WSR 97-09-076

PROPOSED RULES

GAMBLING COMMISSION

[Filed April 22, 1997, 11:24 a.m.]

Original Notice.

Preproposal statement of inquiry was filed as WSR 96-11-125.

Title of Rule: Bingo net income variance procedures, WAC 230-04-190, 230-04-260, 230-20-060, 230-20-062, 230-50-010, 230-50-012, and 230-20-242. WSR 96-11-125 (CR-101).

Purpose: These rules establish bingo net income variance procedures.

Statutory Authority for Adoption: RCW 9.46.070 (1), (2), (10), (16), chapter 34.05 RCW.

Statute Being Implemented: See above.

Summary: Bingo net income variance rules.

Amendatory section WAC 230-04-190 Issuance of license--Expiration--Restrictions. Purpose: This amendment clarifies that a license is valid for either one year or for the level of gross gambling receipts applicable to that license class.

Amendatory section WAC 230-04-260 Effect of exceeding license class income limit. Purpose: This amendment clarifies the procedures that apply when a license will exceed the gross gambling receipts allowed for their class of license. The amendment further states that bingo licensees whose licenses have previously been limited must prove they are capable of meeting the net return requirements for the higher license class before they will be upgraded to that class of license. It also provides that certain licensees who fail to apply for an upgrade and who exceed their license class will have their license summarily suspended.

Amendatory section WAC 230-20-060 Petitioning the director for a variance from net return requirements. Purpose: This amendment clarifies the process for petitioning the director a variance from net return requirements. All petitions will be heard in a brief adjudicative proceeding to ensure due process requirements are met. The rule also allows the director to grant a general variance applicable to all bingo licensees affected by certain conditions (e.g. weather).

Amendatory section WAC 230-20-062 Minimum net return from bingo games--Sanctions. Purpose: This amendment clarifies that when a bingo licensee's license has been limited, the licensee may petition for review to the commission and the commission will conduct its review consistent with the procedures set forth in the Administrative Procedure Act.

Amendatory section WAC 230-50-010 Adjudicated proceedings--Hearings. Purpose: This amendment provides that the brief adjudicative proceedings will be used in denials of application to operate at a higher bingo license class and petition for variances from net return requirements.

Amendatory section WAC 230-50-012 Summary suspensions. Purpose: This amendment provides that a charitable or nonprofit organization that is found to be primarily operating bingo for gambling purposes and uses program funds to subsidize the gambling activity constitutes an immediate danger to the public safety and welfare. Such a finding may result in a summary suspension of gambling activities.

Amendatory section WAC 230-20-242 Activities conducted as a part of bingo games--Authorization--Restrictions. Purpose: This amendment will allow net income from raffles conducted at bingo games to be included in net return from bingo.

Name of Agency Personnel Responsible for Drafting: Soojin Kim, Lacey, (360) 438-7654, ext. 310; Implementation: Frank Miller, Lacey, (360) 438-7654, ext. 302; and Enforcement: Ben Bishop, Lacey, (360) 438-7654, ext. 370.

Name of Proponent: Staff, in conjunction with representatives from charitable and nonprofit organizations, private.

Rule is not necessitated by federal law, federal or state court decision.

Explanation of Rule, its Purpose, and Anticipated Effects: See Purpose and Summary above.

Proposal Changes the Following Existing Rules: See Purpose and Summary above.

No small business economic impact statement has been prepared under chapter 19.85 RCW. Proposal is exempt under RCW 19.85.025(2); therefore, a small business economic impact is not required.

Section 201, chapter 403, Laws of 1995, does not apply to this rule adoption. This agency does not choose to make section 201, chapter 403, Laws of 1995, apply to this rule adoption.

Hearing Location: Red Lion City Center, 322 North Spokane Falls Court, Spokane, WA 99201, on June 13, 1997, at 10:00 a.m.

Assistance for Persons with Disabilities: Contact Susan Green by June 1, 1997, TDD (360) 438-7638, or (360) 438-7654, ext. 302.

Submit Written Comments to: Soojin Kim, Mailstop 42400, Olympia, WA 98504-2400, FAX (360) 438-8652, by May 30, 1997.

Date of Intended Adoption: June 13, 1997.

April 21, 1997

Soojin Kim

Rules and Policy Coordinator

Reviser's note: The material contained in this filing exceeded the page-count limitations of WAC 1-21-040 for appearance in this issue of the Register. It will appear in the 97-10 issue of the Register.

Legislature Code Reviser

Register

Washington State Code Reviser's Office