BILL REQ. #:  S-0008.1 

Read first time 01/13/2003.   Referred to Committee on Commerce & Trade.

     AN ACT Relating to consolidating the functions of the horse racing commission into the gambling commission; amending RCW 9.46.071, 43.03.028, 51.12.020, 67.16.010, 67.16.101, 67.16.140, 67.16.150, and 82.04.350; reenacting and amending RCW 42.17.2401; creating new sections; decodifying RCW 67.16.160; repealing RCW 67.16.012, 67.16.014, 67.16.015, and 67.16.017; providing an effective date; and declaring an emergency.

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

NEW SECTION.  Sec. 1   (1) The horse racing commission is hereby abolished and its powers, duties, and functions pertaining to parimutuel betting and wagering are hereby transferred to the gambling commission.
     (2)(a) All reports, documents, surveys, books, records, files, papers, or written material in the possession of the horse racing commission pertaining to the powers, functions, and duties transferred shall be delivered to the custody of the gambling commission. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the horse racing commission in carrying out the powers, functions, and duties transferred shall be made available to the gambling commission. All funds, credits, or other assets held in connection with the powers, functions, and duties transferred shall be assigned to the gambling commission.
     (b) Any appropriations made to the horse racing commission for carrying out the powers, functions, and duties transferred shall, on the effective date of this section, be transferred and credited to the gambling commission.
     (c) If any question arises as to the transfer of any personnel, funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred under this section, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.
     (3)(a) All employees of the horse racing commission engaged in performing the powers, functions, and duties transferred are transferred to the jurisdiction of the gambling commission. All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the gambling commission to perform their usual duties upon the same terms as formerly, without any loss of rights, subject to any action that may be appropriate thereafter in accordance with the laws and rules governing state civil service.
     (b) The terms of the appointed and ex officio members of the horse racing commission shall expire July 1, 2003.
     (4) All rules and all pending business before the horse racing commission pertaining to the powers, functions, and duties transferred shall be continued and acted upon by the gambling commission. All existing contracts and obligations shall remain in full force and shall be performed by the gambling commission.
     (5) The transfer of the powers, duties, functions, and personnel of the horse racing commission shall not affect the validity of any act performed before the effective date of this section.
     (6) If apportionments of budgeted funds are required because of the transfers directed by this section, the director of financial management shall certify the apportionments to the agencies affected, the state auditor, and the state treasurer. Each of these shall make the appropriate transfer and adjustments in funds and appropriation accounts and equipment records in accordance with the certification.
     (7) Nothing contained in this section may be construed to alter any existing collective bargaining unit or the provisions of any existing collective bargaining agreement until the agreement has expired or until the bargaining unit has been modified by action of the personnel resources board as provided by law.

NEW SECTION.  Sec. 2   (1) All powers, duties, and functions of the horse racing commission pertaining to the encouragement of the training and development of the equine industry in the state of Washington and the maintenance of race course facilities to ensure the safety of the public and the horses are transferred to the department of agriculture.
     (2)(a) All reports, documents, surveys, books, records, files, papers, or written material in the possession of the horse racing commission pertaining to the powers, functions, and duties transferred shall be delivered to the custody of the department of agriculture. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the horse racing commission in carrying out the powers, functions, and duties transferred shall be made available to the department of agriculture. All funds, credits, or other assets held in connection with the powers, functions, and duties transferred shall be assigned to the department of agriculture.
     (b) Any appropriations made to the horse racing commission for carrying out the powers, functions, and duties transferred shall, on the effective date of this section, be transferred and credited to the department of agriculture.
     (c) Whenever any question arises as to the transfer of any personnel, funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.
     (3) All employees of the horse racing commission engaged in performing the powers, functions, and duties transferred are transferred to the jurisdiction of the department of agriculture. All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the department of agriculture to perform their usual duties upon the same terms as formerly, without any loss of rights, subject to any action that may be appropriate thereafter in accordance with the laws and rules governing state civil service.
     (4) All rules and all pending business before the horse racing commission pertaining to the powers, functions, and duties transferred shall be continued and acted upon by the department of agriculture. All existing contracts and obligations shall remain in full force and shall be performed by the department of agriculture.
     (5) The transfer of the powers, duties, functions, and personnel of the horse racing commission shall not affect the validity of any act performed before the effective date of this section.
     (6) If apportionments of budgeted funds are required because of the transfers directed by this section, the director of financial management shall certify the apportionments to the agencies affected, the state auditor, and the state treasurer. Each of these shall make the appropriate transfer and adjustments in funds and appropriation accounts and equipment records in accordance with the certification.
     (7) Nothing contained in this section may be construed to alter any existing collective bargaining unit or the provisions of any existing collective bargaining agreement until the agreement has expired or until the bargaining unit has been modified by action of the personnel board as provided by law.

Sec. 3   RCW 9.46.071 and 1994 c 218 s 6 are each amended to read as follows:
     The legislature recognizes that some individuals in this state are problem or compulsive 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, the state has the responsibility to continue to provide resources for the support of services for problem and compulsive gamblers. Therefore, the Washington state gambling commission((, the Washington horse racing commission,)) and the state lottery commission shall jointly develop informational signs concerning problem and compulsive gambling which include a toll-free hot line number for problem and compulsive gamblers. The signs shall be placed in the establishments of gambling licensees, horse racing licensees, and lottery retailers.

Sec. 4   RCW 42.17.2401 and 2001 c 36 s 1 and 2001 c 9 s 1 are each reenacted and amended to read as follows:
     For the purposes of RCW 42.17.240, the term "executive state officer" includes:
     (1) The chief administrative law judge, the director of agriculture, the administrator of the Washington basic health plan, the director of the department of services for the blind, the director of the state system of community and technical colleges, the director of community, trade, and economic development, the secretary of corrections, the director of ecology, the commissioner of employment security, the chairman of the energy facility site evaluation council, the secretary of the state finance committee, the director of financial management, the director of fish and wildlife, the executive secretary of the forest practices appeals board, the director of the gambling commission, the director of general administration, the secretary of health, the administrator of the Washington state health care authority, the executive secretary of the health care facilities authority, the executive secretary of the higher education facilities authority, ((the executive secretary of the horse racing commission,)) the executive secretary of the human rights commission, the executive secretary of the indeterminate sentence review board, the director of the department of information services, the director of the interagency committee for outdoor recreation, the executive director of the state investment board, the director of labor and industries, the director of licensing, the director of the lottery commission, the director of the office of minority and women's business enterprises, the director of parks and recreation, the director of personnel, the executive director of the public disclosure commission, the director of retirement systems, the director of revenue, the secretary of social and health services, the chief of the Washington state patrol, the executive secretary of the board of tax appeals, the secretary of transportation, the secretary of the utilities and transportation commission, the director of veterans affairs, the president of each of the regional and state universities and the president of The Evergreen State College, each district and each campus president of each state community college;
     (2) Each professional staff member of the office of the governor;
     (3) Each professional staff member of the legislature; and
     (4) Central Washington University board of trustees, board of trustees of each community college, each member of the state board for community and technical colleges, state convention and trade center board of directors, committee for deferred compensation, Eastern Washington University board of trustees, Washington economic development finance authority, The Evergreen State College board of trustees, executive ethics board, forest practices appeals board, forest practices board, gambling commission, Washington health care facilities authority, each member of the Washington health services commission, higher education coordinating board, higher education facilities authority, ((horse racing commission,)) state housing finance commission, human rights commission, indeterminate sentence review board, board of industrial insurance appeals, information services board, interagency committee for outdoor recreation, state investment board, commission on judicial conduct, legislative ethics board, liquor control board, lottery commission, marine oversight board, Pacific Northwest electric power and conservation planning council, parks and recreation commission, personnel appeals board, board of pilotage commissioners, pollution control hearings board, public disclosure commission, public pension commission, shorelines hearing board, public employees' benefits board, salmon recovery funding board, board of tax appeals, transportation commission, University of Washington board of regents, utilities and transportation commission, Washington state maritime commission, Washington personnel resources board, Washington public power supply system executive board, Washington State University board of regents, Western Washington University board of trustees, and fish and wildlife commission.

Sec. 5   RCW 43.03.028 and 2001 c 302 s 2 are each amended to read as follows:
     (1) There is hereby created a state committee on agency officials' salaries to consist of seven members, or their designees, as follows: The president of the University of Puget Sound; the chairperson of the council of presidents of the state's four-year institutions of higher education; the chairperson of the Washington personnel resources board; the president of the Association of Washington Business; the president of the Pacific Northwest Personnel Managers' Association; the president of the Washington State Bar Association; and the president of the Washington State Labor Council. If any of the titles or positions mentioned in this subsection are changed or abolished, any person occupying an equivalent or like position shall be qualified for appointment by the governor to membership upon the committee.
     (2) The committee shall study the duties and salaries of the directors of the several departments and the members of the several boards and commissions of state government, who are subject to appointment by the governor or whose salaries are fixed by the governor, and of the chief executive officers of the following agencies of state government:
     The arts commission; the human rights commission; the board of accountancy; the board of pharmacy; the eastern Washington historical society; the Washington state historical society; the interagency committee for outdoor recreation; the criminal justice training commission; the department of personnel; the state library; the traffic safety commission; ((the horse racing commission;)) the advisory council on vocational education; the public disclosure commission; the state conservation commission; the commission on Hispanic affairs; the commission on Asian Pacific American affairs; the state board for volunteer fire fighters and reserve officers; the transportation improvement board; the public employment relations commission; the forest practices appeals board; and the energy facilities site evaluation council.
     The committee shall report to the governor or the chairperson of the appropriate salary fixing authority at least once in each fiscal biennium on such date as the governor may designate, but not later than seventy-five days prior to the convening of each regular session of the legislature during an odd-numbered year, its recommendations for the salaries to be fixed for each position.
     (3) Committee members shall be reimbursed by the department of personnel for travel expenses under RCW 43.03.050 and 43.03.060.

Sec. 6   RCW 51.12.020 and 1999 c 68 s 1 are each amended to read as follows:
     The following are the only employments which shall not be included within the mandatory coverage of this title:
     (1) Any person employed as a domestic servant in a private home by an employer who has less than two employees regularly employed forty or more hours a week in such employment.
     (2) Any person employed to do gardening, maintenance, or repair, in or about the private home of the employer. For the purposes of this subsection, "maintenance" means the work of keeping in proper condition, "repair" means to restore to sound condition after damage, and "private home" means a person's place of residence.
     (3) A person whose employment is not in the course of the trade, business, or profession of his or her employer and is not in or about the private home of the employer.
     (4) Any person performing services in return for aid or sustenance only, received from any religious or charitable organization.
     (5) Sole proprietors or partners.
     (6) Any child under eighteen years of age employed by his or her parent or parents in agricultural activities on the family farm.
     (7) Jockeys while participating in or preparing horses for race meets licensed by the ((Washington horse racing)) gambling commission pursuant to chapter 67.16 RCW.
     (8)(a) Except as otherwise provided in (b) of this subsection, any bona fide officer of a corporation voluntarily elected or voluntarily appointed in accordance with the articles of incorporation or bylaws of the corporation, who at all times during the period involved is also a bona fide director, and who is also a shareholder of the corporation. Only such officers who exercise substantial control in the daily management of the corporation and whose primary responsibilities do not include the performance of manual labor are included within this subsection.
     (b) Alternatively, a corporation that is not a "public company" as defined in RCW 23B.01.400(((21))) may exempt eight or fewer bona fide officers, who are voluntarily elected or voluntarily appointed in accordance with the articles of incorporation or bylaws of the corporation and who exercise substantial control in the daily management of the corporation, from coverage under this title without regard to the officers' performance of manual labor if the exempted officer is a shareholder of the corporation, or may exempt any number of officers if all the exempted officers are related by blood within the third degree or marriage. If a corporation that is not a "public company" elects to be covered under subsection (8)(a) of this section, the corporation's election must be made on a form prescribed by the department and under such reasonable rules as the department may adopt.
     (c) Determinations respecting the status of persons performing services for a corporation shall be made, in part, by reference to Title 23B RCW and to compliance by the corporation with its own articles of incorporation and bylaws. For the purpose of determining coverage under this title, substance shall control over form, and mandatory coverage under this title shall extend to all workers of this state, regardless of honorary titles conferred upon those actually serving as workers.
     (d) A corporation may elect to cover officers who are exempted by this subsection in the manner provided by RCW 51.12.110.
     (9) Services rendered by a musician or entertainer under a contract with a purchaser of the services, for a specific engagement or engagements when such musician or entertainer performs no other duties for the purchaser and is not regularly and continuously employed by the purchaser. A purchaser does not include the leader of a group or recognized entity who employs other than on a casual basis musicians or entertainers.
     (10) Services performed by a newspaper carrier selling or distributing newspapers on the street or from house to house.
     (11) Services performed by an insurance agent, insurance broker, or insurance solicitor, as defined in RCW 48.17.010, 48.17.020, and 48.17.030, respectively.
     (12) Services performed by a booth renter as defined in RCW 18.16.020. However, a person exempted under this subsection may elect coverage under RCW 51.32.030.
     (13) Members of a limited liability company, if either:
     (a) Management of the company is vested in its members, and the members for whom exemption is sought would qualify for exemption under subsection (5) of this section were the company a sole proprietorship or partnership; or
     (b) Management of the company is vested in one or more managers, and the members for whom the exemption is sought are managers who would qualify for exemption under subsection (8) of this section were the company a corporation.

Sec. 7   RCW 67.16.010 and 1991 c 270 s 1 are each amended to read as follows:
     Unless the context otherwise requires, words and phrases as used herein shall mean:
     "Commission" ((shall mean the Washington horse racing commission, hereinafter created)) means the gambling commission.
     "Parimutuel machine" shall mean and include both machines at the track and machines at the satellite locations, that record parimutuel bets and compute the payoff.
     "Person" shall mean and include individuals, firms, corporations and associations.
     "Race meet" shall mean and include any exhibition of thoroughbred, quarter horse, paint horse, appaloosa horse racing, arabian horse racing, or standard bred harness horse racing, where the parimutuel system is used.
     Singular shall include the plural, and the plural shall include the singular; and words importing one gender shall be regarded as including all other genders.

Sec. 8   RCW 67.16.101 and 1977 ex.s. c 372 s 1 are each amended to read as follows:
     The legislature finds that:
     (1) ((A primary)) One responsibility of the ((horse racing commission)) department of agriculture is the encouragement of the training and development of the equine industry in the state of Washington whether the result of this training and development results in legalized horse racing or in the recreational use of horses;
     (2) The ((horse racing commission)) department of agriculture has a further major responsibility to assure that any facility used as a race course should be maintained and upgraded to insure the continued safety of both the public and the horse at any time the facility is used for the training or contesting of these animals;
     (3) Small race courses within the state have difficulty in obtaining sufficient funds to provide the maintenance and upgrading necessary to assure this safety at these facilities, or to permit frequent use of these facilities by 4-H children or other horse owners involved in training; and
     (4) The one percent of the parimutuel machine gross receipts used to pay a special purse to the licensed owners of Washington bred horses is available for the purpose of drawing interest, thereby obtaining sufficient funds to be disbursed to achieve the necessary support to these small race courses.

Sec. 9   RCW 67.16.140 and 1973 1st ex.s. c 216 s 3 are each amended to read as follows:
     No employee of the ((horse racing)) commission shall serve as an employee of any track at which that individual will also serve as an employee of the commission.

Sec. 10   RCW 67.16.150 and 1973 1st ex.s. c 216 s 4 are each amended to read as follows:
     No employee nor any commissioner of the ((horse racing)) commission shall have any financial interest whatsoever, other than an ownership interest in a community venture, in any track at which said employee serves as an agent or employee of the commission or at any track with respect to a commissioner.

Sec. 11   RCW 82.04.350 and 1961 c 15 s 82.04.350 are each amended to read as follows:
     This chapter shall not apply to any person in respect to the business of conducting race meets for the conduct of which a license must be secured from the ((horse racing)) gambling commission.

NEW SECTION.  Sec. 12   The following acts or parts of acts are each repealed:
     (1) RCW 67.16.012 (Washington horse racing commission--Creation--Terms--Vacancies--Bonds--Oaths) and 1998 c 345 s 4, 1987 c 453 s 2, 1973 1st ex.s. c 216 s 1, 1969 ex.s. c 233 s 1, & 1933 c 55 s 2;
     (2) RCW 67.16.014 (Washington horse racing commission--Ex officio nonvoting members) and 1991 c 270 s 2 & 1987 c 453 s 3;
     (3) RCW 67.16.015 (Washington horse racing commission--Organization--Secretary--Records--Annual reports) and 1977 c 75 s 80 & 1933 c 55 s 3; and
     (4) RCW 67.16.017 (Washington horse racing commission--Compensation and travel expenses) and 1984 c 287 s 100, 1975-'76 2nd ex.s. c 34 s 155, & 1969 ex.s. c 233 s 2.

NEW SECTION.  Sec. 13   RCW 67.16.160 is decodified.

NEW SECTION.  Sec. 14   This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 2003.