BILL REQ. #:  S-2798.1 

     AN ACT Relating to the consolidation of the gambling commission into the department of licensing as the office of gambling regulation; amending RCW 9.46.010, 9.46.0201, 9.46.0205, 9.46.0209, 9.46.0217, 9.46.0221, 9.46.0233, 9.46.0261, 9.46.0273, 9.46.0282, 9.46.0311, 9.46.0315, 9.46.0321, 9.46.0331, 9.46.0335, 9.46.0341, 9.46.0345, 9.46.0351, 9.46.0356, 9.46.0361, 9.46.040, 9.46.060, 9.46.070, 9.46.0701, 9.46.071, 9.46.075, 9.46.077, 9.46.080, 9.46.085, 9.46.090, 9.46.095, 9.46.100, 9.46.110, 9.46.116, 9.46.120, 9.46.130, 9.46.140, 9.46.150, 9.46.153, 9.46.158, 9.46.160, 9.46.170, 9.46.198, 9.46.210, 9.46.215, 9.46.220, 9.46.225, 9.46.231, 9.46.250, 9.46.285, 9.46.293, 9.46.300, 9.46.310, 9.46.350, 9.46.360, 9.46.420, 43.24.016, 43.24.020, 43.24.030, 43.24.086, and 43.24.120; and repealing RCW 9.46.050.

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

Sec. 1   RCW 9.46.010 and 1996 c 101 s 2 are each amended to read as follows:
     The public policy of the state of Washington on gambling is to keep the criminal element out of gambling and to promote the social welfare of the people by limiting the nature and scope of gambling activities and by strict regulation and control.
     It is hereby declared to be the policy of the legislature, recognizing the close relationship between professional gambling and organized crime, to restrain all persons from seeking profit from professional gambling activities in this state; to restrain all persons from patronizing such professional gambling activities; to safeguard the public against the evils induced by common gamblers and common gambling houses engaged in professional gambling; and at the same time, both to preserve the freedom of the press and to avoid restricting participation by individuals in activities and social pastimes, which activities and social pastimes are more for amusement rather than for profit, do not maliciously affect the public, and do not breach the peace.
     The legislature further declares that the public interest in the regulation and control of gambling is best served in collaboration with and oversight of the department of licensing to ensure consistency in the regulatory framework of the state.
     The legislature further declares that the raising of funds for the promotion of bona fide charitable or nonprofit organizations is in the public interest as is participation in such activities and social pastimes as are hereinafter in this chapter authorized.
     The legislature further declares that the conducting of bingo, raffles, and amusement games and the operation of punchboards, pull-tabs, card games and other social pastimes, when conducted pursuant to the provisions of this chapter and any rules and regulations adopted pursuant thereto, are hereby authorized, as are only such lotteries for which no valuable consideration has been paid or agreed to be paid as hereinafter in this chapter provided.
     The legislature further declares that fishing derbies shall not constitute any form of gambling and shall not be considered as a lottery, a raffle, or an amusement game and shall not be subject to the provisions of this chapter or any rules and regulations adopted hereunder.
     The legislature further declares that raffles authorized by the fish and wildlife commission involving hunting big game animals or wild turkeys shall not be subject to the provisions of this chapter or any rules and regulations adopted hereunder, with the exception of this section and RCW 9.46.400.
     All factors incident to the activities authorized in this chapter shall be closely controlled, and the provisions of this chapter shall be liberally construed to achieve such end.

Sec. 2   RCW 9.46.0201 and 1987 c 4 s 2 are each amended to read as follows:
     "Amusement game," as used in this chapter, means a game played for entertainment in which:
     (1) The contestant actively participates;
     (2) The outcome depends in a material degree upon the skill of the contestant;
     (3) Only merchandise prizes are awarded;
     (4) The outcome is not in the control of the operator;
     (5) The wagers are placed, the winners are determined, and a distribution of prizes or property is made in the presence of all persons placing wagers at such game; and
     (6) Said game is conducted or operated by any agricultural fair, person, association, or organization in such manner and at such locations as may be authorized by rules and regulations adopted by the ((commission)) director pursuant to this chapter as now or hereafter amended.
     Cake walks as commonly known and fish ponds as commonly known shall be treated as amusement games for all purposes under this chapter.

Sec. 3   RCW 9.46.0205 and 2002 c 369 s 1 are each amended to read as follows:
     "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 game, when said game is conducted by a bona fide charitable or nonprofit organization, or if 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 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 organization takes any part in the management or operation of said game, and no person who takes any part in the management or operation of said game takes 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)) director, and no part of the proceeds thereof inure to the benefit of any person other than the organization conducting said game. 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.

Sec. 4   RCW 9.46.0209 and 2007 c 452 s 1 are each amended to read as follows:
     (1)(a) "Bona fide charitable or nonprofit organization," as used in this chapter, means:
     (i) Any organization duly existing under the provisions of chapter 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)) director to be organized and operating for one or more of the aforesaid purposes only, all of which in the opinion of the ((commission)) director have been organized and are operated primarily for purposes other than the operation of gambling activities authorized under this chapter; or
     (ii) 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.
     (b) An organization defined under (a) of this subsection must:
     (i) 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;
     (ii) Have not less than fifteen 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; and
     (iii) Demonstrate to the ((commission)) director 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.
     (c) 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.
     (2) For the purposes of RCW 9.46.0315 and 9.46.110, a bona fide nonprofit organization also includes:
     (a) A credit union organized and operating under state or federal law. All revenue less prizes and expenses received from raffles conducted by credit unions must be devoted to purposes authorized under this section for charitable and nonprofit organizations; and
     (b) A group of executive branch state employees that:
     (i) Has requested and received revocable approval from the agency's chief executive official, or such official's designee, to conduct one or more raffles in compliance with this section;
     (ii) Conducts a raffle solely to raise funds for either the state combined fund drive, created under RCW 41.04.033; an entity approved to receive funds from the state combined fund drive; or a charitable or benevolent entity, including but not limited to a person or family in need, as determined by a majority vote of the approved group of employees. No person or other entity may receive compensation in any form from the group for services rendered in support of this purpose;
     (iii) Promptly provides such information about the group's receipts, expenditures, and other activities as the agency's chief executive official or designee may periodically require, and otherwise complies with this section and RCW 9.46.0315; and
     (iv) Limits the participation in the raffle such that raffle tickets are sold only to, and winners are determined only from, the employees of the agency.

Sec. 5   RCW 9.46.0217 and 1994 c 120 s 1 are each amended to read as follows:
     "Commercial stimulant," as used in this chapter, means an activity is operated as a commercial stimulant, for the purposes of this chapter, only when it is an activity operated in connection with an established business, with the purpose of increasing the volume of sales of food or drink for consumption on that business premises. The ((commission)) director may by rule establish guidelines and criteria for applying this definition to its applicants and licensees for gambling activities authorized by this chapter as commercial stimulants.

Sec. 6   RCW 9.46.0221 and 1987 c 4 s 7 are each amended to read as follows:
     (("Commission,")) (1) "Director," as used in this chapter, means the director of licensing as appointed by the governor pursuant to RCW 43.24.005.
     (2) "Office," as used in this chapter, means the ((Washington state gambling commission)) office of gambling regulation within the department of licensing created in RCW 9.46.040.

Sec. 7   RCW 9.46.0233 and 2000 c 178 s 1 are each amended to read as follows:
     (1) "Fund raising event," as used in this chapter, means a fund raising event conducted during any seventy-two consecutive hours but exceeding twenty-four consecutive hours and not more than once in any calendar year or a fund raising event conducted not more than twice each calendar year for not more than twenty-four consecutive hours each time by a bona fide charitable or nonprofit organization as defined in RCW 9.46.0209 other than any agricultural fair referred to thereunder, upon authorization therefor by the ((commission)) director, which the legislature hereby authorizes to issue a license therefor, with or without fee, permitting the following activities, or any of them, during such event: Bingo, amusement games, contests of chance, lotteries, and raffles. However: (a) Gross wagers and bets or revenue generated from participants under subsection (2) of this section received by the organization less the amount of money paid by the organization as winnings, or as payment for services or equipment rental under subsection (2) of this section, and for the purchase cost of prizes given as winnings do not exceed ten thousand dollars during the total calendar days of such fund raising event in the calendar year; (b) such activities shall not include any mechanical gambling or lottery device activated by the insertion of a coin or by the insertion of any object purchased by any person taking a chance by gambling in respect to the device; (c) only bona fide members of the organization who are not paid for such service or persons licensed or approved by the ((commission)) director under subsection (2) of this section shall participate in the management or operation of the activities, and all income therefrom, after deducting the cost of prizes and other expenses, shall be devoted solely to the lawful purposes of the organization; and (d) such organization shall notify the appropriate local law enforcement agency of the time and place where such activities shall be conducted. The ((commission)) director shall require an annual information report setting forth in detail the expenses incurred and the revenue received relative to the activities permitted.
     (2) Bona fide charitable or nonprofit organizations may hire a person or vendor, who is licensed or approved by the ((commission)) director, to organize and conduct a fund raising event on behalf of the sponsoring organization subject to the following restrictions:
     (a) The person or vendor may not provide the facility for the event;
     (b) The person or vendor may use paid personnel and may be compensated by a fixed fee determined prior to the event, but may not share in the proceeds of the event;
     (c) All wagers must be made with scrip or chips having no cash value. At the end of the event, participants may be given the opportunity to purchase or otherwise redeem their scrip or chips for merchandise prizes;
     (d) The value of all purchased prizes must not exceed ten percent of the gross revenue from the event; and
     (e) Only members and guests of the sponsoring organization may participate in the event.
     (3) Bona fide charitable or nonprofit organizations holding a license to conduct a fund raising event may join together to jointly conduct a fund raising event if:
     (a) Approval to do so is received from the ((commission)) director; and
     (b) The method of dividing the income and expenditures and the method of recording and handling of funds are disclosed to the ((commission)) director in the application for approval of the joint fund raising event and are approved by the ((commission)) director.
     The gross wagers and bets or revenue generated from participants under subsection (2) of this section received by the organizations less the amount of money paid by the organizations as winnings, or as payment for services or equipment rental under subsection (2) of this section, and for the purchase costs of prizes given as winnings may not exceed ten thousand dollars during the total calendar days of such event. The net receipts each organization receives shall count against the organization's annual limit stated in this subsection.
     A joint fund raising event shall count against only the lead organization or organizations receiving fifty percent or more of the net receipts for the purposes of the number of such events an organization may conduct each year.
     The ((commission)) director may issue a joint license for a joint fund raising event and charge a license fee for such license according to a schedule of fees adopted by the ((commission)) director which reflects the added cost to the ((commission of licensing)) office more than one licensee for the event.

Sec. 8   RCW 9.46.0261 and 1987 c 4 s 16 are each amended to read as follows:
     "Member" and "bona fide member," as used in this chapter, mean a person accepted for membership in an organization eligible to be licensed by the ((commission)) director under this chapter upon application, with such action being recorded in the official minutes of a regular meeting or who has held full and regular membership status in the organization for a period of not less than twelve consecutive months prior to participating in the management or operation of any gambling activity. Such membership must in no way be dependent upon, or in any way related to, the payment of consideration to participate in any gambling activity.
     Member or bona fide member shall include only members of an organization's specific chapter or unit licensed by the ((commission)) director or otherwise actively conducting the gambling activity: PROVIDED, That:
     (1) Members of chapters or local units of a state, regional or national organization may be considered members of the parent organization for the purpose of a gambling activity conducted by the parent organization, if the rules of the parent organization so permit;
     (2) Members of a bona fide auxiliary to a principal organization may be considered members of the principal organization for the purpose of a gambling activity conducted by the principal organization. Members of the principal organization may also be considered members of its auxiliary for the purpose of a gambling activity conducted by the auxiliary; and
     (3) Members of any chapter or local unit within the jurisdiction of the next higher level of the parent organization, and members of a bona fide auxiliary to that chapter or unit, may assist any other chapter or local unit of that same organization licensed by the ((commission)) director in the conduct of gambling activities.
     No person shall be a member of any organization if that person's primary purpose for membership is to become, or continue to be, a participant in, or an operator or manager of, any gambling activity or activities.

Sec. 9   RCW 9.46.0273 and 1987 c 4 s 19 are each amended to read as follows:
     "Punchboards" and "pull-tabs," as used in this chapter, shall be given their usual and ordinary meaning as of July 16, 1973, except that such definition may be revised by the ((commission)) director pursuant to rules and regulations promulgated pursuant to this chapter.

Sec. 10   RCW 9.46.0282 and 1997 c 118 s 1 are each amended to read as follows:
     "Social card game" as used in this chapter means a card game that constitutes gambling and is authorized by the ((commission)) director under RCW 9.46.070. Authorized card games may include a house-banked or a player-funded banked card game. No one may participate in the card game or have an interest in the proceeds of the card game who is not a player or a person licensed by the ((commission)) director to participate in social card games. There shall be two or more participants in the card game who are players or persons licensed by the ((commission)) director. The card game must be played in accordance with the rules adopted by the ((commission)) director under RCW 9.46.070, which shall include but not be limited to rules for the collection of fees, limitation of wagers, and management of player funds. The number of tables authorized shall be set by the ((commission)) director but shall not exceed a total of fifteen separate tables per establishment.

Sec. 11   RCW 9.46.0311 and 1987 c 4 s 26 are each amended to read as follows:
     The legislature hereby authorizes bona fide charitable or nonprofit organizations to conduct bingo games, raffles, amusement games, and fund raising events, and to utilize punchboards and pull-tabs and to allow their premises and facilities to be used by only members, their guests, and members of a chapter or unit organized under the same state, regional, or national charter or constitution, to play social card games authorized by the ((commission)) director, when licensed, conducted or operated pursuant to the provisions of this chapter and rules and regulations adopted pursuant thereto.

Sec. 12   RCW 9.46.0315 and 1991 c 192 s 4 are each amended to read as follows:
     Bona fide charitable or bona fide nonprofit organizations organized primarily for purposes other than the conduct of raffles, are hereby authorized to conduct raffles without obtaining a license to do so from the ((commission)) director when such raffles are held in accordance with all other requirements of this chapter, other applicable laws, and rules ((of the commission)) adopted by the director; when gross revenues from all such raffles held by the organization during the calendar year do not exceed five thousand dollars; and when tickets to such raffles are sold only to, and winners are determined only from among, the regular members of the organization conducting the raffle. The organization may provide unopened containers of beverages containing alcohol as raffle prizes if the appropriate permit has been obtained from the liquor control board: PROVIDED, That the term members for this purpose shall mean only those persons who have become members prior to the commencement of the raffle and whose qualification for membership was not dependent upon, or in any way related to, the purchase of a ticket, or tickets, for such raffles.

Sec. 13   RCW 9.46.0321 and 1987 c 4 s 28 are each amended to read as follows:
     Bona fide charitable or bona fide nonprofit organizations organized primarily for purposes other than the conduct of such activities are hereby authorized to conduct bingo, raffles, and amusement games, without obtaining a license to do so from the ((commission)) director but only when:
     (1) Such activities are held in accordance with all other requirements of this chapter, other applicable laws, and rules ((of the commission)) adopted by the director;
     (2) Said activities are, alone or in any combination, conducted no more than twice each calendar year and over a period of no more than twelve consecutive days each time, notwithstanding the limitations of RCW 9.46.0205: PROVIDED, That a raffle conducted under this subsection may be conducted for a period longer than twelve days;
     (3) Only bona fide members of that organization, who are not paid for such services, participate in the management or operation of the activities;
     (4) Gross revenues to the organization from all the activities together do not exceed five thousand dollars during any calendar year;
     (5) All revenue therefrom, after deducting the cost of prizes and other expenses of the activity, is devoted solely to the purposes for which the organization qualifies as a bona fide charitable or nonprofit organization;
     (6) The organization gives notice at least five days in advance of the conduct of any of the activities to the local police agency of the jurisdiction within which the activities are to be conducted of the organization's intent to conduct the activities, the location of the activities, and the date or dates they will be conducted; and
     (7) The organization conducting the activities maintains records for a period of one year from the date of the event which accurately show at a minimum the gross revenue from each activity, details of the expenses of conducting the activities, and details of the uses to which the gross revenue therefrom is put.

Sec. 14   RCW 9.46.0331 and 1991 c 287 s 1 are each amended to read as follows:
     The legislature hereby authorizes any person to conduct or operate amusement games when licensed and operated pursuant to the provisions of this chapter and rules and regulations adopted by the ((commission)) director at such locations as the ((commission)) director may authorize. The rules shall provide for at least the following:
     (1) Persons other than bona fide charitable or bona fide nonprofit organizations shall conduct amusement games only after obtaining a special amusement game license from the ((commission)) office.
     (2) Amusement games may be conducted under such a license only as a part of, and upon the site of:
     (a) Any agricultural fair as authorized under chapter 15.76 or 36.37 RCW; or
     (b) A civic center of a county, city, or town; or
     (c) A world's fair or similar exposition that is approved by the bureau of international expositions at Paris, France; or
     (d) A community-wide civic festival held not more than once annually and sponsored or approved by the city, town, or county in which it is held; or
     (e) A commercial exposition organized and sponsored by an organization or association representing the retail sales and service operators conducting business in a shopping center or other commercial area developed and operated for retail sales and service, but only upon a parking lot or similar area located in said shopping center or commercial area for a period of no more than seventeen consecutive days by any licensee during any calendar year; or
     (f) An amusement park. An amusement park is a group of activities, at a permanent location, to which people go to be entertained through a combination of various mechanical or aquatic rides, theatrical productions, motion picture, and/or slide show presentations with food and drink service. The amusement park must include at least five different mechanical, or aquatic rides, three additional activities, and the gross receipts must be primarily from these amusement activities; or
     (g) Within a regional shopping center. A regional shopping center is a shopping center developed and operated for retail sales and service by retail sales and service operators and consisting of more than six hundred thousand gross square feet not including parking areas. Amusement games conducted as a part of, and upon the site of, a regional shopping center shall not be subject to the prohibition on revenue sharing set forth in RCW 9.46.120(2); or
     (h) A location that possesses a valid license from the Washington state liquor (([control])) control board and prohibits minors on their premises; or
     (i) Movie theaters, bowling alleys, miniature golf course facilities, and amusement centers. For the purposes of this section an amusement center shall be defined as a permanent location whose primary source of income is from the operation of ten or more amusement devices; or
     (j) Any business whose primary activity is to provide food service for on premises consumption and who offers family entertainment which includes at least three of the following activities: Amusement devices; theatrical productions; mechanical rides; motion pictures; and slide show presentations.
     (3) No amusement games may be conducted in any location except in conformance with local zoning, fire, health, and similar regulations. In no event may the licensee conduct any amusement games at any of the locations set out in subsection (2) of this section without first having obtained the written permission to do so from the person or organization owning the premises or an authorized agent thereof, and from the persons sponsoring the fair, exhibition, commercial exhibition, or festival, or from the city or town operating the civic center, in connection with which the games are to be operated.
     (4) In no event may a licensee conduct any amusement games at the location described in subsection (2)(g) of this section, without, at the location of such games, providing adult supervision during all hours the licensee is open for business at such location, prohibiting school-age minors from entry during school hours, maintaining full-time personnel whose responsibilities include maintaining security and daily machine maintenance, and providing for hours for the close of business at such location that are no later than 10:00 p.m. on Fridays and Saturdays and on all other days that are the same as those of the regional shopping center in which the licensee is located.
     (5) In no event may a licensee conduct any amusement game at a location described in subsection (2)(i) or (j) of this section, without, at the location of such games, providing adult supervision during all hours the licensee is open for business at such location, prohibiting school-age minors from playing licensed amusement games during school hours, maintaining full-time personnel whose responsibilities include maintaining security and daily machine maintenance, and prohibiting minors from playing the amusement games after 10:00 p.m. on any day.

Sec. 15   RCW 9.46.0335 and 1987 c 4 s 31 are each amended to read as follows:
     The legislature hereby authorizes any person, association, or organization to conduct sports pools without a license to do so from the ((commission)) director but only when the outcome of which is dependent upon the score, or scores, of a certain athletic contest and which is conducted only in the following manner:
     (1) A board or piece of paper is divided into one hundred equal squares, each of which constitutes a chance to win in the sports pool and each of which is offered directly to prospective contestants at one dollar or less;
     (2) The purchaser of each chance or square signs his or her name on the face of each square or chance he or she purchases; and
     (3) At some time not later than prior to the start of the subject athletic contest the pool is closed and no further chances in the pool are sold;
     (4) After the pool is closed a prospective score is assigned by random drawing to each square;
     (5) All money paid by entrants to enter the pool less taxes is paid out as the prize or prizes to those persons holding squares assigned the winning score or scores from the subject athletic contest;
     (6) The sports pool board is available for inspection by any person purchasing a chance thereon, the ((commission)) director, or by any law enforcement agency upon demand at all times prior to the payment of the prize;
     (7) The person or organization conducting the pool is conducting no other sports pool on the same athletic event; and
     (8) The sports pool conforms to any rules and regulations ((of the commission)) adopted by the director applicable thereto.

Sec. 16   RCW 9.46.0341 and 1997 c 38 s 1 are each amended to read as follows:
     The legislature hereby authorizes bona fide charitable or nonprofit organizations to conduct, without the necessity of obtaining a permit or license to do so from the ((commission)) director, golfing sweepstakes permitting wagers of money, and the same shall not constitute such gambling or lottery as otherwise prohibited in this chapter, or be subject to civil or criminal penalties thereunder, but this only when the outcome of such golfing sweepstakes is dependent upon the score, or scores, or the playing ability, or abilities, of a golfing contest between individual players or teams of such players, conducted in the following manner:
     (1) Wagers are placed by buying tickets on any players in a golfing contest to "win," "place," or "show" and those holding tickets on the three winners may receive a payoff similar to the system of betting identified as parimutuel, such moneys placed as wagers to be used primarily as winners' proceeds, except moneys used to defray the expenses of such golfing sweepstakes or otherwise used to carry out the purposes of such organization; or
     (2) Participants in any golfing contest(s) pay a like sum of money into a common fund on the basis of attaining a stated number of points ascertainable from the score of such participants, and those participants attaining such stated number of points share equally in the moneys in the common fund, without any percentage of such moneys going to the sponsoring organization; or
     (3) An auction is held in which persons may bid on the players or teams of players in the golfing contest, and the person placing the highest bid on the player or team that wins the golfing contest receives the proceeds of the auction, except moneys used to defray the expenses of the golfing sweepstakes or otherwise used to carry out the purposes of the organizations; and
     (4) Participation is limited to members of the sponsoring organization and their bona fide guests.

Sec. 17   RCW 9.46.0345 and 1987 c 4 s 33 are each amended to read as follows:
     The legislature hereby authorizes bowling establishments to conduct, without the necessity of obtaining a permit or license to do so, as a commercial stimulant, a bowling activity which permits bowlers to purchase tickets from the establishment for a predetermined and posted amount of money, which tickets are then selected by the luck of the draw and the holder of the matching ticket so drawn has an opportunity to bowl a strike and if successful receives a predetermined and posted monetary prize: PROVIDED, That all sums collected by the establishment from the sale of tickets shall be returned to purchasers of tickets and no part of the proceeds shall inure to any person other than the participants winning in the game or a recognized charity. The tickets shall be sold, and accounted for, separately from all other sales of the establishment. The price of any single ticket shall not exceed one dollar. Accounting records shall be available for inspection during business hours by any person purchasing a chance thereon, by the ((commission)) director or ((its)) representatives of the director, or by any law enforcement agency.

Sec. 18   RCW 9.46.0351 and 1999 c 143 s 5 are each amended to read as follows:
     (1) The legislature hereby authorizes any bona fide charitable or nonprofit organization which is licensed pursuant to RCW 66.24.400, and its officers and employees, to allow the use of the premises, furnishings, and other facilities not gambling devices of such organization by members of the organization, and members of a chapter or unit organized under the same state, regional, or national charter or constitution, who engage as players in the following types of gambling activities only:
     (a) Social card games; and
     (b) Social dice games, which shall be limited to contests of chance, the outcome of which are determined by one or more rolls of dice.
     (2) Bona fide charitable or nonprofit organizations shall not be required to be licensed by the ((commission)) director in order to allow use of their premises in accordance with this section. However, the following conditions must be met:
     (a) No organization, corporation, or person shall collect or obtain or charge any percentage of or shall collect or obtain any portion of the money or thing of value wagered or won by any of the players: PROVIDED, That a player may collect his or her winnings; and
     (b) No organization, corporation, or person shall collect or obtain any money or thing of value from, or charge or impose any fee upon, any person which either enables him or her to play or results in or from his or her playing: PROVIDED, That this subsection shall not preclude collection of a membership fee which is unrelated to participation in gambling activities authorized under this section.

Sec. 19   RCW 9.46.0356 and 2000 c 228 s 1 are each amended to read as follows:
     (1) The legislature authorizes a business to conduct a promotional contest of chance as defined in this section, in this state, or partially in this state, whereby the elements of prize and chance are present but in which the element of consideration is not present.
     (2) Promotional contests of chance under this section are not gambling as defined in RCW 9.46.0237.
     (3) Promotional contests of chance shall be conducted as advertising and promotional undertakings solely for the purpose of advertising or promoting the services, goods, wares, and merchandise of a business.
     (4) No person eligible to receive a prize in a promotional contest of chance may be required to:
     (a) Pay any consideration to the promoter or operator of the business in order to participate in the contest; or
     (b) Purchase any service, goods, wares, merchandise, or anything of value from the business, however, for other than contests entered through a direct mail solicitation, the promoter or sponsor may give additional entries or chances upon purchase of service, goods, wares, or merchandise if the promoter or sponsor provides an alternate method of entry requiring no consideration.
     (5)(a) As used in this section, "consideration" means anything of pecuniary value required to be paid to the promoter or sponsor in order to participate in a promotional contest. Such things as visiting a business location, placing or answering a telephone call, completing an entry form or customer survey, or furnishing a stamped, self-addressed envelope do not constitute consideration.
     (b) Coupons or entry blanks obtained by purchase of a bona fide newspaper or magazine or in a program sold in conjunction with a regularly scheduled sporting event are not consideration.
     (6) Unless authorized by the ((commission)) director, equipment or devices made for use in a gambling activity are prohibited from use in a promotional contest.
     (7) This section shall not be construed to permit noncompliance with chapter 19.170 RCW, promotional advertising of prizes, and chapter 19.86 RCW, unfair business practices.

Sec. 20   RCW 9.46.0361 and 1987 c 4 s 36 are each amended to read as follows:
     The legislature hereby authorizes bona fide charitable or nonprofit organizations to conduct, without the necessity of obtaining a permit or license to do so from the ((commission)) director, turkey shoots permitting wagers of money. Such contests shall not constitute such gambling or lottery as otherwise prohibited in this chapter, or be subject to civil or criminal penalties. Such organizations must be organized for purposes other than the conduct of turkey shoots.
     Such turkey shoots shall be held in accordance with all other requirements of this chapter, other applicable laws, and rules that may be adopted by the ((commission)) director. Gross revenues from all such turkey shoots held by the organization during the calendar year shall not exceed five thousand dollars. Turkey shoots conducted under this section shall meet the following requirements:
     (1) The target shall be divided into one hundred or fewer equal sections, with each section constituting a chance to win. Each chance shall be offered directly to a prospective contestant for one dollar or less;
     (2) The purchaser of each chance shall sign his or her name on the face of the section he or she purchases;
     (3) The person shooting at the target shall not be a participant in the contest, but shall be a member of the organization conducting the contest;
     (4) Participation in the contest shall be limited to members of the organization which is conducting the contest and their guests;
     (5) The target shall contain the following information:
     (a) Distance from the shooting position to the target;
     (b) The gauge of the shotgun;
     (c) The type of choke on the barrel;
     (d) The size of shot that will be used; and
     (e) The prize or prizes that are to be awarded in the contest;
     (6) The targets, shotgun, and ammunition shall be available for inspection by any person purchasing a chance thereon, the ((commission)) director, or by any law enforcement agency upon demand, at all times before the prizes are awarded;
     (7) The turkey shoot shall award the prizes based upon the greatest number of shots striking a section;
     (8) No turkey shoot may offer as a prize the right to advance or continue on to another turkey shoot or turkey shoot target; and
     (9) Only bona fide members of the organization who are not paid for such service may participate in the management or operation of the turkey shoot, and all income therefrom, after deducting the cost of prizes and other expenses, shall be devoted solely to the lawful purposes of the organization.

Sec. 21   RCW 9.46.040 and 1974 ex.s. c 155 s 12 are each amended to read as follows:
     There shall be ((a commission, known as the "Washington state gambling commission", consisting of five members appointed by the governor with the consent of the senate. The members of the commission shall be appointed within thirty days of July 16, 1973 for terms beginning July 1, 1973, and expiring as follows: One member of the commission for a term expiring July 1, 1975; one member of the commission for a term expiring July 1, 1976; one member of the commission for a term expiring July 1, 1977; one member of the commission for a term expiring July 1, 1978; and one member of the commission for a term expiring July 1, 1979; each as the governor so determines. Their successors, all of whom shall be citizen members appointed by the governor with the consent of the senate, upon being appointed and qualified, shall serve six year terms: PROVIDED, That no member of the commission who has served a full six year term shall be eligible for reappointment. In case of a vacancy, it shall be filled by appointment by the governor for the unexpired portion of the term in which said vacancy occurs. No vacancy in the membership of the commission shall impair the right of the remaining member or members to act, except as in RCW 9.46.050(2) provided.
     In addition to the members of the commission there shall be four ex officio members without vote from the legislature consisting of: (1) Two members of the senate, one from the majority political party and one from the minority political party, both to be appointed by the president of the senate; (2) two members of the house of representatives, one from the majority political party and one from the minority political party, both to be appointed by the speaker of the house of representatives; such appointments shall be for the term of two years or for the period in which the appointee serves as a legislator, whichever expires first; members may be reappointed; vacancies shall be filled in the same manner as original appointments are made. Such ex officio members who shall collect data deemed essential to future legislative proposals and exchange information with the board shall be deemed engaged in legislative business while in attendance upon the business of the board and shall be limited to such allowances therefor as otherwise provided in RCW 44.04.120, the same to be paid from the "gambling revolving fund" as being expenses relative to commission business)) an office of gambling regulation within the department of licensing.

Sec. 22   RCW 9.46.060 and 1973 1st ex.s. c 218 s 6 are each amended to read as follows:
     (1) The attorney general shall be general counsel for the ((state gambling commission)) office and shall assign such assistants as may be necessary in carrying out the purposes and provisions of this chapter, which shall include instituting and prosecuting any actions and proceedings necessary thereto.
     (2) The state auditor shall audit the books, records, and affairs of the ((commission)) office annually. The ((commission)) office shall pay to the state treasurer for the credit of the state auditor such funds as may be necessary to defray the costs of such audits. The ((commission)) office may provide for additional audits by certified public accountants. All such audits shall be public records of the state.
     The payment for legal services and audits as authorized in this section shall be paid upon authorization of the ((commission)) director from moneys in the department of licensing gambling revolving fund.

Sec. 23   RCW 9.46.070 and 2007 c 206 s 1 are each amended to read as follows:
     The ((commission)) director or representatives of the director shall have the following powers and duties:
     (1) To authorize and issue licenses for a period not to exceed one year to bona fide charitable or nonprofit organizations approved by the ((commission)) director meeting the requirements of this chapter and any rules and regulations adopted pursuant thereto permitting said organizations to conduct bingo games, raffles, amusement games, and social card games, to utilize punchboards and pull-tabs in accordance with the provisions of this chapter and any rules and regulations adopted pursuant thereto and to revoke or suspend said licenses for violation of any provisions of this chapter or any rules and regulations adopted pursuant thereto: PROVIDED, That the ((commission)) director shall not deny a license to an otherwise qualified applicant in an effort to limit the number of licenses to be issued: AND PROVIDED FURTHER, That the ((commission or)) director shall not issue, deny, suspend, or revoke any license because of considerations of race, sex, creed, color, or national origin((: AND PROVIDED FURTHER, That the commission may authorize the director to temporarily issue or suspend licenses subject to final action by the commission));
     (2) To authorize and issue licenses for a period not to exceed one year to any person, association, or organization operating a business primarily engaged in the selling of items of food or drink for consumption on the premises, approved by the ((commission)) director meeting the requirements of this chapter and any rules and regulations adopted pursuant thereto permitting said person, association, or organization to utilize punchboards and pull-tabs and to conduct social card games as a commercial stimulant in accordance with the provisions of this chapter and any rules and regulations adopted pursuant thereto and to revoke or suspend said licenses for violation of any provisions of this chapter and any rules and regulations adopted pursuant thereto: PROVIDED, That the ((commission)) director shall not deny a license to an otherwise qualified applicant in an effort to limit the number of licenses to be issued((: PROVIDED FURTHER, That the commission may authorize the director to temporarily issue or suspend licenses subject to final action by the commission));
     (3) To authorize and issue licenses for a period not to exceed one year to any person, association, or organization approved by the ((commission)) director meeting the requirements of this chapter and meeting the requirements of any rules and regulations adopted by the ((commission)) director pursuant to this chapter as now or hereafter amended, permitting said person, association, or organization to conduct or operate amusement games in such manner and at such locations as the ((commission)) director may determine((. The commission may authorize the director to temporarily issue or suspend licenses subject to final action by the commission));
     (4) To authorize, require, and issue, for a period not to exceed one year, such licenses as the ((commission)) director may by rule provide, to any person, association, or organization to engage in the selling, distributing, or otherwise supplying or in the manufacturing of devices for use within this state for those activities authorized by this chapter((. The commission may authorize the director to temporarily issue or suspend licenses subject to final action by the commission));
     (5) To establish a schedule of annual license fees for carrying on specific gambling activities upon the premises, and for such other activities as may be licensed by the ((commission)) director, which fees shall provide to the ((commission)) office not less than an amount of money adequate to cover all costs incurred by the ((commission)) office relative to licensing under this chapter and the enforcement by the ((commission)) office of the provisions of this chapter and rules and regulations adopted pursuant thereto: PROVIDED, That all licensing fees shall be submitted with an application therefor and such portion of said fee as the ((commission)) director may determine, based upon its cost of processing and investigation, shall be retained by the ((commission)) office upon the withdrawal or denial of any such license application as its reasonable expense for processing the application and investigation into the granting thereof: PROVIDED FURTHER, That if in a particular case the basic license fee established by the ((commission)) director for a particular class of license is less than the ((commission's)) office's actual expenses to investigate that particular application, the ((commission)) director may at any time charge to that applicant such additional fees as are necessary to pay the ((commission)) office for those costs. The ((commission)) director may decline to proceed with its investigation and no license shall be issued until the ((commission)) office has been fully paid therefor by the applicant: AND PROVIDED FURTHER, That the ((commission)) director may establish fees for the furnishing by it to licensees of identification stamps to be affixed to such devices and equipment as required by the ((commission)) director and for such other special services or programs required or offered by the ((commission)) office, the amount of each of these fees to be not less than is adequate to offset the cost to the ((commission)) office of the stamps and of administering their dispersal to licensees or the cost of administering such other special services, requirements or programs;
     (6) To prescribe the manner and method of payment of taxes, fees and penalties to be paid to or collected by the ((commission)) office;
     (7) To require that applications for all licenses contain such information as may be required by the ((commission)) director: PROVIDED, That all persons (a) having a managerial or ownership interest in any gambling activity, or the building in which any gambling activity occurs, or the equipment to be used for any gambling activity, or (b) participating as an employee in the operation of any gambling activity, shall be listed on the application for the license and the applicant shall certify on the application, under oath, that the persons named on the application are all of the persons known to have an interest in any gambling activity, building, or equipment by the person making such application: PROVIDED FURTHER, That the ((commission)) director shall require fingerprinting and national criminal history background checks on any persons seeking licenses, certifications, or permits under this chapter or of any person holding an interest in any gambling activity, building, or equipment to be used therefor, or of any person participating as an employee in the operation of any gambling activity. All national criminal history background checks shall be conducted using fingerprints submitted to the United States department of justice-federal bureau of investigation. The ((commission)) director must establish rules to delineate which persons named on the application are subject to national criminal history background checks. In identifying these persons, the ((commission)) director must take into consideration the nature, character, size, and scope of the gambling activities requested by the persons making such applications;
     (8) To require that any license holder maintain records as directed by the ((commission)) director and submit such reports as the ((commission)) director may deem necessary;
     (9) To require that all income from bingo games, raffles, and amusement games be recorded and reported as established by rule or regulation of the ((commission)) director to the extent deemed necessary by considering the scope and character of the gambling activity in such a manner that will disclose gross income from any gambling activity, amounts received from each player, the nature and value of prizes, and the fact of distributions of such prizes to the winners thereof;
     (10) To regulate and establish maximum limitations on income derived from bingo. In establishing limitations pursuant to this subsection the ((commission)) director shall take into account (a) the nature, character, and scope of the activities of the licensee; (b) the source of all other income of the licensee; and (c) the percentage or extent to which income derived from bingo is used for charitable, as distinguished from nonprofit, purposes. However, the ((commission's)) director's powers and duties granted by this subsection are discretionary and not mandatory;
     (11) To regulate and establish the type and scope of and manner of conducting the gambling activities authorized by this chapter, including but not limited to, the extent of wager, money, or other thing of value which may be wagered or contributed or won by a player in any such activities;
     (12) To regulate the collection of and the accounting for the fee which may be imposed by an organization, corporation, or person licensed to conduct a social card game on a person desiring to become a player in a social card game in accordance with RCW 9.46.0282;
     (13) To cooperate with and secure the cooperation of county, city, and other local or state agencies in investigating any matter within the scope of its duties and responsibilities;
     (14) In accordance with RCW 9.46.080, to adopt such rules and regulations as are deemed necessary to carry out the purposes and provisions of this chapter. All rules and regulations shall be adopted pursuant to the administrative procedure act, chapter 34.05 RCW;
     (15) To set forth for the perusal of counties, city-counties, cities and towns, model ordinances by which any legislative authority thereof may enter into the taxing of any gambling activity authorized by this chapter;
     (16)(a) To establish and regulate a maximum limit on salaries or wages which may be paid to persons employed in connection with activities conducted by bona fide charitable or nonprofit organizations and authorized by this chapter, where payment of such persons is allowed, and to regulate and establish maximum limits for other expenses in connection with such authorized activities, including but not limited to rent or lease payments. However, the ((commissioner's)) director's powers and duties granted by this subsection are discretionary and not mandatory.
     (b) In establishing these maximum limits the ((commission)) director shall take into account the amount of income received, or expected to be received, from the class of activities to which the limits will apply and the amount of money the games could generate for authorized charitable or nonprofit purposes absent such expenses. The ((commission)) director may also take into account, in its discretion, other factors, including but not limited to, the local prevailing wage scale and whether charitable purposes are benefited by the activities;
     (17) To authorize, require, and issue for a period not to exceed one year such licenses or permits, for which the ((commission)) director may by rule provide, to any person to work for any operator of any gambling activity authorized by this chapter in connection with that activity, or any manufacturer, supplier, or distributor of devices for those activities in connection with such business. ((The commission may authorize the director to temporarily issue or suspend licenses subject to final action by the commission.)) The ((commission)) director shall not require that persons working solely as volunteers in an authorized activity conducted by a bona fide charitable or bona fide nonprofit organization, who receive no compensation of any kind for any purpose from that organization, and who have no managerial or supervisory responsibility in connection with that activity, be licensed to do such work. The ((commission)) director may require that licensees employing such unlicensed volunteers submit to the ((commission)) office periodically a list of the names, addresses, and dates of birth of the volunteers. If any volunteer is not approved by the ((commission)) director, the ((commission)) director may require that the licensee not allow that person to work in connection with the licensed activity;
     (18) To publish and make available at the office ((of the commission)) or elsewhere to anyone requesting it a list of the ((commission)) licensees, including the name, address, type of license, and license number of each licensee;
     (19) To establish guidelines for determining what constitutes active membership in bona fide nonprofit or charitable organizations for the purposes of this chapter;
     (20) To renew the license of every person who applies for renewal within six months after being honorably discharged, removed, or released from active military service in the armed forces of the United States upon payment of the renewal fee applicable to the license period, if there is no cause for denial, suspension, or revocation of the license; and
     (21) To perform all other matters and things necessary to carry out the purposes and provisions of this chapter.

Sec. 24   RCW 9.46.0701 and 2002 c 369 s 2 are each amended to read as follows:
     The ((commission)) director may allow existing licensees under RCW 9.46.070(1) to share facilities at one location.

Sec. 25   RCW 9.46.071 and 2005 c 369 s 9 are each amended to read as follows:
     (1) The legislature recognizes that some individuals in this state are problem or pathological gamblers. Because the state promotes and regulates gambling through the activities of the state lottery commission, the Washington horse racing commission, and the ((Washington state gambling commission)) office, the state has the responsibility to continue to provide resources for the support of services for problem and pathological gamblers. Therefore, the ((Washington state gambling commission)) office, the Washington horse racing commission, and the state lottery commission shall jointly develop informational signs concerning problem and pathological gambling which include a toll-free hot line number for problem and pathological gamblers. The signs shall be placed in the establishments of gambling licensees, horse racing licensees, and lottery retailers. In addition, the ((Washington state gambling commission)) office, the Washington horse racing commission, and the state lottery commission may also contract with other qualified entities to provide public awareness, training, and other services to ensure the intent of this section is fulfilled.
     (2)(a) During any period in which RCW 82.04.285(2) is in effect, the ((commission)) director may not increase fees payable by licensees under its jurisdiction for the purpose of funding services for problem and pathological gambling. Any fee imposed or increased by the ((commission)) director, for the purpose of funding these services, before July 1, 2005, shall have no force and effect after July 1, 2005.
     (b) During any period in which RCW 82.04.285(2) is not in effect:
     (i) The ((commission)) director, the Washington state horse racing commission, and the state lottery commission may contract for services, in addition to those authorized in subsection (1) of this section, to assist in providing for treatment of problem and pathological gambling; and
     (ii) The ((commission)) director may increase fees payable by ((licenses [licensees])) licensees under its jurisdiction for the purpose of funding the services authorized in this section for problem and pathological gamblers.

Sec. 26   RCW 9.46.075 and 1981 c 139 s 4 are each amended to read as follows:
     The ((commission)) director may deny an application, or suspend or revoke any license or permit issued by it, for any reason or reasons, it deems to be in the public interest. These reasons shall include, but not be limited to, cases wherein the applicant or licensee, or any person with any interest therein:
     (1) Has violated, failed or refused to comply with the provisions, requirements, conditions, limitations or duties imposed by this chapter ((9.46 RCW)) and any amendments thereto, or any rules adopted by the ((commission)) director pursuant thereto, or when a violation of any provision of this chapter ((9.46 RCW)), or any ((commission)) rule adopted by the director, has occurred upon any premises occupied or operated by any such person or over which he or she has substantial control;
     (2) Knowingly causes, aids, abets, or conspires with another to cause, any person to violate any of the laws of this state or the rules ((of the commission)) adopted by the director;
     (3) Has obtained a license or permit by fraud, misrepresentation, concealment, or through inadvertence or mistake;
     (4) Has been convicted of, or forfeited bond upon a charge of, or pleaded guilty to, forgery, larceny, extortion, conspiracy to defraud, wilful failure to make required payments or reports to a governmental agency at any level, or filing false reports therewith, or of any similar offense or offenses, or of bribing or otherwise unlawfully influencing a public official or employee of any state or the United States, or of any crime, whether a felony or misdemeanor involving any gambling activity or physical harm to individuals or involving moral turpitude;
     (5) Denies the ((commission)) director or ((its authorized)) representatives of the director, including authorized local law enforcement agencies, access to any place where a licensed activity is conducted or who fails promptly to produce for inspection or audit any book, record, document, or item required by law or ((commission)) rule adopted by the director;
     (6) Shall fail to display its license on the premises where the licensed activity is conducted at all times during the operation of the licensed activity;
     (7) Makes a misrepresentation of, or fails to disclose, a material fact to the ((commission)) director or representatives of the director;
     (8) Fails to prove, by clear and convincing evidence, that he, she or it is qualified in accordance with the provisions of this chapter;
     (9) Is subject to current prosecution or pending charges, or a conviction which is under appeal, for any of the offenses included under subsection (4) of this section: PROVIDED, That at the request of an applicant for an original license, the ((commission)) director may defer decision upon the application during the pendency of such prosecution or appeal;
     (10) Has pursued or is pursuing economic gain in an occupational manner or context which is in violation of the criminal or civil public policy of this state if such pursuit creates probable cause to believe that the participation of such person in gambling or related activities would be inimical to the proper operation of an authorized gambling or related activity in this state. For the purposes of this section, occupational manner or context shall be defined as the systematic planning, administration, management or execution of an activity for financial gain;
     (11) Is a career offender or a member of a career offender cartel or an associate of a career offender or career offender cartel in such a manner which creates probable cause to believe that the association is of such a nature as to be inimical to the policy of this chapter or to the proper operation of the authorized gambling or related activities in this state. For the purposes of this section, career offender shall be defined as any person whose behavior is pursued in an occupational manner or context for the purpose of economic gain utilizing such methods as are deemed criminal violations of the public policy of this state. A career offender cartel shall be defined as any group of persons who operate together as career offenders.
     For the purpose of reviewing any application for a license and for considering the denial, suspension, or revocation of any license the ((gambling commission)) director may consider any prior criminal conduct of the applicant or licensee and the provisions of RCW 9.95.240 and of chapter 9.96A RCW shall not apply to such cases.

Sec. 27   RCW 9.46.077 and 1981 c 139 s 5 are each amended to read as follows:
     The ((commission)) director, when suspending any license for a period of thirty days or less, may further provide in the order of suspension that such suspension shall be vacated upon payment to the ((commission)) office of a monetary penalty in an amount then fixed by the ((commission)) director.

Sec. 28   RCW 9.46.080 and 1994 c 218 s 14 are each amended to read as follows:
     The ((commission)) director shall employ a full time assistant director, who shall be the administrator for the ((commission)) office in carrying out ((its)) the director's powers and duties and who shall issue rules and regulations adopted by the ((commission)) director governing the activities authorized hereunder and shall supervise ((commission)) office employees in carrying out the purposes and provisions of this chapter. ((In addition, the director shall employ a deputy director, not more than three assistant directors, together with such investigators and enforcement officers and such staff as the commission determines is necessary to carry out the purposes and provisions of this chapter. The director, the deputy director, the assistant directors, and personnel occupying positions requiring the performing of undercover investigative work shall be exempt from the provisions of chapter 41.06 RCW, as now law or hereafter amended.)) Neither the assistant director nor any ((commission)) office employee working therefor shall be an officer or manager of any bona fide charitable or bona fide nonprofit organization, or of any organization which conducts gambling activity in this state.
     ((The director, subject to the approval of the commission, is authorized to enter into agreements on behalf of the commission for mutual assistance and services, based upon actual costs, with any state or federal agency or with any city, town, or county, and such state or local agency is authorized to enter into such an agreement with the commission. If a needed service is not available from another agency of state government within a reasonable time, the director may obtain that service from private industry.))

Sec. 29   RCW 9.46.085 and 1986 c 4 s 1 are each amended to read as follows:
     ((A member or)) An employee of the office of gambling ((commission)) regulation shall not:
     (1) Serve as an officer or manager of any corporation or organization which conducts a lottery or gambling activity;
     (2) Receive or share in, directly or indirectly, the gross profits of any gambling activity regulated by the ((commission)) office;
     (3) Be beneficially interested in any contract for the manufacture or sale of gambling devices, the conduct of (([a])) a gambling activity, or the provision of independent consultant services in connection with a gambling activity.

Sec. 30   RCW 9.46.090 and 1987 c 505 s 3 are each amended to read as follows:
     Subject to RCW 40.07.040, the ((commission)) office shall, from time to time, make reports to the governor and the legislature covering such matters in connection with this chapter as the governor and the legislature may require. These reports shall be public documents and contain such general information and remarks as the ((commission)) director deems pertinent thereto and any information requested by either the governor or members of the legislature: PROVIDED, That the ((commission appointed pursuant to RCW 9.46.040)) office may conduct a thorough study of the types of gambling activity permitted and the types of gambling activity prohibited by this chapter and may make recommendations to the legislature as to: (1) Gambling activity that ought to be permitted; (2) gambling activity that ought to be prohibited; (3) the types of licenses and permits that ought to be required; (4) the type and amount of tax that ought to be applied to each type of permitted gambling activity; (5) any changes which may be made to the law of this state which further the purposes and policies set forth in RCW 9.46.010 as now law or hereafter amended; and (6) any other matter that the ((commission)) director may deem appropriate. ((Members of the commission and its staff may contact the legislature, or any of its members, at any time, to advise it of recommendations of the commission.))

Sec. 31   RCW 9.46.095 and 1989 c 175 s 41 are each amended to read as follows:
     No court of the state of Washington other than the superior court of Thurston county shall have jurisdiction over any action or proceeding against the ((commission or any member thereof)) director or the office for anything done or omitted to be done in or arising out of the performance of ((his or her)) the duties under this title: PROVIDED, That an appeal ((from an adjudicative proceeding)) involving a final decision of the ((commission)) director to deny, suspend, or revoke a license shall be governed by chapter 34.05 RCW, the Administrative Procedure Act.
     Neither the ((commission nor any member or members thereof)) director nor any employee of the office shall be personally liable in any action at law for damages sustained by any person because of any acts performed or done, or omitted to be done, by the ((commission or any member of the commission, or any employee of the commission)) director nor any employee of the office, in the performance of his or her duties and in the administration of this title.

Sec. 32   RCW 9.46.100 and 2004 c 276 s 903 are each amended to read as follows:
     There is hereby created the department of licensing gambling revolving fund which shall consist of all moneys receivable for licensing, penalties, forfeitures, and all other moneys, income, or revenue received by the ((commission)) office. The state treasurer shall be custodian of the fund. All moneys received by the ((commission)) office or any employee thereof, except for change funds and an amount of petty cash as fixed by rule or regulation ((of the commission)) adopted by the director, shall be deposited each day in a depository approved by the state treasurer and transferred to the state treasurer to be credited to the department of licensing gambling revolving fund. Disbursements from the department of licensing gambling revolving fund shall be on authorization of the ((commission or a duly authorized representative thereof)) director or representatives of the director. In order to maintain an effective expenditure and revenue control the department of licensing gambling revolving fund shall be subject in all respects to chapter 43.88 RCW but no appropriation shall be required to permit expenditures and payment of obligations from such fund. All expenses relative to ((commission)) office business, including but not limited to salaries and expenses of the assistant director and other ((commission)) office employees shall be paid from the department of licensing gambling revolving fund.
     ((During the 2003-2005 fiscal biennium, the legislature may transfer from the gambling revolving fund to the problem gambling treatment account, contingent on enactment of chapter ..., Laws of 2004 (Second Substitute House Bill No. 2776, problem gambling treatment). Also during the 2003-2005 fiscal biennium, the legislature may transfer from the gambling revolving fund to the state general fund such amounts as reflect the excess nontribal fund balance of the fund. The commission shall not increase fees during the 2003-2005 fiscal biennium for the purpose of restoring the excess fund balance transferred under this section.))

Sec. 33   RCW 9.46.110 and 1999 c 221 s 1 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 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 activity. Any such tax imposed by a county alone shall not apply to any gambling activity within a city or town located 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.
     (2) The operation of punchboards and pull-tabs are subject to the following conditions:
     (a) Chances may only be sold to adults;
     (b) The price of a single chance may not exceed one dollar;
     (c) No punchboard 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 punchboard or pull-tab;
     (d) All prizes 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 in which any such punchboard or pull-tab is located. Upon a winning number or symbol being drawn, a merchandise prize must be immediately removed 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
     (e) When any person wins money or merchandise from any punchboard or pull-tab over an amount determined by the ((commission)) director, every licensee shall keep a public record of the award for at least ninety days containing such information as the ((commission)) director shall deem necessary.
     (3)(a) Taxation of bingo and raffles shall never be in an amount greater than five percent of the gross receipts from a bingo game or raffle less the amount 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 receipts from the amusement game less the amount awarded as prizes.
     (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 receipts from bingo or amusement games, or a combination thereof, not exceeding five thousand dollars per year, less the amount awarded as cash or merchandise prizes.
     (d) No tax shall be imposed on the first ten thousand dollars of 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 punchboards 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 a rate of ten percent. At the option of the county, city-county, city, or town, the taxation of punchboards 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.

Sec. 34   RCW 9.46.116 and 1985 c 7 s 2 are each amended to read as follows:
     The ((commission)) office, as authorized by the director, shall charge fees or increased fees on pull-tabs sold over-the-counter and on sales from punchboards and pull-tab devices at levels necessary to assure that the increased revenues are equal or greater to the amount of revenue lost by removing the special tax on coin-operated gambling devices by the 1984 repeal of RCW 9.46.115.

Sec. 35   RCW 9.46.120 and 1997 c 394 s 3 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)) director, shall take any part in the management or operation of any gambling activity authorized under this chapter unless approved by the ((commission)) director. 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)) director. 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.
     (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. 36   RCW 9.46.130 and 1981 c 139 s 10 are each amended to read as follows:
     The premises and paraphernalia, and all the books and records of any person, association or organization conducting gambling activities authorized under this chapter and any person, association or organization receiving profits therefrom or having any interest therein shall be subject to inspection and audit at any reasonable time, with or without notice, upon demand, by the ((commission)) director or ((its designee)) representatives of the director, the attorney general or his designee, the chief of the Washington state patrol or his designee or the prosecuting attorney, sheriff or director of public safety or their designees of the county wherein located, or the chief of police or his designee of any city or town in which said organization is located, for the purpose of determining compliance or noncompliance with the provisions of this chapter and any rules or regulations or local ordinances adopted pursuant thereto. A reasonable time for the purpose of this section shall be: (1) If the items or records to be inspected or audited are located anywhere upon a premises any portion of which is regularly open to the public or members and guests, then at any time when the premises are so open, or at which they are usually open; or (2) if the items or records to be inspected or audited are not located upon a premises set out in subsection (1) above, then any time between the hours of 8:00 a.m. and 9:00 p.m., Monday through Friday.
     The ((commission)) office shall be provided at such reasonable intervals as the ((commission)) director shall determine with a report, under oath, detailing all receipts and disbursements in connection with such gambling activities together with such other reasonable information as required in order to determine whether such activities comply with the purposes of this chapter or any local ordinances relating thereto.

Sec. 37   RCW 9.46.140 and 1989 c 175 s 42 are each amended to read as follows:
     (1) The ((commission)) director or ((its authorized)) representatives of the director may:
     (a) Make necessary public or private investigations within or outside of this state to determine whether any person has violated or is about to violate this chapter or any rule or order hereunder, or to aid in the enforcement of this chapter or in the prescribing of rules and forms hereunder; and
     (b) Inspect the books, documents, and records of any person lending money to or in any manner financing any license holder or applicant for a license or receiving any income or profits from the use of such license for the purpose of determining compliance or noncompliance with the provisions of this chapter or the rules and regulations adopted pursuant thereto.
     (2) For the purpose of any investigation or proceeding under this chapter, ((the commission or)) an administrative law judge appointed under chapter 34.12 RCW may conduct hearings, administer oaths or affirmations, or upon the ((commission's or)) administrative law judge's motion or upon request of any party may subpoena witnesses, compel attendance, take depositions, take evidence, or require the production of any matter which is relevant to the investigation or proceeding, including but not limited to the existence, description, nature, custody, condition, or location of any books, documents, or other tangible things, or the identity or location of persons having knowledge or relevant facts, or any other matter reasonably calculated to lead to the discovery of material evidence.
     (3) Upon failure to obey a subpoena or to answer questions propounded by the administrative law judge and upon reasonable notice to all persons affected thereby, the director may apply to the superior court for an order compelling compliance.
     (4) The administrative law judges appointed under chapter 34.12 RCW may conduct hearings respecting the suspension, revocation, or denial of licenses, who may administer oaths, admit or deny admission of evidence, compel the attendance of witnesses, issue subpoenas, issue orders, and exercise all other powers and perform all other functions set out in RCW 34.05.446, 34.05.449, and 34.05.452.
     (5) Except as otherwise provided in this chapter, all proceedings under this chapter shall be in accordance with the Administrative Procedure Act, chapter 34.05 RCW.

Sec. 38   RCW 9.46.150 and 1973 1st ex.s. c 218 s 15 are each amended to read as follows:
     (1) Any activity conducted in violation of any provision of this chapter may be enjoined in an action commenced by the ((commission)) director through the attorney general or by the prosecuting attorney or legal counsel of any city or town in which the prohibited activity may occur.
     (2) When a violation of any provision of this chapter or any rule or regulation adopted pursuant hereto has occurred on any property or premises for which one or more licenses, permits, or certificates issued by this state, or any political subdivision or public agency thereof are in effect, all such licenses, permits and certificates may be voided and no license, permit, or certificate so voided shall be issued or reissued for such property or premises for a period of up to sixty days thereafter.

Sec. 39   RCW 9.46.153 and 1981 c 139 s 14 are each amended to read as follows:
     (1) It shall be the affirmative responsibility of each applicant and licensee to establish by clear and convincing evidence the necessary qualifications for licensure of each person required to be qualified under this chapter, as well as the qualifications of the facility in which the licensed activity will be conducted;
     (2) All applicants and licensees shall consent to inspections, searches and seizures and the supplying of handwriting examples as authorized by this chapter and rules adopted hereunder;
     (3) All licensees, and persons having any interest in licensees, including but not limited to employees and agents of licensees, and other persons required to be qualified under this chapter or rules ((of the commission)) adopted by the director shall have a duty to inform ((the commission or its staff of)) any action or omission which they believe would constitute a violation of this chapter or rules adopted pursuant thereto. No person who so informs the ((commission)) director or the ((staff)) office shall be discriminated against by an applicant or licensee because of the supplying of such information;
     (4) All applicants, licensees, persons who are operators or directors thereof and persons who otherwise have a substantial interest therein shall have the continuing duty to provide any assistance or information required by the ((commission)) director or the office and to investigations conducted by the ((commission)) director or the office. If, upon issuance of a formal request to answer or produce information, evidence or testimony, any applicant, licensee or officer or director thereof or person with a substantial interest therein, refuses to comply, the applicant or licensee may be denied or revoked by the ((commission)) director;
     (5) All applicants and licensees shall waive any and all liability as to the state of Washington, its agencies, employees and agents for any damages resulting from any disclosure or publication in any manner, other than a wilfully unlawful disclosure or publication, of any information acquired by the ((commission)) director or the office during its licensing or other investigations or inquiries or hearings;
     (6) Each applicant or licensee may be photographed for investigative and identification purposes in accordance with rules ((of the commission)) adopted by the director;
     (7) An application to receive a license under this chapter or rules adopted pursuant thereto constitutes a request for determination of the applicant's and those person's with an interest in the applicant, general character, integrity and ability to engage or participate in, or be associated with, gambling or related activities impacting this state. Any written or oral statement made in the course of an official investigation, proceeding or process ((of the commission)) by ((any member,)) the director or any employee ((or agent thereof)) of the office, or by any witness, testifying under oath, which is relevant to the investigation, proceeding or process, is absolutely privileged and shall not impose any liability for slander, libel or defamation, or constitute any grounds for recovery in any civil action.

Sec. 40   RCW 9.46.158 and 1981 c 139 s 18 are each amended to read as follows:
     No applicant for a license from, nor licensee of, the ((commission)) director, nor any operator of any gambling activity, shall, without advance approval of the ((commission)) director, knowingly permit any person to participate in the management or operation of any activity for which a license from the ((commission)) director is required or which is otherwise authorized by this chapter if that person:
     (1) Has been convicted of, or forfeited bond upon a charge of, or pleaded guilty to, forgery, larceny, extortion, conspiracy to defraud, wilful failure to make required payments or reports to a governmental agency at any level, or filing false reports therewith, or of any similar offense or offenses, or of any crime, whether a felony or misdemeanor involving any gambling activity or physical harm to individuals or involving moral turpitude; or
     (2) Has violated, failed, or refused to comply with provisions, requirements, conditions, limitations or duties imposed by this chapter, and any amendments thereto, or any rules adopted by the ((commission)) director pursuant thereto, or has permitted, aided, abetted, caused, or conspired with another to cause, any person to violate any of the provisions of this chapter or rules ((of the commission)) adopted by the director.

Sec. 41   RCW 9.46.160 and 1991 c 261 s 3 are each amended to read as follows:
     Any person who conducts any activity for which a license is required by this chapter, or by rule ((of the commission)) adopted by the director, without the required license issued by the ((commission)) director shall be guilty of a class B felony. If any corporation conducts any activity for which a license is required by this chapter, or by rule ((of the commission)) adopted by the director, without the required license issued by the ((commission)) director, it may be punished by forfeiture of its corporate charter, in addition to the other penalties set forth in this section.

Sec. 42   RCW 9.46.170 and 1991 c 261 s 4 are each amended to read as follows:
     Whoever, in any application for a license or in any book or record required to be maintained by the ((commission)) director or the office or in any report required to be submitted to the ((commission)) director or the office, shall make any false or misleading statement, or make any false or misleading entry or wilfully fail to maintain or make any entry required to be maintained or made, or who wilfully refuses to produce for inspection by the ((commission, or its designee)) director or representatives of the director, any book, record, or document required to be maintained or made by federal or state law, shall be guilty of a gross misdemeanor subject to the penalty set forth in RCW 9A.20.021.

Sec. 43   RCW 9.46.198 and 1999 c 143 s 7 are each amended to read as follows:
     Any person who works as an employee or agent or in a similar capacity for another person in connection with the operation of an activity for which a license is required under this chapter or by ((commission)) rule adopted by the director without having obtained the applicable license required by the ((commission)) director under RCW 9.46.070(17) shall be guilty of a gross misdemeanor and shall, upon conviction, be punished by not more than one year in the county jail or a fine of not more than five thousand dollars, or both.

Sec. 44   RCW 9.46.210 and 2000 c 46 s 1 are each amended to read as follows:
     (1) It shall be the duty of all peace officers, law enforcement officers, and law enforcement agencies within this state to investigate, enforce, and prosecute all violations of this chapter.
     (2) In addition to the authority granted by subsection (1) of this section law enforcement agencies of cities and counties shall investigate and report to the ((commission)) director all violations of the provisions of this chapter and of the rules ((of the commission)) adopted by the director found by them and shall assist the ((commission)) director or the office in any ((of its)) investigations and proceedings respecting any such violations. Such law enforcement agencies shall not be deemed agents of the ((commission)) office or of the department of licensing.
     (3) ((In addition to its other powers and duties, the commission shall have the power to enforce the penal provisions of chapter 218, Laws of 1973 1st ex. sess. and as it may be amended, and the penal laws of this state relating to the conduct of or participation in gambling activities and the manufacturing, importation, transportation, distribution, possession, and sale of equipment or paraphernalia used or for use in connection therewith. The director, the deputy director, both assistant directors, and each of the commission's investigators, enforcement officers, and inspectors shall have the power, under the supervision of the commission, to enforce the penal provisions of chapter 218, Laws of 1973 1st ex. sess. and as it may be amended, and the penal laws of this state relating to the conduct of or participation in gambling activities and the manufacturing, importation, transportation, distribution, possession, and sale of equipment or paraphernalia used or for use in connection therewith. They shall have the power and authority to apply for and execute all warrants and serve process of law issued by the courts in enforcing the penal provisions of chapter 218, Laws of 1973 1st ex. sess. and as it may be amended, and the penal laws of this state relating to the conduct of or participation in gambling activities and the manufacturing, importation, transportation, distribution, possession, and sale of equipment or paraphernalia used or for use in connection therewith. They shall have the power to arrest without a warrant, any person or persons found in the act of violating any of the penal provisions of chapter 218, Laws of 1973 1st ex. sess. and as it may be amended, and the penal laws of this state relating to the conduct of or participation in gambling activities and the manufacturing, importation, transportation, distribution, possession, and sale of equipment or paraphernalia used or for use in connection therewith. To the extent set forth above, the commission shall be a law enforcement agency of this state with the power to investigate for violations of and to enforce the provisions of this chapter, as now law or hereafter amended, and to obtain information from and provide information to all other law enforcement agencies.
     (4))) Criminal history record information that includes nonconviction data, as defined in RCW 10.97.030, may be disseminated by a criminal justice agency to the ((Washington state gambling commission)) office for any purpose associated with the investigation for suitability for involvement in gambling activities authorized under this chapter. The ((Washington state gambling commission)) office shall only disseminate nonconviction data obtained under this section to criminal justice agencies.

Sec. 45   RCW 9.46.215 and 2003 c 53 s 35 are each amended to read as follows:
     (1) Whoever knowingly owns, manufactures, possesses, buys, sells, rents, leases, finances, holds a security interest in, stores, repairs, or transports any gambling device or offers or solicits any interest therein, whether through an agent or employee or otherwise, is guilty of a class C felony and shall be fined not more than one hundred thousand dollars or imprisoned not more than five years or both.
     (2) This section does not apply to persons licensed by the ((commission)) director, or who are otherwise authorized by this chapter, or by ((commission)) rule adopted by the director, to conduct gambling activities without a license, respecting devices that are to be used, or are being used, solely in that activity for which the license was issued, or for which the person has been otherwise authorized if:
     (a) The person is acting in conformance with this chapter and the rules adopted under this chapter; and
     (b) The devices are a type and kind traditionally and usually employed in connection with the particular activity.
     (3) This section also does not apply to any act or acts by the persons in furtherance of the activity for which the license was issued, or for which the person is authorized, when the activity is conducted in compliance with this chapter and in accordance with the rules adopted under this chapter.
     (4) In the enforcement of this section direct possession of any such a gambling device is presumed to be knowing possession thereof.

Sec. 46   RCW 9.46.220 and 1997 c 78 s 2 are each amended to read as follows:
     (1) A person is guilty of professional gambling in the first degree if he or she engages in, or knowingly causes, aids, abets, or conspires with another to engage in professional gambling as defined in this chapter, and:
     (a) Acts in concert with or conspires with five or more people; or
     (b) Personally accepts wagers exceeding five thousand dollars during any thirty-day period on future contingent events; or
     (c) The operation for whom the person works, or with which the person is involved, accepts wagers exceeding five thousand dollars during any thirty-day period on future contingent events; or
     (d) Operates, manages, or profits from the operation of a premises or location where persons are charged a fee to participate in card games, lotteries, or other gambling activities that are not authorized by this chapter or licensed by the ((commission)) director.
     (2) However, this section shall not apply to those activities enumerated in RCW 9.46.0305 through 9.46.0361 or to any act or acts in furtherance of such activities when conducted in compliance with the provisions of this chapter and in accordance with the rules adopted pursuant to this chapter.
     (3) Professional gambling in the first degree is a class B felony subject to the penalty set forth in RCW 9A.20.021.

Sec. 47   RCW 9.46.225 and 1987 c 4 s 37 are each amended to read as follows:
     The penalties provided for professional gambling in this chapter shall not apply to the activities authorized by this chapter when conducted in compliance with the provisions of this chapter and in accordance with the rules and regulations ((of the commission)) adopted by the director.

Sec. 48   RCW 9.46.231 and 2008 c 6 s 629 are each amended to read as follows:
     (1) The following are subject to seizure and forfeiture and no property right exists in them:
     (a) All gambling devices as defined in this chapter;
     (b) All furnishings, fixtures, equipment, and stock, including without limitation furnishings and fixtures adaptable to nongambling uses and equipment and stock for printing, recording, computing, transporting, or safekeeping, used in connection with professional gambling or maintaining a gambling premises;
     (c) All conveyances, including aircraft, vehicles, or vessels, that are used, or intended for use, in any manner to facilitate the sale, delivery, receipt, or operation of any gambling device, or the promotion or operation of a professional gambling activity, except that:
     (i) A conveyance used by any person as a common carrier in the transaction of business as a common carrier is not subject to forfeiture under this section unless it appears that the owner or other person in charge of the conveyance is a consenting party or privy to a violation of this chapter;
     (ii) A conveyance is not subject to forfeiture under this section by reason of any act or omission established by the owner thereof to have been committed or omitted without the owner's knowledge or consent;
     (iii) A forfeiture of a conveyance encumbered by a bona fide security interest is subject to the interest of the secured party if the secured party neither had knowledge of nor consented to the act or omission; and
     (iv) If the owner of a conveyance has been arrested under this chapter the conveyance in which the person is arrested may not be subject to forfeiture unless it is seized or process is issued for its seizure within ten days of the owner's arrest;
     (d) All books, records, and research products and materials, including formulas, microfilm, tapes, and electronic data that are used, or intended for use, in violation of this chapter;
     (e) All moneys, negotiable instruments, securities, or other tangible or intangible property of value at stake or displayed in or in connection with professional gambling activity or furnished or intended to be furnished by any person to facilitate the promotion or operation of a professional gambling activity;
     (f) All tangible or intangible personal property, proceeds, or assets acquired in whole or in part with proceeds traceable to professional gambling activity and all moneys, negotiable instruments, and securities used or intended to be used to facilitate any violation of this chapter. A forfeiture of money, negotiable instruments, securities, or other tangible or intangible property encumbered by a bona fide security interest is subject to the interest of the secured party if, at the time the security interest was created, the secured party neither had knowledge of nor consented to the act or omission. Personal property may not be forfeited under this subsection (1)(f), to the extent of the interest of an owner, by reason of any act or omission that that owner establishes was committed or omitted without the owner's knowledge or consent; and
     (g) All real property, including any right, title, and interest in the whole of any lot or tract of land, and any appurtenances or improvements that:
     (i) Have been used with the knowledge of the owner for the manufacturing, processing, delivery, importing, or exporting of any illegal gambling equipment, or operation of a professional gambling activity that would constitute a felony violation of this chapter; or
     (ii) Have been acquired in whole or in part with proceeds traceable to a professional gambling activity, if the activity is not less than a class C felony.
     Real property forfeited under this chapter that is encumbered by a bona fide security interest remains subject to the interest of the secured party if the secured party, at the time the security interest was created, neither had knowledge of nor consented to the act or omission. Property may not be forfeited under this subsection, to the extent of the interest of an owner, by reason of any act or omission committed or omitted without the owner's knowledge or consent.
     (2)(a) A law enforcement officer of this state may seize real or personal property subject to forfeiture under this chapter upon process issued by any superior court having jurisdiction over the property. Seizure of real property includes the filing of a lis pendens by the seizing agency. Real property seized under this section may not be transferred or otherwise conveyed until ninety days after seizure or until a judgment of forfeiture is entered, whichever is later, but real property seized under this section may be transferred or conveyed to any person or entity who acquires title by foreclosure or deed in lieu of foreclosure of a bona fide security interest.
     (b) Seizure of personal property without process may be made if:
     (i) The seizure is incident to an arrest or a search under a search warrant or an inspection under an administrative inspection warrant;
     (ii) The property subject to seizure has been the subject of a prior judgment in favor of the state in a criminal injunction or forfeiture proceeding based upon this chapter;
     (iii) A law enforcement officer has probable cause to believe that the property is directly or indirectly dangerous to health or safety; or
     (iv) The law enforcement officer has probable cause to believe that the property was used or is intended to be used in violation of this chapter.
     (3) In the event of seizure under subsection (2) of this section, proceedings for forfeiture are deemed commenced by the seizure. The law enforcement agency under whose authority the seizure was made shall cause notice to be served within fifteen days following the seizure on the owner of the property seized and the person in charge thereof and any person having any known right or interest therein, including any community property interest, of the seizure and intended forfeiture of the seized property. Service of notice of seizure of real property must be made according to the rules of civil procedure. However, the state may not obtain a default judgment with respect to real property against a party who is served by substituted service absent an affidavit stating that a good faith effort has been made to ascertain if the defaulted party is incarcerated within the state, and that there is no present basis to believe that the party is incarcerated within the state. Notice of seizure in the case of property subject to a security interest that has been perfected by filing a financing statement in accordance with chapter 62A.9A RCW, or a certificate of title, must be made by service upon the secured party or the secured party's assignee at the address shown on the financing statement or the certificate of title. The notice of seizure in other cases may be served by any method authorized by law or court rule including but not limited to service by certified mail with return receipt requested. Service by mail is deemed complete upon mailing within the fifteen-day period following the seizure.
     (4) If no person notifies the seizing law enforcement agency in writing of the person's claim of ownership or right to possession of items specified in subsection (1) of this section within forty-five days of the seizure in the case of personal property and ninety days in the case of real property, the item seized is deemed forfeited. The community property interest in real property of a person whose spouse or domestic partner committed a violation giving rise to seizure of the real property may not be forfeited if the person did not participate in the violation.
     (5) If any person notifies the seizing law enforcement agency in writing of the person's claim of ownership or right to possession of items specified in subsection (1) of this section within forty-five days of the seizure in the case of personal property and ninety days in the case of real property, the person or persons must be afforded a reasonable opportunity to be heard as to the claim or right. The hearing must be before the chief law enforcement officer of the seizing agency or the chief law enforcement officer's designee, except if the seizing agency is a state agency as defined in RCW 34.12.020(4), the hearing must be before the chief law enforcement officer of the seizing agency or an administrative law judge appointed under chapter 34.12 RCW, except that any person asserting a claim or right may remove the matter to a court of competent jurisdiction. Removal of any matter involving personal property may only be accomplished according to the rules of civil procedure. The person seeking removal of the matter must serve process against the state, county, political subdivision, or municipality that operates the seizing agency, and any other party of interest, in accordance with RCW 4.28.080 or 4.92.020, within forty-five days after the person seeking removal has notified the seizing law enforcement agency of the person's claim of ownership or right to possession. The court to which the matter is to be removed must be the district court if the aggregate value of personal property is within the jurisdictional limit set forth in RCW 3.66.020. A hearing before the seizing agency and any appeal therefrom must be under Title 34 RCW. In a court hearing between two or more claimants to the article or articles involved, the prevailing party is entitled to a judgment for costs and reasonable attorneys' fees. In cases involving personal property, the burden of producing evidence is upon the person claiming to be the lawful owner or the person claiming to have the lawful right to possession of the property. In cases involving property seized under subsection (1)(a) of this section, the only issues to be determined by the tribunal are whether the item seized is a gambling device, and whether the device is an antique device as defined by RCW 9.46.235. In cases involving real property, the burden of producing evidence is upon the law enforcement agency. The burden of proof that the seized real property is subject to forfeiture is upon the law enforcement agency. The seizing law enforcement agency shall promptly return the article or articles to the claimant upon a final determination by the administrative law judge or court that the claimant is the present lawful owner or is lawfully entitled to possession thereof of items specified in subsection (1) of this section.
     (6) If property is forfeited under this chapter the seizing law enforcement agency may:
     (a) Retain it for official use or upon application by any law enforcement agency of this state release the property to the agency for training or use in enforcing this chapter;
     (b) Sell that which is not required to be destroyed by law and which is not harmful to the public; or
     (c) Destroy any articles that may not be lawfully possessed within the state of Washington, or that have a fair market value of less than one hundred dollars.
     (7)(a) If property is forfeited, the seizing agency shall keep a record indicating the identity of the prior owner, if known, a description of the property, the disposition of the property, the value of the property at the time of seizure, and the amount of proceeds realized from disposition of the property. The net proceeds of forfeited property is the value of the forfeitable interest in the property after deducting the cost of satisfying any bona fide security interest to which the property is subject at the time of seizure, and in the case of sold property, after deducting the cost of sale, including reasonable fees or commissions paid to independent selling agents.
     (b) Each seizing agency shall retain records of forfeited property for at least seven years.
     (8) The seizing law enforcement agency shall retain forfeited property and net proceeds exclusively for the expansion and improvement of gambling-related law enforcement activity. Money retained under this section may not be used to supplant preexisting funding sources.
     (9) Gambling devices that are possessed, transferred, sold, or offered for sale in violation of this chapter are contraband and must be seized and summarily forfeited to the state. Gambling equipment that is seized or comes into the possession of a law enforcement agency, the owners of which are unknown, are contraband and must be summarily forfeited to the state.
     (10) Upon the entry of an order of forfeiture of real property, the court shall forward a copy of the order to the assessor of the county in which the property is located. The superior court shall enter orders for the forfeiture of real property, subject to court rules. The seizing agency shall file such an order in the county auditor's records in the county in which the real property is located.
     (11)(a) A landlord may assert a claim against proceeds from the sale of assets seized and forfeited under subsection (6)(b) of this section, only if:
     (i) A law enforcement officer, while acting in his or her official capacity, directly caused damage to the complaining landlord's property while executing a search of a tenant's residence; and
     (ii) The landlord has applied any funds remaining in the tenant's deposit, to which the landlord has a right under chapter 59.18 RCW, to cover the damage directly caused by a law enforcement officer before asserting a claim under this section.
     (A) Only if the funds applied under (a)(ii) of this subsection are insufficient to satisfy the damage directly caused by a law enforcement officer, may the landlord seek compensation for the damage by filing a claim against the governmental entity under whose authority the law enforcement agency operates within thirty days after the search; and
     (B) Only if the governmental entity denies or fails to respond to the landlord's claim within sixty days of the date of filing, may the landlord collect damages under this subsection by filing within thirty days of denial or the expiration of the sixty-day period, whichever occurs first, a claim with the seizing law enforcement agency. The seizing law enforcement agency shall notify the landlord of the status of the claim by the end of the thirty-day period. This section does not require the claim to be paid by the end of the sixty-day or thirty-day period.
     (b) For any claim filed under (a)(ii) of this subsection, the law enforcement agency shall pay the claim unless the agency provides substantial proof that the landlord either:
     (i) Knew or consented to actions of the tenant in violation of this chapter; or
     (ii) Failed to respond to a notification of the illegal activity, provided by a law enforcement agency within seven days of receipt of notification of the illegal activity.
     (12) The landlord's claim for damages under subsection (11) of this section may not include a claim for loss of business and is limited to:
     (a) Damage to tangible property and clean-up costs;
     (b) The lesser of the cost of repair or fair market value of the damage directly caused by a law enforcement officer;
     (c) The proceeds from the sale of the specific tenant's property seized and forfeited under subsection (6)(b) of this section; and
     (d) The proceeds available after the seizing law enforcement agency satisfies any bona fide security interest in the tenant's property and costs related to sale of the tenant's property as provided by subsection (7)(a) of this section.
     (13) Subsections (11) and (12) of this section do not limit any other rights a landlord may have against a tenant to collect for damages. However, if a law enforcement agency satisfies a landlord's claim under subsection (11) of this section, the rights the landlord has against the tenant for damages directly caused by a law enforcement officer under the terms of the landlord and tenant's contract are subrogated to the law enforcement agency.
     (14) Liability is not imposed by this section upon any authorized state, county, or municipal officer, including ((a commission special agent)) employees of the office, in the lawful performance of his or her duties.

Sec. 49   RCW 9.46.250 and 1987 c 4 s 45 are each amended to read as follows:
     (1) All gambling premises are common nuisances and shall be subject to abatement by injunction or as otherwise provided by law. The plaintiff in any action brought under this subsection against any gambling premises, need not show special injury and may, in the discretion of the court, be relieved of all requirements as to giving security.
     (2) When any property or premise held under a mortgage, contract or leasehold is determined by a court having jurisdiction to be a gambling premises, all rights and interests of the holder therein shall terminate and the owner shall be entitled to immediate possession at his election: PROVIDED, HOWEVER, That this subsection shall not apply to those premises in which activities authorized by this chapter or any act or acts in furtherance thereof are carried on when conducted in compliance with the provisions of this chapter and in accordance with the rules and regulations adopted pursuant thereto.
     (3) When any property or premises for which one or more licenses issued by the ((commission)) director are in effect, is determined by a court having jurisdiction to be a gambling premise, all such licenses may be voided and no longer in effect, and no license so voided shall be issued or reissued for such property or premises for a period of up to sixty days thereafter. Enforcement of this subsection shall be the duty of all peace officers and all taxing and licensing officials of this state and its political subdivisions and other public agencies. This subsection shall not apply to property or premises in which activities authorized by this chapter, or any act or acts in furtherance thereof, are carried on when conducted in compliance with the provisions of this chapter and in accordance with the rules and regulations adopted pursuant thereto.

Sec. 50   RCW 9.46.285 and 1973 2nd ex.s. c 41 s 8 are each amended to read as follows:
     This chapter and chapter 43.24 RCW constitute((s)) the exclusive legislative authority for the licensing and regulation of any gambling activity and the state preempts such licensing and regulatory functions, except as to the powers and duties of any city, town, city-county, or county which are specifically set forth in this chapter. Any ordinance, resolution, or other legislative act by any city, town, city-county, or county relating to gambling in existence on September 27, 1973 shall be as of that date null and void and of no effect. Any such city, town, city-county, or county may thereafter enact only such local law as is consistent with the powers and duties expressly granted to and imposed upon it by this chapter ((9.46 RCW)) and which is not in conflict with ((that)) this chapter or with the rules ((of the commission)) adopted by the director.

Sec. 51   RCW 9.46.293 and 1989 c 8 s 1 are each amended to read as follows:
     Any fishing derby, defined under RCW 9.46.0229, shall not be subject to any other provisions of this chapter or to any rules or regulations ((of the commission)) adopted by the director.

Sec. 52   RCW 9.46.300 and 1977 ex.s. c 326 s 17 are each amended to read as follows:
     All applications for licenses made to the ((commission)) director, with the exception of any portions of the applications describing the arrest or conviction record of any person, and all reports required by the ((commission)) director or representatives of the director to be filed by its licensees on a periodic basis concerning the operation of the licensed activity or concerning any organization, association, or business in connection with which a licensed activity is operated, in the ((commission)) office files, shall be open to public inspection at the ((commission's offices)) office upon a prior written request of the ((commission)) director. The staff of the ((commission)) office may decline to allow an inspection until such time as the inspection will not unduly interfere with the other duties of the staff. The ((commission)) director or representatives of the director may charge the person making a request for an inspection an amount necessary to offset the costs to the ((commission)) office of providing the inspection and copies of any requested documents.

Sec. 53   RCW 9.46.310 and 1981 c 139 s 13 are each amended to read as follows:
     No person shall manufacture, and no person shall sell, distribute, furnish or supply to any other person, any gambling device, including but not limited to punchboards and pull-tabs, in this state, or for use within this state, without first obtaining a license to do so from the ((commission)) director under the provisions of this chapter.
     Such licenses shall not be issued by the ((commission)) director except respecting devices which are designed and permitted for use in connection with activities authorized under this chapter((: PROVIDED, That)). However, this requirement for licensure shall apply only insofar as the ((commission)) director has adopted, or may adopt, rules implementing it as to particular categories of gambling devices and related equipment.

Sec. 54   RCW 9.46.350 and 1981 c 139 s 16 are each amended to read as follows:
     At any time within five years after any amount of fees, interest, penalties, or tax which is imposed pursuant to this chapter, or rules adopted pursuant thereto, shall become due and payable, the attorney general, on behalf of the ((commission)) director, may bring a civil action in the courts of this state, or any other state, or of the United States, to collect the amount delinquent, together with penalties and interest((: PROVIDED, That)). However, where the tax is one imposed by a county, city or town under RCW 9.46.110, any such action shall be brought by that county, city or town on its own behalf. An action may be brought whether or not the person owing the amount is at such time a licensee pursuant to the provisions of this chapter.
     If such an action is brought in the courts of this state, a writ of attachment may be issued and no bond or affidavit prior to the issuance thereof shall be required. In all actions in this state, the records of the ((commission)) director, or the appropriate county, city or town, shall be prima facie evidence of the determination of the tax due or the amount of the delinquency.

Sec. 55   RCW 9.46.360 and 1992 c 172 s 2 are each amended to read as follows:
     (1) The negotiation process for compacts with federally recognized Indian tribes for conducting class III gaming, as defined in the Indian Gaming Regulatory Act, 25 U.S.C. Sec. 2701 et seq., on federal Indian lands is governed by this section.
     (2) In addition to the powers and duties granted under RCW 43.24.016, the ((gambling commission through the)) director or the director's designee shall negotiate compacts for class III gaming on behalf of the state with federally recognized Indian tribes in the state of Washington.
     (3) When a tentative agreement with an Indian tribe on a proposed compact is reached, the director shall immediately transmit a copy of the proposed compact ((to all voting and ex officio members of the gambling commission and to the standing committees designated pursuant to subsection (5) of this section.
     (4) Notwithstanding RCW 9.46.040, the four ex officio members of the gambling commission shall be deemed voting members of the gambling commission for the sole purpose of voting on proposed compacts submitted under this section)) to the legislature.
     (((5))) (4) Within thirty days after receiving a proposed compact from the director, one standing committee from each house of the legislature shall hold a public hearing on the proposed compact and forward its respective comments to the ((gambling commission)) director and assistant director. The president of the senate shall designate the senate standing committee that is to carry out the duties of this section, and the speaker of the house of representatives shall designate the house standing committee that is to carry out the duties of this section. The designated committees shall continue to perform under this section until the president of the senate or the speaker of the house of representatives, as the case may be, designates a different standing committee.
     (((6) The gambling commission may hold public hearings on the proposed compact any time after receiving a copy of the compact from the director. Within forty-five days after receiving the proposed compact from the director, the gambling commission, including the four ex officio members, shall vote on whether to return the proposed compact to the director with instructions for further negotiation or to forward the proposed compact to the governor for review and final execution.
     (7))) (5) Notwithstanding provisions in this section to the contrary, if the director forwards a proposed compact to ((the gambling commission and)) the designated standing committees within ten days before the beginning of a regular session of the legislature, or during a regular or special session of the legislature, the thirty-day time limit set forth in subsection (((5))) (4) of this section ((and the forty-five day limit set forth in subsection (6) of this section are each)) is forty-five days ((and sixty days, respectively)).
     (((8))) (6) Funding for the negotiation process under this section must come from the department of licensing gambling revolving fund.
     (((9))) (7) In addition to the powers granted under this chapter, the ((commission)) director, consistent with the terms of any compact, is authorized and empowered to enforce the provisions of any compact between a federally recognized Indian tribe and the state of Washington.

Sec. 56   RCW 9.46.420 and 2002 c 252 s 3 are each amended to read as follows:
     The ((commission)) director shall consider the provisions of RCW 9.46.410 as elements to be negotiated with federally recognized Indian tribes as provided in RCW 9.46.360.

Sec. 57   RCW 43.24.016 and 1999 c 240 s 4 are each amended to read as follows:
     (1) The director of licensing shall supervise and administer the activities of the department of licensing and shall advise the governor and the legislature with respect to matters under the jurisdiction of the department.
     (2) In addition to other powers and duties granted to the director, the director has the following powers and duties:
     (a) Enter into contracts on behalf of the state to carry out the responsibilities of the department;
     (b) Accept and expend gifts and grants, whether such grants be of federal or other funds;
     (c) Appoint a deputy director and such assistant directors, special assistants, and administrators as may be needed to administer the department. These employees are exempt from the provisions of chapter 41.06 RCW;
     (d) Adopt rules in accordance with chapter 34.05 RCW and perform all other functions necessary to carry out the responsibilities of the department;
     (e) Delegate powers, duties, and functions as the director deems necessary for efficient administration, but the director is responsible for the official acts of the officers and employees of the department; ((and))
     (f) Negotiate compacts for class III gaming on behalf of the state with federally recognized Indian tribes in the state of Washington under RCW 9.46.360;
     (g) Administer the provisions of chapter 9.46 RCW to license and regulate gambling; and
     (h) Perform other duties as are necessary and consistent with law.
     (3) The director may establish advisory groups as may be necessary to carry out the responsibilities of the department.
     (4) The internal affairs of the department shall be under the control of the director in order that the director may manage the department in a flexible and intelligent manner as dictated by changing contemporary circumstances. Unless specifically limited by law, the director shall have complete charge and supervisory powers over the department. The director may create such administrative structures as the director deems appropriate, except as otherwise specified by law, and the director may employ such personnel as may be necessary in accordance with chapter 41.06 RCW, except as otherwise provided by law.

Sec. 58   RCW 43.24.020 and 1999 c 240 s 1 are each amended to read as follows:
     In addition to other powers and duties granted to the department, the director of licensing shall administer all laws with respect to the examination of applicants for, and the issuance of, licenses to persons to engage in any business, profession, trade, occupation, or activity (including gambling activity), except for health professions.

Sec. 59   RCW 43.24.030 and 1965 c 8 s 43.24.030 are each amended to read as follows:
     The word "license" shall be construed to mean and include license, certificate of registration, certificate of qualification, certificate of competency, certificate of authority, and any other instrument, by whatever name designated, authorizing the practice of a profession or calling, the carrying on of a business or occupation, the conducting of gambling activities, or the doing of any act required by law to be authorized by the state.

Sec. 60   RCW 43.24.086 and 1999 c 240 s 2 are each amended to read as follows:
     It shall be the policy of the state of Washington that the cost of each professional, occupational(([,])), gambling activity, or business licensing program be fully borne by the members of that profession, occupation(([,])), gambling activity, or business. The director of licensing shall from time to time establish the amount of all application fees, license fees, registration fees, examination fees, permit fees, renewal fees, and any other fee associated with licensing or regulation of professions, occupations(([,])), gambling activities, or businesses, except for health professions, administered by the department of licensing. In fixing said fees, the director shall set the fees for each such program at a sufficient level to defray the costs of administering that program. All such fees shall be fixed by rule adopted by the director in accordance with the provisions of the administrative procedure act, chapter 34.05 RCW.

Sec. 61   RCW 43.24.120 and 1997 c 58 s 868 are each amended to read as follows:
     Except as provided in RCW 43.24.112 and chapter 9.46 RCW, any person feeling aggrieved by the refusal of the director to issue a license, or to renew one, or by the revocation or suspension of a license shall have a right of appeal to superior court from the decision of the director of licensing, which shall be taken, prosecuted, heard, and determined in the manner provided in chapter 34.05 RCW.
     The decision of the superior court may be reviewed by the supreme court or the court of appeals in the same manner as other civil cases.

NEW SECTION.  Sec. 62   RCW 9.46.050 (Gambling commission--Chairman -- Quorum -- Meetings -- Compensation and travel expenses -- Bond--Removal) and 1984 c 287 s 9, 1975-'76 2nd ex.s. c 34 s 7, & 1973 1st ex.s. c 218 s 5 are each repealed.