H-1840.2          _______________________________________________

 

                                  HOUSE BILL 2121

                  _______________________________________________

 

State of Washington              52nd Legislature             1991 Regular Session

 

By Representatives Wang, Schmidt, Vance, Winsley, Moyer, Bowman, Betrozoff, Casada, D. Sommers, P. Johnson, Tate and Silver.

 

Read first time February 26, 1991.  Referred to Committee on Commerce & Labor.Modifying provisions for prohibited gambling and lottery activities.


     AN ACT Relating to gambling; amending RCW 9.46.010, 9.46.0311, 9.46.0351, and 67.70.040; repealing RCW 9.46.0233; and declaring an emergency.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

 

     Sec. 1.  RCW 9.46.010 and 1975 1st ex.s. c 259 s 1 are each amended to read as follows:

     It is hereby declared to be the policy of the legislature, recognizing the close relationship between professional gambling and organized crime, to restrain all persons from seeking profit from professional gambling activities in this state; to restrain all persons from patronizing such professional gambling activities; to safeguard the public against the evils induced by common gamblers and common gambling houses engaged in professional gambling; and at the same time, both to preserve the freedom of the press and to avoid restricting participation by individuals in activities and social pastimes, which activities and social pastimes are more for amusement rather than for profit, do not maliciously affect the public, and do not breach the peace.

     The legislature finds that P.L. 100-497 states that Indian tribes have the exclusive right to regulate gambling activity if the gambling activity is not specifically prohibited by federal law and is conducted within a state that does not, as a matter of criminal law and public policy, prohibit such gambling activity.  The legislature further declares that the raising of funds for the promotion of bona fide charitable or nonprofit organizations is in the public interest ((as is)) when limited to participation in such activities and social pastimes as are hereinafter in this chapter authorized.  However, fundraising events involving contests of chance such as roulette, craps, and blackjack or other card games in which the dealer does not rotate among the players, as authorized prior to the effective date of this act, could mistakenly be interpreted as indicative of a state policy authorizing some form of casino-style gambling.  While the legislature expressly recognizes the authority of Indian tribes to regulate gambling activities on Indian lands under P.L. 100-497, and further recognizes the potential importance of gambling in promoting tribal economic development as a goal of federal Indian policy, the legislature declares that casino-style gambling is contrary to the public policy of the state, whether conducted occasionally or regularly.

     The legislature further declares that only the conducting of bingo, raffles, and amusement games and the operation of punch boards, pull-tabs, card games and other social pastimes, when conducted pursuant to the provisions of this chapter and any rules and regulations adopted pursuant thereto, are hereby authorized, as are only such lotteries for which no valuable consideration has been paid or agreed to be paid as hereinafter in this chapter provided.

     The legislature further declares that fishing derbies shall not constitute any form of gambling and shall not be considered as a lottery, a raffle, or an amusement game and shall not be subject to the provisions of this chapter or any rules and regulations adopted hereunder.

     All factors incident to the activities authorized in this chapter shall be closely controlled, and the provisions of this chapter shall be liberally construed to achieve such end.

 

     Sec. 2.  RCW 9.46.0311 and 1987 c 4 s 26 are each amended to read as follows:

     The legislature hereby authorizes bona fide charitable or nonprofit organizations to conduct bingo games, raffles, and amusement games, ((and fund raising events,)) and to utilize punch boards and pull-tabs and to allow their premises and facilities to be used by only members, their guests, and members of a chapter or unit organized under the same state, regional, or national charter or constitution, to play social card games authorized by the commission, when licensed, conducted or operated pursuant to the provisions of this chapter and rules and regulations adopted pursuant thereto.

 

     Sec. 3.  RCW 9.46.0351 and 1987 c 4 s 34 are each amended to read as follows:

     (1) The legislature hereby authorizes any bona fide charitable or nonprofit organization which is licensed pursuant to RCW 66.24.400, and its officers and employees, to allow the use of the premises, furnishings, and other facilities not gambling devices of such organization by members of the organization, and members of a chapter or unit organized under the same state, regional, or national charter or constitution, who engage as players only in ((the following types of gambling activities only:

     (a))) social card games as defined in RCW 9.46.0281 (1) through (4)((; and

     (b) Social dice games, which shall be limited to contests of chance, the outcome of which are determined by one or more rolls of dice)).

     (2) Bona fide charitable or nonprofit organizations shall not be required to be licensed by the commission in order to allow use of their premises in accordance with this section.  However, the following conditions must be met:

     (a) No organization, corporation, or person shall collect or obtain or charge any percentage of or shall collect or obtain any portion of the money or thing of value wagered or won by any of the players:  PROVIDED, That a player may collect his or her winnings; and

     (b) No organization, corporation, or person shall collect or obtain any money or thing of value from, or charge or impose any fee upon, any person which either enables him or her to play or results in or from his or her playing:  PROVIDED, That this subsection shall not preclude collection of a membership fee which is unrelated to participation in gambling activities authorized under this section.

 

     Sec. 4.  RCW 67.70.040 and 1988 c 289 s 801 are each amended to read as follows:

     The commission shall have the power, and it shall be its duty:

     (1) To promulgate such rules governing the establishment and operation of a state lottery as it deems necessary and desirable in order that such a lottery be initiated at the earliest feasible and practicable time, and in order that such lottery produce the maximum amount of net revenues for the state consonant with the dignity of the state and the general welfare of the people.  Such rules shall include, but shall not be limited to, the following:

     (a) The type of lottery to be conducted which may include the selling of tickets or shares((, or)).  The use of electronic or mechanical devices or video terminals which ((do not require a printed ticket:  PROVIDED, That)) allow for individual play against such devices or terminals shall be prohibited.  Approval of the legislature shall be required before entering any agreement with other state lotteries to conduct shared games;

     (b) The price, or prices, of tickets or shares in the lottery;

     (c) The numbers and sizes of the prizes on the winning tickets or shares;

     (d) The manner of selecting the winning tickets or shares;

     (e) The manner and time of payment of prizes to the holder of winning tickets or shares which, at the director's option, may be paid in lump sum amounts or installments over a period of years;

     (f) The frequency of the drawings or selections of winning tickets or shares, without limitation;

     (g) Without limit as to number, the type or types of locations at which tickets or shares may be sold;

     (h) The method to be used in selling tickets or shares((, which may include the use of electronic or mechanical devices and video terminals));

     (i) The licensing of agents to sell or distribute tickets or shares, except that a person under the age of eighteen shall not be licensed as an agent;

     (j) The manner and amount of compensation, if any, to be paid licensed sales agents necessary to provide for the adequate availability of tickets or shares to prospective buyers and for the convenience of the public;

     (k) The apportionment of the total revenues accruing from the sale of lottery tickets or shares and from all other sources among:  (i) The payment of prizes to the holders of winning tickets or shares, which shall not be less than forty-five percent of the gross annual revenue from such lottery, less amounts of unclaimed prizes deposited in the general fund under RCW 67.70.190 during the fiscal year ending June 30, 1989, (ii) transfers to the lottery administrative account created by RCW 67.70.260, and (iii) transfer to the state's general fund.  Transfers to the state general fund shall be made in compliance with RCW 43.01.050;

     (l) Such other matters necessary or desirable for the efficient and economical operation and administration of the lottery and for the convenience of the purchasers of tickets or shares and the holders of winning tickets or shares.

     (2) To ensure that in each place authorized to sell lottery tickets or shares, on the back of the ticket or share, and in any advertising or promotion there shall be conspicuously displayed an estimate of the probability of purchasing a winning ticket.

     (3) To amend, repeal, or supplement any such rules from time to time as it deems necessary or desirable.

     (4) To advise and make recommendations to the director for the operation and administration of the lottery.

 

     NEW SECTION.  Sec. 5.      RCW 9.46.0233 and 1987 c 4 s 24 are each repealed.

 

     NEW SECTION.  Sec. 6.      This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.