H-867                _______________________________________________

 

                                                    HOUSE BILL NO. 873

                        _______________________________________________

 

State of Washington                              49th Legislature                              1985 Regular Session

 

By Representatives Vekich, Zellinsky and Kremen

 

 

Read first time 2/8/85 and referred to Committee on Commerce & Labor.

 

 


AN ACT Relating to state government; amending RCW 66.04.010, 67.70.010, and 67.70.050; adding a new section to chapter 9.46 RCW; creating new sections; and repealing RCW 66.08.012, 66.08.014, 67.70.020, 67.70.030, and 67.70.270.

 

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

 

          NEW SECTION.  Sec. 1.  A new section is added to chapter 9.46 RCW to read as follows:

          The lottery commission and liquor control board are hereby abolished and their powers, duties, and functions are hereby transferred to the gambling commission.  All references to the lottery commission and liquor control board or the director of the state lottery in the Revised Code of Washington shall be construed to mean the gambling commission  or its director.

 

          NEW SECTION.  Sec. 2.     All reports, documents, surveys, books, records, files, papers, or written material in the possession of the lottery commission and liquor control board shall be delivered to the custody of the gambling commission.  All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the lottery commission and liquor control board shall be made available to the gambling commission.  All funds, credits, or other assets held by the lottery commission and liquor control board shall be assigned to the gambling commission.

          Any appropriations made to the lottery commission and liquor control board shall, on the effective date of this act, be transferred and credited to the gambling commission.

          Whenever any question arises as to the transfer of any personnel, funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.

 

          NEW SECTION.  Sec. 3.     All classified employees of the lottery commission and liquor control board are transferred to the jurisdiction of the gambling commission.  All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the gambling commission to perform their usual duties upon the same terms as formerly, without any loss of rights, subject to any action that may be appropriate thereafter in accordance with the laws and rules governing state civil service.

 

          NEW SECTION.  Sec. 4.     All rules and all pending business before the lottery commission and liquor control board shall be continued and acted upon by the gambling commission.  All existing contracts and obligations shall remain in full force  and shall be performed by the gambling commission.

 

          NEW SECTION.  Sec. 5.     The transfer of the powers, duties, functions, and personnel of the lottery commission and liquor control board shall not affect the validity of any act performed by such employee prior to the effective date of this act.

 

          NEW SECTION.  Sec. 6.     If apportionments of budgeted funds are required because of the transfers directed by sections 2 through 5 of this act, the director of financial management shall certify the apportionments to the agencies affected, the state auditor, and the state treasurer.  Each of these shall make the appropriate transfer and adjustments in funds and appropriation accounts and equipment records in accordance with the certification.

 

          NEW SECTION.  Sec. 7.     Nothing contained in sections 1 through 6 of this act may be construed to alter any existing collective bargaining unit or the provisions of any existing collective bargaining agreement until the agreement has expired or until the bargaining unit has been modified by action of the personnel board as provided by law.

 

        Sec. 8.  Section 3, chapter 62, Laws of 1933 ex. sess. as last amended by section 5, chapter 78, Laws of 1984 and RCW 66.04.010 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 ((liquor control board, constituted under this title)) gambling commission.

          (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 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 profession within the state pursuant to chapter 18.71 RCW.

           (22) "Prescription" means a memorandum signed by a physician and given by him 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 agent in the state.

           (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.

           (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. 9.  Section 1, chapter 7, Laws of 1982 2nd ex. sess. and RCW 67.70.010 are each amended to read as follows:

          For the purposes of this chapter:

          (1) "Commission" means the state ((lottery commission established by this chapter)) gambling commission;

          (2) "Lottery" or "state lottery" means the lottery established and operated pursuant to this chapter;

          (3) "Director" means the director of the state ((lottery commission established by this chapter)) gambling commission.

 

        Sec. 10.  Section 5, chapter 7, Laws of 1982 2nd ex. sess. and RCW 67.70.050 are each amended to read as follows:

          ((There is created the office of director of the state lottery.  The director shall be appointed by the governor with the consent of the senate.  The director shall serve at the pleasure of the governor and shall receive such salary as is determined by the governor, but in no case may the director's salary be more than ninety percent of the salary of the governor.))  The director shall:

          (1) Supervise and administer the operation of the lottery in accordance with the provisions of this chapter and with the rules of the commission.

          (2) Appoint such deputy and assistant directors as may be required to carry out the functions and duties of his office:  PROVIDED, That the provisions of the state civil service law, chapter 41.06 RCW, shall not apply to such deputy and assistant directors.

          (3) Appoint such professional, technical, and clerical assistants and employees as may be necessary to perform the duties imposed by this chapter:  PROVIDED, That the provisions of the state civil service law, chapter 41.06 RCW, shall not apply to such employees as are engaged in undercover audit or investigative work or security operations but shall apply to other employees appointed by the director, except as provided for in subsection (2) of this section.

          (4) In accordance with the provisions of this chapter and the rules of the commission, license as agents to sell or distribute lottery tickets such persons as in his opinion will best serve the public convenience and promote the sale of tickets or shares.  The director may require a bond from every licensed agent, in such amount as provided in the rules of the commission.  Every licensed agent shall prominently display his license, or a copy thereof, as provided in the rules of the commission.  License fees may be established by the commission, and, if established, shall be deposited in the revolving fund created by RCW 67.70.260.

          (5) Confer regularly as necessary or desirable with the commission on the operation and administration of the lottery; make available for inspection by the commission, upon request, all books, records, files, and other information and documents of the lottery; and advise the commission and recommend such matters as he deems necessary and advisable to improve the operation and administration of the lottery.

          (6) Subject to the applicable laws relating to public contracts, enter into contracts for the operation of the lottery, or any part thereof, and into contracts for the promotion of the lottery.  No contract awarded or entered into by the director may be assigned by the holder thereof except by specific approval of the commission:  PROVIDED, That nothing in this chapter authorizes the director to enter into public contracts for the regular and permanent administration of the lottery after the initial development and implementation.

          (7) Certify quarterly to the state treasurer, the legislative budget committee, and the commission a full and complete statement of lottery revenues, prize disbursements, and other expenses for the preceding quarter.

          (8) Publish quarterly reports showing the total lottery revenues, prize disbursements, and other expenses for the preceding quarter, and make an annual report, which shall include a full and complete statement of lottery revenues, prize disbursements, and other expenses, to the governor and the legislature, and including such recommendations for changes in this chapter as the director deems necessary or desirable.

          (9) Report immediately to the governor and the legislature any matters which require immediate changes in the laws of this state in order to prevent abuses and evasions of this chapter or rules promulgated thereunder or to rectify undesirable conditions in connection with the administration or operation of  the lottery.

          (10) Carry on a continuous study and investigation of the lottery throughout the state:  (a) For the purpose of ascertaining any defects in this chapter or in the rules issued thereunder by reason whereof any abuses in the administration and operation of the lottery or any evasion of this chapter or the rules may arise or be practiced, (b) for the purpose of formulating recommendations for changes in this chapter and the rules promulgated thereunder to prevent such abuses and evasions, (c) to guard against the use of this chapter and the rules  issued thereunder as  a cloak for the carrying on of professional gambling and crime, and (d) to insure that this chapter  and rules shall be in such form and be so administered as to serve the true purposes of this chapter.

          (11) Make a continuous study and investigation of:  (a) The operation and the administration of similar laws which may be in effect in other states or countries, (b) any literature on the subject which from time to time may be published or available, (c) any  federal laws which may affect the operation of the lottery, and (d) the reaction of the citizens of this state to existing and potential features of the lottery with a view to recommending or effecting changes that  will tend to serve the purposes of this chapter.

          (12) Have all enforcement powers granted in chapter 9.46 RCW.

          (13) Perform all other matters and things necessary to carry out the purposes and provisions of this chapter.

 

          NEW SECTION.  Sec. 11.  The following acts or parts of acts are each repealed:

                   (1) Section 63, chapter 62, Laws of 1933 ex. sess., section 1, chapter 225, Laws of 1937, section 1, chapter 208, Laws of 1945, section 8, chapter 5, Laws of 1949, section 7, chapter 307, Laws of 1961 and RCW 66.08.012;

          (2) Section 64, chapter 62, Laws of 1933 ex. sess., section 2, chapter 208, Laws of 1945, section 1, chapter 113, Laws of 1947, section 9, chapter 5, Laws of 1949 and RCW 66.08.014;

          (3) Section 2, chapter 7, Laws of 1982 2nd ex. sess. and RCW 67.70.020;

          (4) Section 3, chapter 7, Laws of 1982 2nd ex. sess. and RCW 67.70.030; and

          (5) Section 27, chapter 7, Laws of 1982 2nd ex. sess., section 101, chapter 287, Laws of 1984 and RCW 67.70.270.