HB2251.DOC

SECTION 1. The legislature finds that the State is undergoing a significant and possibly protracted economic downturn in tandem with the national and global economic and financial crises. Numerous jobs have been lost, a number of large and small companies have declared bankruptcy or left the State, and many families have suffered foreclosure on their over-mortgaged homes. In the past year, the council on revenues has consistently reduced its forecasts of Hawaii's tax revenues. Across-the-board spending restrictions have already been put in place in state government, and a general hiring freeze has been implemented except in areas that impact public health and safety.

In the face of these extraordinary conditions, the State cannot proceed with business as usual. All resources must be examined to address critical statewide health, safety, and education needs. Accordingly, the purpose of this Act is to generate additional general fund revenue to ensure the delivery of critical services statewide by permitting gaming, restricted to only one location, for individuals who are over the age of twenty-one and who are either nonresidents of the State or who possess evidence of a paid round-trip ticket in the individual's name for travel to a final destination that is located outside of the State.

SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

GAMINg

§ -1 Definitions. As used in this chapter:

"Casino gaming" means the operation of games licensed under this chapter, including but not limited to baccarat, twenty‑one, poker, craps, slot machine, video game of chance, roulette wheel, klondike table, punch‑board, faro layout, keno layout, numbers ticket, push card, jar ticket, pull tab, or other game of chance that is authorized by the gaming commission as a wagering device.

"Department" means the department of commerce and consumer affairs.

"Gaming" means the act of an individual to stake or risk something of value upon the outcome of a contest of chance or a future contingent event not under the individual's control or influence, upon an agreement or understanding that the individual or someone else will receive something of value in the event of a certain outcome.

"Gross receipts" means the total of:

(1) Cash received as winnings;

(2) Cash received in payment for credit extended by a licensee to an individual for purposes of gaming; and

(3) Compensation received for conducting any game in which the licensee is not party to a wager.

Gross receipts do not include counterfeit money or tokens, coins of other countries that are received in gaming devices, cash taken in fraudulent acts perpetrated against a licensee for which the licensee is not reimbursed, and cash received as entry fees for contests or tournaments in which individuals compete for prizes.

"Individual" means a natural person.

§ -2 Gaming commission established. There is established a gaming commission within the department of commerce and consumer affairs. The governor shall appoint five members of the gaming commission pursuant to section 26-34. The commission shall:

(1) Establish the qualifications of any applicant to conduct casino gaming under this chapter; provided that an applicant shall be a corporation properly incorporated in the State;

(2) Evaluate applicants and every five years, award one five-year casino gaming license to a responsive and qualified applicant who submits the highest bid;

(3) Collect all taxes and fees imposed;

(4) Administer a problem gamblers program; and

(5) Regulate casino gaming established under this chapter.

§ -3 Gaming; where permitted. The license issued by the gaming commission pursuant to section -2 shall only apply to a casino gaming operation located within a county that has a population of more than five hundred thousand.

§ -4 Gaming restrictions. No individual shall engage in an act of gaming within a licensed casino gaming operation under this chapter unless the individual shows evidence that the individual:

(1) Is at least twenty-one years of age; and

(2) Meets one of the following:

(A) Is a nonresident of the State; or

(B) Possesses a valid and fully-paid round-trip ticket or other voucher in the individual's name for travel on either an aircraft or ship to a final destination that is outside of the State.

§ -5 Wagering tax; distribution. (a) A wagering tax shall be imposed on the monthly gross receipts received from casino gaming authorized under this chapter at the rate of seven per cent. The wagering tax imposed by this section shall be in lieu of all other state taxes on gross or adjusted gross receipts, except income taxes, including taxes levied under chapter 237. There shall also be imposed an annual fee of $250 on each casino gaming device enumerated in the definition of casino gaming in section -1, including but not limited to video or slot machines.

(b) All taxes and fees collected under this section shall be deposited into the general fund; provided that the commission shall retain a portion of the wagering tax as follows:

(1) per cent for the administrative costs of the commission; and

(2) per cent to implement and administer the problem gamblers program.

§ -6 Rules. The commission shall adopt rules under chapter 91 to implement this chapter."

SECTION 3. Chapter 712, Hawaii Revised Statutes, is amended by adding a new section to part III to be appropriately designated and to read as follows:

"§712‑ Casino gaming; exempted. This part shall not apply to casino gaming as authorized in chapter ."

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	2251
TWENTY-FIFTH LEGISLATURE, 2010
STATE OF HAWAII