WSR 01-11-082

PROPOSED RULES

LOTTERY COMMISSION


[ Filed May 16, 2001, 9:01 a.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 01-07-013.

Title of Rule: WAC 315-01-085 Accessibility for persons with disabilities.

Purpose: To amend chapter 315-34 WAC to revise Lotto prizes and methods for dealing with prizes.

Statutory Authority for Adoption: RCW 67.70.040.

Statute Being Implemented: RCW 67.70.040.

Summary: See Purpose above.

Reasons Supporting Proposal: See below.

Name of Agency Personnel Responsible for Drafting: Mary Jane Ferguson, Rules Coordinator, Olympia, (360) 664-4833; Implementation and Enforcement: Robert C. Benson, Jr., Acting Director, Olympia, (360) 664-4800.

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: Amendments to chapter 315-34 WAC will revise Lotto prizes and methods of dealing with prizes.

Proposal Changes the Following Existing Rules: The amendments revise Lotto prizes and methods of dealing with prizes.

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 lottery games; and (2) the rules 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, or other actions by business.

RCW 34.05.328 does not apply to this rule adoption. Said section does not apply to this proposed rule because it is not proposed by one of the listed agencies. As the rules are merely interpretive, the lottery does not voluntarily apply this section.

Hearing Location: Marine Village Inn, 1728 West Marine View Drive, Everett, WA, on July 27, 2001, at 10:00 a.m.

Assistance for Persons with Disabilities: Contact Mary Jane Ferguson, by July 25, 2001, TDD (360) 586-0933, or (360) 664-4833.

Submit Written Comments to: Mary Jane Ferguson, Lottery, fax (360) 586-6586, by July 25, 2001.

Date of Intended Adoption: July 27, 2001.

May 15, 2001

Mary Jane Ferguson

Rules Coordinator

OTS-4825.2


AMENDATORY SECTION(Amending WSR 97-24-076, filed 12/2/97, effective 1/2/98)

WAC 315-34-040   Prizes for Lotto.   (1) The prize amounts to be paid to each Lotto player who selects a winning combination of numbers in the first, second, and third prize categories ((vary due to parimutuel calculation of prizes.)) are as follows:

WINNING

COMBINATIONS

PRIZE CATEGORIES PRIZE AMOUNTS ODDS OF WINNING

(ONE PLAY)

All six winning numbers in one play First Prize (((Jackpot))) Jackpot 1:13,983,816
Any five but not six winning numbers in one play Second Prize $1,000 1:54,201
Any four but not five or six winning numbers in one play Third Prize $35 1:1,033
Any three but not four, five or six winning numbers in one play Fourth Prize $3 1:57

(2) ((Reserved.

(3))) Prize amounts.

(a) First prize (jackpot). The first prize will be the amount announced by the director as the Lotto jackpot. The jackpot will be divided equally among all players who selected all six winning numbers in one play (in any sequence).

(b) Second prize. ((2.3 percent of the Lotto sales for the drawing shall be divided equally among all players)) The second prize will be $1,000, which will be paid to each player who selected five of the six winning numbers in one play (in any sequence).

(c) Third prize. ((4.6 percent of the Lotto sales for the drawing shall be divided equally among all players)) The third prize will be $35, which will be paid to each player who selected four of the six winning numbers in one play (in any sequence).

(d) Fourth prize. A $3.00 prize is to be paid to each player who selected three of the six winning numbers in one play (in any sequence).

(e) ((Reserved.

(f) Second and third prizes will be rounded down to the nearest dollar.

(g))) The holder of a winning ticket may win only one prize per play in connection with the winning numbers drawn and shall be entitled only to the highest prize category won by those numbers.

(((h) The holder of two or more jackpot winning tickets with a cumulative total cash value of $250,000 or more may elect to receive a single prize based on the total cash value with prize payments in accordance with subsection (5)(a) or (b) of this section.

(i))) (f) In the event any player who has selected three, four, five, or six of the six winning numbers does not claim the prize won within one hundred eighty days after the drawing in which the prize was won, that player's prize shall be retained in the state lottery account for further use as prizes, pursuant to RCW 67.70.190.

(((4) Roll-over feature.

(a) If no player selects all six winning numbers for any given drawing, the jackpot accumulated for that drawing will be added to the jackpot accumulation for the next drawing. This process is repeated until the jackpot is won.

(b) If no player selects five of the six winning numbers for any given drawing, the second prize allocation will be added to the jackpot accumulation for the next drawing.

(c) If no player selects four of the six winning numbers for any given drawing, the third prize allocation will be added to the jackpot accumulation for the next drawing.)) (3) The amendments to chapter 315-34 WAC, as adopted at the July 2001 lottery commission meeting, shall take effect on September 30, 2001, or on a date to be designated by the director and advertised to the public. The provisions of the existing chapter 315-36 WAC shall remain in effect until September 30, 2001, or until the date designated by the director for the commencement of this amended rule.

[Statutory Authority: RCW 67.70.040. 97-24-076, 315-34-040, filed 12/2/97, effective 1/2/98; 96-15-054, 315-34-040, filed 7/15/96, effective 8/15/96; 94-07-029, 315-34-040, filed 3/8/94, effective 4/8/94; 93-03-008, 315-34-040, filed 1/8/93, effective 2/8/93; 92-11-033, 315-34-040, filed 5/15/92, effective 6/15/92; 92-07-014, 315-34-040, filed 3/6/92, effective 4/6/92; 90-19-048, 315-34-040, filed 9/14/90, effective 10/15/90.]


AMENDATORY SECTION(Amending WSR 97-24-076, filed 12/2/97, effective 1/2/98)

WAC 315-34-050   Ticket purchases.   (1) Lotto tickets may be purchased or redeemed during no less than seventeen hours each day in accordance with a schedule to be determined by the director, provided that on-line retailers shall sell and redeem tickets only during their normal business hours.

(2) Lotto tickets may be purchased only from a lottery retailer authorized by the director to sell on-line tickets.

(3) Lotto tickets shall on the front of the ticket contain the player's selection of numbers, amount, game grids played, drawing date and validation and reference numbers. The back of the ticket shall contain overall odds of winning, player instructions, player information and signature area, and the ticket serial number.

(((4) At the time of ticket purchase, the player may elect the cash option method of jackpot prize payment.

(5) The election of payment method at the time of purchase is final and irrevocable.))

[Statutory Authority: RCW 67.70.040. 97-24-076, 315-34-050, filed 12/2/97, effective 1/2/98; 90-19-048, 315-34-050, filed 9/14/90, effective 10/15/90.]


AMENDATORY SECTION(Amending WSR 99-19-103, filed 9/20/99, effective 10/21/99)

WAC 315-34-057   Lotto prize claim and payment methods.   The following sets forth requirements for claims and payment of Lotto prizes:

(1) Claims for prize payment shall be made in accordance with WAC 315-30-030(6).

(2) Prize payments shall be made as follows:

(a) Cash option: After a player has claimed a jackpot prize or a share of a jackpot prize, and after the claim has been validated (including a debt check pursuant to WAC 315-06-125), the player may elect to be paid a one-time single cash payment of fifty percent of his or her share of the announced jackpot, provided:

(i) The player must elect this cash option within sixty days of the validation of his or her prize, by following the procedure required by the lottery;

(ii) If the federal tax code is interpreted by federal authorities to require that this cash option be exercised within sixty days of the drawing for the prize, then (a)(i) of this subsection will not apply and instead, the player must elect this cash option within sixty days of the date of the drawing for the prize;

(iii) The player's choice of payment method as designated by signing the appropriate lottery form is final and may not be changed by the player at a later date. ((The only exception to this final choice may be a one-time opportunity designated by the lottery for winners to choose to cash out their prize annuities during some period from July 1, 1999, to December 31, 2000.))

(b) Annuity: A player who chooses not to elect the cash option or who does not elect the cash option within the sixty-day limit will be paid his or her prize in twenty-five annual installment payments.

[Statutory Authority: RCW 67.70.040. 99-19-103, 315-34-057, filed 9/20/99, effective 10/21/99.]

Washington State Code Reviser's Office