Senate Bill No. 295

Introduced By _______________________________________________________________________________



A Bill for an Act entitled: "An Act increasing public involvement in issuing gambling licenses and permits; requiring a public hearing in the affected jurisdiction; requiring a determination of public convenience and necessity; and amending sections 23-5-115 and 23-5-611, MCA."



Be it enacted by the Legislature of the State of Montana:



Section 1.  Section 23-5-115, MCA, is amended to read:

"23-5-115.   Powers and duties of department -- licensing. (1) The department shall administer the provisions of parts 1 through 8 of this chapter.

(2)  The department shall adopt rules to administer and implement parts 1 through 8 of this chapter.

(3)  The department shall provide licensing procedures, prescribe necessary application forms, and grant or deny license applications. The original issuance of a license or the transfer of a license may be approved only if the department has determined, upon a hearing held in the affected local jurisdiction, pursuant to the Montana Administrative Procedure Act, that the issuance or transfer of the license is justified by public convenience and necessity. The burden of showing public convenience and necessity is on the applicant. The lack of objection at the hearing is not an indication of public convenience or necessity. In determining public convenience and necessity, the department shall consider whether the issuance of the license will materially promote the public's ability to engage in the licensed activity and the department shall evaluate:

(a) the business abilities and character of the applicant;

(b) the demand for services in the area to be served;

(c) the impact on existing licensees; and

(d) any adverse impact on the area to be served.

(4)  The department shall prescribe recordkeeping requirements for licensees, provide a procedure for inspection of records, provide a method for collection of taxes, and establish penalties for the delinquent reporting and payment of required taxes.

(5)  The department may suspend, revoke, deny, or place a condition on a license issued under parts 1 through 8 of this chapter.

(6)  The department may not make public or otherwise disclose information obtained in the application or tax reporting processes, except for general statistical reporting or studies or as provided in 23-5-116.

(7)  The department shall assess, collect, and disburse any fees, taxes, or charges authorized under parts 1 through 8 of this chapter."



Section 2.  Section 23-5-611, MCA, is amended to read:

"23-5-611.   Machine permit qualifications -- limitations. (1) (a) A person who has been granted an operator's license under 23-5-177 and a license to sell alcoholic beverages for consumption on the premises may be granted a permit for the placement of video gambling machines in his the premises. The original issuance of a license or a permit may be approved only if the department has determined, upon a hearing held in the affected local jurisdiction, pursuant to the Montana Administrative Procedure Act, that the issuance of the permit is justified by public convenience and necessity. The burden of showing public convenience and necessity is on the applicant. The lack of objection at the hearing is not an indication of public convenience or necessity. In determining public convenience and necessity, the department shall consider whether the issuance of the license will materially promote the public's ability to engage in the licensed activity and the department shall evaluate:

(i) the business abilities and character of the applicant;

(ii) the demand for services in the area to be served;

(iii) the impact on existing licensees; and

(iv) any adverse impact on the area to be served.

(b)  If video keno or bingo gambling machines were legally operated on a premises on January 15, 1989, and the premises were not on that date licensed to sell alcoholic beverages for consumption on the premises or operated for the principal purpose of gaming and there is an operator's license for the premises under 23-5-177, a permit for the same number of video keno or bingo gambling machines as were operated on the premises on that date may be granted to the person who held the permit for such the machines on those premises on that date.

(c)  A person who legally operated an establishment on January 15, 1989, for the principal purpose of gaming and who has been granted an operator's license under 23-5-177 may be granted a permit for the placement of bingo and keno machines in his the premises.

(2)  An applicant for a permit shall disclose on the application form to the department any information required by the department consistent with the provisions of 23-5-176.

(3)  A licensee may not have on the premises or make available for play on the premises more than 20 machines of any combination."

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