WSR 12-05-067

PERMANENT RULES

GAMBLING COMMISSION


[ Order 677 -- Filed February 15, 2012, 3:59 p.m. , effective March 17, 2012 ]


Effective Date of Rule: Thirty-one days after filing.

Purpose: At their November 2011 meeting, the gambling commission filed a petition from the public requesting a rule change to no longer require raffle licensees to receive approval from the commissioners before offering raffle prizes in excess of $80,000 during a license year. Based on discussions at that meeting, at the January 2012 meeting, staff proposed an amendment to increase the yearly prize limit from $80,000 to $300,000 and continue to require commission approval to exceed the yearly prize limit. Staff's amendment also included a list of items licensees must submit with their plan to exceed the $300,000 yearly prize limit. At their February 2012 meeting, the commissioners voted to adopt staff's amendments and increase the yearly raffle prize limit from $80,000 to $300,000 for when commission approval is needed.

Reasons Supporting Proposal: See above.

Citation of Existing Rules Affected by this Order: Amending WAC 230-11-065 and 230-11-067.

Statutory Authority for Adoption: RCW 9.46.070 and 9.46.0277.

Adopted under notice filed as WSR 11-23-161 [11-23-172] filed on November 22, 2011.

Changes Other than Editing from Proposed to Adopted Version: Based on discussion at the November 2011 commission meeting, staff proposed an amendment to increase the yearly prize limit from $80,000 to $300,000 and continue to require commission approval to exceed the yearly prize limit. Staff's amendment also includes a list of items licensees must submit with their plan to exceed the $300,000 yearly raffle prize limit.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 2, Repealed 0.

Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 0, Repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.

Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 2, Repealed 0.

Date Adopted: February 15, 2012.

Susan Arland

Rules Coordinator

OTS-4417.3


AMENDATORY SECTION(Amending Order 668, filed 5/17/10, effective 7/1/10)

WAC 230-11-065   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,)) or three hundred thousand dollars in total raffle prizes in a license year, except as authorized in WAC 230-11-067.

[Statutory Authority: RCW 9.46.070. 10-11-086 (Order 668), 230-11-065, filed 5/17/10, effective 7/1/10; 06-20-040 (Order 602), 230-11-065, filed 9/26/06, effective 1/1/08.]


AMENDATORY SECTION(Amending Order 668, filed 5/17/10, effective 7/1/10)

WAC 230-11-067   Requesting commission approval prior to ((offer)) offering raffle prizes exceeding forty thousand dollars per prize or ((eighty)) three hundred thousand dollars ((annually)) in a license year.   (1) The commissioners may vote to approve a licensee to exceed raffle prize limits ((on specific occasions)) if a licensee shows good cause in writing.

(2) Prior to offering raffle prizes that exceed forty thousand dollars per prize, the licensee must submit a raffle plan to us that includes at least the following information:

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

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

(((3))) (c) Specific details of the raffle rules including:

(((a))) (i) Date of the drawing; and

(((b))) (ii) Cost of raffle tickets; and

(((c))) (iii) Prizes available; and

(((d))) (iv) Security of prizes; and

(((e))) (v) Plans for selling raffle tickets; and

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

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

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

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

(((7))) (g) A projected budget including:

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

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

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

(((d))) (iv) Minimum and maximum prizes available; and

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

(3) Prior to offering raffle prizes that exceed three hundred thousand dollars in a license year, the licensee must submit a raffle plan that includes:

(a) The organization's goals for conducting raffles; and

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

(c) Plans for selling raffle tickets; and

(d) Brief overview of prizes awarded; and

(e) Estimated gross gambling receipts, expenses, and net income for the raffles; and

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

[Statutory Authority: RCW 9.46.070. 10-11-086 (Order 668), 230-11-067, filed 5/17/10, effective 7/1/10.]

Washington State Code Reviser's Office