REPORT TITLE:
Shipboard Gambling


DESCRIPTION:
Allows shipboard casino gaming in state waters; creates HI gaming
control commission.  Sets aside    % and    % of state gaming
fund for administration and problem gambler services, and 10% for
counties; remainder goes to general fund.  Takes effect only if
electorate approves shipboard gaming in an advisory referendum.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           2197
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO SHIPBOARD GAMING.



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

 1      SECTION 1.  The Hawaii Revised Statutes is amended by adding
 
 2 a new chapter to be appropriately designated and to read as
 
 3 follows:
 
 4                             "CHAPTER
 
 5                         SHIPBOARD GAMING
 
 6      §   -1  Legislative intent.  An aggressive effort is needed
 
 7 to diversify Hawaii's revenue resources to meet the growing needs
 
 8 for education and human services funding.  The downturn in
 
 9 tourism has not only placed a strain on the economy and reduced
 
10 revenue, it has emphasized the need to diversify Hawaii's visitor
 
11 attractions if Hawaii is to remain a competitive destination.
 
12      Shipboard gaming has been legalized in six states bordering
 
13 the Missouri, Ohio, and Mississippi Rivers and at least fifteen
 
14 other states, from Texas to New Hampshire, are considering making
 
15 it legal.  The Wall Street Journal estimated, recently, that
 
16 $1,000,000,000 in gross revenues was generated by U.S. waterborne
 
17 United States casinos in 1993.  Shipboard gaming is especially
 
18 attractive because it provides a specific boundary where gaming
 
19 may take place and allows for greater control by states.
 

 
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                                     S.B. NO.           2197
                                                        
                                                        

 
 1      Federal law permits the use of gaming devices on interstate
 
 2 or foreign segments of voyages and on cruises-to-nowhere and
 
 3 intrastate segments of a voyage on state inland waters to the
 
 4 extent permitted by state statute.
 
 5      §   -2  Shipboard gaming authorized.(a)  Shipboard gaming
 
 6 operations and the system of wagering incorporated therein, as
 
 7 defined in this chapter, are hereby authorized to the extent that
 
 8 they are carried out in accordance with this chapter.
 
 9      (b)  Shipboard gaming pursuant to this chapter may be
 
10 conducted upon any navigable waters within the State.
 
11      §   -3  Definitions.  As used in this chapter unless the
 
12 context otherwise requires:
 
13      "Adjusted gross receipts" means the gross receipts less
 
14 winnings paid to wagerers.
 
15      "Commission" means the Hawaii gaming control commission.
 
16      "Department" means the department of business, economic
 
17 development, and tourism.
 
18      "Director" means the director of business, economic
 
19 development, and tourism.
 
20      "Dock" means the location where a gaming ship moors for the
 
21 purpose of embarking passengers for and disembarking passengers
 
22 from a gaming excursion.
 
23      "Gaming excursion" means an outing during which gaming may
 

 
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                                     S.B. NO.           2197
                                                        
                                                        

 
 1 be operated on a ship licensed under this chapter.
 
 2      "Gaming ship" means a ship or boat licensed under this
 
 3 chapter to operate for the sole purpose of providing gaming
 
 4 excursions within the navigable territorial waters of the State.
 
 5      "Gross receipts" means the total amount of money exchanged
 
 6 for the purchase of chips, tokens, or electronic cards by
 
 7 shipboard gaming patrons.
 
 8      "Occupational license" means a license issued by the
 
 9 commission to a person or entity to perform an occupation which
 
10 the commission has identified as requiring a license to engage in
 
11 shipboard gaming in Hawaii.
 
12      "Shipboard gaming" means the operation of games aboard a
 
13 ship licensed under this chapter, including but not limited to,
 
14 baccarat, twenty-one, poker, craps, slot machine, video game of
 
15 chance, roulette wheel, klondike table, punch-board, faro layout,
 
16 keno layout, numbers ticket, push card, jar ticket, or pull tab
 
17 that is authorized by the commission as a wagering device.
 
18      §   -4  Hawaii gaming control commission.  (a)  There is
 
19 established the Hawaii gaming control commission which shall be a
 
20 body corporate and a public instrumentality of the State, for the
 
21 purpose of implementing this chapter.  The commission shall be
 
22 placed within the department and for administrative purposes.
 
23 The commission shall administer, regulate, and enforce the system
 

 
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                                     S.B. NO.           2197
                                                        
                                                        

 
 1 of shipboard gaming established by this chapter.  Its
 
 2 jurisdiction shall extend to every person, association,
 
 3 corporation, partnership, and trust involved in shipboard gaming
 
 4 operations in the State of Hawaii.
 
 5      (b)  The commission shall consist of five members to be
 
 6 appointed by the governor with the advice and consent of the
 
 7 senate under section 26-34.  Of the five members, two shall be
 
 8 appointed from a list of nominees submitted by the president of
 
 9 the senate, and two shall be appointed from a list of nominees
 
10 submitted by the speaker of the house of representatives.  All
 
11 appointments to the commission shall be made within sixty days of
 
12 the effective date of this Act.  The members shall elect one from
 
13 among them to be the chairperson.  Each member shall have
 
14 reasonable knowledge of the practice, procedure, and principles
 
15 of gaming operations.  Each member shall either be a resident of
 
16 Hawaii or shall certify that the member will become a resident of
 
17 Hawaii before taking office.  At least one member shall be
 
18 experienced in law enforcement and criminal investigation, at
 
19 least one member shall be a certified public accountant
 
20 experienced in accounting and auditing, and at least one member
 
21 shall be an attorney licensed to practice law in Hawaii.
 
22      (c)  No person shall be appointed a member or continue to be
 
23 a member of the commission if:
 

 
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 1      (1)  The person is an elected state official or a public
 
 2           employee;
 
 3      (2)  The person or the person's spouse, child, or parent is,
 
 4           a member of the board of directors of, or a person
 
 5           financially interested in, any gaming operation subject
 
 6           to the jurisdiction of this commission;
 
 7      (3)  The person is related to any other person within the
 
 8           second degree of consanguinity or affinity who is
 
 9           licensed by the commission pursuant to this chapter; or
 
10      (4)  The person is not of good moral character or has been
 
11           convicted of, or is under indictment for, a felony
 
12           under the laws of Hawaii or any other state, or the
 
13           United States.
 
14      (d)  The term of office of a commission member shall be
 
15 three years, except that the terms of office of the initial
 
16 members appointed shall be staggered, with one member serving one
 
17 year, two members serving two years, and two members serving
 
18 three years.  No member shall serve more than two consecutive
 
19 three-year terms.  Vacancies in the commission shall be filled
 
20 for the unexpired term in like manner as the original
 
21 appointments.
 
22      (e)  The governor may remove or suspend any member of the
 
23 commission after due notice and public hearing.  The president of
 

 
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                                     S.B. NO.           2197
                                                        
                                                        

 
 1 the senate or the speaker of the house of representatives may
 
 2 request that the governor remove or suspend a member of the
 
 3 commission nominated by either the president of the senate or
 
 4 speaker of the house of representatives.
 
 5      (f)  Members shall:
 
 6      (1)  Serve part-time;
 
 7      (2)  Be paid compensation of $300 for each day in the
 
 8           performance of official duties; and
 
 9      (3)  Be reimbursed for expenses, including travel expenses,
 
10           incurred in the performance of official duties.
 
11      (g)  Officers of the commission, including the chairperson,
 
12 shall be selected by the members.
 
13      (h)  Before assuming the duties of office, each member of
 
14 the commission shall take an oath that the member shall
 
15 faithfully execute the duties of office according to the laws of
 
16 the State and shall file and maintain with the director a bond in
 
17 the sum of $25,000 with good and sufficient sureties.  The cost
 
18 of any bond for any member of the commission under this section
 
19 shall be considered a part of the necessary expenses of the
 
20 commission.
 
21      §   -5  Staff.(a)  The commission shall appoint, without
 
22 regard to chapters 76 and 77, an administrator who shall perform
 
23 any and all duties that the commission shall assign.  The salary
 

 
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                                     S.B. NO.           2197
                                                        
                                                        

 
 1 of the administrator shall be determined by the commission.  The
 
 2 administrator shall keep records of all proceedings of the
 
 3 commission and shall preserve all records, books, documents, and
 
 4 other papers belonging to the commission or entrusted to its
 
 5 care.  The administrator shall devote full time to the duties of
 
 6 the office and shall not hold any other office or employment.
 
 7      (b)  The commission may employ such personnel as may be
 
 8 necessary to carry out its duties.  No person shall be employed
 
 9 by the commission who is, or whose spouse, parent or child is, an
 
10 official of, or has a financial interest in or financial relation
 
11 with, any operator engaged in gaming operations within this
 
12 State.  Any employee violating these prohibitions shall be
 
13 subject to termination of employment.
 
14      §   -6  Powers of the commission.  The commission shall have
 
15 all powers necessary and proper to fully and effectively
 
16 supervise all shipboard gaming operations, including the
 
17 following:
 
18      (1)  To adopt standards for the licensing of all persons
 
19           under this chapter, to issue licenses, and to establish
 
20           and collect fees for such licenses;
 
21      (2)  To provide for the collection of all fees and taxes
 
22           imposed pursuant to this chapter;
 
23      (3)  To enter the office, gaming ships, facilities, or other
 

 
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                                     S.B. NO.           2197
                                                        
                                                        

 
 1           places of business of a licensee, where evidence of the
 
 2           compliance or noncompliance with this chapter is likely
 
 3           to be found;
 
 4      (4)  To investigate alleged violations of this chapter and
 
 5           to take appropriate disciplinary action against a
 
 6           licensee or a holder of an occupational license for a
 
 7           violation, or institute appropriate legal action for
 
 8           enforcement, or both;
 
 9      (5)  To be present through its inspectors and agents any
 
10           time gaming operations are conducted on any shipboard
 
11           for the purpose of certifying the revenue thereof,
 
12           receiving complaints from the public, and conducting
 
13           such other investigations into the conduct of the
 
14           shipboard gaming and the maintenance of the equipment
 
15           as from time to time the commission may deem necessary
 
16           and proper;
 
17      (6)  To adopt appropriate standards for all gaming ships and
 
18           facilities, as well as for electronic or mechanical
 
19           gaming devices;
 
20      (7)  To require that the records, including financial or
 
21           other statements of any licensee under this chapter, be
 
22           kept in such manner as prescribed by the commission and
 
23           that any licensee involved in the ownership or
 

 
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                                     S.B. NO.           2197
                                                        
                                                        

 
 1           management of gaming operations submit to the
 
 2           commission an annual balance sheet and profit and loss
 
 3           statement, list of the stockholders or other persons
 
 4           having a one per cent or greater beneficial interest in
 
 5           the gaming activities of each licensee, and any other
 
 6           information the commission deems necessary in order to
 
 7           effectively administer this chapter;
 
 8      (8)  To conduct hearings, issue subpoenas for the attendance
 
 9           of witnesses and subpoenas duces tecum for the
 
10           production of books, records, and other pertinent
 
11           documents, and to administer oaths and affirmations to
 
12           the witnesses, when, in the judgment of the commission,
 
13           it is necessary to administer or enforce this chapter;
 
14      (9)  To prescribe an employment application form to be used
 
15           by any licensee involved in the ownership or management
 
16           of shipboard gaming operations for hiring purposes;
 
17     (10)  To eject or exclude or authorize the ejection or
 
18           exclusion of, any person from shipboard gaming
 
19           facilities where the person is in violation of this
 
20           chapter or where the person's conduct or reputation is
 
21           such that the person's presence within the gaming ship
 
22           facilities, in the opinion of the commission, may call
 
23           into question the honesty and integrity of the
 

 
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                                     S.B. NO.           2197
                                                        
                                                        

 
 1           shipboard gaming operations or interfere with orderly
 
 2           conduct thereof; provided that the propriety of such
 
 3           ejection or exclusion is subject to subsequent hearing
 
 4           by the commission;
 
 5     (11)  To require all licensees of gaming operations to
 
 6           utilize a cashless wagering system whereby all players'
 
 7           money is converted to tokens, electronic cards, or
 
 8           chips which shall be used only for wagering aboard the
 
 9           gaming ship;
 
10     (12)  To authorize the routes of a gaming ship and the stops
 
11           which the ship may make;
 
12     (13)  To authorize the operation of shuttles to transport
 
13           individuals to and from gaming ships from designated
 
14           onshore locations;
 
15     (14)  To suspend, revoke, or restrict licenses, to require
 
16           the removal of a licensee or an employee of a licensee
 
17           for a violation of this chapter or a commission rule or
 
18           for engaging in a fraudulent practice;
 
19     (15)  To impose and collect fines of up to $5,000 against
 
20           individuals and up to $10,000 or an amount equal to the
 
21           daily gross receipts, whichever is larger, against
 
22           licensees for each violation of this chapter, any rules
 
23           adopted by the commission, any order of the commission
 

 
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                                     S.B. NO.           2197
                                                        
                                                        

 
 1           or any other action which, in the commission's
 
 2           discretion, is a detriment or impediment to shipboard
 
 3           gaming operations;
 
 4     (16)  To hire employees to gather information, conduct
 
 5           investigations, and carry out any other tasks
 
 6           contemplated under this chapter;
 
 7     (17)  To establish minimum levels of insurance to be
 
 8           maintained by licensees;
 
 9     (18)  To establish, after consultation with the U. S. Army
 
10           Corps of Engineers, binding emergency orders upon the
 
11           concurrence of a majority of the members of the
 
12           commission regarding the navigability of the
 
13           territorial waters of the State in the event of extreme
 
14           weather conditions, acts of God or other extreme
 
15           circumstances;
 
16     (19)  To delegate the execution of any of its powers for the
 
17           purpose of administering and enforcing this chapter and
 
18           its rules hereunder;
 
19     (20)  To adopt necessary rules to implement this chapter; and
 
20     (21)  To take any other action as may be reasonable or
 
21           appropriate to enforce this chapter and rules
 
22           hereunder.
 
23      §   -7  Meetings of the commission.  The commission shall
 

 
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 1 hold at least one meeting each quarter of the fiscal year.  In
 
 2 addition, special meetings may be called by the chairperson or
 
 3 any three commission members upon seventy-two hours written
 
 4 notice to each member.  All commission meetings shall be subject
 
 5 to chapter 92.  Three members of the commission shall constitute
 
 6 a quorum, and three votes shall be required for any final
 
 7 determination by the commission.  The commission shall keep a
 
 8 complete and accurate record of all its meetings.
 
 9      §   -8  Annual report.  The commission shall file a written
 
10 annual report with the governor and the legislature on or before
 
11 sixty days following the close of each fiscal year and such
 
12 additional reports as the governor or the legislature may
 
13 request.  The annual report shall include a statement of receipts
 
14 and disbursements by the commission, actions taken by the
 
15 commission, and any additional information and recommendations
 
16 which the commission may deem valuable or which the governor or
 
17 the legislature may request.
 
18      §   -9  Hearings by the commission.(a)  Upon order of the
 
19 commission, one of the commission members or a hearings officer
 
20 designated by the commission may conduct any hearing provided for
 
21 under this chapter or by commission rule and may recommend
 
22 findings and decisions to the commission.  The commission member
 
23 or hearings officer conducting such hearing shall have all powers
 

 
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                                     S.B. NO.           2197
                                                        
                                                        

 
 1 and rights granted to the commission in this chapter.  The record
 
 2 made at the time of the hearing shall be reviewed by the
 
 3 commission, or a majority thereof, and the findings and decision
 
 4 of the majority of the commission shall constitute the order of
 
 5 the commission in that case.
 
 6      (b)  Any party aggrieved by an action of the commission
 
 7 denying, suspending, revoking, restricting, or refusing to renew
 
 8 a license may request a hearing before the commission.  A request
 
 9 for a hearing must be made to the commission in writing within
 
10 five days after service of notice of the action of the
 
11 commission.  Notice of the action of the commission shall be
 
12 served either by personal delivery or by certified mail, postage
 
13 prepaid, to the aggrieved party.  Notice served by certified mail
 
14 shall be deemed complete on the business day following the date
 
15 of such mailing.  The commission shall conduct all requested
 
16 hearings promptly and in reasonable order.
 
17      §   -10  Disclosure of records.  (a)  Notwithstanding any
 
18 other law to the contrary, the commission on written request from
 
19 any person, shall provide information furnished by an applicant
 
20 or licensee concerning the applicant or licensee, or the
 
21 applicant's or licensee's products, services or gaming
 
22 enterprises, and business holdings, as follows:
 
23      (1)  The name, business address, and business telephone
 

 
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                                     S.B. NO.           2197
                                                        
                                                        

 
 1           number of any applicant or licensee;
 
 2      (2)  An identification of any applicant or licensee
 
 3           including, if an applicant or licensee is not an
 
 4           individual, the state of incorporation or registration,
 
 5           the corporate officers, and the identity of all
 
 6           shareholders or participants;
 
 7      (3)  An identification of any business, including, if
 
 8           applicable, the state of incorporation or registration,
 
 9           in which an applicant or licensee or an applicant's or
 
10           licensee's spouse or children has an equity interest of
 
11           more than five per cent.  If an applicant or licensee
 
12           is a corporation, partnership, or other business
 
13           entity, the applicant or licensee shall identify any
 
14           other corporation, partnership, or business entity in
 
15           which it has an equity interest of five per cent or
 
16           more, including, if applicable, the state of
 
17           incorporation or registration;
 
18      (4)  Whether an applicant or licensee has been indicted,
 
19           convicted, pleaded guilty or nolo contendere, or
 
20           forfeited bail concerning any criminal offense under
 
21           the laws of any jurisdiction, either felony or
 
22           misdemeanor (except for traffic violations), including
 
23           the date, the name, and location of the court,
 

 
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                                     S.B. NO.           2197
                                                        
                                                        

 
 1           arresting agency, and prosecuting agency, the case
 
 2           number, the offense, the disposition, and the location
 
 3           and length of incarceration;
 
 4      (5)  Whether an applicant or licensee has had any license or
 
 5           certificate issued by a licensing authority in Hawaii
 
 6           or any other jurisdiction denied, restricted,
 
 7           suspended, revoked, or not renewed and a statement
 
 8           describing the facts and circumstances concerning the
 
 9           denial, restriction, suspension, revocation or
 
10           nonrenewal, including the licensing authority, the date
 
11           each such action was taken, and the reason for each
 
12           such action;
 
13      (6)  Whether an applicant or licensee has ever filed or had
 
14           filed against it a proceeding in bankruptcy or has ever
 
15           been involved in any formal process to adjust, defer,
 
16           suspend or otherwise work out the payment of any debt
 
17           including the date of filing, the name and location of
 
18           the court, the case and number of the disposition;
 
19      (7)  Whether an applicant or licensee has filed, or been
 
20           served with a complaint or other notice filed with any
 
21           public body, regarding the delinquency in the payment
 
22           of, or a dispute over the filings concerning the
 
23           payment of, any tax required under federal, state, or
 

 
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                                     S.B. NO.           2197
                                                        
                                                        

 
 1           local law, including the amount, type of tax, the
 
 2           taxing agency, and time periods involved;
 
 3      (8)  A statement listing the names and titles of all public
 
 4           officials or officers of any unit of government, and
 
 5           relatives of said public officials or officers who,
 
 6           directly or indirectly, own any financial interest in,
 
 7           have any beneficial interest in, are the creditors of
 
 8           or hold any debt instrument issued by, or hold or have
 
 9           any interest in any contractual or service relationship
 
10           with, an applicant or licensee;
 
11      (9)  Whether an applicant or licensee has made, directly or
 
12           indirectly, any political contribution, or any loans,
 
13           donations or other payments, to any candidate or office
 
14           holder, within five years from the date of filing the
 
15           application, including the amount and the method of
 
16           payment;
 
17     (10)  The name and business telephone number of the counsel
 
18           representing an applicant or licensee in matters before
 
19           the commission;
 
20     (11)  A description of any proposed or approved shipboard
 
21           gaming operation, including the type of ship, home dock
 
22           location, expected economic benefit to the community,
 
23           anticipated or actual number of employees, any
 

 
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                                     S.B. NO.           2197
                                                        
                                                        

 
 1           statement from an applicant or licensee regarding
 
 2           compliance with federal and state affirmative action
 
 3           guidelines, projected or actual admissions and
 
 4           projected or actual adjusted gross gaming receipts; and
 
 5     (12)  A description of the product or service to be supplied
 
 6           by an applicant for a supplier's license.
 
 7      (b)  Notwithstanding any provision of law to the contrary,
 
 8 the commission, on written request from any person, shall also
 
 9 provide the following information:
 
10      (1)  The amount of the wagering tax and admission tax paid
 
11           daily to the State by the holder of an owner's license;
 
12      (2)  Whenever the commission finds an applicant for an
 
13           owner's license unsuitable for licensing, a copy of the
 
14           written letter outlining the reasons for the denial;
 
15           and
 
16      (3)  Whenever the commission has refused to grant leave for
 
17           an applicant to withdraw an application, a copy of the
 
18           letter outlining the reasons for the refusal.
 
19      (c)  Subject to the above provisions, the commission shall
 
20 not disclose any information that would be barred by:
 
21      (1)  Chapter 92F; or
 
22      (2)  The laws, rules, regulations, or intergovernmental
 
23           agreements of any jurisdiction.
 

 
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                                     S.B. NO.           2197
                                                        
                                                        

 
 1      (d)  The commission may assess fees for the copying of
 
 2 information in accordance with chapter 92F.
 
 3      §   -11  Application for owner's license.(a)  A qualified
 
 4 person may apply to the commission for an owner's license to
 
 5 conduct a shipboard gaming operation.  The application shall be
 
 6 made on forms provided by the commission and shall contain such
 
 7 information as the commission prescribes, including but not
 
 8 limited to the identity of the ship on which the gaming operation
 
 9 is to be conducted and the exact location where the ship will be
 
10 docked, a certification that the ship will be registered under
 
11 this chapter at all times during which gaming operations are
 
12 conducted on board, detailed information regarding the ownership
 
13 and management of the applicant, and detailed personal
 
14 information regarding the applicant.  Information provided on the
 
15 application shall be used as a basis for a thorough background
 
16 investigation which the commission shall conduct with respect to
 
17 each applicant.  An incomplete application shall be cause for
 
18 denial of a license by the commission.
 
19      (b)  Applicants shall submit with their application all
 
20 documents, resolutions, and letters of support from the governing
 
21 body that represents the county wherein the licensee will dock.
 
22      (c)  Each applicant shall disclose the identity of every
 
23 person, association, trust, or corporation having a greater than
 

 
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                                     S.B. NO.           2197
                                                        
                                                        

 
 1 one per cent direct or indirect pecuniary interest in the
 
 2 shipboard gaming operation with respect to which the license is
 
 3 sought.  If the disclosed entity is a trust, the application
 
 4 shall disclose the names and addresses of the beneficiaries; if a
 
 5 corporation, the names and addresses of all stockholders and
 
 6 directors; if a partnership, the names and addresses of all
 
 7 partners, both general and limited.
 
 8      (d)  An application fee of $50,000 shall be paid at the time
 
 9 of filing to defray the costs associated with the background
 
10 investigation conducted by the commission, and the search and
 
11 classification of fingerprints obtained by the commission with
 
12 request to the application.  If the costs of the investigation
 
13 exceed $50,000, the applicant shall pay the additional amount to
 
14 the commission.  If the costs of the investigation are less than
 
15 $50,000, the applicant shall receive a refund of the remaining
 
16 amount.  All information, records, interviews, reports,
 
17 statements, memoranda or other data supplied to or used by the
 
18 commission in the course of its review or investigation of an
 
19 application for a license shall be privileged, strictly
 
20 confidential, and shall be used only for the purpose of
 
21 evaluating an applicant.  The information, records, interviews,
 
22 reports, statements, memoranda, or other data shall not be
 
23 admissible as evidence, nor discoverable in any action of any
 

 
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                                     S.B. NO.           2197
                                                        
                                                        

 
 1 kind in any court or before any tribunal, board, agency, or
 
 2 person, except for any action deemed necessary by the commission.
 
 3      (e)  The licensed owner shall be the person primarily
 
 4 responsible for the ship itself.  Only one shipboard gaming
 
 5 operation may be authorized by the commission on any ship.  The
 
 6 applicant must identify each ship it intends to use and certify
 
 7 that the ship:
 
 8      (1)  Has the capacity required in this chapter;
 
 9      (2)  Is accessible to persons with disabilities; and
 
10      (3)  Is fully registered and licensed in accordance with any
 
11           applicable laws.
 
12      (f)  A person who knowingly makes a false statement on an
 
13 application is guilty of a petty misdemeanor.
 
14      §   -12  Owner's licenses.(a)  No person shall operate and
 
15 maintain a gaming ship in this State unless the person has first
 
16 obtained an owner's license from the commission pursuant to this
 
17 section.  If the commission finds that the applicant meets the
 
18 eligibility requirements, the commission shall issue an owner's
 
19 license upon payment by the applicant of a $25,000 license fee
 
20 for the first year of operation.  An applicant is ineligible to
 
21 receive an owner's license if:
 
22      (1)  The person has been convicted of a felony under the
 
23           laws of this State, any other state, or the United
 

 
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                                     S.B. NO.           2197
                                                        
                                                        

 
 1           States;
 
 2      (2)  The person has been convicted of any violation of or
 
 3           substantially similar laws of any other jurisdiction;
 
 4      (3)  The person has submitted an application for a license
 
 5           under this chapter which contains false information;
 
 6      (4)  The person is a member of the commission;
 
 7      (5)  A person defined in paragraph (1), (2), (3), or (4) is
 
 8           an officer, director, or managerial employee of the
 
 9           firm or corporation;
 
10      (6)  The firm or corporation employs a person defined in
 
11           paragraph (1), (2), (3), or (4) who participates in the
 
12           management or operation of gaming operations authorized
 
13           under this chapter;
 
14      (7)  The person, firm, or corporation has more than a ten
 
15           per cent ownership interest in any entity holding an
 
16           owner's license issued under this chapter; or
 
17      (8)  A license of the person, firm, or corporation issued
 
18           under this chapter, or a license to own or operate
 
19           gaming facilities in any other jurisdiction, has been
 
20           revoked.
 
21      (b)  In determining whether to grant an owner's license to
 
22 an applicant, the commission shall consider:
 
23      (1)  The character, reputation, experience, and financial
 

 
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                                     S.B. NO.           2197
                                                        
                                                        

 
 1           integrity of the applicants and of any other or
 
 2           separate person that either:
 
 3           (A)  Controls, directly or indirectly, the applicant,
 
 4                or
 
 5           (B)  Is controlled, directly or indirectly, by the
 
 6                applicant or by a person which controls, directly
 
 7                or indirectly, the applicant;
 
 8      (2)  The facilities or proposed facilities for the conduct
 
 9           of shipboard gaming;
 
10      (3)  The highest prospective total revenue to be derived by
 
11           the State from the conduct of shipboard gaming;
 
12      (4)  The financial ability of the applicant to purchase and
 
13           maintain adequate liability and casualty insurance;
 
14      (5)  Whether the applicant has adequate capitalization to
 
15           provide and maintain, for the duration of a license, a
 
16           shipboard; and
 
17      (6)  The extent to which the applicant exceeds or meets
 
18           other standards for the issuance of an owner's license
 
19           which the commission may adopt by rule.
 
20      (c)  Each applicant shall submit with the application, on
 
21 forms provided by the commission, two sets of the applicant's
 
22 fingerprints.
 
23      (d)  In the application for an owner's license, the
 

 
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                                     S.B. NO.           2197
                                                        
                                                        

 
 1 applicant shall specify the dock at which the gaming ship will be
 
 2 based and the area within the navigable territorial waters of the
 
 3 State on which the gaming ship will operate.  In determining the
 
 4 navigable waters upon which gaming ships will operate with
 
 5 licenses, the commission shall consider the economic benefit
 
 6 which shipboard gaming confers on the State and shall seek to
 
 7 assure that all counties of the State share in the economic
 
 8 benefits of shipboard gaming.
 
 9      (e)  In granting licenses, the commission may give favorable
 
10 consideration to economically depressed areas of the State, to
 
11 applicants presenting plans which provide for significant
 
12 economic development over a large geographic area, and to
 
13 applicants who currently operate nongaming ships in Hawaii.  The
 
14 commission shall review all applications for owner's licenses,
 
15 and shall inform each applicant of the commission's decision.
 
16      (f)  The commission may revoke the owner's license if a
 
17 licensee fails to begin regular shipboard gaming excursions
 
18 within twelve months of receipt of the commission's approval of
 
19 the application upon a finding by the commission that license
 
20 revocation is in the best interest of the State.
 
21      (g)  Licenses shall be issued for a one-year period and
 
22 shall be renewable annually upon payment of a $5,000 license fee
 
23 and a determination by the commission that the licensee continues
 

 
Page 24                                                    
                                     S.B. NO.           2197
                                                        
                                                        

 
 1 to meet all of the requirements of this chapter.
 
 2      (h)  An owner's license shall entitle the licensee to own up
 
 3 to two ships.  Ships licensed to operate shall have an authorized
 
 4 capacity of at least three hundred persons.
 
 5      (i)  A licensed owner may apply through the commission for
 
 6 all licenses and permits necessary for the operation of a gaming
 
 7 ship, including a liquor license, a license to prepare and serve
 
 8 food for human consumption, and other necessary licenses.  The
 
 9 commission shall establish a process to facilitate and expedite
 
10 the approval of the necessary licenses and permits.
 
11      (j)  Nothing in this chapter shall be interpreted to
 
12 prohibit a licensed owner from operating a school for the
 
13 training of any occupational licensee.
 
14      §   -13  Bond of licensee.  Before an owner's license is
 
15 issued, the licensee shall file a bond in the sum of $200,000
 
16 with the department.  The bond shall be used to guarantee that
 
17 the licensee faithfully makes the payments, keeps books and
 
18 records, makes reports, and conducts games of chance in
 
19 conformity with this chapter and the rules adopted by the
 
20 commission.  The bond shall not be canceled by a surety on less
 
21 than thirty days notice in writing to the commission.  If a bond
 
22 is canceled and the licensee fails to file a new bond with the
 
23 commission in the required amount on or before the effective date
 

 
Page 25                                                    
                                     S.B. NO.           2197
                                                        
                                                        

 
 1 of cancellation, the licensee's license shall be revoked.  The
 
 2 total and aggregate liability of the surety on the bond is
 
 3 limited to the amount specified in the bond.
 
 4      §   -14  Supplier's licenses.(a)  No person may furnish
 
 5 any equipment, devices, or supplies to a licensed shipboard
 
 6 gaming operation unless the person has first obtained a
 
 7 supplier's license pursuant to this section.  The commission may
 
 8 issue a supplier's license to any person, firm, or corporation
 
 9 who pays a nonrefundable application fee as set by the commission
 
10 upon a determination by the commission that the applicant is
 
11 eligible for a supplier's license and upon payment by the
 
12 applicant of a $5,000 license fee.  Supplier's licenses shall be
 
13 renewable annually upon payment of the $5,000 annual license fee
 
14 and a determination by the commission that the license continues
 
15 to meet all of the requirements of this chapter.
 
16      (b)  The holder of a supplier's license is authorized to
 
17 sell or lease, and to contract to sell or lease, gaming equipment
 
18 and supplies to any licensee involved in the ownership or
 
19 management of gaming operations.
 
20      (c)  Gaming supplies and equipment may not be distributed
 
21 unless supplies and equipment conform to standards adopted by
 
22 rules of the commission.
 
23      (d)  A person, firm, or corporation is ineligible to receive
 

 
Page 26                                                    
                                     S.B. NO.           2197
                                                        
                                                        

 
 1 a supplier's license if:
 
 2      (1)  The person has been convicted of a felony under the
 
 3           laws of this State, any other state, or the United
 
 4           States;
 
 5      (2)  The person has been convicted of any violation of or
 
 6           substantially similar laws of any other jurisdiction;
 
 7      (3)  The person has submitted an application for a license
 
 8           under this chapter which contains false information;
 
 9      (4)  The person is a member of the commission;
 
10      (5)  The firm or corporation is one in which a person
 
11           defined in paragraph (1), (2), (3), or (4), is an
 
12           officer, director or managerial employee;
 
13      (6)  The firm or corporation employs a person defined in
 
14           paragraph (1), (2), (3), or (4), who participates in
 
15           the management or operation of shipboard gaming
 
16           authorized under this chapter; and
 
17      (7)  The license of the person, firm, or corporation issued
 
18           under this chapter, or a license to own or operate
 
19           gaming facilities in any other jurisdiction, has been
 
20           revoked.
 
21      (e)  A supplier shall:
 
22      (1)  Furnish to the commission a list of all equipment,
 
23           devices, and supplies offered for sale or lease in
 

 
Page 27                                                    
                                     S.B. NO.           2197
                                                        
                                                        

 
 1           connection with games authorized under this chapter;
 
 2      (2)  Keep books and records for the furnishing of equipment,
 
 3           devices, and supplies to gaming operations separate and
 
 4           distinct from any other business that the supplier
 
 5           might operate;
 
 6      (3)  File a quarterly return with the commission listing all
 
 7           sales and leases;
 
 8      (4)  Permanently affix its name to all its equipment,
 
 9           devices, and supplies for gaming operations; and
 
10      (5)  File an annual report listing its inventories of gaming
 
11           equipment, devices and supplies.
 
12      (f)  Any person who knowingly makes a false statement on an
 
13 application is guilty of a petty A misdemeanor.
 
14      (g)  Any gaming equipment, devices, and supplies provided by
 
15 any licensed supplier may either be repaired on the shipboard or
 
16 removed from the shipboard to a facility owned by the holder of
 
17 an owner's license for repair.  Any supplier's equipment,
 
18 devices, and supplies which are used by any person in an
 
19 unauthorized gaming operation, shall be forfeited to the State.
 
20      §   -15  Occupational licenses.(a)  The commission may
 
21 issue an occupational license to an applicant upon the payment of
 
22 a nonrefundable application fee as set by the commission, upon a
 
23 determination by the commission that the applicant is eligible
 

 
Page 28                                                    
                                     S.B. NO.           2197
                                                        
                                                        

 
 1 for an occupational license, and upon payment of an annual
 
 2 license fee in an amount as set by the commission.  To be
 
 3 eligible for an occupational license, an applicant shall:
 
 4      (1)  Be at least twenty-one years of age if the applicant
 
 5           will perform any function involved in gaming by
 
 6           patrons.  Any applicant seeking an occupational license
 
 7           for a nongaming function shall be at least eighteen
 
 8           years of age;
 
 9      (2)  Not have been convicted of a felony offense, or a
 
10           similar statute of any other jurisdiction, or a crime
 
11           involving dishonesty or moral turpitude;
 
12      (3)  Have demonstrated a level of skill or knowledge which
 
13           the commission determines to be necessary in order to
 
14           operate gaming aboard a ship; and
 
15      (4)  Have met standards for the holding of an occupational
 
16           license as provided in rules adopted by the commission,
 
17           including background inquiries and other requirements
 
18           similar to those for an owner's license.
 
19      (b)  Each application for an occupational license shall be
 
20 on forms prescribed by the commission and shall contain all
 
21 information required by the commission.  The applicant shall set
 
22 forth in the application whether the applicant:
 
23      (1)  Has been issued prior gaming-related licenses;
 

 
Page 29                                                    
                                     S.B. NO.           2197
                                                        
                                                        

 
 1      (2)  Has been licensed in any other state under any other
 
 2           name, and, if so, the name and the applicant's age; or
 
 3      (3)  Whether or not a permit or license issued to the
 
 4           applicant in any other state has been suspended,
 
 5           restricted, or revoked and, if so, for what period of
 
 6           time.
 
 7      (c)  Each applicant shall submit with the application,  two
 
 8 sets of the applicant's fingerprints.  The commission shall
 
 9 charge each applicant a fee to defray the costs associated with
 
10 the search and classification of fingerprints obtained by the
 
11 commission with respect to the application.
 
12      (d)  The commission may in its discretion refuse an
 
13 occupational license to any person:
 
14      (1)  Who is unqualified to perform the duties required of
 
15           such applicant;
 
16      (2)  Who fails to disclose or states falsely any information
 
17           called for in the application;
 
18      (3)  Who has been found guilty of a violation of this
 
19           chapter or whose prior gaming related license or
 
20           application therefor has been suspended, restricted,
 
21           revoked, or denied for just cause in any other state;
 
22           or
 
23      (4)  For any other just cause.
 

 
Page 30                                                    
                                     S.B. NO.           2197
                                                        
                                                        

 
 1      (e)  The commission may suspend, revoke, or restrict any
 
 2 occupational licensee:
 
 3      (1)  For any violation of this chapter;
 
 4      (2)  For any violation of the rules of the commission;
 
 5      (3)  For any cause which, if known to the commission, would
 
 6           have disqualified the applicant from receiving that
 
 7           license;
 
 8      (4)  For default in the payment of any obligation or debt
 
 9           due to the State; or
 
10      (5)  For any other just cause.
 
11      (f)  A person who knowingly makes a false statement on an
 
12 application is guilty of a petty misdemeanor.
 
13      (g)  Any license issued pursuant to this section shall be
 
14 valid for a period of one year from the date of issuance and
 
15 shall be renewable annually upon payment of the annual license
 
16 fee and a determination by the commission that the license
 
17 continues to meet all of the requirements of this chapter.
 
18      (h)  Any training provided for occupational licensees may be
 
19 conducted either on a licensed gaming ship or at a school with
 
20 which a licensed owner has entered into an agreement.
 
21      §   -16  Conduct of gaming.  Gaming may be conducted by
 
22 licensed owners aboard gaming ships, subject to the following
 
23 standards:
 

 
Page 31                                                    
                                     S.B. NO.           2197
                                                        
                                                        

 
 1      (1)  No gaming may be conducted while a ship is docked;
 
 2      (2)  Gaming excursions may not exceed six hours for a round
 
 3           trip; provided that the commission may provide by rule
 
 4           for extended hours for inter-island cruises;
 
 5      (3)  Minimum and maximum wagers on games shall be set by the
 
 6           licensee;
 
 7      (4)  Agents of the commission may board and inspect any
 
 8           gaming ship at any time for the purpose of determining
 
 9           compliance with this chapter.  Every gaming ship, if
 
10           under way and being hailed by a law enforcement officer
 
11           or agent of the commission, must stop immediately and
 
12           lay to;
 
13      (5)  Employees of the commission shall have the right to be
 
14           present on the gaming ship or on adjacent facilities
 
15           under the control of the licensee;
 
16      (6)  Gaming equipment and supplies customarily used in
 
17           conducting shipboard gaming must be purchased or leased
 
18           only from suppliers licensed under this chapter;
 
19      (7)  Persons licensed under this chapter shall permit no
 
20           form of wagering on games except as permitted by this
 
21           chapter;
 
22      (8)  Wagers may be received only from a person present on a
 
23           licensed gaming ship.  No person present on a licensed
 

 
Page 32                                                    
                                     S.B. NO.           2197
                                                        
                                                        

 
 1           gaming ship shall place or attempt to place a wager on
 
 2           behalf of another person who is not present on the
 
 3           gaming ship;
 
 4      (9)  Wagering shall not be conducted with money or other
 
 5           negotiable currency;
 
 6     (10)  A person under age twenty-one shall not be permitted on
 
 7           an area of a gaming ship where gaming is being
 
 8           conducted, except for a person at least eighteen years
 
 9           of age who is an employee of the shipboard gaming
 
10           operation.  No employee under age twenty-one shall
 
11           perform any function involved in gaming by the patrons.
 
12           No person under age twenty-one shall be permitted to
 
13           make a wager under this chapter;
 
14     (11)  Gaming excursions are permitted only when the navigable
 
15           waters for which the ship is licensed is navigable as
 
16           determined by the commission in consultation with the
 
17           U. S. Army Corps of Engineers;
 
18     (12)  All tokens, chips, or electronic cards used to make
 
19           wagers must be purchased from a licensed owner either
 
20           aboard a gaming ship or at an onshore facility which
 
21           has been approved by the commission and which is
 
22           located where the gaming ship docks.  The tokens,
 
23           chips, or electronic cards may be purchased by means of
 

 
Page 33                                                    
                                     S.B. NO.           2197
                                                        
                                                        

 
 1           an agreement under which the owner extends credit to
 
 2           the patron.  The tokens, chips, or electronic cards may
 
 3           be used while aboard the gaming ship only for the
 
 4           purpose of making wagers on authorized games;
 
 5     (13)  Notwithstanding any other provision to the contrary,
 
 6           the commission may issue special event licenses
 
 7           allowing persons not otherwise licensed to conduct
 
 8           shipboard gaming to conduct such gaming on a specified
 
 9           date or series of dates.  Shipboard gaming under such a
 
10           license may take place on a ship not normally used for
 
11           shipboard gaming.  The commission shall establish
 
12           standards, fees, and fines for, and limitations upon,
 
13           such licenses which may differ from the standards,
 
14           fees, fines, and limitations otherwise applicable.  All
 
15           fees and fines collected shall be deposited into the
 
16           state gaming fund pursuant to section    -27; and
 
17     (14)  In addition to the above, gaming must be conducted in
 
18           accordance with all rules adopted by the commission.
 
19      §   -17  Collection of amounts owing under credit
 
20 agreements.  Notwithstanding any other law to the contrary, a
 
21 licensed owner who extends credit to a shipboard gaming patron is
 
22 expressly authorized to institute a cause of action to collect
 
23 any amounts due and owing under the extension of credit, as well
 

 
Page 34                                                    
                                     S.B. NO.           2197
                                                        
                                                        

 
 1 as the owner's costs, expenses, and reasonable attorney's fees
 
 2 incurred in collection.
 
 3      §   -18  Admission tax.  (a)  A tax is hereby imposed upon
 
 4 admissions to gaming excursions authorized under this chapter at
 
 5 a rate of $10 per person admitted.  This admission tax is imposed
 
 6 upon the licensed owner conducting the gaming excursion.
 
 7      (1)  If tickets are issued which are good for more than one
 
 8           gaming excursion, the admission tax shall be paid for
 
 9           each person using the ticket on each gaming excursion
 
10           for which the ticket is used;
 
11      (2)  If free passes or complimentary admission tickets are
 
12           issued, the licensee shall pay the same tax upon these
 
13           passes or complimentary tickets as if they were sold at
 
14           the regular and usual admission rate;
 
15      (3)  The owner's licensee may issue tax-free passes to
 
16           actual and necessary officials and employees of the
 
17           licensee or other persons actually working on the
 
18           gaming ship; and
 
19      (4)  The number and issuance of tax-free passes is subject
 
20           to the rules of the commission, and a list of all
 
21           persons to whom the tax-free passes are issued shall be
 
22           filed with the commission.
 
23      (b)  The $10 tax imposed under subsection (a), shall be
 

 
Page 35                                                    
                                     S.B. NO.           2197
                                                        
                                                        

 
 1 collected by the commission and deposited into the state gaming
 
 2 fund pursuant to section    -27.
 
 3      (c)  The licensed owner shall pay the entire admission tax
 
 4 to the commission on a daily basis.  Accompanying each payment
 
 5 shall be a return on forms provided by the commission which shall
 
 6 include other information regarding admissions as the commission
 
 7 may require.  Failure to submit either the payment or the return
 
 8 within the specified time may result in suspension or revocation
 
 9 of the owner's license.
 
10      §   -19  Wagering tax; rate; distribution.  A tax is imposed
 
11 on the adjusted gross receipts received from games authorized
 
12 under this chapter at the rate of twenty per cent.  The tax
 
13 imposed by this section shall be paid by the licensed owner to
 
14 the commission after the close of the day the wagers were made
 
15 and shall be deposited into the state gaming fund pursuant to
 
16 section    -27.
 
17      §   -20  Licensees; records; reports; supervision.(a)  A
 
18 licensed owner shall keep books and records so as to clearly
 
19 show:
 
20      (1)  The amount received daily from admission taxes;
 
21      (2)  The total amount of gross receipts; and
 
22      (3)  The total amount of the adjusted gross receipts.
 
23      (b)  The licensed owner shall furnish to the commission
 

 
Page 36                                                    
                                     S.B. NO.           2197
                                                        
                                                        

 
 1 reports and information as the commission may require with
 
 2 respect to its activities on forms designed and supplied for that
 
 3 purpose by the commission.
 
 4      (c)  The books and records kept by a licensed owner are
 
 5 public records and the examination, publication, and
 
 6 dissemination of the books and records shall be subject to
 
 7 chapter 92F.
 
 8      §   -21  Audit of licensee operations.  Within ninety days
 
 9 after the end of each quarter of each fiscal year, the licensed
 
10 owner shall transmit to the commission an audit of the financial
 
11 transactions and condition of the licensee's total operations.
 
12 All audits shall be conducted by certified public accountants
 
13 selected by the commission.  Each certified public accountant
 
14 must be registered and licensed to practice in this State.  The
 
15 compensation for each certified public accountant shall be paid
 
16 directly by the licensed owner to the certified public
 
17 accountant.
 
18      §   -22  Judicial review.  Jurisdiction and venue for the
 
19 judicial review of a final order of the commission relating to
 
20 owner's, supplier's, or special event licenses is vested in the
 
21 circuit court of the appropriate jurisdiction.  A petition for
 
22 judicial review of a final order of the commission must be filed
 
23 within thirty days after entry of the final order.
 

 
Page 37                                                    
                                     S.B. NO.           2197
                                                        
                                                        

 
 1      §   -23  Prohibited activities; penalty.(a)  A person is
 
 2 guilty of a misdemeanor for any of the following:
 
 3      (1)  Operating a gaming excursion where wagering is used or
 
 4           to be used without a license issued by the commission;
 
 5      (2)  Operating a gaming excursion where wagering is
 
 6           permitted other than in the manner authorized under
 
 7           this chapter;
 
 8      (3)  Permitting a person under twenty-one years to make a
 
 9           wager; or
 
10      (4)  Violating section    -16(12).
 
11      (b)  A person wagering or accepting a wager at any location
 
12 outside the gaming ship is subject to the penalties in part III
 
13 of chapter 712.
 
14      (c)  A person commits a class C felony and, in addition,
 
15 shall be barred for life from gaming ships under the jurisdiction
 
16 of the commission, if the person does any of the following:
 
17      (1)  Offers, promises, or gives anything of value or benefit
 
18           to a person who is connected with a gaming ship owner
 
19           including, but not limited to, an officer or employee
 
20           of a licensed owner or holder of an occupational
 
21           license pursuant to an agreement or arrangement or with
 
22           the intent that the promise or thing of value or
 
23           benefit will influence the actions of the person to
 

 
Page 38                                                    
                                     S.B. NO.           2197
                                                        
                                                        

 
 1           whom the offer, promise, or gift was made in order to
 
 2           affect or attempt to affect the outcome of a gaming
 
 3           activity or to influence official action of a member of
 
 4           the commission;
 
 5      (2)  Solicits or knowingly accepts or receives a promise of
 
 6           anything of value or benefit while the person is
 
 7           connected with a gaming ship including, but not limited
 
 8           to, an officer or employee of a licensed owner, or
 
 9           holder of an occupational license, pursuant to an
 
10           understanding or arrangement or with the intent that
 
11           the promise or thing of value or benefit will influence
 
12           the actions of the person to affect or attempt to
 
13           affect the outcome of a gaming activity, or to
 
14           influence official action of a member of the
 
15           commission.
 
16      (3)  Uses or possesses with the intent to use a device to
 
17           assist:
 
18           (A)  In projecting the outcome of the game;
 
19           (B)  In keeping track of the cards played;
 
20           (C)  In analyzing the probability of the occurrence of
 
21                an event relating to the gaming activity; and
 
22           (D)  In analyzing the strategy for playing or betting
 
23                to be used in the game except as permitted by the
 

 
Page 39                                                    
                                     S.B. NO.           2197
                                                        
                                                        

 
 1                commission;
 
 2      (4)  Cheats at a gaming activity;
 
 3      (5)  Manufactures, sells, or distributes any cards, chips,
 
 4           dice, game, or device which is intended to be used to
 
 5           violate this chapter;
 
 6      (6)  Alters or misrepresents the outcome of a gaming
 
 7           activity on which wagers have been made after the
 
 8           outcome is made sure but before it is revealed to the
 
 9           players;
 
10      (7)  Places a bet after acquiring knowledge, not available
 
11           to all players, of the outcome of the gaming activity
 
12           which is subject of the bet or to aid a person in
 
13           acquiring the knowledge for the purpose of placing a
 
14           bet contingent on that outcome;
 
15      (8)  Claims, collects, or takes, or attempts to claim,
 
16           collect, or take, money or anything of value in or from
 
17           the games, with intent to defraud, without having made
 
18           a wager contingent on winning a gaming activity, or
 
19           claims, collects, or takes an amount of money or thing
 
20           of value of greater value than the amount won;
 
21      (9)  Uses counterfeit chips or tokens in a gaming activity;
 
22           or
 
23     (10)  Possesses any key or device designed for the purpose of
 

 
Page 40                                                    
                                     S.B. NO.           2197
                                                        
                                                        

 
 1           opening, entering, or affecting the operation of a
 
 2           gaming activity, drop box, or an electronic or
 
 3           mechanical device connected with the gaming activity or
 
 4           for removing coins, tokens, chips or other contents of
 
 5           a gaming activity.  This paragraph does not apply to a
 
 6           gaming licensee or employee of a gaming licensee acting
 
 7           in furtherance of the employee's employment.
 
 8      (d)  The possession of more than one of the devices
 
 9 described in subsection (c)(3), (5), or (10) permits a rebuttable
 
10 presumption that the possessor intended to use the devices for
 
11 cheating.
 
12      An action to prosecute any crime occurring during a gaming
 
13 excursion shall be tried in the county of the dock at which the
 
14 gaming ship is based.
 
15      §   -24  Forfeiture of property.(a)  Except as provided in
 
16 subsection (b), any gaming ship used for the conduct of gaming in
 
17 violation of section    -16, shall be subject to section 712-
 
18 1222.5.  Every gaming device found on a ship operating games in
 
19 violation of this chapter shall be subject to seizure,
 
20 confiscation, and destruction.
 
21      (b)  It is not a violation of this chapter for a ship or
 
22 other watercraft which is licensed for gaming by another state to
 
23 dock on the shores of this State if the State has granted
 

 
Page 41                                                    
                                     S.B. NO.           2197
                                                        
                                                        

 
 1 permission for docking; provided no gaming is conducted on the
 
 2 ship or other watercraft while it is docked on the shores of this
 
 3 State or traversing in any navigable territorial waters of the
 
 4 State.  No gaming device shall be subject to seizure,
 
 5 confiscation, or destruction if the gaming device is located on
 
 6 such a ship or other watercraft.
 
 7      §   -25  Prohibited activities; civil penalties.  Any person
 
 8 who conducts a gaming operation without first obtaining a license
 
 9 to do so, or who continues to conduct such games after revocation
 
10 of the person's license, or any licensee who conducts or allows
 
11 to be conducted any unauthorized games on a ship where it is
 
12 authorized to conduct its shipboard gaming operation, in addition
 
13 to other penalties provided, shall be subject to a civil penalty
 
14 equal to the amount of gross receipts derived from wagering on
 
15 the games, whether unauthorized or authorized, conducted on that
 
16 day as well as confiscation and forfeiture of all gaming
 
17 equipment used in the conduct of unauthorized games.
 
18      §   -26  Criminal history record information.  Whenever the
 
19 commission is authorized or required by law to consider some
 
20 aspect of criminal history record information for the purpose of
 
21 carrying out its statutory powers and responsibilities, upon
 
22 request from the commission, the Hawaii criminal justice data
 
23 center shall furnish any information contained in its files.
 

 
Page 42                                                    
                                     S.B. NO.           2197
                                                        
                                                        

 
 1      §   -27  State gaming fund.(a)  There is established
 
 2 within the state treasury the state gaming fund, into which shall
 
 3 be deposited all fees and the wagering taxes collected under this
 
 4 chapter.  Moneys in the fund shall be used as follows:
 
 5      (1)  Not more than       per cent shall be used for expenses
 
 6           incurred for the administration and enforcement of this
 
 7           chapter;
 
 8      (2)  Ten per cent shall be allocated, subject to
 
 9           appropriation by the legislature, to the counties in
 
10           proportion to the revenues generated by gaming ships
 
11           docked in each respective county;
 
12      (3)  Not more than       per cent shall be used by the
 
13           commission to administer services and programs for
 
14           problem gamblers; and
 
15      (4)  The remaining moneys in the fund shall be deposited
 
16           into the general fund.
 
17      (b)  In addition to the annual report required under section
 
18    -8, the commission shall submit to the legislature prior to
 
19 the convening of each regular session, a comprehensive financial
 
20 report detailing:
 
21      (1)  The revenues collected from the taxes, fees, and fines
 
22           imposed under this chapter;
 
23      (2)  The amounts allocable to administrative and enforcement
 

 
Page 43                                                    
                                     S.B. NO.           2197
                                                        
                                                        

 
 1           costs; and
 
 2      (3)  The amounts available for appropriation by the
 
 3           legislature for allocation to the counties;
 
 4      (4)  The amounts available for appropriation by the
 
 5           legislature for services and programs for problem
 
 6           gamblers."
 
 7      SECTION 2.  Section 36-27, Hawaii Revised Statutes, is
 
 8 amended to read as follows:
 
 9      "§36-27  Transfers from special funds for central service
 
10 expenses.  [Except as provided in this section, and
 
11 notwithstanding any other law to the contrary, from] From time to
 
12 time, the director of finance, for the purpose of defraying the
 
13 prorated estimate of central service expenses of government in
 
14 relation to all special funds, except the:
 
15      (1)  Special summer school and intersession fund under
 
16           section 302A-1310;
 
17      (2)  School cafeteria special funds of the department of
 
18           education;
 
19      (3)  Special funds of the University of Hawaii;
 
20      (4)  State educational facilities improvement special fund;
 
21      (5)  Convention center capital and operations special fund
 
22           under section 206X-10.5;
 
23      (6)  Special funds established by section 206E-6;
 

 
Page 44                                                    
                                     S.B. NO.           2197
                                                        
                                                        

 
 1      (7)  Housing loan program revenue bond special fund;
 
 2      (8)  Housing project bond special fund;
 
 3      (9)  Aloha Tower fund created by section 206J-17;
 
 4     (10)  Domestic violence prevention special fund under section
 
 5           321-1.3;
 
 6     (11)  Spouse and child abuse special account under section
 
 7           346-7.5;
 
 8     (12)  Spouse and child abuse special account under section
 
 9           601-3.6;
 
10     (13)  Funds of the employees' retirement system created by
 
11           section 88-109;
 
12     (14)  Unemployment compensation fund established under
 
13           section 383-121;
 
14     (15)  Hawaii hurricane relief fund established under chapter
 
15           431P;
 
16     (16)  Hawaii health systems corporation special funds;
 
17     (17)  Boiler and elevator safety revolving fund established
 
18           under section 397-5.5;
 
19     (18)  Tourism special fund established under section 201B-11;
 
20     (19)  Department of commerce and consumer affairs' special
 
21           funds;
 
22     (20)  Compliance resolution fund established under section
 
23           26-9;
 

 
Page 45                                                    
                                     S.B. NO.           2197
                                                        
                                                        

 
 1     (21)  Universal service fund established under chapter 269;
 
 2     (22)  Integrated tax information management systems special
 
 3           fund under section 231-3.2;
 
 4     (23)  Insurance regulation fund under section 431:2-215;
 
 5     (24)  Hawaii tobacco settlement special fund under section
 
 6           328L-2; [and]
 
 7     (25)  Emergency budget and reserve fund under section 328L-3;
 
 8           and
 
 9     (26)  The state gaming fund under section    -27;
 
10 shall deduct five per cent of all receipts of all other special
 
11 funds, which deduction shall be transferred to the general fund
 
12 of the State and become general realizations of the State.  All
 
13 officers of the State and other persons having power to allocate
 
14 or disburse any special funds shall cooperate with the director
 
15 in effecting these transfers.  To determine the proper revenue
 
16 base upon which the central service assessment is to be
 
17 calculated, the director shall adopt rules pursuant to chapter 91
 
18 for the purpose of suspending or limiting the application of the
 
19 central service assessment of any fund.  No later than twenty
 
20 days prior to the convening of each regular session of the
 
21 legislature, the director shall report all central service
 
22 assessments made during the preceding fiscal year."
 
23      SECTION 3.  Section 36-30, Hawaii Revised Statutes, is
 

 
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 1 amended by amending subsection (a) to read as follows:
 
 2      "(a)  Each special fund, except the:
 
 3      (1)  Transportation use special fund established by section
 
 4           261D-1;
 
 5      (2)  Special summer school and intersession fund under
 
 6           section 302A-1310;
 
 7      (3)  School cafeteria special funds of the department of
 
 8           education;
 
 9      (4)  Special funds of the University of Hawaii;
 
10      (5)  State educational facilities improvement special fund;
 
11      (6)  Special funds established by section 206E-6;
 
12      (7)  Aloha Tower fund created by section 206J-17;
 
13      (8)  Domestic violence prevention special fund under section
 
14           321-1.3;
 
15      (9)  Spouse and child abuse special account under section
 
16           346-7.5;
 
17     (10)  Spouse and child abuse special account under section
 
18           601-3.6;
 
19     (11)  Funds of the employees' retirement system created by
 
20           section 88-109;
 
21     (12)  Unemployment compensation fund established under
 
22           section 383-121;
 
23     (13)  Hawaii hurricane relief fund established under chapter
 

 
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 1           431P;
 
 2     (14)  Convention center capital and operations special fund
 
 3           established under section 206X-10.5;
 
 4     (15)  Hawaii health systems corporation special funds;
 
 5     (16)  Tourism special fund established under section 201B-11;
 
 6     (17)  Compliance resolution fund established under section
 
 7           26-9;
 
 8     (18)  Universal service fund established under chapter 269;
 
 9     (19)  Integrated tax information management systems special
 
10           fund;
 
11     (20)  Insurance regulation fund under section 431:2-215;
 
12     (21)  Hawaii tobacco settlement special fund under section
 
13           328L-2; [and]
 
14     (22)  Emergency and budget reserve fund under section 328L-3;
 
15           and
 
16     (23)  State gaming fund under section    -27;
 
17 shall be responsible for its pro rata share of the administrative
 
18 expenses incurred by the department responsible for the
 
19 operations supported by the special fund concerned."
 
20      SECTION 4.  Section 712-1222.5, Hawaii Revised Statutes, is
 
21 amended by amending subsection (3) to read as follows:
 
22      "(3)  This section shall not apply to gambling activity:
 
23      (a)  [conducted] Conducted during travel from foreign
 

 
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 1           nations or another state or territory of the United
 
 2           States to the point of first entry into state waters or
 
 3           during travel to foreign nations or another state or
 
 4           territory of the United States from the point of final
 
 5           exit from state waters; or
 
 6      (b)  Authorized on ships licensed under chapter    ;
 
 7 provided that nothing [herein] in this section shall preclude
 
 8 prosecution for any offense under this part."
 
 9      SECTION 5.  At the 2000 general election there shall be an
 
10 advisory referendum on the question of Hawaii's need for
 
11 legalized shipboard gambling.  The chief election officer of the
 
12 State shall submit the following question to the electorate with
 
13 instructions as follows:
 
14      1.  The proposal shall read:  "Shall the State of Hawaii
 
15 allow legalized shipboard gambling?"
 
16      The chief election officer shall publish a notice of the
 
17 referendum proposal and descriptive information concerning
 
18 shipboard gambling, in a newspaper of general circulation in the
 
19 State at least thirty days before the date of the referendum.
 
20 The notice of the referendum shall also be available at all
 
21 public libraries in the State and the office of the county clerk
 
22 of each county.
 
23      The ballot shall print the question and the question shall
 

 
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                                     S.B. NO.           2197
                                                        
                                                        

 
 1 have designated spaces to mark YES or NO.  The proposal shall be
 
 2 considered approved only if approved by a majority of all the
 
 3 votes tallied upon the question, this majority constituting more
 
 4 than fifty per cent of the total votes cast at the election.
 
 5      SECTION 6.  Statutory material to be repealed is bracketed.
 
 6 New statutory material is underscored.
 
 7      SECTION 7.  This Act shall take effect upon its approval;
 
 8 provided that:
 
 9      (1)  Sections 1 to 4 of this Act shall be inoperative until
 
10           such time as the chief elections officer of the State
 
11           certifies that the electorate has approved the proposal
 
12           in the advisory referendum provided for in section 5 of
 
13           this Act, at which time, sections 1 to 4 of this Act
 
14           shall become operative; and
 
15      (2)  This Act shall be repealed on January 1, 2001, if
 
16           sections 1 to 4 of this Act have not become operative
 
17           by that date.
 
18 
 
19                           INTRODUCED BY:  _______________________