Bill Summary – FastDemocracy

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68th Legislature 2023                                                                                          HB 297.1
                                                HOUSE BILL NO. 297
     INTRODUCED BY T. WELCH, S. KERNS, R. MARSHALL, E. BUTTREY, L. JONES, R. FITZGERALD, K.
                       REGIER, B. USHER, D. SALOMON, J. FITZPATRICK, J. KASSMIER
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  A BILL FOR AN ACT ENTITLED: “AN ACT REVISING VIDEO GAMBLING MACHINE TAXES TO ALLOW A
  DEDUCTION FOR NEGATIVE INCOME; PROVIDING DEFINITIONS; PROVIDING RULEMAKING
  AUTHORITY; AMENDING SECTIONS 23-5-602 AND 23-5-610, MCA; AND PROVIDING AN EFFECTIVE
  DATE AND AN APPLICABILITY DATE.”
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  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
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          Section 1. Section 23-5-602, MCA, is amended to read:
          "23-5-602.   Definitions. As used in this part, the following definitions apply:
          (1)      "Associated equipment" means all proprietary devices, machines, or parts used in the
  manufacture or maintenance of a video gambling machine, including but not limited to integrated circuit chips,
  printed wired assembly, printed wired boards, printing mechanisms, video display monitors, metering devices,
  and cabinetry.
          (2)      "Automated accounting and reporting system" means a system that, at a minimum, is used to
  electronically report video gambling machine accounting data to the state.
          (3)      (a) "Bingo machine" means an electronic video gambling machine that, upon insertion of cash,
  is available to play bingo, as defined by rules of the department. The machine uses a video display and
  microprocessors and, by the skill of the player, by chance, or by both, allows the player to receive free games,
  bonus games, or credits that may be redeemed for cash.
          (b)      The term does not include a slot machine or a machine that directly dispenses coins, cash,
  tokens, or anything else of value.
          (4)      (a) "Bonus game" means a game other than a bingo, poker, keno, or video line game that is
  offered as a prize for playing and achieving a defined outcome by playing a bingo, poker, keno, or video line
  game. The term includes a game that allows a player to win free credits, free games, or a multiplier of credits
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68th Legislature 2023                                                                                          HB 297.1
  already won or to move to an accelerated pay table for the play of a bingo, poker, keno, or video line game. A
  bonus game must make available to the player a display of the rules for the bonus game.
          (b)        The term does not include a game that allows the player to wager money or credits on the
  game or to lose money or credits already won. The term does not include a game by which the bonus game
  would become the predominant game rather than a bingo, poker, keno, or video line game. The department
  shall by administrative rule define the conditions that would cause a bonus game to be the predominant game.
  The term does not include a game that displays or simulates a gambling activity that is not legal under state
  law.
          (5)        "Electronically captured data" means video gambling machine accounting information and
  records of video gambling machine events, in electronic form, that are automatically recorded and
  communicated to the department through an approved automated accounting and reporting system.
          (6)        "Gross income" means money put into a video gambling machine minus credits paid out in
  cash and minus negative income in the same quarter.
          (7)        (a) "Keno machine" means an electronic video gambling machine that, upon insertion of cash,
  is available to play keno, as defined by rules of the department. The machine uses a video display and
  microprocessors and, by the skill of the player, by chance, or by both, allows the player to receive free games,
  bonus games, or credits that may be redeemed for cash.
          (b)        The term does not include a slot machine or a machine that directly dispenses coins, cash,
  tokens, or anything else of value.
          (8)        "Licensed machine owner" means a licensed operator or route operator who owns a video
  gambling machine for which a permit has been issued by the department.
          (9)        "Multigame" means a combination of at least two or more approved types of games, including
  bingo, poker, keno, or video line games, within the same video gambling machine cabinet if the video gambling
  machine cabinet has been approved by the department.
          (10)       "Negative income" means money paid out in cash from a video gambling machine that exceeds
  money put into the machine.
          (10)(11)     "Permitholder" means a licensed operator on whose premises is located one or more video
  gambling machines for which a permit has been issued by the department.
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68th Legislature 2023                                                                                             HB 297.1
          (11)(12) "Player rewards system" means a system that rewards player loyalty, including but not limited
  to employing player rankings, awarding player points, or other promotions based on player engagement at an
  individual licensed premises as determined by using video gambling machine data, which may come from an
  automated accounting and reporting system, and other information gathered at an individual licensed premises.
          (12)(13) (a) "Poker machine" means an electronic video gambling machine that, upon insertion of
  cash, is available to play or simulate the play of the game of draw poker, 5-card stud, 7-card stud, or hold 'em,
  as defined by rules of the department. The machine uses a video display and microprocessors and, by the skill
  of the player, by chance, or by both, allows the player to receive free games, bonus games, or credits that may
  be redeemed for cash.
          (b)      The term does not include a slot machine or a machine that directly dispenses coins, cash,
  tokens, or anything else of value.
          (13)(14) (a) "Video line game" means a video line game as defined by rules of the department and
  approved by the department. A video line game uses a video display and microprocessors and, by the skill of
  the player, by chance, or by both, allows the player to receive free games, bonus games, or credits that may be
  redeemed for cash. Video line games may be offered only in a multigame video gambling machine cabinet.
          (b)      The term does not include a game played on a slot machine or a machine that directly
  dispenses coins, cash, tokens, or anything else of value."
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          Section 2. Section 23-5-610, MCA, is amended to read:
          "23-5-610.   Video gambling machine gross income tax -- negative income -- records --
  distribution -- quarterly statement and payment. (1) A licensed machine owner shall pay to the department a
  video gambling machine tax of 15% of the gross income from each video gambling machine issued a permit
  under this part in the manner prescribed by the department. A licensed machine owner may deduct from the
  gross income amounts equal to amounts stolen from machines if the amounts stolen are not repaid by
  insurance or under a court order, if a law enforcement agency investigated the theft, and if the theft is the result
  of either unauthorized entry and physical removal of the money from the machines or of machine tampering
  and the amounts stolen are documented.
          (2)      A licensed machine owner shall keep a record of the gross income and negative income from
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68th Legislature 2023                                                                                               HB 297.1
  each video gambling machine issued a permit under this part in the form the department requires. The records
  must at all times during the business hours of the licensee be subject to inspection by the department.
          (3)   For each video gambling machine issued a permit under this part, a licensed machine owner shall,
  within 15 days after the end of each quarter and in the manner prescribed by the department, complete and
  deliver to the department a statement showing the total gross income, together with the total amount due the
  state as video gambling machine gross income tax for the preceding quarter. The statement must contain other
  relevant information that the department requires.
          (4)(3)   The department shall, in accordance with the provisions of 17-2-124, forward the tax collected
  under subsection (3) (1) of this section to the state treasurer for deposit in the general fund."
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          NEW SECTION. Section 3.         Effective date. [This act] is effective July 1, 2023.
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          NEW SECTION. Section 4.         Applicability. [This act] applies to tax liabilities for calendar quarters
  beginning after June 30, 2023.
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Statutes affected: 
HB0297_1.pdf: 23-5-602, 23-5-610
HB0297_2.pdf: 23-5-602, 23-5-610
HB0297_3.pdf: 23-5-602, 23-5-610
Amended: 23-5-602, 23-5-610
Introduced: 23-5-602, 23-5-610