_________ Bill No. _______
Introduced By _______________________________________________________________________________
A Bill for an Act entitled: "An Act revising the law relating to the transfer of an ownership interest in a licensed gambling operation; exempting certain transfers among or between owners of an interest in the same licensed gambling operation from the requirement of notice to and receipt of approval from the department of justice; and amending section
Be it enacted by the Legislature of the State of Montana:
Section 1. Section 23-5-118, MCA, is amended to read:
"23-5-118. Transfer of ownership interest.
(1) In this section, "licensed gambling operation" means a business for
which a license was obtained under parts 1 through 8 of this chapter. (2)(1) Except as provided in subsection (3) (2), an owner of an interest in a licensed gambling operation shall notify
business for which a license was obtained under parts 1 through 8 of this chapter may not transfer any ownership interest in
the business unless the owner notifies the department in writing and receive receives approval from the department before
transferring any ownership interest in the operation for the transfer. (3)(2) This section does not apply to Notice and approval under subsection (1) is not required for the transfer of:
(a) a security interest in
a licensed gambling operation or to the transfer of a business for which a license was obtained
under parts 1 through 8 of this chapter;
(b) less than 5% of the interest in a publicly traded corporation; or
(c) ownership interests among or between owners of the same business for which a license was obtained under parts 1 through 8 of this chapter if:
(i) the owners have been previously investigated; and
(ii) the source of new financing, if any, is a state or federally regulated banking or financial institution or a person that has been previously investigated by the department.
(3) Before an interest may be transferred under subsection (2), an owner entitled to an exemption under subsection (2) shall submit a written request for an amended license specifying the grounds upon which the owner is entitled to the exemption."