Date of Adoption: November 15, 2001.

Purpose: After reviewing the agency's budget, staff determined that a fee increase of 2.79% was needed to cover budget requirements. This increase is in accordance with the limitations set forth in Initiative 601. The CR-102 filing listed two alternatives: One raised fees for all licensees; the second alternative raised fees for commercial licensees, however, fees for charitable and nonprofit licensees were not raised. Both Alternative #1 and #2 listed FRE licensing fees as set forth in staff's alternative to Mr. Walker's petition for rule change, which was held over from the August meeting so it could be incorporated in WAC 230-04-202. This allowed all changes to be made to WAC 230-04-202 at one time, rather than adopting an amendment in August and possibly again in November.

At the November commission meeting, the commission adopted the second alternative, which raised fees for commercial operators and did not raise fees for charitable and nonprofit licensees.

Citation of Existing Rules Affected by this Order: Amending WAC 230-04-202, 230-04-203, 230-04-204, and 230-08-017.

Statutory Authority for Adoption: RCW 9.46.070.

Adopted under notice filed as WSR 01-19-035 on September 13, 2001.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 4, Repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 4, Repealed 0.

Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 4, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.
Effective Date of Rule: January 1, 2002.

November 16, 2001

Susan Arland

Rules Coordinator

OTS-5126.1

Alternative #2
AMENDATORY SECTION(Amending Order 399, filed 2/9/01, effective 3/12/01)

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				$ 53
Class B	Up to	$	10,000		$ 53
Class C	Up to	$	25,000		$ 285
Class D	Up to	$	50,000		$ 457
Class E	Over	$	50,000		$ 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		$ 53
Class B	Up to	$	50,000	$	1,000		$ 166
Class C	Up to	$	100,000	$	2,000		$ 339
Class D	Up to	$	250,000	$	4,000		$ 915
Class E	Up to	$	500,000	$	8,000		$ 1,541
Class F	Up to	$	1,000,000	$	15,000		$ 3,095
Class G	Up to	$	1,500,000	$	23,000		$ 4,467
Class H	Up to	$	2,000,000	$	30,000		$ 5,967
Class I	Up to	$	2,500,000	$	38,000		$ 7,455
Class J	Up to	$	3,000,000	$	45,000		$ 8,945
Class K	Up to	$	3,500,000	$	53,000		$ 10,034
Class L	Up to	$	4,000,000	$	60,000		$ 11,470
Class M and above	Over	$	4,000,000		Not applicable		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)		$571
Class B	Limited card games - hearts, rummy, pitch, pinochle, and cribbage (Fee to play charged)		$ 166
Class C	Tournament only - no more than ten consecutive days per tournament		$ 53
Class D	General (No fee to play charged)		$ 53

4. FUND-RAISING EVENT
Class A	One event - not more than 24 consecutive hours		$ 339
	First time applicant
	*Previously licensed applicant		$ 200
Class B	One event - not more than 72 consecutive hours		$ 571
	First time applicant
	*Previously licensed applicant		$ 350
Class C	Additional participant in joint event (not lead organization)		$ 166
Class D	Limited fund-raising event (one event - not more than six consecutive hours)
	First time applicant		$ 150
	**Previously licensed applicant		$ 100
Class ((D)) E	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***		$ 226
Class ((E)) F	Fund-Raising Event Equipment Distributor - rents or leases equipment for fund-raising event or recreational gaming activity more than ten times per year.		$ 571

*	Provides for a reduced fee when charitable and nonprofit organizations apply for an additional Class A or Class B fund-raising event.

**	Provides for a fee reduction when charitable and nonprofit organizations apply for an additional Class D limited fund-raising event.

***	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		$ 544
Class B	Up to	$	100,000	$	5,000		$ 971
Class C	Up to	$	200,000	$	10,000		$ 1,832
Class D	Up to	$	300,000	$	10,000		$ 2,663
Class E	Up to	$	400,000	$	10,000		$ 3,440
Class F	Up to	$	500,000	$	10,000		$ 4,153
Class G	Up to	$	600,000	$	10,000		$ 4,812
Class H	Up to	$	700,000	$	10,000		$ 5,416
Class I	Up to	$	800,000	$	10,000		$ 5,967
Class J	Up to	$	1,000,000	$	20,000		$ 6,765
Class K	Up to	$	1,250,000	$	25,000		$ 7,509
Class L	Up to	$	1,500,000	$	25,000		$ 8,201
Class M	.Up to	$	1,750,000	$	25,000		$ 8,771
Class N	Up to	$	2,000,000	$	25,000		$ 9,290
Class O	Over	$	2,000,000	Non- applicable			$ 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		$ 53
Class B	Up to	$	10,000		$ 166
Class C	Up to	$	25,000		$ 339
Class D	Up to	$	50,000		$ 571
Class E	Up to	$	75,000		$ 915
Class F	Over	$	75,000		$ 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.			$ 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.			$ 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.			$ 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)		$ 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 LICENSE	(See WAC 230-04-290)		$ 26

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

12. SIX-MONTH PAYMENT PLAN

(See WAC 230-04-190)

$ 26

[Statutory Authority: RCW 9.46.070. 01-05-019 (Order 399), 230-04-202, filed 2/9/01, effective 3/12/01; 99-24-099 (Order 377), 230-04-202, filed 11/30/99, effective 12/31/99; 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-5068.3

AMENDATORY SECTION(Amending Order 399, filed 2/9/01, effective 3/12/01)

WAC 230-04-203   Fees -- Commercial stimulant and other business organizations.   All persons seeking to operate gambling activities 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, and/or cribbage (Fee to play charged)

$ ((166)) 170

Class C

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

C-5

Up to five tables

$ ((166)) 170

C-10

Up to ten tables

$ ((300)) 308

C-15

Up to fifteen tables

$ ((500)) 513

Class D

General - Up to five tables (No fee to play charged)

$ ((53)) 54

Class E

*General (Fee to play charged)

E-1

One table only

$ ((398)) 409

E-2

Up to two tables

$ ((685)) 704

E-3

Up to three tables

$ ((1,142)) 1,172

E-4

Up to four tables

$ ((2,287)) 2,350

E-5

Up to five tables

$ ((3,440)) 3,534

Additional tables up to a maximum of fifteen may be authorized for an additional per table fee of $ ((1000)) 1,027.

*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 endorsement - Includes alternative fee collections (per hand; pot rake) and use of player-supported jackpot schemes.

Annual license fee

$ ((1,500)) 1,540

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)) 6,166

Per table fee (up to fifteen tables)

$ ((1,500)) 1,540

*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 actual costs. Licensees will be evaluated and charged for these additional authorizations/phases on an individual case by case basis.

3.

COMMERCIAL AMUSEMENT GAMES

(Fee based on annual gross gambling receipts)

*

Class A

Premises only

**(( $ 285/$ 130)) $292/$133

Class B

Up to $ 50,000

$ ((398)) 409

Class C

Up to $ 100,000

$ ((1,024)) 1,052

Class D

Up to $ 250,000

$ ((2,287)) 2,350

Class E

Up to $ 500,000

$ ((4,012)) 4,122

Class F

Up to $ 1,000,000

$ ((6,883)) 7,074

Class G

Over $ 1,000,000

$ ((8,610)) 8,850

* 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 $ ((155)) 159 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.

4.

PUNCH BOARDS/ PULL-TABS

(Fee based on annual gross gambling receipts)

VARIANCE*

Class A

Up to $

50,000

$

5,000

$ ((544)) 559

Class B

Up to $

100,000

$

5,000

$ ((971)) 998

Class C

Up to $

200,000

$

10,000

$ ((1,832)) 1,882

Class D

Up to $

300,000

$

10,000

$ ((2,663)) 2,736

Class E

Up to $

400,000

$

10,000

$ ((3,440)) 3,534

Class F

Up to $

500,000

$

10,000

$ ((4,153)) 4,268

Class G

Up to $

600,000

$

10,000

$ ((4,812)) 4,946

Class H

Up to $

700,000

$

10,000

$ ((5,416)) 5,566

Class I

Up to $

800,000

$

10,000

$ ((5,967)) 6,132

Class J

Up to $

1,000,000

$

20,000

$ ((6,765)) 6,952

Class K

Up to $

1,250,000

$

25,000

$ ((7,509)) 7,718

Class L

Up to $

1,500,000

$

25,000

$ ((8,201)) 8,428

Class M

Up to $

1,750,000

$

25,000

$ ((8,771)) 9,014

Class N

Up to $

2,000,000

$

25,000

$ ((9,290)) 9,548

Class O

Over $ 2,000,000

Nonapplicable

$ ((10,208)) 10,492

* 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)) 211

Additional associate

$ ((129)) 132

Renewal

$ ((51)) 52

*Includes up to two associates.

6.

DISTRIBUTOR

(Fee based on annual gross sales of gambling related supplies and equipment)

(a)

Class A

Nonpunch board/pull-tab only

$ ((571)) 586

Class B

Up to $ 250,000

$ ((1,142)) 1,172

Class C

Up to $ 500,000

$ ((1,715)) 1,762

Class D

Up to $ 1,000,000

$ ((2,287)) 2,350

Class E

Up to $ 2,500,000

$ ((2,977)) 3,060

Class F

Over $ 2,500,000

$ ((3,667)) 3,768

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.

$ ((226)) 232

Class B

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

$ ((571)) 586

7.

GAMBLING SERVICE SUPPLIER

(See WAC 230-04-119)

$ ((594)) 610

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)) 3,920

9.

MANUFACTURER

(Fee based on annual gross sales of gambling related supplies and equipment)

Class A

Pull-tab dispensing devices only

$ ((571)) 586

Class B

Up to $ 250,000

$ ((1,142)) 1,172

Class C

Up to $ 500,000

$ ((1,715)) 1,762

Class D

Up to $ 1,000,000

$ ((2,287)) 2,350

Class E

Up to $ 2,500,000

$ ((2,977)) 3,060

Class F

Over $ 2,500,000

$ ((3,667)) 3,768

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.

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)

$ ((166)) 170

RECREATIONAL GAMING ACTIVITY (RGA)

(See WAC 230-02-505 and 230-25-330)

$ ((53)) 54

MANUFACTURER'S SPECIAL SALES PERMIT

(See WAC 230-04-115)

*$((200)) 205

*The two hundred five dollar fee is nonrefundable, whether the sales permit is approved or not. In addition, an applicant may be assessed additional fees incurred to process and determine suitability.

11.

CHANGES

NAME

(See WAC 230-04-310)

$ 26

LOCATION

(See WAC 230-04-320)

$ 26

BUSINESS

(Same owners)

$ ((53)) 54

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)) CORPORATE STOCK/LIMITED LIABILITY COMPANY SHARES/UNITS

(See WAC ((230-04-340)) 230-04-360)

$ ((53)) 54

LICENSE TRANSFERS

(See WAC 230-04-125((,)) and 230-04-340((, and 230-04-350)))

$ ((53)) 54

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, PARA- PHERNALIA, SERVICES, OR SCHEMES

(See WAC 230-12-315)

As required

SPECIAL SALES PERMITS

(See WAC 230-04-115)

As required

ELECTRONIC CARD FACSIMILE TABLE IDENTIFICATION

(See WAC 230-08-017)

*$ 350

STAMP

*Annually, for each separate table

13.

SIX-MONTH PAYMENT PLAN

(See WAC 230-04-190)