WSR 97-19-082

PROPOSED RULES

GAMBLING COMMISSION

[Filed September 16, 1997, 4:30 p.m.]

Original Notice.

Preproposal statement of inquiry was filed as WSR 97-18-003 dated August 21, 1997.

Title of Rule: 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: Increase license fees per Initiative 601.

Statutory Authority for Adoption: RCW 9.46.070(5).

Summary: License fees are increased for different types of licenses held by commercial establishments, nonprofit organizations and individuals.

Reasons Supporting Proposal: Licensing fees need to be adjusted to reflect cost of regulating charitable/nonprofits, commercial establishments, and individuals.

Name of Agency Personnel Responsible for Drafting: Soojin Kim, Lacey, (360) 438-7654 ext. 310; Implementation: Ben Bishop, Lacey, (360) 438-7654 ext. 302; and Enforcement: Carrie Tellefson, Lacey, (360) 438-7654 ext. 373.

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 Summary and Reasons Supporting Proposal above.

Proposal Changes the Following Existing Rules: License fee increases apply to the following license types among others: Amusement games, bingo group, card games, fund-raising event, punchboards/pull tab, raffles, combination license, separate premises bingo, permits, among others. Fee increases apply to the following individuals: Charitable or nonprofit gambling manager, commercial gambling manager, distributor's or gambling services supplier representative, manufacturer's representative, and public card room employee.

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.

RCW 34.05.328 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: Shilo Inn, 707 Ocean Shores Boulevard N.E., Ocean Shores, WA 98569, (360) 298-4600, on November 14, 1997, at 10:00 a.m.

Assistance for Persons with Disabilities: Contact Susan Green by November 1, 1997, TDD (360) 438-7638, or (360) 438-7654 ext. 302.

Submit Written Comments to: Soojin Kim, Mailstop 42400, Olympia, Washington 98504-2400, FAX (360) 438-8652, by October 31, 1997.

Date of Intended Adoption: November 14, 1997.

September 16, 1997

Soojin Kim

Rules and Policy Coordinator

AMENDATORY SECTION (Amending WSR 97-14-012, filed 6/20/97, effective 7/21/97)

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 (($ 52)) $ 54

Class B Up to $10,000 (($ 52)) $ 54

Class C Up to $25,000 (($ 276)) $ 287

Class D Up to $50,000 (($ 443)) $ 460

Class E Over $50,000 (($ 772)) $ 803

* 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)

Class A Up to $ 15,000 (($ 52)) $ 54

Class B Up to $ 50,000 (($ 161)) $ 167

Class C Up to $ 100,000 (($ 329)) $ 342

Class D Up to $ 250,000 (($ 886)) $ 921

Class E Up to $ 500,000 (($ 1,492)) $ 1,552

Class F Up to $1,000,000 (($ 2,996)) $ 3,117

Class G Up to $1,500,000 (($ 4,324)) $ 4,499

Class H Up to $2,000,000 (($ 5,776)) $ 6,009

Class I Up to $2,500,000 (($ 7,216)) $ 7,508

Class J Up to $3,000,000 (($ 8,658)) $ 9,008

Class K Up to $3,500,000 (($ 9,712)) $10,105

Class L Up to $4,000,000 (($11,102)) $11,551

Class M Over $4,000,000 (($12,492)) $12,997

and above

3. card games

Class A General (Fee to play charged) (($ 553)) $ 575

Class B Limited card games - hearts,

rummy, mahjongg,

pitch, pinochle, and cribbage

(Fee to play charged) (($ 161)) $ 167

Class C Tournament only - no more than

ten consecutive days per tournament (($ 52)) $ 54

Class D General (No fee to play charged) (($ 52)) $ 54

4. fund-raising event

Class A One event - not more than

24 consecutive hours (($ 329)) $ 342

Class B One event - not more than

72 consecutive hours (($ 553)) $ 575

Class C Additional participant in joint

event (not lead organization) (($ 161)) $ 167

Class D Fund-Raising Event Equipment (($ 219)) $ 227

Distributor - rents or leases,

equipment for fund-raising event

or recreational gaming activity

for no more than ten times per

year*

Class E Fund-Raising Event Equipment (($ 553)) $ 575

Distributor - rents or leases

equipment for fund-raising event

or recreational gaming activity more

than ten times per year.

* 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. punchboards/

pull tabs (Fee based on annual gross

gambling receipts) variance*

Class A Up to $ 50,000 $ 5,000 (($ 527))

$ 548

Class B Up to $ 100,000 $ 5,000 (($ 940))

$ 978

Class C Up to $ 200,000 $10,000 (($1,774))

$ 1,845

Class D Up to $ 300,000 $10,000 (($2,578))

$ 2,682

Class E Up to $ 400,000 $10,000 (($3,330))

$ 3,464

Class F Up to $ 500,000 $10,000 (($4,020))

$ 4,182

Class G Up to $ 600,000 $10,000 (($4,658))

$ 4,846

Class H Up to $ 700,000 $10,000 (($5,242))

$ 5,454

Class I Up to $ 800,000 $10,000 (($5,776))

$ 6,009

Class J Up to $1,000,000 $20,000 (($6,548))

$ 6,813

Class K Up to $1,250,000 $25,000 (($7,268))

$ 7,562

Class L Up to $1,500,000 $25,000 (($7,938))

$ 8,259

Class M Up to $1,750,000 $25,000 (($8,490))

$ 8,833

Class N Up to $2,000,000 $25,000 (($8,992))

$ 9,356

Class O Over $2,000,000 Nonapplicable (($9,880))

$10,280

* 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 (($ 52)) $ 54

Class B Up to $10,000 (($ 161)) $ 167

Class C Up to $25,000 (($ 329)) $ 342

Class D Up to $50,000 (($ 553)) $ 575

Class E Up to $75,000 (($ 886)) $ 921

Class F Over $75,000 (($ 1,326)) $ 1,379

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. (($ 100)) $ 104

class b Allows gross gambling receipts of up to

$60,000 from bingo, $15,000 from raffles,

and $15,000 from amusement games, not (([t])) to

exceed $75,000 combined gross(([]])) gambling

receipts from all such activities. Allows

general card games where no fee to play is

charged. (($ 260)) $ 270

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. (($ 600)) $ 624

8. separate premises

bingo Per occasion (see WAC 230-04-300) (($ 26))

$ 27

9. permits

agricultural (See WAC 230-04-191) (($ 26)) $ 27

fair-bingo

recreational (See WAC 230-25-330 (($ 52)) $ 54

gaming activity and 230-02-505)

(rga)

10. changes

name (See WAC 230-04-310) (($ 26)) $ 27

location (See WAC 230-04-320) ($ 26)) $ 27

fre (Date or time) (See (($ 26)) $ 27

WAC 230-04-325)

license class (See WAC 230-04-260) (($ 26)) $ 27

duplicate (See WAC 230-04-290) (($ 26)) $ 27

license

11. special fees

investigation (See WAC 230-04-240) As required

replacement (See WAC 230-08-017) (($ 26)) $ 27

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,v

paraphernalia,

services, or

schemes

12. six-month (See WAC 230-04-190) (($ 26))

payment plan $ 27

[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.]

NOTES:

Reviser's note: RCW 34.05.395 requires the use of underlining and deletion marks to indicate amendments to existing rules, and deems ineffectual changes not filed by the agency in this manner. The bracketed material in the above section does not appear to conform to the statutory requirement.

Reviser's note: The typographical error in the above section occurred in the copy filed by the agency and appears in the Register pursuant to the requirements of RCW 34.08.040.

AMENDATORY SECTION (Amending WSR 97-14-012, filed 6/20/97, effective 7/21/97)

WAC 230-04-203 Fees--Commercial stimulant and other business organizations. All persons seeking to operate gambling activities at business locations 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 Limited card games - hearts, (($ 161))

rummy, pitch, pinochle, $ 167

mahjongg, and/or cribbage (Fee to

play charged)

Class C Tournament only, no more than ten (($ 161))

consecutive days per tournament. $ 167

Class D General (No fee to play charged) (($ 52))

$ 54

Class E General (Fee to play charged)

E-1 One table only (($ 386))

$ 401

E-2 Up to two tables (($ 663))

$ 689

E-3 Up to three tables (($1,106))

$1,150

E-4 Up to four tables (($2,214))

$2,303

E-5 Up to five tables (($3,330))

$3,464

2. commercial

amusement (Fee based on annual gross

gambling receipts)

games

* Class A Premises only ** (($276/$126))

$287/$131

Class B Up to $ 50,000 (($ 386))

$ 401

Class C Up to $ 100,000 (($ 992))

$1,032

Class D Up to $ 250,000 (($2,214))

$2,303

Class E Up to $ 500,000 (($3,884))

$4,041

Class F Up to $1,000,000 (($6,662))

$6,931

Class G Over $1,000,000 (($8,334))

$8,671

* 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 $150 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.

3. punchboards/

pull tabs (Fee based on annual gross

gambling receipts)

variance*

Class A Up to $50,000 $ 5,000 (($ 527))

$ 548

Class B Up to $100,000 $ 5,000 (($ 940))

$ 978

Class C Up to $200,000 $10,000 (($1,774))

$ 1,845

Class D Up to $300,000 $10,000 (($2,578))

$ 2,682

Class E Up to $400,000 $10,000 (($3,330))

$ 3,464

Class F Up to $500,000 $10,000 (($4,020))

$ 4,182

Class G Up to $600,000 $10,000 (($4,658))

$ 4,846

Class H Up to $700,000 $10,000 (($5,242))

$ 5,454

Class I Up to $800,000 $10,000 (($5,776))

$ 6,009

Class J Up to $1,000,000 $20,000 (($6,548))

$ 6,813

Class K Up to $1,250,000 $25,000 (($7,268))

$ 7,562

Class L Up to $1,500,000 $25,000 (($7,938))

$ 8,259

Class M Up to $1,750,000 $25,000 (($8,490))

$ 8,833

Class N Up to $2,000,000 $25,000 (($8,992))

$ 9,356

Class O Over $2,000,000 Nonapplicable (($9,880))

$10,280

* 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.

4. distributor (Fee based on annual gross sales

of gambling related supplies and

equipment)

(a) Class A Nonpunchboard/pull tab only (($ 553))

$ 575

Class B Up to $ 250,000 (($1,106))

$1,150

Class C Up to $ 500,000 (($1,660))

$1,727

Class D Up to $1,000,000 (($2,214))

$2,303

Class E Up to $2,500,000 (($2,882))

$2,998

Class F Over $2,500,000 (($3,550))

$3,693

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- (($219)) $227

raising event or recreational gaming

activity up to 10 times per year.

Class B Rents or leases equipment for fund- (($553)) $575

raising event or recreational gaming

activity more than 10 times per year.

5. manufacturer (Fee based on annual gross sales

of gambling related supplies and

equipment)

Class A Machines only (($ 553))

$ 575

Class B Up to $ 250,000 (($1,106))

$1,150

Class C Up to $ 500,000 (($1,660))

$1,727

Class D Up to $1,000,000 (($2,214))

$2,303

Class E Up to $2,500,000 (($2,882))

$2,998

Class F Over $2,500,000 (($3,550))

$3,693

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, and renewal of licenses when travel cost is incurred to complete the investigation.

6. permits

agricultural fair/

special property

bingo

Class A One location and event only (($ 26))

(See WAC 230-04-191) $ 27

Class B Annual permit for specified (($161))

different events and locations $167

(See WAC 230-04-193)

recreational (See WAC 230-02-505

gaming activity and 230-25-330) (($ 52))

(RGA) $ 54

7. changes

name (See WAC 230-04-310) (($26))

$27

location (See WAC 230-04-320) (($26))

$27

business (Same owners) (($52))

$54

classification (See WAC 230-04-340)

license class (See WAC 230-04-260)

New class fee, less

previous fee paid, plus (($26))

$27

duplicate (See WAC 230-04-290) (($26))

license $27

ownership (See WAC 230-04-340) (($52))

of stock $54

license (See WAC 230-04-125, (($52))

transfers 230-04-340, and $54

230-04-350)

8. special fees

investigation (See WAC 230-04-240) As required

identification and (See WAC 230-08-017) As required

inspection

services stamps

quality control (See WAC 230-30-030) As required

inspection fees

replacement of (($26))

identification $27

stamps (See WAC 230-30-017)

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

special sales (See WAC 230-04-115) As required

permits

9. six-month (See WAC 230-04-190) (($26))

payment plan $27

[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.]

AMENDATORY SECTION (Amending Order 304, filed 11/21/96, effective 1/1/97)

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 (($161)) $167

Renewal (($78)) $81

Change of Employer (($78)) $81

2. commercial

gambling manager Original (($161)) $167

Renewal (($78)) $81

Change of Employer (($78)) $81

3. distributor's or

gambling services

supplier

representative Original (($219)) $227

Renewal (($135)) $140

((Change of Employer $52))

4. manufacturer's

representative Original (($219)) $227

Renewal (($135)) $140

5. public card class a

room employee Original (($161)) $167

Renewal (($78)) $81

class b*

Original,

in-state $217

Original,

out-of-state $271

Renewal $135

* Supports card rooms

having special

approved activities

as specified in

WAC 230-04-203(1)

Class B employees

will be required to

submit fingerprints

with their applications

6. other fees

change of name (See WAC 230-04-310) (($26)) $27

duplicate license (See WAC 230-04-290) (($26)) $27

replacement

out-of-state (See WAC 230-04-240) As required

records inquiry