WSR 07-19-071

PROPOSED RULES

GAMBLING COMMISSION


[ Filed September 17, 2007, 1:31 p.m. ]

     Original Notice.

     Preproposal statement of inquiry was filed as WSR 07-16-030.

     Title of Rule and Other Identifying Information: WAC 230-04-202 Fees -- Bona fide charitable/nonprofit organizations, 230-04-203 Fees -- Commercial stimulant and other business organizations, 230-04-204 Fees -- Individuals, 230-08-017 Control of gambling equipment -- Use of identification and inspection services stamps, 230-05-020 Charitable or nonprofit organization fees, 230-05-025 Commercial stimulant fees, 230-05-030 Fees for other businesses, and 230-05-035 Individual license fees.

     Hearing Location(s): DoubleTree Guest Suites, 16500 Southcenter Parkway, Seattle, WA 98188, (206) 575-8220, on November 16, 2007, at 9:30 a.m.

     Date of Intended Adoption: November 16, 2007.

     Submit Written Comments to: Susan Arland, P.O. Box 42400, Olympia, WA 98504-2400, e-mail Susan2@wsgc.wa.gov, fax (360) 486-3625, by November 1, 2007.

     Assistance for Persons with Disabilities: Contact Gail Grate, Executive Assistant, by November 1, 2007, TTY (360) 486-3637 or (360) 486-3453.

     Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The commission is a nonappropriated agency. RCW 9.46.070(5) requires the commission to set fees to generate funds necessary to cover all costs of licensing and enforcement.

     Reasons Supporting Proposal: See above.

     Statutory Authority for Adoption: RCW 9.46.070.

     Statute Being Implemented: Not applicable.

     Name of Proponent: Washington state gambling commission, governmental.

     Name of Agency Personnel Responsible for Drafting: Susan Arland, Rules Coordinator, Lacey, (360) 486-3466; Implementation: Rick Day, Director, Lacey, (360) 486-3446; 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 has not been prepared pursuant to RCW 19.85.025, and/or the proposed rule change clarifies language of rules without changing the effect.

     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.

September 14, 2007

Susan Arland

Rules Coordinator

OTS-9805.1


AMENDATORY SECTION(Amending Order 466, filed 1/18/07, effective 6/30/07)

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 $ ((55))

58
     Class B Up to $ 10,000 $ ((55))

58
     Class C Up to $ 25,000 $ ((303)) 319
     Class D Up to $ 50,000 $ ((487)) 513
     Class E Over $ 50,000 $ ((848)) 894

* 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 $25,000 $1,000 $ ((55))

58
Class B Up to $75,000 $1,000 $ ((176))

185
Class C Up to $150,000 $2,000 $ ((361))

380
Class D Up to $350,000 $4,000 $ ((974)) 1,026
Class E Up to $650,000 $8,000 $ ((1,642)) 1,732
Class F Up to $1,500,000 $15,000 $ ((3,304)) 3,486
Class G Up to $2,000,000 $23,000 $ ((4,766)) 5,028
Class H Up to $3,000,000 $30,000 $ ((6,370)) 6,722
Class I Up to $4,000,000 $38,000 $ ((7,960)) 8,400
Class J Up to $5,000,000 $45,000 $ ((9,550)) 10,078
Class K Up to $6,000,000 $53,000 $ ((10,714)) 11,306
Class L Up to $7,000,000 $60,000 $ ((12,246)) 12,922
Class M Up to $8,000,000 $65,000 $ ((13,780)) 14,542
Class N Up to $9,000,000 $70,000 $ ((14,990)) 15,818
Class O Up to $10,000,000 $75,000 $ ((16,540)) 17,454
Class P Up to $11,000,000 $80,000 $ ((18,090)) 19,090
Class Q Up to $12,000,000 $85,000 $ ((21,708)) 22,908
Class R Up to $13,000,000 $90,000 $ ((24,810)) 26,180
Class S Up to $14,000,000 $95,000 $ ((27,912)) 29,454

* 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) $ ((608)) 641
     Class B Limited card games - hearts, rummy, pitch, pinochle, and cribbage (Fee to play charged) $ ((176)) 185
     Class C Tournament only - no more than ten consecutive days per tournament

$ ((55))

58
     Class D General (No fee to play charged) $ ((55))

58
4. FUND-RAISING EVENT
     Class A One event - not more than 24 consecutive hours $ ((361)) 380
First time applicant
*Previously licensed applicant $ ((212)) 223
     Class B One event - not more than 72 consecutive hours $ ((608)) 641
First time applicant
*Previously licensed applicant $ ((373)) 393
     Class C Additional participant in joint event (not lead organization) $ 176
     Class D Limited fund-raising event (one event - not more than six consecutive hours)
First time applicant $ ((159)) 167
**Previously licensed applicant $ ((106)) 111
     Class 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*** $ ((240)) 253
     Class F Fund-Raising Event Equipment Distributor - rents or leases equipment for fund-raising event or recreational gaming activity more than ten times per year.

$ ((608)) 641

* 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 $ ((579)) 611
     Class B Up to $100,000 $5,000 $ ((1,034)) 1,090
     Class C Up to $200,000 $10,000 $ ((1,954)) 2,064
     Class D Up to $300,000 $10,000 $ ((2,842)) 2,998
     Class E Up to $400,000 $10,000 $ ((3,672)) 3,874
     Class F Up to $500,000 $10,000 $ ((4,432)) 4,676
     Class G Up to $600,000 $10,000 $ ((5,136)) 5,420
     Class H Up to $700,000 $10,000 $ ((5,782)) 6,100
     Class I Up to $800,000 $10,000 $ ((6,370)) 6,722
     Class J Up to $1,000,000 $20,000 $ ((7,222)) 7,620
     Class K Up to $1,250,000 $25,000 $ ((8,018)) 8,460
     Class L Up to $1,500,000 $25,000 $ ((8,756)) 9,240
     Class M .Up to $1,750,000 $25,000 $ ((9,364)) 9,880
     Class N Up to $2,000,000 $25,000 $ ((9,918)) 10,486
     Class O Up to $2,500,000 $30,000 $((10,898))

11,500
     Class P Up to $3,000,000 $35,000 $ ((11,578)) 12,218
     Class Q Up to $4,000,000 $40,000 $ ((13,646)) 14,400
     Class R Up to $5,000,000 $50,000 $ ((15,506)) 16,362
     Class S Up to $6,000,000 $60,000 $ ((17,574)) 18,544
     Class T Up to $7,000,000 $70,000 $ ((19,642)) 20,728
     Class U Up to $8,000,000 $80,000 $ ((21,708)) 22,908
     Class V Over $8,000,000 $80,000 $ ((23,776)) 25,090

* 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 $ ((55))

58
     Class B Up to $ 10,000 $ ((176))

185
     Class C Up to $ 25,000 $ ((361))

380
     Class D Up to $ 50,000 $ ((608))

641
     Class E Up to $ 75,000 $ ((974)) 1,026
     Class F Over $ 75,000 $ ((1,460)) 1,540
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. $ ((109)) 115
     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.

$ ((285)) 300
     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. $ ((660)) 696
8. SEPARATE PREMISES
BINGO Per occasion

(see WAC 230-04-300)

 $ ((26))

27
9. PERMITS
AGRICULTURAL

FAIR-BINGO

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

GAMING ACTIVITY

(RGA)

 (See WAC 230-25-330

and 230-02-505)

 $ ((55))

58
10. CHANGES
NAME (See WAC 230-04-310) $ ((26))

27
LOCATION (See WAC 230-04-320) $ ((26))

27
FRE (Date or time)

(See WAC 230-04-325)

$ ((26))

27
LICENSE CLASS (See WAC 230-04-260) $ ((26))

27
DUPLICATE

LICENSE

 (See WAC 230-04-290) $ ((26))

27
11. SPECIAL FEES
INVESTIGATION (See WAC 230-04-240) As required
REPLACEMENT IDENTI-

FICATION STAMPS

 (See WAC 230-08-017) $ ((26))

27
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))

27

[Statutory Authority: RCW 9.46.070. 07-03-081 (Order 466), § 230-04-202, filed 1/18/07, effective 6/30/07; 03-01-031 (Order 417), § 230-04-202, filed 12/6/02, effective 6/30/03; 01-23-056, § 230-04-202, filed 11/20/01, effective 1/1/02; 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-9828.1


AMENDATORY SECTION(Amending Order 472, filed 5/15/07, effective 6/30/07)

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
1. CARD GAMES
Class B Up to five tables of limited card games - hearts, rummy, pitch, pinochle, and/or cribbage (Fee to play charged) $ ((180))

189
Class C Tournament only, no more than ten consecutive days per tournament.

C-5 Up to five tables $ ((180))

189
C-10 Up to ten tables $ ((328))

346
C-15 Up to fifteen tables $ ((546))

576
Class D General - Up to five tables (No fee to play charged) $ ((56))

59
Class E *General (Fee to play charged)
E-1 One table only $ ((436))

460
E-2 Up to two tables $ ((751))

792
E-3 Up to three tables $ ((1,250)) 1,318
E-4 Up to four tables $ ((2,506)) 2,644
E-5 Up to five tables $ ((3,772)) 3,980
Additional tables up to a maximum of fifteen may be authorized for an additional per table fee of $ ((1,092)) 1,152.
*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 card room activities endorsement - Includes alternative fee collections (per hand; pot rake) and use of player-supported jackpot schemes.
Annual license fee $ ((1,642))

1,732
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 $ ((6,582))

6,944
Per table fee (up to fifteen tables) $ ((1,642))

1,732
*In addition to the above initial license fee, the commission will assess all applicants the actual costs that exceed the license fee 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
Class B Up to $ 50,000 $ ((436))

460
Class C Up to $ 100,000 $ ((1,122)) 1,184
Class D Up to $ 250,000 $ ((2,506)) 2,644
Class E Up to $ 500,000 $ ((4,398)) 4,640
Class F Up to $ 1,000,000 $ ((7,552)) 7,968
Class G Over $ 1,000,000 $ ((9,448)) 9,970
* 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 $ ((167)) 177 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 $ ((596))

628
Class B Up to $100,000 $5,000 $ ((1,064)) 1,122
Class C Up to $200,000 $10,000 $ ((2,006)) 2,116
Class D Up to $300,000 $10,000 $ ((2,920)) 3,080
Class E Up to $400,000 $10,000 $ ((3,772)) 3,980
Class F Up to $500,000 $10,000 $ ((4,556)) 4,806
Class G Up to $600,000 $10,000 $ ((5,280)) 5,570
Class H Up to $700,000 $10,000 $ ((5,942)) 6,270
Class I Up to $800,000 $10,000 $ ((6,546)) 6,906
Class J Up to $1,000,000 $20,000 $ ((7,422)) 7,832
Class K Up to $1,250,000 $25,000 $ ((8,238)) 8,692
Class L Up to $1,500,000 $25,000 $ ((8,998)) 9,494
Class M Up to $1,750,000 $25,000 $ ((9,624)) 10,156
Class N Up to $2,000,000 $25,000 $ ((10,194)) 10,756
Class O Up to $2,500,000 $30,000 $ ((11,202)) 11,820
Class P Up to $3,000,000 $35,000 $ ((11,578)) 12,218
Class Q Up to $4,000,000 $40,000 $ ((13,646)) 14,400
Class R Up to $5,000,000 $50,000 $ ((15,506)) 16,362
Class S Up to $6,000,000 $60,000 $ ((17,574)) 18,544
Class T Up to $7,000,000 $70,000 $ ((19,642)) 20,728
Class U Up to $8,000,000 $80,000 $ ((21,708)) 22,908
Class V Over $8,000,000 $80,000 $ ((23,776)) 25,090
* 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 $ ((224))

236
Additional associate $ ((140))

147
Renewal $ ((54))

56
*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 $ ((625))

659
Class B Up to $ 250,000 $ ((1,250)) 1,318
Class C Up to $ 500,000 $ ((1,878)) 1,980
Class D Up to $ 1,000,000 $ ((2,506)) 2,644
Class E Up to $ 2,500,000 $ ((3,266)) 3,446
Class F Over $ 2,500,000 $ ((4,020)) 4,242
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. $ ((247))

260
Class B Rents or leases equipment for fund-raising event or recreational gaming activity more than 10 times per year. $ ((625))

659
7. GAMBLING SERVICE SUPPLIER
(See WAC 230-04-119) $ ((651))

687
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.
A fee of $ ((136)) 143 shall be charged for each new contract initiated by the gambling service supplier.
8. LINKED BINGO PRIZE PROVIDER
(See WAC 230-04-126) $ ((4,184)) 4,414
9. MANUFACTURER (Fee based on annual gross sales of gambling related supplies and equipment)
Class A Pull-tab dispensing devices only $ ((625))

659
Class B Up to $ 250,000 $ ((1,250)) 1,318
Class C Up to $ 500,000 $ ((1,878)) 1,980
Class D Up to $ 1,000,000 $ ((2,506)) 2,644
Class E Up to $ 2,500,000 $ ((3,266)) 3,446
Class F Over $ 2,500,000 $ ((4,020)) 4,242
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))

27
Class B Annual permit for specified different events and locations (See WAC 230-04-193)

$ ((180)) 189
RECREATIONAL

GAMING ACTIVITY

(RGA)

 (See WAC 230-02-505

and 230-25-330)

$ ((56))

59
MANUFACTURER'S SPECIAL SALES PERMIT (See WAC 230-04-115) *$((211)) 222
*The two hundred ((eleven)) twenty-two 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))

27
LOCATION (See WAC 230-04-320) $ ((26))

27
BUSINESS (Same owners) $ ((56))

59
CLASSIFICATION (See WAC 230-04-340)
LICENSE CLASS (See WAC 230-04-260) New class fee, less previous fee paid, plus

$ ((26))

27
DUPLICATE LICENSE (See WAC 230-04-290) $ ((26))

27
CORPORATE STOCK/LIMITED LIABILITY COMPANY SHARES/UNITS (See WAC 230-04-360) $ ((56))

|59
LICENSE TRANSFERS (See WAC 230-04-125 and 230-04-340) $ ((56))

59
12. SPECIAL FEES