BILL REQ. #:  S-3882.2 

Read first time 01/31/12.   Referred to Committee on Labor, Commerce & Consumer Protection.

     AN ACT Relating to the consolidation of the liquor control board into the gambling commission; amending RCW 9.46.0221, 9.46.040, 9.46.060, 9.46.071, 9.46.085, 9.46.360, and 9.46.400; adding a new section to chapter 9.46 RCW; creating a new section; and repealing RCW 66.08.012.

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

NEW SECTION.  Sec. 1   The legislature realizes fiscal efficiencies by consolidating similar state agency functions where possible. The legislature recognizes that the management functions and services provided by the gambling commission and the Washington state liquor control board are similar in the following areas: Agency administration, human resource and personnel management, and management of enforcement of state laws and agency rules. It is the intent of the legislature to realize efficiencies by combining these two agencies into one and reducing by half the number of top level administrators in the newly created agency. Reduction of top level administration shall include a reduction in the number of paid commissioners or paid board members, upper level managers and staff reporting to the newly created commission, and agency directors in the following areas: Agency administration, human resource and personnel management, and management of enforcement personnel. It is the intent of the legislature to realize additional efficiencies by transferring those functions of the liquor control board having to do with collection of taxes and other licensing, audit, and regulatory functions to the department of revenue.

Sec. 2   RCW 9.46.0221 and 1987 c 4 s 7 are each amended to read as follows:
     "Commission," as used in this chapter, means the Washington state gambling and liquor commission created in RCW 9.46.040.

Sec. 3   RCW 9.46.040 and 1974 ex.s. c 155 s 12 are each amended to read as follows:
     There shall be a commission, known as the "Washington state gambling and liquor commission," consisting of five members appointed by the governor with the consent of the senate. The members of the commission shall be appointed within thirty days of July 16, 1973 for terms beginning July 1, 1973, and expiring as follows: One member of the commission for a term expiring July 1, 1975; one member of the commission for a term expiring July 1, 1976; one member of the commission for a term expiring July 1, 1977; one member of the commission for a term expiring July 1, 1978; and one member of the commission for a term expiring July 1, 1979; each as the governor so determines. Their successors, all of whom shall be citizen members appointed by the governor with the consent of the senate, upon being appointed and qualified, shall serve six year terms: PROVIDED, That no member of the commission who has served a full six year term shall be eligible for reappointment. In case of a vacancy, it shall be filled by appointment by the governor for the unexpired portion of the term in which said vacancy occurs. No vacancy in the membership of the commission shall impair the right of the remaining member or members to act, except as in RCW 9.46.050(2) provided.
     In addition to the members of the commission there shall be four ex officio members without vote from the legislature consisting of: (1) Two members of the senate, one from the majority political party and one from the minority political party, both to be appointed by the president of the senate; (2) two members of the house of representatives, one from the majority political party and one from the minority political party, both to be appointed by the speaker of the house of representatives; such appointments shall be for the term of two years or for the period in which the appointee serves as a legislator, whichever expires first; members may be reappointed; vacancies shall be filled in the same manner as original appointments are made. Such ex officio members who shall collect data deemed essential to future legislative proposals and exchange information with the board shall be deemed engaged in legislative business while in attendance upon the business of the board and shall be limited to such allowances therefor as otherwise provided in RCW 44.04.120, the same to be paid from the "gambling revolving fund" as being expenses relative to commission business.

Sec. 4   RCW 9.46.060 and 1973 1st ex.s. c 218 s 6 are each amended to read as follows:
     (1) The attorney general shall be general counsel for the state gambling and liquor commission and shall assign such assistants as may be necessary in carrying out the purposes and provisions of this chapter, which shall include instituting and prosecuting any actions and proceedings necessary thereto.
     (2) The state auditor shall audit the books, records, and affairs of the commission annually. The commission shall pay to the state treasurer for the credit of the state auditor such funds as may be necessary to defray the costs of such audits. The commission may provide for additional audits by certified public accountants. All such audits shall be public records of the state.
     The payment for legal services and audits as authorized in this section shall be paid upon authorization of the commission from moneys in the gambling revolving fund.

Sec. 5   RCW 9.46.071 and 2005 c 369 s 9 are each amended to read as follows:
     (1) The legislature recognizes that some individuals in this state are problem or pathological 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 and liquor commission, the state has the responsibility to continue to provide resources for the support of services for problem and pathological gamblers. Therefore, the Washington state gambling and liquor commission, the Washington horse racing commission, and the state lottery commission shall jointly develop informational signs concerning problem and pathological gambling which include a toll-free hot line number for problem and pathological gamblers. The signs shall be placed in the establishments of gambling licensees, horse racing licensees, and lottery retailers. In addition, the Washington state gambling and liquor commission, the Washington horse racing commission, and the state lottery commission may also contract with other qualified entities to provide public awareness, training, and other services to ensure the intent of this section is fulfilled.
     (2)(a) During any period in which RCW 82.04.285(2) is in effect, the commission may not increase fees payable by licensees under its jurisdiction for the purpose of funding services for problem and pathological gambling. Any fee imposed or increased by the commission, for the purpose of funding these services, before July 1, 2005, shall have no force and effect after July 1, 2005.
     (b) During any period in which RCW 82.04.285(2) is not in effect:
     (i) The commission, the Washington state horse racing commission, and the state lottery commission may contract for services, in addition to those authorized in subsection (1) of this section, to assist in providing for treatment of problem and pathological gambling; and
     (ii) The commission may increase fees payable by ((licenses [licensees])) licensees under its jurisdiction for the purpose of funding the services authorized in this section for problem and pathological gamblers.

Sec. 6   RCW 9.46.085 and 1986 c 4 s 1 are each amended to read as follows:
     A member or employee of the gambling and liquor commission shall not:
     (1) Serve as an officer or manager of any corporation or organization which conducts a lottery or gambling activity;
     (2) Receive or share in, directly or indirectly, the gross profits of any gambling activity regulated by the commission;
     (3) Be beneficially interested in any contract for the manufacture or sale of gambling devices, the conduct of (([a])) a gambling activity, or the provision of independent consultant services in connection with a gambling activity.

Sec. 7   RCW 9.46.360 and 1992 c 172 s 2 are each amended to read as follows:
     (1) The negotiation process for compacts with federally recognized Indian tribes for conducting class III gaming, as defined in the Indian Gaming Regulatory Act, 25 U.S.C. Sec. 2701 et seq., on federal Indian lands is governed by this section.
     (2) The gambling and liquor commission through the director or the director's designee shall negotiate compacts for class III gaming on behalf of the state with federally recognized Indian tribes in the state of Washington.
     (3) When a tentative agreement with an Indian tribe on a proposed compact is reached, the director shall immediately transmit a copy of the proposed compact to all voting and ex officio members of the gambling and liquor commission and to the standing committees designated pursuant to subsection (5) of this section.
     (4) Notwithstanding RCW 9.46.040, the four ex officio members of the gambling and liquor commission shall be deemed voting members of the gambling and liquor commission for the sole purpose of voting on proposed compacts submitted under this section.
     (5) Within thirty days after receiving a proposed compact from the director, one standing committee from each house of the legislature shall hold a public hearing on the proposed compact and forward its respective comments to the gambling and liquor commission. The president of the senate shall designate the senate standing committee that is to carry out the duties of this section, and the speaker of the house of representatives shall designate the house standing committee that is to carry out the duties of this section. The designated committees shall continue to perform under this section until the president of the senate or the speaker of the house of representatives, as the case may be, designates a different standing committee.
     (6) The gambling and liquor commission may hold public hearings on the proposed compact any time after receiving a copy of the compact from the director. Within forty-five days after receiving the proposed compact from the director, the gambling and liquor commission, including the four ex officio members, shall vote on whether to return the proposed compact to the director with instructions for further negotiation or to forward the proposed compact to the governor for review and final execution.
     (7) Notwithstanding provisions in this section to the contrary, if the director forwards a proposed compact to the gambling and liquor commission and the designated standing committees within ten days before the beginning of a regular session of the legislature, or during a regular or special session of the legislature, the thirty-day time limit set forth in subsection (5) of this section and the forty-five day limit set forth in subsection (6) of this section are each forty-five days and sixty days, respectively.
     (8) Funding for the negotiation process under this section must come from the gambling revolving fund.
     (9) In addition to the powers granted under this chapter, the commission, consistent with the terms of any compact, is authorized and empowered to enforce the provisions of any compact between a federally recognized Indian tribe and the state of Washington.

Sec. 8   RCW 9.46.400 and 1996 c 101 s 3 are each amended to read as follows:
     Any raffle authorized by the fish and wildlife commission involving hunting big game animals or wild turkeys shall not be subject to any provisions of this chapter other than RCW 9.46.010 and this section or to any rules or regulations of the gambling and liquor commission.

NEW SECTION.  Sec. 9   A new section is added to chapter 9.46 RCW to read as follows:
     (1) The Washington state liquor control board is hereby abolished and its powers, duties, and functions are hereby transferred to the gambling and liquor commission. All references to the director or the Washington state liquor control board in the Revised Code of Washington shall be construed to mean the director or the gambling and liquor commission.
     (2)(a) All reports, documents, surveys, books, records, files, papers, or written material in the possession of the Washington state liquor control board shall be delivered to the custody of the gambling and liquor commission. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the Washington state liquor control board shall be made available to the gambling and liquor commission. All funds, credits, or other assets held by the Washington state liquor control board shall be assigned to the gambling and liquor commission.
     (b) Any appropriations made to the Washington state liquor control board shall, on the effective date of this section, be transferred and credited to the gambling and liquor 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, 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 Washington state liquor control board are transferred to the jurisdiction of the gambling and liquor commission. All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the gambling and liquor 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.
     (4) All rules and all pending business before the Washington state liquor control board shall be continued and acted upon by the gambling and liquor commission. All existing contracts and obligations shall remain in full force and shall be performed by the gambling and liquor commission.
     (5) The transfer of the powers, duties, functions, and personnel of the Washington state liquor control board 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) All classified employees of the Washington state liquor control board assigned to the gambling and liquor commission under this section whose positions are within an existing bargaining unit description at the gambling and liquor commission shall become a part of the existing bargaining unit at the gambling and liquor commission and shall be considered an appropriate inclusion or modification of the existing bargaining unit under the provisions of chapter 41.80 RCW.

NEW SECTION.  Sec. 10   RCW 66.08.012 (Creation of board--Chairman -- Quorum -- Salary) and 1961 c 307 s 7, 1949 c 5 s 8, 1945 c 208 s 1, 1937 c 225 s 1, & 1933 ex.s. c 62 s 63 are each repealed.