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Second Substitute House Bill 1681 — Problem Gambling (Washington, 2023 Regular Session)

Summary

Second Substitute House Bill 1681 of the State of Washington's 68th Legislature, 2023 Regular Session, by House Finance. Its title states that it relates to problem gambling, amends RCW 41.05.750, 67.70.340, 82.04.285, 82.04.286 and 9.46.071, creates a new section, provides an effective date and declares an emergency. Section 1 recites that a 2021 prevalence study found 1.5 percent of all adults at a moderate-to-severe risk for developing a gambling disorder, and 3.5 percent of adults who gamble, and states the legislature's intent to provide long-term, dedicated funding for prevention, public awareness, education, clinical training, workforce development and treatment services. Section 8 states that the act takes effect July 1, 2023. The bill was read first time February 24, 2023.

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“Second Substitute House Bill 1681 — Problem Gambling (Washington, 2023 Regular Session).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2023-03-28-a31191-bill-1681-s2-490e89cf35/, SHA-256 d24f932f404b3eece8fe364809e44f88a0b7532a7b26424a1f8b38b395458735.

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     H-1468.1

                       SECOND SUBSTITUTE HOUSE BILL 1681


     State of Washington         68th Legislature     2023 Regular Session

     By House Finance (originally sponsored by Representatives Stearns,
     Lekanoff, Davis, Leavitt, Reeves, Pollet, and Orwall)

     READ FIRST TIME 02/24/23.




1        AN ACT Relating to problem gambling; amending RCW 41.05.750,
2    67.70.340, 82.04.285, 82.04.286, and 9.46.071; creating a new
3    section; providing an effective date; and declaring an emergency.


 4   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:


 5       NEW SECTION. Sec. 1. (1) The legislature finds that:
 6       (a) The costs to society of problem gambling and gambling
 7   disorder include family disintegration, criminal activity, and
 8   financial insolvencies;
 9       (b) Individuals experiencing problem gambling and gambling
10   disorder are at significantly increased risks for other co-occurring
11   disorders, including substance use disorder and mental health issues
12   such as depression, anxiety, or other behavioral health concerns;
13       (c) Residents of Washington may participate in a variety of legal
14   gaming activities such as the state-run lottery, tribal gaming by
15   federally recognized Indian tribes, certain fund-raisers offered by
16   bona fide charitable and nonprofit organizations, and punchboards,
17   pull-tabs, and social card games approved as a commercial stimulant
18   at established businesses primarily engaged in the selling of food or
19   drink for consumption on the premises;
20       (d) A 2021 prevalence study found that among all adults, 1.5
21   percent are at a moderate-to-severe risk for developing a gambling
                                       p. 1                         2SHB 1681
 1   disorder, and among adults who gamble, 3.5 percent are at a moderate-
 2   to-severe risk of a gambling disorder;
 3       (e) The 2022 problem gambling task force final report, delivered
 4   to the legislature in December 2022, determined there are critical
 5   gaps in providing state-funded comprehensive problem gambling
 6   services to Washington residents, including:
 7       (i) Prevention efforts not coordinated with other behavioral
 8   health and substance abuse prevention initiatives;
 9       (ii) Problem gambling treatment coverage is not available across
10   the state; and
11       (iii) No state-supported residential treatment services are
12   available in Washington state.
13       (2) The legislature intends to provide long-term, dedicated
14   funding for prevention, public awareness efforts, and education
15   regarding problem gambling disorder, clinical training, workforce
16   development, and accessible treatment services for individuals
17   impacted by problem gambling or gambling disorders as well as after-
18   care support.


19       Sec. 2. RCW 41.05.750 and 2018 c 201 s 2004 are each amended to
20   read as follows:
21       (1) A program for (a) the prevention and treatment of problem
22   ((and pathological)) gambling and gambling disorder; and (b) the
23   support, certification, and training of professionals in the
24   identification and treatment of problem ((and pathological)) gambling
25   and gambling disorder is established within the authority((, to be
26   administered by a qualified person who has training and experience in
27   problem gambling or the organization and administration of treatment
28   services   for   persons suffering   from  problem   gambling)).  The
29   department of health may license or certify ((and the)) behavioral
30   health agencies for problem gambling treatment. The authority may
31   contract ((with treatment facilities)) for any services provided
32   under the program. The authority shall ((track)) conduct a program
33   evaluation, including tracking program participation and ((client))
34   evaluating outcomes.
35       (2) To receive treatment under subsection (1) of this section, a
36   person must:
37       (a) Need treatment for problem ((or pathological)) gambling or
38   gambling disorder, or ((because of the problem or pathological
39   gambling of a family member, but be unable to afford treatment)) be
                                     p. 2                        2SHB 1681
 1   impacted by a loved one experiencing problem gambling or gambling
 2   disorder; and
 3       (b) Be ((targeted)) identified by the authority as being most
 4   amenable to and likely to benefit from treatment.
 5       (3) Treatment under this section is available only to the extent
 6   of the funds appropriated or otherwise made available to the
 7   authority for this purpose. The authority may solicit and accept for
 8   use any gift of money or property made by will or otherwise, and any
 9   grant of money, services, or property from the federal government,
10   any tribal government, the state, or any political subdivision
11   thereof or any private source, and do all things necessary to
12   cooperate with the federal government or any of its agencies or any
13   tribal government in making an application for any grant.
14       (4)(a) The authority shall establish and facilitate an ongoing
15   advisory committee ((to assist it in designing, managing, and
16   evaluating the effectiveness of the program established in this
17   section. The advisory committee shall give due consideration in the
18   design and management of the program that persons who hold licenses
19   or contracts issued by the gambling commission, horse racing
20   commission, and lottery commission are not excluded from, or
21   discouraged from, applying to participate in the program. The
22   committee shall include, at a minimum, persons knowledgeable in the
23   field of problem and pathological gambling and persons representing
24   tribal gambling, privately owned nontribal gambling, and the state
25   lottery.
26       (5) For purposes of this section, "pathological gambling" is a
27   mental disorder characterized by loss of control over gambling,
28   progression in preoccupation with gambling and in obtaining money to
29   gamble, and continuation of gambling despite adverse consequences.
30   "Problem gambling" is an earlier stage of pathological gambling which
31   compromises, disrupts, or damages family or personal relationships or
32   vocational pursuits)) that will hold quarterly meetings to:
33       (i) Track progress of recommendations from the 2022 legislative
34   problem gambling task force final report;
35       (ii) Provide advice and feedback on the state problem gambling
36   program upon request by the authority; and
37       (iii) Discuss emerging issues related to problem gambling and
38   identify possible strategies for improvement.
39       (b) The advisory committee membership must include, at a minimum,
40   at least one representative from each of the following:
                                     p. 3                        2SHB 1681
 1       (i) The Washington state gambling commission;
 2       (ii) The Washington state lottery commission;
 3       (iii) The Washington state horse racing commission;
 4       (iv) The Washington state health care authority;
 5       (v) The tribal gaming industry;
 6       (vi) An established business that is primarily engaged in the
 7   selling of food or drink for consumption on the premises and that
 8   offers punchboards, pull-tabs, and social card games as a commercial
 9   stimulant;
10       (vii) The gambling counselor certification committee;
11       (viii) A nonprofit problem gambling organization; and
12       (ix) The recovery community including at least one member with
13   lived experience of problem gambling.


14       Sec. 3.    RCW 67.70.340 and 2012 1st sp.s. c 10 s 6 are each
15   amended to read as follows:
16        (1) The legislature recognizes that creating a shared game
17   lottery could result in less revenue being raised by the existing
18   state lottery ticket sales. The legislature further recognizes that
19   the fund most impacted by this potential event is the Washington
20   opportunity pathways account. Therefore, it is the intent of the
21   legislature to use some of the proceeds from the shared game lottery
22   to make up the difference that the potential state lottery revenue
23   loss would have on the Washington opportunity pathways account. The
24   legislature further intends to use some of the proceeds from the
25   shared game lottery to fund programs and services related to problem
26   ((and pathological)) gambling and gambling disorder.
27        (2) The Washington opportunity pathways account is expected to
28   receive ((one hundred two million dollars)) $102,000,000 annually
29   from state lottery games other than the shared game lottery. For
30   fiscal year 2011 and thereafter, if the amount of lottery revenues
31   earmarked for the Washington opportunity pathways account is less
32   than    ((one  hundred  two   million  dollars))   $102,000,000, the
33   commission, after making the transfer required under subsection (3)
34   of this section, must transfer sufficient moneys from revenues
35   derived from the shared game lottery into the Washington opportunity
36   pathways account to bring the total revenue up to ((one hundred two
37   million dollars)) $102,000,000.
38        (3)(a) The commission shall transfer, from revenue derived from
39   the shared game lottery, to the problem gambling account created in
                                     p. 4                       2SHB 1681
 1   RCW ((43.20A.892)) 41.05.751, an amount equal to the percentage
 2   specified in (b) of this subsection of net receipts. For purposes of
 3   this subsection, "net receipts" means the difference between (i)
 4   revenue received from the sale of lottery tickets or shares and
 5   revenue received from the sale of shared game lottery tickets or
 6   shares; and (ii) the sum of payments made to winners.
 7       (b) In fiscal year ((2006)) 2024, the percentage to be
 8   transferred to the problem gambling account is ((one-tenth of one))
 9   0.20 percent. In fiscal year ((2007)) 2025 and subsequent fiscal
10   years, the percentage to be transferred to the problem gambling
11   account is ((thirteen one-hundredths of one)) 0.26 percent.
12       (4) The commission shall transfer the remaining net revenues, if
13   any, derived from the shared game lottery "Powerball" authorized in
14   RCW 67.70.044(1) after the transfers pursuant to this section into
15   the state general fund for support for the program of basic education
16   under RCW 28A.150.200.
17       (5) The remaining net revenues, if any, in the shared game
18   lottery account after the transfers pursuant to this section shall be
19   deposited into the Washington opportunity pathways account.


20       Sec. 4.   RCW 82.04.285 and 2014 c 97 s 303 are each amended to
21   read as follows:
22       (1) Upon every person engaging within this state in the business
23   of operating contests of chance; as to such persons, the amount of
24   tax with respect to the business of operating contests of chance is
25   equal to the gross income of the business derived from contests of
26   chance multiplied by the rate of 1.5 percent.
27       (2) An additional tax is imposed on those persons subject to tax
28   in subsection (1) of this section. The amount of the additional tax
29   with respect to the business of operating contests of chance is equal
30   to the gross income of the business derived from contests of chance
31   multiplied by the rate of ((0.1)) 0.2 percent through June 30,
32   ((2006)) 2024, and ((0.13)) 0.26 percent thereafter. The money
33   collected under this subsection (2) shall be deposited in the problem
34   gambling account created in RCW ((43.20A.892)) 41.05.751. This
35   subsection does not apply to businesses operating contests of chance
36   when the gross income from the operation of contests of chance is
37   less than ((fifty thousand dollars)) $50,000 per year.
38       (3)(a) For the purpose of this section, "contests of chance"
39   means any contests, games, gaming schemes, or gaming devices, other
                                     p. 5                        2SHB 1681
 1   than the state lottery as defined in RCW 67.70.010, in which the
 2   outcome depends in a material degree upon an element of chance,
 3   notwithstanding that skill of the contestants may also be a factor in
 4   the outcome. The term includes social card games, bingo, raffle, and
 5   punchboard games, and pull-tabs as defined in chapter 9.46 RCW.
 6       (b) The term does not include: (i) Race meet for the conduct of
 7   which a license must be secured from the Washington horse racing
 8   commission, (ii) "amusement game" as defined in RCW 9.46.0201, or
 9   (iii) any activity that is not subject to regulation by the gambling
10   commission.
11       (4) "Gross income of the business" does not include the monetary
12   value or actual cost of any prizes that are awarded, amounts paid to
13   players for winning wagers, accrual of prizes for progressive jackpot
14   contests, or repayment of amounts used to seed guaranteed progressive
15   jackpot prizes.


16       Sec. 5.   RCW 82.04.286 and 2005 c 369 s 6 are each amended to
17   read as follows:
18       (1) Upon every person engaging within this state in the business
19   of conducting race meets for the conduct of which a license must be
20   secured from the Washington horse racing commission; as to such
21   persons, the amount of tax with respect to the business of parimutuel
22   wagering is equal to the gross income of the business derived from
23   parimutuel wagering multiplied by the rate of ((0.1)) 0.2 percent
24   through June 30, ((2006)) 2024, and ((0.13)) 0.26 percent thereafter.
25   The money collected under this section shall be deposited in the
26   problem gambling account created in RCW ((43.20A.892)) 41.05.751.
27       (2) For purposes of this section, "gross income of the business"
28   does not include amounts paid to players for winning wagers, or taxes
29   imposed or other distributions required under chapter 67.16 RCW.
30       (3) The tax imposed under this section is in addition to any tax
31   imposed under chapter 67.16 RCW.


32       Sec. 6. RCW 9.46.071 and 2019 c 213 s 1 are each amended to read
33   as follows:
34       (1)(((a))) The legislature recognizes that some individuals in
35   this state ((have a gambling problem or)) are negatively impacted by
36   problem gambling and gambling disorder. Because the state promotes
37   and regulates gambling through the activities of the state lottery
38   commission,   the  Washington  horse  racing  commission,   and  the
                                     p. 6                        2SHB 1681
 1   Washington   state   gambling   commission,   the    state  has  the
 2   responsibility to continue to provide resources for the support of
 3   ((services for)) problem gambling ((and gambling disorders.
 4       (b) The)) services. Therefore, the Washington state gambling
 5   commission, the Washington horse racing commission, and the state
 6   lottery commission shall ((jointly develop)) maintain placement of
 7   problem gambling and gambling disorder informational signs which
 8   include a toll-free ((hotline)) helpline number for ((individuals
 9   with a gambling problem or)) problem gambling and gambling disorder.
10   The signs shall be placed in the establishments of gambling
11   licensees, horse racing licensees, and lottery retailers.
12       (((c))) The Washington state gambling commission, the Washington
13   horse racing commission, and the state lottery commission may also
14   contract with other qualified entities to provide public awareness,
15   training, and other services to ensure the intent of this section is
16   fulfilled.
17       (((d))) (2) Individuals and families impacted by ((a gambling))
18   problem gambling or gambling disorder will benefit from the
19   availability of a uniform self-exclusion program where people may
20   voluntarily exclude themselves from gambling at multiple gambling
21   establishments by submitting one self-exclusion form to the state
22   from one location for all gambling activities. Therefore, the
23   Washington state gambling commission must establish a statewide self-
24   exclusion program for all licensees. The commission has discretion in
25   establishing the scope, process, and requirements of the self-
26   exclusion program, including denying, suspending, or revoking an
27   application, license, or permit. However, the initial program must
28   comply with the following minimum requirements:
29       (((i))) (a) The program must allow persons to voluntarily exclude
30   themselves from gambling at authorized gambling establishments that
31   offer house-banked social card games;
32       (((ii))) (b) The program must have a process for federally
33   recognized Indian tribes or tribal enterprises that own gambling
34   operations or facilities with class III gaming compacts to
35   voluntarily participate in the self-exclusion program;
36       (((iii))) (c)(i) Any individual registered with the self-
37   exclusion program created under this section is prohibited from
38   participating in gambling activities associated with this program and
39   forfeits all moneys and things of value obtained by the individual or
40   owed to the individual by an authorized gambling establishment as a
                                     p. 7                        2SHB 1681
 1   result of prohibited wagers or gambling activities. The commission
 2   may adopt rules for the forfeiture of any moneys or things of value,
 3   including wagers, obtained by an authorized gambling establishment
 4   while an individual is registered with the self-exclusion program
 5   created under this section.
 6       (ii) Moneys and things of value forfeited under the self-
 7   exclusion program must be distributed to the problem gambling account
 8   created   in  RCW   41.05.751  and/or    a charitable   or  nonprofit
 9   organization that provides problem gambling services or increases
10   awareness about problem gambling pursuant to rules adopted by the
11   commission; and
12       (((iv))) (d) The commission must adopt rules establishing the
13   self-exclusion program by June 30, 2021.
14       (((e))) (3) An individual who participates in the self-exclusion
15   program does not have a cause of action against the state of
16   Washington, the commission, or any gambling establishment, its
17   employees, or officers for any acts or omissions in processing or
18   enforcing the requirements of the self-exclusion program, including a
19   failure to prevent an individual from gambling at an authorized
20   gambling establishment.
21       (((f))) (4) Any personal information collected, stored, or
22   accessed under the self-exclusion program may only be used for the
23   administration of the self-exclusion program and may not be
24   disseminated for any purpose other than the administration of the
25   self-exclusion program.
26       (((2))) (5)(a) During any period in which RCW 82.04.285(2) is in
27   effect, the commission may not increase fees payable by licensees
28   under its jurisdiction for the purpose of funding services for
29   problem gambling and gambling disorder. Any fee imposed or increased
30   by the commission, for the purpose of funding these services, before
31   July 1, 2005, has no force and effect after July 1, 2005.
32       (b) During any period in which RCW 82.04.285(2) is not in effect:
33       (i) The commission, the Washington state horse racing commission,
34   and the state lottery commission may contract for services, in
35   addition to those authorized in subsection (1) of this section, to
36   assist in providing for problem gambling and gambling disorder
37   treatment; and
38       (ii) The commission may increase fees payable by licensees under
39   its jurisdiction for the purpose of funding the problem gambling and
40   gambling disorder services authorized in this section.
                                     p. 8                        2SHB 1681
1       NEW SECTION.    Sec. 7.    If any provision of this act or its
2   application to any person or circumstance is held invalid, the
3   remainder of the act or the application of the provision to other
4   persons or circumstances is not affected.


5       NEW SECTION.   Sec. 8.  This act is necessary for the immediate
6   preservation of the public peace, health, or safety, or support of
7   the state government and its existing public institutions, and takes
8   effect July 1, 2023.

                                --- END ---




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