Bill Text: HI HB145 | 2014 | Regular Session | Introduced
Bill Title: Stand-Alone Casino Gaming; Waikiki; Appropriation ($)
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2013-12-18 - Carried over to 2014 Regular Session. [HB145 Detail]
Download: Hawaii-2014-HB145-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
145 |
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TWENTY-SEVENTH LEGISLATURE, 2013 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to gaming.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:
"CHAPTER
CASINO GAMING
§ -1 Limited casino gaming authorized. Casino gaming and a system of wagering incorporated therein, as defined in this chapter, are authorized only to the extent that casino gaming and wagering are conducted in accordance with this chapter. In case of any conflict between this chapter and any other law regarding casino gambling, this chapter shall prevail. This chapter and the rules adopted by the commission shall apply to all persons who are licensed or otherwise participate in gaming as permitted under this chapter.
§ -2 Definitions. As used in this chapter, unless the context clearly requires otherwise:
"Affiliate" means a person who, directly or indirectly, through one or more intermediaries:
(1) Controls, is controlled by, or is under common control;
(2) Is in a partnership or joint venture relationship; or
(3) Is a co-shareholder of a corporation, a co-member of a limited liability company, or a co-partner in a limited liability partnership;
with a person who holds or applies for a casino license under this chapter.
"Agent" means any person who is employed by any agency of the State, other than the commission, who is assigned to perform full-time services on behalf of or for the benefit of the commission regardless of the title or position held by that person.
"Applicant" means any person who applies for a license under this chapter.
"Casino facility" means a freestanding, land-based structure in which casino gaming permitted under this chapter may be conducted that may include bars, restaurants, showrooms, theaters, or other facilities, but does not include any structure used for hotel or other transient accommodation lodging purposes.
"Casino gaming", "limited casino gaming", "game", or "gaming", as the context may require, means the operation of games conducted pursuant to this chapter in a licensed casino facility including but not limited to the games commonly known as "baccarat", "twenty-one", "poker", "craps", "slot machine", "video gaming of chance", "roulette wheel", "Klondike table", "punch-board", "faro layout", "numbers ticket", "push car", "jar ticket", "pull tab", or their common variants, or any other game of chance that is authorized by the commission as a wagering device.
"Casino license" means a license to operate and maintain a casino facility for casino gaming permitted under this chapter.
"Chairperson" means the chairperson of the Hawaii gaming control commission.
"Commission" means the Hawaii gaming control commission.
"Conflict of interest" means a situation in which the private interest of a member, employee, or agent of the commission may influence the judgment of the member, employee, or agent in the performance of the member's, employee's, or agent's public duty under this chapter. A conflict of interest includes but is not limited to the following:
(1) Any conduct that would lead a reasonable person, knowing all of the circumstances, to conclude that the member, employee, or agent of the commission is biased against or in favor of an applicant;
(2) Acceptance of any form of compensation other than from the commission for any services rendered as part of the official duties of the member, employee, or agent for the commission; or
(3) Participation in any business being transacted with or before the commission in which the member, employee, or agent of the commission or the member's, employee's, or agent's parent, spouse, or child has a financial interest.
"Department" means the department of business, economic development, and tourism.
"Executive director" means the executive director of the commission.
"Ex parte communication" means any communication, direct or indirect, regarding a licensing application, disciplinary action, or a contested case under this chapter other than communication that takes place during a meeting or hearing conducted under this chapter or in a manner otherwise authorized by this chapter.
"Financial interest" or "financially interested" means any interest in investments, awarding of contracts, grants, loans, purchases, leases, sales, or similar matters under consideration or consummated by the commission or holding a one per cent or more ownership interest in an applicant or a licensee. For purposes of this definition, a member, employee, or agent of the commission shall be considered to have a financial interest in a matter under consideration if any of the following circumstances exist:
(1) The individual owns one per cent or more of any class of outstanding securities that are issued by a party to the matter under consideration or consummated by the commission; or
(2) The individual is employed by or is an independent contractor for a party to the matter under consideration or consummated by the commission.
"Gross receipts":
(1) Means the total of:
(A) Cash received or retained as winnings by a licensee;
(B) Cash received in payment for credit extended by a licensee to a patron for purposes of gaming; and
(C) Compensation received for conducting any game in which a licensee is not party to a wager; and
(2) Does not include:
(A) Counterfeit money or tokens;
(B) Coins of other countries that are received in gaming devices;
(C) Cash taken in fraudulent acts perpetrated against a licensee for which the licensee is not reimbursed; and
(D) Cash received as entry fees for contests or tournaments in which patrons compete for prizes.
"Individual" means a natural person.
"Institutional investor" means:
(1) Any retirement fund administered by a public agency for the exclusive benefit of federal, state, or county public employees;
(2) An employee benefit plan, or pension fund that is subject to the Employee Retirement Income Security Act of 1974, as amended;
(3) An investment company registered under the Investment Company Act of 1940, as amended (54 Stat. 789, 15 U.S.C. 80a-1 to 80a-3 and 80a-4 to 80a-64);
(4) A national bank as trustee of collective investment funds under title 12 Code of Federal Regulations section 9.18 of the rules of the United States Comptroller of the Currency;
(5) A closed end investment trust;
(6) A chartered or licensed life insurance company or property and casualty insurance company;
(7) A chartered or licensed financial institution;
(8) An investment advisor registered under the Investment Advisers Act of 1940 (54 Stat. 847, 15 U.S.C. sections 80b-1 to 80b-21 as amended); and
(9) Any other person as the commission may determine for reasons consistent with this chapter.
"Investigative hearing" means any hearing conducted by the commission or its authorized representative to investigate and gather information or evidence regarding pending license applicants, qualifiers, licensees, or alleged or apparent violations of this chapter or rules adopted by the commission. An investigative hearing shall include any matter related to an apparent deficiency, except for informal conferences requested under section ‑11.
"Junket enterprise" means any person other than a casino licensee or applicant who employs or otherwise engages in the procurement or referral of persons who may participate in a junket to a casino licensed under this chapter or casino enterprise whether or not those activities occur within the State.
"Managerial employee" means a person who holds a policy making position with the commission or any vendor or licensee under this chapter.
"Occupational license" means a license issued by the commission to a person or entity to perform an occupation relating to casino gaming in the State that the commission has identified as an occupation that requires a license.
"Person" means an individual, association, partnership, estate, trust, corporation, limited liability company, or other legal entity.
"Qualifier" means an affiliate, affiliated company, officer, director, or managerial employee of an applicant, or a person who holds greater than a five per cent direct or indirect interest in an applicant. As used in this definition, "affiliate" and "affiliated company" do not include a partnership, a joint venture relationship, a co-shareholder of a corporation, a co-member of a limited liability company, or a co-partner in a limited liability partnership that has a five per cent or less direct interest in the applicant and is not involved in the casino as defined in rules adopted by the commission.
"Supplier" means a person that the commission has identified under rules adopted by the commission as requiring a license to provide casino licensees with goods or services regarding the realty, construction, maintenance, or business of a proposed or existing casino facility on a regular or continuing basis, including junket enterprises, security businesses, manufacturers, distributors, persons who service gaming devices or equipment, garbage haulers, maintenance companies, food purveyors, and construction companies.
"Supplier's license" means a license that authorizes a supplier to furnish any equipment, devices, supplies, or services to a licensed casino facility permitted under this chapter.
"Vendor" means a person who is not licensed under this chapter who supplies any goods or services to a casino licensee or supplier licensee.
"Wagerer" means a person who plays a gambling game authorized under this chapter.
"Waikiki" means that area of Oahu bounded by the Ala Wai Canal, the ocean, and Kapahulu Avenue.
§ -3 Hawaii gaming control commission. (a) There is established the Hawaii gaming control commission, which shall be a body corporate and a public instrumentality of the State for the purpose of implementing this chapter. The commission shall be placed within the department of business, economic development, and tourism for administrative purposes. The commission shall consist of five members to be appointed by the governor with the advice and consent of the senate under section 26-34. Of the five members, one shall be appointed from a list of nominees submitted by the president of the senate and one shall be appointed from a list of nominees submitted by the speaker of the house of representatives. Appointments of initial commission members shall be made within ten days of the effective date of this Act.
(b) No person shall be appointed as a member of the commission or continue to be a member of the commission if the person:
(1) Is an elected state official;
(2) Is licensed by the commission pursuant to this chapter, or is an official of, has a financial interest in, or has a financial relationship with, any gaming operation subject to the jurisdiction of this commission pursuant to this chapter;
(3) Is related to any person within the second degree of consanguinity or affinity who is licensed by the commission pursuant to this chapter; or
(4) Has been under indictment, convicted, pled guilty or nolo contendere, or forfeited bail for a felony or a misdemeanor involving gambling or fraud under the laws of this State, any other state, or the United States within the ten years prior to appointment, or a local ordinance in a state involving gambling or fraud that substantially corresponds to a misdemeanor in that state within the ten years prior to appointment.
(c) The term of office of a commission member shall be five years. Vacancies in the commission shall be filled for the unexpired term in like manner as the original appointments; provided that the governor shall have thirty days following the occurrence of a vacancy to appoint a successor member to the commission.
(d) After due notice and public hearing, the governor may remove or suspend for cause any member of the commission.
(e) Members of the commission shall:
(1) Be a resident of the State;
(2) Serve part-time;
(3) Be paid compensation of $300 for each day in the performance of official duties; and
(4) Be reimbursed for expenses, including travel expenses, incurred in the performance of official duties.
(f) Officers of the commission, including the chairperson, shall be selected by the members. The commission, subject to chapter 92, shall hold at least one meeting in each quarter of the State's fiscal year. The commission shall hold its initial meeting within twenty days of the effective date of this Act. Special meetings may be called by the chairperson or any three members upon seventy-two hours written notice to each member. Three members shall constitute a quorum, and a majority vote of the five members present shall be required for any final determination by the commission. The commission shall keep a complete and accurate record of all its meetings.
(g) Before assuming the duties of office, each member of the commission shall take an oath that the member shall faithfully execute the duties of office according to the laws of the State and shall file and maintain with the director a bond in the sum of $25,000 with good and sufficient sureties. The cost of any bond for any member of the commission under this section shall be considered a part of the necessary expenses of the commission.
(h) The commission shall appoint a person to serve as the executive director of the commission and who shall be subject to the commission's supervision. The commission shall appoint an interim executive director within ten days of the commission’s initial meeting who shall be exempt from paragraphs (3) and (4) such that the interim executive director may be a current public employee or regulatory official from a similar body in another state who temporarily undertakes the role of interim executive director. The executive director shall:
(1) Hold office at the will of the commission;
(2) Be exempt from chapters 76 and 89;
(3) Devote full time to the duties of the office;
(4) Not hold any other office or employment;
(5) Perform any and all duties that the commission assigns; and
(6) Receive an annual salary at an amount set by the commission, and shall be reimbursed for expenses actually and necessarily incurred in the performance of the executive director's duties.
(i) Except as otherwise provided by law, the executive director may:
(1) Hire assistants, other officers, and employees, who shall be exempt from chapters 76 and 89 and who shall serve at the will of the executive director; and
(2) Appoint committees and consultants necessary for the efficient operation of casino gaming; provided that no person shall be hired or appointed under this subsection who:
(A) Is an elected state official;
(B) Is licensed by the commission pursuant to this chapter or is an official of, has a financial interest in, or has a financial relationship with, any gaming operation subject to the jurisdiction of this commission pursuant to this chapter;
(C) Is related to any person within the second degree of consanguinity or affinity who is licensed by the commission pursuant to this chapter; or
(D) Has been under indictment, convicted, pled guilty or nolo contendere, or forfeited bail for a felony or misdemeanor concerning gambling or fraud under the laws of this State, any other state, or the United States within the last ten years, or a local ordinance in any state involving gambling or fraud that substantially corresponds to a misdemeanor in that state within the ten years prior to employment.
(j) The salaries of employees hired pursuant to subsection (i) shall be set by the executive director.
(k) The commission shall adopt rules in accordance with chapter 91 establishing a code of ethics for its employees that shall include restrictions on which employees are prohibited from participating in or wagering on any casino game or casino gaming operation subject to the jurisdiction of the commission. The code of ethics shall be separate from and in addition to any standards of conduct set forth pursuant to chapter 84.
(l) No person shall be employed by the commission if:
(1) During the three years immediately preceding appointment or employment, the person held any direct or indirect interest in, or was employed by:
(A) A casino licensee under this chapter or in another jurisdiction; or
(B) A potential casino licensee who had an application to operate a casino pending before the commission or any other jurisdiction;
except that the person seeking employment may be employed by the commission if the person's interest in a casino licensee would not, in the opinion of the commission, interfere with the objective discharge of the person's employment obligations. A person shall not be employed by the commission if the person's interest in the casino licensee constitutes a controlling interest in that casino licensee; or
(2) The person or the person's spouse, parent, child, child's spouse, or sibling, is a member of the commission, or a director of, or a person financially interested in, any person licensed as a casino licensee or casino supplier, or any person who has an application for a casino or occupational license pending before the commission.
(m) Each member of the commission, the executive director, and each key employee, as determined by the commission, shall file with the governor a financial disclosure statement:
(1) Listing all assets, liabilities, and property and business interests of the member, executive director, key employee, and any of their spouses; and
(2) Affirming that the member, executive director, and key employee are in compliance with this chapter.
The financial disclosure statement shall be made under oath and filed at the time of employment and annually thereafter.
(n) Each employee of the commission, except the executive director or a key employee, shall file with the commission at the time of employment a financial disclosure statement listing all assets, liabilities, property and business interests, and sources of income of the employee and the employee's spouse.
(o) A member of the commission, executive director, or key employee shall not hold direct or indirect interest in, be employed by, or enter into a contract for service with, any applicant or person licensed by the commission for a period of five years after the date of termination of the person's membership on or employment with the commission.
(p) An employee of the commission shall not acquire any direct or indirect interest in, be employed by, or enter into a contract for services with any applicant or person licensed by the commission for a period of three years after the date of termination of the person's employment with the commission.
(q) A commission member or a person employed by the commission shall not represent a person or party other than the State before or against the commission for a period of three years after the date of termination of the member's term of office or the employee's period of employment with the commission.
(r) A business entity in which a former commission member or employee or agent has an interest, or any partner, officer, or employee of the business entity, shall not make any appearance or representation before the commission that is prohibited to that former member, employee, or agent. As used in this subsection, "business entity" means a corporation, limited liability company, partnership, limited liability partnership association, trust, or other form of legal entity.
§ -4 Staff. (a) The executive director shall keep records of all proceedings of the commission and shall preserve all records, books, documents, and other papers belonging to the commission or entrusted to its care relating to casino gaming.
(b) In addition to persons hired under section ‑3(i), the commission may employ any personnel that may be necessary to carry out its duties related to casino gaming.
§ -5 Powers of the commission. (a) The commission shall have all powers necessary to fully and effectively supervise all casino gaming operations, including the power to:
(1) Administer, regulate, and enforce the system of casino gaming established by this chapter. The commission's jurisdiction shall extend to every person, association, corporation, partnership, trust, and any other entity with a financial interest in or holding a license under this chapter, or required under this chapter to hold a license in casino gaming operations in the city and county of Honolulu;
(2) Issue a twenty-year casino license to operate a casino facility pursuant to this chapter;
(3) Determine the types and numbers of occupational and supplier's licenses to be permitted under this chapter;
(4) Adopt standards for the licensing of all persons under this chapter subject to the qualifications and standards set forth herein, to issue licenses, and to establish and collect fees for these licenses;
(5) Provide for the collection of all taxes imposed pursuant to this chapter, and to collect, receive, expend, and account for all revenues derived from casino gaming within the city and county of Honolulu;
(6) Enter at any time without a warrant and without notice to a licensee, the premises, offices, casino facility, or other places of business of a casino licensee, or casino supplier licensee, where evidence of the compliance or noncompliance with this chapter or rules is likely to be found. Entry is authorized to:
(A) Inspect and examine all premises wherein casino gaming or the business of gaming or the business of a supplier is conducted, or where any records of the activities are prepared;
(B) Inspect, examine, audit, impound, seize, or assume physical control of, or summarily remove from the premises all books, ledgers, documents, writings, photocopies of correspondence records, videotapes, including electronically or digitally stored records, money receptacles, other containers and their contents, equipment in which the records are stored, or other gaming related equipment and supplies on or around the premises, including counting rooms;
(C) Inspect the person, and inspect, examine, and seize personal effects present in a casino facility licensed under this chapter, of any holder of a licensed casino facility; and
(D) Investigate and deter alleged violations of this chapter or rules;
(7) Investigate alleged violations of this chapter and to take appropriate disciplinary action against a casino licensee or a holder of an occupational or supplier license for a violation, or institute appropriate legal action for enforcement, or both;
(8) Be present, through its inspectors and agents, any time casino gaming operations are conducted in a casino for the purpose of certifying the casino's revenue, receiving complaints from the public, and conducting other investigations into the conduct of the casino gaming and the maintenance of the equipment as from time to time the commission may deem necessary and proper;
(9) Adopt appropriate standards for a casino facility as well as for electronic or mechanical gaming devices;
(10) Require that records including financial or other statements of a casino licensee under this chapter be kept in the manner prescribed by the commission and that a licensee involved in the ownership or management of casino gaming operations submit to the commission an annual balance sheet and profit and loss statement, a list of the stockholders or other persons having a five per cent or greater beneficial interest in the gaming activities of the licensee, and any other information the commission deems necessary to effectively administer this chapter;
(11) Conduct hearings, issue subpoenas for the attendance of witnesses and subpoenas duces tecum for the production of books, records, and other pertinent documents, and to administer oaths and affirmations to the witnesses, when, in the judgment of the commission, it is necessary to administer or enforce this chapter. The executive director or the executive director's designee may issue subpoenas and administer oaths and affirmations to witnesses;
(12) Eject or exclude, or authorize the ejection or exclusion of, any person from casino facilities where the person is in violation of this chapter or where the person's conduct or reputation is such that the person's presence within a casino facility, in the opinion of the commission, may call into question the honesty and integrity of the casino gaming operation or interfere with the orderly conduct thereof or any other action that, in the opinion of the commission, is a detriment or impediment to the casino gaming operations; provided that the propriety of that ejection or exclusion shall be subject to subsequent hearing and determination by the commission;
(13) Permit a casino licensee of casino gaming operations to use a wagering system whereby wagerers' money may be converted to tokens, electronic cards, or chips, which shall be used only for wagering within the casino facility;
(14) Suspend, revoke, or restrict licenses, to require the removal of a licensee or an employee of a licensee for a violation of this chapter or a commission rule, or for engaging in a fraudulent practice;
(15) Impose and collect fines of up to $5,000 against individuals and up to $10,000 or an amount equal to the daily gross receipts, whichever is larger, against a licensee for each violation of this chapter, any rules adopted by the commission, or for any other action which, in the commission's discretion, is a detriment or impediment to casino gaming operations;
(16) Establish minimum levels of insurance to be maintained by a licensee;
(17) Delegate the execution of any of its powers for the purpose of administering and enforcing this chapter; and
(18) Adopt rules pursuant to chapter 91 to implement this chapter; provided that the regulations of the Nevada gaming commission and Nevada state gaming control board ("the Nevada regulations") that are in effect on the effective date of this Act shall be the emergency interim rules of the commission. As adopted under this chapter, all references in the Nevada regulations to "Nevada" shall mean "Hawaii" and all references to any Nevada state department, agency, commission, statute, or rule shall mean the equivalent or similar department, agency, commission, statute, or rule of the State. To the extent the Nevada regulations are inconsistent with this chapter, this chapter shall supersede the Nevada regulations. Due to the imminent peril to public health, safety, or morals absent valid rules related to gaming authorized by this chapter, the commission, pursuant to chapter 91, may amend the emergency interim rules to correct inconsistencies between the Nevada regulations and this chapter, but the commission shall retain as much of the emergency interim rules as possible until at least the date on which the casino licensee authorized by this chapter begins operating the gaming facility authorized under this chapter.
(b) Rules adopted under this chapter shall not be arbitrary, capricious, or contradictory to the provisions of chapter 91. Rules may include but need not be limited to rules that:
(1) Govern, restrict, approve, or regulate the casino gaming authorized in this chapter;
(2) Promote the safety, security, and integrity of casino gaming authorized in this chapter;
(3) License and regulate, consistent with the qualifications and standards set forth in this chapter, persons participating in or involved with casino gaming authorized in this chapter; and
(4) Authorize any other action that may be reasonable or appropriate to enforce this chapter and rules adopted under this chapter.
This section is not intended to limit warrantless inspections except in accordance with constitutional requirements.
§ -6 Member, employee, or agent of commission; conduct generally. (a) By January 31 of each year, each member of the commission shall prepare and file with the commission a disclosure form in which the member shall:
(1) Affirm that the member or the member's spouse, parent, child, or child's spouse is not a member of the board of directors of, financially interested in, or employed by, a licensee or applicant;
(2) Affirm that the member continues to meet all other criteria for commission membership under this chapter or the rules adopted by the commission;
(3) Disclose any legal or beneficial interest in any real property that is or may be directly or indirectly involved with gaming operations authorized by this chapter; and
(4) Disclose any other information that may be required to ensure that the integrity of the commission and its work is maintained.
(b) By January 31 of each year, each employee of the commission shall prepare and file with the commission a disclosure form in which the employee shall:
(1) Affirm the absence of financial interests prohibited by this chapter;
(2) Disclose any legal or beneficial interests in any real property that is or that may be directly or indirectly involved with gaming or gaming operations authorized by this chapter;
(3) Disclose whether the employee or the employee's spouse, parent, child, or child's spouse is financially interested in or employed by a supplier licensee, or an applicant for a supplier's license, under this chapter; and
(4) Disclose any other information that may be required to ensure that the integrity of the commission and its work is maintained.
(c) A member, employee, or agent of the commission who becomes aware that the member, employee, or agent of the commission or their spouse, parent, or child is a member of the board of directors of, financially interested in, or employed by a licensee or an applicant shall immediately provide detailed written notice to the chairperson.
(d) A member, employee, or agent of the commission who has been indicted, charged with, convicted of, pled guilty or nolo contendere to, or forfeited bail for:
(1) A misdemeanor involving gambling, dishonesty, theft, or fraud;
(2) A local ordinance in any state involving gambling, dishonesty, theft, or fraud that substantially corresponds to a misdemeanor in that state; or
(3) A felony under Hawaii law, the laws of any other state, or the laws of the United States, or any other jurisdiction;
shall immediately provide detailed written notice of the conviction or charge to the chairperson.
(e) Any member, employee, or agent of the commission who is negotiating for, or acquires by any means, any interest in any person who is a licensee or an applicant, or is affiliated with such a person, shall immediately provide written notice of the details of the interest to the chairperson. The member, employee, or agent of the commission shall not act on behalf of the commission with respect to that person.
(f) A member, employee, or agent of the commission shall not enter into any negotiations for employment with any person or affiliate of any person who is a licensee or an affiliate and shall immediately provide written notice of the details of any such negotiations or discussions to the chairperson. The member, employee, or agent of the commission shall not take any action on behalf of the commission with respect to that person.
(g) Any member, employee, or agent of the commission who receives an invitation, written or oral, to initiate a discussion concerning employment or the possibility of employment with a person, or affiliate of a person, who is a licensee or an applicant shall immediately report the invitation to the chairperson. The member, employee, or agent of the commission shall not take action on behalf of the commission with respect to that person.
(h) A licensee or applicant shall not knowingly initiate a negotiation for, or discussion of, employment with a member, employee, or agent of the commission. A licensee or applicant who initiates a negotiation or discussion about employment shall immediately provide written notice of the details of the negotiation or discussion to the chairperson as soon as that person becomes aware that the negotiation or discussion has been initiated with a member, employee, or agent of the commission.
(i) A member, employee, or agent of the commission, or former member, employee, or agent of the commission, shall not disseminate or otherwise disclose any material or information in the possession of the commission that the commission considers confidential, unless specifically authorized to do so by the chairperson or the commission.
(j) A member, employee, or agent of the commission or a parent, spouse, sibling, or child of a member, employee, or agent of the commission shall not accept any gift, gratuity, compensation, travel, lodging, or anything of value, directly or indirectly from any licensee, applicant, or any affiliate or representative of an applicant or licensee, unless the acceptance conforms to a written policy or directive issued by the chairperson or the commission. Any member, employee, or agent of the commission who is offered or receives any gift, gratuity, compensation, travel, lodging, or anything of value, directly or indirectly, from any licensee or any applicant or affiliate or representative of an applicant or licensee shall immediately provide written notification of the details to the chairperson.
(k) A licensee or applicant, or affiliate or representative of an applicant or licensee, shall not, directly or indirectly, knowingly give or offer to give any gift, gratuity, compensation, travel, lodging, or anything of value to any member, employee, or agent of the commission that the member, employee, or agent of the commission is prohibited from accepting under subsection (j).
(l) A member, employee, or agent of the commission shall not engage in any conduct that constitutes a conflict of interest, and shall immediately advise the chairperson in writing of the details of any incident or circumstances that would present the existence of a conflict of interest with respect to the performance of commission-related work or duty of the member, employee, or agent of the commission.
(m) A member, employee, or agent of the commission who is approached and offered a bribe in violation of this chapter shall immediately provide a written account of the details of the incident to the chairperson and to a law enforcement officer of a law enforcement agency having jurisdiction.
(n) A member, employee, or agent of the commission shall disclose past involvement with any casino interest in the past five years and shall not engage in political activity or politically-related activity during the duration of the person's appointment or employment.
(o) A former member, employee, or agent of the commission may appear before the commission as a witness testifying as to factual matters or actions handled by the member, employee, or agent during the person's tenure as a member, employee, or agent of the commission. The member, employee, or agent of the commission shall not receive compensation for such an appearance other than a standard witness fee and reimbursement for travel expenses as established by statute or court rule.
(p) A licensee or applicant or any affiliate or representative of an applicant or licensee shall not engage in ex parte communications concerning a pending application, license, or enforcement action with members of the commission. A member of the commission shall not engage in any ex parte communications with a licensee or an applicant, or with any affiliate or representative of an applicant or licensee, concerning a pending application, license, or enforcement action.
(q) Any commission member, licensee, or applicant or affiliate or representative of a commission member, licensee, or applicant who receives any ex parte communication in violation of subsection (p), or who is aware of an attempted communication in violation of subsection (p), shall immediately report details of the communication or attempted communication in writing to the chairperson.
(r) Any member of the commission who receives an ex parte communication that attempts to influence that member's official action shall disclose the source and content of the communication to the chairperson. The chairperson may investigate or initiate an investigation of the matter with the assistance of the attorney general and law enforcement to determine if the communication violates subsection (p) or (q) or other state law. The disclosure under this section and the investigation shall remain confidential. Following an investigation, the chairperson shall advise the governor or the commission, or both, of the results of the investigation and may recommend action, as the chairperson considers appropriate.
(s) A new or current employee or agent of the commission shall obtain written permission from the executive director before continuing outside employment held at the time the employee begins to work for the commission. Permission shall be denied, or permission previously granted shall be revoked, if the nature of the work is considered to, or does create, a possible conflict of interest or otherwise interferes with the duties of the employee or agent for the commission.
(t) An employee or agent of the commission granted permission for outside employment shall not conduct any business or perform any activities, including solicitation, related to outside employment on premises used by the commission or during the employee's working hours for the commission.
(u) Whenever the chairperson is required to file disclosure forms or report in writing the details of any incident or circumstance pursuant to this section, the chairperson shall file the forms or reports to the commission.
(v) The chairperson shall report any action the chairperson has taken or contemplates taking under this section, with respect to an employee or agent or former employee or former agent, to the commission at the next meeting of the commission. The commission may direct the executive director to take additional or different action.
(w) No member, employee, or agent of the commission may participate in or wager on any gambling game conducted by a licensee or applicant or any affiliate of an applicant or licensee in the State or in any other jurisdiction, except as follows:
(1) A member, employee, or agent of the commission may participate in and wager on a gambling game conducted by a licensee under this chapter, to the extent authorized by the chairperson or commission as part of the person's surveillance, security, or other official duties for the commission; and
(2) A member, employee, or agent of the commission shall advise the chairperson at least twenty-four hours in advance if the person plans to be present in a casino in this State, or in another jurisdiction, operated by a licensee, applicant, or affiliate of a licensee or applicant, outside the scope of their official duties for the commission.
(x) Violation of this section by a licensee, applicant, or affiliate or representative of a licensee or applicant shall constitute grounds for the commission to deny the application of licensure, revoke or suspend a license, or take other disciplinary action.
(y) Violation of this section by a member of the commission may result in disqualification or constitute cause for removal under section ‑3(d) or other disciplinary action as determined by the commission.
(z) A violation of this section by an employee or agent of the commission shall not result in termination of employment or require other disciplinary action if the commission determines that the conduct involved does not violate the purpose of this chapter. Employment shall be terminated:
(1) If the employee or agent is a spouse, parent, child, or spouse of a child of a commission member; or
(2) If, after being offered employment or having begun employment with the commission, the employee or agent intentionally acquires a financial interest in a licensee or an applicant, or affiliate or representative of a licensee or applicant.
(aa) If a financial interest in a licensee or an applicant, or affiliate or representative of a licensee or applicant, is acquired by:
(1) An employee or agent that has been offered employment with the commission;
(2) An employee of the commission; or
(3) The employee's or agent's spouse, parent, or child;
through no intentional action of the employee or agent, the employee or agent shall have up to thirty days to divest or terminate the financial interest. Employment may be terminated if the interest has not been divested after thirty days.
(bb) Violation of this section does not create a civil cause of action.
(cc) As used in this section:
"Outside employment" includes the following:
(1) Operation of a proprietorship;
(2) Participation in a partnership or group business enterprise; or
(3) Performance as a director or corporate officer of any for-profit corporation, or banking or credit institution.
"Political activity" or "politically related activity" includes any of the following:
(1) Using the person's official authority or influence for the purpose of interfering with or affecting the result of an election;
(2) Knowingly soliciting, accepting, or receiving political contributions from any person;
(3) Running for nomination or as a candidate for election to a partisan political office; or
(4) Knowingly soliciting or discouraging the participation in any political activity of any person who is:
(A) Applying for any compensation, grant, contract, ruling, license, permit, or certificate pending before the commission; or
(B) The subject of or a participant in an ongoing audit, investigation, or enforcement action being carried out by the commission.
§ -7 Authorization of limited gaming. (a) Casino gaming shall only be permitted in one casino facility in the Waikiki. The casino facility shall only be mauka of Kalakaua Avenue. Any application for a casino license to operate the casino facility shall include a casino facility development plan for the casino facility.
(b) The commission's application for a casino license to operate a casino facility shall be the same applications and forms required for an applicant for a non-restricted Nevada gaming license that have been adopted by the Nevada gaming commission and Nevada state gaming control board ("Nevada application") and are in effect on the effective date of this Act. In addition to the Nevada application, as part of an applicant's application for a casino license to operate a casino facility, an applicant shall submit all additional information required by section ‑8. Applications for a casino license shall be submitted to the commission no later than thirty days after the date of the commission's initial meeting. No later than ninety days after the final date for submission of applications to the commission, the commission shall select one applicant who in the commission's judgment best meets all of the criteria pursuant to section ‑9. If the applicant selected by the commission meets all the requirements of this chapter, the commission shall issue a casino license to that applicant within thirty days after the date the applicant is selected.
§ -8 Casino license; application; fee. (a) The application for a casino license under this chapter shall be made under oath on forms required by this chapter and shall include all of the following:
(1) The name, business address, telephone number, social security number and, where applicable, the federal tax identification number of the applicant and every qualifier;
(2) The identity of any business, including, if applicable, the state of incorporation or registration, in which the applicant or qualifier has an equity interest of more than five per cent. If the applicant or qualifier is a corporation, partnership or other business entity, the applicant or qualifier shall identify any other corporation, partnership, or other business entity in which it has an equity interest of more than five per cent, including, if applicable, the state of incorporation or registration;
(3) An explanation whether the applicant or qualifier has developed and opened a new land-based casino in an urban area within a jurisdiction in the United States that previously did not allow gaming, including a description of the casino, the casino's gross revenue, and the amount of revenue the casino has generated for state and local governments within that jurisdiction;
(4) A statement whether the applicant or a qualifier has been indicted, convicted, pled guilty or nolo contendere, or forfeited bail for any felony or for a misdemeanor involving gambling, theft, or fraud. The statement shall include the date, the name and location of the court, arresting agency, prosecuting agency, the case caption, the docket number, the offense, the disposition, and the location and length of incarceration;
(5) A statement whether the applicant or a qualifier has ever been granted any license or certificate issued by a licensing authority in the State, or any other jurisdiction that has been restricted, revoked, or not renewed. The statement shall describe the facts and circumstances concerning that restriction, revocation, or nonrenewal, including the licensing authority, the date each action was taken, and the reason for each action;
(6) A statement whether the applicant or a qualifier, within the last ten years, has filed or had filed against it a civil or administrative action or proceeding in bankruptcy;
(7) A statement whether the applicant or a qualifier, within the last five tax years, has been adjudicated by a court or tribunal to have failed to pay any final amount of any income, sales, or gross receipts tax due and payable under federal, state, or local law, after exhaustion of all inter-agency appeals processes. This statement shall identify the amount of the tax, type of tax, time periods involved, and resolution;
(8) A statement listing the names and titles of all public officials or officers of any unit of state government or county government in the jurisdiction in which the casino facility is to be located, and the spouses, parents, and children of those public officials or officers who, directly or indirectly, own any financial interest in, have any beneficial interest in, are the creditors of or hold any debt instrument issued by, or hold or have an interest in any contractual or service relationship with, the applicant or a qualifier. As used in this paragraph, "public official" or "officer" does not include a person who would be listed solely because of the person's state or federal military service;
(9) The name and business telephone number of any attorney, counsel, or any other person representing an applicant or a qualifier in matters before the commission;
(10) A description of the applicant or its qualifiers' history of, or plan for, community involvement or investment in the area where the casino facility will be located; and
(11) For the applicant only, a description of any proposed or approved casino gaming facility, including the economic benefit to the community, anticipated or actual number of employees, any statement from an applicant regarding compliance with federal and state affirmative action guidelines, projected or actual admissions, projected or actual gross receipts, and scientific market research, if any.
(b) Information provided on the application shall be used as the basis for a thorough background investigation that the commission shall conduct with respect to each applicant and qualifier, but any financial information submitted by each applicant and qualifier shall be kept confidential by the commission. An incomplete application shall be cause for denial of a license by the commission.
(c) Applicants shall submit with their application a plan for training residents of the State for jobs that are available at the casino facility. The plan shall take into consideration the need to provide training to low-income persons to enable those persons to qualify for jobs that will be created in the casino facility.
(d) Each applicant and qualifier shall disclose the identity of every person, association, trust, or corporation having a greater than five per cent direct or indirect financial interest in the casino gaming operation for which the license is sought. If the disclosed entity is a trust, the application shall disclose the names and addresses of the beneficiaries; if a corporation, the names and addresses of all stockholders and directors; if a partnership, the names and addresses of all partners, both general and limited.
(e) A nonrefundable application fee of $1,000,000 shall be paid to the commission by an applicant at the time of filing to defray the costs associated with an applicant and qualifier's background investigation conducted by the commission. If the costs of the investigation exceed $1,000,000, the applicant shall pay the additional amount to the commission.
§ -9 Criteria for award of a casino license; transfer of license prohibited. (a) The commission shall issue one casino license to operate a casino facility to the applicant that has paid the application fee required under section ‑8, is eligible and suitable to receive a casino license under this chapter and the rules adopted by the commission, and best satisfies all of the following criteria:
(1) The applicant has submitted a casino facility development plan for the casino facility that provides the greatest likelihood that the applicant's casino facility will increase tourism, generate jobs, provide revenue to the local economy, and provide revenue to the general fund;
(2) The applicant or its qualifiers have a history of, or a bona fide plan for, community involvement or investment in the area where the casino facility will be located;
(3) The applicant has the financial ability to purchase and maintain adequate liability and casualty insurance and to provide an adequate surety bond;
(4) The applicant has provided data identifying the applicant's sources of capital and demonstrating that the applicant has adequate capital to develop, construct, operate, and maintain the proposed casino facility;
(5) The applicant has adequate capitalization to develop, construct, operate, and maintain for the duration of the license, the proposed casino facility in accordance with the requirements of this chapter and rules adopted by the commission and to responsibly pay off its secured and unsecured debts in accordance with its financing agreement and other contractual obligations;
(6) The extent to which the applicant or any of its qualifiers demonstrate that they have at least ten years of experience within the past twenty years in helping to revitalize an urban area by successfully planning, developing, and opening and currently owning and operating a nongovernmentally owned, commercial land-based casino in an urban area in any jurisdiction in the United States that previously did not permit casino gaming. For purposes of this paragraph:
"Casino" means a lawfully operating gaming facility with at least 50,000 contiguous square feet of gaming space that includes at least 1,500 slot machines that are controlled by random number generators; and
"Urban area" means a county with a population of at least seven hundred fifty thousand residents;
(7) Neither the applicant nor any of its qualifiers have been indicted, convicted, pled guilty or nolo contendere, or forfeited bail for any felony or for a misdemeanor involving gambling, theft, or fraud;
(8) Neither the applicant nor any of its qualifiers, within the last ten years, have filed, or had filed against them a proceeding for bankruptcy;
(9) The extent to which an applicant or any of its qualifiers have, within the last five tax years, been adjudicated by a court or tribunal to have failed to pay any final amount of income, sales, or gross receipts tax due and payable under federal, state, or local law, after exhaustion of all inter-agency appeals processes;
(10) The extent to which the applicant meets other standards for the issuance of a casino license that the commission may have adopted by rule;
(11) To ensure the continued integrity of Hawaii collegiate athletics, neither the applicant, nor any parent or subsidiary of the applicant, are licensed in a jurisdiction that permits wagering on Hawaii collegiate athletics;
(12) The adequacy of the applicant's plan for training residents of the State for jobs that are available at the casino facility and the extent to which the plan considers the need to provide training to low-income persons to enable those persons to qualify for jobs that will be created in the casino facility; and
(13) The caliber of the proposed casino gaming facility, including the proposed casino facility's aesthetic appearance, amount of economic benefit to the community, anticipated or actual number of employees, compliance with federal and state affirmative action guidelines, and projected or actual gross receipts.
(b) Any rules adopted pursuant to chapter 91 shall not be arbitrary, capricious, or contradictory to the expressed provisions of this chapter and shall further define and clarify the criteria listed in subsection (a) rather than create new conditions for licensure.
(c) An applicant shall be ineligible to receive a casino license if the applicant or any employee or qualifier of the applicant:
(1) Has been convicted of a felony under the laws of this State, any other state, or the United States;
(2) Has been convicted of any violation under part III of chapter 712, or substantially similar laws of another jurisdiction;
(3) Knowingly submitted an application for a license under this chapter that contains false information;
(4) Is a member or employee of the commission; or
(5) Has had revoked a license to own or operate gaming facilities in this State or any other jurisdiction.
(d) To demonstrate financial ability, the applicant may include the economic resources available directly or indirectly to the casino license applicant and its qualifiers.
(e) Simultaneous with an applicant's submission of an application, each applicant and qualifier that is a natural person shall submit to the commission on fingerprint cards issued by the Federal Bureau of Investigation or in digital format two sets of fingerprints for each applicant and qualifier.
(f) The commission may revoke the casino license if the licensee fails to begin regular casino gaming operations within twelve months of receipt of the commission's approval of the application or twelve months after a certificate of occupancy for the casino facility is first issued, whichever is later, upon a finding by the commission that the casino license revocation is in the best interest of the State.
(g) The commission shall establish a process to facilitate and expedite the approval of the necessary licenses and permits. The commission may establish its own procedures for the issuance of liquor licenses for any holder of a casino license under this chapter and the holder of a casino license shall not be subject to any requirement of the Honolulu liquor commission as to the approval of forms of live/professional music, dancing, and entertainment; provided that all other state laws and county ordinances relating to liquor are met. The commission shall be the receiving agency for any environmental assessment required under chapter 343.
(h) Once issued, a casino license issued pursuant to this chapter shall be nontransferable and shall be valid only for the person or entity in whose name it was issued and for the operation of the casino facility at the designated place.
(i) Nothing in this chapter shall be interpreted to prohibit a casino licensee from operating a school to train occupational licensees.
§ -10 Bond of licensee. Before a casino license is issued, the licensee shall file a bond in the sum of $200,000 with the department. The bond shall be used to guarantee that the licensee faithfully makes the payments, keeps books and records, makes reports, and conducts games of chance in conformity with this chapter and rules adopted by the commission. The bond shall not be canceled by a surety on less than thirty days' notice in writing to the commission. If a bond is canceled and the licensee fails to file a new bond with the commission in the required amount on or before the effective date of cancellation, the licensee's license shall be revoked. The total and aggregate liability of the surety on the bond shall be limited to the amount specified in the bond.
§ -11 Application deficiency. (a) If, in the review of an application submitted under this chapter, the executive director identifies an apparent deficiency that, if true, would require denial of the license or the disqualification of a qualifier, the executive director shall immediately notify the affected applicant or qualifier in writing of the apparent deficiency. The applicant or qualifier may then request a confidential informal conference with the executive director to discuss the factual basis of the apparent deficiency.
(b) The executive director shall provide the applicant or qualifier a reasonable period of time to correct the apparent deficiency and, if the apparent deficiency is not corrected within the reasonable time period, the executive director shall find that the apparent deficiency has not been corrected. Following this finding, the affected applicant or qualifier shall have an opportunity to appeal the executive director's finding to the commission. The commission shall conduct an investigative hearing, pursuant to section ‑17 and in accordance with rules adopted under this chapter, to determine whether there is sufficient evidence to support an apparent deficiency finding. At the hearing, the burden of proof shall be on the executive director to demonstrate that the finding of an apparent deficiency is supported by law and facts. Any finding by the commission regarding an applicant or a qualifier's apparent deficiency shall not constitute a final determination by the commission as to the suitability of the applicant to hold a license, or the suitability of a qualifier to hold an ownership interest in a casino applicant.
(c) At any time prior to a finding by the commission that a qualifier is unsuitable to hold an ownership interest in a casino applicant, a qualifier shall have the ability to sell its ownership interest in the casino applicant to the casino applicant, another qualifier, or a third party.
(d) A qualifier who has been issued a finding of an apparent deficiency shall have the right to request that the commission expand the apparent deficiency hearing under this section to include a determination of the qualifier's suitability to hold an ownership interest in the casino license applicant. If such a request is made, the commission shall determine the suitability of the affected qualifier separate from the suitability of the casino applicant and any of its other qualifiers. A request by a qualifier for an extended hearing pursuant to this section shall not prevent the commission from issuing a license to the applicant. Until the commission determines that a qualifier under this section is suitable to hold an ownership interest in the casino applicant, the casino applicant or licensee shall not do any of the following:
(1) Make any direct or indirect payments or distributions of revenue or other benefits to the qualifier that are related in any way to the qualifier's interest in the applicant; and
(2) Pay any direct or indirect compensation to the qualifier for services rendered to the applicant, unless specifically approved and authorized by the commission.
§ -12 Institutional investor. (a) Unless the commission determines that an institutional investor is unqualified, an institutional investor holding less than ten per cent of the equity securities or ten per cent of the debt securities of a casino licensee's affiliate or affiliated company that is related in any way to the financing of the casino licensee, shall be granted a waiver of the eligibility and suitability requirements if:
(1) The securities represent a percentage of the outstanding debt of the affiliate or affiliated company not exceeding twenty per cent, or a percentage of any issue of the outstanding debt of the affiliate or affiliated company not exceeding fifty per cent;
(2) The securities are those of a publicly traded corporation and its holdings of those securities were purchased for investment purposes only; and
(3) Upon request by the commission, the institutional investor files with the commission a certified statement that it has no intention of influencing or affecting the affairs of the issuer, the casino licensee, or its affiliate or affiliated company.
(b) The commission may grant a waiver under this section to an institutional investor holding a higher percentage of securities than allowed in subsection (a) upon a showing of good cause and if the conditions specified in subsection (a) are met.
(c) An institutional investor granted a waiver under this section that subsequently intends to influence or affect the affairs of the issuer shall provide notice to the commission and file an application for a determination of eligibility and suitability before taking any action that may influence or affect the affairs of the issuer.
(d) Notwithstanding any provisions of this chapter, an institutional investor may vote on all matters that are put to the vote of the outstanding security holders of the issuer.
(e) If an institutional investor changes its investment intent or if the commission finds that the institutional investor is unqualified, no action other than divestiture of the security holdings shall be taken until there has been compliance with this chapter.
(f) The casino licensee or an affiliate or affiliated company of the casino licensee shall immediately notify the commission of any information concerning an institutional investor holding its equity or debt securities that may affect the eligibility and suitability of the institutional investor for a waiver under this section.
(g) If the commission finds that an institutional investor, holding any security of an affiliate or affiliated company of a casino licensee that is related in any way to the financing of the casino licensee, fails to comply with the requirements of this section, or if at any time the commission finds that, by reason of the extent or nature of its holdings, an institutional investor is in a position to exercise a substantial impact upon the controlling interests of a casino licensee, the commission may take any necessary action to protect the public interest, including requiring the institutional investor to satisfy the eligibility and suitability requirements under sections ‑8, ‑9, and ‑10.
§ -13 Supplier's licenses. (a) No person shall furnish in excess of $500,000 worth of equipment, devices, or supplies to a licensed casino gaming operation under this chapter unless the person has first obtained a supplier's license pursuant to this section. The commission may issue a supplier's license to any person, firm, or corporation who pays a nonrefundable application fee as set by the commission upon a determination by the commission that the applicant is eligible for a supplier's license and upon payment by the applicant of a $5,000 license fee. Supplier's licenses shall be renewable annually upon payment of the $5,000 annual license fee and a determination by the commission that the licensee continues to meet all of the requirements of this chapter.
(b) The holder of a supplier's license may sell or lease, or contract to sell or lease, gaming equipment and supplies to any licensee involved in the ownership or management of casino gaming operations.
(c) Casino gaming supplies and equipment shall not be distributed unless supplies and equipment conform to standards adopted by rules of the commission.
(d) A person, firm, or corporation shall be ineligible to receive a supplier's license if:
(1) The person has been convicted of a felony under the laws of this State, any other state, or the United States;
(2) The person has been convicted of any violation under part III, chapter 712, or substantially similar laws of another jurisdiction;
(3) The person has knowingly submitted an application for a license under this chapter that contains false information;
(4) The person is a member of the commission;
(5) The firm or corporation is one in which a person defined in paragraph (1), (2), (3), or (4) is an officer, director, or managerial employee;
(6) The firm or corporation employs a person, defined in paragraph (1), (2), (3), or (4), that participates in the management or operation of casino gaming authorized under this chapter; or
(7) The license of the person, firm, or corporation issued under this chapter, or a license to own or operate casino gaming facilities in any other jurisdiction, has been revoked.
(e) A supplier shall:
(1) Furnish to the commission a list of all equipment, devices, and supplies offered for sale or lease in connection with casino games authorized under this chapter;
(2) Keep books and records for the furnishing of equipment, devices, and supplies to casino gaming operations separate and distinct from any other business that the supplier might operate;
(3) File quarterly returns with the commission listing all sales and leases;
(4) Permanently affix its name to all its equipment, devices, and supplies, used for casino gaming operations; and
(5) File an annual report listing its inventories of casino gaming equipment, devices, and supplies.
(f) Any person who knowingly makes a false statement on an application is guilty of a petty misdemeanor.
(g) Any casino gaming equipment, devices, or supplies provided by any licensed supplier may either be repaired in the casino facility or be removed from the casino facility to a facility owned by the holder of a casino license for repair. Any supplier's equipment, devices, and supplies that are used by any person in an unauthorized gaming operation shall be forfeited to the county.
§ -14 Occupational licenses. (a) The commission may issue an occupational license to an applicant upon:
(1) The payment of a nonrefundable application fee set by the commission;
(2) A determination by the commission that the applicant is eligible for an occupational license; and
(3) Payment of an annual license fee in an amount set by the commission.
(b) To be eligible for an occupational license, an applicant shall:
(1) Be at least twenty-one years of age if the applicant performs any function involved in casino gaming by patrons. Any applicant seeking an occupational license for a non-gaming function shall be at least eighteen years of age;
(2) Not have been convicted of a felony offense in any jurisdiction or a crime involving dishonesty or moral turpitude; and
(3) Have met standards for the holding of an occupational license as provided in rules adopted by the commission, including background inquiries and other requirements.
(c) Each application for an occupational license shall be on forms prescribed by the commission and shall contain all information required by the commission. The applicant shall set forth in the application whether the applicant:
(1) Has been issued prior gaming-related licenses in any jurisdiction;
(2) Has been licensed in any other jurisdiction under any other name, and if so, the name and the applicant's age at the time; and
(3) Has had a permit or license issued from any other jurisdiction suspended, restricted, or revoked, and if so, for what period of time.
(d) Each applicant shall submit with the application two sets of the applicant's fingerprints. The commission shall charge each applicant a fee to defray the costs associated with the search and classification of fingerprints obtained by the commission with respect to the application.
(e) The commission may refuse to grant an occupational license to any person:
(1) Who is unqualified to perform the duties required of the applicant;
(2) Who fails to disclose or states falsely any information called for in the application;
(3) Who has been found guilty of a violation of this chapter or whose prior casino gaming related license or application has been suspended, restricted, revoked, or denied for just cause in any other jurisdiction; or
(4) For any other just cause.
(f) The commission may suspend, revoke, or restrict any occupational licensee:
(1) For any violation of this chapter;
(2) For any violation of the rules of the commission;
(3) For any cause which, if known to the commission, would have disqualified the applicant from receiving a license;
(4) For default in the payment of any obligation or debt due to the State or the county; or
(5) For any other just cause.
(g) A person who knowingly makes a false statement on an application is guilty of a petty misdemeanor.
(h) Any license issued pursuant to this section shall be valid for a period of one year from the date of issuance and shall be renewable annually upon payment of the annual license fee and a determination by the commission that the licensee continues to meet all of the requirements of this chapter.
(i) Any training provided for an occupational licensee may be conducted either in a licensed casino facility or at a school with which a casino licensee has entered into an agreement.
§ -15 Temporary supplier and occupational licenses. (a) Upon written request of a person applying for a supplier or occupational license under this chapter, the executive director shall issue a temporary license to the applicant and permit the applicant to undertake employment with, conduct business transactions with, and provide goods and services to, casino licensees, casino license applicants, and holders of certificates of suitability; provided that all of the following provisions are met:
(1) The applicant has submitted to the commission a completed application, an application fee, and all required disclosure forms and other required written documentation and materials;
(2) Preliminary review of the application and a criminal history check by the executive director and the commission staff does not reveal that the applicant or the applicant's affiliates, key persons, local and regional managerial employees or sales and service representatives, or substantial owners have been convicted of a felony or misdemeanor that would require denial of the application or may otherwise be ineligible, unqualified, or unsuitable to permit licensure under this chapter;
(3) There is no other apparent deficiency in the application that may require denial of the application; and
(4) The applicant has an offer of employment from, or agreement to begin providing goods and services to, a casino licensee, casino license applicant, or holder of a certificate of suitability upon receipt of the temporary license or the applicant shows good cause for being granted a temporary license.
(b) A temporary license issued under this section shall be valid for not more than one hundred and eighty days, but may be renewed upon expiration by the executive director.
(c) An applicant who receives a temporary license under this section may undertake employment with or supply a casino licensee, casino license applicants, and holders of certificates of suitability with goods and services subject to this chapter until a license is issued by the commission pursuant to the applicant's application or until the temporary license expires or is suspended or revoked. During the period of the temporary license, the applicant shall comply with this chapter and rules adopted by the commission.
(d) If the temporary license expires, is not renewed, or is suspended or revoked, the executive director shall immediately forward the applicant's application to the commission for action after first providing a reasonable time for the applicant to correct any apparent deficiency in its application.
§ -16 Annual report. The commission shall submit a written annual report to the governor and the legislature at least sixty days prior to the close of each fiscal year and shall submit any additional reports that the governor or the legislature requests. The annual report shall include:
(1) A statement of receipts and disbursements related to casino gaming pursuant to this chapter;
(2) Actions taken by the commission; and
(3) Any additional information and recommendations that the commission may deem valuable or which the governor or the legislature may request.
§ -17 Hearings by the commission. (a) Upon order of the commission, one of the commission members or a hearings officer designated by the commission may conduct any hearing provided for under this chapter related to casino gaming or by commission rule, and may recommend findings and decisions to the commission. The record made at the time of the hearing shall be reviewed by the commission, or a majority thereof, and the findings and decisions of the majority of the commission shall constitute the order of the commission in that case.
(b) Any party aggrieved by an action of the commission denying, suspending, revoking, restricting, or refusing to renew a license under this chapter may request in writing a hearing before the commission within five days after service of notice of the action of the commission. Notice of the actions of the commission shall be served either by personal delivery or by certified mail, postage prepaid, to the aggrieved party. Notice served by certified mail shall be deemed complete on the business day following the date of the mailing. The commission shall conduct all requested hearings promptly and in reasonable order.
§ -18 Conduct of casino gaming. Casino gaming may be conducted by the holder of a casino license, subject to the following:
(1) The site of the casino facility shall be restricted to Waikiki, mauka of Kalakaua Avenue;
(2) The casino facility shall be a stand-alone facility and shall not be located within a hotel;
(3) The term of the casino license shall be twenty years and shall be renewable for additional twenty-year terms; provided that:
(A) The casino facility has demonstrated an effort to increase tourism, generate jobs, provide revenue to the local economy, and provide revenue to the general fund;
(B) The casino licensee's actions have not caused the casino license under this chapter to be suspended or revoked; and
(C) The applicant and its qualifiers remain eligible and suitable for a casino license;
(4) The casino facility may operate twenty-four hours per day, each and every day of the year;
(5) Minimum and maximum wagers on games shall be set by the casino licensee;
(6) The commission's agents may enter and inspect the casino facility at any time for the purpose of determining whether the casino licensee is in compliance with this chapter;
(7) Commission employees shall have the right to be present in a casino facility or on adjacent facilities under the control of the casino licensee;
(8) Gaming equipment and supplies customarily used in conducting casino gaming shall be purchased or leased only from suppliers licensed under this chapter;
(9) Persons licensed under this chapter shall permit no form of wagering on games except as permitted by this chapter;
(10) Wagers may be received only from a person present in a licensed casino facility. No person present in a licensed casino facility shall place or attempt to place a wager on behalf of another person who is not present in the casino facility;
(11) Wagering shall not be conducted with money or other negotiable currency, except for wagering on slot machines;
(12) No person under age twenty-one shall be permitted in an area of a casino facility where casino gaming is being conducted, except for a person at least eighteen years of age who is an employee of the casino facility. No employee under age twenty-one shall perform any function involved in casino gaming by patrons. No person under age twenty-one shall be permitted to make a wager under this chapter;
(13) All tokens, chips, or electronic cards used to make wagers shall only be purchased from the casino licensee within the casino facility. The tokens, chips, or electronic cards may be purchased by means of an agreement under which the casino licensee extends credit to the wagerer. The tokens, chips, or electronic cards shall be used while within a casino facility only for the purpose of making wagers on authorized games;
(14) Prior to commencing gaming operations at the casino facility, the casino licensee shall enter into a development agreement with the State that includes at least the following terms:
(A) The casino licensee agrees to invest at least $50,000,000 to develop and construct a casino facility;
(B) The casino licensee agrees to use best efforts to train residents of the State for jobs that are available at the casino facility;
(C) The casino licensee agrees that neither the casino licensee, nor any parent or subsidiary of the casino licensee, will operate in a jurisdiction that permits wagering on Hawaii collegiate athletics;
(D) The casino licensee shall use best efforts to increase tourism, generate jobs, provide revenue to the local economy, and provide revenue to the State; and
(E) The casino licensee and the State agree that, other than the one casino facility licensed under this chapter, the State shall not authorize any additional gaming in the State without the prior written consent of the casino licensee and the State; and
(15) In addition to the above, casino gaming shall be conducted in accordance with all rules adopted by the commission.
§ -19 Collection of amounts owing under credit agreements. Notwithstanding any other law to the contrary, a casino licensee who extends credit to a wagerer shall be expressly authorized to institute a cause of action to collect any amounts due and owing under the extension of credit, as well as the licensee's costs, expenses, and reasonable attorney's fees incurred in collection.
§ -20 Wagering tax; rate; disposition. A wagering tax shall be imposed on the monthly gross receipts received from casino gaming authorized under this chapter at the rate of fifteen per cent. The wagering tax imposed by this section shall be in lieu of all other state taxes on gross or adjusted gross receipts, including taxes levied under chapters 237 and 239, except income taxes. All other income received by the casino licensee that are not from casino gaming are not subject to the wagering tax, but are subject to any other state taxes on gross or adjusted gross receipts levied under chapters 237 and 239. Tax revenues collected under this section shall be deposited into the state general fund; provided that the following amounts shall be retained by the commission and deposited into the state gaming fund for use by the commission as follows:
(1) One per cent of the tax revenues to fund a compulsive gamblers program and for public security at the casino facility; and
(2) Not more than one per cent of the tax revenues to fund administrative expenses of the commission.
§ -21 State gaming fund; disposition of taxes collected. There is established within the state treasury the state gaming fund to be administered by the Hawaii gaming control commission into which shall be deposited all fees, taxes, and fines collected under this chapter other than the wagering tax collected pursuant to section ‑20. Moneys from the state gaming fund shall be used to fund:
(1) A compulsive gamblers program and for public security at the casino facility; and
(2) Administrative expenses of the commission.
§ -22 Legislative oversight. After the first full fiscal year of operation, the auditor shall conduct a program and financial audit of the Hawaii gaming commission. Thereafter, the auditor shall conduct a program and financial audit every four years after the initial audit is completed.
§ -23 Compulsive gamblers program. The commission shall create and implement a program to assist individuals who are identified as compulsive gamblers.
§ -24 Disclosure of information. The commission, upon written request from any person, shall provide the following information concerning the applicant or licensee, the applicant's or licensee's products, services or gambling enterprises, and the applicant's or licensee's business holdings if the commission has the information in its possession:
(1) The name, business address, and business telephone number;
(2) An identification of any applicant or licensee including, if an applicant or licensee is not an individual, its state of incorporation or registration, its corporate officers, and the identity of its qualifiers;
(3) The name and business telephone number of any attorney, counsel, lobbyist, or any other person representing an applicant or licensee in matters before the commission; and
(4) A description of the product or service to be supplied by, or occupation to be engaged in by, a licensee.
§ -25 License issuance fee. In addition to any other fee or payment required under this chapter, there shall be a one-time fee of $150,000,000, in cash or cash equivalent, to be paid as follows:
(1) $75,000,000 as a condition precedent to the issuance of the casino license; and
(2) $75,000,000 one year after the casino license is issued.
Upon payment of the $75,000,000 due one year after the casino license is issued, the casino licensee shall be credited with this payment against the wagering tax imposed upon the casino licensee under section -20, to be amortized over a period of ten years after that payment is made. The fee shall be deposited into the general fund."
SECTION 2. Chapter 712, Hawaii Revised Statutes, is amended by adding a new section to part III to be appropriately designated and to read as follows:
"§712‑ Casino gaming; exempted. This part shall not apply to casino gaming as authorized by chapter ."
SECTION 3. Section 46-80.5, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:
"(e) Exemptions.
(1) Property owned by the state or county governments or entities, may be exempt from the assessment except as provided in paragraph (3);
(2) Property owned by the federal government or entities, shall be exempt from the assessment except as provided in paragraph (3);
(3) If a public body owning property, including property held in trust for any beneficiary, which is exempt from an assessment pursuant to paragraphs (1) and (2), grants a leasehold or other possessory interest in the property to a nonexempt person or entity, the assessment, notwithstanding paragraphs (1) and (2), shall be levied on the leasehold or possessory interest and shall be payable by the lessee;
(4) The construction of any casino facility in Waikiki authorized under chapter shall be exempt from the assessment and any special improvement district requirements regarding redevelopment authorized by subsection (a);
[(4)] (5) The redevelopment of the Ala
Wai boat harbor shall be exempt from the assessment and any special improvement
district requirements authorized by subsection (a); and
[(5)] (6) No other properties or owners
shall be exempt from the assessment unless the properties or owners are
expressly exempted in the ordinance establishing a district adopted pursuant to
this section or amending the rate or method of assessment of an existing
district."
SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $5,000,000 or so much thereof as may be necessary for fiscal year 2014-2015 for the purpose of funding the operations of the Hawaii gaming control commission; provided that the:
(1) Casino licensee shall reimburse the amount appropriated by remitting $5,000,000 to the director of finance no later than the first day on which the casino opens for operation;
(2) Casino licensee's application fee under section ‑8(e), Hawaii Revised Statutes, shall be applied as a credit against the $5,000,000 amount due under this section; and
(3) Amount the casino licensee reimburses the State under this section shall also be credited against the wagering tax imposed under section ‑20, Hawaii Revised Statutes.
The sum appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.
SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 6. This Act shall take effect on July 1, 2013; provided that section 4 shall take effect on July 1, 2014.
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Report Title:
Stand-Alone Casino Gaming; Waikiki; Appropriation
Description:
Grants 20-year license for one stand-alone casino in Waikiki not in a hotel. Establishes Hawaii Gaming Control Commission. Imposes 15% wagering tax on gross receipts. Creates State Gaming Fund and Compulsive Gambler Program. Appropriates funds. Effective 07/01/2013.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
