MISSISSIPPI LEGISLATURE
2007 Regular Session
To: Gaming
By: Representative Moak
AN ACT TO AMEND SECTIONS 75-76-5, 75-76-7, 75-76-9, 75-76-11, 75-76-13, 75-76-15, 75-76-17, 75-76-21, 75-76-33, 75-76-87, 75-76-89 AND 75-76-101, MISSISSIPPI CODE OF 1972, TO REMOVE OBSOLETE LANGUAGE REFERRING TO THE TIME-LIMITED AUTHORITY POSSESSED BY THE STATE TAX COMMISSION BEFORE 1993 TO REGULATE ACTIVITIES GOVERNED BY THE GAMING CONTROL ACT; TO CONFIRM CERTAIN PROVISIONS OF THE GAMING CONTROL ACT AUTHORIZING SPECIFIC GAMING ACTIVITIES REFERRED TO IN THE ACT; TO CLARIFY DEFINITIONS UNDER THE ACT; TO PROVIDE THAT THE MISSISSIPPI GAMING COMMISSION SHALL ADOPT REGULATIONS PRESCRIBING THE MANNER IN WHICH A GAMING LICENSEE MAY CONDUCT CERTAIN ACTIVITIES AUTHORIZED UNDER THE ACT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 75-76-5, Mississippi Code of 1972, is amended 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" * * * means the * * * Chairman of the Mississippi Gaming Commission.
(e) "Commission" * * * means the * * * Mississippi Gaming Commission.
(f) "Commission member" * * * 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" * * * means the Executive Director of the Mississippi Gaming Commission.
(k) Except as otherwise provided by under this chapter, "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 Chapter 33, Title 97, Mississippi Code of 1972.
The commission shall not be required to recognize any game that is not authorized under this chapter, and 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 or activity that is legal in the state as defined and provided for 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 and for conducting any gaming that is regulated under this chapter by 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 not otherwise authorized under this chapter, 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 2. Section 75-76-7, Mississippi Code of 1972, is amended as follows:
75-76-7. (1) * * * The Mississippi Gaming Commission, consisting of three (3) members, is hereby created.
(2) (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.
(3) 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.
(4) 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 3. Section 75-76-9, Mississippi Code of 1972, is amended as follows:
75-76-9. (1) * * * 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.
(2) The term of each of the members first appointed pursuant to this chapter shall be designated by the Governor.
(3) After the initial appointments, all members shall be appointed for terms of four (4) years from the expiration date of the previous term, except that no member shall serve more than two (2) terms of four (4) years each.
(4) 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.
(5) 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.
(6) Appointments to fill vacancies on the commission shall be for the unexpired term of the member to be replaced.
(7) 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.
(8) Each member of the commission shall serve for the duration of his term and until his successor shall be duly appointed and qualified, except 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.
(9) Each member of the commission is entitled to per diem compensation as provided by Section 25-3-69.
SECTION 4. Section 75-76-11, Mississippi Code of 1972, id amended as follows:
75-76-11. (1) * * * 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.
(2) 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 5. Section 75-76-13, Mississippi Code of 1972, is amended as follows:
75-76-13. (1) * * * 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.
(2) A majority of the members is a quorum of the commission.
SECTION 6. Section 75-76-15, Mississippi Code of 1972, is amended as follows:
75-76-15. (1) * * * The position of Executive Director of the Mississippi Gaming Commission is hereby created.
(2) The * * * 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. * * *
(3) 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.
(4) The executive director must have at least five (5) years of responsible administrative experience in public or business administration or possess broad management skills.
(5) 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.
(6) 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.
(7) 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 7. Section 75-76-17, Mississippi Code of 1972, is amended as follows:
75-76-17. (1) * * * 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 8. Section 75-76-21, Mississippi Code of 1972, is amended 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 such employees of the commission as he deems necessary, subject to the approval of the State Personnel Board, and within the limits of legislative appropriations or authorizations. * * *
SECTION 9. Section 75-76-33, Mississippi Code of 1972, is amended as follows:
75-76-33. (1) The commission * * *, from time to time, shall 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 * * *, without limiting the general powers herein conferred, shall 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) Unless permitted or authorized under any other provision of law or of this chapter, or under any rule, regulation or order issued by the commission pursuant to this chapter, 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 10. Section 75-76-87, Mississippi Code of 1972, is amended 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 or the State Gaming 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 11. Section 75-76-89, Mississippi Code of 1972, is amended as follows:
75-76-89. (1) * * * 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 pursuant to the duly adopted applicable rules and regulations pertaining thereto.
SECTION 12. Section 75-76-101, Mississippi Code of 1972, is amended 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) Except as otherwise permitted or authorized under any provisions of this chapter, or under any rule, regulation or order issued by the commission pursuant to this chapter, 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 13. The commission shall adopt regulations which prescribe the manner in which a licensee may conduct those activities defined in Sections 75-76-5(cc) and 75-76-5(gg). Such activities are authorized by law to be conducted by a licensee under Sections 75-76-55 and 75-76-89, and this section shall confirm the authority provided under Sections 75-76-55 and 75-76-89 and shall expressly authorize a person licensed under this chapter to conduct such activities, notwithstanding any conclusions, interpretations or opinions of the commission made or issued before the effective date of this act, and notwithstanding any court decisions rendered before such date in the State of Mississippi in which deference was accorded to such conclusions, interpretations or opinions of the commission, that may state or suggest that such activities are not lawful under this chapter, provided that such activities are not prohibited by the provisions of any federal law.
SECTION 14. The provisions of Section 13 of this act shall be codified in Chapter 76, Title 75, Mississippi Code of 1972.
SECTION 15. This act shall take effect and be in force from and after July 1, 2007.