BILL REQ. #:  H-2375.1 

READ FIRST TIME 03/03/05.   

     AN ACT Relating to restrictions on charitable or nonprofit organizations involved in gambling; and amending RCW 9.46.120.

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

Sec. 1   RCW 9.46.120 and 1997 c 394 s 3 are each amended to read as follows:
     (1)(a) 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 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. However, no bona fide charitable or nonprofit organization (and their members and employees) that takes any part in the management or ownership of any gambling activity authorized by the commission under RCW 9.46.070(1) may take any part in the management or ownership of any commercial gambling activity authorized by the commission under RCW 9.46.070(2). No part of the proceeds 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.
     (b) For the purposes of this subsection, "management" includes those activities engaged in by persons who are the highest ranking managers of the charitable or nonprofit organization or by any other person who exercises substantial control over the daily operations of the charitable or nonprofit organization.
     (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.