PROPOSED RULES
Original Notice.
Preproposal statement of inquiry was filed as WSR 00-13-110 with a published date of July 5, 2000.
Title of Rule: Amending WAC 230-04-260 Effect on exceeding license class income limit -- Procedures -- Penalties, 230-08-255 Bona fide charitable or nonprofit organizations -- Significant progress required -- Procedures -- Exception, 230-20-059 Minimum net return required for bingo games--Prize and expense limitations--Maximum gross gambling receipts, 230-20-062 Minimum net return from bingo games -- Sanctions, 230-30-052 Punch boards and pull-tabs operated by charitable or nonprofit organizations -- Net income required and 230-50-010 Adjudicative proceedings -- Hearings; and repealing WAC 230-02-362 Primary market area defined, 230-02-364 Secondary market area defined, 230-02-366 Impact market area defined, 230-02-530 Circumstances outside the control of the licensee -- Defined, 230-02-535 Permanent interruption of customer flow -- Defined, 230-02-540 Temporary interruption of customer flow -- Defined, 230-20-058 Temporary moratorium for complying with net return requirements, and 230-20-060 Petitioning the director for a variance from net return requirements.
Purpose: For the past several years, gambling proceeds have declined for charitable and nonprofit organizations. As a result, bingo operators have experienced difficulty meeting their net return requirements (the amount of gambling moneys that are returned to an organization's stated purpose). Therefore, at the request of the industry, a Bingo Net Return Task Force was formed to study the issues and concerns facing these organizations. Task force members determined that the current rules dealing with net return requirements for these organizations were too strict and complicated. This resulted in a study of the net return rules along with discussions on ways to streamline them. After two years of work, the task force has developed this rules package which makes compliance with net return and significant progress requirements easier to work with for both licensees and staff.
Statutory Authority for Adoption: RCW 9.46.070.
Summary:
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 Purpose above.
Proposal Changes the Following Existing Rules: See Purpose 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: Shilo Inn, 707 Ocean Shores Boulevard N.W., Ocean Shores, WA 98569, phone (360) 289-4600, on November 17, 2000, at 10:00 a.m.
Assistance for Persons with Disabilities: Contact Shirley Corbett by November 3, 2000, 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 3, 2000.
Date of Intended Adoption: November 17, 2000.
October 3, 2000
Susan Arland
Rules Coordinator
OTS-4382.2
AMENDATORY SECTION(Amending WSR 97-14-013, filed 6/20/97,
effective 7/21/97)
WAC 230-04-260
Effect of exceeding license class income
limit -- Procedures -- Penalties.
During any annual license period, a licensee shall not exceed the gross gambling receipts limits set forth on the license, except as authorized by this section. The following procedures, limitations, and penalties apply to licensees that exceed limits for any license.
((What must I do when it appears I will exceed the gross gambling
receipts limits of my license?)) Anticipating gambling receipts
limit will be exceeded.
(1) Each licensee shall monitor the level of gross gambling
receipts received from each gambling activity. When a projection
of year-to-date receipts, as applied to the remaining period of
the license, indicates that it is reasonably likely that a
license will be exceeded, the licensee shall immediately comply
with the following:
(a) Apply for a license that authorizes the anticipated level of gross gambling receipts; and
(b) Submit the basic fee required for the new license, less the amount originally submitted for the previous license, plus a change of classification fee required by WAC 230-04-202 or WAC 230-04-203; and, if applicable,
(c) Organizations whose bingo licenses were previously
limited for gross receipts or prizes paid pursuant to WAC 230-20-062 shall include with their application, evidence of the
ability to maintain net return requirements ((set forth in WAC 230-20-059, table 1,)) and/or prizes paid at or above the minimum
level for the class of license sought. Achieving net return or
prizes paid at or above the minimum level for the license class
sought, for at least the six consecutive months immediately
preceding the month in which the application for a license
upgrade is submitted, shall be prima facie evidence of the
ability to operate at the new license class level. ((A bingo
licensee that is unable to demonstrate the ability to achieve net
return requirements for at least six consecutive months preceding
the application for upgrade may petition the director for a
variance in accordance with the criteria set forth in WAC 230-20-060.))
Commission review of denial for license upgrade.
(2) If the licensee's ((petition)) request for ((a
variance)) an upgrade is denied by the director, the licensee may
petition the commission for review of the director's decision, in
accordance with the criteria set forth in WAC 230-20-062.
((If I upgrade my license during my normal annual license period,
when will my license expire?)) Upgrading license during license
year - Expiration date.
(((2))) (3) Any license upgrade issued by the commission
shall be valid only for the remainder of the original term of the
license.
((What are the penalties for failing to voluntarily apply for a
license upgrade when my license has not previously been
limited?)) Penalty for failing to apply for license upgrade when
license has not previously been limited.
(((3))) (4) Any licensee that fails to comply with the
requirements set forth in ((paragraph)) subsection (1) ((above))
of this section and exceeds the license class limit within a
present or previous license year, may be assessed an exceeding
class fee not to exceed ((50%)) fifty percent of the difference
between the fees for the present license class and the new
license class or (($1,000)) one thousand dollars, whichever is
less. Upon written notice by the commission assessing an
exceeding class fee, a licensee shall remit the proper fee plus
all upgrade fees within ((20)) twenty days. Failure to remit
such fees may result in a summary suspension of all licenses held
by the licensee pending a hearing for the suspension or
revocation of such licenses.
((What are the penalties for failing to voluntarily apply for a
license upgrade when my license has been previously limited?))
Penalty for failing to apply for license upgrade when license has
previously been limited.
(((4))) (5) In addition to the penalties set forth in
((paragraph (3))) subsection (4) of this section, any
organization that has had its bingo license limited, for bingo
gross receipts and prizes paid, under the restrictions set forth
in WAC 230-20-062 and which exceeds its annual gross receipts
limits for its assigned class of license, shall have its gambling
license summarily suspended.
((Can I request a refund of license fees when I do not achieve
the level of gross gambling receipts for which I was
authorized?)) Partial refund of license fee when gambling
receipts limit is not achieved.
(((5))) (6) A licensee shall be allowed to apply for a
partial refund of its license fee when its annual gross gambling
receipts are less than the minimum for the class of license
issued. The amount of refund shall be the difference between
fees actually paid to operate during the period and those fees
that would normally apply to the level of gross gambling receipts
actually received during the period. Such request shall be made
after the end of any annual license period and prior to the end
of the next annual license period.
[Statutory Authority: RCW 9.46.070 (1), (2). 97-14-013, § 230-04-260, filed 6/20/97, effective 7/21/97. Statutory Authority: Chapter 9.46 RCW. 94-24-056 (Order 262), § 230-04-260, filed 12/5/94, effective 1/5/95. Statutory Authority: RCW 9.46.070(14). 88-15-019 (Order 181), § 230-04-260, filed 7/11/88. Statutory Authority: RCW 9.46.070 (5), (6), (8), (10), and (11). 84-01-026 (Order 139), § 230-04-260, filed 12/12/83. Statutory Authority: RCW 9.46.070 (5) and (9). 80-03-060 (Order 99), § 230-04-260, filed 2/25/80; Order 42, § 230-04-260, filed 9/18/75; Order 5, § 230-04-260, filed 12/19/73.]
OTS-4384.1
AMENDATORY SECTION(Amending Order 363, filed 9/23/98, effective
1/1/99)
WAC 230-08-255
Bona fide charitable or nonprofit
organizations -- Significant progress
required -- Procedures -- Exception.
A charitable or nonprofit
organization requesting to be certified to conduct gambling
activities must demonstrate ((that)) it has made significant
progress toward its stated purposes during the period under
review. ((Any organization that demonstrates compliance with all
requirements of this section, during the fiscal year under
review, shall be deemed as having made the progress required for
its purposes.)) The following definitions and procedures will
((be utilized to measure an organization's progress)) apply:
Progress toward stated purpose.
(1) An organization will be deemed to have made progress
toward its stated purposes when it:
(a) Complies with all requirements set forth in its bylaws
and articles of incorporation; ((and))
(b) Actively engages in providing services to the public or its members during the entire period under consideration, and such services directly relate to the stated purposes of the organization;
(c) Has held elections to select officers at least once in the previous two years; and
(d) Has held a general membership meeting to conduct the business of the organization at least once in the previous two years.
Available resources for stated purpose.
(2) ((Progress toward)) An organization's progress towards
its stated purpose will be deemed ((to be)) significant when
((such organization uses)) a substantial portion of its available
resources are used for providing program services ((in an
efficient manner)) during the period under review.
(((a))) For purposes of this section, available resources:
(a) Include the ((net)) income generated by or from the
following sources for the period under review:
(i) All net fund-raising activities, including net gambling income;
(ii) Grants, gifts, and contributions from private sources; and
(iii) Public support.
(b) ((Available resources do)) Does not include:
(i) Funds generated in periods other than the period under review;
(ii) Funds that are raised or contributed from outside the organization for purposes of purchasing land or capital assets or to endow future operations when such funds are specifically identified by the board or contributors as restricted and separately recorded in the organization's records;
(iii) Fees paid by members or the public to receive services or to participate in specific activities. Such fees shall be classified as a reduction to both program service and supporting service expenses on a pro rata basis and as a reduction to resources available for providing services in the current period; or
(iv) Net income from the sale of assets.
Groups IV and V - Significant progress.
(3) In addition to the criteria outlined above, any
organization requesting to be certified to operate gambling
activities at Group IV or V levels, as defined in WAC 230-12-076,
shall demonstrate it has made significant progress by providing
evidence that:
(a) ((Elections to select officers were held at least once
in the previous two years;
(b) A general membership meeting to conduct the business of the organization was held at least once in the previous two years;
(c) A substantial portion of available resources was used to provide services during the period. An organization shall be deemed to have met this requirement when it demonstrates it has expended at least sixty percent of the net gambling income earned in the organization's most recently completed fiscal accounting year, for both program and supporting services (functional expenses); and
(d))) It has expended at least sixty percent of net gambling income earned in the organization's most recently completed fiscal year on functional expenses to operate the organization's programs. Functional expenses consist of both program and supporting services; and
(b) Available resources were utilized in an efficient manner
during the period. Available resources will be deemed to be
utilized in an efficient manner when no more than thirty-five
percent of total functional expenses ((is)) are utilized to
provide supporting services as defined by WAC 230-02-279:
Provided, That if more than fifty percent of total program
services expenses was utilized to provide program services
through indirect methods (those which are external to the
organization) such as grants, contributions, and/or scholarships,
((and/or sponsorships,)) then supporting services expenses shall
not exceed twenty percent of functional expenses.
Gambling income not separate from other income.
(4) ((For purposes of computing the percentage of functional
expenditures utilized to provide supporting services in the year
under review as set forth in subsection (3)(d) of this section,
the following procedures apply:
(a) Compute the amount of expenditures made for supporting services;
(b) Divide supporting service expenditures by the total amount expended for functional expenses; and
(c) The result of the computation made at (b) of this subsection must be equal to or less than the limitation set forth in subsection (3)(d) of this section.
(5))) When an organization does not keep ((assets procured
with gambling proceeds physically and functionally)) gambling
income separate from all other ((assets)) income of the
organization, the amount of net gambling income required ((to be
utilized)) to provide ((program and supporting services
())functional expenses(())) in the year under review shall be
((determined as follows:
(a) Compute the amount of net gambling income that must be used for functional expenses by multiplying net gambling income for the period by sixty percent;
(b) Compute the ratio of net gambling income when compared to total net revenue from all sources for the period by dividing net gambling income by total net revenue from all sources;
(c) Compute the amount of net gambling income used for functional expenses by multiplying total functional expenses by the result of the computation in (b) of this subsection; and
(d) Total functional expenses must equal or exceed the result from (a) of this subsection)) the pro rata portion of net gambling income compared to the total net revenue from all sources.
Waivers.
(((6))) (5) An organization that is unable to demonstrate it
has made significant progress by complying with the financial
standards and procedures set forth elsewhere in this section may
request the director to waive all or portions of the
requirements. The following requirements and procedures shall be
used to evaluate waivers:
(a) In determining whether to grant such a waiver, the director may consider the following:
(i) Whether the organization's inability to comply is temporary and due to unusual circumstances;
(ii) Whether the organization is reserving funds to start or expand specific programs in the future;
(iii) Whether the organization utilizes a substantial amount of capital assets that are not subject to depreciation or amortization to provide program services. Examples are: Fully depreciated building or equipment; fully amortized leasehold improvements; assets which are not normally depreciated such as land used for athletic fields, riding areas, parks, etc.; and
(iv) Whether the organization conducts a substantial portion of its services through volunteers.
(b) In order for the director to consider a waiver, the organization shall meet the following requirements:
(i) The organization's board shall acknowledge in writing that they are aware of the circumstances, have taken steps to correct the situation which prevented compliance, and have approved a plan that addresses delivery of program services in the future; and
(ii) The organization must expend at least twenty-five percent of its net gambling income to provide program services in the current period; however, the purchase of nondepreciable assets for program purposes may be considered as part of this percentage.
(c) The director will provide the licensee a hearing pursuant to WAC 230-50-010(6), if a waiver will be denied.
[Statutory Authority: RCW 9.46.070. 98-19-132 (Order 363), § 230-08-255, filed 9/23/98, effective 1/1/99. Statutory Authority: RCW 9.46.070 (1), (8-11), (14), (16), (20). 96-07-075, § 230-08-255, filed 3/19/96, effective 7/1/96. Statutory Authority: RCW 9.46.070, 9.46.0261 and 9.46.0209. 94-01-035, § 230-08-255, filed 12/6/93, effective 1/6/94.]
OTS-4371.2
AMENDATORY SECTION(Amending Order 303, filed 11/21/96, effective
12/22/96)
WAC 230-20-059
Minimum net return required for bingo
games--Prize and expense limitations--Maximum gross gambling
receipts.
Bingo shall be conducted only as a social pastime or for fund raising to support the stated purpose(s) of a charitable or nonprofit organization. Organizations licensed to conduct bingo games shall comply with the following procedures and limitations:
(1) Gross gambling receipts from the sale of bingo cards shall not exceed the limits by class of license for the organization's license year as set out in WAC 230-04-202 or as restricted by the commission under WAC 230-20-062;
(2) To ensure that organizations licensed to conduct bingo
games meet the intent of RCW 9.46.010 and retain funds adequate
to promote charitable and nonprofit programs, such organizations
shall not award prizes or pay expenses to conduct bingo games
that are excessive. Organizations that fail to retain at least
the minimum net return for their class of license, as set forth
in the blended rate Table ((1)) of this section ((and as adjusted
by the director)), may be deemed to have paid excessive prizes or
unnecessary expenses from the operation of bingo games. As a
result, the commission may restrict the organization's gross
gambling receipts, prizes, and/or expenses from bingo games or
the organization may be subject to other enforcement actions
recommended by the director.
(3) This rule will apply to organizations with measurement
periods beginning on or after ((January 1, 1996)) December 31,
2000.
((Table 1
Class Requirements**/*** |
Annual Gross Gambling Receipts |
Prize Payout Limits* |
Minimum Net Return |
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| License Class | Bingo Gross Receipts Start Bracket | Bingo Gross Receipts End Bracket | Base Amount* | Blended Rate Calculation** | ||
| Band A | Class A-E | $0 | $500,000 | $0 | 0% | |
| Band B | Class F-G | $500,001 | $1,500,000 | $0 | Plus | 5% of Amounts over $500,001 |
| Band C | Class H-I | $1,500,001 | $2,500,000 | $50,000 | Plus | 7% of Amounts over $1,500,001 |
| Band D | Class J-K | $2,500,001 | $3,500,000 | $120,000 | Plus | 9% of Amounts over $2,500,001 |
| Band E | Class L and above | $3,500,001 | $4,500,000 | $210,000 | Plus | 11% of Amounts over $3,500,001 |
| * | = | (( |
| ** | = | All charitable and nonprofit organizations must have positive cash flow as defined by WAC 230-02-138: Provided, That licensees falling within band level A must have a combined net income equal to or greater than zero if wages or rent is paid to operate the activity. |
| NOTE 1 | = | Combined net income from punch boards/pull-tabs, bingo, amusement games, raffles (when conducted in conjunction with the bingo game), and sales of food, drink, or other retail items, if applicable, plus local gambling taxes and allowable rental income, as a percent of bingo gross gambling receipts. |
| (( |
= | When a licensee is required to upgrade its license class in the last quarter of its annual license period, compliance with net return requirements will be measured at the lower license class. |
| (( |
| NOTE (( |
Net income requirements for charitable or nonprofit organizations that operate pull-tabs, but do not operate bingo, are detailed in WAC 230-30-052. |
[]
OTS-4370.2
AMENDATORY SECTION(Amending WSR 97-14-013, filed 6/20/97,
effective 7/21/97)
WAC 230-20-062
Minimum net return from bingo
games -- Sanctions.
(([This rule will apply to organizations with
a measurement period beginning on or after January 1, 1996.]))
This rule will apply to organizations with a measurement period
beginning on or after December 31, 2000. A licensee that fails
to comply with the minimum net return provisions of WAC 230-20-059 shall be subject to the following restrictions and
procedures:
((What happens if I fail to meet minimum net return requirements
for my class of license during any calendar quarter?)) Failure to
meet minimum net return requirements during any calendar quarter.
(1) Any licensee that fails to return the required
percentage of its gross gambling receipts for its class of bingo
license during any calendar quarter and whose net return is lower
for that quarter than the annual requirement, when ((measured for
its current annual)) compared to its measurement period to-date,
shall ((immediately)) comply with the following ((requirements)):
(a) ((When net return is less than one percentage point
lower than required, a licensee shall:
(i) Evaluate prices, prize structure, and expenses for bingo and all activities conducted in conjunction with the bingo game; and
(ii) Develop a plan to gain compliance prior to the end of its annual measurement period. The plan and the degree to which the licensee implements the plan will be considered by the director when reviewing a request for a variance under authority of WAC 230-20-060 and/or for recommendations made to the commission regarding actions to limit or suspend the organization's license;
(b) When net return is at least one percentage point lower than required but not more than three percentage points lower, a licensee shall:
(i) Report the condition to commission staff as soon as discovered, but in no case later than thirty days following the end of the quarter; and
(ii) Take immediate steps to increase net return for bingo and all associated activities by either increasing prices, decreasing prizes, decreasing expenses, or a combination of all; and
(iii))) Provide to the commission staff a written plan of
actions to gain compliance no later than forty-five days
following the end of the quarter ((a written plan of actions to
gain compliance)). This plan shall be evaluated by commission
staff. The plan and the degree to which the licensee implements
the plan will be considered by the director when ((reviewing a
request for a variance to a licensee under authority of WAC 230-20-060, and/or for recommendations made to the commission
regarding actions to limit or suspend)) taking action against the
organization's license; ((and
(iv))) (b) Provide the commission additional reports determined by the staff as necessary to monitor progress toward compliance; and
(((v))) (c) If requested by the director or his/her
designee, a committee of the licensee's management, including the
chief executive officer, executive director, or equivalent
manager, and the licensed gambling manager responsible ((of
[for])) for the bingo game shall meet with commission staff to
discuss the action plan.
(((c) In addition to the requirements in subsection (b)
above, when net return is more than three percentage points lower
than required, a licensee shall:
(i) Immediately freeze all controllable expenses for bingo and all other activities operated in conjunction with bingo; and
(ii) Reduce expenses for bingo and all other activities operated in conjunction with bingo to a level that does not exceed twenty percent of gross gambling receipts or sales; and
(iii) Reduce prizes to the level set forth as guidelines in Table 1 of WAC 230-20-059 for its class of license; and
(iv) Increase prices and/or decrease expenses for snack bar operations to a level that will result in a profit being earned from this activity.
What happens if I fail to meet the net return requirements for my
class of license during my annual measurement period?)) Failure
to meet net return requirements during annual measurement period.
(([(2)])) (2) Any licensee that fails to achieve the minimum
net return requirements for its ((class of license)) band level
during an annual measurement period, as set forth in WAC 230-20-059, table 1, may be subject to any or all of the
following restrictions and/or penalties:
(a) Failure - first year: Reduction in prizes paid to the current band beginning with the next completed quarter, following notification from commission staff. This will include prizes paid limited as follows:
| Band levels | Payout % limit |
| Band A | No limits |
| Band B | 78% |
| Band C | 76% |
| Band D | 74% |
| Band E | 72% |
(b) Failure - second year:
Reduction in the authorized level of gross gambling receipts to one band level below the current band for the next license period; and/or
(((b) Denial of a request for an increase in license class
if its license has previously been restricted; and/or
(c) Suspension or revocation of its license.
What if I have not met the net income requirements, but I still
maintained a positive cash flow from the bingo operation?
(3) Any licensee that fails to achieve the minimum net
return requirement for its class of license, including any
variance authorized by the director, during an annual measurement
period and which maintains a positive cash flow from the bingo
operation for the same period shall have its license limited for
the next annual license period subject to the following
conditions:
(a) The licensee will be issued a new license which corresponds to the license class that is equal to the level of net return it actually achieved during the applicable annual measurement period;
(b) The license class to which the licensee is reduced must authorize at least one-half of the maximum gross gambling receipts of the license class from which it is being reduced;
(c) The reduction for the first violation shall be a maximum of two license classes; and
(d) A licensee limited under this section must comply with the requirements of WAC 230-04-260 prior to being granted any subsequent increase in its bingo license class;))
(c) Failure - third year: Reduction in the authorized level of gross gambling receipts to two band levels below the current band but not below band level A for the next license period.
((What if I have not met the net return requirements and I did
not maintain a positive cash flow from the bingo operation?))
Failure to meet net return requirements and maintain a positive
cash flow.
(((4))) (3) Any licensee that fails to achieve the minimum
net return requirement ((during its most recently completed
annual measurement period)) and does not maintain a positive cash
flow from the bingo operation for ((the same period)) any two
consecutive calendar quarters shall be deemed to be operating
primarily for gambling purposes. In this event, the director
will ((review the licensee's most recent three-month operating
results and)) begin appropriate administrative actions based upon
net return compliance during that period:
(a) If the licensee has not corrected the condition and continues to subsidize the operation of bingo games with program funds, the director may summarily suspend the organization's bingo license; or
(b) If the licensee is no longer subsidizing the operation
of bingo games with program funds, the licensee shall have its
license limited pursuant to subsection (((3) above)) (2) of this
section and may be subject to other sanctions imposed by the
director.
((What if my license has been limited and/or the director has
denied my application for a variance to net return
requirements?)) Commission review of restricted gross receipts.
(((5))) (4) A licensee that ((has had)) is subject to having
its bingo gross gambling receipts restricted by this section
((and whose petition for a variance has been denied)) may
petition the commissioners for ((a license to receive more gross
gambling receipts)) relief. The commissioners' review will be
conducted in accordance with the administrative review procedures
set forth in chapter 34.05 RCW ((34.05.491)) and WAC 230-50, as
applicable. Any such petition will be heard at a regular public
meeting of the commission. The commission may take testimony
from other parties that may be affected by approval or denial of
the petition during the hearing. The petitioner must ensure that
an officer of the organization and the licensed gambling manager
responsible for the bingo operation attend the public meeting and
are prepared to answer questions from the commissioners and/or
staff regarding the petition and bingo game operations. The
petition shall include all information noted below and shall be
submitted prior to a hearing being scheduled. Any approval
granted under this section may be made contingent upon future
compliance and/or other factors as determined by the commission. ((In addition to the requirements set forth in WAC 230-20-060(3),)) Petitions for relief under this section must
include the following:
(a) ((The portion of the organization's programs that are
charitable as compared to nonprofit;
(b) Income from other sources available for funding of programs; and
(c) Estimated time that the maximum gross gambling receipts limit for its current license will be reached.)) When the bingo operation was originally licensed and how long it has operated at its current level;
(b) The factors contributing to the licensee being out of compliance;
(c) The type and scope of services provided, including the number of members or public served and estimated impact on the community if bingo income is limited;
(d) Income from other sources available for funding of programs;
(e) The portion of the organization's programs that are charitable as compared to nonprofit as defined by WAC 230-02-160 and 230-02-155; and
(f) Estimated time that the maximum gross gambling receipts limit for its current license will be reached.
[Statutory Authority: RCW 9.46.070 (1), (2). 97-14-013, § 230-20-062, filed 6/20/97, effective 7/21/97. Statutory Authority: RCW 9.46.070, 9.46.0209, 9.46.0237, 9.46.0205 and 9.46.075. 96-24-008 (Order 303), § 230-20-062, filed 11/21/96, effective 12/22/96.]
OTS-4348.1
AMENDATORY SECTION(Amending Order 358, filed 7/15/98, effective
1/1/99)
WAC 230-30-052
Punch boards and pull-tabs operated by
charitable or nonprofit organizations -- Net income required.
Charitable or nonprofit organizations operating punch boards and
pull-tabs and which do not operate bingo games at any level shall
not pay excessive expenses. To ensure that licensees meet the
intent of RCW 9.46.010 and to prevent the payment of excessive
expenses, net income, as a percentage of gross gambling receipts
from punch boards and pull-tabs, shall not be less than zero when
measured over the annual license period: Provided, That the
limits set out in the blended rate Table ((1.)) of WAC 230-20-059
shall apply to organizations operating punch boards and pull-tabs
in conjunction with a bingo game.
[Statutory Authority: RCW 9.46.070. 98-15-073 (Order 358), § 230-30-052, filed 7/15/98, effective 1/1/99. Statutory Authority: RCW 9.46.070 (1)(16). 90-10-007, § 230-30-052, filed 4/19/90, effective 7/1/90.]
OTS-4383.1
AMENDATORY SECTION(Amending Order 383, filed 4/14/00, effective
5/15/00)
WAC 230-50-010
Adjudicative proceedings -- Hearings.
(1) Adjudicative proceedings shall be commenced for any and all matters wherein the commission is causing administrative charges to be brought against any applicant, licensee or permittee within the limitations to chapter 34.05 RCW as applicable.
(2) The commission shall afford an applicant for a license an opportunity for an adjudicative proceeding prior to denying such application, and shall afford a licensee the opportunity for an adjudicative proceeding prior to suspending or revoking a license.
(3) The commission will afford a person applying to the commission for approval of a pull-tab dispensing device under WAC 230-30-095 an opportunity for an adjudicative proceeding prior to denying approval of such device.
(4) No hearing will be conducted with respect to any adjudicative proceeding unless an application for an adjudicative proceeding and request for hearing is timely filed by the applicant or licensee with the commission in compliance with WAC 230-50-210. The application must be made upon a form to be obtained from the commission, or facsimile thereof, and must be received within 20 days following service upon the party affected by the commission or the director of a notice of administrative charges and opportunity for an adjudicative proceeding. Said document shall contain the maximum penalty that may be assessed should an application not be filed by the party affected. An application for an adjudicative proceeding and request for hearing shall accompany all notices of administrative charges.
(5) If an application for an adjudicative proceeding is not timely filed, then the party affected shall have waived the right to a hearing on the allegations set forth in the notice of administrative charges. The party shall be deemed to be in default pursuant to RCW 34.05.440 and the commission and director may take action against the party not to exceed the maximum penalty as stated in the notice of administrative charges and opportunity for an adjudicative proceeding, which action shall be final.
(6) The procedures of RCW 34.05.485, brief adjudicative proceedings, shall be used for the following purposes:
(a) All hearings in which the penalty sought by the commission is for a suspension of seven days or less;
(b) Hearings held pursuant to WAC 230-50-015 (stay of summary suspension);
(c) Hearings held pursuant to WAC 230-04-400(3) (failure to pay required gambling taxes);
(d) Hearings held pursuant to WAC 230-04-190 (10)(c) (two part payment plan: Failure to make second payment);
(e) Hearings in which the parties have stipulated to facts or the parties have stipulated to charges, and the hearing is limited to a determination of whether facts constitute violations as charged and/or determination of appropriate penalty to be imposed;
(f) Denial of an application to operate at a higher bingo license class when the licensee has been restricted by WAC 230-20-062;
(g) ((Petitions for a variance to bingo net return
requirements authorized by WAC 230-20-060;
(h))) Hearings held pursuant to WAC 230-20-062 (failure for charitable or nonprofit organizations to meet net return requirements);
(h) Hearings held pursuant to WAC 230-08-255 (failure for charitable or nonprofit organizations to make significant progress);
(i) Denial or revocation of extended card room hours pursuant to WAC 230-40-400;
(((i))) (j) Denial of request for Phase II pursuant to WAC 230-40-810;
(((j))) (k) Repeal of an approved card game pursuant to WAC 230-40-010; or
(((k))) (l) Where the parties have stipulated to the use of
brief adjudicative proceedings.
[Statutory Authority: RCW 9.46.070. 00-09-052 (Order 383), § 230-50-010, filed 4/14/00, effective 5/15/00. Statutory Authority: RCW 9.46.070 (1), (2). 97-14-013, § 230-50-010, filed 6/20/97, effective 7/21/97. Statutory Authority: RCW 9.46.070. 95-13-030, § 230-50-010, filed 6/13/95, effective 7/14/95; 92-19-107 (Order 231), § 230-50-010, filed 9/18/92, effective 10/19/92. Statutory Authority: Chapter 34.05 RCW. 89-24-003 (Order 200), § 230-50-010, filed 11/27/89, effective 12/28/89. Statutory Authority: RCW 9.46.070(13). 80-03-059 (Order 98), § 230-50-010, filed 2/25/80; Order 45, § 230-50-010, filed 12/30/75; Order 9, § 230-50-010, filed 12/19/73.]
OTS-4372.1
REPEALER
The following sections of the Washington Administrative Code are repealed:
| WAC 230-02-362 | Primary market area defined. |
| WAC 230-02-364 | Secondary market area defined. |
| WAC 230-02-366 | Impact market area defined. |
| WAC 230-02-530 | Circumstances outside the control of the licensee -- Defined. |
| WAC 230-02-535 | Permanent interruption of customer flow -- Defined. |
| WAC 230-02-540 | Temporary interruption of customer flow -- Defined. |
OTS-4373.1
REPEALER
The following sections of the Washington Administrative Code are repealed:
| WAC 230-20-058 | Temporary moratorium for complying with net return requirements. |
| WAC 230-20-060 | Petitioning the director for a variance from net return requirements. |