5558-S.E AMH CL H3227.1

ESSB 5558  - H COMM AMD
     By Committee on Commerce & Labor

     Strike everything after the enacting clause and insert the following:

"NEW SECTION.  Sec. 1   POLICY STATEMENT. In keeping with the gambling policy statement in RCW 9.46.010, the legislature intends to:
     (1) Limit the number of licenses that may be issued for conducting house-banked social card games; and
     (2) Grant local jurisdictions limited authority to determine the areas within which house-banked social card games may be conducted.

NEW SECTION.  Sec. 2   A new section is added to chapter 9.46 RCW to read as follows:
     LIMIT ON HOUSE-BANKED CARD GAME LICENSES. (1) Except as provided in RCW 9.46.295 and section 4 of this act, the commission may not accept or approve an application to be licensed to conduct house-banked social card games unless the applicant:
     (a) As of March 31, 2007, was in operation under an unrevoked and unexpired license to conduct house-banked social card games in the location identified in the license;
     (b) As of March 31, 2007, had submitted a completed application as determined by the commission to obtain a license to conduct house-banked social card games at an identified location;
     (c) Has purchased a substantial interest in, or substantially all of the assets of, a business issued a license under (a) or (b) of this subsection to conduct house-banked social card games and the application is for a license to continue to conduct such games in the location identified in the previous license; or
     (d) Having been issued a license under (a), (b), or (c) of this subsection, submits a timely application to renew the license for the location identified in the license.
     (2) Notwithstanding any ordinance, resolution, or legislative act in existence before the effective date of this section, a city, town, or county may not prohibit the holder of a license issued by the commission to conduct house-banked social card games from conducting such games in the location identified by such license except as follows:
     (a) The jurisdiction has a prohibition in effect, enacted after the effective date of this section, applying to house-banked social card games that complies with RCW 9.46.295(1)(a).
     (b) A jurisdiction, with a prohibition in effect applying to house-banked social card games that complies with RCW 9.46.295(1)(a), that annexes territory within which a holder of a license issued by the commission to conduct house-banked social card games is conducting such games may prohibit that licensee from conducting such games. To prohibit such activities of the licensee, the jurisdiction must adopt an ordinance, resolution, or other legislative act prohibiting house-banked social card games in the annexed territory and this prohibition may not take effect for eighteen months after the ordinance, resolution, or other legislative act is adopted.
     (3) This section does not restrict a holder of a license issued by the commission to conduct house-banked social card games from:
     (a) Selling, exchanging, or otherwise transferring such interests in gambling equipment, subject to commission rules regarding the transfer of gambling equipment; or
     (b) Relocating that business, subject to the commission's review and approval, but only if the jurisdiction to which the licensee proposes to relocate has in effect an ordinance, resolution, or other legislative act enacted pursuant to section 4 of this act and the proposed location complies with section 4 of this act.

Sec. 3   RCW 9.46.295 and 1974 ex.s. c 155 s 6 are each amended to read as follows:
     LOCAL JURISDICTION OPTIONS. (1) Any license to engage in any of the gambling activities authorized by this chapter ((as now exists or as hereafter amended,)) and issued under the authority thereof shall be legal authority to engage in the gambling activities for which issued throughout the incorporated and unincorporated area of any county, except that a city or town located therein with respect to that city or town, or a county with respect to all areas within that county except for such cities or towns, may:
     (a) A
bsolutely prohibit((, but may not change the scope of license,)) any or all of the gambling activities for which the license was issued. However, such prohibition enacted after the effective date of this section relating to house-banked social card games may not be repealed for at least three years from the effective date of the ordinance, resolution, or other legislative act enacting the prohibition; or
     (b) Determine, in accordance with section 4 of this act, the areas within which house-banked social card games may be relocated.
     (2) This section does not authorize any city, town, or county to adopt or enforce any ordinance, resolution, or other legislative act changing or purporting to change the scope of a license issued under this chapter.
     (3) Until July 1, 2010, an ordinance, resolution, or other legislative act that absolutely prohibits the operation of house-banked social card games under subsection (1)(a) of this section that is adopted by a city or town on or after the effective date of this act is subject to referendum under the referendum procedures of RCW 35A.11.100 and 35A.29.170. This subsection does not apply to a legislative act prohibiting house-banked social card games in an annexed territory under section 2(2)(b) of this act.

NEW SECTION.  Sec. 4   A new section is added to chapter 9.46 RCW to read as follows:
     RELOCATION ZONING ORDINANCES AUTHORIZED. (1) A city, town, or county that has, pursuant to chapter 36.70A RCW, adopted a comprehensive land use plan containing a statement identifying the jurisdiction's policy regarding the extent to which licensed gambling activity is to be allowed within the jurisdiction may enact, amend, and enforce an ordinance, resolution, or other legislative act, consistent with the policy statement in the comprehensive plan and subject to subsection (2) of this section, that does the following:
     (a) Allows the relocation of house-banked social card games within all or part of the city, town, or county. If the ordinance, resolution, or other legislative act allows such games in only part of the jurisdiction, it must:
     (i) Designate a land use zone or zones that is not less than and that is wholly contained in one-third of the land use zone or zones within which eating and drinking establishments licensed by the liquor control board are allowed to operate;
     (ii) Apply uniformly throughout each designated land use zone or zones within the jurisdiction, with no authority to grant variances or nonconforming uses based on house-banked social card games; and
     (iii) Apply only to house-banked social card games that did not have an identified location under section 2(1) of this act in the jurisdiction. However, the house-banked card game licensee may relocate that business into the designated land use zone if it meets the requirements of this section; or
     (b)(i) Prohibits house-banked social card games from relocating within up to five hundred feet of any of the following uses that existed on the initial date of application for relocation of the license:
     (A) A building used exclusively for religious worship, religious schooling, or other activity in connection therewith;
     (B) A residence located in a zone that is identified specifically in a local ordinance or legislative enactment as being composed predominantly of single-family or multifamily residences;
     (C) A tax-supported public elementary or secondary school or private school meeting the requirements for private schools under Title 28A RCW; or
     (D) Publicly owned or leased buildings designated within the jurisdiction's comprehensive plan and used exclusively by the jurisdiction as a place of business for its employees, elected officials, or for public meetings, including but not limited to any library, courthouse, jail, police station, or fire station.
     (ii) Any distances established for the purposes of this subsection (1)(b) must be measured in a straight line from the perimeter property line of the grounds of the use identified under this subsection to the nearest property line of the property within which an applicant has applied to locate house-banked social card games.
     (2) The repeal of a land use zone enacted pursuant to this section may not apply for at least three years from the effective date of such ordinance, resolution, or other legislative act to the holder of a license issued by the commission to conduct house-banked social card games who is conducting such games in that location within the jurisdiction on the date that the repeal took effect.
     (3) For the purposes of this section, "land use zone" means any area within a jurisdiction that: (a) Is defined by an action of a jurisdiction's legislative body and appears on the jurisdiction's land use zoning map; (b) is situated within a single, continuous, and discrete boundary perimeter; and (c) has land uses within the area that are subject to the same zoning regulations, definitions, or standards as may be determined by the jurisdiction.
     (4) The land use petition act, chapter 36.70C RCW, governs challenges regarding the adoption or enforcement of an ordinance, resolution, or other legislative act enacted or amended pursuant to this section.
     (5) The commission, its members, and staff are absolutely immune from any legal action relating to a decision of the commission: To issue, renew, or not issue a license under this section or section 2 of this act; or that is based on the commission's interpretation of this section, section 2 of this act, or any local ordinance, resolution, or other legislative act enacted or amended under this section. No court, board, agency, entity, or tribunal of any kind has jurisdiction to join the commission as a party to any such legal action.

Sec. 5   RCW 9.46.070 and 2002 c 119 s 1 are each amended to read as follows:
     POWERS AND DUTIES OF GAMBLING COMMISSION. The commission 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 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 punch boards 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)) such licenses for violation of any provisions of this chapter or any rules ((and regulations)) adopted pursuant thereto((: PROVIDED, That)). However, except as provided in section 2 of this act, the commission 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 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 meeting the requirements of this chapter and any rules ((and regulations)) adopted pursuant thereto permitting ((said)) such person, association, or organization to utilize punch boards 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)) such licenses for violation of any provisions of this chapter and any rules ((and regulations)) adopted pursuant thereto((: PROVIDED, That)). However, except as provided in section 2 of this act, the commission 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 meeting the requirements of this chapter and meeting the requirements of any rules ((and regulations)) adopted by the commission pursuant to this chapter ((as now or hereafter amended)), permitting ((said)) such person, association, or organization to conduct or operate amusement games in such manner and at such locations as the commission may determine;
     (4) To authorize, require, and issue, for a period not to exceed one year, such licenses as the commission 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;
     (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, which fees shall provide to the commission not less than an amount of money adequate to cover all costs incurred by the commission relative to licensing under this chapter and the enforcement by the commission 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)) such fee as the commission may determine, based upon its cost of processing and investigation, shall be retained by the commission 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 for a particular class of license is less than the commission's actual expenses to investigate that particular application, the commission may at any time charge to that applicant such additional fees as are necessary to pay the commission for those costs. The commission may decline to proceed with its investigation and no license shall be issued until the commission has been fully paid therefor by the applicant((: AND PROVIDED FURTHER, That)). The commission 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 and for such other special services or programs required or offered by the commission, the amount of each of these fees to be not less than is adequate to offset the cost to the commission 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;
     (7) To require that applications for all licenses contain such information as may be required by the commission((: 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 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 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 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 and submit such reports as the commission 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 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 shall take into account (i) the nature, character, and scope of the activities of the licensee; (ii) the source of all other income of the licensee; and (iii) the percentage or extent to which income derived from bingo is used for charitable, as distinguished from nonprofit, purposes. However, the commission'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) 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 powers and duties granted by this subsection are discretionary and not mandatory.
     In establishing these maximum limits the commission 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 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 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 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 may require that licensees employing such unlicensed volunteers submit to the commission periodically a list of the names, addresses, and dates of birth of the volunteers. If any volunteer is not approved by the commission, the commission 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; and
     (20) To perform all other matters and things necessary to carry out the purposes and provisions of this chapter.

NEW SECTION.  Sec. 6   CAPTIONS. Captions as used in this act do not constitute any part of the law.

NEW SECTION.  Sec. 7   If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected."

EFFECT:  Changes the date for a card game applicant to be in operation or have submitted a completed application from March 1, 2007, to March 31, 2007.
     Clarifies that the local jurisdiction actions to prohibit card games that are subject to referendum do not include actions to prohibit card games in annexed territory.

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