Original Notice.

     Preproposal statement of inquiry was filed as WSR 09-15-154.

     Title of Rule and Other Identifying Information: Amending WAC 230-03-300 Applying for a manufacturer's representative license, 230-03-330 Representing only one employer at a time, and 230-16-001 Manufacturers, distributors, and gambling service suppliers must comply with all requirements.

     Hearing Location(s): Lacey Community Center, 6729 Pacific Avenue S.E., Lacey, WA 98503, (360) 491-0857, on November 20, 2009, at 9:00 a.m.

     Date of Intended Adoption: November 20, 2009.

     Submit Written Comments to: Michelle M. Pardee, P.O. Box 42400, Olympia, WA 98504-2400, e-mail MichelleP@wsgc.wa.gov, fax (360) 486-3625, by November 1, 2009.

     Assistance for Persons with Disabilities: Contact Gail Grate, executive assistant, by November 1, 2009, TTY (360) 486-3637 or (360) 486-3453.

     Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: We received a petition for rule change from Gemaco, a manufacturer of gambling equipment, requesting that the restriction prohibiting manufacturer representatives from representing more than one manufacturer be eliminated. In addition, the petitioner requested that distributor representatives also be allowed to represent more than one distributor. Staff proposed the following alternative to the petitioner's request: These three amendments would restore a manufacturer representative's ability to represent more than one manufacturer:

•	Clarify that when a person "represents" a manufacturer to sell, promote, or provide the manufacturer's gambling equipment, or supplies, or supervises someone that does, they must have a manufacturer representative license.
•	Allow a licensed manufacturer representative to represent more than one manufacturer at a time. Currently, this rule says a representative must represent only one manufacturer at a time.
•	Clarify that manufacturers, distributors, and gambling service suppliers are responsible for ensuring their representatives have a gambling license.

     Before the August commission meeting, Gemaco withdrew their petition with the understanding that staff would move forward with restoring a manufacturer representative's ability to represent more than one manufacturer; and research the possibility of removing the restriction that allows distributor representatives to represent only one distributor. Staff will be contacting stakeholders and researching the history of the restriction. Staff will maintain contact with petitioner on this issue.

     Reasons Supporting Proposal: See above.

     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: Mark Harris, Assistant Director, Lacey, (360) 486-3579.

     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 because the change would not impose additional costs on businesses.

     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.

September 11, 2009

Susan Arland

Rules Coordinator

OTS-2607.1

AMENDATORY SECTION(Amending Order 457, filed 3/22/06, effective 1/1/08)

WAC 230-03-300   Applying for a manufacturer's representative license.   You must apply for a manufacturer's representative license if you ((are employed by a licensed manufacturer to)) sell, promote, or provide ((that)) a manufacturer's gambling equipment, or supplies, or you supervise those who do.

[Statutory Authority: RCW 9.46.070. 06-07-157 (Order 457), § 230-03-300, filed 3/22/06, effective 1/1/08.]

OTS-2609.2

AMENDATORY SECTION(Amending Order 457, filed 3/22/06, effective 1/1/08)

WAC 230-03-330   Representing ((only)) one ((employer at a time)) or more licensed businesses.   (1) If you are a licensed distributor representative, gambling service supplier representative, or a linked bingo prize provider representative or applying for ((a)) one of these representative licenses, you must represent only one licensed ((manufacturer,)) distributor, gambling service supplier, or linked bingo prize provider at a time.

     (2) If you are a licensed manufacturer representative, you may represent more than one licensed manufacturer.

     (3) If the owner you ((work for)) represent owns more than one licensed business, you may represent the owner in all those licensed businesses, including licensed manufacturers, without applying for another representative license.

[Statutory Authority: RCW 9.46.070. 06-07-157 (Order 457), § 230-03-330, filed 3/22/06, effective 1/1/08.]

OTS-2610.2

AMENDATORY SECTION(Amending Order 615, filed 9/17/07, effective 1/1/08)

WAC 230-16-001   Manufacturers, distributors, and gambling service suppliers must ((comply with all requirements)) ensure representatives are licensed.   ((Manufacturers, distributors, and gambling service suppliers and their licensed representatives must ensure that their business operations, services, and the gambling equipment they manufacture, distribute, or sell comply with chapter 9.46 RCW and TITLE 230 WAC.)) (1) A licensed manufacturer, distributor, or gambling service supplier must not allow an unlicensed person to sell, promote, or provide its gambling equipment, or supplies, or to supervise those who do, and must take all measures necessary to prevent an unlicensed person from doing so.

     (2) A licensed manufacturer must notify us in writing before a manufacturer representative begins representing them.

[Statutory Authority: RCW 9.46.070. 07-19-069 (Order 615), § 230-16-001, filed 9/17/07, effective 1/1/08.]

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