WSR 98-18-009

PROPOSED RULES

GAMBLING COMMISSION

[Filed August 21, 1998, 2:59 p.m.]



Original Notice.

Preproposal statement of inquiry was filed as WSR 98-15-078, with a published date of August 5, 1998.

Title of Rule: Refund of overpayment of license fees and reduction of licensing fees, WAC 230-04-198, 230-04-202, 230-04-203, and 230-04-204.

Purpose: These rules would reduce all license fees to the levels established prior to the increase passed in November 1997, and which became effective June 30, 1998. The change would also allow the agency to refund those licensees that have paid the higher fees since June 30, 1998.

Statutory Authority for Adoption: RCW 9.46.070.

Summary: See Purpose above.

Reasons Supporting Proposal: It has been determined that the license fee increase is not necessary. Therefore, the fees will be reduced to the amounts established prior to the June 30, 1998, increase.

Name of Agency Personnel Responsible for Drafting: Susan Arland, Lacey, (360) 438-7654 ext. 374; Implementation: Ben Bishop, Lacey, (360) 438-7640; and Enforcement: Sherri Winslow, Lacey, (360) 438-7654 ext. 301.

Name of Proponent: Staff, governmental.

Rule is not necessitated by federal law, federal or state court decision.

Explanation of Rule, its Purpose, and Anticipated Effects: See Purpose and Reasons Supporting Proposal above.

Proposal Changes the Following Existing Rules: See Purpose and Reasons Supporting Proposal above.

No small business economic impact statement has been prepared under chapter 19.85 RCW. Proposal is exempt under RCW 19.85.025(2), therefore, a small business economic impact statement is not required.

Section 201, chapter 403, Laws of 1995, does not apply to this rule adoption. This agency does not choose to make section 201, chapter 403, Laws of 1995, apply to this rule adoption.

Hearing Location: Silverdale on the Bay Hotel, 3037 Bucklin Hill Road, Silverdale, WA 98310, (360) 698-1000, on October 9, 1998, at 9:30 a.m.

Assistance for Persons with Disabilities: Contact Susan Green by October 2, 1998, TDD (360) 438-7638, or (360) 438-7654 ext. 302.

Submit Written Comments to: Susan Arland, Mailstop 42400, Olympia, WA 98504-2400, fax (360) 438-8652, by October 2, 1998.

Date of Intended Adoption: October 9, 1998.

August 20, 1998

Susan Arland

Public Information Officer



NEW SECTION



WAC 230-04-198  Reduction of license fees. (1) On November 14, 1997, the commission passed WAC 230-04-202, WAC 230-04-203, and WAC 230-04-204, under WSR 97-23-053. These rule changes increased the licensing fees for bona fide charitable/nonprofit organizations, commercial stimulant and other business organizations, and for individuals, respectively. The increased fees set forth in these rules became effective June 30, 1998. The above license fee increases will not be implemented and shall remain at the level established prior to the increase.

(2) Any licensee or applicant that has submitted a licensing fee based on the increased license fees set forth in WAC 230-04-202, WAC 230-04-203, and WAC 230-04-204, filed under WSR 97-23-053, shall be reimbursed by the Commission for all overpayments of licensing fees.



[]

OTS-2354.1

AMENDATORY SECTION (Amending WSR 97-23-053, filed 11/17/97, effective 6/30/98)



WAC 230-04-202  Fees--Bona fide charitable/nonprofit organizations. Bona fide charitable and nonprofit organizations shall submit the following fees to the commission when applying for gambling licenses, permits, miscellaneous changes, inspection services, or when assessed the cost of special investigation procedures by the commission:



license type definition fee
1. amusement games (Fee based on annual gross gambling receipts)
* Class A Premises only $ ((54))

52

Class B Up to $ 10,000 $ ((54))

52

Class C Up to $ 25,000 $ ((287))

276

Class D Up to $ 50,000 $ ((460))

443

Class E Over $ 50,000 $ ((803))

772



* Allows a charitable or nonprofit organization to enter into a contract with Class "B" or above commercial amusement game licensee to locate and operate amusement games on their premises.





2. bingo
group (Fee based on annual gross gambling receipts)
Class A Up to $ 15,000 $ ((54))

52

Class B Up to $ 50,000 $ ((167))

161

Class C Up to $ 100,000 $ ((342))

329

Class D Up to $ 250,000 $ ((921))

886

Class E Up to $ 500,000 $ ((1,552))

1,492

Class F Up to $ 1,000,000 $ ((3,117))

2,996

Class G Up to $ 1,500,000 $ ((4,499))

4,324

Class H Up to $ 2,000,000 $ ((6,009))

5,776

Class I Up to $ 2,500,000 $ ((7,508))

7,216

Class J Up to $ 3,000,000 $ ((9,008))

8,658

Class K Up to $ 3,500,000 $ ((10,105))

9,712

Class L Up to $ 4,000,000 $ ((11,551))

11,102

Class M

and above

Over $ 4,000,000 $ ((12,997))

12,492



3. card games
Class A General (Fee to play charged) $ ((575))

553

Class B Limited card games - hearts, rummy, mahjongg, pitch, pinochle, and cribbage (Fee to play charged) $

((167))

161

Class C Tournament only - no more than ten consecutive days per tournament $

((54))

52

Class D General (No fee to play charged) $

((54))

52



4. fund-raising event
Class A One event - not more than 24 consecutive hours $ ((342))

329

Class B One event - not more than 72 consecutive hours $

((575))

553

Class C Additional participant in joint event (not lead organization) $

((167))

161

Class D Fund-Raising Event Equipment Distributor - rents or leases, equipment for fund-raising event or recreational gaming activity for no more than ten times per year* $

((227))

219

Class E Fund-Raising Event Equipment Distributor - rents or leases equipment for fund-raising event or recreational gaming activity more than ten times per year. $

((575))

553

* Charitable and nonprofit organizations licensed to conduct fund-raising events may rent their equipment up to four occasions during the term of the license without getting licensed as a distributor.





5. punch boards/pull-tabs
(Fee based on annual gross

gambling receipts)

variance *
Class A Up to $ 50,000 $ 5,000 $ ((548))

527

Class B Up to $ 100,000 $ 5,000 $ ((978))

940

Class C Up to $ 200,000 $ 10,000 $ ((1,845))

1,774

Class D Up to $ 300,000 $ 10,000 $ ((2,682))

2,578

Class E Up to $ 400,000 $ 10,000 $ ((3,464))

3,330

Class F Up to $ 500,000 $ 10,000 $ ((4,182))

4,020

Class G Up to $ 600,000 $ 10,000 $ ((4,846))

4,658

Class H Up to $ 700,000 $ 10,000 $ ((5,454))

5,242

Class I Up to $ 800,000 $ 10,000 $ ((6,009))

5,776

Class J Up to $ 1,000,000 $ 20,000 $ ((6,813))

6,548

Class K Up to $ 1,250,000 $ 25,000 $ ((7,562))

7,268

Class L Up to $ 1,500,000 $ 25,000 $ ((8,259))

7,938

Class M .Up to $ 1,750,000 $ 25,000 $ ((8,833))

8,490

Class N Up to $ 2,000,000 $ 25,000 $ ((9,356))

8,992

Class O Over $ 2,000,000 Non-

applicable

$ ((10,280))

9,880

* A licensee will be allowed a one-time variance for each license class without having to upgrade or pay the penalties set forth in WAC 230-04-260: Provided, That a licensee utilizing the variance shall be required to upgrade to the higher license class upon renewal.





6. raffles


(Fee based on annual gross

gambling receipts)

Class A Up to $ 5,000 $ ((54))

52

Class B Up to $ 10,000 $ ((167))

161

Class C Up to $ 25,000 $ ((342))

329

Class D Up to $ 50,000 $ ((575))

553

Class E Up to $ 75,000 $ ((921))

886

Class F Over $ 75,000 $ ((1,379))

1,326



7. combination license
class a Allows gross gambling receipts of up to $25,000 from bingo, $7,500 from raffles, and $7,500 from amusement games, not to exceed $30,000 combined gross gambling receipts from all such activities. Allows general card games where no fee to play is charged. $ ((104))

100

class b Allows gross gambling receipts of up to $60,000 from bingo, $15,000 from raffles, and $15,000 from amusement games, not to exceed $75,000 combined gross gambling receipts from all such activities. Allows general card games where no fee to play is charged. $

((270))

260

class c Allows gross gambling receipts of up to $125,000 from bingo, $30,000 from raffles, and $30,000 from amusement games, not to exceed $150,000 combined gross gambling receipts from all such activities. Allows general card games where no fee to play is charged.

$ ((624))

600



8. separate premises
bingo Per occasion

(see WAC 230-04-300)



$


((27))

26

9. permits

agricultural

fair-bingo

(See WAC 230-04-191) $ ((27))

26

recreational

gaming activity

(rga)

(See WAC 230-25-330

and 230-02-505)

$ ((54))

52



10. changes
name (See WAC 230-04-310) $ ((27))

26

location (See WAC 230-04-320) $ ((27))

26

fre (Date or time)

(See WAC 230-04-325)

$ ((27))

26

license class (See WAC 230-04-260) $ ((27))

26

duplicate (See WAC 230-04-290) $ ((27))

26

license



11. special fees
investigation (See WAC 230-04-240) As required
replacement (See WAC 230-08-017) $ ((27))

26

identification
stamps
exceeding license (See WAC 230-04-260) As required
class
review, As required
inspection and/ (See WAC 230-12-315)
or evaluation
of equipment,
paraphernalia,
services, or
schemes



12. six-month


(See WAC 230-04-190)


$


((27))

26

payment plan





[Statutory Authority: RCW 9.46.070(5). 97-23-053, 230-04-202, filed 11/17/97, effective 6/30/98. Statutory Authority: RCW 9.46.070 (5), (6), (11), (14). 97-14-012, 230-04-202, filed 6/20/97, effective 7/21/97. Statutory Authority: RCW 9.46.070 and 9.46.116. 96-24-007 (Order 304), 230-04-202, filed 11/21/96, effective 1/1/97. Statutory Authority: RCW 9.46.070. 95-02-003 and 94-23-093 (Order 260), 230-04-202, filed 12/22/94 and 11/17/94, effective 1/22/95 and 1/1/95.]

OTS-2355.1

AMENDATORY SECTION (Amending WSR 97-23-053, filed 11/17/97, effective 6/30/98)



WAC 230-04-203  Fees--Commercial stimulant and other business organizations. All persons seeking to operate gambling activities at business locations shall submit the following fees to the commission when applying for gambling licenses, permits, miscellaneous changes, inspection services, or when assessed the cost of special investigation procedures by the commission:





LICENSE TYPE


DEFINITION


FEE
1. card games
Class B Limited card games - hearts, rummy, pitch, pinochle, mahjongg, and/or cribbage (Fee to play charged) (($ 167))

$ 161

Class C Tournament only, no more than ten consecutive days per tournament. (($ 167))

$ 161

Class D General (No fee to play charged) (($ 54))

$ 52

Class E General (Fee to play charged)
E-1 One table only (($ 401))

$ 386

E-2 Up to two tables (($ 689))

$ 663

E-3 Up to three tables (($ 1,150))

$ 1,106

E-4 Up to four tables (($ 2,303))

$ 2,214

E-5 Up to five tables (($ 3,464))

$ 3,330



2.


commercial

amusement

games





(Fee based on annual gross

gambling receipts)

* Class A Premises only ** (($ 287/$ 131))

$ 276/$ 126

Class B Up to $ 50,000 (($ 401))

$ 386

Class C Up to $ 100,000 (($ 1,032))

$ 992

Class D Up to $ 250,000 (($ 2,303))

$ 2,214

Class E Up to $ 500,000 (($ 4,041))

$ 3,884

Class F Up to $1,000,000 (($ 6,931))

$ 6,662

Class G Over $1,000,000 (($ 8,671))

$ 8,334

* Allows a business that is qualified under WAC 230-04-138 (1)(f), (g), (h), (i), or (j) to enter into a contract with a class "B" or above commercial amusement game licensee to locate and operate amusement games upon their premises.
** Provides for a fee reduction of $150 when: Renewing an annual license; applying for an additional license(s) at the same premises; and/or applying for multiple licenses at the same premises.



3.


punch boards/

pull-tabs





(Fee based on annual gross

gambling receipts)

variance*
Class A Up to $ 50,000 $ 5,000 (($ 548))

$ 527

Class B Up to $ 100,000 $ 5,000 (($ 978))

$ 940

Class C Up to $ 200,000 $ 10,000 (($ 1,845))

$ 1,774

Class D Up to $ 300,000 $ 10,000 (($ 2,682))

$ 2,578

Class E Up to $ 400,000 $ 10,000 (($ 3,464))

$ 3,330

Class F Up to $ 500,000 $ 10,000 (($ 4,182))

$ 4,020

Class G Up to $ 600,000 $ 10,000 (($ 4,846))

$ 4,658

Class H Up to $ 700,000 $ 10,000 (($ 5,454))

$ 5,242

Class I Up to $ 800,000 $ 10,000 (($ 6,009))

$ 5,776

Class J Up to $ 1,000,000 $ 20,000 (($ 6,813))

$ 6,548

Class K Up to $ 1,250,000 $ 25,000 (($ 7,562))

$ 7,268

Class L Up to $ 1,500,000 $ 25,000 (($ 8,259))

$ 7,938

Class M Up to $ 1,750,000 $ 25,000 (($ 8,833))

$ 8,490

Class N Up to $ 2,000,000 $ 25,000 (($ 9,356))

$ 8,992

Class O Over $ 2,000,000 Nonapplicable (($10,280))

$ 9,880

* A licensee will be allowed a one-time variance for each license class without having to upgrade or pay the penalties set forth in WAC 230-04-260: Provided, That a licensee utilizing the variance shall be required to upgrade to the higher license class upon renewal.



4.


distributor


(Fee based on annual gross sales

of gambling related supplies and

equipment)

(a) Class A Nonpunch board/pull-tab only (($ 575))

$ 553

Class B Up to $ 250,000 (($ 1,150))

$ 1,106

Class C Up to $ 500,000 (($ 1,727))

$ 1,660

Class D Up to $1,000,000 (($ 2,303))

$ 2,214

Class E Up to $2,500,000 (($ 2,998))

$ 2,882

Class F Over $2,500,000 (($ 3,693))

$ 3,550

In addition to the annual fee, the commission will assess all applicants the actual costs incurred in conducting the investigation and inspection necessary for initial certification.
(b) fund-raising

event equipment

distributor

Class A Rents or leases equipment for fund-raising event or recreational gaming activity up to 10 times per year. (($ 227))

$ 219

Class B Rents or leases equipment for fund-raising event or recreational gaming activity more than 10 times per year.

(($ 575))

$ 553



5.


manufacturer


(Fee based on annual gross sales

of gambling related supplies and

equipment)

Class A Machines only (($ 575))

$ 553

Class B Up to $ 250,000 (($ 1,150))

$ 1,106

Class C Up to $ 500,000 (($ 1,727))

$ 1,660

Class D Up to $1,000,000 (($ 2,303))

$ 2,214

Class E Up to $2,500,000 (($ 2,998))

$ 2,882

Class F Over $2,500,000 (($ 3,693))

$ 3,550

In addition to the annual fee, the commission will assess all applicants the actual costs incurred in conducting the investigation and inspection necessary for initial certification, quality control inspection for additional activities or product lines, and renewal of licenses when travel cost is incurred to complete the investigation.



6.


permits


agricultural fair/

special property

bingo

Class A One location and event only

(See WAC 230-04-191)

(($ 27))

$ 26

Class B Annual permit for specified

different events and locations

(See WAC 230-04-193)

(($ 167))

$ 161

recreational

gaming activity

(RGA)

(See WAC 230-02-505

and 230-25-330)

(($ 54))

$ 52



7.


changes
name (See WAC 230-04-310) (($ 27))

$ 26

location (See WAC 230-04-320) (($ 27))

$ 26

business (Same owners) (($ 54))

$ 52

classification (See WAC 230-04-340)
license class (See WAC 230-04-260) New class fee, less previous fee paid, plus (($ 27))

$ 26

duplicate license (See WAC 230-04-290) (($ 27))

$ 26

ownership of stock (See WAC 230-04-340) (($ 54))

$ 52

license transfers (See WAC 230-04-125,

230-04-340, and

230-04-350)

(($ 54))

$ 52



8.


special fees
investigation (See WAC 230-04-240) As required
identification and

inspection

services stamps

(See WAC 230-08-017) As required
quality control

inspection fees

(See WAC 230-30-030) As required
replacement of

identification

stamps

(See WAC 230-30-017) (($ 27))

$ 26

exceeding license

class

(See WAC 230-04-260) As required
review,

inspection and/

or evaluation

of equipment,

paraphernalia,

services, or

schemes

(See WAC 230-12-315) As required
special sales

permits

(See WAC 230-04-115) As required



9.


six-month

payment plan



(See WAC 230-04-190)




(($ 27))

$ 26





[Statutory Authority: RCW 9.46.070(5). 97-23-053, 230-04-203, filed 11/17/97, effective 6/30/98. Statutory Authority: RCW 9.46.070 (5), (6), (11), (14). 97-14-012, 230-04-203, filed 6/20/97, effective 7/21/97. Statutory Authority: RCW 9.46.070 and 9.46.116. 96-24-007 (Order 304), 230-04-203, filed 11/21/96, effective 1/1/97. Statutory Authority: RCW 9.46.070. 95-12-052, 230-04-203, filed 6/2/95, effective 7/3/95; 95-02-003 and 94-23-007, 230-04-203, filed 12/22/94 and 11/3/94, effective 1/22/95 and 1/1/95.]

OTS-2356.1

AMENDATORY SECTION (Amending WSR 97-23-053, filed 11/17/97, effective 6/30/98)



WAC 230-04-204  Fees--Individuals. Individuals shall submit the following fees to the commission when applying for gambling licenses, permits, miscellaneous changes, or when assessed the cost of special investigation procedures by the commission:




LICENSE TYPE DEFINITION FEE
1. charitable or nonprofit gambling manager Original (($167)) $161
Renewal (($81)) $78
Change of Employer (($81)) $78

2. commercial gambling manager Original (($167)) $161
Renewal (($81)) $78
Change of Employer (($81)) $78

3. distributor's or gambling services supplier representative Original (($227)) $219
Renewal (($140)) $135

4. manufacturer's representative Original (($227)) $219
Renewal (($140)) $135

5. public card room employee class a - nonkey employees:
Original (($167)) $161
Renewal (($81)) $78
class b - key employees.* as defined in wac 230-02-425:
Original,
in-state $217
Original,
out-of-state $271
Renewal $135
.* supports card rooms having special approved activities as specified in WAC 230-04-203(1)

6. other fees
change of name (See WAC 230-04-310) (($27)) $26
duplicate license (See WAC 230-04-290) (($27)) $26
replacement
out-of-state (See WAC 230-04-240) As
records inquiry required


[Statutory Authority: RCW 9.46.070(5). 97-23-053, 230-04-204, filed 11/17/97, effective 6/30/98. Statutory Authority: RCW 9.46.070 and 9.46.116. 96-24-007 (Order 304), 230-04-204, filed 11/21/96, effective 1/1/97. Statutory Authority: RCW 9.46.070. 96-09-070, 230-04-204, filed 4/16/96, effective 7/1/96; 94-23-007, 230-04-204, filed 11/3/94, effective 1/1/95.]