S-5274               _______________________________________________

                                   SENATE CONCURRENT RESOLUTION NO. 8436

                        _______________________________________________

State of Washington                              50th Legislature                              1988 Regular Session

By Senators Metcalf, Warnke and Lee

Read first time 3/1/88 and referred to Committee on Economic Development & Labor.

WHEREAS, The Washington State Legislature authorized and created the Washington State Lottery Commission in 1982; and

          WHEREAS, The Washington State Lottery Commission has expanded its initial authorization to include the placement of computerized on-line lottery equipment; and

          WHEREAS, The Lottery was not designed or intended to unduly disrupt the competitive dynamics of the industries through which the lottery tickets are sold; and

          WHEREAS, Legislative intent included the distribution of lottery vendors throughout the industries on a random basis, involving both big and small business owners; and

          WHEREAS, Business owners pay the costs for installation and maintenance of the machines; and

          WHEREAS, Legislative intent took into account the reality that small business lottery vendors could not generate sales based on quotas at the same rate as large business vendors; and

          WHEREAS, Small business lottery vendors are currently experiencing quotas for sales as imposed by the Washington State Lottery Commission; and

          WHEREAS, These quotas are causing hardship for small business owners who are acting as lottery vendors for the State of Washington; and

          WHEREAS, The imposition of these quotas was done without consideration by the Washington State Legislature; and

          WHEREAS, The removal of these machines will cause warped competitive dynamics amongst the industries across this state; and

          WHEREAS, The Lottery Commission's procedures and processes need review and scrutiny;

          NOW, THEREFORE, BE IT RESOLVED, By the Senate of the state of Washington, the House of Representatives concurring, That the Legislature take the responsibility to carefully review and take testimony regarding the practices and processes currently being used by the Washington State Lottery Commission; and

          BE IT FURTHER RESOLVED, That the Washington State Lottery Commission take no action to implement any "quota system" until standing committees of the legislature review this problem and make recommendations to the Commission.