(3) Funds transferred from the state lottery fund or other appropriations pursuant to a cooperative agreement under this section.

7.

The Missouri state highway patrol gambling crimes investigation fund shall be utilized for:

(1) Expenses incurred relating to employing and equipping investigators assigned under this section, except that any funds utilized for these purposes shall be in addition to funds under subsection 2 of section 43.370;

and (2) Expenses for equipment, training, travel, or other personnel costs with a discernible nexus to criminal gambling enforcement or the cooperative agreement under this section.

HCS HB 2989 3 8.

The state treasurer shall be custodian of the Missouri state highway patrol gambling crimes investigation fund.

Notwithstanding the provisions of section 33.080 to the contrary, any moneys remaining in the fund at the end of the biennium shall not revert to the credit of the general revenue fund.

The state treasurer shall invest moneys in the fund in the same manner as other funds are invested.

Any interest and moneys earned on such investments shall be credited to the fund.

9.

Nothing in this section shall be read to give the highway patrol any authority to conduct regulatory compliance activities on behalf of the commission except where expressly provided for.

313.425.

Sections 313.425 to 313.445 shall be known and may be cited as the "Missouri Video Lottery Regulatory Act" and shall provide additional funding for Missouri education programs and additional resources for Missouri municipalities and counties by establishing a licensing and regulatory framework for a system of video lottery game terminals to conduct video lottery games.

313.427.

As used in sections 313.425 to 313.445, the following terms shall mean:

(1) "Adjusted gross gaming revenue", the amount of revenue generated by a video lottery game terminal that is remaining after:

(a) Payment of winnings to players;

and (b) Deduction by the commission of that amount necessary to pay direct administrative costs for the operation of the central control system, but before deduction of the adjusted gross gaming revenue tax;

(2) "Adjusted gross gaming revenue tax", a tax of thirty-one percent imposed on adjusted gross gaming revenue;

(3) "Central control system", a computer system developed or procured by the commission that connects all video lottery game terminals, redemption terminals, and other necessary equipment using standard industry protocols capable of monitoring activity on a video lottery game terminal, redemption terminal, and other necessary equipment, and that can activate or deactivate a video lottery gaming terminal;

(4) "Commission" or "lottery commission", the state lottery commission appointed by the governor to manage and oversee the lottery under section 313.215;

(5) "Department", the Missouri department of revenue;

(6) "Municipality and county administration tax", a tax of three percent imposed on adjusted gross gaming revenue;

(7) "Net terminal income", the amount of adjusted gross gaming revenue remaining after deduction of the gross gaming revenue tax and municipality and county administration tax, which shall be divided equally between the video lottery game operator and the video lottery game retailer;

HCS HB 2989 4 (8) "Person", an individual, partnership, corporation, or limited liability company;

(9) "Use agreement", a contract executed by and between a video lottery game operator and a video lottery game retailer, approved by the commission containing minimum terms and conditions determined by the commission establishing the right of the video lottery game operator to place and operate video lottery game terminals on the premises of a video lottery game retailer;

(10) "Video lottery game", any game approved by the commission for play on a video lottery game terminal;

(11) "Video lottery game distributor", a person licensed by the commission who distributes video lottery games, video lottery game terminals, redemption terminals, ancillary equipment, or parts and components for video lottery gaming terminals approved by the commission for sale to video lottery game distributors or video lottery game operators;

(12) "Video lottery game handler", a person licensed by the commission and employed by a video lottery game operator to handle, place, operate, and service video lottery game terminals, redemption terminals, and ancillary equipment;

(13) "Video lottery game manufacturer", a person licensed by the commission who manufactures video lottery games, video lottery game terminals, redemption terminals, ancillary equipment, or parts and components for video lottery game terminals or video lottery games approved by the commission for sale to video lottery game operators and video lottery game distributors;

(14) "Video lottery game operator", a person licensed by the commission who owns, rents, or leases video lottery games and video lottery game terminals for placement and operation at the business premises of a licensed video lottery game retailer;

(15) "Video lottery game redemption terminal" or "redemption terminal", the collective hardware, software, and other ancillary equipment approved by the commission used to redeem a video lottery game ticket for cash;

(16) "Video lottery game retailer", a person licensed by the commission to enter into use agreements with video lottery game operators for the placement of video lottery game terminals at the business premises of the licensed video lottery game retailer who meets the requirements of a lottery game retailer under section 313.260.

No person with a primary purpose of providing entertainment, activities, or educational services to anyone under the age of twenty-one shall be licensed as a video lottery game retailer;

(17) "Video lottery game terminal", any device that, through an electronic, mechanical, or electromechanical process, including through the use of any application, HCS HB 2989 5 software, or other system that accepts legal tender, credits or tickets, or forms of digital currency to play, and through which is used to generate a prize of money or form of credit that can be redeemed for money or another form of monetary payment that is presented to the player by a set or combination of alphanumeric symbols or lines of symbols that determine the amount of the prize, regardless of the operating system that determined the prize;

(18) "Video lottery game terminal credit", credits either purchased or won on a video lottery game terminal that may be used to play video lottery games or be converted into a video lottery game ticket;

(19) "Video lottery game ticket", a document printed or provided electronically by a video lottery game terminal at the conclusion of any video lottery game play or series of plays that may be redeemed for cash at a redemption terminal located on the premises of the video lottery game retailer, or that may be reinserted into a video lottery game terminal for video lottery game play on the premises of the video lottery game retailer where such ticket was issued.

313.429.

1.

(1) The commission shall implement a system of video lottery game terminals and issue licenses to video lottery game manufacturers, video lottery game distributors, video lottery game operators, video lottery game handlers, and video lottery game retailers;

provided, however, that:

(a) No person licensed as a video lottery game manufacturer or a video lottery game distributor shall be issued a license as a video lottery game operator or video lottery game retailer;

(b) No person licensed as a video lottery game operator shall be issued a license as a video lottery game manufacturer, video lottery game distributor, or video lottery game retailer;

(c) No person licensed as a video lottery game retailer shall be issued a license as a video lottery game manufacturer, video lottery game distributor, or video lottery game operator.

(2) Nothing in this subsection shall prevent a video lottery game manufacturer or a video lottery gaming distributor from being licensed as both a video lottery game manufacturer and a video lottery game distributor.

Nothing in this subsection shall prevent a video lottery game manufacturer or a video lottery game distributor from contracting with the commission to provide or operate the central control system.

(3) The commission shall not authorize or allow a single video lottery game manufacturer or video lottery game distributor as the sole or exclusive manufacturer or distributor of video lottery game terminals, video lottery games, or redemption terminals in Missouri.

HCS HB 2989 6 (4) The commission shall ensure that the video lottery game system authorized by sections 313.425 to 313.437 shall allow for multiple video lottery game manufacturers, video lottery game distributors, video lottery game operators, and video lottery game retailers to encourage private sector investment and job opportunities for Missouri citizens.

2.

Video lottery game terminals and video lottery games shall meet independent testing standards approved by the commission, as tested by one or more licensed independent test labs.

The commission shall promulgate rules for minimum standards for video lottery game terminals, video lottery games, and redemption terminals.

Such minimum standards shall include:

(1) Video lottery game terminals shall conform to all requirements of federal law and regulations, including FCC Class A Emission Standards;

(2) Video lottery game terminals and video lottery games shall theoretically pay out a mathematically demonstrable percentage during the expected lifetime of the terminal of all amounts played, which shall not be less than eighty percent.

The commission shall establish a maximum payout percentage for approved models by rule.

Video lottery game terminals that may be affected by skill shall meet this standard when using a method of play that will provide the greatest return to the player over a period of continuous play;

(3) Video lottery game terminals shall use a random number generator computer, software, or similar random selection process to generate and produce an independent and random outcome of each play of a video lottery game.

The random selection process shall meet ninety-nine percent confidence limits using a standard chi- squared test for goodness of fit;

(4) Video lottery game terminals shall display an accurate representation of the video lottery game outcome;

(5) Video lottery game terminals shall not automatically alter pay tables or any function of the video lottery game terminal based on internal computation of hold percentage or have any means of manipulation that affects the random selection process or probabilities of winning a game;

(6) Video lottery game terminals shall not be adversely affected by static discharge or other electromagnetic interference;

(7) Video lottery game terminals shall, while in an idle state or on demand, be capable of detecting and displaying "power reset", "door open", and "door just closed";

(8) Video lottery game terminals shall have the capacity to display complete play history including, but not limited to, outcome, intermediate play steps, credits available, HCS HB 2989 7 bets placed, credits paid, and credits cashed out, for the most recent game played and ten games played immediately prior thereto;

(9) The theoretical payback percentage of a video lottery game terminal shall not be capable of being changed without making a hardware or software change in the video lottery game terminal, either on site or through the central control system;

(10) Video lottery game terminals shall be designed so that replacement of parts or modules required for normal maintenance does not necessitate replacement of the electromechanical meters;

(11) Video lottery game terminals shall have one or more mechanisms that accept cash in the form of bills and accepting tickets.

The mechanisms shall be designed to prevent obtaining credits without paying by stringing, slamming, drilling, or other means.

If such attempts at physical tampering are made, the video lottery game terminal shall suspend itself from operating until reset;

(12) Video lottery game terminals shall have accounting software that keeps an electronic record of information including, but not limited to, total cash inserted, value of winning tickets claimed by players, total credits played, total credits awarded by a video lottery game terminal, and payback percentage credited to players of each video lottery game;

(13) Video lottery game terminals shall be capable of issuing and accepting tickets for play, commonly known as "ticket-in ticket-out".

Video lottery game terminals shall not directly dispense anything of value except for tickets representing credits purchased or won on a video lottery game terminal.

The ticket shall indicate the total amount of award, the time of day in a twenty-four-hour format showing hours and minutes, the date, the video lottery game terminal serial number, the sequential number of the ticket, and an encrypted validation number from which the validity of the prize may be determined;

(14) Video lottery game terminals and redemption terminals shall be connected to the central control system approved by the commission.

The commission shall provide licensed video lottery game operators with the necessary protocols to connect video lottery game terminals to the central control system after such video lottery game terminals have been approved by the commission.

No video lottery game terminal shall be placed in operation without first connecting to the central control system and shall remain connected to the central control system at all times a video lottery game terminal is made available for play;

(15) The commission shall adopt rules to identify the location, by municipality and county, of each video lottery game terminal being operated in the state and connected to the central control system.

The commission shall adopt rules to maintain a HCS HB 2989 8 current list of such information, and shall provide said list to the department of revenue to ensure accurate taxation and reporting;

and (16) No device that was previously determined to be an illegal gambling machine by the commission shall be licensed as a video lottery game terminal.

3.

(1) The commission shall impose an initial nonrefundable administrative license application fee that shall be submitted when the application is filed and deposited in the state lottery fund as follows:

(a) For video lottery game manufacturers and video lottery game distributors, twenty-five thousand dollars;

(b) For video lottery game operators, one hundred thousand dollars;

(c) For video lottery game retailer establishments, one thousand dollars for each video lottery game retailer establishment;

and (d) For video lottery game handlers, one hundred dollars.

(2) The initial license shall be for a period of one year.

Thereafter, renewals of such license shall be for a period of four years.

Subsequent to the initial one-year period, anyone licensed pursuant to this subsection shall submit an annual nonrefundable fee to be deposited in the state lottery fund.

Such fee shall be paid as follows:

(a) Five thousand dollars for video lottery game manufacturers and video lottery game distributors;

(b) Fifty thousand dollars for video lottery game operators;

(c) One hundred dollars for video lottery game handlers;

and (d) One thousand dollars for each establishment owned and operated by a video lottery game retailer.

(3) In addition to any other fees imposed by sections 313.425 to 313.445, an annual nonrefundable administrative fee of one thousand two hundred fifty dollars shall be paid to the department for each video lottery game terminal placed in service, and shall be deemed an administrative fee on the device itself and not on the operation or play thereof.

Such annual administrative fee shall be equally divided and paid by the video lottery game operator and the video lottery game retailer to the department once per year.

The department shall remit two hundred dollars of the fee to the commission, which shall deposit such fee in the state lottery fund.

The remaining eight hundred dollars of such fee shall be remitted to the illegal gaming enforcement fund, which the state treasurer shall pay as follows:

(a) One hundred dollars shall be transmitted to the Missouri state highway patrol for use in investigations and enforcement of sections 313.425 to 313.445;

HCS HB 2989 9 (b) Fifty dollars shall be transmitted to the Missouri attorney general's office for use in illegal gambling enforcement;

(c) Fifty dollars shall be transmitted to the Missouri prosecutors pension fund;

(d) Four hundred dollars shall be transmitted to the Missouri veterans commission;

(e) Two hundred dollars shall be transmitted to the municipality in which the video lottery game terminal is located, except that if a video lottery game terminal is located in an unincorporated area of a county, the two hundred dollars shall be transmitted to the county in which the video lottery game terminal is located;

and (f) Two hundred fifty dollars shall be transmitted to the developmental disability community support fund.

(4) No license shall be issued to any person who has been convicted of a felony or any crime involving illegal gambling.

(5) A licensee shall notify the commission of any change relating to the status of its license or any other information contained in the application materials on file with the commission.

4.

Licensed video lottery game operators and licensed video lottery game retailers shall enter into a use agreement for the placement of video lottery game terminals.

The video lottery game operator shall provide a true and accurate copy of the executed use agreement to the video lottery game retailer within ten days after execution of the use agreement by the parties.

The use agreement shall be on a form approved by the commission.

The use agreement shall contain commercially reasonable terms including, but not limited to, the following minimum requirements:

(1) An equal division of net terminal income between a video lottery game operator and video lottery game retailer;

(2) A requirement that the video lottery game operator is to be responsible for collection, remittance, and disbursement of gross gaming revenue, gross gaming revenue tax, and net terminal income;

(3) An affirmative statement that no inducement was offered, proposed, or accepted by either the video lottery game operator or the video lottery game retailer regarding the placement or operation of video lottery game terminals at the premises of the video lottery game retailer;

(4) An indemnity and hold harmless provision on behalf of the state, the commission, and its agents relative to any cause of action arising out of the use agreement between a video lottery game operator and a video lottery game retailer;

(5) A prohibition on the assignment of the agreement from or to any person except from a video lottery game operator to another video lottery game operator or HCS HB 2989 10 from a video lottery game retailer to another video lottery game retailer, and providing that all use agreements shall be otherwise freely assignable;

(6) A release of the video lottery game retailer from any continuing contractual obligation to the video lottery game operator if the video lottery game operator has its license revoked or denied, has its renewal denied, or surrenders its license;

(7) A provision that the parties agree to modify the agreement to the extent necessary to comply with a change in Missouri law or commission rules;

(8) A term not to exceed five years and shall not contain any automatic renewal or extension of any such term;

and (9) Provisions approved by the commission.

5.

No video lottery game retailer shall enter into a use agreement with more than one video lottery game operator at any time.

Only upon termination of a use agreement with a video lottery game operator may a video lottery game retailer enter into a new use agreement with a different video lottery game operator.

6.

All licensees shall remain subject to all income taxes, property taxes, sales taxes, and use taxes lawfully assessed by this state, or any municipality, county, or other political subdivision of this state;

provided, however, that a municipality, county, or other political subdivision of this state shall not impose, levy, collect, or assess any license requirement, tax, or fee including, but not limited to, any permit tax or fee, sticker fee, occupation tax or fee, amusement tax or fee, or taxes or fees upon the play, use, ownership, lease, placement, operation, repair, service, transportation, or storage of any video lottery game terminal, video lottery game, video lottery game manufacturer, video lottery game distributor, video lottery game operator, or video lottery game retailer.

Nothing in this section shall prevent a political subdivision from levying a fee upon a video lottery game retailer of not more than two hundred fifty dollars, and such fee shall be divided equally between the video lottery game retailer and the video lottery game operator;

provided, however, that all revenues generated from the levying of such fees shall be deposited into the general revenue fund of the political subdivision.

7.

(1) Video lottery game terminals shall be inspected and approved by the commission prior to being sold, leased, or transferred.

(2) Video lottery game manufacturers and video lottery game distributors may buy, sell, or lease new or refurbished video lottery game terminals to and from video lottery game manufacturers, video lottery game distributors, and video lottery game operators.

(3) Redemption terminals shall meet independent testing standards approved by the commission.

The commission may approve redemption terminals that have been HCS HB 2989 11 approved by another state for operation for use as part of that state's video lottery game system or similar system.

8.

(1) Licensed video lottery game operators:

(a) May buy, lease, or rent video lottery game terminals from licensed video lottery game manufacturers or distributors;

(b) May handle, place, service, and maintain video lottery game terminals;

and (c) Shall connect all video lottery game terminals to the central control system approved by the commission.

(2) All video lottery game tickets shall be redeemed using a redemption terminal.

Such redemption terminal shall be located within a video lottery game retailer's establishment in direct proximity to such video lottery game terminals.

Video lottery game operators shall pay the commission thirty-two percent of any unclaimed cash prize associated with each video lottery game ticket that has not been redeemed within one hundred eighty days of issuance.

(3)Avideo lottery game operator shall not, directly or indirectly, lease real estate to a video lottery game retailer.

No lease of real property to a video lottery game retailer may contain a provision requiring any sharing or splitting of net terminal income between the lessor and the lessee, or any method of rent calculation using a percentage of net terminal income, or any other similar provision or method for the determination or calculation of any rent, concession, or other charge by a lessor to a lessee.

Video lottery game retailers shall submit true, accurate, and complete leases or similar agreements regarding the premises of the video lottery game retailer to the commission with their license application and annual license renewal application.

(4)Only a video lottery game operator or an operator's employee may negotiate and enter into a use agreement with a video lottery game retailer for the initial or continued placement of video lottery game terminals.

Video lottery game operators and video lottery game retailers shall not offer, propose, or accept anything of value, other than the equal division of net terminal income in exchange for the execution of a use agreement.

No video lottery game operator or video lottery game retailer shall pay compensation or any other valuable consideration to any third party for the solicitation, procurement, execution, or delivery of any use agreement with a video lottery game operator or video lottery game retailer, except as approved by the commission.

A video lottery game operator shall not share or split net terminal income with any other video lottery game operator licensee under sections 313.425 to 313.445 or with any other third-party, except as approved by the commission.

The commission shall adopt rules for the sharing or splitting of net terminal income by a video lottery game operator.

HCS HB 2989 12 (5) Any agreement, contract, or arrangement for the initial or continued placement of video lottery game terminals entered into by any person prior to being duly licensed as a video lottery game operator or a video lottery game retailer by the commission shall be invalid.

Only use agreements by and between licensed video lottery game operators and licensed video lottery game retailers shall be deemed valid for the placement and operation of video lottery game terminals.

9.

(1) To combat problem gambling, video lottery game operators shall allow players to be self-excluded from video lottery game play pursuant to rules adopted by the commission.

Any person that has been self-excluded is guilty of trespassing in the first degree pursuant to section 569.140 if such person enters a designated video lottery gaming area as defined by rules and regulations created by the Missouri lottery commission pursuant to subsection 16 of section 313.429.

(2) Video lottery game operators may establish a player rewards systems approved by the commission.

No player shall be required to enroll in a rewards program offered by a video lottery game operator as a condition to play video lottery games.

10.

(1) Video lottery game terminals shall not directly dispense anything of value except for video lottery game tickets.

Tickets shall be dispensed by pressing the ticket dispensing button on the video lottery game terminal at the end of any video lottery game play or series of plays.

The value of video lottery game terminal credits shall be determined by the commission.

Video lottery game operators shall not be required to pay out coins for prizes to be paid to a player having a value less than one dollar, and redemption terminals shall not be required to dispense coins.

Any prize to be paid to a player having a value less than one dollar shall be dispensed to the player from the redemption terminal in the form of a ticket, which may be inserted into a video lottery game terminal for play.

The commission may adopt rules allowing redemption terminals to allow a player to donate prizes to be paid to a player having a value of less than one dollar to charitable organizations.

(2) The maximum wager for a single video lottery game shall not exceed four dollars.

Notwithstanding the provisions of subsection 5 of section 313.321 to the contrary, the maximum prize won from a single wager for video lottery game play shall not exceed one thousand one hundred ninety-nine dollars or no more than one dollar less than the minimum amount required to report gambling winnings from slot machines pursuant to IRS Form W2G and IRS Form 5754.

(3) No more than eight video lottery game terminals may be placed at the business premises of a video lottery game retailer.

A political subdivision may further restrict the number of video lottery game terminals at each retail business to not more HCS HB 2989 13 than five video lottery terminals, provided that such a restriction shall not extend to high volume convenience stores that primarily serve the trucking industry.

(4) The play, use, or operation of video lottery games and video lottery game terminals shall not be advertised to the public through any means including, but not limited to, media outlets, social media advertising, direct mail, broadcast media, telephone solicitation, billboards, or other signage.

The commission may adopt rules allowing for limited signage to be displayed at a video lottery game retailer's premises.

The advertising prohibition contained in this subdivision shall apply to all licensees including, but not limited to, video lottery game manufacturers, video lottery game distributors, video lottery game operators, video lottery game retailers, and video lottery game handlers.

Notwithstanding any other provision of law to the contrary, there is no prohibition or restriction on direct or indirect marketing or advertising of video lottery games, video lottery game terminals, or redemption terminals by video lottery game manufacturers, and video lottery game distributors to video lottery game operators and video lottery game retailers.

Video lottery game operators may advertise, promote, and market to players of video lottery games and video lottery game terminals through player rewards programs approved by the commission.

(5) Video lottery games shall not be played at any time when the video lottery game retailer's establishment is closed for business.

11.

(1) No person under twenty-one years of age shall play video lottery games or video lottery game terminals.

The video lottery game retailer shall be responsible for preventing persons under twenty-one years of age from playing video lottery games or video lottery game terminals.

(2) Video lottery game operators shall install, maintain, and operate video surveillance systems within the immediate area of the video lottery game retailer's establishment where video lottery game terminals and redemption terminals are located.

The surveillance system may also cover the perimeter of the video lottery game retailer's premises.

The video lottery game operator shall maintain video footage for thirty days and shall, upon request, provide such footage to the commission.

Video footage taken by the video surveillance system shall:

(a) Be deleted and expunged after the thirty day period described in this subdivision;

and (b) Not make use of any facial recognition technology or software.

(3) The commission shall adopt rules regarding the investigation and enforcement of violations of law, rule, or regulation governing the conduct of video lottery games in conformance with established commission procedures, which may include fines, suspension, and revocation of licenses issued by the commission.

HCS HB 2989 14 (4) A video lottery game operator shall post a sign in a conspicuous location where such video lottery game terminals are located containing, in red lettering at least one inch high on a white background, a telephone contact number (1-888-BETSOFF) for the problem gambling helpline, or other similar information as determined by the commission.

The commission may adopt rules for the mandatory posting of signage regarding problem gaming, underage gaming, and other consumer protection measures.

(5) Pursuant to rules adopted by the department and the commission, a video lottery game operator shall be responsible for:

(a) Paying prizes won from video lottery game play to winning players;

(b) Collecting all funds from video lottery game terminals;

(c) Depositing all funds collected from video lottery game terminals into a separate bank account maintained by the video lottery game operator to allow for monthly electronic fund transfers by the commission and the department all applicable adjusted gross gaming tax and municipality and county administration tax;

(d) After such transfer to the commission and the department, remitting to the video lottery game retailer its share of net terminal income on not less than a monthly basis.

The video lottery game operator may thereafter transfer its share of net terminal income to its business operations account;

and (e) The commission may adopt rules allowing for the division of net terminal income between the video lottery game operator and the video lottery game retailer on a basis other than an equal division of net terminal income.

(6) A video lottery game retailer or operator shall place a conspicuous warning label or sticker on each video lottery game terminal at each video lottery game retailer location in red lettering at least one inch high on white background that reads, "WARNING:

GAMBLING CAN BE ADDICTIVE".

12.

The adjusted gross gaming revenue tax shall be imposed on adjusted gross gaming revenue.

Video lottery game operators shall collect and remit the adjusted gross gaming revenue tax, which shall be deposited in the state lottery fund pursuant to rules adopted by the commission.

The commission shall use and transmit such funds as follows:

(1) The commission shall retain an amount from the adjusted gross gaming revenue tax necessary to cover direct administrative expenses for the regulation and enforcement of the video lottery game program that are not covered by license fees or reimbursements;

(2) Subject to appropriations, all remaining funds after administrative expenses and payment of prizes shall be transferred to the lottery proceeds fund and shall be HCS HB 2989 15 appropriated equally to public elementary and secondary education and public institutions of higher education as follows:

(a) Twenty percent of such funds shall be appropriated to the "Public Elementary and Secondary School Construction and Rehabilitation Grant Fund" which is hereby created.

The state treasurer shall administer the fund, and the department of elementary and secondary education shall establish criteria for the distribution of such funds by rule.

Notwithstanding the provisions of section 33.080 to the contrary, any moneys remaining in the fund at the end of the biennium shall not revert to the credit of the general revenue fund.

Any interest and moneys earned on such investments shall be credited to the fund;

and (b) The public elementary and secondary school construction and rehabilitation grant fund shall consist of all moneys transferred to it under this subsection, and all moneys otherwise appropriated or donated to it.

The funding provided for in this subdivision shall supplement, and not supplant, any education funding otherwise appropriated by the general assembly.

The moneys in the public elementary and secondary school construction and rehabilitation grant fund may be used for:

a.

Public school construction or renovations;

and b.

Enhancing credit and reducing the interest costs associated with school district general obligation bonds funded by school bond property tax levies issued for construction, capital improvements, renovations or rehabilitation.

13.

The municipality and county administration tax shall be imposed on adjusted gross gaming revenue.

Video lottery game operators shall remit the municipality and county administration tax to the department.

The department shall distribute such funds to the municipality or county identified by the commission pursuant to subdivision (15) of subsection 2 of this section.

The municipality or county shall receive the proceeds of the municipality and county administration tax generated by the video lottery game terminals located within the jurisdiction of the identified municipality or county to be used for providing services necessary for the safety of the public visiting a video lottery game retailer's location.

All revenue owed to the municipality or county shall be deposited and distributed to the municipality or county in accordance with rules and regulations created by the department.

All the funds deposited with any municipality or county shall not be considered state funds and shall be deposited in the municipality or county's general revenue fund to be expended as provided for in this section.

14.

All revenues received by the commission from license fees and any reimbursements associated with the administration of the provisions of sections 313.425 to 313.445, and all interest earned thereon, shall be used for administrative expenses and HCS HB 2989 16 shall be deposited in the state lottery fund.

Moneys deposited into the state lottery fund from license fees and any reimbursements of commission administrative expenses to administer sections 313.425 to 313.445 shall not be considered net proceeds under Article III, Section 39(b) of the Constitution of Missouri.

Subject to appropriation, up to one percent of such license fees shall be deposited to the credit of the compulsive gamblers fund created under section 313.842.

15.

The commission may contract with a state law enforcement entity to assist in conducting background investigations of video lottery game license applicants, and for the enforcement of sections 313.425 to 313.445.

(1) The Missouri lottery commission may require that fingerprint submissions be made as part of an application seeking licensure for a video lottery game manufacturer, video lottery game distributor, video lottery game operator, video lottery game handler, or video lottery game retailer as defined in section 313.427.

(2) If the Missouri lottery commission requires that fingerprint submission be made as part of such application, the Missouri lottery commission shall require applicants to submit fingerprints to the Missouri state highway patrol for the purpose of conducting a state and federal fingerprint-based criminal history background check.

(3) The fingerprints and any required fees shall be sent to the Missouri state highway patrol's central repository.

The fingerprints shall be used for searching the state criminal records repository and shall also be forwarded to the Federal Bureau of Investigation for a federal criminal records search under section 43.540.

The Missouri state highway patrol shall notify the Missouri lottery commission of any criminal history record information or lack of criminal history record information discovered on the individual.

Notwithstanding the provisions of section 610.120 to the contrary, all records related to any criminal history information discovered shall be accessible and available to the Missouri lottery commission.

16.

The commission shall adopt rules for the implementation of the video lottery game system authorized under sections 313.425 to 313.445, including, but not limited to, a designation of distinct area of the business or building not accessible to anyone under the age of twenty-one as the video lottery gaming area that is divided from the primary business operation area of the video lottery game retailer's premises where all video lottery game terminals and redemption terminals shall be placed and operated and all gaming activity shall be conducted.

Any rule or portion of a rule, as that term is defined in section 536.010, that is created under the authority delegated in this section shall become effective only if it complies with and is subject to all of the provisions of chapter 536 and, if applicable, section 536.028.

This section and chapter 536 are nonseverable and if any of the powers vested with the general assembly pursuant to chapter 536 to HCS HB 2989 17 review, to delay the effective date, or to disapprove and annul a rule are subsequently held unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted after August 28, 2026, shall be invalid and void.

313.431.

In order to expedite the orderly implementation of the video lottery game system authorized under sections 313.425 to 313.445, the commission shall:

(1) Contract for the supply and operation of a central control system no later than ninety days after the effective date of sections 313.425 to 313.445;

(2) Make license applications for video lottery game manufacturers, video lottery game distributors, video lottery game operators, video lottery game retailers, and video lottery game handlers available to applicants no later than thirty days after the effective date of sections 313.425 to 313.445;

(3) Accept applications and promulgate any emergency rules or regular rules and regulations needed for the implementation of the video lottery game system authorized under sections 313.425 to 313.445 no later than one hundred twenty days after the effective date of sections 313.425 to 313.445;

(4) Begin issuing licenses under sections 313.425 to 313.445 no later than one hundred twenty days after the effective date of this section;

(5) Issue an approved form use agreement no later than ninety days after the effective date of sections 313.425 to 313.445;

(6) Establish a start date when all video lottery game operators may begin soliciting use agreements with video lottery game retailers for the placement of video lottery game terminals.

No video lottery game operator shall solicit use agreements prior to the start date.

Such start date shall be set no more than one hundred eighty days after the effective date of sections 313.425 to 313.445;

(7) Approve or deny any completed video lottery game retailer application or video lottery game operator application no more than ninety days after such application is received by the commission.

The operation of unregulated amusement devices or unregulated gambling devices shall not be the sole cause for denial of a video lottery game retailer license or a video lottery game operator license;

and (8) Establish a date by which the system of video lottery game terminals shall be operational.

The operational date shall be no later than three hundred sixty five days after the effective date of sections 313.425 to 313.445.

313.433.

Notwithstanding any other provision of law to the contrary, participation by a person, firm, corporation, or organization in any aspect of the state lottery under sections 313.425 to 313.445 shall not be construed to be a lottery or gift enterprise in violation of Article III, Section 39 of the Constitution of Missouri.

HCS HB 2989 18 313.435.

1.

A municipality may adopt an ordinance prohibiting video lottery game terminals within the corporate limits of such municipality within one hundred twenty days after the effective date of this act.

Such municipality shall notify the commission of the ordinance within seven days of passage.

A municipality that has adopted such an ordinance may at any time thereafter adopt an ordinance allowing video lottery game terminals within the corporate limits of such municipality, but may not after the passage of such ordinance adopt any subsequent ordinance regarding prohibition of video lottery terminals for ten consecutive years.

A municipality may then only pass an ordinance to prohibit video lottery game terminals not earlier than five years.

2.

A county commission may, for the unincorporated area of the county, adopt an ordinance prohibiting video lottery game terminals within the unincorporated area of the county within one hundred twenty days from the effective date of this act.

Such county shall notify the commission of the ordinance within seven days of passage.

A county commission that has adopted such an ordinance may at any time thereafter adopt an ordinance allowing video lottery game terminals within the unincorporated area of the county, but may not after the passage of such ordinance adopt any ordinance prohibiting video lottery game terminals within the unincorporated area of the county.

3.

Any municipality or county adopting an ordinance that prohibits the licensing of video lottery games shall notify the commission of such action and provide a certified copy of such ordinance to the commission.

Upon receiving such notification and ordinance, the commission shall not license video lottery game retailers within such area covered by such municipal or county ordinance.

4.

If any such municipality or county that has opted to prohibit the use of video lottery game terminals to play video lottery games repeals such ordinance and adopts an ordinance allowing video lottery game terminals within such municipality or county, then such municipality or county shall notify the commission, and the commission may license video lottery game retailers within such municipality or county to conduct video lottery games.

313.437.

1.

Nothing in sections 313.425 to 313.445 shall be construed to prohibit or bar the issuance of any license described therein to an applicant on the basis of that applicant's operation, handling, leasing, licensing, servicing, or placing of machines or devices, except that any video lottery game retailer shall attest, on a form provided by the commission, that the video lottery game retailer does not own or possess any illegal gambling devices, or other machines or devices where the player pays money to play a game of skill or chance which may result in a cash award or prize to the player.

This HCS HB 2989 19 form shall be submitted with a person's application for any license authorized under sections 313.425 to 313.445.

2.

The general assembly, by enacting sections 313.425 to 313.445, intends to enact a comprehensive scheme of statewide regulation, and further intends to preempt any other regulation of the area covered by sections 313.425 to 313.445.

No municipality, county, governmental subdivision, or agency may enact or enforce any law, ordinance, or regulation that regulates, taxes, imposes a fee, or makes any conduct in the area covered by sections 313.425 to 313.445 an offense, or the subject of a criminal or civil penalty or sanction of any kind;

however, nothing in this section shall prevent a political subdivision from prohibiting the hours of operation during which video lottery game terminals may be used for game play during the hours of 1:30 a.m.

and 6:00 a.m.

313.438.

1.

The application form for licensure under sections 313.425 to 313.445 shall be prescribed by the commission and shall contain the following information:

(1) The name, date of birth, and address of the individual or organization;

(2) A statement as to whether the individual or organization has had any previous application refused, or any license revoked or suspended;

(3) A copy of the articles of incorporation and certificate of incorporation of the organization, if applicable;

(4) A sworn statement signed by the individual or chief officer and the secretary of the organization verifying that the statements contained in the application are true;

(5) The name and address of a person authorized to receive service of process on behalf of the organization;

and (6) Such other information deemed necessary by the commission or as the commission may promulgate by regulation.

2.

The commission shall issue, suspend, revoke, and renew licenses under sections 313.425 to 313.445 pursuant to rules and regulations adopted by the commission.

Licensing rules and regulations shall include requirements relating to the financial responsibility of the licensee, the security and efficient operation of the video lottery game, and other matters necessary to protect the public interest and trust in the lottery.

Licensees shall be selected without regard to political affiliation.

3.

The commission shall require every licensee to post a bond, a bonding fee, or a letter of credit in such amount as may be required by the commission, and upon licensure shall prominently display the licensee's license, or a copy thereof, as provided in the rules and regulations of the commission.

4.

Any license issued by the commission shall not be assignable or transferable.

5.

A license shall be revoked upon a finding that the licensee:

HCS HB 2989 20 (1) Has knowingly provided false or misleading information to the commission or its employees;

(2) Has been convicted of any felony;

or (3) Has endangered the security of the lottery.

6.

A license may be suspended, revoked, or not renewed for any of the following causes:

(1) A change of business location;

(2) A delinquency in remitting money owed to the commission;

or (3) Any violation of any rule or regulation adopted pursuant to this section by the commission.

7.

A person who knowingly makes a false statement on an application is guilty of a class A misdemeanor and shall not be eligible for any license by the commission.

8.

A renewal application shall only include any changes in the information required to be submitted with the initial application or such other information required by the commission.

(1) A blank form for application for registration shall be mailed to each person licensed in this state at the person's last known office or residence address.

Failure to receive such application shall not, however, relieve any person of the duty to renew and pay the required fee, nor exempt the person from the penalties provided by this chapter for failure to renew.

(2) If a person licensed, certified, or registered by the commission does not renew such license, such license shall be deemed void.

9.

The commission shall submit fingerprints for any person seeking issuance or renewal of a license issued by the commission, for the purpose of checking the person's prior criminal history when the commission determines a nationwide check is warranted.

The fingerprint cards and any required fees shall be sent to the Missouri state highway patrol's central repository.

The fingerprints shall be used for searching the state criminal history repository and shall also be forwarded to the Federal Bureau of Investigation for the searching of the federal criminal history files under section 43.540.

The patrol shall notify the commission of any criminal history information or lack of criminal history information discovered on the individual.

Notwithstanding the provisions of section 610.120 to the contrary, all records related to any criminal history information discovered shall be accessible and available to the commission.

10.

It is the burden of the applicant to show by clear and convincing evidence the applicant's suitability as to character, experience, and other factors as may be deemed appropriate by the commission.

HCS HB 2989 21 11.

Before a license is granted, the commission shall conduct a thorough investigation of the applicant for a license.

The applicant shall provide information on a form as required by the commission.

12.

Any organization licensed under sections 313.425 to 313.445 that changes any of its officers, directors, or officials during the term of the license shall immediately report the names and addresses of such individuals to the commission, along with a sworn statement of each such individual as required on forms furnished by the commission.

13.

The following persons and organizations shall not be eligible for any license under the provisions of sections 313.425 to 313.445 and shall not participate in the management, conduct, or operation of any video lottery game, video lottery game handler, video lottery game distributor, video lottery game retailer, video lottery game operator, or video lottery game manufacturer:

(1) Any person who has been convicted of a felony;

(2) Any person who has been convicted of or pleaded nolo contendere to any illegal gambling activity or forfeited bond for not appearing while charged with any illegal gambling activity;

(3) Any person the commission has determined, based on the person's prior activities or criminal record, if any, poses a threat to the public interest or to the effective regulation and control of video lottery games, or creates or enhances the dangers of unsuitable, unfair, or illegal practices, methods, or activities in the conduct of video lottery games;

(4) Any firm, organization, or corporation in which a person defined in subdivision (3) of this subsection is an owner, officer, or director, whether compensated or not;

(5) Any firm, organization, or corporation in which a person defined in subdivision (3) of this subsection is to participate in the management or operations of a video lottery game, video lottery game handler, video lottery game distributor, video lottery game manufacturer, video lottery game operator, or video lottery game retailer;

(6) Any person who, at the time of the application for renewal of a license, would not be eligible for such license upon first application.

313.439.

1.

The commission may refuse to issue a license and a licensee shall be subject to the imposition of penalties, suspension or revocation of such license, or other action for any act or failure to act by the licensee or the licensee's agents or employees, that is injurious to the public health, safety, good order, and general welfare of the people of the state of Missouri, or that would discredit or tend to discredit the video lottery operations in the state of Missouri unless the licensee proves by clear and HCS HB 2989 22 convincing evidence that the licensee is not guilty of such action.

The commission shall notify the applicant or licensee in writing of the reasons for the refusal or discipline, and shall advise the applicant or licensee of their right to file a complaint with the administrative hearing commission as provided by chapter 621.

If no written request for a hearing is received by the administrative hearing commission within the thirty-day period, the right to seek review of the commission's decision shall be considered as waived.

The commission shall take appropriate action against any applicant or licensee who violates the law or the rules and regulations of the commission.

Without limiting other provisions of sections 313.425 to 313.445, the following acts or omissions may be grounds for such discipline:

(1) Failing to comply with or make provision for compliance with the provisions of sections 313.425 to 313.445, the rules and regulations of the commission, or any federal, state, or local law or regulation;

(2) Failing to comply with any rule, order, or ruling of the commission or its agents pertaining to sections 313.425 to 313.445;

(3) Receiving or purchasing goods or services from a person or business entity who does not hold a license issued pursuant to sections 313.425 to 313.445, but who is required to hold such license by the provisions of sections 313.425 to 313.445 or the rules and regulations of the commission;

(4) Associating with, either socially or in business affairs, or employing persons of notorious or unsavory reputation or who have extensive police records, or who have failed to cooperate with any officially constituted investigatory or administrative body and would adversely affect public confidence and trust in gaming;

(5)Use of fraud, deception, misrepresentation, or bribery in securing any license issued pursuant to the provisions of sections 313.425 to 313.445 or impersonation of any person holding a license or allowing a person to use the person's license;

(6) Obtaining or attempting to obtain any fee, charge, or other compensation by fraud, deception, or misrepresentation;

(7) Incompetence, misconduct, gross negligence, fraud, misrepresentation, or dishonesty in the performance of the functions or duties regulated by the provisions of sections 313.425 to 313.445;

(8) Revocation, suspension, restriction, modification, limitation, reprimand, warning, censure, probation, or other final disciplinary action against the licensee or applicant for a license by another state, territory, federal agency, or country, whether or not voluntarily agreed to by the licensee or applicant, including, but not limited to, the denial of licensure, or surrender of the license;

HCS HB 2989 23 (9) A person is finally adjudged incapacitated or disabled by a court of competent jurisdiction;

(10) Issuance of a license based upon a material mistake of fact;

(11) Knowingly making a false statement, orally or in writing, to the commission.

2.

The commission may cause a complaint to be filed with the administrative hearing commission as provided by chapter 621 against any applicant or holder of any license required by sections 313.425 to 313.445, or against any person who has failed to renew or has surrendered the person's license.

3.

After the filing of such complaint before the administrative hearing commission, the proceedings shall be conducted in accordance with the provisions of chapter 621.

Upon a finding by the administrative hearing commission that the grounds of this section for disciplinary action are met, the commission may, singly or in combination, warn, censure, or place the person named in the complaint on probation on such terms and conditions as the commission deems appropriate for a period not to exceed ten years, or may suspend the person's license for a period not to exceed three years, or restrict or limit the person's license for an indefinite period of time, or revoke the person's license or administer a public or private reprimand, or deny the person's application for a license, or permanently withhold issuance of a license.

313.440.

The administration of sections 313.425 to 313.445 shall be vested in the commission which shall have power to adopt and enforce rules and regulations to regulate and license the management, operation, and conduct of video lottery games and participants therein and to properly administer and enforce the provisions of sections 313.425 to 313.445.

Any rule or portion of a rule, as that term is defined in section 536.010, that is created under the authority delegated in this section shall become effective only if it complies with and is subject to all of the provisions of chapter 536 and, if applicable, section 536.028.

This section and chapter 536 are nonseverable and if any of the powers vested with the general assembly pursuant to chapter 536 to review, to delay the effective date, or to disapprove and annul a rule are subsequently held unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted after August 28, 2026, shall be invalid and void.

313.441.

The commission shall employ such professional, clerical, technical, and administrative personnel as may be necessary to carry out the provisions of sections 313.425 to 313.445.

No person shall be employed by the lottery who has been convicted of a felony.

Any person employed by the lottery in a management or policy-making position shall be a resident of this state or become a Missouri resident within six months of the person's appointment.

Personnel shall be employed without regard to any HCS HB 2989 24 political affiliation.

Personnel shall receive a salary comparable to the salaries received by other state employees doing comparable duties.

313.442.

1.

The commission may administer oaths, subpoena witnesses, issue subpoenas duces tecum, and require production of documents and records.

Subpoenas, including subpoenas duces tecum, shall be served by a person authorized to serve subpoenas of courts of record.

In lieu of requiring attendance of a person to produce original documents in response to a subpoena duces tecum, the commission may require sworn copies of such documents to be filed with it or delivered to its designated representative.

2.

The commission may enforce its subpoenas, including subpoena duces tecum, by applying to a circuit court of Cole County, the county of the investigation, hearing or proceeding, or any county where the person resides or may be found, for an order upon any person who shall fail to obey a subpoena to show cause why such subpoena should not be enforced, which such order and a copy of the application therefore shall be served upon the person in the same manner as a summons in a civil action, and if the circuit court shall, after a hearing, determine that the subpoena should be sustained and enforced, such court shall proceed to enforce the subpoena in the same manner as though the subpoena had been issued in a civil case in the circuit court.

313.443.

Upon application by the commission, and the necessary burden having been met, a court of general jurisdiction may grant an injunction, restraining order, or other order as may be appropriate to enjoin a person from offering to engage or engaging in the performance of any acts or practices for which a license is required by sections 313.425 to 313.445 upon a showing that such acts or practices were performed or offered to be performed without a license.

Any such action shall be commenced either in the county in which such conduct occurred or in the county in which the defendant resides.

Any action brought under this section shall be in addition to and not in lieu of any penalty provided by sections 313.425 to 313.445 and may be brought concurrently with other actions to enforce the provisions of sections 313.425 to 313.445.

313.444.

Upon receiving information that any provision of sections 313.425 to 313.445 has been or is being violated, the commission or other person designated by the commission shall investigate, and upon probable cause appearing, the commission shall file a complaint with the administrative hearing commission or appropriate official or court.

313.445.

Notwithstanding the provisions of section 1.140, the provisions of sections 313.425 to 313.445 and 572.020, 572.070, and 572.100 shall be nonseverable, and if any provision is for any reason held be invalid, such decision shall invalidate all of the HCS HB 2989 25 remaining provisions of sections 313.425 to 313.445, 572.020, 572.070, and 572.100, as amended by this act.

313.805.

The commission shall have full jurisdiction over and shall supervise all gambling operations governed by sections 313.800 to 313.850.

The commission shall have the following powers and shall promulgate rules and regulations to implement sections 313.800 to 313.850:

(1) To investigate applicants and determine the priority and eligibility of applicants for a license and to select among competing applicants for a license the applicant which best serves the interests of the citizens of Missouri;

(2) To license the operators of excursion gambling boats and operators of gambling games within such boats, to identify occupations within the excursion gambling boat operations which require licensing, and adopt standards for licensing the occupations including establishing fees for the occupational licenses and to license suppliers;

(3) To adopt standards under which all excursion gambling boat operations shall be held and standards for the facilities within which the gambling operations are to be held.

Notwithstanding the provisions of chapter 311 to the contrary, the commission may authorize the operation of gambling games on an excursion gambling boat which is also licensed to sell or serve alcoholic beverages, wine, or beer.

The commission shall regulate the wagering structure for gambling excursions, provided that the commission shall not establish any regulations or policies that limit the amount of wagers, losses, or buy-in amounts;

(4) To enter the premises of excursion gambling boats, facilities, or other places of business of a licensee within this state to determine compliance with sections 313.800 to 313.850;

(5) To investigate alleged violations of sections 313.800 to 313.850 or the commission rules, orders, or final decisions;

(6) To assess any appropriate administrative penalty against a licensee, including, but not limited to, suspension, revocation, and penalties of an amount as determined by the commission up to three times the highest daily amount of gross receipts derived from wagering on the gambling games, whether unauthorized or authorized, conducted during the previous twelve months as well as confiscation and forfeiture of all gambling game equipment used in the conduct of unauthorized gambling games.

Forfeitures pursuant to this section shall be enforced as provided in sections 513.600 to 513.645;

(7) To require a licensee, an employee of a licensee or holder of an occupational license to remove a person violating a provision of sections 313.800 to 313.850 or the commission rules, orders, or final orders, or other person deemed to be undesirable from the excursion gambling boat or adjacent facilities;

HCS HB 2989 26 (8) To require the removal from the premises of a licensee, an employee of a licensee, or a holder of an occupational license for a violation of sections 313.800 to 313.850 or a commission rule or engaging in a fraudulent practice;

(9) To require all licensees to file all financial reports required by rules and regulations of the commission;

(10) To issue subpoenas for the attendance of witnesses and subpoenas duces tecum for the production of books, records, and other pertinent documents, and to administer oaths and affirmations to the witnesses, when, in the judgment of the commission, it is necessary to enforce sections 313.800 to 313.850 or the commission rules;

(11) To keep accurate and complete records of its proceedings and to certify the records as may be appropriate;

(12) To ensure that the gambling games are conducted fairly.

No gambling device shall be set to pay out less than eighty percent of all wagers;

(13) To require all licensees of gambling game operations to use a cashless wagering system whereby all players' money is converted to physical or electronic tokens, electronic cards, or chips which only can be used on the excursion gambling boat;

(14) To require excursion gambling boat licensees to develop a system, approved by the commission, that allows patrons the option to prohibit the excursion gambling boat licensee from using identifying information for marketing purposes.

The provisions of this subdivision shall apply only to patrons giving identifying information for the first time.

Such system shall be submitted to the commission by October 1, 2000, and approved by the commission by January 1, 2001.

The excursion gambling boat licensee shall use identifying information obtained from patrons who have elected to have marketing blocked under the provisions of this section only for the purposes of enforcing the requirements contained in sections 313.800 to 313.850.

This section shall not prohibit the commission from accessing identifying information for the purposes of enforcing section 313.004 and sections 313.800 to 313.850;

(15) To determine which of the authorized gambling games will be permitted on any licensed excursion gambling boat;

(16) The commission shall base its decision to license excursion gambling boats on any of the following criteria:

the docking location or the excursion cruise could cause danger to the boat's passengers, violate federal law or the law of another state, or cause disruption of interstate commerce or possible interference with railway or barge transportation.

The commission shall consider economic feasibility or impact that would benefit land-based development and permanent job creation.

The commission shall not discriminate among applicants for excursion gambling boats that are similarly situated with respect to the criteria set forth in this section;

HCS HB 2989 27 (17) The commission shall render a finding or findings concerning the transition from a boat, barge, or floating facility to a nonfloating facility within thirty days after a hearing on any request from an applicant or existing licensee.

Such hearing may be held prior to any final action on licensing to assist an applicant and any city or county in the finalizing of their economic development plan;

(18) To require any applicant for a license or renewal of a license to operate an excursion gambling boat to provide an affirmative action plan which has as its goal the use of best efforts to achieve maximum employment of African-Americans and other minorities and maximum participation in the procurement of contractual purchases of goods and services.

This provision shall be administered in accordance with all federal and state employment laws, including Title VII of the Civil Rights Act of 1964, as amended by the Civil Rights Act of 1991.

At license renewal, the licensee will report on the effectiveness of the plan.

The commission shall include the licensee's reported information in its annual report to the joint committee on gaming and wagering;

(19) To annually adjust the admission fee imposed pursuant to section 313.820 for inflation;

and (20) To take any other action as may be reasonable or appropriate to enforce sections 313.800 to 313.850 and the commission rules.

313.820.

1.

An excursion boat licensee shall pay to the commission an admission fee of two dollars, as adjusted for inflation, every two hours for each person [embarking on an excursion gambling boat with a ticket of admission] present within the gambling area of each gambling facility.

Within the first two months of each calendar year, the commission shall adjust annually for inflation based on the Consumer Price Index for All Urban Consumers for the Midwest Region, as defined and officially recorded by the United States Department of Labor or its successor, to determine the new admission fee beginning January 1, and shall go into effect at the beginning of the new fiscal year.

Such fee shall be calculated initially on inflationary data recorded by the United States Department of Labor in January 1993 and such figure shall be used to calculate inflation adjustments for the remainder of fiscal year 2027 and for the next ten complete fiscal years thereafter.

The first fifty cents of such admission fee as adjusted for inflation shall be deposited to the credit of the department of natural resources historic preservation revolving fund and administered according to the provisions described in section 313.835(2)(a) to commemorate the bicentennial of the location of the permanent seat of government as described in second Section of the eleventh Article of the original Constitution of the state of Missouri.

Unless renewed by the Missouri general assembly upon the expiration of the provisions of this section, all revenue from such fee shall be remitted to the commission and shall be distributed according to the provisions of this HCS HB 2989 28 section.

Two dollars of such fee, as adjusted for inflation, shall be paid to the veterans commission capital improvement trust fund upon the effective date of this section.

One dollar of such fee, as adjusted for inflation, shall be deposited to the credit of the gaming commission fund as authorized pursuant to section 313.835, and one dollar of such fee, as adjusted for inflation, shall not be considered state funds and shall be paid to the home dock city or county.

[Subject to appropriation, one cent of such fee deposited to the credit of the gaming commission fund may be deposited to the credit of the compulsive gamblers fund created pursuant to the provisions of section 313.842.] Nothing in this section shall preclude [any licensee from charging any amount deemed necessary for a ticket of admission to any person embarking on an excursion gambling boat] the commission from adjusting the fee annually as deemed necessary to account for inflation.

[If tickets are issued which are good for more than one excursion, the admission fee shall be paid to the commission for each person using the ticket on each excursion that the ticket is used.] If free passes or complimentary admission tickets are issued, the excursion boat licensee shall pay to the commission the same fee upon these passes or complimentary tickets as if they were sold at the regular and usual admission rate;

however, the excursion boat licensee may issue fee-free passes to actual and necessary officials and employees of the licensee or other persons actually working on the excursion gambling boat.

The issuance of fee-free passes is subject to the rules of the commission, and a list of all persons to whom the fee-free passes are issued shall be filed with the commission.

2.

In all present and future forms of remote wagering, an excursion boat licensee shall pay to the commission a remote wagering access fee in lieu of an admission fee of one and one half percent of the total amount of money waged each month.

The proceeds of such remote wagering access fee shall be deposited to the credit of the gaming commission fund as authorized pursuant to section 313.835, and shall be distributed in accordance with regulations promulgated by the commission, except that the first thirty-five million dollars from the proceeds of the remote wagering access fee shall be deposited to the credit of the department of natural resources historic preservation revolving fund as described in section 313.835(2)(a).

[2] 3.

All licensees are subject to all income taxes, sales taxes, earnings taxes, use taxes, property taxes or any other tax or fee now or hereafter lawfully levied by any political subdivision;

however, no other license tax, permit tax, occupation tax, excursion fee, or taxes or fees shall be imposed, levied or assessed exclusively upon licensees by a political subdivision.

All state taxes not connected directly to gambling games shall be collected by the department of revenue.

Notwithstanding the provisions of section 32.057 to the contrary, the department of revenue may furnish and the commission may receive tax information to determine if applicants or licensees are complying with the tax laws of this state;

however, HCS HB 2989 29 any tax information acquired by the commission shall not become public record and shall be used exclusively for commission business.

313.835.

All revenue received by the commission from license fees, penalties, administrative fees, reimbursement by any excursion gambling boat operators for services provided by the commission and admission fees authorized pursuant to the provisions of sections 313.800 to 313.850, except that portion of the admission fee, not to exceed one cent, that may be appropriated to the compulsive gamblers fund as provided in section 313.820, shall be deposited in the state treasury to the credit of the "Gaming Commission Fund" which is hereby created for the sole purpose of funding the administrative costs of the commission, subject to appropriation.

Moneys deposited into this fund shall not be considered proceeds of gambling operations.

Moneys deposited into the gaming commission fund shall be considered state funds pursuant to Article IV, Section 15 of the Missouri Constitution.

All interest received on the gaming commission fund shall be credited to the gaming commission fund.

In each fiscal year, total revenues to the gaming commission fund for the preceding fiscal year shall be compared to total expenditures and transfers from the gaming commission fund for the preceding fiscal year.

The remaining net proceeds in the gaming commission fund shall be distributed in the following manner:

(1) The first five hundred thousand dollars shall be appropriated on a per capita basis to cities and counties that match the state portion and have demonstrated a need for funding community neighborhood organization programs for the homeless and to deter gang-related violence and crimes;

(2) The remaining net proceeds in the gaming commission fund for fiscal year 2013 and each fiscal year thereafter shall be distributed as follows:

(a) The revenue generated by the fee authorized in section 313.820(1) shall be remitted to the Missouri department of natural resources historic preservation revolving fund which shall contract with a charitable organization which is exempt from federal income tax and whose Missouri unrelated business taxable income, in any, would be subject to the state income tax imposed under chapter 143 for the construction of a facility for the acquisition and preservation of artifacts related to Missouri's riverboat heritage.

[(a)](b) The [first] next five million dollar portion shall be transferred to the access Missouri financial assistance fund, established pursuant to the provisions of sections 173.1101 to 173.1107, and additional moneys as annually appropriated by the general assembly shall be appropriated to such fund;

[(b)] (c) The [second] next three million dollar portion shall be transferred to the veterans' commission capital improvement trust fund created in section 42.300;

HCS HB 2989 30 [(c)] (d) The [third] next four million dollar portion shall be transferred to the Missouri National Guard trust fund created in section 41.214, and additional moneys as appropriated by the general assembly may be appropriated to such fund, up to one million five hundred thousand dollars annually;

[(d)](e) The next fifteen million dollar portion shall be transferred to the Missouri department of natural resources historic preservation fund and shall be used to preserve and protect collections of historic artifacts;

(f) Subject to appropriations, one hundred percent of remaining net proceeds in the gaming commission fund, after the appropriations are made pursuant to the provisions of paragraphs (a), (b), and (c) of this subdivision, shall be transferred to the veterans' commission capital improvement trust fund created in section 42.300.

572.010.

1.

As used in this chapter the following terms mean:

(1) "Advance gambling activity", a person advances gambling activity if, acting other than as a player, he or she engages in conduct that materially aids any form of gambling activity.

Conduct of this nature includes but is not limited to conduct directed toward the creation or establishment of the particular game, lottery, contest, scheme, gambling, device or activity involved, toward the acquisition or maintenance of premises, paraphernalia, equipment or apparatus therefor, toward the solicitation or inducement of persons to participate therein, toward the actual conduct of the playing phases thereof, toward the arrangement or communication of any of its financial or recording phases, or toward any other phase of its operation.

A person advances gambling activity if, having substantial proprietary control or other authoritative control over premises being used with his or her knowledge for purposes of gambling activity, he or she permits that activity to occur or continue or makes no effort to prevent its occurrence or continuation.

The supplying, servicing and operation of a licensed excursion gambling boat under sections 313.800 to 313.840 does not constitute advancing gambling activity.

The owning, operating, supplying, or servicing of video lottery game terminals under sections 313.425 to 313.437 does not constitute advancing gambling activity;

(2) "Bookmaking", advancing gambling activity by unlawfully accepting bets from members of the public as a business, rather than in a casual or personal fashion, upon the outcomes of future contingent events;