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licensing requirements. However, if the organization has a state license, it • need not comply with local license or permit requirements. Cities may disapprove the granting of state licenses by passing a resolution and giving notice to the state board: County attorneys are primarily responsible for enforcement. The stated intent -of the law is to regulate legal forms of gambling. to . prevent their commercialization, to insure integrity of operations, and to provide for the use of net profits only for lawful purposes. The only exemptions from state licensing requirements are for bingo occasions at a county fair, the state fair,, or a civic celebration if not for more than 12 consecutive days in a calendar year; or by an organization which conducts four or fewer bingo occasions in a calendar year; or raffles if the value of all raffle prizes the organization awards in a calendar year does not exceed $750; or raffles an organization conducts which, directly or under contract to the state or political subdivision, delivers health or social services and is a 501(c) (3) non-profit organization (IRS Code) but only if the prizes are not real or personal property an individual, firm, or other organization donated. All other gambling activity must have a state license. Thus, cities can only issue licenses or permits for the limited list of state-exempted gambling activities. As a practical matter, for most cities it won't be worth the bother to license these exempt activities. The state board will consist of 13 members. The governor will- select 11 (four must reside outside the metropolitan area) . The other two members are the commissioner of public safety and the attorney general or their designees. The governor will choose the chairperson from his appointees. The board has full licensing and regulatory authority with the attorney general serving as • the attorney for the board. The act contains many regulatory provisions concerning. eligibility for licensing, operation of gambling activities, prize limits, and reporting of profits; and imposes a 10 percent tax on gross receipts minus prizes. The board will begin licensing March 1 , 1985. All local licenses expire Feb. 28, 1985. Cities should continue normal licensing until that time. Video gambling devices were also the subject of legislative attention / this past session. The Supplemental Appropriations Bill (Chapter 654) , in Article 3, Sections 89-99 establishes state regulations for video games or devices that simulate games such as poker, blackjack, craps, hi-lo roulette,' - or other common gamhlAag. _orms, though not offering any type o pecun award or gain to players. Also covered are video games having one. or more of the following characteristics: it is primarily a game of chance and has no substantial elements of skill involved; or it awards game credits or replays and contains a device that permits cancellation. No person can distribute or operate video games of chance at any place of business without first receiving a license from the state department of public safety to engage in that business at that location (the liquor control division will be the enforcement/licensing authority) . Distributor may not be wholesale distributors of liquor or alcoholic beverages. Each machine must have a license as well, set by law at $120.00 per year. All state revenues will go to a video gaming license account. Using an internal certification process, the state will then pay $30 from the video gaming account to each city and county for each video game of chance located in the city or in the county outside city limits. The remainder will go :into the state general fund. • Cities and counties may not .impose a fee or tax of any kind on video games of chance. No location can have-more than two video games of chance, and