WSR 97-09-074

PROPOSED RULES

GAMBLING COMMISSION

[Filed April 22, 1997, 11:10 a.m.]

Original Notice.

Preproposal statement of inquiry was filed as WSR 96-11-125 or 96-15-020.

Title of Rule: Exclusivity agreements, WAC 230-12-230. WSR 96-15-020 (CR-101).

Purpose: This rule allows a limited exception to the prohibition on exclusivity agreements.

Statutory Authority for Adoption: RCW 9.46.070 (1), (2), (4), 9.46.310.

Statute Being Implemented: See above.

Summary: Amendatory section WAC 230-12-230 Agreements restricting freedom to buy and sell--Prohibited--Limited exception. Purpose: This amendment allows a limited exception to the prohibition on exclusivity agreements. The director may authorize exclusive agreements for the sale of new technology, such as progressive pull tab systems, if the manufacturer has a patent or other exclusive right. This rule is necessary in order to implement the current progressive pull tab system that became effective in January 1997.

Reasons Supporting Proposal: This rule is necessary in order to implement the current progressive pull tab system that became effective in January 1997.

Name of Agency Personnel Responsible for Drafting: Soojin Kim Lacey, (360) 438-7654, ext. 310; Implementation: Frank Miller, Lacey, (360) 438-7654, ext. 302; and Enforcement: Ben Bishop, Lacey, (360) 438-7654, ext. 370.

Name of Proponent: Staff, in conjunction with representatives from charitable and nonprofit organizations, private.

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

Explanation of Rule, its Purpose, and Anticipated Effects: This rule is an amendment to the rule prohibiting exclusivity agreements. The purpose of this rule is to allow the director of the Washington State Gambling Commission to authorize exclusive agreements for the sale of new technology, such as progressive pull tab systems, if the manufacturer has a patent or exclusive right. This rule will affect manufacturers, distributors, and punchboard pull tab licensees. The potential agency impact is minimal.

Proposal Changes the Following Existing Rules: See Purpose, Summary, and Reasons Supporting Proposal.

No small business economic impact statement has been prepared under chapter 19.85 RCW. Proposal is exempt under RCW 19.85.025(2); therefore, a small business economic impact statement is not required.

Section 201, chapter 403, Laws of 1995, does not apply to this rule adoption. This agency does not choose to make section 201, chapter 403, Laws of 1995, apply to this rule adoption.

Hearing Location: Red Lion City Center, 322 North Spokane Falls Court, Spokane, WA 99201, on June 13, 1997, at 10:00 a.m.

Assistance for Persons with Disabilities: Contact Susan Green by June 1, 1997, TDD (360) 438-7638, or (360) 438-7654, ext. 302.

Submit Written Comments to: Soojin Kim, Mailstop 42400, Olympia, WA 98504-2400, FAX (360) 438-8652, by May 30, 1997.

Date of Intended Adoption: June 13, 1997.

April 21, 1997

Soojin Kim

Rules and Policy Coordinator

AMENDATORY SECTION (Amending Order 15, filed 4/17/74)

WAC 230-12-230 Agreements restricting freedom to buy and sell--Prohibited--Limited exception. No person shall enter into any agreement, expressly or implied, with any other person which requires any person to purchase exclusively from, or sell exclusively to, any other person, or which prohibits any person from purchasing from or selling to any other person, any devices, materials, products, equipment, or services which are used or offered in any way in connection with a gambling activity. No person shall enter into any agreement, express or implied, wherein any person is prohibited from, or required to, make purchases or sales only within a particular geographic area: Provided, That such agreements may be entered into between a licensee and its licensed representative. Provided Further, That upon approval of the director, a manufacturer may require exclusive purchase agreements for gambling products related to new technologies, including but not limited to pull tab dispensing devices that are designed to use specifically developed pull tab series if such technologies were developed by the manufacturer and the manufacturer has a patent or other exclusive right to protect its distribution.

[Order 15, 230-12-230, filed 4/17/74.]

Reviser's note: RCW 34.05.395 requires the use of underlining and deletion marks to indicate amendments to existing rules. The rule published above varies from its predecessor in certain respects not indicated by the use of these markings.

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