WSR 11-15-100

PROPOSED RULES

GAMBLING COMMISSION


[ Filed July 20, 2011, 11:35 a.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 11-11-020.

Title of Rule and Other Identifying Information: WAC 230-05-020, fees-bona fide charitable/nonprofit organizations and WAC 230-05-030 Fees for other businesses.

Hearing Location(s): Great Wolf Lodge, 20500 Old Highway 99 S.W., Grand Mound, WA 98531, on September 8 or 9, 2011, at 9:00 a.m. or 1:00 p.m. NOTE: Meeting dates and times are tentative. Visit our web site at www.wsgc.wa.gov and select public meeting about ten days before the meeting to confirm meeting date/location/start time.

Date of Intended Adoption: September 8 or 9, 2011. NOTE: Meeting dates and times are tentative. Visit our web site at www.wsgc.wa.gov and select public meeting about ten days before the meeting to confirm meeting date/location/start time.

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 September 1, 2011.

Assistance for Persons with Disabilities: Contact Gail Grate, executive assistant, by September 1, 2011, TTY (360) 486-3637 or (360) 486-3453.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: We have received a petition for rule change from Mr. Bearden, representing various charitable and nonprofit organizations, some of which have a gambling license and others do not. The proposed change would reduce licensing fees and I.D. stamp fees for charitable and nonprofit organizations (C/NP's) by fifty percent. This would be a reduction of license fees to the commission of approximately $460,000 per year. For I.D. stamp fees, the estimated reduction per year would be approximately $50,000. Therefore, the total reduction in fees to the commission per year would be over $500,000.

Reasons Supporting Proposal: In their petition, the petitioners stated "The 50% request should not be considered a discount, but an exchange for services provided. Charities are required to return 40% - 60% of their profits to the community and needy. The returns are in cash, services, supplies, and/or volunteer labor. These materials and services provide maximum return on the donation as all are voluntary, therefore no costs (i.e., government employee pay and allowances, travel, administration) is withdrawn from the contribution."

Statutory Authority for Adoption: RCW 9.46.070.

Statute Being Implemented: Not applicable.

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

Name of Proponent: Robert Bearden, representing various charitable and nonprofit organizations, some of which have a gambling license and others do not, private.

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.

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 20, 2011

Susan Arland

Rules Coordinator

OTS-4132.1


AMENDATORY SECTION(Amending Order 621, filed 11/20/07, effective 1/1/08)

WAC 230-05-020   Charitable or nonprofit organization fees.   Bona fide charitable and nonprofit organizations must pay the following fees to us when applying for gambling licenses, permits, miscellaneous changes, or inspection services:


1. Amusement games


License Annual Gross Gambling Receipts Fee
Class A Premises only $((58))

29

Class B Up to $10,000 $((58))

29

Class C Up to $25,000 $((319))

160

Class D Up to $50,000 $((513))

257

Class E Over $50,000 $((894))

447


2. Bingo


License Annual Gross Gambling Receipts Fee One Time Variance*
Class A Up to $25,000 $((58))

29

$1,000
Class B Up to $75,000 $((185))

93

$1,000
Class C Up to $150,000 $((380))

190

$2,000
Class D Up to $350,000 $((1,026))

513

$4,000
Class E Up to $650,000 $((1,732))

866

$8,000
Class F Up to $1,500,000 $((3,486))

1,743

$15,000
Class G Up to $2,000,000 $((5,028))

2,514

Class H Up to $3,000,000 $((6,722))

3,361

$30,000
Class I Up to $4,000,000 $((8,400))

4,200

$38,000
Class J Up to $5,000,000 $((10,078))

5,039

$45,000
Class K Up to $6,000,000 $((11,306))

5,653

$53,000
Class L Up to $7,000,000 $((12,922))

6,461

$60,000
Class M Up to $8,000,000 $((14,542))

7,271

$65,000
Class N Up to $9,000,000 $((15,818))

7,909

$70,000
Class O Up to $10,000,000 $((17,454))

8,727

$75,000
Class P Up to $11,000,000 $((19,090))

9,545

$80,000
Class Q Up to $12,000,000 $((22,908))

11,454

$85,000
Class R Up to $13,000,000 $((26,180))

13,090

$90,000
Class S Up to $14,000,000 $((29,454))

14,727

$95,000
*See chapter 230-06 WAC, Exceeding license class.

3. Card games


License Description Fee
Class A Nonhouse-banked - fee to play $((641))

321

Class B Limited card games - hearts, rummy, pitch, pinochle, and cribbage - fee to play $((185))

93

Class C Tournament only - no more than thirty consecutive days per tournament $((58))

29

Class D Nonhouse-banked - no fee to play $((58))

29


4. Fund-raising event


License Description Fee
Class A One event - not more than 24 consecutive hours
First time applicant $((380))

190

Previously licensed applicant $((223))

112

Class B One event - not more than 72 consecutive hours
First time applicant $((641))

321

Previously licensed applicant $((393))

197

Class C Additional participant in joint event - not lead organization $((185))

93

Class D Limited fund-raising event - one event - not more than six consecutive hours
First time applicant $((167))

84

Previously licensed applicant $((111))

56

Class E Fund-raising event equipment distributor - rents or leases equipment no more than ten times per year $((253))

127

Class F Fund-raising event equipment distributor - rents or leases equipment more than ten times per year $((641))

321


5. Punch boards/pull-tabs


License Annual Gross Gambling Receipts Fee One Time Variance*
Class A Up to $50,000 $((611))

306

$5,000
Class B Up to $100,000 $((1,090))

545

$5,000
Class C Up to $200,000 $((2,062)) 1,031 $10,000
Class D Up to $300,000 $((2,998)) 1,499 $10,000
Class E Up to $400,000 $((3,874)) 1,937 $10,000
Class F Up to $500,000 $((4,676)) 2,338 $10,000
Class G Up to $600,000 $((5,420)) 2,710 $10,000
Class H Up to $700,000 $((6,100)) 3,050 $10,000
Class I Up to $800,000 $((6,722)) 3,361 $10,000
Class J Up to $1,000,000 $((7,620)) 3,810 $20,000
Class K Up to $1,250,000 $((8,460)) 4,230 $25,000
Class L Up to $1,500,000 $((9,240)) 4,620 $25,000
Class M Up to $1,750,000 $((9,880)) 4,940 $25,000
Class N Up to $2,000,000 $((10,466)) 5,233 $25,000
Class O Up to $2,500,000 $((11,500)) 5,750 $30,000
Class P Up to $3,000,000 $((12,218)) 6,109 $35,000
Class Q Up to $4,000,000 $((14,400)) 7,200 $40,000
Class R Up to $5,000,000 $((16,362)) 8,181 $50,000
Class S Up to $6,000,000 $((18,544)) 9,272 $60,000
Class T Up to $7,000,000 $((20,728)) 10,364 $70,000
Class U Up to $8,000,000 $((22,908)) 11,454 $80,000
Class V Over $8,000,000 $((25,090)) 12,545 $80,000
*See chapter 230-06 WAC, Exceeding license class.

6. Raffles


License Annual Gross Gambling Receipts Fee
Class A Up to $5,000 $((58))

29

Class B Up to $10,000 $((185))

93

Class C Up to $25,000 $((380))

190

Class D Up to $50,000 $((641))

321

Class E Up to $75,000 $((1,026))

513

Class F Over $75,000 $((1,540))

770


7. Combination license


License Description Fee
Class A Allows gross gambling receipts of up to $25,000 from bingo, $7,500 from raffles, and $7,500 from amusement games, not to exceed $30,000 combined gross gambling receipts from all such activities. Allows Class D card games. $((115))

58

Class B Allows gross gambling receipts of up to $60,000 from bingo, $15,000 from raffles, and $15,000 from amusement games, not to exceed $75,000 combined gross gambling receipts from all such activities. Allows Class D card games. $((300))

150

Class C Allows gross gambling receipts of up to $125,000 from bingo, $30,000 from raffles, and $30,000 from amusement games, not to exceed $150,000 combined gross gambling receipts from all such activities. Allows Class D card games. $((696))

348


8. Special property bingo


Once annually $((27))

14


9. Permits


Recreational gaming activity $((58))

29


10. Changes


Type Fee
Name $((27))

14

Location $((27))

14

Fund-raising event date or time $((27))

14

License class $((27))

14

Duplicate license $((27))

14


11. Other fees


Type Fee
Replacement identification stamps $((27))

14

Failing to apply for license class upgrade Up to fifty percent of the difference between our fees for the licensee's present license class and the new license class or one thousand dollars, whichever is less, plus $((26)) 13
Review, inspection and/or evaluation of equipment, paraphernalia, services, or schemes Deposit and fees as required

12. Two part payment plan participation charitable or nonprofit organizations


Annual participation $((27))

14

[Statutory Authority: RCW 9.46.070. 07-23-083 (Order 621), 230-05-020, filed 11/20/07, effective 1/1/08; 07-03-082 (Order 606), 230-05-020, filed 1/18/07, effective 1/1/08; 06-07-157 (Order 457), 230-05-020, filed 3/22/06, effective 1/1/08.]

OTS-4133.1


AMENDATORY SECTION(Amending Order 657, filed 8/14/09, effective 1/1/10)

WAC 230-05-030   Fees for other businesses.   All other business license applicants must pay the following fees to us when applying for gambling licenses, miscellaneous changes, or inspection services:


1. Commercial amusement games


License Annual Gross Gambling Receipts Fee
Class A Premises only *$327/$150
Class B Up to $50,000 $460
Class C Up to $100,000 $1,184
Class D Up to $250,000 $2,644
Class E Up to $500,000 $4,640
Class F Up to $1,000,000 $7,968
Class G Over $1,000,000 $9,970
*We reduce the license fee by $177 when you apply for additional licenses at the same business premises, apply for multiple licenses at the same business premises, or a licensee is renewing an annual license.

2. Distributor


License Annual Gross Sales Fee
Class A Nonpunch board/pull-tab only $659
Class B Up to $250,000 $1,318
Class C Up to $500,000 $1,980
Class D Up to $1,000,000 $2,644
Class E Up to $2,500,000 $3,446
Class F Over $2,500,000 $4,242

3. Fund-raising event equipment distributor


License Description Fee
Class A Rents or leases equipment for fund-raising event or recreational gaming activity up to 10 times per year. $260
Class B Rents or leases equipment for fund-raising event or recreational gaming activity more than 10 times per year. $659

4. Gambling service supplier


License Fee
Annual $687
Financing, consulting, and management contract review $143

5. Linked bingo prize provider


License Fee
Annual $((4,414))

2,207


6. Manufacturer


License Annual Gross Sales Fee
Class A Pull-tab dispensing devices only $659
Class B Up to $250,000 $1,318
Class C Up to $500,000 $1,980
Class D Up to $1,000,000 $2,644
Class E Up to $2,500,000 $3,446
Class F Over $2,500,000 $4,242

7. Permits


Type Description Fee
Agricultural fair One location and event only $27
Agricultural fair annual permit Annual permit for specified different events and locations $189
Recreational gaming activity $59
Manufacturer's special sales permit $211
Punch board and pull-tab service business permit Initial application fee $236
Punch board and pull-tab service business permit Renewal $56

8. Changes


Application Description Fee
Name $27
Location $27
Business classification Same owners $59
Exceeding license class New class fee, less previous fee paid, plus $27
Duplicate license $27
Corporate stock/limited liability company shares/units $59
License transfers $59

9. Other fees


Type Fee
Defective punch board/pull-tab cost recovery fees Up to $100
Failing to apply for license class upgrade Up to fifty percent of the difference between our fees for the licensee's present license class and the new license class or one thousand dollars, whichever is less, plus $27
Review of gambling equipment, supplies, services, or games Cost reimbursement

10. Identification stamps for commercial operators


Type Fee
(a) Punch boards and pull-tabs
(i) Standard Wagers fifty cents and below $.28
Wagers over fifty cents $1.11
(ii) Progressive jackpot pull-tab series Per series $11.19
(iii) Pull-tab series with carry-over jackpots and cumulative prize pool pull-tab series Per series $1.11
(b) Pull-tab dispensing devices
(i) Mechanical and electro-mechanical $.28
(ii) Electronic Dispensing devices that require initial and ongoing evaluation of electronic components or functions, such as reading encoded data on pull-tabs, accounting for income or prizes $112.04

annually

Replacement of identification stamps $26
(((c) Disposable bingo cards
(i) Single game sets of individual cards or sheets of cards $.28
(ii) Multigame card packets $1.22
(iii) Cards used to play for linked bingo prizes Fee per 250 cards $.44
(iv) Cards used to play for linked bingo prizes Fee per 5,000 cards $8.96
(d))) (c) Coin or token-activated amusement games
Annually - operated at any Class A amusement game license location $((28.00))

28

(((e) Electronic bingo card daubers
Annual $11.19
(f))) (d) Electronic card facsimile table
Annual $381.50

11. Identification stamps charitable/nonprofit operators


Type Fee
(a) Punch boards and pull-tabs
(i) Standard Wagers fifty cents and below $.14
Wagers over fifty cents $.56
(ii) Progressive jackpot pull-tab series Per series $5.60
(iii) Pull-tab series with carry-over jackpots and cumulative prize pool pull-tab series Per series $.56
(b) Pull-tab dispensing devices
(i) Mechanical and electro-mechanical $.14
(ii) Electronic Dispensing devices that require initial and ongoing evaluation of electronic components or functions, such as reading encoded data on pull-tabs, accounting for income or prizes $56.02

annually

Replacement of identification stamps $13
(c) Disposable bingo cards
(i) Single game sets of individual cards or sheets of cards $.14
(ii) Multigame card packets $.61
(iii) Cards used to play for linked bingo prizes Fee per 250 cards $.22
(iv) Cards used to play for linked bingo prizes Fee per 5,000 cards $4.48
(d) Coin or token-activated amusement games
Annually - operated at any Class A amusement game license location $14
(e) Electronic bingo card daubers
Annual $11.19

12. Two-part payment plan participation for commercial operators


Annual participation $27

[Statutory Authority: RCW 9.46.070. 09-17-077 (Order 657), 230-05-030, filed 8/14/09, effective 1/1/10; 07-23-083 (Order 621), 230-05-030, filed 11/20/07, effective 1/1/08; 07-03-082 (Order 606), 230-05-030, filed 1/18/07, effective 1/1/08; 06-07-157 (Order 457), 230-05-030, filed 3/22/06, effective 1/1/08.]

Washington State Code Reviser's Office