Original Notice.

     Preproposal statement of inquiry was filed as WSR 02-17-046.

     Title of Rule: WAC 260-28-030 Financial responsibility.

     Purpose: To establish criteria, definitions, and procedures relating to financial responsibility.

     Statutory Authority for Adoption: RCW 67.16.020.

     Summary: To establish criteria, definitions and procedures.

     Name of Agency Personnel Responsible for Drafting: Robert J. Lopez, Olympia, Washington, (360) 459-6462; Implementation and Enforcement: Robert M. Leichner, Olympia, Washington, (360) 459-6462.

     Name of Proponent: Washington Horse Racing Commission, governmental.

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

     Explanation of Rule, its Purpose, and Anticipated Effects: Adopting stronger financial responsibility requirements for the horse racing industry.

     Proposal Changes the Following Existing Rules: Amending WAC 260-28-030.

     No small business economic impact statement has been prepared under chapter 19.85 RCW. The changes will not impose any costs upon businesses in the horse racing industry.

     RCW 34.05.328 does not apply to this rule adoption. The rule is not subject to this section under RCW 34.05.328 (5)(a).

     Hearing Location: Auburn City Council Chambers, 25 West Main, Auburn, WA 98001, on March 13, 2003, at 1:00 p.m.

     Submit Written Comments to: Robert M. Leichner, Executive Secretary, Washington Horse Racing Commission, 6326 Martin Way, #209, Olympia, WA 98516, (360) 459-6461, by March 12, 2003.

     Date of Intended Adoption: March 13, 2003.

January 7, 2003

R. M. Leichner

Executive Secretary

     (1) No licensee shall willfully fail or refuse to pay money due for services, supplies, or fees connected with his or her operations as a licensee. No licensee shall falsely deny such an amount due or the validity of a complaint on such an amount due for the purpose of hindering, delaying, or defrauding the person to whom the amount is due.

     (2) A financial responsibility complaint against a licensee must be in writing, signed by the complainant, and accompanied by documentation of the services, supplies or fees alleged to have been provided, or by a judgment from a civil court that has been issued within one year of the date of the complaint.

     (3) Any licensee failing to make restitution as a result of a complaint or judgment may be subject to disciplinary action, including a license suspension.

     (4) The Stewards will consider for disciplinary action only those financial responsibility complaints that meet the following criteria:

     (a) The complaint involves services, supplies or fees that are directly related to the licensee's Washington racetrack operations; and

     (b) The debt or cause of action originated in Washington, or the civil court judgment was issued in Washington, within one year of the date the complaint is filed.

     (5) In determining whether to act on a financial responsibility complaint, the Stewards may consider the number of financial responsibility complaints made by the complainant against the same licensee within a two-year period immediately preceding the current complaint.

     (6) No licensee shall write, issue, make or present any check in payment for any license fee, fine, nomination or entry fee or other fees, or for any service or supplies when the licensee knows or should reasonably know that the check will be refused for payment by the bank upon which it is written, or that the account upon which the check is written does not contain sufficient funds for payment of the check, or that the check is written on a closed or non-existent account. The fact that such a check is returned to the payee by the bank as refused is a grounds for a license suspension pending satisfactory redemption of the returned check.

[Rules of racing, § 27, filed 4/21/61.]

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

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