50.520 by the twenty-fifth day of the following month.

 

    Sec. 75.  RCW 66.24.260 and 1981 1st ex.s. c 5 s 15 are each amended to read as follows:

    (1) It shall be unlawful for any person, firm or corporation, to import beer into the state of Washington or to transport or cause the same to be transported into the state of Washington for sale therein, unless such person, firm or corporation, has obtained from the Washington state gambling and liquor control board and have in force a beer importer's license.  The license fee for such beer importer's license shall be sixty dollars per annum;

    (2) The beer importer's license herein provided for shall authorize the holder thereof to sell beer imported, or transported, or caused to be transported thereunder to licensed beer wholesalers within the state and to export the same from the state.  Every person, firm or corporation, licensed as a beer importer, shall establish and maintain a principal office within the state, at which shall be kept proper records of all beer imported into the state, under his, her, their, or its license.  No beer importer's license shall be granted to a nonresident of the state, nor to a corporation whose principal place of business is outside the state, until such applicant has established such principal office within the state as hereinbefore provided, and has designated a statutory agent within the state upon whom service can be made;

    (3) Every beer importer's license issued under this title shall be subject to all conditions and restrictions imposed by this title, or by the rules ((and regulations)) of the board.

 

    Sec. 76.  RCW 66.24.270 and 1981 1st ex.s. c 5 s 35 are each amended to read as follows:

    (1) Every person, firm or corporation, holding a license to manufacture malt liquors within the state of Washington, shall, on or before the twentieth day of each month, furnish to the Washington state gambling and liquor control board, on a form to be prescribed by the board, a statement showing the quantity of malt liquors sold for resale during the preceding calendar month to each beer wholesaler within the state of Washington;

    (2) No beer wholesaler nor beer importer shall purchase any beer not manufactured within the state of Washington by a brewer holding a license as a manufacturer of malt liquors from the state of Washington, and/or transport or cause the same to be transported into the state of Washington for resale therein, unless the brewer or manufacturer of such beer or the licensed importer of beer produced outside the United States has obtained from the Washington state gambling and liquor control board a certificate of approval, as hereinafter provided.  The certificate of approval herein provided for shall not be granted unless and until such brewer or manufacturer of malt liquors or the licensed importer of beer produced outside the United States shall have made a written agreement with the board to furnish to the board, on or before the twentieth day of each month, a report under oath, on a form to be prescribed by the board, showing the quantity of beer sold or delivered to each licensed beer importer or imported by the licensed importer of beer produced outside the United States during the preceding month, and shall further have agreed with the board, that such brewer or manufacturer of malt liquors or the licensed importer of beer produced outside the United States and all general sales corporations or agencies maintained by such brewers or manufacturers or importers, and all trade representatives or agents of such brewer or manufacturer of malt liquors or the licensed importer of beer produced outside the United States, and of such general sales corporations and agencies, shall and will faithfully comply with all laws of the state of Washington pertaining to the sale of intoxicating liquors and all rules ((and regulations)) of the Washington state gambling and liquor control board.  If any such brewer or manufacturer of malt liquors or the licensed importer of beer produced outside the United States shall, after obtaining such certificate, fail to submit such report, or if such brewer or manufacturer of malt liquors or the licensed importer of beer produced outside the United States or general sales corporation or agency maintained by such brewers or manufacturers or importers, or any representative or agent thereof, shall violate the terms of such agreement, the board shall, in its discretion, suspend or revoke such certificate;

    (3) The fee for the certificate of approval, issued pursuant to the provisions of this title, shall be one hundred dollars per annum, which sum shall accompany the application for such certificate.

 

    Sec. 77.  RCW 66.24.480 and 1951 c 120 s 2 are each amended to read as follows:

    "Bottle club" means a club or association operating for profit or otherwise and conducting or maintaining premises in which the members or other persons may resort for the primary or incidental purpose of keeping or consuming liquor on the premises.

    Except as permitted under a license issued by the Washington state gambling and liquor control board, it is unlawful for any person to conduct or maintain by himself or herself or by associating with others, or to in any manner aid, assist, or abet in conducting or maintaining a bottle club.

 

    Sec. 78.  RCW 66.24.481 and 1969 ex.s. c 250 s 2 are each amended to read as follows:

    No public place or club, or agent, servant or employee thereof, shall keep or allow to be kept, either by itself, its agent, servant or employee, or any other person, any liquor in any place maintained or conducted by such public place or club, nor shall it permit the drinking of any liquor in any such place, unless the sale of liquor in said place is authorized by virtue of a valid and subsisting license issued by the Washington state gambling and liquor control board, or the consumption of liquor in said place is authorized by a special banquet permit issued by said board.  Every person who violates any provision of this section shall be guilty of a gross misdemeanor.

    "Public place," for purposes of this section only, shall mean in addition to the definition set forth in RCW ((66.04.010(24))) 66.04.010(23), any place to which admission is charged or in which any pecuniary gain is realized by the owner or operator of such place in selling or vending food or soft drinks.

 

    Sec. 79.  RCW 66.24.490 and 1987 c 386 s 6 are each amended to read as follows:

    (1) There shall be a retailer's license to be designated as a class I license; this shall be a special occasion license to be issued to the holder of a class H license to extend the privilege of selling and serving spirituous liquor by the individual glass, beer, and wine, at retail, for consumption on the premises, to members and guests of a society or organization on special occasions at a specified date and place when such special occasions of such groups are held on premises other than the class H licensed premises and for consumption on the premises of such outside location.  The holder of such special occasion license shall be allowed to remove from the liquor stocks at the licensed class H premises, liquor for sale and service at such special occasion locations.  Such special class I license shall be issued for a specified date and place and upon payment of a fee of twenty-five dollars per day or, upon proper application to the gambling and liquor control board, an annual class I license may be issued to the holder of a class H license upon payment of a fee of three hundred fifty dollars.

    (2) The holder of an annual class I license shall obtain prior board approval for each event at which the class I license will be utilized.  When applying for such board approval, the class I licensee shall provide to the board all necessary or requested information concerning the society or organization which will be holding the function at which the class I license will be utilized.

    (3) Upon receipt of a request for utilization of a class I license at a particular time and place, the board shall give notification of the pending request to the chief executive officer of the incorporated city or town, if the function is to be held within an incorporated city or town, or to the county legislative authority if the function is to be held outside the boundaries of incorporated cities or towns.

    (4) If attendance at the function, for which class I license utilization approval is requested, will be open to the general public, board approval may only be given where the society or organization sponsoring the function is within the definition of "society or organization" in RCW 66.24.375.  If attendance at the function will be limited to members and invited guests of the sponsoring society or organization, board approval may be given even though the sponsoring society or organization is not within the definition of "society or organization" in RCW 66.24.375.

    (5) Where the applicant for either a daily or annual class I license is a class H club licensee, the board shall not issue the class I license, or approve the use of a previously issued class I license, unless the following requirements are met:

    (a) The gross food sales of the class H club exceed its gross liquor sales; and

    (b) The event for which the class I license will be used is hosted by a member of the class H licensed club.

 

    Sec. 80.  RCW 66.24.495 and 1981 c 142 s 1 are each amended to read as follows:

    (1) There shall be a retailer's license to be designated as class L.  This shall be a special license to be issued to any nonprofit arts organization which sponsors and presents productions or performances of an artistic or cultural nature in a specific theater or other appropriate designated indoor premises approved by the board.  The license shall permit the licensee to sell liquor to patrons of productions or performances for consumption on the premises at these events.  The fee for the license shall be two hundred fifty dollars per annum.

    (2) For the purposes of this section, the term "nonprofit arts organization" means an organization which is organized and operated for the purpose of providing artistic or cultural exhibitions, presentations, or performances or cultural or art education programs, as defined in subsection (3) of this section, for viewing or attendance by the general public.  The organization must be a not-for-profit corporation under chapter 24.03 RCW and managed by a governing board of not less than eight individuals none of whom is a paid employee of the organization or by a corporation sole under chapter 24.12 RCW.  In addition, the corporation must satisfy the following conditions:

    (a) No part of its income may be paid directly or indirectly to its members, stockholders, officers, directors, or trustees except in the form of services rendered by the corporation in accordance with its purposes and bylaws;

    (b) Salary or compensation paid to its officers and executives must be only for actual services rendered, and at levels comparable to the salary or compensation of like positions within the state;

    (c) Assets of the corporation must be irrevocably dedicated to the activities for which the license is granted and, on the liquidation, dissolution, or abandonment by the corporation, may not inure directly or indirectly to the benefit of any member or individual except a nonprofit organization, association, or corporation;

    (d) The corporation must be duly licensed or certified when licensing or certification is required by law or regulation;

    (e) The proceeds derived from sales of liquor, except for reasonable operating costs, must be used in furtherance of the purposes of the organization;

    (f) Services must be available regardless of race, color, national origin, or ancestry; and

    (g) The gambling and liquor control board shall have access to its books in order to determine whether the corporation is entitled to a license.

    (3) The term "artistic or cultural exhibitions, presentations, or performances or cultural or art education programs" includes and is limited to:

    (a) An exhibition or presentation of works of art or objects of cultural or historical significance, such as those commonly displayed in art or history museums;

    (b) A musical or dramatic performance or series of performances; or

    (c) An educational seminar or program, or series of such programs, offered by the organization to the general public on an artistic, cultural, or historical subject.

 

    Sec. 81.  RCW 66.28.040 and 1987 c 452 s 15 are each amended to read as follows:

    Except as permitted by the board under RCW 66.20.010, no brewer, wholesaler, distiller, winery, importer, rectifier, or other manufacturer of liquor shall, within the state, by himself or herself, his or her clerk, servant, or agent, give to any person any liquor; but nothing in this section nor in RCW 66.28.010 shall prevent a brewer, wholesaler, winery, or importer from furnishing samples of beer or wine to authorized licensees for the purpose of negotiating a sale, in accordance with regulations adopted by the gambling and liquor control board, provided that the samples are subject to taxes imposed by RCW 66.24.290 and 66.24.210; nothing in this section shall prevent the furnishing of samples of liquor to the board for the purpose of negotiating the sale of liquor to the state gambling and liquor control board; nothing in this section shall prevent a brewery, winery, or wholesaler from furnishing beer or wine for instructional purposes under RCW 66.28.150; nothing in this section shall prevent a winery or wholesaler from furnishing wine without charge to a not-for-profit group organized and operated solely for the purpose of enology or the study of viticulture which has been in existence for at least six months and any wine so furnished shall be used solely for such educational purposes, provided that the wine furnished shall be subject to the taxes imposed by RCW 66.24.210; nothing in this section shall prevent a brewer from serving beer without charge, on the brewery premises; nothing in this section shall prevent donations of wine for the purposes of RCW 66.12.180; and nothing in this section shall prevent a domestic winery from serving wine without charge, on the winery premises.

 

    Sec. 82.  RCW 66.28.045 and 1975 1st ex.s. c 173 s 9 are each amended to read as follows:

    The legislature finds the furnishing of samples of liquor to the state gambling and liquor control board is an integral and essential part of the operation of the state liquor business.  The legislature further finds that it is necessary to establish adequate standards for the accountability of the receipt, use and disposition of liquor samples.  The board shall adopt appropriate regulations pursuant to chapter 34.05 RCW for the purpose of carrying out the provisions of this section.

 

    Sec. 83.  RCW 66.40.030 and 1949 c 5 s 12 are each amended to read as follows:

    Within any unit referred to in RCW 66.40.010, there may be held a separate election upon the question of whether the sale of liquor under class H licenses, shall be permitted within such unit.  The conditions and procedure for holding such election shall be those prescribed by RCW 66.40.020, 66.40.040, 66.40.100, 66.40.110 and 66.40.120.  Whenever a majority of qualified voters voting upon said question in any such unit shall have voted "against the sale of liquor under class H licenses", the county auditor shall file with the gambling and liquor control board a certificate showing the result of the canvass at such election; and after ninety days from and after the date of the canvass, it shall not be lawful for licensees to maintain and operate premises therein licensed under class H licenses.  Elections held under RCW 66.40.010, 66.40.020, 66.40.040, 66.40.100, 66.40.110, 66.40.120 and 66.40.140, shall be limited to the question of whether the sale of liquor by means other than under class H licenses shall be permitted within such election unit.

 

    Sec. 84.  RCW 66.40.140 and 1933 ex.s. c 62 s 88 are each amended to read as follows:

    Whenever a majority of qualified voters voting upon said question in any such unit shall have voted "Against sale of liquor", the county auditor shall file with the gambling and liquor control board a certificate showing the result of the canvass at such election; and thereafter, except as hereinafter provided, it shall not be lawful for a liquor store to be operated therein nor for licensees to maintain and operate licensed premises therein except as hereinafter provided:

    (1) As to any stores maintained by the board within any such unit at the time of such licensing, the board shall have a period of thirty days from and after the date of the canvass of the vote upon such election to continue operation of its store or stores therein.

    (2) As to any premises licensed hereunder within any such unit at the time of such election, such licensee shall have a period of sixty days from and after the date of the canvass of the vote upon such election in which to discontinue operation of its store or stores therein.

    (3) Nothing herein contained shall prevent any distillery, brewery, rectifying plant or winery or the licensed operators thereof from selling its manufactured product, manufactured within such unit, outside the boundaries thereof.

    (4) Nothing herein contained shall prevent any person residing in any unit in which the sale of liquor shall have been forbidden by popular vote as herein provided, who is otherwise qualified to receive and hold a permit under this title, from lawfully purchasing without the unit and transporting into or receiving within the unit, liquor lawfully purchased by him or her outside the boundaries of such unit.

 

    Sec. 85.  RCW 66.44.190 and 1979 ex.s. c 104 s 1 are each amended to read as follows:

    Except at the faculty center as so designated by the university board of regents to the Washington state gambling and liquor control board who may issue a class H club license therefor, it shall be unlawful to sell any intoxicating liquors, with or without a license on the grounds of the University of Washington, otherwise known and described as follows:  Fractional section 16, township 25 north, range 4 east of Willamette Meridian except to the extent allowed under banquet permits issued pursuant to RCW 66.24.490.

 

    Sec. 86.  RCW 66.44.292 and 1981 1st ex.s. c 5 s 23 are each amended to read as follows:

    The Washington state gambling and liquor control board shall furnish notification of any hearing or hearings held, wherein any licensee or his or her employee is found to have sold liquor to a minor, to the prosecuting attorney of the county in which the sale took place, upon which the prosecuting attorney may formulate charges against said minor or minors for such violation of RCW 66.44.290 as may appear.

 

    Sec. 87.  RCW 66.44.310 and 1981 1st ex.s. c 5 s 24 are each amended to read as follows:

    (1) Except as otherwise provided by RCW 66.44.316 and 66.44.350, it shall be a misdemeanor,

    (a) To serve or allow to remain on the premises of any tavern, or cocktail lounge portion of any class H licensed premises, any person under the age of twenty-one years;

    (b) For any person under the age of twenty-one years to enter or remain on the premises of any tavern, or cocktail lounge portion of any public class H licensed premises;

    (c) For any person under the age of twenty-one years to represent his or her age as being twenty-one or more years for the purpose of securing admission to, or remaining on the premises of, any tavern or cocktail lounge portion of any class H licensed premises.

    (2) The Washington state gambling and liquor control board shall have the power and it shall be its duty to classify the various licensees, as taverns or otherwise, within the meaning of this title, except bona fide restaurants, dining rooms and cafes serving commercial food to the public shall not be classified as taverns during the hours such food service is made available to the public.

 

    Sec. 88.  RCW 66.44.350 and 1988 c 160 s 1 are each amended to read as follows:

    Notwithstanding provisions of RCW 66.44.310, employees of class A, C, D and/or H licensees eighteen years of age and over may take orders for, serve and sell liquor in any part of the licensed premises except cocktail lounges, bars, or other areas classified by the Washington state gambling and liquor control board as off-limits to persons under twenty-one years of age:  PROVIDED, That such employees may enter such restricted areas to perform work assignments including picking up liquor for service in other parts of the licensed premises, performing clean up work, setting up and arranging tables, delivering supplies, delivering messages, serving food, and seating patrons:  PROVIDED FURTHER, That such employees shall remain in the areas off-limits to minors no longer than is necessary to carry out their aforementioned duties:  PROVIDED FURTHER, That such employees shall not be permitted to perform activities or functions of a bartender.

 

    Sec. 89.  RCW 67.16.010 and 1991 c 270 s 1 are each amended to read as follows:

    Unless the context otherwise requires, words and phrases as used herein shall mean:

    (("Commission" shall mean the Washington horse racing commission, hereinafter created.)) "Board" means the gambling and liquor control board.

    "Parimutuel machine" shall mean and include both machines at the track and machines at the satellite locations, that record parimutuel bets and compute the payoff.

    "Person" shall mean and include individuals, firms, corporations and associations.

    "Race meet" shall mean and include any exhibition of thoroughbred, quarter horse, paint horse, Appaloosa horse racing, Arabian horse racing, or standard bred harness horse racing, where the parimutuel system is used.

    Singular shall include the plural, and the plural shall include the singular; and words importing one gender shall be regarded as including all other genders.

 

    Sec. 90.  RCW 67.16.020 and 1989 c 385 s 5 are each amended to read as follows:

    It shall be the duty of the ((commission)) board, as soon as it is possible after its organization, to ((prepare and promulgate)) adopt a complete set of rules ((and regulations)) to govern the race meets in this state.  It shall determine and announce the place, time and duration of race meets for which license fees are exacted; and it shall be the duty of each person holding a license under the authority of this chapter, and every owner, trainer, jockey, and attendant at any race course in this state, to comply with all rules ((and regulations promulgated)) adopted and all orders issued by the ((commission)) board.  It shall be unlawful for any person to hold any race meet without having first obtained and having in force and effect a license issued by the ((commission)) board as in this chapter provided; and it shall be unlawful for any owner, trainer or jockey to participate in race meets in this state without first securing a license therefor from the ((state racing commission)) board, the fee for which shall be set by the ((commission)) board which shall offset the cost of administration and shall not be for a period exceeding one year.

 

    Sec. 91.  RCW 67.16.040 and 1933 c 55 s 5 are each amended to read as follows:

    The ((commission)) board created by this chapter is hereby authorized, and it shall be its duty, to license, regulate and supervise all race meets held in this state under the terms of this chapter, and to cause the various race courses of the state to be visited and inspected at least once a year.

 

    Sec. 92.  RCW 67.16.050 and 1985 c 146 s 3 are each amended to read as follows:

    Every person making application for license to hold a race meet, under the provisions of this chapter shall file an application with the ((commission)) board which shall set forth the time, the place, the number of days such meet will continue, and such other information as the ((commission)) board may require.  The ((commission)) board shall be the sole judge of whether or not the race meet shall be licensed and the number of days the meet shall continue.  No person who has been convicted of any crime involving moral turpitude shall be issued a license, nor shall any license be issued to any person who has violated the terms or provisions of this chapter, or any of the rules ((and regulations)) of the ((commission)) board made pursuant thereto, or who has failed to pay to the ((commission)) board any or all sums required under the provisions of this chapter.  The license shall specify the number of days the race meet shall continue and the number of races per day, which shall be not less than six nor more than eleven, and for which a fee shall be paid daily in advance of five hundred dollars for each day for those meets which had gross receipts from parimutuel machines in excess of fifty million dollars in the previous year and two hundred dollars for each day for meets which had gross receipts from parimutuel machines at or below fifty million dollars in the previous year; in addition any newly authorized race meets shall pay two hundred dollars per day for the first year:  PROVIDED, That if unforeseen obstacles arise, which prevent the holding, or completion of any race meet, the license fee for the meet, or for a portion which cannot be held may be refunded the licensee, if the ((commission)) board deems the reasons for failure to hold or complete the race meet sufficient.  Any unexpired license held by any person who violates any of the provisions of this chapter, or any of the rules ((or regulations)) of the ((commission)) board made pursuant thereto, or who fails to pay to the ((commission)) board any and all sums required under the provisions of this chapter, shall be subject to cancellation and revocation by the ((commission)) board.  Such cancellation shall be made only after a summary hearing before the ((commission)) board, of which three days' notice, in writing, shall be given the licensee, specifying the grounds for the proposed cancellation, and at which hearing the licensee shall be given an opportunity to be heard in opposition to the proposed cancellation.

 

    Sec. 93.  RCW 67.16.060 and 1991 c 270 s 3 are each amended to read as follows:

    (1) It shall be unlawful:

    (a) To conduct pool selling, bookmaking, or to circulate hand books; or

    (b) To bet or wager on any horse race other than by the parimutuel method; or

    (c) For any licensee to take more than the percentage provided in RCW 67.16.170 and 67.16.175; or

    (d) For any licensee to compute breaks in the parimutuel system otherwise than at ten cents.

    (2) Any willful violation of the terms of this chapter, or of any rule((, regulation,)) or order of the ((commission)) board shall constitute a gross misdemeanor and when such violation is by a person holding a license under this chapter, the ((commission)) board may cancel the license held by the offender, and such cancellation shall operate as a forfeiture of all rights and privileges granted by the ((commission)) board and of all sums of money paid to the ((commission)) board by the offender; and the action of the ((commission)) board in that respect shall be final.

    (3) The ((commission)) board shall have power to exclude from any and all race courses of the state of Washington any person whom the ((commission)) board deems detrimental to the best interests of racing or any person who willfully violates any of the provisions of this chapter or of any rule((, regulation,)) or order issued by the ((commission)) board.

    (4) Every race meet held in this state contrary to the provisions of this chapter is hereby declared to be a public nuisance.

 

    Sec. 94.  RCW 67.16.075 and 1985 c 146 s 13 are each amended to read as follows:

    Only breeders or owners of Washington‑bred horses are eligible to demand and receive a breeder's award, an owner's bonus or both.  The ((commission)) board shall ((promulgate)) adopt rules ((and regulations)) to certify Washington-bred horses.  In setting standards to certify horses as Washington-bred, the ((commission)) board shall seek the advice of and consult with industry, including (1) the Washington Horse Breeders' Association, for thoroughbreds; (2) the Washington State Standardbred Association, for standardbred harness horses; (3) the Northern Racing Quarter Horse Association, for quarter horses; (4) the Washington State Appaloosa Racing Association, for Appaloosas; and (5) the Washington State Arabian Horse Racing Association, for Arabian horses.

 

    Sec. 95.  RCW 67.16.100 and 1991 c 270 s 4 are each amended to read as follows:

    (1) All sums paid to the ((commission)) board under this chapter, including those sums collected for license fees and excluding those sums collected under RCW 67.16.102, 67.16.105(3), and 67.16.105(4), shall be disposed of by the ((commission)) board as follows:

    (a) Fifty percent thereof shall be retained by the ((commission)) board for the payment of the salaries of its members, secretary, clerical, office, and other help and all expenses incurred in carrying out the provisions of this chapter.  No salary, wages, expenses, or compensation of any kind shall be paid by the state in connection with the work of the ((commission)) board.

    (b) One percent shall, on the next business day following the receipt thereof, be paid to the state treasurer to be deposited in the general fund.

    (c) Three percent shall, on the next business day following the receipt thereof, be paid to the state treasurer, who is hereby made ex officio treasurer of a fund to be known as the "state trade fair fund" which shall be maintained as a separate and independent fund, and made available to the director of trade and economic development for the sole purpose of assisting state trade fairs.

    (d) Forty-six percent shall be paid to the state treasurer, who is hereby made ex officio treasurer of a fund to be known as the "fair fund," which shall be maintained as a separate and independent fund outside of the state treasury, and made available to the director of agriculture for the sole purpose of assisting fairs in the manner provided in Title 15 RCW.

    (2) Any moneys collected or paid to the ((commission)) board under the terms of this chapter and not expended at the close of the fiscal biennium shall be paid to the state treasurer and be placed in the general fund.  The ((commission)) board may, with the approval of the office of financial management, retain any sum required for working capital.

 

    Sec. 96.  RCW 67.16.101 and 1977 ex.s. c 372 s 1 are each amended to read as follows:

    The legislature finds that:

    (1) A primary responsibility of the ((horse racing commission)) board is the encouragement of the training and development of the equine industry in the state of Washington whether the result of this training and development results in legalized horse racing or in the recreational use of horses;

    (2) The ((horse racing commission)) board has a further major responsibility to assure that any facility used as a race course should be maintained and upgraded to insure the continued safety of both the public and the horse at any time the facility is used for the training or contesting of these animals;

    (3) Small race courses within the state have difficulty in obtaining sufficient funds to provide the maintenance and upgrading necessary to assure this safety at these facilities, or to permit frequent use of these facilities by 4-H children or other horse owners involved in training; and

    (4) The one percent of the parimutuel machine gross receipts used to pay a special purse to the licensed owners of Washington bred horses is available for the purpose of drawing interest, thereby obtaining sufficient funds to be disbursed to achieve the necessary support to these small race courses.

 

    Sec. 97.  RCW 67.16.102 and 1991 c 270 s 5 are each amended to read as follows:

    (1) Notwithstanding any other provision of chapter 67.16 RCW to the contrary the licensee shall withhold and shall pay daily to the ((commission)) board, in addition to the percentages authorized by RCW 67.16.105, one percent of the gross receipts of all parimutuel machines at each race meet which sums shall, at the end of each meet, be paid by the ((commission)) board to the licensed owners of those horses finishing first, second, third and fourth Washington bred only at each meet from which the additional one percent is derived in accordance with an equitable distribution formula to be promulgated by the ((commission)) board prior to the commencement of each race meet:  PROVIDED, That nothing in this section shall apply to race meets which are nonprofit in nature, are of ten days or less, and have an average daily handle of less than one hundred twenty thousand dollars:  PROVIDED, That the additional one percent of the gross receipts of all parimutuel machines at each race meet and the amount retained by the ((commission)) board as specified in RCW 67.16.100(1)(a) shall be deposited daily in a time deposit by the ((commission)) board and the interest derived therefrom shall be distributed annually on an equal basis to those race courses at which independent race meets are held which are nonprofit in nature and are of ten days or less:  PROVIDED, That prior to receiving a payment under this section any new race course shall meet the qualifications set forth in this section for a period of two years:  PROVIDED, FURTHER, That said distributed funds shall be used for the purpose of maintaining and upgrading the respective racing courses and equine quartering areas of said nonprofit meets.  The ((commission)) board shall not permit the licensees to take into consideration the benefits derived from this section in establishing purses.

    (2) The ((commission)) board is authorized to pay at the end of the calendar year one-half of the one percent collected from a new licensee under subsection (1) of this section for reimbursement of capital construction of that new licensee's new race track for a period of five years.  This reimbursement does not include interest earned on that one-half of one percent and such interest shall continue to be collected and disbursed as provided in RCW 67.16.101 and subsection (1) of this section.

 

    Sec. 98.  RCW 67.16.105 and 1991 c 270 s 6 are each amended to read as follows:

    (1) Licensees of race meets that are nonprofit in nature, are of ten days or less, and have an average daily handle of one hundred twenty thousand dollars or less shall withhold and pay to the ((commission)) board daily for each authorized day of racing one-half percent of the daily gross receipts from all parimutuel machines at each race meet.

    (2) Licensees of race meets that do not fall under subsection (1) of this section shall withhold and pay to the ((commission)) board daily for each authorized day of racing the following applicable percentage of all daily gross receipts from all parimutuel machines at each race meet:

    (a) If the daily gross receipts of all parimutuel machines are more than two hundred fifty thousand dollars, the licensee shall withhold and pay to the ((commission)) board daily two and one-half percent of the daily gross receipts; and

    (b) If the daily gross receipts of all parimutuel machines are two hundred fifty thousand dollars or less, the licensee shall withhold and pay to the ((commission)) board daily one percent of the daily gross receipts.

    (3) In addition to those amounts in subsections (1) and (2) of this section, all licensees shall forward one-tenth of one percent of the daily gross receipts of all parimutuel machines to the ((commission)) board daily for payment to those nonprofit race meets as set forth in RCW 67.16.130 and subsection (1) of this section, but said percentage shall not be charged against the licensees.  The total of such payments shall not exceed one hundred fifty thousand dollars in any one year and any amount in excess of one hundred fifty thousand dollars shall be remitted to the general fund.  Payments to nonprofit race meets under this subsection shall be distributed on a pro rata per-race-day basis and used only for purses at race tracks that have been operating under RCW 67.16.130 and subsection (1) of this section for the five consecutive years immediately preceding the year of payment.

    (4) In addition to those sums paid to the ((commission)) board in subsection (2) of this section, licensees who are nonprofit corporations and have race meets of thirty days or more shall withhold and pay to the ((commission)) board daily for each authorized day of racing an amount equal to two and one-half percent of the daily gross receipts of all parimutuel machines at each race meet.  Said percentage shall come from that amount the licensee is authorized to retain under RCW 67.16.170(2).  The ((commission)) board shall deposit these moneys in the Washington thoroughbred racing fund created in RCW 67.16.250.

 

    Sec. 99.  RCW 67.16.110 and 1980 c 32 s 10 are each amended to read as follows:

    All radio broadcasting rights, and motion picture rights in connection with meets licensed hereunder are reserved to the state and the ((commission)) board shall lease or license same only to the highest bidder.  The exercise of such rights shall at all times be under the supervision of the ((commission)) board.

 

    Sec. 100.  RCW 67.16.130 and 1991 c 270 s 7 are each amended to read as follows:

    (1) Notwithstanding any other provision of law or of chapter 67.16 RCW, the ((commission)) board may license race meets which are nonprofit in nature, of ten days or less, and which have an average daily handle of one hundred twenty thousand dollars or less, at a daily licensing fee of ten dollars, and the sponsoring nonprofit association shall be exempt from any other fees as provided for in chapter 67.16 RCW or by rule ((or regulation)) of the ((commission)) board:  PROVIDED, That the commission may deny the application for a license to conduct a racing meet by a nonprofit association, if same shall be determined not to be a nonprofit association by the ((Washington state racing commission)) board.

    (2) Notwithstanding any other provision of law or of chapter 67.16 RCW or any rule promulgated by the ((commission)) board, no license for a race meet which is nonprofit in nature, of ten days or less, and which has an average daily handle of one hundred twenty thousand dollars or less, shall be denied for the reason that the applicant has not installed an electric parimutuel tote board.

    (3) As a condition to the reduction in fees as provided for in subsection (1) of this section, all fees charged to horse owners, trainers, or jockeys, or any other fee charged for a permit incident to the running of such race meet shall be retained by the ((commission)) board as reimbursement for its expenses incurred in connection with the particular race meet.

 

    Sec. 101.  RCW 67.16.140 and 1973 1st ex.s. c 216 s 3 are each amended to read as follows:

    No employee of the ((horse racing commission)) board shall serve as an employee of any track at which that individual will also serve as an employee of the ((commission)) board.

 

    Sec. 102.  RCW 67.16.150 and 1973 1st ex.s. c 216 s 4 are each amended to read as follows:

    No employee nor any ((commissioner of the horse racing commission)) member of the board shall have any financial interest whatsoever, other than an ownership interest in a community venture, in any track at which said employee serves as an agent or employee of the ((commission)) board or at any track with respect to a ((commissioner)) board member.

 

    Sec. 103.  RCW 67.16.160 and 1973 1st ex.s. c 216 s 5 are each amended to read as follows:

    No later than ninety days after July 16, 1973, the ((horse racing commission)) board shall ((promulgate)) adopt, pursuant to chapter 34.05 RCW, reasonable rules ((and regulations)) implementing to the extent applicable to the circumstances of the ((horse racing commission)) board the conflict of interest laws of the state of Washington as set forth in chapters 42.18, 42.21, and 42.22 RCW.

 

    Sec. 104.  RCW 67.16.175 and 1991 c 270 s 9 are each amended to read as follows:

    (1) In addition to the amounts authorized to be retained in RCW 67.16.170, race meets may retain daily for each authorized day of racing an additional six percent of the daily gross receipts of all parimutuel machines from exotic wagers at each race meet.

    (2) Of the amounts retained in subsection (1) of this section, one-sixth shall be used for Washington-bred breeder awards.

    (3) Of the amounts retained for breeder awards under subsection (2) of this section, twenty-five percent shall be retained by a new licensee for reimbursement of capital construction of the new licensee's new race track for a period of five years.

    (4) As used in this section, "exotic wagers" means any multiple wager.  Exotic wagers are subject to approval of the ((commission)) board.

 

    Sec. 105.  RCW 67.16.190 and 1985 c 146 s 12 are each amended to read as follows:

    Upon written application to the ((commission)) board by a licensee holding a race meet, and approval by the ((commission)) board, the licensee may conduct the sale of parimutuel pools on in-state or out-of-state televised or simulcast races of national or regional interest:  PROVIDED, That the sale of such parimutuel pools shall be conducted only within the enclosure of the licensee's race course and only during the conduct of a race meet in the state of Washington by said licensee.

 

    Sec. 106.  RCW 67.16.200 and 1991 c 270 s 10 are each amended to read as follows:

    (1) A racing association licensed by the ((commission)) board to conduct a race meet may seek approval from the ((commission)) board to conduct parimutuel wagering on its program at a satellite location or locations within the state of Washington.  The sale of parimutuel pools at satellite locations shall be conducted only during the licensee's race meet and simultaneous to all parimutuel wagering activity conducted at the licensee's racing facility in the state of Washington.  The ((commission's)) board's authority to approve satellite wagering at a particular location is subject to the following limitations:

    (a) The ((commission)) board may approve only one satellite location in each county in the state; however, the ((commission)) board may grant approval for more than one licensee to conduct wagering at each satellite location.

    (b) The ((commission)) board shall not allow a licensee to conduct satellite wagering at a satellite location within twenty ground miles of the licensee's racing facility.  For purposes of this section, "ground miles" means miles measured from point to point in a straight line.

    (c)(i) The ((commission)) board may allow a licensee to conduct satellite wagering at a satellite location within fifty ground miles of the racing facility of another licensee who conducts race meets of thirty days or more, but only if the satellite location is the racing facility of another licensee who conducts race meets of thirty days or more and only if the licensee seeking to conduct satellite wagering suspends its program during the conduct of the meets of all licensees within fifty ground miles; except that the ((commission)) board may allow a licensee that conducts satellite wagering at another track, pursuant to this subsection, to use other satellite locations, used by that track with the approval of the owner of that track, even though those satellite locations are within a fifty ground mile radius.

    (ii) Subject to subsection (1)(c)(i) of this section, the ((commission)) board may allow a licensee to conduct satellite wagering at a satellite location within fifty ground miles of the racing facility of another licensee who conducts race meets of under thirty days, but only if the licensee seeking to conduct satellite wagering suspends its satellite program during the conduct of the meets of all licensees within fifty ground miles.

    (2) Subject to local zoning and other land use ordinances, the ((commission)) board shall be the sole judge of whether approval to conduct wagering at a satellite location shall be granted.

    (3) The licensee shall combine the parimutuel pools of the satellite location with those of the racing facility for the purpose of determining odds and computing payoffs.  The amount wagered at the satellite location shall be combined with the amount wagered at the racing facility for the application of take out formulas and distribution as provided in RCW 67.16.102, 67.16.105, 67.16.170, and 67.16.175.  A satellite extension of the licensee's racing facility shall be subject to the same application of the rules of racing as the licensee's racing facility.

 

    Sec. 107.  RCW 67.16.230 and 1991 c 270 s 11 are each amended to read as follows:

    The ((commission)) board is authorized to establish and collect an annual fee for each separate satellite location.  The fee to be collected from the licensee shall be set to reflect the ((commission's)) board's expected costs of approving, regulating, and monitoring each satellite location, provided ((commission)) board revenues generated under RCW 67.16.105 from the licensee shall be credited annually towards the licensee's fee assessment under this section.

 

    Sec. 108.  RCW 67.16.300 and 1989 c 385 s 2 are each amended to read as follows:

    In addition to the license fees authorized by this chapter, the ((commission)) board shall collect the industrial insurance premium assessments required under RCW 51.16.210 from trainers, grooms, and owners.  The industrial insurance premium assessments required under RCW 51.16.210 shall be retroactive to January 1, 1989, and shall be collected from all licensees whose licenses were issued after that date.  The ((commission)) board shall deposit the industrial insurance premium assessments in the industrial insurance trust fund as required by rules adopted by the department of labor and industries.

 

    Sec. 109.  RCW 67.70.055 and 1987 c 511 s 4 are each amended to read as follows:

    The ((director, deputy directors, any assistant directors)) chair, and employees of the state lottery and members of the lottery commission shall not:

    (1) Serve as an officer or manager of any corporation or organization which conducts a lottery or gambling activity;

    (2) Receive or share in, directly or indirectly, the gross profits of any lottery or other gambling activity regulated by the gambling ((commission)) and liquor control board;

    (3) Be beneficially interested in any contract for the manufacture or sale of gambling devices, the conduct of a lottery or other gambling activity, or the provision of independent consultant services in connection with a lottery or other gambling activity.

 

    Sec. 110.  RCW 67.70.070 and 1982 2nd ex.s. c 7 s 7 are each amended to read as follows:

    No license as an agent to sell lottery tickets or shares may be issued to any person to engage in business exclusively as a lottery sales agent.  Before issuing a license the director shall consider such factors as:  (1) The financial responsibility and security of the person and his or her business or activity, (2) the accessibility of his or her place of business or activity to the public, (3) the sufficiency of existing licenses to serve the public convenience, and (4) the volume of expected sales.

    For purposes of this section, the term "person" means an individual, association, corporation, club, trust, estate, society, company, joint stock company, receiver, trustee, assignee, referee, or any other person acting in a fiduciary or representative capacity, whether appointed by a court or otherwise, and any combination of individuals.  "Person" does not mean any department, commission, agency, or instrumentality of the state, or any county or municipality or any agency or instrumentality thereof, except for retail outlets of the state gambling and liquor control board.

 

    Sec. 111.  RCW 82.04.350 and 1961 c 15 s 82.04.350 are each amended to read as follows:

    This chapter shall not apply to any person in respect to the business of conducting race meets for the conduct of which a license must be secured from the ((horse racing commission)) gambling and liquor control board.

 


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