PERMANENT RULES
Date of Adoption: August 13, 1999.
Purpose: This rule was amended to require food and/or drink businesses to be open to the public at all times gambling activities are operated.
Citation of Existing Rules Affected by this Order: Amending WAC 230-04-080.
Statutory Authority for Adoption: RCW 9.46.070.
Adopted under notice filed as WSR 99-13-206 on June 23, 1999, with a publication of July 7, 1999.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.
Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 1, Repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.
Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 1, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0. Effective Date of Rule: Thirty-one days after filing.
August 18, 1999
Susan Arland
Rules Coordinator
OTS-3113.1
AMENDATORY SECTION(Amending WSR 95-07-094, filed 3/17/95,
effective 7/1/95)
WAC 230-04-080
Certain activities to be operated as a
commercial stimulant only--Licensing of food and/or drink
businesses.
The commission may issue a license to operate punch boards and pull-tabs or public card rooms as commercial stimulants to any established business primarily engaged in the sale of food and/or drink items for consumption on the licensed premises. Such activities shall not be operated other than as a commercial stimulant and the food and/or drink business shall be open and providing service to the general public at all times gambling activities are operated. The following requirements apply to applicants for a license to use gambling activities to stimulate food and/or drink sales:
(1) For purposes of chapter 9.46 RCW and these rules, a business shall be presumed to be a "food and/or drink business" as defined by WAC 230-02-370 if:
(a) It is licensed by the liquor control board to sell alcohol beverages at retail to the public for on-premises consumption and:
(i) It is a tavern that holds a valid Tavern - No Persons Under 21 Allowed License (formerly referred to as a Class "B" liquor license); or
(ii) It is a restaurant with a cocktail lounge that holds a valid Spirits, Beer and Wine Restaurant License (formerly referred to as a Class "H" liquor license).
(b) It sells food and/or drink items at retail to the public and:
(i) All food is prepared and served for consumption on the licensed premises: Provided, That food may be prepared at other locations and served on the premises if the food is:
(A) Prepared by the licensed business; or
(B) Purchased from caterers by the licensed business as a wholesale transaction and resold to customers at retail.
(ii) The total gross sales of food and/or drink, for on-premises consumption, is equal to or greater than all other combined nongambling gross sales, rentals, or other income producing activities which occur on the licensed premises when measured on an annual basis. Applicants seeking qualification for a license under this subsection shall submit data necessary to evaluate compliance with these requirements as a part of their application. For purposes of determining total gross sales of food and drink for on-premises consumption, meals furnished to employees, free of charge, shall be treated as sales only if:
(A) Detailed records are maintained;
(B) The sale is recorded at estimated cost or menu price, but not more than five dollars per meal; and
(C) No more than one meal per employee is recorded during any four-hour work shift.
(2) When an individual, partnership, or corporation operates two or more businesses within the same building or building complex and such businesses meet the requirements of subsection (1)(a) or (b) of this section, one of the businesses may be designated as a "food and/or drink business" if all of the following conditions are met:
(a) The business being stimulated is physically isolated from all other businesses by walls and doors that clearly demonstrate the business is separate from other business being transacted at that location;
(b) All business transactions conducted by the applicant business are separated from the transactions conducted by all other businesses:
(i) Legally in the form of a separate corporation or partnership; or
(ii) By physical separation of all sales and accounting functions, and the methods of separation are approved by the commission;
(c) All gambling activities are located and occur upon the licensed premises, as defined in the license application and approved by the commission; and
(d) All gambling activities occur only when the food and/or drink business is open for customer service.
[Statutory Authority: RCW 9.46.070 and 9.46.0217. 95-07-094, § 230-04-080, filed 3/17/95, effective 7/1/95; Order 23, § 230-04-080, filed 9/23/74.]