1 | 1 | | |
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2 | 2 | | FIRST REGULAR SESSION |
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3 | 3 | | SENATE BILL NO. 16 |
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4 | 4 | | 103RD GENERAL ASSEMBLY |
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5 | 5 | | INTRODUCED BY SENATOR MAY. |
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6 | 6 | | 0107S.02I KRISTINA MARTIN, Secretary |
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7 | 7 | | AN ACT |
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8 | 8 | | To amend chapter 313, RSMo, by adding thereto six new sections relating to video lottery, with |
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9 | 9 | | penalty provisions. |
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10 | 10 | | |
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11 | 11 | | Be it enacted by the General Assembly of the State of Missouri, as follows: |
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12 | 12 | | Section A. Chapter 313, RSMo, is amended by adding t hereto 1 |
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13 | 13 | | six new sections, to be known as sections 313.425, 313.427, 2 |
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14 | 14 | | 313.429, 313.431, 313.433, and 313.435, to read as follows:3 |
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15 | 15 | | 313.425. Sections 313.425 to 313.435 shall be known 1 |
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16 | 16 | | and may be cited as the "Missouri Video Lottery Control Act" 2 |
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17 | 17 | | and shall establish the regulatory framework for the use of 3 |
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18 | 18 | | player-activated video terminals for the conduct of lottery 4 |
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19 | 19 | | games. 5 |
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20 | 20 | | 313.427. As used in sections 313.425 to 313.435, the 1 |
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21 | 21 | | following words and phrases shall mean: 2 |
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22 | 22 | | (1) "Centralized computer system", a computerized 3 |
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23 | 23 | | system developed or procured by the commission that video 4 |
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24 | 24 | | lottery game terminals are connected to using standard 5 |
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25 | 25 | | industry protocols that can activate or deactivate a 6 |
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26 | 26 | | particular video lottery game terminal from a remo te 7 |
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27 | 27 | | location, and that is capable of monitoring and auditing 8 |
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28 | 28 | | video lottery game plays; 9 |
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29 | 29 | | (2) "Commission" or "lottery commission", the five - 10 |
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30 | 30 | | member body appointed by the governor to manage and oversee 11 |
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31 | 31 | | the lottery under section 313.215; 12 SB 16 2 |
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32 | 32 | | (3) "Fraternal organization", any organization within 13 |
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33 | 33 | | this state operating under the lodge system which exists for 14 |
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34 | 34 | | the common benefit, brotherhood, or other interest of its 15 |
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35 | 35 | | members, except college fraternities and sororities, of 16 |
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36 | 36 | | which no part of the net earnin gs inures to the benefit of 17 |
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37 | 37 | | any private shareholder or any individual member of such 18 |
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38 | 38 | | organization, which has been exempted from the payment of 19 |
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39 | 39 | | federal income tax, and which derives its charter from a 20 |
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40 | 40 | | national fraternal organization which regularly meet s; 21 |
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41 | 41 | | (4) "Truck stop", a location that provides parking and 22 |
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42 | 42 | | is equipped for fueling commercial vehicles, that has sold 23 |
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43 | 43 | | on average ten thousand gallons of diesel or biodiesel fuel 24 |
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44 | 44 | | each month for the previous twelve months or is projected to 25 |
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45 | 45 | | sell an average of ten thousand gallons of diesel or 26 |
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46 | 46 | | biodiesel fuel each month for the next twelve months, and 27 |
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47 | 47 | | that obtains and maintains a lottery game retailer license 28 |
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48 | 48 | | issued by the commission; 29 |
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49 | 49 | | (5) "Veterans' organization", a post or organization 30 |
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50 | 50 | | of veterans, or an auxiliary unit or society of, or a trust 31 |
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51 | 51 | | or foundation for, any such post or organization organized 32 |
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52 | 52 | | in the United States or any of its possessions in which at 33 |
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53 | 53 | | least seventy-five percent of the members are veterans of 34 |
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54 | 54 | | the United States arm ed forces and substantially all of the 35 |
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55 | 55 | | other members are individuals who are veterans or are 36 |
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56 | 56 | | cadets, or are spouses, widows, or widowers of war veterans 37 |
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57 | 57 | | of such individuals, in which no part of the net earnings 38 |
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58 | 58 | | inures to the benefit of any private shar eholder or 39 |
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59 | 59 | | individual, and which has been exempted from payment of 40 |
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60 | 60 | | federal income taxes; 41 |
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61 | 61 | | (6) "Video lottery game", any lottery game approved by 42 |
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62 | 62 | | the commission for play on a video lottery game terminal 43 |
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63 | 63 | | using video lottery game terminal credits tha t have been 44 SB 16 3 |
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64 | 64 | | purchased with cash, cash equivalents, or by a winning video 45 |
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65 | 65 | | lottery game terminal ticket; 46 |
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66 | 66 | | (7) "Video lottery game adjusted gross receipts", the 47 |
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67 | 67 | | total of cash or cash equivalents used for the play of a 48 |
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68 | 68 | | video lottery game on a video lo ttery game terminal minus 49 |
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69 | 69 | | cash or cash equivalent paid to players as a result of 50 |
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70 | 70 | | playing video lottery games on a video lottery game terminal; 51 |
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71 | 71 | | (8) "Video lottery game distributor", a person 52 |
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72 | 72 | | licensed by the commission to buy, sell, lease, rent, 53 |
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73 | 73 | | finance or otherwise provide, distribute or service video 54 |
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74 | 74 | | lottery game terminals or major parts and components of 55 |
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75 | 75 | | video lottery game terminals, including used or refurbished 56 |
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76 | 76 | | video lottery game terminals to and from licensed video 57 |
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77 | 77 | | lottery game manufacture rs and licensed video lottery game 58 |
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78 | 78 | | operators; 59 |
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79 | 79 | | (9) "Video lottery game handler", a person employed by 60 |
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80 | 80 | | a licensed video lottery game operator to handle, place, 61 |
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81 | 81 | | operate, and service video lottery game terminals and 62 |
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82 | 82 | | associated equipment; 63 |
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83 | 83 | | (10) "Video lottery game manufacturer", any person 64 |
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84 | 84 | | that manufactures video lottery game terminals or major 65 |
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85 | 85 | | parts and components for video lottery game terminals as 66 |
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86 | 86 | | approved by the lottery commission; 67 |
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87 | 87 | | (11) "Video lottery game operator", a person licensed 68 |
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88 | 88 | | by the commission that owns, rents, or leases and services 69 |
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89 | 89 | | or maintains video lottery game terminals for placement in 70 |
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90 | 90 | | licensed video lottery game retailer establishments; 71 |
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91 | 91 | | (12) "Video lottery game retailer", a person meeting 72 |
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92 | 92 | | the requirements of a lottery game retailer under section 73 |
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93 | 93 | | 313.260, that secures and maintains a license issued by the 74 |
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94 | 94 | | commission to conduct video lottery games played on a video 75 |
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95 | 95 | | lottery game terminal or terminals and that is a fraternal 76 SB 16 4 |
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96 | 96 | | organization, veterans organization, truck stop, or business 77 |
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97 | 97 | | entity licensed under chapter 311 to sell liquor by the 78 |
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98 | 98 | | drink and that only allows patrons over the age of twenty - 79 |
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99 | 99 | | one to enter; 80 |
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100 | 100 | | (13) "Video lottery game terminal", player -activated 81 |
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101 | 101 | | terminal that exchanges coins, currency, tickets, ticket 82 |
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102 | 102 | | vouchers, or other electronic payment methods approved by 83 |
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103 | 103 | | the commission for video lottery game terminal credits used 84 |
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104 | 104 | | to play video lottery games approved by the commission. 85 |
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105 | 105 | | Such video lottery game terminals shall use a video display 86 |
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106 | 106 | | and microprocessor capable of randomly generating the 87 |
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107 | 107 | | outcome of video lottery games and be capable of printing a 88 |
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108 | 108 | | ticket at the conclusion of any video lottery game play that 89 |
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109 | 109 | | is redeemable at a video lottery game ticket redemption 90 |
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110 | 110 | | terminal or reinsert ed into a video lottery game terminal 91 |
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111 | 111 | | for video lottery game credit. All video lottery games 92 |
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112 | 112 | | approved by the commission for play on a video lottery game 93 |
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113 | 113 | | terminal shall have a minimum theoretical payout of eighty - 94 |
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114 | 114 | | five percent; 95 |
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115 | 115 | | (14) "Video lottery game terminal credit", one cent, 96 |
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116 | 116 | | five cents, ten cents, or twenty -five cents either won or 97 |
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117 | 117 | | purchased by a player on a video lottery game terminal that 98 |
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118 | 118 | | is used to play video lottery games and that may be 99 |
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119 | 119 | | converted into a video lottery game ticket; 100 |
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120 | 120 | | (15) "Video lottery game ticket" or "ticket", a 101 |
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121 | 121 | | document printed at the conclusion of any lottery game play 102 |
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122 | 122 | | or group of plays on a video lottery game terminal that is 103 |
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123 | 123 | | redeemable for cash utilizing a video lottery game ticket 104 |
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124 | 124 | | redemption terminal or th at may be reinserted into a video 105 |
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125 | 125 | | lottery game terminal in the establishment for which it was 106 |
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126 | 126 | | issued for video lottery terminal game play credit; 107 SB 16 5 |
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127 | 127 | | (16) "Video lottery game ticket redemption terminal", 108 |
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128 | 128 | | the collective hardware, software, communicatio ns 109 |
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129 | 129 | | technology, and other ancillary equipment used to facilitate 110 |
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130 | 130 | | the payment of tickets cashed out by players as a result of 111 |
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131 | 131 | | playing a video lottery game terminal. 112 |
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132 | 132 | | 313.429. 1. The commission shall implement a system 1 |
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133 | 133 | | of video lottery game terminals utilizing a licensing 2 |
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134 | 134 | | structure for processing license applications and issuing 3 |
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135 | 135 | | licenses to video lottery game manufacturers, video lottery 4 |
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136 | 136 | | game distributors, video lottery game operators, video 5 |
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137 | 137 | | lottery game handlers, and video lottery game retailers for 6 |
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138 | 138 | | the conduct of lottery games utilizing video lottery game 7 |
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139 | 139 | | terminals within the state; except that, a person licensed 8 |
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140 | 140 | | as a: 9 |
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141 | 141 | | (1) Video lottery game manufacturer or a video lottery 10 |
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142 | 142 | | game distributor shall not be issued a license as a video 11 |
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143 | 143 | | lottery game operator or a video lottery game retailer; 12 |
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144 | 144 | | (2) Video lottery game operator shall not be issued a 13 |
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145 | 145 | | license as a video lottery game manufacturer or a video 14 |
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146 | 146 | | lottery game distributor; and 15 |
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147 | 147 | | (3) Video lottery game retailer shal l not be issued a 16 |
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148 | 148 | | license as a video lottery game manufacturer or a video 17 |
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149 | 149 | | lottery game distributor. 18 |
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150 | 150 | | Nothing in this subsection shall prevent a video lottery 19 |
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151 | 151 | | game manufacturer from obtaining a video lottery game 20 |
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152 | 152 | | manufacturer's license and a video lotter y game 21 |
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153 | 153 | | distributor's license and providing and operating the 22 |
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154 | 154 | | centralized computer system for monitoring video lottery 23 |
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155 | 155 | | game terminals, and nothing in this subsection shall prevent 24 |
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156 | 156 | | a video lottery game operator from obtaining a video lottery 25 |
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157 | 157 | | game retailer's license or a video lottery game retailer 26 SB 16 6 |
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158 | 158 | | from obtaining a video lottery game operator's license, 27 |
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159 | 159 | | provided the applicant meets the requirements for all such 28 |
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160 | 160 | | licenses. 29 |
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161 | 161 | | 2. Under no circumstances shall the commission: 30 |
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162 | 162 | | (1) Authorize or allow a single vendor or licensee to 31 |
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163 | 163 | | implement the system of video lottery game terminals created 32 |
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164 | 164 | | under this section; 33 |
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165 | 165 | | (2) Allow a single licensed video lottery game 34 |
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166 | 166 | | operator to control or operate more than twenty -five percent 35 |
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167 | 167 | | of video lottery game ter minals in the state; or 36 |
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168 | 168 | | (3) Allow a single licensed video lottery game 37 |
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169 | 169 | | manufacturer or distributor to manufacture or distribute 38 |
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170 | 170 | | more than twenty-five percent of video lottery game 39 |
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171 | 171 | | terminals in the state. 40 |
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172 | 172 | | 3. (1) The video lottery game system authorized by 41 |
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173 | 173 | | this section shall allow for multiple video lottery game 42 |
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174 | 174 | | manufacturers, video lottery game distributors, and video 43 |
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175 | 175 | | lottery game operators to encourage private sector 44 |
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176 | 176 | | investment and job opportunities for Missouri citizens. 45 |
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177 | 177 | | Video lottery game terminals shall be connected to a 46 |
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178 | 178 | | centralized computer system developed or procured by the 47 |
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179 | 179 | | commission. The commission shall provide licensed video 48 |
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180 | 180 | | lottery game operators with the necessary protocols to 49 |
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181 | 181 | | connect the operators' video lottery game t erminal or 50 |
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182 | 182 | | terminals to the centralized computer system after such 51 |
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183 | 183 | | terminal or terminals have been approved by the commission. 52 |
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184 | 184 | | No video lottery game terminal shall be placed in operation 53 |
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185 | 185 | | without first connecting to the centralized computer system 54 |
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186 | 186 | | after such terminal or terminals have been approved by the 55 |
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187 | 187 | | commission. A vendor that provides the centralized computer 56 |
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188 | 188 | | system authorized under this subsection shall not be 57 |
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189 | 189 | | eligible to be licensed as a video lottery game operator or 58 SB 16 7 |
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190 | 190 | | video lottery game ret ailer. The commission may impose an 59 |
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191 | 191 | | initial nonrefundable license application fee as follows: 60 |
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192 | 192 | | (a) For video lottery game manufacturers, video 61 |
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193 | 193 | | lottery game distributors, and video lottery game operators, 62 |
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194 | 194 | | no more than fifty thousand dollars; 63 |
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195 | 195 | | (b) For video lottery game retailer establishments, no 64 |
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196 | 196 | | more than five hundred dollars; or 65 |
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197 | 197 | | (c) For video lottery game handlers, no more than one 66 |
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198 | 198 | | hundred dollars. 67 |
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199 | 199 | | (2) The initial license and first subsequent license 68 |
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200 | 200 | | renewal shall be for a peri od of one year. Thereafter, 69 |
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201 | 201 | | license renewal periods shall be four years with the 70 |
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202 | 202 | | applicable annual renewal fee paid for each year such 71 |
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203 | 203 | | license is renewed. Annual license renewal fees for anyone 72 |
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204 | 204 | | licensed pursuant to this subsection shall be as follows : 73 |
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205 | 205 | | (a) Five thousand dollars for video lottery game 74 |
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206 | 206 | | manufacturers and video lottery game distributors; 75 |
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207 | 207 | | (b) Five thousand dollars for video lottery game 76 |
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208 | 208 | | operators; 77 |
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209 | 209 | | (c) Fifty dollars for video lottery game handlers; and 78 |
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210 | 210 | | (d) Five hundred dollars for each video lottery game 79 |
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211 | 211 | | retailer's establishment. 80 |
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212 | 212 | | (3) In addition to the license fees required in 81 |
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213 | 213 | | subdivisions (1) and (2) of this subsection, video lottery 82 |
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214 | 214 | | game operators shall pay the commission an annual license 83 |
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215 | 215 | | fee of two hundred dollars for each video lottery game 84 |
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216 | 216 | | terminal placed in service. Such video lottery game 85 |
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217 | 217 | | terminal license shall be renewed each year and cost two 86 |
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218 | 218 | | hundred dollars. A license issued under this subsection is 87 |
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219 | 219 | | nontransferable. 88 |
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220 | 220 | | (4) Nothing in this subsection shall be construed to 89 |
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221 | 221 | | relieve the licensee of the affirmative duty to notify the 90 SB 16 8 |
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222 | 222 | | commission of any change relating to the status of the 91 |
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223 | 223 | | license or to any other information contained in the 92 |
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224 | 224 | | application materials on file with the commission. 93 |
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225 | 225 | | 4. No license shall be issued to any person, and no 94 |
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226 | 226 | | person shall be allowed to serve as a sales agent, who has 95 |
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227 | 227 | | been convicted of a felony or a crime involving illegal 96 |
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228 | 228 | | gambling. 97 |
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229 | 229 | | 5. No license requirement, sticker fee, or tax shall 98 |
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230 | 230 | | be imposed by any local jurisdiction upon a video lottery 99 |
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231 | 231 | | game manufacturer, video lottery game distributor, video 100 |
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232 | 232 | | lottery game operator, video lottery game retailer, video 101 |
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233 | 233 | | lottery game handler, or video lottery game terminal or an 102 |
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234 | 234 | | establishment relating to the operation of video lottery 103 |
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235 | 235 | | games, video lottery game terminals, or associated equipment. 104 |
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236 | 236 | | 6. (1) Video lottery game terminals shall meet 105 |
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237 | 237 | | independent testing standards approved by the commission, as 106 |
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238 | 238 | | tested by one or more approved independent test l abs, and be 107 |
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239 | 239 | | capable of randomly generating the outcome of video lottery 108 |
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240 | 240 | | games approved by the commission. Video lottery game 109 |
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241 | 241 | | terminals shall be capable of printing a ticket redeemable 110 |
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242 | 242 | | for winning video lottery game plays. Such video lottery 111 |
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243 | 243 | | game terminals shall be inspected and approved by the 112 |
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244 | 244 | | commission prior to being sold, leased, or transferred. 113 |
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245 | 245 | | (2) Licensed video lottery game manufacturers may buy, 114 |
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246 | 246 | | sell, or lease new or refurbished video lottery game 115 |
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247 | 247 | | terminals to and from licensed video lottery game 116 |
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248 | 248 | | distributors. 117 |
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249 | 249 | | (3) Licensed video lottery game distributors may buy, 118 |
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250 | 250 | | sell, or lease new or refurbished video lottery game 119 |
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251 | 251 | | terminals to or from licensed video lottery game 120 |
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252 | 252 | | manufacturers or licensed video lottery game operators. 121 |
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253 | 253 | | 7. (1) Licensed video lottery game operators: 122 SB 16 9 |
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254 | 254 | | (a) May buy, lease, or rent video lottery game 123 |
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255 | 255 | | terminals from licensed video lottery game manufacturers, 124 |
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256 | 256 | | operators, or distributors; 125 |
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257 | 257 | | (b) May handle, place, and service video lottery game 126 |
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258 | 258 | | terminals; 127 |
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259 | 259 | | (c) Shall connect such video lottery game terminals to 128 |
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260 | 260 | | the centralized computer system approved by the commission; 129 |
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261 | 261 | | and 130 |
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262 | 262 | | (d) Shall pay winning tickets using a video lottery 131 |
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263 | 263 | | game ticket redemption terminal. Such video lottery ticket 132 |
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264 | 264 | | redemption terminal shall be located within the video 133 |
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265 | 265 | | lottery game retailer's establishment in direct proximity of 134 |
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266 | 266 | | where such video lottery games are offered. Video lottery 135 |
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267 | 267 | | game operators shall pay the commission thirty -two percent 136 |
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268 | 268 | | of any unclaimed cash pri ze associated with a winning ticket 137 |
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269 | 269 | | that has not been redeemed within one year of issue. 138 |
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270 | 270 | | Rents or leases for video lottery game terminals shall be 139 |
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271 | 271 | | written at a flat rate and shall not include revenue 140 |
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272 | 272 | | splitting as a method used in the calculation of the lease 141 |
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273 | 273 | | or rent. 142 |
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274 | 274 | | (2) Licensed video lottery game operators and licensed 143 |
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275 | 275 | | video lottery game retailers may enter into a written 144 |
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276 | 276 | | agreement for the placement of video lottery game 145 |
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277 | 277 | | terminals. The agreement shall be on a form approved by the 146 |
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278 | 278 | | commission and shall specify a freely negotiated and agreed 147 |
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279 | 279 | | upon division of adjusted gross receipts between the video 148 |
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280 | 280 | | lottery game operator and the video lottery game retailer 149 |
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281 | 281 | | after adjustments for taxes and administrative fees are 150 |
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282 | 282 | | made. A video lottery game o perator shall be responsible 151 |
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283 | 283 | | for remitting to the commission and the video lottery game 152 |
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284 | 284 | | retailer its share of adjusted gross receipts. Video 153 SB 16 10 |
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285 | 285 | | lottery game retailers that are also video lottery game 154 |
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286 | 286 | | operators and licensed video lottery game operators th at are 155 |
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287 | 287 | | also video lottery game retailers shall only be required to 156 |
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288 | 288 | | submit an agreement pursuant to this subdivision if the 157 |
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289 | 289 | | ownership is not identical in both entities. Nothing in 158 |
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290 | 290 | | this subdivision shall prohibit a licensed video lottery 159 |
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291 | 291 | | game operator from entering into an agreement with a sales 160 |
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292 | 292 | | agent for retailer agreements provided such agreement is in 161 |
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293 | 293 | | writing and approved by the commission. No video lottery 162 |
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294 | 294 | | game operator or its sales agents, employees, or affiliates 163 |
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295 | 295 | | may offer, promise, or tender any property or personal 164 |
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296 | 296 | | advantage to any employee or agent of any video lottery game 165 |
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297 | 297 | | retailer with the intent to influence such video lottery 166 |
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298 | 298 | | game retailer with respect to locating any video lottery 167 |
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299 | 299 | | game terminal in the video lottery game retailer's 168 |
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300 | 300 | | establishment. Video lottery game operators and video 169 |
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301 | 301 | | lottery game retailers may allocate costs related to the 170 |
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302 | 302 | | operation, promotion, and maintenance of video lottery game 171 |
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303 | 303 | | terminals in any manner that has been mutually agreed to. 172 |
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304 | 304 | | An agreement for the placement of video lottery game 173 |
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305 | 305 | | terminals, or any similar agreement, entered into prior to 174 |
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306 | 306 | | the enactment of sections 313.425 to 313.435 shall be 175 |
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307 | 307 | | invalid and unenforceable. Persons violating this 176 |
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308 | 308 | | subdivision are subject to the loss or prohibition of t heir 177 |
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309 | 309 | | video lottery game operator's license. 178 |
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310 | 310 | | (3) Nothing in this section shall be construed to 179 |
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311 | 311 | | prevent a video lottery game operator or a video lottery 180 |
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312 | 312 | | game retailer from using a player rewards system as approved 181 |
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313 | 313 | | by the commission. No player shall be required to enroll in 182 |
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314 | 314 | | a rewards program offered by a video lottery game operator 183 |
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315 | 315 | | or video lottery game retailer as a condition to play video 184 |
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316 | 316 | | lottery games. 185 SB 16 11 |
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317 | 317 | | 8. No licensed video lottery game operator shall: 186 |
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318 | 318 | | (1) Offer video lottery gaming terminals that directly 187 |
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319 | 319 | | dispense anything of value except for tickets for winning 188 |
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320 | 320 | | plays. Tickets shall be dispensed by pressing the ticket 189 |
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321 | 321 | | dispensing button on the video lottery gaming terminal at 190 |
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322 | 322 | | the end of any video lottery game play. The ticket shall 191 |
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323 | 323 | | indicate the total amount of video lottery game terminal 192 |
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324 | 324 | | credits and the cash award, the time of day in a twenty -four- 193 |
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325 | 325 | | hour format showing hours and minutes, the date, the 194 |
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326 | 326 | | terminal serial number, the sequential number of the ticket, 195 |
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327 | 327 | | and an encrypted validation number from which the validity 196 |
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328 | 328 | | of the prize may be determined. The cost of the video 197 |
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329 | 329 | | lottery game terminal credits shall be one cent, five cents, 198 |
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330 | 330 | | ten cents, or twenty -five cents, and the maximum wager 199 |
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331 | 331 | | played per video lottery game shall not exceed five 200 |
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332 | 332 | | dollars. No cash award for the maximum wager played on any 201 |
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333 | 333 | | individual video lottery game shall exceed one thousand 202 |
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334 | 334 | | dollars; 203 |
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335 | 335 | | (2) Operate in a retail establishment that is not also 204 |
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336 | 336 | | licensed to sell liquor, except if the business of the 205 |
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337 | 337 | | establishment is a truck stop where any state or local 206 |
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338 | 338 | | ordinance prohibits the sale of intoxicating liquor; 207 |
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339 | 339 | | (3) Operate more than five video lottery game 208 |
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340 | 340 | | terminals at one video lottery game retailer establishment; 209 |
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341 | 341 | | except if the establishment is a veterans' organization, 210 |
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342 | 342 | | fraternal organization, or truck stop, such establishment 211 |
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343 | 343 | | may operate up to ten video lottery game terminals as 212 |
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344 | 344 | | approved by the commission; 213 |
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345 | 345 | | (4) Allow video lottery games to be played at any time 214 |
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346 | 346 | | when the video lotter y game retailer's establishment is 215 |
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347 | 347 | | closed for business. 216 SB 16 12 |
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348 | 348 | | 9. (1) A person under twenty -one years of age shall 217 |
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349 | 349 | | not play video lottery games, and such video lottery game 218 |
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350 | 350 | | terminals shall be under the supervision of a person that is 219 |
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351 | 351 | | at least twenty-one years of age to prevent persons under 220 |
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352 | 352 | | twenty-one years of age from playing video lottery games. 221 |
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353 | 353 | | Video lottery game terminals shall not be visible from areas 222 |
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354 | 354 | | normally occupied by minors and shall be placed within the 223 |
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355 | 355 | | unobstructed line of sight of the sales counter unless 224 |
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356 | 356 | | placed in an enclosed or partially enclosed area that is 225 |
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357 | 357 | | continually monitored by video surveillance. A warning sign 226 |
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358 | 358 | | shall be posted in a conspicuous location where such video 227 |
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359 | 359 | | lottery game terminals are located, containing in red 228 |
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360 | 360 | | lettering at least one -half inch high on a white background 229 |
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361 | 361 | | the following: 230 |
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362 | 362 | | "YOU MUST BE AT LEAST 21 YEARS OF AGE TO PLAY VIDEO LOTTERY 231 |
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363 | 363 | | GAMES" 232 |
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364 | 364 | | In addition to the placement and supervision requirements of 233 |
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365 | 365 | | this subsection, a video lottery game operator s hall provide 234 |
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366 | 366 | | video surveillance in the immediate area of the video 235 |
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367 | 367 | | lottery game retailer's establishment where video lottery 236 |
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368 | 368 | | game terminals are located. Recorded video from such 237 |
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369 | 369 | | surveillance system shall be made available to the 238 |
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370 | 370 | | commission upon reque st and shall be reviewed by video 239 |
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371 | 371 | | lottery game operators as reasonably and specifically 240 |
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372 | 372 | | requested by the commission for any violation of law, rules, 241 |
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373 | 373 | | or regulations governing the conduct of video lottery 242 |
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374 | 374 | | games. A video lottery game operator that fails to review 243 |
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375 | 375 | | such surveillance video and report any known violation of 244 |
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376 | 376 | | law, rules, or regulations governing the conduct of video 245 |
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377 | 377 | | lottery games in conformance with established commission 246 |
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378 | 378 | | procedures may be subject to an administrative fine not to 247 SB 16 13 |
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379 | 379 | | exceed five thousand dollars. Any video lottery game 248 |
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380 | 380 | | retailer that fails to report any known violation of law, 249 |
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381 | 381 | | rules, or regulations governing the conduct of video lottery 250 |
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382 | 382 | | games in conformance with established commission procedures 251 |
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383 | 383 | | may be subject to an adminis trative fine not to exceed five 252 |
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384 | 384 | | thousand dollars. In the event a video lottery game 253 |
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385 | 385 | | operator or retailer is found to have knowingly committed a 254 |
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386 | 386 | | violation governing the conduct of video lottery games, the 255 |
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387 | 387 | | commission may impose an administrative fine no t to exceed 256 |
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388 | 388 | | five thousand dollars, suspend such operator's or retailer's 257 |
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389 | 389 | | license for up to thirty days, or in the case of repeated 258 |
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390 | 390 | | violations revoke such operator's or retailer's license for 259 |
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391 | 391 | | a period of one year. Any video lottery game operator or 260 |
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392 | 392 | | retailer aggrieved by the commission's decision in any 261 |
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393 | 393 | | disciplinary action that results in the suspension or 262 |
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394 | 394 | | revocation of such operator's or retailer's video lottery 263 |
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395 | 395 | | game license may appeal such decision by filing an action in 264 |
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396 | 396 | | circuit court. The commission shall refer a violation of 265 |
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397 | 397 | | the criminal code, with any evidence thereof, to the 266 |
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398 | 398 | | appropriate law enforcement officials. Video lottery game 267 |
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399 | 399 | | retailers shall provide an intrusion detection system 268 |
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400 | 400 | | capable of detecting unauthorized entrance of the vide o 269 |
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401 | 401 | | lottery game retailer's establishment during nonbusiness 270 |
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402 | 402 | | hours and shall report to the commission any unauthorized 271 |
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403 | 403 | | entrance of the video lottery game retailer's 272 |
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404 | 404 | | establishment. Such surveillance and intrusion detection 273 |
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405 | 405 | | system shall meet specificatio ns as defined by the 274 |
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406 | 406 | | commission. 275 |
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407 | 407 | | (2) A video lottery game operator shall post a sign in 276 |
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408 | 408 | | a conspicuous location where such video lottery game 277 |
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409 | 409 | | terminals are located, containing in red lettering at least 278 SB 16 14 |
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410 | 410 | | one-half inch high on a white background a te lephone contact 279 |
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411 | 411 | | number (1-888-BETSOFF) for the problem gambling helpline. 280 |
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412 | 412 | | 10. (1) Video lottery game operators shall pay the 281 |
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413 | 413 | | commission thirty-six percent of the video lottery game 282 |
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414 | 414 | | adjusted gross receipts, which shall be deposited in the 283 |
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415 | 415 | | state lottery fund. The commission shall transfer the 284 |
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416 | 416 | | amount received from the operator from the lottery fund to 285 |
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417 | 417 | | the lottery proceeds fund after administrative expenses 286 |
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418 | 418 | | equal to four percent of the video lottery game adjusted 287 |
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419 | 419 | | gross receipts are paid to the m unicipality where a licensed 288 |
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420 | 420 | | video lottery game retailer maintains an establishment 289 |
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421 | 421 | | licensed for the operation of video lottery game terminals, 290 |
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422 | 422 | | or if such licensed establishment is not located within the 291 |
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423 | 423 | | corporate boundaries of a municipality, then the county 292 |
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424 | 424 | | where such licensed establishment is located to reimburse 293 |
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425 | 425 | | such municipality or county for administrative expenses, and 294 |
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426 | 426 | | any administrative expenses for the commission that are not 295 |
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427 | 427 | | covered by reimbursements from operators are deducted. Net 296 |
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428 | 428 | | proceeds transferred to the lottery proceeds fund shall be 297 |
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429 | 429 | | appropriated to public elementary and secondary education 298 |
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430 | 430 | | and public institutions of higher education with an emphasis 299 |
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431 | 431 | | on programs to promote science, technology, engineering, and 300 |
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432 | 432 | | mathematics (STEM) and programs to promote workforce 301 |
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433 | 433 | | development. 302 |
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434 | 434 | | (2) Video lottery game operators shall retain sixty - 303 |
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435 | 435 | | four percent of the video lottery game adjusted gross 304 |
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436 | 436 | | receipts, a portion of which shall be utilized to pay for 305 |
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437 | 437 | | administrative expenses which sha ll include the cost of the 306 |
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438 | 438 | | centralized computer system, which cost shall be paid by 307 |
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439 | 439 | | video lottery game operators in proportion to the number of 308 |
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440 | 440 | | video lottery game terminals operated and shall not be 309 |
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441 | 441 | | apportioned by the video lottery game operator among video 310 SB 16 15 |
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442 | 442 | | lottery game retailers to which it provides operations. The 311 |
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443 | 443 | | remainder, after the costs of the centralized computer 312 |
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444 | 444 | | system are paid, shall be divided between the video lottery 313 |
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445 | 445 | | game operator and video lottery game retailer as agreed to 314 |
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446 | 446 | | by the video lottery game operator and video lottery game 315 |
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447 | 447 | | retailer under the freely negotiated agreement made under 316 |
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448 | 448 | | subdivision (2) of subsection 7 of this section, unless the 317 |
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449 | 449 | | video lottery game operator and video lottery game retailer 318 |
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450 | 450 | | share the same ownership. 319 |
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451 | 451 | | 11. All revenues received by the commission from 320 |
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452 | 452 | | license fees and any reimbursements associated with the 321 |
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453 | 453 | | administration of the provisions of sections 313.425 to 322 |
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454 | 454 | | 313.435, and all interest earned thereon, shall be 323 |
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455 | 455 | | considered administrative expenses and shall be deposited in 324 |
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456 | 456 | | the state lottery fund. Moneys deposited into the state 325 |
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457 | 457 | | lottery fund from license fees and any reimbursements of 326 |
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458 | 458 | | commission administrative expenses to administer sections 327 |
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459 | 459 | | 313.425 to 313.435 shall be considered administrative 328 |
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460 | 460 | | expenses and shall not be considered net proceeds pursuant 329 |
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461 | 461 | | to article III, section 39(b) of the Missouri Constitution. 330 |
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462 | 462 | | Subject to appropriation, up to one percent of such license 331 |
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463 | 463 | | fees and reimbursements deposited to the credit of the state 332 |
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464 | 464 | | lottery fund may be deposited to the credit of the 333 |
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465 | 465 | | compulsive gamblers fund created under section 313.842. The 334 |
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466 | 466 | | remainder of the money deposited in the state lottery fund 335 |
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467 | 467 | | from video lottery game license fees and any reimbursements 336 |
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468 | 468 | | of commission administrative e xpenses to enforce sections 337 |
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469 | 469 | | 313.425 to 313.435 shall, subject to appropriation, be used 338 |
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470 | 470 | | for administrative expenses associated with supervising and 339 |
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471 | 471 | | enforcing the provisions of sections 313.425 to 313.435. 340 |
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472 | 472 | | Any amount of revenues from video lottery game license fees 341 |
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473 | 473 | | and reimbursements of commission administrative expenses not 342 SB 16 16 |
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474 | 474 | | currently needed for the supervising and enforcement of 343 |
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475 | 475 | | sections 313.425 to 313.435 shall be appropriated to the 344 |
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476 | 476 | | veterans' commission capital improvement trust fund created 345 |
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477 | 477 | | in section 42.300. 346 |
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478 | 478 | | 12. The commission may contract with a state law 347 |
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479 | 479 | | enforcement entity to assist in conducting investigations 348 |
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480 | 480 | | into applicants for any video lottery game license and to 349 |
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481 | 481 | | investigate violations by any video lottery game licensee of 350 |
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482 | 482 | | any of the provisions of sections 313.425 to 313.435 or 351 |
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483 | 483 | | state law regulating illegal gambling activities. A video 352 |
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484 | 484 | | lottery game licensee suspected of a violation shall be 353 |
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485 | 485 | | afforded an administrative hearing on the record and any 354 |
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486 | 486 | | action taken to impose a fin e on such licensee, or to 355 |
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487 | 487 | | suspend or revoke the ability of a licensee to offer lottery 356 |
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488 | 488 | | game products for sale, shall be appealed to the 357 |
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489 | 489 | | commission. Any such administrative suspension or 358 |
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490 | 490 | | revocation upheld by the commission may be appealed by the 359 |
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491 | 491 | | video lottery game licensee in a state court of competent 360 |
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492 | 492 | | jurisdiction. 361 |
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493 | 493 | | 13. (1) Any person manufacturing, operating, 362 |
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494 | 494 | | distributing, or in possession of a video lottery game 363 |
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495 | 495 | | terminal not authorized by the commission under the 364 |
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496 | 496 | | provisions of sections 313 .425 to 313.435 as of August 28, 365 |
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497 | 497 | | 2025, shall become compliant with the provisions of sections 366 |
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498 | 498 | | 313.425 to 313.435 within one hundred twenty days of August 367 |
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499 | 499 | | 28, 2025. Any person failing to become compliant within the 368 |
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500 | 500 | | following number of days shall be sub ject to the following 369 |
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501 | 501 | | fines issued by the commission: 370 |
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502 | 502 | | (a) Within one hundred twenty days, two hundred fifty 371 |
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503 | 503 | | thousand dollars; 372 |
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504 | 504 | | (b) Within two hundred forty days, five hundred 373 |
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505 | 505 | | thousand dollars; 374 SB 16 17 |
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506 | 506 | | (c) Within three hundred sixty days, seven hundred 375 |
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507 | 507 | | fifty thousand dollars; and 376 |
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508 | 508 | | (d) Within four hundred eighty days, one million 377 |
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509 | 509 | | dollars. 378 |
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510 | 510 | | (2) In addition to the fines provided in subdivision 379 |
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511 | 511 | | (1) of this subsection, any person failing to become 380 |
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512 | 512 | | compliant after four hundred eighty days may be prosecuted 381 |
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513 | 513 | | under the provisions of chapter 572. The commission shall 382 |
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514 | 514 | | have the power to investigate suspected violations by any 383 |
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515 | 515 | | video lottery game license holder and to refer any 384 |
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516 | 516 | | violations or suspected violations to the appropriate law 385 |
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517 | 517 | | enforcement authority. 386 |
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518 | 518 | | 14. The commission shall adopt rules for the 387 |
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519 | 519 | | implementation of the video lottery game system authorized 388 |
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520 | 520 | | under sections 313.425 to 313.435, including, but not 389 |
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521 | 521 | | limited to, the placement of video lottery game terminals 390 |
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522 | 522 | | within a retail establishment and for the active oversight 391 |
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523 | 523 | | of the conduct of video lottery games. Any rule or portion 392 |
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524 | 524 | | of a rule, as that term is defined in section 536.010 that 393 |
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525 | 525 | | is created under the authority delegated in this section 394 |
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526 | 526 | | shall become effective only if it complies with and is 395 |
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527 | 527 | | subject to all of the provisions of chapter 536 and, if 396 |
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528 | 528 | | applicable, section 536.028. This section and chapter 536 397 |
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529 | 529 | | are nonseverable and if any of the powers vested with the 398 |
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530 | 530 | | general assembly pursuant to chapter 536 to review, to delay 399 |
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531 | 531 | | the effective date, or to disapprove and annul a rule are 400 |
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532 | 532 | | subsequently held unconstitutional, then the grant of 401 |
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533 | 533 | | rulemaking authority and any rule proposed or adopted after 402 |
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534 | 534 | | August 28, 2025, shall be invalid and void. 403 |
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535 | 535 | | 313.431. 1. In order to expedite the orderly 1 |
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536 | 536 | | implementation of the video lottery game system authorized 2 |
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537 | 537 | | under sections 313.425 to 313.435, the commission shall: 3 SB 16 18 |
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538 | 538 | | (1) Issue a request for proposal for the supply and 4 |
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539 | 539 | | operation of a centralized computer system for video lottery 5 |
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540 | 540 | | games within one hundred twenty days of the effective date 6 |
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541 | 541 | | of this section; 7 |
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542 | 542 | | (2) Make license applications for video lottery game 8 |
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543 | 543 | | manufacturers, video lottery game distributors, video 9 |
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544 | 544 | | lottery game operators, video lottery game r etailers, and 10 |
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545 | 545 | | video lottery game handlers available to applicants and 11 |
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546 | 546 | | promulgate any emergency or regular rules and regulations 12 |
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547 | 547 | | needed for the implementation of the video lottery system 13 |
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548 | 548 | | authorized under sections 313.425 to 313.435 within one 14 |
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549 | 549 | | hundred twenty days of the effective date of this section; 15 |
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550 | 550 | | (3) Issue a provisional license to an applicant for a 16 |
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551 | 551 | | video lottery game manufacturer's, video lottery game 17 |
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552 | 552 | | distributor's, video lottery game operator's, video lottery 18 |
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553 | 553 | | game retailer's, or video lot tery game handler's license if 19 |
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554 | 554 | | such applicant satisfies all of the following criteria to 20 |
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555 | 555 | | the satisfaction of the commission: 21 |
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556 | 556 | | (a) The applicant is current on all state taxes; 22 |
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557 | 557 | | (b) The applicant has submitted a complete application 23 |
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558 | 558 | | for licensure as a licensed video lottery game manufacturer, 24 |
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559 | 559 | | video lottery game distributor, video lottery game operator, 25 |
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560 | 560 | | video lottery game retailer, or video lottery game handler, 26 |
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561 | 561 | | which shall be submitted concurrently with the applicant's 27 |
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562 | 562 | | request for a provision al license; 28 |
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563 | 563 | | (c) The applicant has never been convicted of any 29 |
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564 | 564 | | felony or gambling law violation in any jurisdiction; and 30 |
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565 | 565 | | (d) The applicant for a video lottery game retailer's 31 |
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566 | 566 | | license has been issued and holds a valid license to sell 32 |
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567 | 567 | | liquor under chapter 311. 33 SB 16 19 |
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568 | 568 | | A provisional license shall be issued by the commission 34 |
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569 | 569 | | within sixty days from the date on which the application was 35 |
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570 | 570 | | first received unless the commission shows cause that the 36 |
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571 | 571 | | license application is deficient or such applicant does not 37 |
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572 | 572 | | meet the criteria for licensure. 38 |
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573 | 573 | | 2. The commission may issue provisional licenses prior 39 |
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574 | 574 | | to the completion of a background check to an applicant that 40 |
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575 | 575 | | is currently licensed under sections 313.200 to 313.435 or 41 |
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576 | 576 | | sections 313.800 to 313.850; holds or i s an affiliate of any 42 |
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577 | 577 | | entity that holds a license in good standing from a 43 |
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578 | 578 | | regulatory body of another state to operate, handle, or 44 |
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579 | 579 | | maintain video gaming terminals or video lottery game 45 |
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580 | 580 | | terminals that are substantially similar to video lottery 46 |
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581 | 581 | | game terminals authorized under sections 313.425 to 313.435; 47 |
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582 | 582 | | or if such person has been in the business of locating and 48 |
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583 | 583 | | operating amusement games within this state continuously for 49 |
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584 | 584 | | a period of five years. 50 |
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585 | 585 | | 3. A provisional license shall be valid until: 51 |
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586 | 586 | | (1) The commission either approves or denies the 52 |
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587 | 587 | | applicant's application for licensure; 53 |
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588 | 588 | | (2) The provisional license is terminated for a 54 |
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589 | 589 | | violation of this section; or 55 |
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590 | 590 | | (3) One calendar year has passed since the provisional 56 |
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591 | 591 | | license was issued. 57 |
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592 | 592 | | Nothing in this section shall prohibit an applicant for a 58 |
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593 | 593 | | video lottery game manufacturer's, video lottery game 59 |
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594 | 594 | | distributor's, video lottery game operator's, video lottery 60 |
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595 | 595 | | game retailer's, or video lottery game handler's license 61 |
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596 | 596 | | from applying for a r enewal of the provisional license 62 |
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597 | 597 | | issued under this section so long as the commission has not 63 SB 16 20 |
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598 | 598 | | made a final determination to award or deny the applicant a 64 |
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599 | 599 | | license. 65 |
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600 | 600 | | 4. Each applicant shall attest by way of affidavit 66 |
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601 | 601 | | under penalty of perjury that th e applicant is not otherwise 67 |
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602 | 602 | | prohibited from licensure according to the requirements of 68 |
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603 | 603 | | this section. 69 |
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604 | 604 | | 5. All requests for provisional licensure under this 70 |
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605 | 605 | | section shall include the following fee, which is in 71 |
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606 | 606 | | addition to the applicable fee require d for an application 72 |
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607 | 607 | | for licensure and shall be retained by the commission: 73 |
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608 | 608 | | (1) Five thousand dollars for a video lottery game 74 |
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609 | 609 | | manufacturer and video lottery game distributor; 75 |
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610 | 610 | | (2) Five thousand dollars for a video lottery game 76 |
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611 | 611 | | operator; 77 |
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612 | 612 | | (3) Five hundred dollars for a video lottery game 78 |
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613 | 613 | | retailer's establishment; or 79 |
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614 | 614 | | (4) One hundred dollars for a video lottery game 80 |
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615 | 615 | | handler. 81 |
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616 | 616 | | 313.433. 1. Notwithstanding any other provision of 1 |
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617 | 617 | | law to the contrary, participation b y a person, firm, 2 |
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618 | 618 | | corporation, or organization in any aspect of the state 3 |
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619 | 619 | | lottery under sections 313.425 to 313.435 shall not be 4 |
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620 | 620 | | construed to be a lottery or gift enterprise in violation of 5 |
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621 | 621 | | section 39 of article III of the Constitution of Missouri. 6 |
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622 | 622 | | 2. The sale of lottery tickets, shares, or lottery 7 |
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623 | 623 | | game plays using a video lottery game terminal under 8 |
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624 | 624 | | sections 313.425 to 313.435 shall not constitute a valid 9 |
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625 | 625 | | reason to refuse to issue or renew or to revoke or suspend 10 |
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626 | 626 | | any license or permit issued under the provisions of chapter 11 |
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627 | 627 | | 311. 12 |
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628 | 628 | | 313.435. A municipality may adopt an ordinance 1 |
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629 | 629 | | prohibiting video lottery game terminals within the 2 SB 16 21 |
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630 | 630 | | corporate limits of such municipality within one hundred 3 |
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631 | 631 | | twenty days from the effective date of this act. A county 4 |
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632 | 632 | | commission may, for the unincorporated area of the county, 5 |
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633 | 633 | | adopt an ordinance prohibiting video lottery game terminals 6 |
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634 | 634 | | within the unincorporated area of the county within one 7 |
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635 | 635 | | hundred twenty days from the effective date of this act. 8 |
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636 | 636 | | The commission shall not license video lottery game 9 |
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637 | 637 | | retailers within such area covered by such ordinance. Any 10 |
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638 | 638 | | such municipality or county that has opted to prohibit the 11 |
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639 | 639 | | use of video lottery game terminals to play video lottery 12 |
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640 | 640 | | games may repeal such ordinance and upon such repeal the 13 |
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641 | 641 | | commission may license video lottery game retailers within 14 |
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642 | 642 | | such municipality or county to conduct video lottery games. 15 |
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643 | 643 | | |
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