MISSISSIPPI LEGISLATURE

1998 Regular Session

To: Finance

By: Senator(s) Canon

Senate Bill 2298

AN ACT TO AMEND SECTION 97-33-53, MISSISSIPPI CODE OF 1972, TO REQUIRE THAT BINGO LICENSEES HAVE RECEIVED INTERNAL REVENUE CODE SECTION 501(C) OR (D) STATUS FOR AT LEAST THREE YEARS PRIOR TO RECEIVING A LICENSE TO OPERATE BINGO GAMES IN THE STATE OF MISSISSIPPI; TO AMEND SECTION 97-33-57, MISSISSIPPI CODE OF 1972, TO EMPOWER THE MISSISSIPPI GAMING COMMISSION TO REQUIRE BINGO LICENSEES TO SUBMIT PLANS FOR THE OPERATION OF BINGO HALLS, TO AUTHORIZE THE COMMISSION TO AUDIT TRANSFERS OF GROSS OR NET PROCEEDS BETWEEN LICENSEES AND OTHER ENTITIES WITH ONE OR MORE COMMON OFFICERS, TO AUTHORIZE THE COMMISSION TO AUDIT THE DISPOSITION OF ANY FUNDS EXPENDED BY A BINGO LICENSEE FOR THE SUPPORT OF CHARITY AND TO DETERMINE THE USE MADE OF THESE FUNDS, TO AUTHORIZE THE COMMISSION TO DENY, REVOKE OR SUSPEND THE LICENSE OR APPLICATION OF ANY ORGANIZATION WHICH FAILS TO COMPLY WITH THE REQUIREMENTS OF THIS PROVISION OR RULES PROMULGATED UNDER ITS AUTHORITY, TO AUTHORIZE THE COMMISSION TO PROMULGATE RULES AND REGULATIONS NECESSARY TO CARRY OUT THE PURPOSES OF THIS PROVISION, AND TO PROVIDE FOR A TWO-YEAR CYCLE; TO AMEND SECTION 97-33-203, MISSISSIPPI CODE OF 1972, TO REQUIRE THAT APPRAISERS AUTHORIZED TO APPRAISE COMMERCIAL LESSORS' BINGO PROPERTY CONFORM TO COMMISSION-APPROVED PRACTICES AND TO ALLOW THE COMMISSION TO REQUIRE THE COMMERCIAL LESSOR TO PAY FOR ANY ADDITIONAL APPRAISALS REQUIRED BY THE COMMISSION; AND FOR RELATED PURPOSES. 

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

SECTION 1. Section 97-33-53, Mississippi Code of 1972, is amended as follows:

97-33-53. As used in Sections 97-33-51 through 97-33-203, the following words and phrases shall have the meanings ascribed herein unless the context clearly indicates otherwise:

(a) "Bingo" means a game of chance in which a right to participate is sold to a player and prizes are awarded, that is:

(i) Played with a card, sheet, or an electronic representation thereof, bearing numbers or symbols;

(ii) Played with the participant covering, marking or revealing the numbers or symbols, as objects similarly numbered or designated are drawn from a receptacle and orally called; in the case of electronic representations, the requisite covering, marking or revealing may be accomplished electronically to match objects similarly numbered or designated and stored in memory in advance as winners, or which are generated randomly by an electronic process;

(iii) Won by the player who first covers, marks or reveals a previously designated arrangement of numbers or symbols; and

(iv) Played on the premises of a licensed organization and during the organization's regular hours of conducting bingo games.

The term "bingo" includes pull-tabs made available as a companion game to bingo and played on the premises. The term "bingo" does not include any game which is played via television, telephone, satellite dish or any other telecommunications transmission or receiving device.

Any electronic device used to produce an electronic representation must maintain an inventory recorded in computed memory, not on cartridge memory, of the number of winners and losers. It must also be equipped with tamper-proof electric meters as a backup to the computer memory. It may not dispense cash or coins. Paybacks will be dispensed by printed ticket only. The printer shall maintain duplicate records of all transactions. All such electronic devices shall be approved by the Mississippi Gaming Commission.

(b) "Charitable organization" means:

(i) Any nonprofit organization domiciled in this state that is tax exempt under Section 501(c) or (d) of the United States Internal Revenue Code and which has on file with the Mississippi Gaming Commission * * * a tax exemption letter issued by the United States Internal Revenue Service and has held such for three (3) years * * * and is:

1. Any chapter or post domiciled in this state of a nationally chartered organization whose membership is composed of former members of the military forces of the United States of America or whose membership is composed of members of the Merchant Marine Veterans Association; or

2. Any nonprofit civic, educational, wildlife conservation organization or religious organization domiciled in this state.

 * * *

(ii) Any senior citizen recreation club, which is defined as an organization sanctioned by the local council on aging and composed of members aged sixty (60) years or older, the sole function of which is to provide amusement and diversion for its members.

(c) "Commission" means the Mississippi Gaming Commission.

(d) "Distributor" means any person or other entity who sells, offers for sale or otherwise furnishes to any person, gaming supplies or equipment for use in the conducting of a bingo game authorized by Sections 97-33-51 through 97-33-203.

(e) "Manufacturer" means any person or other entity who manufactures for sale, offers for sale, or otherwise furnishes, any gaming supplies or equipment for use in the conducting of a bingo game authorized by Sections 97-33-51 through 97-33-203.

(f) "Commercial lessor" means any person or other entity, other than a bona fide nonprofit organization licensed to conduct charitable bingo games, who leases any building, structure or premises to organizations licensed under the provisions of Sections 97-33-51 through 97-33-203.

(g) "Operator" means a person or other entity who supplies the charity an electronic facsimile pull-tab device or labor saving device as described in Section 97-33-53. This person or entity may not be engaged in any other form of bingo operations such as a distributor, manufacturer, charity or commercial lessor.

(h) "Pull-tabs" means single or banded tickets or cards each with its face covered to conceal one or more numbers or symbols, where one or more cards or tickets in each set have been designed in advance as winners. "Pull-tabs" shall also mean any device for dispensing pull-tabs.

(i) "Session" means any five-hour time period within one (1) day or six-hour time period within one (1) week.

(j) "Day" means the whole or any part of the time period of twenty-four (24) hours from midnight to midnight.

(k) "Week" means the seven-day period from 12:01 a.m. on Monday until midnight the following Sunday.

SECTION 2. Section 97-33-57, Mississippi Code of 1972, is amended as follows:

97-33-57. (1) The commission shall investigate the qualifications of each applicant and the merits of the application, with due expedition after the filing of the application, and shall make the following determinations:

(a) That the applicant is duly qualified to hold, operate and conduct bingo games under the provisions of Sections 97-33-51 through 97-33-203 and the rules and regulations of the commission governing same.

(b) That the member or members of the organization designated in the application to hold, operate, conduct, or assist in holding, operating, or conducting, the bingo games are bona fide active members of the organization and of good moral character, who have never been convicted of certain offenses as designated by the commission.

(c) That bingo games are to be held, operated and conducted in accordance with the provisions of Sections 97-33-51 through 97-33-203 and in accordance with the rules and regulations of the commission governing same, and that the proceeds thereof are to be disposed of as provided by Sections 97-33-51 through 97-33-203.

(2) If the commission is satisfied that no commission, salary, compensation, reward or recompense whatever, except as otherwise provided in Section 97-33-69, will be paid or given to any person holding, operating or conducting any bingo game, it may issue a license to the applicant for the holding, operating and conducting of bingo games.

(3) No license for holding, operating or conducting bingo games that is issued under Sections 97-33-51 through 97-33-203 shall be effective for more than two (2) calendar years except as provided in subsection (7) of this section.

(4) The commission shall not issue a license to:

(a) Any person who has been convicted of certain related offenses as established by the commission or who presently has such a charge pending in any state or federal court;

(b) Any person who has ever been convicted of a gambling-related offense in any state or federal court;

(c) Any person who is or has ever been a professional gambler;

(d) Any firm, organization or corporation in which any person as described in paragraphs (a) through (c) is an officer or director, whether compensated or not, or in which such person has a direct or indirect financial interest;

(e) The commission may deny an application for licensure, refuse to renew a license, or suspend or revoke a license for any reason consistent with the purposes of Sections 97-33-51 through 97-33-203 which it deems to be in the interest of the public. However, policies regarding such denial, suspension, revocation or refusal to renew shall be established by rule and regulation. If the commission fails to act upon the license application within sixty (60) days of the date of filing of the application by the charitable organization, such application shall be deemed accepted.

(5) Any significant change in the information submitted on its application for licensure shall be filed by a licensee with the commission within ten (10) days of the change. A significant change shall include, but not be limited to, any change in the officers, directors, managers, proprietors or persons having a direct or indirect financial interest in any licensed organization or entity.

(6) In addition to the other powers and duties granted under Title 97, Chapter 33, the commission shall have the following powers related to the regulation of bingo licensees and license applicants.

(a) To require as a precondition of licensure that applicants submit to the commission plans showing the support they intend to provide to charities and the other expenses they expect to incur with respect to the operation of bingo games, and the operations of programs for charitable support.

(b) To audit the flow of funds, whether gross or net proceeds, from any bingo licensee to any other entity which has one or more officers common to the bingo licensee.

(c) To audit funds which are expended by the bingo licensee in support of charity to determine the recipient entity and the uses for which the recipient entity expended such funds.

(d) To promulgate rules regarding the acceptable level of support a bingo charity must provide to charity.

(e) To deny, suspend or revoke the license of any licensee or applicant which fails to comply with the provisions of this subsection or any rules promulgated under its authority, or fails to make material progress annually in meeting the requirements of the bingo plans provided for in paragraph (a) of this subsection.

(f) The commission shall have the power to promulgate rules and regulations necessary to carry out the purposes of this subsection.

(7) In order to reduce the number of licenses which come due during the same months, the commission may devise a staggering plan under which an applicant may receive as many as three (3) additional months on a license. In the event that the commission implements such a plan, it shall develop a random method of determining which licensees shall receive extra months on their licenses. No licensee shall receive extra months on its license more than one (1) time during the entire period of time during which the licensee is licensed.

SECTION 3. Section 97-33-203, Mississippi Code of 1972, is amended as follows:

97-33-203. (1) Any person leasing any premises for the conducting of charitable gaming activities shall obtain a commercial lessor's license for each premises to be licensed. A commercial lessor's license shall authorize a person to lease specific premises to licensees for the conducting of charitable gaming activities. The commission, upon application and compliance with other provisions for licensure contained in Section 97-33-201 shall issue a commercial lessor's license to qualified persons.

(2) No lease of any premises by a commercial lessor to any charitable organization for a charitable bingo game shall provide for payment in excess of the reasonable market rental rate for such premises as determined by the average of two (2) independent appraisals for the premises. Such appraisals shall be conducted by appraisers selected by the applicant for a commercial lessor's license from a list of state-certified appraisers compiled and maintained by the commission. The appraisals shall be submitted by the commercial lessor as a part of the application for a commercial lessor's license. The commission may require that a third independent appraisal be conducted by a state-certified appraiser, as provided for in subsection (5) of this section, regarding any such property, which shall be used in arriving at the average reasonable market rate. The commercial lessor shall pay the cost of such third appraisal. No lease shall provide for rental for less than a five-hour session. No more than two (2) sessions shall be conducted within one (1) day and more often than eight (8) sessions in any one (1) week on the premises of a commercial lessor. Any licensee who holds no more than one (1) session per week shall be entitled to conduct one (1) six-hour session per week.

(3) No commercial lessor shall require the payment of any other cost or fee from an organization licensed to hold, operate or conduct bingo games other than the rental amount provided for by the rental agreement or contract or charge admission fees to persons entering the premises to participate in the games.

(4) No commercial lessor leasing premises for authorized charitable bingo game activities shall enter into any agreement with a distributor of gaming supplies for the use, purchase, promotion or sale of supplies to be used in such bingo games.

(5) The commission shall have the authority to promulgate rules defining appraisal practices which appraisers may not use in conducting appraisals of the property commercial lessors intend to lease to bingo licensees. Any appraiser who fails to comply with such rules may be removed from the list of appraisers approved under the authority of this section. In any event that a commercial lessor uses an appraiser who follows methods which are disapproved by the commission, the commission may reject the appraiser and may also select the appraiser which the commercial lessor will use to provide a substitute appraisal with costs of this additional appraisal to be charged against the commercial lessor.

SECTION 4. This act shall take effect and be in force from and after July 1, 1998.