WSR 05-14-163



[ Filed July 6, 2005, 10:32 a.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 05-11-083.

Title of Rule and Other Identifying Information: WAC 230-04-208 Problem gambling awareness and training fee.

Hearing Location(s): The Heathman Lodge, 7801 N.E. Greenwood Drive, Vancouver, WA 98662, (360) 254-3100, on August 12, 2005, at 9:30 a.m.

Date of Intended Adoption: August 12, 2005.

Submit Written Comments to: Susan Arland, Rules Coordinator, P.O. Box 42400, Olympia, WA 98504, e-mail, fax (360) 586-3625, by August 1, 2005.

Assistance for Persons with Disabilities: Contact Shirley Corbett by August 1, 2005, TTY (360) 586-3637 or (360) 486-3447.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: This rule repeals the problem gambling fee the commission passed last November, which was to be effective June 30, 2005. Following is a brief history of this rule. In November 2004, the commission adopted a rule to establish a fee to provide a stable funding source of approximately $232,000 each year for a problem gambling helpline, and training and awareness services (RCW 9.46.071). The fee was to be paid by licensed charitable/nonprofit and commercial organizations. The rule included a sunset clause that the fee would automatically expire if the legislature adopted a law that appropriated funds for the same purposes. During the 2005 legislative session, a law was adopted to fund problem gambling treatment, education, and awareness (ESHB 1031). The law transfers state lottery revenue and creates a new business and occupation (B&O) tax on gambling businesses (Gambling Commission licensees and live horse racing tracks) that have annual gross income over $50,000. The B&O tax will be 0.1% of gross income (after prizes) through June 30, 2006, and 0.13% thereafter. The bill takes effect July 1, 2005. The bill prohibits the Gambling Commission, while the new B&O tax is in effect, from increasing license fees to fund a program for problem and pathological gambling. However, should the B&O tax later be repealed, the Gambling Commission, Horse Racing Commission, and the state lottery may contract for services to assist in providing treatment for problem and pathological gambling, and the Gambling Commission may increase license fees to fund the authorized services. As written, in the commission's original rule and the new law, the commission's problem gambling fee would not take effect. However, in the interest of being clear, this rule is up for repeal.

Statutory Authority for Adoption: RCW 9.46.070.

Rule is not necessitated by federal law, federal or state court decision.

Name of Proponent: Washington State Gambling Commission, governmental.

Name of Agency Personnel Responsible for Drafting: Susan Arland, Rules Coordinator, Lacey, (360) 486-3466; Implementation: Rick Day, Director, Lacey, (360) 486-3446; and Enforcement: Neal Nunamaker, Deputy Director, Lacey, (360) 486-3452.

No small business economic impact statement has been prepared under chapter 19.85 RCW. The amendment will not impose additional costs on licensees.

A cost-benefit analysis is not required under RCW 34.05.328. Amendment does not impose additional costs to licensees.

July 6, 2005

Susan Arland

Rules Coordinator



     The following section of the Washington Administrative Code is repealed:
WAC 230-04-208 Problem gambling awareness and training fee.

Washington State Code Reviser's Office