F.__If one or more commercial tracks located in the State are not both licensed to and in fact operate video lottery terminals, 4% of total gross terminal income must be sent to the Treasurer of State and credited by the Treasurer of State to the fund created in Title 8, section 296.

G.__Three percent of the total gross terminal income must be paid directly to the municipality in which the facility is located and retained by that municipality as supplemental revenues or, if the facility is located in an unorganized area, to the Treasurer of State and applied to the General Fund; except that, if all commercial tracks located in the State are licensed to and do operate video lottery terminals, 5% of the total gross terminal income must be paid to the municipality in which the facility is located and retained by that municipality as supplemental revenues or, if the facility is located in an unorganized area, to the Treasurer of State and applied to the General Fund.

2.__Payment of expenses.__The balance of the gross terminal income after distribution pursuant to subsection 1 must be retained by the licensee under this chapter from which the licensee is required to pay the video lottery terminal distributor all fees charged by the distributor and all other expenses associated with the operation of the video lottery terminals and any other taxes assessed against the licensee.

3.__Failure to deposit funds.__A video lottery terminal distributor who willfully refuses to comply with this section commits a Class D crime.__The license of that person may be revoked by the District Court and the video lottery terminals of that video lottery terminal distributor must be disabled and may be confiscated by the commission.

4.__Late payments.__The commission may adopt rules establishing the dates on which payments required by this section are due.__All payments not remitted when due must be paid together with a penalty assessment of 2% of the amount owed and interest on the unpaid balance at a rate of 1.5% per month.

SUBCHAPTER 4

ENFORCEMENT AND PENALTIES

§391.__Reports; records