MISSISSIPPI LEGISLATURE

2018 Regular Session

To: Finance

By: Senator(s) Simmons (13th)

Senate Bill 3042

AN ACT TO CREATE THE "TRANSPORTATION INFRASTRUCTURE ACT OF 2018"; TO IMPOSE A USER FEE EQUAL TO 5% OF THE STATEWIDE AVERAGE WHOLESALE PRICE OF A GALLON OF MOTOR FUEL CALCULATED FOR THE APPLICABLE CALENDAR YEAR ON EACH GALLON OF MOTOR FUEL SOLD FOR CONSUMPTION IN VEHICLES OPERATED ON THE HIGHWAYS OF THIS STATE; TO PROVIDE THAT THE AMOUNT OF THE USER FEE SHALL BE ADDED TO THE APPLICABLE EXCISE TAX AND THAT THE COMMISSIONER OF REVENUE SHALL NOTIFY EACH DISTRIBUTOR OF MOTOR FUEL OF THE APPLICABLE USER FEE PER GALLON WHICH SHALL BE THE USER FEE IN EFFECT FOR THE TWELVE-MONTH PERIOD BEGINNING ON THE NEXT JANUARY FIRST; TO PROVIDE THE MANNER THAT THE USER FEE SHALL BE CALCULATED; TO PROVIDE FOR CERTAIN EXEMPTIONS FROM THE USER FEE; TO REQUIRE THE REVENUE COLLECTED FROM SUCH USER FEE TO BE DEPOSITED INTO THE TRANSPORTATION INFRASTRUCTURE REPAIR, RENOVATION AND MAINTENANCE FUND; TO LEVY AN ADDITIONAL TAX ON THE GROSS PROCEEDS OF SALES OF ROOM RENTALS BY HOTELS AND MOTELS TO TRANSIENT GUESTS AND PROVIDE THAT THE REVENUE FROM SUCH FEES BE DEPOSITED IN THE TRANSPORTATION INFRASTRUCTURE REPAIR, RENOVATION AND MAINTENANCE FUND; TO CREATE THE TRANSPORTATION INFRASTRUCTURE REPAIR, RENOVATION AND MAINTENANCE FUND; TO AMEND SECTION 27-19-11, MISSISSIPPI CODE OF 1972, TO LEVY AN ADDITIONAL PRIVILEGE TAX ON CERTAIN COMMERCIAL VEHICLES; TO REQUIRE THE PROCEEDS FROM SUCH TAX TO BE DEPOSITED INTO THE TRANSPORTATION INFRASTRUCTURE REPAIR, RENOVATION AND MAINTENANCE FUND; TO PROVIDE FOR THE ALLOCATION OF MONEY IN THE FUND TO THE STATE HIGHWAY FUND, THE COUNTY AND MUNICIPAL ROAD AID FUND, THE CITY OF JACKSON INFRASTRUCTURE FUND, THE LOCAL SYSTEM BRIDGE REPLACEMENT AND REHABILITATION FUND, THE STATE AID ROAD FUND, THE MULTI-MODAL TRANSPORTATION IMPROVEMENT FUND, THE MISSISSIPPI DEVELOPMENT AUTHORITY, THE AIR CARRIER INCENTIVE PROGRAM FUND AND THE MISSISSIPPI HIGHWAY-RAILROAD GRADE CROSSING ACCOUNT; TO CREATE A SPECIAL FUND TO BE KNOWN AS THE "COUNTY AND MUNICIPAL ROAD AID FUND;" TO PROVIDE A FORMULA FOR THE DISTRIBUTION OF MONEY IN SUCH FUND TO COUNTIES AND MUNICIPALITIES TO PROVIDE THAT MONEY ALLOCATED TO COUNTIES AND MUNICIPALITIES FROM SUCH FUND AND THE REVENUE FROM THE AD VALOREM TAX AUTHORIZED TO BE LEVIED BY COUNTIES AND MUNICIPALITIES UNDER THIS ACT SHALL BE UTILIZED BY COUNTIES SOLELY FOR THE CONSTRUCTION, MAINTENANCE AND REPAIR OF ROADS AND BRIDGES THAT ARE NOT STATE AID ROADS AND BE UTILIZED BY MUNICIPALITIES SHALL BE UTILIZED BY MUNICIPALITIES SOLELY FOR CONSTRUCTION, MAINTENANCE OR REPAIR OF STREETS, ROADS AND BRIDGES MAINTAINED BY MUNICIPALITIES; TO PROVIDE THAT IN ORDER TO BE ELIGIBLE TO RECEIVE FUNDS FROM THE COUNTY AND MUNICIPAL ROAD AID FUND A COUNTY OR A MUNICIPALITY MUST ANNUALLY LEVY A SPECIAL AD VALOREM TAX, NOT TO EXCEED ONE MILL, UPON ALL TAXABLE PROPERTY LOCATED WITHIN THE COUNTY OR MUNICIPALITY, AS THE CASE MAY BE; TO PROVIDE THAT THE MISSISSIPPI DEVELOPMENT AUTHORITY (MDA) SHALL ESTABLISH AN AIR CARRIER INCENTIVE PROGRAM TO MATCH FUNDS EXPENDED BY AIRPORT AUTHORITIES FOR INCENTIVES APPROVED BY MDA INTENDED TO ATTRACT AIR CARRIERS AND EXPAND AIR CARRIER SERVICES; TO CREATE A SPECIAL FUND TO BE DESIGNATED AS THE "AIR CARRIER INCENTIVE PROGRAM FUND"; TO PROVIDE THAT MDA SHALL UTILIZE MONEY IN THE FUND TO MATCH FUNDS EXPENDED BY AIRPORT AUTHORITIES TO PROVIDE THE INCENTIVES AUTHORIZED; TO CREATE A SPECIAL FUND TO BE DESIGNATED AS THE "CITY OF JACKSON INFRASTRUCTURE FUND;" TO PROVIDE THAT THE MISSISSIPPI DEPARTMENT OF TRANSPORTATION (MDOT) SHALL DISTRIBUTE MONEY IN THE FUND TO THE CITY OF JACKSON TO ASSIST THE CITY IN PAYING THE COSTS OF ROAD AND STREET REPAIR, RECONSTRUCTION AND RESURFACING PROJECTS, AND THE COSTS OF WATER, SEWER AND DRAINAGE PROJECTS AS APPROVED BY MDOT; TO AUTHORIZE VIDEO GAMING IN THIS STATE; TO AUTHORIZE BOARDS OF SUPERVISORS OF COUNTIES TO ELECT TO PROHIBIT VIDEO GAMING IN THEIR COUNTY; TO PROVIDE THAT THE MISSISSIPPI GAMING COMMISSION SHALL HAVE REGULATORY AUTHORITY OVER THE CONDUCT OF VIDEO GAMING OR RELATED ACTIVITIES AS DESCRIBED IN THIS ACT; TO PROVIDE THAT THE COMMISSION SHALL ENSURE THE INTEGRITY OF THE ACQUISITION AND OPERATION OF VIDEO GAMING TERMINALS, REDEMPTION TERMINALS AND ASSOCIATED EQUIPMENT AND SHALL HAVE SOLE REGULATORY AUTHORITY OVER EVERY ASPECT OF THE CONDUCT OF VIDEO GAMING; TO GRANT THE COMMISSION CERTAIN POWERS AND DUTIES; TO AUTHORIZE THE COMMISSION TO TAKE CERTAIN DISCIPLINARY ACTIONS AND TO PROVIDE FOR APPEALS FROM DECISIONS OF THE COMMISSION; TO REQUIRE THE LICENSING OF VIDEO GAMING OPERATORS AND THE PERSONS EMPLOYED BY VIDEO GAMING OPERATORS; TO REQUIRE THE LICENSING OF MANUFACTURES AND SUPPLIERS OF VIDEO GAMING EQUIPMENT; TO PROVIDE THE REQUIREMENTS FOR LICENSURE UNDER THIS ACT; TO REQUIRE TESTING AND CERTIFYING OF VIDEO GAMING MACHINES BY THE COMMISSION; TO LIMIT THE NUMBER OF VIDEO GAMING MACHINES THAT MAY BE PLACED ON THE PREMISES OF A LICENSEE; TO LIMIT THE AMOUNT OF WAGERS THAT MAY BE MADE; TO PROHIBIT ANYONE WHO IS NOT THE HOLDER OF A COMMERCIAL DRIVER'S LICENSE FROM PLAYING A VIDEO GAMING TERMINAL; TO PROVIDE CERTAIN CIVIL AND CRIMINAL PENALTIES FOR VIOLATIONS OF THIS ACT; TO ESTABLISH THE FEES FOR THE VARIOUS LICENSES AUTHORIZED UNDER THIS ACT; TO LEVY A TAX ON VIDEO GAMING REVENUE AND REQUIRE THAT THE REVENUE FROM THE TAX TO BE DEPOSITED INTO THE TRANSPORTATION INFRASTRUCTURE REPAIR, RENOVATION AND MAINTENANCE FUND; TO CREATE A STATE LOTTERY; TO PROVIDE THAT THE STATE LOTTERY SHALL BE ADMINISTERED BY THE MISSISSIPPI GAMING COMMISSION; TO PROVIDE THE POWERS AND DUTIES OF THE MISSISSIPPI GAMING COMMISSION REGARDING THE STATE LOTTERY; TO PROVIDE FOR THE DISPOSITION OF PROCEEDS RECEIVED FROM THE SALE OF LOTTERY TICKETS; TO PROVIDE THAT THE NET PROCEEDS COLLECTED FROM THE SALE OF LOTTERY TICKETS SHALL BE DEPOSITED INTO THE TRANSPORTATION INFRASTRUCTURE REPAIR, RENOVATION AND MAINTENANCE FUND; 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 AMEND SECTION 27-65-111, MISSISSIPPI CODE OF 1972, TO EXEMPT FROM SALES TAXATION THE SALE OF LOTTERY TICKETS; TO AMEND SECTION 27-65-75, MISSISSIPPI CODE OF 1972, IN CONFORMITY TO THE PROVISIONS OF THIS ACT AND TO PROVIDE THAT THE ADDITIONAL TAX LEVIED ON THE GROSS PROCEEDS OF SALES OF ROOM RENTALS SHALL BE DEPOSITED IN THE TRANSPORTATION INFRASTRUCTURE REPAIR, RENOVATION AND MAINTENANCE FUND; TO AMEND SECTIONS 57-43-15, 65-18-9 AND 65-18-11, MISSISSIPPI CODE OF 1972, IN CONFORMITY TO THE PROVISIONS OF THIS ACT; AND FOR RELATED PURPOSES.

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

SECTION 1. This act may be cited as the "Transportation Infrastructure Act of 2018."

SECTION 2. (1) In addition to the excise taxes imposed on motor fuel by Sections 27-55-11, 27-55-519, 27-55-521 and 27-59-11, a user fee equal to five percent (5%) of the statewide average wholesale price of a gallon of motor fuel calculated for the applicable calendar year as provided in this section is imposed on each gallon of motor fuel sold for consumption in vehicles operated on the highways of this state. The calculation of the tax shall be rounded to the nearest one-tenth (1/10) of a cent. The applicable user fee per gallon of motor fuel calculated under this subsection shall be added to the excise taxes imposed by Sections 27-55-11, 27-55-519, 27-55-521 and 27-59-11 to arrive at the total user fee per gallon of motor fuel for the calendar year in question. The commissioner shall notify each distributor of the applicable user fee per gallon which shall be the user fee in effect for the twelve-month period beginning on the next January first.

(2) On or before September 1, 2018, and on or before October 1 of every year thereafter, the Commissioner of Revenue shall calculate the user fee per gallon on motor fuel for the applicable calendar year based upon the average wholesale price of such fuel excluding federal and state excise taxes. The commissioner shall determine the average wholesale price per gallon by averaging the monthly gasoline and special fuel price information for the most current twelve-month period available for the State of Mississippi and published by the United States Energy Information Administration.

(3) Beginning with the October 1, 2019, calculation, if the average wholesale price fluctuates by more than or less than ten percent (10%) when compared to the prior year, the commissioner shall limit the average wholesale price per gallon increase or decrease to ten percent (10%) of the previous year result.

(4) The user fee imposed by this section shall be administered and collected and any penalties and interest shall be imposed in the same manner as the taxes collected pursuant to Title 27, Chapter 55.

(5) The United States government, the State of Mississippi, counties, municipalities, school districts and all other political subdivisions of the state, and volunteer fire departments chartered under the laws of the State of Mississippi as nonprofit corporations, shall be exempt from the tax levied by this section.

(6) On or before the fifteenth day of each month the revenue collected from the fee levied by this section during the preceding month shall be paid and distributed to the Transportation Infrastructure Repair, Renovation and Maintenance Fund created in Section 5 of this act.

(7) If the amount of revenue collected in any fiscal year from the fee levied by this section reaches Three Hundred and Sixty-five Million Dollars ($365,000,000.00), the collection of the fee levied by this section shall be suspended for the remainder of the fiscal year beginning with the month following the month in which collections reached such amount.

SECTION 3. (1) As used in this section, "hotel" or "motel" means any entity or individual engaged in the business of furnishing or providing one or more rooms intended or designed for dwelling, lodging or sleeping purposes that at any one time will accommodate transient guests and that are known to the trade as such and includes every building or other structure kept, used, maintained or advertised as, or held out to the public to be, a place where sleeping accommodations are supplied for pay or other consideration to transient guests regardless of the number of rooms, units, suites or cabins available, excluding nursing homes or institutions for the aged or infirm as defined in Section 43-11-1.

(2) There is levied and assessed and shall be collected from every person engaged in operating a hotel or motel, in addition to all other taxes currently being levied, assessed and collected, a tax of three percent (3%) of the gross proceeds of sales of room rentals to transient guests of hotel and motel rooms for each such hotel and motel.

SECTION 4. Section 27-19-11, Mississippi Code of 1972, is amended as follows:

27-19-11. (1) On each carrier of property, for each motor vehicle, truck-tractor or road tractor, and on each bus, there is hereby levied an annual highway privilege tax in accordance with the following schedule, except that the gross vehicle weight of buses shall be the gross weight of the vehicle plus one hundred fifty (150) pounds per each regular seat.

RATE OF TAX

GROSS WEIGHT COMMON AND PRIVATE PRIVATE

OF VEHICLE CONTRACT COMMERCIAL CARRIERS

NOT TO EXCEED CARRIERS OF AND OF

IN POUNDS PROPERTY NONCOMMERCIAL PROPERTY

CARRIERS OF

PROPERTY

0000 - 6000 $ 7.20 $ 7.20 $ 7.20

6001 - 10000 33.60 25.20 16.80

10001 - 16000 78.40 70.70 39.20

16001 - 20000 156.00 129.00 78.00

20001 - 26000 228.00 192.00 114.00

26001 - 30000 300.00 247.00 150.00

30001 - 36000 384.00 318.00 192.00

36001 - 40000 456.00 378.00 228.00

40001 - 42000 504.00 420.00 264.00

42001 - 44000 528.00 444.00 276.00

44001 - 46000 552.00 456.00 282.00

46001 - 48000 588.00 492.00 300.00

48001 - 50000 612.00 507.00 312.00

50001 - 52000 660.00 540.00 336.00

52001 - 54000 684.00 564.00 348.00

54001 - 56000 708.00 588.00 360.00

56001 - 58000 756.00 624.00 384.00

58001 - 60000 780.00 642.00 396.00

60001 - 62000 828.00 828.00 420.00

62001 - 64000 852.00 852.00 432.00

64001 - 66000 900.00 900.00 482.00

66001 - 68000 936.00 936.00 504.00

68001 - 70000 972.00 972.00 516.00

70001 - 72000 996.00 996.00 528.00

72001 - 74000 1,128.00 1,128.00 576.00

74001 - 76000 1,248.00 1,248.00 612.00

76001 - 78000 1,380.00 1,380.00 720.00

78001 - 80000 1,512.00 1,512.00 864.00

(2) In addition to * * *~~the above levied~~ annual highway privilege tax on vehicles with a gross weight exceeding ten thousand (10,000) pounds levied in subsection (1) of this section, there is levied and shall be collected an additional privilege tax in the amount of One Thousand Three Hundred Fifty Dollars ($1,350.00) for each current or later year model vehicle based upon a licensed weight of eighty thousand (80,000) pounds. This additional privilege tax shall be reduced by the amount of One Hundred Seventy-five Dollars ($175.00) for each year of age to a minimum of Fifty Dollars ($50.00) and further reduced by the ratio of licensed weight to the maximum weight of eighty thousand (80,000) pounds. During the first year only, the privilege tax monies collected under the provisions of this paragraph shall be distributed to the various counties of the state on the basis of the ratio of the last year of annual ad valorem taxes collected by such counties on such vehicles to the total ad valorem taxes collected by all counties on such vehicles in the same year. In all subsequent years, the distribution to the counties shall be made on the basis of the ratio of the number of motor vehicles registered in excess of ten thousand (10,000) pounds, in each taxing district in each county, to the total number of such vehicles registered statewide. The counties shall then distribute these proceeds as they would if these collections were ad valorem taxes.

(3) In addition to the annual highway privilege tax on vehicles with a gross weight exceeding ten thousand (10,000) pounds levied in subsection (1) of this section and in addition to the privilege tax levied in subsection (2) of this section, there is levied and shall be collected an additional privilege tax in the amount of One Thousand Three Hundred Fifty Dollars ($1,350.00) for each current or later year model vehicle based upon a licensed weight of eighty thousand (80,000) pounds. This additional privilege tax shall be reduced by the amount of One Hundred Seventy-five Dollars ($175.00) for each year of age to a minimum of Fifty Dollars ($50.00) and further reduced by the ratio of licensed weight to the maximum weight of eighty thousand (80,000) pounds. The privilege tax monies collected under the provisions of this paragraph shall be deposited into the Transportation Infrastructure Repair, Renovation and Maintenance Fund created in Section 5 of this act.

(4) Except as otherwise provided in this section, from the privilege tax monies collected under this section, Three Million Seven Hundred Thirty-two Thousand Four Hundred Three Dollars and Eleven Cents ($3,732,403.11) shall be earmarked and set aside to be apportioned and paid to the counties of the state in the manner provided by Section 27-19-159, Mississippi Code of 1972. Any excess privilege tax monies collected under this section shall be deposited into the State Highway Fund for the construction, maintenance and reconstruction of highways and roads of the State of Mississippi or the payment of interest and principal on bonds authorized by the 1972 Regular Session of the Legislature for construction and reconstruction of highways.

(5) No privilege license shall be issued for any period of time for less than One Dollar ($1.00).

(6) The annual highway privilege tax imposed on operators engaged exclusively in the transportation of household goods shall be the same as the tax imposed upon private commercial carriers by this section. In determining the amount of privilege taxes due under the provisions of this section, there shall be allowed a maximum tolerance of five hundred (500) pounds on all classes of carriers except carriers of liquefied compressed gases and in the case of carriers of liquefied compressed gases there shall be allowed a maximum tolerance of two thousand (2,000) pounds.

(7) Any owner or operator who operates a motor vehicle on the public highways, with a license tag attached to it which was issued for another or different vehicle, shall be liable for the privilege tax on said vehicle for twelve (12) months plus a penalty thereon of twenty-five percent (25%).

(8) Carriers of property duly registered and licensed in another state and being used to transport farm harvesting machinery or equipment to and from a particular county in this state may, upon adoption of a resolution by the board of supervisors of the county where such machinery or equipment is being exclusively used in harvesting farm crops within the county, be exempt from the taxes herein levied when the resolution is filed with the * * *~~State Tax Commission~~ Department of Revenue. However, the exemption shall not exceed a period of forty (40) days for any annual period without a second resolution of approval by the board of supervisors who shall have the authority to extend the exemption not to exceed an additional period of twenty (20) days during any annual period.

(9) A private commercial carrier of property hauling interstate may purchase a common and contract carrier of property license plate at the prescribed fee to allow the carrier to lease on a one-way basis per trip without qualifying with the Public Service Commission.

SECTION 5. There is created in the State Treasury a special fund to be designated as the "Transportation Infrastructure Repair, Renovation and Maintenance Fund." The fund shall consist of money required to be deposited into the fund by Section 1 of this act and any other money the Legislature designates for deposit into the fund. Money in the fund shall not lapse and any interest and investment earnings on amounts in the fund shall be deposited to the credit of the fund. Upon appropriation by the Legislature, money in the fund at the end of each fiscal year shall be allocated as follows:

(a) Through June 30, 2028, seventy and forty-six one hundredths percent (70.46%) shall be deposited into the State Highway Fund to be utilized solely for repair, renovation and rehabilitation of roads, highways and bridges maintained by the Mississippi Department of Transportation. From and after July 1, 2028, seventy-three and seventy-four one-hundredths percent (73.74%) shall be deposited into the State Highway Fund to be utilized solely for repair, renovation and rehabilitation of roads, highways and bridges maintained by the Mississippi Department of Transportation.

(b) Nine and one-half percent (9.5%) shall be deposited into the County and Municipal Road Aid Fund created in Section 6 of this act.

(c) Six and fifty-five one-hundreths percent (6.55%) shall be deposited into the Local System Bridge Replacement and Rehabilitation Fund created in Section 65-37-13.

(d) Four and sixty-five one-hundredths percent (4.65%) shall be deposited into the State Aid Road Fund.

(e) Three and ninety-three one-hundredths percent (3.93%) shall be deposited into the Multi-Modal Transportation Improvement Fund created in Section 65-1-705.

(f) Through June 30, 2028, three and twenty-eight one-hundredths percent (3.28%) shall be deposited into the City of Jackson Infrastructure Fund created in Section 7 of this act.

(g) Sixty-five hundredths of one percent (.65%) shall be allocated to the Mississippi Development Authority to be utilized for signage to promote tourism.

(h) Sixty-five hundredths of one percent (.65%) shall be deposited into the Air Carrier Incentive Program Fund created in Section 8 of this act.

(i) Thirty-three one-hundreths of one percent (.33%) shall be deposited into the Mississippi Highway-Railroad Grade Crossing Safety Account created by Section 57-43-15.

SECTION 6. (1) There is created in the State Treasury a special fund to be designated as the "County and Municipal Road Aid Fund" into which shall be deposited the money designated for deposit in the fund by Section 5 of this act and any other money designated for deposit in the fund by the Legislature. Money in the fund shall not lapse and any interest or investment earnings on amounts in the fund shall be deposited to the credit of the fund.

(2) At the end of each fiscal year, a portion of the money in the fund shall be allocated to counties. The amount required to be allocated to each county shall be allocated and paid to each county by the State Aid Engineer by warrant drawn on the State Treasury from the fund based on the percentage that the population of each county in the unincorporated area of the county bears to the population of the state according to the latest federal decennial census.

(3) Money remaining in the fund after the payment required by subsection (2) of this section shall be allocated and paid to each municipality in this state by the Department of Revenue by warrant drawn on the State Treasury from the fund based on the percentage that the population of the municipality bears to the population of the state according to the latest federal decennial census.

(4) Funds received by any county under this section shall be used by the county solely for construction, maintenance and repair of roads that are not state aid roads. All funds received by any municipality under the provisions of this section shall be used by municipalities solely for construction, maintenance or repair of streets, curbs, gutters, storm sewers, bridges, culverts or like street improvements and appurtenances maintained by the municipality.

(5) In order to participate in the County and Municipal Road Aid Fund, a county or municipality must first annually levy a special ad valorem tax in an amount not to exceed one (1) mill, upon all taxable property located within the county or municipality, as the case may be. The avails of the special levy shall be used by counties solely for the construction, maintenance and repair of roads that are not state aid roads. The avails of the special levy shall be utilized by municipalities solely for construction, maintenance or repair of streets, curbs, gutters, storm sewers, bridges, culverts or like street improvements and appurtenances maintained by the municipality. The levy shall not be reimbursable under the homestead exemption law.

SECTION 7. (1) There is created in the State Treasury a special fund to be designated as the "City of Jackson Infrastructure Fund" into which shall be deposited the money designated for deposit in the fund by Section 5 of this act and any other money designated for deposit in the fund by the Legislature. Money in the fund shall not lapse and any interest or investment earnings on amounts in the fund shall be deposited to the credit of the fund.

(2) The Mississippi Department of Transportation (MDOT) shall distribute money in the fund to the City of Jackson to assist the city in paying the costs of road and street repair, reconstruction and resurfacing projects, and the costs of water, sewer and drainage projects as approved by MDOT.

(4) Funds received by a city under this section shall be used solely for the purposes authorized by this section and approved by the Mississippi Department of Transportation.

(5) This section shall be repealed from and after July 1, 2028.

SECTION 8. (1) The Mississippi Development Authority (MDA) shall establish an air carrier incentive program to match funds expended by airport authorities for incentives approved by MDA intended to attract air carriers and expand air carrier services. Program incentives may include:

(a) Funding for advertising costs associated with the introduction of new flights on unserved routes and/or new airline entrant brands beginning service at the airport; and

(b) Funding of landing fee rebates intended to attract new flights on unserved routes and/or new airline entrant brands to begin service at the airport.

(2) There is created in the State Treasury a special fund to be designated as the "Air Carrier Incentive Program Fund" into which shall be deposited the money designated for deposit in the fund by Section 5 of this act and any other money designated for deposit in the fund by the Legislature. Money in the fund shall not lapse and any interest or investment earnings on amounts in the fund shall be deposited to the credit of the fund. Upon appropriation by the Legislature, MDA shall utilize money in the fund to match funds expended by airport authorities to provide the incentives authorized by this section.

SECTION 9. As used in Sections 9 through 45 of this act:

(a) "Affiliate," "affiliate of" or "person affiliated with" means a person who directly or indirectly, through one or more intermediaries, controls, is controlled by or is under common control with a specified person.

(b) "Applicant" means a person who, on his own behalf or on behalf of another, applies for permission to engage in an act or activity that is regulated under the provisions of Sections 9 through 45 of this act.

(c) "Associated equipment" means equipment or a mechanical, electromechanical or electronic contrivance, component or machine used in connection with video gaming terminals or redemption terminals, including replacement parts, hardware and software.

(d) "Background investigation" means a security, criminal, credit and suitability investigation of a person as provided for in this act that includes the status of taxes owed to the United States, the state and its political subdivisions.

(e) "Cash" means United States currency and coin.

(f) "Cash equivalent" means a ticket, token, chip, card or other similar instrument or representation of value that the commission deems a cash equivalent in accordance with Sections 9 through 45 of this act.

(g) "Central control computer" means a central site computer controlled by the commission and accessible by the commission to which all video gaming terminals communicate for the purpose of auditing capacity, real-time information retrieval of the details of any financial event that occurs in the operation of a video gaming terminal or redemption terminal, including, but not limited to, coin in, coin out, ticket in, ticket out, jackpots, video gaming terminal and redemption terminal door openings and power failure and remote video gaming terminal or redemption terminal activation and disabling of video gaming terminals or redemption terminals.

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

(i) "Compensation" means anything of value, money or a financial benefit conferred on or received by a person in return for services rendered or to be rendered whether by the person or another.

(j) "Conduct of video gaming" means the licensed placement, operation and play of video gaming terminals under Sections 9 through 45 of this act, as authorized and approved by the commission.

(k) "Controlling interest" means any of the following:

(i) For a publicly traded domestic or foreign corporation, the term means a person has a controlling interest in a legal entity, applicant or licensee if a person's sole voting rights under state law or corporate articles or bylaws entitle the person to elect or appoint one or more of the members of the board of directors or other governing body or the person holds an ownership or beneficial holding of five percent (5%) or more of the securities of the publicly traded corporation, partnership, limited liability company or other form of publicly traded legal entity, unless this presumption of control or ability to elect is rebutted by clear and convincing evidence.

(ii) For a privately held domestic or foreign corporation, partnership, limited liability company or other form of privately held legal entity, the term means the holding of any securities in the legal entity, unless this presumption of control is rebutted by clear and convincing evidence.

(l) "Conviction" means a finding of guilt or a plea of guilty or nolo contendere, whether or not a judgment of sentence has been imposed as determined by the law of the jurisdiction in which the prosecution was held; however, the term does not include a conviction that has been expunged or overturned or for which an individual has been pardoned or had an order of accelerated rehabilitative disposition entered.

(m) "Corporation" includes a publicly traded corporation.

(n) "Establishment license" means a license issued by the commission authorizing a truck stop establishment to permit a terminal operator licensee to place and operate video gaming terminals on the truck stop establishment's premises under Sections 9 through 45 of this act and the rules and regulations promulgated under Sections 9 through 45 of this act.

(o) "Establishment licensee" means a truck stop establishment that holds an establishment license.

(p) "Financial backer" means an investor, mortgagee, bondholder, noteholder or other sources of equity or capital provided to an applicant or licensed entity.

(q) "Gambling game" means a game that plays or simulates the play of video poker, reel games, blackjack or other similar game authorized by the commission.

(r) "Gaming employee" means any of the following:

(i) An employee of a terminal operator licensee, establishment licensee or supplier licensee that is not a key employee and is involved in the conduct of video gaming.

(ii) An employee of a supplier licensee whose duties are directly involved with the repair or distribution of video gaming terminals or associated equipment sold or provided to a terminal operator licensee within this state as determined by the commission.

The term does not include nongaming personnel as determined by the commission or an employee of an establishment licensee.

(s) "Gross terminal revenue" means the total of cash or cash equivalents received by a video gaming terminal minus the total of cash or cash equivalents paid out to players as a result of playing a video gaming terminal. The term does not include counterfeit cash or cash taken in a fraudulent act perpetrated against a terminal operator licensee for which the terminal operator licensee is not reimbursed.

(t) "Holding company" means a person, other than an individual, which, directly or indirectly, owns or has the power or right to control or to vote a significant part of the outstanding voting securities of a corporation or other form of business organization, a holding company indirectly has, holds or owns any such power, right or security if it does so through an interest in a subsidiary or successive subsidiaries.

(u) "Incentive" means consideration, including a promotion or prize, provided to a player or potential player as an enticement to play a video gaming terminal.

(v) "Inducement" means any of the following:

(i) Consideration paid directly or indirectly, from a manufacturer, supplier, terminal operator, procurement agent, gaming employee, employee or another person on behalf of an applicant or anyone licensed under Sections 9 through 45 of this act, to a truck stop establishment, establishment licensee, establishment licensee owner or an employee of the establishment licensee, directly or indirectly as an enticement to solicit or maintain the establishment licensee or establishment licensee owner's business.

(ii) Cash, incentive, marketing and advertising cost, gift, food, beverage, loan, prepayment of gross terminal revenue and other contribution or payment that offsets an establishment licensee's operational costs, or as otherwise determined by the commission.

The term shall not include costs paid by a terminal operator applicant or terminal operator licensee related to making video gaming terminals operate at the premises of an establishment licensee, including wiring and rewiring, software updates, ongoing video gaming terminal maintenance, redemption terminals, network connections, site controllers and costs associated with communicating with the central control computer system.

(w) "Institutional investor" means a retirement fund administered by a public agency for the exclusive benefit of federal, state or local public employees, investment company registered under the Investment Company Act of 1940 (54 Statute 789, 15 USC Section 80A-1 et seq.), collective investment trust organized by banks under Part Nine of the rules of the Comptroller of the Currency, closed-end investment trust, chartered or licensed life insurance company or property and casualty insurance company, banking and other chartered or licensed lending institution, investment advisor registered under the Investment Advisers Act of 1940 (54 Statute 847, 15 USC Section 80B-1 et seq.) and such other person as the commission may determine consistent with Sections 9 through 45 of this act.

(x) "Intermediary" means a person, other than an individual, that:

(i) Is a holding company with respect to a corporation or other form of business organization, that holds or applies for a license under Sections 9 through 45 of this act; and

(ii) Is a subsidiary with respect to a holding company.

(y) "Investigation division" means the investigation division established under Section 75-76-17.

(z) "Key employee" means an individual employed by a manufacturer licensee, supplier licensee, terminal operator licensee or establishment licensee that is determined by the commission to be a director or commission head or otherwise empowered to make discretionary decisions that regulate the conduct of video gaming.

(aa) "Key employee licensee" means an individual who holds a key employee license.

(bb) "Licensed entity" means a terminal operator licensee, establishment licensee, manufacturer licensee or supplier licensee under Sections 9 through 45 of this act.

(cc) "Licensed entity representative" means a person, including an attorney, agent or lobbyist, acting on behalf of or authorized to represent the interest of an applicant, licensee or other person authorized by the commission to engage in an act or activity that is regulated under Sections 9 through 45 of this act regarding a matter before or that may reasonably be expected to come before the commission.

(dd) "Licensed gaming establishment" shall have the meaning ascribed to such term in Section 75-76-5.

(ee) "Licensee" means a person licensed under Sections 9 through 45 of this act.

(ff) "Manufacturer" means a person that manufactures, builds, rebuilds, fabricates, assembles, produces, programs, designs or otherwise makes modifications to a video gaming terminal, redemption terminal or associated equipment for use or play of video gaming terminals in this state for video gaming purposes.

(gg) "Manufacturer license" mean a license issued by the commission authorizing a manufacturer to manufacture or produce video gaming terminals, redemption terminals or associated equipment for use in this state for video gaming purposes.

(hh) "Manufacturer licensee" means a person that holds a manufacturer license.

(ii) "Minor" means an individual under twenty-one (21) years of age.

(jj) "Municipality" means a city, township, borough or incorporated town.

(kk) "Non-key employee" means an individual employed by a terminal operator licensee who, unless otherwise designated by the commission, is not a key employee.

(ll) "Occupation permit" means a permit authorizing an individual to be employed or to work as a gaming employee.

(mm) "Party" means the commission or an applicant, licensee, registrant or other person appearing of record in any proceeding before the commission.

(nn) "Permittee" means a holder of a permit issued under Sections 9 through 45 of this act.

(oo) "Person" means a natural person, corporation, foundation, organization, business trust, estate, limited liability company, trust, partnership, limited liability partnership, association or other form of legal business entity.

(pp) "Player" means an individual who wagers cash or a cash equivalent in the play or operation of a video gaming terminal and the play or operation of which may deliver or entitle the individual playing or operating the video gaming terminal to receive cash or a cash equivalent from a terminal operator licensee.

(qq) "Principal" means an officer, director, person who directly holds a beneficial interest in or ownership of the securities of an applicant or anyone licensed under Sections 9 through 45 of this act, person who has a controlling interest in an applicant or anyone licensed under Sections 9 through 45 of this act or has the ability to elect a majority of the board of directors of a licensee or to otherwise control anyone licensed under Sections 9 through 45 of this act, procurement agent, lender or other licensed financial institution of an applicant or anyone licensed under Sections 9 through 45 of this act, other than a bank or lending institution which makes a loan or holds a mortgage or other lien acquired in the ordinary course of business, underwriter of an applicant or anyone licensed under Sections 9 through 45 of this act or other person or employee of an applicant, terminal operator licensee, manufacturer licensee or supplier licensee deemed to be a principal by the commission, including a procurement agent.

(rr) "Procurement agent" means a person that shares in the gross terminal revenue or is otherwise compensated for the purpose of soliciting or procuring a terminal placement agreement.

(ss) "Progressive payout" means a video game terminal wager payout that increases in a monetary amount based on the amounts wagered in a progressive system.

(tt) "Progressive system" means a computerized system linking video gaming terminals on the premises of an establishment licensee and offering one or more common progressive payouts based on the amounts wagered.

(uu) "Publicly traded corporation" means a person, other than an individual, that:

(i) has a class or series of securities registered under the Securities Exchange Act of 1934 (48 Statute 881, 15 USC Section 78a et seq.);

(ii) Is a registered management company under the Investment Company Act of 1940; or

(iii) Is subject to the reporting obligations imposed by Section 15(d) of the Securities Exchange Act of 1934 by reason of having filed a registration statement that has become effective under the Securities Act of 1933 (48 Statute 74, 15 USC Section 77A et seq.).

(vv) "Redemption terminal" means the collective hardware, software, communications technology and other ancillary equipment used to facilitate the payment of cash or a cash equivalent to a player as a result of playing a video gaming terminal.

(ww) "Slot amusement machine" means any mechanical device or contrivance which is operated, played, worked, manipulated, or used by inserting or depositing any coin, slug, token, or thing of value, in which may be seen any picture or heard any music, or wherein any game may be played, or any form of diversion had.

(xx) "Subsidiary" means a person other than an individual and includes:

(i) A corporation, any significant part of whose outstanding equity securities are owned, subject to a power or right of control, or held with power to vote, by a holding company or an intermediary company;

(ii) A significant interest in a person, other than an individual, which is owned, subject to a power or right of control, or held with power to vote, by a holding company or an intermediary company; or

(iii) A person deemed to be a subsidiary by the commission.

(yy) "Supplier" means a person that sells, leases, offers or otherwise provides, distributes or services any video gaming terminal, redemption terminal or associated equipment to a terminal operator licensee for use or play in this state.

(zz) "Supplier license" means a license issued by the commission authorizing a supplier to provide products or services related to video gaming terminals, redemption terminals or associated equipment to terminal operator licensees for use in this state for the conduct of video gaming.

(aaa) "Supplier licensee" means a person that holds a supplier license.

(bbb) "Terminal operator" means a person that owns, services or maintains video gaming terminals for placement and operation on the premises of an establishment licensee.

(ccc) "Terminal operator license" means a license issued by the commission authorizing a terminal operator to place and operate video gaming terminals in an establishment licensee's premises pursuant to Sections 9 through 45 of this act and the rules and regulations promulgated under Sections 9 through 45 of this act.

(ddd) "Terminal operator licensee" means a person that holds a terminal operator license.

(eee) "Terminal placement agreement" means the formal written agreement or contract between an applicant for a terminal operator license or terminal operator licensee and an applicant for an establishment license or establishment or establishment licensee that establishes the terms and conditions regarding the conduct of video gaming.

(fff) "Truck stop establishment" means a premises that:

(i) Is equipped with diesel islands used for fueling commercial motor vehicles.

(ii) Has sold on average fifty thousand (50,000) gallons of diesel or biodiesel fuel each month for the previous twelve (12) months or is projected to sell an average of fifty thousand (50,000) gallons of diesel or biodiesel fuel each month for the next twelve (12) months.

(iii) Has parking spaces dedicated for commercial motor vehicles.

(iv) Has a convenience store.

(v) Is situated on a parcel of land of not less than three (3) acres that the truck stop establishment owns or leases.

(ggg) "Video gaming area" means the area of an establishment licensee's premises where video gaming terminals and redemption terminals are installed for operation and play.

(hhh) "Video gaming employees" includes gaming employees, key employees and non-key employees.

(iii) "Video gaming terminal" means:

(i) A mechanical or electrical contrivance, terminal, machine or other device approved by the commission that, upon insertion of cash or cash equivalents, is available to play or operate one or more gambling games, the play of which utilizes a random number generator:

1. May award a winning player either a free game or credit that shall only be redeemable for cash or cash equivalents at a redemption terminal.

2. May utilize video displays.

3. May use an electronic credit system for receiving wagers and making payouts that are only redeemable at a redemption terminal.

(ii) Associated equipment necessary to conduct the operation of the contrivance, terminal, machine or other device.

The term does not include a slot machine operated at a licensed gaming establishment in accordance or a slot amusement machine.

SECTION 10. (1) The commission shall have general and sole regulatory authority over the conduct of video gaming or related activities as described in Sections 9 through 45 of this act. The commission shall ensure the integrity of the acquisition and operation of video gaming terminals, redemption terminals and associated equipment and shall have sole regulatory authority over every aspect of the conduct of video gaming.

(2) The commission may employ individuals as necessary to carry out the requirements of Sections 9 through 45 of this act who shall serve at the commission's pleasure.

(3) The commission shall have the power and duty:

(a) To require background investigations on applicants, licensees, principals, key employees, procurement agents or gaming employees under the jurisdiction of the commission.

(b) At its discretion, to issue, approve, renew, revoke, suspend, condition or deny issuance or renewal of terminal operator licenses.

(d) At its discretion, to issue, approve, renew, revoke, suspend, condition or deny issuance or renewal of supplier and manufacturer licenses.

(e) At its discretion, to issue, approve, renew, revoke, suspend, condition or deny issuance or renewal of a license or permit for various classes of employees as required under Sections 9 through 45 of this act.

(f) At its discretion, to issue, approve, renew, revoke, suspend, condition or deny issuance or renewal of additional licenses, permits or other authorization that may be required by the commission under Sections 9 through 45 of this act.

(g) At its discretion, to suspend, condition or deny the issuance or renewal of a license or permit or levy a fine or other sanction for a violation of Sections 9 through 45 of this act.

(h) To require prospective and existing video gaming employees, independent contractors, applicants, permittees and licensees to submit fingerprints, which shall be submitted to the Federal Bureau of Investigation for purposes of verifying the identity of the individual and obtaining records of criminal arrests and convictions.

(i) To require prospective and existing video gaming employees, independent contractors, applicants, permittees and licensees to submit photographs consistent with a statement of policy developed by the commission.

(j) In addition to the power of the commission relating to license and permit applicants, to determine at its discretion the suitability of a person who furnishes or seeks to furnish to a terminal operator licensee directly or indirectly goods, services or property related to video gaming terminals, redemption terminals or associated equipment.

(k) To approve an application for or issue or renew a license, certificate, registration, permit or other authorization that may be required by the commission, if the commission is satisfied that the person has demonstrated by clear and convincing evidence that the person is of good character, honesty and integrity whose prior activities, criminal record, if any, reputation, habits and associations do not pose a threat to the public interest or the effective regulation and control of video gaming terminal operations or create or enhance the danger of unsuitable, unfair or illegal practices, methods and activities in the conduct of video gaming or the carrying on of the business and financial arrangements incidental thereto.

(l) To determine, designate and classify employees of a terminal operator licensee as key employees and non-key employees.

SECTION 11. (1) The commission shall have the power and duty:

(a) To deny, deny the renewal, revoke, condition or suspend a license or permit provided for in Sections 9 through 45 of this act if the commission finds in its sole discretion that an applicant, licensee or permittee under Sections 9 through 45 of this act or its officers, employees or agents have furnished false or misleading information to the commission or failed to comply with the provisions of Sections 9 through 45 of this act or the rules and regulations of the commission and that it would be in the public interest to deny, deny the renewal, revoke, condition or suspend the license or permit.

(b) To restrict access to confidential information in the possession of the commission that has been obtained under Sections 9 through 45 of this act and ensure that the confidentiality of information is maintained and protected.

(c) To prescribe and require periodic financial reporting and internal control requirements for terminal operator licensees.

(d) To require that each terminal operator licensee provide to the commission its annual financial statements, with such additional detail as the commission shall require, which shall be submitted not later than one hundred eighty (180) days after the end of the licensee's fiscal year.

(e) To prescribe the procedures to be followed by terminal operator licensees for a financial event that occurs in the operation and play of video gaming terminals.

(f) To require that each establishment licensee prohibits minors and persons who are not holders of a commercial driver's license from operating or using video gaming terminals or redemption terminals.

(g) To establish procedures for the inspection and certification of compliance of video gaming terminals, redemption terminals and associated equipment prior to being placed into use on the premises of an establishment licensee by a terminal operator licensee.

(h) To require that no video gaming terminal may be set to pay out less than the theoretical payout percentage, which percentage shall be no less than eighty-five percent (85%), as specifically approved by the commission. The commission shall adopt regulations that define the theoretical payout percentage of a video gaming terminal game based on the total value of the jackpots expected to be paid by a play on a video gaming terminal game divided by the total value of video gaming terminals wagers expected to be made on that play or video gaming terminal game during the same portion of the game cycle. In so doing, the commission shall specify whether the calculation includes a portion of or the entire cycle of a video gaming terminal game.

(i) To require that an establishment license applicant provide detailed site plans of its proposed video gaming area for review and approval by the commission for the purpose of determining the adequacy of the proposed security and surveillance measures. The applicant shall cooperate with the commission in making changes to the plans suggested by the commission and shall ensure that the plans as modified and approved are implemented. The commission may not require a floor-to-ceiling wall to segregate the video gaming area, but may adopt rules to establish segregation requirements.

(j) To promulgate rules and regulations governing the advertisement of video gaming terminals, provided that the commission shall require all advertisements to display or reference the toll-free problem gambling telephone number maintained by the Mississippi Council on Problem and Compulsive Gambling.

(k) To enter into contracts with persons for the purposes of carrying out the powers and duties of the commission under Sections 9 through 45 of this act.

(l) To review and approve all cash and cash equivalent handling policies and procedures employed by terminal operator licensees.

(m) To promulgate rules and regulations governing the placement of automated teller machines within video gaming areas.

(n) To establish age-verification procedures for establishment licensees and their employees to ensure minors do not access a video gaming area, video gaming terminal or redemption terminal.

(o) To promulgate rules and regulations governing the interconnection of video gaming terminals within the premises of an establishment licensee for a progressive system.

(p) To promulgate rules and regulations necessary for the administration and enforcement of Sections 9 through 45 of this act.

(2) Except as provided in Section 12 of this act, regulations shall be adopted in accordance with the Mississippi Administrative Procedures Law.

SECTION 12. (1) In order to facilitate the prompt implementation of Sections 9 through 45 of this act, regulations promulgated by the commission shall be deemed temporary regulations which shall expire no later than two (2) years following the publication of the temporary regulations.

(2) Except for temporary regulations related to security and surveillance, the authority provided to the commission to adopt temporary regulations in subsection (1) of this section shall expire two (2) years following the publication of the temporary regulations. Regulations adopted after that date shall be promulgated as provided by law.

SECTION 13. Disciplinary actions and appeals by an applicant, licensee or permittee from disciplinary actions taken by the commission involving the approval, issuance, denial, revocation, nonrenewal, suspension or conditioning or any other disciplinary actions, of a license, permit or authorization under Sections 9 through 45 of this act shall be in accordance with the provisions of Sections 75-76-103 through 75-76-127 of the Mississippi Gaming Control Act.

SECTION 14. (1) The commission shall maintain files and records deemed necessary for the administration and enforcement of Sections 9 through 45 of this act.

(2) Applications, returns and information contained in applications and returns filed or furnished under Sections 9 through 45 of this act shall be confidential, and except in accordance with proper judicial order or as otherwise authorized by Sections 9 through 45 of this act, it shall be unlawful for members of the Department of Revenue, the commission or employees of the Mississippi Department of Information Technology Services, 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" 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 Department of Revenue. 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.

(3) information contained on the application, returns or reports from the licensee or the commission may be furnished to:

(a) Members and employees of the Department of Revenue 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 state law;

(d) The revenue department of the other states or the federal government when the states of federal government grants a like comity to Mississippi.

(4) 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 Department of Revenue or the commission, and the same prohibitions against disclosure which apply to the Department of Revenue shall apply to the State Auditor and his office.

(5) Nothing in this section shall prohibit the Commissioner of Revenue 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.

(6) No claim of confidentiality may be made regarding criminal history record information that is available to the public under Section 45-27-1 et seq.

(7) Except as otherwise provided in this section, no claim of confidentiality may be made regarding a record in possession of the commission that is otherwise publicly available from the commission under the Mississippi Public Records Act of 1983.

(8) The commission may seek a voluntary waiver of confidentiality from an applicant, licensee or permittee but may not require an applicant, licensee or permittee to waive the confidentiality provided under this section as a condition for the approval of an application, renewal of a license or other action of the commission.

(9) Notice of the contents of information, except to a duly authorized law enforcement agency pursuant to this section, shall be given to an applicant, licensee or permittee in a manner prescribed by the rules and regulations adopted by the commission.

(10) Files, records, reports and other information in the possession of the commission pertaining to an applicant, licensee or permittee shall be made available to the commission as may be necessary to the effective administration of Sections 9 through 45 of this act.

SECTION 15. (1) To facilitate the auditing and security programs critical to the integrity of video gaming terminals in this state, the commission shall have overall control of video gaming terminals that:

(a) Shall be linked, at an appropriate time to be determined by the commission, to a central control computer accessible by the commission to provide auditing program capacity and individual terminal information as approved by the commission.

(b) Shall include real-time information retrieval and terminal activation and disabling programs.

(2) The central control computer shall provide:

(a) A fully operational statewide video gaming terminal control system that has the capability of supporting up to the maximum number of video gaming terminals that is permitted to be in operation under Sections 9 through 45 of this act.

(b) The employment of a widely accepted gaming industry protocol to facilitate a video gaming terminal manufacturers' ability to communicate with the statewide system.

(c) The delivery of a system that has the ability to verify software, detect alterations in payout and detect other methods of fraud in all aspects of the operation of video gaming terminals.

(d) The delivery of a system that has the capability to support progressive video gaming terminals as approved by the commission.

(e) The delivery of a system that does not alter the statistical awards of video gaming terminal games as designed by the manufacturer and approved by the commission.

(f) The delivery of a system that provides redundancy so that each component of the network is capable of operating independently from any component of the network, including the central control computer, fails or cannot be operated for any reason, and to assure that all transactional data is captured and secured. Costs associated with a computer system to operate within a video gaming area, whether independent or as part of the central control computer, shall be paid by the terminal operator licensee. The computer system shall be controlled by and accessible to the commission.

(g) The ability to meet all reporting and control requirements as prescribed by the commission.

(h) The delivery of a system that provides centralized issuance of cash redemption tickets and facilitates the acceptance of the tickets by video gaming terminals and redemption terminals.

(i) Other capabilities as determined by the commission.

(3) The central control computer may not provide for the monitoring or reading of personal or financial information concerning a patron of a terminal operator licensee.

(4) Notwithstanding any other provision of law to the contrary and in order to facilitate the prompt implementation of Sections 9 through 45 of this act, initial contracts entered into by the commission for a central control computer, including necessary computer hardware, software, licenses or related services shall be exempt from the provisions of Section 31-7-13. Contracts made pursuant to the provisions of this section may not exceed five (5) years.

SECTION 16. (1) no person may offer or otherwise make available for play in this state a video gaming terminal unless the person is licensed under Sections 9 through 45 of this act and according to regulations promulgated by the commission under Sections 9 through 45 of this act.

(2) The board of supervisors of a county may elect to prohibit video gaming in its county by adopting a resolution to that effect. A copy of the resolution must be sent to the commission, and the commission shall take the actions necessary to ensure that video gaming is not conducted in that county.

SECTION 17. (1) An application for a terminal operator license shall be on the form required by the commission and shall include, at a minimum, all of the following:

(a) The name, address and photograph of the applicant and of all directors and owners and key employees and their positions within the corporation or organization, as well as additional financial information required by the commission.

(b) evidence satisfactory to the commission that current on all federal and state tax obligations.

(c) The details of any gaming license applied for, granted to or denied to the applicant by another jurisdiction where the form of gaming is legal and the consent for the commission to acquire copies of the application submitted or license issued in connection with the application.

(d) The details of any loan obtained from a financial institution or not obtained from a financial institution.

(e) The consent to conduct a background investigation by the commission, the scope of which investigation shall be determined by the commission in its discretion consistent with the provisions of Sections 9 through 45 of this act, and a release signed by all persons subject to the investigation of all information required to complete the investigation.

(f) Any information concerning maintenance and operation of video gaming terminals in any other jurisdiction.

(g) Proof that the applicant has or will establish a place of business in this state. A terminal operator licensee shall maintain its place of business in this state to remain eligible for licensure.

(h) Any other information determined to be appropriate by the commission.

(2) An application for a terminal operator license shall include such information, documentation and assurances as may be required to establish by clear and convincing evidence of the applicant's suitability, including good character, honesty and integrity. The application shall include, without limitation, information pertaining to family, habits, character, reputation, criminal history background, business activities, financial affairs and business, professional and personal associates, covering at least the ten-year period immediately preceding the filing date of the application.

(3) An applicant shall notify the commission of any civil judgment obtained against the applicant pertaining to laws of the federal government, this state or another state, jurisdiction, province or country.

(4) In order to be eligible for a terminal operator license under Sections 9 through 45 of this act, the principals and key employees of the applicant must obtain a license to meet the character requirements of this section or other eligibility requirements established by the commission.

(5) The commission shall develop a classification system for other agents, employees or persons who directly or indirectly hold or are deemed to be holding debt or equity securities or other financial interest in the applicant and for other persons that the commission considers appropriate for review under this section.

(6) (a) Except as provided in paragraph (b) of this subsection, no person shall be eligible to receive a terminal operator license unless the principals and key employees of each intermediary or holding company of the person meet the requirements of subsection (4) of this section.

(b) The commission may require that lenders and underwriters of intermediaries, subsidiaries or holding companies of a terminal operator license applicant meet the requirements of subsection (4) of this section if the commission determines that the suitability of a lender or underwriter is at issue and necessary to consider a pending application for a terminal operator license.

(7) The issuance or renewal of a license or other authorization by the commission under this section shall be a revocable privilege.

(8) The commission may waive the requirements of subsection (4) of this section for a person directly or indirectly holding ownership of securities in a publicly traded corporation if the commission determines that the holder of the securities does not have the ability to control the corporation or elect one or more directors thereof.

(9) A person applying for a license or other authorization under Sections 9 through 45 of this act shall continue to provide information required by the commission or the commission and cooperate in any inquiry or investigation.

(10) The commission may conduct a criminal history record check on a person for whom a waiver is granted under this section.

(11) The commission shall require an applicant for a terminal operator license to produce the information, documentation and assurances concerning financial background and resources as the commission deems necessary to establish by clear and convincing evidence the financial stability, integrity and responsibility of the applicant, its affiliate, intermediary, subsidiary or holding company, including, but not limited to, bank references, business and personal income and disbursement schedules, tax returns and other reports filed with governmental agencies and business and personal accounting and check records and ledgers. An applicant shall in writing authorize the examination of all bank accounts and records as may be deemed necessary by the commission.

(12) (a) The commission shall require an applicant for a terminal operator license to produce the information, documentation and assurances as may be necessary to establish by clear and convincing evidence the integrity of all financial backers, institutional investors, investors, mortgagees, bondholders and holders of indentures, notes or other evidences of indebtedness, either in effect or proposed.

(b) The commission may waive the qualification requirements for banking or lending institution and institutional investors.

(c) A banking or lending institution or institutional investor shall produce for the commission upon request any document or information that bears relation to the proposal submitted by the applicant or applicants.

(d) The integrity of the financial sources shall be judged upon the same standards as the applicant. Any such person or entity shall produce for the commission upon request any document or information which bears any relation to the application.

(e) The applicant shall produce whatever information, documentation or assurances the commission requires to establish by clear and convincing evidence the adequacy of financial resources.

(13) The commission shall require an applicant for a terminal operator license to produce the information, documentation and assurances as the commission may require to establish by clear and convincing evidence that the applicant has sufficient business ability and experience to create and maintain a successful, efficient operation. An applicant shall produce the names of all proposed key employees and a description of their respective or proposed responsibilities as they become known.

(14) In addition to other information required by Sections 9 through 45 of this act, a person applying for a terminal operator license shall provide the following information:

(a) The organization, financial structure and nature of all businesses operated by the person, including any affiliate, intermediary, subsidiary or holding companies, the names and personal employment and criminal histories of all officers, directors and key employees of the corporation; the names of all holding, intermediary, affiliate and subsidiary companies of the corporation; and the organization, financial structure and nature of all businesses operated by such holding, intermediary and subsidiary companies as the commission may require, including names and personal employment and criminal histories of such officers, directors and principal employees of such corporations and companies as the commission may require.

(b) The extent of securities held in the corporation by all officers, directors and underwriters and their remuneration in the form of salary, wages, fees or otherwise.

(15) Upon being satisfied that the requirements of this section have been met, the commission may approve the application and issue the applicant a terminal operator license consistent with all of the following:

(a) (i) The license shall be valid for a period of three (3) years.

(ii) Nothing in this paragraph shall be construed to relieve a licensee of the affirmative duty to notify the commission of any changes relating to the status of its license or to any information contained in the application materials on file with the commission.

(b) The license shall be nontransferable.

(16) (a) At least three (3) months prior to expiration of a terminal operator license, the terminal operator licensee seeking renewal of its license shall submit a renewal application to the commission.

(b) If the renewal application satisfies the requirements of this section, the commission may renew the licensee's terminal operator license.

(c) If the commission receives a complete renewal application but fails to act upon the renewal application prior to the expiration of the terminal operator license, the terminal operator license shall continue in effect until acted upon by the commission.

SECTION 18. (1) All principals shall obtain a principal license from the commission.

(2) A principal license application shall be in a form prescribed by the commission and shall include the following:

(a) Verification of status as a principal from a terminal operator licensee, manufacturer licensee or supplier licensee.

(b) A description of responsibilities as a principal.

(d) Details relating to a similar license, permit or other authorization obtained in another jurisdiction.

(e) Additional information required by the commission.

(3) Following review of the application and the background investigation, the commission may issue a principal license if the applicant has proven by clear and convincing evidence that the applicant is a person of good character, honesty and integrity and is eligible and suitable to be licensed as a principal.

(4) A license issued under this section shall be nontransferable.

(5) An individual who receives a principal license need not obtain a key employee license.

SECTION 19. (1) All key employees shall obtain a key employee license from the commission.

(2) A key employee license application shall be in a form prescribed by the commission and shall include the following:

(a) Verification of status as a key employee from a terminal operator licensee, establishment licensee, manufacturer licensee or supplier licensee.

(b) A description of employment responsibilities.

(d) Details relating to a similar license or other authorization obtained in another jurisdiction.

(e) Additional information required by the commission.

(3) Following review of the application and the background investigation, the commission may issue a key employee license if the applicant has proven by clear and convincing evidence that the applicant is a person of good character, honesty and integrity and is eligible and suitable to be licensed as a key employee.

(4) A license issued under this section shall be nontransferable.

SECTION 20. (1) In the event that any establishment license application, terminal operator license application, supplier license application or manufacturer license application is not approved by the commission based on a finding that an individual who is a principal or has an interest in the person applying for the license does not meet the character requirements of Sections 9 through 45 of this act or any of the eligibility requirements under Sections 9 through 45 of this act or a person who purchases a controlling interest in the applicant in violation of Section 30 of this act, the commission may afford the individual the opportunity to completely divest his interest in the person, its affiliate, intermediary, subsidiary or holding company seeking the license and, after such divestiture, reconsider the person's or applicant's suitability for licensure in an expedited proceeding and may, after such proceeding, issue the person or applicant a terminal operator license. The commission shall approve the terms and conditions of any divestiture under this section.

(2) Under no circumstances shall any divestiture be approved by the commission if the compensation for the divested interest exceeds the cost of the interest.

SECTION 21. (1) A manufacturer that elects to contract with a supplier under Sections 9 through 45 of this act shall ensure that the supplier is appropriately licensed under this section.

(2) A person seeking to provide video gaming terminals, redemption terminals or associated equipment to a terminal operator licensee within this state through a contract with a licensed manufacturer must apply to the commission for the appropriate supplier license.

(3) An application for a supplier license shall be on the form required by the commission and shall include all of the following:

(a) The name and business address of the applicant and the applicant's affiliates, intermediaries, subsidiaries and holding companies; the principals and key employees of each business; and a list of employees and their positions within each business, as well as financial information required by the commission.

(b) A statement that the applicant and each affiliate, intermediary, subsidiary or holding company of the applicant are not terminal operator licensees.

(c) Proof that the applicant has or will establish a place of business in this state. A supplier licensee shall maintain its place of business in this state to remain eligible for licensure.

(d) The consent to a background investigation by the commission of the applicant, its principals and key employees or other persons required by the commission and a release to obtain the information necessary for the completion of the background investigation.

(e) The details of any supplier license issued by the commission to the applicant, if applicable.

(f) The details of any equivalent license granted or denied by other jurisdictions where gaming activities as authorized by Sections 9 through 45 of this act are permitted.

(g) The type of goods and services to be supplied and whether those goods and services will be provided through purchase, lease, contract or otherwise.

(h) Other information determined by the commission to be appropriate.

(4) Upon being satisfied that the requirements of this section have been met, the commission may approve the application and issue the applicant a supplier license consistent with all of the following:

(a) (i) The license shall be valid for a period of three (3) years.

(ii) Nothing in this paragraph shall be construed to relieve a licensee of the affirmative duty to notify the commission of a change relating to the status of its license or to information contained in the application materials on file with the commission.

(b) The license shall be nontransferable.

(5) (a) At least three (3) months prior to expiration of a supplier license, the supplier licensee seeking renewal of its license shall submit a renewal application to the commission.

(b) If the renewal application satisfies the requirements of this section, the commission may renew the licensee's supplier license.

(c) If the commission receives a complete renewal application but fails to act upon the renewal application prior to the expiration of the supplier license, the supplier license shall continue in effect until acted upon by the commission.

SECTION 22. (1) A person seeking to manufacture video gaming terminals, redemption terminals and associated equipment for use in this state must apply to the commission for a manufacturer license.

(2) An application for a manufacturer license shall be on the form required by the commission and shall include all of the following:

(b) A statement that the applicant and each affiliate, intermediary, subsidiary or holding company of the applicant are not terminal operator licensees.

(c) The consent to a background investigation by the commission of the applicant, its principals, its key employees, its intermediaries, its subsidiaries or other persons required by the commission and a release to obtain the information necessary for the completion of the background investigation.

(d) The details of any equivalent license granted or denied by other jurisdictions where gaming activities as authorized by Sections 9 through 45 of this act are permitted.

(e) The details of any manufacturer license issued by the commission to the applicant, if applicable.

(f) The type of video gaming terminals, redemption terminals or associated equipment to be manufactured or repaired.

(g) Other information determined by the commission to be appropriate.

(3) Upon being satisfied that the requirements of subsection (2) of this section have been met, the commission may approve the application and grant the applicant a manufacturer license consistent with all of the following:

(a) (i) The license shall be valid for a period of three (3) years.

(ii) Nothing in this paragraph shall be construed to relieve the licensee of the affirmative duty to notify the commission of a change relating to the status of its license or to other information contained in application materials on file with the commission.

(b) The license shall be nontransferable.

(4) (a) At least three (3) months prior to expiration of a manufacturer license, the manufacturer licensee seeking renewal of its license shall submit a renewal application accompanied by the renewal fee to the commission.

(b) If the renewal application satisfies the requirements of subsection (2) of this section, the commission may renew the licensee's manufacturer license.

(c) If the commission receives a complete renewal application but fails to act upon the renewal application prior to the expiration of the manufacturer license, the manufacturer license shall continue in effect until acted upon by the commission.

(5) The following shall apply to a licensed manufacturer:

(a) A manufacturer or its designee, as licensed by the commission, may supply or repair a video gaming terminal, redemption terminal or associated equipment manufactured by the manufacturer, provided the manufacturer holds the appropriate manufacturer license.

(b) A manufacturer of video gaming terminals or redemption terminals may contract with a supplier under Sections 9 through 45 of this act, redemption terminals or associated equipment to a terminal operator licensee within this state, provided the supplier is licensed to supply video gaming terminals, redemption terminals or associated equipment.

(6) (a) No person may manufacture video gaming terminals, redemption terminals or associated equipment for use within this state by a terminal operator licensee unless the person has been issued the appropriate manufacturer license under this section.

(b) No person issued a license under this section may apply for or be issued a terminal operator license or establishment license under Sections 9 through 45 of this act.

SECTION 23. (1) (a) A person who desires to be a gaming employee and has a bona fide offer of employment from a terminal operator licensee, establishment licensee or supplier licensee shall apply to the commission for an occupation permit.

(b) A person may not be employed as a gaming employee unless and until that person holds an appropriate occupation permit issued under this section.

(c) The commission may promulgate regulations to reclassify a category of nongaming employees or gaming employees upon a finding that the reclassification is in the public interest and consistent with the objectives of Sections 9 through 45 of this act.

(2) The application for an occupation permit shall include, at a minimum:

(a) The name and home address of the person.

(b) The previous employment history of the person.

(c) The criminal history record of the person, as well as the person's consent for the commission to conduct a background investigation.

(d) A photograph of the person.

(e) Evidence of the offer of employment and the nature and scope of the proposed duties of the person, if known.

(f) The details of an occupation permit or similar license granted or denied to the applicant in other jurisdictions.

(g) Other information determined by the commission to be appropriate.

(3) No terminal operator licensee may employ or permit a person under twenty-one (21) years of age to render service in a video gaming area.

SECTION 24. (1) (a) The commission may determine whether the licensing standards of another jurisdiction within the United States in which an applicant, its affiliate, intermediary, subsidiary or holding company for a terminal operator license is similarly licensed are comprehensive and thorough and provide similar adequate safeguards as those required by this section.

(b) If the commission makes that determination, it may issue a terminal operator license to an applicant who holds a terminal operator license in the other jurisdiction after conducting an evaluation of the information relating to the applicant from the other jurisdictions, as updated by the commission, and evaluating other information related to the applicant received from that jurisdiction and other jurisdictions where the applicant may be licensed, the commission may incorporate such information in whole or in part into the commission's evaluation of the applicant.

(2) (a) In the event an applicant for a terminal operator license is licensed in another jurisdiction, the commission may determine to use an alternate process requiring only that information determined by the commission to be necessary to consider the issuance of a license, including financial viability of the licensee, to such an applicant.

(b) Nothing in this section shall be construed to waive fees associated with obtaining a license through the normal application process.

(3) In the event an applicant for a terminal operator license under Sections 9 through 45 of this act holds a gaming license under the Mississippi Gaming Control Act, the commission may determine to use an abbreviated process requiring only that information determined by the commission to be necessary to consider the issuance of a license, including financial viability of the applicant.

SECTION 25. (1) (a) The commission may determine whether the licensing standards of another jurisdiction within the United States in which an applicant for a manufacturer license is similarly licensed are comprehensive and thorough and provide similar adequate safeguards as those required by Sections 9 through 45 of this act.

(b) If the commission makes that determination, it may issue a manufacturer license to an applicant who holds a similar manufacturer license in the other jurisdiction after conducting an evaluation of the information relating to the applicant from the other jurisdictions, as updated by the commission, and evaluating other information related to the applicant received from that jurisdiction and other jurisdictions where the applicant may be licensed, the commission may incorporate such information in whole or in part into the commission's evaluation of the applicant.

(2) (a) In the event an applicant for a manufacturer license is licensed in another jurisdiction, the commission may determine to use an abbreviated process requiring only that information determined by the commission to be necessary to consider the issuance of a license, including financial viability of the applicant.

(b) Nothing in this section shall be construed to waive fees associated with obtaining a license through the normal application process.

(3) in the event an applicant for a manufacturer license under Sections 9 through 45 of this act holds a manufacturer license under the Mississippi Gaming Control Act, the commission may determine to use an abbreviated process requiring only that information determined by the commission to be necessary to consider the issuance of a license, including financial viability of the applicant.

SECTION 26. (1) (a) The commission may determine whether the licensing standards of another jurisdiction within the United States in which an applicant for a supplier's license is similarly licensed are comprehensive and thorough and provide similar adequate safeguards as required by Sections 9 through 45 of this act.

(b) If the commission makes that determination, it may issue a supplier license to an applicant who holds a similar supplier license in another jurisdiction after conducting an evaluation of the information relating to the applicant from the other jurisdictions, as updated by the commission, and evaluating other information related to the applicant received from that jurisdiction and other jurisdictions where the applicant may be licensed, the commission may incorporate the information in whole or in part into its evaluation of the applicant.

(2) (a) In the event an applicant for a supplier license is licensed in another jurisdiction, the commission may determine to use an abbreviated process requiring only that information determined by the commission to be necessary to consider the issuance of a license, including financial viability of the applicant.

(b) Nothing in this section shall be construed to waive any fees associated with obtaining a license through the normal application process.

(3) In the event an applicant for a supplier license under Sections 9 through 45 of this act holds a supplier license under the Mississippi Gaming Control Act, the commission may determine to use an abbreviated process requiring only that information determined by the commission to be necessary to consider the issuance of a license, including financial viability of the applicant.

SECTION 27. (1) A truck stop establishment that submits an application for an establishment license shall include at a minimum:

(a) The name, address and photograph of the applicant and additional financial information required by the commission.

(b) A description of the proposed surveillance and security measures to ensure the security of the proposed video gaming area.

(d) The criminal history record of the applicant, principal and key employees and a consent for the commission to conduct a background investigation on the applicant, principals and key employees.

(e) Other information determined to be appropriate by the commission.

(2) A license issued under this section shall be nontransferable.

(3) An establishment applying for a license under this section shall continue to provide information required by the commission or the commission and cooperate in any inquiry or investigation.

(4) Upon being satisfied that the requirements of subsection (1) of this section have been met, the commission may approve the application and issue the applicant an establishment license consistent with all of the following:

(a) (i) The license shall be valid for a period of three (3) years.

(b) The license shall be nontransferable.

(5) (a) At least three (3) months prior to expiration of an establishment license, the establishment licensee seeking renewal of its license shall submit a renewal application accompanied by the renewal fee to the commission.

(b) If the renewal application satisfies the requirements of subsection (4) of this section, the commission may renew the licensee's establishment license.

(c) If the commission receives a complete renewal application but fails to act upon the renewal application prior to the expiration of the establishment license, the establishment license shall continue in effect until acted upon by the commission.

SECTION 28. (1) The commission shall be prohibited from granting a license under Sections 9 through 45 of this act to any applicant who has been convicted of a felony offense in any jurisdiction.

(2) In addition to the prohibition under subsection (1) of this section, the commission shall be prohibited from granting the following:

(a) A principal license or key employee license to an individual who has been convicted in a jurisdiction of a misdemeanor offense for gambling, sale of alcoholic beverages to minors, prostitution or procuring or inducing individuals to engage in prostitution.

(b) A gaming employee permit or a license other than a principal license or key employee license to an individual who has been convicted in a jurisdiction of a misdemeanor offense for gambling, sale of alcoholic beverages to minors, prostitution or procuring or inducing individuals to engage in prostitution.

(c) An establishment license to an applicant who has been convicted in a jurisdiction of a misdemeanor offense for gambling, sale of alcoholic beverages to minors, prostitution or procuring or inducing individuals to engage in prostitution.

(3) in determining whether to issue a license or permit, the commission shall consider the following factors:

(a) The nature and duties of the applicant's position with the licensed entity.

(b) The nature and seriousness of the offense or conduct.

(d) The age of the applicant when the offense or conduct was committed.

(e) Whether the offense or conduct was an isolated or a repeated incident.

(f) Evidence of rehabilitation, including good conduct in the community, counseling or psychiatric treatment received and the recommendation of persons who have substantial contact with the applicant.

(4) For purposes of this section, a felony offense is any of the following:

(a) An offense classified as a felony or punishable under the laws of this state by imprisonment for more than five (5) years.

(b) An offense which, under the laws of another jurisdiction, is:

(i) classified as a felony; or

(ii) punishable by imprisonment for more than five (5) years.

(c) An offense under the laws of another jurisdiction which, if committed in this state, would be subject to imprisonment for more than five (5) years.

SECTION 29. (1) (a) In addition to any other criteria provided under Sections 9 through 45 of this act, any terminal operator, truck stop establishment, supplier, manufacturer, gaming employee, key employee, principal or other person that the commission approves as qualified to receive a license, permit or other authorization under Sections 9 through 45 of this act shall be issued a license or permit upon the payment of the appropriate fee and upon the fulfillment of conditions required by the commission or provided for in Sections 9 through 45 of this act.

(b) Nothing contained in Sections 9 through 45 of this act is intended or shall be construed to create an entitlement to a license, permit or other authorization by a person.

(2) (a) All permits and licenses issued under Sections 9 through 45 of this act unless otherwise provided shall be subject to renewal every three (3) years.

(b) The application for renewal of a license or permit, unless otherwise provided, shall be submitted at least one hundred eighty (180) days prior to the expiration of the permit or license and shall include an update of the information contained in the initial and any prior renewal applications and the payment of any renewal fee required by Sections 9 through 45 of this act.

(c) Nothing in this subsection shall be construed to relieve a licensee or permittee of the affirmative duty to notify the commission of a change relating to the status of its license or permit or to other information contained in the application materials on file with the commission.

(3) (a) In addition to other sanctions imposed under Sections 9 through 45 of this act, the commission may at its discretion suspend, revoke or deny renewal of a permit or license issued under Sections 9 through 45 of this act if it receives information from any source that the applicant or any of its officers, directors, owners or key employees is in violation of any provision of Sections 9 through 45 of this act, that the applicant has furnished the commission with false or misleading information or that the information contained in the applicant's initial application or renewal application is no longer true and correct such that the applicant is no longer eligible.

(b) In the event of a revocation or failure to renew, the licensee's authorization to conduct the previously approved activity shall immediately cease the activity and all fees paid in connection with the license shall be deemed to be forfeited.

(c) In the event of a suspension, the applicant's authorization to conduct the previously approved activity shall immediately cease until the commission has notified the applicant that the suspension is no longer in effect.

(4) (a) A license issued by the commission is a grant of the privilege to conduct a business in this state.

(b) Except as permitted by Section 30 of this act, no license granted or renewed pursuant to Sections 9 through 45 of this act may be sold, transferred or assigned to another person.

(d) The commission has the sole discretion to issue, renew, condition or deny the issuance of a license based upon the requirements of Sections 9 through 45 of this act.

(e) Nothing contained in Sections 9 through 45 of this act is intended or shall be construed to create in any person an entitlement to a license.

SECTION 30. (1) (a) A terminal operator licensee shall promptly notify the commission of a proposed or contemplated change of ownership of the terminal operator licensee by a person or group of persons acting in concert which involves any of the following:

(i) More than five percent (5%) of a terminal operator licensee's securities or other ownership interests.

(ii) More than five percent (5%) of the securities or other ownership interests of a corporation or other form of business entity that owns directly or indirectly at least twenty percent (20%) of the voting or other securities or other ownership interests of the licensee.

(iii) The sale of all or substantially all of a licensee's assets.

(iv) Other transaction or occurrence deemed by the commission to be relevant to license qualifications.

(b) (i) Notwithstanding the provisions of paragraph (a) of this subsection, no terminal operator licensee may be required to notify the commission of an acquisition by an institutional investor under paragraph (a)(i) or (ii) of this subsection if the institutional investor holds less than ten percent (10%) of the securities or other ownership interests referred to in paragraph (a)(i) or (ii) of this subsection, the securities or interests are publicly traded securities and its holdings of the securities were purchased for investment purposes only and the institutional investor files with the commission a certified statement to the effect that it has no intention of influencing or affecting, directly or indirectly, the affairs of the licensee; however, it shall be permitted to vote on matters put to the vote of the outstanding security holders.

(ii) Notice to the commission and commission approval shall be required prior to completion of any proposed or contemplated change of ownership of a terminal operator licensee that meets the criteria of this section.

(2) (a) The purchaser of all or substantially all of the assets of a terminal operator licensee shall, if not already a terminal operator licensee, independently qualify for a license in accordance with Sections 9 through 45 of this act and shall pay the license fee required by Sections 9 through 45 of this act.

(b) A change in control of a terminal operator licensee shall require that the terminal operator licensee independently qualify for a license in accordance with Sections 9 through 45 of this act, and the terminal operator licensee shall pay a new license fee as required by Section 42 of this act, except as otherwise required by the commission pursuant to this section.

(c) The new license fee shall be paid upon the assignment and actual change of control or ownership of the terminal operator license.

(3) For purposes of this section, a change in control of a terminal operator licensee shall mean the acquisition by a person or group of persons acting in concert of more than twenty percent (20%) of a terminal operator licensee's securities or other ownership interests, with the exception of any ownership interest of the person that existed at the time of initial licensing and payment of the initial slot machine license fee, or more than twenty percent (20%) of the securities or other ownership interests of a corporation or other form of business entity that owns directly or indirectly at least twenty percent (20%) of the voting or other securities or other ownership interests of the licensee.

(4) The commission may in its discretion eliminate the need for qualification or proportionately reduce, but not eliminate, the new license fee otherwise required pursuant to this section in connection with a change of control of a licensee, depending upon the type of transaction, the relevant ownership interests and changes to the interests resulting from the transaction and other considerations deemed relevant by the commission.

(5) Failure to comply with this section may cause the license issued under Sections 9 through 45 of this act to be revoked or suspended by the commission unless the purchase of the assets or the change in control that meets the criteria of this section has been independently qualified in advance by the commission and any required license fee has been paid.

SECTION 31. (1) A manufacturer may not be licensed as a terminal operator or own, manage or control an establishment licensee or terminal operator licensee, but may also be licensed as a supplier.

(2) A supplier may not be licensed as a terminal operator or own, manage or control an establishment licensee or terminal operator licensee.

(3) A terminal operator may not be licensed as a manufacturer or supplier or own, manage or control an establishment licensee or own, manage or control premises used by an establishment licensee.

(4) An establishment licensee may not be licensed as a manufacturer, supplier or terminal operator.

SECTION 32. (1) (a) Within ninety (90) days after the effective date of Sections 9 through 45 of this act, the commission shall make applications for establishment licenses available to applicants.

(b) The commission shall issue a conditional license to an applicant for an establishment license if the applicant satisfies, as determined by the commission, all of the following criteria:

(i) The applicant has never been convicted of a felony in any jurisdiction.

(ii) The applicant is current on all state taxes.

(iii) The applicant has submitted a completed application for an establishment license in accordance with Sections 9 through 45 of this act, which may be submitted concurrently with the applicant's request for a conditional license.

(iv) The applicant has never been convicted of a gambling law violation in any jurisdiction.

(c) (i) The commission shall issue a conditional license to an applicant for an establishment license, within sixty (60) days after the completed application has been received by the commission, provided that the commission determines that the criteria contained in paragraph (b) of this subsection has been satisfied.

(ii) If the commission determines that the criteria contained in paragraph (b) of this subsection has not been satisfied, the commission shall give a written explanation to the applicant as to why it has determined the criteria has not been satisfied.

(d) A conditional license shall be valid until:

(i) The commission either approves or denies the applicant's application for licensure;

(ii) The conditional license is terminated for a violation of Sections 9 through 45 of this act; or

(iii) One (1) calendar year has passed since the conditional license was issued.

(e) The commission may extend the duration of the conditional license for one (1) calendar year.

(f) An applicant shall attest by way of affidavit under penalty of perjury that the applicant is not otherwise prohibited from licensure according to the requirements of this section or any other provision of Sections 9 through 45 of this act.

(g) A request for conditional licensure under this subsection shall include payment of a fee in the amount of One Hundred Dollars ($100.00), which fee shall be in addition to the applicable fee required under Section 42 of this act.

SECTION 33. (1) (a) Within ninety (90) days after the effective date of Sections 9 through 45 of this act, the commission shall make applications for terminal operator licenses available to applicants.

(b) The commission shall issue a conditional license to an applicant for a terminal operator license if the applicant satisfies, as determined by the commission, all of the following criteria:

(i) The applicant has never been convicted of a felony in any jurisdiction.

(ii) The applicant is current on all state taxes.

(iii) The applicant has submitted a completed application for a terminal operator license which may be submitted concurrently with the applicant's request for a conditional license.

(iv) The applicant has never had its terminal operator license or similar gaming license denied or revoked in another jurisdiction.

(v) The applicant has never been convicted of a gambling law violation in any jurisdiction.

(c) (i) The commission shall issue a conditional license to an applicant for a terminal operator license, within sixty (60) days after the completed application has been received by the commission, provided that the commission determines that the criteria contained in paragraph (b) of this subsection has been satisfied.

(d) A conditional license shall be valid until:

(i) The commission either approves or denies the applicant's application for licensure;

(ii) The conditional license is terminated for a violation of Sections 9 through 45 of this act; or

(iii) One (1) calendar year has passed since the conditional license was issued.

(e) The commission may extend the duration of the conditional license for one (1) calendar year.

(f) An applicant shall attest by way of affidavit under penalty of perjury that the applicant is not otherwise prohibited from licensure according to the requirements of this subsection or any other provision of Sections 9 through 45 of this act.

(g) A request for conditional licensure under this subsection shall include payment of a fee in the amount of One Hundred Dollars ($100.00), which fee shall be in addition to the fee required under Section 42 of this act.

(2) (a) Within ninety (90) days after the effective date of Sections 9 through 45 of this act, the commission shall make applications available for manufacturer and supplier license.

(b) The commission shall issue a conditional license to an applicant for a manufacturer or supplier license if the applicant satisfies, as determined by the commission, all of the following criteria:

(i) The applicant has never been convicted of a felony.

(ii) The applicant is current on all state taxes.

(iii) The applicant has submitted a completed application a manufacturer or supplier license, which may be submitted concurrently with the applicant's request for a conditional license.

(iv) The applicant has never had its manufacturer, supplier or similar gaming license denied or revoked in another jurisdiction.

(v) The applicant has never been convicted of a gambling law violation in any jurisdiction.

(c) (i) The commission shall issue a conditional license to an applicant for a manufacturer or supplier license within sixty (60) days after the completed application has been received by the commission, provided that the commission determines that the criteria contained in paragraph (b) of this subsection has been satisfied.

(d) A conditional license shall be valid until:

(i) The commission either approves or denies the applicant's application for licensure;

(ii) The conditional license is terminated for a violation of Sections 9 through 45 of this act; or

(iii) One (1) calendar year has passed since the conditional license was issued.

(e) The commission may extend the duration of the conditional license for one (1) calendar year.

(g) A request for a conditional license under this subsection shall include payment of a fee in the amount of One Thousand Dollars ($1,000.00), which fee shall be in addition to the other fees required by Sections 9 through 45 of this act.

(3) (a) Within ninety (90) days after the effective date of Sections 9 through 45 of this act, the commission shall make applications available for any other license required under Sections 9 through 45 of this act.

(b) The commission shall issue a conditional license to an applicant if the applicant satisfies, as determined by the commission, all of the following criteria:

(i) The applicant has never been convicted of a felony in any jurisdiction.

(ii) The applicant is current on all state taxes. (iii) The applicant has submitted a completed application for licensure, which may be submitted concurrently with the applicant's request for a conditional license.

(iv) The applicant has never been convicted of a gambling law violation in any jurisdiction.

(c) (i) The commission shall issue a conditional license to an applicant within sixty (60) days after the completed application has been received by the commission, provided that the commission determines that the criteria contained in paragraph (b) of this subsection have been satisfied.

(d) A conditional license shall be valid until:

(i) The commission either approves or denies the applicant's application for licensure;

(ii) The conditional license is terminated for a violation of Sections 9 through 45 of this act; or

(iii) One (1) calendar year has passed since the conditional license was issued.

(e) The commission may extend the duration of the conditional license for one (1) calendar year.

(g) A request for conditional licensure under this subsection shall include payment of a fee in the amount of One Hundred Dollars ($100.00), which fee shall be in addition to the other fees required under Sections 9 through 45 of this act.

(4) (a) The commission may not utilize the alternative licensing standards for a terminal operator license, manufacturer license or a supplier license authorized under Sections 9 through 45 of this act to prioritize the issuance of a terminal operator, manufacturer or supplier license under Sections 9 through 45 of this act.

(b) The commission shall ensure that applications made to the commission according to the alternative standards authorized under Sections 9 through 45 of this act are not approved or denied in a time period that is less than the time period in which an application for a conditional license is approved or denied under this section.

(5) If the commission receives an application that is incomplete, the commission shall, within seven (7) days of receiving the incomplete application, notify the applicant of additional information required by the commission.

SECTION 34. (1) No video gaming terminal or redemption terminal or associated equipment may be made available for use in this state prior to being tested and certified by the commission in accordance with this section.

(2) Video gaming terminals shall be tested and certified to meet the following specifications:

(a) The video gaming terminal shall have the ability to be linked to the central control computer.

(b) The video gaming terminal shall be marked with an irremovable identification plate that is placed in a conspicuous location on the exterior of the video gaming terminal. The identification plate shall contain the name of the manufacturer and the serial and model numbers of the video gaming terminal.

(c) The video gaming terminal shall prominently display the rules of play either on the video gaming terminal face or screen.

(d) The video gaming terminal may not have the ability to dispense cash, tokens or anything of value, except redemption tickets which shall only be exchangeable for cash at a redemption terminal or reinserted into another video gaming terminal located in the same video gaming area as the video gaming terminal.

(e) The cost of a credit shall only be One cent (1¢), Five Cents (5¢), Ten Cents (10¢) or Twenty-five Cents (25¢).

(f) The maximum wager per individual game shall not exceed Five Dollars ($5.00).

(g) The maximum prize per individual game shall not exceed One Thousand Dollars ($1,000.00).

(h) The video gaming terminal shall be designed and manufactured with total accountability to include gross proceeds, net profits, winning percentages and other information the commission requires.

(i) The video gaming terminal shall pay out a minimum of eighty-five percent (85%) of the amount wagered.

(j) Other specifications the commission requires.

(3) Redemption terminals shall be tested and certified to meet the following specifications:

(a) The redemption terminal shall be marked with an irremovable identification plate that is placed in a conspicuous location on the exterior of the redemption terminal. The identification plate shall contain the name of the manufacturer and the serial and model numbers of the redemption terminal

(b) The redemption terminal shall only accept redemption tickets from video gaming terminals located in the same video gaming area.

(c) The redemption terminal shall be designed and manufactured with total accountability to record information the commission requires.

(d) Other specifications the commission requires.

(4) (a) The commission may determine, in its discretion, whether the video gaming terminal or redemption terminal testing and certification standards of another jurisdiction within the United States in which a manufacturer licensee is licensed are comprehensive and thorough and provide similar adequate safeguards as those required by Sections 9 through 45 of this act.

(b) If the commission makes the determination under paragraph (a) of this subsection, the commission may permit a manufacturer licensee to deploy those video gaming terminals or redemption terminals which have met the video gaming terminal or redemption terminal testing and certification standards in such other jurisdictions without undergoing the full testing and certification process by the commission's testing facility.

(c) In the event video gaming terminals or redemption terminals of a manufacturer licensee are licensed in the other jurisdiction, the commission may determine to use an abbreviated process requiring only that information determined by the commission to be necessary to consider the issuance of a video gaming terminal or redemption terminal certification to such an applicant.

(5) The commission may, in its discretion, rely upon the certification of a video gaming terminal or redemption terminal that has met the testing and certification standards of one or more commission-approved independent private testing and certification facilities.

(6) (a) A fee for the testing and certification of a video gaming terminal or redemption terminal shall be paid by the manufacturer licensee submitting the terminal, which fee shall be an amount established by the commission according to a schedule adopted by the commission.

(b) Fees established by the commission shall be exempt from any fee limitation contained in Section 42 of this act.

(7) The commission shall ensure that all video gaming terminals certified and approved for use in this state are compatible and comply with the central control computer and protocol specifications approved by the commission.

SECTION 35. (1) An establishment licensee may offer video gaming terminals for play within its premises, subject to the following:

(a) No more than five (5) video gaming terminals may be placed on the premises of the establishment licensee.

(b) Redemption tickets shall only be exchanged for cash through a redemption terminal or reinserted into another video gaming terminal in the same video gaming area or as otherwise authorized by the commission in the event of a failure or malfunction in a redemption terminal, and at least one (1) redemption terminal shall be located in the video gaming area.

(c) Video gaming terminals located on the premises of the establishment licensee shall be placed and operated by a terminal operator licensee pursuant to a terminal placement agreement.

(d) No video gaming area may be located in an area that is not properly segregated from minors.

(e) The entrance to the video gaming area shall be secure and easily seen and observed by at least one (1) employee of the establishment licensee.

(f) The video gaming area shall at all times be monitored by an employee of the establishment licensee either directly or through live monitoring of video surveillance. The employee must be at least twenty-one (21) years of age and have completed the mandatory training program required in Sections 9 through 45 of this act.

(g) No establishment licensee may provide an incentive.

(h) No minor or person who is not a holder of a commercial driver's license shall be permitted to play a video gaming terminal or enter the video gaming area.

(i) No visibly intoxicated person shall be permitted to play a video gaming terminal.

(j) No establishment licensee may extend credit or accept a credit card or debit card for play of a video gaming terminal.

(k) No establishment licensee may make structural alterations or significant renovations to a video gaming area unless the establishment licensee has notified the terminal operator licensee and obtained prior approval from the commission.

(l) No establishment licensee may move a video gaming terminal or redemption terminal after installation by a terminal operator licensee.

(2) A terminal operator licensee may place and operate video gaming terminals on the premises of an establishment licensee, subject to the following:

(a) No more than five (5) video gaming terminals may be placed on the premises of the establishment licensee.

(b) Redemption tickets shall only be exchanged for cash through a redemption terminal located within the same video gaming area or reinserted into another video gaming terminal located in the same video gaming area as the video gaming terminal.

(c) Video gaming terminals located on the premises of the establishment licensee shall be placed and operated pursuant to a terminal placement agreement.

(d) No terminal operator licensee may provide an incentive.

(e) No terminal operator licensee may extend credit or accept a credit card or debit card for play of a video gaming terminal.

(f) No terminal operator licensee may give or offer to give, directly or indirectly, any type of inducement to a truck stop establishment to secure or maintain a terminal placement agreement.

(g) No terminal operator licensee may give an establishment licensee a percentage of gross terminal revenue other than thirty-three percent (33%) of the gross terminal revenue of the video gaming terminals operating in the establishment licensee's premises.

(h) A terminal operator licensee shall only operate, install or otherwise make available for public use a video gaming terminal or redemption terminal that has been obtained from a manufacturer licensee or supplier licensee.

(i) No terminal operator licensee may move a video gaming terminal or redemption terminal after installation unless prior approval is obtained from the commission.

SECTION 36. (1) No terminal operator licensee may place and operate video gaming terminals on the premises of an establishment licensee unless pursuant to a terminal placement agreement approved by the commission. Approval shall be presented upon connection of one or more video gaming terminals at the establishment licensee to the central control computer.

(2) The commission shall establish through regulation minimum standards for terminal placement agreements.

(3) Terminal placement agreements shall be valid for a minimum term of sixty (60) months but shall not exceed a term of one hundred twenty (120) months.

(4) A terminal placement agreement shall include provisions that:

(a) Render the agreement invalid if either the terminal operator license or terminal operator application or the establishment license or establishment licensee application is denied, revoked, not renewed, withdrawn or surrendered.

(b) Provide the establishment licensee no more or less than thirty-three percent (33%) of gross terminal revenue from each video gaming terminal located on the premises of the establishment licensee.

(5) Only an establishment licensee or applicant may sign or agree to sign a terminal placement agreement with an applicant for a terminal operator license or a terminal operator licensee.

(6) An agreement entered into by a truck stop establishment prior to the effective date of Sections 9 through 45 of this act with a person or entity for the placement, operation, service or maintenance of video gaming terminals, including an agreement granting a person or entity the right to enter into an agreement or match any offer made after the effective date of this section shall be void and may not be approved by the commission.

(7) No terminal placement agreement may be transferred or assigned unless the individual or entity making the assignment is either a terminal operator applicant or terminal operator licensee and the individual or entity receiving the assignment of the terminal placement agreement is either a terminal operator applicant or terminal operator licensee under Sections 9 through 45 of this act.

SECTION 37. A person issued a license under Sections 9 through 45 of this act shall:

(a) Provide assistance or information required by the commission and to cooperate in inquiries, investigations and hearings.

(b) Consent to inspections, searches and seizures.

(c) Inform the commission of actions that the person believes would constitute a violation of Sections 9 through 45 of this act.

(d) Inform the commission of arrests for crimes and offenses.

SECTION 38. (1) an establishment licensee shall conspicuously post signs similar to the following statement:

(a) If you or someone you know has a gambling problem, help is available. Call (toll-free telephone number) or text (toll-free telephone number).

(b) At least one (1) sign shall be posted within the video gaming area and at least one (1) sign shall be posted within five (5) feet of each automated teller machine located within the establishment licensee's premises, if applicable.

(2) the toll-free telephone number required to be posted in subsection (1) of this section shall be the same number maintained by the Mississippi Council on Problem and Compulsive Gambling.

(3) (a) An establishment licensee shall have available on its premises access to materials regarding compulsive and problem gambling assistance.

(b) The available materials required by paragraph (1) shall be a uniform, statewide handout developed by the commission in consultation with the commission of drug and alcohol programs or successor agency.

(c) The available materials required by paragraph (a) of this subsection shall be displayed conspicuously at least within the video gaming area.

(d) An establishment licensee that fails to fulfill the requirements of this section shall be assessed by the commission an administrative penalty and may have its establishment license suspended. When determining the penalty and number of suspension days, the commission shall consider the length of time in which the materials were not available

SECTION 39. (1) The commission shall have the following powers and duties:

(a) Enforce the provisions of Sections 9 through 45 of this act.

(b) Investigate and review applicants and applications for a license or registration. The commission shall be prohibited from disclosing any portion of a background investigation report to a member of the commission prior to the submission of the commission's final background investigation report relating to the applicant's suitability for licensure to the commission. The executive director, on behalf of the commission, shall prepare the final background investigation report for inclusion in a final report relating to the applicant's suitability for licensure.

(c) Investigate licensees, registrants and other persons regulated by the commission under Sections 9 through 45 of this act for noncriminal violations of Sections 9 through 45 of this act, including potential violations referred to the commission by the commission or other person.

(d) Monitor video gaming operations to ensure compliance with Sections 9 through 45 of this act.

(e) Inspect and examine licensed entities. Inspections may include the review and reproduction of documents or records.

(f) Conduct reviews of a licensed entity as necessary to ensure compliance with Sections 9 through 45 of this act. A review may include the review of accounting, administrative and financial records, management control systems, procedures and other records utilized by a licensed entity.

(g) Cooperate in the investigation and prosecution of criminal violations related to Sections 9 through 45 of this act.

(2) The commission shall at all times have the power of access to examine and audit equipment and records relating to all aspects of the operation of video gaming terminals and redemption terminals under Sections 9 through 45 of this act.

(3) (a) The district attorneys of the several counties and the Attorney General shall have authority to investigate and to institute criminal proceedings for a violation of Sections 9 through 45 of this act.

(b) A person charged with a violation of Sections 9 through 45 of this act by the Attorney General shall not have standing to challenge the authority of the Attorney General to investigate or prosecute the case, and, if any such challenge is made, the challenge shall be dismissed and no relief shall be available in the courts of this state to the person making the challenge.

(4) Nothing in subsection (3) of this section shall be construed to limit the existing regulatory or investigative authority of an agency or the state whose functions relate to persons or matters within the scope of Sections 9 through 45 of this act.

(5) (a) The commission, shall have the authority without notice and without warrant to do all of the following in the performance of their duties under Sections 9 through 45 of this act:

(i) Inspect and examine all premises where video gaming operations are conducted; where video gaming terminals, redemption terminals and associated equipment are manufactured, sold, distributed or serviced; or where records of these activities are prepared or maintained.

(ii) Inspect all equipment and supplies in, about, upon or around premises referred to in subparagraph (i) of this paragraph.

(iii) Seize, summarily remove and impound equipment and supplies from premises referred to in subparagraph (i) of this paragraph for the purposes of examination and inspection.

(iv) Inspect, examine and audit all books, records and documents pertaining to a terminal operator licensee's video gaming operation.

(v) Seize, impound or assume physical control of any book, record, ledger or device related to video gaming operations or the video gaming terminals or redemption terminals.

(b) The provisions of paragraph (a) of this subsection shall not be construed to limit warrantless inspections except in accordance with constitutional requirements.

(c) To further effectuate the purposes of Sections 9 through 45 of this act, the commission may obtain administrative warrants for the inspection and seizure of property possessed, controlled, bailed or otherwise held by an applicant, licensee, intermediary, subsidiary, affiliate or holding company.

(6) With respect to the administration, supervision and enforcement of Sections 9 through 45 of this act, the commission, may obtain or provide pertinent information regarding applicants or licensees from or to law enforcement entities or gaming authorities of the state and other domestic, foreign or federally approved jurisdictions, including the Federal Bureau of Investigation, and may transmit the information to each other electronically.

SECTION 40. (1) The provisions of Section 97-5-59, 97-7-35 or 97-7-10 shall apply to a person providing information or making a statement, whether written or oral, to the commission, as required by Sections 9 through 45 of this act.

(2) It shall be unlawful for a person to willfully:

(a) Fail to report, pay or truthfully account for and pay over a license fee, authorization fee, tax or assessment imposed under Sections 9 through 45 of this act; or

(b) Attempt in any manner to evade or defeat a license fee, authorization fee, tax or assessment imposed under Sections 9 through 45 of this act.

(3) It shall be unlawful for a licensed entity, gaming employee, key employee or any other person to permit a video gaming terminal to be operated, transported, repaired or opened on the premises of an establishment licensee by a person other than a person licensed or permitted by the commission pursuant to Sections 9 through 45 of this act.

(4) It shall be unlawful for a licensed entity or other person to manufacture, supply or place video gaming terminals, redemption terminals or associated equipment into play or display video gaming terminals, redemption terminals or associated equipment on the premises of an establishment licensee without the authority of the commission.

(5) It shall be unlawful for a licensed entity or other person to manufacture, supply, operate, carry on or expose for play a video gaming terminal or associated equipment after the person's license has expired or failed to be renewed in accordance with Sections 9 through 45 of this act.

(6) It shall be unlawful for an individual while on the premises of an establishment licensee to knowingly use currency other than lawful coin or legal tender of the United States or a coin not of the same denomination as the coin intended to be used in the video gaming terminal or use a counterfeit or altered redemption tickets with the intent to cheat or defraud a terminal operator licensee or the state or damage the video gaming terminal or redemption terminal.

(7) (a) Except as set forth in paragraph (b) of this subsection, it shall be unlawful for an individual to knowingly possess or use while on the premises of an establishment licensee a key or device designed for the purpose of and suitable for opening or entering a video gaming terminal or redemption terminal that is located on the premises of the establishment licensee.

(b) An authorized employee of a licensee or a member of the commission may possess and use a device referred to in paragraph (a) of this subsection in the performance of the duties of employment.

(8) It shall be unlawful for a person or licensed entity to possess a device, equipment or material which the person or licensed entity knows has been manufactured, distributed, sold, tampered with or serviced in violation of Sections 9 through 45 of this act with the intent to use the device, equipment or material as though it had been manufactured, distributed, sold, tampered with or serviced pursuant to Sections 9 through 45 of this act.

(9) It shall be unlawful for a person to sell, offer for sale, represent or pass off as lawful any device, equipment or material that the person or licensed entity knows has been manufactured, distributed, sold, tampered with or serviced in violation of Sections 9 through 45 of this act.

(10) It shall be unlawful for an individual to work or be employed in a position the duties of which would require licensing under Sections 9 through 45 of this act without first obtaining the requisite license issued under Sections 9 through 45 of this act.

(11) It shall be unlawful for a licensed entity to employ or continue to employ an individual in a position the duties of which require a license under Sections 9 through 45 of this act if the individual:

(a) Is not licensed under Sections 9 through 45 of this act.

(b) Is prohibited from accepting employment from a licensee.

(12) It shall be unlawful for a minor to enter and remain in any video gaming area, except that a minor of age employed by a terminal operator licensee, an establishment licensee, the commission or another regulatory or emergency response agency may enter and remain in the area while engaged in the performance of the individual's employment duties.

(13) It shall be unlawful for a minor or a person who is not a holder of a commercial driver's license to wager, play or attempt to play a video gaming terminal or submit a redemption ticket into a redemption terminal.

(14) It shall be unlawful for a terminal operator licensee to require a video gaming terminal wager to be greater than the stated minimum wager or greater than the stated maximum wager.

(15) An individual who engages in conduct prohibited by Section 97-31-27 on the premises of an establishment licensee commits a nongambling offense.

(16) It shall be unlawful for an individual to claim, collect or take, or attempt to claim, collect or take, money or anything of value in or from a video gaming terminal or redemption terminal with the intent to defraud, or to claim, collect or take an amount greater than the amount won, or to manipulate with the intent to cheat, a component of a video gaming terminal or redemption terminal in a manner contrary to the designed and normal operational purpose.

SECTION 41. (1) In addition to any other penalty authorized by law, the commission may impose, without limitation, the following sanctions:

(a) Revoke the license of a person convicted of a criminal offense under Sections 9 through 45 of this act or regulations promulgated under Sections 9 through 45 of this act or committing any other offense or violation of Sections 9 through 45 of this act or applicable law that would otherwise disqualify the person from holding the license.

(b) Revoke the license of a person determined to have violated a provision of Sections 9 through 45 of this act or regulations promulgated under Sections 9 through 45 of this act that would otherwise disqualify the person from holding the license.

(c) Revoke the license of a person for willfully and knowingly violating or attempting to violate an order of the commission directed to the person.

(d) Subject to subsection (4) of this section, assess administrative penalties as necessary to punish violations of Sections 9 through 45 of this act.

(e) Order restitution of money or property unlawfully obtained or retained by a licensee.

(f) Enter cease and desist orders which specify the conduct which is to be discontinued, altered or implemented by a licensee.

(g) Issue letters of reprimand or censure, which letters shall be made a permanent part of the file of the licensee so sanctioned.

(2) (a) If the commission refuses to issue or renew a license, suspends or revokes a license, assesses civil penalties, orders restitution, enters a cease and desist order or issues a letter of reprimand or censure, the commission shall provide the applicant or licensee with written notification of its decision, including a statement of the reasons for its decision, by certified mail within five (5) business days of the decision of the commission.

(b) The applicant or licensee shall have the right to appeal the decision as provided by law.

(3) Any equipment, device or apparatus, money, material, gaming proceeds or substituted proceeds or real or personal property used, obtained or received or an attempt to use, obtain or receive the device, apparatus, money, material, proceeds or real or personal property in violation of Sections 9 through 45 of this act shall be subject to seizure, confiscation, destruction or forfeiture.

(4) (a) Administrative penalties assessed by the commission on an establishment licensee shall not exceed Five Thousand Dollars ($5,000.00) for each noncriminal violation of Sections 9 through 45 of this act.

(b) When imposing an administrative penalty on an establishment licensee for a noncriminal violation of Sections 9 through 45 of this act, the commission shall take into consideration the establishment licensee's annual taxable income and whether the penalty amount would cause the establishment licensee to cease nonvideo gaming operations.

(5) Fines imposed and collected by the commission under this section shall be deposited into the General Fund.

SECTION 42. (1) The following nonrefundable application fees shall accompany an application for the following licenses or permits applied for under Sections 9 through 45 of this act:

(a) For a manufacturer or supplier license, Fifty Thousand Dollars ($50,000.00).

(b) For a terminal operator license, Twenty-five Thousand Dollars ($25,000.00).

(d) For a key employee or principal license, Five Hundred Dollars ($500.00).

(e) For any other authorization or permit authorized by Sections 9 through 45 of this act, an amount established by the commission, through regulation, which may not exceed One Hundred Dollars ($100.00).

(2) The following nonrefundable fees shall be required upon issuance of an initial license and shall accompany an application for renewal for the following licenses or permits under Sections 9 through 45 of this act:

(a) For a manufacturer or supplier license, Ten Thousand Dollars ($10,000.00).

(b) For a terminal operator license, Five Thousand Dollars ($5,000.00).

(c) For an establishment license, an amount equal to Two Hundred Fifty Dollars ($250.00) for each video gaming terminal in operation at the premises of the establishment licensee.

(d) For a key employee, procurement agent license or principal license, Five Hundred Dollars ($500.00).

(e) For any other authorization or license authorized by Sections 9 through 45 of this act, an amount established by the commission, through regulation, which may not exceed One Hundred Dollars ($100.00).

(3) An establishment licensee that increases the total number of video gaming terminals within the establishment after submission of the renewal fee required in subsection (2) of this section shall provide the commission with a Two Hundred Fifty ($250.00) renewal fee for each additional video gaming terminal added to the establishment within sixty (60) days of installation of each additional video gaming terminal.

(4) Fees collected under this section shall be deposited into the General Fund.

SECTION 43. There is established in the State Treasury the Video Gaming Fund into which shall be deposited the revenue collected from the tax imposed by this section. Money in the fund shall be appropriated by the Legislature to provide funds for the Mississippi Gaming Commission to carry out its responsibilities under Sections 9 through 45 of this act.

(a) Each terminal operator licensee shall pay on a bimonthly basis a tax of thirty-four percent (34%) of its gross terminal revenue from all video gaming terminals operated by the terminal operator licensee within this state.

(b) All money owed under this section shall be held in trust by the terminal operator licensee until the money is paid or transferred to the Transportation Infrastructure Repair, Renovation and Maintenance Fund created in Section 5 of this act.

(c) Unless otherwise agreed to by the commission, a terminal operator licensee shall establish a separate bank account to maintain gross terminal revenue until such time as the money is paid or transferred under this section.

SECTION 44. (1) Under the Gambling Devices Transportation Act (64 Statute 1134, 15 USC Section 1171 et seq.), the state declares that it is exempt from Section 2 of that act.

(2) All shipments of gambling devices, as defined in Section 1 of the Gambling Devices Transportation Act, into this state, the registering, recording and labeling of which has been effected by the manufacturer and supplier of those devices in accordance with Sections 3 and 4 of the Gambling Devices Transportation Act, shall be deemed legal shipments of gambling devices into this state.

SECTION 45. (1) Video gaming terminals shall be exempt from taxes levied under any statute that confers taxing authority to a political subdivision.

(2) Video gaming terminals are exempt from local licensing fees.

SECTION 46. As used in this section and Section 47 of this act, the following words and phrases shall 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 having a gaming license issued under Section 75-76-1 et seq. may be a distributor.

(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 having a gaming license issued under Section 75-76-1 et seq. may be a retailer.

SECTION 47. (1) There is created and established a state lottery.

(2) The Mississippi Gaming Commission shall administer the state lottery and shall have the authority to:

(a) Prescribe the method and form of application which an applicant for a distributor's license or retailer's license, or both, must follow and complete before consideration of his application by the commission;

(b) Prescribe guidelines for the review of applications for licenses and the approval or disapproval of such applications;

(c) Require an 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;

(d) Prescribe the manner and method of collection and payment of fees and issuance of licenses;

(e) Prescribe conditions under which a licensee may be subject to revocation or suspension of his license;

(f) Prescribe guidelines regarding the conduct of specific lottery games, including, but not limited to:

(i) The types of games to be conducted;

(ii) The sale price of tickets;

(iii) The number and amount of prizes;

(iv) The method and location of selecting or validating winning tickets;

(v) The frequency and means of conducting drawings which shall be open to the public;

(vi) The manner of payment of prizes;

(vii) The frequency of games and drawings; and

(viii) Any other matters necessary or desirable for the efficient and effective operation of lottery games;

(g) Enter into contracts with distributors for the distribution of lottery tickets to retailers; and

(h) Take any action necessary for the implementation and administration of the provisions of this section and Section 46 of this act and promulgate rules and regulations necessary for the implementation and administration of the provisions of this section and Section 46 of this act.

(3) No ticket shall knowingly be sold to any person under the age of eighteen (18), but this subsection (3) does not prohibit the purchase of a ticket by a person eighteen (18) years of age or older for the purpose of making a gift to any person of any age. In such case, the commission shall direct payment to an adult member of the person's family or the legal guardian of the person on behalf of such person.

(4) The proceeds received from the actual sale of lottery tickets, less a reasonable percentage determined by the commission to be retained by a retailer selling a ticket, shall be remitted to the commission on a monthly basis. The commission shall deposit the proceeds into the State Treasury on the day collected. At the end of each month, the commission shall certify the total proceeds collected from the sale of lottery tickets to the State Treasurer who shall distribute such collections as follows:

(a) As nearly as practicable, forty-five percent (45%) of the proceeds collected during the preceding month from the sale of lottery tickets in the state shall be allocated as prize money, to be distributed by the commission, provided that this provision shall not create any lien, entitlement, cause of action, or other private right, and any rights of holders of lottery tickets shall be determined by the commission in administering the lottery;

(b) A reasonable percentage, as determined by the commission, of the proceeds collected during the preceding month from the sale of lottery tickets in the state shall be allocated for distribution to the commission and paid to the commission to defray the costs of administering the provisions of this section and Section 46 of this act;

(c) Four percent (4%) of the proceeds collected during the preceding month from the sale of lottery tickets within a county shall be allocated for distribution to such county and paid to such county;

(d) The remainder of the proceeds collected during the preceding month from the sale of lottery tickets in the state shall be deposited into the Transportation Infrastructure Repair, Renovation and Maintenance Fund created in Section 5 of this act.

SECTION 48. 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;

(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 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, or 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 department may, in its discretion, issue on-premises retailer's permits to a common carrier of the nature described in this paragraph.

The provisions of paragraph (i) of this section shall not apply to the operation of any game or lottery authorized by Sections 46 and 47 of this act.

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~~ paragraph (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 49. 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 * * * 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 * * *.

(3) The Legislature hereby finds, and declares it to be the public policy of this state, that:

(a) Regulation of lotteries and licensed gaming is important in order that * * *~~licensed gaming is~~ it be conducted honestly and competitively, that the rights of the creditors of licensees are protected and that * * *~~gaming~~ it is free from criminal and corruptive elements.

(b) Public confidence and trust can only be maintained by strict regulation of all persons, locations, practices, associations and activities related to the operation of 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 * * * manufacturers, sellers and distributors of certain * * *~~gambling~~ lottery 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 authorized to conduct a lottery, to the extent practicable, employ residents of Mississippi as * * *~~gaming~~ employees * * *~~an 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.

* * *

SECTION 50. 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 any game authorized by Sections 46 and 47 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 51. 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 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 gambling device, machine or equipment in accordance with subsection (4) of Section 97-33-7 or Section 75-76-34.

This section shall not apply to the operation of any game or lottery authorized by Sections 46 and 47 of this act.

SECTION 52. 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.

This section shall not apply to the operation of any game or lottery authorized by Sections 46 and 47 of this act.

SECTION 53. 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).

This section shall not apply to the operation of any game or lottery authorized by Sections 46 and 47 of this act.

SECTION 54. 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.

This section shall apply to minors under the age of eighteen (18) as it might apply to the operation of any game or lottery authorized by Sections 46 and 47 of this act.

SECTION 55. 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.

This section shall apply to minors under the age of eighteen (18) with regard to the operation of any game or lottery authorized by Sections 46 and 47 of this act.

SECTION 56. 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.

This section shall not apply to the operation of any game or lottery authorized by Sections 46 and 47 of this act.

SECTION 57. 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.

This section shall not apply to the operation of any game or lottery authorized by Sections 46 and 47 of this act.

SECTION 58. 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.

This section shall not apply to the operation of any game or lottery authorized by Sections 46 and 47 of this act.

SECTION 59. 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.

This section shall not apply to the operation of any game or lottery authorized by Sections 46 and 47 of this act.

SECTION 60. 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.

This section shall not apply to the operation of any game or lottery authorized by Sections 46 and 47 of this act.

SECTION 61. 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.

This section shall not apply to the operation of any game or lottery authorized by Sections 46 and 47 of this act.

SECTION 62. 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.

This section shall not apply to the operation of any game or lottery authorized by Sections 46 and 47 of this act.

SECTION 63. 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.

This section shall not apply to the operation of any game or lottery authorized by Sections 46 and 47 of this act.

SECTION 64. 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.

This section shall not apply to the operation of any game or lottery authorized by Sections 46 and 47 of this act.

SECTION 65. 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.

This section shall not apply to the operation of any game or lottery authorized by Sections 46 and 47 of this act.

SECTION 66. Section 27-65-111, Mississippi Code of 1972, is amended as follows:

27-65-111. The exemptions from the provisions of this chapter which are not industrial, agricultural or governmental, or which do not relate to utilities or taxes, or which are not properly classified as one (1) of the exemption classifications of this chapter, shall be confined to persons or property exempted by this section or by the Constitution of the United States or the State of Mississippi. No exemptions as now provided by any other section, except the classified exemption sections of this chapter set forth herein, shall be valid as against the tax herein levied. Any subsequent exemption from the tax levied hereunder, except as indicated above, shall be provided by amendments to this section.

No exemption provided in this section shall apply to taxes levied by Section 27-65-15 or 27-65-21, Mississippi Code of 1972.

The tax levied by this chapter shall not apply to the following:

(a) Sales of tangible personal property and services to hospitals or infirmaries owned and operated by a corporation or association in which no part of the net earnings inures to the benefit of any private shareholder, group or individual, and which are subject to and governed by Sections 41-7-123 through 41-7-127.

Only sales of tangible personal property or services which are ordinary and necessary to the operation of such hospitals and infirmaries are exempted from tax.

(b) Sales of daily or weekly newspapers, and periodicals or publications of scientific, literary or educational organizations exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code of 1954, as it exists as of March 31, 1975, and subscription sales of all magazines.

(d) Sales of tangible personal property for immediate export to a foreign country.

(e) Sales of tangible personal property to an orphanage, old men's or ladies' home, supported wholly or in part by a religious denomination, fraternal nonprofit organization or other nonprofit organization.

(f) Sales of tangible personal property, labor or services taxable under Sections 27-65-17, 27-65-19 and 27-65-23, to a YMCA, YWCA, a Boys' or Girls' Club owned and operated by a corporation or association in which no part of the net earnings inures to the benefit of any private shareholder, group or individual.

(g) Sales to elementary and secondary grade schools, junior and senior colleges owned and operated by a corporation or association in which no part of the net earnings inures to the benefit of any private shareholder, group or individual, and which are exempt from state income taxation, provided that this exemption does not apply to sales of property or services which are not to be used in the ordinary operation of the school, or which are to be resold to the students or the public.

(h) The gross proceeds of retail sales and the use or consumption in this state of drugs and medicines:

(i) Prescribed for the treatment of a human being by a person authorized to prescribe the medicines, and dispensed or prescription filled by a registered pharmacist in accordance with law; or

(ii) Furnished by a licensed physician, surgeon, dentist or podiatrist to his own patient for treatment of the patient; or

(iii) Furnished by a hospital for treatment of any person pursuant to the order of a licensed physician, surgeon, dentist or podiatrist; or

(iv) Sold to a licensed physician, surgeon, podiatrist, dentist or hospital for the treatment of a human being; or

(v) Sold to this state or any political subdivision or municipal corporation thereof, for use in the treatment of a human being or furnished for the treatment of a human being by a medical facility or clinic maintained by this state or any political subdivision or municipal corporation thereof.

"Medicines," as used in this paragraph (h), shall mean and include any substance or preparation intended for use by external or internal application to the human body in the diagnosis, cure, mitigation, treatment or prevention of disease and which is commonly recognized as a substance or preparation intended for such use; provided that "medicines" do not include any auditory, prosthetic, ophthalmic or ocular device or appliance, any dentures or parts thereof or any artificial limbs or their replacement parts, articles which are in the nature of splints, bandages, pads, compresses, supports, dressings, instruments, apparatus, contrivances, appliances, devices or other mechanical, electronic, optical or physical equipment or article or the component parts and accessories thereof, or any alcoholic beverage or any other drug or medicine not commonly referred to as a prescription drug.

Notwithstanding the preceding sentence of this paragraph (h), "medicines" as used in this paragraph (h), shall mean and include sutures, whether or not permanently implanted, bone screws, bone pins, pacemakers and other articles permanently implanted in the human body to assist the functioning of any natural organ, artery, vein or limb and which remain or dissolve in the body.

"Hospital," as used in this paragraph (h), shall have the meaning ascribed to it in Section 41-9-3, Mississippi Code of 1972.

Insulin furnished by a registered pharmacist to a person for treatment of diabetes as directed by a physician shall be deemed to be dispensed on prescription within the meaning of this paragraph (h).

(i) Retail sales of automobiles, trucks and truck-tractors if exported from this state within forty-eight (48) hours and registered and first used in another state.

(j) Sales of tangible personal property or services to the Salvation Army and the Muscular Dystrophy Association, Inc.

(k) From July 1, 1985, through December 31, 1992, retail sales of "alcohol blended fuel" as such term is defined in Section 75-55-5. The gasoline-alcohol blend or the straight alcohol eligible for this exemption shall not contain alcohol distilled outside the State of Mississippi.

(l) Sales of tangible personal property or services to the Institute for Technology Development.

(m) The gross proceeds of retail sales of food and drink for human consumption made through vending machines serviced by full line vendors from and not connected with other taxable businesses.

(n) The gross proceeds of sales of motor fuel.

(o) Retail sales of food for human consumption purchased with food stamps issued by the United States Department of Agriculture, or other federal agency, from and after October 1, 1987, or from and after the expiration of any waiver granted pursuant to federal law, the effect of which waiver is to permit the collection by the state of tax on such retail sales of food for human consumption purchased with food stamps.

(p) Sales of cookies for human consumption by the Girl Scouts of America no part of the net earnings from which sales inures to the benefit of any private group or individual.

(q) Gifts or sales of tangible personal property or services to public or private nonprofit museums of art.

(r) Sales of tangible personal property or services to alumni associations of state-supported colleges or universities.

(s) Sales of tangible personal property or services to National Association of Junior Auxiliaries, Inc., and chapters of the National Association of Junior Auxiliaries, Inc.

(t) Sales of tangible personal property or services to domestic violence shelters which qualify for state funding under Sections 93-21-101 through 93-21-113.

(u) Sales of tangible personal property or services to the National Multiple Sclerosis Society, Mississippi Chapter.

(v) Retail sales of food for human consumption purchased with food instruments issued the Mississippi Band of Choctaw Indians under the Women, Infants and Children Program (WIC) funded by the United States Department of Agriculture.

(w) Sales of tangible personal property or services to a private company, as defined in Section 57-61-5, which is making such purchases with proceeds of bonds issued under Section 57-61-1 et seq., the Mississippi Business Investment Act.

(x) The gross collections from the operation of self-service, coin-operated car washing equipment and sales of the service of washing motor vehicles with portable high-pressure washing equipment on the premises of the customer.

(y) Sales of tangible personal property or services to the Mississippi Technology Alliance.

(z) Sales of tangible personal property to nonprofit organizations that provide foster care, adoption services and temporary housing for unwed mothers and their children if the organization is exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code.

(aa) Sales of tangible personal property to nonprofit organizations that provide residential rehabilitation for persons with alcohol and drug dependencies if the organization is exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code.

(bb) Retail sales of an article of clothing or footwear designed to be worn on or about the human body if the sales price of the article is less than One Hundred Dollars ($100.00) and the sale takes place during a period beginning at 12:01 a.m. on the last Friday in July and ending at 12:00 midnight the following Saturday. This paragraph (bb) shall not apply to:

(i) Accessories including jewelry, handbags, luggage, umbrellas, wallets, watches, backpacks, briefcases, garment bags and similar items carried on or about the human body, without regard to whether worn on the body in a manner characteristic of clothing;

(ii) The rental of clothing or footwear; and

(iii) Skis, swim fins, roller blades, skates and similar items worn on the foot.

From and after January 1, 2010, the governing authorities of a municipality, for retail sales occurring within the corporate limits of the municipality, may suspend the application of the exemption provided for in this paragraph (bb) by adoption of a resolution to that effect stating the date upon which the suspension shall take effect. A certified copy of the resolution shall be furnished to the Department of Revenue at least ninety (90) days prior to the date upon which the municipality desires such suspension to take effect.

(cc) The gross proceeds of sales of tangible personal property made for the sole purpose of raising funds for a school or an organization affiliated with a school.

As used in this paragraph (cc), "school" means any public or private school that teaches courses of instruction to students in any grade from kindergarten through Grade 12.

(dd) Sales of durable medical equipment and home medical supplies when ordered or prescribed by a licensed physician for medical purposes of a patient. As used in this paragraph (dd), "durable medical equipment" and "home medical supplies" mean equipment, including repair and replacement parts for the equipment or supplies listed under Title XVIII of the Social Security Act or under the state plan for medical assistance under Title XIX of the Social Security Act, prosthetics, orthotics, hearing aids, hearing devices, prescription eyeglasses, oxygen and oxygen equipment. Payment does not have to be made, in whole or in part, by any particular person to be eligible for this exemption. Purchases of home medical equipment and supplies by a provider of home health services or a provider of hospice services are eligible for this exemption if the purchases otherwise meet the requirements of this paragraph.

(ee) Sales of tangible personal property or services to Mississippi Blood Services.

(ff) (i) Subject to the provisions of this paragraph (ff), retail sales of firearms, ammunition and hunting supplies if sold during the annual Mississippi Second Amendment Weekend holiday beginning at 12:01 a.m. on the last Friday in August and ending at 12:00 midnight the following Sunday. For the purposes of this paragraph (ff), "hunting supplies" means tangible personal property used for hunting, including, and limited to, archery equipment, firearm and archery cases, firearm and archery accessories, hearing protection, holsters, belts and slings. Hunting supplies does not include animals used for hunting.

(ii) This paragraph (ff) shall apply only if one or more of the following occur:

1. Title to and/or possession of an eligible item is transferred from a seller to a purchaser; and/or

2. A purchaser orders and pays for an eligible item and the seller accepts the order for immediate shipment, even if delivery is made after the time period provided in subparagraph (i) of this paragraph (ff), provided that the purchaser has not requested or caused the delay in shipment.

(gg) Sales of nonperishable food items to charitable organizations that are exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code and operate a food bank or food pantry or food lines.

(hh) Sales of tangible personal property or services to the United Way of the Pine Belt Region, Inc.

(ii) Sales of tangible personal property or services to the Mississippi Children's Museum or any subsidiary or affiliate thereof operating a satellite or branch museum within this state.

(jj) Sales of tangible personal property or services to the Jackson Zoological Park.

(kk) Sales of tangible personal property or services to the Hattiesburg Zoo.

(ll) Gross proceeds from sales of food, merchandise or other concessions at an event held solely for religious or charitable purposes at livestock facilities, agriculture facilities or other facilities constructed, renovated or expanded with funds for the grant program authorized under Section 18, Chapter 530, Laws of 1995.

(mm) Sales of tangible personal property and services to the Diabetes Foundation of Mississippi and the Mississippi Chapter of the Juvenile Diabetes Research Foundation.

(nn) Sales of potting soil, mulch, or other soil amendments used in growing ornamental plants which bear no fruit of commercial value when sold to commercial plant nurseries that operate exclusively at wholesale and where no retail sales can be made.

(oo) Sales of tangible personal property or services to the University of Mississippi Medical Center Research Development Foundation.

(pp) Sales of tangible personal property or services to Keep Mississippi Beautiful, Inc., and all affiliates of Keep Mississippi Beautiful, Inc.

(qq) Sales of tangible personal property or services to the Friends of Children's Hospital.

(rr) Sales of tangible personal property or services to the Pinecrest Weekend Snackpacks for Kids located in Corinth, Mississippi.

(ss) Sales of hearing aids when ordered or prescribed by a licensed physician, audiologist or hearing aid specialist for the medical purposes of a patient.

(tt) Sales exempt under the Facilitating Business Rapid Response to State Declared Disasters Act of 2015 (Sections 27-113-1 through 27-113-9).

(uu) Sales of lottery tickets by a retailer as authorized by Sections 46 and 47 of this act.

SECTION 67. Section 27-65-75, Mississippi Code of 1972, is amended as follows:

27-65-75. On or before the fifteenth day of each month, the revenue collected under the provisions of this chapter during the preceding month shall be paid and distributed as follows:

(1) (a) On or before August 15, 1992, and each succeeding month thereafter through July 15, 1993, eighteen percent (18%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Sections 27-65-15, 27-65-19(3) and 27-65-21, on business activities within a municipal corporation shall be allocated for distribution to the municipality and paid to the municipal corporation. Except as otherwise provided in this paragraph (a), on or before August 15, 1993, and each succeeding month thereafter, eighteen and one-half percent (18-1/2%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Sections 27-65-15, 27-65-19(3), 27-65-21 and 27-65-24, on business activities within a municipal corporation shall be allocated for distribution to the municipality and paid to the municipal corporation. However, in the event the State Auditor issues a certificate of noncompliance pursuant to Section 21-35-31, the Department of Revenue shall withhold ten percent (10%) of the allocations and payments to the municipality that would otherwise be payable to the municipality under this paragraph (a) until such time that the department receives written notice of the cancellation of a certificate of noncompliance from the State Auditor.

A municipal corporation, for the purpose of distributing the tax under this subsection, shall mean and include all incorporated cities, towns and villages.

Monies allocated for distribution and credited to a municipal corporation under this paragraph may be pledged as security for a loan if the distribution received by the municipal corporation is otherwise authorized or required by law to be pledged as security for such a loan.

In any county having a county seat that is not an incorporated municipality, the distribution provided under this subsection shall be made as though the county seat was an incorporated municipality; however, the distribution to the municipality shall be paid to the county treasury in which the municipality is located, and those funds shall be used for road, bridge and street construction or maintenance in the county.

(b) On or before August 15, 2006, and each succeeding month thereafter, eighteen and one-half percent (18-1/2%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Sections 27-65-15, 27-65-19(3) and 27-65-21, on business activities on the campus of a state institution of higher learning or community or junior college whose campus is not located within the corporate limits of a municipality, shall be allocated for distribution to the state institution of higher learning or community or junior college and paid to the state institution of higher learning or community or junior college.

(c) On or before August 15, 2018, and each succeeding month thereafter until August 14, 2019, two percent (2%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Sections 27-65-15, 27-65-19(3), 27-65-21 and 27-65-24, on business activities within the corporate limits of the City of Jackson, Mississippi, shall be deposited into the Capitol Complex Improvement District Project Fund created in Section 29-5-215. On or before August 15, 2019, and each succeeding month thereafter until August 14, 2020, four percent (4%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Sections 27-65-15, 27-65-19(3), 27-65-21 and 27-65-24, on business activities within the corporate limits of the City of Jackson, Mississippi, shall be deposited into the Capitol Complex Improvement District Project Fund created in Section 29-5-215. On or before August 15, 2020, and each succeeding month thereafter, six percent (6%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Sections 27-65-15, 27-65-19(3), 27-65-21 and 27-65-24, on business activities within the corporate limits of the City of Jackson, Mississippi, shall be deposited into the Capitol Complex Improvement District Project Fund created in Section 29-5-215.

(2) On or before September 15, 1987, and each succeeding month thereafter, from the revenue collected under this chapter during the preceding month, One Million One Hundred Twenty-five Thousand Dollars ($1,125,000.00) shall be allocated for distribution to municipal corporations as defined under subsection (1) of this section in the proportion that the number of gallons of gasoline and diesel fuel sold by distributors to consumers and retailers in each such municipality during the preceding fiscal year bears to the total gallons of gasoline and diesel fuel sold by distributors to consumers and retailers in municipalities statewide during the preceding fiscal year. The Department of Revenue shall require all distributors of gasoline and diesel fuel to report to the department monthly the total number of gallons of gasoline and diesel fuel sold by them to consumers and retailers in each municipality during the preceding month. The Department of Revenue shall have the authority to promulgate such rules and regulations as is necessary to determine the number of gallons of gasoline and diesel fuel sold by distributors to consumers and retailers in each municipality. In determining the percentage allocation of funds under this subsection for the fiscal year beginning July 1, 1987, and ending June 30, 1988, the Department of Revenue may consider gallons of gasoline and diesel fuel sold for a period of less than one (1) fiscal year. For the purposes of this subsection, the term "fiscal year" means the fiscal year beginning July 1 of a year.

(3) On or before September 15, 1987, and on or before the fifteenth day of each succeeding month, until the date specified in Section 65-39-35, the proceeds derived from contractors' taxes levied under Section 27-65-21 on contracts for the construction or reconstruction of highways designated under the highway program created under Section 65-3-97 shall, except as otherwise provided in Section 31-17-127, be deposited into the State Treasury to the credit of the State Highway Fund to be used to fund that highway program. The Mississippi Department of Transportation shall provide to the Department of Revenue such information as is necessary to determine the amount of proceeds to be distributed under this subsection.

(4) On or before August 15, 1994, and on or before the fifteenth day of each succeeding month through July 15, 1999, from the proceeds of gasoline, diesel fuel or kerosene taxes as provided in Section 27-5-101(a)(ii)1, Four Million Dollars ($4,000,000.00) shall be deposited in the State Treasury to the credit of a special fund designated as the "State Aid Road Fund," created by Section 65-9-17. On or before August 15, 1999, and on or before the fifteenth day of each succeeding month, from the total amount of the proceeds of gasoline, diesel fuel or kerosene taxes apportioned by Section 27-5-101(a)(ii)1, Four Million Dollars ($4,000,000.00) or an amount equal to twenty-three and one-fourth percent (23-1/4%) of those funds, whichever is the greater amount, shall be deposited in the State Treasury to the credit of the "State Aid Road Fund," created by Section 65-9-17. Those funds shall be pledged to pay the principal of and interest on state aid road bonds heretofore issued under Sections 19-9-51 through 19-9-77, in lieu of and in substitution for the funds previously allocated to counties under this section. Those funds may not be pledged for the payment of any state aid road bonds issued after April 1, 1981; however, this prohibition against the pledging of any such funds for the payment of bonds shall not apply to any bonds for which intent to issue those bonds has been published for the first time, as provided by law before March 29, 1981. From the * * *~~amount of taxes~~ funds paid into the special fund under this subsection * * * ~~and~~, subsection (9) of this section and Section 5 of this act, there shall be first deducted and paid the amount necessary to pay the expenses of the Office of State Aid Road Construction, as authorized by the Legislature for all other general and special fund agencies. The remainder of the fund shall be allocated monthly to the several counties in accordance with the following formula:

(a) One-third (1/3) shall be allocated to all counties in equal shares;

(b) One-third (1/3) shall be allocated to counties based on the proportion that the total number of rural road miles in a county bears to the total number of rural road miles in all counties of the state; and

(c) One-third (1/3) shall be allocated to counties based on the proportion that the rural population of the county bears to the total rural population in all counties of the state, according to the latest federal decennial census.

For the purposes of this subsection, the term "gasoline, diesel fuel or kerosene taxes" means such taxes as defined in paragraph (f) of Section 27-5-101.

The amount of funds allocated to any county under this subsection for any fiscal year after fiscal year 1994 shall not be less than the amount allocated to the county for fiscal year 1994.

Any reference in the general laws of this state or the Mississippi Code of 1972 to Section 27-5-105 shall mean and be construed to refer and apply to subsection (4) of Section 27-65-75.

(5) One Million Six Hundred Sixty-six Thousand Six Hundred Sixty-six Dollars ($1,666,666.00) each month shall be paid into the special fund known as the "State Public School Building Fund" created and existing under the provisions of Sections 37-47-1 through 37-47-67. Those payments into that fund are to be made on the last day of each succeeding month hereafter.

(6) An amount each month beginning August 15, 1983, through November 15, 1986, as specified in Section 6, Chapter 542, Laws of 1983, shall be paid into the special fund known as the Correctional Facilities Construction Fund created in Section 6, Chapter 542, Laws of 1983.

(7) On or before August 15, 1992, and each succeeding month thereafter through July 15, 2000, two and two hundred sixty-six one-thousandths percent (2.266%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Section 27-65-17(2), shall be deposited by the department into the School Ad Valorem Tax Reduction Fund created under Section 37-61-35. On or before August 15, 2000, and each succeeding month thereafter, two and two hundred sixty-six one-thousandths percent (2.266%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Section 27-65-17(2), shall be deposited into the School Ad Valorem Tax Reduction Fund created under Section 37-61-35 until such time that the total amount deposited into the fund during a fiscal year equals Forty-two Million Dollars ($42,000,000.00). Thereafter, the amounts diverted under this subsection (7) during the fiscal year in excess of Forty-two Million Dollars ($42,000,000.00) shall be deposited into the Education Enhancement Fund created under Section 37-61-33 for appropriation by the Legislature as other education needs and shall not be subject to the percentage appropriation requirements set forth in Section 37-61-33.

(8) On or before August 15, 1992, and each succeeding month thereafter, nine and seventy-three one-thousandths percent (9.073%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Section 27-65-17(2), shall be deposited into the Education Enhancement Fund created under Section 37-61-33.

(9) On or before August 15, 1994, and each succeeding month thereafter, from the revenue collected under this chapter during the preceding month, Two Hundred Fifty Thousand Dollars ($250,000.00) shall be paid into the State Aid Road Fund.

(10) On or before August 15, 1994, and each succeeding month thereafter through August 15, 1995, from the revenue collected under this chapter during the preceding month, Two Million Dollars ($2,000,000.00) shall be deposited into the Motor Vehicle Ad Valorem Tax Reduction Fund established in Section 27-51-105.

(11) Notwithstanding any other provision of this section to the contrary, on or before February 15, 1995, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under the provisions of Section 27-65-17(2) and the corresponding levy in Section 27-65-23 on the rental or lease of private carriers of passengers and light carriers of property as defined in Section 27-51-101 shall be deposited, without diversion, into the Motor Vehicle Ad Valorem Tax Reduction Fund established in Section 27-51-105.

(12) Notwithstanding any other provision of this section to the contrary, on or before August 15, 1995, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under the provisions of Section 27-65-17(1) on retail sales of private carriers of passengers and light carriers of property, as defined in Section 27-51-101 and the corresponding levy in Section 27-65-23 on the rental or lease of these vehicles, shall be deposited, after diversion, into the Motor Vehicle Ad Valorem Tax Reduction Fund established in Section 27-51-105.

(13) On or before July 15, 1994, and on or before the fifteenth day of each succeeding month thereafter, that portion of the avails of the tax imposed in Section 27-65-22 that is derived from activities held on the Mississippi State Fairgrounds Complex shall be paid into a special fund that is created in the State Treasury and shall be expended upon legislative appropriation solely to defray the costs of repairs and renovation at the Trade Mart and Coliseum.

(14) On or before August 15, 1998, and each succeeding month thereafter through July 15, 2005, that portion of the avails of the tax imposed in Section 27-65-23 that is derived from sales by cotton compresses or cotton warehouses and that would otherwise be paid into the General Fund shall be deposited in an amount not to exceed Two Million Dollars ($2,000,000.00) into the special fund created under Section 69-37-39. On or before August 15, 2007, and each succeeding month thereafter through July 15, 2010, that portion of the avails of the tax imposed in Section 27-65-23 that is derived from sales by cotton compresses or cotton warehouses and that would otherwise be paid into the General Fund shall be deposited in an amount not to exceed Two Million Dollars ($2,000,000.00) into the special fund created under Section 69-37-39 until all debts or other obligations incurred by the Certified Cotton Growers Organization under the Mississippi Boll Weevil Management Act before January 1, 2007, are satisfied in full. On or before August 15, 2010, and each succeeding month thereafter through July 15, 2011, fifty percent (50%) of that portion of the avails of the tax imposed in Section 27-65-23 that is derived from sales by cotton compresses or cotton warehouses and that would otherwise be paid into the General Fund shall be deposited into the special fund created under Section 69-37-39 until such time that the total amount deposited into the fund during a fiscal year equals One Million Dollars ($1,000,000.00). On or before August 15, 2011, and each succeeding month thereafter, that portion of the avails of the tax imposed in Section 27-65-23 that is derived from sales by cotton compresses or cotton warehouses and that would otherwise be paid into the General Fund shall be deposited into the special fund created under Section 69-37-39 until such time that the total amount deposited into the fund during a fiscal year equals One Million Dollars ($1,000,000.00).

(15) Notwithstanding any other provision of this section to the contrary, on or before September 15, 2000, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under the provisions of Section 27-65-19(1)(d)(i)2, and 27-65-19(1)(d)(i)3 shall be deposited, without diversion, into the Telecommunications Ad Valorem Tax Reduction Fund established in Section 27-38-7.

(16) (a) On or before August 15, 2000, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under the provisions of this chapter on the gross proceeds of sales of a project as defined in Section 57-30-1 shall be deposited, after all diversions except the diversion provided for in subsection (1) of this section, into the Sales Tax Incentive Fund created in Section 57-30-3.

(b) On or before August 15, 2007, and each succeeding month thereafter, eighty percent (80%) of the sales tax revenue collected during the preceding month under the provisions of this chapter from the operation of a tourism project under the provisions of Sections 57-26-1 through 57-26-5, shall be deposited, after the diversions required in subsections (7) and (8) of this section, into the Tourism Project Sales Tax Incentive Fund created in Section 57-26-3.

(17) Notwithstanding any other provision of this section to the contrary, on or before April 15, 2002, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under Section 27-65-23 on sales of parking services of parking garages and lots at airports shall be deposited, without diversion, into the special fund created under Section 27-5-101(d).

(18) [Repealed]

(19) (a) On or before August 15, 2005, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under the provisions of this chapter on the gross proceeds of sales of a business enterprise located within a redevelopment project area under the provisions of Sections 57-91-1 through 57-91-11, and the revenue collected on the gross proceeds of sales from sales made to a business enterprise located in a redevelopment project area under the provisions of Sections 57-91-1 through 57-91-11 (provided that such sales made to a business enterprise are made on the premises of the business enterprise), shall, except as otherwise provided in this subsection (19), be deposited, after all diversions, into the Redevelopment Project Incentive Fund as created in Section 57-91-9.

(b) For a municipality participating in the Economic Redevelopment Act created in Sections 57-91-1 through 57-91-11, the diversion provided for in subsection (1) of this section attributable to the gross proceeds of sales of a business enterprise located within a redevelopment project area under the provisions of Sections 57-91-1 through 57-91-11, and attributable to the gross proceeds of sales from sales made to a business enterprise located in a redevelopment project area under the provisions of Sections 57-91-1 through 57-91-11 (provided that such sales made to a business enterprise are made on the premises of the business enterprise), shall be deposited into the Redevelopment Project Incentive Fund as created in Section 57-91-9, as follows:

(i) For the first six (6) years in which payments are made to a developer from the Redevelopment Project Incentive Fund, one hundred percent (100%) of the diversion shall be deposited into the fund;

(ii) For the seventh year in which such payments are made to a developer from the Redevelopment Project Incentive Fund, eighty percent (80%) of the diversion shall be deposited into the fund;

(iii) For the eighth year in which such payments are made to a developer from the Redevelopment Project Incentive Fund, seventy percent (70%) of the diversion shall be deposited into the fund;

(iv) For the ninth year in which such payments are made to a developer from the Redevelopment Project Incentive Fund, sixty percent (60%) of the diversion shall be deposited into the fund; and

(v) For the tenth year in which such payments are made to a developer from the Redevelopment Project Incentive Fund, fifty percent (50%) of the funds shall be deposited into the fund.

(20) On or before January 15, 2007, and each succeeding month thereafter, eighty percent (80%) of the sales tax revenue collected during the preceding month under the provisions of this chapter from the operation of a tourism project under the provisions of Sections 57-28-1 through 57-28-5 shall be deposited, after the diversions required in subsections (7) and (8) of this section, into the Tourism Sales Tax Incentive Fund created in Section 57-28-3.

(21) (a) On or before April 15, 2007, and each succeeding month thereafter through June 15, 2013, One Hundred Fifty Thousand Dollars ($150,000.00) of the sales tax revenue collected during the preceding month under the provisions of this chapter shall be deposited into the MMEIA Tax Incentive Fund created in Section 57-101-3.

(b) On or before July 15, 2013, and each succeeding month thereafter, One Hundred Fifty Thousand Dollars ($150,000.00) of the sales tax revenue collected during the preceding month under the provisions of this chapter shall be deposited into the Mississippi Development Authority Job Training Grant Fund created in Section 57-1-451.

(22) Notwithstanding any other provision of this section to the contrary, on or before August 15, 2009, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under the provisions of Section 27-65-201 shall be deposited, without diversion, into the Motor Vehicle Ad Valorem Tax Reduction Fund established in Section 27-51-105.

(23) Notwithstanding any other provision of this section to the contrary, on or before August 15, 2018, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under the provisions of Section 3 of this act shall be deposited, without diversion, into the Transportation Infrastructure Repair, Renovation and Maintenance Fund created in Section 5 of this act.

(24) The remainder of the amounts collected under the provisions of this chapter shall be paid into the State Treasury to the credit of the General Fund.

( * * *2425) (a) It shall be the duty of the municipal officials of any municipality that expands its limits, or of any community that incorporates as a municipality, to notify the commissioner of that action thirty (30) days before the effective date. Failure to so notify the commissioner shall cause the municipality to forfeit the revenue that it would have been entitled to receive during this period of time when the commissioner had no knowledge of the action.

(b) (i) Except as otherwise provided in subparagraph (ii) of this paragraph, if any funds have been erroneously disbursed to any municipality or any overpayment of tax is recovered by the taxpayer, the commissioner may make correction and adjust the error or overpayment with the municipality by withholding the necessary funds from any later payment to be made to the municipality.

(ii) Subject to the provisions of Sections 27-65-51 and 27-65-53, if any funds have been erroneously disbursed to a municipality under subsection (1) of this section for a period of three (3) years or more, the maximum amount that may be recovered or withheld from the municipality is the total amount of funds erroneously disbursed for a period of three (3) years beginning with the date of the first erroneous disbursement. However, if during such period, a municipality provides written notice to the Department of Revenue indicating the erroneous disbursement of funds, then the maximum amount that may be recovered or withheld from the municipality is the total amount of funds erroneously disbursed for a period of one (1) year beginning with the date of the first erroneous disbursement.

SECTION 68. Section 57-43-15, Mississippi Code of 1972, is amended as follows:

57-43-15. (1) There is established within the Railroad Revitalization Fund a new account to be entitled the Mississippi Highway-Railroad Grade Crossing Safety Account. The account shall be administered by the Mississippi Department of Transportation and shall consist of:

(a) Such monies as are transferred to it on July 1, 2001, from the Mississippi Grade Crossing Closure Account;

(b) Thirty-five percent (35%) of collections from the locomotive fuel tax imposed under Section 27-59-307 for the previous year; * * * ~~and~~

(c) Monies transferred to it from the Railroad Revitalization Fund, pursuant to the provisions of Section 2 of Chapter 497, Laws of 2009 * * *.; and

(d) Monies allocated to it from the Transportation Infrastructure Repair, Renovation and Maintenance Fund, pursuant to the provisions of Section 5 of this act.

Unexpended amounts remaining in the account at the end of a fiscal year shall not lapse into the State General Fund; and any interest * * * ~~earned~~ and investment earnings on amounts in the account shall be deposited to the credit of the account.

(2) The Mississippi Transportation Commission, after consulting with the railroads operating in Mississippi, shall promulgate rules to ensure equitable allocation of the funds described in subsection (1) of this section to projects throughout the state, and shall consider the proportionate number of main line track miles of each railroad and the number of public roadway/railroad grade crossings on each railroad's main line. Expenditure of monies from the Mississippi Highway-Railroad Grade Crossing Safety Account shall be limited to the following purposes:

(a) Financial aid for closure of public roadway/railroad grade crossings;

(b) Realignment of construction costs of roadways being rerouted to facilitate a closure of a public roadway/railroad grade crossing;

(c) Monies to match federal or other funds for a grade separation eliminating an at-grade crossing of a public roadway and railroad;

(d) Installation, maintenance or upgrade of highway-railroad grade crossing signals, at the discretion of the Mississippi Transportation Commission, based upon the Federal Railroad Administration ranking of all Mississippi highway-railroad grade crossings. Not less than ten percent (10%) of the monies necessary to defray the costs of such installations must be federal funds;

(e) Separation of grades of highway/railroad crossings;

(f) Improvement of any grade crossing including the necessary roadway approaches thereto of any railroad across a public road highway;

(g) Construction, reconstruction, repair or replacement of the grade crossing surface structure; and

(h) Installation of an automatic advance warning signal alerting a motorist that a grade crossing is ahead.

(3) The Mississippi Department of Transportation shall consider all requests from the state's diagnostic review of public roadway/railroad grade crossings and from individual railroads for expenditure of funds for the purposes described in subsection (2) of this section, and shall establish uniform criteria and guidelines relating to such crossings and the expenditure of funds.

SECTION 69. Section 65-18-9, Mississippi Code of 1972, is amended as follows:

65-18-9. * * * ( * * *21) The State Aid Engineer shall allocate annually, according to the formula provided for in Section 65-18-10, the * * *~~amount of~~ funds in the Local System Bridge Replacement and Rehabilitation Program * * *~~allocation of~~ Fund to a county * * *~~that is requested by such county~~ for use in the construction, reconstruction * * * ~~and~~, paving and maintenance of local system roads in the county if:

(a) The State Aid Engineer has certified, pursuant to Section 65-37-7, that all the local system bridges within the county have a sufficiency rating of greater than fifty (50) or that all such bridges within the county with a sufficiency rating of fifty (50) or less are currently under contract for replacement or rehabilitation; and

(b) The county has met the requirements of this chapter.

( * * *32) The State Aid Engineer shall establish specific designs and standards to be followed by such counties in the construction, reconstruction and paving of local system roads. The specific designs and standards shall be based upon policies on geometric design of local rural roads, highways and streets adopted and published by the American Association of State Highway and Transportation Officials.

SECTION 70. Section 65-18-11, Mississippi Code of 1972, is amended as follows:

65-18-11. (1) In order for a county to be eligible to utilize its Local System Bridge Replacement and Rehabilitation Program allocation * * *, a county must meet the following conditions:

(a) The county has levied the ad valorem tax authorized in Section 65-18-10.

( * * *ab) The county has employed a county engineer, together with such other technical assistance as is necessary to carry out the duties of this chapter, the same as provided under the provisions of Section 65-9-15, for its state aid road system and, through its official minutes, has authorized the county engineer to perform the necessary engineering services connected with the Local System Road Program. The county engineer shall prepare the necessary plans and designs for all construction projects, including state aid projects and projects provided under this chapter. He also shall provide engineering supervision for the construction of such projects and shall approve all estimate payments made on the projects. Engineering cost for any project performed under the Local System Road Program may be paid from any funds allocated to a county under the program; however, the maximum fee paid to an engineer shall not exceed twelve percent (12%) of the final construction cost. No such cost shall be reimbursed to the county before the letting of the project; and

( * * *bc) The county has presented a plan for the construction, reconstruction and paving of a local system road which plan has been made and approved by the county engineer of the county, showing the specific road or project to be improved, stating the condition of the existing roadbed, drainage and bridges and outlining the type of construction or reconstruction to be made and the designs and specifications therefor, including the paving of the road and the sources of revenue to be used and the sources and types of material to be used thereon. The plan shall be presented to the State Aid Engineer for the initial approval of the beginning of a project to receive monies.

(2) After the initial approval of the plan and plans as specified in subsection (1)(b) of this section has been made by the State Aid Engineer, the county shall be eligible to receive all funds made available to the county under the Local System Road Program to be used exclusively for the construction, reconstruction * * * or, paving or maintenance of the local system road. The project may be done either by contract or by using county equipment and employees. It shall be according to the original plan or any amendments thereto which have been approved by the State Aid Engineer. The board may use county equipment and employees if the construction can be accomplished at a more reasonable cost than can be achieved by contract.

SECTION 71. The provisions of Section 3 of this act shall be codified in Chapter 65, Title 27, Mississippi Code of 1972.

SECTION 72. This act shall take effect and be in force from and after July 1, 2018.