Effective Date of Rule: July 1, 2010.

     Purpose: We provide forms used for reporting annual progress to the licensee. These forms notify licensees that the form should be returned no later than one hundred twenty days after their fiscal year end. Before the rules simplification project (RSP), our rules required charitable and nonprofit licensees to provide several pieces of information demonstrating that they met required progress toward meeting their stated purpose. The former version of this rule required this information to be submitted to the commission no later than one hundred twenty days after the end of the licensee's fiscal year. The licensee could also request an extension to submit the forms. This requirement was originally part of one long rule. During RSP, the long rule was broken into two rules and the one hundred twenty day requirement and the extension were omitted from one of the rules. This amendment restores:

     (1) The one hundred twenty day reporting requirement for our largest charitable and nonprofit licensees to report the required annual progress after the end of each fiscal year; and

     (2) The licensee's ability to request an extension to submit the forms; and

     (3) Housekeeping: Minor wording changes to subsections (1) and (2), "and" was added consistently between subsections, and subsections were renumbered.

     Citation of Existing Rules Affected by this Order: Amending WAC 230-07-145.

     Statutory Authority for Adoption: RCW 9.46.070.

      Adopted under notice filed as WSR 10-05-102 on February 17, 2010.

     Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 1, Repealed 0.

     Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 1, Repealed 0.

     Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0;      Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 1, Repealed 0.

     Date Adopted: April 13, 2010.

Susan Arland

Rules Coordinator

OTS-3020.3

AMENDATORY SECTION(Amending Order 609, filed 4/24/07, effective 1/1/08)

WAC 230-07-145   Reporting annual progress.   Charitable or nonprofit licensees in Groups III, IV, and V must report annually their progress toward meeting their stated purpose in the format we prescribe.

     ((This)) (1) The report must explain the type and scope of activities which licensees conducted during their last annual fiscal accounting period((. In addition,)); and

     (2) The report must include, at least:

     (((1))) (a) A brief history of the licensed organization, including its stated charitable or nonprofit purpose(s); and

     (((2))) (b) A written statement setting out their goals for meeting their stated charitable or nonprofit purpose(s) in the future; and

     (((3))) (c) The number of full and regular members; and

     (((4))) (d) A list of contributions, scholarships, grants, or sponsorships made during the period. This list must include:

     (((a))) (i) The name of each organization or individual receiving a contribution from the licensee. The licensee may use the phrase "individual contribution" in place of the recipient. If the recipient is not named in the report, the licensee must maintain records to verify and identify the recipient of each individual contribution; and

     (((b))) (ii) Whether funds awarded were from gambling income or other funds; ((and

     (5))) (e) Gross income from all nongambling activities and the source of the income; and

     (((6))) (f) The revenue and expenses for any nongambling sales activities, presented separately, when conducted primarily in conjunction with gambling activities; and

     (((7))) (g) Total expenses for both charitable or nonprofit services; and

     (((8))) (h) The percentage or extent to which the licensee used net gambling income for charitable as distinguished from nonprofit purposes; and

     (((9))) (i) The details of any loans, contracts, or other business transactions with related parties that accumulatively exceed one thousand dollars during the period. "Related parties" means officers, board members, key employees, or members of the licensed organization, including direct relatives of each((.)); and

     (3) The report must be submitted no later than one hundred twenty days following the end of the organization's fiscal year.

     (4) We may grant an organization additional time to submit the report if a written request is received before the due date. The president of the organization must sign any request for additional time and include a statement explaining the hardship causing the delay, and the expected date the required report(s) will be submitted.

[Statutory Authority: RCW 9.46.070. 07-10-032 (Order 609), § 230-07-145, filed 4/24/07, effective 1/1/08.]

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