WSR 98-24-087
PROPOSED RULES
GAMBLING COMMISSION
[Filed December 1, 1998, 2:03 p.m.]
Original Notice.
Preproposal statement of inquiry was filed as WSR 98-22-028 with a published date of November 18, 1998.
Title of Rule: Temporary moratorium for complying with net return requirements.
Purpose: A study will be conducted to determine if the net return requirements for charitable/nonprofit licensees should be reduced. By placing a temporary moratorium for complying with the net return requirements during the study period bingo operators who meet the moratorium requirements will not have their license class limited, allowing them to continue their operations at current levels.
Statutory Authority for Adoption: RCW 9.46.070.
Summary: See Purpose above.
Reasons Supporting Proposal: Charitable/nonprofit bingo licensees report they are finding it increasingly difficult to meet the net return requirements and expect future changes in gaming activities state-wide to have further impacts. A study will be conducted to determine if the net return requirements should be reduced.
Name of Agency Personnel Responsible for Drafting: Susan Arland, Lacey, (360) 438-7654 ext. 374; Implementation: Ben Bishop, Lacey, (360) 438-7640; and Enforcement: Sherri Winslow, Lacey, (360) 438-7654 ext. 301.
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 Purpose and Reasons Supporting Proposal above.
Proposal Changes the Following Existing Rules: See Purpose and Reasons Supporting Proposal above.
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.
Section 201, chapter 403, Laws of 1995, 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: LaConner Country Inn, 107 South Second Street, LaConner, WA 98257, (360) 466-3101, on January 15, 1999, at 1:30 p.m.
Assistance for Persons with Disabilities: Contact Susan Yeager by January 6, 1999, TDD (360) 438-7638, or (360) 438-7654 ext. 302.
Submit Written Comments to: Susan Arland, Mailstop 42400, Olympia, WA 98504-2400, fax (360) 438-8652, by January 6, 1999.
Date of Intended Adoption: January 15, 1999.
December 1, 1998
Susan Arland
Rules Coordinator
NEW SECTION
WAC 230-20-058 Temporary moratorium for complying with net return requirements. In order to study the possible impacts of factors beyond a charitable/nonprofit licensee's control which may affect its ability to meet requirements set forth in WAC 230-20-059, the commission imposes a moratorium on the mandatory reduction requirement of WAC 230-20-062 and the variance requirement of WAC 230-20-060, as set forth below:
(1) Any charitable/nonprofit licensee that fulfills the following requirements shall be allowed to operate at its current bingo license class:
(a) The licensee informs the commission in writing that it meets the requirements of this section; it wishes to participate in the study, and it outlines the steps it is taking to meet its license class requirements;
(b) The licensee is within five percent of the annual net return requirement for its license class during its measurement period ending on or after December 31, 1998, to the end of the moratorium; and
(c) Licensees operating at classes that provide for an annual minimum net return below five percent as set out in WAC 230-20-059 shall be required to maintain a positive cash flow as defined in WAC 230-02-138 for the measurement period.
(2) Licensees not fulfilling the requirements outlined in (1) of this section are subject to penalties and reductions in license class as set forth in 230-20-062 (3) and (4), respectively.
(3) A licensee that is outside of five percent of meeting the net return requirements will receive a "Notice of License Limitation" and may petition the commission for additional relief from the requirements.
(4) If any licensee requests an upgrade pursuant to WAC 230-04-260, the percentages set forth in WAC 230-20-059 less five percentage points would apply. However, the licensee must maintain a positive cash flow as defined in WAC 230-02-138 for the measurement period.
(5) The moratorium as set forth in this section applies to licensees with measurement periods ending December 31, 1998, and thereafter to the end of the moratorium. The moratorium will conclude February 29, 2000, or on such date to be determined by the commission. The moratorium applies only to those licensees meeting the requirements set forth in (1) of this section. It does not apply to any other licensee requirements.
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