Date of Adoption: February 9, 2001.
Purpose: This rules package simplifies the requirements bingo operators must follow for returning bingo money to their organization's stated purpose.
Citation of Existing Rules Affected by this Order: Repealing WAC 230-02-362, 230-02-364, 230-02-366, 230-02-530, 230-02-535, 230-02-540, 230-20-058, 230-20-060 and 230-20-062; and amending WAC 230-04-260, 230-20-059, 230-30-052, and 230-50-010.
Statutory Authority for Adoption: RCW 9.46.070.
Adopted under notice filed as WSR 00-20-086 on October 3, 2000, with a publication date of October 18, 2000.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.
Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 4, Repealed 9.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 4, Repealed 9.
Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 4, Repealed 9; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0. Effective Date of Rule: April 1, 2001.
February 9, 2001
AMENDATORY SECTION(Amending WSR 97-14-013, filed 6/20/97, effective 7/21/97)
WAC 230-04-260 Effect of exceeding license class income limit -- Procedures -- Penalties. During any annual license period, a licensee shall not exceed the gross gambling receipts limits set forth on the license, except as authorized by this section. The following procedures, limitations, and penalties apply to licensees that exceed limits for any license.
What must I do when it appears I will exceed the gross gambling
receipts limits of my license?)) Anticipating gambling receipts
limit will be exceeded.
(1) Each licensee shall monitor the level of gross gambling receipts received from each gambling activity. When a projection of year-to-date receipts, as applied to the remaining period of the license, indicates that it is reasonably likely that a license will be exceeded, the licensee shall immediately comply with the following:
(a) Apply for a license that authorizes the anticipated level of gross gambling receipts; and
(b) Submit the basic fee required for the new license, less
the amount originally submitted for the previous license, plus a
change of classification fee required by WAC 230-04-202 or
WAC)) 230-04-203(( ; and, if applicable,
(c) Organizations whose bingo licenses were previously limited pursuant to WAC 230-20-062 shall include with their application, evidence of the ability to maintain net return requirements set forth in WAC 230-20-059, table 1, at or above the minimum level for the class of license sought. Achieving net return at or above the minimum level for the license class sought, for at least the six consecutive months immediately preceding the month in which the application for a license upgrade is submitted, shall be prima facie evidence of the ability to operate at the new license class level. A bingo licensee that is unable to demonstrate the ability to achieve net return requirements for at least six consecutive months preceding the application for upgrade may petition the director for a variance in accordance with the criteria set forth in WAC 230-20-060.
If the licensee's petition for a variance is denied, the licensee may petition the commission for review of the director's decision, in accordance with the criteria set forth in WAC 230-20-062)).
If I upgrade my license during my normal annual license period,
when will my license expire?))
(2) Any license upgrade issued by the commission shall be valid only for the remainder of the original term of the license.
What are the penalties for failing to voluntarily apply for a
license upgrade when my license has not previously been
limited?)) Penalty for failing to apply for license upgrade.
(3) Any licensee that fails to comply with the requirements set forth in ((
paragraph)) subsection (1) (( above)) of this
section and exceeds the license class limit within a present or
previous license year, may be assessed an exceeding class fee not
to exceed (( 50%)) fifty percent of the difference between the
fees for the present license class and the new license class or
(( $1,000)) one thousand dollars, whichever is less. Upon written
notice by the commission assessing an exceeding class fee, a
licensee shall remit the proper fee plus all upgrade fees within
(( 20)) twenty days. Failure to remit such fees may result in a
summary suspension of all licenses held by the licensee pending a
hearing for the suspension or revocation of such licenses.
What are the penalties for failing to voluntarily apply for a
license upgrade when my license has been previously limited?
(4) In addition to the penalties set forth in paragraph (3) of this section, any organization that has had its bingo license limited under the restrictions set forth in WAC 230-20-062 and which exceeds its annual gross receipts limits for its assigned class of license, shall have its gambling license summarily suspended.
Can I request a refund of license fees when I do not achieve the level of gross gambling receipts for which I was authorized?)) Partial refund of license fees when gambling receipts limit is not achieved.
(5))) (4) A licensee shall be allowed to apply for a
partial refund of its license fee when its annual gross gambling
receipts are less than the minimum for the class of license
issued. The amount of refund shall be the difference between
fees actually paid to operate during the period and those fees
that would normally apply to the level of gross gambling receipts
actually received during the period. Such request shall be made
after the end of any annual license period and prior to the end
of the next annual license period.
[Statutory Authority: RCW 9.46.070 (1), (2). 97-14-013, 230-04-260, filed 6/20/97, effective 7/21/97. Statutory Authority: Chapter 9.46 RCW. 94-24-056 (Order 262), 230-04-260, filed 12/5/94, effective 1/5/95. Statutory Authority: RCW 9.46.070(14). 88-15-019 (Order 181), 230-04-260, filed 7/11/88. Statutory Authority: RCW 9.46.070 (5), (6), (8), (10), and (11). 84-01-026 (Order 139), 230-04-260, filed 12/12/83. Statutory Authority: RCW 9.46.070 (5) and (9). 80-03-060 (Order 99), 230-04-260, filed 2/25/80; Order 42, 230-04-260, filed 9/18/75; Order 5, 230-04-260, filed 12/19/73.]
AMENDATORY SECTION(Amending Order 303, filed 11/21/96, effective 12/22/96)
WAC 230-20-059 Minimum ((
net return required)) cash flow
requirements for bingo games--(( Prize and expense
limitations--Maximum gross gambling receipts)) Contributions to
stated purpose -- Sanctions.
Bingo shall be conducted only as a
social pastime or for fund-raising to support the stated
purpose(s) of a charitable or nonprofit organization. Organizations licensed to conduct bingo games shall comply with
the following procedures and limitations:
Gross gambling receipts from the sale of bingo cards
shall not exceed the limits by class of license for the
organization's license year as set out in WAC 230-04-202 or as
restricted by the commission under WAC 230-20-062;
(2))) To ensure that organizations licensed to conduct bingo
games meet the intent of RCW 9.46.010 and ((
funds adequate to promote charitable and nonprofit programs, such
organizations shall not allow their bingo operation to award
prizes or pay expenses to conduct bingo games that are excessive
and all capital expenditures for the bingo operation that exceed
six thousand dollars shall be specifically approved by the
governing board. (( Organizations that fail to retain at least
the minimum net return for their class of license, as set forth
in Table 1 of this section and as adjusted by the director, may
be deemed to have paid excessive prizes or unnecessary expenses
from the operation of bingo games. As a result, the commission
may restrict the organization's gross gambling receipts, prizes,
and/or expenses from bingo games or the organization may be
subject to other enforcement actions recommended by the director.
(3) This rule will apply to organizations with measurement periods beginning on or after January 1, 1996.
(a) For gross receipts above $375,000 up to $625,000 - 3% of gross receipts over $375,000;
(b) For gross receipts above $625,000 up to $875,000 - $7,500 plus 4% of gross receipts over $625,000;
(c) For gross receipts above $875,000 up to $1,125,000 - $17,500 plus 5% of gross receipts over $875,000; and
(d) For gross receipts above $1,125,000 - $30,000 plus 6% of gross receipts over $1,125,000.
Failure to meet the requirements of this subsection for any single calendar quarter shall not result in sanctions against the licensee.
(2) The following definitions shall apply to this section:
(a) "Gross receipts" shall mean the combined gross gambling receipts from bingo, pull-tab and punch board activities.
(b) "Adjusted cash flow from the bingo operation" shall mean the combined gross income of the bingo operation less all prizes and expenses, whether paid or accrued. For the purposes of computing expenses, depreciation or amortization, shall not be considered an expense of the bingo operation.
(c) "Bingo operation" shall mean bingo games and all associated activities conducted in conjunction with bingo games at the same location including punch boards, pull-tabs, raffles, snack bar, retail sales activities and rental of the bingo premises.
Sanctions for failing to maintain a positive adjusted cash flow.
(3) If a bingo licensee does not maintain a positive adjusted cash flow from the bingo operation during any two consecutive calendar quarters measured independently, it shall be deemed to be operating primarily for gambling purposes. In this event, the director shall summarily suspend the organization's bingo license.
Sanctions for failing to meet adjusted cash flow requirements.
(4)(a) If a bingo licensee fails to meet the adjusted cash flow requirements of subsection (1) of this section when averaged over a period of any two consecutive calendar quarters, the licensee shall:
(i) Develop a plan to gain compliance;
(ii) Take immediate steps to reduce expenses and prizes paid and to increase income from all activities conducted in conjunction with the bingo game; and
(iii) Report the plan and action taken to commission staff no later than sixty days after the end of the period. Such report shall be in writing and signed by the president or chief operating officer.
(b) If a bingo licensee fails to meet the adjusted cash flow requirements of subsection (1) of this section when averaged over a period of any four consecutive calendar quarters, administrative action shall be taken to revoke the organization's bingo license: Provided, That adjusted cash flow requirements shall be adjusted for any variance granted under subsection (5) of this section.
Petitions for variance.
(5) A bingo licensee may petition the commission for a variance in the following circumstances:
(a) A licensee who fails to meet the adjusted cash flow requirements of subsection (1) of this section when averaged over a period of any four consecutive calendar quarters, but is within ten percent of those requirements, may petition the commission for a one-time variance based on their plans to gain compliance over the next four quarters.
(b) A licensee with long-term, legally binding financial obligations for its bingo facility as of the effective date of this rule, may petition the commission for a variance for a period of no more than two years based on their plans to gain compliance within the two years. This variance shall be in the form of a reduction to the dollar amount of adjusted cash flow required by subsection (1) of this section.
[Statutory Authority: RCW 9.46.070, 9.46.0209, 9.46.0237, 9.46.0205 and 9.46.075. 96-24-008 (Order 303), 230-20-059, filed 11/21/96, effective 12/22/96.]
AMENDATORY SECTION(Amending Order 358, filed 7/15/98, effective 1/1/99)
WAC 230-30-052 Punch boards and pull-tabs operated by charitable or nonprofit organizations -- Net income required. Charitable or nonprofit organizations operating punch boards and pull-tabs and which do not operate bingo games at any level shall not pay excessive expenses. To ensure that licensees meet the intent of RCW 9.46.010 and to prevent the payment of excessive expenses, net income, as a percentage of gross gambling receipts from punch boards and pull-tabs, shall not be less than zero when measured over the annual license period: Provided, That the limits set out in ((
Table 1. of)) WAC 230-20-059 shall apply to
organizations operating punch boards and pull-tabs in conjunction
with a bingo game.
[Statutory Authority: RCW 9.46.070. 98-15-073 (Order 358), 230-30-052, filed 7/15/98, effective 1/1/99. Statutory Authority: RCW 9.46.070 (1)(16). 90-10-007, 230-30-052, filed 4/19/90, effective 7/1/90.]
(2) The commission shall afford an applicant for a license an opportunity for an adjudicative proceeding prior to denying such application, and shall afford a licensee the opportunity for an adjudicative proceeding prior to suspending or revoking a license.
(3) The commission will afford a person applying to the commission for approval of a pull-tab dispensing device under WAC 230-30-095 an opportunity for an adjudicative proceeding prior to denying approval of such device.
(4) No hearing will be conducted with respect to any adjudicative proceeding unless an application for an adjudicative proceeding and request for hearing is timely filed by the applicant or licensee with the commission in compliance with WAC 230-50-210. The application must be made upon a form to be obtained from the commission, or facsimile thereof, and must be received within 20 days following service upon the party affected by the commission or the director of a notice of administrative charges and opportunity for an adjudicative proceeding. Said document shall contain the maximum penalty that may be assessed should an application not be filed by the party affected. An application for an adjudicative proceeding and request for hearing shall accompany all notices of administrative charges.
(5) If an application for an adjudicative proceeding is not timely filed, then the party affected shall have waived the right to a hearing on the allegations set forth in the notice of administrative charges. The party shall be deemed to be in default pursuant to RCW 34.05.440 and the commission and director may take action against the party not to exceed the maximum penalty as stated in the notice of administrative charges and opportunity for an adjudicative proceeding, which action shall be final.
(6) The procedures of RCW 34.05.485, brief adjudicative proceedings, shall be used for the following purposes:
(a) All hearings in which the penalty sought by the commission is for a suspension of seven days or less;
(b) Hearings held pursuant to WAC 230-50-015 (stay of summary suspension);
(c) Hearings held pursuant to WAC 230-04-400(3) (failure to pay required gambling taxes);
(d) Hearings held pursuant to WAC 230-04-190 (10)(c) (two part payment plan: Failure to make second payment);
(e) Hearings in which the parties have stipulated to facts or the parties have stipulated to charges, and the hearing is limited to a determination of whether facts constitute violations as charged and/or determination of appropriate penalty to be imposed;
(f) Denial of an application to operate at a higher bingo license class when the licensee has been restricted by WAC 230-20-062;
Petitions for a variance to bingo net return
requirements authorized by WAC 230-20-060;
(h))) Hearings held pursuant to WAC 230-20-059 (failure for charitable or nonprofit organizations to contribute required funds to their stated purpose or maintain a positive adjusted cash flow;
(h) Hearings held pursuant to WAC 230-08-255 (failure for charitable or nonprofit organizations to make significant progress);
(i) Denial or revocation of extended card room hours pursuant to WAC 230-40-400;
(i))) (j) Denial of request for Phase II pursuant to WAC 230-40-810;
(j))) (k) Repeal of an approved card game pursuant to WAC 230-40-010; or
(k))) (l) Where the parties have stipulated to the use of
brief adjudicative proceedings.
[Statutory Authority: RCW 9.46.070. 00-09-052 (Order 383), 230-50-010, filed 4/14/00, effective 5/15/00. Statutory Authority: RCW 9.46.070 (1), (2). 97-14-013, 230-50-010, filed 6/20/97, effective 7/21/97. Statutory Authority: RCW 9.46.070. 95-13-030, 230-50-010, filed 6/13/95, effective 7/14/95; 92-19-107 (Order 231), 230-50-010, filed 9/18/92, effective 10/19/92. Statutory Authority: Chapter 34.05 RCW. 89-24-003 (Order 200), 230-50-010, filed 11/27/89, effective 12/28/89. Statutory Authority: RCW 9.46.070(13). 80-03-059 (Order 98), 230-50-010, filed 2/25/80; Order 45, 230-50-010, filed 12/30/75; Order 9, 230-50-010, filed 12/19/73.]
The following sections of the Washington Administrative Code are repealed:
|WAC 230-02-362||Primary market area defined.|
|WAC 230-02-364||Secondary market area defined.|
|WAC 230-02-366||Impact market area defined.|
|WAC 230-02-530||Circumstances outside the control of the licensee -- Defined.|
|WAC 230-02-535||Permanent interruption of customer flow -- Defined.|
|WAC 230-02-540||Temporary interruption of customer flow -- Defined.|
The following sections of the Washington Administrative Code are repealed:
|WAC 230-20-058||Temporary moratorium for complying with net return requirements.|
|WAC 230-20-060||Petitioning the director for a variance from net return requirements.|
The following section of the Washington Administrative Code is repealed:
|WAC 230-20-062||Minimum net return from bingo games -- Sanctions.|