WSR 01-11-081

PROPOSED RULES

LOTTERY COMMISSION


[ Filed May 16, 2001, 9:00 a.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 01-07-004.

Title of Rule: WAC 315-01-085 Accessibility for persons with disabilities.

Purpose: To amend chapter 315-36 WAC to revise Lucky for Life prizes, winning numbers matrix, odds of winning, method of paying the prizes.

Statutory Authority for Adoption: RCW 67.70.040.

Statute Being Implemented: RCW 67.70.040.

Summary: See Purpose above.

Reasons Supporting Proposal: See below.

Name of Agency Personnel Responsible for Drafting: Mary Jane Ferguson, Rules Coordinator, Olympia, (360) 664-4833; Implementation and Enforcement: Robert C. Benson, Jr., Acting Director, Olympia, (360) 664-4800.

Name of Proponent: Washington State Lottery Commission, governmental.

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

Explanation of Rule, its Purpose, and Anticipated Effects: Amendments to chapter 315-36 WAC will revise Lucky for Life prizes, winning numbers matrix, odds of winning, and method of paying the prizes.

Proposal Changes the Following Existing Rules: The amendments revise Lucky for Life prizes, winning numbers matrix, odds of winning, and method of paying the prizes.

No small business economic impact statement has been prepared under chapter 19.85 RCW. The lottery has considered whether these rules are subject to the Regulatory Fairness Act, chapter 19.85 RCW, and has determined that they are not for the following reasons: (1) The rules have no economic impact on business' cost of equipment, supplies, labor or administrative costs. The rules are designed to establish rules and procedures for the playing of lottery games; and (2) the rules have a negligible impact, if any, on business because they are interpretive. They state policy, procedure, and practice and do not include requirements for forms, fees, appearances or other actions by business.

RCW 34.05.328 does not apply to this rule adoption. Said section does not apply to this proposed rule because it is not proposed by one of the listed agencies. As the rules are merely interpretive, the lottery does not voluntarily apply this section.

Hearing Location: Marine Village Inn, 1728 West Marine View Drive, Everett, WA, on July 27, 2001, at 10:00 a.m.

Assistance for Persons with Disabilities: Contact Mary Jane Ferguson, by July 25, 2001, TDD (360) 586-0933, or (360) 664-4833.

Submit Written Comments to: Mary Jane Ferguson, Lottery, fax (360) 586-6586, by July 25, 2001.

Date of Intended Adoption: July 27, 2001.

May 15, 2001

Mary Jane Ferguson

Rules Coordinator

OTS-4815.2


AMENDATORY SECTION(Amending WSR 98-15-115, filed 7/20/98, effective 8/20/98)

WAC 315-36-010   What is Lucky for Life and how do I play?   (1) Lucky for Life is an on-line lottery game in which you purchase a computer-generated ticket and try to match your set of four numbers to the winning set of four numbers, chosen by the lottery. The game is conducted in accordance with the rules for on-line games found in chapter 315-30 WAC ((and)), the general rules found in chapter 315-06 WAC, and chapter 315-36 WAC. The amendments to chapter 315-36 WAC, as adopted at the July 2001 lottery commission meeting, shall take effect on September 30, 2001, or on a date to be designated by the director and advertised to the public. The provisions of the existing chapter 315-36 WAC shall remain in effect until September 30, 2001, or until the date designated by the director for the commencement of this amended rule.

(2) To play Lucky for Life, you first pick one set of four numbers from (("00")) "01" to (("99")) "82" for a chance to win the grand prize of $1,000 per week for the rest of your life, as specified in WAC 315-36-110. Or you can let the computer pick this set of numbers for you. If you have the computer pick for you, this is called a "quick pick" or "quick play."

(3) Next, the computer will generate twenty additional sets of four numbers each from (("00")) "01" to (("99")) "82" for you. These sets will all be quick picks, that is, the computer selects them for you. You cannot pick any of these additional sets of numbers yourself. You will receive a computer printed ticket containing all twenty-one sets of numbers.

(4) If any one of the twenty-one sets on the ticket match two, three, or four of the numbers in the winning set of four numbers, in any order, you win a prize as specified in WAC 315-36-030.

(5) A Lucky for Life ticket may look similar to this:

Lucky for Life
LIFETIME CASH
A. 05 20 60 73
$50,000 PRIZE
B. 12 18 25 ((99)) 82 C. 22 25 36 38
(($25,000)) $20,000 PRIZE
D. 05 10 12 20 E. 32 35 46 48
F. 25 67 76 80 G. 33 34 46 69
$10,000 PRIZE
H. ((00)) 07 39 44 77 I. 01 23 69 ((98)) 79
J. 04 13 30 34 K. 36 39 80 81
L. 29 41 52 61 M. 02 03 21 ((99)) 82
$5,000 PRIZE
N. 10 20 21 31 O. 24 53 60 81
P. 20 22 43 63 Q. 71 82 ((92)) 75 ((93)) 65
R. 53 63 70 ((90)) 80 S. 70 82 ((98)) 43 ((99)) 31
T. 40 51 ((83)) 11 ((90)) 80 U. 63 64 68 ((88)) 44

[Statutory Authority: RCW 67.70.040. 98-15-115, 315-36-010, filed 7/20/98, effective 8/20/98.]


AMENDATORY SECTION(Amending WSR 98-15-115, filed 7/20/98, effective 8/20/98)

WAC 315-36-030   What are the prizes for Lucky for Life?   (1) The grand prize is $1,000 per week for life, as specified in WAC 315-36-110. This is the prize for matching all four of the numbers in the first set designated on the ticket to the winning set of four numbers.

(2) The prizes for matching all four numbers in any of the remaining twenty sets to the winning numbers are specified under headings on the ticket, and are as follows:


((Number of Sets Prize Bracket
Two $50,000
Four $25,000
Six $10,000
Eight $5,000))

Prize Bracket Number of Sets
$50,000 Two
$20,000 Four
$10,000 Six
$5,000 Eight

(3) For matching three numbers in one of your sets to three numbers in the winning set, you win ((fifty)) twenty-five dollars. For matching two numbers in one of your sets to two numbers in the winning set of numbers, you win a prize of ((four)) two dollars. You may win no more than one prize for each set of numbers.

(4) All prize payments are subject to federal income tax withholding requirements and debt checks, pursuant to RCW 67.70.255.

[Statutory Authority: RCW 67.70.040. 98-15-115, 315-36-030, filed 7/20/98, effective 8/20/98.]


AMENDATORY SECTION(Amending WSR 98-15-115, filed 7/20/98, effective 8/20/98)

WAC 315-36-050   How is the winning set of numbers selected?   Lottery officials conduct the drawing for the winning set of numbers, as specified in the general rules for on-line game drawings, WAC 315-30-040. The director has the discretion to specify the means for randomly drawing the winning numbers. Each drawing shall determine, at random, four numbers from (("00")) "01" through (("99,")) "82," which will be the winning set of numbers. No two of the four numbers in the winning set will be identical. Any drawn numbers will not be declared winning numbers until the drawing is validated by the lottery. The winning numbers shall be used to determine all Lucky for Life winners for that drawing. If a drawing is not validated, another drawing will be conducted to determine the four numbers, which will be the winning set of numbers. The drawing shall not be invalidated based on the liability of the lottery.

[Statutory Authority: RCW 67.70.040. 98-15-115, 315-36-050, filed 7/20/98, effective 8/20/98.]


AMENDATORY SECTION(Amending WSR 98-15-115, filed 7/20/98, effective 8/20/98)

WAC 315-36-090   What are the odds of winning Lucky for Life?   The odds of winning any prize are 1 in ((7)) 4.6. The odds of winning specific prizes are as follows:

"Lifetime Cash" type Grand Prize: ((1:3,921,225)) 1:1,749,060
"$50,000 Prize": ((1:1,960,613)) 1:874,530
"(($25,000)) $20,000 Prize": ((1:980,306)) 1:437,265
"$10,000 Prize": ((1:653,538)) 1:291,510
"$5,000 Prize": ((1:490,153)) 1:218,633
Match three numbers (($50)) $25 Prize: ((1:486)) 1:267
Match two numbers (($4)) $2 Prize: ((1:7)) 1:5

[Statutory Authority: RCW 67.70.040. 98-15-115, 315-36-090, filed 7/20/98, effective 8/20/98.]


AMENDATORY SECTION(Amending WSR 98-15-115, filed 7/20/98, effective 8/20/98)

WAC 315-36-110   How is the "Lifetime Cash" type grand prize paid?   (1) You must be a natural person (e.g., not a legal entity such as a corporation) to claim the prize of $1,000 per week for life.

(2) ((At the discretion of the director, winners may be permitted to choose grand prize payments either made once a year for $52,000 or made once per week for $1,000 per week for a total of 52 payments in one calendar year. The first payment will be made after validation of the winning ticket.

(3) Your prize becomes payable on the first business day following the drawing in which the winning numbers were drawn. If both payment methods are allowed and you select the annual payment, your first payment after ticket validation will be based on the number of weeks remaining in the calendar year in which you claim the prize. The number of weeks will be based on the first business day after the drawing in which the winning numbers were drawn. For example, if the drawing is on a Wednesday, and there are 17 Thursdays left in the calendar year (including the first business day after the drawing), you will be entitled to $17,000 for the payment in the calendar year in which you claim your prize. Annual payments of $52,000 will be paid in January of each qualifying year.

(4) If both payment methods are allowed and you select the annual payment, you are entitled to the $52,000 payment if you live until January 1, even if you do not live until the end of the calendar year. If you select the weekly payment and live until January 1, but you do not live the entire calendar year, your estate will be entitled to receive your weekly payments until the end of the calendar year.

(5) If both payment methods are allowed and you select the weekly payment, you must furnish the lottery with a bank account number for electronic funds transfer (EFT) of your weekly payments, within 30 days of claiming your prize. Failure to provide a bank account number may result in paying your prize in one annual payment. You may choose to change your payment method to an annual payment by so notifying the lottery, which will calculate within 45 days the remainder due for the calendar year. Persons selecting an annual payment may not change their selection to weekly payments.

(6) If both payment methods are allowed and you select the weekly payment, your first payment will be based on the number of weekly payments which have accrued since the first business day after the drawing in which your winning numbers were selected. Thereafter, your payments will be $1,000 per week.

(7) If only one payment method is allowed by the director, then the grand prize will be paid as one annual payment as set forth above.

(8) The director has the discretion to revise the payment method or methods or select one payment method if it is in the best interests of the lottery, so long as each winner of the "Lifetime Cash" type prize receives a total of $52,000 for each calendar year after the year in which he/she claims the prize.

(9))) The "Lifetime Cash" type grand prize is paid annually as one payment of $52,000 per year. The date of the first payment shall be the date the claim is validated. Subsequent annual payments shall be paid on the anniversary date of the drawing in which the winning numbers were selected; however, at the director's discretion, the lottery may designate an alternate payment date for regular prize payment.

(3) If you are under eighteen at the time of claiming the grand prize, ((weekly or annual payments will begin on your eighteenth birthday. For purposes of calculating your initial payment, the day before your eighteenth birthday will be treated as the date of the drawing of the winning numbers)) your initial payment will commence on your eighteenth birthday. Subsequent payments will commence in the calendar year following your eighteenth birthday, on the anniversary date of the drawing in which the winning numbers were selected. At the director's discretion, the lottery may designate an alternate payment date for regular prize payment. You must notify the lottery where your payments should be sent ((and whether you choose weekly or annual payments,)) at least ((30)) 60 days preceding your eighteenth birthday.

(((10))) (4) "Lifetime Cash" winners are responsible to inform the lottery of any address or bank account changes affecting receipt of payments, at least ((30)) 60 days preceding the ((address or account change)) annual payment date.

(((11))) (5) "Lifetime Cash" winners are responsible to verify by notarized letter each year that they continue to be entitled to their annual lifetime prize. Verification is due to the lottery 60 days preceding the annual payment date.

(6) If a winner dies before payment of $250,000 under this section, the winner's successor-in-interest will be entitled to receive a lump sum payment in the amount necessary to bring the amount paid as a prize under this section up to a total of $250,000. Any successor-in-interest must provide the lottery with the necessary documentation and a court order directing payment of the final amount to the successor or successors entitled to payment. The determination of the sufficiency of the documentation shall lie within the discretion of the director of the lottery. Payment to the successor or successors shall be governed by all applicable laws, including WAC 315-06-120, 315-06-123, and 315-06-130.

(((12))) (7) The winner's successor-in-interest must notify the lottery of the death of the winner. If the lottery makes a payment after the winner's death, the lottery shall require return of the payment, except, at the director's discretion, the payment may be deducted from any lump sum payment due to the winner's estate.

[Statutory Authority: RCW 67.70.040. 98-15-115, 315-36-110, filed 7/20/98, effective 8/20/98.]

Washington State Code Reviser's Office