Date of Adoption: March 12, 2004.

     Purpose: To amend WAC 260-36-120 to provide specific criteria when an application for license or an existing license shall be denied, suspended or revoked.

     Citation of Existing Rules Affected by this Order: Amending WAC 260-36-120 Denial, suspension and revocation -- Grounds.

     Statutory Authority for Adoption: RCW 67.16.020.

      Adopted under notice filed as WSR 04-04-046 on January 29, 2004.

     Changes Other than Editing from Proposed to Adopted Version: (1) Qualified racing jurisdiction [in subsection] (2)(f) to mean a "recognized" racing jurisdiction; (2) added language to subsection (3) outlining the criteria for the commission to use if a denial or suspension under subsection (2) is appealed; and (3) added a new subsection (5), which defines, recognized racing jurisdiction.

     Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 1, Repealed 0.

     Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 1, Repealed 0.

     Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 1, Repealed 0;      Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.
     Effective Date of Rule: Thirty-one days after filing.

March 12, 2004

R. M. Leichner

Executive Secretary

OTS-6930.2

AMENDATORY SECTION(Amending Rules of racing, filed 4/21/61)

WAC 260-36-120   Denial, suspension, and revocation -- Grounds.   (1) The commission or its designee may refuse to issue or may deny ((or revoke a license or permit to any person who shall have been refused)) a license ((or permit by any other state racing commission or racing authority: Provided, however, That the state racing commission or racing authority of such other state extends to the state racing commission of Washington reciprocal courtesy to maintain the disciplinary control; the commission may deny or revoke any license or permit where the holder thereof has violated the rules and regulations of the commission governing the conduct of persons connected with the race tracks)) to an applicant, or may suspend or revoke a license issued, or may order disciplinary measures, if the applicant or licensee:

     (a) Has been convicted of a felony;

     (b) Has been convicted of violating any law regarding gambling or a controlled substance;

     (c) Has pending misdemeanor or gross misdemeanor criminal charges;

     (d) Has failed to meet the minimum qualifications required for the license for which they are applying;

     (e) Has failed to disclose or states falsely any information required in the application;

     (f) Has been found in violation of statutes or rules governing racing in this state or other jurisdictions;

     (g) Has disciplinary charges pending in this state or other racing jurisdiction;

     (h) Has been or is currently excluded from association grounds by a recognized racing jurisdiction;

     (i) Has had a license denied, by any racing jurisdiction;

     (j) Is a person whose conduct or reputation may adversely reflect on the honesty and integrity of horse racing or interfere with the orderly conduct of a race meeting;

     (k) Demonstrates financial irresponsibility by accumulating unpaid obligations, defaulting in obligations or issuing drafts or checks that are dishonored or payment refused;

     (l) Has violated any of the alcohol or substance abuse provisions outlined in chapter 260-34 WAC;

     (m) Has violated any of the provisions of chapter 67.16 RCW; or

     (n) Has violated any provisions of Title 260 WAC.

     (2) ((The commission may refuse to issue or renew a license, or may suspend or revoke a license issued pursuant to the rule, if it shall find that the applicant, or any person who is a partner, agent, employee or associate of the applicant, has been convicted of a crime in any jurisdiction, or is or has been associating or consorting with any person who has or persons who have been convicted of a crime or crimes in any jurisdiction or jurisdictions, or is consorting or associating with or has consorted or associated with bookmakers, touts, or persons of similar pursuits, or has himself engaged in similar pursuits, or is financially irresponsible, or has been guilty of or attempted any fraud or misrepresentation in connection with racing, breeding or otherwise, or has violated or attempted to violate any law with respect to racing in any jurisdiction or any rule, regulation or order of the commission, or shall have violated any rule of racing which shall have been approved or adopted by the commission, or has been guilty of or engaged in similar, related or like practices.)) The commission or its designee shall deny the application for license or suspend or revoke an existing license if the applicant or licensee:

     (a) Has been convicted of any felony crimes against a person;

     (b) Has been convicted of any felony property crime within the past ten years;

     (c) Has five or more convictions for gross misdemeanors within the last three years;

     (d) Is subject to current prosecution or pending charges for any felony crime;

     (e) Has a felony conviction under appeal;

     (f) Is currently suspended or revoked in Washington or by another recognized racing jurisdiction;

     (g) Is certified under RCW 74.20A.320 by the department of social and health services as a person who is not in compliance with a support order; or

     (h) Has any outstanding arrest warrants.

     (3) An appeal of a license denial based on this policy shall be filed as outlined in WAC 260-88-010. In considering an appeal from a decision by the board of stewards denying a license pursuant to subsection (2) of this section, the commission may only reverse the denial on a showing by the appellant of mitigating information and that the best interests of horse racing would not be compromised by granting or reinstating a license.

     (4) A license suspension or revocation shall be reported in writing to the applicant and the Association of Racing Commissioners International, Inc. whereby other member racing jurisdictions shall be advised.

     (5) A recognized racing jurisdiction shall include members of the Association of Racing Commissioners International (RCI) and the North American Pari-Mutuel Regulators Association (NAPRA), and any other racing authority with which the commission has a written reciprocity agreement.

[Rules of racing, § 347, filed 4/21/61; sub. (2) added as rule § 347(a), filed 1/21/64.]

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