SENATE BILL REPORT

                  SHB 1364

              As Reported By Senate Committee On:

                Commerce & Labor, April 1, 1997

Title:  An act relating to the seizure and forfeiture of gambling‑related property.

Brief Description:  Updating provisions about the seizure and forfeiture of gambling‑related property.

Sponsors:  House Committee on Commerce & Labor (originally sponsored by Representatives K. Schmidt, Delvin, Mitchell and Wensman; by request of Gambling Commission).

Brief History:

Committee Activity:  Commerce & Labor:  3/27/97, 4/1/97 [DP].

SENATE COMMITTEE ON COMMERCE & LABOR

Majority Report:  Do pass.

  Signed by Senators Schow, Chair; Horn, Vice Chair; Anderson, Franklin, Fraser, Heavey and Newhouse.

Staff:  Traci Ratzliff (786-7452)

Background:  Real and personal property that is involved in a violation of state gambling laws is subject to seizure by law enforcement officers.  Once property is seized, law enforcement notifies the owner and the owner may seek recovery of the property.  Property subject to seizure includes:

-gambling devices, such as slot machines or video lottery terminals;

-furniture, fixtures, and equipment;

-vehicles including aircraft;

-books and records;

-money, negotiable instruments;

-other personal property acquired with proceeds of professional gambling; and

-real property.

If certain seized property is not claimed by the owner within a specified time period, it is forfeited.  This property includes vehicles, money and negotiable instruments, personal property acquired with proceeds of professional gambling activity, and real property.  Any security interest that is held by innocent parties in property subject to seizure is protected.

A person claiming property that has been seized, other than gambling devices, may assert their ownership interest at an administrative hearing before the agency seizing the property or before a court.  The law enforcement agency must return property that is shown to belong to the owner claiming it.

The Gambling Commission must file an annual report with the State Treasurer on property that is forfeited.

Only gambling devices or equipment authorized for use by the commission can be lawfully owned or possessed in Washington.  There is no authority for a person to own or possess a slot machine unless it is an antique slot machine not used for any gambling purpose.

The commission and members of the commission are protected from personal liability for their actions and actions of commission employees while acting within the scope of their authority.

Summary of Bill:  Any property subject to seizure in connection with a violation of gambling laws may be forfeited without further hearing if, after notice is given to the owner, the owner fails to claim the property in the time required.

If the owner of a gambling device claims ownership of the machine that has been seized, he or she must be afforded a hearing on the claim of ownership.  At the hearing, the only issues to be decided are whether the device is a gambling device and whether it is an antique device.

The Gambling Commission is no longer required to submit an annual report on forfeited property to the State Treasurer.

State and local law enforcement officers and any special agents of the commission are protected from liability when lawfully performing their duties relating to the seizure and forfeiture of property under the gambling law.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  This bill corrects a technical error that was made in the gambling asset seizure and forfeiture laws that were modified in 1994.  The 1994 act left out a statutory requirement that owners of seized gambling devices be allowed a hearing regarding the seizure and forfeiture of such devices.  This bill inserts this statutory requirement for a hearing.

Testimony Against:  None.

Testified:  PRO:  Carrie Tellefson, State Gambling Commission; Donna Lawrence and Gayleen Cox, Office of State Treasurer.