House Bill 718

(As Passed the House)

AN ACT TO AMEND SECTION 97-33-57, MISSISSIPPI CODE OF 1972, TO PROVIDE ADDITIONAL POWERS OF THE MISSISSIPPI GAMING COMMISSION WITH RESPECT TO THE REGULATION OF CERTAIN LICENSEES AND APPLICANTS FOR BINGO LICENSES UNDER THE MISSISSIPPI CHARITABLE BINGO LAW; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 97-33-57, Mississippi Code of 1972, is amended as follows:

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

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

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

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

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

(3) No license for holding, operating or conducting bingo games that is issued under Sections 97-33-51 through 97-33-203 shall be effective for more than three (3) calendar years.

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

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

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

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

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

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

(6) (a) In addition to any other powers and duties granted under Sections 97-33-51 through 97-33-203, the commission shall have the following powers regarding those bingo licensees and license applicants other than those described in paragraph (b) of this subsection (6).

(i) To require as a precondition to licensure that an applicant submit plans to the commission, and to require that the bingo licensee submit plans on an annual basis to the commission, showing: the financial support that the applicant intends to provide for the benefit of the charity related to the purpose for which the charitable organization is created, including the requirement that at least fifteen percent (15%) of the net proceeds from a bingo game conducted by the applicant or licensee, as the case may be, shall be expended for the benefit of that charity in the county in which the bingo game was conducted; and the other expenses it expects to incur with respect to the operation of bingo games and the operation of programs for the support of such charity.

(ii) To audit the flow of funds, whether gross proceeds or net proceeds, from the bingo licensee to any other entity that has one or more officers who are also officers of the governing body of the bingo licensee.

(iii) To audit funds that are expended by the bingo licensee in support of the applicable charity, in order to determine the identity of a recipient entity and the uses for which the recipient entity expends the funds.

(iv) To adopt, amend or repeal rules and regulations regarding the level of support that the bingo licensee must provide to the applicable charity and regarding any other matter as may be necessary to carry out the provisions of this paragraph (a). The commission shall comply with the Mississippi Administrative Procedures Law when adopting, amending or repealing any rules and regulations authorized under this subsection (6).

(v) To deny, suspend or revoke the license of the licensee or the application of the applicant, if the licensee or applicant fails to comply with the provisions of this paragraph (a), or any rules or regulations promulgated under this paragraph (a), or fails to make material progress in meeting on an annual basis the requirements of the bingo plans provided for in subparagraph (i) of this paragraph (a).

(vi) To prescribe the amounts of fees as necessary to provide the commission with sufficient revenue to carry out the provisions of this subsection (6), and to collect and deposit those fees into the Charitable Bingo Fund created in Section 97-33-101.

(b) The provisions of this subsection (6) shall not apply to:

(i) A person or entity that has been issued a special license for conducting limited fund-raising bingo games for emergency financial relief under Section 97-33-59;

(ii) A charitable organization that otherwise meets the requirements of this chapter and is a religious organization which has been in existence for ten (10) years or longer, conducts its bingo sessions on premises owned by the religious organization and conducts its bingo sessions solely by active members of the organization, without any person or entity being compensated for operating the sessions;

(iii) A charitable organization that otherwise meets the requirements of this chapter and is a chapter or post domiciled in this state of a nationally chartered organization having a membership composed of former members of the military forces of the United States of America, or members of the Merchant Marine Veterans Association, and conducts its bingo sessions solely by active members of the organization, without any person or entity being compensated for operating the sessions; or

(iv) A charitable organization that otherwise meets the requirements of this chapter, as may be approved by the commission, and conducts its bingo sessions solely by active members of the organization and does not contract with and compensate another person or entity to conduct or operate its bingo sessions; however, a charitable organization having an active membership composed of persons who are disabled to the extent that those members are physically unable to conduct the sessions, or a charitable organization which has obtained an administrative exception under Section 97-33-69, may contract with another person or entity to perform that function and shall be exempt from the provisions of subsection (6) without the requirement of any additional approval by the commission.

SECTION 2. This act shall take effect and be in force from and after July 1, 2010.