Bill Summary – FastDemocracy

APPROVED                  CHAPTER
                                                                 MARCH 19, 2024                  549
                                                                 BY GOVERNOR               PUBLIC LAW
                                  STATE OF MAINE
                                              _____
                           IN THE YEAR OF OUR LORD
                        TWO THOUSAND TWENTY-FOUR
                                              _____
                                   S.P. 871 - L.D. 2070
 An Act to Implement a Facility-based Monitoring System for Slot Machines
   Emergency preamble. Whereas, acts and resolves of the Legislature do not
become effective until 90 days after adjournment unless enacted as emergencies; and
    Whereas, the current contract between the Department of Public Safety, Gambling
Control Board and the 3rd party operating the central site monitoring system on behalf of
the Gambling Control Board expires on June 30, 2024; and
     Whereas, it is necessary to enact the changes authorizing the transition from a central
site monitoring system to a facility-based monitoring system before the expiration of the
current contract; and
    Whereas, in the judgment of the Legislature, these facts create an emergency within
the meaning of the Constitution of Maine and require the following legislation as
immediately necessary for the preservation of the public peace, health and safety; now,
therefore,
Be it enacted by the People of the State of Maine as follows:
    Sec. 1. 8 MRSA §1001, sub-§13-B is enacted to read:
     13-B. Facility-based monitoring system. "Facility-based monitoring system" means
an on-site computer system at a casino or slot machine facility that is accessible by the
department to which all slot machines at the casino or slot machine facility communicate
for the purpose of auditing capacity and real-time information retrieval of the details of any
financial event that occurs in the operation of the casino or slot machine facility, door
openings and closings, power failure and malfunction.
    Sec. 2. 8 MRSA §1003, sub-§2, ¶J, as enacted by PL 2003, c. 687, Pt. A, §5 and
affected by Pt. B, §11, is repealed.
    Sec. 3. 8 MRSA §1003, sub-§2, ¶J-1 is enacted to read:
    J-1. Ensure the board or the director or staff has the ability to regulate, manage and
    audit the operation, financial data and program information relating to slot machines
    that enables the department to audit the operation, financial data and program
    information of a casino or slot machine facility licensee, as required by the board, and
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    provide the department with the ability to monitor at any time on a real-time basis
    wagering patterns, payouts, tax collection and compliance with rules adopted by the
    board for the regulation and control of slot machines operated under this chapter;
    Sec. 4. 8 MRSA §1003, sub-§2, ¶K, as enacted by PL 2003, c. 687, Pt. A, §5 and
affected by Pt. B, §11, is amended to read:
    K. Maintain Ensure the board or the director or staff, in collaboration with the casino
    operator or slot machine operator, has the ability to activate and deactivate the
    operation of individual slot machines via the central site monitoring system under
    authority of board staff or persons contracted by the board;
    Sec. 5. 8 MRSA §1003, sub-§2, ¶M, as enacted by PL 2003, c. 687, Pt. A, §5 and
affected by Pt. B, §11, is amended to read:
    M. Inform commercial track operators applying for a license to operate slot machines
    that any slot machines licensed by the board must be compatible with the central site a
    facility-based monitoring system of on-line monitoring used by the board;
    Sec. 6. 8 MRSA §1003, sub-§2, ¶N, as enacted by PL 2003, c. 687, Pt. A, §5 and
affected by Pt. B, §11, is amended to read:
    N. Cause the central site monitoring system to disable, in collaboration with the casino
    operator or slot machine operator, a slot machine to be disabled that does not meet
    registration requirements provided by this chapter or rules adopted under this chapter
    or as directed by the department;
    Sec. 7. 8 MRSA §1003, sub-§2, ¶O, as enacted by PL 2003, c. 687, Pt. A, §5 and
affected by Pt. B, §11, is amended to read:
    O. Cause the central site monitoring system to disable, in collaboration with the casino
    operator or slot machine operator, a slot machine to be disabled and cause the
    department to seize the proceeds of that slot machine if the funds from that slot machine
    have not been distributed, deposited or allocated in accordance with section 1036;
    Sec. 8. 8 MRSA §1004, as enacted by PL 2003, c. 687, Pt. A, §5 and affected by Pt.
B, §11, is amended to read:
§1004. Central site Facility-based monitoring system
    1. Generally. In order to facilitate the auditing and security programs required by
section 1003, subsection 2 and in addition to the requirements of under section 1003,
subsection 2, paragraphs J to O, all slot machines at a casino or slot machine facility must
communicate electronically with the central site monitoring system required pursuant to
section 1003, subsection 2, paragraph J licensee's facility-based monitoring system. The
board shall select a central site monitoring system. The central site facility-based
monitoring system, in addition to other functions the board determines necessary, must:
    A. Be a fully operational slot machine control system that has the capability of
    supporting all slot machines licensed for operation in the State at the casino or slot
    machine facility and is capable of being upgraded to maintain a fully operational and
    proper reporting capability;
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    B. Use a widely accepted gaming industry protocol to facilitate slot machine
    manufacturers' ability to communicate with the central site facility-based monitoring
    system;
    C. Have the capability to support progressive slot machines, both in-house and wide-
    area, as approved by the board. For purposes of this paragraph, "progressive slot
    machine" means a slot machine or series of slot machines in which the payback amount
    to an individual player increases as that player continues to play the slot machine or
    slot machines;
    D. Allow the slot machine operator to install independent player tracking systems to
    include cashless technology as approved by the board;
    E. Be incapable of altering the statistical awards of slot machines, as designated by the
    slot machine manufacturer and approved by the board;
    F. Provide redundancy to ensure that each component of the network facility-based
    monitoring system is capable of operating independently if another component of the
    network facility-based monitoring system fails and to ensure that all transactional data
    is captured and secured; and
    G. Have the ability to meet the reporting and control requirements set forth in section
    1003, subsection 2, paragraphs A to T S.
An on-site computer system that is accessible by the department through read-only access
and was in operation as of January 1, 2024 at a casino or slot machine facility operated by
a person licensed under section 1011 is considered a facility-based monitoring system
under this chapter.
    2. Third-party contractor. If the board contracts with a 3rd party to operate the
central site monitoring system, the 3rd party must meet, as determined by the board, the
suitability requirement described in section 1016, subsection 2.
     3. Initial acquisition of central site monitoring system. The board shall select the
central site monitoring system presenting the lowest overall cost alternative, taking into
consideration the capital costs, operating costs and impact on gross slot machine revenues,
that is capable of satisfying the requirements of this section and section 1003, as determined
by the board.
    Sec. 9. 8 MRSA §1006, sub-§1, ¶D, as enacted by PL 2005, c. 11, §1, is amended
to read:
    D. Financial, statistical and surveillance information related to the applicant or licensee
    that is obtained by the board or department from the central site a facility-based
    monitoring system or surveillance devices, except that such records or information may
    be disclosed with the written consent of the licensee as the facility-based monitoring
    system operator;
    Sec. 10. 8 MRSA §1006, sub-§3, as enacted by PL 2005, c. 11, §1, is repealed.
    Sec. 11. 8 MRSA §1006, sub-§4, as amended by IB 2009, c. 2, §28, is further
amended to read:
    4. Monitoring and surveillance records and information. Financial, statistical and
surveillance information obtained by the board or department from the central site a
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facility-based monitoring system or surveillance devices is confidential and may not be
disclosed, except as provided in subsection 1, paragraph D. The board shall prepare and
make publicly available monthly and annual reports on the results of slot machine and table
game operations using the information described in this subsection pursuant to section
1003, subsection 2, paragraphs Q and R, as long as the board takes appropriate measures
to protect the confidentiality of specific information designated as confidential by this
section.
    Sec. 12. 8 MRSA §1020, sub-§2, ¶F, as enacted by PL 2003, c. 687, Pt. A, §5 and
affected by Pt. B, §11, is amended to read:
    F. Must have technology compatible with the central site licensee's facility-based
    monitoring system used by the board;
    Sec. 13. 8 MRSA §1020, sub-§4, as amended by PL 2019, c. 614, §4, is further
amended to read:
     4. Examination Certification of slot machines and associated equipment. The
board shall, in cooperation with the department, examine approve qualified independent
laboratories for certification of slot machines and slot machine associated equipment of
from slot machine distributors and gambling services vendors seeking registration as
required in this chapter. The board shall require the slot machine distributor or gambling
services vendor seeking examination and approval certification of the slot machine or slot
machine associated equipment to pay the board-approved independent laboratory the
anticipated cost of the examination certification before the examination occurs certification
is completed. After the examination occurs, the board shall refund overpayments or charge
and collect amounts sufficient to reimburse the board for underpayments of actual cost.
The board may contract for the examinations of slot machines and slot machine associated
equipment as required by this section adopt rules to establish the approval process to verify
certifications, approve shipments and inspect slot machines. Rules adopted pursuant to this
subsection are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A.
    Sec. 14. Appropriations and allocations. The following appropriations and
allocations are made.
PUBLIC SAFETY, DEPARTMENT OF
Gambling Control Board Z002
Initiative: Reduces allocations for contracted services related to a central site monitoring
system for slot machines.
OTHER SPECIAL REVENUE FUNDS                                      2023-24            2024-25
 All Other                                                            $0         ($500,000)
                                                              __________        __________
OTHER SPECIAL REVENUE FUNDS TOTAL                                     $0         ($500,000)
    Sec. 15. Effective date. This Act takes effect June 30, 2024.
    Emergency clause. In view of the emergency cited in the preamble, this legislation
takes effect when approved.
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Statutes affected: 
Bill Text LD 2070, SP 871: 8.1003, 8.1004, 8.1006, 8.1020
Bill Text ACTPUB , Chapter 549: 8.1003, 8.1004, 8.1006, 8.1020