WSR 01-02-040

PROPOSED RULES

GAMBLING COMMISSION


[ Filed December 27, 2000, 4:18 p.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 00-23-079 with a published date of December 6, 2000.

Title of Rule: Amendatory sections WAC 230-04-202 Fees -- Bona fide charitable/nonprofit organizations, 230-04-203 Fees -- Commercial stimulant and other business organizations, and 230-04-204 Fees -- Individuals.

Purpose: In December 1999, the commission adopted fee increases for licensees under WSR 99-24-099. In November 2000, I-722 passed by a public vote, however, it has been challenged and is currently under review. Because of this, there is a cloud of uncertainty regarding the proper amount licensing fees should be set at. It is felt this is confusing for licensees; therefore, this filing is being made to readopt the licensing fee amounts established with the filing of WSR 99-24-099.

Statutory Authority for Adoption: RCW 9.46.070.

Summary: See Purpose above.

Name of Agency Personnel Responsible for Drafting: Susan Arland, Lacey, (360) 438-7654 ext. 374; Implementation: Ben Bishop, Lacey, (360) 438-7640; Enforcement: Bob Berg, Lacey, (360) 438-7654 ext. 348.

Name of Proponent: Staff, governmental.

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

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

Proposal Changes the Following Existing Rules: See Purpose 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 statement 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: Cavanaughs at Capitol Lake, 2300 Evergreen Park Drive S.W., Olympia, WA 98502, phone (360) 943-4000, on February 9, 2001, at 9:30 a.m.

Assistance for Persons with Disabilities: Contact Shirley Corbett by February 1, 2001, TDD (360) 438-7638, or (360) 438-7654 ext. 302.

Submit Written Comments to: Susan Arland, Mailstop 42400, Olympia, Washington 98504-2400, fax (360) 438-8652, by February 1, 2001.

Date of Intended Adoption: February 9, 2001.

December 27, 2000

Susan Arland

Rules Coordinator

OTS-4282.1


AMENDATORY SECTION(Amending Order 377, filed 11/30/99, effective 12/31/99)

WAC 230-04-202   Fees--Bona fide charitable/nonprofit organizations.   Bona fide charitable and nonprofit organizations shall submit the following fees to the commission when applying for gambling licenses, permits, miscellaneous changes, inspection services, or when assessed the cost of special investigation procedures by the commission:

LICENSE TYPE DEFINITION FEE
1. AMUSEMENT GAMES (Fee based on annual gross gambling receipts)
* Class A Premises only $ 53
Class B Up to $ 10,000 $ 53
Class C Up to $ 25,000 $ 285
Class D Up to $ 50,000 $ 457
Class E Over $ 50,000 $ 797

* Allows a charitable or nonprofit organization to enter into a contract with Class "B" or above commercial amusement game licensee to locate and operate amusement games on their premises.

2. BINGO GROUP
(Fee based on annual gross

gambling receipts)

 VARIANCE *
Class A Up to $ 15,000 $ 1,000 $ 53
Class B Up to $ 50,000 $ 1,000 $ 166
Class C Up to $ 100,000 $ 2,000 $ 339
Class D Up to $ 250,000 $ 4,000 $ 915
Class E Up to $ 500,000 $ 8,000 $ 1,541
Class F Up to $ 1,000,000 $ 15,000 $ 3,095
Class G Up to $ 1,500,000 $ 23,000 $ 4,467
Class H Up to $ 2,000,000 $ 30,000 $ 5,967
Class I Up to $ 2,500,000 $ 38,000 $ 7,455
Class J Up to $ 3,000,000 $ 45,000 $ 8,945
Class K Up to $ 3,500,000 $ 53,000 $ 10,034
Class L Up to $ 4,000,000 $ 60,000 $ 11,470
Class M and above Over $ 4,000,000 Not

applicable

 12,906
* A licensee will be allowed a one-time variance for each license class without having to upgrade or pay the penalties set forth in WAC 230-04-260: Provided, That a licensee utilizing the variance shall be required to upgrade to the higher license class upon renewal.

3. CARD GAMES
Class A General (Fee to play charged) $ 571
Class B Limited card games - hearts, rummy, ((mahjongg,)) pitch, pinochle, and cribbage (Fee to play charged) $ 166
Class C Tournament only - no more than ten consecutive days per tournament $

53
Class D General (No fee to play charged) $

53

4. FUND-RAISING EVENT
Class A One event - not more than 24 consecutive hours

$

339
Class B One event - not more than 72 consecutive hours $

571
Class C Additional participant in joint event (not lead organization) $

166
Class D Fund-Raising Event Equipment Distributor - rents or leases, equipment for fund-raising event or recreational gaming activity for no more than ten times per year* $

226
Class E Fund-Raising Event Equipment Distributor - rents or leases equipment for fund-raising event or recreational gaming activity more than ten times per year. $

571
* Charitable and nonprofit organizations licensed to conduct fund-raising events may rent their equipment up to four occasions during the term of the license without getting licensed as a distributor.

5. PUNCH BOARDS/PULL-TABS
(Fee based on annual gross

gambling receipts)

 VARIANCE*
Class A Up to $ 50,000 $ 5,000 $ 544
Class B Up to $ 100,000 $ 5,000 $ 971
Class C Up to $ 200,000 $ 10,000 $ 1,832
Class D Up to $ 300,000 $ 10,000 $ 2,663
Class E Up to $ 400,000 $ 10,000 $ 3,440
Class F Up to $ 500,000 $ 10,000 $ 4,153
Class G Up to $ 600,000 $ 10,000 $ 4,812
Class H Up to $ 700,000 $ 10,000 $ 5,416
Class I Up to $ 800,000 $ 10,000 $ 5,967
Class J Up to $ 1,000,000 $ 20,000 $ 6,765
Class K Up to $ 1,250,000 $ 25,000 $ 7,509
Class L Up to $ 1,500,000 $ 25,000 $ 8,201
Class M .Up to $ 1,750,000 $ 25,000 $ 8,771
Class N Up to $ 2,000,000 $ 25,000 $ 9,290
Class O Over $ 2,000,000 Non-

applicable

 $ 10,208
* A licensee will be allowed a one-time variance for each license class without having to upgrade or pay the penalties set forth in WAC 230-04-260: Provided, That a licensee utilizing the variance shall be required to upgrade to the higher license class upon renewal.

6. RAFFLES
(Fee based on annual gross

gambling receipts)
Class A Up to $ 5,000 $ 53
Class B Up to $ 10,000 $ 166
Class C Up to $ 25,000 $ 339
Class D Up to $ 50,000 $ 571
Class E Up to $ 75,000 $ 915
Class F Over $ 75,000 $ 1,370

7. COMBINATION LICENSE
CLASS A Allows gross gambling receipts of up to $25,000 from bingo, $7,500 from raffles, and $7,500 from amusement games, not to exceed $30,000 combined gross gambling receipts from all such activities. Allows general card games where no fee to play is charged. $

103
CLASS B Allows gross gambling receipts of up to $60,000 from bingo, $15,000 from raffles, and $15,000 from amusement games, not to exceed $75,000 combined gross gambling receipts from all such activities. Allows general card games where no fee to play is charged. $

268
CLASS C Allows gross gambling receipts of up to $125,000 from bingo, $30,000 from raffles, and $30,000 from amusement games, not to exceed $150,000 combined gross gambling receipts from all such activities. Allows general card games where no fee to play is charged.
 $

619

8. SEPARATE PREMISES
BINGO Per occasion

(see WAC 230-04-300)
$

26

9. PERMITS
AGRICULTURAL

FAIR-BINGO

 (See WAC 230-04-191) $ 26
RECREATIONAL

GAMING ACTIVITY

(RGA)

 (See WAC 230-25-330

and 230-02-505)

 $ 53

10. CHANGES
NAME (See WAC 230-04-310) $ 26
LOCATION (See WAC 230-04-320) $ 26
FRE (Date or time)

(See WAC 230-04-325)

$

26
LICENSE CLASS (See WAC 230-04-260) $ 26
DUPLICATE (See WAC 230-04-290) $ 26
LICENSE

11. SPECIAL FEES
INVESTIGATION (See WAC 230-04-240) As required
REPLACEMENT (See WAC 230-08-017) $ 26
IDENTIFICATION
STAMPS
EXCEEDING LICENSE (See WAC 230-04-260) As required
CLASS
REVIEW, As required
INSPECTION AND/ (See WAC 230-12-315)
OR EVALUATION
OF EQUIPMENT,
PARAPHERNALIA,
SERVICES, OR
SCHEMES

12. SIX-MONTH
(See WAC 230-04-190)
$
26
PAYMENT PLAN

[Statutory Authority: RCW 9.46.070. 99-24-099 (Order 377), 230-04-202, filed 11/30/99, effective 12/31/99; 98-21-010 (Order 366), 230-04-202, filed 10/9/98, effective 11/9/98. Statutory Authority: RCW 9.46.070(5). 97-23-053, 230-04-202, filed 11/17/97, effective 6/30/98. Statutory Authority: RCW 9.46.070 (5), (6), (11), (14). 97-14-012, 230-04-202, filed 6/20/97, effective 7/21/97. Statutory Authority: RCW 9.46.070 and 9.46.116. 96-24-007 (Order 304), 230-04-202, filed 11/21/96, effective 1/1/97. Statutory Authority: RCW 9.46.070. 95-02-003 and 94-23-093 (Order 260), 230-04-202, filed 12/22/94 and 11/17/94, effective 1/22/95 and 1/1/95.]

OTS-4538.1


READOPTED SECTION(Readopting Order 385, filed 7/14/00, effective 1/1/01)

WAC 230-04-203   Fees -- Commercial stimulant and other business organizations.   All persons seeking to operate gambling activities shall submit the following fees to the commission when applying for gambling licenses, permits, miscellaneous changes, inspection services, or when assessed the cost of special investigation procedures by the commission:



LICENSE TYPE
DEFINITION
FEE
1. CARD GAMES
Class B Up to five tables of limited card games - hearts, rummy, pitch, pinochle, and/or cribbage (Fee to play charged)

$ 166
Class C Tournament only, no more than ten consecutive days per tournament.

C-5 Up to five tables $ 166
C-10 Up to ten tables $ 300
C-15 Up to fifteen tables $ 500
Class D General - Up to five tables (No fee to play charged) $ 53
Class E *General (Fee to play charged)
E-1 One table only $ 398
E-2 Up to two tables $ 685
E-3 Up to three tables $ 1,142
E-4 Up to four tables $ 2,287
E-5 Up to five tables $ 3,440
Additional tables up to a maximum of fifteen may be authorized for an additional per table fee of $1000.
*In addition to the above initial license fee, the commission will assess all applicants/licensees the actual costs that exceed the license fee for conducting the initial investigation and inspection, any follow-up reviews or investigations involved in the approval of activities and schemes.
Class F Enhanced cardroom activities endorsement - Includes alternative fee collections (per hand; pot rake) and use of player-supported jackpot schemes.
Annual license fee $1,500
2. CARD GAMES - HOUSE-BANKED
All tables within a card room operating any house-banked card game shall be licensed under this license class.
*Annual license fee $6,000
Per table fee (up to fifteen tables) $1,500
*The commission will assess all applicants the actual costs for conducting the initial license investigation and premises inspection. Any post licensing follow-up reviews, inspections, internal control evaluations or subsequent phases of operation shall also be charged actual costs. Licensees will be evaluated and charged for these additional authorizations/phases on an individual case by case basis.

3.
COMMERCIAL

AMUSEMENT

GAMES

(Fee based on annual gross

gambling receipts)
* Class A Premises only ** $ 285/$ 130
Class B Up to $ 50,000 $ 398
Class C Up to $ 100,000 $ 1,024
Class D Up to $ 250,000 $ 2,287
Class E Up to $ 500,000 $ 4,012
Class F Up to $1,000,000 $ 6,883
Class G Over $1,000,000 $ 8,610
* Allows a business that is qualified under WAC 230-04-138 (1)(f), (g), (h), (i), or (j) to enter into a contract with a class "B" or above commercial amusement game licensee to locate and operate amusement games upon their premises.
** Provides for a fee reduction of $155 when: Renewing an annual license; applying for an additional license(s) at the same premises; and/or applying for multiple licenses at the same premises.

4.
PUNCH BOARDS/

PULL-TABS

(Fee based on annual gross

gambling receipts)
VARIANCE*
Class A Up to $ 50,000 $ 5,000 $ 544
Class B Up to $ 100,000 $ 5,000 $ 971
Class C Up to $ 200,000 $ 10,000 $ 1,832
Class D Up to $ 300,000 $ 10,000 $ 2,663
Class E Up to $ 400,000 $ 10,000 $ 3,440
Class F Up to $ 500,000 $ 10,000 $ 4,153
Class G Up to $ 600,000 $ 10,000 $ 4,812
Class H Up to $ 700,000 $ 10,000 $ 5,416
Class I Up to $ 800,000 $ 10,000 $ 5,967
Class J Up to $ 1,000,000 $ 20,000 $ 6,765
Class K Up to $ 1,250,000 $ 25,000 $ 7,509
Class L Up to $ 1,500,000 $ 25,000 $ 8,201
Class M Up to $ 1,750,000 $ 25,000 $ 8,771
Class N Up to $ 2,000,000 $ 25,000 $ 9,290
Class O Over $ 2,000,000 Nonapplicable $ 10,208
* A licensee will be allowed a one-time variance for each license class without having to upgrade or pay the penalties set forth in WAC 230-04-260: Provided, That a licensee utilizing the variance shall be required to upgrade to the higher license class upon renewal.
5. PUNCH BOARD AND PULL-TAB SERVICE BUSINESS
(See WAC 230-04-133) *Initial application fee $ 206
Additional associate $ 129
Renewal $ 51
*Includes up to two associates.

6.
DISTRIBUTOR
(Fee based on annual gross sales of gambling related supplies and equipment)
(a) Class A Nonpunch board/pull-tab only $ 571
Class B Up to $ 250,000 $ 1,142
Class C Up to $ 500,000 $ 1,715
Class D Up to $1,000,000 $ 2,287
Class E Up to $2,500,000 $ 2,977
Class F Over $2,500,000 $ 3,667
In addition to the annual fee, the commission will assess all applicants the actual costs incurred in conducting the investigation and inspection necessary for initial certification.
(b) FUND-RAISING

EVENT EQUIPMENT

DISTRIBUTOR
Class A Rents or leases equipment for fund-raising event or recreational gaming activity up to 10 times per year.

$ 226
Class B Rents or leases equipment for fund-raising event or recreational gaming activity more than 10 times per year.

$ 571
7. GAMBLING SERVICE SUPPLIER
(See WAC 230-04-119) $ 594
In addition to the annual fee, the commission will assess all applicants the actual costs incurred in conducting the investigation and inspection necessary for initial certification.
An annual fee of $129 shall be charged for each new contract initiated by the gambling service supplier.
8. LINKED BINGO PRIZE PROVIDER
(See WAC 230-04-126) $ 3,815

9.
MANUFACTURER
(Fee based on annual gross sales of gambling related supplies and equipment)
Class A Pull-tab dispensing devices only $ 571
Class B Up to $ 250,000 $ 1,142
Class C Up to $ 500,000 $ 1,715
Class D Up to $1,000,000 $ 2,287
Class E Up to $2,500,000 $ 2,977
Class F Over $2,500,000 $ 3,667
In addition to the annual fee, the commission will assess all applicants the actual costs incurred in conducting the investigation and inspection necessary for initial certification, quality control inspection for additional activities or product lines, compliance suitability evaluations, and renewal of licenses when travel cost is incurred to complete the investigation.

10.
PERMITS

AGRICULTURAL FAIR/

SPECIAL PROPERTY

BINGO
Class A One location and event only (See WAC 230-04-191) $ 26
Class B Annual permit for specified different events and locations (See WAC 230-04-193)

$ 166
RECREATIONAL

GAMING ACTIVITY

(RGA)

 (See WAC 230-02-505

and 230-25-330)

$ 53
MANUFACTURER'S SPECIAL SALES PERMIT (See WAC 230-04-115) *$ 200
*The two hundred dollar fee is nonrefundable, whether the sales permit is approved or not. In addition, an applicant may be assessed additional fees incurred to process and determine suitability.

11.
CHANGES
NAME (See WAC 230-04-310) $ 26
LOCATION (See WAC 230-04-320) $ 26
BUSINESS (Same owners) $ 53
CLASSIFICATION (See WAC 230-04-340)
LICENSE CLASS (See WAC 230-04-260) New class fee, less previous fee paid, plus

$ 26
DUPLICATE LICENSE (See WAC 230-04-290) $ 26
OWNERSHIP OF STOCK (See WAC 230-04-340) $ 53
LICENSE TRANSFERS (See WAC 230-04-125,

230-04-340, and

230-04-350)

 $ 53

12.
SPECIAL FEES
INVESTIGATION (See WAC 230-04-240) As required
IDENTIFICATION AND

INSPECTION

SERVICES STAMPS

 (See WAC 230-08-017) As required
QUALITY CONTROL

INSPECTION FEES

 (See WAC 230-30-030) As required
REPLACEMENT OF

IDENTIFICATION

STAMPS

 (See WAC 230-30-017)

$ 26
EXCEEDING LICENSE

CLASS

 (See WAC 230-04-260) As required
REVIEW,

INSPECTION AND/

OR EVALUATION

OF EQUIPMENT,

PARAPHERNALIA,

SERVICES, OR

SCHEMES

 (See WAC 230-12-315) As required
SPECIAL SALES

PERMITS

 (See WAC 230-04-115) As required

13.
SIX-MONTH

PAYMENT PLAN
(See WAC 230-04-190)

$ 26

[Statutory Authority: RCW 9.46.070. 00-15-039 (Order 385), 230-04-203, filed 7/14/00, effective 1/1/01; 99-24-099 (Order 377), 230-04-203, filed 11/30/99, effective 12/31/99; 98-21-010 (Order 366), 230-04-203, filed 10/9/98, effective 11/9/98. Statutory Authority: RCW 9.46.070(5). 97-23-053, 230-04-203, filed 11/17/97, effective 6/30/98. Statutory Authority: RCW 9.46.070 (5), (6), (11), (14). 97-14-012, 230-04-203, filed 6/20/97, effective 7/21/97. Statutory Authority: RCW 9.46.070 and 9.46.116. 96-24-007 (Order 304), 230-04-203, filed 11/21/96, effective 1/1/97. Statutory Authority: RCW 9.46.070. 95-12-052, 230-04-203, filed 6/2/95, effective 7/3/95; 95-02-003 and 94-23-007, 230-04-203, filed 12/22/94 and 11/3/94, effective 1/22/95 and 1/1/95.]

OTS-4539.1


READOPTED SECTION(Readopting Order 377, filed 11/30/99, effective 12/31/99)

WAC 230-04-204   Fees -- Individuals.   Individuals shall submit the following fees to the commission when applying for gambling licenses, permits, miscellaneous changes, or when assessed the cost of special investigation procedures by the commission:


LICENSE TYPE DEFINITION FEE
1. CHARITABLE OR NONPROFIT GAMBLING MANAGER Original $ 166
Renewal $ 80
Change of Employer
 $ 80
2. LINKED BINGO PRIZE PROVIDER REPRESENTATIVE Original $226
Renewal
 $139
3. COMMERCIAL GAMBLING MANAGER Original $ 166
Renewal $ 80
Change of Employer
 $ 80
4. DISTRIBUTOR'S OR GAMBLING SERVICES SUPPLIER REPRESENTATIVE Original $ 226
Renewal
 $ 139
5. MANUFACTURER'S REPRESENTATIVE Original $ 226
Renewal
 $ 139
6. PUBLIC CARD ROOM EMPLOYEE CLASS A - Performs duties as defined in WAC 230-02-415 in a class E card room.
Original $ 166
Renewal $ 80
CLASS B - Performs duties as defined in WAC 230-02-415 in enhanced and house-banked card rooms.
Original,
in-state $ 224
Original,
out-of-state $ 279
Renewal $ 139
Transfer/Additional

Employee/Conversion/

Emergency Waiver Request

 $55
7. OTHER FEES
CHANGE OF NAME (See WAC 230-04-310) $26
DUPLICATE LICENSE (See WAC 230-04-290) $26
OUT-OF-STATE (See WAC 230-04-240) As
RECORDS INQUIRY required

[Statutory Authority: RCW 9.46.070. 99-24-099 (Order 377), 230-04-204, filed 11/30/99, effective 12/31/99; 98-21-010 (Order 366), 230-04-204, filed 10/9/98, effective 11/9/98. Statutory Authority: RCW 9.46.070(5). 97-23-053, 230-04-204, filed 11/17/97, effective 6/30/98. Statutory Authority: RCW 9.46.070 and 9.46.116. 96-24-007 (Order 304), 230-04-204, filed 11/21/96, effective 1/1/97. Statutory Authority: RCW 9.46.070. 96-09-070, 230-04-204, filed 4/16/96, effective 7/1/96; 94-23-007, 230-04-204, filed 11/3/94, effective 1/1/95.]

Washington State Code Reviser's Office