_________ Bill No. _______
Introduced By _______________________________________________________________________________
A Bill for an Act entitled: "An Act clarifying the law relating to nonprofit organizations that conduct sports tab games for nonprofit purposes and causes; clarifying the types of nonprofit organizations that may conduct sports tab games; establishing the conditions under which those games may be conducted; allowing nonprofit organizations to conduct pull tab games and establishing the conditions under which those organizations may do so; and amending sections 23-5-501, 23-5-502, and 23-5-503, MCA."
Be it enacted by the Legislature of the State of Montana:
Section 1. Section 23-5-501, MCA, is amended to read:
"23-5-501. Definitions. As used in this part, unless the context clearly requires otherwise, the following definitions apply:
(1) "Pull tab" means a game ticket with two plys that are glued together and that has break-open tabs or windows that have been die cut into one of the plys so that the player can open the pull tab to reveal symbols or numbers. The side without windows must contain either the name of the game or the name of the game and a description of how the game is played. Pull tab also means a game ticket that is a folded or banded ticket and that has a face covered to conceal a combination of two numbers, with each number ranging from zero through nine.
(2) "Pull tab game" means a game with revealed symbols or numbers arranged in a predetermined manner that indicates to the player whether the player has a winning or losing pull tab. A winning pull tab is identified by a player by comparing a predetermined symbol or number arrangement on the opened pull tab to the side of the pull tab without windows or to a poster that explains what a winning symbol or number arrangement consists of. To aid a player in identifying a winning or losing pull tab, a winning pull tab must contain visual characteristics not on a losing pull tab that enable a player to realize that the player has a winning pull tab.
(1)(3) "Sports pool" means a gambling activity, other than an activity governed under chapter 4 or chapter 5, part 2, of this
title, in which a person wagers money for each chance to win money or other items of value based on the outcome of a
sports event or series of sports events wherein the competitors in the sports event or series of sports events are natural
persons or animals.
(2)(4) "Sports tab" means a folded or banded ticket with a face covered to conceal a combination of two numbers, with
each number ranging from zero through nine.
(3)(5) "Sports tab game" means a gambling enterprise conducted on a card to which 100 sports tabs are attached that have
100 different combinations for which consideration in money is paid by the person purchasing each tab. A person may
purchase a sports tab from the card for the chance to win money or other items of value on a sports event as provided in
23-5-503."
Section 2. Section 23-5-502, MCA, is amended to read:
"23-5-502. Sports pools and sports tab and pull tab games authorized -- tax. (1) Conducting or participating in sports pools and sports tab and pull tab games as defined and governed in this part is lawful, except that:
(a) sports tab games may only be conducted only:
(i) on premises licensed to sell alcoholic beverages for consumption on the premises; and or
(ii) by an organization granted an exemption under 26 U.S.C. 501(c)(3), (c)(4), (c)(8), or (c)(19) that applies to the department for a permit to conduct sports tab games for nonprofit purposes and is granted a permit;
(b) pull tab games may be conducted only by an organization granted an exemption under 26 U.S.C. 501(c)(3), (c)(4), (c)(8), or (c)(19) that applies to the department for a permit to conduct pull tab games for nonprofit purposes and is granted a permit; and
(b)(c) only a licensee of premises that are located in an incorporated city or town with a population of less than 100 or
located outside the boundaries of an incorporated city or town and that are licensed to sell alcoholic beverages for
consumption on the premises may conduct a race between animals and conduct one or more sports pools on the race. The
race may be conducted only if it is between pigs, gerbils, or hamsters and is conducted on the premises but outside of
interior areas of the establishment where food and beverages are usually stored, prepared, or served.
(2) A manufacturer licensed under 23-5-115 who sells sports tabs to a licensed operator for use in a sports tab game shall collect from the operator, at the time of sale, a tax of $1 for each 100 sports tabs sold and, within 15 days after the end of each calendar quarter, submit to the department any forms required by the department and the proceeds of the collected tax. The manufacturer shall keep a record of taxes collected as required by department rule. The records must be made available for inspection by the department upon request of the department. The department shall retain the proceeds of the tax to administer this part.
(3) An organization referred to in subsection (1)(a)(ii) or (1)(b):
(a) must be granted a permit if the organization is in compliance with the statutes and rules regulating gambling;
(b) is exempt from the tax required by subsection (2) and may not be charged a fee for issuance of the permit;
(c) may conduct sports tab and pull tab games only at its main premises or place of operations, at places operated by other organizations referred to in subsections (1)(a)(ii) and (1)(b), or at places operated by a governmental unit or entity; and
(d) may conduct sports tab and pull tab games only during the time period or periods allowed by the permit."
Section 3. Section 23-5-503, MCA, is amended to read:
"23-5-503. Rules. (1) The card or other device used for recording the sports pool or sports tab or pull tab game must
clearly indicate in advance of the sale of any chances the number of chances to be sold in that specific sports pool or sports
tab or pull tab game, the name of the event or series of events, the name of the prize if a pull tab game is for a prize, the
consideration to be paid for each chance, and the total amount or percentage to be paid to the winners. The sports Sports
tabs and pull tabs must be purchased from a manufacturer licensed under 23-5-115.
(2) Each sports tab or pull tab or chance to participate in a sports pool must be sold for the same amount, which may not exceed $5, and the total amount paid to all winners of any individual sports pool or sports tab or pull tab game may not exceed the value of $500. Chances for a series of events may be purchased all at once prior to the occurrence of the first event.
(3) (a) Except as provided in subsection (3)(b), the winners of any sports pool shall must receive a 100% payout of the
value of the sports pool. The winner of a sports tab game must receive at least 90% of the total cost of the 100 sports tabs.
The winner of a pull tab game must receive at least 90% of the total cost of the pull tabs in the game or a prize equal in
value to at least 90% of the total cost of all the pull tabs in the game. The operator of the sports tab or pull tab game may
retain the remaining money for administration and other expenses.
(b) A nonprofit An organization granted an exemption under 26 U.S.C. 501(c)(3), (c)(4), (c)(8), or (c)(19) that maintains
records and opens the records to inspection upon reasonable demand to verify that the retained portion is used to support
charitable activities, scholarships or educational grants, other nonprofit purposes, or community service projects may retain
up to 50% of the value of a sports pool or sports tab or pull tab game.
(4) A person or nonprofit organization granted an exemption under 26 U.S.C. 501(c)(3), (c)(4), (c)(8), or (c)(19)
conducting a sports pool or sports tab or pull tab game may purchase chances or sports tabs or pull tabs to participate in the
sports pool or sports tab or pull tab game but may not:
(a) retain any portion of the amount wagered in the sports pool or sports tab or pull tab game, except as provided in subsection (3)(b);
(b) charge a fee for participating in the sports pool or sports tab or pull tab game; or
(c) use the sports pool or sports tab or pull tab game in any manner to establish odds or handicaps or to allow betting or booking against the person or nonprofit organization conducting the pool or game."
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