WSR 05-16-111

PROPOSED RULES

HORSE RACING COMMISSION


[ Filed August 2, 2005, 4:33 p.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 05-11-112.

Title of Rule and Other Identifying Information: WAC 260-48-960 Handicapping contests, a new section to establish rules for the conduct of handicapping contests involving the outcome of multiple horse races, as required by SSB 5953 in the 59th legislature and signed by the governor on May 9, 2005.

Hearing Location(s): Auburn City Council Chambers, 25 West Main, Auburn, WA 98001, on September 8, 2005, at 9:30 a.m.

Date of Intended Adoption: September 8, 2005.

Submit Written Comments to: Robert J. Lopez, 6326 Martin Way, Suite 209, Olympia, WA 98516-5578, e-mail rlopez@whrc.state.wa.us, fax (360) 459-6461, by September 6, 2005.

Assistance for Persons with Disabilities: Contact Patty Sorby by September 6, 2005, TTY (360)459-6462.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: None, a new section.

Reasons Supporting Proposal: This proposal meets the requirements of SSB 5953 from the 59th legislature and signed by the governor on May 9, 2005, by establishing rules for the conduct of handicapping contests involving the outcome of multiple horse races.

Statutory Authority for Adoption: RCW 67.16.020.

Statute Being Implemented: SSB 5953, 59th legislature.

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

Name of Proponent: Northwest Racing Association dba Emerald Downs Racetrack, private.

Name of Agency Personnel Responsible for Drafting: Robert J. Lopez, 6326 Martin Way, Suite 209, Olympia, WA 98516-5578, (360) 459-6462; Implementation and Enforcement: Robert M. Leichner, 6326 Martin Way, Suite 209, Olympia, WA 98516-5578, (360) 459-6462.

No small business economic impact statement has been prepared under chapter 19.85 RCW. Not applicable.

A cost-benefit analysis is not required under RCW 34.05.328. Not applicable.

August 2, 2005

R. M. Leichner

Executive Secretary

OTS-8233.3


NEW SECTION
WAC 260-48-960   Handicapping contests.   A licensed class 1 racing association may, with the approval of the commission, operate a handicapping contest at which the participants may be charged an entry fee. All paid-entry handicapping contests must be conducted in accordance with the provisions of this rule.

(1) A handicapping contest is defined as a competitive event, where participants, using individual skill to evaluate a variety of factors including the past performance of horses to determine the relative qualities and abilities of horses in a race, attempt to outperform other participants in selecting the finish of horses. Participants who are most successful in selecting horses become eligible to win prizes as prescribed in the official rules of the contest. Prizes and format are predefined and at the discretion of the class 1 racing association.

(2) A class 1 racing association desiring to offer a paid-entry handicapping contest must first apply for and receive approval from the commission to conduct a handicapping contest in Washington. The class 1 racing association must apply to the commission for approval of each and every contest. The class 1 racing association must include with its application the proposed rules for conducting the handicapping contest and the determination of prizes. The class 1 racing association shall obtain written approval to operate the handicapping contest prior to the acceptance of any entry fees regarding said contest.

(3) The class 1 racing association approved to operate a handicapping contest shall distribute at least ninety-five percent of the entry fees as prizes to the winners. Nothing in this section shall preclude an operator from providing additional prizes or promotions.

(4) The entry fee to enter a handicapping contest shall be set by the class 1 racing association. The entry fee and a description of all goods and services to be provided as part of the handicapping contest must be fully disclosed to each competitor prior to paying the entry fee. In addition, all prizes, including amenities such as airfare, meals and lodging, shall also be fully disclosed to each competitor prior to paying the entry fee.

(5) Races that are the subject of a handicapping contest must be races on which the class 1 racing association is authorized to conduct parimutuel wagering.

(6) The officers and employees of the class 1 racing association operating a handicapping contest, and their immediate families are prohibited from participating in any handicapping contest. Commissioners and employees of the commission are also prohibited from participating in any handicapping contest in Washington.

(7) The class 1 racing association shall provide the commission a report on every handicapping contest including a record of all entry fees collected, the number of competitors for each contest, the amount the class 1 racing association paid in prizes, and the name and address of each winning competitor.

(8) Any violation of this section shall be referred to the commission. The commission shall have sole authority to ensure compliance with this rule, conduct hearings on violations, and determine penalties.

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Washington State Code Reviser's Office