Source: https://apps.leg.wa.gov/WAC/default.aspx?cite=230-07&full=true
Timestamp: 2020-04-10 00:10:04
Document Index: 651343111

Matched Legal Cases: ['§ 230', '§ 230', '§ 230', '§ 230', '§ 230', '§ 230', '§ 230', '§ 230', '§ 230', '§ 230', '§ 230', '§ 230', '§ 230', '§ 230', '§ 230', '§ 230', '§ 230', '§ 230', '§ 230', '§ 230', '§ 230', '§ 230', '§ 230', '§ 230', '§ 230', '§ 230', '§ 230', '§ 230', '§ 230', '§ 230', '§ 230', '§ 230', '§ 230', '§ 230', '§ 230', '§ 230', '§ 230', '§ 230', '§ 230', '§ 230', '§ 230', '§ 230', '§ 230', '§ 230', '§ 230', '§ 230']

Chapter 230-07 WAC:
WACs > Title 230 > Chapter 230-07
Last Update: 3/30/18
HTMLPDF 230-07-001 Defining "charitable or nonprofit licensee."
HTMLPDF 230-07-005 Defining "licensees," "licensee," "organizations," and "organization."
HTMLPDF 230-07-010 Use of gambling proceeds.
HTMLPDF 230-07-015 Regulatory group assignments.
HTMLPDF 230-07-020 Making "significant progress."
HTMLPDF 230-07-025 Additional requirements for "significant progress" for Groups IV and V.
HTMLPDF 230-07-030 Defining "functional expenses."
HTMLPDF 230-07-035 Defining "program service expenses."
HTMLPDF 230-07-040 Defining "supporting service expenses."
HTMLPDF 230-07-045 Obtaining a waiver for significant progress requirements.
HTMLPDF 230-07-050 Defining "excessive reserves."
HTMLPDF 230-07-051 Accumulating excessive reserves.
HTMLPDF 230-07-055 Prorating expenses when gambling funds are not kept separate.
HTMLPDF 230-07-060 Independent management structure required.
HTMLPDF 230-07-065 Group III, IV, and V management control system.
HTMLPDF 230-07-070 Defining "direct relatives."
HTMLPDF 230-07-075 Conflicts of interest.
HTMLPDF 230-07-080 Qualification reviews for Groups III, IV and V.
HTMLPDF 230-07-085 Compensating gambling management and operations personnel.
HTMLPDF 230-07-090 Keeping and depositing all gambling funds separate from other funds.
HTMLPDF 230-07-095 Fund-raising events and members only raffles exempt from deposit requirements.
HTMLPDF 230-07-100 Special banking exemption for Point Roberts Peninsula.
HTMLPDF 230-07-105 Safeguarding prize inventory.
HTMLPDF 230-07-106 Insuring prizes.
HTMLPDF 230-07-110 Supervision requirements.
HTMLPDF 230-07-115 Duties of charitable or nonprofit gambling managers.
HTMLPDF 230-07-120 Notifying us of changes in responsibilities of charitable or nonprofit gambling managers.
HTMLPDF 230-07-125 Recordkeeping requirements for lower volume charitable or nonprofit organizations.
HTMLPDF 230-07-130 Additional recordkeeping for charitable or nonprofit licensees.
HTMLPDF 230-07-135 Recording gifts.
HTMLPDF 230-07-140 Minimum accounting records for bingo licensees with gross gambling receipts over one hundred fifty thousand dollars in their previous license year and licensees with combined activities over five hundred thousand dollars in their previous license year.
HTMLPDF 230-07-145 Reporting annual progress.
HTMLPDF 230-07-150 Financial statements required for Groups III, IV, and V.
HTMLPDF 230-07-155 Reporting annual activity for raffles, enhanced raffles, amusement games, Class A, B, or C bingo, or combination licenses.
HTMLPDF 230-07-160 Reporting annual activity for agricultural fairs.
PDF230-07-001
Defining "charitable or nonprofit licensee."
In this section of the rules, "charitable or nonprofit licensees" means the same as a bona fide charitable or nonprofit organization as defined in RCW 9.46.0209.
[Statutory Authority: RCW 9.46.070. WSR 07-10-032 (Order 609), § 230-07-001, filed 4/24/07, effective 1/1/08.]
PDF230-07-005
[Statutory Authority: RCW 9.46.070. WSR 07-21-116 (Order 617), § 230-07-005, filed 10/22/07, effective 1/1/08; WSR 07-10-032 (Order 609), § 230-07-005, filed 4/24/07, effective 1/1/08.]
PDF230-07-010
Use of gambling proceeds.
(1) Except qualified agricultural fairs, charitable or nonprofit organizations must use all net income from gambling activities remaining after paying necessary expenses of operating the gambling activities exclusively for the lawful purpose(s) of the organization stated on the organization's license application.
(2) Licensees may conduct a gambling activity for the charitable benefit of specific person(s) whom the licensee has listed as recipient(s) of the proceeds, or a specified portion of the proceeds, if licensees obtain approval from us before they conduct the activity.
[Statutory Authority: RCW 9.46.070. WSR 07-10-032 (Order 609), § 230-07-010, filed 4/24/07, effective 1/1/08.]
PDF230-07-015
Regulatory group assignments.
(1) We assign charitable or nonprofit licensees to regulatory groups based on the annual gross gambling receipts for their combined licensed activities.
(2) Licensees must comply with requirements applicable to the regulatory group to which we have assigned them. The regulatory groups are:
Combined annual gross receipts up to three hundred thousand dollars.
Combined annual gross receipts up to one million dollars.
Combined annual gross receipts up to three million dollars.
Combined annual gross receipts up to five million dollars.
(e) Group V
Combined annual gross receipts over five million dollars.
[Statutory Authority: RCW 9.46.070. WSR 07-10-032 (Order 609), § 230-07-015, filed 4/24/07, effective 1/1/08.]
PDF230-07-020
Making "significant progress."
Charitable or nonprofit licensees must make "significant progress" toward their stated purpose. They have made "significant progress" when they have:
(1) Complied with all requirements set forth in their bylaws and articles of incorporation; and
(2) Actively engaged in providing services to the public or their members during the fiscal year under review, and the services directly relate to the stated purposes of the organization; and
(3) Held elections to select officers at least once in the previous two years; and
(4) Held a general membership meeting to conduct the business of the organization at least once in the previous two years; and
(5) Used a substantial portion of the licensees' "available resources" for providing program services during the fiscal year under review. For purposes of this section, "available resources":
(a) Include the income generated by or from:
(i) The net of all activities used to raise funds, including net gambling income; and
(ii) Grants, gifts, and contributions from private sources; and
(iii) Public support.
(i) Funds generated in periods other than the fiscal year under review; or
(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 those funds are specifically identified by the board or contributors as restricted and separately recorded in the organization's records; or
(iii) Net income from the sale of assets; or
(iv) Fees paid by members or the public to receive services or to participate in specific activities. (Example: Fees to attend a swimming lesson or event.) These fees must 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 fiscal year. (Example: In the chart below, licensee X has revenue of five thousand dollars. They must calculate the pro rata reduction by adjusting the total by the percentages of support services, program services expenses, and functional expenses.)
(6) This rule will be effective for fiscal years ending on or after December 31, 2009.
Fees paid by public
Unadjusted Amount
Pro Rata Reduction Fees Paid by Public ($5,000)
Support Service Expense
[Statutory Authority: RCW 9.46.070. WSR 09-19-080 (Order 661), § 230-07-020, filed 9/17/09, effective 10/18/09; WSR 07-10-032 (Order 609), § 230-07-020, filed 4/24/07, effective 1/1/08.]
PDF230-07-025
Additional requirements for "significant progress" for Groups IV and V.
In addition to meeting the significant progress requirements for Groups I, II, and III, Group IV and V charitable or nonprofit licensees must also prove they:
(1) Expended at least sixty percent of net gambling income earned in the licensee's most recently completed fiscal year on "functional expenses" to operate the organization's programs; and
(2) Used no more than thirty-five percent of total functional expenses to provide supporting services. If licensees used more than fifty percent of total program services expenses to provide program services through indirect methods (those which are external to the organization), such as grants, contributions, and/or scholarships, then supporting services expenses must not exceed twenty percent of functional expenses.
[Statutory Authority: RCW 9.46.070. WSR 07-10-032 (Order 609), § 230-07-025, filed 4/24/07, effective 1/1/08.]
PDF230-07-030
Defining "functional expenses."
"Functional expenses" means those expenses a charitable or nonprofit licensee incurs toward accomplishing its stated purpose(s). Functional expenses include both "program services" and "supporting services."
[Statutory Authority: RCW 9.46.070. WSR 07-10-032 (Order 609), § 230-07-030, filed 4/24/07, effective 1/1/08.]
PDF230-07-035
Defining "program service expenses."
(1) "Program service expenses" means those expenses relating to providing care, support, or assistance to individuals, or sponsoring or conducting activities that directly relate to the licensee's stated purpose(s).
(2) We consider "program service expenses" services the licensee provided:
(a) Directly through programs to the public or the licensee's members; or
(b) Indirectly through:
(i) Contributions to individuals or to other service-providing organizations; or
(ii) Funding scholarships; or
(iii) Sponsoring activities directly related to any organizational purposes.
(3) We consider soliciting new members or volunteers, or announcements and publications intended to educate the public about specific services or programs to be program service expenses.
(4) Expenses allocated to more than one service must be divided out according to their function. Licensees must document the methods of allocation and make them available for our review.
[Statutory Authority: RCW 9.46.070. WSR 07-10-032 (Order 609), § 230-07-035, filed 4/24/07, effective 1/1/08.]
PDF230-07-040
Defining "supporting service expenses."
(1) "Supporting service expenses" means those expenses relating to activities that are essential to the general operation of the licensee's programs, but which are not directly identifiable to a specific program. Supporting service expenses typically include:
(a) Management; and
(b) General overhead; and
(c) Any expenses related to soliciting contributions.
(2) We consider the following supporting service expenses:
(a) Wages and benefits for persons involved in the general operation of the organization, such as:
(i) Executive directors and other management; or
(ii) Support personnel like secretaries, receptionists, and bookkeepers; and
(b) Expenses related to:
(i) Providing an administrative office, including rent, depreciation, interest, utilities, taxes, insurance, and supplies; and
(ii) General management functions of the organization such as planning and budgeting, recruiting and training staff, and purchasing and distributing materials; and
(iii) Scheduling and conducting board, committee, and membership meetings; and
(iv) Publicizing the general organization; and
(v) Outside supporting services such as accounting, audit, and legal; and
(vi) Soliciting contributions or grants; and
(vii) Any net loss from nongambling fund-raising activities.
(3) Supporting service expenses do not include items which are unusual and infrequent in nature, for example, repairs from a fire.
[Statutory Authority: RCW 9.46.070. WSR 07-10-032 (Order 609), § 230-07-040, filed 4/24/07, effective 1/1/08.]
PDF230-07-045
Obtaining a waiver for significant progress requirements.
(1) If a charitable or nonprofit licensee is unable to demonstrate that it has made significant progress, the licensee may request, in writing, a waiver for all, or a portion, of the requirements.
(2) In the waiver request, the organization's board must:
(a) Acknowledge that it is aware of the circumstances; and
(b) Show it has taken steps to correct the situation which prevented compliance; and
(c) Show it has approved a plan that addresses delivery of program services in the future; and
(d) Show that the organization expended at least twenty-five percent of its net gambling income to provide program services in the period under review. We may consider the purchase of nondepreciable assets for program purposes as part of this percentage.
(3) When deciding to approve or deny a waiver, we consider whether the licensee:
(a) Had a temporary inability to comply due to unusual circumstances; and
(b) Is reserving funds to start or expand specific programs in the future; and
(c) Used a substantial amount of capital assets that are not subject to depreciation or amortization to provide program services, for example, fully depreciated building or equipment; fully amortized leasehold improvements; assets which are not normally depreciated, such as land used for athletic fields, riding areas, or parks; and
(d) Conducted a substantial portion of its services through volunteers.
(4) If we deny the waiver, the licensee may request a brief adjudicative hearing before an administrative law judge under the provisions of Title 230 WAC and chapter 34.05 RCW.
[Statutory Authority: RCW 9.46.070. WSR 07-10-032 (Order 609), § 230-07-045, filed 4/24/07, effective 1/1/08.]
PDF230-07-050
Defining "excessive reserves."
(1) "Excessive reserves" means the total amount of the licensee's cash, cash equivalents, and other assets that would not normally be associated with providing programs or fund-raising activities is greater than the sum of:
(a) The licensee's current liabilities, which means debts due within one year; plus
(b) Total functional expenses during the most recently completed fiscal year; plus
(c) The average net income or loss from combined gambling and retail sales conducted in conjunction with gambling activities for a three-month period. This average is calculated by dividing annual net gambling and retail sales income or loss by four.
(2) However, we may approve the exclusion of funds reserved to start or expand specific programs from the computation of excessive reserves.
[Statutory Authority: RCW 9.46.070. WSR 07-10-032 (Order 609), § 230-07-050, filed 4/24/07, effective 1/1/08.]
PDF230-07-051
Accumulating excessive reserves.
A charitable or nonprofit organization must not accumulate excessive reserves. Organizations accumulating excessive reserves may be deemed as organized primarily for purposes of gambling. Reserves must be computed by using the financial data most recently filed with us. We will not treat funds as excessive reserves if the following restrictions are met:
(1) A majority of the organization's membership approves the accumulation of excessive reserves; and
(2) The funds are expressly dedicated for funding new programs, capital projects, or to endow service-providing activities; and
(3) The funds are saved according to a plan that includes the amount to be reserved, the purpose for which the funds are being reserved, and the estimated time the reserves will be used; and
(4) The organization's officers or board of directors approves the plan; and
(5) The organization submits the plan to us for review and approval; and
(6) The total amount of excessive reserves may exceed four million dollars only if the organization petitions the director to exceed this limitation and the director approves the petition. The director may disapprove with written comments or approve a modified level based on facts presented. The director's decision may be appealed to the commission. Appeal of this decision will be heard at a regular public meeting of the commission. The commission's decision shall be final. Petitions for relief must include:
(a) The reason for the request, including whether the increased reserves are for charitable or nonprofit purposes and planned timelines for use; and
(b) The total amount of reserves requested; and
(c) The impact on programs if the petition is denied; and
(d) Alternative sources of funding available.
[Statutory Authority: RCW 9.46.070 (1), (10), (16) and 9.46.0209 (1)(b)(iii). WSR 15-23-065 (Order 716), § 230-07-051, filed 11/13/15, effective 12/14/15. Statutory Authority: RCW 9.46.070. WSR 08-03-062 (Order 623), § 230-07-051, filed 1/14/08, effective 2/14/08.]
PDF230-07-055
Prorating expenses when gambling funds are not kept separate.
When charitable or nonprofit organizations do not keep gambling income separate from all other income of the organization, the amount of net gambling income required to provide functional expenses in the fiscal year under review must be the pro rata portion of net gambling income compared to the total net revenue from all sources. (Example: In the chart below, Organization X has revenue of five thousand dollars. They must calculate the pro rata reduction by adjusting the total by the percentages of support services, program services, and functional expenses.)
[Statutory Authority: RCW 9.46.070. WSR 07-10-032 (Order 609), § 230-07-055, filed 4/24/07, effective 1/1/08.]
PDF230-07-060
Independent management structure required.
(1) Charitable or nonprofit organizations and their officers or board of directors have an affirmative responsibility to conduct gambling activities according to the legislative intent in chapter 9.46 RCW.
(2) Organizations must develop and maintain an independent management control system that ensures they:
(a) Create an operating environment that makes it possible to implement the policies of the officers or board of directors; and
(b) Supervise and operate gambling activities according to gambling laws and our rules; and
(c) Protect all assets of the organization from misuse or embezzlement; and
(d) Use gambling proceeds solely to advance the purposes of their organization.
[Statutory Authority: RCW 9.46.070. WSR 07-10-032 (Order 609), § 230-07-060, filed 4/24/07, effective 1/1/08.]
PDF230-07-065
Group III, IV, and V management control system.
Charitable or nonprofit licensees assigned to Groups III, IV, and V must develop and implement a management control system that:
(1) Is overseen by an independent group of officers or board of directors who have been elected by a process in which all full and regular members have a single vote; and
(2) Includes written policies which set the responsibilities of and establish the scope of authority delegated to officers, board of directors, and employees; and
(3) Includes affirmative management and accounting controls to ensure that all funds and other assets directly or indirectly obtained with gambling proceeds are protected from misuse, are dedicated solely to the purposes of the organization, and do not inure to the private use of any person. For purposes of this section, we do not consider the following uses of gambling proceeds inurement:
(a) Providing program services to members or the public; or
(b) Costs for necessary expenses, including salaries or wages for services to perform the purposes of the organization. Salaries or wages paid to members, officers, board of directors, or their direct relatives, are not inurement if they are necessary, reasonable, and an independent management system makes the decision to pay them; and
(4) Includes a planning process to set goals for uses of gambling proceeds and allows the officers or board of directors to monitor progress toward those goals. Organizations reserving funds in endowments or trust funds must have a formal business plan or budget outlining uses of those funds; and
(5) Includes a system of internal accounting controls designed to reduce errors, minimize the risk of embezzlement, and safeguard assets. The licensee's officers or board of directors must implement procedures to monitor established controls for compliance. The internal accounting control system must include at least:
(a) Management approval for expenditures; and
(b) Access to assets is restricted to those individuals management authorizes; and
(c) Recording procedures for all transactions in accordance with generally accepted accounting principles (GAAP). Licensees must record transactions with enough detail to maintain accountability for assets; and
(d) Periodic comparison of recorded assets to physical assets and reconciliation of all differences. "Reconcile" means the licensee must compare the two balances, resolve any differences, and document the comparison and the differences in writing. Licensees must keep the reconciliation as part of their records.
(6) Is documented and available for our review.
[Statutory Authority: RCW 9.46.070. WSR 07-10-032 (Order 609), § 230-07-065, filed 4/24/07, effective 1/1/08.]
PDF230-07-070
Defining "direct relatives."
"Direct relative" means spouses, parents, grandparents, uncles, aunts, children, siblings, nieces, or nephews, whether by blood, adoption, or marriage.
[Statutory Authority: RCW 9.46.070. WSR 07-10-032 (Order 609), § 230-07-070, filed 4/24/07, effective 1/1/08.]
PDF230-07-075
(1) Charitable or nonprofit organizations have an independent operating environment when their officers or board members and supervisory level employees have completely separated their personal interests from the interests of the organization.
(2) If individual officers or board members acknowledge potential conflicts of interest and abstain from voting on issues that directly or indirectly affect their personal interest, the organization is operating independently.
(3) The governing board of the organization must review any potential conflicts of interest involving supervisory level employees. They must record all discussions or balloting regarding potential conflicts of interest in the official meeting minutes.
(4) We will presume organizations lack an independent operating environment if the governing board fails to approve and document in the official meeting minutes any of the following by the officers, board members, or supervisory level employees:
(a) Receiving, directly or indirectly, financial or personal benefit from the organization or share in gambling proceeds of the organization; or
(b) Supervising, directly or indirectly, or having decision-making authority over transactions that may result in direct or indirect financial or personal benefit to:
(i) Their direct relatives; or
(ii) Persons with whom they maintain a common household; or
(iii) Persons with whom they have a business relationship; or
(c) Allowing others, directly or, through lack of action, indirectly, to receive or share in the gambling proceeds of the organization.
[Statutory Authority: RCW 9.46.070. WSR 07-10-032 (Order 609), § 230-07-075, filed 4/24/07, effective 1/1/08.]
PDF230-07-080
Qualification reviews for Groups III, IV and V.
(1) We may review charitable or nonprofit licensees assigned to Group III and may prepare a summary of the organization's qualifications for the commissioners' review.
(2) We will review licensees assigned to Group IV and V and prepare a summary of the organization's qualifications for the commissioners' review at a public meeting every three years. At least one representative from the organization must attend the meeting when staff presents their qualification review.
[Statutory Authority: RCW 9.46.070. WSR 07-10-032 (Order 609), § 230-07-080, filed 4/24/07, effective 1/1/08.]
PDF230-07-085
Compensating gambling management and operations personnel.
(1) Charitable or nonprofit licensees must not base compensation for any employee taking part in the management or operation of the gambling activities on a percentage of the receipts or income derived from the operation of the gambling activity.
(2) Licensees must pay employees taking part in the management or operation of gambling activity a wage that is reasonable under the prevailing local wage scale for comparable employment. Wages greater than the local prevailing wage create a presumption of a violation.
[Statutory Authority: RCW 9.46.070. WSR 07-10-032 (Order 609), § 230-07-085, filed 4/24/07, effective 1/1/08.]
PDF230-07-090
Keeping and depositing all gambling funds separate from other funds.
(ii) From raffles and amusement games with gross gambling receipts over fifty thousand dollars in their previous license year, at least once each week; and
(iii) Bingo, raffle, and amusement game licensees with gross gambling receipts of fifty thousand dollars or less in their previous license year; and
[Statutory Authority: RCW 9.46.070. WSR 18-05-029, § 230-07-090, filed 2/9/18, effective 7/1/18; WSR 07-10-032 (Order 609), § 230-07-090, filed 4/24/07, effective 1/1/08.]
PDF230-07-095
Fund-raising events and members only raffles exempt from deposit requirements.
Bona fide charitable or nonprofit organizations that conduct only fund-raising events or members only raffles and have no other gambling licenses are exempt from having a separate gambling receipts account, but they must:
(1) Make no expenditures, other than for prizes, until the receipts have been deposited;
(2) Deposit all net gambling receipts within two banking days; and
(3) Keep the validated deposit receipt with their gambling records.
[Statutory Authority: RCW 9.46.070. WSR 07-10-032 (Order 609), § 230-07-095, filed 4/24/07, effective 1/1/08.]
PDF230-07-100
Special banking exemption for Point Roberts Peninsula.
Charitable or nonprofit licensees that conduct activities on Point Roberts Peninsula, Washington, may deposit funds in British Columbia branches of Canadian banks. Licensees must provide us and their Canadian bank a written release for us to have unrestricted access to the licensee's Canadian bank records and the Canadian bank must provide written confirmation of its intent to honor the licensee's release.
[Statutory Authority: RCW 9.46.070. WSR 07-10-032 (Order 609), § 230-07-100, filed 4/24/07, effective 1/1/08.]
PDF230-07-105
Safeguarding prize inventory.
(1) Charitable or nonprofit organizations must safeguard and prevent misuse or misappropriation of all assets, including items purchased, or donated, to use as prizes for gambling activities.
(2) Licensees must maintain an inventory control record for each item purchased or donated to use as prizes for gambling activities in the format we require.
[Statutory Authority: RCW 9.46.070. WSR 07-10-032 (Order 609), § 230-07-105, filed 4/24/07, effective 1/1/08.]
PDF230-07-106
Insuring prizes.
(1) We prohibit basing contracts for prize insurance on a percentage of the gambling activity.
[Statutory Authority: RCW 9.46.070. WSR 07-21-116 (Order 617), § 230-07-106, filed 10/22/07, effective 1/1/08.]
PDF230-07-110
Charitable or nonprofit organizations must closely supervise all persons involved with the conduct of gambling activities to ensure that they follow all gambling laws and rules.
[Statutory Authority: RCW 9.46.070. WSR 07-10-032 (Order 609), § 230-07-110, filed 4/24/07, effective 1/1/08.]
PDF230-07-115
Duties of charitable or nonprofit gambling managers.
Charitable or nonprofit gambling managers must:
(1) Be knowledgeable of the laws and rules that relate to the operation of the gambling activities and the restrictions on the use of funds made from gambling activities for which they are responsible; and
(2) Supervise the gambling activity, including all secondary activities, such as retail sales, conducted along with gambling activities; and
(3) Ensure:
(a) The business premises are maintained in a safe condition and persons participating in the activity are reasonably protected from physical harm; and
(b) Fair and equal participation by players in gambling activities; and
(c) All records are completed and correct; and
(d) All funds are disbursed or invested according to the directions of the officers or governing board and are used solely to further the charitable or nonprofit purpose(s) of the organization; and
(4) Protect:
(a) The public from fraud; and
(b) The organization from players or workers committing illegal acts; and
(c) All gambling assets of the organization from misuse or theft; and
(5) Safeguard funds or other assets made from gambling and secondary activities for which he or she is responsible until directly deposited in the organization's bank account.
[Statutory Authority: RCW 9.46.070. WSR 07-10-032 (Order 609), § 230-07-115, filed 4/24/07, effective 1/1/08.]
PDF230-07-120
Notifying us of changes in responsibilities of charitable or nonprofit gambling managers.
(1) A charitable or nonprofit organization must notify us in writing when a gambling manager:
(a) Has been assigned primary responsibility for operating any gambling activity or disbursing funds; or
(b) Has terminated employment or responsibilities.
(2) Individuals required to be licensed under WAC 230-03-235 must immediately submit a license application.
(3) Licensees assigning gambling managers who do not require a license under WAC 230-03-145(4) must notify us in writing within ten days of changes in responsibilities by submitting:
(a) The full name and date of birth of the gambling manager; and
(b) The date the gambling manager was assigned new responsibilities or the date employment or responsibilities terminated; and
(c) A full description of the change in duties or responsibilities; and
(d) The highest ranking elected officer or the individual assigned the responsibility of supervising the gambling manager must sign the notification.
[Statutory Authority: RCW 9.46.070. WSR 07-10-032 (Order 609), § 230-07-120, filed 4/24/07, effective 1/1/08.]
PDF230-07-125
Recordkeeping requirements for lower volume charitable or nonprofit organizations.
(b) Bingo with gross gambling receipts of one hundred fifty thousand dollars or less in their previous license year;
(c) Raffles with gross gambling receipts of fifty thousand dollars or less in their previous license year;
(d) Amusement games with gross gambling receipts of fifty thousand dollars or less in their previous license year; and
(e) Nonhouse-banked card games.
[Statutory Authority: RCW 9.46.070. WSR 18-05-029, § 230-07-125, filed 2/9/18, effective 7/1/18. Statutory Authority: RCW 9.46.070, 9.46.0201. WSR 16-22-049, § 230-07-125, filed 10/28/16, effective 11/28/16. Statutory Authority: RCW 9.46.070. WSR 07-10-032 (Order 609), § 230-07-125, filed 4/24/07, effective 1/1/08.]
PDF230-07-130
Additional recordkeeping for charitable or nonprofit licensees.
(1) Charitable or nonprofit licensees, except agricultural fairs, must maintain records which clearly show how the licensee used or disbursed the funds from each licensed activity. These records must provide an audit trail satisfactory for us to verify that the funds were used for the licensees' stated purpose(s). These records must include, at least, canceled checks for the disbursements.
(2) Charitable or nonprofit licensees must keep these records for three years from the end of the license year for which the record was created.
[Statutory Authority: RCW 9.46.070. WSR 07-10-032 (Order 609), § 230-07-130, filed 4/24/07, effective 1/1/08.]
PDF230-07-135
Recording gifts.
Charitable or nonprofit licensees must keep a written record for each gift which they have given to customers with an actual cost over one hundred dollars. Authorized "gifts" are defined in WAC 230-06-035. The record must include:
(1) How they selected the recipients;
(2) The number of gifts; and
(3) The total cost of each gift.
[Statutory Authority: RCW 9.46.070. WSR 07-10-032 (Order 609), § 230-07-135, filed 4/24/07, effective 1/1/08.]
PDF230-07-140
Minimum accounting records for bingo licensees with gross gambling receipts over one hundred fifty thousand dollars in their previous license year and licensees with combined activities over five hundred thousand dollars in their previous license year.
Bingo licensees with gross gambling receipts over one hundred fifty thousand dollars in their previous license year and licensees with over five hundred thousand dollars in gross gambling receipts from combined gambling activities in their previous license year must keep accounting records necessary to document all receipts, costs, and disbursements, including, at least, those related to gambling activities.
[Statutory Authority: RCW 9.46.070. WSR 18-05-029, § 230-07-140, filed 2/9/18, effective 7/1/18; WSR 08-03-062 (Order 623), § 230-07-140, filed 1/14/08, effective 2/14/08; WSR 07-10-032 (Order 609), § 230-07-140, filed 4/24/07, effective 1/1/08.]
PDF230-07-145
Reporting annual progress.
Charitable or nonprofit licensees in Groups III, IV, and V must report annually their progress toward meeting their stated purpose in the format we prescribe.
(1) The report must explain the type and scope of activities which licensees conducted during their last annual fiscal accounting period; and
(2) The report must include, at least:
(a) A brief history of the licensed organization, including its stated charitable or nonprofit purpose(s); and
(b) A written statement setting out their goals for meeting their stated charitable or nonprofit purpose(s) in the future; and
(c) The number of full and regular members; and
(d) A list of contributions, scholarships, grants, or sponsorships made during the period. This list must include:
(i) The name of each organization or individual receiving a contribution from the licensee. The licensee may use the phrase "individual contribution" in place of the recipient. If the recipient is not named in the report, the licensee must maintain records to verify and identify the recipient of each individual contribution; and
(ii) Whether funds awarded were from gambling income or other funds;
(e) Gross income from all nongambling activities and the source of the income; and
(f) The revenue and expenses for any nongambling sales activities, presented separately, when conducted primarily in conjunction with gambling activities; and
(g) Total expenses for both charitable or nonprofit services; and
(h) The percentage or extent to which the licensee used net gambling income for charitable as distinguished from nonprofit purposes; and
(i) The details of any loans, contracts, or other business transactions with related parties that accumulatively exceed one thousand dollars during the period. "Related parties" means officers, board members, key employees, or members of the licensed organization, including direct relatives of each; and
(3) The report must be submitted no later than one hundred twenty days following the end of the organization's fiscal year.
(4) We may grant an organization additional time to submit the report if a written request is received before the due date. The president of the organization must sign any request for additional time and include a statement explaining the hardship causing the delay, and the expected date the required report(s) will be submitted.
[Statutory Authority: RCW 9.46.070. WSR 10-09-021 (Order 666), § 230-07-145, filed 4/13/10, effective 7/1/10; WSR 07-10-032 (Order 609), § 230-07-145, filed 4/24/07, effective 1/1/08.]
PDF230-07-150
PDF230-07-155
[Statutory Authority: RCW 9.46.070. WSR 18-08-056, § 230-07-155, filed 3/30/18, effective 7/1/18. Statutory Authority: RCW 9.46.070 and 9.46.0209. WSR 13-19-056 (Order 692), § 230-07-155, filed 9/16/13, effective 10/17/13. Statutory Authority: RCW 9.46.070. WSR 07-10-032 (Order 609), § 230-07-155, filed 4/24/07, effective 1/1/08.]
PDF230-07-160
[Statutory Authority: RCW 9.46.070. WSR 18-08-056, § 230-07-160, filed 3/30/18, effective 7/1/18; WSR 07-10-032 (Order 609), § 230-07-160, filed 4/24/07, effective 1/1/08.]