WSR 10-07-069

PROPOSED RULES

GAMBLING COMMISSION


[ Filed March 16, 2010, 11:02 a.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 09-24-036.

Title of Rule and Other Identifying Information: Amended WAC 230-11-065 ((Own prizes for raffles before drawing date)) Raffle prizes and new WAC 230-11-067 Procedures for requesting approval to offer raffle prizes over forty thousand dollars or eighty thousand annually.

Hearing Location(s): Red Lion Hotel, 2525 North 20th Avenue, Pasco, WA 99301, (509) 547-0701, on May 14, 2010, at 9:00 a.m.

Date of Intended Adoption: May 14, 2010.

Submit Written Comments to: Susan Arland, P.O. Box 42400, Olympia, WA 98504-2400, e-mail SusanA@wsgc.wa.gov, fax (360) 486-3625, by May 1, 2010.

Assistance for Persons with Disabilities: Contact Gail Grate, executive assistant, by May 1, 2010, TTY (360)486-3637 or (360) 486-3453.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The title of WAC 230-11-065 was amended to reflect more than just ownership of raffle prizes, and subsection (3)(c) was amended to refer licensees to the new rule, WAC 230-11-067. The proposed new section, WAC 230-11-067 outlines the requirements for raffle licensees to follow if their organization requests approval to offer raffle prizes over forty thousand dollars or eighty thousand dollars annually. Raffle licensees who request approval to exceed the prize limits would be required to submit documentation listed in this rule.

Reasons Supporting Proposal: WAC 230-11-065 allows raffle licensees to request approval from the commission to exceed the raffle prize limits. During the 2009 legislative session, the maximum cost allowed per raffle ticket was increased from $25 to $100 effective July 2009. Since that time, there has been an increase in the number of organizations requesting approval to exceed the prize limits. The commission recently received requests from two organizations to conduct large scale raffles with a tiered prize system. At the November 2009 meeting, the commission requested staff develop guidelines to help determine whether an organization has shown good cause to exceed the raffle prize limits. This new rule will provide guidelines on what information licensees should submit when requesting approval to offer prizes over forty thousand or eighty thousand dollars annually. The information submitted by licensees will assist the commission when they are evaluating whether to approve a request to exceed raffle prize limits or not.

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: 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 was not prepared because the proposed rule change does not impose more than minor costs, as defined in chapter 19.85 RCW, to licensees. We don't anticipate additional costs for licensees because they are already required to show good cause in a proposal to increase raffle prize limits.

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.

March 16, 2010

Susan Arland

Rules Coordinator

OTS-3077.1


AMENDATORY SECTION(Amending Order 602, filed 9/26/06, effective 1/1/08)

WAC 230-11-065   ((Own prizes for raffles before drawing date.)) Raffle prizes.   (1) Organizations must own the prizes offered to winners before the date of the drawing. However, if the winner has an option to receive a cash prize instead of the merchandise, the organization may enter into a contract to purchase the merchandise prize after the winner chooses his or her option. The organization must have the funds to make the purchase on account before the date of the drawing.

(2) At the time and date of any raffle drawing, the organization must have on deposit an unencumbered amount of money that is equal to or greater than all cash prizes being offered in the raffle. The organization must have these funds deposited in the gambling receipts account, if required, or in a recognized Washington state depository authorized to receive funds. The organization must not reduce the balance of funds available from this account below the required amount before awarding the prize(s).

(3) Raffle prizes must:

(a) Be available at the time and place of the drawing; and

(b) If cash, be United States currency or an equivalent amount of negotiable instruments; and

(c) For licensees, not exceed forty thousand dollars per prize or eighty thousand dollars in total raffle prizes in a license year((. The commissioners may vote to permit licensees to exceed these limits on specific occasions if the licensees show good cause in writing)), except as authorized in WAC 230-11-067.

[Statutory Authority: RCW 9.46.070. 06-20-040 (Order 602), 230-11-065, filed 9/26/06, effective 1/1/08.]

OTS-3070.3


NEW SECTION
WAC 230-11-067   Requesting approval to offer raffle prizes exceeding forty thousand dollars per prize or eighty thousand dollars annually.   The commissioners may vote to approve a licensee to exceed raffle prize limits on specific occasions if a licensee shows good cause in writing.

The licensee must submit a raffle plan to us that includes at least the following information:

(1) The organization's goals for conducting the raffle; and

(2) A brief overview of the licensee's mission and vision including the type of programs supported by the licensee and clients served; and

(3) Specific details of the raffle rules including:

(a) Date of the drawing; and

(b) Cost of raffle tickets; and

(c) Prizes available; and

(d) Security of prizes; and

(e) Plans for selling raffle tickets; and

(f) Description of how the licensee protects the integrity of the raffle; and

(4) An explanation of how the proceeds from the raffle will be used; and

(5) A plan to protect the licensee in the event of low ticket sales and other risks; and

(6) An explanation of how the licensee will purchase the prize(s) for the raffle; and

(7) A projected budget including:

(a) Estimated gross gambling receipts, expenses, and net income for the raffle; and

(b) Minimum number of projected ticket sales to break even; and

(c) Corresponding sales and prize levels with projected revenues and expenses for each level; and

(d) Minimum and maximum prizes available; and

(8) Any other information that we request or any information the licensee wishes to submit.

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Washington State Code Reviser's Office