Subject of Possible Rule Making: Chapter 260-49 WAC, Advance deposit wagering, to amend the appropriate sections regarding the distribution of the source market fee.

     Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 67.16.020.

     Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: The commission is considering amending the applicable sections in chapter 260-49 WAC to allow the 90% of the total source market fee, paid to the class 1 racing association, to be paid per the agreement between the class 1 racing association and the advance deposit wagering service provider. The commission will continue to require the 10% paid to the commission to be paid on a monthly basis.

     Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: None.

     Process for Developing New Rule:      Agency study.

     Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting Robert J. Lopez, Administrative Services Manager, Washington Horse Racing Commission, 6326 Martin Way, Suite 209, Olympia, WA 98516-5578, phone (360) 459-6462, fax (360) 459-6461, rlopez@whrc.state.wa.us.

May 18, 2005

R. M. Leichner

Executive Secretary