WSR 98-20-106
PROPOSED RULES
LOTTERY COMMISSION
[Filed October 7, 1998, 11:33 a.m.]
Original Notice.
Preproposal statement of inquiry was filed as WSR 98-15-038.
Title of Rule: WAC 315-04-200 Denial, suspension or revocation of a retailer license.
Purpose: To add a criteria for which the director may deny, suspend or revoke a retailer's license to sell lottery tickets: conviction for any misdemeanor within the past six months.
Statutory Authority for Adoption: RCW 67.70.040.
Statute Being Implemented: RCW 67.70.040.
Summary: See Purpose above.
Reasons Supporting Proposal: See Explanation of Rule below.
Name of Agency Personnel Responsible for Drafting: Mary Jane Ferguson, Rules Coordinator, Olympia, (360) 753-1947; Implementation and Enforcement: Merritt D. Long, Director, Olympia, (360) 753-3330.
Name of Proponent: Washington State Lottery Commission, governmental.
Rule is not necessitated by federal law, federal or state court decision.
Explanation of Rule, its Purpose, and Anticipated Effects: This amendment to WAC 315-04-200 will add conviction for any misdemeanor within the past six months as a criteria for which the director may deny, suspend, or revoke a retailer's license to sell lottery tickets. This amendment represents lottery policy to review and consider such convictions on a case-by-case basis.
Proposal Changes the Following Existing Rules: As noted above, the amendment adds to WAC 315-04-200 a criteria for which the director may deny, suspend or revoke a retailer's license to sell lottery tickets.
No small business economic impact statement has been prepared under chapter 19.85 RCW. The lottery has considered whether these rules are subject to the Regulatory Fairness Act, chapter 19.85 RCW, and has determined that they are not for the following reasons: (1) The rules have no economic impact on business' cost of equipment, supplies, labor or administrative costs. The rules are designed to establish rules and procedures for the playing of instant lottery games; and (2) the rules will have a negligible impact, if any, on business because they are interpretive. They have been promulgated for the purpose of stating policy, procedure and practice and do not include requirements for forms, fees, appearances of other actions by business.
RCW 34.05.328 does not apply to this rule adoption. Said section does not apply to these proposed rules because they are not proposed by one of the listed agencies. As the rules are merely interpretive, the lottery does not voluntarily apply this section.
Hearing Location: SeaTac Airport Large Auditorium, on November 20, 1998, at 10:00 a.m.
Assistance for Persons with Disabilities: Contact Mary Jane Ferguson by November 18, 1998, (360) 753-1947.
Submit Written Comments to: Mary Jane Ferguson, Lottery, fax (360) 586-6586, by November 18, 1998.
Date of Intended Adoption: November 20, 1998.
October 7, 1998
Mary Jane Ferguson
Rules Coordinator
[AMENDATORY SECTION (Amending WSR 94-23-047, filed 11/10/94)]
WAC 315-04-200 Denial, suspension or revocation of a license. The director may deny an application for or suspend or revoke any license issued pursuant to these rules for one or more of the following reasons:
(1) Failure to meet or maintain the eligibility criteria for license application and issuance established by chapter 7, Laws of 1982, 2nd ex. sess., or these rules;
(2) Failure to account for lottery tickets received or the proceeds of the sale of tickets or to post a bond if required by the director or to comply with the instructions of the director concerning the licensed activity;
(3) Failure to pay to the lottery any obligation when due;
(4) Violating any of the provisions of chapter 7, Laws of 1982, 2nd ex. sess., or these rules;
(5) Failure to file any return or report or to keep records required by the director or by these rules;
(6) Failure to pay any federal, state or local tax or indebtedness;
(7) Fraud, deceit, misrepresentation or conduct prejudicial to public confidence in the lottery;
(8) If public convenience is adequately served by other licensees;
(9) Failure to sell a sufficient number of tickets to meet administrative costs;
(10) If there is a history of thefts or other forms of losses of tickets or revenue therefrom;
(11) If there is a delay in accounting or depositing in the designated depository the revenues from the ticket sales;
(12) Has violated, failed or refused to comply with any of the provisions, requirements, conditions, limitations or duties imposed by Chapter 9.46 RCW (Gambling Act), or Chapter 7, Laws of 1982 2nd ex. sess., or when a violation of any provisions of Chapter 7, Laws of 1982, 2nd ex. sess. has occurred upon any premises occupied or operated by any such person or over which he or she has substantial control;
(13) Knowingly causes, aids, abets, or conspires with another to cause any person to violate any of the laws of this state;
(14) Has obtained a license by fraud, misrepresentation, concealment or through inadvertence or mistake;
(15) Has been convicted of, or forfeited bond upon a charge of, or pleaded guilty to, forgery, larceny, extortion, conspiracy to defraud, wilful failure to make required payments or reports to a governmental agency at any level, or filing false reports therewith, or of any similar offense or offenses, or of bribing or otherwise unlawfully influencing a public official or employee of any state or the United States, or of any misdemeanor, involving any gambling activity or physical harm to individuals or involving moral turpitude, or of any misdemeanor within the past six months, or of any felony.
(16) Makes a misrepresentation of, or fails to disclose, a material fact to the commission or director on any report, record, application form or questionnaire required to be submitted to the commission or director. Misrepresentation of, or failure to disclose criminal history shall be considered a material fact for purpose of this section;
(17) Denies the commission or director or their authorized representatives, including authorized local law enforcement agencies, access to any place where a licensed activity is conducted, or fails to promptly produce for inspection or audit any book, record, document or item required by law or these rules;
(18) Is subject to current prosecution or pending charges, or a conviction which is under appeal, for any of the offenses indicated under subsection (15) of this section: PROVIDED, That at the request of an applicant for an original license, the director may defer decision upon the application during the pendency of such prosecution or appeal;
(19) Has pursued or is pursuing economic gain in an occupational manner or context which is in violation of the criminal or civil public policy of this state if such pursuit creates probable cause to believe that the participation of such person in lottery or gambling or related activities would be inimical to the proper operation of an authorized lottery or gambling or related activity in this state. For the purposes of this section, occupational manner or context shall be defined as the systematic planning, administration, management or execution of an activity for financial gain;
(20) Is a career offender or a member of a career offender cartel or an associate of a career offender or career offender cartel in such a manner which creates probable cause to believe that the association is of such a nature as to be inimical to the policy of this state or to the proper operation of the authorized lottery or gambling or related activities in this state. For the purposes of this section, career offender shall be defined as any person whose behavior is pursued in an occupational manner or context for the purpose of economic gain utilizing such methods as are deemed criminal violations of the public policy of this state. A career offender cartel shall be defined as any group of persons who operate together as career offenders;
(21) Failure to follow the instructions of the director for the conduct of any particular game or special event;
(22) Failure to follow security procedures of the director for the handling of tickets or for the conduct of any particular game or special event;
(23) Makes a misrepresentation of fact to the purchaser, or prospective purchaser, of a ticket, or to the general public with respect to the conduct of a particular game or special event;
(24) Failure to comply with lottery point-of-sale requirements which have been published and disseminated to lottery retailers; or
(25) Failure or inability to meet financial obligations as they fall due in the normal course of business.
[Statutory Authority: RCW 67.70.040. 94-23-047, § 315-04-200, filed 11/10/94, effective 12/11/94; 87-01-058 (Order 97), § 315-04-200, filed 12/16/86; 85-16-031 (Order 77), § 315-04-200, filed 7/30/85; 85-09-004 (Order 72), § 315-04-200, filed 4/5/85. Statutory Authority: RCW 67.70.040 and 67.70.050. 83-07-022 (Order 17), § 315-04-200, filed 3/11/83. Statutory Authority: 1982 2nd ex.s. c 7. 82-21-037 and 82-21-068 (Orders 2 and 2A), § 315-04-200, filed 10/15/82 and 10/20/82.]
Reviser's note: The bracketed material preceding the section above was supplied by the code reviser's office.
Reviser's note: RCW 34.05.395 requires the use of underlining and deletion marks to indicate amendments to existing rules. The rule published above varies from its predecessor in certain respects not indicated by the use of these markings.