HORSE RACING COMMISSION

[Filed September 11, 2020, 11:37 a.m., effective October 12, 2020]

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

Purpose: To increase the commission's share of source market fees from 7.5% to 10.0% to stabilize the operating account due to the current health crisis in the state and inability to allow spectators for live racing.

Citation of Rules Affected by this Order: Amending WAC 260-49-070.

Statutory Authority for Adoption: RCW 67.16.020.

Adopted under notice filed as WSR 20-16-014 on July 23, 2020.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

Number of Sections Adopted at the Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

Number of Sections Adopted on the Agency's own Initiative: New 0, Amended 1, Repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 1, Repealed 0.

Number of Sections Adopted using Negotiated Rule Making: New 0, Amended 1, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.

Date Adopted: September 11, 2020.

AMENDATORY SECTION(Amending WSR 11-17-056, filed 8/15/11, effective 9/15/11)

WAC 260-49-070Distribution of source market fee.

(1) A source market fee shall be paid monthly, unless otherwise directed by the commission, for the source market fee area on all accounts that have Washington as the principal residence address.

(2) The authorized advance deposit wagering service provider shall, at least monthly, unless otherwise directed by the commission, distribute the total source market fee as follows:

(a) Ninety percent of the total source market fee directly to the class 1 racing association and the remaining ten percent directly to the commission.

(b) The class 1 racing association shall ((distribute))submit monthly two and one-half percent of the total source market fee to the commission to be deposited into the Washington bred owners' bonus fund ((and)).

(c) The class 1 racing association shall distribute two and one-half percent of the total source market fee to the Washington bred breeder award account as provided in RCW 67.16.175.

(((c)))(d) The class 1 racing association and the recognized horsemen's organization shall negotiate a separate agreement for contributions to the purse account from the source market fee and submit the agreement for review and approval by the commission. The class 1 racing association shall distribute the horsemen's share of the source market fee in accordance with the horseman's agreement.

(((d) The commission shall distribute two and one-half percent of the total source market fee to the Washington bred owners' bonus fund and breeder award account and seven and one-half percent of the total source market fee to the commission's operating account.))

(3) The commission shall annually review the distribution of the source market fee. Any changes to the distribution shall be adopted by rule.