CERTIFICATION OF ENROLLMENT

 

                        SENATE BILL 5034

 

 

 

 

                        55th Legislature

                      1997 Regular Session

Passed by the Senate April 27, 1997

  YEAS 34   NAYS 14

 

 

 

President of the Senate

 

Passed by the House April 27, 1997

  YEAS 93   NAYS 5

             CERTIFICATE

 

I, Mike O=Connell, Secretary of the Senate of the State of Washington, do hereby certify that the attached is  SENATE BILL 5034 as passed by the Senate and the House of Representatives on the dates hereon set forth.

 

 

 

Speaker of the

      House of Representatives

                            Secretary

 

 

Approved Place Style On Codes above, and Style Off Codes below.   

                                FILED

          

 

 

Governor of the State of Washington

                   Secretary of State

                  State of Washington


          _______________________________________________

 

                         SENATE BILL 5034

          _______________________________________________

 

              AS RECOMMENDED BY CONFERENCE COMMITTEE

 

             Passed Legislature - 1997 Regular Session

 

State of Washington      55th Legislature     1997 Regular Session

 

By Senator Roach

 

Read first time 01/13/97.  Referred to Committee on Commerce & Labor.

 

 

Changing the definition of "bona fide charitable or nonprofit organization" for gambling statutes.  


    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.

 


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