Senate Bill No. 368
Introduced By lynch
A Bill for an Act entitled: An Act regulating business practices relating to the sale and importation of video gambling machines; amending sections 23-5-152, 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 23-5-152, 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) (5) 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.
(b) A person may not manufacture an illegal gambling device
for export from the state 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)(4) (a) A person licensed under subsection (3) may conduct only those activities authorized under this subsection (4).
(b) A licensee may bring an illegal gambling device, including an illegal video gambling machine, 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
(ii) the illegal gambling device will be reconditioned, refurbished, repaired, or otherwise substantially modified in preparation for export from the state; and
(iii) the illegal gambling device will be exported from the state; 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).
(c) A licensee may also bring an illegal video gambling machine into the state if:
(i) the illegal video gambling machine will be reconditioned, refurbished, repaired, or otherwise substantially modified for conversion to an authorized video gambling machine; and
(ii) the licensee has notified the department and has received authorization from the department to bring the illegal video gambling machine into the state. The licensee is subject to reporting requirements provided for in rules adopted under subsection (3)(a).
(4)(5) 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."
Section 2. 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 machine is paid to the department, the permit remains valid for the remainder of the permit year.
(3) The department shall
retain deposit 50% of the total permit fee collected under subsection (2)(a) and 100% of the
machine transfer processing fee collected under subsection (2)(b) in the state special revenue fund for purposes of
administering this part and for other purposes provided by law. 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 3. 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 for delivery to any jurisdiction outside of this state if the sale and transportation of the machines or equipment complies with all applicable local, tribal, state, and federal laws and regulations. Prior to the date of the sale, the seller shall notify the department of the terms of the sale, the identities of the seller, purchaser, and person to whom the shipment will be made, the type and number of machines or equipment to be sold, and the method of shipment and provide the department with the approval of the jurisdiction in which the machines or equipment will be received. A person convicted of purposely or knowingly violating this subsection shall be punished as provided in 23-5-162."
Section 4. 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 authorized by this chapter 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."
Section 5. Effective dates. (1) [Section 1 and this section] are effective on passage and approval.
(2) [Sections 2 through 4] are effective July 1, 1997.