SB2780_H_Cmte_Amend

SECTION 1. Section 7-11-11, Mississippi Code of 1972, is amended as follows:

7-11-11. The Secretary of State shall have charge of the swamp and the overflowed lands and indemnity lands in lieu thereof, the internal improvement lands, the lands forfeited to the state for nonpayment of taxes after the time allowed by law for redemption shall have expired, the Public Trust Tidelands, and of all other public lands belonging to or under the control of the state. The regulation, sale and disposition of all such lands shall be made through the Secretary of State's office.

The Secretary of State shall sign all conveyances and leases of any and all state-owned lands and shall record same in a book kept in his office for such purposes.

SECTION 2. Section 29-1-107, Mississippi Code of 1972, is amended as follows:

29-1-107. (1) The Secretary of State, with the approval of the Governor, shall, as far as practicable, rent or lease all lands belonging to the state, except as otherwise provided by * * * ~~law~~ this section, for a period of not exceeding one (1) year, and account for the rents therefrom in the same manner as money received from the sale of state lands, provided that no state land shall be rented or leased to individuals, corporations, partnerships, or association of persons for hunting or fishing purposes. Property belonging to the state in municipalities, even though it may have been subdivided into lots, blocks, divisions, or otherwise escheated or was sold to the state by such description, may likewise be leased or rented by the Secretary of State under the terms provided above for other state lands, and the rents accounted for in the same manner. The state shall have all the liens, rights and remedies accorded to landlords in Sections 89-7-1 through 89-7-125; said leases and rental contracts shall automatically terminate on the date provided in said leases or contracts. A person possessing a gaming license under the Mississippi Gaming Control Act or who wishes to apply for a gaming license under the Mississippi Gaming Control Act and who further uses or wishes to use Public Trust Tidelands as part of its proposed gaming project shall be required to obtain a tidelands lease from the Secretary of State notwithstanding any statute, law or other provision providing other authority to municipalities and counties or any other political subdivision to use the Public Trust Tidelands and such lease may be conditioned upon the gaming licensee or license applicant obtaining such other necessary and required approvals.

(2) (a) The Secretary of State, with the approval of the Governor, may rent or lease surface lands, tidelands or submerged lands owned or controlled by the State of Mississippi lying in or adjacent to the Mississippi Sound or Gulf of Mexico or streams emptying therein, for a period not exceeding forty (40) years for rental payable to the state annually. However, the term of any lease of State Public Trust Tidelands to a person possessing a license under the Mississippi Gaming Control Act shall be governed by the provisions of subsection (4) of this section.

(b) The lessee under such agreement may construct such necessary items for marking channels, docking, wharfing, mooring or fleeting vessels which shall be in aid of navigation and not obstructions thereto.

(c) A lessee of record may be given the option to renew for an additional period not to exceed twenty-five (25) years; however, the term of a renewal for a lease of State Public Trust Tidelands to a person possessing a gaming license under the Mississippi Gaming Control Act shall be governed by the provisions of subsection (4) of this section. The holder of a lease of Public Trust Tidelands, at the expiration thereof, shall have a prior right, exclusive of all other persons, to re-lease as may be agreed upon between the holder of the lease and the Secretary of State.

(d) Leases shall provide for review and rent adjustments at each fifth anniversary tied either to the All Urban Consumer Price Index-All Items (CPI) or to an appraisal which deducts the value of any improvements by the lessee which substantially enhance the value of the land. In the case where the initial rental was based on the value set by the ad valorem tax rolls, then the rent review and adjustment clause shall be likewise based on the value set by such tax rolls. In the event that the lessor and lessee cannot agree on a rental amount, the lease may be cancelled at the option of the lessor. The lessee shall, within thirty (30) days after execution of a sublease or assignment, file a copy thereof, including the total consideration therefor, with the Secretary of State. This paragraph shall not apply to a lease of State Public Trust Tidelands or submerged lands to a person possessing a gaming license under the Mississippi Gaming Control Act who operates a gaming establishment on such tidelands or submerged lands or to a person who has or will apply for a gaming license under the Mississippi Gaming Control Act and to use Public Trust Tidelands or submerged lands as part of its proposed gaming project.

(e) The Secretary of State shall not grant a lease for gaming purposes whether directly or indirectly on Public Trust Tidelands on which the sand beach was constructed or which are adjacent to the sand beach, as defined in Section 29-15-1.

(3) Provided, however, the current occupants of Public Trust Tidelands that were developed after the determinable mean high-water line nearest the effective date of the Coastal Wetlands Protection Law shall pay an annual rental based on the fair market value as determined by the assessed valuation of the property. The holder of a lease of Public Trust Tidelands, at the expiration thereof, shall have a prior right, exclusive of all other persons, to re-lease as may be agreed upon between the holder of the lease and the Secretary of State.

(4) (a) This section shall apply to any person possessing a license under the Mississippi Gaming Control Act or who wishes to apply for a gaming license under the Mississippi Gaming Control Act and who operates or proposes to operate a gaming establishment in any of the three (3) most southern counties of the state. Any gaming licensee or proposed gaming licensee shall be required to obtain a lease from the Secretary of State to use any State Public Trust Tidelands notwithstanding any statute, law or other provision providing other authority to municipalities and counties or any other political subdivision to use the Public Trust Tidelands. To locate onshore and qualify to pay the in-lieu tidelands assessment, a gaming operation must have or show that it would have been qualified in all respects to obtain prior to August 29, 2005, a lease of Public Trust Tidelands from the State of Mississippi through the Secretary of State for a gaming operation.

(b) The following shall apply to all leases of State Public Trust Tidelands executed by such a licensee:

(i) Every lease executed after August 29, 2005, shall be for a period of thirty (30) years for rental payable to the state annually.

(ii) By operation of this section, any lease executed before August 29, 2005, may, at the option of the lessee, either remain at the term stated in the original execution of the lease or be converted to a thirty-year term lease, beginning on such date after August 29, 2005, that the lessee either resumes or begins permanent gaming activities as approved by the Mississippi Gaming Commission, and the lessee shall be required to comply with all other provisions of the lease. Should the lessee choose to operate in a structure that is not on State Public Trust Tidelands and that is on property contiguous to State Public Trust Tidelands leased by the State of Mississippi to the lessee, the lessee shall be required to comply with all other provisions of the lease with the State of Mississippi and shall be exempt from the assessment provided for in paragraph (c) of this subsection. Easements for and rights-of-way for public streets and highways shall not be construed to interrupt the contiguous nature of a parcel of property. In the event that a lessee does not elect either to remain bound by the original term of the lease with the State of Mississippi or to convert the lease to a thirty-year term, the Secretary of State may lease the State Public Trust Tidelands that are the subject of the lease to any other person or entity.

(iii) Leases shall provide for review and rent adjustments at each annual anniversary tied to the All Urban Consumer Price Index-All Items (CPI). In the case of the renewal of a lease after the expiration of the original thirty-year term under this subsection, each renewal shall be for a term of thirty (30) years. The base rate to which the CPI shall apply for purposes of executing the subsequent lease shall be negotiated by the lessee with the Secretary of State.

(c) (i) Except as otherwise provided in this paragraph, any person possessing a license under the Mississippi Gaming Control Act who does not lease for a gaming site Public Trust Tidelands from the State * * * ~~or any of its political subdivisions~~ of Mississippi by and through the Secretary of State or a state port, and who operates a gaming establishment in any of the three (3) most southern counties of the state, shall pay an annual in-lieu tidelands assessment to the Public Trust Tidelands Assessments Fund (hereinafter referred to as "fund") created in Section 29-15-10, in the amount and manner provided for in this paragraph.

For calendar year 2006, the annual in-lieu tidelands assessment paid by the licensee to the fund shall be:

1. Four Hundred Thousand Dollars ($400,000.00), if the capital investment in the part of the structure in which licensed gaming activities are conducted is Fifty Million Dollars ($50,000,000.00) or less.

2. Four Hundred Fifty Thousand Dollars ($450,000.00), if the capital investment in the part of the structure in which licensed gaming activities are conducted is equal to or more than Fifty Million Dollars ($50,000,000.00) but less than Sixty Million Dollars ($60,000,000.00).

3. Five Hundred Thousand Dollars ($500,000.00), if the capital investment in the part of the structure in which licensed gaming activities are conducted is equal to or more than Sixty Million Dollars ($60,000,000.00) but less than Seventy-five Million Dollars ($75,000,000.00).

4. Six Hundred Thousand Dollars ($600,000.00), if the capital investment in the part of the structure in which licensed gaming activities are conducted is equal to or more than Seventy-five Million Dollars ($75,000,000.00) but less than One Hundred Million Dollars ($100,000,000.00).

5. Seven Hundred Thousand Dollars ($700,000.00), if the capital investment in the part of the structure in which licensed gaming activities are conducted is equal to or more than One Hundred Million Dollars ($100,000,000.00) but less than One Hundred Twenty-five Million Dollars ($125,000,000.00).

6. Seven Hundred Fifty Thousand Dollars ($750,000.00), if the capital investment in the part of the structure in which licensed gaming activities are conducted is equal to or more than One Hundred Twenty-five Million Dollars ($125,000,000.00).

For each calendar year thereafter, the Secretary of State shall review and adjust the value of the capital investment and the annual in-lieu tidelands assessment due. Such review and adjustment shall be tied to the CPI.

(ii) This paragraph shall not apply to a gaming licensee if the licensee conducts gaming in a structure that is located on property that is leased from the Mississippi State Port at Gulfport or any political subdivision of the state, or to a licensee who conducts gaming in a structure that is located on property that is leased to the licensee jointly by the State of Mississippi and the City of Biloxi; however, with regard to property owned by a political subdivision of the state, this exception shall only apply to property owned by the political subdivision on August 29, 2005, if legal gaming could have been conducted on such property on that date.

(iii) This paragraph shall not apply to a gaming licensee if the licensee conducts gaming in a structure that is located on property that is not leased from the State of Mississippi, and/or a political subdivision of the State of Mississippi and is not on State Public Trust Tidelands, and if a gaming licensee conducted gaming on that property before August 29, 2005, and shall not apply to a gaming licensee if the licensee or a former licensee conducted gaming on * * * ~~that~~ contiguous property through a lease with the State Port at Gulfport before August 29, 2005.

SECTION 3. Section 29-15-1, Mississippi Code of 1972, is amended as follows:

29-15-1. (a) "Commission" means the Mississippi Advisory Commission on Marine Resources.

(b) "Local tidal datum" means the datum established for a specific tide station through the use of tidal observations made at that station.

(d) "Fastlands" means tidelands and submerged lands waterward of the historic natural mean high-water line but artificially filled such that the area waterward of that line is above mean high water.

( * * *ce) "Mean high water" means the arithmetic mean of all the high waters occurring in a particular nineteen-year tidal epoch period; or for a shorter period of time after corrections are applied to the short-term observations to reduce these values to the equivalent nineteen-year value.

( * * *df) "Mean high-water line" means the intersection of the tidal datum plane of mean high water with the shore.

( * * *eg) "Mean high-water survey" means a survey of the intersection of the shoreline with the tidal datum plane of mean high water using local tidal datums and surveying methodologies approved by the commission. Methodologies shall include, but not be limited to, the "staking method," "the topographic method" and "tide coordinated aerial photography."

( * * *fh) "National map accuracy standards" means a set of guidelines published by the Office of Management and Budget of the United States to which maps produced by the United States government adhere.

(i) "Public Trust Tidelands" means those surface lands, tidelands and submerged lands owned by the state and held in trust for the citizens of the State of Mississippi.

(j) "Sand beach" means all areas of an artificial or man-made sand beach constructed on Public Trust Tidelands waterward of the public trust boundary represented by the natural mean high-water line or toe of a structure referred to as a seawall, retaining wall, or bulkhead, or other similar structure used to prevent erosion of uplands or property landward of the structure.

( * * *gk) "Submerged lands" means lands which remain covered by waters, where the tides ebb and flow, at ordinary low tides.

(l) "Surface lands" means the same as fastlands.

( * * *hm) "Tidelands" means those lands which are daily covered and uncovered by water by the action of the tides, up to the mean high-water line * * * ~~of the ordinary high tides~~.

SECTION 4. The following shall be codified as Section 29-15-2, Mississippi Code of 1972:

29-15-2. Legislative public policy. (l) It is declared that the state-held tidelands subject to the public trust and the boundary between trust lands and other lands are shown on the Final Public Trust Tidelands Map and Public Trust Submerged Land Maps, Final December 1994, created and published pursuant to Section 29-15-7, as modified by any boundary agreements or court orders.

(2) Absent clear, specific and expressed legislative intent to sever fee simple title of a specific parcel of Public Trust Tidelands from the state in favor of a specific state agency or political subdivision, fee simple title remains in the state.

(3) Absent clear, specific and expressed legislative intent to grant management and administrative control and authority, including leasing authority, of a specific area of Public Trust Tidelands to a specific state agency or political subdivision, the Secretary of State is not divested of management and administrative control and authority, and leasing authority.

(4) All uses of Public Trust Tidelands for any gaming purpose or purpose related to a gaming operation shall require a Public Trust Tidelands lease from the state through the Secretary of State as Trustee of the Public Trust Tidelands and shall be subject to annual rent pursuant to Section 29-1-107.

(5) All previous or prior statutory provisions which affect the Public Trust Tidelands shall be construed and interpreted subject to and consistent with the provisions contained in this statute.

SECTION 5. Section 29-15-3, Mississippi Code of 1972, is amended as follows:

29-15-3. (1) It is declared to be the public policy of this state to favor the preservation of the natural state of the state's Public Trust Tidelands and their ecosystems and to prevent the despoliation and destruction of them, except where a specific alteration of specific Public Trust Tidelands would serve a higher public interest in compliance with the public purposes of the public trust in which such tidelands are held.

(2) It is hereby declared to be a higher public purpose of this state and the public tidelands trust to resolve the uncertainty and disputes which have arisen as to the location of the boundary between the state's Public Trust Tidelands and the upland property and to confirm the mean high-water boundary line as determined by the Mississippi Supreme Court, the laws of this state and this chapter.

(3) Absent clear and specific intent by the Legislature to sever fee-simple ownership or to grant management and administrative control and authority, to include, but not be limited to, leasing authority, of a specific area of Public Trust Tidelands to a specific state agency or political subdivision, then fee-simple title, management and administrative control and authority, and leasing authority to and of the Public Trust Tidelands is in the State of Mississippi.

(4) It is hereby declared that Public Trust Tidelands held by the state will be managed and administered by the Secretary of State as the Land Commissioner and Trustee of the Public Trust Tidelands.

SECTION 6. Section 29-15-5, Mississippi Code of 1972, is amended as follows:

29-15-5. (1) Tidelands and submerged lands are held by the state in trust for use of all the people, and are so held in their character as the beds and shores of the sea and its tidally affected arms and tributaries for the purposes defined by common law and statutory law. Littoral and riparian property owners have common-law and statutory rights under the Coastal Wetlands Protection Law which extend into the waters and beyond the low tide line, and the state's responsibilities as trustee extends to such owners as well as to the other members of the public.

(2) Residential property owners shall not be required to obtain a Public Trust Tidelands lease from the state for exercising their common-law and statutory littoral and riparian rights attached to residential property for personal noncommercial use.

(3) All existing and proposed uses of or projects on Public Trust Tidelands by any commercial activity shall require a Public Trust Tidelands lease from the state through the Secretary of State as Trustee of the Public Trust Tidelands and shall be subject to annual rent pursuant to Section 29-1-107.

(4) All existing or proposed public uses or projects of any federal, state or local governmental entity, including counties and municipalities, shall serve a higher public purpose of promoting the conservation, reclamation, preservation of the tidelands and submerged lands, public use for boating, boat launches, piers, small craft harbors, marinas, fishing, navigation, or commercial, recreational, resort, tourism, or residential development shall require a lease of State Public Trust Tidelands from the state from the Secretary of State but shall be exempt from any use, lease or rental fees.

The lease issued by the Secretary of State shall include lease terms that the existing or proposed public uses or projects of any federal, state or local governmental entity, including counties and municipalities are public uses or projects with the higher public purpose of promoting the conservation, reclamation, preservation of the tidelands and submerged lands, public use for boating, boat launches, piers, small craft harbor, marinas, fishing, navigation, or commercial, recreational, resort, tourism, or residential development.

The lease issued by the Secretary of State shall not include lease terms that restrict the existing or proposed public uses or projects of any federal, state or local governmental entity, including counties and municipalities provided such public uses or projects serve the higher public purpose of promoting the conservation, reclamation, preservation of the tidelands and submerged lands, public use for boating, boat launches, piers, small craft harbors, marinas, fishing, navigation, or commercial, recreational, resort, tourism, or residential development, and provided such use or project does not have any gaming component.

(5) Provided the use of the leased property serves the higher public purpose of promoting the conservation, reclamation, preservation of the tidelands and submerged lands, public use for boating, boat launches, piers, small craft harbors, marinas, fishing, navigation, or commercial, recreational, resort, tourism, or residential development, the federal, state or local governmental entity, including counties and municipalities, shall have exclusive control of the leased premises, and all revenues generated therefrom shall be used to maintain, repair, or improve the leased property, but no such use shall have any gaming component.

(6) The federal, state or local governmental entity, including counties and municipalities, shall not lease, sublease, rent, or provide access for any gaming purpose or purpose related to a gaming operation.

SECTION 7. Section 29-15-9, Mississippi Code of 1972, is amended as follows:

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

(2) Any funds derived from lease rentals of tidelands and submerged lands, except those funds derived from mineral leases, or funds previously specifically designated to be applied to other agencies, shall be transferred to the special fund. * * * ~~However,~~ Subject to legislative authorization, funds derived from lease rentals * * * ~~may~~ will be used to cover the administrative cost, including legal expenses, incurred by the Secretary of State in administering the Public Trust Tidelands. Any remaining funds derived from lease rentals shall then be disbursed pro rata to the local taxing authorities for the replacement of lost ad valorem taxes, if any. Then, any remaining funds shall be disbursed to the * * * ~~commission~~ Department of Marine Resources for new and extra programs of tidelands management, such as conservation, reclamation, preservation, acquisition, education or the enhancement of public access to the Public Trust Tidelands or public improvement projects as they relate to those lands.

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

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

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

SECTION 8. Section 29-15-10, Mississippi Code of 1972, is amended as follows:

29-15-10. (1) There is created in the State Treasury a special fund to be known as the "Public Trust Tidelands Assessments Fund." The purpose of the fund is to ensure that monies derived from the Public Trust Tidelands assessments shall be used for the benefit of preserving and protecting the tidelands and submerged lands found within the three (3) most southern counties of the state. One (1) specific purpose of the fund is to ensure that the annual payment made by the state for the purchase of Deer Island shall continue uninterrupted until the purchase transaction is completed. The fund shall be administered by the Secretary of State, as trustee. None of the funds that are in the special fund or that are required to be deposited into the special fund shall be transferred, diverted or in any other manner expended or used for any purpose other than those purposes specified in this section.

(2) (a) Any funds derived from assessments made pursuant to Section 29-1-107(4)(c) shall be deposited into the special fund.

(b) Funds paid pursuant to paragraph (a) of this subsection may be appropriated by the Legislature in an amount necessary to cover the administrative cost incurred by the Mississippi * * * ~~Commission on~~ Department of Marine Resources. Any remaining funds shall be disbursed * * * by to the * * * ~~commission~~ Department of Marine Resources for new and extra programs of tidelands management, such as conservation, reclamation, preservation, acquisition, education or the enhancement of public access to the Public Trust Tidelands or public improvement projects as they relate to those lands.

SECTION 9. Section 29-15-13, Mississippi Code of 1972, is amended as follows:

29-15-13. (1) All existing or proposed public uses or projects of any federal, state or local governmental entity * * * ~~which~~, including counties and municipalities, shall serve a higher public purpose of promoting the conservation, reclamation, preservation of the tidelands and submerged lands, public use for boating, boat launches, piers, small craft harbors, marinas, fishing, * * * ~~recreation~~ navigation, or * * * commercial, recreational, resort, tourism or residential development shall require a lease from the Secretary of State but shall be exempt from any use, lease or rental fees.

(2) The federal, state or local governmental entity, including counties and municipalities, shall not lease, sublease, rent, or provide access for any gaming purpose or purpose related to a gaming operation.

SECTION 10. Section 59-7-405, Mississippi Code of 1972, is amended as follows:

59-7-405. (1) (a) The governing authorities of any municipality in which there is situated and located, in whole or in part, a port or harbor through which commerce flows, and having not less than eight (8) industries engaged in the seafood industry, which maintains a channel and/or harbor to a depth of not less than eight (8) feet, may engage in, either directly or through the commission hereinafter provided and designated, and such other agencies as hereafter may be provided by law, works of internal improvement, or promoting, developing, constructing, maintaining and operating harbors or seaports within the state and its jurisdiction, and either directly or through the commission hereinafter provided for, with the power and authority to acquire, purchase, install, rent, lease, mortgage and/or otherwise encumber, to construct, own, hold, maintain, equip, use, control and operate at seaports or harbors, wharves, piers, docks, warehouses, cold storage facilities, water and rail terminals, airplane landing fields and strips, and other structures and facilities, needful for the convenient use of the same in the aid of commerce and navigation, and including the dredging of channels and approaches to the facilities, and being authorized to fill in * * * ~~and reclaim~~ bottomlands where incidental and necessary to the foregoing development. All uses of Public Trust Tidelands shall be through a lease with the state by and through the Secretary of State, subject to a lease as required by Section 59-15-1, provided the use of the Public Trust Tidelands is to construct, own, hold, maintain, equip, use, control and operate at seaports or harbors, wharves, piers, docks, warehouses, cold storage facilities, water and rail terminals, airplane landing fields and strips, and other structures and facilities, needful for the convenient use of the same in the aid of commerce navigation, and including the dredging of channels and approaches to the facilities, the municipal authority or commission shall have exclusive control of the leased premises, and all revenues generated therefrom shall be used to maintain, repair or improve the leased property.

(b) A municipality, which is operating a port through a port commission under this section, may dissolve the port commission as provided in Section 59-7-408 and directly operate and maintain the port as provided under this article.

(2) The municipal authorities or commission, in connection with the exercise of the foregoing works of improvement and development, may as an adjunct to any such work of improvement or development to erect or construct such bridges, causeways or structures as may be required for access to and from the harbors or facilities provided as aforesaid by the municipal authorities or the commission, and including any necessary bridge or causeway or combination of the same, connecting with any island or islands lying within three (3) leagues of the main shoreline of the Mississippi Sound or the Gulf of Mexico, and whether the same be within or without the limits of the municipality concerned.

(3) The municipal authorities or commission may procure, by gift, grant, purchase, or by the exercise of eminent domain, and for the public purposes and uses herein provided for, such land or interest therein as may be required for the purposes of this article, and regardless of whether the land be within or without the limits of the municipality involved. All uses of Public Trust Tidelands shall be through a lease with the state through the Secretary of State.

(4) The municipal authorities or commission, in the exercise of the powers granted hereunder, may provide any of the aforesaid facilities alone or in collaboration and in conjunction with any other public bodies, entities or commissions, as may now or hereafter be established by law.

(5) The municipal authorities or commission may provide, among other harbor facilities, small craft and pleasure craft harbors and facilities needed therefor, including park and recreational facilities as an adjunct thereto, and in order to develop and promote tourist and recreational trade in the port.

(6) The municipal authorities or commission have the power and authority to carry out the provisions of this article, to employ engineers, attorneys, and such employees as may be necessary in carrying out the provisions of this article, from time to time, and for the purpose of operating the facilities herein provided for, and may prescribe reasonable compensation in connection with such employment.

(7) The municipal authorities or commission shall not lease, sublease, rent, or provide access for any gaming purpose or purpose related to a gaming operation.

SECTION 11. Section 59-15-1, Mississippi Code of 1972, is amended as follows:

59-15-1. The authorities of any city in this state which has a population of ten thousand (10,000) or more, according to the last official government census, and the authorities of any municipality bordering on the Mississippi Sound or Gulf of Mexico are hereby given the authority to acquire by purchase, deed, donation, gift, grant, * * * ~~reclamation,~~ lease, dedication, or otherwise, and if state-owned Public Trust Tidelands by lease subject to Sections 29-1-107(2) and 29-15-13, such land, harbor sites or water frontage for the purpose of establishing, developing, promoting, maintaining, and operating harbors for small water crafts and recreational parks connected therewith within its territorial limits, or both, and shall have the power to acquire, purchase, install, rent, lease, mortgage, incumber, construct, own, hold, maintain, equip, use, control and operate recreational parks and harbors for small water craft. Any such existing use of State Public Trust Tidelands shall require a Public Trust Tidelands lease from the State of Mississippi by and through the Secretary of State. Provided the use of the Public Trust Tidelands is to acquire, purchase, install, rent, lease, mortgage, incumber, construct, own, hold, maintain, equip, use, control and operate recreational parks and harbors for small water craft, the municipal authority hereunder shall have exclusive control of the leased premises, and all revenues generated therefrom shall be used to maintain, repair or improve the leased property. Any use of State Public Trust Tidelands for gaming as contemplated by Section 29-1-107(4) will require a direct lease of the Public Trust Tidelands from the State of Mississippi by and through the Secretary of State and such lease may be conditioned upon the gaming licensee obtaining such other necessary and required approvals.

SECTION 12. Section 75-76-67, Mississippi Code of 1972, is amended as follows:

75-76-67. (1) Any person who the commission determines is qualified to receive a license or be found suitable under the provisions of this chapter, having due consideration for the proper protection of the health, safety, morals, good order and general welfare of the inhabitants of the State of Mississippi and the declared policy of this state, may be issued a state gaming license or found suitable. The burden of proving his qualification to receive any license or be found suitable is on the applicant.

(2) An application to receive a license or be found suitable shall not be granted unless the commission is satisfied that the applicant is:

(a) A person of good character, honesty and integrity;

(b) A person whose prior activities, criminal record, if any, reputation, habits and associations do not pose a threat to the public interest of this state or to the effective regulation and control of gaming, or create or enhance the dangers of unsuitable, unfair or illegal practices, methods and activities in the conduct of gaming or the carrying on of the business and financial arrangements incidental thereto; and

(3) No person shall be granted a license or found suitable under the provisions of this chapter who has been convicted of a felony in any court of this state, another state, or the United States; and no person shall be granted a license or found suitable hereunder who has been convicted of a crime in any court of another state or the United States which, if committed in this state, would be a felony; and no person shall be granted a license or found suitable under the provisions of this chapter who has been convicted of a misdemeanor in any court of this state or of another state, when such conviction was for gambling, sale of alcoholic beverages to minors, prostitution, or procuring or inducing individuals to engage in prostitution.

(4) A license to operate a gaming establishment shall not be granted unless the applicant has satisfied the commission that:

(a) He has adequate business probity, competence and experience, in gaming or generally; * * * ~~and~~

(b) The proposed financing of the entire operation is:

(i) Adequate for the nature of the proposed operation; and

(ii) From a suitable source. Any lender or other source of money or credit which the commission finds does not meet the standards set forth in subsection (2) may be deemed unsuitable * * *.;

(c) All licenses issued and approved to proceed with development by the commission and operating prior to December 31, 2023, are exempt from the minimum requirements set forth in subparagraphs (i) through (vi) below. No site approval issued by the commission prior to December 31, 2023, with an expiration date or term shall be extended beyond such term. The proposed licensee must republish and reapply for site approval upon the expiration of any such approval. So long as a licensee issued approval to proceed with development after December 31, 2023, is not revoked, voided, vacated, or lapsed by order or act of the commission, a proposed project shall meet, at a minimum, the following:

(i) A parking facility in close proximity to the casino complex to accommodate a minimum of five hundred (500) cars;

(ii) A hotel with a minimum of three hundred (300) rooms;

(iii) A restaurant capable of seating at least two hundred (200) people;

(iv) A fine dining establishment capable of seating at least seventy-five (75) people;

(v) A casino floor of at least forty thousand (40,000) square feet; and

(vi) An amenity unique to the licensee's market in order to encourage economic development and promote tourism; and

(d) The commission shall not adopt any rule or regulation that would reduce the requirements in paragraph (c) of this subsection; however, the commission may exercise discretion with respect to such requirements as to proposed projects if located in a gaming market along the Mississippi River; but, in all other areas where a project is proposed to be located, these shall be deemed minimum requirements.

(5) An application to receive a license or be found suitable constitutes a request for a determination of the applicant's general character, integrity and ability to participate or engage in, or be associated with gaming. Any written or oral statement made in the course of an official proceeding of the commission or the executive director or any witness testifying under oath which is relevant to the purpose of the proceeding is absolutely privileged and does not impose liability for defamation or constitute a ground for recovery in any civil action.

(6) The commission may, in its discretion, grant a license to a corporation which has complied with the provisions of this chapter.

(7) The commission may, in its discretion, grant a license to a limited partnership which has complied with the provisions of this chapter.

(8) No limited partnership, except one whose sole limited partner is a publicly traded corporation which has registered with the commission, or business trust or organization or other association of a quasi-corporate character is eligible to receive or hold any license under this chapter unless all persons having any direct or indirect interest therein of any nature whatsoever, whether financial, administrative, policymaking or supervisory, are individually qualified to be licensed under the provisions of this chapter.

(9) The commission may, by regulation, limit the number of persons who may be financially interested and the nature of their interest in any corporation or other organization or association licensed under this chapter, and may establish such other qualifications of licenses as the commission, in its discretion, deems to be in the public interest and consistent with the declared policy of the state.

SECTION 13. Section 87-1-5, Mississippi Code of 1972, is amended as follows:

87-1-5. If any person, by playing at any game whatever, or by betting on the sides or hands of such as do play at any game, or by betting on any horse race or cockfight, or at any other sport or pastime, or by any wager whatever, shall lose any money, property, or other valuable thing, real or personal, and shall pay or deliver the same or any part thereof, the person so losing and paying or delivering the same, or his wife or children, may sue for and recover such money, property, or other valuable thing so lost and paid or delivered, or any part thereof, from the person knowingly receiving the same, with costs. However, this section shall not apply to betting, gaming or wagering:

(b) In a structure located in whole or in part on shore in any of the three (3) most southern counties in the State of Mississippi in which the registered voters of the county have voted to allow such betting, gaming or wagering on cruise vessels as provided in Section 19-3-79, if:

(i) The structure is owned, leased or controlled by a person possessing a gaming license, as defined in Section 75-76-5, to conduct legal gaming * * * at a location that was legal for dockside gaming prior to August 29, 2005;

(ii) The part of the structure in which licensed gaming activities are conducted is located entirely in an area which is located no more than eight hundred (800) feet from the mean high-water line (as defined in Section 29-15-1) of 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, including the Mississippi Sound, St. Louis Bay, Biloxi Bay and Pascagoula Bay, or, with regard to the Mississippi Sound at Harrison County only, no farther north than the southern boundary of the right-of-way for U.S. Highway 90, whichever is greater; and in determining the distance to the mean high-water line, the following considerations apply:

1. Rights-of-way and easements for public streets and highways shall not be construed to interrupt the contiguous nature of a parcel of property, nor shall the footage contained within such easements and rights-of-way be considered in the calculation of the distances specified in subparagraph (ii) of this paragraph; and

2. An imaginary line drawn from any point along the mean high-water line referenced and utilized pursuant to subparagraph (ii) of this paragraph to any other point of reference must cross only property under the exclusive use and control of the gaming licensee or proposed licensee based on its ownership or lease thereof, except for rights-of-way and easements for public streets and highways; and

(iii) In the case of a structure that is located in whole or part on shore, the part of the structure in which licensed gaming activities are conducted shall * * * be located on:

1. Property entirely under the exclusive use and control of the proposed licensee based on its ownership or lease thereof that extends from the gaming floor to the mean high-water line and such land is capable of accommodating the minimum improvement requirements set forth in Section 75-76-67(4); and

2. The entire parcel(s) of land used to establish the necessary ownership and/or lease and control of the property to the mean high-water line must be immediately adjacent to waters at a location which would have qualified as a legal gaming site for docking a cruise vessel under paragraph (a) of this section prior to August 29, 2005;

(c) On a 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; or

(d) That is legal under the laws of the State of Mississippi.

SECTION 14. Section 97-33-1, Mississippi Code of 1972, is amended as follows:

97-33-1. Except as otherwise provided in Section 97-33-8, if any person shall encourage, promote or play at any game, play or amusement, other than a fight or fighting match between dogs, for money or other valuable thing, or shall wager or bet, promote or encourage the wagering or betting of any money or other valuable things, upon any game, play, amusement, cockfight, Indian ball play or duel, other than a fight or fighting match between dogs, or upon the result of any election, event or contingency whatever, upon conviction thereof, he 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 for any period not more than ninety (90) days. However, this section shall not apply to betting, gaming or wagering:

(a) On a cruise vessel as defined in Section 27-109-1 whenever such vessel is in the waters within the State of Mississippi, which lie adjacent to the State of Mississippi south of the three (3) most southern counties in the State of Mississippi, including the Mississippi Sound, St. Louis Bay, Biloxi Bay and Pascagoula Bay, and in which the registered voters of the county in which the port is located have not voted to prohibit such betting, gaming or wagering on cruise vessels as provided in Section 19-3-79;

(b) In a structure located, in whole or in part, on shore in any of the three (3) most southern counties in the State of Mississippi in which the registered voters of the county have voted to allow such betting, gaming or wagering on cruise vessels as provided in Section 19-3-79, if:

(iii) In the case of a structure that is located in whole or part on shore, the part of the structure in which licensed gaming activities are conducted shall * * * be located on:

1. Property entirely under the exclusive use and control of the gaming licensee or proposed licensee based on its ownership or lease thereof that extends from the gaming floor to the mean high-water line and such land is capable of accommodating the minimum improvement requirements set forth in Section 75-76-67(4); and

(c) On a 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, and in which the registered voters of the county in which the port is located have not voted to prohibit such betting, gaming or wagering on vessels as provided in Section 19-3-79; or

(d) That is legal under the laws of the State of Mississippi.

SECTION 15. Section 97-33-7, Mississippi Code of 1972, is amended as follows:

97-33-7. (1) Except as otherwise provided in Section 97-33-8, it shall be unlawful for any person or persons, firm, copartnership or corporation to have in possession, own, control, display, or operate any cane rack, knife rack, artful dodger, punch board, roll down, merchandise wheel, slot machine, pinball machine, or similar device or devices. Provided, however, that this section shall not be so construed as to make unlawful the ownership, possession, control, display or operation of any antique coin machine as defined in Section 27-27-12, or any music machine or bona fide automatic vending machine where the purchaser receives exactly the same quantity of merchandise on each operation of said machine. Any slot machine other than an antique coin machine as defined in Section 27-27-12 which delivers, or is so constructed as that by operation thereof it will deliver to the operator thereof anything of value in varying quantities, in addition to the merchandise received, and any slot machine other than an antique coin machine as defined in Section 27-27-12 that is constructed in such manner as that slugs, tokens, coins or similar devices are, or may be, used and delivered to the operator thereof in addition to merchandise of any sort contained in such machine, is hereby declared to be a gambling device, and shall be deemed unlawful under the provisions of this section. Provided, however, that pinball machines which do not return to the operator or player thereof anything but free additional games or plays shall not be deemed to be gambling devices, and neither this section nor any other law shall be construed to prohibit same.

(2) No property right shall exist in any person, natural or artificial, or be vested in such person, in any or all of the devices described herein that are not exempted from the provisions of this section; and all such devices are hereby declared to be at all times subject to confiscation and destruction, and their possession shall be unlawful, except when in the possession of officers carrying out the provisions of this section. It shall be the duty of all law enforcing officers to seize and immediately destroy all such machines and devices.

(3) A first violation of the provisions of this section shall be deemed a misdemeanor, and the party offending shall, upon conviction, be fined in any sum not exceeding Five Hundred Dollars ($500.00), or imprisoned not exceeding three (3) months, or both, in the discretion of the court. In the event of a second conviction for a violation of any of the provisions of this section, the party offending shall be subject to a sentence of not less than six (6) months in the county jail, nor more than two (2) years in the State Penitentiary, in the discretion of the trial court.

(4) Notwithstanding any provision of this section to the contrary, it shall not be unlawful to operate any equipment or device described in subsection (1) of this section or any gaming, gambling or similar device or devices by whatever name called while:

(iii) In the case of a structure that is located in whole or part on shore, the part of the structure in which licensed gaming activities are conducted shall * * * be located on:

(d) That is legal under the laws of the State of Mississippi.

(5) Notwithstanding any provision of this section to the contrary, it shall not be unlawful (a) to own, possess, repair or control any gambling device, machine or equipment in a licensed gaming establishment or on the business premises appurtenant to any such licensed gaming establishment during any period of time in which such licensed gaming establishment is being constructed, repaired, maintained or operated in this state; (b) to install any gambling device, machine or equipment in any licensed gaming establishment; (c) to possess or control any gambling device, machine or equipment during the process of procuring or transporting such device, machine or equipment for installation on any such licensed gaming establishment; or (d) to store in a warehouse or other storage facility any gambling device, machine, equipment, or part thereof, regardless of whether the county or municipality in which the warehouse or storage facility is located has approved gaming aboard cruise vessels or vessels, provided that such device, machine or equipment is operated only in a county or municipality that has approved gaming aboard cruise vessels or vessels. Any gambling device, machine or equipment that is owned, possessed, controlled, installed, procured, repaired, transported or stored in accordance with this subsection shall not be subject to confiscation, seizure or destruction, and any person, firm, partnership or corporation which owns, possesses, controls, installs, procures, repairs, transports or stores any gambling device, machine or equipment in accordance with this subsection shall not be subject to any prosecution or penalty under this section. Any person constructing or repairing such cruise vessels or vessels within a municipality shall comply with all municipal ordinances protecting the general health or safety of the residents of the municipality.

SECTION 16. Section 97-33-17, Mississippi Code of 1972, is amended as follows:

97-33-17. (1) All monies exhibited for the purpose of betting or alluring persons to bet at any game, and all monies staked or betted, shall be liable to seizure by any sheriff, constable, or police officer, together with all the appliances used or kept for use in gambling, or by any other person; and all the monies so seized shall be accounted for by the person making the seizure, and all appliances seized shall be destroyed; provided, however, this section shall not apply to betting, gaming or wagering on:

(a) A cruise vessel as defined in Section 27-109-1 whenever such vessel is in the waters within the State of Mississippi, which lie adjacent to the State of Mississippi south of the three (3) most southern counties in the State of Mississippi, including the Mississippi Sound, St. Louis Bay, Biloxi Bay and Pascagoula Bay, and in which the registered voters of the county in which the port is located have not voted to prohibit such betting, gaming or wagering on cruise vessels as provided in Section 19-3-79;

1. Rights-of-way and easements for public streets and highways shall not be construed to interrupt the contiguous nature of a parcel of property, nor shall the footage contained within such easements and rights-of-way be counted in the calculation of the distances specified in subparagraph (ii) of this paragraph; and

(iii) In the case of a structure that is located in whole or part on shore, the part of the structure in which licensed gaming activities are conducted shall * * * be located on:

(c) A 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, and in which the registered voters of the county in which the port is located have not voted to prohibit such betting, gaming or wagering on vessels as provided in Section 19-3-79; or

(d) That is legal under the laws of the State of Mississippi.

(2) Nothing in this section shall apply to any gambling device, machine or equipment that is owned, possessed, controlled, installed, procured, repaired or transported in accordance with subsection (4) of Section 97-33-7.

SECTION 17. Section 97-33-25, Mississippi Code of 1972, is amended as follows:

97-33-25. If any person shall sell or buy, either directly or indirectly, any chance in what is commonly called pool, upon any event whatever, or shall in any manner engage in such business or pastime, he shall be fined not more than Five Hundred Dollars ($500.00) or shall be imprisoned in the county jail not more than ninety (90) days; provided, however, this section shall not apply to betting, gaming or wagering:

(iii) In the case of a structure that is located in whole or part on shore, the part of the structure in which licensed gaming activities are conducted shall * * * be located on:

(d) That is legal under the laws of the State of Mississippi.

SECTION 18. Section 97-33-27, Mississippi Code of 1972, is amended as follows:

97-33-27. If any person shall bet on a horse race or a yacht race or on a shooting match, he shall be fined not more than Five Hundred Dollars ($500.00), and, unless the fine and costs be immediately paid, he shall be imprisoned in the county jail not more than ninety (90) days; provided, however, this section shall not apply to betting, gaming or wagering:

(iii) In the case of a structure that is located in whole or part on shore, the part of the structure in which licensed gaming activities are conducted shall * * * be located on:

(d) That is legal under the laws of the State of Mississippi.

SECTION 19. This act shall take effect and be in force from and after July 1, 2025 and shall stand repealed on June 30, 2025.