WSR 14-19-113
[Filed September 17, 2014, 9:17 a.m.]
Original Notice.
Preproposal statement of inquiry was filed as WSR 14-15-146.
Title of Rule and Other Identifying Information: Proposed amendatory section WAC 230-10-375 Failing to maintain a positive cash flow; and proposed repealed sections WAC 230-10-370 Adjusted cash flow limits for bingo and 230-10-380 Relief reduction for minimum annual adjusted cash flow.
Hearing Location(s): Comfort Inn Conference Center, 1620 74th Avenue S.W., Tumwater, WA 98501, (360) 352-0691, on November 13 or 14, 2014, at 9:00 a.m. or 1:00 p.m. NOTE: Meeting dates and times are tentative. Visit our web site at and select public meeting about ten days before the meeting to confirm meeting date/location/start time.
Date of Intended Adoption: November 13 or 14, 2014.
Submit Written Comments to: Susan Newer, P.O. Box 42400, Olympia, WA 98504-2400, e-mail, fax (360) 486-3625, by November 1, 2014.
Assistance for Persons with Disabilities: Contact Michelle Rancour by November 1, 2014, TTY (360) 486-3637 or (360) 486-3453.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: With these rule changes, bingo licensees with annual gross gambling receipts over 1.5 million dollars would no longer have to meet quarterly and yearly "cash flow" requirements, which is calculated based on the quarterly activity reports they submit. Instead, licensees would have to show a positive cash flow when they submit their annual financial statements to the commission. These financial statements would continue to be prepared in accordance with WAC 230-07-150.
In addition, associated rules allowing a reduction for taxes paid and an automatic twenty-five percent reduction of the cash flow requirements would also be repealed.
There are currently only eight licensees who would be impacted by this petition because they have annual gross gambling receipts from bingo and punch board/pull-tab (PB/PT) activities over 1.5 million dollars.
Statutory Authority for Adoption: RCW 9.46.070, 9.46.0209.
Statute Being Implemented: Not applicable.
Rule is not necessitated by federal law, federal or state court decision.
Name of Proponent: Ric Newgard, licensed primary bingo manager for Seattle Junior Hockey Association, and Clyde Bock, licensed primary bingo manager for Leon Sullivan Health Care Center, private.
Name of Agency Personnel Responsible for Drafting: Susan Newer, Lacey, (360) 486-3466; Implementation: David Trujillo, Director, Lacey, (360) 486-3512; and Enforcement: Mark Harris, Assistant Director, Lacey, (360) 486-3579.
No small business economic impact statement has been prepared under chapter 19.85 RCW. A small business economic impact statement was not prepared because the rule change would not impose additional costs.
A cost-benefit analysis is not required under RCW 34.05.328. The Washington state gambling commission is not an agency that is statutorily required to prepare a cost-benefit analysis under RCW 34.05.328.
September 17, 2014
Susan Newer
Rules Coordinator
AMENDATORY SECTION (Amending WSR 07-10-033, filed 4/24/07, effective 1/1/08)
WAC 230-10-375 Failing to maintain a positive cash flow.
(1) Bingo licensees must measure adjusted cash flow ((quarterly)) to ensure that they maintain a positive cash flow and are not operating primarily for gambling purposes.
(2) If a licensee does not maintain a positive cash flow from the bingo operation ((during any two consecutive license year quarters, measured independently)) as reflected in their annual financial statement as prepared in accordance with WAC 230-07-150, the director ((summarily suspends)) will take administrative action to revoke the organization's bingo license.
(((3) If a licensee fails to meet the adjusted cash flow requirements for any calendar year, we take administrative action to revoke the organization's bingo license.))
The following sections of the Washington Administrative Code are repealed:
WAC 230-10-370
Ticket sales and receipting for three number speed bingo income.
WAC 230-10-380
Drawings for prizes, good neighbor prizes, and second element of chance prizes as part of bingo games.