Bill Text: HI HB1063 | 2014 | Regular Session | Introduced

Hawaii House Bill 1063 (Prior Session Legislation)

Introduced

Bill Title: Hawaii Gaming Control Commission; Casino Gaming ($)

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2013-12-18 - Carried over to 2014 Regular Session. [HB1063 Detail]

Download: Hawaii-2014-HB1063-Introduced.html

HOUSE OF REPRESENTATIVES	H.B. NO.	1063
TWENTY-SEVENTH LEGISLATURE, 2013
STATE OF HAWAII

A BILL FOR AN ACT

relating to economic development.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that Hawaii�s economic success is tied to the world market, and the well being of its economy and citizens is threatened by instability in the worldwide economic market. In particular, Hawaii has been affected by declining visitors from Asia and increasing competition in the global travel and tourism market.

As a result of the recent economic downturn, state and county governments have had to reduce or eliminate various public services. In fact, the legislature has received a mandate from the electorate to address the significant shortfall of revenue that has threatened government services and economic growth. To maintain much needed social programs, guarantee quality education, expand economic growth, and compete in the increasingly competitive global tourism market, the State should pursue various economic opportunities to address the needs of the State, specifically by allowing limited casino gaming on Oahu.

It is essential that there be expanded economic development so as to rejuvenate the urban environment on Oahu. The development of limited casino gaming in the Waikiki area will have a significant beneficial impact on hotels and other businesses in the Waikiki area and will produce additional revenues that are desperately needed by the State. Thousands of jobs will be created in the casino facility itself. In addition, thousands of other jobs will be created to build the casino facility.

Because the State and the city and county of Honolulu agree that future development on Oahu should occur in the Kapolei area, limited casino gaming should also be located in the Kapolei area. The legislature believes that casino gaming in the Kapolei area, like the Waikiki area, will generate construction projects and create employment opportunities for the people of Hawaii. These employment opportunities should, wherever possible, be subject to a collective bargaining agreement.

It is critical to the hotel industry and the entire tourism industry that the casino facility not include any hotel structure. The casino facility will bring millions of new tourists who will be able to stay in existing hotels and utilize existing services. A casino facility in the Waikiki area will help revitalize the urban area. A casino facility in the Kapolei area will greatly contribute to the infrastructure necessary for future development in that area. The State needs to take all prudent steps to ensure the current economic crisis does not continue.

Accordingly, the purpose of this Act is to generate revenues for education, law enforcement, and economic development by providing for limited casino gaming on Oahu.

SECTION 2. 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. Limited casino gaming and a system of wagering incorporated therein, as defined in this chapter, are authorized to the extent that they are carried out in accordance with this chapter.

§ -2 Definitions. As used in this chapter, unless the context requires otherwise:

"Affiliate" means a person who, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with; is in a partnership or joint venture relationship with; or is a co-shareholder of a corporation; a co-member of a limited liability company; or 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 or for registration under this chapter.

"Casino facility" means a freestanding, land-based structure which may include structures with 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 licensed under this chapter including 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 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 or facilities for casino gaming permitted under this chapter.

"Chairperson" means the member of the Hawaii gaming control commission selected by the other members of the Hawaii gaming control commission pursuant to section -3(f).

"Commission" means the Hawaii gaming control commission as defined under this chapter.

"Department" means the department of businesses, economic development, and tourism.

"Executive director" means the executive director of the commission.

"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. A member, employee, or agent of the commission will be considered to have a financial interest in a matter under consideration if any of the following circumstances exist:

(1) The member, employee, or agent 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 member, employee, or agent is employed by or is an independent contractor for a party to the matter under consideration or consummated by 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 game in which the licensee is not party to a wager.

"Gross receipts" does not include:

(1) Counterfeit money or tokens;

(2) Coins of other countries that are received in gaming devices;

(3) Cash taken in fraudulent acts perpetrated against a licensee for which the licensee is not reimbursed; and

(4) 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 local 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 (15 U.S.C. 80a-1 to 80a-3 and 80a-4 to 80a-64);

(4) A collective investment trust organized by a bank under part 9 of the rules of the 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 (15 U.S.C 80b-1 to 80b-21); or

(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. Investigative hearing shall include any matter related to an apparent deficiency.

"Kapolei casino facility development plan" means the plan for a casino facility in the Kapolei area on Oahu.

"Occupational license" means a license issued by the commission to a person or entity to perform an occupation which the commission has identified as requiring a license to engage in casino gaming in the State.

"Person" includes 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 the applicant, or a person who holds greater than five per cent direct or indirect interest in an applicant. As used in this chapter "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 five per cent or less direct interest in an 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 to furnish any equipment, devices, supplies, or services to a licensed casino gaming operation permitted under this chapter.

"Waikiki casino facility development plan" means the plan for a casino facility in the Waikiki area on Oahu.

§ -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 businesses, economic development, and tourism. The commission shall consist of seven members to be appointed by the governor with the advice and consent of the senate under section 26-34. Of the seven 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 chapter. The members shall elect a chairperson from among themselves.

(b) No person shall be appointed a member of the commission or continue to be a member of the commission if the person 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 gaming operation subject to the jurisdiction of this commission pursuant to this chapter;

(3) Related to any person within the second degree of consanguinity or affinity who is licensed by the commission pursuant to this chapter; or

(4) A person who has been, under indictment for, been convicted of, pled guilty or nolo contendere to, or forfeited bail concerning, a felony or a misdemeanor involving 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 a state involving gambling or fraud that substantially corresponds to a misdemeanor in that state within the last ten years.

(c) The term of office of a commission member shall be four years. Vacancies in the commission shall be filled for the unexpired term in like manner as the original appointments.

(d) The governor may remove or suspend for cause 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 that was nominated by either the president of the senate or the speaker of the house of representatives. Upon receipt of a request from either the president of the senate or the speaker of the house of representatives, the governor shall remove or suspend the member or members of the commission in question.

(e) Members shall:

(1) Be residents of the State of Hawaii;

(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. Special meetings may be called by the chairperson or any four members upon seventy-two hours written notice to each member. Four 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.

(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 subject to the commission�s supervision. The executive director shall:

(1) Hold office at the will of the commission;

(2) Be exempt from chapters 76;

(3) Devote full time to the duties of the office;

(4) Not hold any other office or employment;

(5) The executive director shall perform any and all duties that the commission shall assign the executive director;

(6) 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; and

(7) 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 is authorized to hire assistants, other officers, and employees, who shall be exempt from chapters 76 and who shall serve at the will of the executive director, and 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 is:

(1) An elected state official;

(3) Related to any person within the second degree of consanguinity or affinity who is licensed by the commission pursuant to this chapter; or

(4) Who has been under indictment for or convicted of, pled guilty or nolo contendere to, or forfeited bail concerning 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 last ten years.

(j) The salaries of employees 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 which shall include restrictions on which employees shall be prohibited from participating in or wagering on any game or 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.

(1) A person shall not be appointed to or employed by the commission if any of the following circumstances exist:

(1) During the three years immediately preceding appointment or employment, the person held any direct or indirect interest in or any employment by a person who is licensed to operate a casino under this chapter or in another jurisdiction, or a person who had an application to operate a casino pending before the commission or any other jurisdiction; provided that the person may be appointed or employed to the commission if the person's interest in any casino licensee would not, in the opinion of the commission, interfere with the objective discharge of the person�s employment obligations; provided further that 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 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 listing all assets and liabilities, property and business interests of the member, executive director, and each key employee and any of their spouses affirming that the member, executive director, and key employee are in compliance with the provisions of this chapter. The financial disclosure statement shall be under oath and shall be filed at the time of employment and annually thereafter.

(n) Each employee of the commission shall file with the commission a financial disclosure statement listing all assets and liabilities, property and business interests, and sources of income of the employee and the employee's spouse. This subsection does not apply to the executive director or a key employee.

(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 or registered with the commission for a period of four years after the date the person's membership or employment with the commission terminates.

(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 or registered with the commission for a period of two years after the date of the person's employment with the commission is terminated.

(q) A commission member or a person the commission shall not represent a person or party other than the State before or against the commission for a period of two years after the termination of member's or a person office or 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) The commission may employ any personnel that may be necessary to carry out its duties related to casino gaming.

§ -5 Powers of the commission. The commission shall have all powers necessary to fully and effectively supervise all casino gaming operations including the following:

(1) To 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 to hold a license under this chapter in casino gaming operations in a county;

(2) To issue a license to operate a casino facility or casino facilities pursuant to this chapter;

(3) To determine the types and numbers of occupational and supplier's licenses to be permitted under this chapter;

(4) To 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) To 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 a county;

(6) To enter at any time, without a warrant and without notice to the licensees, the premises, offices, casinos, facilities, 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 adopted by the commission is likely to be found for the following purposes:

(A) To 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) To inspect, examine, audit, impound, seize, or assume physical control of, or summarily remove from the premises all books, ledgers, documents, writings, photocopies correspondence records, videotapes, including electronically 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) To 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) To investigate and deter alleged violations of this chapter or the rules promulgated by the commission;

(7) To investigate alleged violations of this chapter and to take appropriate disciplinary action against a licensee or a holder of an occupational license for a violation, or institute appropriate legal action for enforcement, or both;

(8) To be present through its inspectors and agents any time casino gaming operations are conducted in any casino for the purpose of certifying the revenue thereof, 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) To adopt appropriate standards for all casino facilities as well as for electronic or mechanical gaming devices;

(10) To require that the records including financial or other statement of any licensee under this chapter be kept in the manner prescribed by the commission and that any 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 each licensee, and any other information the commission deems necessary to effectively administer this chapter;

(11) To 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 is also authorized to issue subpoenas and to administer oaths and affirmations to witness;

(12) To prescribe any employment application form to be used by any licensee involved in the ownership or management of casino gaming operations for hiring purposes;

(13) To 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 discretion 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 by the commission;

(14) To permit licensees of casino gaming operations to utilize a wagering system whereby participants' money may be converted to tokens, electronic cards, or chips, which shall be used only for wagering within the casino facility;

(15) To 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;

(16) To 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 licensees for each violation of this chapter, any rules adopted by the commission or any other of the commission, or any other action which, in the commission�s discretion, is a detriment or impediment to casino gaming operations;

(17) To hire employees to gather information, conduct investigations, and carry out other tasks comtemplated under this chapter;

(18) To establish minimum levels of insurance to be maintained by licensees;

(19) To delegate the execution of any of its powers for the purpose of administering and enforcing this chapter; and

(20) To adopt rules pursuant to chapter 91 to implement this chapter. All rules adopted under this chapter shall not be arbitrary, capricious, or contradictory to the provisions of this chapter. The rules may include rules that do one or more of the following:

(A) Govern, restrict, approve, or regulate the casino gaming authorized in this chapter;

(B) Promote the safety, security, and integrity of casino gaming authorized in this chapter;

(C) 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

(D) Allow any other action which may be reasonable or appropriate to enforce this chapter and the 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 office of the commission, a commission disclosure form in which the member does all of the following:

(1) Affirms 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) Affirms that the member continues to meet any other criteria for commission membership under this chapter or the rules adopted by the commission;

(3) Discloses any legal or beneficial interest in any real property that is or that may be directly or indirectly involved with gaming operations authorized by this chapter; and

(4) Discloses any other information as 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 office of the commission an employee disclosure form in which the employee does all of the following:

(1) Affirms the absence of financial interests prohibited by this chapter;

(2) Discloses 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) Discloses 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) Discloses such other matters as 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 his or her 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 thereof 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 concerning, a misdemeanor involving gambling, dishonesty, theft, or fraud or a local ordinance in any state involving gambling, dishonesty, theft, or fraud that substantially corresponds to a misdemeanor in that state, or 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 may 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 that he or she received 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, child, employee, or agent of the commission, may not accept 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, unless the acceptance conforms to a written policy or directive that is 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, may 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 which 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 the 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 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 their 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 their appointment or employment.

(o) A former member, employee, or agent of the commission may appear before the commission as a fact witness about matters or actions handled by the member, employee or agent during their 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 which 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 state police to determine if the communication violates subsection (p) or subsection (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 will 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, as an employee of the commission, is required to file disclosure forms or report in writing the details of any incident or circumstance pursuant to this section, the chairperson shall make such filings or written 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 any 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 they plan to be present in a casino in this State or in another jurisdiction operated by a licensee or applicant, or affiliate of a licensee or an applicant, outside the scope of their official duties for the commission.

(x) Violation of this section by a licensee or applicant, or affiliate or representative of a licensee or applicant, may result in the denial of the application of licensure or the revocation or suspension of licensure or other disciplinary action by the commission.

(y) Any 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) Any violation of this section by an employee or agent of the commission will not result in termination of employment if the commission determines that the conduct involved does not violate the purpose of this chapter, or require other disciplinary action, including termination of employment; provided that employment will be terminated as follows:

(1) If, after being offered employment or beginning 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, employment with the commission shall be terminated;

(2) If a financial interest in a licensee or an applicant, or affiliate or representative of a licensee or applicant, is acquired by an employee or agent that has been offered employment with the commission, an employee of the commission, or the employee�s or agent�s spouse, parent, or child, through no intentional action of the employee or agent, the individual 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; or

(3) Employment shall be terminated if the employee or agent is a spouse, parent, child, or spouse of a child of a commission member.

(aa) Violation of this section does not create a civil cause of action.

(bb) As used in this section:

"Outside employment" includes the following:

(1) Operation of a proprietorship;

(2) Participation in a partnership or group business enterprise; and

(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 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 a political contribution from any person;

(3) Running for the 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 either of the following:

(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) Limited casino gaming shall be permitted only in the areas authorized pursuant to this chapter.

(b) This chapter authorizes limited casino gaming in the following two areas:

(1) The Kapolei area on Oahu. Any application for a casino license to operate a casino facility in the Kapolei area shall include a casino facility development plan for the casino facility; and

(2) The Waikiki area on Oahu. Any application for a casino license to operate a casino facility in the Waikiki area shall include a casino facility development plan for the casino facility.

(c) No more than one casino facility shall be permitted in the Kapolei area. No more than one casino facility shall be permitted in the Waikiki area.

(d) The commission shall adopt the necessary rules and make applications for a casino license to operate a casino facility in the Waikiki area available within one hundred and twenty days of its appointment. An application for a casino license shall be submitted to the commission no later than sixty days after the date applications are made available. The commission shall select the applicant who best meets all of the criteria pursuant to section -9 no later than ninety days after the final date applications must be submitted to the commission. If the selected applicant meets all the requirements of this chapter, the commission shall issue a license to the applicant within one hundred and twenty days after the date the applicant is selected.

(e) The commission shall make applications for a casino license to operate a casino facility in the Kapolei area available within one hundred and eighty days after the commission makes applications for a casino license to operate a casino facility in the Waikiki area available. An application for a casino license shall be submitted to the commission no later than sixty days after the date applications are made available. The commission shall select the applicant who best meets all of the criteria pursuant to section -9 no later than ninety days after the final date applications must be submitted to the commission. If the selected applicant meets all the requirements of this chapter, the commission shall issue a license to the applicant within one hundred and twenty days after the date the applicant is selected.

§ -8 Application for casino license. (a) Any person, including all qualifiers, may apply to the commission for a casino license to conduct a casino gaming operation. The application shall be made under oath on forms provided by the commission and shall contain information as prescribed by the commission, including all of the following:

(1) The name, business address, telephone number, social security number, and, where applicable, federal tax identification number of the applicant and every qualifier;

(2) An identification 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. The applicant or qualifier can comply with this part by filing, a copy of the applicant�s or qualifier�s registration with the Securities Exchange Commission if the registration contains the information required by this part;

(3) Whether the applicant or qualifier has been indicted, convicted, pleaded guilty or nolo contendre, forfeited bail concerning, a felony within the last ten years or a misdemeanor involving gambling, theft, or fraud within the last ten years, including the date, the name and location of the court, arresting agency and prosecuting agency, the case caption, the docket number, the offense, the disposition, the location and length of incarceration;

(4) Whether the applicant or 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, suspended, revoked, or not renewed and a statement describing the facts and circumstances concerning the application, denial, restriction, suspension, revocation, or nonrenewal, including the licensing authority the date each action was taken, and the reason for each action;

(5) Whether the applicant or qualifier has, within the last ten years, filed or had filed against the applicant or qualifier a civil or administrative action or proceeding in bankruptcy or has within the last ten years been involved in any formal process to adjust, defer, suspend, or otherwise work out the payment of any debt including the date of filing, the name and location of the court, the case caption, the docket number, and the disposition;

(6) Whether the applicant or qualifier has within the last five tax years failed to pay any final amount of tax due and payable under federal, state, or local law, after exhaustion of all inter-agency appeals processes, including, the amount, type of tax, the taxing, and time periods involved;

(7) A statement listing the names and titles of all public officials or officers of any unit of state government or local government in the jurisdiction in which the gaming 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 have to be listed solely because of the person's state or federal military service;

(8) 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; and

(9) 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.

(b) 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 and qualifier. 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 a casino facility. The plan shall take into consideration the need to provide training to low-income persons so as to allow such persons to qualify for jobs that will be created in the casino facilities as a result of implementation of this chapter.

(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 with respect to 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 shareholders and directors; if a partnership, the names and addresses of all partners, both general and limited.

(e) An application fee of $50,000 shall be paid by each applicant at the time of filing to defray the costs associated with an applicant and qualifier�s background investigation conducted by the commission, and the search and classification of fingerprints obtained by the commission with request to the application. If the costs of the investigation exceed $50,000, the applicant shall pay the additional amount to the commission. If the costs of the investigation are less than $50,000, 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 the applicant. The information, records, interviews, reports, statements, memoranda, or other data shall be exempt from public disclosure required by chapter 92F, and 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.

(f) An applicant shall be ineligible to receive a 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 applying for a license employs a person described in paragraph (1), (2), (3), or (4) who participates in the management or operation of gaming operations authorized under this chapter;

(6) A license of the person, firm, or corporation issued under this chapter, or a license to own or operate gaming facilities in any other jurisdiction, has been revoked; or

(7) The applicant or qualifier owns any interest in, operates or manages, has a contractual relationship with, or is an affiliate of, a hotel, motel, or resort located within thirty miles of a casino facility site that might be developed under this chapter. The relationship between the applicant or any of its qualifiers and the hotel, motel, or resort shall be determined as of the time of licensure, thus allowing any applicants or their qualifiers to divest themselves of such interest between the time of application and licensure.

§ -9 Criteria for award of a casino license. (a) The commission shall issue a license to operate a casino facility in the Waikiki area to the applicant who best meets all of the following criteria:

(1) The applicant has submitted a casino facility development plan for the casino facility to be located in the Waikiki gaming zone which will have a positive effect on increasing tourism generating jobs, and providing revenue to the local economy;

(2) The applicant has shown economic resources so as to the commission that the applicant has the financial ability to construct the casino facility to be located in the Waikiki gaming zone;

(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's sources and total amount of capitalization to develop, construct, maintain, and operate the proposed casino facility;

(5) The applicant has adequate capitalization to develop, construct, maintain, and operate for the duration of a 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 assisted the State in developing casino gaming through their commitment of resources to support, promote, and establish this casino gaming development program. Expenditures of time, money, and effort will all be considered in connection with this criterion. The timing of such participation will further influence this criterion, with early participation and contribution to this casino development program receiving more favorable consideration;

(7) The extent to which the applicant or any of its qualifiers demonstrate that they have at least four years of experience in helping to revitalize an urban area by successfully planning, developing, and opening a land-based casino in an American state that previously did not permit casino gaming. Such experience in planning, developing, and opening a land-based casino in an urban area in the past five years will receive most favorable consideration for this criterion. For purposes of this paragraph, "urban area" means a jurisdiction with a population of at least seven hundred fifty thousand;

(8) The applicant or any qualifier has not been indicted, convicted, pleaded guilty or nolo contendere, forfeited bail concerning a felony within the last ten years or a misdemeanor involving gambling, theft, or fraud within the last ten years;

(9) The applicant or any qualifier has not filed, or had filed against the applicant or any qualifier , within the last ten years a proceeding for bankruptcy or has not, within the last ten years, been involved in any formal process to adjust, defer, suspend, or otherwise work out the payment of any debt;

(10) The applicant or any qualifier has not, within the last five tax years, failed to pay any final amount of tax due and payable under federal, state, or local law, after exhaustion of all inter-agency appeals processes; and

(11) The applicant meets other standards for the issuance of a casino license that the commission may adopt by rule. The rules adopted by under this chapter shall not be arbitrary, capricious, or contradictory to the expressed provisions of this chapter and shall further define and clarify the above listed conditions rather than creating new conditions for licensure.

(b) The commission shall issue a license to operate a casino facility in the Kapolei area to the applicant who best meets the following criteria:

(1) The applicant has submitted a casino facility development plan for the casino facility to be located in the Kapolei area which will best facilitate entertainment and gaming at this location, generate jobs, and provide revenue to the local economy;

(2) The applicant has shown economic resources so as to demonstrate to the commission that the applicant has the financial ability to construct the casino facility to be located in the Kapolei area;

(3) The applicant�s financial ability to purchase and maintain adequate liability and casualty insurance and to provide an adequate surety bond;

(4) The applicant's sources and total amount of capitalization to develop, construct, maintain, and operate the proposed casino facility;

(7) The extent to which the applicant or any of its qualifiers demonstrate that they have experience with the development and opening of a casino in a non-urban setting in a state which previously did not permit casino gaming. Experience in developing and opening a casino in a non-urban setting where minimum infrastructure existed will receive more favorable consideration;

(9) The applicant or any qualifier has not filed, or had filed against the applicant or any qualifier, within the last ten years, a proceeding for bankruptcy or has not, within the last ten years, been involved in any formal process to adjust, defer, suspend, or otherwise work out the payment of any debt;

(c) To demonstrate financial ability pursuant to the above sections of this chapter, the applicant may include the economic resources of the person or persons who will actually operate the casino facility and any qualifiers.

(d) Each applicant and qualifier shall submit with the application, on forms provided by the commission, two sets of the applicant�s fingerprints.

(e) The commission may revoke the 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 license revocation is in the best interest of the State.

(f) 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 license under this chapter; provided that all state laws and county ordinances relating to liquor are met.

(g) Nothing in this chapter shall be interpreted to prohibit a licensed owner from operating a school for the training of any occupational licensee.

§ -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 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.

§ -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 notify the affected applicant or qualifier in writing of the apparent deficiency. The applicant or qualifier may then request an 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 make a finding that the apparent deficiency has not been corrected. Following the executive director�s finding that the apparent deficiency has not been corrected, the affected applicant or qualifier shall have an opportunity to appeal the executive director's finding of an apparent deficiency to the commission. The commission shall conduct an investigative hearing, pursuant to section -16 of this chapter and in accordance with rules promulgated 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 about 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 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 its 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 which 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 may be found unqualified, an institutional investor holding either under ten per cent of the equity securities or debt securities of a casino licensee�s affiliate or affiliated company which is related in any way to the financing of the casino licensee, if 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, shall be granted a waiver of the eligibility and suitability requirements if such securities are those of a publicly traded corporation and its holdings of such securities were purchased for investment purposes only and, if requested by the commission, 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 as 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 may be found 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, which may impact the eligibility and suitable 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 an 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 who 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 chapter 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) who 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 gaming casino operations 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 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 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.

§ -14 Occupational licenses. (a) The commission may issue an occupational license to an applicant upon the payment of nonrefundable application fee as set by the commission, upon a determination by the commission that the applicant is eligible for an occupational license, and upon payment of an annual license fee in an amount set by the commission. To be eligible for an occupational license, an applicant shall:

(1) Be at least twenty-one years of age if the applicant will perform 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, or a similar statute of any other jurisdiction, or a crime involving dishonesty or moral turpitude;

(3) Have demonstrated a level of skill or knowledge that the commission determines to be necessary to operate casino games in a casino facility; and

(4) Have met standards for the holding of an occupational license as provided in rules adopted by the commission, including background inquiries and other requirements similar to those for an operator's license.

(b) 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; or

(3) Has had a permit or license issued to the applicant in any other jurisdiction that has been suspended, restricted, or revoked, and if so, for what period of time.

(c) 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.

(d) The commission may refuse 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 therefore has been suspended, restricted, revoked, or denied for just cause in any other jurisdiction; or

(4) For any other just cause.

(e) The commission may suspend, revoke, or restrict any occupation 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.

(f) A person who knowingly makes a false statement on an application is guilty of a petty misdemeanor.

(g) 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.

(h) Any training provided for occupational licenses may be conducted either in a licensed casino facility or at a school with which a licensed owner has entered into an agreement.

§ -15 Annual report. The commission shall file a written annual report with the governor and the legislature on or at least sixty days prior to the close of each fiscal year and any additional reports that the governor or the legislature shall request. 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.

§ -16 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 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, 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 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 hearing promptly and in reasonable order.

§ -17 Conduct of casino gaming. Casino gaming may be conducted by a licensed operator, subject to the following standards:

(1) Minimum and maximum wagers on games shall be set by the licensee;

(2) Agents of the commission may enter and inspect any casino facility at any time for the purpose of determining compliance with this chapter;

(3) Employees of the commission shall have the right to be present in a casino facility or on adjacent facilities under the control of the licensee;

(4) Gaming equipment and supplies customarily used in conducting casino gaming must 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) 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;

(7) Wagering shall not be conducted with money or other negotiable currency, except for wagering on slot machines;

(8) A person under age twenty-one shall not be permitted in an area of a casino facility where casino gaming is being conducted, except for a person of 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;

(9) All tokens, chips, or electronic cards used to make wagers must be purchased from a licensed owner within the casino facility. The tokens, chips, or electronic cards may be purchased by means of an agreement under which the owner extends credit to the patron. The tokens, chips, or electronic cards may be used while within a casino facility only for the purpose of making wagers on authorized games; and

(10) In addition to the above, casino gaming must be conducted in accordance with all rules adopted by the commission.

§ -18 Collection of amounts owing under credit agreements. Notwithstanding any other law to the contrary, a licensee who extends credit to a casino gaming patron 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 operator's costs, expenses, and reasonable attorney's fees incurred in collection.

§ -19 Wagering tax; rate; distribution. A tax shall be imposed on the gross receipts received from casino gaming authorized under this chapter at the rate of ten per cent. One per cent of the tax revenues may be utilized by the commission for a compulsive gamblers program required to be established pursuant to this chapter and for public security at the gaming facilities. All administrative expenses of the commission shall be paid from the proceeds produced by this tax.

§ -20 The state gaming fund; disposition of taxes collected. 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. After payment of expenses incurred for the administration and enforcement of this chapter, the revenues generated by gaming shall be used for: education, law enforcement, and economic development.

§ -21 Legislative oversight. (a) Beginning with the fiscal year ending June 30, 2014, the auditor shall conduct a biennial financial and social assessment of gaming operations. In conducting the assessment, the auditor shall identify the financial impacts of gaming on the state economy and the social impacts of gaming upon the community. The auditor shall submit a report of the findings and recommendations to the legislature no later than twenty days prior to the convening of the next regular session after the biennial assessment is completed.

(b) Beginning with the fiscal year ending June 30, 2014, 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 first audit is completed.

§ -22 Compulsive gambler program. The commission shall create and implement a program to assist individuals who are identified as compulsive gamblers."

SECTION 3. Section 92F-13, Hawaii Revised Statutes, is amended to read as follows:

"§92F-13 Government records; exceptions to general rule. This part shall not require disclosure of:

(1) Government records which, if disclosed, would constitute a clearly unwarranted invasion of personal privacy;

(2) Government records pertaining to the prosecution or defense of any judicial or quasi-judicial action to which the State or any county is or may be a party, to the extent that such records would not be discoverable;

(3) Government records that, by their nature, must be confidential in order for the government to avoid the frustration of a legitimate government function;

(4) Government records which, pursuant to state or federal law including an order of any state or federal court, are protected from disclosure; [~~and~~]

(5) Inchoate and draft working papers of legislative committees including budget worksheets and unfiled committee reports; work product; records or transcripts of an investigating committee of the legislature which are closed by rules adopted pursuant to section 21-4 and the personal files of members of the legislature[.]; and

(6) Information, records, interviews, reports, statements, memoranda, or other data supplied to or used by the Hawaii gaming control commission pursuant to section -8(e)."

SECTION 4. Statutory material to be repealed is bracketed. New statutory material is underscored.
SECTION 5. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

Report Title:

Hawaii Gaming Control Commission; Casino Gaming

Description:

Establishes the Hawaii Gaming Control Commission and the framework of casino gaming in Waikiki and Kapolei.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

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Bill Text: HI HB1063 | 2014 | Regular Session | Introduced

Hawaii House Bill 1063 (Prior Session Legislation)

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