WSR 99-13-206

PROPOSED RULES

GAMBLING COMMISSION


[ Filed June 23, 1999, 11:37 a.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 99-09-010 with a published date of May 5, 1999.

Title of Rule: Established business defined.

Purpose: Two versions of one rule are up for discussion: Alternative #1 would require a business to be open to the public for at least thirty days before it can offer gambling activities. Alternative #2 would require a business to have been open to the public for at least thirty days prior to submitting a gambling application to the commission. Both versions of the rule provide that if a business is purchased or transferred, it will be considered established if it has held a gambling license for at least thirty days prior to the date of purchase or transfer and that the thirty days of licensure must have taken place within the past six months.

Statutory Authority for Adoption: RCW 9.46.070.

Summary: See Purpose above.

Reasons Supporting Proposal: See Purpose above.

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 above.

Proposal Changes the Following Existing Rules: See Purpose 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 98901, (360) 698-1000, on August 13, 1999, at 1:30 p.m.

Assistance for Persons with Disabilities: Contact Susan Yeager by August 5, 1999, 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 August 5, 1999.

Date of Intended Adoption: August 13, 1999.

June 23, 1999

Susan Arland

Rules Coordinator



ALTERNATIVE #1

AMENDATORY SECTION [(Amending WSR 95-07-094, filed 3/17/95)]WAC 230-02-380
Established business defined.

"Established business" means any business that has applied for and received all licenses or permits required by any state or local jurisdictions and ((has been)) is open to the public for at least thirty days at the time the gambling license is issued ((a period of not less than ninety days)): Provided, That ((the commission may grant "established" status to a business that:

(1) Has completed all construction and is ready to conduct business;

(2) Has obtained all required licenses and permits;

(3) Provides the commission a planned operating schedule which includes estimated gross sales from each separate activity to be conducted on the proposed premises, including but not limited to the following:

(a) Food and/or drinks for on-premises consumption;

(b) Food and/or drinks "to go"; and

(c) All other business activities.

(4) Passes an inspection by the commission)) if a food and drink business is purchased or otherwise transferred pursuant to WAC 230-04-340 or WAC 230-04-350, it will be considered established if it has been licensed for gambling activities for at least thirty days prior to the date of the purchase. Provided further, That the thirty days of licensure must have occurred within the past six months.

[Statutory Authority: RCW 9.46.070 and 9.46.0217.  95-07-094, § 230-02-380, filed 3/17/95, effective 7/1/95.  Statutory Authority: Chapter 9.46 RCW.  86-19-056 (Order 161), § 230-02-380, filed 9/15/86, effective 1/1/87.]

Reviser's note: The bracketed material preceding the section above was supplied by the code reviser's office.

ALTERNATIVE #2

AMENDATORY SECTION [(Amending WSR 95-07-094, filed 3/17/95)]WAC 230-02-380
Established business defined.

"Established business" means any business that has applied for and received all licenses or permits required by any state or local jurisdictions and ((has been)) is open to the public for at least thirty days at the time the gambling application is submitted ((a period of not less than ninety days)): Provided, That ((the commission may grant "established" status to a business that:

(1) Has completed all construction and is ready to conduct business;

(2) Has obtained all required licenses and permits;

(3) Provides the commission a planned operating schedule which includes estimated gross sales from each separate activity to be conducted on the proposed premises, including but not limited to the following:

(a) Food and/or drinks for on-premises consumption;

(b) Food and/or drinks "to go"; and

(c) All other business activities.

(4) Passes an inspection by the commission)) if a food and drink business is purchased or otherwise transferred pursuant to WAC 230-04-340 or WAC 230-04-350, it will be considered established if it has been licensed for gambling activities for at least thirty days prior to the date of the purchase. Provided further, That the thirty days of licensure must have occurred within the past six months.

[Statutory Authority: RCW 9.46.070 and 9.46.0217.  95-07-094, § 230-02-380, filed 3/17/95, effective 7/1/95.  Statutory Authority: Chapter 9.46 RCW.  86-19-056 (Order 161), § 230-02-380, filed 9/15/86, effective 1/1/87.]

Reviser's note: The bracketed material preceding the section above was supplied by the code reviser's office.

OTS-3113.1


AMENDATORY SECTION(Amending WSR 95-07-094, filed 3/17/95, effective 7/1/95)

WAC 230-04-080
Certain activities to be operated as a commercial stimulant only--Licensing of food and/or drink businesses.

The commission may issue a license to operate punch boards and pull-tabs or public card rooms as commercial stimulants to any established business primarily engaged in the sale of food and/or drink items for consumption on the licensed premises.  Such activities shall not be operated other than as a commercial stimulant and the food and/or drink business shall be open and providing service to the general public at all times gambling activities are operated.  The following requirements apply to applicants for a license to use gambling activities to stimulate food and/or drink sales:

(1) For purposes of chapter 9.46 RCW and these rules, a business shall be presumed to be a "food and/or drink business" as defined by WAC 230-02-370 if:

(a) It is licensed by the liquor control board to sell alcohol beverages at retail to the public for on-premises consumption and:

(i) It is a tavern that holds a valid Tavern - No Persons Under 21 Allowed License (formerly referred to as a Class "B" liquor license); or

(ii) It is a restaurant with a cocktail lounge that holds a valid Spirits, Beer and Wine Restaurant License (formerly referred to as a Class "H" liquor license).

(b) It sells food and/or drink items at retail to the public and:

(i) All food is prepared and served for consumption on the licensed premises: Provided, That food may be prepared at other locations and served on the premises if the food is:

(A) Prepared by the licensed business; or

(B) Purchased from caterers by the licensed business as a wholesale transaction and resold to customers at retail.

(ii) The total gross sales of food and/or drink, for on-premises consumption, is equal to or greater than all other combined nongambling gross sales, rentals, or other income producing activities which occur on the licensed premises when measured on an annual basis.  Applicants seeking qualification for a license under this subsection shall submit data necessary to evaluate compliance with these requirements as a part of their application.  For purposes of determining total gross sales of food and drink for on-premises consumption, meals furnished to employees, free of charge, shall be treated as sales only if:

(A) Detailed records are maintained;

(B) The sale is recorded at estimated cost or menu price, but not more than five dollars per meal; and

(C) No more than one meal per employee is recorded during any four-hour work shift.

(2) When an individual, partnership, or corporation operates two or more businesses within the same building or building complex and such businesses meet the requirements of subsection (1)(a) or (b) of this section, one of the businesses may be designated as a "food and/or drink business" if all of the following conditions are met:

(a) The business being stimulated is physically isolated from all other businesses by walls and doors that clearly demonstrate the business is separate from other business being transacted at that location;

(b) All business transactions conducted by the applicant business are separated from the transactions conducted by all other businesses:

(i) Legally in the form of a separate corporation or partnership; or

(ii) By physical separation of all sales and accounting functions, and the methods of separation are approved by the commission;

(c) All gambling activities are located and occur upon the licensed premises, as defined in the license application and approved by the commission; and

(d) All gambling activities occur only when the food and/or drink business is open for customer service.

[Statutory Authority: RCW 9.46.070 and 9.46.0217.  95-07-094, § 230-04-080, filed 3/17/95, effective 7/1/95; Order 23, § 230-04-080, filed 9/23/74.]

© Washington State Code Reviser's Office