23-5-637. Automated accounting and reporting system. (1) For the purposes of performing its duties under this chapter, minimizing regulatory costs, simplifying the reporting of video gambling machine revenue data, preserving the integrity of video gambling machines within its jurisdiction, lessening administrative and recordkeeping burdens for licensed machine owners and licensed operators and the department, and enhancing the management tools available to the industry and the state, the department may operate and maintain, subject to the restrictions contained in subsections (3) and (4), an automated accounting and reporting system for video gambling machines.
     (2) Except as provided in subsection (4), connection of video gambling machines to the department's automated accounting and reporting system is voluntary for licensed machine owners and licensed operators who hold a valid current license on December 31, 2000.
     (3) (a) The department shall issue a request for proposals for the automated accounting and reporting system on or before September 1, 1999. The department may not sign a final contract for the purpose of acquiring an automated system unless it has obtained written confirmation from licensed machine owners who volunteer to participate in the automated system and whose commitment to participate covers 70% of the total number of video gambling machines that are capable of being connected to the automated system.
     (b) The 70% calculation must be based on video gambling machines that had permits on July 15, 1999, and on an analysis by the department of the feasibility of upgrading specific video gambling machine models based on the age of the video gambling machines, technologies employed, numbers of video gambling machines in a model series, and existence or nonexistence of a licensed manufacturer to support upgraded conversions.
     (c) A request for proposals for the system must require that the proposal:
     (i) provide that communication protocols between connected video gambling machines and the central system and between connected video gambling machines and on-premises site controllers do not favor any one central system vendor or component manufacturer; and
     (ii) provide for computer backup and contingency planning to ensure that there will be no video gambling machine operation interruptions because of central system failures.
     (4) After December 31, 2000:
     (a) a permit may not be issued for a video gambling machine manufactured after December 31, 2000, that is not manufactured in a manner specifically designed to allow the video gambling machine to be connected to the department's automated accounting and reporting system;
     (b) if a permitholder voluntarily connects one or more video gambling machines at a premises to the department's automated accounting and reporting system, all connected video gambling machines on the premises, including video gambling machines replacing connected video gambling machines, must remain connected to the automated system as long as video gambling machines are operated on the premises; and
     (c) if there is a change in the majority ownership interests of a licensed gambling business, all video gambling machines located on the premises must be connected to the department's automated accounting and reporting system within 5 years after the date on which the majority ownership change is approved by the department, unless there are five or fewer video gambling machines on the premises and:
     (i) they are owned by the licensed operator; or
     (ii) the premises are located in a city, town, or county with a population of 3,000 or less, according to the last official decennial census.

     History: En. Sec. 1, Ch. 424, L. 1999.