HB 1562 -- Professional Licensing for Amusement Machine Operators

Sponsor:  Treadway

This bill requires amusement machine operators to obtain
licenses from the Director of the Department of Revenue.  The
license will be renewed annually on or before July 1 of each
year.  The fee for a license to operate fewer than 6 machines is
$500.  The fee for a license to operate 6 or more machines is
$1,000.  A license to operate any number of amusement machines
only at carnivals, local or county fairs, or the state fair
costs $100 for each month of the year the machines are operated.

The bill outlines qualifications for an amusement machine
operator license, including age of at least 21 years; Missouri
residency for at least one year prior to application, with some
exceptions; and proof of payment of Missouri sales tax in
previous business dealings in this state.

A person operating amusement machines without a license incurs a
$100 fine for each amusement machine in his or her possession,
and the Director of the Department of Revenue is authorized to
seize any amusement machine in that person's possession.

The director will annually categorize each amusement machine
into one of 3 categories:

(1)  Category 1 is an amusement machine from which a player
receives no right of replay and may or may not receive a score;

(2)  Category 2 is an amusement machine from which a successful
player receives a score or an award of replays and from which a
successful player may receive other awards; or

(3)  Category 3 is an amusement machine from which a successful
player receives a score or an award of replay or other awards,
but because of the machine's adult nature, including strong
four-letter expletives, graphic sexual behavior depictions, or
violent acts involving human-like characters involved in
combative activity where the death of a character results, will
be placed only in a location where it is available to customers
who are at least 18 years old or who are accompanied by a parent
or legal guardian if under 18 years old, or where the machine is
unavailable to those under 18 years old.

The bill limits one premise to the greater of 4 category 3
machines or 25% of category 3 machines compared to the total
number of working category 1, 2, and 3 machines at the premise.

The director will require all licensed amusement machine
operators to buy an annual operator identification tag.  The
bill requires each operator to post conspicuously a poster
identifying the different types of content in the amusement
machines, except for those premises or specifically designated
areas where only those 18 years old or older may enter.  A
content message sticker or stamp will also be placed on each
machine.

The bill authorizes the director to make necessary rules, define
the term "violation" for purposes of the bill's provisions,
issue warnings and probations, assess penalties of up to $100
per violation, suspend or revoke the license of an operator who
violates the bill's provisions, prescribe forms, applications,
and licenses, and examine premises, books, and records of
applicants for a license or licensees, including state sales tax
records.

An appeal to the Administrative Hearing Commission is authorized
for any aggrieved party, and any order issued by the director
will contain a notice of the right to appeal.

The bill also creates within the Department of Revenue the
Amusement Machine Advisory Board consisting of 7 members
appointed by the director to advise him or her on technical
problems, new industry ideas and machines, and the effects of
proposed rules.  The members will be from retail establishments
where machines are located, with 5 members being from the
Missouri amusement machine industry.  The board will meet at
least once a year, as deemed necessary by the director.  All
costs associated with the meetings will be borne by the board
members.  The director is authorized to remove for cause.

The bill has an effective date of July 1, 2001.