Montana Administrative Register Notice 23-16-218 No. 24   12/23/2010    
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In the matter of the amendment of ARM 23.16.120 concerning loans and other forms of financing







            TO: All Concerned Persons


            1. On January 19, 2011, at 9:00 a.m., the Montana Department of Justice will hold a public hearing in the conference room at the Gambling Control Division, 2550 Prospect Avenue, Helena, Montana, to consider the proposed amendment of the above-stated rule.


            2. The Department of Justice will make reasonable accommodations for persons with disabilities who wish to participate in this public hearing or need an alternative accessible format of this notice. If you require an accommodation, contact the department no later than 5:00 p.m. on January 14, 2011, to advise us of the nature of the accommodation that you need. Please contact Rick Ask, Gambling Control Division, 2550 Prospect Avenue, P.O. Box 201424, Helena, MT 59620-1424; telephone (406) 444-1971; fax (406) 444-9157; Montana Relay Service 711; or e-mail rask@mt.gov.


            3. The rule proposed to be amended provides as follows, stricken matter interlined, new matter underlined:


23.16.120 LOANS AND OTHER FORMS OF FINANCING (1) through (8)(c) remain the same.

(d) the term of repayment does not exceed 180 365 days.

(9) and (10) remain the same.


AUTH:            23-5-115, MCA

IMP:                23-5-115, 23-5-118, 23-5-176, MCA


RATIONALE AND JUSTIFICATION:  This rule amendment is necessary and reasonable to enlarge, from 180 days to 365 days, the period of time a licensee may purchase video gambling machines (vgms) on a "cash equivalent" sales basis without being required to obtain prior department approval.  Under the current rule, a licensee is exempt from the requirement to obtain prior department approval when it incurs a 180-day payable for the purchase of video gambling machines, on a same-as-cash basis, from a licensed manufacturer or distributor.  The Gaming Advisory Council approved a proposal to enlarge the current time period to help licensees purchase vgms under a longer same-as-cash basis. The department concluded that this enlargement of time is consistent with current department policies and industry practices, and does not violate the agency's standard for commercial reasonableness of financial arrangements related to gambling licensees.

4. Concerned persons may submit their data, views, or arguments either orally or in writing at the hearing. Written data, views, or arguments may also be submitted to Rick Ask, Gambling Control Division, 2550 Prospect Avenue, P.O. Box 201424, Helena, MT 59620-1424; fax (406) 444-9157; or e-mail rask@mt.gov, and must be received no later than January 20, 2011.


            5. An electronic copy of this Notice of Proposed Amendment is available through the Department of Justice's web site at http://doj.mt.gov/resources/administrativerules.asp.  The department strives to make the electronic copy of the notice conform to the official version of the notice, as printed in the Montana Administrative Register, but advises all concerned persons that in the event of a discrepancy between the official printed text of the notice and the electronic version of the notice, only the official printed text will be considered.  In addition, although the Department of Justice works to keep its web site accessible at all times, concerned persons should be aware that the web site may be unavailable during some periods, due to system maintenance or technical problems.


6. The Department of Justice maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by this agency. Persons who wish to have their name added to the list shall make a written request which includes the name and mailing address of the person to receive notices and specifies that the person wishes to receive notices of rules regarding the Crime Control Division, the Central Services Division, the Forensic Sciences Division, the Gambling Control Division, the Highway Patrol Division, the Law Enforcement Academy, the Division of Criminal Investigation, the Legal Services Division, the Consumer Protection Division, the Motor Vehicle Division, the Justice Information Systems Division, or any combination thereof. Such written request may be mailed or delivered to Rick Ask, 2550 Prospect Avenue, P.O. Box 201424, Helena, MT 59620-1424; fax (406) 444-9157; or e-mail rask@mt.gov, or may be made by completing a request form at any rules hearing held by the Department of Justice. A copy of the interested persons request form may be printed from the Department of Justice's web site at http://www.doj.mt.gov/resources/forms/interestedperson.pdf, and mailed to the rule reviewer.


            7. Cregg Coughlin, Assistant Attorney General, Gambling Control Division, has been designated to preside over and conduct the hearing.


8. The bill sponsor contact requirements of 2-4-302, MCA, do not apply.


By:     /s/ Steve Bullock                                                      /s/ J. Stuart Segrest             

            STEVE BULLOCK                                                   J. STUART SEGREST

            Attorney General, Department of Justice               Rule Reviewer


Certified to the Secretary of State December 13, 2010.


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