WSR 14-23-049

PERMANENT RULES

GAMBLING COMMISSION

[Order 710—Filed November 14, 2014, 3:00 p.m., effective December 15, 2014]

Effective Date of Rule: Thirty-one days after filing.

Purpose: At their November 2014 meeting, the commissioners adopted a petition for rule change submitted by two bingo licensees. With these rule changes, bingo licensees with annual gross gambling receipts over 1.5 million dollars will no longer have to meet quarterly and yearly "cash flow" requirements, which is calculated based on the quarterly activity reports they submit. Instead, licensees will need to show a positive cash flow when they submit their annual financial statements to the commission. These financial statements would continue to be prepared in accordance with WAC 230-07-150.

In addition, associated rules allowing a reduction for taxes paid and an automatic twenty-five percent reduction of the cash flow requirements are repealed.

There are currently eight licensees who are impacted by this petition because they have annual gross gambling receipts from bingo and punch board/pull-tab (PB/PT) activities over 1.5 million dollars.

Citation of Existing Rules Affected by this Order: Amending WAC 230-10-375; and repealing WAC 230-10-370 and 230-10-380.

Statutory Authority for Adoption: RCW 9.46.070, 9.46.0209.

Adopted under notice filed as WSR 14-19-113 on September 17, 2014.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 1, Repealed 2.

Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 0, Repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.

Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 1, Repealed 2.

Date Adopted: November 14, 2014.

Susan Newer

Rules Coordinator

AMENDATORY SECTION (Amending WSR 07-10-033, filed 4/24/07, effective 1/1/08)

WAC 230-10-375 Failing to maintain a positive cash flow.

(1) Bingo licensees must measure adjusted cash flow ((quarterly)) to ensure that they maintain a positive cash flow and are not operating primarily for gambling purposes.

(2) If a licensee does not maintain a positive cash flow from the bingo operation ((during any two consecutive license year quarters, measured independently)) as reflected in their annual financial statement as prepared in accordance with WAC 230-07-150, the director ((summarily suspends)) will take administrative action to revoke the organization's bingo license.

(((3) If a licensee fails to meet the adjusted cash flow requirements for any calendar year, we take administrative action to revoke the organization's bingo license.))

REPEALER

The following sections of the Washington Administrative Code are repealed:


WAC 230-10-370	Ticket sales and receipting for three number speed bingo income [Adjusted cash flow limits for bingo].
WAC 230-10-380	Drawings for prizes, good neighbor prizes, and second element of chance prizes as part of bingo games [Relief reduction for minimum annual adjusted cash flow].

Reviser's note: The bracketed information above was added by the code reviser's office to display the correct captions of WAC 230-10-370 and 230-10-380.