_________ Bill No. _______

Introduced By _______________________________________________________________________________

A Bill for an Act entitled: "An Act providing that the department of justice may adopt rules to license persons to manufacture gambling devices that are not legal for public play in the state and are manufactured for direct transportation to and use on an Indian reservation within the state if federal law authorizes use of the devices on the reservation; and amending section

23-5-152, MCA."

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

Section 1.  Section 23-5-152, MCA, is amended to read:

"23-5-152.   Possession of illegal gambling device or conducting illegal gambling enterprise prohibited -- exceptions. (1) Except as provided in 23-5-153 and subsections (2) through (4) of this section, it is a misdemeanor punishable under 23-5-161 for a person to purposely or knowingly:

(a)  have in the person's possession or under the person's control or permit to be placed, maintained, or kept in any room, space, enclosure, or building owned, leased, or occupied by or under the person's management or control an illegal gambling device; or

(b)  operate an illegal gambling enterprise.

(2)  Subsection (1) does not apply to a public officer or to a person coming into possession of an illegal gambling device in or by reason of the performance of an official duty and holding it to be disposed of according to law.

(3)  (a) The department may adopt rules to license persons to manufacture gambling devices that are not legal for public play in the state and are manufactured only for export from the state or for direct transportation to and use on an Indian reservation within the state if federal law authorizes use of the devices on the reservation.

(b)  A person may not manufacture an illegal gambling device for export from the state or for direct transportation to and use on an Indian reservation within the state if federal law authorizes use of the device on the reservation without having obtained a license from the department. The department may charge an administrative fee for the license that is commensurate with the cost of issuing the license.

(c)  A person licensed under subsection (3) may bring an illegal gambling device into the state if:

(i)  the illegal gambling device contains a component that will be used by the licensee to manufacture an illegal gambling device for export from the state or for direct transportation to and use on an Indian reservation within the state if federal law authorizes use of the device on the reservation; or

(ii) the illegal gambling device will be reconditioned, refurbished, repaired, or otherwise substantially modified in preparation for export from the state or for direct transportation to and use on an Indian reservation within the state if federal law authorizes use of the device on the reservation; and

(iii) the illegal gambling device will be exported from the state or directly transported to and used on an Indian reservation within the state if federal law authorizes use of the device on the reservation; and

(iv) the licensee has notified the department and received authorization from the department to bring the illegal gambling device into the state. The licensee is subject to reporting requirements provided for in rules adopted under subsection (3)(a).

(4)  An illegal gambling device may be possessed or located for display purposes only and not for operation:

(a)  in a public or private museum; or

(b)  in any other public place if the device has been made permanently inoperable for purposes of conducting a gambling activity."

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