Senate Bill No. 368
Introduced By _______________________________________________________________________________
A Bill for an Act entitled: "An Act regulating business practices relating to the sale, importation, and replacement of video gambling machines; amending sections 23-5-612, 23-5-614, and 23-5-631, MCA; and providing effective dates."
Be it enacted by the Legislature of the State of Montana:
Section 1. Section 23-5-612, MCA, is amended to read:
"23-5-612. Machine permits -- fee. (1) The department, upon payment of the fee provided in subsection (2) and in conformance with rules adopted under this part, shall issue to the operator an annual permit for an approved video gambling machine.
(2) (a) The department shall charge an annual permit fee of $200 for each video gambling machine permit. The fee must be prorated on a quarterly basis but may not be prorated to allow a permit to expire before June 30. The department may not grant a refund if the video gambling machine ceases operation before the permit expires.
(b) If the person holding the gambling operator's license for the premises in which the machine is located changes during
the first quarter of the permit year and the new operator has received an operator's license and if a machine transfer
processing fee of $25
per for each machine is paid to the department, the permit remains valid for the remainder of the
(c) If a video gambling machine for which a permit has been obtained is replaced by another machine, a new permit is not needed for the replacement machine and the permit for the replaced machine transfers to the replacement machine for the remainder of the term of the permit. The department may charge the permittee a fee equal to the cost of implementing the transfer of the permit.
(3) The department shall retain 50% of the total permit fee collected under subsection (2)(a) and 100% of the machine
transfer processing fee collected under
subsection subsections (2)(b) and (2)(c) for purposes of administering this part. The
balance of the fee collected under subsection (2)(a) must be returned on a quarterly basis to the local government
jurisdiction in which the gambling machine is located. The local government portion of the fee is statutorily appropriated to
the department, as provided in 17-7-502, for deposit in the local government treasury."
Section 2. Section 23-5-614, MCA, is amended to read:
"23-5-614. Sale of video gambling machines
by operator or lienholder. (1) A licensed operator who is not licensed as
a manufacturer, distributor, or route operator may sell up to 20 video gambling machines in a calendar year if the operator:
(a) had obtained permits for the machines and legally operated them prior to the sale; and
(b) sells the machines to another licensed operator or to a licensed manufacturer, distributor, or route operator.
(2) A lienholder who acquires title to video gambling machines through a foreclosure action involving a licensed manufacturer, distributor, route operator, or operator may sell the machines to a licensed manufacturer, distributor, route operator, or operator.
(3) A licensed manufacturer or distributor may sell video gambling machines and associated equipment approved by the department in any jurisdiction outside of this state in which it is legal to do so under the laws of that jurisdiction. Prior to the date of the sale, the seller shall notify the department of the sale and provide the department with the approval of the jurisdiction in which the machines or equipment will be received."
Section 3. Section 23-5-631, MCA, is amended to read:
"23-5-631. Examination and approval of new video gambling machines and associated equipment -- fee. (1) The department shall examine and may approve a new video gambling machine or associated equipment or a modification to an approved machine or associated equipment that is manufactured, sold, or distributed for use in the state before the video gambling machine or associated equipment is sold, played, or used. A licensed manufacturer or distributor may bring a video gambling machine or associated equipment into the state for research and development on behalf of a licensed manufacturer prior to submission of the machine or equipment to the department for approval.
(2) A video gambling machine or associated equipment or a modification to an approved machine or associated equipment may not be examined or approved by the department until the video gambling machine manufacturer is licensed as required in 23-5-625.
(3) All video gambling machines or associated equipment approved by the department of commerce prior to October 1, 1989, must be considered approved under this part.
(4) The department shall require the manufacturer seeking the examination and approval of a new video gambling machine or associated equipment or a modification to an approved machine or associated equipment to pay the anticipated actual costs of the examination in advance and, after the completion of the examination, shall refund overpayments or charge and collect amounts sufficient to reimburse the department for underpayments of actual costs.
(5) Payments received under subsection (4) are statutorily appropriated to the department, as provided in 17-7-502, to defray the costs of examining and approving video gambling machines and associated equipment and modifications to approved machines and associated equipment and to issue refunds for overpayments.
(6) The department may inspect and test and approve, disapprove, or place a condition upon a video gambling machine or associated equipment or a modification to an approved machine or associated equipment prior to its distribution and placement for play by the public. A manufacturer, distributor, or route operator may not supply a video gambling machine or associated equipment to a manufacturer, distributor, route operator, or operator unless the machine or equipment has been approved by the department."
NEW SECTION. Section 4. Effective dates. (1) [Sections 2 and 3 and this section] are effective on passage and approval.
(2) [Section 1] is effective July 1, 1997.