WSR 99-21-077

PROPOSED RULES

GAMBLING COMMISSION


[ Filed October 20, 1999, 10:07 a.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 99-19-053 with a published date of October 6, 1999.

Title of Rule: WAC 230-04-202 Fees--Bona fide charitable/nonprofit organizations, 230-04-203 Fees--Commercial stimulant and other business organizations, and 230-04-204 Fees--Individuals.

Purpose: Increase license fees per Initiative 601. Rule changes would also require licensure of dealer schools and their instructors, and of businesses that assemble and supply components to licensed manufacturers.

Statutory Authority for Adoption: RCW 9.46.070.

Summary: License fees are increased for different types of licenses held by commercial establishments, nonprofit organizations and individuals.

Reasons Supporting Proposal: Licensing fees need to be adjusted to reflect cost of regulating charitable/nonprofits, commercial establishments, and individuals.

Name of Agency Personnel Responsible for Drafting: Susan Arland, Lacey, (360) 438-7654 ext. 374; Implementation: Ben Bishop, Lacey, (360) 438-7640; and Enforcement: Sherri Winslow, Lacey, (360) 438-7654 ext. 301.

Name of Proponent: Staff, governmental.

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

Explanation of Rule, its Purpose, and Anticipated Effects: See above.

Proposal Changes the Following Existing Rules: See above.

No small business economic impact statement has been prepared under chapter 19.85 RCW. Proposal is exempt under RCW 19.85.025(2), therefore, a small business economic impact statement is not required.

Section 201, chapter 403, Laws of 1995, does not apply to this rule adoption. This agency does not choose to make section 201, chapter 403, Laws of 1995, apply to this rule adoption.

Hearing Location: Port Ludlow Conference Center, 200 Olympic Place, Port Ludlow, WA 98365, (360) 437-2222, on November 30, 1999, at 1:30 p.m.

Assistance for Persons with Disabilities: Contact Shirley Corbett by November 22, 1999, TDD (360) 438-7638, or (360) 438-7654 ext. 302.

Submit Written Comments to: Susan Arland, Mailstop 42400, Olympia, Washington 98504-2400, fax (360) 438-8652, by November 22, 1999.

Date of Intended Adoption: November 30, 1999.

October 20, 1999

Susan Arland

Rules Coordinator

OTS-3436.2


AMENDATORY SECTION(Amending Order 366, filed 10/9/98, effective 11/9/98)

WAC 230-04-202
Fees--Bona fide charitable/nonprofit organizations.

Bona fide charitable and nonprofit organizations shall submit the following fees to the commission when applying for gambling licenses, permits, miscellaneous changes, inspection services, or when assessed the cost of special investigation procedures by the commission:

LICENSE TYPE DEFINITION FEE
1. AMUSEMENT GAMES (Fee based on annual gross gambling receipts)
*Class A Premises only $ ((52))

53
Class B Up to $ 10,000 $ ((52))

53
Class C Up to $ 25,000 $ ((276))

285
Class D Up to $ 50,000 $ ((443))

457
Class E Over $ 50,000 $ ((772))

797

* Allows a charitable or nonprofit organization to enter into a contract with Class "B" or above commercial amusement game licensee to locate and operate amusement games on their premises.

2.BINGO GROUP
(Fee based on annual gross

gambling receipts)

 VARIANCE *
Class A Up to $ 15,000 $ 1,000 $ ((52))

53
Class B Up to $ 50,000 $ 1,000 $ ((161))

166
Class C Up to $ 100,000 $ 2,000 $ ((329))

339
Class D Up to $ 250,000 $ 4,000 $ ((886))

915
Class E Up to $ 500,000 $ 8,000 $ ((1,492))

1,541
Class F Up to $ 1,000,000 $ 15,000 $ ((2,996))

3,095
Class G Up to $ 1,500,000 $ 23,000 $ ((4,324))

4,467
Class H Up to $ 2,000,000 $ 30,000 $ ((5,776))

5,967
Class I Up to $ 2,500,000 $ 38,000 $ ((7,216))

7,455
Class J Up to $ 3,000,000 $ 45,000 $ ((8,658))

8,945
Class K Up to $ 3,500,000 $ 53,000 $ ((9,712))

10,034
Class L Up to $ 4,000,000 $ 60,000 $ ((11,102))

11,470
Class M and above Over $ 4,000,000 Not

applicable

 ((12,492))

12,906
* A licensee will be allowed a one-time variance for each license class without having to upgrade or pay the penalties set forth in WAC 230-04-260: Provided, That a licensee utilizing the variance shall be required to upgrade to the higher license class upon renewal.

3. CARD GAMES
Class A General (Fee to play charged) $ ((553))

571
Class B Limited card games - hearts, rummy, mahjongg, pitch, pinochle, and cribbage (Fee to play charged) $

 ((161))

166
Class C Tournament only - no more than ten consecutive days per tournament $

((52))

53
Class D General (No fee to play charged) $

((52))

53

4. FUND-RAISING EVENT
Class A One event - not more than 24 consecutive hours $

((329))

339
Class B One event - not more than 72 consecutive hours $

((553))

571
Class C Additional participant in joint event (not lead organization) $

((161))

166
Class D Fund-Raising Event Equipment Distributor - rents or leases, equipment for fund-raising event or recreational gaming activity for no more than ten times per year* $

 ((219))

226
Class E Fund-Raising Event Equipment Distributor - rents or leases equipment for fund-raising event or recreational gaming activity more than ten times per year. $

 ((553))

571
* Charitable and nonprofit organizations licensed to conduct fund-raising events may rent their equipment up to four occasions during the term of the license without getting licensed as a distributor.

5. PUNCH BOARDS/PULL-TABS
(Fee based on annual gross

gambling receipts)

 VARIANCE*
Class A Up to $ 50,000 $ 5,000 $ ((527))

544
Class B Up to $ 100,000 $ 5,000 $ ((940))

971
Class C Up to $ 200,000 $ 10,000 $ ((1,774))

1,832
Class D Up to $ 300,000 $ 10,000 $ ((2,578))

2,663
Class E Up to $ 400,000 $ 10,000 $ ((3,330))

3,440
Class F Up to $ 500,000 $ 10,000 $ ((4,020))

4,153
Class G Up to $ 600,000 $ 10,000 $ ((4,658))

4,812
Class H Up to $ 700,000 $ 10,000 $ ((5,242))

5,416
Class I Up to $ 800,000 $ 10,000 $ ((5,776))

5,967
Class J Up to $ 1,000,000 $ 20,000 $ ((6,548))

6,765
Class K Up to $ 1,250,000 $ 25,000 $ ((7,268))

7,509
Class L Up to $ 1,500,000 $ 25,000 $ ((7,938))

8,201
Class M .Up to $ 1,750,000 $ 25,000 $ ((8,490))

8,771
Class N Up to $ 2,000,000 $ 25,000 $ ((8,992))

9,290
Class O Over $ 2,000,000 Non-

applicable

 $ ((9,880))

10,208
* A licensee will be allowed a one-time variance for each license class without having to upgrade or pay the penalties set forth in WAC 230-04-260: Provided, That a licensee utilizing the variance shall be required to upgrade to the higher license class upon renewal.

6. RAFFLES
(Fee based on annual gross

gambling receipts)
Class A Up to $ 5,000 $ ((52))

53
Class B Up to $ 10,000 $ ((161))

166
Class C Up to $ 25,000 $ ((329))

339
Class D Up to $ 50,000 $ ((553))

571
Class E Up to $ 75,000 $ ((886))

915
Class F Over $ 75,000 $ ((1,326))

1,370

7. COMBINATION LICENSE
CLASS A Allows gross gambling receipts of up to $25,000 from bingo, $7,500 from raffles, and $7,500 from amusement games, not to exceed $30,000 combined gross gambling receipts from all such activities. Allows general card games where no fee to play is charged. $

 ((100))

103
CLASS B Allows gross gambling receipts of up to $60,000 from bingo, $15,000 from raffles, and $15,000 from amusement games, not to exceed $75,000 combined gross gambling receipts from all such activities. Allows general card games where no fee to play is charged. $

((260))

268
CLASS C Allows gross gambling receipts of up to $125,000 from bingo, $30,000 from raffles, and $30,000 from amusement games, not to exceed $150,000 combined gross gambling receipts from all such activities. Allows general card games where no fee to play is charged.
 $

((600))

619

8. SEPARATE PREMISES
BINGO Per occasion

(see WAC 230-04-300)
$

26

9. PERMITS
AGRICULTURAL

FAIR-BINGO

 (See WAC 230-04-191) $ 26
RECREATIONAL

GAMING ACTIVITY

(RGA)

 (See WAC 230-25-330

and 230-02-505)

 $ ((52))

53

10. CHANGES
NAME (See WAC 230-04-310) $ 26
LOCATION (See WAC 230-04-320) $ 26
FRE (Date or time)

(See WAC 230-04-325)

$

26
LICENSE CLASS (See WAC 230-04-260) $ 26
DUPLICATE (See WAC 230-04-290) $ 26
LICENSE

11. SPECIAL FEES
INVESTIGATION (See WAC 230-04-240) As required
REPLACEMENT (See WAC 230-08-017) $ 26
IDENTIFICATION
STAMPS
EXCEEDING LICENSE (See WAC 230-04-260) As required
CLASS
REVIEW, As required
INSPECTION AND/ (See WAC 230-12-315)
OR EVALUATION
OF EQUIPMENT,
PARAPHERNALIA,
SERVICES, OR
SCHEMES

12. SIX-MONTH
(See WAC 230-04-190)
$
26
PAYMENT PLAN

[Statutory Authority: RCW 9.46.070.  98-21-010 (Order 366), § 230-04-202, filed 10/9/98, effective 11/9/98.  Statutory Authority: RCW 9.46.070(5). 97-23-053, § 230-04-202, filed 11/17/97, effective 6/30/98. Statutory Authority: RCW 9.46.070 (5), (6), (11), (14). 97-14-012, § 230-04-202, filed 6/20/97, effective 7/21/97. Statutory Authority: RCW 9.46.070 and 9.46.116. 96-24-007 (Order 304), § 230-04-202, filed 11/21/96, effective 1/1/97. Statutory Authority: RCW 9.46.070. 95-02-003 and 94-23-093 (Order 260), § 230-04-202, filed 12/22/94 and 11/17/94, effective 1/22/95 and 1/1/95.]

OTS-3438.2


AMENDATORY SECTION(Amending Order 366, filed 10/9/98, effective 11/9/98)

WAC 230-04-203
Fees--Commercial stimulant and other business organizations.

All persons seeking to operate gambling activities at business locations shall submit the following fees to the commission when applying for gambling licenses, permits, miscellaneous changes, inspection services, or when assessed the cost of special investigation procedures by the commission:



LICENSE TYPE
DEFINITION
FEE
1. CARD GAMES
Class B Up to five tables of limited card games - hearts, rummy, pitch, pinochle, ((mahjongg,)) and/or cribbage (Fee to play charged)

$ ((161))

166
Class C Tournament only, no more than ten consecutive days per tournament.

$ ((161))
C-5 Up to five tables $ 166
C-10 Up to ten tables $ 300
C-15 Up to fifteen tables $ 500
Class D General - Up to five tables (No fee to play charged) $ ((52))

53
Class E *General (Fee to play charged)
E-1 One table only $ ((386))

398
E-2 Up to two tables $ ((663))

685
E-3 Up to three tables $ ((1,106)) 1,142
E-4 Up to four tables $ ((2,214)) 2,287
E-5 Up to five tables $ ((3,330))

3,440
Additional tables up to a maximum of fifteen may be authorized for an additional per table fee of $1000.
*In addition to the above initial license fee, the commission will assess all applicants/licensees the actual costs that exceed the license fee for conducting the initial investigation and inspection, any follow-up reviews or investigations involved in the approval of activities and schemes.
Class F Enhanced cardroom activities - Includes alternative fee collections (per hand; pot rake), use of player-supported jackpot schemes and increased betting limits.
*Annual license fee $1,500
Per table fee (up to fifteen tables) $750
*In addition to the annual fee, the commission will assess all applicants the actual costs incurred in conducting the investigation and inspection necessary for initial certification.
2. CARD GAMES - HOUSE-BANKED
All tables within a card room operating any house-banked card game shall be licensed under this license class.
*Annual license fee $6,000
Per table fee (up to fifteen tables) $1,500
*The commission will assess all applicants the actual costs for conducting the initial license investigation and premises inspection. Any post licensing follow-up reviews, inspections, internal control evaluations or subsequent phases of operation shall also be charged additional fees. Licensees will be evaluated and charged for these additional authorizations/phases on an individual case by case basis.

((2.))

3.
COMMERCIAL

AMUSEMENT

GAMES

(Fee based on annual gross

gambling receipts)
* Class A Premises only ** $ ((276/$ 126))

285/$ 130
Class B Up to $ 50,000 $ ((386))

398
Class C Up to $ 100,000 $ ((992))

1,024
Class D Up to $ 250,000 $ ((2,214))

2,287
Class E Up to $ 500,000 $ ((3,884))

4,012
Class F Up to $1,000,000 $ ((6,662))

6,883
Class G Over $1,000,000 $ ((8,334))

8,610
* Allows a business that is qualified under WAC 230-04-138 (1)(f), (g), (h), (i), or (j) to enter into a contract with a class "B" or above commercial amusement game licensee to locate and operate amusement games upon their premises.
** Provides for a fee reduction of $150 when: Renewing an annual license; applying for an additional license(s) at the same premises; and/or applying for multiple licenses at the same premises.

((3.))

4.
PUNCH BOARDS/

PULL-TABS

(Fee based on annual gross

gambling receipts)
VARIANCE*
Class A Up to $ 50,000 $ 5,000 $ ((527))

544
Class B Up to $ 100,000 $ 5,000 $ ((940))

971
Class C Up to $ 200,000 $ 10,000 $ ((1,774))

1,832
Class D Up to $ 300,000 $ 10,000 $ ((2,578))

2,663
Class E Up to $ 400,000 $ 10,000 $ ((3,330))

3,440
Class F Up to $ 500,000 $ 10,000 $ ((4,020))

4,153
Class G Up to $ 600,000 $ 10,000 $ ((4,658))

4,812
Class H Up to $ 700,000 $ 10,000 $ ((5,242))

5,416
Class I Up to $ 800,000 $ 10,000 $ ((5,776))

5,967
Class J Up to $ 1,000,000 $ 20,000 $ ((6,548))

6,765
Class K Up to $ 1,250,000 $ 25,000 $ ((7,268))

7,509
Class L Up to $ 1,500,000 $ 25,000 $ ((7,938))

8,201
Class M Up to $ 1,750,000 $ 25,000 $ ((8,490))

8,771
Class N Up to $ 2,000,000 $ 25,000 $ ((8,992))

9,290
Class O Over $ 2,000,000 Nonapplicable $ ((9,880))

10,208
* A licensee will be allowed a one-time variance for each license class without having to upgrade or pay the penalties set forth in WAC 230-04-260: Provided, That a licensee utilizing the variance shall be required to upgrade to the higher license class upon renewal.
5. PUNCH BOARD AND PULL-TAB SERVICE BUSINESS
(See WAC 230-04-133)

*Initial application fee

 $ 206
Additional associate $ 129
Renewal $ 51
*Includes up to two associates.

((4.))

6.
DISTRIBUTOR
(Fee based on annual gross sales

of gambling related supplies and

equipment)
(a) Class A Nonpunch board/pull-tab only $ ((553))

571
Class B Up to $ 250,000 $ ((1,106))

1,142
Class C Up to $ 500,000 $ ((1,660))

1,715
Class D Up to $1,000,000 $ ((2,214))

2,287
Class E Up to $2,500,000 $ ((2,882))

2,977
Class F Over $2,500,000 $ ((3,550))

3,667
In addition to the annual fee, the commission will assess all applicants the actual costs incurred in conducting the investigation and inspection necessary for initial certification.
(b) FUND-RAISING

EVENT EQUIPMENT

DISTRIBUTOR
Class A Rents or leases equipment for fund-raising event or recreational gaming activity up to 10 times per year.

$ ((219))

226
Class B Rents or leases equipment for fund-raising event or recreational gaming activity more than 10 times per year.

$ ((553))

571
7. GAMBLING SERVICE SUPPLIER
(See WAC 230-04-119) $ 594
In addition to the annual fee, the commission will assess all applicants the actual costs incurred in conducting the investigation and inspection necessary for initial certification.
An annual fee of $129 shall be charged for each new contract initiated by the gambling service supplier.
8. LINKED BINGO PRIZE PROVIDER
(See WAC 230-04-126) $ 3,815

((5.))

9.
MANUFACTURER
(Fee based on annual gross sales

of gambling related supplies and

equipment)
Class A ((Machines)) Pull-tab dispensing devices only $ ((553))

571
Class B Up to $ 250,000 $ ((1,106))

1,142
Class C Up to $ 500,000 $ ((1,660))

1,715
Class D Up to $1,000,000 $ ((2,214))

2,287
Class E Up to $2,500,000 $ ((2,882))

2,977
Class F Over $2,500,000 $ ((3,550))

3,667
In addition to the annual fee, the commission will assess all applicants the actual costs incurred in conducting the investigation and inspection necessary for initial certification, quality control inspection for additional activities or product lines, compliance suitability evaluations, and renewal of licenses when travel cost is incurred to complete the investigation.

((6.))

10.
PERMITS

AGRICULTURAL FAIR/

SPECIAL PROPERTY

BINGO
Class A One location and event only

(See WAC 230-04-191)

 $ 26
Class B Annual permit for specified

different events and locations

(See WAC 230-04-193)

$ ((161))

166
RECREATIONAL

GAMING ACTIVITY

(RGA)

 (See WAC 230-02-505

and 230-25-330)

$ ((52))

53

((7.))

11.
CHANGES
NAME (See WAC 230-04-310) $ 26
LOCATION (See WAC 230-04-320) $ 26
BUSINESS (Same owners) $ ((52))

53
CLASSIFICATION (See WAC 230-04-340)
LICENSE CLASS (See WAC 230-04-260) New class fee, less previous fee paid, plus

$ 26
DUPLICATE LICENSE (See WAC 230-04-290) $ 26
OWNERSHIP OF STOCK (See WAC 230-04-340) $ ((52))

53
LICENSE TRANSFERS (See WAC 230-04-125,

230-04-340, and

230-04-350)

 $ ((52))

53

((8.))

12.
SPECIAL FEES
INVESTIGATION (See WAC 230-04-240) As required
IDENTIFICATION AND

INSPECTION

SERVICES STAMPS

 (See WAC 230-08-017) As required
QUALITY CONTROL

INSPECTION FEES

 (See WAC 230-30-030) As required
REPLACEMENT OF

IDENTIFICATION

STAMPS

 (See WAC 230-30-017)

$ 26
EXCEEDING LICENSE

CLASS

 (See WAC 230-04-260) As required
REVIEW,

INSPECTION AND/

OR EVALUATION

OF EQUIPMENT,

PARAPHERNALIA,

SERVICES, OR

SCHEMES

 (See WAC 230-12-315) As required
SPECIAL SALES

PERMITS