House Bill No. 304

Introduced By _______________________________________________________________________________



A Bill for an Act entitled: "An Act requiring the department of justice to operate and maintain an automated accounting and reporting system for video gambling machines; authorizing the expenditure of funds for the system; amending section 23-5-621, MCA; and providing an immediate effective date."



STATEMENT OF INTENT

A statement of intent is required for this bill in order to provide guidelines for the adoption of rules by the department of justice to implement the automated accounting and reporting system provided for in [section 1]. The department's rules for an automated system should provide for simplified exchange of video gambling machine revenue information that the department is entitled by law to receive. The rules should provide for inspection of machine components and require, except when there is imminent peril to the integrity of the system or when necessary to prevent or detect criminal activity, prior notification to a licensee before a machine is disabled for malfunctions or violations detected by use of the automated accounting and reporting system.



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



NEW SECTION. Section 1.  Automated accounting and reporting system. (1) For the purposes of performing its duties under this chapter, simplifying the reporting of video gambling machine revenue data, and preserving the integrity of video gambling machines within its jurisdiction, the department shall operate and maintain an automated accounting and reporting system for video gambling machines.

(2) A video gambling machine may not be operated on or after January 1, 2000, unless it is connected with and provides data to the department's automated accounting and reporting system.



Section 2.  Section 23-5-621, MCA, is amended to read:

"23-5-621.   Video gambling machine machines -- specifications -- automated accounting and reporting system -- rules. (1) The department shall adopt rules implementing [section 1]; describing and stating the specifications for the video gambling machines authorized by this part and stating the specifications for video gambling machines authorized by this part; and allowing video gambling machines to be imported into this state and to be used for the purposes of trade shows, exhibitions, and similar activities.

(2) The specifications in the rules must substantially follow the specifications contained in 23-5-606 and 23-5-609 as those sections read on September 30, 1989. The department shall adopt rules allowing video gambling machines to be imported into this state and used for the purposes of trade shows, exhibitions, and similar activities.

(3) The department's rules for an automated accounting and reporting system must:

(a) provide for confidentiality of information received through the system, except as provided in 23-5-115(6);

(b) ensure the security and integrity of the automated accounting and reporting system and of the video gambling machines connected to the system;

(c) regulate the electronic transfer of funds to the department for payment of taxes, fees, or penalties; and

(d) establish procedures for the disabling of machines for malfunctions or violations detected by use of the automated system."



NEW SECTION. Section 3.  Automated accounting and reporting system -- implementation -- costs. (1) The department shall have the automated accounting and reporting system available for use by licensed operators on or before June 30, 1998.

(2) The department is authorized to incur costs not exceeding $800,000 for the acquisition of the automated accounting and reporting system required by [section 1].

(3) The following costs, whether for initial operation with the state's system or for continued maintenance, must be borne by the licensed operator of the video gambling machine and not by the department:

(a) costs of modifying and maintaining video gambling machines to operate with the state's automated accounting and reporting system; and

(b) any additional incidental costs, such as telephone or cable installation or extended telephonic or other electronic transmission service, hook-up, delivery, or installation.



NEW SECTION. Section 4.  Codification instruction. [Section 1] is intended to be codified as an integral part of Title 23, chapter 5, part 6, and the provisions of Title 23, chapter 5, part 6, apply to [section 1].



NEW SECTION. Section 5.  Effective date. [This act] is effective on passage and approval.

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