Read 1st time January 18, 2000, and 1000 copies ordered printed.
ANNE C. WALKER, Chief Clerk
AN ACT
To amend chapter 324, RSMo, relating to professional licensing by adding thereto four new sections relating to amusement machines, with an effective date.
Section A. Chapter 324, RSMo, is amended by adding thereto four new sections, to be known as sections 324.551, 324.553, 324.556 and 324.559, to read as follows:
324.551. 1. As used in sections 324.551 to 324.559, the following terms mean:
(1) "Amusement machine", any machine, device or apparatus which provides amusement, diversion or entertainment, which is coin-operated and operational results of which depend in whole or in part upon the skill of the player, whether or not an award is afforded to a successful player. Such phrase includes any machine, device or apparatus not otherwise excluded by this section and also includes, but is not limited to, such games as radio rifles, miniature football, golf, baseball, hockey, basketball, bumper pool, tennis, shooting galleries, pool tables, bowling, shuffleboard, pinball tables, cranes, video games, claw machines, bowling machines, countertop machines, novelty arcade machines and other miniature games, whether or not a score shows;
(2) "Amusement machine operator", a person engaged in the business to own, buy, sell, rent, lease, trade or furnish to another amusement machines; except that, the phrase shall exclude an individual who owns and operates an amusement machine for personal use and amusement in such individual's private residence and shall exclude a business or organization with respect to any amusement machines owned as of January 1, 2000, but which have never been and are not currently bought, sold, rented, leased, furnished or traded by such business or organization to another person and which are operated exclusively on the premises of such business or organization;
(3) "Award", an immediate right of replay, noncash prizes, toys, merchandise or novelties which shall be located and redeemed solely on the premise where an amusement machine is played. The term shall specifically exclude cash, gift certificates, intoxicating beer and liquor, nonintoxicating beer and tobacco products. The value of a single award shall not exceed the greater of the value of a single play of the amusement machine or the wholesale value of five dollars. The value of an award from an accumulation of successful plays shall not exceed a wholesale value of more than twenty-five dollars;
(4) "Coin-operated", any amusement machine which is operated by placing through a slot, or any kind of opening or container, any coin, slug, token, paper money or other object or article necessary to be inserted before the machine operates or functions, but does not include any machine or device which is classified by the United States government as requiring a federal gaming stamp pursuant to applicable provisions of the Internal Revenue Code;
(5) "Director", the director of the department of revenue;
(6) "Person", any individual, firm, association, company, partnership or corporation; and
(7) "Redemption machine", an amusement machine from which a successful player receives a redeemable award.
2. No person shall act as an amusement machine operator without first obtaining an amusement machine operator license from the director. Such license shall be renewed annually on or before July first of each year. The annual fee for a license to operate less than six amusement machines shall be five hundred dollars. The annual fee for a licensee to operate six machines or more shall be one thousand dollars. The annual fee for a license to operate any number of amusement machines only at carnivals, local or county fairs or the state fair shall be one hundred dollars for each month of such year in which amusement machines are operated. Any person making an initial application for a license after January first of the year shall be charged a prorated amount of such license. A licensed amusement machine operator shall not transfer his or her license number or allow another person to use his or her license number.
3. A person may obtain an amusement machine operator license if such person has the following qualifications:
(1) Such person, if an individual, is at least twenty-one years of age, or such person, if a business, is in part owned by at least one individual who is at least twenty-one years of age;
(2) Such person, if an individual, is currently a resident of this state and has been such continuously for at least one year before the date of such person's application, or, if such person is a business, is in part owned by at least one individual who is currently a resident of this state, has been such continuously for at least one year before the business's application and such individual shall be the party accountable for the collection and reporting of all of the business's state taxes, fees and compliance. The residency requirement shall not apply to a person whose operation of amusement machines is limited exclusively to carnivals, local or county fairs or the state fair and shall not apply to a person who was doing business in Missouri and paying Missouri sales tax on revenues from amusement machines on or before December 31, 1999; and
(3) Such person shall show a Missouri sales tax number and proof that Missouri sales tax has been paid on all business dealings previously undertaken in this state.
4. Any person who acts as an amusement machine operator without first obtaining a license from the director shall be assessed a penalty of up to one hundred dollars for each amusement machine in such person's possession, and the director may seize any amusement machines in such person's possession and initiate or authorize the attorney general to initiate legal proceedings.
324.553. 1. The director shall, based on such information as deemed necessary by the director, annually categorize each amusement machine into one of the three following categories:
(1) Category 1, an amusement machine from which a player receives no right of replay and may or may not receive a score;
(2) Category 2, 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; and
(3) Category 3, an amusement machine from which a successful player receives a score or receives an award of replays or other awards, but because of the amusement machine's adult nature, including such criteria as strong four-letter expletives, graphic depictions of sexual behavior, or violent acts involving human-like characters engaged in combative activity where the death of one of the characters results, shall only be placed at a premise where customers are at least eighteen years of age, or, pursuant to any rules promulgated by the director, may be placed in a premise where customers may be under the age of eighteen years of age if the amusement machine is made unavailable to all those under eighteen years of age or if the amusement machine is only made available to those customers under the age of eighteen years of age who are accompanied by a parent or legal guardian.
2. No premise shall contain more than the greater of four category 3 machines or twenty-five percent of category 3 machines compared to the total number of working category 1, 2 and 3 machines at such premise.
3. The director shall require all licensed amusement machine operators to purchase an annual operator identification tag for each of the operator's amusement machines, regardless of category. Such tag shall meet all specifications set by the director and shall contain the operator's license number and any other information the director may require. Each amusement machine operator shall place such tags on each amusement machine owned or operated by him or her; except that, such tags shall not be placed in a location that would interfere with the playing of the machine.
4. Each amusement machine operator placing a machine at a premise, except for those premises or specially designated areas of a premise where only eighteen year olds or older may enter, shall post in a conspicuous location in the premise, a poster identifying the different types of content in the amusement machines. Each amusement machine operator shall also place a content message or messages placed in a conspicuous place on each amusement machine, in the form of a sticker or stamp, identifying the content of that particular machine. The director shall approve all posters and message stickers or stamps; however, the "Guide to Coin-operated Video Games" poster and "Parental Advisory Disclosure Messages" provided by the Amusement and Music Operators Association, American Amusement Machine Association, and the international Association of Family Entertainment Centers shall be deemed to meet the director's requirements.
324.556. 1. The director is authorized to:
(1) Promulgate any rule necessary to implement sections 324.551 to 324.559;
(2) Define the term "violation" for purposes of sections 324.551 to 324.559;
(3) Issue warnings, probations, assess monetary penalties of up to one hundred dollars per violation and suspend or revoke the license of an amusement machine operator who violates sections 324.551 to 324.559;
(4) Prescribe all forms, applications and licenses; and
(5) Examine premises, books and records of persons applying for an amusement machine operator license or persons licensed as amusement machine operators, including state sales tax records.
2. Any party aggrieved by any action of the director shall have the right to appeal to the administrative hearing commission from any finding, order and decision of the director. Any person or entity who is a party to such a dispute shall be entitled to a hearing before the administrative hearing commission by the filing of a petition with the administrative hearing commission within thirty days after the decision of the director is placed in the United States mail or within thirty days after the decision is delivered, whichever is earlier. The decision of the director shall contain a notice of the right of appeal in substantially the following language:
If you were adversely affected by this decision, you may appeal to the administrative hearing commission. To appeal, you must file a petition with the administrative hearing commission within thirty days after the date this decision was mailed or the date it was delivered, whichever date was earlier. If any such petition is sent by registered mail or certified mail, it will be deemed filed on the date it is mailed; if it is sent by any method other than registered mail or certified mail, it will be deemed filed on the date it is received by the commission. The procedures applicable to the processing of such hearings and determinations shall be those established by chapter 536, RSMo. Decisions of the administrative hearing commission pursuant to this section shall be binding subject to appeal by either party.
3. No rule or portion of a rule promulgated pursuant to the authority of this section shall become effective unless it is promulgated pursuant to the provisions of chapter 536, RSMo.
324.559. There is hereby created within the department of revenue an "Amusement Machine Advisory Board". The board shall be composed of seven members appointed by the director with the sole purpose to advise the director on technical problems, new industry ideas and machines, and the effects of proposed rules pursuant to sections 324.551 to 324.559. Two members shall come from retail establishments where machines are installed and located, and five members shall come from the Missouri amusement machine industry. The board shall meet once a year or more often as deemed necessary by the director. Any costs associated with the meetings, including lodging, travel and food, shall be borne by the members. Terms of the board shall be staggered and determined by the director. The director may, for cause, remove any member from the board.
Section B. Section A of this act shall become effective on July 1, 2001.
Missouri House of Representatives