WSR 15-03-023
[Filed January 9, 2015, 11:10 a.m.]
Original Notice.
Preproposal statement of inquiry was filed as WSR 14-21-123.
Title of Rule and Other Identifying Information: WAC 230-05-001 Prorating or refunding of fees, 230-05-010 Returned checks, and 230-06-140 Partial refund of license fees if gambling receipts limit not met.
Hearing Location(s): DoubleTree by Hilton Olympia, 415 Capitol Way North, Olympia, WA 98501, (360) 570-0555, on March 12 or 13, 2015, at 9:00 a.m. or 1:00 p.m. NOTE: Meeting dates and times are tentative. Visit our web site at and select public meeting about ten days before the meeting to confirm meeting date/location/start time.
Date of Intended Adoption: March 12 or 13, 2015.
Submit Written Comments to: Susan Newer, P.O. Box 42400, Olympia, WA 98504-2400, e-mail, fax (360) 486-3625, by March 1, 2015.
Assistance for Persons with Disabilities: Contact Michelle Rancour by March 1, 2015, TTY (360) 486-3637 or (360) 486-3453.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The proposed changes allow us to retain our processing costs for the following refunds:
Duplicate payments; and
Prior year refunds (refunding the difference between the fees the licensee paid the previous year and the fees for the license class level actually met).
The proposed change also increases the processing costs we charge for collecting nonsufficient fund (NSF) payments.
History of the Rules:
Refunds: WAC 230-05-001(4): This rule allows us to retain a portion of the license fees to offset our costs for processing and investigating applications that are denied, voluntarily withdrawn, and administratively closed.
WAC 230-05-001(5) and 230-06-140(2): When licensees operate at a license class lower than their license, they can request a refund of the difference between the license class they operated at and the fee they paid.
NSF Recovery: WAC 230-05-010: In 1990, this rule allowed us to collect $15 to process an NSF check as payment of fees. In July 2005, the rule was amended to increase the fee to $30, which is what the fee is currently.
Impact of the Proposed Changes:
Refunds: We issue refunds for the following reasons: Prorated license fees, license limits not met, applications withdrawn or administratively closed, overpayment or duplicate payment, and refunding fees placed on deposit to complete an investigation or review.
The number and amount of refunds issued each year for overpayments, duplicate payments and license limits not met the previous year is summarized below:
Refunds Issued
Total Refunded
(through November 30)
It takes staff time to process each of these refunds. Currently, licensees do not pay our processing costs for issuing refunds when license limits are not met, for refunding overpayments or duplicate payments.
NSF Recovery: The number of NSF payments is increasing. The following is a breakdown of the NSFs received in the last few years:
(through October 31)
NSFs have increased because licensees are not entering their account and/or routing number correctly when paying online. Our online payment page includes a note about the importance of correctly inputting banking information and we also ask them to input banking information twice to catch any inputting errors.
This rule change will allow us to recoup our actual processing costs for all NSF payments without additional rule changes. This change would also allow us to recoup our processing costs for credit card and electronic check payments we may accept in the future. We will post our processing costs on our web site and update the information as it changes. 
Statutory Authority for Adoption: RCW 9.46.070.
Statute Being Implemented: Not applicable.
Rule is not necessitated by federal law, federal or state court decision.
Name of Proponent: Washington state gambling commission, governmental.
Name of Agency Personnel Responsible for Drafting: Susan Newer, Lacey, (360) 486-3466; Implementation: David Trujillo, Director, Lacey, (360) 486-3512; and Enforcement: Mark Harris, Assistant Director, Lacey, (360) 486-3579.
No small business economic impact statement has been prepared under chapter 19.85 RCW. A small business economic impact statement is not required for each rule change because the rules impose less than minor costs based on staff's analysis.
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.
January 9, 2015
Susan Newer
Rules Coordinator
AMENDATORY SECTION (Amending WSR 07-21-116, filed 10/22/07, effective 1/1/08)
WAC 230-05-001 Prorating or refunding of fees.
(1) We may prorate organization license fees when we adjust expiration dates to schedule our workload.
(2) We may adjust expiration dates to end on the same day for organizations licensed for more than one activity. Whenever we adjust license expiration dates under this provision, we may prorate the required fees.
(3) We will not prorate or refund fees when:
(a) You discontinue your gambling activities; or
(b) You voluntarily surrender your license or permit; or
(c) We suspend or revoke your license.
(4) We keep a portion of your application or license fees ((whether we)) for processing costs when:
(a) We deny or administratively close your application; or
(b) You withdraw ((it)) your application; or
(c) You overpaid us; or
(d) We received duplicate license fees.
(5) If you are a commercial stimulant or a charitable or nonprofit licensee, you have one year from your license expiration to apply for a partial refund of your license fee if your annual gross gambling receipts are less than the minimum for your license class. After our approval, we refund you the difference between the fees you paid and the fees for the license class level you actually met less our processing costs.
AMENDATORY SECTION (Amending WSR 06-07-157, filed 3/22/06, effective 1/1/08)
WAC 230-05-010 ((Returned checks.)) Nonsufficient fund payments.
(1) If your bank returns your ((check)) payment for license fees to us for any reason, you must:
(a) Pay us in full, by certified check, money order, or cash, within five days of notification; and
(b) ((Pay an additional)) Reimburse our processing ((charge of thirty dollars)) costs, which would include, but not be limited to, time spent notifying you and seeking payment.
(2) If you fail to pay within five days of notification:
(a) We will administratively close your application; or
(b) Your license expires and all gambling activity must stop.
(3) If we administratively close your application or your license expires, you must give us a new application with fees paid by certified check, money order, or cash in order to be considered for a license.
AMENDATORY SECTION (Amending WSR 06-17-132, filed 8/22/06, effective 1/1/08)
WAC 230-06-140 Partial refund of license fees if gambling receipts limit not met.
(1) Licensees may apply for a partial refund of their license fee when their annual gross gambling receipts are less than the minimum for the class of license we issued to them.
(2) Licensees may receive a refund for the difference between the fees actually paid and the fees that would normally apply to the level of gross gambling receipts actually received during the period less our processing costs.
(3) Licensees may make their request for refund after the end of any annual license period and before the end of the next annual license period.