House Bill 1268

AN ACT TO AMEND SECTION 27-109-1, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT AFTER JULY 1, 2005, A GAMING LICENSEE MAY CONSTRUCT PERMANENT STRUCTURES UPON WHICH TO PLACE THE VESSEL OR CRUISE VESSEL WHERE THE LEGAL GAMING IS BEING CONDUCTED; TO PROVIDE THAT CERTAIN GAMING LICENSEES MAY CUT OR OTHERWISE EXCAVATE INTO AN AREA WITHIN ONE THOUSAND FEET OF THE LICENSED PREMISES, PROVIDED SUCH CUTTING OR EXCAVATION DOES NOT CROSS ANY EXISTING HIGHWAY, STREET OR OTHER ROADWAY, IN ORDER TO COVER THE AREA WITH WATER FOR THE PURPOSE OF PLACING A CRUISE VESSEL UPON SUCH WATER; TO PROVIDE THAT IF THE AREA CUT OR OTHERWISE EXCAVATED INTO IS NOT TIDELANDS, THE GAMING LICENSEE SHALL PAY THE STATE AN AMOUNT EQUAL TO A LEASE RENTAL PAYMENT ON A COMPARABLE AREA THAT IS A TIDELANDS; TO SPECIFY THAT THESE PROVISIONS SHALL NOT AUTHORIZE ANY FORM OF SHORE-BASED GAMING; TO AMEND SECTION 29-15-9, MISSISSIPPI CODE OF 1972, IN CONFORMITY THERETO; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 27-109-1, Mississippi Code of 1972, is amended as follows:

27-109-1. (1) The provisions of this chapter shall be administered by the State Tax Commission, which shall administer them for the protection of the public and in the public interest in accordance with the policy of this state.

(2) (a) The operator of any cruise vessel or vessel operating within the territorial jurisdiction of the State of Mississippi shall be required to apply for and obtain a privilege license from the State Tax Commission.

(b) For purposes of this chapter, the operator of any cruise vessel or vessel shall be identified as any owner or lessee which is vested with the authority and responsibility to manage daily operations of any such cruise vessel or vessel.

(c) (i) For purposes of this chapter, the term "cruise vessel" shall mean a vessel which complies with all U.S. Coast Guard regulations, having a minimum overall length of one hundred fifty (150) feet and a minimum draft of six (6) feet and which is certified to carry at least two hundred (200) passengers; and the term "vessel" shall mean a vessel having a minimum overall length of one hundred fifty (150) feet. The term "vessel" shall also mean a "cruise vessel" as referred to in Section 27-109-11. For the purposes of a "vessel" as that term is defined in this section, "navigable waters" means any rivers, creeks, bayous or other bodies of water within any county in this state bordering on the Mississippi River that are used or susceptible of being used as an artery of commerce and which either in their natural or improved condition are used or suitable for use as an artery of commerce or are used for the docking or mooring of a vessel, notwithstanding interruptions between the navigable parts of such rivers, creeks, bayous or other bodies of water by falls, shallows, or rapids compelling land carriage.

(ii) For purposes of this subparagraph, the definitions of the words "person" and "gaming license" shall have the meanings ascribed to those words and terms in Section 75-76-5. After July 1, 2005, any person possessing a valid gaming license to conduct legal gaming on a cruise vessel or vessel may construct permanent structures upon which to place the vessel or cruise vessel wherein the licensee offers legal gaming. Such permanent structures shall be included within the meanings of the terms "cruise vessel" and "vessel" under subparagraph (i). In the event that such a gaming licensee constructs permanent structures under this subparagraph, the requirement that a cruise vessel have a minimum draft of six (6) feet shall not apply. In addition, any person possessing a valid gaming license to conduct legal gaming on a cruise vessel whenever such vessel is in the waters within the State of Mississippi, which lie adjacent to the State of Mississippi south of the three (3) most southern counties in the State of Mississippi, and in which the registered voters of the county in which the port is located have not voted to prohibit such betting, gaming or wagering on cruise vessels as provided in Section 19-3-79, may cut or otherwise excavate into an area within one thousand (1,000) feet of such gaming licensee's premises (provided the cutting or excavation does not cross any existing highway, street or other roadway) in order to cover the area with water for the purpose of placing the cruise vessel upon such water. If the area cut or otherwise excavated into is not tidelands for the purposes of Section 29-15-1 et seq., the gaming licensee shall pay the State of Mississippi an amount equal to the lease rental payment on a comparable area that is tidelands. Such payments shall be deposited into the Public Trust Tidelands Fund created under Section 29-15-9. This subparagraph shall not authorize any form of shore-based gaming or the conducting of legal gaming on a vessel or cruise vessel which is not on or above water, as contemplated under subparagraph (i).

(3) The commission and its agents may:

(a) Inspect and examine all premises on the cruise vessel.

(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, and in the presence of the licensee or his agent, respecting all matters affecting the enforcement of the policy or any of the provisions of this chapter.

(4) For the purpose of conducting audits after the cessation of operations by a licensee, the former licensee shall furnish, upon demand of an agent of the commission, 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 one (1) year after the date of the surrender or revocation of his privilege 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.

(5) The commission 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 commission and the executive, supervisory and investigative personnel of the commission have the powers of a peace officer of this state.

(6) The commission, or any of its members, 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 may pay such transportation and other expense of witnesses as it may deem reasonable and proper. Any person making false oath in any matter before the commission is guilty of perjury. The commission, or any member thereof, may appoint hearing examiners who may administer oaths and receive evidence and testimony under oath.

SECTION 2. Section 29-15-9, Mississippi Code of 1972, is amended as follows:

29-15-9. (1) There is created in the State Treasury a special fund to be known as the "Public Trust Tidelands Fund." The fund shall be administered by the Secretary of State as trustee.

(2) Any funds derived from lease rentals of tidelands and submerged lands, except those funds derived from mineral leases, or funds previously specifically designated to be applied to other agencies, shall be transferred to the special fund. However, funds derived from lease rentals may be used to cover the administrative cost incurred by the Secretary of State. Any remaining funds derived from lease rentals shall be disbursed pro rata to the local taxing authorities for the replacement of lost ad valorem taxes, if any. Funds derived from payments made under Section 27-109-1(2)(c)(ii) shall be transferred to the special fund. Any remaining funds shall be disbursed to the commission for new and extra programs of tidelands management, such as conservation, reclamation, preservation, acquisition, education or the enhancement of public access to the public trust tidelands or public improvement projects as they relate to those lands.

(3) Any funds that are appropriated as separate line items in an appropriation bill for tideland programs or projects authorized under this section for political subdivisions or other agencies shall be disbursed as provided in this subsection.

(a) The Department of Marine Resources shall make progress payments in installments based on the work completed and material used in the performance of a tidelands project only after receiving written verification from the political subdivision or agency. The political subdivision or agency shall submit verification of the work completed or materials in such detail and form that the department may require.

(b) The Department of Marine Resources shall make funds available for the purpose of using such funds as a match or leverage for federal or other funds that are available for the designated tidelands project.

SECTION 3. This act shall take effect and be in force from and after July 1, 2005.