CCS SS SCS HS HCS HB 793 -- GAMING

This bill makes several changes to gaming provisions.  In its
main provisions, the bill:

(1)  Extends to January 1, 2005, the expiration date of the
requirement of the state lottery to award certain percentages of
its contracts and subcontracts to women- and minority-owned
businesses;

(2)  Allows tokens to be physical or electronic;

(3)  Requires applicants for licensure or license renewal to
provide an affirmative action plan to the Missouri Gaming
Commission and to report on the plan's effectiveness to the
commission at renewal periods.  The commission must report the
licensee's information in its annual report to the Joint
Committee on Gaming and Wagering;

(4)  Changes the license renewal period from every 2 years to no
fewer than 2 years and no more than 3 years.  In current law,
the initial license period and first renewal are for one year,
and subsequent renewals are every 2 years;

(5)  Adds commission-approved persons or entities as eligible to
supply gambling games or implements;

(6)  Authorizes the commission without limitation to deny a
license to an applicant based solely on the fact that there is
evidence that the applicant has engaged in certain activities,
including being suspended from operating a gambling boat in
another jurisdiction or making a false statement of a material
fact to the commission;

(7)  Authorizes the commission to deny an application for an
applicant's act or failure to act that is injurious to public
health, safety, morals, good order, or general welfare or would
tend to discredit the gaming industry or the state.  Current law
applies penalties only to licensees if they engage in the same
conduct;

(8)  Allows the bond or surety posted to the commission by the
licensee to be used to guarantee the completion of any expansion
or modification of a boat in a time period approved by the
commission, or August 28, 2003, whichever is later.  Failure to
complete the approved expansion or modification within the
specified period is sufficient grounds for nonrenewal of a
license;

(9)  Extends the period of time within which a licensee may
request tax reassessment from 10 days to 20 days from the
postmark date;

(10)  Specifies a penalty for permitting or aiding persons under
21 years of age to make a wager and persons younger than 21
years making or attempting to make a wager.  The first offense
is a class B misdemeanor; second and subsequent violations are
class A misdemeanors;

(11)  Limits the definition of the term "gambling."  Gambling
excludes amusement redemption devices that confer only an
immediate right of replay, noncash prizes, toys, novelties,
coupons, or other redeemable representations of value that can
be redeemed on the premises for prizes, toys, or novelties, not
to exceed $250 in value and which cannot be resold for cash or
other consideration.  Specifically prohibited is redeeming
representations of value for cash, intoxicating beer or liquor,
nonintoxicating beer, or tobacco products.  No amusement
redemption device will allow the wholesale value of any prize
for a single play to exceed the value of a single play or $5,
whichever is more.  The value of a prize for multiple plays will
not exceed the cumulative value of play or $250, whichever is
less;

(12)  Limits the definition of the term "gambling device."
Gambling devices exclude games or amusement redemption devices
that confer only an immediate right of replay, noncash prizes,
toys, novelties, coupons, or other representations of value that
can be redeemed on the premises for prizes, toys, or novelties,
not to be resold or transferred for cash or other
consideration.  Prohibited is redeeming representations of value
for cash, gift certificates, intoxicating beer or liquor,
nonintoxicating beer, or tobacco products.  No amusement
redemption device will allow the wholesale value of any prize
for a single play to exceed the value of a single play or $5,
whichever is more.  The value of a prize for multiple plays will
not exceed the cumulative value of play or $250, whichever is
less.  No amusement redemption device will act as a lottery or
gift enterprise or simulate a slot machine or any other game of
skill, as defined as of August 28, 1999;

(13)  Establishes regulations for raffles and sweepstakes,
allowing qualifying charitable and religious organizations to
conduct raffles or sweepstakes with total annual prizes with a
value of less than $50,000 without a license.  Raffles and
sweepstakes with total annual prizes of $50,000 or more require
a license from the commission;

(14)  Outlines license application requirements, establishes
certain bookkeeping and recordkeeping requirements, and requires
commission access to books, records, and premises;

(15)  Excludes certain persons and organizations from the
management, conduct, or operation of any raffle or sweepstakes;

(16)  Requires 10 days' notice to the commission and an event
fee of up to $25 prior to a raffle or sweepstakes;

(17)  Sets restrictions for the conduct of raffles and
sweepstakes, including that only bona fide members for at least
6 months are permitted to be involved in the management of
raffles or sweepstakes;

(18)  Makes it a misdemeanor to violate the provisions
pertaining to raffles and sweepstakes, and authorizes the
commission to fine a violator in an amount not more than 3 times
the amount of the proceeds of the raffle or sweepstakes directly
connected to the violation;

(19)  Makes it a class D felony to counterfeit any raffle or
sweepstakes ticket with the intent to defraud;

(20)  Allows the commission to promulgate rules and regulations
to implement the provisions relating to raffles and sweepstakes;
and

(21)  Requires the commission to promulgate rules allowing
persons to voluntarily exclude themselves from excursion
gambling boats.  If such a person enters a gambling boat, he or
she is guilty of first-degree trespassing (class B misdemeanor)
and will forfeit all chips, tokens, and electronic gaming
credits in his or her possession at the time the person is
discovered.  The commission will establish by rule the procedure
for forfeitures.

HS HCS HB 793 -- GAMING (Treadway)

This substitute makes several changes to gaming provisions.  The
substitute:

(1)  Clarifies that tokens will be physical or electronic;

(2)  Requires applicants for licensure or renewal of a license
to provide an affirmative action plan to the Missouri Gaming
Commission and to report to the commission at renewal periods.
The commission must report the licensee's information in its
annual report to the Joint Interim Committee on Gaming and
Wagering;

(3)  Changes the license renewal period from every 2 years to no
fewer than 2 years and no more than 3 years;

(4)  Adds commission-approved persons or entities as eligible to
supply gambling games or implements;

(5)  Extends the period of time within which a licensee may
request tax reassessment from 10 days to 20 days from the
postmark date;

(6)  Specifies that certain actions pertaining to wagering and
persons younger than 21 years constitute a class B misdemeanor
on the first offense.  Second and subsequent violations are
class A misdemeanors;

(7)  Clarifies the definition of the term "gambling."  Gambling
excludes amusement devices that confer only an immediate right
of replay, noncash prizes, toys, novelties, coupons, or other
redeemable representations of value that can be redeemed on the
premises for prizes, toys, or novelties, not to exceed $300 in
value and which cannot be resold for cash or other
consideration.  Specifically prohibited is redeeming
representations of value for cash, intoxicating beer or liquor,
nonintoxicating beer, or tobacco products;

(8)  Clarifies the definition of the term "gambling device."
Gambling devices exclude games or amusement devices that confer
only an immediate right of replay, noncash prizes, toys,
novelties, coupons, or other representations of value that can
be redeemed on the premises for prizes, toys, or novelties, not
to be resold or transferred for cash or other consideration.
Prohibited is redeeming representations of value for cash, gift
certificates, intoxicating beer or liquor, nonintoxicating beer,
or tobacco products.  An amusement device cannot simulate a slot
machine or any gambling game of skill;

(9)  Establishes regulations for raffles and sweepstakes,
allowing qualifying charitable and religious organizations to
conduct raffles or sweepstakes with annual gross receipts of
$10,000 or less without a license.  Raffles and sweepstakes with
annual gross receipts greater than $10,000 require a license
from the commission;

(10)  Outlines license application requirements;

(11)  Excludes certain persons and organizations from the
management, conduct, or operation of any raffle or sweepstakes;

(12)  Sets restrictions for the conduct of raffles and
sweepstakes, including who is allowed to participate in the
management and conduct of raffles or sweepstakes and for what
purpose the proceeds must be used;

(13)  Makes it a class A misdemeanor to violate the provisions
of the substitute; and

(14)  Allows the commission to promulgate rules and regulations
to implement the substitute's provisions.

FISCAL NOTE:  Estimated Net Decrease to Lottery Proceeds for
Education Fund of at least $1,137,500 in FY 2000, at least
$1,365,000 in FY 2001, and at least $1,365,000 in FY 2002.
Estimated Net Effect on Gaming Proceeds for Education Fund of
Unknown in FY 2000, FY 2001, and FY 2002.  Revenue is expected
to exceed $100,000.  Estimated Net Cost to Gaming Commission
Fund of $493,436 in FY 2000, $340,973 in FY 2001, and $349,047
in FY 2002.

HCS HB 793 -- GAMING

SPONSOR:  O'Toole (Treadway)

COMMITTEE ACTION:  Voted "do pass" by the Committee on
Miscellaneous Bills and Resolutions by a vote of 10 to 3.

This substitute makes several changes to excursion gambling boat
provisions.  The substitute:

(1)  Clarifies that tokens will be physical or electronic;

(2)  Changes the license renewal period from every 2 years to no
fewer than 2 years and no more than 5 years;

(3)  Adds commission-approved persons or entities as eligible to
supply gambling games or implements;

(4)  Extends the period of time within which a licensee may
request tax reassessment from 10 days to 20 days from the
postmark date; and

(5)  Specifies actions that constitute a class B misdemeanor,
pertaining to wagering and persons younger than 21 years.

The substitute also clarifies the definitions of the terms
"gambling" and "gambling device."  Gambling excludes amusement
devices that confer only an immediate right of replay, noncash
prizes, toys, novelties, coupons, or other redeemable
representations of value that can be redeemed on the premises
for prizes, toys, or novelties.  Each prize, toy, or novelty
cannot exceed $300 in value and cannot be resold for cash or
other consideration.  The substitute prohibits redeeming
representations of value for cash, intoxicating beer or liquor,
nonintoxicating beer, or tobacco products.

Gambling devices exclude games or amusement devices that confer
only an immediate right of replay, noncash prizes, toys,
novelties, coupons, or other representations of value that can
be redeemed on the premises for prizes, toys, or novelties.  The
substitute prohibits redeeming representations of value for
cash, gift certificates, intoxicating beer or liquor,
nonintoxicating beer, or tobacco products.  The item of value
cannot be resold or transferred for cash or other
consideration.  An amusement device cannot be identical in
purpose to casino games which have the purpose of cash payout.

This substitute has penalty provisions.

FISCAL NOTE:  Estimated Net Loss to Lottery Proceeds for
Education Fund of $1,137,500 in FY 2000, $1,365,000 in FY 2001,
and $1,365,000 in FY 2002.  Estimated Net Income to Gaming
Proceeds for Education Fund of Unknown in FY 2000, FY 2001, and
FY 2002.  Revenue expected to exceed $100,000.

PROPONENTS:  Supporters say that the use of electronic tokens or
credits is a big customer service issue; the use of physical
tokens is a common guest complaint because they make hands dirty
and the machines run out of tokens regularly.  They also say
that the license renewal process is cumbersome and costly and
that it could be extended, without loosening control, to be
cost-effective to both the Gaming Commission and the licensees.

Testifying for the bill were Representative Treadway; Station
Casinos; Kathy Franke; Gloria Myszka; Vicki Nilges; Harrah's;
and Missouri Gaming Commission.

OPPONENTS:  Those who oppose the bill say that they do not want
to extend the licensing period because that will loosen control
over the licensees.

Testifying against the bill was Casino Watch.

Donna Schlosser, Legislative Analyst

HB 793 -- Gaming

Co-Sponsors:  Treadway, Foley, Kissell, O'Toole, O'Connor

This bill makes several changes to excursion gambling boat
provisions.  The bill:

(1)  Clarifies that tokens will be physical or electronic;

(2)  Changes the license renewal period from every 2 years to no
fewer than 2 years and no more than 5 years.

(3)  Adds commission-approved persons or entities as eligible to
supply gambling games or implements;

(4)  Extends the period of time within which a licensee may
request tax reassessment from 10 days to 20 days from the
postmark date;

(5)  Specifies actions that constitute a class B misdemeanor,
pertaining to wagering and persons younger than 21 years;

(6)  Provides immunity from liability to licensees, with
probable cause, for taking into custody, detaining, and
questioning persons believed to have violated excursion gambling
boat laws in a reasonable manner and for a reasonable time, as
long as a notice is conspicuously posted on the premises
indicating that the licensee is authorized to do so.

This bill has penalty provisions.