S-4394.1  _______________________________________________

                    SUBSTITUTE SENATE BILL 6373

          _______________________________________________

State of Washington      56th Legislature     2000 Regular Session

By Senate Committee on Commerce, Trade, Housing & Financial Institutions (originally sponsored by Senators Gardner, T. Sheldon, Prentice, Rasmussen, Winsley, Hale, Deccio and Shin)

Read first time 02/01/2000.

Clarifying promotional contests of chance.

    AN ACT Relating to promotional contests of chance; adding a new section to chapter 9.46 RCW; and repealing RCW 9.46.0355.

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:

    (1) The legislature authorizes a business to conduct a promotional contest of chance as defined in this section, in this state, or partially in this state, whereby the elements of prize and chance are present but in which the element of consideration is not present.

    (2) Promotional contests of chance under this section are not gambling as defined in RCW 9.46.0237.

    (3) Promotional contests of chance shall be conducted as advertising and promotional undertakings solely for the purpose of advertising or promoting the services, goods, wares, and merchandise of a business.

    (4) No person eligible to receive a prize in a promotional contest of chance may be required to:

    (a) Pay any consideration to the promoter or operator of the business in order to participate in the contest; or

    (b) Purchase any service, goods, wares, merchandise, or anything of value from the business, however, for other than contests entered through a direct mail solicitation, the promoter or sponsor may give additional entries or chances upon purchase of service, goods, wares, or merchandise if the promoter or sponsor provides an alternate method of entry requiring no consideration.

    (5)(a) As used in this section, "consideration" means anything of pecuniary value required to be paid to the promoter or sponsor in order to participate in a promotional contest.  Such things as visiting a business location, placing or answering a telephone call, completing an entry form or customer survey, or furnishing a stamped, self-addressed envelope do not constitute consideration.

    (b) Coupons or entry blanks obtained by purchase of a bona fide newspaper or magazine or in a program sold in conjunction with a regularly scheduled sporting event are not consideration.

    (6) Unless authorized by the commission, equipment or devices made for use in a gambling activity are prohibited from use in a promotional contest.

    (7) This section shall not be construed to permit noncompliance with chapter 19.170 RCW, promotional advertising of prizes, and chapter 19.86 RCW, unfair business practices.

NEW SECTION. Sec. 2.  RCW 9.46.0355 (Promotional contests of chance authorized) and 1987 c 4 s 35 are each repealed.

                            --- END ---