WSR 09-15-074



[ Filed July 13, 2009, 9:26 a.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 09-11-082.

Title of Rule and Other Identifying Information: Amending WAC 230-07-020 Making "significant progress."

Hearing Location(s): Mirabeau Park Hotel, 110 North Sullivan Road, Spokane, WA 99037, (509) 924-9000, on September 11, 2009, at 9:00 a.m.

Date of Intended Adoption: September 11, 2009.

Submit Written Comments to: Susan Arland, P.O. Box 42400, Olympia, WA 98504-2400, e-mail, fax (360) 486-3625, by September 1, 2009.

Assistance for Persons with Disabilities: Contact Gail Grate, executive assistant, by September 1, 2009, TTY (360) 486-3637 or (360) 486-3453.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: This change restores the requirements for demonstrating significant progress for all charitable or nonprofit licensees, not just Groups IV and V. Making significant progress is required under RCW 9.46.0209. Prior to the rules simplification project (RSP), significant progress was defined in WAC 230-08-255. During the RSP, demonstrating significant progress was inadvertently limited to Groups IV and V.

Reasons Supporting Proposal: See above.

Statutory Authority for Adoption: RCW 9.46.070 and 9.46.0209.

Statute Being Implemented: Not applicable.

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: Mark Harris, Assistant Director, Lacey, (360) 486-3579.

No small business economic impact statement has been prepared under chapter 19.85 RCW. A small business economic impact statement has not been prepared pursuant to RCW 19.85.025 because the change would not impose additional costs on businesses.

A cost-benefit analysis is not required under RCW 34.05.328. The Washington state gambling commission is not an agency that is statutorily required to prepare a cost-benefit analysis under RCW 34.05.328.

July 13, 2009

Susan Arland

Rules Coordinator


AMENDATORY SECTION(Amending Order 609, filed 4/24/07, effective 1/1/08)

WAC 230-07-020   Making "significant progress."   Charitable or nonprofit licensees ((in Groups IV and V)) must make "significant progress" toward their stated purpose. They have made "significant progress" when they have:

(1) Complied with all requirements set forth in their bylaws and articles of incorporation; and

(2) Actively engaged in providing services to the public or their members during the fiscal year under review, and the services directly relate to the stated purposes of the organization; and

(3) Held elections to select officers at least once in the previous two years; and

(4) Held a general membership meeting to conduct the business of the organization at least once in the previous two years; and

(5) Used a substantial portion of the licensees' "available resources" for providing program services during the fiscal year under review. For purposes of this section, "available resources":

(a) Include the income generated by or from:

(i) The net of all activities used to raise funds, including net gambling income; and

(ii) Grants, gifts, and contributions from private sources; and

(iii) Public support.

(b) Does not include:

(i) Funds generated in periods other than the fiscal year under review; or

(ii) Funds that are raised or contributed from outside the organization for purposes of purchasing land or capital assets or to endow future operations when those funds are specifically identified by the board or contributors as restricted and separately recorded in the organization's records; or

(iii) Net income from the sale of assets; or

(iv) Fees paid by members or the public to receive services or to participate in specific activities. (Example: Fees to attend a swimming lesson or event.) These fees must be classified as a reduction to both program service and supporting service expenses on a pro rata basis and as a reduction to resources available for providing services in the fiscal year. (Example: In the chart below, licensee X has revenue of five thousand dollars. They must calculate the pro rata reduction by adjusting the total by the percentages of support services, program services expenses, and functional expenses.)

Fees paid by public $5,000
Expenses Unadjusted Amount % of Total Pro Rata Reduction Fees Paid by Public ($5,000) % of Total Adjusted Amount
Support Service Expense $35,000 32% ($1,591) 32% $33,409
Program Service Expense $75,000 68% ($3,409) 68% $71,591
Functional Expenses $110,000 100% ($5,000) 100% $105,000

[Statutory Authority: RCW 9.46.070. 07-10-032 (Order 609), 230-07-020, filed 4/24/07, effective 1/1/08.]

Washington State Code Reviser's Office