WSR 98-05-070

PROPOSED RULES

LOTTERY COMMISSION

[Filed February 17, 1998, 2:53 p.m.]

Original Notice.

Preproposal statement of inquiry was filed as WSR 97-01-006 [98-01-006].

Title of Rule: WAC 315-34-055 Lotto prize claim and payment methods.

Purpose: Amends WAC 315-34-055 to extend the payment period for Lotto jackpot winners.

Statutory Authority for Adoption: RCW 67.70.040.

Statute Being Implemented: RCW 67.70.040.

Summary: See Purpose above.

Reasons Supporting Proposal: See Explanation of Rule below.

Name of Agency Personnel Responsible for Drafting: Mary Jane Ferguson, Rules Coordinator, Olympia, (360) 753-1947; Implementation and Enforcement: Merritt D. Long, Director, Olympia, (360) 753-3330.

Name of Proponent: Washington State Lottery Commission, governmental.

Rule is not necessitated by federal law, federal or state court decision.

Explanation of Rule, its Purpose, and Anticipated Effects: WAC 315-34-055 explains to players and retailers how Lotto jackpot winners are paid. Changes the payment period for Lotto jackpot winners.

Proposal Changes the Following Existing Rules: Extends the payment period for Lotto jackpot winners from twenty to twenty-five years.

No small business economic impact statement has been prepared under chapter 19.85 RCW. The lottery has considered whether these rules are subject to the Regulatory Fairness Act, chapter 19.85 RCW, and has determined that they are not for the following reasons: (1) The rules have no economic impact on business' cost of equipment, supplies, labor or administrative costs. The rules are designed to establish rules and procedures for the playing of instant lottery games; and (2) the rules will have a negligible impact, if any, on business because they are interpretive. They have been promulgated for the purpose of stating policy, procedure and practice and do not include requirements for forms, fees, appearances or other actions by business.

RCW 34.05.328 does not apply to this rule adoption. Said section does not apply to these proposed rules because they are not proposed by one of the listed agencies. As the rules are merely interpretive, the lottery does not voluntarily apply this section.

Hearing Location: Washington State Lottery, 814 Fourth Avenue, Olympia, WA 98504, on March 27, 1998, at 10:00 a.m.

Assistance for Persons with Disabilities: Contact Mary Jane Ferguson by March 11, 1998, (360) 753-1947.

Submit Written Comments to: Mary Jane Ferguson, Lottery, FAX (360) 586-6586, by March 19, 1998.

Date of Intended Adoption: March 27, 1998.

February 12, 1998

Mary Jane Ferguson

Rules Coordinator

AMENDATORY SECTION (Amending WSR 97-24-076, filed 12/2/97, effective 1/2/98)

WAC 315-34-055 Lotto prize claim and payment methods. The following sets forth requirements for claims and payment of Lotto prizes:

(1) Claims for prize payment shall be made in accordance with WAC 315-30-030(6).

(2) Prize payments shall be made as follows:

(a) Annuity: A player who elects their prize to be paid annually shall be paid as follows:

(i) If the player's share of the announced jackpot prize is $500,000 or more, the player shall be paid in ((twenty)) twenty-five annual installment payments.

(ii) If the player's share of the announced jackpot prize is less than $500,000, the director shall have the discretion of paying the winner as follows:

(A) The present cash value of the jackpot prize share based on the cost to purchase a ((twenty-year)) twenty-five-year annuity: Provided, That the present cash value is equal to or greater than fifty percent of their share of the announced jackpot;

(B) If the present cash value of the player's share of the announced jackpot is less than fifty percent of their share of the announced jackpot, then the player shall receive a one-time single cash payment of fifty percent of their share of the announced jackpot; or

(C) The player shall be paid in ((twenty)) twenty-five annual installment payments.

(b) Cash option: A player who elects the cash option shall be paid as follows:

(i) The player shall receive a one-time single cash payment of fifty percent of their share of the announced jackpot; or

(ii) If the director exercises his or her discretion as set forth in (a)(ii)(A) or (B) of this subsection, a player who elects the cash option will receive the same amount as those who have chosen to receive an annuity.