WSR 09-12-028



[ Filed May 26, 2009, 4:38 p.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 09-08-110.

Title of Rule and Other Identifying Information: WAC 230-10-380 Relief reduction for minimum annual adjusted cash flow.

Hearing Location(s): Inn at Gig Harbor, 3211 56th Street N.W., Gig Harbor, WA 98335, (253) 858-1111, on August 14, 2009, at 9:00 a.m.

Date of Intended Adoption: August 14, 2009.

Submit Written Comments to: Susan Arland, Rules Coordinator and Public Information Officer, P.O. Box 42400, Olympia, WA 98504-2400, e-mail, (360) 486-3466, fax (360) 486-3625, by August 1, 2009.

Assistance for Persons with Disabilities: Contact Gail Grate by August 1, 2009, TTY (360) 486-3637 or 1-800-345-2529.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The petitioner is requesting that bingo licensees have the ability to apply up to 49% of gambling taxes paid to local governments as a credit when computing expenses for adjusted cash flow requirements.

Staff recommends a housekeeping amendment to change "license" year to "calendar" year to reflect current agency practice.

The purpose of the change is to help bingo licensees that maintain a positive cash flow throughout the year to remain in compliance, when gambling taxes paid to local governments push them out of compliance.

The petitioner verbally stated to staff that last year he paid $78,000 in gambling taxes. In contrast, some jurisdictions do not charge charitable/nonprofit organizations a gambling tax. Mr. Bock stated that his organization pays 10% gambling tax on pull-tab net receipts and 2.5% on bingo net receipts. Until recently, he was paying 5% tax on bingo net receipts. The petitioner stated the rule change allows him to receive some recognition for taxes paid and brings his cash flow requirements more in line with bingo licensees that do not pay gambling taxes.

Reasons Supporting Proposal: See above.

Statutory Authority for Adoption: RCW 9.46.070.

Statute Being Implemented: None.

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

Name of Proponent: Clyde Bock, licensed bingo manager, public.

Name of Agency Personnel Responsible for Drafting: Susan Arland, Lacey, Washington, (360) 486-3466; Implementation: Rick Day, Lacey, Washington, (360) 486-3446; and Enforcement: Mark Harris, Lacey, Washington, (360) 486-3579.

No small business economic impact statement has been prepared under chapter 19.85 RCW. A small business economic impact statement was not prepared because the rule change would not impose additional costs on businesses.

A cost-benefit analysis is not required under RCW 34.05.328. The Washington state gambling commission is not an agency that is statutorily required to prepare a cost-benefit analysis under RCW 34.05.328.

May 26, 2009

Arlene K. Dennistoun

Staff Attorney


AMENDATORY SECTION(Amending Order 610, filed 4/24/07, effective 1/1/08)

WAC 230-10-380   Relief reduction for minimum annual adjusted cash flow.   (1) If a bingo licensee fails to meet the minimum annual adjusted cash flow requirements for any ((license)) calendar year and has maintained a positive cash flow, the licensee may apply as a credit up to forty-nine percent of gambling taxes paid to local governments when computing expenses for adjusted cash flow.

(2) If the licensee is still out of compliance, the director automatically grants relief, allowing ((a)) up to twenty-five percent reduction to the annual dollar amount of required adjusted cash flow for the year in which the licensee is out of compliance.

(((2))) (3) No licensee granted relief is eligible to receive relief for any of the four license years following the ((license)) calendar year for which the director granted the relief.

[Statutory Authority: RCW 9.46.070. 07-10-033 (Order 610), 230-10-380, filed 4/24/07, effective 1/1/08.]

Washington State Code Reviser's Office