Bill Text: HI HB1700 | 2010 | Regular Session | Introduced
Bill Title: Gambling; Slot Machines in Airports
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2009-05-11 - Carried over to 2010 Regular Session. [HB1700 Detail]
Download: Hawaii-2010-HB1700-Introduced.html
Report Title:
Gambling; Slot Machines in Airports
Description:
Allows slot machines in state airports. Creates Hawaii gaming control commission. Imposes a 10% wagering tax on gross receipts. Reserves % of state gaming fund for administration and % for problem gambler services; of remainder, reserves % and % to fund unspecified programs.
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1700 |
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TWENTY-FIFTH LEGISLATURE, 2009 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to gambling.
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
SLOT MACHINE GAMING IN STATE AIRPORTS
§ ‑1 Legislative intent. This chapter is intended to benefit the people of the State of Hawaii by creating a new revenue source--slot machine gaming in state airports. This can be successful only if public confidence and trust in the credibility and integrity of the gaming operations and the regulatory process are maintained. Thus, this chapter strictly regulates the facilities, persons, associations, and practices related to slot machine operations.
§ ‑2 Slot machine gaming authorized. Slot machine gaming and a system of wagering incorporated thereof, as defined in this chapter, are authorized to the extent that they are carried out in accordance with this chapter.
§ ‑3 Definitions. As used in this chapter, unless the context requires otherwise:
"Commission" means the Hawaii gaming control commission.
"Department" means the department of business, economic development, and tourism.
"Executive director" means the executive director of the commission.
"Gross receipts" means the total of:
(1) Cash received as winnings;
(2) Cash received in payment for credit extended by a licensee to a patron for purposes of gaming; and
(3) Compensation received for conducting any slot machine game in which the licensee is not party to a wager.
Gross receipts do not include counterfeit money or tokens, coins of other countries that are received in a slot machine, cash taken in fraudulent acts perpetrated against a licensee for which the licensee is not reimbursed, and cash received as entry fees for contests or tournaments in which patrons compete for prizes.
"Individual" means a natural person.
"Person" includes an individual, association, partnership, estate, trust, limited liability company, corporation, or other legal entity.
"Slot machine gaming" means the operation of slot machine games licensed under this chapter that is authorized by the commission as a wagering device.
"Slot machine license" means a license to operate slot machine gaming under this chapter.
"State airport" means any of the following airports owned and operated by the State's department of transportation:
(1) Oahu:
(A) Honolulu International Airport;
(B) Kalaeloa Airport; and
(C) Dillingham Airfield;
(2) Maui:
(A) Hana Airport;
(B) Kalaupapa Airport;
(C) Kahului Airport;
(D) Kapalua Airport;
(E) Lanai Airport; and
(F) Molokai Airport;
(3) Hawaii:
(A) Kona International Airport at Keahole;
(B) Hilo International Airport;
(C) Waimea-Kohala Airport; and
(D) Upolu Airport; and
(4) Kauai:
(A) Lihue Airport; and
(B) Port Allen Airport.
"Supplier's license" means a license to furnish any equipment, devices, or supplies to a licensed slot machine gaming operation permitted under this chapter.
§ ‑4 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 for administrative purposes.
(b) 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, two shall be appointed from a list of nominees submitted by the president of the senate, and two shall be appointed from a list of nominees submitted by the speaker of the house of representatives. All appointments to the commission shall be made within sixty days of the effective date of this Act. The members shall elect one from among them to be the chairperson. Each member shall have reasonable knowledge of the practice, procedure, and principles of slot machine gaming. Each member shall either be a resident of Hawaii or shall certify that the member will become a resident of Hawaii before taking office. At least one member shall be experienced in law enforcement and criminal investigation, at least one member shall be a certified public accountant experienced in accounting and auditing, and at least one member shall be an attorney licensed to practice law in Hawaii.
(c) No person shall be appointed a member or continue to be a member of the commission if the person:
(1) Is an elected state official or a public employee;
(2) Or the person's spouse, child, or parent is an official of, has a financial interest in, or has a financial relationship with any slot machine gaming operation subject to the jurisdiction of this commission;
(3) Is related to any other person within the second degree of consanguinity or affinity who is licensed by the commission pursuant to this chapter; or
(4) Is not of good moral character or has been convicted of, or is under indictment for, a felony under the laws of Hawaii or any other state or the United States.
(d) The term of office of a commission member shall be four years, except that the terms of office of the initial members appointed shall be staggered, with one member serving one year, one member serving two years, one member serving three years, and two members serving four years. No member shall serve more than two consecutive terms. Vacancies in the commission shall be filled for the unexpired term in like manner as the original appointments.
(e) The governor may remove or suspend any member of the commission after due notice and public hearing. The president of the senate or the speaker of the house of representatives may request that the governor remove or suspend a member of the commission nominated by either the president of the senate or speaker of the house of representatives.
(f) Members shall:
(1) Serve part-time;
(2) Be paid compensation of $ for each day in the performance of official duties; and
(3) Be reimbursed for expenses, including travel expenses, incurred in the performance of official duties.
(g) 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. 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 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.
(h) 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.
(i) The commission shall appoint a person to serve as the full-time executive director of the commission subject to the commission's supervision. The executive director shall hold office at the will of the commission, shall be exempt from chapters 76 and 89, and shall not hold any other office or employment. The executive director shall receive an annual salary at an amount set by the commission. The executive director shall be reimbursed for expenses actually and necessarily incurred in the performance of the executive director's duties.
(j) Except as otherwise provided by law, the executive director may 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 appoint committees and consultants necessary for the efficient operation of slot machine gaming; provided that no person shall be hired or appointed under this subsection who is:
(1) An elected state official;
(2) Licensed by the commission pursuant to this chapter, is an official of, has a financial interest in, or has a financial relationship with, any slot machine gaming operation subject to the jurisdiction of this commission pursuant to this chapter;
(3) Related to any other person within the second degree of consanguinity or affinity who is licensed by the commission pursuant to this chapter; or
(4) Not of good moral character or has been convicted of, or is under indictment for, a felony under the laws of Hawaii or any other state or the United States.
(k) The salaries of employees shall be set by the executive director.
(l) Notwithstanding subsection (i), the commission may perform the functions of the executive director and may exercise the powers granted to the executive director until the executive director is appointed.
(m) The commission shall adopt rules, in accordance with chapter 91, establishing a code of ethics for its employees that shall include, but not be limited to, restrictions on which employees shall be prohibited from participating in or wagering on slot machines 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.
§ ‑5 Records; 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 slot machine gaming.
(b) The commission may employ any personnel, including personnel with law enforcement authority, that may be necessary to carry out its duties related to slot machine gaming in state airports.
§ ‑6 Powers of the commission. The commission shall have all powers necessary and proper to fully and effectively supervise slot machine gaming under this chapter, including, but not limited to, the following:
(1) Administer, regulate, and enforce the system of slot machine gaming established by this chapter. The commission's jurisdiction shall extend to every person, association, corporation, partnership, and trust involved in slot machine gaming in a county;
(2) Determine the types and numbers of supplier's licenses to be permitted under this chapter;
(3) Adopt standards for the licensing of all persons under this chapter, issue licenses, and establish and collect fees for these licenses;
(4) Provide for the collection of all taxes imposed pursuant to this chapter; and collect, receive, expend, and account for all revenues derived from slot machine gaming within a county;
(5) Enter the office, facilities, or other places of business of a licensee where evidence of the compliance or noncompliance with this chapter is likely to be found;
(6) Investigate alleged violations of this chapter and take appropriate disciplinary action against a licensee for a violation or institute appropriate legal action for enforcement, or both;
(7) Be present through its inspectors and agents any time slot machine gaming is conducted in a state airport for the purpose of certifying the revenue thereof, receiving complaints from the public, and conducting any other investigations into the conduct of the slot machine gaming and the maintenance of the equipment that from time to time the commission may deem necessary and proper;
(8) Adopt appropriate standards for all electronic or mechanical gaming devices;
(9) Enforce the keeping of records, including financial or other statements of any licensee under this chapter, in the manner prescribed by the commission and require that any licensee involved in the ownership or management of slot machine gaming submit to the commission:
(A) An annual balance sheet and profit and loss statement;
(B) A list of the stockholders or other persons having a one per cent or greater beneficial interest in the gaming activities of each licensee; and
(C) Any other information the commission deems necessary in order to effectively administer this chapter;
(10) Conduct hearings, issue subpoenas for the attendance of witnesses and subpoenas duces tecum for the production of books, records, and other pertinent documents, and administer oaths and affirmations to the witnesses, when, in the judgment of the commission, it is necessary to administer or enforce this chapter;
(11) Prescribe an employment application form to be used by any licensee involved in the ownership or management of slot machine gaming of hiring purposes;
(12) Eject or exclude, or authorize the ejection or exclusion of, any person from any state airport operating slot machine gaming where the person is in violation of this chapter or where the person's conduct or reputation is such that the person's presence, in the opinion of the commission, may call into question the honesty and integrity of the slot machine gaming operation or interfere with the orderly conduct thereof; provided that the propriety of that ejection or exclusion shall be subject to subsequent hearing by the commission;
(13) Suspend, revoke, or restrict licenses and 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;
(14) 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 rule adopted by the commission, any order of the commission, or any other action that, in the commission's discretion, is a detriment or impediment to slot machine gaming;
(15) Hire employees to gather information, conduct investigations, and carry out any other tasks contemplated under this chapter;
(16) Establish minimum levels of insurance to be maintained by licensees;
(17) Delegate the execution of any of its powers for the purpose of administering and enforcing this chapter and rules adopted under this chapter;
(18) Adopt necessary rules under chapter 91 to implement this chapter; and
(19) Take any other action that may be reasonable or appropriate to enforce this chapter and rules adopted under this chapter.
§ ‑7 Slot machine gaming authorized in state airports only. Slot machine gaming shall be permitted only in state airports.
§ ‑8 Application for slot machine gaming license. (a) A qualified person may apply to the commission for a slot machine gaming license to conduct slot machine gaming on forms provided by the commission and shall contain any information that the commission prescribes, including but not limited to:
(1) Detailed information regarding the ownership and management of the applicant; and
(2) Detailed personal information regarding the applicant.
Information provided on the application shall be used as the basis for a thorough background investigation, which the commission shall conduct with respect to each applicant. An incomplete application shall be cause for denial of a license by the commission. The commission shall make applications available within sixty days of its appointment. The commission shall act on any application submitted to it within ninety days of the date of submission.
(b) Each applicant shall be subject to criminal history record checks under section ‑10. Each applicant shall disclose the identity of every person having a greater than one per cent direct or indirect pecuniary interest in the slot machine gaming operation with respect to which the license is sought. If the disclosed person 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.
(c) An application fee of $ shall be paid at the time of filing to defray the costs associated with the background investigation conducted by the commission and the search and classification of fingerprints obtained by the commission with regard to the application. If the costs of the investigation exceed $ , the applicant shall pay the additional amount to the commission. If the costs of the investigation are less than $ , the applicant shall receive a refund of the remaining amount. All information, records, interviews, reports, statements, memoranda, or other data supplied to or used by the commission in the course of its review or investigation of an application for a license shall be privileged, strictly confidential, and shall be used only for the purpose of evaluating an applicant. The information, records, interviews, reports, statements, memoranda, or other data shall not be admissible as evidence, nor discoverable in any action of any kind in any court or before any tribunal, commission, agency, or person, except for any action deemed necessary by the commission.
(d) An applicant shall be ineligible to receive an operator's license if:
(1) The person has been convicted of a felony under the laws of this State or 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 submitted an application for a license under this chapter that contains false information;
(4) The person is a member of the commission;
(5) The person applying for a license employs an individual described in paragraph (1), (2), (3), or (4) who participates in the management or operation of slot machine gaming authorized under this chapter; or
(6) A license of the person issued under this chapter, or a license to own or operate casino gaming or slot machine gaming in any other jurisdiction, has been revoked.
§ ‑9 Criteria for award of a slot machine gaming license. (a) The commission shall issue a license to operate slot machine gaming to applicants who meet all of the following criteria:
(1) The applicant demonstrates it has a reserve of at least million dollars;
(2) The applicant meets all the requirements of section ‑8;
(3) The applicant meets the requirements of section ‑10; and
(4) The applicant pays a slot machine gaming license fee of $ ; provided that that license shall be renewable each year upon payment of a license renewal fee of $ .
(b) The commission may revoke the license if the licensee fails to begin regular slot machine gaming within twelve months of receipt of the commission's approval of the application upon a finding by the commission that license revocation is in the best interest of the State.
(c) The commission shall establish a process to facilitate and expedite the approval of the necessary licenses.
§ ‑10 Criminal history record checks. (a) The commission shall develop procedures for obtaining verifiable information regarding the criminal history of persons who the commission is authorized to investigate. These procedures shall include a criminal history record check to determine suitability for employment.
For purposes of this section, "criminal history record check" means an investigation based on fingerprints obtained by a law enforcement officer and other identifying information by means of:
(1) A national search of the individual's criminal history record information conducted through the Federal Bureau of Investigation; and
(2) A search of the individual's state criminal history record information conducted through the Hawaii criminal justice data center.
(b) The commission shall not request a criminal history record check of any person unless that person:
(1) Provides a set of fingerprints obtained by a law enforcement agency; and
(2) Provides a signed statement:
(A) Containing the person's name, address, and date of birth as appearing on a valid identification document;
(B) That states that the person has not been convicted of a crime or, if the individual has been convicted, contains a description of the crime and the particulars of the conviction;
(C) Notifies the person that the commission may request a criminal history record check under subsection (a); and
(D) Notifies the person of that person's rights to obtain a copy of the criminal history record check report, challenge the accuracy and completeness of the report, and obtain a prompt determination of the validity of the challenge before a final determination is made by the commission.
(c) The commission may hire or approve an applicant provisionally prior to the completion of the criminal history record check if, at all times prior to receipt of the criminal history record check, the individual is under the direct supervision of someone whose criminal history record check has been completed.
(d) The commission may refuse to employ or approve, or may terminate employment or approval of, any person if:
(1) The person has been convicted of an offense that bears on the individual's fitness for employment in the gaming industry or other function for which commission approval is required;
(2) The individual's criminal history record information indicates that the person may pose a threat to the public interest; threatens the effective regulation and control of gaming; or enhances the dangers of unsuitable, unfair, or illegal practices, methods, or activities in the operation of gaming or the carrying on of the business and financial arrangements incidental to gaming; or
(3) The individual has been convicted of or pleaded guilty or nolo contendere to a felony or any gaming offense in any jurisdiction or to a misdemeanor involving dishonesty, fraud, or misrepresentation in any connection or any offense involving moral turpitude.
§ ‑11 Bond of licensee. Before a slot machine gaming 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 slot machine gaming in conformity with this chapter and the 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.
§ ‑12 Supplier's licenses. (a) No person shall furnish any equipment, devices, or supplies to a licensed slot machine 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 that 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. A supplier's license 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, slot machine gaming equipment and supplies to any licensee involved in the ownership or management of slot machine gaming.
(c) Slot machine gaming supplies and equipment shall not be distributed unless supplies and equipment conform to standards adopted by rules of the commission.
(d) To be eligible to receive a supplier's license under this section, a person shall undergo the criminal history record check under section ‑10. A person 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 or any other state or the United States;
(2) The person has been convicted of any violation under chapter III, chapter 712, or substantially similar laws of another jurisdiction;
(3) The person has submitted an application for a license under this chapter that contains false information;
(4) The person is a member of the commission;
(5) The person is one in which an individual defined in paragraph (1), (2), (3), or (4) is an officer, director, or management employee;
(6) The person employs an individual defined in paragraph (1), (2), (3), or (4) who participates in the management or operation of slot machine gaming authorized under this chapter; or
(7) The license of the person issued under this chapter, or a license to own or operate slot machine gaming or casino gaming 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 slot machine gaming authorized under this chapter;
(2) Keep books and records for the furnishing of equipment, devices, and supplies of slot machine gaming separate and distinct from any other business that the supplier might operate;
(3) File a quarterly return with the commission listing all sales and leases;
(4) Permanently affix its name to all its equipment, devices, and supplies for slot machine gaming; and
(5) File an annual report with the commission listing its inventories of slot machine 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 slot machine gaming equipment, devices, or supplies provided by any licensed supplier may either be repaired on the site or be removed from the site to a place owned by the holder of an operator's 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.
§ ‑13 Annual report. The commission shall file a written annual report with the governor and the legislature on or before sixty days following the close of each fiscal year and any additional reports that the governor or the legislature may request. The annual report shall include a statement of receipts and disbursements related to slot machine gaming pursuant to this chapter, actions taken by the commission, and any additional information and recommendations that the commission may deem valuable or that the governor or the legislature may request.
§ ‑14 Hearings by the commission. (a) Upon order of the commission, a commission member or hearings officer designated by the commission may conduct any hearing provided for under this chapter related to slot machine gaming or by commission rule and may recommend findings and decisions to the commission. The commission member or hearings officer conducting the hearing shall have all powers and rights granted to the commission in this chapter. The record made at the time of the hearing shall be reviewed by the commission and the findings and decision 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 a hearing before the commission. A request for a hearing must be made to the commission in writing 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.
§ ‑15 Conduct of slot machine gaming. Casino gaming may be conducted by a licensee, subject to the following standards:
(1) Minimum and maximum wagers on slot machines shall be set by the licensee;
(2) Agents of the commission may enter and inspect any state airport within which slot machine gaming is conducted at any time for the purpose of determining compliance with this chapter;
(3) Employees of the commission shall have the right to be present within a state airport within which slot machine gaming is conducted or on adjacent facilities under the control of the licensee;
(4) Slot machine gaming equipment and supplies customarily used in conducting casino gaming shall be purchased or leased only from suppliers licensed under this chapter;
(5) Persons licensed under this chapter shall permit no form of wagering on games except as permitted by this chapter;
(6) A person under age twenty‑one shall not be permitted in an area of the state airport where slot machine gaming is being conducted, except for a person at least eighteen years of age who is an employee of the licensee conducting slot machine gaming; provided that:
(A) No employee under age twenty‑one shall perform any function involved in slot machine gaming by patrons; and
(B) No person under age twenty‑one shall be permitted to make a wager under this chapter;
(7) All tokens, chips, or electronic cards used to make wagers on slot machines must be purchased from the person licensed to conduct slot machine gaming. The tokens, chips, or electronic cards may be purchased by means of an agreement under which the person licensed to conduct slot machine gaming extends credit to the patron. The tokens, chips, or electronic cards may be used only for the purpose of making wagers on slot machines; and
(8) In addition to the requirements of paragraphs (1) to (7), slot machine gaming must be conducted in accordance with all rules adopted by the commission.
§ ‑16 Collection of amounts owing under credit agreements. Notwithstanding any other law to the contrary, a person licensed to conduct slot machine gaming who extends credit to a slot machine gaming patron shall be expressly authorized to institute a cause of action to collect any amounts due and owning under the extension of credit, as well as the operator's costs, expenses, and reasonable attorney's fees incurred in collection.
§ ‑17 Wagering tax; rate. A tax shall be imposed on the gross receipts received from slot machine gaming authorized under this chapter at the rate of ten per cent.
§ ‑18 The state gaming fund; disposition of taxes collected. (a) There is established within the state treasury the state gaming fund, into which shall be deposited all fees, taxes, and fines collected under this chapter, which shall be used for:
(1) Expenses incurred for the administration and enforcement of this chapter, not to exceed per cent of all deposits per year; and
(2) Services and programs to be administered by the commission, not to exceed per cent of all deposits per year, for problem gamblers.
(b) Any amount remaining in the fund after satisfaction of subsections (a)(1) and (2) shall be deposited quarterly into the general fund; provided that of the remaining amount, the following percentages shall be set aside for the following uses:
(1) per cent to fund programs; and
(2) per cent to fund programs.
§ ‑19 Legislative oversight. (a) Beginning with the fiscal year beginning on July 1, 2011, the auditor shall conduct a biennial financial and social assessment of slot machine gaming. In conducting the assessment, the auditor shall identify the financial impacts of slot machine gaming on the state economy and the social impacts of slot machine gaming upon the community. The auditor shall submit a report of findings and recommendations to the legislature prior to the convening of the next regular session after the biennial assessment is completed.
(b) Beginning with the fiscal year beginning on July 1, 2010, the auditor shall conduct an annual program and financial audit of the Hawaii gaming control commission."
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- Slot machines; allowed. Any other law to the contrary notwithstanding, the operation of slot machine gaming in the State under chapter shall be permitted."
SECTION 3. Section 712-1220, Hawaii Revised Statutes, is amended by:
1. Amending the definition of "advance gambling activity" to read:
"(1) "Advance gambling
activity". A person "advances gambling activity" if [he]
the person engages in conduct that materially aids any form of gambling
activity. Conduct of this nature includes but is not limited to conduct
directed toward the creation or establishment of the particular game, contest,
scheme, device, or activity involved, toward the acquisition or maintenance of
premises, paraphernalia, equipment, or apparatus therefor, excluding slot
machines, toward the solicitation or inducement of persons to participate
therein, toward the actual conduct of the playing phases thereof, toward the
arrangement of any of its financial or recording phases, or toward any other
phase of its operation. A person advances gambling activity if, having
substantial proprietary control or other authoritative control over premises
being used with [his] the person's knowledge for purposes of
gambling activity, [he] the person permits that activity to occur
or continue or makes no effort to prevent its occurrence or continuation. A
person advances gambling activity if [he] the person plays or
participates in any form of gambling activity."
2. By amending the definition of "contest of chance" to read:
"(3) "Contest of chance" means any contest, game, gaming scheme, or gaming device, excluding slot machines, in which the outcome depends in a material degree upon an element of chance, notwithstanding that skill of the contestants may also be a factor therein."
3. By amending the definition of "gambling" to read:
"(4) "Gambling". A person
engages in gambling if [he] the person stakes or risks something
of value upon the outcome of a contest of chance, excluding slot machines,
or a future contingent event not under [his] the person's control
or influence, upon an agreement or understanding that [he] the person
or someone else will receive something of value in the event of a certain
outcome. Gambling does not include bona fide business transactions valid under
the law of contracts, including but not limited to contracts for the purchase
or sale at a future date of securities or commodities, and agreements to
compensate for loss caused by the happening of chance, including but not
limited to contracts of indemnity or guaranty and life, health, or accident
insurance."
4. By amending the definition of "gambling device" to read:
"(5) "Gambling device" means any device, machine, paraphernalia, or equipment, excluding slot machines, that is used or usable in the playing phases of any gambling activity, whether that activity consists of gambling between persons or gambling by a person involving the playing of a machine. However, lottery tickets and other items used in the playing phases of lottery schemes are not gambling devices within this definition."
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect on July 1, 2009.
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