BP BHEAD INT H

AN ACT Relating to video lottery terminals; adding a new section to chapter 9.46 RCW; and creating a new section.

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

NEW SECTION. Sec. 1. This act is intended to provide: Equality for all citizens of the state of Washington who provide gaming activities for social and recreational enjoyment; significant funding for common school construction; for the development of sports facilities throughout the state of Washington; assistance for counties and cities to provide for local law enforcement; help for individuals that may need assistance in controlling their desire to participate in gaming activities.

NEW SECTION. Sec. 2. A new section is added to chapter 9.46 RCW to read as follows:

(1) Video lottery terminals are authorized pursuant to approval by each county and city legislative body as provided for in this section.

(a) Until July 1, 1998, licenses may be issued only for locations with a license for on the premises consumption of alcoholic beverages that were also licensed for social card games or pull-tabs by the gambling commission under this chapter. After June 30, 1998, a license may be issued under this section for locations with a license for on the premises consumption of alcoholic beverages.

(b) Only bona fide charitable or nonprofit organizations as defined in RCW 9.46.0209 that hold a gambling license as of January 1, 1996, will be allowed ten video lottery terminals on premises.

(c) Beginning July 1, 1998, organizations qualified under (b) of this subsection will be allowed up to twenty video lottery terminals on premises.

(d) Except as provided in (f) of this subsection, until July 1, 1998, there may be up to five video lottery terminals on premises.

(e) Except as provided in (f) of this subsection, beginning July 1, 1998, there may be up to ten video lottery terminals on premises.

(f) A licensed card room may have one video lottery terminal for each card table in addition to those permitted under (d) and (e) of this subsection.

(2) At least eighty percent of the amount wagered shall be returned to the player from each video lottery terminal licensed under this section.

(3)(a) Licensees shall receive fifty percent of the net win from each video lottery terminal as provided for in subsection (14) of this section through December 1, 2000.

(b) The gambling commission shall contract for an outside review of the cost of operation of video lottery terminals and the division of video proceeds between total compensation paid to licensees and moneys available to the state for allocation. This report shall examine the costs and rates of return on video lottery terminals and of the provision of space and services for the operation of such terminals. The analysis shall be completed and submitted to the gambling commission by December 1, 2000.

(4) The remaining fifty percent of the net win from each video lottery terminal as provided for in subsection (14) of this section through December 1, 2000, shall be distributed by the Washington state gambling commission as follows:

(a) Sixty percent to the common school construction fund in RCW 28A.515.300;

(b) Until July 31, 2006, thirty-five percent shall be allocated to counties based on the number of registered voters as of March 1st of each year as follows: Nine hundred thousand or more registered voters, forty-six percent; two hundred thousand or more registered voters, twenty-seven percent of the thirty-five percent; twenty-seven percent of the thirty-five percent to the remaining counties; the proceeds will be distributed by each county legislative authority for construction and maintenance of sports facilities, the proceeds from that percentage shall revert to the common school construction fund in RCW 28A.515.300 on July 31, 2006;

(c) Two percent of the fifty percent shall be allocated to counties that authorize video lottery terminals. Distribution of the funds shall be based on the number of registered voters in the county as of March 1st of each year;

(d) Two percent of the fifty percent shall be allocated to cities that authorize video lottery terminals. Distribution of the funds shall be based on the number of registered voters in the city as of March 1st of each year;

(e) One percent of the fifty percent to the Washington state gambling commission for problem gambling.

(5) Licensees may purchase or lease video lottery terminals only from sources authorized to operate in the state by the Washington state gambling commission.

(6) License fees under this section are five hundred dollars per terminal per year.

(7) Licensees must be residents of the state of Washington.

(8) Ninety-five percent of the ownership of the individual proprietor, partnership, or corporation owning the establishment must be Washington state residents, approved by the gambling commission. Owners of establishments licensed on the effective date of this section shall be grandfathered in.

(9) Ninety-five percent of the ownership of the individual proprietor, partnership, or corporation owning the commercial route operation must be Washington state residents, approved by the gambling commission. Those licensed on the effective date of this section shall be grandfathered in.

(10) Ninety-five percent of the ownership of the individual proprietor, partnership, or corporation owning the distributorship must be Washington state residents, approved by the gambling commission. Those licensed on the effective date of this section shall be grandfathered in.

(11) There is a two-year state residency requirement for distributors, commercial route operators, and establishments. Those licensed on the effective date of this section shall be grandfathered in.

(12) Only certified state authorized technicians may service the video lottery terminals.

(13) A manufacturer of video lottery terminals may not be licensed as a video lottery terminal commercial operator or distributor or own, manage, or control a licensed establishment.

(14) As used in this section, "net win" means the amount played minus the amount paid to the player.

(15) As used in this section, "sports facilities" means baseball, football, basketball, horse racing, hockey, and play field facilities.

(16) As used in this section "video lottery terminals" means video reproductions of authorized card games that use a fifty-two card or standard poker card deck that meet all of the requirements and standards as set forth by the gambling commission and that have been specifically licensed and approved for use within this state by the gambling commission.

(17) The gambling commission shall adopt rules to administer and enforce this section.