WSR 06-10-012

PROPOSED RULES

GAMBLING COMMISSION


[ Filed April 21, 2006, 2:09 p.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 06-03-055.

Title of Rule and Other Identifying Information: Repealed sections WAC 230-12-340 Sale of gambling equipment, devices, supplies, paraphernalia, and related services -- Authorized transactions and 230-12-350 Use of checks and credit cards to purchase gambling equipment, products, and services -- Restrictions.

Hearing Location(s): Hilton Hotel, 301 West 6th Street, Vancouver, WA 98660, (360) 993-4500, on July 14, 2006, at 9:30 a.m.

Date of Intended Adoption: July 14, 2006.

Submit Written Comments to: Susan Arland, Rules Coordinator, P.O. Box 42400, Olympia, WA 98504, e-mail Susana@wsgc.wa.gov, fax (360) 486-3625, by July 1, 2006.

Assistance for Persons with Disabilities: Contact Shirley Corbett by July 1, 2006, TTY (360) 486-3637 or (360) 486-3447.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: Currently, manufacturers and distributors must not offer credit to operators in the sale of gambling equipment, devices, related supplies or paraphernalia, and services. Manufacturers must conduct all sales to operators on a cash basis. Cash basis means full payment is received by the seller on or before actual delivery of the product or service to the operator. WAC 230-12-340 was amended effective October 10, 2005, to allow credit at the manufacturer and distributor level. Prior to then, the use of credit was prohibited in the sale of gambling equipment, devices, related supplies or paraphernalia, and services. As such, the agency is no longer involved in monitoring debt for manufacturers. At the September 2005, meeting, the commission asked staff to look into removing credit restrictions between operators and distributor/manufacturers.

The proposed rule change would remove restrictions on manufacturers and distributors which currently prohibit them from selling gambling equipment and services to operators on credit. It will apply the same rules relating to the purchase of equipment on credit now in place between manufacturers and distributors to operators. This proposed repealer will remove restrictions on operators' use of checks and credit cards to purchase gambling equipment, products, and services. It will apply the same rules relating to the purchase of equipment using checks and credit cards now in place between manufacturers and distributors to operators.

Statutory Authority for Adoption: RCW 9.46.070.

Statute Being Implemented: Not applicable.

Rule is not necessitated by federal law, federal or state court decision.

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: Neal Nunamaker, Deputy Director, Lacey, (360) 486-3452.

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 does not impose more than minor, if any, costs to businesses and no disproportionate impact to small businesses has been identified.

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.

April 20, 2006

Susan Arland

Rules Coordinator

OTS-8794.1


REPEALER

     The following sections of the Washington Administrative Code are repealed:
WAC 230-12-340 Sale of gambling equipment, devices, supplies, paraphernalia, and related services -- Authorized transactions.
WAC 230-12-350 Use of checks and credit cards to purchase gambling equipment, products, and services -- Restrictions.

Washington State Code Reviser's Office