MISSISSIPPI LEGISLATURE

2018 Regular Session

To: Gaming; Ways and Means; Rules

By: Representative Barnett

House Bill 1255

AN ACT TO REQUIRE THE MISSISSIPPI GAMING COMMISSION TO ESTABLISH A STATE LOTTERY TO BE ADMINISTERED BY THE MISSISSIPPI GAMING COMMISSION; TO PROVIDE THAT PROCEEDS SHALL ANNUALLY BE DEPOSITED INTO A SPECIAL FUND FOR THE HOPE SCHOLARSHIP; TO AMEND SECTIONS 67-1-71, 75-76-3, 75-76-5, 97-33-9, 97-33-11, 97-33-13, 97-33-21, 97-33-23, 97-33-31, 97-33-33, 97-33-35, 97-33-37, 97-33-39, 97-33-41, 97-33-43, 97-33-45, 97-33-47 AND 97-33-49, MISSISSIPPI CODE OF 1972, IN CONFORMITY TO THE PROVISIONS OF THIS ACT; TO ESTABLISH THE "MISSISSIPPI HOPE SCHOLARSHIP ACT OF 2018," FOR THE PURPOSE OF CREATING A SCHOLARSHIP AND MENTORING PROGRAM FOCUSED ON INCREASING THE NUMBER OF STUDENTS THAT ATTEND COLLEGE IN THE STATE OF MISSISSIPPI; TO PROVIDE STUDENTS WITH A LAST-DOLLAR SCHOLARSHIP TO COVER THE COST OF TUITION AND MANDATORY FEES NOT COVERED BY PELL GRANT OR ANY OTHER STATE SCHOLARSHIP OR STATE STUDENT ASSISTANCE FUNDS; TO PROVIDE FOR THE USE OF A MISSISSIPPI HOPE SCHOLARSHIP AT ANY PUBLIC OR PRIVATE POSTSECONDARY INSTITUTION IN THE STATE OR OTHER ELIGIBLE INSTITUTION OFFERING AN ASSOCIATE'S DEGREE PROGRAM; TO PROVIDE THAT THE MISSISSIPPI HOPE SCHOLARSHIP SHALL BE ADMINISTERED BY  THE MISSISSIPPI COMMUNITY COLLEGE BOARD; TO PROVIDE FOR THE FUNDING AND CREATION OF THE MISSISSIPPI HOPE SCHOLARSHIP; TO PRESCRIBE THE CRITERIA TO BE USED IN DETERMINING THE AMOUNT OF ASSISTANCE ELIGIBLE STUDENTS MAY RECEIVE UNDER THE MISSISSIPPI HOPE SCHOLARSHIP IN ANY GIVEN ACADEMIC YEAR; AND FOR RELATED PURPOSES.

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

     SECTION 1.  As used in this act, the following words and phrases have the meanings ascribed in this section unless the context clearly indicates otherwise:

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

          (b)  "Distributor" means any person authorized by the Mississippi Gaming Commission to distribute lottery tickets to retailers.  A person possessing a gaming license issued under Chapter 76, Title 75, Mississippi Code of 1972, may be a distributor if located in a county in which legal gaming has been approved.

          (c)  "Lottery" means any activity approved by the Mississippi Gaming Commission in which:

              (i)  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;

              (ii)  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;

              (iii)  The holder or holders of the winning chance or chances are to receive a prize or something of valuable consideration; and

              (iv)  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.

          (d)  "Person" means any association, corporation, firm, partnership, trust or other form of business association as well as a natural person.

          (e)  "Retailer" means any person authorized by the Mississippi Gaming Commission to sell lottery tickets to the public.  A person possessing a gaming license issued under Chapter 76, Title 75, Mississippi Code of 1972, may be a retailer if located in a county in which legal gaming has been approved.

     SECTION 2.  (1)  The Mississippi Gaming Commission shall establish a state lottery to be administered by the Mississippi Gaming Commission, which shall include multi-state lottery games owned by a multi-state association or consortium.  The commission may promulgate such reasonable rules and regulations as may be necessary to implement this section.

     (2)  Proceeds of the lottery created under subsection (1) of this section shall be deposited into a special fund in the State Treasury for the Hope Scholarship created in Sections 21 through 29 of this act.

     SECTION 3.  Section 67-1-71, Mississippi Code of 1972, is amended as follows:

     67-1-71.  The department may revoke or suspend any permit issued by it for a violation by the permittee of any of the provisions of this chapter or of the regulations promulgated under it by the department.

     Permits must be revoked or suspended for the following causes:

          (a)  Conviction of the permittee for the violation of any of the provisions of this chapter;

          (b)  Willful failure or refusal by any permittee to comply with any of the provisions of this chapter or of any rule or regulation adopted pursuant thereto;

          (c)  The making of any materially false statement in any application for a permit;

          (d)  Conviction of one or more of the clerks, agents or employees of the permittee, of any violation of this chapter upon the premises covered by such permit within a period of time as designated by the rules or regulations of the department;

          (e)  The possession on the premises of any retail permittee of any alcoholic beverages upon which the tax has not been paid;

          (f)  The willful failure of any permittee to keep the records or make the reports required by this chapter, or to allow an inspection of such records by any duly authorized person;

          (g)  The suspension or revocation of a permit issued to the permittee by the federal government, or conviction of violating any federal law relating to alcoholic beverages;

          (h)  The failure to furnish any bond required by Section 27-71-21 within fifteen (15) days after notice from the department; and

          (i)  The conducting of any form of illegal gambling on the premises of any permittee or on any premises connected therewith or the presence on any such premises of any gambling device with the knowledge of the permittee.

     The provisions of this paragraph (i) of this section shall not apply to * * *gambling or the presence of any gambling devices, with knowledge of the permittee, on board a cruise vessel 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, on any vessel as defined in Section 27‑109‑1 whenever such vessel is on the Mississippi River or navigable waters within any county bordering on the Mississippi River:  the conducting of legal gaming by a person having a gaming license issued under Chapter 76, Title 75, Mississippi Code of 1972, or the operation of the lottery required by Section 2 of this act.  The department may, in its discretion, issue on-premises retailer's permits to a common carrier of the nature described in this paragraph.

     No permit shall be suspended or revoked until after the permittee has been provided reasonable notice of the charges against him for which suspension or revocation is sought and the opportunity to a hearing before the Board of Tax Appeals to contest such charges and the suspension or revocation proposed.  Opportunity to a hearing is provided without an actual hearing if the permittee, after receiving reasonable notice, including notice of his right to a hearing, fails to timely request a hearing.  The permittee may also at any time waive his rights to reasonable notice and/or to the opportunity to a hearing by agreeing to a suspension or revocation offered by the department.  Notwithstanding the requirement above that a permit may not be suspended without notice and opportunity to a hearing, sales of alcoholic beverages by a permittee under a permit for which the bond under Section 27-71-21 has been cancelled shall be suspended from and after issuance of the notice provided in subsection (h) above and shall continue to be suspended until the bond is reinstated, a new bond is posted or sufficient cash or securities as provided under Section 27-71-21 are deposited with the State Treasurer for this permit.

     In addition to the causes specified in this section and other provisions of this chapter, the department shall be authorized to suspend the permit of any permit holder for being out of compliance with an order for support, as defined in Section 93-11-153.  The procedure for suspension of a permit for being out of compliance with an order for support, and the procedure for the reissuance or reinstatement of a permit suspended for that purpose, and the payment of any fees for the reissuance or reinstatement of a permit suspended for that purpose, shall be governed by Section 93-11-157 or 93-11-163, as the case may be.  If there is any conflict between any provision of Section 93-11-157 or 93-11-163 and any provision of this chapter, the provisions of Section 93-11-157 or 93-11-163, as the case may be, shall control.

     SECTION 4.  Section 75-76-3, Mississippi Code of 1972, is amended 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 lotteries and gaming as the occasion arises.  The Legislature derives its power to legislate upon lotteries and 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 lotteries and gaming is important in order that * * *gaming is those activities are conducted honestly and competitively, that the rights of the creditors of licensees are protected and that * * * those activities are 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 lotteries and licensed gaming establishments and the manufacture or distribution of gambling devices and equipment.

          (c)  All establishments where lotteries or gaming * * *is, or both, are conducted and * * *where gambling devices are operated, and manufacturers, sellers and distributors of certain * * *  gamblinglottery and gaming 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 and any entity established to conduct a lottery, to the extent practicable, shall 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 5.  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 except when used in the term "Chairman of the State Tax Commission."  "Chairman of the State Tax Commission" or "commissioner" means the Commissioner of Revenue of the Department of Revenue.

          (e)  "Commission" or "Mississippi Gaming 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 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, or the illegal gambling activities described in Section 97-33-8, or the lottery authorized by Section 2 of this act.

     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 collegiate or professional sporting events or athletic events, by any system or method of wagering other than the system known as the "pari-mutuel method of wagering."

          (hh)  "State Tax Commission" or "department" means the Department of Revenue of the State of Mississippi.

          (ii)  "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.

          (jj)  "Vessel" or "cruise vessel" shall have the meanings ascribed to such terms under Section 27-109-1.

          (kk)  "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.

          (ll)  "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.

          (mm)  "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.

          (nn)  "Promotional activity" means an activity or event conducted or held for the purpose of promoting or marketing the individual licensed gaming establishment that is engaging in the promotional activity.  The term includes, but is not limited to, a game of any kind other than as defined in paragraph (k) of this section, a tournament, a contest, a drawing, or a promotion of any kind.

     SECTION 6.  Section 97-33-9, Mississippi Code of 1972, is amended as follows:

     97-33-9.  Except as otherwise provided in Section 97-33-8, if any person shall be guilty of keeping or exhibiting any illegal game or gaming table commonly called A.B.C. or E.O. roulette or rowley-powley, or rouge et noir, roredo, keno, monte, or any faro-bank, or other game, gaming table, or bank of the same or like kind or any other kind or description under any other name whatever, or shall be in any manner either directly or indirectly interested or concerned in any gaming tables, banks, or games, either by furnishing money or articles for the purpose of carrying on the same, being interested in the loss or gain of said table, bank or games, or employed in any manner in conducting, carrying on, or exhibiting said gaming tables, games, or banks, every person so offending and being thereof convicted, shall be fined not less than Twenty-five Dollars ($25.00) nor more than Two Thousand Dollars ($2,000.00), or be imprisoned in the county jail not longer than two (2) months, or by both such fine and imprisonment, in the discretion of the court.  Nothing in this section shall apply to any person who owns, possesses, controls, installs, procures, repairs or transports any legal gaming or gambling device, machine or equipment in accordance with subsection (4) of Section 97-33-7 or Section 75-76-34 or to the operation of the lottery established by Section 2 of this act.

     SECTION 7.  Section 97-33-11, Mississippi Code of 1972, is amended as follows:

     97-33-11.  It shall not be lawful for any association of persons of the character commonly known as a "club," whether such association be incorporated or not, in any manner, either directly or indirectly, to have any interest or concern in any gambling tables, banks, or games, by means of what is sometimes called a "rake-off" or "take-out," or by means of an assessment upon certain combinations, or hands at cards, or by means of a percentage extracted from players, or an assessment made upon, or a contribution from them, or by any other means, device or contrivance whatsoever.  It shall not be lawful for such an association to lend or advance money or any other valuable thing to any person engaged or about to engage in playing any game of chance prohibited by law, or to become responsible directly or indirectly for any money or other valuable thing lost, or which may be lost, by any player in any such game.  If any such association shall violate any of the provisions of this section each and every member thereof shall be guilty of a misdemeanor and, upon conviction thereof, shall be fined in a sum not more than Five Hundred Dollars ($500.00); and unless such fine and costs be immediately paid, shall be imprisoned in the county jail for not less than five (5) nor more than twenty (20) days.  Each grand jury shall cause such of the members of such an association as it may choose to appear before them and submit to examination touching the observance or nonobservance by such association of the provisions hereof.

     The provisions of this section do not apply to the operation of the lottery established by Section 2 of this act.

     SECTION 8.  Section 97-33-13, Mississippi Code of 1972, is amended as follows:

     97-33-13.  Any owner, lessee, or occupant of any outhouse or other building, who shall knowingly permit or suffer any of the before mentioned tables, banks, or games, or any other game prohibited by law, to be carried on, kept, or exhibited in his said house or other building, or on his lot or premises, being thereof convicted, shall be fined not less than One Hundred Dollars ($100.00) nor more than Two Thousand Dollars ($2,000.00).

     The provisions of this section do not apply to the operation of the lottery established by Section 2 of this act.

     SECTION 9.  Section 97-33-21, Mississippi Code of 1972, is amended as follows:

     97-33-21.  Any person of full age who shall bet any money or thing of any value with a minor, or allow a minor to bet at any game or gaming-table exhibited by him, or in which he is interested or in any manner concerned, on conviction thereof, shall be fined not less than Three Hundred Dollars ($300.00) and imprisoned not less than three (3) months.

     The provisions of this section do not apply to a minor who receives as a gift a ticket associated with the lottery established by Section 2 of this act when the ticket has been purchased by a person who is eighteen (18) years of age or older.

     SECTION 10.  Section 97-33-23, Mississippi Code of 1972, is amended as follows:

     97-33-23.  Any person of full age who shall bet any money or thing of value with a minor, knowing such minor to be under the age of twenty-one (21) years, or allowing any such minor to bet at any game or games, or at any gaming table exhibited by him, or in which he is interested or in any manner concerned, on conviction thereof, shall be punished by imprisonment in the Penitentiary not exceeding two (2) years.

     The provisions of this section do not apply to a minor who receives as a gift a ticket associated with the lottery established by Section 2 of this act when the ticket has been purchased by a person who is eighteen (18) years of age or older.

     SECTION 11.  Section 97-33-31, Mississippi Code of 1972, is amended as follows:

     97-33-31.  If any person, in order to raise money for himself or another, or for any purpose whatever, shall publicly or privately put up a lottery to be drawn or adventured for, he shall, on conviction, be imprisoned in the Penitentiary not exceeding five (5) years.

     The provisions of this section do not apply to the operation of the lottery established by Section 2 of this act.

     SECTION 12.  Section 97-33-33, Mississippi Code of 1972, is amended as follows:

     97-33-33.  If any person shall in any way advertise any lottery whatever, no matter where located, or shall knowingly have in his possession any posters or other lottery advertisements of any kind * * *‑‑, save a regularly issued newspaper containing such an advertisement without intent to circulate the same as an advertisement * * *‑‑, he shall, on conviction, be fined not less than Twenty-five Dollars ($25.00) nor more than One Hundred Dollars ($100.00), or be imprisoned in the county jail not exceeding three (3) months, or both.

     The provisions of this section do not apply to the operation of the lottery established by Section 2 of this act.

     SECTION 13.  Section 97-33-35, Mississippi Code of 1972, is amended as follows:

     97-33-35.  If any newspaper published or circulated in this state shall contain an advertisement of any lottery whatever, or any matter intended to advertise a lottery, no matter where located, the editor or editors, publisher or publishers, and the owner or owners thereof permitting the same, shall be guilty of a misdemeanor and, on conviction, shall be fined not less than One Hundred Dollars ($100.00) nor more than One Thousand Dollars ($1,000.00), and be imprisoned in the county jail not less than ten (10) days nor more than three (3) months, for each offense.  The issuance of each separate daily or weekly edition of the newspaper that shall contain such an advertisement shall be considered a separate offense.

     The provisions of this section do not apply to the operation of the lottery established by Section 2 of this act.

     SECTION 14.  Section 97-33-37, Mississippi Code of 1972, is amended as follows:

     97-33-37.  If any newsdealer or other person shall, directly or indirectly, sell or offer for sale any newspaper or other publication containing a lottery advertisement, he shall be guilty of a misdemeanor and, upon conviction, shall be fined not less than Ten Dollars ($10.00) or imprisoned not less than ten (10) days, or both.

     The provisions of this section do not apply to the operation of the lottery established by Section 2 of this act.

     SECTION 15.  Section 97-33-39, Mississippi Code of 1972, is amended as follows:

     97-33-39.  If any person shall sell, or offer or expose for sale, any lottery ticket, whether the lottery be in or out of this state, or for or in any other state, territory, district, or country, he shall, on conviction, be fined not less than Twenty-five Dollars ($25.00) nor more than One Hundred Dollars ($100.00), or imprisoned in the county jail not less than ten (10) days nor more than sixty (60) days, or both.

     The provisions of this section do not apply to the operation of the lottery established by Section 2 of this act.

     SECTION 16.  Section 97-33-41, Mississippi Code of 1972, is amended as follows:

     97-33-41.  If any person shall buy in this state any lottery ticket, whether the lottery be in or out of this state, or of or in any other state, territory, district, or country, he shall, on conviction, be fined not less than Five Dollars ($5.00) nor more than Twenty-five Dollars ($25.00), or be imprisoned in the county jail not exceeding ten (10) days, or both.

     The provisions of this section do not apply to the operation of the lottery established by Section 2 of this act.

     SECTION 17.  Section 97-33-43, Mississippi Code of 1972, is amended as follows:

     97-33-43.  If any railroad company shall suffer or permit the sale of a lottery ticket of any kind on its cars, or at its depots or depot grounds, or by its employees, no matter where the lottery is located, it shall be guilty of a misdemeanor and, on conviction, shall be fined not less than Twenty Dollars ($20.00) nor more than One Hundred Dollars ($100.00) for every such ticket so sold.

     The provisions of this section do not apply to the operation of the lottery established by Section 2 of this act.

     SECTION 18.  Section 97-33-45, Mississippi Code of 1972, is amended as follows:

     97-33-45.  If the owner or owners of any steamboat shall suffer or permit the sale of a lottery ticket of any kind on his or their boat, or by his or their employees, no matter where the lottery is located, he or they shall be guilty of a misdemeanor and shall, on conviction, be punished as prescribed in Section 97-33-43.

     The provisions of this section do not apply to the operation of the lottery established by Section 2 of this act.

     SECTION 19.  Section 97-33-47, Mississippi Code of 1972, is amended as follows:

     97-33-47.  If any person shall act as agent for any lottery or lottery company, no matter where domiciled or located, or if he shall assume to so act as agent, or if he receive any money or other thing for any such lottery or lottery company, or deliver to any person any ticket or tickets, prize or prizes, or other thing from such lottery or lottery company, he shall, on conviction, be fined not less than One Hundred Dollars ($100.00), nor more than Five Hundred Dollars ($500.00), and be imprisoned in the county jail not less than three (3) months nor more than six (6) months.

     The provisions of this section do not apply to the operation of the lottery established by Section 2 of this act.

     SECTION 20.  Section 97-33-49, Mississippi Code of 1972, is amended as follows:

     97-33-49.  Except as otherwise provided in Section 97-33-51, if any person, in order to raise money for himself or another, shall publicly or privately put up or in any way offer any prize or thing to be raffled or played for, he shall, on conviction, be fined not more than Twenty Dollars ($20.00), or be imprisoned not more than one (1) month in the county jail.

     The provisions of this section do not apply to the operation of the lottery established by Section 2 of this act.

     SECTION 21.  Sections 21 through 29 of this act shall be known and may be cited as the "Mississippi HOPE Scholarship Act of 2018."

     SECTION 22.  (1)  The following terms shall have the meaning ascribed in this section, unless the context clearly indicates otherwise:

          (a)  "Continuous enrollment" means a student is enrolled in the fall and spring semesters of a single academic year. Enrollment in summer semester or inter-session terms is not required.

          (b)  "Eligible high school" means:

              (i)  A Mississippi public secondary school;

              (ii)  A private secondary school that is located in this state and is accredited by the State Board of Education or the Mississippi Association of Independent Schools as a secondary school in accordance with the applicable rules and regulations of the respective board or association;

              (iii)  A secondary school operated by the United States Department of Defense on a military base that is located, in whole or in part, in this state;

              (iv)  An out-of-state public secondary school located in a county bordering this state that Mississippi residents are authorized to attend; or

              (v)  An out-of-state boarding school attended by a bona fide Mississippi resident that is accredited by:

                   1.  A regional accrediting association; or

                   2.  A member of the National Association of Independent Schools Commission on Accreditation.

          (c)  "Eligible postsecondary institution" means an institution operated by the Mississippi Community College Board.

          (d)  "FAFSA" means the Free Application for Federal Student Aid.

          (e)  "Full-time equivalent semester" means any semester in which a student is enrolled full time and receives a Mississippi HOPE Scholarship.  A semester in which a part-time student attempts six (6), seven (7) or eight (8) semester hours and receives a Mississippi HOPE Scholarship shall be counted as one-half (1/2) of a full-time equivalent semester.  A semester in which a part-time student attempts nine (9), ten (10) or eleven (11) semester hours and receives a Mississippi HOPE Scholarship shall be counted as three-fourths (3/4) of a full-time equivalent semester.

          (f)  "Full-time student" means a student attending an eligible postsecondary educational institution and enrolled for at least twelve (12) semester hours during each semester of attendance.

          (g)  "Gift aid" means scholarships and grants from any source that do not require repayment, including funds provided through the federal Foster Care Independence Act of 1999 (Public Law No. 106-169), and other similar programs. Student loans and work-study awards shall not be considered gift aid.

          (h)  "Homeschool student" means a student who completed high school in a Mississippi homeschool education program.  For one (1) year immediately preceding completion of high school as a homeschool student, the student shall have been a student in a homeschool.

          (i)  "Resident" means a student as defined by Section 37-103-1, et seq.

     SECTION 23.  (1)  The Mississippi Community College Board shall administer the Mississippi HOPE Scholarship Program for Mississippi residents seeking an associate's degree, certificate or diploma from an eligible postsecondary institution under the following terms and conditions:

          (a)  To be eligible for the scholarship a student shall be admitted to and enrolled full-time in an eligible postsecondary program in the fall term following graduation from an eligible high school, completion of high school as a Mississippi homeschool student, or obtaining a GED diploma; provided, that the student obtains the GED diploma before reaching nineteen (19) years of age.  Exceptions to initial enrollment may be made for extenuating circumstances as provided in rules and regulations promulgated by the Mississippi Community College Board;

          (b)  Students applying for the scholarship shall complete the Mississippi HOPE application in their initial year of enrollment.  Students shall complete the free application for federal student aid (FAFSA) each academic year in which they seek to receive the Mississippi HOPE Scholarship;

          (c)  To continue to receive a Mississippi HOPE Scholarship, a student shall maintain satisfactory academic progress as determined by the rules and regulations promulgated by  the Mississippi Community College Board;

          (d)  Scholarship recipients shall participate in mentoring and community service programs under the rules and regulations promulgated by the Mississippi Community College Board.  The Mississippi Community College Board shall develop the selection and renewal criteria for students and shall have the authority to work with outside organizations to develop the most effective means for delivering the scholarships;

          (e)  Subject to the amounts appropriated by the Legislature, a Mississippi HOPE Scholarship shall be the cost of tuition and mandatory fees at the eligible postsecondary institution attended, less all other gift aid, as defined in Section 22 of this act.  Gift aid shall be credited first to the student's tuition and mandatory fees;

          (f)  A Mississippi HOPE Scholarship student who has an approved medical or personal leave of absence from an eligible postsecondary institution may continue to receive the scholarship upon resuming the student's education at an eligible postsecondary institution so long as the student continues to meet all applicable eligibility requirements.  The sum of all approved leaves of absence shall not exceed six (6) months.  The student shall be eligible for the scholarship until the occurrence of the first of the following events:

              (i)  The student has earned a certificate, diploma or associate degree; or

              (ii)  The sum of the number of years the student attended a postsecondary institution, exclusive of approved leaves of absence, equals two and one-half (2-1/2) years from the date of the student's initial enrollment at an eligible postsecondary institution; and

          (g)  Except for a medical or personal leave of absence, as approved by an eligible postsecondary institution, a Mississippi HOPE Scholarship student shall maintain continuous enrollment at an eligible postsecondary institution.

     (4)  The Mississippi HOPE Scholarship program shall be funded under the following terms and conditions:

          (a)  There is established an endowment for the purpose of funding the Mississippi HOPE Scholarship, which shall be funded from program-generated revenues of the Mississippi Community College Board and shall be invested as a part of the Postsecondary Education Financial Assistance Trust Fund established under Section 37-106-12;

          (b)  In addition to the trust fund described in paragraph (a) of this subsection, there is established an additional endowment for the purpose of funding the Mississippi HOPE Scholarship, which shall be funded from a state lottery created in Section 2 of this act.  Such endowment shall be established as a separate account in the State Treasury.  Monies in this endowment shall be invested by the State Treasurer for the sole benefit of that fund;

          (c)  Beginning in the first fiscal year following the establishment of the state lottery created in Section 2 of this act, all funds in the lottery for the education account in excess of Ten Million Dollars ($10,000,000.00) shall be transferred on a quarterly basis to the Mississippi HOPE Scholarship endowment described in paragraph (b) of this subsection.  Such transfers shall occur after all required expenditures have been made for Mississippi education lottery scholarship programs, Mississippi student assistance awards and administrative expenses; and

          (d)  Funds appropriated for the Mississippi HOPE Scholarship program, including matching funds or other appropriations made by the Legislature, may be placed in an endowment fund created solely for the program, the interest income from which shall be used to provide scholarships under this section.  The corpus of each endowment established under this section shall not be expended.  Unexpended funds remaining in each endowment in any fiscal year shall not revert to the State General Fund, but shall remain available in the Mississippi HOPE Scholarship program for scholarship expenditures in subsequent fiscal years.

     SECTION 24.  The Mississippi Community College Board is authorized to promulgate rules to effectuate the purposes of Sections 21 through 23 of this act.  All such rules shall be promulgated in accordance with Mississippi Administrative Procedures Law, Chapter 43, Title 25, Mississippi Code of 1972.

     SECTION 25.  (1)  A student may receive a Mississippi HOPE Scholarship until the first of the following events:

          (a)  The student has earned a baccalaureate degree; or

          (b)  Five (5) years have passed from the date of the student's initial enrollment at any postsecondary institution.

     (2)  Notwithstanding the provisions of subsection (1) to the contrary, and except as set forth in subsections (3) and (4), a student who first receives a Mississippi HOPE Scholarship, may continue to receive the scholarship until the first of the following events occur:

          (a)  The student has earned an associate's degree;

          (b)  Five (5) years have passed from the date of the student's initial enrollment at any eligible postsecondary institution; or

          (c)  The student has attempted a total of ninety (90) semester hours or has received the Mississippi HOPE Scholarship for eight (8) semesters at any eligible postsecondary institution, whichever occurs later.

     (3)  A student who first receives a Mississippi HOPE Scholarship who is enrolled in an associate degree program required to be more than ninety (90) semester hours in length may receive a Mississippi HOPE Scholarship until the first of the following events:

          (a)  The student has earned an associate's degree;

          (b)  Five (5) years have passed from the date of the student's initial enrollment at any eligible postsecondary institution; or

          (c)  The latter of the following events has occurred:

              (i)  The student has attempted the number of semester hours required to earn the associate's degree or a total of one hundred (100) semester hours at any eligible postsecondary institution, whichever is less; or

              (ii)  The student has completed eight (8) full-time equivalent semesters.

     (4)  Notwithstanding the provisions of subsections (2) and (3) to the contrary, the five-year, total full-time equivalent semester, and total semester hour limitations for a student who first receives a Mississippi HOPE Scholarship for nontraditional students shall be based on the sum of years, total full-time equivalent semesters, or total semester hours attempted while receiving the Mississippi HOPE Scholarship or the Mississippi HOPE Scholarship for nontraditional students.

     SECTION 26.  (1)  Subject to the amounts appropriated by the Legislature and any provision of law relating to a shortfall in funds available for postsecondary financial assistance from the net proceeds of the state lottery, the amount of a Mississippi HOPE Scholarship and Mississippi HOPE Scholarship for nontraditional students awarded to a student attending an eligible four-year postsecondary institution shall be One Thousand Five Hundred Dollars ($1,500.00) for full-time attendance for each semester.  This award amount shall apply to each entering freshman in the fall term of each academic year, and shall continue through the final semester of such student's sophomore year.  The determination of a student's status as a freshman or sophomore shall be made by the postsecondary institution attended.

     (2)  Subject to the amounts appropriated by the Legislature and any provision of law relating to a shortfall in funds available for postsecondary financial assistance from the net proceeds of the state lottery, for a student described in subsection (1) of this section, the award amount shall increase to Two Thousand Five Hundred Dollars ($2,500.00) per semester beginning in the student's junior year, as determined by the postsecondary institution attended, and shall continue until the student is no longer eligible for a Mississippi HOPE Scholarship under Section 25(2) and (3).

     (3)  Subject to the amounts appropriated by the Legislature and any provision of law relating to a shortfall in funds available for postsecondary financial assistance from the net proceeds of the state lottery, a Mississippi HOPE Scholarship and Mississippi HOPE Scholarship for nontraditional students awarded to a student attending an eligible two-year postsecondary institution shall be One Thousand Five Hundred Dollars ($1,500.00) for full-time attendance for each semester.  This award amount shall apply to the initial entering freshman class beginning in the fall term of each academic year.

     (4)  A student who first received the Mississippi HOPE Scholarship or Mississippi HOPE Scholarship for nontraditional students may receive such scholarship in the summer semester of an academic year in addition to the receipt of the scholarship in the fall and spring semesters of an academic year.

     (5)  The amount of a Mississippi HOPE Scholarship awarded to a student attending an eligible two-year postsecondary institution that provides on-campus housing shall be the same as the amount provided in subsection (3).

     (6)  Subject to the amounts appropriated by the Legislature and any law relating to a shortfall in funds available for postsecondary financial assistance from the net proceeds of the state lottery, the amount of a Mississippi HOPE Scholarship and Mississippi HOPE Scholarship for nontraditional students, who enroll in an eligible postsecondary institution shall be set in the general appropriations bill.

     SECTION 27.  (1)  A Mississippi HOPE Scholarship student who has an approved medical or personal leave of absence from an eligible postsecondary institution may continue to receive the scholarship upon resuming the student's education at an eligible postsecondary institution so long as the student continues to meet all applicable eligibility requirements.  The student shall be eligible for the scholarship until the first of the following events:

          (a)  The student has earned an associate's degree; or

          (b)  The sum of the number of years the student attended a postsecondary institution prior to the leave of absence and the number of years of attendance after the leave of absence equals five (5) years.

     (2)  Notwithstanding the provisions of subsection (1) to the contrary, a student who first receives a Mississippi HOPE Scholarship in the fall semester of his or her freshman year or later, may receive the scholarship until the first of the terminating events described in Section 25(2) and (3).

     (3)  Notwithstanding subsection (1), a student who first receives a Mississippi HOPE Scholarship in the fall semester of 2009 or later, may receive the scholarship until the first of the terminating events described in Section 25(2) and (3).

     (4)  Except for approved medical or personal leaves of absence, a Mississippi HOPE Scholarship student, including a part-time student, shall be enrolled continuously as a student at an eligible postsecondary institution.

     (5)  The Mississippi Community College Board shall promulgate rules and regulations for approval of medical or personal leave and the grounds for which the leave may be granted. The rules and regulations shall be promulgated in accordance with the Mississippi Administrative Procedures Law, Chapter 43, Title 25, Mississippi Code of 1972.

     SECTION 28.  If the sum of all financial aid, including a Mississippi HOPE Scholarship, for which a student qualifies, exceeds the institutionally defined total cost of attendance at the eligible postsecondary institution the scholarship or grant recipient is attending, then the student's financial assistance provided shall be reduced so that the financial aid actually received by the student does not exceed the institutionally defined total cost of attendance.

     SECTION 29.  The provisions of Sections 21 through 29 of this act shall not be construed to be an appropriation of funds and no funds shall be obligated or expended pursuant to Sections 21 through 29 of this act unless such funds are specifically appropriated by the general appropriations bill.

     SECTION 30.  This act shall take effect and be in force from and after July 1, 2018.