MISSISSIPPI LEGISLATURE
2004 Regular Session
To: Gaming; Ways and Means
By: Representative Moak
AN ACT TO BRING FORWARD SECTIONS 75-76-1 THROUGH 75-76-313, MISSISSIPPI CODE OF 1972, WHICH ARE THE MISSISSIPPI GAMING CONTROL ACT, FOR THE PURPOSE OF AMENDMENT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 75-76-1, Mississippi Code of 1972, is brought forward as follows:
75-76-1. This chapter shall be known and may be cited as the "Mississippi Gaming Control Act."
SECTION 2. Section 75-76-3, Mississippi Code of 1972, is brought forward as follows:
75-76-3. (1) The provisions of this chapter shall not be construed to legalize any form of gaming which is prohibited under the Mississippi Constitution or the laws of this state. All legal gaming which is conducted in this state and which is otherwise authorized by law shall be regulated and licensed pursuant to the provisions of this chapter, unless the Legislature specifically provides otherwise. Nothing in this chapter shall be construed as encouraging the legalization of gambling in this state.
(2) The Legislature hereby finds and declares that lotteries and gaming both consist of the material element of chance. The Legislature is prohibited from legislating upon lotteries and permitted by virtue of its inherent powers to legislate upon gaming as the occasion arises. The Legislature derives its power to legislate upon gaming or gambling devices from its inherent authority over the morals and policy of the people and such power shall not be considered to conflict with the constitutional prohibition of lotteries.
(3) The Legislature hereby finds, and declares it to be the public policy of this state, that:
(a) Regulation of licensed gaming is important in order that licensed gaming is conducted honestly and competitively, that the rights of the creditors of licensees are protected and that gaming is free from criminal and corruptive elements.
(b) Public confidence and trust can only be maintained by strict regulation of all persons, locations, practices, associations and activities related to the operation of licensed gaming establishments and the manufacture or distribution of gambling devices and equipment.
(c) All establishments where gaming is conducted and where gambling devices are operated, and manufacturers, sellers and distributors of certain gambling devices and equipment must therefore be licensed, controlled and assisted to protect the public health, safety, morals, good order and general welfare of the inhabitants of the state.
(4) It is the intent of the Legislature that gaming licensees, to the extent practicable, employ residents of Mississippi as gaming employees and other employees in the operation of their gaming establishments located in this state.
(5) No applicant for a license or other affirmative commission approval has any right to a license or the granting of the approval sought. Any license issued or other commission approval granted pursuant to the provisions of this chapter is a revocable privilege, and no holder acquires any vested right therein or thereunder.
(6) The Legislature recognizes that Section 98 of the Mississippi Constitution of 1890 prohibits the conducting of any lottery in this state and that, while not defining the term "lottery," Section 98 clearly contemplates, as indicated by specific language contained therein, that a lottery involves the sale of tickets and a drawing in order to determine the winner. The Legislature also recognizes that Section 98 of the Mississippi Constitution of 1890 directs the Legislature to provide by law for the enforcement of its provisions. Therefore, in carrying out its duties under the Constitution and effectuating the intent of Section 98, the Legislature hereby finds that a lottery, as prohibited by the Constitution, does not include all forms of gambling but means any activity in which:
(a) The player or players pay or agree to pay something of value for chances, represented and differentiated by tickets, slips of paper or other physical and tangible documentation upon which appear numbers, symbols, characters or other distinctive marks used to identify and designate the winner or winners; and
(b) The winning chance or chances are to be determined by a drawing or similar selection method based predominately upon the element of chance or random selection rather than upon the skill or judgment of the player or players; and
(c) The holder or holders of the winning chance or chances are to receive a prize or something of valuable consideration; and
(d) The activity is conducted and participated in without regard to geographical location, with the player or players not being required to be present upon any particular premises or at any particular location in order to participate or to win.
SECTION 3. Section 75-76-5, Mississippi Code of 1972, is brought forward as follows:
75-76-5. As used in this chapter, unless the context requires otherwise:
(a) "Applicant" means any person who has applied for or is about to apply for a state gaming license, registration or finding of suitability under the provisions of this chapter or approval of any act or transaction for which approval is required or permitted under the provisions of this chapter.
(b) "Application" means a request for the issuance of a state gaming license, registration or finding of suitability under the provisions of this chapter or for approval of any act or transaction for which approval is required or permitted under the provisions of this chapter but does not include any supplemental forms or information that may be required with the application.
(c) "Associated equipment" means any equipment or mechanical, electromechanical or electronic contrivance, component or machine used remotely or directly in connection with gaming or with any game, race book or sports pool that would not otherwise be classified as a gaming device, including dice, playing cards, links which connect to progressive slot machines, equipment which affects the proper reporting of gross revenue, computerized systems of betting at a race book or sports pool, computerized systems for monitoring slot machines, and devices for weighing or counting money.
(d) "Chairman," through September 30, 1993, means the Chairman of the State Tax Commission, and thereafter means the Chairman of the Mississippi Gaming Commission.
(e) "Commission" or "Mississippi Gaming Commission," through September 30, 1993, means the State Tax Commission, and thereafter means the Mississippi Gaming Commission.
(f) "Commission member," through September 30, 1993, means a member of the State Tax Commission, and thereafter means a member of the Mississippi Gaming Commission.
(g) "Credit instrument" means a writing which evidences a gaming debt owed to a person who holds a license at the time the debt is created, and includes any writing taken in consolidation, redemption or payment of a prior credit instrument.
(h) "Enforcement division" means a particular division supervised by the executive director that provides enforcement functions.
(i) "Establishment" means any premises wherein or whereon any gaming is done.
(j) "Executive director," through September 30, 1993, means the director appointed by the State Tax Commission pursuant to Section 75-76-15(1), and thereafter means the Executive Director of the Mississippi Gaming Commission.
(k) Except as otherwise provided by law, "game," or "gambling game" means any banking or percentage game played with cards, with dice or with any mechanical, electromechanical or electronic device or machine for money, property, checks, credit or any representative of value, including, without limiting the generality of the foregoing, faro, monte, roulette, keno, fan-tan, twenty-one, blackjack, seven-and-a-half, big injun, klondike, craps, poker, chuck-a-luck (dai shu), wheel of fortune, chemin de fer, baccarat, pai gow, beat the banker, panguingui, slot machine, or any other game or device approved by the commission. However, "game" or "gambling game" shall not include bingo games or raffles which are held pursuant to the provisions of Section 97-33-51.
The commission shall not be required to recognize any game hereunder with respect to which the commission determines it does not have sufficient experience or expertise.
(l) "Gaming" or "gambling" means to deal, operate, carry on, conduct, maintain or expose for play any game as defined in this chapter.
(m) "Gaming device" means any mechanical, electromechanical or electronic contrivance, component or machine used in connection with gaming or any game which affects the result of a wager by determining win or loss. The term includes a system for processing information which can alter the normal criteria of random selection, which affects the operation of any game, or which determines the outcome of a game. The term does not include a system or device which affects a game solely by stopping its operation so that the outcome remains undetermined, and does not include any antique coin machine as defined in Section 27-27-12.
(n) "Gaming employee" means any person connected directly with the operation of a gaming establishment licensed to conduct any game, including:
(i) Boxmen;
(ii) Cashiers;
(iii) Change personnel;
(iv) Counting room personnel;
(v) Dealers;
(vi) Floormen;
(vii) Hosts or other persons empowered to extend credit or complimentary services;
(viii) Keno runners;
(ix) Keno writers;
(x) Machine mechanics;
(xi) Security personnel;
(xii) Shift or pit bosses;
(xiii) Shills;
(xiv) Supervisors or managers; and
(xv) Ticket writers.
The term "gaming employee" also includes employees of manufacturers or distributors of gaming equipment within this state whose duties are directly involved with the manufacture, repair or distribution of gaming equipment.
"Gaming employee" does not include bartenders, cocktail waitresses or other persons engaged in preparing or serving food or beverages unless acting in some other capacity.
(o) "Gaming license" means any license issued by the state which authorizes the person named therein to engage in gaming.
(p) "Gross revenue" means the total of all of the following, less the total of all cash paid out as losses to patrons and those amounts paid to purchase annuities to fund losses paid to patrons over several years by independent financial institutions:
(i) Cash received as winnings;
(ii) Cash received in payment for credit extended by a licensee to a patron for purposes of gaming; and
(iii) Compensation received for conducting any game in which the licensee is not party to a wager.
For the purposes of this definition, cash or the value of noncash prizes awarded to patrons in a contest or tournament are not losses.
The term does not include:
(i) Counterfeit money or tokens;
(ii) Coins of other countries which are received in gaming devices;
(iii) Cash taken in fraudulent acts perpetrated against a licensee for which the licensee is not reimbursed; or
(iv) Cash received as entry fees for contests or tournaments in which the patrons compete for prizes.
(q) "Hearing examiner" means a member of the Mississippi Gaming Commission or other person authorized by the commission to conduct hearings.
(r) "Investigation division" means a particular division supervised by the executive director that provides investigative functions.
(s) "License" means a gaming license or a manufacturer's, seller's or distributor's license.
(t) "Licensee" means any person to whom a valid license has been issued.
(u) "License fees" means monies required by law to be paid to obtain or continue a gaming license or a manufacturer's, seller's or distributor's license.
(v) "Licensed gaming establishment" means any premises licensed pursuant to the provisions of this chapter wherein or whereon gaming is done.
(w) "Manufacturer's," "seller's" or "distributor's" license means a license issued pursuant to Section 75-76-79.
(x) "Navigable waters" shall have the meaning ascribed to such term under Section 27-109-1.
(y) "Operation" means the conduct of gaming.
(z) "Party" means the Mississippi Gaming Commission and any licensee or other person appearing of record in any proceeding before the commission; or the Mississippi Gaming Commission and any licensee or other person appearing of record in any proceeding for judicial review of any action, decision or order of the commission.
(aa) "Person" includes any association, corporation, firm, partnership, trust or other form of business association as well as a natural person.
(bb) "Premises" means land, together with all buildings, improvements and personal property located thereon, and includes all parts of any vessel or cruise vessel.
(cc) "Race book" means the business of accepting wagers upon the outcome of any event held at a track which uses the pari-mutuel system of wagering.
(dd) "Regulation" means a rule, standard, directive or statement of general applicability which effectuates law or policy or which describes the procedure or requirements for practicing before the commission. The term includes a proposed regulation and the amendment or repeal of a prior regulation but does not include:
(i) A statement concerning only the internal management of the commission and not affecting the rights or procedures available to any licensee or other person;
(ii) A declaratory ruling;
(iii) An interagency memorandum;
(iv) The commission's decision in a contested case or relating to an application for a license; or
(v) Any notice concerning the fees to be charged which are necessary for the administration of this chapter.
(ee) "Respondent" means any licensee or other person against whom a complaint has been filed with the commission.
(ff) "Slot machine" means any mechanical, electrical or other device, contrivance or machine which, upon insertion of a coin, token or similar object, or upon payment of any consideration, is available to play or operate, the play or operation of which, whether by reason of the skill of the operator or application of the element of chance, or both, may deliver or entitle the person playing or operating the machine to receive cash, premiums, merchandise, tokens or anything of value, whether the payoff is made automatically from the machine or in any other manner. The term does not include any antique coin machine as defined in Section 27-27-12.
(gg) "Sports pool" means the business of accepting wagers on sporting events, except for athletic events, by any system or method of wagering other than the system known as the "pari-mutuel method of wagering."
(hh) "Temporary work permit" means a work permit which is valid only for a period not to exceed ninety (90) days from its date of issue and which is not renewable.
(ii) "Vessel" or "cruise vessel" shall have the meanings ascribed to such terms under Section 27-109-1.
(jj) "Work permit" means any card, certificate or permit issued by the commission, whether denominated as a work permit, registration card or otherwise, authorizing the employment of the holder as a gaming employee. A document issued by any governmental authority for any employment other than gaming is not a valid work permit for the purposes of this chapter.
(kk) "School or training institution" means any school or training institution which is licensed by the commission to teach or train gaming employees pursuant to Section 75-76-34.
(ll) "Cheat" means to alter the selection of criteria that determine:
(i) The rules of a game; or
(ii) The amount or frequency of payment in a game.
SECTION 4. Section 75-76-7, Mississippi Code of 1972, is brought forward as follows:
75-76-7. (1) The State Tax Commission shall exercise all powers and perform all duties assigned to the Mississippi Gaming Commission under this chapter. This subsection shall stand repealed on October 1, 1993.
(2) From and after October 1, 1993, the Mississippi Gaming Commission, consisting of three (3) members, is hereby created.
(3) (a) Each member of the commission shall be:
(i) A citizen of the United States; and
(ii) A resident of the State of Mississippi.
(b) One (1) member of the commission shall have been a resident for not less than five (5) years of a county in which gaming is authorized at the time of appointment.
(4) No member of the Legislature, no person holding any elective office, nor any officer or official of any political party shall be eligible to appointment to the commission.
(5) It is the intention of the Legislature that the commission shall be composed of the most qualified persons available, preferably no two (2) of whom shall be of the same profession or major field of industry; but no person actively engaged or having a direct pecuniary interest in gaming activities shall be a member of the commission.
SECTION 5. Section 75-76-9, Mississippi Code of 1972, is brought forward as follows:
75-76-9. (1) This section shall take effect from and after October 1, 1993.
(2) Initial appointments to the commission made pursuant to this chapter shall be for terms as follows:
(a) One (1) member for two (2) years;
(b) One (1) member for three (3) years; and
(c) One (1) member for four (4) years.
(3) The term of each of the members first appointed pursuant to this chapter shall be designated by the Governor.
(4) After the initial appointments, all members shall be appointed for terms of four (4) years from the expiration date of the previous term; provided, however, that no member shall serve more than two (2) terms of four (4) years each.
(5) Appointments to the commission and designation of the chairman shall be made by the Governor with the advice and consent of the Senate. Prior to the nomination, the PEER Committee shall conduct an inquiry into the nominee's background, with particular regard to the nominee's financial stability, integrity and responsibility and his reputation for good character, honesty and integrity.
(6) The member designated by the Governor to serve as chairman shall serve in such capacity throughout such member's entire term and until his successor shall have been duly appointed and qualified. No such member, however, shall serve in such capacity for more than ten (10) years.
(7) Appointments to fill vacancies on the commission shall be for the unexpired term of the member to be replaced.
(8) Members of the commission shall not have any direct or indirect interest in an undertaking that puts their personal interest in conflict with that of the commission and shall be governed by the provisions of Section 109 of the Mississippi Constitution and Section 25-4-105.
(9) Each member of the commission shall serve for the duration of his term and until his successor shall be duly appointed and qualified; provided, however, that in the event that a successor is not duly appointed and qualified within one hundred twenty (120) days after the expiration of the member's term, a vacancy shall be deemed to exist.
(10) Each member of the commission is entitled to per diem as provided by Section 25-3-69.
SECTION 6. Section 75-76-11, Mississippi Code of 1972, is brought forward as follows:
75-76-11. (1) This section shall take effect from and after October 1, 1993.
(2) The executive director and his employees shall furnish to the commission such administrative and clerical services and such furnishings, equipment, supplies, stationery, books and all other things that the commission may deem necessary or desirable in carrying out its functions.
(3) All costs of administration incurred by the executive director on behalf of the commission shall be paid out on claims from the State Treasury.
SECTION 7. Section 75-76-13, Mississippi Code of 1972, is brought forward as follows:
75-76-13. (1) This section shall take effect from and after October 1, 1993.
(2) Regular and special meetings of the commission may be held, at the discretion of the commission, at such times and places as it may deem convenient, but at least one (1) regular meeting shall be held each month on or after the fifteenth day of the month. All meetings shall be open unless they may be closed pursuant to Section 25-41-7.
(3) A majority of the members is a quorum of the commission.
SECTION 8. Section 75-76-15, Mississippi Code of 1972, is brought forward as follows:
75-76-15. (1) The State Tax Commission shall appoint a director who shall exercise all powers and perform all duties assigned to the executive director under this chapter. This subsection shall stand repealed on October 1, 1993.
(2) From and after October 1, 1993, the position of Executive Director of the Mississippi Gaming Commission is hereby created.
(3) The Gaming Commission shall appoint the executive director, with the advice and consent of the Senate, and the executive director shall serve at the will and pleasure of the commission. The director appointed by the State Tax Commission pursuant to subsection (1) of this section who is serving on September 30, 1993, shall serve as the Executive Director of the Mississippi Gaming Commission until the executive director appointed by the Gaming Commission pursuant to this section is confirmed by the Senate.
(4) No member of the Legislature, no person holding any elective office, nor any officer or official of any political party is eligible for the appointment of executive director.
(5) The executive director must have at least five (5) years of responsible administrative experience in public or business administration or possess broad management skills.
(6) The executive director shall devote his entire time and attention to his duties under this chapter and the business of the commission and shall not pursue any other business or occupation or hold any other office of profit.
(7) The executive director shall not be pecuniarily interested in any business or organization holding a gaming license under this chapter or doing business with any person or organization licensed under this chapter.
(8) The executive director is entitled to an annual salary in the amount specified by the commission, subject to the approval of the State Personnel Board, within the limits of legislative appropriations or authorizations.
SECTION 9. Section 75-76-17, Mississippi Code of 1972, is brought forward as follows:
75-76-17. (1) From and after October 1, 1993, there are hereby created, for supervision by the executive director, two (2) divisions which are entitled the Enforcement Division and the Investigation Division. The executive director shall be authorized to create such other divisions as he deems necessary to implement the provisions of this chapter excluding an audit division.
(2) The executive director shall employ division directors that possess training and experience in the fields of investigation, law enforcement, law or gaming.
SECTION 10. Section 75-76-19, Mississippi Code of 1972, is brought forward as follows:
75-76-19. (1) The executive director shall maintain a file of all applications for licenses under this chapter, together with a record of all action taken with respect to those applications. The file and record are open to public inspection.
(2) The commission and the executive director may maintain such other files and records as they deem desirable.
(3) All information and data:
(a) Required by the commission or the executive director to be furnished to them under this chapter or which may be otherwise obtained relative to the finances, earnings or revenue of any applicant or licensee;
(b) Pertaining to an applicant's criminal record, antecedents and background which have been furnished to or obtained by the commission or the executive director from any source;
(c) Provided to the members of the commission or the executive director or his employees by a governmental agency or an informer or on the assurance that the information will be held in confidence and treated as confidential; and
(d) Obtained by the executive director or the commission from a manufacturer, distributor or operator relating to the manufacturing of gaming devices; are confidential and may be revealed in whole or in part only in the course of the necessary administration of this chapter or upon the lawful order of a court of competent jurisdiction, except that the executive director or the commission may reveal such information and data to an authorized agent of any agency of the United States Government, any state, or any political subdivision of this state pursuant to regulations adopted by the commission. Notice of the content of any information or data furnished or released pursuant to this subsection (3) may be given to any applicant or licensee in a manner prescribed by regulations adopted by the commission.
(4) Before the beginning of each legislative session, the commission shall submit to the Legislature a report on the gross revenue, net revenue and average depreciation of all licensees, categorized by class of licensee and geographical area, and the assessed valuation of the property of all licensees, by category, as listed on the ad valorem tax assessment rolls.
SECTION 11. Section 75-76-21, Mississippi Code of 1972, is brought forward as follows:
75-76-21. (1) The executive director in pursuit of the attainment of the objectives and the purposes of this chapter may:
(a) Sue and be sued on behalf of the commission;
(b) Acquire real property in accordance with statutory procedure and make improvements thereon on behalf of the commission;
(c) Make, execute and effectuate any and all agreements or contracts, including contracts for the purchase of goods and services as are necessary;
(d) Employ the services of such persons as he considers necessary for the purposes of consultation or investigation and fix the salaries of or contract for the services of such legal, professional, technical and operational personnel and consultants, subject to applicable provisions of the State Personnel Board. For the purpose of implementing the provisions of this chapter, additional legal assistance may be retained only with the approval of the Attorney General;
(e) Acquire such furnishings, equipment, supplies, stationery, books, and all other things as he may deem necessary or desirable in carrying out his functions; and
(f) Perform such other duties which he may deem necessary to effectuate the purposes of this chapter.
(2) Except as otherwise provided in this chapter, all costs of administration incurred by the executive director and his employees shall be paid out on claims from the State Treasury in the same manner as other claims against the state are paid.
(3) The executive director is authorized to employ up to twenty-five (25) time-limited employees. Such employees shall be employed under authority and with approval of the State Tax Commission. This subsection shall stand repealed on October 1, 1993.
SECTION 12. Section 75-76-23, Mississippi Code of 1972, is brought forward as follows:
75-76-23. The executive director shall direct and supervise all administrative and technical activities of the commission in accordance with the provisions of this chapter and with the administrative procedures of and regulations adopted by the commission. It shall be the duty of the executive director to:
(a) Establish, and from time to time alter, such plan of organization as he may deem expedient;
(b) By agreement secure information and services as he deems necessary from any department, agency or unit of state government. Such agencies, departments or units of state government shall cooperate with the executive director and provide such information and services as may be required by the executive director to carry out his responsibilities;
(c) Make available for inspection by any member of the commission, upon request, all books, records, files and other information and documents of his office, and advise the commission and recommend such administrative regulations and other matters he deems necessary and advisable to improve the administration of this chapter; and
(d) Attend meetings of the commission or appoint a designee to attend on his behalf.
SECTION 13. Section 75-76-25, Mississippi Code of 1972, is brought forward as follows:
75-76-25. The Attorney General and his assistants shall represent the commission and the executive director in any proceeding to which the commission or the executive director is a party under this chapter. The Attorney General shall also advise the commission and the executive director in all other matters, including representing the commission when the commission sits in a quasi-judicial capacity.
SECTION 14. Section 75-76-27, Mississippi Code of 1972, is brought forward as follows:
75-76-27. (1) The provisions of this chapter with respect to state gaming licenses and manufacturer's, seller's and distributor's licenses shall be administered by the executive director for the protection of the public and in the public interest in accordance with the policy of this state.
(2) The executive director and his employees may:
(a) Inspect and examine all premises wherein gaming is conducted or gambling devices or equipment are manufactured, sold or distributed;
(b) Inspect all equipment and supplies in, upon or about such premises;
(c) Summarily seize and remove from such premises and impound any equipment or supplies for the purpose of examination and inspection;
(d) Demand access to and inspect, examine, photocopy and audit all papers, books and records of applicants and licensees, on their premises or elsewhere as practicable, in the presence of the licensee or his agent, respecting the gross income produced by any gaming business (and may require verification of income) and respecting all other matters affecting the enforcement of the policy or any of the provisions of this chapter.
(3) For the purpose of conducting audits after the cessation of gaming by a licensee, the former licensee shall furnish, upon demand of the executive director or his employee, books, papers and records as necessary to conduct the audits. The former licensee shall maintain all books, papers and records necessary for audits for a period of three (3) years after the date of the surrender or revocation of his gaming license. If the former licensee seeks judicial review of a deficiency determination or files a petition for a redetermination, he must maintain all books, papers and records until a final order is entered on the determination.
(4) The executive director may investigate, for the purpose of prosecution, any suspected criminal violation of the provisions of this chapter. For the purpose of the administration and enforcement of this chapter, the executive director and enforcement employees have the powers of a peace officer of this state.
(5) The commission or executive director has full power and authority to issue subpoenas and compel the attendance of witnesses at any place within this state, to administer oaths, and to require testimony under oath. Any process or notice may be served in the manner provided for service of process and notices in civil actions. The commission or the executive director may pay such transportation and other expenses of witnesses as they deem reasonable and proper. Any person making false oath in any matter before the commission is guilty of perjury. The commission may appoint hearing examiners who may administer oaths and receive evidence and testimony under oath.
SECTION 15. Section 75-76-28, Mississippi Code of 1972, is brought forward as follows:
75-76-28. The commission has full power and authority to exercise any of the powers, duties and responsibilities set forth in Sections 97-33-51 through 97-33-81, 97-33-101 through 97-33-109, 97-33-201 and 97-33-203.
SECTION 16. Section 75-76-29, Mississippi Code of 1972, is brought forward as follows:
75-76-29. (1) The executive director and his employees shall investigate the qualifications of each applicant under this chapter before any license is issued or before any registration, finding of suitability or approval of acts or transactions for which commission approval is required is granted, and the executive director shall continue to observe the conduct of all licensees and other persons having a material involvement directly or indirectly with a licensed gaming operation or registered holding company to ensure that licenses are not issued or held by, nor is there any material involvement directly or indirectly with a licensed gaming operation or registered holding company by, unqualified, disqualified or unsuitable persons or persons whose operations are conducted in an unsuitable manner or in unsuitable or prohibited places or locations.
(2) The executive director has the authority to recommend to the commission the denial of any application, the limitation, conditioning or restriction of any license, registration, finding of suitability or approval or the imposition of a fine upon any person licensed, registered or found suitable or approved for any cause deemed reasonable by the executive director.
(3) The commission has full and absolute power and authority to deny any application or limit, condition, restrict, revoke or suspend any license, registration, finding of suitability or approval, or fine any person licensed, registered, found suitable or approved, for any cause deemed reasonable by the commission.
(4) Any license issued or other commission approval granted pursuant to the provisions of this chapter is a revocable privilege, and no holder acquires any vested right therein or thereunder. The initial decision of the commission to deny, limit, condition or restrict a license shall be final.
SECTION 17. Section 75-76-31, Mississippi Code of 1972, is brought forward as follows:
75-76-31. The commission and the executive director may refuse to reveal, in any court or administrative proceeding except a proceeding brought by the State of Mississippi, the identity of an informant or the information obtained from the informant, or both the identity and the information.
SECTION 18. Section 75-76-33, Mississippi Code of 1972, is brought forward as follows:
75-76-33. (1) The commission shall, from time to time, adopt, amend or repeal such regulations, consistent with the policy, objects and purposes of this chapter, as it may deem necessary or desirable in the public interest in carrying out the policy and provisions of this chapter.
(2) These regulations shall, without limiting the general powers herein conferred, include the following:
(a) Prescribing the method and form of application which any applicant for a license or for a manufacturer's, seller's or distributor's license must follow and complete before consideration of his application by the executive director or the commission.
(b) Prescribing the information to be furnished by any applicant or licensee concerning his antecedents, habits, character, associates, criminal record, business activities and financial affairs, past or present.
(c) Prescribing the information to be furnished by a licensee relating to his employees.
(d) Requiring fingerprinting of an applicant or licensee, and gaming employees of a licensee, or other methods of identification and the forwarding of all fingerprints taken pursuant to regulation of the Federal Bureau of Investigation.
(e) Prescribing the manner and procedure of all hearings conducted by the commission or any hearing examiner of the commission, including special rules of evidence applicable thereto and notices thereof.
(f) Requiring any applicant to pay all or any part of the fees and costs of investigation of such applicant as may be determined by the commission, except that no applicant for an initial license shall be required to pay any part of the fees or costs of the investigation of the applicant with regard to the initial license.
(g) Prescribing the manner and method of collection and payment of fees and issuance of licenses.
(h) Prescribing under what conditions a licensee may be deemed subject to revocation or suspension of his license.
(i) Requiring any applicant or licensee to waive any privilege with respect to any testimony at any hearing or meeting of the commission, except any privilege afforded by the Constitution of the United States or this state.
(j) Defining and limiting the area, games and devices permitted, and the method of operation of such games and devices, for the purposes of this chapter.
(k) Prescribing under what conditions the nonpayment of a gambling debt by a licensee shall be deemed grounds for revocation or suspension of his license.
(l) Governing the use and approval of gambling devices and equipment.
(m) Prescribing the qualifications of, and the conditions under which, attorneys, accountants and others are permitted to practice before the commission.
(n) Restricting access to confidential information obtained under this chapter and ensuring that the confidentiality of such information is maintained and protected.
(o) Prescribing the manner and procedure by which the executive director on behalf of the commission shall notify a county or a municipality wherein an applicant for a license desires to locate.
(p) Prescribing the manner and procedure for an objection to be filed with the commission and the executive director by a county or municipality wherein an applicant for a license desires to locate.
(3) Notwithstanding any other provision of law, each licensee shall be required to comply with the following regulations:
(a) No wagering shall be allowed on the outcome of any athletic event, nor on any matter to be determined during an athletic event, nor on the outcome of any event which does not take place on the premises.
(b) No wager may be placed by, or on behalf of, any individual or entity or group, not present on a licensed vessel or cruise vessel.
SECTION 19. Section 75-76-34, Mississippi Code of 1972, is brought forward as follows:
75-76-34. (1) The Mississippi Gaming Commission is authorized to regulate all schools or training institutions that teach or train gaming employees. Such schools shall only be located in counties where gaming is legal aboard a cruise vessel or vessel or in counties where cruise vessels were legally operating out of a port at the time of passage of the Mississippi Gaming Control Act pursuant to Section 19-3-79. No such school shall be located on publicly owned property, and no public school shall teach or train persons to be gaming employees. The gaming activities of schools or training institutions regulated by the commission shall be deemed to be legal under the laws of the State of Mississippi. Any person desiring to operate a school or training institution must file a license application with the executive director to be licensed by the commission.
(2) The commission may adopt regulations it deems necessary to regulate schools and training institutions. These regulations shall, without limiting the general powers of the commission, include the following:
(a) Prescribing the method and form of application which any applicant for a school or training institution must follow and complete before consideration of his application by the executive director or commission.
(b) Prescribing the information to be furnished by the applicant relating to his employees.
(c) Requiring fingerprinting of the applicant, employees and students of the school or institution or other methods of identification and the forwarding of all fingerprints taken pursuant to regulation of the Federal Bureau of Investigation.
(d) Requiring any applicant to pay all or part of the fees and costs of investigation of the applicant as may be determined by the commission.
(e) Prescribing the manner and method of collection and payment of fees and costs and issuance of licenses to schools or training institutions.
(f) Prescribing under what conditions a licensee authorized by this section may be deemed subject to revocation or suspension of his license.
(g) Defining the curriculum of the school or training institution, the games and devices permitted, the use of tokens only for instruction purposes, and the method of operation of games and devices.
(h) Requiring the applicant to submit its location of the school or training institution, which shall be at least four hundred (400) feet from any church, school, kindergarten or funeral home. However, within an area zoned commercial or business, the minimum distance shall not be less than one hundred (100) feet.
(i) Requiring that all employees and students of the school or training institution be at least twenty-one (21) years of age and be a resident of the State of Mississippi.
(j) Requiring all employees and students of the school or training institution to wear identification cards issued by the commission while on the premises of the school or training institution.
(k) Requiring the commission to investigate each applicant, employee and student and determine that the individual does not fall within any one (1) of the following categories:
(i) Is under indictment for, or has been convicted in any court of, a felony;
(ii) Is a fugitive from justice;
(iii) Is an unlawful user of any controlled substance, is addicted to any controlled substance or alcoholic beverage, or is an habitual drunkard;
(iv) Is a mental defective, has been committed to a mental institution, or has been voluntarily committed to a mental institution on more than one (1) occasion;
(v) Has been discharged from the Armed Forces under dishonorable conditions; or
(vi) Has been found at any time by the executive director or commission to have falsified any information.
SECTION 20. Section 75-76-35, Mississippi Code of 1972, is brought forward as follows:
75-76-35. (1) The Legislature hereby declares that the exclusion or ejection of certain persons from licensed gaming establishments is necessary to effectuate the policies of this chapter and to maintain effectively the strict regulation of licensed gaming.
(2) The commission may by regulation provide for the establishment of a list of persons who are to be excluded or ejected from any licensed gaming establishment. The list may include any person whose presence in the establishment is determined by the commission or the executive director to pose a threat to the interests of this state or to licensed gaming, or both.
(3) In making that determination, the commission and the executive director may consider any:
(a) Prior conviction of a crime which is a felony in this state or under the laws of the United States, a crime involving moral turpitude, or a violation of the gaming laws of any state;
(b) Violation or conspiracy to violate the provisions of this chapter relating to:
(i) The failure to disclose an interest in a gaming establishment for which the person must obtain a license; or
(ii) Willful evasion of fees or taxes;
(c) Notorious or unsavory reputation which would adversely affect public confidence and trust that the gaming industry is free from criminal or corruptive elements; or
(d) Written order of a governmental agency which authorizes the exclusion or ejection of the person from an establishment at which gaming is conducted.
(4) Race, color, creed, national origin or ancestry, or sex shall not be grounds for placing the name of a person upon the list.
SECTION 21. Section 75-76-37, Mississippi Code of 1972, is brought forward as follows:
75-76-37. (1) Whenever the name and description of any person is placed on a list, the commission shall serve notice of such fact to such person:
(a) By personal service; or
(b) By certified mail to the last known address of such person; or
(c) By publication daily for one (1) week in one of the principal newspapers published in the county where such person resides or Jackson, Mississippi, if notice cannot be served in person or by mail.
(2) Whenever the name and description of any person is placed on a list, the commission may notify all gaming licensees of such fact.
SECTION 22. Section 75-76-39, Mississippi Code of 1972, is brought forward as follows:
75-76-39. (1) Within thirty (30) days after service by mail or in person or sixty (60) days after the last publication, the person named may demand a hearing before the commission and show cause why he should have his name taken from such a list. Failure to demand a hearing within the time allotted in this section precludes the person from having an administrative hearing but in no way affects his right to petition for judicial review as provided in paragraph (b) of subsection (3) of this section.
(2) Upon receipt of a demand for hearing, the commission shall set a time and place for the hearing. This hearing must not be held later than thirty (30) days after receipt of the demand for the hearing, unless the time of the hearing is changed by agreement of the commission and the person demanding the hearing.
(3) If, upon completion of the hearing, the commission determines that:
(a) The regulation does not or should not apply to the person so listed, the commission shall notify all persons licensed of its determination.
(b) Placing the person on the exclusion or ejection list was proper, the commission shall make and enter in its minutes an order to that effect. This order is subject to review by any court of competent jurisdiction.
SECTION 23. Section 75-76-41, Mississippi Code of 1972, is brought forward as follows:
75-76-41. The commission may revoke, limit, condition, suspend or fine an individual licensee or licensed gaming establishment in accordance with the laws of this state and the regulations of the commission if that establishment or any individual licensee affiliated therewith knowingly fails to exclude or eject from the premises of the licensed establishment any person placed on the list of persons to be excluded or ejected.
SECTION 24. Section 75-76-43, Mississippi Code of 1972, is brought forward as follows:
75-76-43. Any person who has been placed on the list of persons to be excluded or ejected from any licensed gaming establishment is guilty of a misdemeanor if he thereafter enters the premises of a licensed gaming establishment without first having obtained a determination by the commission that he should not have been placed on the list of persons to be excluded or ejected.
SECTION 25. Section 75-76-45, Mississippi Code of 1972, is brought forward as follows:
75-76-45. The commission shall prescribe minimum procedures for adoption by each licensee to exercise effective control over the internal fiscal affairs of the licensee, which shall include, but are not limited to, provisions for:
(a) The safeguarding of assets and revenues, especially the recording of cash and evidences of indebtedness; and
(b) The provision of reliable records, accounts and reports of transactions, operations and events, including reports to the commission and the executive director.
SECTION 26. Section 75-76-47, Mississippi Code of 1972, is brought forward as follows:
75-76-47. The commission shall by regulation require periodic financial reports from each licensee, and:
(a) Specify standard forms for reporting financial condition, results of operations and other relevant financial information.
(b) Formulate a uniform code of accounts and accounting classifications to assure consistency, comparability and effective disclosure of financial information.
(c) Prescribe the intervals at which such information shall be furnished. For this purpose the commission may classify licensees by size of operation.
SECTION 27. Section 75-76-49, Mississippi Code of 1972, is brought forward as follows:
75-76-49. (1) The commission shall by regulation require audits of the financial statements of all licensees whose annual gross revenue is Three Million Dollars ($3,000,000.00) or more.
(2) The commission may require audits, compiled statements or reviews of the financial statements of licensees whose annual gross revenue is less than Three Million Dollars ($3,000,000.00).
(3) The audits, compilations and reviews provided for in subsections (1) and (2) must be made by independent accountants holding permits to practice public accounting in the State of Mississippi.
(4) Except as provided in subsection (5), for every audit required pursuant to this section:
(a) The independent accountants shall submit an audit report which must express an unqualified or qualified opinion or, if appropriate, disclaim an opinion on the statements taken as a whole in accordance with standards for the accounting profession established by rules and regulations of the Mississippi State Board of Public Accountancy, but the preparation of statement without audit does not constitute compliance.
(b) The examination and audit must disclose whether the accounts, records and control procedures maintained by the licensee are as required by the regulations promulgated by the commission.
(5) If the license of a licensee is terminated within three (3) months after the end of a period covered by an audit, the licensee may submit compiled statements in lieu of an additional audited statement for the licensee's final period of business.
(6) The licensee shall be responsible for the payment of costs or fees generated by any audit required by the commission. Failure to pay such costs and fees for such audit may result in the revocation of his license.
SECTION 28. Section 75-76-51, Mississippi Code of 1972, is brought forward as follows:
75-76-51. The commission shall adopt regulations which prescribe the manner in which winnings, compensation from games and gaming devices, and gross revenue must be computed and reported by the licensee.
SECTION 29. Section 75-76-53, Mississippi Code of 1972, is brought forward as follows:
75-76-53. (1) The commission may:
(a) Adopt regulations governing the sale or offering for sale of securities, by public or other offerings, or any affiliated company of a corporate licensee.
(b) Pursue any remedy or combination of remedies provided in this chapter for a violation of any regulation adopted pursuant to this section, but any such violation does not affect the validity of the securities issued.
(2) As used in this section, unless the context otherwise requires, "sale" means every contract of sale, contract to sell, disposition or transfer, whether or not for value. The term includes any exchange and any material change in the rights, preferences, privileges or restrictions of or on outstanding securities.
SECTION 30. Section 75-76-55, Mississippi Code of 1972, is brought forward as follows:
75-76-55. (1) It is unlawful for any person, either as owner, lessee or employee, whether for hire or not, either solely or in conjunction with others, without having first procured and thereafter maintaining in effect a state gaming license:
(a) To deal, operate, carry on, conduct, maintain or expose for play in the State of Mississippi any gambling game, including without limitation any gaming device, slot machine, race book, or sports pool;
(b) To provide or maintain any information service the primary purpose of which is to aid the placing or making of wagers on events of any kind; or
(c) To receive, directly or indirectly, any compensation or reward or any percentage or share of the money or property played, for keeping, running or carrying on any gambling game, including without limitation any slot machine, gaming device, race book or sports pool.
(2) It is unlawful for any person knowingly to permit any gambling game, including without limitation any slot machine, gaming device, race book or sports pool to be conducted, operated, dealt or carried on in any house or building or other premises owned by him, in whole or in part, by a person who is not licensed pursuant to this chapter or by his employee.
SECTION 31. Section 75-76-57, Mississippi Code of 1972, is brought forward as follows:
75-76-57. (1) Except as otherwise provided in subsections (2) and (3) of this section, it is unlawful for any person to:
(a) Lend, let, lease or otherwise deliver or furnish any equipment of any gambling game, including any slot machine, for any interest, percentage or share of the money or property played, under guise of any agreement whatever, without having first procured a state gaming license.
(b) Lend, let, lease or otherwise deliver or furnish, except by a bona fide sale or capital lease, any slot machine under guise of any agreement whereby any consideration is paid or is payable for the right to possess or use that slot machine, whether the consideration is measured by a percentage of the revenue derived from the machine or by a fixed fee or otherwise, without having first procured a state gaming license.
(c) Furnish services or property, real or personal, on the basis of a contract, lease or license, pursuant to which that person receives payments based on earnings or profits or otherwise from any gambling game without having first procured a state gaming license.
(2) The provisions of subsection (1) do not apply to any person:
(a) Whose payments are a fixed sum determined in advance on a bona fide basis for the furnishing of services or property.
(b) Who furnishes services or property under a bona fide rental agreement or security agreement for gaming equipment.
(c) That is a wholly owned subsidiary of:
(i) A corporation or limited partnership holding a state gaming license; or
(ii) A holding company or intermediary company, or publicly traded corporation, that has registered pursuant to this chapter and which has fully complied with the laws applicable to it.
(d) Who is licensed as a distributor and who rents or leases any equipment of any gambling game under a bona fide agreement where the payments are a fixed sum determined in advance and not determined as a percentage of the revenue derived from the equipment or slot machine.
Receipts or rentals or charges for real property, personal property or services do not lose their character as payments of a fixed sum or as bona fide because of provisions in a contract, lease or license for adjustments in charges, rentals or fees on account of changes in taxes or assessments, escalations in the cost-of-living index, expansions or improvement of facilities, or changes in services supplied. Receipts of rentals or charges based on percentage between a corporate licensee or a licensee who is a limited partnership and the entities enumerated in paragraph (c) are permitted under this subsection.
(3) The commission may, upon issuance of its approval or a finding of suitability, exempt a holding company from the licensing requirements of subsection (1).
(4) The executive director may require any person exempted by the provisions of subsection (2) or paragraph (b) of subsection (1) to provide such information as he may require to perform his investigative duties.
(5) The executive director may require a finding of suitability, and the commission may require the licensing, of any person who:
(a) Owns any interest in the premises of a licensed establishment or owns any interest in real property used by a licensed establishment whether he leases the property directly to the licensee or through an intermediary.
(b) Repairs, rebuilds or modifies any gaming device.
(c) Manufactures or distributes chips or gaming tokens for use in Mississippi.
(6) If the commission finds a person described in subsection (5) unsuitable, a licensee shall not enter into any contract or agreement with that person without the prior approval of the executive director. Any other agreement between the licensee and that person must be terminated upon receipt of notice of the action by the commission. Any agreement between a licensee and a person described in subsection (5) shall be deemed to include a provision for its termination without liability on the part of the licensee upon a finding by the commission that the person is unsuitable. Failure expressly to include that condition in the agreement is not a defense in any action brought pursuant to this section to terminate the agreement.
SECTION 32. Section 75-76-59, Mississippi Code of 1972, is brought forward as follows:
75-76-59. (1) Pursuant to Section 2 of that certain Act of the Congress of the United States entitled "An act to prohibit transportation of gambling devices in interstate and foreign commerce," approved January 2, 1951, being c. 1194, 64 Stat. 1134, and also designated as 15 USCS Sections 1171-1177, the State of Mississippi, acting by and through the duly elected and qualified members of its Legislature, does hereby in this section, and in accordance with and in compliance with the provisions of Section 2 of such Act of Congress, declare and proclaim that it is exempt from the provisions of Section 2 of that certain Act of the Congress of the United States entitled "An act to prohibit transportation of gambling devices in interstate and foreign commerce," approved January 2, 1951, being c. 1194, 64 Stat. 1134.
(2) All shipments of gambling devices, including slot machines, into this state, the registering, recording and labeling of which has been duly had by the manufacturer or dealer thereof in accordance with Sections 3 and 4 of that certain Act of the Congress of the United States entitled "An act to prohibit transportation of gambling devices in interstate and foreign commerce," approved January 2, 1951, being c. 1194, 64 Stat. 1134, and also designated as 15 USCS Sections 1171-1177, shall be deemed legal shipments thereof into this state.
SECTION 33. Section 75-76-61, Mississippi Code of 1972, is brought forward as follows:
75-76-61. (1) Except for persons associated with licensed corporations or limited partnerships and required to be licensed, each employee, agent, guardian, personal representative, lender or holder of indebtedness of a gaming licensee who, in the opinion of the commission, has the power to exercise a significant influence over the licensee's operation of a gaming establishment shall be required to apply for a license.
(2) A person required to be licensed pursuant to subsection (1) of this section shall apply for a license within thirty (30) days after the executive director requests that he do so.
(3) If an employee required to be licensed under subsection (1):
(a) Does not apply for a license within thirty (30) days after being requested to do so by the executive director, and the commission makes a finding of unsuitability for that reason, or
(b) Is denied a license, or
(c) Has a license revoked by the commission,
the licensee by whom he is employed shall terminate his employment in any capacity in which he is required to be licensed and shall not permit him to exercise a significant influence over the operation of the gaming establishment upon being notified by registered or certified mail of that action.
(4) A gaming licensee or an affiliate of the licensee shall not pay to a person whose employment has been terminated pursuant to subsection (3) any remuneration for any service performed in any capacity in which he is required to be licensed, except for amounts due for services rendered before the date of receipt of notice of the action by the commission. Any contract or agreement for personal services or for the conduct of any activity at the licensed gaming establishment between a gaming licensee or an affiliate of the licensee and a person terminated pursuant to subsection (3) is subject to termination. Every such agreement shall be deemed to include a provision for its termination without liability on the part of the licensee or registered holding company upon a finding by the commission that the person is unsuitable to be associated with a gaming enterprise. Failure expressly to include that condition in the agreement is not a defense in any action brought pursuant to this section to terminate the agreement.
(5) A gaming licensee or an affiliate of the licensee shall not, without the prior approval of the executive director, enter into any contract or agreement with a person who is found unsuitable or who is denied a license or whose license is revoked by the commission or with any business enterprise under the control of that person after the date of receipt of notice of the action by the commission. Every contract or agreement for personal services to a gaming licensee or an affiliate or for the conduct of any activity at a licensed gaming establishment shall be deemed to include a provision for its termination without liability on the part of the licensee or registered holding company upon a finding by the commission that the person is unsuitable to be associated with a gaming enterprise. Failure expressly to include such a condition in the agreement is not a defense in any action brought pursuant to this section to terminate the agreement.
(6) Without prior approval of the executive director a gaming licensee or an affiliate of the licensee shall not employ any person in a capacity for which he is required to be licensed if he has been found unsuitable, or has been denied a license, or has had his license revoked by the commission, after the date of receipt of notice of the action by the commission.
(7) As used in this section, "affiliate" means a person who, directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, a licensee.
SECTION 34. Section 75-76-63, Mississippi Code of 1972, is brought forward as follows:
75-76-63. (1) The executive director may require a finding of suitability, and the commission may require the licensing, of any person who furnishes services or property to a gaming licensee under any arrangement pursuant to which the person receives payments based on earnings, profits or receipts from gaming. The executive director may require any such person to comply with the requirements of this chapter and with the regulations of the commission. If the commission determines that any such person is unsuitable, the executive director may require the arrangement to be terminated.
(2) If the premises of a licensed gaming establishment are directly or indirectly owned or under the control of the licensee therein, or of any person controlling, controlled by, or under common control with the licensee, the executive director may require the application of any person for a determination of suitability to be associated with a gaming enterprise if the person:
(a) Does business on the premises of the licensed gaming establishment;
(b) Does business with the licensed gaming establishment as a junket representative or ticket purveyor; or
(c) Provides any goods or services to the licensed gaming establishment for a compensation which the executive director finds to be grossly disproportionate to the value of the goods or services.
(3) If the commission determines that the person is unsuitable to be associated with a gaming enterprise, the association must be terminated. Any agreement which entitles a business other than gaming to be conducted on the premises, or entitles a person to conduct business with the licensed gaming establishment as set forth in paragraph (b) or (c) of subsection (2) of this section, is subject to termination upon a finding of unsuitability of the person associated therewith. Every such agreement must be deemed to include a provision for its termination without liability on the part of the licensee upon a finding by the commission that the person associated therewith is unsuitable to be associated with a gaming enterprise. Failure expressly to include that condition in the agreement is not a defense in any action brought pursuant to this section to terminate the agreement.
(4) If the application is not presented to the executive director within thirty (30) days following demand or the unsuitable association is not terminated, the executive director may pursue any remedy or combination of remedies provided in this chapter.
SECTION 35. Section 75-76-65, Mississippi Code of 1972, is brought forward as follows:
75-76-65. (1) A person shall not receive any consideration, direct or indirect, for conducting a tournament or contest in which persons pay a fee for the privilege of participating and in which prizes are awarded to winners, on behalf of or in conjunction with a gaming licensee, unless he has registered with the executive director in the manner prescribed by the commission and supplies such information as the executive director requires or unless he is an officer or employee of the licensee.
(2) Any person who conducts a tournament or contest on behalf of or in conjunction with a gaming licensee may be required by the commission to be licensed by it as well as registered with the executive director. Any person so required must apply for a license within thirty (30) days after the decision of the commission requiring him to obtain a license.
(3) If any person required to be licensed pursuant to subsection (2) of this section:
(a) Does not apply for a license within thirty (30) days after the decision of the commission that he must be licensed, and the commission finds him unsuitable for that reason; or
(b) Is denied a license,
the gaming licensee with whom he is associated shall terminate that association upon notification from the commission by registered or certified mail of its action.
SECTION 36. Section 75-76-67, Mississippi Code of 1972, is brought forward as follows:
75-76-67. (1) Any person who the commission determines is qualified to receive a license or be found suitable under the provisions of this chapter, having due consideration for the proper protection of the health, safety, morals, good order and general welfare of the inhabitants of the State of Mississippi and the declared policy of this state, may be issued a state gaming license or found suitable. The burden of proving his qualification to receive any license or be found suitable is on the applicant.
(2) An application to receive a license or be found suitable shall not be granted unless the commission is satisfied that the applicant is:
(a) A person of good character, honesty and integrity;
(b) A person whose prior activities, criminal record, if any, reputation, habits and associations do not pose a threat to the public interest of this state or to the effective regulation and control of gaming, or create or enhance the dangers of unsuitable, unfair or illegal practices, methods and activities in the conduct of gaming or the carrying on of the business and financial arrangements incidental thereto; and
(c) In all other respects qualified to be licensed or found suitable consistent with the declared laws of the state.
(3) No person shall be granted a license or found suitable under the provisions of this chapter who has been convicted of a felony in any court of this state, another state, or the United States; and no person shall be granted a license or found suitable hereunder who has been convicted of a crime in any court of another state or the United States which, if committed in this state, would be a felony; and no person shall be granted a license or found suitable under the provisions of this chapter who has been convicted of a misdemeanor in any court of this state or of another state, when such conviction was for gambling, sale of alcoholic beverages to minors, prostitution, or procuring or inducing individuals to engage in prostitution.
(4) A license to operate a gaming establishment shall not be granted unless the applicant has satisfied the commission that:
(a) He has adequate business probity, competence and experience, in gaming or generally; and
(b) The proposed financing of the entire operation is:
(i) Adequate for the nature of the proposed operation; and
(ii) From a suitable source. Any lender or other source of money or credit which the commission finds does not meet the standards set forth in subsection (2) may be deemed unsuitable.
(5) An application to receive a license or be found suitable constitutes a request for a determination of the applicant's general character, integrity and ability to participate or engage in, or be associated with gaming. Any written or oral statement made in the course of an official proceeding of the commission or the executive director or any witness testifying under oath which is relevant to the purpose of the proceeding is absolutely privileged and does not impose liability for defamation or constitute a ground for recovery in any civil action.
(6) The commission may, in its discretion, grant a license to a corporation which has complied with the provisions of this chapter.
(7) The commission may, in its discretion, grant a license to a limited partnership which has complied with the provisions of this chapter.
(8) No limited partnership, except one whose sole limited partner is a publicly traded corporation which has registered with the commission, or business trust or organization or other association of a quasi-corporate character is eligible to receive or hold any license under this chapter unless all persons having any direct or indirect interest therein of any nature whatsoever, whether financial, administrative, policymaking or supervisory, are individually qualified to be licensed under the provisions of this chapter.
(9) The commission may, by regulation, limit the number of persons who may be financially interested and the nature of their interest in any corporation or other organization or association licensed under this chapter, and may establish such other qualifications of licenses as the commission, in its discretion, deems to be in the public interest and consistent with the declared policy of the state.
SECTION 37. Section 75-76-69, Mississippi Code of 1972, is brought forward as follows:
75-76-69. A person owning an interest in a gaming establishment who is licensed or has been found suitable by the commission does not have to requalify for a license or a finding of suitability whenever he makes his interest the subject matter of a revocable trust in which he retains the entire interest as the sole beneficiary. The settlor of such a trust must file a copy of the trust instrument or any amendment thereof with the executive director before the transfer of the interest becomes effective and before the effective date of any amendment.
SECTION 38. Section 75-76-71, Mississippi Code of 1972, is brought forward as follows:
75-76-71. (1) A person who has had his application for a gaming license denied or who has been found unsuitable by the commission:
(a) Is not entitled to profit from his investment in a:
(i) Corporation other than a publicly traded corporation as that term is defined in this chapter;
(ii) Partnership;
(iii) Limited partnership; or
(iv) Joint venture which has applied for or been granted a license.
(b) Shall not retain his interest in a corporation, partnership, limited partnership or joint venture beyond that period prescribed by the commission.
(c) Shall not accept more for his interest in a corporation, partnership, limited partnership or joint venture than he paid for it or the market value on the date of the denial of the license or the finding of unsuitability.
(2) The executive director may proceed pursuant to this chapter to enforce the provisions of subsection (1).
SECTION 39. Section 75-76-73, Mississippi Code of 1972, is brought forward as follows:
75-76-73. (1) Application for a gaming license or other commission action shall be made to the executive director on forms furnished by the executive director and in accordance with the regulations of the commission.
(2) The application for a license shall include:
(a) The name of the proposed licensee.
(b) The location of his place or places of business.
(c) The gambling games, gaming devices or slot machines to be operated.
(d) The names of all persons directly or indirectly interested in the business and the nature of such interest.
(e) Such other information and details as the commission or the executive director may require in order to discharge their duties properly.
(3) The executive director shall furnish to the applicant supplemental forms which the applicant shall complete and file with the application. Such supplemental forms shall require, but shall not be limited to, complete information and details with respect to the applicant's antecedents, habits, character, criminal record, business activities, financial affairs and business associates, covering at least a ten-year period immediately preceding the date of filing of the application.
SECTION 40. Section 75-76-75, Mississippi Code of 1972, is brought forward as follows:
75-76-75. (1) Provided that it files a complete application pursuant to this chapter and pays all application fees by January 1, 1991, any cruise vessel lawfully operating pursuant to Chapter 109, Title 27, Mississippi Code of 1972, on July 1, 1990, may continue to operate until the commission determines whether to approve or deny the application under the provisions of this chapter or regulations adopted by the commission.
(2) Within a reasonable time after filing of an application and such supplemental information as the commission or the executive director may require, the executive director shall commence the investigation of the applicant and shall conduct such proceedings in accordance with applicable regulations as the commission may deem necessary.
(3) If a person has applied for a position which cannot be held pending licensure or approval by the commission, the executive director shall use his best efforts to make a recommendation to the commission concerning the application not longer than nine (9) months after the application and supporting data are completed and filed with the executive director. If denial of the application is recommended, the executive director shall prepare and file with the commission a written report of reasons upon which the recommendation is based.
(4) A recommendation of denial of an application is without prejudice to a new and different application if made in conformity to regulations applicable to such situations.
SECTION 41. Section 75-76-77, Mississippi Code of 1972, is brought forward as follows:
75-76-77. (1) The executive director shall present his recommendation upon an application to the commission at the next meeting of the commission.
(2) The commission may, after considering the recommendation of the executive director, issue to the applicant named, as a natural person, and to the licensed gaming establishment, as a business entity, under the name or style therein designated, a state gaming license, or may deny the same. The commission may limit the license or place such conditions thereon as it may deem necessary in the public interest. The commission may, if it considers necessary, issue a probationary license. No state gaming license may be assigned either in whole or in part.
(3) After the issuance of the license, it shall continue in effect upon proper payment of the state license fees and any other fees, taxes and penalties, as required by law and the regulations of the commission, subject to the power of the commission to revoke, suspend, condition or limit licenses.
(4) The commission may further limit or place such conditions as it may deem necessary in the public interest upon any registration, finding of suitability or approval for which application has been made.
(5) After the executive director has made a recommendation for denial of an application, the commission, after considering the recommendation of the executive director, may:
(a) Deny the application;
(b) Remand the matter to the executive director for such further investigation and reconsideration as the commission may order; or
(c) By unanimous vote of the members present, grant the application for a license, registration, finding of suitability or approval.
(6) If the commission is not satisfied that an applicant recommended by the executive director is qualified to be licensed under this chapter, the commission may cause to be made such investigation into and conduct such hearings concerning the qualifications of the applicant in accordance with its regulations as it may deem necessary.
(7) If the commission desires further investigation be made or desires to conduct any hearings, it shall, within thirty (30) days after presentation of the recommendation of the executive director, so notify the applicant and set a date for hearing. Final action by the commission must be taken within one hundred twenty (120) days after the recommendation of the executive director has been presented to the commission. Failure of the commission to take action within one hundred twenty (120) days shall be deemed to constitute approval of the applicant by the commission, and a license must be issued forthwith upon compliance by the applicant.
(8) The commission has full and absolute power and authority to deny any application for any cause it deems reasonable. If an application is denied, the commission shall prepare and file its written decision upon which its order denying the application is based.
SECTION 42. Section 75-76-79, Mississippi Code of 1972, is brought forward as follows:
75-76-79. (1) (a) Except as otherwise provided in paragraphs (b) and (c) of this subsection, it is unlawful for any person, either as owner, lessee or employee, whether for hire or not, to operate, carry on, conduct or maintain any form of manufacture, selling or distribution of any gaming device for use or play in Mississippi or for distribution outside of Mississippi without first procuring and maintaining all required federal and state licenses.
(b) A lessor who specifically acquires equipment for a capital lease is not required to be licensed under this section.
(c) The holder of a state gaming license or the holding company of a corporate licensee may, within two (2) years after cessation of business or upon specific approval by the executive director, dispose of by sale in a manner approved by the executive director, any or all of its gaming devices, including slot machines, without a distributor's license. In cases of bankruptcy of a state gaming licensee or foreclosure of a lien by a bank or other person holding a security interest for which gaming devices are security in whole or in part for the lien, the executive director may authorize the disposition of the gaming devices without requiring a distributor's license.
(d) Any person whom the commission determines is a suitable person to receive a license under the provisions of this section may be issued a manufacturer's or distributor's license. The burden of proving his qualification to receive or hold a license under this section is at all times on the applicant or licensee.
(e) Every person who must be licensed pursuant to this section is subject to the provisions of Sections 75-76-199 through 75-76-265, unless exempted from those provisions by the commission.
(f) The commission may exempt, for any purpose, a manufacturer, seller or distributor from the provisions of Sections 75-76-199 through 75-76-265, if the commission determines that the exemption is consistent with the purposes of this chapter.
(g) As used in this section, "holding company" has the meaning ascribed to it in Section 75-76-199.
(2) If the commission determines that a manufacturer or distributor is unsuitable to receive or hold a license:
(a) No new gaming device or associated equipment manufactured by the manufacturer or distributed by the distributor may be approved;
(b) Any previously approved device or associated equipment manufactured by the manufacturer or distributed by the distributor is subject to revocation of approval if the reasons for the denial of the license also apply to that device or associated equipment;
(c) No new device or associated equipment manufactured by the manufacturer or distributed by the distributor may be sold, transferred or offered for use or play in Mississippi; and
(d) Any association or agreement between the manufacturer or distributor and a licensee must be terminated, unless otherwise provided by the commission. An agreement between such a manufacturer or distributor of gaming devices or associated equipment and a licensee shall be deemed to include a provision for its termination without liability on the part of the licensee upon a finding by the commission that the manufacturer is unsuitable to be associated with a gaming enterprise. Failure to include that condition in the agreement is not a defense in any action brought pursuant to this section to terminate the agreement.
(3) Failure of a licensee to terminate any association or agreement with a manufacturer or distributor of gaming devices or associated equipment after receiving notice of a determination of unsuitability, the denial of a license or failure to file a timely application for a license, is an unsuitable method of operation.
(4) There is hereby imposed and levied on each applicant for a manufacturer's, seller's or distributor's license under this section an annual license fee in the following amount:
(a) For the issuance or continuation of a manufacturer's license, One Thousand Dollars ($1,000.00).
(b) For the issuance or continuation of a seller's or distributor's license, Five Hundred Dollars ($500.00).
This fee is to be paid by the applicant to the State Tax Commission on or before the filing of the application for a manufacturer's, seller's or distributor's license by the applicant. Upon such payment the Chairman of the State Tax Commission shall certify to the executive director that such fee has been paid by the applicant.
(5) A manufacturer or distributor of associated equipment who sells, transfers or offers the associated equipment for use or play in Mississippi may be required by the executive director to file an application for a finding of suitability to be a manufacturer or distributor of associated equipment.
Any person who directly or indirectly involves himself in the sale, transfer or offering for use or play in Mississippi of associated equipment who is not otherwise required to be licensed as a manufacturer or distributor may be required by the executive director to file an application for a finding of suitability to be a manufacturer or distributor of associated equipment.
If an application for a finding of suitability is not submitted within thirty (30) days after demand by the executive director, he may pursue any remedy or combination of remedies provided in this chapter.
(6) The executive director and his employees may inspect every gaming device which is manufactured, sold or distributed:
(a) For use in this state, before the gaming device is put into play.
(b) In this state for use outside this state, before the gaming device is shipped out of this state.
The executive director may inspect every gaming device which is offered for play within this state by a licensee.
The executive director may inspect all associated equipment which is manufactured, sold or distributed for use in this state before the equipment is installed or used by a gaming licensee.
In addition to all other fees and charges imposed by this chapter, the executive director may determine an inspection fee with regard to each manufacturer, seller or distributor which must not exceed the actual cost of inspection and investigation. Upon such determination, the executive director shall certify to the Chairman of the State Tax Commission the amount of the inspection fee and the name and address of the applicant. Upon such certification the State Tax Commission shall proceed to assess and collect such inspection fee from the applicant.
SECTION 43. Section 75-76-81, Mississippi Code of 1972, is brought forward as follows:
75-76-81. The Chairman of the State Tax Commission shall assess and collect all taxes, fees, licenses, interest, penalties, damages and fines imposed by this chapter, and is hereby empowered to promulgate rules and regulations to administer such collections. Any records or other documents submitted by the licensee, or on his behalf, to the Mississippi Gaming Commission or executive director shall be made available to the Chairman of the State Tax Commission or his authorized agent upon written request.
The gross revenue fees levied by this chapter shall be due and payable on or before the twentieth day of the month next succeeding the month in which the fees accrue except as otherwise provided. The licensee shall make a return showing the gross revenue and compute the fee due for the period.
All administrative provisions of the sales tax law, and amendments thereto, including those which provide for collection and administrative appeals procedures, fix damages, penalties and interest for failure to comply with the provisions of said sales tax law, and all other requirements and duties imposed upon any licensee or taxpayer, shall apply to all persons liable for taxes, fees and all other monies imposed under the provisions of this chapter. However, fines or other assessments levied by the Mississippi Gaming Commission or the executive director will not be considered due and payable until thirty (30) days after final determination of such fines or assessments. The Chairman of the State Tax Commission shall exercise all power and authority and perform all duties with respect to licensees or taxpayers under this chapter as are provided in said sales tax law, except where there is conflict, then the provisions of this chapter shall control.
The determination and/or assessment of any taxes, fees, licenses, interest, penalties, damages and fines under this chapter by the Chairman of the State Tax Commission, the Executive Director of the Mississippi Gaming Commission or the Mississippi Gaming Commission shall be prima facie correct.
SECTION 44. Section 75-76-83, Mississippi Code of 1972, is brought forward as follows:
75-76-83. Any person aggrieved by the final order of the State Tax Commission regarding any action taken by the Chairman of the State Tax Commission and/or the State Tax Commission under the provisions of this chapter, including any person charged with any tax, fee, interest, penalties and damages imposed by this chapter and required to pay same, may appeal from such order to the Chancery Court of Hinds County, Mississippi, or the chancery court of his residence or principal place of business within this state. Such appeal shall be taken within thirty (30) days after the commission has entered the order appealed from. The appeal shall be tried de novo by the court as a preferred case. The chancery court, or Supreme Court of Mississippi on appeal to it, may, if it be of the opinion from all the evidence that the assessment is incorrect or in part invalid, or any other act or order of the State Tax Commission is invalid, determine the amount of tax due and/or decide all questions as to legality and enter such order or judgment as it deems proper.
SECTION 45. Section 75-76-85, Mississippi Code of 1972, is brought forward as follows:
75-76-85. (1) If satisfied that an applicant is eligible to receive a state gaming, manufacturing, selling or distributing license, and upon tender to the State Tax Commission of:
(a) All license fees and taxes as required by law and regulation of the Mississippi Gaming Commission; and
(b) A bond executed by the applicant as principal, and by a corporation qualified under the laws of this state as surety, payable to the State of Mississippi, and conditioned upon the payment of license fees, taxes, penalties, interest, fines and the faithful performance of all requirements imposed by law or regulation or the conditions of the license, the commission shall issue and deliver to the applicant a license entitling him to engage in the gaming, manufacturing, selling or distributing operation for which he is licensed. The executive director shall prepare and maintain a written record of the specific terms and conditions of any license issued and delivered and of any modification to the license. A duplicate of the record must be delivered to the applicant or licensee.
(2) The Chairman of the State Tax Commission shall fix the amount of the bond to be required under subsection (1). The bond so furnished may be applied to the payment of any unpaid liability of the licensee due to the State of Mississippi.
(3) In lieu of a bond an applicant may deposit with the commission a like amount of lawful money of the United States or any other form of security authorized by the commission. If security is provided in the form of a savings certificate, certificate of deposit or investment certificate, the certificate must state that the amount is unavailable for withdrawal except upon order of the commission.
(4) If the requirement for a bond is satisfied in:
(a) Cash, the commission shall deposit the money in the State Treasury for credit to the fund for bonds of state gaming licensees which is hereby created as a special fund.
(b) Any other authorized manner, the security must be placed without restriction at the disposal of the commission, but any income must inure to the benefit of the licensee.
SECTION 46. Section 75-76-87, Mississippi Code of 1972, is brought forward as follows:
75-76-87. (1) Applications, returns and information contained therein filed or furnished under this chapter shall be confidential, and except in accordance with proper judicial order or as otherwise authorized by this chapter, it shall be unlawful for members of the State Tax Commission, the Mississippi Gaming Commission or members of the Central Data Processing Authority, or any former employee thereof to divulge or make known in any manner the amount of income or any particulars set forth or disclosed on any application, report or return required.
The term "proper judicial order" as used in this chapter shall not include subpoenas or subpoenas duces tecum but shall include only those orders entered by a court of record in this state after furnishing notice and a hearing to the taxpayer and the State Tax Commission. The court shall not authorize the furnishing of such information unless it is satisfied that the information is needed to pursue pending litigation wherein the return itself is in issue, or the judge is satisfied that the need for furnishing the information outweighs the rights of the taxpayer to have such information secreted.
(2) Such information contained on the application, returns or reports from the licensee or the Mississippi Gaming Commission may be furnished to: (a) members and employees of the State Tax Commission and the income tax department thereof, for the purpose of auditing, comparing and correcting returns; (b) the Attorney General, or any other attorney representing the state in any action in respect to the amount of tax under the provisions of this chapter; (c) the Mississippi Gaming Commission; or (d) the revenue department of the other states or the federal government when said states of federal government grants a like comity to Mississippi.
(3) The State Auditor and the employees of his office shall have the right to examine only such tax returns as are necessary for auditing the State Tax Commission, or the Mississippi Gaming Commission and the same prohibitions against disclosure which apply to the State Tax Commission shall apply to the State Auditor and his office.
(4) Nothing in this section shall prohibit the Chairman of the State Tax Commission from making available information necessary to recover taxes, fees, fines or damages owing the state pursuant to the authority granted in Section 27-75-16.
SECTION 47. Section 75-76-89, Mississippi Code of 1972, is brought forward as follows:
75-76-89. (1) Except as otherwise provided in subsection (3) of this section, all licenses issued to the same person, including a wholly owned subsidiary of that person, for the operation of any game, including a sports pool or race book, which authorize gaming at the same establishment must be merged into a single gaming license. A gaming license may not be issued to any person if the issuance would result in more than one licensed operation at a single establishment, whether or not the profits or revenue from gaming are shared between the licensed operations.
(2) A person who has been issued a gaming license may establish a sports pool or race book on the premises of the establishment at which he conducts a gaming operation only after obtaining permission from the executive director.
SECTION 48. Section 75-76-91, Mississippi Code of 1972, is brought forward as follows:
75-76-91. (1) All licenses issued under the provisions of this chapter must be posted by the licensee and kept posted at all times in a conspicuous place in the establishment for which issued until replaced by a succeeding license.
(2) All licenses may be inspected by authorized state, county and municipal officials.
SECTION 49. Section 75-76-93, Mississippi Code of 1972, is brought forward as follows:
75-76-93. (1) Subject to the power of the commission to deny, revoke, suspend, condition or limit licenses, any state license in force may be continued by the commission upon proper payment of state license fees and any other fees, taxes and penalties as required by law and the regulations of the commission.
(2) All state license fees and fees required by law must be paid to the State Tax Commission on or before the dates respectively provided by law or regulation for each fee.
(3) Any person failing to pay any state license fee or fees due at the times respectively provided shall pay in addition to such license fee or fees, a penalty of not less than Fifty Dollars ($50.00) or twenty-five percent (25%) of the amount due, whichever is the greater, but not more than One Thousand Dollars ($1,000.00), if the fees are less than ten (10) days late and in no case in excess of Five Thousand Dollars ($5,000.00). The penalty must be collected as are other charges, license fees and penalties under this chapter.
(4) Any person who operates, carries on or exposes for play any gambling game, gaming device or slot machine or who manufactures, sells or distributes any gaming device, equipment, material or machine used in gaming, after his license fee becomes subject to payment, and thereafter fails to pay such fee as provided in this section, is guilty of a misdemeanor and, in addition to the penalties provided by law, is liable to the State of Mississippi for all license fees, taxes and penalties which would have been due for continuation of his license.
(5) If any licensee or other person fails to pay his license fee as provided in this section, the commission may order the immediate closure of all his gaming activity until all necessary fees, interest and penalties have been paid.
SECTION 50. Section 75-76-95, Mississippi Code of 1972, is brought forward as follows:
75-76-95. (1) Every licensee shall at all times maintain on file with the executive director a current report, verified by the affidavit of the person or an officer of a corporation and every stockholder thereof, to whom the license is issued, which shall set forth such information as may be required by the regulations of the commission.
(2) With respect to each licensee, the commission shall carefully review, not less frequently than once every three (3) years, the information in the current report required under subsection (1) to determine if there has been any substantial change in the information provided in the application for the initial license.
SECTION 51. Section 75-76-97, Mississippi Code of 1972, is brought forward as follows:
75-76-97. It is unlawful for any person to sell, purchase, lease, hypothecate, borrow or loan money, or create a voting trust agreement or any other agreement of any sort to or with any licensee in connection with any gaming operation licensed under this chapter, or with respect to any portion of such gaming operation, except in accordance with the regulations of the commission.
SECTION 52. Section 75-76-99, Mississippi Code of 1972, is brought forward as follows:
75-76-99. (1) Any person who operates or maintains in this state any gaming device of a specific model, or which includes a significant modification, which the executive director has not approved for testing or for operation, is subject to disciplinary action by the executive director or the commission.
(2) The executive director shall maintain a list of approved gaming devices.
(3) The commission may adopt regulations relating to gaming devices and their significant modification.
SECTION 53. Section 75-76-101, Mississippi Code of 1972, is brought forward as follows:
75-76-101. (1) All gaming must be conducted with chips, tokens or other instrumentalities approved by the executive director or with the legal tender of the United States.
(2) No licensee shall permit participation by a person in a game conducted in the licensed gaming establishment if such person is not physically present in the licensed gaming establishment during the period of time when such game is being conducted, and all games and the participation of patrons therein shall be entirely located and conducted on the licensed premises.
SECTION 54. Section 75-76-103, Mississippi Code of 1972, is brought forward as follows:
75-76-103. (1) The executive director shall make appropriate investigations:
(a) To determine whether there has been any violation of this chapter or of any regulations adopted thereunder.
(b) To determine any facts, conditions, practices or matters which it may deem necessary or proper to aid in the enforcement of any such law or regulation.
(c) To aid in adopting regulations.
(d) To secure information as a basis for recommending legislation relating to this chapter.
(2) If after any investigation the executive director is satisfied that a license, registration, finding of suitability, or prior approval by the commission of any transaction for which approval was required or permitted under the provisions of this chapter should be limited, conditioned, suspended or revoked, he shall initiate a hearing by filing a complaint with the commission and transmit therewith a summary of evidence in his possession bearing on the matter and the transcript of testimony at any investigative hearing conducted by or on behalf of the executive director to the licensee.
(3) Upon receipt of the complaint of the executive director, the commission shall review all matter presented in support thereof and shall appoint a hearing examiner to conduct further proceedings.
(4) After such proceedings as may be required by this chapter the hearing examiner may recommend that the commission take any or all of the following actions:
(a) Limit, condition, suspend or revoke the license of any licensed gaming establishment or the individual license of any licensee without affecting the license of the establishment;
(b) Limit, condition, suspend or revoke any registration, finding of suitability, or prior approval given or granted to any applicant by the commission;
(c) Order a licensed gaming establishment to keep an individual licensee from the premises of the licensed gaming establishment or not to pay the licensee any remuneration for services or any profits, income or accruals on his investment in the licensed gaming establishment; and
(d) Fine each person or entity or both, who was licensed, registered or found suitable or who previously obtained approval for any act or transaction for which commission approval was required or permitted, not more than One Hundred Thousand Dollars ($100,000.00) for each separate violation of the provisions of this chapter or of the regulations of the commission which is the subject of an initial complaint and not more than Two Hundred Fifty Thousand Dollars ($250,000.00) for each separate violation of the provisions of this chapter or of the regulations of the commission which is the subject of any subsequent complaint.
(5) The hearing examiner shall prepare a written decision containing his recommendation to the commission and shall serve it on all parties. Any party that disagrees with the hearing examiner's recommendation may ask the commission to review the recommendation within ten (10) days of service of the recommendation. The commission may hold a hearing to consider the recommendation whether there has been a request to review the recommendation or not.
(6) If the commission decides to review the recommendation, it shall give notice of that fact to all parties within thirty (30) days of the recommendation and shall schedule a hearing to review the recommendation. The commission's review shall be de novo but shall be based upon the evidence presented before the hearing examiner. The commission may remand the case to the hearing examiner for the presentation of additional evidence upon a showing of good cause why the evidence could not have been presented at the previous hearing.
(7) If the commission decides not to review the recommendation within thirty (30) days, the recommendation becomes the final order of the commission.
(8) If the commission limits, conditions, suspends or revokes any license or imposes a fine, or limits, conditions, suspends or revokes any registration, finding of suitability, or prior approval, it shall issue its written order therefor after causing to be prepared and filed the hearing examiner's written decision upon which the order is based.
(9) Any such limitation, condition, revocation, suspension or fine so made is effective until reversed upon judicial review, except that the commission may stay its order pending a rehearing or judicial review upon such terms and conditions as it deems proper.
(10) Judicial review of any such order or decision of the commission may be had in accordance with the provisions of this chapter.
(11) A license or finding of suitability for any individual is automatically revoked if such person is convicted of a felony in any court of this state, another state, or the United States or if such person is convicted of a crime in any court of another state or the United States which, if committed in this state, would be a felony. Any appeal from such conviction shall not act as a supersedeas to the revocation required by this subsection.
SECTION 55. Section 75-76-105, Mississippi Code of 1972, is brought forward as follows:
75-76-105. The commission may issue an emergency order for suspension, limitation or conditioning of a license, registration, or finding of suitability or may issue an emergency order requiring a licensed gaming establishment to keep an individual licensee from the premises of the licensed gaming establishment or not to pay such licensee any remuneration for services or any profits, income or accruals on his investment in the licensed gaming establishment in the following manner:
(a) An emergency order may be issued only when the commission believes that:
(i) Any person has willfully failed to report, pay or truthfully account for and pay over any license fee or tax imposed by the provisions of this chapter or willfully attempted in any manner to evade or defeat any such license fee, tax or payment thereof;
(ii) Any person has cheated at any gambling game;
(iii) There has been a violation of subsection (1) of Section 75-76-57;
(iv) Such action is necessary for the immediate preservation of the public peace, health, safety, morals, good order or general welfare.
(b) The emergency order must set forth the grounds upon which it is issued, including a statement of facts constituting the alleged emergency necessitating such action.
(c) An emergency order may be issued only with the approval of and upon signature by not less than two (2) members of the commission.
(d) The emergency order is effective immediately upon issuance and service upon the licensee or resident agent of the licensee or, in cases involving registration or findings of suitability, upon issuance and service upon the person or entity involved or resident agent of the entity involved. The emergency order may suspend, limit, condition or take other action in relation to the license of one or more persons in an operation without affecting other individual licensees or the licensed gaming establishment. The emergency order remains effective until further order of the commission or final disposition of the case.
(e) Within five (5) days after issuance of an emergency order, the executive director shall cause a complaint to be filed and served upon the person or entity involved. Thereafter, the person or entity against whom the emergency order has been issued and served is entitled to a hearing before the commission and to judicial review of the decision and order of the commission thereon.
SECTION 56. Section 75-76-107, Mississippi Code of 1972, is brought forward as follows:
75-76-107. (1) The complaint referred to in this chapter must be a written statement of charges which must set forth in ordinary and concise language the acts or omissions with which the respondent is charged. It must specify the statutes and regulations which the respondent is alleged to have violated but shall not consist merely of charges raised in the language of the statutes or regulations.
(2) Upon the filing of the complaint, the executive director shall serve a copy of the complaint upon the respondent either personally or by registered or certified mail at his address on file with the executive director.
(3) Except as provided in subsection (4) of this section, the respondent must answer within twenty (20) days after the service of the complaint. In his answer the respondent:
(a) Must state in short and plain terms his defenses to each claim asserted.
(b) Must admit or deny the facts alleged in the complaint.
(c) Must state with respect to which allegations he is without such knowledge or information as to form a belief concerning their truth. Such allegations shall be deemed denied.
(d) Must affirmatively set forth any matter which constitutes an avoidance or affirmative defense.
(e) May demand a hearing. Failure to demand a hearing constitutes a waiver of the right to a hearing and to judicial review of any decision or order of the commission, but the commission may order a hearing even if the respondent so waives his right.
(4) Failure to answer or to appear at the hearing constitutes an admission by the respondent of all facts alleged in the complaint. The commission may take action based on such an admission and on other evidence without further notice to the respondent. If the commission takes action based on such an admission, it shall include in the record which evidence was the basis for the action.
(5) The commission shall determine the time and place of the hearing as soon as is reasonably practical after receiving the respondent's answer. The executive director shall deliver or send by registered or certified mail a notice of hearing to all parties at least ten (10) days before the hearing.
SECTION 57. Section 75-75-109, Mississippi Code of 1972, is brought forward as follows:
75-75-109. The commission may appoint and remove at pleasure, such number of inspectors of athletics as in its judgment is necessary to aid in the proper discharge of its duties. Compensation may be paid an inspector as the commission may determine, but he shall be paid, when ordered to attend a match or exhibition, his actual traveling expenses in the same way and manner as expenses of members of the commission are paid. It shall be the duty of the commission, either by one of its members or by a duly appointed inspector, to attend every boxing, wrestling or sparring match or exhibition held in the State of Mississippi. The commission may appoint and remove at pleasure, a secretary to the commission, who shall perform such duties as the commission may prescribe, and who shall keep a full, complete and up-to-date record of all proceedings of said commission, including all licenses and all sums collected, and make a report thereof to the State Auditor annually, on or before the fifteenth day of January in each year.
SECTION 58. Section 75-76-111, Mississippi Code of 1972, is brought forward as follows:
75-76-111. (1) At all hearings before a hearing examiner other than investigative hearings:
(a) Oral evidence may be taken only upon oath or affirmation administered by the hearing examiner.
(b) Every party has the right to:
(i) Call and examine witnesses;
(ii) Introduce exhibits relevant to the issues of the case, including the transcript of testimony at any investigative hearing conducted by or on behalf of the commission or the executive director;
(iii) Cross-examine opposing witnesses on any matters relevant to the issues of the case, even though the matter was not covered in a direct examination;
(iv) Impeach any witness regardless of which party first called him to testify; and
(v) Offer rebuttal evidence.
(c) If the respondent does not testify in his own behalf, he may be called and examined as if under cross-examination.
(d) The hearing need not be conducted according to technical rules relating to evidence and witnesses. Any relevant evidence may be admitted and is sufficient in itself to support a finding if it is the sort of evidence on which responsible persons are accustomed to rely in the conduct of serious affairs, regardless of the existence of any common law or statutory rule which might make improper the admission of such evidence over objection in a civil action.
(e) The parties or their counsel may by written stipulation agree that certain specified evidence may be admitted even though such evidence might otherwise be subject to objection.
(2) The hearing examiner may take official notice of any generally accepted information or technical or scientific matter within the field of gaming and of any other fact which may be judicially noticed by the courts of this state. The parties must be informed of any information, matters or facts so noticed and must be given a reasonable opportunity, on request, to refute such information, matters or facts by evidence or by written or oral presentation of authorities, the manner of such refutation to be determined by the commission.
(3) Affidavits may be received in evidence at any hearing in accordance with the following:
(a) The party wishing to use an affidavit must, not less than ten (10) days before the day set for hearing, serve upon the opposing party or counsel, either personally or by registered or certified mail, a copy of the affidavit which he proposes to introduce in evidence together with a notice as provided in paragraph (c) of this subsection.
(b) Unless the opposing party, within seven (7) days after such service, mails or delivers to the proponent a request to cross-examine the affiant, his right to cross-examine the affiant is waived, and the affidavit, if introduced in evidence, must be given the same effect as if the affiant had testified orally. If an opportunity to cross-examine an affiant is not afforded after request therefor is made in accordance with this paragraph, the affidavit may be introduced in evidence but must be given only the same effect as other hearsay evidence.
(c) The notice referred to in paragraph (a) must be substantially in the following form:
The accompanying affidavit of (here insert name of affiant) will be introduced as evidence at the hearing set for the ________ day of ________, 2________. (Here insert name of affiant) will not be called to testify orally, and you will not be entitled to question him unless you notify the undersigned that you wish to cross-examine him. To be effective your request must be mailed or delivered to the undersigned on or before seven (7) days from the date this notice and the enclosed affidavit are served upon you. ______________________ ______________________
(Party or Counsel) Address
SECTION 59. Section 75-76-113, Mississippi Code of 1972, is brought forward as follows:
75-76-113. The proceedings at the hearing must be reported either stenographically or by a phonographic reporter.
SECTION 60. Section 75-76-115, Mississippi Code of 1972, is brought forward as follows:
75-76-115. The hearing examiner or the commission may permit the filing of amended or supplemental pleadings and shall notify all parties thereof and provide a reasonable opportunity for objections thereto.
SECTION 61. Section 75-76-117, Mississippi Code of 1972, is brought forward as follows:
75-76-117. If any person in proceedings before the hearing examiner or the commission disobeys or resists any lawful order, or refuses to respond to a subpoena, or refuses to take the oath or affirmation as a witness, or thereafter refuses to be examined, or is guilty of misconduct during the hearing or so near the place thereof as to obstruct the proceeding, the commission may certify the facts to the circuit court in and for the county where the proceedings are held. The court shall thereupon issue an order directing the person to appear before the court and show cause why he should not be punished as for contempt. The court order and a copy of the statement of the commission must be served on the person cited to appear. Thereafter the court has jurisdiction of the matter, and the same proceedings must be had, the same penalties may be imposed and the person charged may purge himself of the contempt in the same way as in the case of a person who has committed a contempt in the trial of a civil action before a circuit court.
SECTION 62. Section 75-76-119, Mississippi Code of 1972, is brought forward as follows:
75-76-119. (1) After the hearing of a contested matter, the hearing examiner shall render a written decision on the merits which must contain findings of fact, a determination of the issues presented, and recommendation regarding the penalty to be imposed, if any. Copies of the decision and recommendation must be served on the parties personally or sent to them by registered or certified mail.
(2) The commission may, upon motion made within ten (10) days after service of a hearing examiner's decision and recommendation, or upon its own motion within thirty (30) days of the date of the decision and recommendation, order a hearing before the commission upon such terms and conditions as it may deem just and proper to review the decision and recommendation. After hearing, the commission may reverse, modify or affirm the hearing examiner's decision. If the commission decides not to review the hearing examiner's decision and recommendation within thirty (30) days of the hearing examiner's decision, that decision shall become the final order of the commission.
SECTION 63. Section 75-76-121, Mississippi Code of 1972, is brought forward as follows:
75-76-121. (1) Any person aggrieved by a final decision or order of the commission may obtain a judicial review thereof in the circuit court of the county in which the petitioner resides or has his or its principal place of business.
(2) The judicial review must be instituted by filing a petition within twenty (20) days after the effective date of the final decision or order. A petition may not be filed while a petition for rehearing or a rehearing is pending before the commission. The petition must set forth the order or decision appealed from and the grounds or reasons why petitioner contends a reversal or modification should be ordered.
(3) Copies of the petition must be served upon the executive director and all other parties of record, or their counsel of record, either personally or by certified mail.
(4) The court, upon a proper showing, may permit other interested persons to intervene as parties to the appeal or as friends of the court.
(5) The filing of the petition does not stay enforcement of the decision or order of the commission, but the commission itself may grant a stay upon such terms and conditions as it deems proper.
SECTION 64. Section 75-76-123, Mississippi Code of 1972, is brought forward as follows:
75-76-123. (1) Upon written request of petitioner and upon payment of such reasonable costs and fees as the commission may prescribe, the complete record on review, or such parts thereof as are designated by the petitioner, must be prepared by the commission.
(2) The complete record on review must include copies of:
(a) All pleadings in the case;
(b) All notices and interim orders issued by the hearing examiner or the commission in connection with the case;
(c) All stipulations;
(d) The decision and order appealed from;
(e) A transcript of all testimony, evidence and proceedings at the hearing;
(f) The exhibits admitted or rejected; and
(g) Any other papers in the case.
The record on review may be shortened by stipulation of all parties to the review proceedings.
(3) The record on review must be filed with the reviewing court within thirty (30) days after service of the petition for review, but the court may allow the commission additional time to prepare and transmit the record on review.
SECTION 65. Section 75-76-125, Mississippi Code of 1972, is brought forward as follows:
75-76-125. (1) The reviewing court may, upon motion therefor, order that additional evidence in the case be taken by the commission upon such terms and conditions as the court may deem just and proper. The motion must not be granted except upon a showing that the additional evidence is material and necessary and that sufficient reason existed for failure to present the evidence before the hearing examiner or the commission. The motion must be supported by an affidavit of the moving party or his counsel showing with particularity the materiality and necessity of the additional evidence and the reason why it was not introduced in the administrative hearing. Rebuttal evidence to the additional evidence must be permitted. In cases in which additional evidence is presented, the commission may modify its decisions and orders as the additional evidence may warrant and shall file with the reviewing court a transcript of the additional evidence together with any modifications of the decision and order, all of which become a part of the record on review.
(2) The review must be conducted by the court sitting without a jury, and must not be a trial de novo but is confined to the record on review.
(3) The reviewing court may affirm the decision and order of the commission, or it may remand the case for further proceedings or reverse the decision if the substantial rights of the petitioner have been prejudiced because the decision is:
(a) In violation of constitutional provisions;
(b) In excess of the statutory authority or jurisdiction of the commission;
(c) Made upon unlawful procedure;
(d) Unsupported by any evidence; or
(e) Arbitrary or capricious or otherwise not in accordance with law.
SECTION 66. Section 75-76-127, Mississippi Code of 1972, is brought forward as follows:
75-76-127. (1) Any party aggrieved by the final decision in the circuit court after a review of the decision and order of the commission may appeal to the Supreme Court in the manner and within the time provided by law for appeals in civil cases. The Supreme Court shall follow the same procedure thereafter as in appeals in civil actions and may affirm, reverse or modify the decision as the record and law warrant.
(2) The judicial review by the circuit and Supreme Courts afforded in this chapter is the exclusive method of review of the commission's actions, decisions and orders in disciplinary hearings. Judicial review is not available for actions, decisions and orders of the commission relating to the denial of a license or to limited or conditional licenses. Extraordinary common law writs or equitable proceedings are available except where statutory judicial review is made exclusive or is precluded or where the use of those writs or proceedings is precluded by specific statute.
SECTION 67. Section 75-76-129, Mississippi Code of 1972, is brought forward as follows:
[Through June 30, 2022, this section shall read as follows:]
75-76-129. On or before the last day of each month all taxes, fees, interest, penalties, damages, fines or other monies collected by the State Tax Commission during that month under the provisions of this chapter, with the exception of (a) the local government fees imposed under Section 75-76-195, and (b) an amount equal to Three Million Dollars ($3,000,000.00) of the revenue collected pursuant to the fee imposed under Section 75-76-177(1)(c), or an amount equal to twenty-five percent (25%) of the revenue collected pursuant to the fee imposed under Section 75-76-177(1)(c), whichever is the greater amount, shall be paid by the State Tax Commission to the State Treasurer to be deposited in the State General Fund. The local government fees shall be distributed by the State Tax Commission pursuant to Section 75-76-197. An amount equal to Three Million Dollars ($3,000,000.00) of the revenue collected during that month pursuant to the fee imposed under Section 75-76-177(1)(c) shall be deposited by the State Tax Commission into the bond sinking fund created in Section 65-39-3. The revenue collected during that month pursuant to the fee imposed under Section 75-76-177(1)(c) that is in excess of Three Million Dollars ($3,000,000.00), but is less than twenty-five percent (25%) of the amount of revenue collected during that month, shall be deposited into the State Highway Fund to be used exclusively for the reconstruction and maintenance of highways of the State of Mississippi.
[From and after July 1, 2022, this section shall read as follows:]
75-76-129. On or before the last day of each month, all taxes, fees, interest, penalties, damages, fines or other monies collected by the State Tax Commission during that month under the provisions of this chapter, with the exception of the local government fees imposed under Section 75-76-195, shall be paid by the State Tax Commission to the State Treasurer to be deposited in the State General Fund. The local government fees shall be distributed by the State Tax Commission pursuant to Section 75-76-197.
SECTION 68. Section 75-76-131, Mississippi Code of 1972, is brought forward as follows:
75-76-131. (1) The executive director shall:
(a) Ascertain and keep himself informed of the identity, prior activities and present location of all gaming employees in the State of Mississippi; and
(b) Maintain confidential records of such information.
(2) No person may be employed as a gaming employee unless he is the holder of a work permit issued by the commission.
(3) A work permit issued to a gaming employee must have clearly imprinted thereon a statement that it is valid for gaming purposes only.
(4) Application for a work permit is to be made to the executive director and may be granted or denied for any cause deemed reasonable by the commission. Whenever the executive director denies such an application, he shall include in the notice of the denial a statement of the facts upon which he relied in denying the application.
(5) Any person whose application for a work permit has been denied by the executive director may, not later than sixty (60) days after receiving notice of the denial or objection, apply to the commission for a hearing before a hearing examiner. A failure of a person whose application has been denied to apply for a hearing within sixty (60) days or his failure to appear at a hearing conducted pursuant to this section shall be deemed to be an admission that the denial or objection is well founded and precludes administrative or judicial review. At the hearing, the hearing examiner appointed by the commission shall take any testimony deemed necessary. After the hearing the hearing examiner shall within thirty (30) days after the date of the hearing announce his decision sustaining or reversing the denial of the work permit or the objection to the issuance of a work permit. The executive director may refuse to issue a work permit if the applicant has:
(a) Failed to disclose, misstated or otherwise attempted to mislead the commission with respect to any material fact contained in the application for the issuance or renewal of a work permit;
(b) Knowingly failed to comply with the provisions of this chapter or the regulations of the commission at a place of previous employment;
(c) Committed, attempted or conspired to commit any crime of moral turpitude, embezzlement or larceny or any violation of any law pertaining to gaming, or any crime which is inimical to the declared policy of this state concerning gaming;
(d) Been identified in the published reports of any federal or state legislative or executive body as being a member or associate of organized crime, or as being of notorious and unsavory reputation;
(e) Been placed and remains in the constructive custody of any federal, state or municipal law enforcement authority;
(f) Had a work permit revoked or committed any act which is a ground for the revocation of a work permit or would have been a ground for revoking his work permit if he had then held a work permit; or
(g) For any other reasonable cause.
The executive director shall refuse to issue a work permit if the applicant has committed, attempted or conspired to commit a crime which is a felony in this state or an offense in another state or jurisdiction which would be a felony if committed in this state.
(6) Any applicant aggrieved by the decision of the hearing examiner may, within fifteen (15) days after the announcement of the decision, apply in writing to the commission for review of the decision. Review is limited to the record of the proceedings before the hearing examiner. The commission may sustain or reverse the hearing examiner's decision. The commission may decline to review the hearing examiner's decision, in which case the hearing examiner's decision becomes the final decision of the commission. The decision of the commission is subject to judicial review.
(7) All records acquired or compiled by the commission relating to any application made pursuant to this section and all lists of persons to whom work permits have been issued or denied and all records of the names or identity of persons engaged in the gaming industry in this state are confidential and must not be disclosed except in the proper administration of this chapter or to an authorized law enforcement agency. Any record of the commission which shows that the applicant has been convicted of a crime in another state must show whether the crime was a misdemeanor, gross misdemeanor, felony or other class of crime as classified by the state in which the crime was committed. In a disclosure of the conviction, reference to the classification of the crime must be based on the classification in the state where it was committed.
(8) A work permit expires unless renewed within ten (10) days after a change of place of employment or if the holder thereof is not employed as a gaming employee within the jurisdiction of the issuing authority for more than ninety (90) days.
(9) Notice of any objection to or denial of a work permit by the executive director as provided pursuant to this section is sufficient if it is mailed to the applicant's last known address as indicated on the application for a work permit. The date of mailing may be proven by a certificate signed by the executive director or his designee that specifies the time the notice was mailed. The notice is presumed to have been received by the applicant five (5) days after it is deposited with the United States Postal Service with the postage thereon prepaid.
SECTION 69. Section 75-76-133, Mississippi Code of 1972, is brought forward as follows:
75-76-133. (1) Any communication or document of an applicant or licensee which is required by:
(a) Law or the regulations of the commission; or
(b) A subpoena issued by the commission to be made or transmitted to the commission or the executive director or his employees, is absolutely privileged and does not impose liability for defamation or constitute a ground for recovery in any civil action.
(2) If such a document or communication contains any information which is privileged, that privilege is not waived or lost because the document or communication is disclosed to the commission or the executive director or his employees.
(3) Notwithstanding the powers granted to the commission and the executive director by this chapter:
(a) The commission, the executive director and his employees shall not release or disclose any privileged information, documents or communications provided by an applicant without the prior written consent of the applicant or licensee or pursuant to a lawful court order after timely notice of the proceedings has been given to the applicant or licensee.
(b) The commission and the executive director shall maintain all privileged information, documents and communications in a secure place accessible only to members of the commission and the executive director and his employees.
(c) The commission shall adopt procedures and regulations to protect the privileged nature of information, documents and communications provided by an applicant or licensee.
SECTION 70. Section 75-76-135, Mississippi Code of 1972, is brought forward as follows:
75-76-135. (1) The commission may issue an order summarily suspending a person's work permit upon a finding that the suspension is necessary for the immediate preservation of the public peace, health, safety, morals, good order or general welfare. The order becomes effective when served upon the permit holder.
(2) The order of summary suspension must state the facts upon which the finding of necessity for the suspension is based. For purposes of this section, the order shall be deemed a complaint.
(3) An order of summary suspension must be signed by at least two (2) members of the commission.
(4) The person whose work permit is summarily suspended:
(a) Has a right to a hearing on the order. The commission shall schedule a hearing within five (5) days after receipt of the person's notice of defense.
(b) Must file a notice of defense within thirty (30) days after the effective date of the emergency order. Failure to timely file this notice waives his rights to a hearing before the commission and to judicial review of the final decision.
(5) All affirmative defenses must be specifically stated in the notice of defense, and unless an objection is stated to the form or manner of the order, all objections to the form of the complaint shall be deemed waived.
(6) Except as otherwise provided in this section, the procedures for a disciplinary action in Sections 75-76-103 through 75-76-119, inclusive, must be followed.
SECTION 71. Section 75-76-137, Mississippi Code of 1972, is brought forward as follows:
75-76-137. (1) If any gaming employee is convicted of any violation of this chapter or if in investigating an alleged violation of this chapter by any licensee the executive director or the commission finds that a gaming employee employed by the licensee has been guilty of cheating, the commission shall, after a hearing as provided in Sections 75-76-103 through 75-76-119, inclusive, revoke the employee's work permit.
(2) The commission may revoke a work permit if it finds after a hearing as provided in Sections 75-76-103 through 75-76-119, inclusive, that the gaming employee has failed to disclose, misstated or otherwise misled the commission with respect to any fact contained within any application for a work permit, or subsequent to being issued a work permit:
(a) Committed, attempted or conspired to do any of the acts prohibited by this chapter;
(b) Knowingly possessed or permitted to remain in or upon any licensed premises any cards, dice, mechanical device or any other cheating device whatever the use of which is prohibited by statute or ordinance;
(c) Concealed or refused to disclose any material fact in any investigation by the executive director or the commission;
(d) Committed, attempted or conspired to commit larceny or embezzlement against a gaming licensee or upon the premises of a licensed gaming establishment;
(e) Been convicted in any jurisdiction other than Mississippi of any offense involving or relating to gambling;
(f) Accepted employment without prior commission approval in a position for which he could be required to be licensed under this chapter after having been denied a license for a reason involving personal unsuitability or after failing to apply for licensing when requested to do so by the commission or the executive director;
(g) Been refused the issuance of any license, permit or approval to engage in or be involved with gaming in any jurisdiction other than Mississippi, or had any such license, permit or approval revoked or suspended;
(h) Been prohibited under color of governmental authority from being present upon the premises of any gaming establishment for any reason relating to improper gambling activities or any illegal act;
(i) Contumaciously defied any legislative investigative committee or other officially constituted bodies acting on behalf of the United States or any state, county or municipality which seeks to investigate crimes relating to gaming, corruption of public officials, or any organized criminal activities; or
(j) Been convicted of any felony or misdemeanor, other than one constituting a violation of this chapter.
(3) A work permit shall not be issued to a person whose work permit has previously been revoked pursuant to this section or to whom the issuance or renewal of a work permit has been denied, except with the unanimous approval of the commission members.
(4) A gaming employee whose work permit has been revoked pursuant to this section is entitled to judicial review of the commission's action in the manner prescribed by Sections 75-76-121 through 75-76-127, inclusive.
SECTION 72. Section 75-76-139, Mississippi Code of 1972, is brought forward as follows:
75-76-139. An applicant for licensing, registration, finding of suitability, work permit or any approval or consent required by this chapter shall make full and true disclosure of all information to the commission, the executive director and any other relevant governmental authority as necessary or appropriate in the public interest or as required in order to carry out the policies of this state relating to licensing and control of the gaming industry.
SECTION 73. Section 75-76-141, Mississippi Code of 1972, is brought forward as follows:
75-76-141. Any information obtained by the executive director or the commission from any licensee, his employer or agent relating to the termination of a gaming employee is confidential and must not be disclosed except:
(a) Such information obtained from the former employer of an applicant for a work permit must be disclosed to the applicant to the extent necessary to permit him to respond to any objection made by the executive director to his application for the permit;
(b) In the necessary administration of this chapter; or
(c) Upon the lawful order of a court of competent jurisdiction.
SECTION 74. Section 75-76-143, Mississippi Code of 1972, is brought forward as follows:
75-76-143. When any person contracts to sell or lease any property or interest in property, real or personal, under circumstances which require the approval or licensing of the purchaser or lessee by the commission, the contract must contain a provision satisfactory to the commission regarding responsibility for the payment of any fees or taxes due pursuant to any subsequent deficiency determinations made under this chapter which encompass any period of time before the closing date of the transaction.
SECTION 75. Section 75-76-145, Mississippi Code of 1972, is brought forward as follows:
75-76-145. (1) The Attorney General, at the request of the executive director or the commission, may institute a civil action in any court of this state against any person subject to this chapter, to restrain a violation of this chapter.
(2) The court shall give priority over other civil actions to an action brought pursuant to this section.
(3) An action brought against a person pursuant to this section shall not preclude a criminal action or administrative proceeding against that person.
SECTION 76. Section 75-76-147, Mississippi Code of 1972, is brought forward as follows:
75-76-147. (1) The commission or the executive director shall initiate proceedings or actions appropriate to enforce the provisions of this chapter and may recommend that a district attorney or the Attorney General prosecute any public offense committed in violation of any provision of this chapter.
(2) If an investigation indicates probable cause for belief that a violation of this chapter has occurred, the commission or the executive director shall refer the matter and the evidence gathered during the investigation to the district attorney having jurisdiction, with a request that such violation be prosecuted (a) by presentation to the grand jury if it appears that a felony violation has occurred, or (b) either by presentation to the grand jury or by filing a criminal affidavit if it appears that a misdemeanor violation has occurred.
(3) If a district attorney declines to prosecute a gaming offense referred to him by the commission or the executive director, he shall respond in writing to the commission or the executive director within sixty (60) days following receipt of the request to prosecute and state the reasons declining to prosecute.
(4) If the commission or the executive director, after reviewing a district attorney's declination to prosecute, disagrees with the decision of such district attorney, the commission or the executive director may then refer the request for criminal prosecution to the Attorney General. In conducting any such prosecution, the Attorney General shall have all powers of a district attorney, including the power to issue or cause to be issued subpoenas or other process, and the right to enter the grand jury room while the grand jury is in session and to perform services with reference to the work of the grand jury.
SECTION 77. Section 75-76-149, Mississippi Code of 1972, is brought forward as follows:
75-76-149. Any person who possesses any device, equipment or material which has been manufactured, sold or distributed in violation of this chapter shall, upon conviction, be punished by a fine of not more than One Thousand Dollars ($1,000.00) or imprisoned in the county jail not more than six (6) months, or by both such fine and imprisonment.
SECTION 78. Section 75-76-151, Mississippi Code of 1972, is brought forward as follows:
75-76-151. Every district attorney, sheriff and chief of police shall furnish to the executive director, on forms prepared by the executive director, all information obtained during the course of any substantial investigation or prosecution of any person if it appears that a violation of any law related to gaming has occurred.
SECTION 79. Section 75-76-153, Mississippi Code of 1972, is brought forward as follows:
75-76-153. An application to a court for an order requiring the commission or the executive director to release any information declared by law to be confidential shall be made only upon motion in writing on ten (10) days' written notice to the commission or the executive director, the Attorney General and all persons who may be affected by the entry of such order. Copies of the motion and all papers filed in support of it shall be served with the notice by delivering a copy in person or by certified mail to the last known address of the person to be served.
SECTION 80. Section 75-76-155, Mississippi Code of 1972, is brought forward as follows:
75-76-155. (1) A person under the age of twenty-one (21) years shall not:
(a) Play, be allowed to play, place wagers, or collect winnings, whether personally or through an agent, from any gaming authorized under this chapter.
(b) Be employed as a gaming employee.
(2) Any licensee, employee, dealer or other person who violates or permits the violation of any of the provisions of this section, and any person under twenty-one (21) years of age who violates any of the provisions of this section shall, upon conviction, be punished by a fine of not more than One Thousand Dollars ($1,000.00) or imprisoned in the county jail not more than six (6) months, or by both such fine and imprisonment.
(3) In any prosecution or other proceeding for the violation of any of the provisions of this section, it is no excuse for the licensee, employee, dealer or other person to plead that he believed the person to be twenty-one (21) years old or over.
SECTION 81. Section 75-76-157, Mississippi Code of 1972, is brought forward as follows:
75-76-157. (1) Except as provided in Sections 75-76-159 through 75-76-165, inclusive, gaming debts not evidenced by a credit instrument are void and unenforceable and do not give rise to any administrative or civil cause of action.
(2) A claim by a patron of a licensee for payment of a gaming debt not evidenced by a credit instrument may be resolved by the executive director in accordance with Sections 75-76-159 through 75-76-165, inclusive.
SECTION 82. Section 75-76-159, Mississippi Code of 1972, is brought forward as follows:
75-76-159. (1) Whenever a licensee refuses payment of alleged winnings to a patron, the licensee and the patron are unable to resolve the dispute to the satisfaction of the patron and the dispute involves:
(a) At least Five Hundred Dollars ($500.00), the licensee shall immediately notify the executive director; or
(b) Less than Five Hundred Dollars ($500.00), the licensee shall inform the patron of his right to request that the executive director conduct an investigation.
The executive director shall conduct whatever investigation is deemed necessary and shall determine whether payment should be made.
(2) The executive director shall mail written notice to the commission, the licensee and the patron of his decision resolving the dispute within thirty (30) days after the date the executive director first receives notification from the licensee or a request to conduct an investigation from the patron.
(3) Failure to notify the executive director or patron as provided in subsection (1) is grounds for disciplinary action pursuant to Sections 75-76-103 through 75-76-119, inclusive.
(4) The decision of the executive director is effective on the date the aggrieved party receives notice of the decision. The date of receipt is presumed to be the date specified on the return receipt.
(5) Notice of the decision of the executive director shall be deemed sufficient if it is mailed to the last known address of the licensee and patron. The date of mailing may be proven by a certificate signed by an employee of the executive director that specifies the time the notice was mailed. The notice is presumed to have been received by the licensee or the patron five (5) days after it is deposited with the United States Postal Service with the postage thereon prepaid.
SECTION 83. Section 75-76-161, Mississippi Code of 1972, is brought forward as follows:
75-76-161. (1) Within twenty (20) days after the date of receipt of the written decision of the executive director, the aggrieved party may file a petition with the commission requesting a hearing to reconsider the decision.
(2) The petition must set forth the basis of the request for reconsideration.
(3) If no petition for reconsideration is filed within the time prescribed in subsection (1) of this section, the decision shall be deemed final action on the matter and is not subject to reconsideration by the executive director or review by the commission or to review by any court.
(4) The party requesting the hearing must provide a copy of the petition to the other party.
(5) Within fifteen (15) days after service of the petition, the responding party may answer the allegations contained therein by filing a written response with the commission.
(6) The commission shall appoint a hearing examiner who shall schedule a hearing and may conduct the hearing at such times and places, within or without the State of Mississippi as may be convenient, except that notice of the date, time and place of the hearing must be provided to both parties. The commission may review the hearing examiner's decision as provided in Section 75-76-119.
SECTION 84. Section 75-76-163, Mississippi Code of 1972, is brought forward as follows:
75-76-163. (1) The party seeking reconsideration bears the burden of showing that the executive director's decision should be reversed or modified.
(2) After the hearing, the hearing examiner may sustain, modify or reverse the executive director's decision. The decision by the hearing examiner must be in writing and must include findings of fact. A copy of the hearing examiner's decision must be delivered or mailed forthwith to each party or to his attorney of record.
SECTION 85. Section 75-76-165, Mississippi Code of 1972, is brought forward as follows:
75-76-165. (1) Except as otherwise provided in subsection (2) of this section, a licensee shall pay a patron's claim within twenty (20) days after the decision of the executive director directing him to do so becomes final. Failure to pay within that time is grounds for disciplinary action pursuant to Sections 75-76-103 through 75-76-119, inclusive.
(2) If a licensee intends to file a petition for judicial review of the commission's decision pursuant to Sections 75-76-167 through 75-76-173, inclusive, the licensee must first deposit in an interest-bearing account in a financial institution an amount equal to the amount in dispute. The licensee shall pay the full amount of the patron's claim, including interest, within twenty (20) days after a final, nonappealable order of a court of competent jurisdiction so directs.
(3) The licensee may withdraw the amount deposited in the financial institution upon:
(a) Payment of the full amount of the patron's claim, plus interest, if the licensee has given notice to the commission of the payment; or
(b) A final determination by the court that the licensee is not required to pay the claim.
SECTION 86. Section 75-76-167, Mississippi Code of 1972, is brought forward as follows:
75-76-167. (1) Any person aggrieved by a final decision or order of the commission made after hearing by the commission pursuant to Sections 75-76-159 through 75-76-165, inclusive, may obtain a judicial review thereof in the circuit court of the county in which the dispute between the licensee and patron arose.
(2) The judicial review must be instituted by filing a petition within twenty (20) days after the effective date of the final decision or order. The petition must set forth the order or decision appealed from and the grounds or reasons why petitioner contends a reversal or modification should be ordered.
(3) Copies of the petition must be served upon the executive director and all other parties of record, or their counsel of record, either personally or by certified mail.
(4) The court, upon a proper showing, may permit other interested persons to intervene as parties to the appeal or as friends of the court.
(5) The filing of the petition does not stay enforcement of the decision or order of the commission, but the commission itself may grant a stay upon such terms and conditions as it deems proper.
SECTION 87. Section 75-76-169, Mississippi Code of 1972, is brought forward as follows:
75-76-169. (1) Upon written request of petitioner and upon payment of such reasonable costs and fees as the commission may prescribe, the complete record on review, or such parts thereof as are designated by the petitioner, must be prepared by the commission.
(2) The complete record on review must include copies of:
(a) All pleadings in the case;
(b) All notices and interim orders issued by the hearing examiner or the commission in connection with the case;
(c) All stipulations;
(d) The decision and order appealed from;
(e) A transcript of all testimony, evidence and proceedings at the hearing;
(f) The exhibits admitted or rejected; and
(g) Any other papers in the case.
The original of any document may be used in lieu of a copy thereof. The record on review may be shortened by stipulation of all parties to the review proceedings.
(3) The record on review must be filed with the reviewing court within thirty (30) days after service of the petition for review, but the court may allow the commission additional time to prepare and transmit the record on review.
SECTION 88. Section 75-76-171, Mississippi Code of 1972, is brought forward as follows:
75-76-171. (1) The reviewing court may, upon motion therefor, order that additional evidence in the case be taken by the commission upon such terms and conditions as the court may deem just and proper. The motion must not be granted except upon a showing that the additional evidence is material and necessary and that sufficient reason existed for failure to present the evidence at the hearing before the hearing examiner or the commission. The motion must be supported by an affidavit of the moving party or his counsel showing with particularity the materiality and necessity of the additional evidence and the reason why it was not introduced in the administrative hearing. Rebuttal evidence to the additional evidence must be permitted. In cases in which additional evidence is presented to the commission, the commission may modify its decisions and orders as the additional evidence may warrant and shall file with the reviewing court a transcript of the additional evidence together with any modifications of the decision and order, all of which become a part of the record on review.
(2) The review must be conducted by the court sitting without a jury and must not be a trial de novo but is confined to the record on review.
(3) The reviewing court may affirm the decision and order of the commission, or it may remand the case for further proceedings or reverse the decision if the substantial rights of the petitioner have been prejudiced because the decision is:
(a) In violation of constitutional provisions;
(b) In excess of the statutory authority or jurisdiction of the commission;
(c) Made upon unlawful procedure;
(d) Unsupported by any evidence; or
(e) Arbitrary or capricious or otherwise not in accordance with law.
SECTION 89. Section 75-76-173, Mississippi Code of 1972, is brought forward as follows:
75-76-173. (1) Any party aggrieved by the final decision in the circuit court after a review of the decision and order of the commission may appeal to the Supreme Court in the manner and within the time provided by law for appeals in civil cases. The Supreme Court shall follow the same procedure thereafter as in appeals in civil actions and may affirm, reverse or modify the decision as the record and law warrant.
(2) The judicial review by the circuit and Supreme Courts afforded in this chapter is the exclusive method of review of the commission's actions, decisions and orders in hearings held pursuant to Sections 75-76-159 through 75-76-165, inclusive.
(3) The party requesting judicial review shall bear all of the costs of transcribing and of transmitting the record on review.
SECTION 90. Section 75-76-175, Mississippi Code of 1972, is brought forward as follows:
75-76-175. (1) A credit instrument accepted on or after June 29, 1991, is valid and may be enforced by legal process.
(2) A licensee or a person acting on the licensee's behalf may accept an incomplete credit instrument which:
(a) Is signed by a patron; and
(b) States the amount of the debt in figures.
and may complete the instrument as is necessary for the instrument to be presented for payment.
(3) A licensee or person acting on behalf of a licensee:
(a) May accept a credit instrument that is dated later than the date of its execution if that later date is furnished at the time of the execution of the credit instrument by the patron.
(b) May not accept a credit instrument which is incomplete, except as authorized by subsection (2) of this section.
(c) May accept a credit instrument that is payable to an affiliated company or may complete a credit instrument in the name of an affiliated company as payee if the credit instrument otherwise complies with this subsection and the records of the affiliated company pertaining to the credit instrument are made available to the executive director upon request.
(4) This section does not prohibit the establishment of an account by a deposit of cash, recognized traveler's check, or any other instruments which is equivalent to cash.
(5) Any person who violates the provisions of this section is subject only to the penalties provided in Sections 75-76-103 through 75-76-119, inclusive.
(6) The commission may adopt regulations prescribing the conditions under which a credit instrument may be redeemed or presented to a bank for collection or payment.
SECTION 91. Section 75-76-177, Mississippi Code of 1972, is brought forward as follows:
75-76-177. (1) From and after August 1, 1990, there is hereby imposed and levied on each gaming licensee a license fee based upon all the gross revenue of the licensee as follows:
(a) Four percent (4%) of all the gross revenue of the licensee which does not exceed Fifty Thousand Dollars ($50,000.00) per calendar month;
(b) Six percent (6%) of all the gross revenue of the licensee which exceeds Fifty Thousand Dollars ($50,000.00) per calendar month and does not exceed One Hundred Thirty-four Thousand Dollars ($134,000.00) per calendar month; and
(c) Eight percent (8%) of all the gross revenue of the licensee which exceeds One Hundred Thirty-four Thousand Dollars ($134,000.00) per calendar month.
(2) All revenue received from any game or gaming device which is leased for operation on the premises of the licensee-owner to a person other than the owner thereof or which is located in an area or space on such premises which is leased by the licensee-owner to any such person, must be attributed to the owner for the purposes of this section and be counted as part of the gross revenue of the owner. The lessee is liable to the owner for his proportionate share of such license fees.
(3) If the amount of license fees required to be reported and paid pursuant to this section is later determined to be greater or less than the amount actually reported and paid by the licensee, the Chairman of the State Tax Commission shall:
(a) Assess and collect the additional license fees determined to be due, with interest thereon until paid; or
(b) Refund any overpayment, with interest thereon, to the licensee.
Interest must be computed, until paid, at the rate of one percent (1%) per month from the first day of the first month following either the due date of the additional license fees or the date of overpayment.
(4) Failure to pay the fees provided for in this section when they are due for continuation of a license shall be deemed a surrender of the license.
SECTION 92. Section 75-76-179, Mississippi Code of 1972, is brought forward as follows:
75-76-179. License fees paid under Section 75-76-177 in any taxable year shall be allowed as credit against the income tax liability of the licensee for that taxable year.
SECTION 93. Section 75-76-181, Mississippi Code of 1972, is brought forward as follows:
75-76-181. (1) For the purposes of this chapter, except as otherwise provided in subsection (3) of this section, the computation of gross revenue must include the face value of any credit instrument accepted on or after June 29, 1991, if, within five (5) years after the last day of the month following the month in which the instrument was accepted by the licensee, the executive director determines that:
(a) The instrument was not signed by the patron or otherwise acknowledged by him in a written form satisfactory to the executive director;
(b) The licensee did not have an address for the patron at the time of accepting the instrument, or, in lieu of that address, has not provided the executive director, within a reasonable time after its request, the current address of the patron to whom the credit was extended;
(c) The licensee has not provided the executive director any evidence that the licensee made a reasonable effort to collect the debt;
(d) The licensee has not provided the executive director any evidence that the licensee checked the credit history of the patron before extending the credit to him;
(e) The licensee has not produced the instrument within a reasonable time after a request by the executive director for the instrument unless it:
(i) Is in the possession of a court, governmental agency or financial institution;
(ii) Has been returned to the patron upon his partial payment of the instrument and the licensee has obtained a substitute credit instrument for the remaining balance;
(iii) Has been stolen and the licensee has made a written report of the theft to the appropriate law enforcement agency; or
(iv) Cannot be produced because of any other circumstance which is beyond the licensee's control;
(f) The signature of the patron on the instrument was forged and the licensee has not made a written report of the forgery to the appropriate law enforcement agency; or
(g) Upon an audit by the State Tax Commission, the licensee requested the auditors not to confirm the unpaid balance of the debit with the patron and there is no other satisfactory means of confirmation.
(2) For the purpose of this chapter, the computation of gross revenue must not include cash or its equivalent which is received in full or partial payment of a debt previously included in the computation of gross revenue pursuant to subsection (1).
(3) Subsection (1) does not apply to any credit instrument which is settled for less than its face amount to:
(a) Induce a partial payment;
(b) Compromise a dispute;
(c) Retain a patron's business for the future; or
(d) Obtain a patron's business if:
(i) An agreement is entered into to discount the face amount of a credit instrument before it is issued to induce timely payment of the credit instrument; and
(ii) The percentage of discount of the instrument is reasonable as compared to the prevailing practice in the industry.
SECTION 94. Section 75-76-183, Mississippi Code of 1972, is brought forward as follows:
75-76-183. (1) Each applicant for a license to conduct gaming aboard a vessel or cruise vessel shall pay an application fee of Five Thousand Dollars ($5,000.00).
(2) Each licensee who is licensed to conduct gaming aboard a vessel or cruise vessel shall pay an annual license fee of Five Thousand Dollars ($5,000.00).
SECTION 95. Section 75-76-185, Mississippi Code of 1972, is brought forward as follows:
75-76-185. (1) Except as otherwise provided in Section 75-76-187, there is hereby imposed and levied on each licensee who conducts a gaming operation a fee based on the value of any collectible credit instrument received as a result of that gaming operation which is held by the licensee or any affiliate of the licensee and remains unpaid on the last tax day.
(2) The fee must be:
(a) Calculated by using the rates and monetary limits set forth in Section 75-76-177; and
(b) Collected by the State Tax Commission and refunded pursuant to the regulations adopted by the State Tax Commission.
SECTION 96. Section 75-76-187, Mississippi Code of 1972, is brought forward as follows:
75-76-187. (1) If the commission approves the issuance of a license for gaming operations at the same location, within thirty (30) days following a change described in subsection (2) of this section, for the purpose of Section 75-76-177 and Sections 75-76-181 through 75-76-191, inclusive, the gaming license shall be deemed transferred and the previously licensed operation shall be deemed a continuing operation.
(2) Credit must be granted for prepaid license fees as described in subsection (1) if:
(a) The securities of a corporate gaming licensee are or become publicly held or publicly traded and the gaming operations of that corporation are transferred to a wholly owned subsidiary corporation;
(b) A corporate gaming licensee is merged with another corporation which is the surviving entity and at least eighty percent (80%) of the surviving entity is owned by shareholders of the former licensee;
(c) A corporate gaming licensee is dissolved and the parent corporation of the dissolved corporation or a subsidiary corporation of the parent corporation, at least eighty percent (80%) of which is owned by the parent corporation, becomes the gaming licensee.
SECTION 97. Section 75-76-189, Mississippi Code of 1972, is brought forward as follows:
75-76-189. Any person who willfully fails to report, pay or truthfully account for and pay over the license fees imposed by this chapter, or willfully attempts in any manner to evade or defeat any such tax or payment thereof, or any licensee who puts additional games into play without authority of the commission to do so or any licensee who fails to remit any license fee provided for by this chapter when due is, in addition to the amount due, liable for a penalty of the amount of the license fee evaded or not paid, collected or paid over. The penalty must be assessed and collected in the same manner as are other charges, license fees and penalties under this chapter.
SECTION 98. Section 75-76-191, Mississippi Code of 1972, is brought forward as follows:
75-76-191. (1) In addition to any other state gaming license fees provided for in this chapter, from and after August 1, 1990, there is hereby imposed and levied on each applicant for a state gaming license a license fee to be determined on the basis of the following annual rates:
(a) From establishments operating or to operate ten (10) games or less:
Those establishments operating or to operate one (1) game, the sum of Fifty Dollars ($50.00).
Those establishments operating or to operate two (2) games, the sum of One Hundred Dollars ($100.00).
Those establishments operating or to operate three (3) games, the sum of Two Hundred Dollars ($200.00).
Those establishments operating or to operate four (4) games, the sum of Three Hundred Seventy-five Dollars ($375.00).
Those establishments operating or to operate five (5) games, the sum of Eight Hundred Seventy-five Dollars ($875.00).
Those establishments operating or to operate six (6) or seven (7) games, the sum of One Thousand Five Hundred Dollars ($1,500.00).
Those establishments operating or to operate eight (8), nine (9) or ten (10) games, the sum of Three Thousand Dollars ($3,000.00).
(b) From establishments operating or to operate more than ten (10) games:
For each game up to and including sixteen (16) games, the sum of Five Hundred Dollars ($500.00).
For each game from seventeen (17) to twenty-six (26) games, inclusive, the sum of Four Thousand Eight Hundred Dollars ($4,800.00).
For each game from twenty-seven (27) to thirty-five (35) games, inclusive, the sum of Two Thousand Eight Hundred Dollars ($2,800.00).
For each game more than thirty-five (35) games, the sum of One Hundred Dollars ($100.00).
(2) The license fee imposed by this section is to be paid by the applicant to the State Tax Commission on or before the filing of the application for issuance of a gaming license by the applicant, and is to be paid annually thereafter for continuation of the gaming license. Upon such payment, the Chairman of the State Tax Commission shall certify to the executive director that such fee has been paid by the applicant, and the amount of the fee paid.
(3) Card games, that is, stud or draw poker, bridge, whist, solo, low ball, and panguingui for money, and slot machines, when not utilized as an adjunct to or a unit of any banking, percentage or mechanical device or machine, are not gambling games under the provisions of this section.
(4) All games operated or conducted in one (1) room or a group of rooms in the same or a contiguous building or vessel are considered one (1) operation, and the license to be paid must be determined on the aggregate number of games in each room or group of rooms in the same or a contiguous building or vessel.
SECTION 99. Section 75-76-193, Mississippi Code of 1972, is brought forward as follows:
75-76-193. (1) In calculating gross revenue, any prizes, premiums, drawings, benefits or tickets which are redeemable for money or merchandise or other promotional allowance, except money or tokens paid at face value directly to a patron as the result of a specific wager and the amount the cash paid to purchase an annuity to fund winnings paid to that patron over several years by an independent financial institution, must not be deducted as losses from winnings at any game except a slot machine.
(2) In calculating gross revenue from slot machines, the actual cost to the licensee of any personal property distributed to a patron as the result of a legitimate wager may be deducted as a loss, but not travel expenses, food, refreshments, lodging or services.
SECTION 100. Section 75-76-195, Mississippi Code of 1972, is brought forward as follows:
75-76-195. (1) In addition to any state gaming license fees or taxes, from and after August 1, 1990, (a) a municipality may impose a fee upon a licensee located within the municipality for conducting, carrying on or operating any gambling game, slot machine or other game of chance based upon all the gross revenue of the licensee derived from his establishment within the municipality, and (b) a county may impose a fee upon a licensee located within the unincorporated area of the county for conducting, carrying on or operating any gambling game, slot machine or other game of chance based upon all the gross revenue of the licensee derived from his establishment within the unincorporated area of the county, as follows:
(i) Four-tenths percent (.4%) of all the gross revenue which does not exceed Fifty Thousand Dollars ($50,000.00) per calendar month;
(ii) Six-tenths percent (.6%) of all the gross revenue which exceeds Fifty Thousand Dollars ($50,000.00) per calendar month and does not exceed One Hundred Thirty-four Thousand Dollars ($134,000.00) per calendar month; and
(iii) Eight-tenths percent (.8%) of all the gross revenue of the licensee which exceeds One Hundred Thirty-four Thousand Dollars ($134,000.00) per calendar month.
(2) Whenever a municipality or county imposes a fee under this section, it shall not become effective until the first day of the month following the month in which the municipality or county adopts the ordinance imposing the fee.
(3) All revenue received from any game or gaming device which is leased for operation on the premises of licensee-owner to a person other than the owner thereof or which is located in an area or space on such premises which is leased by the licensee-owner to any such person must be attributed to the owner for the purposes of this section and be counted as part of the gross revenue of the owner. The lessee is liable to the owner for his proportionate share of such fees.
(4) If the amount of fees required to be reported and paid pursuant to this section is later determined to be greater or less than the amount actually reported and paid by the licensee, the State Tax Commission on behalf of the local government shall:
(a) Assess and collect the additional fees determined to be due, with interest thereon until paid; or
(b) Refund any overpayment, with interest thereon, to the licensee.
Interest must be computed, until paid, at the rate of one percent (1%) per month from the first day of the month following either the due date of the additional fees or the date of overpayment.
(5) Failure to pay the fees provided for in this section when they are due for continuation of a license shall be deemed a surrender of the license.
SECTION 101. Section 75-76-197, Mississippi Code of 1972, is brought forward as follows:
75-76-197. On or before the fifteenth day of each month, the gross revenue fees collected under the provisions of Section 75-76-195 during the preceding month shall be paid and distributed as follows:
(a) Fees designated as "local government fees" remitted by licensees who are located within an incorporated municipality shall be distributed:
(i) To such municipal corporation in the proportion that the population of the municipal corporation bears to the entire population of the county in which the municipal corporation is located, according to the most recent federal census; and
(ii) To the county in which the municipal corporation is located in the proportion that the population of the county outside of that municipal corporation bears to the entire population of the county, according to the most recent federal census.
(b) Fees designated as "local government fees" remitted by licensees who are not located within an incorporated municipality shall be distributed to the county in which the licensee is located.
SECTION 102. Section 75-76-199, Mississippi Code of 1972, is brought forward as follows:
75-76-199. For the purpose of Sections 75-76-199 through 75-76-265:
(a) "Affiliated company" means a subsidiary company, holding company, intermediate company or any other form of business organization that:
(i) Controls, is controlled by or is under common control with a corporate licensee; and
(ii) Is involved in gaming activities in this state or involved in the ownership of property in this state upon which gaming is conducted.
(b) "Director" means any director of a corporation or any person performing similar functions with respect to any organization.
(c) "Equity security" means:
(i) Any voting stock of a corporation, or similar security;
(ii) Any security convertible, with or without consideration, into such a security, or carrying any warrant or right to subscribe to or purchase such a security;
(iii) Any such warrant or right; or
(iv) Any security having a direct or indirect participation in the profits or the issuer.
(d) "General partner" means any general partner of a limited partnership or any person performing similar functions.
(e) "Holding company" means any corporation, firm, partnership, trust or other form of business organization not a natural person which, directly or indirectly:
(i) Owns;
(ii) Has the power or right to control; or
(iii) Holds, with power to vote, all or any part of the limited partnership interests or outstanding voting securities of a corporation which holds or applies for a state gaming license.
For the purposes of this paragraph (e), in addition to other reasonable meaning of the words used, a holding company "indirectly" has, holds or owns any power, right or security mentioned in this paragraph (e) if it does so through any interest in a subsidiary or successive subsidiaries, however many such subsidiaries may intervene between the holding company and the corporate licensee or applicant.
(f) "Intermediary company" means any corporation, firm, partnership, trust or other form of business organization other than a natural person which:
(i) Is a holding company with respect to a corporation or limited partnership which holds or applies for a state gaming license; and
(ii) Is a subsidiary with respect to any holding company.
(g) "Limited partner" means any limited partner of a limited partnership or any other person having similar rights.
(h) "Limited partnership" means a partnership formed by two (2) or more persons pursuant to this chapter, having as members one or more general partners and one or more limited partners.
(i) "Limited partnership interest" means the right of a general or limited partner to receive from a limited partnership:
(i) A share of the profits;
(ii) Any other compensation by way of income; or
(iii) A return of any or all of his contribution to capital of the limited partnership, or the right to exercise any of the rights or powers provided in this chapter, whether directly or indirectly.
(j) "Publicly traded corporation" means:
(i) Any corporation or other legal entity except a natural person which:
1. Has one or more classes of securities registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended (15 USCS Section 781); or
2. Is an issuer subject to Section 15(d) of the Securities Exchange Act of 1934, as amended (15 USCS Section 780); or
(ii) Any corporation or other legal entity created under the laws of a foreign country:
1. Which has one or more classes of securities registered on that country's securities exchange or over-the-counter market; and
2. Whose activities have been found by the commission to be regulated in a manner which protects the investors and the State of Mississippi.
(k) "Subsidiary" means:
(i) Any corporation all or any part of whose outstanding equity securities are:
1. Owned;
2. Subject to a power or right of control; or
3. Held, with power to vote, by a holding company or intermediary company; or
(ii) Any firm, partnership, trust or other form of business organization not a natural person, all or any interest in which is:
1. Owned;
2. Subject to a power or right of control; or
3. Held, with power to vote, by a holding company or intermediary company.
SECTION 103. Section 75-76-201, Mississippi Code of 1972, is brought forward as follows:
75-76-201. (1) The policy of the State of Mississippi with respect to the issuance of state gaming licenses to corporations is:
(a) To maintain effective control over the conduct of gaming by corporate licensees.
(b) To restrain any speculative promotion of the stock or other securities of gaming enterprises.
(2) The commission may waive, either selectively or by general regulation, one or more of the requirements of Sections 75-76-203 through 75-76-217 if it makes a written finding that such waiver is consistent with the state policy.
SECTION 104. Section 75-76-203, Mississippi Code of 1972, is brought forward as follows:
75-76-203. In order to be eligible to receive a state gaming license, a corporation shall:
(a) Be incorporated:
(i) In the State of Mississippi, although such corporation may be a wholly or partly owned subsidiary of a corporation which is chartered in another state of the United States; or
(ii) In another state of the United States, if all persons having any direct or indirect interest of any nature in such corporation are licensed as required by this chapter and any applicable regulations of the commission;
(b) Maintain an office of the corporation on the licensed premises;
(c) Comply with all of the requirements of the laws of the State of Mississippi pertaining to corporations; and
(d) Maintain a ledger in the principal office of the corporation in Mississippi, which shall:
(i) At all times reflect the ownership of every class of security issued by the corporation; and
(ii) Be available for inspection by the commission or the executive director or his employees at all reasonable times without notice.
SECTION 105. Section 75-76-205, Mississippi Code of 1972, is brought forward as follows:
75-76-205. No domestic corporation is eligible to receive a gaming license unless it is in good standing in this state. No foreign corporation is eligible to receive a gaming license unless it qualifies to do business in this state.
SECTION 106. Section 75-76-207, Mississippi Code of 1972, is brought forward as follows:
75-76-207. (1) The purported sale, assignment, transfer, pledge or other disposition of any security issued by a corporation which holds a state gaming license or the granting of an option to purchase such a security is void unless approved in advance by the commission.
(2) If at any time the commission finds that an individual owner of any such security is unsuitable to continue as a gaming licensee in this state, the owner shall immediately offer the security to the issuing corporation for purchase. The corporation shall purchase the security so offered, for cash at fair market value, within ten (10) days after the date of the offer.
(3) Beginning upon the date when the commission serves upon the corporation notice of a determination of unsuitability pursuant to subsection (2), it is unlawful for the unsuitable owner:
(a) To receive any dividend or interest upon any such security;
(b) To exercise, directly or through any trustee or nominee, any voting right conferred by such security; or
(c) To receive any remuneration in any form from the corporation, for services rendered or otherwise.
(4) Every security issued by a corporation which holds a gaming license must bear a statement, on both sides of the certificate evidencing the security, of the restrictions imposed by this section.
SECTION 107. Section 75-76-209, Mississippi Code of 1972, is brought forward as follows:
75-76-209. A corporation which applies for a state gaming license shall register as a corporation with the commission and shall provide the following information to the executive director:
(a) The organization, financial structure and nature of the business to be operated, including the names, personal history and fingerprints of all officers, directors and key employees, and the names, addresses and number of shares held by all stockholders.
(b) The rights and privileges acquired by the holders of different classes of authorized securities, including debentures.
(c) The terms on which securities are to be offered.
(d) The terms and conditions of all outstanding loans, mortgages, trust deeds, pledges or any other indebtedness or security device.
(e) The extent of the equity security holding in the corporation of all officers, directors and underwriters, and their remuneration as compensation for services, in the form of salary, wages, fees or otherwise.
(f) Remuneration to persons other than directors and officers exceeding Thirty Thousand Dollars ($30,000.00) per annum.
(g) Bonus and profit sharing arrangements.
(h) Management and service contracts.
(i) Options existing or to be created.
(j) Balance sheets for at least three (3) preceding fiscal years, or, if the corporation has not been incorporated for a period of three (3) years, balance sheets from the time of its incorporation. All balance sheets shall be certified by independent public accountants certified or registered in the State of Mississippi.
(k) Profit and loss statements for at least the three (3) preceding fiscal years, or, if the corporation has not been incorporated for a period of three (3) years, profit and loss statements from the time of its incorporation. All profit and loss statements shall be certified by independent public accountants certified or registered in the State of Mississippi.
(l) Any further financial data which the executive director or the commission may deem necessary or appropriate for the protection of the State of Mississippi or licensed gambling, or both.
SECTION 108. Section 75-76-211, Mississippi Code of 1972, is brought forward as follows:
75-76-211. All officers and directors of the corporation which holds or applies for a state gaming license must be licensed individually, according to the provisions of this chapter; and if, in the judgment of the commission, the public interest will be served by requiring any or all of the corporation's individual stockholders, lenders, holders of evidences of indebtedness, underwriters, key executives, agents or employees to be licensed, the corporation shall require such persons to apply for a license in accordance with the laws and requirements in effect at the time the commission requires such licensing. A person who is required to be licensed by this section shall apply for a license within thirty (30) days after he becomes an officer or director. A person who is required to be licensed pursuant to a decision of the commission shall apply for a license within thirty (30) days after the executive director requests him to do so.
SECTION 109. Section 75-76-213, Mississippi Code of 1972, is brought forward as follows:
75-76-213. (1) After licensing pursuant to this chapter, but before the corporation may issue or transfer any security to any person, it shall file a report of its proposed action with the commission and the executive director, which report shall request the approval of the commission. The commission shall have ninety (90) days within which to approve or deny the request. If the commission denies the request, the corporation shall not issue or transfer any such security.
(2) After licensing pursuant to this chapter, the corporation shall file a report of each change of the corporate officers and directors with the commission and the executive director. The commission shall have ninety (90) days within which to approve or disapprove such change. During such ninety-day period and thereafter if the commission does not disapprove the change, such officer or director shall be entitled to exercise all powers of the office to which he was so elected or appointed.
SECTION 110. Section 75-76-215, Mississippi Code of 1972, is brought forward as follows:
75-76-215. (1) After licensing pursuant to this chapter, the corporation shall:
(a) Report to the commission and the executive director in writing any change in corporate personnel who have been designated by the commission or the executive director as key executives.
(b) Furnish the executive director an annual profit and loss statement and an annual balance sheet.
(2) The commission or the executive director may require that any such corporation furnish the commission or the executive director with a copy of its federal income tax return within thirty (30) days after such return is filed with the federal government.
SECTION 111. Section 75-76-217, Mississippi Code of 1972, is brought forward as follows:
75-76-217. (1) If an employee of a corporate licensee who is required to be licensed individually:
(a) Does not apply for a license within thirty (30) days after the executive director requests him to do so, and the commission makes a finding of unsuitability for that reason; or
(b) Is denied a license; or
(c) Has his license revoked by the commission,
the corporate gaming licensee by whom he is employed shall terminate his employment in any capacity in which he is required to be licensed and shall not permit him to exercise a significant influence over the operation of the gaming establishment upon being notified by registered or certified mail of that action.
(2) If the corporate licensee designates another employee to replace the employee whose employment was terminated, it shall promptly notify the commission or the executive director and shall cause the newly designated employee to apply for a gaming license.
SECTION 112. Section 75-76-219, Mississippi Code of 1972, is brought forward as follows:
75-76-219. (1) The policy of the State of Mississippi with respect to the issuance of state gaming licenses to limited partnerships is:
(a) To maintain effective control over the conduct of gaming by limited partnership licensees.
(b) To restrain any speculative promotion of limited partnership interests in gaming enterprises.
(2) The commission may waive, either selectively or by general regulation, one or more of the requirements of Sections 75-76-221 through 75-76-231 if it makes a written finding that a waiver is consistent with the state policy set forth in this chapter.
SECTION 113. Section 75-76-221, Mississippi Code of 1972, is brought forward as follows:
75-76-221. In order to be eligible to receive a state gaming license, a limited partnership shall:
(a) Be formed under the laws of this state;
(b) Maintain an office of the limited partnership on the licensed premises;
(c) Comply with all of the requirements of the laws of this state pertaining to limited partnerships; and
(d) Maintain a ledger in the principal office of the limited partnership in this state which must:
(i) At all times reflect the ownership of all interests in the limited partnership; and
(ii) Be available for inspection by the commission or the executive director or his employees at all reasonable times without notice.
SECTION 114. Section 75-76-223, Mississippi Code of 1972, is brought forward as follows:
75-76-223. (1) The sale, assignment, transfer, pledge or other disposition of any interest in a limited partnership which holds a state gaming license is ineffective unless approved in advance by the commission.
(2) If at any time the commission finds that an individual owner of any such interest is unsuitable to hold that interest, the commission shall immediately notify the limited partnership of that fact. The limited partnership shall, within ten (10) days from the date that it receives the notice from the commission, return to the unsuitable owner, in cash, the amount of his capital account as reflected on the books of the partnership.
(3) Beginning on the date when the commission serves notice upon the limited partnership of a determination of unsuitability pursuant to subsection (2), it is unlawful for the unsuitable owner:
(a) To receive any share of the profits or interest upon any limited partnership interest;
(b) To exercise, directly or through any trustee or nominee, any voting right conferred by such interest; or
(c) To receive any remuneration in any form from the limited partnership, for services rendered or otherwise.
(4) The certificate of limited partnership of any limited partnership holding a state gaming license must contain a statement of the restrictions imposed by this section.
SECTION 115. Section 75-76-225, Mississippi Code of 1972, is brought forward as follows:
75-76-225. A limited partnership which applies for a state gaming license shall register as a limited partnership with the commission and shall provide the following information to the executive director:
(a) The organization, financial structure and nature of the business to be operated, including the names, personal history and fingerprints of all general partners and key employees, and the name, address and interest of each limited partner.
(b) The rights, privileges and relative priorities of limited partners as to the return of contributions to capital, and the right to receive income.
(c) The terms on which limited partnership interests are to be offered.
(d) The terms and conditions of all outstanding loans, mortgages, trust deeds, pledges or any other indebtedness or security device.
(e) The extent of the holding in the limited partnership of all underwriters, and their remuneration as compensation for services, in the form of salary, wages, fees or otherwise.
(f) Remuneration to persons other than general partners exceeding Thirty Thousand Dollars ($30,000.00) per annum.
(g) Bonus and profit sharing arrangements.
(h) Management and service contracts.
(i) Options existing, or to be created.
(j) Balance sheets for at least the three (3) preceding fiscal years, or, if the limited partnership has not been in existence for three (3) years, balance sheets from the time of its formation. All balance sheets must be certified by independent public accountants certified or registered in this state.
(k) Profit and loss statements for at least the three (3) preceding fiscal years, or, if the limited partnership has not been in existence for three (3) years, profit and loss statements from the time of its formation. All profit and loss statements must be certified by independent public accountants certified or registered in this state.
(l) Commission may deem necessary or appropriate for the protection of the State of Mississippi or licensed gambling, or both.
SECTION 116. Section 75-76-227, Mississippi Code of 1972, is brought forward as follows:
75-76-227. Every general partner and limited partner of a limited partnership which holds or applies for a state gaming license must be licensed individually, according to the provisions of this chapter; and if, in the judgment of the commission, the public interest will be served by requiring any or all of the limited partnership's lenders, holders of evidence of indebtedness, underwriters, key executives, agents or employees to be licensed, the limited partnership shall require those persons to apply for a license in accordance with the laws and requirements in effect at the time the commission requires the licensing. Publicly traded corporations which are limited partners of limited partnerships are not required to be licensed but shall comply with this chapter. A person who is required to be licensed as a general or limited partner shall not receive that position until he secures the required approval of the commission. A person who is required to be licensed pursuant to a decision of the commission shall apply for a license within thirty (30) days after the executive director requests him to do so.
SECTION 117. Section 75-76-229, Mississippi Code of 1972, is brought forward as follows:
75-76-229. (1) After licensing pursuant to this chapter, the limited partnership shall:
(a) Report to the commission and the executive director in writing any change in personnel who have been designated by the commission as key executives.
(b) Furnish the executive director an annual profit and loss statement and an annual balance sheet.
(2) The commission or the executive director may require that any limited partnership furnish the commission or the executive director with a copy of its federal income tax return within thirty (30) days after the return is filed with the federal government.
SECTION 118. Section 75-76-231, Mississippi Code of 1972, is brought forward as follows:
75-76-231. (1) If an employee of a limited partnership licensee who is required to be licensed individually:
(a) Does not apply for a license within thirty (30) days after the executive director requests him to do so, and the commission makes a finding of unsuitability for that reason; or
(b) Is denied a license; or
(c) Has his license revoked by the commission,
the limited partnership gaming licensee by whom he is employed shall terminate his employment upon notification by registered or certified mail to the limited partnership of that action.
(2) If the limited partnership licensee designates another employee to replace the employee whose employment was terminated, it shall promptly notify the commission or the executive director and cause the newly designated employee to apply for a gaming license.
SECTION 119. Section 75-76-233, Mississippi Code of 1972, is brought forward as follows:
75-76-233. Sections 75-76-235 through 75-76-241, inclusive, apply to every holding company or intermediary company except a publicly traded corporation which has been exempted from the operation of all or some of the provisions of such sections.
SECTION 120. Section 75-76-235, Mississippi Code of 1972, is brought forward as follows:
75-76-235. (1) If the corporation applying for or holding a license is or becomes a subsidiary, each holding company and each intermediary company with respect thereto must:
(a) Qualify to do business in the State of Mississippi.
(b) If it is a corporation, register with the commission and furnish the executive director:
(i) A complete list of all stockholders when it first registers, and annually thereafter, within thirty (30) days after the annual meeting of the stockholders of the corporation, showing the number of shares held by each;
(ii) The names of all corporate officers within thirty (30) days of their appointment; and
(iii) The names of all members of the directors within thirty (30) days of their election.
(c) If it is a firm, partnership, trust or other form of business organization, it must register with the commission and furnish the executive director such analogous information as the executive director may prescribe.
(2) The commission or the executive director may, in their discretion, make such investigations concerning the officers, directors, underwriters, security holders, partners, principals, trustees or direct or beneficial owners of any interest in any holding company or intermediary company as it deems necessary, either at the time of initial registration or at any time thereafter.
(3) If at any time the commission finds that any person owning, controlling or holding with power to vote all or any part of any class of security of, or any interest in, any holding company or intermediary company is unsuitable to be connected with a licensed gaming enterprise, it shall so notify such unsuitable person, the holding company or intermediary company, or both. Such unsuitable person shall immediately offer such security to the issuing corporation, or such interest to the firm, partnership, trust or other business organization, for purchase. The corporation shall purchase the security so offered, or the firm, partnership, trust or other business organization shall purchase the interest so offered, for cash at fair market value within ten (10) days after the date of the offer.
(4) Beginning upon the date when the commission serves notice of a determination of unsuitability pursuant to subsection (3), it is unlawful for the unsuitable person:
(a) To receive any dividend or interest upon any such securities, or any dividend, payment or distribution of any kind from any holding company or intermediary company;
(b) To exercise, directly or indirectly or through any proxy, trustee or nominee, any voting right conferred by such securities or interest; or
(c) To receive any remuneration in any form from the corporation gaming licensee, or from any holding company or intermediary company with respect thereto, for services rendered or otherwise.
(5) Every security issued by a holding company or intermediary company which directly or indirectly:
(a) Owns;
(b) Has the power or right to control; or
(c) Holds with power to vote
all or any part of the outstanding equity securities of a corporate gaming licensee shall bear a statement, on both sides of the certificate evidencing such security, of the restrictions imposed by this section.
(6) A holding company or intermediary company subject to subsection (1) shall not make any public offering of any of its securities unless such public offering has been approved by the commission.
(7) The commission may, at any time and from time to time, by general regulation or selectively, impose on any holding company or intermediary company any requirement not inconsistent with law which it may deem necessary in the public interest. Without limiting the generality of the preceding sentence, any such requirement may deal with the same subject matter as, but be more stringent than, the requirements imposed by Sections 75-76-199, through 75-76-265, inclusive.
SECTION 121. Section 75-76-237, Mississippi Code of 1972, is brought forward as follows:
75-76-237. (1) Each officer, employee, director, partner, principal, trustee or direct or beneficial owner of any interest in any holding company or intermediary company who the commission determines is or is to become engaged in the administration or supervision of, or any other significant involvement with, the activities of a corporate licensee, must be found suitable therefor and may be required to be licensed by the commission.
(2) If any officer, employee, director, partner, principal, trustee or direct or beneficial owner required to be found suitable pursuant to subsection (1) fails to apply for a finding of suitability or a gaming license within thirty (30) days after being requested so to do by the executive director, is not found suitable or is denied a license by the commission, or if his license or the finding of his suitability is revoked after appropriate findings by the commission, the holding company or intermediary company, or both, shall immediately remove that person from any position in the administration or supervision of, or any other significant involvement with, the activities of the corporate licensee. If the commission suspends the suitability or license of any officer, employee, director, partner, principal, trustee or owner, the holding company or intermediary company, or both, shall, immediately and for the duration of the suspension, suspend him from performing any duties in administration or supervision of the activities of the corporate licensee and from any other significant involvement therewith.
SECTION 122. Section 75-76-239, Mississippi Code of 1972, is brought forward as follows:
75-76-239. If the corporation applying for or holding a license is or becomes a subsidiary, each holding company and intermediary company shall furnish the executive director the following information:
(a) The organization, financial structure and nature of the business it operates.
(b) The terms, position, rights and privileges of the different classes of securities outstanding.
(c) The terms on which its securities are to be, and during the preceding three (3) years have been, offered to the public or otherwise.
(d) The terms and conditions of all outstanding loans, mortgages, trust deeds, pledges, or any other indebtedness or security device pertaining to the corporate gaming licensee.
(e) The extent of the security holding or other interest in the holding company or intermediary company of all officers, employees, directors, underwriters, partners, principals, trustees or any direct or beneficial owner, and any remuneration as compensation for their services, in the form of salary, wages, fees, or by contract, pertaining to the corporate gaming licensee.
(f) Remuneration to others than directors and officers exceeding Forty Thousand Dollars ($40,000.00) per annum.
(g) Bonus and profit sharing arrangements.
(h) Management and service contracts.
(i) Options existing or to be created in respect of their securities or other interests.
(j) Balance sheets, certified by independent certified public accountants, for not more than the three (3) preceding fiscal years or, if the holding company or intermediary company has not been in existence more than three (3) years, balance sheets from the time of its establishment.
(k) Profit and loss statements, certified by independent certified public accountants, for not more than the three (3) preceding fiscal years, or, if the holding company or intermediary company has not been in existence more than three (3) years, profit and loss statements from the time of its establishment.
(l) Any further financial statements which the executive director or the commission may deem necessary or appropriate for the protection of the State of Mississippi, licensed gambling, or both.
(m) An annual profit and loss statement and annual balance sheet, and a copy of its annual federal income tax return within thirty (30) days after such return is filed with the federal government.
SECTION 123. Section 75-76-241, Mississippi Code of 1972, is brought forward as follows:
75-76-241. If any corporate or limited partnership licensee, or if any holding company or intermediary company with respect thereto, does not comply with the laws of this state and the regulations of the commission, the commission may, in its discretion, do any one, all or a combination of the following:
(a) Revoke, limit, condition or suspend the gaming license of the corporate or limited partnership licensee; or
(b) Fine the persons involved, or the corporate or limited partnership licensee, or such holding company or intermediary company, in accordance with the laws of this state and the regulations of the commission.
SECTION 124. Section 75-76-243, Mississippi Code of 1972, is brought forward as follows:
75-76-243. The Legislature hereby declares that:
(a) Some corporate acquisitions, repurchases of securities and corporate defense tactics affecting corporate gaming licensees and publicly traded corporations that are affiliated companies can constitute business practices which may be injurious to stable and productive corporate gaming.
(b) A regulatory scheme established to ameliorate the potential adverse effects of these business practices upon the gaming industry must be properly developed to balance the interests of Mississippi gaming, interstate commerce and federal regulation of securities.
(c) A regulatory scheme established to ameliorate the potential adverse effects of these business practices upon the gaming industry may best be accomplished by the adoption and enforcement of regulations by the commission.
SECTION 125. Section 75-76-245, Mississippi Code of 1972, is brought forward as follows:
75-76-245. The policy of the State of Mississippi with respect to corporate acquisitions, repurchases of securities and corporate recapitalizations affecting corporate licensees and publicly traded corporations that are affiliated companies is to:
(a) Assure the financial stability of corporate licensees and affiliated companies;
(b) Preserve the beneficial aspects of conducting business in the corporate form; and
(c) Promote a neutral environment for the orderly governance of corporate affairs that is consistent with the public policy of this state concerning gaming.
SECTION 126. Section 75-76-247, Mississippi Code of 1972, is brought forward as follows:
75-76-247. The commission may adopt regulations providing for the review and approval of corporate acquisitions, repurchases of securities and corporate defense tactics affecting corporate gaming licensees and publicly traded corporations that are affiliated companies. The regulations must be consistent with:
(a) The policy of this state as expressed in this chapter;
(b) The provisions of this chapter;
(c) The requirements of the Constitution of the United States; and
(d) Federal regulation of securities.
SECTION 127. Section 75-76-249, Mississippi Code of 1972, is brought forward as follows:
75-76-249. The commission may exempt a publicly traded corporation from compliance with:
(a) The provisions of Section 75-76-207.
(b) Some or all of the provisions of Sections 75-76-235 through 75-76-241. To the extent of such an exemption, the corporation shall comply instead with the provisions of Sections 75-76-253 through 75-76-265, except as otherwise ordered by the commission.
SECTION 128. Section 75-76-251, Mississippi Code of 1972, is brought forward as follows:
75-76-251. (1) A corporation or other legal entity which is organized under the laws of another country and seeks to register with the commission as a publicly traded corporation must submit an application to the executive director.
(2) The application must provide the executive director with information showing that the applicant's business activities are regulated by a governmental authority of the foreign country in a manner which will prevent those activities from posing any threat to the control of gaming in this state.
(3) The executive director may conduct an investigation of the applicant and the governmental authority responsible for regulation of the applicant. The executive director shall require the applicant to pay the executive director's anticipated expenses for such an investigation, and may, after completing such an investigation, charge the applicant any amount necessary to cover an underpayment of the actual expenses.
SECTION 129. Section 75-76-253, Mississippi Code of 1972, is brought forward as follows:
75-76-253. In determining whether to recommend that the commission approve an application submitted pursuant to Section 75-76-251, the executive director may consider, in addition to all other requirements of this chapter:
(a) Whether the governmental authority in the foreign country has an effective system to regulate the applicant and the relations between the investing public and the applicant and other corporations listed on the exchange;
(b) Whether the system includes:
(i) A requirement that the listed corporations make full disclosure of information to the investing public;
(ii) A requirement that the listed corporations file periodic reports with the governmental authority;
(iii) A method to prevent any manipulation of the prices of securities or any employment of deceptive or misleading devices; and
(iv) A restriction on margins to prevent any excessive use of credit for the purchase or carrying of securities listed on the exchange;
(c) The availability of means by which the commission or the executive director may obtain adequate information from the governmental authority in the foreign country concerning the applicant's activities and/or supervision of the gaming activities of the corporate or limited partnership gaming licensee;
(d) Such other matters as the executive director or the commission finds it necessary to consider to protect regulated gaming in Mississippi. The executive director may recommend the rejection of any such application without a hearing.
SECTION 130. Section 75-76-255, Mississippi Code of 1972, is brought forward as follows:
75-76-255. (1) If a corporation or limited partnership applying for or holding a state gaming license is or becomes owned in whole or in part or controlled by a publicly traded corporation, such publicly traded corporation must:
(a) Maintain a ledger in the principal office of its subsidiary which is licensed to conduct gaming in this state which must:
(i) Reflect the ownership of record of each outstanding share of any class of equity security issued by the publicly traded corporation. The ledger may initially consist of a copy of its latest list of equity security holders and thereafter be maintained by adding a copy of such material it regularly receives from the transfer agent for its equity securities of any class which are outstanding.
(ii) Be available for inspection by the commission or the executive director and his employees at all reasonable times without notice.
(b) Register with the commission and provide the following information to the executive director:
(i) The organization, financial structure and nature of the business of the publicly traded corporation, including the names of all officers, directors and any employees actively and directly engaged in the administration or supervision of the activities of the corporate or limited partnership gaming licensee, and the names, addresses and number of shares held of record by holders of its equity securities.
(ii) The rights and privileges accorded the holders of different classes of its authorized equity securities.
(iii) The terms on which its equity securities are to be, and during the preceding three (3) years have been, offered by the corporation to the public or otherwise initially issued by it.
(iv) The terms and conditions of all its outstanding loans, mortgages, trust deeds, pledges or any other indebtedness or security device, directly relating to the gaming activities of the corporate or limited partnership gaming licensee.
(v) The extent of the equity security holdings of record in the publicly traded corporation of all officers, directors, underwriters and persons owning of record equity securities of any class of the publicly traded corporation, and any payment received by any such person from the publicly traded corporation for each of its three (3) preceding fiscal years for any reason whatsoever.
(vi) Remuneration exceeding Forty Thousand Dollars ($40,000.00) per annum to persons other than directors and officers who are actively and directly engaged in administration or supervision of the gaming activities of the corporate or limited partnership gaming licensee.
(vii) Bonus and profit-sharing arrangements of the publicly traded corporation directly or indirectly relating to the gaming activities of the corporate or limited partnership gaming licensee.
(viii) Management and service contracts of the publicly traded corporation directly or indirectly relating to the gaming activities of the corporate or limited partnership gaming licensee.
(ix) Options existing or from time to time created in respect of its equity securities.
(x) Balance sheets, certified by independent public accountants, for at least the three (3) preceding fiscal years, or if the publicly traded corporation has not been incorporated for a period of three (3) years, balance sheets from the time of its incorporation. These balance sheets may be those filed by it with or furnished by it to the Securities and Exchange Commission.
(xi) Profit and loss statements, certified by independent certified public accountants, for at least three (3) preceding fiscal years, or, if the publicly traded corporation has not been incorporated for a period of three (3) years, profit and loss statements from the time of its incorporation. These profit and loss statements may be those filed by it with or furnished by it to the Securities and Exchange Commission.
(xii) Any further information within the knowledge or control of the publicly traded corporation which either the commission or the executive director may deem necessary or appropriate for the protection of this state or licensed gambling, or both. The commission or the executive director may, in their discretion, make such investigation of the publicly traded corporation or any of its officers, directors, security holders or other persons associated therewith as they deem necessary.
(2) If the publicly traded corporation is a foreign corporation, it must also qualify to do business in this state.
(3) The commission may, at any time and from time to time, by general regulation or selectively, impose on any publicly traded corporation any requirement not inconsistent with law which it may deem necessary in the public interest. Without limiting the generality of the preceding sentence, any such requirement may deal with the same subject matter as, but be more stringent than, the requirements imposed by Sections 75-76-199 through 75-76-265, inclusive.
SECTION 131. Section 75-76-257, Mississippi Code of 1972, is brought forward as follows:
75-76-257. (1) Each officer and employee of a publicly traded corporation who the commission determines is, or is to become, actively and directly engaged in the administration or supervision of, or any other significant involvement with, the activities of the corporate or limited partnership gaming licensee must be found suitable therefor and may be required to be licensed by the commission. Each director of a publicly traded corporation who the commission determines is, or is to become, actively and directly engaged in the administration or supervision of the gaming activities at a licensed gaming establishment of the corporate or limited partnership licensee must be found suitable therefor and may be required to be licensed by the commission.
(2) If any officer, director or employee of a publicly traded corporation required to be licensed or found suitable pursuant to subsection (1) fails to apply for a gaming license or finding of suitability within thirty (30) days after being requested to do so by the executive director, or is denied a license or not found suitable by the commission, or if his license or the finding of his suitability is revoked after appropriate findings by the commission, the publicly traded corporation shall immediately remove that officer or employee from any office or position wherein he is actively and directly engaged in the administration or supervision of, or any other significant involvement with, the activities of the corporate or limited partnership gaming licensee, or shall immediately remove that director from any office or position wherein he is actively and directly engaged in the administration or supervision of the gaming activities of the corporate or limited partnership gaming licensee. If the commission suspends the finding of suitability of any officer, director or employee, the publicly traded corporation shall, immediately and for the duration of the suspension, suspend that officer or employee from performance of any duties wherein he is actively and directly engaged in administration or supervision of, or any other significant involvement with, the activities of the corporate or limited partnership gaming licensee, or immediately and for the duration of the suspension suspend that director from performance of any duties wherein he is actively and directly engaged in administration or supervision of the activities at a licensed gaming establishment of the corporate or limited partnership licensee.
SECTION 132. Section 75-76-259, Mississippi Code of 1972, is brought forward as follows:
75-76-259. (1) Except as provided in subsection (2), after the publicly traded corporation has registered pursuant to this chapter, and while the subsidiary holds a gaming license, the publicly traded corporation shall:
(a) Report promptly to the executive director in writing any change in its officers, directors or employees who are actively and directly engaged in the administration or supervision of the gaming activities of the corporate or limited partnership gaming licensee.
(b) Each year furnish to the executive director a profit and loss statement and a balance sheet of the publicly traded corporation as of the end of the year and, upon request of the executive director therefor, a copy of the publicly traded corporation's federal income tax return within thirty (30) days after the return is filed with the federal government. All profit and loss statements and balance sheets must be submitted within one hundred twenty (120) days after the close of the fiscal year to which they relate and may be those filed by the publicly traded corporation with or furnished by it to the Securities and Exchange Commission.
(c) Mail to the executive director a copy of any statement, or amendment thereto, received from a stockholder or group of stockholders pursuant to Section 13(d) of the Securities Exchange Act of 1934, as amended, within ten (10) days after receiving the statement or amendment thereto, and report promptly to the executive director in writing any changes in ownership of record of its equity securities which indicate that any person has become the owner of record of more than ten percent (10%) of its outstanding equity securities of any class.
(d) Upon request of the executive director, furnish to it a copy of any document filed by the publicly traded corporation with the Securities and Exchange Commission or with any national or regional securities exchange, including documents considered to be confidential in nature, or any document furnished by it to any of its equity security holders of any class.
(2) A publicly traded corporation which was created under the laws of a foreign country shall, instead of complying with subsection (1):
(a) Each year furnish to the executive director a profit and loss statement and a balance sheet of the publicly traded corporation as of the end of the year, and, upon request of the executive director therefor, a copy of the publicly traded corporation's federal income tax return within thirty (30) days after the return is filed with the federal government. All profit and loss statements and balance sheets must be submitted within one hundred twenty (120) days after the close of the fiscal year to which they relate and may be those filed by the publicly traded corporation with or furnished by it to the foreign governmental agency that regulates the sale of its securities.
(b) Mail to the executive director a copy of any statement, or amendment thereto, received from a stockholder or group of stockholders pursuant to law, within ten (10) days after receiving the statement or amendment thereto, and report promptly to the executive director in writing any changes in ownership of record of its equity securities which indicate that any person has become the owner of record of more than ten percent (10%) of its outstanding equity securities of any class.
(c) Upon request of the executive director, furnish to it a copy of any document filed by the publicly traded corporation with the foreign governmental agency that regulates the sale of its securities exchange, including documents considered to be confidential in nature, or any document furnished by it to any of its equity security holders of any class.
SECTION 133. Section 75-76-261, Mississippi Code of 1972, is brought forward as follows:
75-76-261. If any corporate or limited partnership licensee owned or controlled by a publicly traded corporation subject to the provisions of this chapter, or that publicly traded corporation, does not comply with the laws of this state and the regulations of the commission, the commission may, in its discretion, do any one, all or a combination of the following:
(a) Revoke, limit, condition or suspend the gaming license of the corporate or limited partnership licensee; or
(b) Fine the persons involved, the corporate or limited partnership licensee or the publicly traded corporation in accordance with the laws of this state and the regulations of the commission.
SECTION 134. Section 75-76-263, Mississippi Code of 1972, is brought forward as follows:
75-76-263. (1) Each person who acquires, directly or indirectly, beneficial ownership of any voting security in a publicly traded corporation which is registered with the commission may be required to be found suitable if the commission has reason to believe that his acquisition of such ownership would otherwise be inconsistent with the declared policy of this state.
(2) Each person who, individually or in association with others, acquires, directly or indirectly, beneficial ownership of more than five percent (5%) of any class of voting securities of publicly traded corporation registered with the commission, and who is required to report such acquisition to the Securities and Exchange Commission pursuant to Section 13(d)(1), 13(g) or 16(a) of the Securities Exchange Act of 1934, as amended (15 USCS 78m(d)(1), 78m(g) and 78p(a), respectively), shall file a copy of that report, and any amendments thereto, with the commission within ten (10) days after filing that report with the Securities and Exchange Commission.
(3) Each person who, individually or in association with others, acquires, directly or indirectly, the beneficial ownership of more than ten percent (10%) of any class of voting securities of a publicly traded corporation registered with the commission, and who is required to report the acquisition pursuant to Section 13(d)(1), 13(g) or 16(a) of the Securities Exchange Act of 1934, as amended (15 USCS 78m(d)(1), 78m(d)(1), 78m(g) and 78p(a), respectively), must be found suitable by the commission.
(4) A person who acquires beneficial ownership of any voting security in a publicly traded corporation created under the laws of a foreign country which is registered with the commission shall file such reports and is subject to such a finding of suitability as the commission may prescribe.
(5) Any person required by the commission or by this section to be found suitable shall:
(a) Apply for a finding of suitability within thirty (30) days after the executive director requests that he do so; and
(b) Together with the application, deposit with the State Tax Commission a sum of money which, in the opinion of the executive director, will be adequate to pay the anticipated costs and charges incurred in the investigation and processing of the application, and deposit such additional sums as are required by the executive director to pay final costs and charges.
(6) Any person required by the commission or this section to be found suitable by the commission shall not hold directly or indirectly the beneficial ownership of any voting security of a publicly traded corporation which is registered with the commission beyond that period of time prescribed by the commission.
(7) The violation of subsection (5) or (6) is a misdemeanor.
SECTION 135. Section 75-76-265, Mississippi Code of 1972, is brought forward as follows:
75-76-265. If any person who is required by or pursuant to this chapter to be licensed or found suitable because of his connection with a corporate licensee, holding company or intermediary company, including a publicly traded corporation, fails to apply for a license or a finding of suitability, or if his license or finding of suitability is revoked, the corporate licensee, holding company, intermediary company or any person who directly or indirectly controls, is controlled by or is under common control with the corporate licensee, holding company or intermediary company shall not, after receipt of written notice from the commission:
(a) Pay him any remuneration for any service relating to the activities of a corporate licensee, except for amounts due for services rendered before the date of receipt of notice of such action by the commission. Any contract or agreement for personal services or the conduct of any activity at a licensed gaming establishment between a former employee whose employment was terminated because of failure to apply for a license or a finding of suitability, denial of a license or finding of suitability, or revocation of a license or a finding of suitability, or any business enterprise under the control of that employee and the corporate licensee, holding or intermediary company or registered publicly traded corporation is subject to termination. Every such agreement shall be deemed to include a provision for its termination without liability on the part of the licensee upon a finding by the commission that the business or any person associated therewith is unsuitable to be associated with a gaming enterprise. Failure expressly to include such a condition in the agreement is not a defense in any action brought pursuant to this section to terminate the agreement.
(b) Enter into any contract or agreement with him or with a business organization under his control which involves the operations of a corporate licensee, without the prior approval of the executive director.
(c) Employ him in any position involving the activities of a corporate licensee without prior approval of the executive director.
SECTION 136. Section 75-76-267, Mississippi Code of 1972, is brought forward as follows:
75-76-267. (1) Conviction by a court of competent jurisdiction of a person for a violation of, an attempt to violate, or a conspiracy to violate any of the provisions of this chapter shall act as an immediate revocation of all licenses which have been issued to the violator, and, in addition, the court may, upon application of the district attorney of the county or of the commission, order that no new or additional license under this chapter be issued to the violator, or be issued to any person for the room or premises in which the violation occurred, for one (1) year after the date of the revocation.
(2) Any person who willfully fails to report, pay or truthfully account for and pay over any license fee or tax imposed by the provisions of this chapter, or willfully attempts in any manner to evade or defeat any such license fee, tax or payment thereof, shall be punished by commitment to the custody of the Department of Corrections for not less than one (1) year nor more than six (6) years, or by a fine of not more than Five Thousand Dollars ($5,000.00), or by both fine and imprisonment.
(3) Except as provided in subsection (4), any person who willfully violates, attempts to violate, or conspires to violate any of the provisions of subsection (1) of Section 75-76-57, shall be punished by commitment to the custody of the Department of Corrections for not less than one (1) year nor more than twenty (20) years, by a fine of not more than Fifty Thousand Dollars ($50,000.00), or by both fine and imprisonment.
(4) A licensee who puts additional games or slot machines into play or displays additional games or slot machines in a public area without first obtaining all required licenses and approval is subject only to the penalties provided in Sections 75-76-93 and 75-76-103 and in any applicable ordinance of the county or municipality.
(5) The violation of any of the provisions of this chapter, the penalty for which is not specifically fixed in this chapter, is a misdemeanor.
SECTION 137. Section 75-76-269, Mississippi Code of 1972, is brought forward as follows:
75-76-269. For the purposes of Sections 75-76-271 through 75-76-277:
(a) "Foreign gaming" means any gaming operations outside this state.
(b) "Licensee" means a person who:
(i) Is licensed or required to be licensed pursuant to Section 75-76-57 or 75-76-63; or
(ii) Is or is required to be licensed, registered or found suitable pursuant to Sections 75-76-199 through 75-76-265, inclusive; or
(iii) Directly or through one or more intermediaries controls, is controlled by or is under common control with a person described in subsection (i) or (ii).
SECTION 138. Section 75-76-271, Mississippi Code of 1972, is brought forward as follows:
75-76-271. (1) Except as provided in subsections (2), (3) and (5), no licensee may be involved in foreign gaming without the prior approval of the commission, acting upon a recommendation of the executive director. Any approval granted under this section is a privilege which may be revoked, suspended, conditioned, limited or restricted by the commission at any time.
(2) The commission may, based on such factors as it deems relevant, grant preliminary approval to a licensee for involvement in foreign gaming. Any preliminary approval granted pursuant to this subsection may be revoked, suspended, conditioned, limited or restricted by the commission at any time.
(3) Approval of the commission is not required if:
(a) The licensee does not own more than five percent (5%) beneficial interest in any class of securities of a corporation incorporated under the laws of any state of the United States which is a publicly traded corporation as defined in Section 75-76-199; and
(b) The licensee is not able to significantly control or influence the corporation.
(4) If it finds that approval is necessary to effectuate the purposes of this chapter, the commission may, by giving notice of its decision to the licensee, require that a licensee who is otherwise exempt under subsection (3) obtain approval as required by subsection (1).
(5) The commission may waive, either selectively or by general regulation, one or more of the requirements of Sections 75-76-269 through 75-76-277, inclusive, if it makes a written finding that the waiver is consistent with the public policy of this state concerning gaming.
SECTION 139. Section 75-76-273, Mississippi Code of 1972, is brought forward as follows:
75-76-273. (1) A licensee seeking approval to participate in foreign gaming shall apply to the executive director in writing, under oath, supplying any information and supporting data pertaining to himself and to the foreign gaming operations which the executive director and the commission require.
(2) A licensee who applies for approval agrees by his application to conduct his foreign gaming operations in accordance with the standards of honesty and integrity required for gaming activities in this state.
(3) The licensee shall submit data showing that the foreign gaming operations will be lawfully conducted in the foreign jurisdiction, and that the licensee's involvement will pose no unreasonable threat to gaming control in Mississippi.
(4) The executive director may conduct investigations concerning the application and submit recommendations to the commission. The executive director may require the applicant to pay anticipated costs of an investigation in advance, and shall refund overpayments and charge and collect amounts to cover underpayments of actual costs after the completion of the investigation.
SECTION 140. Section 75-76-275, Mississippi Code of 1972, is brought forward as follows:
75-76-275. (1) The executive director and the commission shall consider without limitation the following factors in deliberating the granting or denial of approval to conduct foreign gaming operations:
(a) The means, including agreements with foreign jurisdictions, for the commission and the executive director to obtain adequate access to information pertaining to the gaming operations in which the licensee seeks to be involved, and pertaining to any associate of the licensee in the foreign gaming operations.
(b) Assurance that the licensee and his associates in the foreign gaming operations will recognize and abide by the conditions and restrictions imposed upon approval of participation.
(c) Assurance that the right of Mississippi to collect license fees will be adequately protected through an effective accounting system designed to prevent the undetected employment of techniques to avoid payment.
(d) Assurance that the relationship of the licensee with any associate will pose no unreasonable threat to the interest of the State of Mississippi in regulating the gaming industry within the state.
(e) Other factors which are found to be relevant to the adequate protection of state-regulated gaming in Mississippi.
(2) The commission may impose conditions upon any approval of participation in foreign gaming operations, including without limitation:
(a) The continuation of any factor listed in subsection (1) or any other factor considered relevant by the commission.
(b) Requirements for internal accounting, administrative and managerial controls, including evidence of those controls to be filed with the commission or maintained in the principal office of the licensee in Mississippi and made available to the commission and the executive director and commission or their agents for examination and copying as requested.
(c) Requirements for reports found necessary by the executive director or the commission.
(d) Requirements for onsite audits to be conducted at the licensee's expense by independent certified public accountants, or their equivalent, who are acceptable to the executive director or the commission.
(e) Requirements for disclosure and reporting of changes in beneficial ownership or control of any interest in a foreign gaming operation, including interest of the licensee and of others.
(f) Requirements for onsite inspections at the expense of the licensee of foreign gaming operations by the executive director or the commission or their representatives.
SECTION 141. Section 75-76-277, Mississippi Code of 1972, is brought forward as follows:
75-76-277. A licensee who continues participation in foreign gaming operations after an order of the commission terminating approval engages in an unsuitable method of operation and may be disciplined by the commission.
SECTION 142. Section 75-76-279, Mississippi Code of 1972, is brought forward as follows:
75-76-279. (1) From and after June 29, 1990, any cruise vessel or vessel which is licensed under the provisions of this chapter and which is used for gambling games, as determined by the Tax Commission, shall be exempt from all ad valorem taxes through June 30, 1991.
(2) On or before December 1, 1990, the State Tax Commission shall report to the Legislature its recommendation for an equitable method of imposing a tax upon the cruise vessels and vessels described in subsection (1).
SECTION 143. Section 75-76-281, Mississippi Code of 1972, is brought forward as follows:
75-76-281. No elected or appointed official shall derive any pecuniary benefit, directly or indirectly, other than compensation and any other benefits authorized by law, as a result of such elected or appointed official's duties under this chapter. Any person convicted of a violation of this section shall be punished pursuant to the provisions of Article 3, Chapter 4, Title 25, Mississippi Code of 1972.
SECTION 144. Section 75-76-301, Mississippi Code of 1972, is brought forward as follows:
75-76-301. It is unlawful for any person:
(a) To alter or misrepresent the outcome of a game or other event on which wagers have been made after the outcome is made sure but before it is revealed to the players.
(b) To place, increase or decrease a bet or to determine the course of play after acquiring knowledge, not available to all players, of the outcome of the game or any event that affects the outcome of the game or that is the subject of the bet or to aid anyone in acquiring such knowledge for the purpose of placing, increasing or decreasing a bet or determining the course of play contingent upon that event or outcome.
(c) To claim, collect or take, or attempt to claim, collect or take, money or anything of value in or from a gambling game, with intent to defraud, without having made a wager contingent thereon, or to claim, collect or take an amount greater than the amount won.
(d) Knowingly to entice or induce another to go to any place where a gambling game is being conducted or operated in violation of the provisions of this chapter, with the intent that the other person play or participate in the gambling game.
(e) To place or increase a bet after acquiring knowledge of the outcome of the game or other event that is the subject of the bet, including past-posting and pressing bets.
(f) To reduce the amount wagered or cancel the bet after acquiring knowledge of the outcome of the game or other event that is the subject of the bet, including pinching bets.
(g) To manipulate, with the intent to cheat, any component of a gaming device in a manner contrary to the designed and normal operational purpose for the component, including, but not limited to, varying the pull of the handle of a slot machine, with knowledge that the manipulation affects the outcome of the game or with knowledge of any event that affects the outcome of the game.
SECTION 145. Section 75-76-303, Mississippi Code of 1972, is brought forward as follows:
75-76-303. It is unlawful for any person at a licensed gaming establishment to use, or possess with the intent to use, any device to assist:
(a) In projecting the outcome of the game;
(b) In keeping track of the cards played;
(c) In analyzing the probability of the occurrence of an event relating to the game; or
(d) In analyzing the strategy for playing or betting to be used in the game, except as permitted by the commission.
SECTION 146. Section 75-76-305, Mississippi Code of 1972, is brought forward as follows:
75-76-305. (1) It is unlawful for any licensee, employee or other person to use counterfeit chips in a gambling game.
(2) It is unlawful for any person, in playing or using any gambling game designed to be played with, receive or be operated by chips or tokens approved by the commission or by lawful coins of the United States of America:
(a) Knowingly to use other than chips or tokens approved by the commission or lawful coins, legal tender of the United States of America, or to use coins not of the same denomination as the coins intended to be used in that gambling game; or
(b) To use any device or means to violate the provisions of this chapter.
(3) It is unlawful for any person, not a duly authorized employee of a licensee acting in furtherance of his employment within an establishment, to have on his person or in his possession on or off the premises of any licensed gaming establishment any device intended to be used to violate the provisions of this chapter.
(4) It is unlawful for any person, not a duly authorized employee of a licensee acting in furtherance of his employment within an establishment, to have on his person or in his possession on or off the premises of any licensed gaming establishment any key or device known to have been designed for the purpose of and suitable for opening, entering or affecting the operation of any gambling game, drop box or any electronic or mechanical device connected thereto, or for removing money or other contents therefrom.
(5) It is unlawful for any person to have on his person or in his possession any paraphernalia for manufacturing slugs. As used in this subsection, "paraphernalia for manufacturing slugs" means the equipment, products and materials that are intended for use or designed for use in manufacturing, producing, fabricating, preparing, testing, analyzing, packaging, storing or concealing a counterfeit facsimile of the chips or tokens approved by the commission or lawful coins of the United States, the use of which is unlawful pursuant to subsection (2) of this section. The term includes, but is not limited to:
(a) Metal or metal alloys;
(b) Molds, forms or similar equipment capable of producing a likeness of a gaming token or United States coin;
(c) Melting pots or other receptacles;
(d) Torches; and
(e) Tongs, trimming tools or other similar equipment.
(6) Possession of more than one (1) of the devices, equipment, products or materials described in this section permits a rebuttable inference that the possessor intended to use them for cheating.
SECTION 147. Section 75-76-307, Mississippi Code of 1972, is brought forward as follows:
75-76-307. It is unlawful for any person, whether he is an owner or employee of or a player in an establishment, to cheat at any gambling game.
SECTION 148. Section 75-76-309, Mississippi Code of 1972, is brought forward as follows:
75-76-309. (1) It is unlawful to manufacture, sell or distribute any cards, chips, dice, game or device that is intended to be used to violate any provision of this chapter.
(2) It is unlawful to mark, alter or otherwise modify any associated equipment or gaming device in a manner that:
(a) Affects the result of a wager by determining win or loss; or
(b) Alters the normal criteria of random selection, which affects the operation of a game or which determines the outcome of a game.
(3) It is unlawful for any person to instruct another in cheating or in the use of any device for that purpose, with the knowledge or intent that the information or use so conveyed may be employed to violate any provision of this chapter.
SECTION 149. Section 75-76-311, Mississippi Code of 1972, is brought forward as follows:
75-76-311. (1) In addition to any other penalty provided in this chapter, any person who violates any provision of Sections 75-76-301 through 75-76-313, shall be punished:
(a) For the first offense, by imprisonment in the State Penitentiary for not more than two (2) years, or by a fine of not more than Ten Thousand Dollars ($10,000.00), or by both such fine and imprisonment.
(b) For a second or subsequent violation of any of these provisions, by imprisonment in the State Penitentiary for not more than ten (10) years, and may be further punished by a fine of not more than Ten Thousand Dollars ($10,000.00).
(2) In addition to any other penalty provided in this chapter, any person who attempts, or two (2) or more persons who conspire, to violate any provision of Sections 75-76-301 through 75-76-313 each shall be punished by imposing the penalty provided in subsection (1) of this section for the completed crime, whether or not he personally played any gambling game or used any prohibited device.
SECTION 150. Section 75-76-313, Mississippi Code of 1972, is brought forward as follows:
75-76-313. If any person shall commit or attempt to commit a violation of any provision of Sections 75-76-301 through 75-76-313, any officer, employee or agent of a licensee or any law enforcement officer, acting in good faith and upon probable cause based upon reasonable grounds therefor, may question such person in a reasonable manner for the purpose of ascertaining whether or not such person should be charged with a violation of Sections 75-76-301 through 75-76-313. The questioning of a person by an officer, employee or agent of a licensee or by a law enforcement officer shall not render the licensee, its officer, its employee or its agent, or a law enforcement officer, civilly liable for slander, false arrest, false imprisonment, malicious prosecution, unlawful detention or otherwise in any case where the licensee's officer, employee or agent, or the law enforcement officer, is acting in good faith and upon reasonable grounds to believe that the person questioned is committing or attempting to commit a violation of Sections 75-76-301 through 75-76-313.
SECTION 151. This act shall take effect and be in force from and after July 1, 2004.