AN
ACT Relating to gambling; and amending RCW 9.46.0209, 9.46.0205, 9.46.120, and
9.46.110.
BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
9.46.0209 and 1987 c 4 s 4 are each amended to read as follows:
"Bona
fide charitable or nonprofit organization," as used in this chapter,
means: (1) Any organization duly existing under the provisions of chapters
24.12, 24.20, or 24.28 RCW, any agricultural fair authorized under the
provisions of chapters 15.76 or 36.37 RCW, or any nonprofit corporation duly
existing under the provisions of chapter 24.03 RCW for charitable, benevolent,
eleemosynary, educational, civic, patriotic, political, social, fraternal,
athletic or agricultural purposes only, or any nonprofit organization, whether
incorporated or otherwise, when found by the commission to be organized and
operating for one or more of the aforesaid purposes only, all of which in the
opinion of the commission have been organized and are operated primarily for
purposes other than the operation of gambling activities authorized under this
chapter; or (2) any corporation which has been incorporated under Title 36
U.S.C. and whose principal purposes are to furnish volunteer aid to members of
the armed forces of the United States and also to carry on a system of national
and international relief and to apply the same in mitigating the sufferings
caused by pestilence, famine, fire, floods, and other national calamities and
to devise and carry on measures for preventing the same. Such an organization
must have been organized and continuously operating for at least twelve
calendar months immediately preceding making application for any license to
operate a gambling activity, or the operation of any gambling activity
authorized by this chapter for which no license is required. It must have not
less than ((fifteen)) seven bona fide active members each with
the right to an equal vote in the election of the officers, or board members,
if any, who determine the policies of the organization in order to receive a
gambling license. An organization must demonstrate to the commission that it
has made significant progress toward the accomplishment of the purposes of the
organization during the twelve consecutive month period preceding the date of
application for a license or license renewal. The fact that contributions to
an organization do not qualify for charitable contribution deduction purposes
or that the organization is not otherwise exempt from payment of federal income
taxes pursuant to the internal revenue code of 1954, as amended, shall
constitute prima facie evidence that the organization is not a bona fide
charitable or nonprofit organization for the purposes of this section.
Any
person, association or organization which pays its employees, including
members, compensation other than is reasonable therefor under the local
prevailing wage scale shall be deemed paying compensation based in part or
whole upon receipts relating to gambling activities authorized under this
chapter and shall not be a bona fide charitable or nonprofit organization for
the purposes of this chapter.
Sec.
2. RCW
9.46.0205 and 1987 c 4 s 3 are each amended to read as follows:
(1)
"Bingo," as used in this chapter, means a game ((conducted only in
the county within which the organization is principally located)) in which
prizes are awarded on the basis of designated numbers or symbols on a card
conforming to numbers or symbols selected at random and in which no cards are
sold except at the time and place of ((said)) the game, ((when
said)) except as authorized by the commission for joint bingo games.
(2)
The game ((is)) shall be conducted only by:
(a)
A bona fide charitable or nonprofit organization which does not conduct or
allow its premises to be used for conducting bingo on more than three occasions
per week and which does not conduct bingo in any location which is used for
conducting bingo on more than three occasions per week((,)); or
((if))
(b)
An agricultural fair authorized under chapters 15.76 and 36.37 RCW, which
does not conduct bingo on more than twelve consecutive days in any calendar
year((, and)).
(3)
Except in the case of any agricultural fair as authorized under chapters
15.76 and 36.37 RCW, no person other than a bona fide member or an employee of
((said)) the organization ((takes)) may take any
part in the management or operation of ((said)) the game unless
approved by the commission, and no person who takes any part in the
management or operation of ((said)) the game ((takes)) may
take any part in the management or operation of any game conducted by any
other organization or any other branch of the same organization((,))
unless approved by the commission((, and)).
(4)
No part of the proceeds ((thereof)) from a bingo game may
inure to the benefit of any person other than the organization conducting ((said))
the game.
(5)
A bingo game must be conducted only in the county where the sponsoring
organization is principally located, except as authorized by the commission for
joint bingo games. For the purposes of this section, the organization
shall be deemed to be principally located in the county within which it has its
primary business office. If the organization has no business office, the
organization shall be deemed to be located in the county of principal residence
of its chief executive officer((: PROVIDED, That)). Any
organization which is conducting any licensed and established bingo game in any
locale as of January 1, 1981, shall be exempt from the requirement that such
game be conducted in the county in which the organization is principally
located.
(6)
The commission may authorize joint bingo games conducted by two or more bona
fide charitable or nonprofit organizations if the prizes are pooled and the
games are conducted during each organization's normal period of operation. The
commission may adopt rules for the operation, management, and location of the
games.
Sec.
3. RCW
9.46.120 and 1987 c 4 s 40 are each amended to read as follows:
(1)
Except in the case of an agricultural fair as authorized under chapters 15.76
and 36.37 RCW, no person other than a member of a bona fide charitable or nonprofit
organization (and their employees) or any other person, association or
organization (and their employees) approved by the commission, shall take any
part in the management or operation of any gambling activity authorized under
this chapter((, and)) unless approved by the commission. No
person who takes any part in the management or operation of any such gambling
activity shall take any part in the management or operation of any gambling
activity conducted by any other organization or any other branch of the same
organization((,)) unless approved by the commission((, and)).
No part of the proceeds ((thereof)) of the activity shall
inure to the benefit of any person other than the organization conducting such
gambling activities or if such gambling activities be for the charitable
benefit of any specific persons designated in the application for a license,
then only for such specific persons as so designated.
(2)
No bona fide charitable or nonprofit organization or any other person,
association or organization shall conduct any gambling activity authorized
under this chapter in any leased premises if rental for such premises is
unreasonable or to be paid, wholly or partly, on the basis of a percentage of
the receipts or profits derived from such gambling activity.
Sec.
4. RCW
9.46.110 and 1994 c 301 s 2 are each amended to read as follows:
(1)
The legislative authority of any county, city-county, city, or town, by local
law and ordinance, and in accordance with the provisions of this chapter and
rules ((and regulations promulgated hereunder)) adopted under this
chapter, may provide for the taxing of any gambling activity authorized by
this chapter within its jurisdiction, the tax receipts to go to the county,
city-county, city, or town so taxing the ((same: PROVIDED, That)) activity.
Any such tax imposed by a county alone shall not apply to any gambling
activity within a city or town located ((therein)) in the county
but the tax rate established by a county, if any, shall constitute the tax rate
throughout the unincorporated areas of such county((: PROVIDED FURTHER,
That (1) punch boards and pull-tabs, chances on which shall)).
(2)
The operation of punch boards and pull-tabs are subject to the following
conditions:
(a)
Chances may only be sold to adults((, which shall have a fifty cent
limit on a single chance thereon, shall be taxed on a basis which shall reflect
only the gross receipts from such punch boards and pull-tabs; and (2)));
(b)
The price of a single chance may not exceed one dollar;
(c)
No punch board or pull-tab license may award as a prize upon a
winning number or symbol being drawn the opportunity of taking a chance upon
any other punch board or pull-tab; ((and (3)))
(d)
All prizes ((for punch boards and pull-tabs)) available to be won
must be described on an information flare. All merchandise prizes must be
on display within the immediate area of the premises ((wherein)) in
which any such punch board or pull-tab is located ((and)). Upon
a winning number or symbol being drawn, ((such)) a merchandise
prize must be immediately removed ((therefrom)) from the display and
awarded to the winner. All references to cash or merchandise prizes, with a
value over twenty dollars, must be removed immediately from the information
flare when won, or such omission shall be deemed a fraud for the purposes
of this chapter; and (((4)))
(e)
When any person ((shall win over twenty dollars in)) wins
money or merchandise from any punch board or pull-tab over an amount
determined by the commission, every licensee ((hereunder)) shall
keep a public record ((thereof)) of the award for at least ninety
days ((thereafter)) containing such information as the commission shall
deem necessary((: AND PROVIDED FURTHER, That)).
(3)(a)
Taxation of bingo and raffles shall never be in an amount greater than ten
percent of the gross ((revenue received therefrom)) receipts from a
bingo game or raffle less the amount ((paid for or)) awarded
as cash or merchandise prizes.
(b)
Taxation of amusement games shall only be in an amount sufficient to pay the
actual costs of enforcement of the provisions of this chapter by the county,
city or town law enforcement agency and in no event shall such taxation exceed
two percent of the gross ((revenue therefrom)) receipts from the
amusement game less the amount ((paid for)) awarded as
prizes((: PROVIDED FURTHER, That)).
(c)
No tax shall be imposed under the authority of this chapter on bingo or
amusement games when such activities or any combination thereof are conducted
by any bona fide charitable or nonprofit organization as defined in this
chapter, which organization has no paid operating or management personnel and
has gross ((income)) receipts from bingo or amusement games, or a
combination thereof, not exceeding five thousand dollars per year, less the
amount ((paid for)) awarded as cash or merchandise prizes.
(d)
No tax shall be imposed on the first ten thousand dollars of ((net proceeds))
gross receipts less the amount awarded as cash or merchandise prizes
from raffles conducted by any bona fide charitable or nonprofit organization as
defined in this chapter.
(e)
Taxation of punch boards and pull-tabs for bona fide charitable or nonprofit
organizations is based on gross receipts from the operation of the games less
the amount awarded as cash or merchandise prizes, and shall not exceed ((five))
a rate of ten percent ((of gross receipts, nor shall)). At
the option of the county, city-county, city, or town, the taxation of punch
boards and pull-tabs for commercial stimulant operators may be based on gross
receipts from the operation of the games, and may not exceed a rate of five
percent, or may be based on gross receipts from the operation of the games less
the amount awarded as cash or merchandise prizes, and may not exceed a rate of
ten percent.
(f)
Taxation of social card games may not exceed twenty percent of the
gross revenue from such games.
(4) Taxes imposed under this chapter become a lien upon
personal and real property used in the gambling activity in the same manner as
provided for under RCW 84.60.010. The lien shall attach on the date the tax
becomes due and shall relate back and have priority against real and personal
property to the same extent as ad valorem taxes.
