2012 -- H 7922

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LC02004

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO SPORTS, RACING, AND ATHLETICS

     

     

     Introduced By: Representatives Jackson, Gallison, and Martin

     Date Introduced: March 08, 2012

     Referred To: House Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 41-3 of the General Laws entitled "HORSE RACING" is hereby

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repealed in its entirety.

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     CHAPTER 41-3

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Horse Racing

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     41-3-1. License required for racing. -- No person, association, or corporation shall hold

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or conduct any meeting within the state where horse racing shall be permitted for any stake,

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purse, or reward, except such person, association, or corporation as shall be licensed by the

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division of racing and athletics as provided in this chapter, and after an affirmative vote of the

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qualified electors as provided in chapter 9 of this title.

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     41-3-2. Town or city election on establishment of track. -- Before a horse racing track

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shall be established in any town or city, the approval of the question as is required by chapter 9 of

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this title shall be necessary, and if consent be thus given, all further regulations shall rest with the

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division of racing and athletics.

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     41-3-3. Classes of licenses. -- The division of racing and athletics shall be empowered to

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license race meets under the following classes:

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      (1) Class A. Horse running races, so-called.

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      (2) Class B. Competitive harness horse races, which are run in connection with the grand

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circuit, so-called.

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      (3) Class C. Competitive harness horse races, which are not run in connection with the

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grand circuit, so-called.

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      (4) Class D. Competitive horse races where there is no wagering.

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      (5) Class E. Harness racing by any incorporated association duly authorized to maintain

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agricultural exhibits.

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     41-3-4. Application for license -- Action by division. -- (a) Any person, association, or

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corporation desiring to conduct horse racing within this state shall apply to the division of racing

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and athletics for a license on forms provided by the division. The application shall specify the

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days on which horse racing is to be conducted, the location of the horse racing, and such other

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information as may be required by the division.

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      (b) The division may also require any person, association, or corporation to give

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information as to financial standing and credit. The division shall have the right to reject any

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applications for a license for any cause, which it may deem sufficient, and the action of the

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division both as to the license and the date or award shall be final, subject to the right of appeal

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provided by chapter 2 of this title.

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      (c) The division shall, as far as practicable, avoid conflicts in the dates assigned or

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awarded for horse racing in the state.

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     41-3-5. Award of dates for Class A racing. -- The application for a Class A license shall

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be filed on or before the fifteenth day of February in any year and the division of racing and

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athletics having considered the applications, shall on or before the first day of April in any year,

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assign or award all dates for racing within the state for the current year; provided, however, that

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the division in its discretion, may receive applications at a later date and may change the

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assignment or award if in its judgment the change is found necessary, but prior to making the

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change it shall print a public notice in the newspapers and shall give the party aggrieved by the

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change an opportunity to be heard.

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     41-3-6. Renewal of Class A licenses. -- Class A licenses when granted shall be

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renewable at the option of the licensee for a period of ten (10) years, provided the licensee

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complies with the provisions of this chapter and chapter 4 of this title.

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     41-3-7. Rebate of license fees. -- If by any reason or cause beyond the control of and

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through no fault or neglect of any licensee and while the licensee is not in default, it should

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become impossible or impracticable to conduct horse racing upon any day or days licensed by the

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division of racing and athletics, at the request of the licensee and upon sworn statements,

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submitted in writing by the licensee, the division may rebate all or part of the license fee.

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     41-3-8. Licensing of owners, trainers, jockeys, and other personnel. -- The division at

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its discretion shall license owners, trainers, jockeys, starters, exercise boys, hotwalkers, grooms,

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and all other stable personnel as well as pari-mutuel employees, concessioners and vendors,

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security personnel, licensees, employees, pari-mutuel totalizator companies and its employees,

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and all employees of race track management.

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     41-3-8.1. Licensing of concessioners, vendors, pari-mutuel totalizator companies,

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and employees. -- (a) All persons, firms, partnerships, associations, or corporations desiring to

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operate any concession allied to any horse racing track, shall apply for a license to the division of

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racing and athletics, on such forms and in such a manner as prescribed by regulations of the

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division. The division, by regulation, shall establish other occupational licensing for all

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employees of the concessions, all pari-mutuel employees, and all persons employed in any other

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capacity by the race track management, and for other persons engaged in racing activities at any

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horse racing track. (b) All persons, firms, associations, or corporations employed by the

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management of a horse racing track in providing pari-mutuel totalizator computer services for

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pari-mutuel computations, shall apply for a license to the division of racing and athletics upon

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such forms and in such manner as prescribed by regulations of the division. All employees of the

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pari-mutuel totalizator computer companies shall be licensed by the division on forms prescribed

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by regulations of the division. (c) In determining whether to grant a license pursuant to this

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section, the division may require the applicant to submit information as to: financial standing and

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credit; moral character; criminal record, if any; previous employment; corporate, partnership or

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association affiliations; ownership of personal assets; and such other information as it deems

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pertinent to the issuance of the license. The division may reject for good cause an application for

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a license, and it may suspend or revoke for good cause any license issued by it after a hearing

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held in accordance with chapter 35 of title 42, and subject to further appeal procedures provided

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by section 41-2-3. (d) The issuance of a license and the payment of annual fees shall be in

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accordance with the following schedule:

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      (1) Concessionaire and vendors  $100

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      (2) Occupational license:

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     Owners  5.00

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     Trainers  5.00

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     Jockeys  5.00

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     Apprentice jockeys  5.00

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     Authorized agents  5.00

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     Starters  5.00

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     Stable employees  5.00

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     Assumed names  10.00

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     Colors  5.00

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     (3) Vendors and concessionaries' employees  5.00

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     (4) Pari-mutuel employees  5.00

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     (5) Employees of race track management  5.00

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     (6) Pari-mutuel totalizator company  100

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     (7) Pari-mutuel totalizator company employees  5.00

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     (e) All individual applicants for licensing under this section shall be fingerprinted, and

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upon obtaining the license, shall wear upon his or her outer apparel a photo identification badge,

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issued or authorized by the division of racing and athletics under rules and regulations

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promulgated by the division.

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     41-3-9. Rules as to betting and track operation -- Deputies. -- The division of racing

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and athletics may make rules and regulations governing the operation of the tracks and stables.

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The division may make rules regulating betting at the horse racing events. The division may, at its

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discretion, appoint deputies, not exceeding twenty-two (22), to perform such duties as the rules

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and regulations of the division may require.

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     41-3-9.1. Admittance in stable enclosure. -- (a) No person shall enter the stable

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enclosure of a licensee of thoroughbred horses kept for a racing meeting without first obtaining

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the proper photo identification or permission in writing from the designated track security

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authority.

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      (b) Any person violating this section shall be guilty of a misdemeanor punishable by a

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fine up to one hundred dollars ($100) or a jail sentence of up to thirty (30) days or both for the

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first offense, and the second and subsequent offense shall be punishable by a fine up to two

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hundred ($200) dollars or up to ninety (90) days in jail or both.

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      (c) This section shall not apply to any police officer or firefighter in the exercise of his or

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her lawful duty.

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     41-3-10. Accounting methods. -- The division of racing and athletics shall have the

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power to require that the books and financial or other statements of any person, corporation, or

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association licensed under the provisions of this chapter shall be kept in any manner which to the

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division may seem best, and the division shall also be authorized to visit, to investigate, and to

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place expert accountants and such other persons as it may deem necessary, in the offices, tracks,

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or places of business of any person, corporation, or association, for the purpose of satisfying itself

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that the division's rules and regulations are strictly complied with.

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     41-3-11. Employees of licensees. -- The division of racing and athletics may at any time

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for cause require the removal of any employee or official employed by any licensee hereunder.

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     41-3-12. Compelling production of records. -- The division of racing and athletics shall

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have power to compel the production of any and all books, memoranda, or documents showing

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the receipts and disbursements of any person, corporation, or association licensed under the

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provisions of this chapter to conduct race meetings.

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     41-3-13. Witnesses before division. -- The division of racing and athletics shall have

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power to summon witnesses before it and to administer oaths or affirmations to the witnesses

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whenever, in the judgment of the division, it may be necessary for the effectual discharge of its

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duties; and any person failing to appear before the division at the time and place specified in

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answer to the summons, or refusing to testify, shall be guilty of a misdemeanor and, upon

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conviction in a court of competent jurisdiction, shall be punished by a fine of not more than five

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hundred dollars ($500) or by a sentence to the adult correctional institutions for not more than six

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(6) months, or by a sentence to both a fine and imprisonment, in the judgment of the court. False

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swearing on the part of any witnesses shall be deemed perjury, and shall be punished as perjury.

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     41-3-14. Suspension or revocation of license. -- Any license granted under the

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provisions of this chapter shall be subject to the rules and regulations set forth by the division of

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racing and athletics, and shall be subject to suspension or revocation for any cause which the

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division shall deem sufficient, after giving the licensee a reasonable opportunity for a hearing at

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which he or she shall have the right to be represented by counsel. If any license is suspended or

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revoked, the division shall state the reasons for the suspension or revocation and cause an entry of

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the reasons to be made on the record books of the division.

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     41-3-15. Penalty for unauthorized racing. -- Any person aiding or abetting in the

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conduct of any meeting within this state at which racing of horses shall be permitted for any

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stake, purse, or reward, except in accordance with a license duly issued and unsuspended or un-

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revoked by the division of racing and athletics, shall be guilty of a misdemeanor, and upon

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conviction, shall be punished by a fine of not more than five hundred dollars ($500) for each day

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of the unauthorized meeting or by imprisonment for not exceeding six (6) months, or both a fine

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and imprisonment, in the discretion of the court.

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     41-3-16. Municipal taxation of tracks. -- No fee, tax, or other emolument shall be

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exacted by any city or town for the use of track or events conducted thereon under the provisions

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of this chapter, and the right to establish any fees, taxes, or other emoluments shall rest with the

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division of racing and athletics in accordance with law; provided, however, that nothing in this

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chapter or chapter 4 of this title contained shall be construed to prevent any city or town from

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assessing and collecting taxes upon the real and personal property used by or in connection with

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any racing track.

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     41-3-17. Ejection of undesirable persons -- Rights of licensee. -- Any licensee under

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this chapter shall have the right to refuse admission to and to eject from the enclosure of any pari-

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mutuel facility where a pari-mutuel meeting licensed under the provisions of this chapter, is being

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held, any person or persons whose presence within the enclosure is, in the sole judgment of the

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licensee, its agents, or servants, undesirable.

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     41-3-18. Penalty for refusing to leave. -- Any person or persons within the enclosure

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deemed undesirable by the licensee, its agents, or servants or who has been ordered to leave or

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who has been previously ejected, shall, upon refusal to leave, be guilty of a misdemeanor, and

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upon conviction thereof, be punished by a fine of not more than one hundred dollars ($100) or

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imprisoned not more than one year or both.

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     41-3-19. Severability. -- The invalidity of any sections or parts of any section or sections

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of this chapter or chapter 4 of this title shall not affect the validity of the remainder of the

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chapters.

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     41-3-20. Majority of directors of licensee to be residents. -- The majority of the

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membership of the board of directors of any corporation licensed to hold or conduct any meeting

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within the state where horse racing shall be permitted for any stake, purse, or reward, shall be

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residents of the state.

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     41-3-21. Chemical test. -- There shall be administered to the first three (3) finishers and

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to the last finisher of every horse race, the appropriate chemical test authorized by the division of

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racing and athletics.

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     SECTION 2. Chapter 41-3.1 of the General Laws entitled "DOG RACING IN

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BURRILLVILLE, LINCOLN, AND WEST GREENWICH" is hereby repealed in its entirety.

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     CHAPTER 41-3.1

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Dog Racing in Burrillville, Lincoln, and West Greenwich

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     41-3.1-1. Operation of dog racing facilities. -- Any person desiring to operate a facility

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for the exhibition of the sport called dog racing in the towns of Burrillville, Lincoln, and West

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Greenwich, may do so upon the compliance with the terms and provisions of this chapter and

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pursuant to the provisions of chapter 9 of this title.

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     41-3.1-2. "Sports facilities" defined. -- The words "sports facilities" as used in this

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chapter, means a building or enclosure in which dog racing is conducted.

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     41-3.1-3. Regulation of operations. -- (a) The division of racing and athletics is hereby

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authorized to license dog racing in the towns of Burrillville, Lincoln, and West Greenwich. The

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operation of a dog track shall be under the division's supervision. The division is hereby

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authorized to issue rules and regulations for the supervision of the operations, and the regulations

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are to be issued prior to commencement of licensing hearings.

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      (b) Any license granted under the provisions of this chapter shall be subject to the rules

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and regulations promulgated by the division and shall be subject to suspension or revocation for

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any cause which the division shall deem sufficient after giving the licensee a reasonable

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opportunity for a hearing at which he or she shall have the right to be represented by counsel. If

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any license is suspended or revoked, the division shall state the reasons for the suspension or

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revocation and cause an entry of the reasons to be made on the record books of the division.

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      (c) The division of commercial licensing and racing and athletics in the department of

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business regulation shall be prohibited from licensing dog racing and/or the operation of a dog

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track upon which dog racing occurs in the town of Lincoln. Any license having been issued and

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in effect as of the effective date of this section shall be null and void and any licensee shall be

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prohibited form operating thereunder; provided, however, that the following entities shall be

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deemed pari-mutuel licensees as defined in section 42-61.2-1 et seq. and licensees as defined in

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section 41-11-1 et seq.: (1) Any entity having been issued a license to operate a dog track prior to

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December 31, 2008; and (2) Any entity having been issued a license to operate a dog track prior

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to December 31, 2008 that after such date is reorganized under a confirmed plan of reorganization

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pursuant to chapter 11 of title 11 of the United States Bankruptcy Code (11 U.S.C. sections 101 --

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1532); and provided, further, that in the case of a reorganized licensee under clause (2) above, its

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application for a Facility Permit license is approved and issued by the department of business

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regulation in the event of a proposed change in control of the entity. Nothing herein shall limit the

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ability of the department of business regulation, in connection with a proposed change in control,

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to investigate and subject to the regulatory due diligence process, any holder of an ownership

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interest regardless of percentage of ownership held.

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     41-3.1-4. Powers and duties of racing and athletics division. -- In addition to the other

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powers conferred upon the division, the division of racing and athletics shall carry out the

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provisions of this chapter, and to that end, the division may:

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      (1) Personally or by agent, supervise and check the making of pari-mutuel pools and

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wages and the distribution therefrom;

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      (2) Fix and set the dates within which any dog track may be operated; provided,

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however, there shall be at least one hundred twenty-five (125) days annually of the operation; and

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      (3) Require any applicant for a permit to operate a dog track to file an application under

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oath setting forth:

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      (i) The full name of the person, firm, corporation, or association, and if a corporation, the

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name of the state under which it is incorporated, as well as the names of the officers and directors

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of the corporation, and their places of residence, or if an association, the name and residence of

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the members of the association;

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      (ii) The exact location where it is desired to operate a dog track;

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      (iii) Whether or not the dog track is owned or leased, and if leased, the name, residence,

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and address of the owners or lessees, or if the owner or lessee be a corporation, the name and

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address of the officers and directors thereof;

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      (iv) A statement of the assets and liabilities of the person, firm, corporation, or

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association making application for the permit; and

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      (v) Such other information as the division may require.

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     41-3.1-5. Wages and pari-mutuel pools permitted within enclosure of dog track. --

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The pari-mutuel system, so called, or other form of betting system authorized by this chapter,

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shall not be used or permitted at any location other than the race track at which the dog racing

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event is licensed to be conducted.

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     41-3.1-5.1. Sale or purchase of twin-double tickets. -- The sale or purchase of twin-

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double tickets or attempting to aid or abet in the sale or purchase of twin-double tickets through

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solicitation of patrons attending, other than through pari-mutuel machines, is prohibited. Any

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person violating the provisions of this section shall be denied admission to all dog tracks in the

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state and may be prosecuted. Persons convicted of violating the provisions of this chapter shall be

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punishable by a fine of not more than five hundred dollars ($500) or by imprisonment for up to

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one year or both.

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     41-3.1-6. Tax on betting and licensee's commission. -- (a) (1) The commission of a

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licensee on pari-mutuel pools and wagers shall be eighteen percent (18%) of the amount

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contributed thereto.

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      (2) After deducting the commission and the "breaks," hereafter defined, a pari-mutuel

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pool shall be redistributed to the contributors. The licensee conducting such events pursuant to

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this chapter shall pay a tax to the state of five and one half percent (5.5%) of the amounts

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contributed to the pari-mutuel pool. The licensee shall pay a tax of one half of one percent (.5%)

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of the pool to each city or town in which any portion of the racing facility, including parking

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areas, storage areas, buildings, and entrances or exits to or from property being used in

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conjunction with the operation of dog racing, is located.

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      (b) Redistribution of funds otherwise distributable to the contributors to the pari-mutuel

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pools shall be a sum equal to the next lowest multiple of ten (10).

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      (c) No distribution of a pari-mutuel pool shall be made of the odd cents of any sum

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otherwise distributable, which odd cents shall be known as the "breaks".

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      (d) The "breaks" shall be known as the difference between the amount contributed to a

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pari-mutuel pool and the total of the commission of the licensee and the sums actually

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redistributed to the contributors.

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      (e) No person or corporation shall directly or indirectly purchase pari-mutuel tickets or

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participate in the purchase of any part of a pari-mutuel pool for another for hire or for any

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gratuity, and no person shall purchase any part of a pari-mutuel pool, through another, wherein he

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or she gives or pays directly or indirectly the other person anything of value, and any person

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violating this section shall be fined the sum of five hundred dollars ($500) for each violation.

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     41-3.1-7. Distribution of funds. -- All money mentioned in this chapter derived from

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taxes on wagers and pari-mutuel pools shall be disbursed by the state treasurer pursuant to

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chapter 4 of this title. Except as is inconsistent therewith, the provisions of chapters 3 and 4 of

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this title shall apply to the sport of dog racing.

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     41-3.1-8. Tax on breaks -- Distribution. -- (a) A tax is hereby levied upon every pari-

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mutuel pool conducted at the dog track, equal to fifty percent (50%) of the "breaks" as defined in

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section 41-3.1-6(d).

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      (b) It shall be the duty of every dog track licensee to pay unto the state treasurer the tax

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hereby levied and the licensee shall be liable therefor.

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     41-3.1-9. Severability. -- If any provision of this chapter or the application thereof to any

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person or circumstances is held invalid, the invalidity shall not effect other provisions or

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applications, and to this end the provisions of this chapter are severable.

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     41-3.1-10. Chemical test. -- There shall be administered to one randomly selected

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finisher, of every dog race, the appropriate chemical test authorized by the division of racing

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athletics. The department of business regulation is authorized to establish by rule and regulation

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procedures required for the chemical testing.

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     41-3.1-11. Applications -- Disclosure requirements. -- Upon filing of an application(s)

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to the department of business regulation or the division of lotteries with respect to a parimutuel or

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video lottery license, the department of business regulation and/or the division of lotteries, as the

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case may be, shall, upon a proper request made pursuant to chapter 2 of title 38 of the Rhode

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Island general laws entitled "access to public records", disclose the name, business address and

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contact person of the person or entity filing such an application in accordance with said chapter 2

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of title 38. Any and all other personal or financial information contained in such application(s) is

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expressly exempted from provisions of said chapter 2 of title 38 and is hereby deemed not to be a

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public record as defined therein.

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     SECTION 3. Chapter 41-4 of the General Laws entitled "MUTUEL BETTING AND

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LICENSE FEES" is hereby repealed in its entirety.

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     CHAPTER 41-4

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Mutuel Betting and License Fees

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     41-4-1. Meets at which betting authorized -- Types of mutuels. -- (a) The division of

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racing and athletics may permit at racing events, licensed under the provisions of chapter 3 of this

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title betting under pari-mutuel system, so-called, or auction mutuel system, so-called, except as

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otherwise provided in this chapter.

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      (b) Events run under Class A shall be conducted under the pari-mutuel system only.

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      (c) Events run under Classes B, C, and E shall be conducted under the pari-mutuel or

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auction mutuel system as the division may determine.

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     41-4-2. Betting only at track -- Minors prohibited. -- The pari-mutuel system, so-

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called, or other form of betting system authorized by this chapter, shall not be used or permitted

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at any location other than the race track at which the horse racing event is licensed to be

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conducted. No licensee shall knowingly permit any minor to be a patron of the pari-mutuel

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system or other betting system authorized by this chapter.

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     41-4-3. Tax on pari-mutuel betting. -- (a) Each licensee conducting racing events under

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the pari-mutuel system shall pay to the state, and there is hereby imposed:

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      (1) A tax at the rate of three percent (3%) of the total money wagered on so-called

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straight (win, place, or show) wagering on the events; and

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      (2) A tax at the rate of six percent (6%) of the total money wagered on so-called exotic

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or multiple forms of wagering on the events; and

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      (3) A tax equal to one-half (1/2) of the breakage to the dime resulting from the wagering.

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      (b) Each licensee conducting harness horse racing events under the pari-mutuel system

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shall pay to the state, and there is hereby imposed:

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      (1) A tax at the rate of five and one half percent (5.5%) of so much of the total amount of

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money wagered daily on such events as does not exceed four hundred thousand dollars

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($400,000); six and three quarters percent (6.75%) of so much thereof as exceeds four hundred

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thousand dollars ($400,000), but does not exceed four hundred and fifty thousand dollars

10-28

($450,000); seven and one quarter percent (7.25%) of so much thereof as exceeds four hundred

10-29

and fifty thousand dollars ($450,000), but does not exceed five hundred thousand dollars

10-30

($500,000); and ten percent (10%) of so much of the total amount of money wagered on such

10-31

events as exceeds five hundred thousand dollars ($500,000);

10-32

      (2) A tax equal to one half (1/2) of the breakage to the dime resulting from the wagering.

10-33

      (c) Each licensee conducting dog racing events under the pari-mutuel system shall pay to

10-34

the state, and there is hereby imposed, a tax on such events at the rate of:

11-1

      (1) Five and one half percent (5.5%) of the first one hundred and fifty thousand dollars

11-2

($150,000) of money wagered daily; plus nine percent (9%) on amounts wagered from one

11-3

hundred and fifty thousand dollars ($150,000) to two hundred and fifty thousand dollars

11-4

($250,000); plus ten and one quarter percent (10.25%) on amounts wagered from two hundred

11-5

and fifty thousand dollars ($250,000) to three hundred and seventy-five thousand dollars

11-6

($375,000); plus ten and three quarters percent (10.75%) on amounts wagered over three hundred

11-7

and seventy-five thousand dollars ($375,000); and

11-8

      (2) One half (1/2) of the breakage to the dime resulting from the wagering.

11-9

     41-4-4. Licensee's commission under pari-mutuel system. -- (a) Each licensee under

11-10

the pari-mutuel system may retain as the licensee's commission:

11-11

      (1) Not to exceed sixteen percent (16%) of the total amount of money wagered on so

11-12

called straight (win, place, or show) wagering on events; and

11-13

      (2) Not to exceed eighteen percent (18%) of the total amount of money wagered on so

11-14

called exotic or multiple forms of wagering on such events, and one half (1/2) of the breakage to

11-15

the dime resulting from the wagering.

11-16

      (b) Each licensee conducting a harness horse racing meeting under the pari mutuel

11-17

system may retain as the licensee's commission:

11-18

      (1) Not to exceed eleven and one half percent (11.5%) of so much of the total amount of

11-19

money wagered daily on such events as does not exceed four hundred thousand dollars

11-20

($400,000); ten and one quarter percent (10.25%) of so much thereof as exceeds four hundred

11-21

thousand dollars ($400,000), but does not exceed four hundred and fifty thousand dollars

11-22

($450,000); nine and three quarters percent (9.75%) of so much thereof as exceeds four hundred

11-23

and fifty thousand dollars ($450,000), but does not exceed five hundred thousand dollars

11-24

($500,000); and seven percent (7%) of so much of the total amount of money wagered on such

11-25

events as exceeds five hundred thousand dollars ($500,000); and

11-26

      (2) One half (1/2) of the breakage to the dime resulting from the wagering.

11-27

      (c) Each licensee conducting dog racing events under the pari-mutuel system may retain

11-28

as the licensee's commission an amount not to exceed:

11-29

      (1) Eleven and one-half percent (11.5%) of the first one hundred and fifty thousand

11-30

dollars ($150,000) of money wagered daily; plus eight percent (8%) on amounts wagered from

11-31

one hundred and fifty thousand dollars ($150,000) to two hundred and fifty thousand dollars

11-32

($250,000); plus six and three quarters percent (6.75%) on amounts wagered from two hundred

11-33

and fifty thousand dollars ($250,000) to three hundred and seventy-five thousand dollars

11-34

($375,000); plus six and one quarter percent (6.25%) on amounts wagered over three hundred and

12-1

seventy-five thousand dollars ($375,000); and

12-2

      (2) One half (1/2) of the breakage to the dime resulting from the wagering.

12-3

     41-4-4.1. Support of racing division activities -- Tax. -- (a) Notwithstanding the

12-4

provisions of section41-4-3 or section41-3.1-6 each licensee conducting racing events under the

12-5

pari-mutuel system shall collect an additional five percent (5%) of all money wagered on the

12-6

multiple pools at racing tracks. "Multiple pools" shall be defined as all forms of wagering other

12-7

than win, place, and show. This five percent (5%) tax shall be over and above the schedule of

12-8

taxes as set forth in section41-4-3, and shall be distributed as follows:

12-9

      (1) One and one half percent (1.5%) shall be paid to the department of business

12-10

regulation and these proceeds shall be deposited as general revenue.

12-11

      (2) One half of one percent (.5%) shall be paid to owners of dog kennels who are under

12-12

contract with a licensee who shall distribute funds to the owners of dog kennels in a manner

12-13

consistent with the generally accepted distribution of dog kennel owners' purses subject to an

12-14

annual audit by the auditor general or his or her designee.

12-15

      (3) One and one half percent (1.5%) shall be paid to the licensee provided that there is at

12-16

least three hundred forty (340) scheduled performances during the calendar year.

12-17

      (4) One and one half percent (1.5%) shall be paid to the state and revert to the general

12-18

fund.

12-19

      (b) Notwithstanding the provisions of section41-3.1-6 each licensee conducting racing

12-20

events under the pari-mutuel system shall collect an additional four percent (4%) of all moneys

12-21

wagered on so called straight (win, place, or show) wagering. This four percent (4%) tax shall be

12-22

over and above the schedule of taxes as set forth in section41-3.1-6, and shall be distributed as

12-23

follows:

12-24

      (1) One percent (1%) shall be paid to the town of Lincoln; and

12-25

      (2) One percent (1%) shall be paid to owners of dog kennels who are under contract with

12-26

a licensee who shall distribute funds to the owners of dog kennels in a manner consistent with the

12-27

generally accepted distribution of dog kennel owners' purses subject to an annual audit by the

12-28

auditor general or his or her designee.

12-29

      (3) Two percent (2%) shall be paid to the state and revert to the general fund.

12-30

     41-4-5. Taxes and license fees under auction mutuel system. -- If events are conducted

12-31

under the auction mutuel system the following taxes and license fees are hereby imposed:

12-32

      (1) As to Class B events, a tax of two percent (2%) of the total amount of money

12-33

wagered and also a license fee of two hundred dollars ($200) per day;

13-34

      (2) As to Class C events, a tax of one and one half percent (1.5%) of the total amount of

13-35

money wagered and also a license fee of fifty dollars ($50.00) per day;

13-36

      (3) As to Class E events, a tax of one percent (1%) of the total amount of money

13-37

wagered and also a license fee of twenty dollars ($20.00) per day.

13-38

     41-4-6. Licensee's commission under auction mutuel system. -- Each licensee under

13-39

the auction mutuel system may retain, as the licensee's commission, not to exceed five percent

13-40

(5%) of the total amount of money wagered.

13-41

     41-4-7. Class D license fee. -- Events run under Class D shall pay a fee not exceeding ten

13-42

dollars ($10.00) per day; provided, however, that no wagering of any sort shall be allowed at the

13-43

events.

13-44

     41-4-8. Collection of taxes -- Interest on delinquencies -- Failure to pay on demand. -

13-45

- The tax administrator shall assess and collect the taxes imposed by this chapter under such rules

13-46

and regulations as he or she may prescribe. All taxes hereby imposed shall be due and payable at

13-47

the close of each day's racing and any tax not paid upon demand of the tax administrator shall

13-48

bear interest at the rate of six percent (6%) per annum from the time of the demand. Failure to pay

13-49

any tax upon demand shall be cause for revocation of a license.

13-50

     41-4-9. Accounting system -- Supervision of betting. -- The division of racing and

13-51

athletics shall devise a system of accounting and shall supervise betting at a track in a manner so

13-52

that the rights of the state are protected, and shall collect all fees and licenses under such rules

13-53

and regulations as it shall prescribe.

13-54

     41-4-9.1. Licensing of concessioners, vendors, and pari-mutuel totalizator

13-55

companies. -- (a) All persons, firms, partnerships, associations, or corporations desiring to

13-56

operate any concession allied to any dog racing track, shall apply for a license to the division of

13-57

racing and athletics, on such forms and in such a manner as prescribed by regulations of the

13-58

division. The division by regulations shall establish other occupational licensing for all

13-59

employees of the concessions, all pari-mutuel employees, and all persons employed in any other

13-60

capacity by the race track management, and for other persons engaged in racing activities at any

13-61

dog racing track. (b) All persons, firms, associations, or corporations employed by the

13-62

management of a dog racing track in providing pari-mutuel totalizator computer services for pari-

13-63

mutuel computations, shall apply for a license to the division of racing and athletics upon such

13-64

forms and in such manner prescribed by regulations of the division. All employees of the pari-

13-65

mutuel totalizator computer companies shall be licensed by the division on forms prescribed by

13-66

regulations of the division. (c) In determining whether to grant a license pursuant to this section

13-67

the division may require the applicant to submit information as to: financial standing and credit;

13-68

moral character; criminal record, if any; previous employment; corporate, partnership or

14-1

association affiliations; ownership of personal assets; and such other information as it deems

14-2

pertinent to the issuance of the license. The division may reject for good cause an application for

14-3

a license, and it may suspend or revoke for good cause any license issued by it after a hearing

14-4

held in accordance with chapter 35 of title 42 and subject to further appeal procedures provided

14-5

by section 41-2-3. (d) The division shall issue a three (3) year license commencing with license

14-6

year 2007. The division shall implement a graduated system in 2007 where one third of licenses

14-7

due to expire shall be renewed for one year, a second third of licenses due to expire shall be

14-8

renewed for two (2) years, and the final third of licenses due to expire shall be renewed for three

14-9

(3) years, with licensing fees prorated accordingly. As said licenses become due for renewal,

14-10

licenses shall be renewed for a three (3) year period of time. All licenses issued shall be in

14-11

accordance with regulations and the following schedule:

14-12

     (1) For gaming facility employees:

14-13

     (A) Key employees  $300.00

14-14

     (B) Operation employees  $150.00

14-15

     (C) Service employees  $75.00

14-16

     (2) For gaming facility non-employees: (A) Concessionaires and vendors: $750.00

14-17

     (B) Occupational licenses:

14-18

     Owners  450.00

14-19

     Trainers  150.00

14-20

     Assumed names  150.00

14-21

     Kennel people 7 5.00

14-22

     (C) Concessionaire and vendor's employees  75.00

14-23

     (D) Pari-mutuel totalizator companies  750.00

14-24

     (E) Pari-mutuel totalizator company employees  150.00

14-25

     (e) All individual applicants for licensing under this section shall be fingerprinted, and,

14-26

upon obtaining the license, shall wear upon his or her outer apparel a photo identification badge,

14-27

issued or authorized by the division of racing and athletics under rules and regulations

14-28

promulgated by the division.

14-29

     (f) The cost of the licensing pursuant to this section shall be paid by the employer of the

14-30

licensee, and shall include one hundred and fifty percent (150%) of the total salaries and benefits

14-31

for the state employees engaged in the licensing at each facility. The fund shall be deposited as

14-32

restricted receipts for the use of the state and shall be in addition to any taxes and fees otherwise

14-33

payable to the state.

15-34

     41-4-10. Unclaimed winnings. -- The amount of unclaimed money, as determined by the

15-35

division of racing and athletics, now held or which shall hereafter be held by any licensee, on

15-36

account of outstanding and un-cashed winning tickets shall, at the expiration of one year after the

15-37

close of the meeting during which the tickets were issued, be collected forthwith from the

15-38

licensee by the division and shall be paid over to the general treasurer for the use of the state and

15-39

all unclaimed money shall be held in an escrow account by the licensee until collected by the

15-40

division.

15-41

     41-4-11. Entry of premises for inspection of operations. -- The division of racing and

15-42

athletics may authorize members of the division or duly authorized deputies to enter upon the

15-43

premises at any racing event for the purpose of inspecting books and records, supervising and

15-44

examining cashiers, ticket sellers, pool sellers, and other persons handling money at the event and

15-45

such other supervision as may be necessary for the maintenance of order at the event.

15-46

     41-4-12. Monthly statement of receipts -- Payments to treasurer. -- The division of

15-47

racing and athletics shall, on or before the tenth day of each month, prepare and file with the

15-48

general treasurer a full and complete statement of its receipts from all sources, and shall turn over

15-49

to the general treasurer all moneys in its possession.

15-50

     41-4-13. Repealed.. --

15-51

     41-4-14. Dog racing -- Distribution of pari-mutuel pool to communities where tracks

15-52

located. -- After deducting the commission and the "breaks," as required by law, a pari-mutuel

15-53

pool shall be redistributed to the contributors. The licensee of a dog track shall pay a tax to the

15-54

state of five and one half percent (5.5%) of the amounts contributed to the mutuel pool. The

15-55

licensee shall pay a tax of one half of one percent (.5%) of such pool to each city or town within

15-56

whose borders the racing facility or any portion thereof, including parking areas, storage areas,

15-57

buildings, and entrances or exits to or from the property being used in conjunction with the

15-58

operation of dog racing, is located.

15-59

     41-4-14.1. Local approval. -- Section 41-4-14 shall take effect upon the approval of the

15-60

voters of any city or town voting on the question allowing the sport of dog racing, subject,

15-61

however, to an affirmative vote as provided in chapter 9 of title 41.

15-62

     SECTION 4. Chapter 41-7 of the General Laws entitled "JAI ALAI" is hereby repealed

15-63

in its entirety.

15-64

     CHAPTER 41-7

15-65

Jai Alai

15-66

     41-7-1. Operation of jai alai sports facilities. -- Any person desiring to operate a facility

15-67

for the exhibition of the Spanish sport called jai alai in the city of Newport may do so upon the

15-68

compliance with the terms and provisions of this chapter.

16-1

     41-7-2. "Sports facilities" and "frontons" defined. -- The words "sports facilities" and

16-2

"fronton" as used in this chapter mean a building or enclosure in which is provided a playing

16-3

court with three (3) walls so designed and constructed for the playing of that sports game of ball

16-4

as played in Spanish speaking countries, called jai alai or pelota.

16-5

     41-7-3. Regulation of operations -- Licensing. -- (a) The division of racing and athletics

16-6

is hereby authorized to license jai alai in the city of Newport. The operation of a fronton shall be

16-7

under the division's supervision. The division is hereby authorized to issue rules and regulations

16-8

for the supervision of the operations.

16-9

      (b) Any license granted under the provisions of this chapter shall be subject to the rules

16-10

and regulations promulgated by the division and shall be subject to suspension or revocation for

16-11

any cause which the division shall deem sufficient after giving the licensee a reasonable

16-12

opportunity for a hearing at which he or she shall have the right to be represented by counsel. If

16-13

any license is suspended or revoked, the division shall state the reasons for the suspension or

16-14

revocation and cause an entry of the reasons to be made on the record books of the division.

16-15

      (c) Commencing July 1, 2003, the division of racing and athletics shall be prohibited to

16-16

license jai alai in the city of Newport. Any license having been issued and in effect as of that date

16-17

shall be null and void and any licensee shall be prohibited from operating thereunder; provided,

16-18

however, that any entity having been issued a license to operate a jai alai fronton prior to July 1,

16-19

2003 shall be deemed a pari-mutuel licensee as defined in section 42-61.2-1 et seq., and a

16-20

licensee as defined in section 41-11-1 et seq.

16-21

     41-7-4. Power and duties of the division of racing and athletics. -- In addition to the

16-22

other powers conferred upon the division of racing and athletics, the division shall carry out the

16-23

provisions of this chapter, and to that end, the division may:

16-24

      (1) Personally or by agent, supervise and check the making of pari-mutuel pools and

16-25

wagers and the distribution therefrom;

16-26

      (2) Fix and set the dates within which any fronton may be operated; provided, however,

16-27

there shall be at least one hundred (100) days annually of the operation; and

16-28

      (3) Require any applicant for a permit to operate a fronton to file an application under

16-29

oath setting forth:

16-30

      (i) The full name of the person, firm, corporation, or association, and if a corporation, the

16-31

name of the state under which it is incorporated, as well as the names of the officers, directors,

16-32

and stockholders of the corporation, and their places of residence, or if an association, the name

16-33

and residence of the members of the association;

17-34

      (ii) The exact location where it is desired to operate a fronton exhibiting the Spanish

17-35

sport jai alai or pelota;

17-36

      (iii) Whether or not the fronton is owned or leased, and if leased, the name, residence,

17-37

and address of the owners or lessees, or if the owner or lessee be a corporation, the name and

17-38

address of the officers, directors, and stockholders thereof;

17-39

      (iv) A statement of the assets and liabilities of the person, firm, corporation, or

17-40

association making application for the division permit;

17-41

      (v) Such other information as the division may require.

17-42

     41-7-5. Wagers and pari-mutuel pools permitted within enclosure of fronton. --

17-43

Within the enclosure of any fronton licensed and conducted under this chapter but not elsewhere,

17-44

wagering on the respective scores or points of the game of jai alai or pelota and the sale of pari-

17-45

mutuel pools under such regulation as the division of racing and athletics shall prescribe, are

17-46

hereby authorized and permitted, including, but not limited to, those forms of wagering known as

17-47

daily double, perfecta, quinella, and trifecta.

17-48

     41-7-5.1. Sale or purchase of twin-double tickets. -- The sale or purchase of twin

17-49

double tickets or attempting to aid or abet in the sale or purchase of twin-double tickets through

17-50

solicitation of patrons attending, other than through pari-mutuel machines, is prohibited. Any

17-51

person violating the provisions of this section shall be denied admission to the fronton and may

17-52

be prosecuted. Persons convicted of violating the provisions of this section shall be punished by a

17-53

fine of not more than five hundred dollars ($500) or by imprisonment for up to one year or both.

17-54

     41-7-6. Tax on betting and licensee's commission. -- (a) The commission of a licensee

17-55

on pari-mutuel pools and wagers shall be twenty and one half percent (201/2%) of the amount

17-56

contributed thereto. After deducting the commission and the "breaks," hereafter defined, a pari-

17-57

mutuel pool shall be redistributed to the contributors. The licensee conducting events pursuant to

17-58

this chapter shall pay a tax to the state of three percent (3%) of annual amounts contributed to

17-59

mutuel pools up to eighteen million dollars ($18,000,000) of total handle. The Rhode Island tax

17-60

shall increase one half of one percent (.5%) for the next incremental increase of two million

17-61

dollars ($2,000,000), and one half of one percent (.5%) for each incremental increase of one

17-62

million dollars ($1,000,000), thereafter, in the total annual pool up to a maximum of five percent

17-63

(5%). The licensee shall pay a tax of one percent (1%) of the pool to the city of Newport and the

17-64

tax administrator/collector or equivalent for the city of Newport shall assess and collect the taxes

17-65

imposed by this section with respect to the city of Newport under such rules and regulations as he

17-66

or she may prescribe. All taxes hereby imposed shall be due and payable at the close of each day's

17-67

activities, and any tax not paid upon demand of the tax administrator/collector shall bear interest

17-68

at the rate of six percent (6%) per annum for the time of the demand. Failure to pay any tax upon

18-1

demand shall be cause for revocation of a license.

18-2

      (b) Redistributions of funds otherwise distributable to the contributors to the pari-mutuel

18-3

pools shall be a sum equal to the next lowest multiple of ten (10).

18-4

      (c) No distribution of a pari-mutuel pool shall be made of the odd cents of any sum

18-5

otherwise distributable, which odd cents shall be known as the "breaks."

18-6

      (d) The "breaks" shall be known as the difference between the amount contributed to a

18-7

pari-mutuel pool and the total of the commission of the licensee and the sums actually

18-8

redistributed to the contributors.

18-9

      (e) No person or corporation shall directly or indirectly purchase pari-mutuel tickets or

18-10

participate in the purchase of any part of a pari-mutuel pool for another for hire or for any gratuity

18-11

and no person shall purchase any part of a pari-mutuel pool through another, wherein he or she

18-12

gives or pays directly or indirectly the other person anything of value, and any person violating

18-13

this section shall be fined the sum of five hundred dollars ($500) for each violation.

18-14

     41-7-7. Distribution of funds -- Applicability of chapters 3 and 4 of this title. -- All

18-15

money mentioned in this chapter derived from taxes on wagers and pari-mutuel pools shall be

18-16

disbursed by the state treasurer pursuant to chapter 4 of this title. Except as is inconsistent with

18-17

this chapter the provisions of chapters 3 and 4 of this title shall apply to the sport of jai alai.

18-18

     41-7-8. Tax on breaks -- Distribution. -- (a) A tax is hereby levied upon every pari-

18-19

mutuel pool conducted at the fronton for the exhibition of the Spanish ball game known as jai alai

18-20

in Newport authorized by law so to do, equal to fifty percent (50%) of the "breaks" as defined in

18-21

the above.

18-22

      (b) It shall be the duty of every fronton licensee to pay unto the state treasurer the tax

18-23

hereby levied and the licensee shall be liable therefor.

18-24

     41-7-9. Leases of city properties. -- The city of Newport is hereby authorized to enter

18-25

into a lease of city property for a period not to exceed thirty-five (35) years with an application to

18-26

the division of racing and athletics for a license to conduct jai alai.

18-27

     41-7-10. Licensing of concessionaires, vendors, pari-mutuel totalizator companies. --

18-28

(a) All persons, firms, partnerships, associations, or corporations desiring to operate any

18-29

concession allied to any fronton, shall apply for a license to the division of racing and athletics,

18-30

on such forms and in such a manner as prescribed by regulations. The division by regulations

18-31

shall establish other occupational licensing for all employees of the concessions, all pari-mutuel

18-32

employees, and all persons employed in any other capacity by the fronton management. (b) All

18-33

persons, firms, partnerships, associations, or corporations employed by the fronton management

18-34

in providing pari-mutuel totalizator computer services for pari-mutuel computations, shall apply

19-1

for a license to the division upon such forms and in such manner as prescribed by regulations of

19-2

the division. All employees of the pari-mutuel totalizator computer companies shall be licensed

19-3

by the division on forms prescribed by regulations of the division. (c) In determining whether to

19-4

grant a license pursuant to this section the division may require the applicant to submit

19-5

information as to: financial standing and credit; moral character; criminal record, if any; previous

19-6

employment; corporate, partnership, or association affiliations; ownership of personal assets; and

19-7

such other information as it deems pertinent to the issuance of the license. The division may

19-8

reject for good cause an application for a license, and it may suspend or revoke for good cause

19-9

any license issued by it after a hearing held in accordance with chapter 35 of title 42; subject to

19-10

further appeal procedures provided by section 41-2-3. (d) Issuance of license and the payment of

19-11

annual fees shall be the same in accordance with the following schedule:

19-12

      (1) Concessionaires and vendors  $200

19-13

     (2) Occupational license

19-14

     Player license  10.00

19-15

     Ball maker 10.00

19-16

     Player/manager 10.00

19-17

     Jai alai judge 10.00

19-18

     (3) Vendor or concessionaire employee 10.00

19-19

     (4) Pari-mutuel employees  10.00

19-20

     (5) Employees of fronton management  10.00

19-21

     (6) Pari-mutuel totalizator companies  200

19-22

     (7) Pari-mutuel totalizator company employees  10.00

19-23

     (8) Security employees  10.00

19-24

     (e) All individual applicants for licensing under this section shall be fingerprinted, and,

19-25

upon obtaining a license, shall wear upon his or her outer apparel a photo identification badge,

19-26

issued or authorized by the division of racing and athletics under rules and regulations

19-27

promulgated by the division.

19-28

     41-7-11. Conclusion of Saturday performances. -- Notwithstanding the provisions of

19-29

chapter 6 of this title, any jai alai game played within the enclosure of any fronton licensed and

19-30

conducted pursuant to this chapter, commencing on a Saturday evening and not concluded before

19-31

twelve (12) o'clock midnight, shall not be permitted to be played beyond one o'clock in the

19-32

morning of the first day of the week.

19-33

     41-7-12. Repealed.. --

20-34

     SECTION 5. Chapter 41-9 of the General Laws entitled "ESTABLISHMENT AND

20-35

EXTENSION OF GAMBLING ACTIVITIES AND OTHER FACILITIES" is hereby repealed in

20-36

its entirety.

20-37

     CHAPTER 41-9

20-38

Establishment and Extension of Gambling Activities and Other Facilities

20-39

     41-9-1. "Gambling" and "gambling facilities" defined. -- (a) As used in this chapter,

20-40

the term "gambling" shall include, but not be limited to, horseracing, dog racing, and jai alai;

20-41

however, casino gaming shall be governed by the provisions of chapter 9.1 of title 41. The term

20-42

"gambling facility" as used in this chapter means a building or enclosure in which any gambling

20-43

activity including, but not limited to, the foregoing is played or conducted.

20-44

      (b) The term "gambling facility" shall also include any building, enclosure or other

20-45

improvement designed, constructed, or used in connection with an overall plan or project

20-46

involving the establishment of any gambling activity; provided, however, that this sentence shall

20-47

not apply to any gambling facility licensed prior to July 3, 1998.

20-48

     41-9-2. Financial disclosure by promoter. -- (a) By the first Monday in August prior to

20-49

the general election at which the question of the establishment or extension of any gambling

20-50

activity or facility is presented to the electorate, all persons and/or corporations promoting or

20-51

having an interest of five percent (5%) or greater in the activity or facility shall file with the ethics

20-52

commission the financial statement provided by the commission which shall conform with the

20-53

requirements of section36-14-16. If the person and/or corporation acquire an interest of five

20-54

percent (5%) or greater after the first Monday in August, that person and/or corporation shall file

20-55

the financial statement within seven (7) days after acquiring such interest.

20-56

      (b) The duty to file the financial statement shall be a continuing duty and shall be

20-57

required of any and all persons and/or corporations who have or will have an interest of five

20-58

percent (5%) or greater in an activity and/or facility.

20-59

     41-9-3. Disclosure of regulated business interests. -- Every person who is required to

20-60

file a financial statement pursuant to this chapter and who has, or within the preceding three (3)

20-61

years divests himself or herself of, five percent (5%) or greater equity interest in a business entity

20-62

which is subject to regulation by this chapter, by a state or municipal agency, shall file with the

20-63

ethics commission annually an affidavit:

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      (1) Identifying himself or herself and stating the capacity in which he or she serves or is

20-65

about to serve which occasions the filing of the affidavit;

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      (2) Identifying the business entity (or each business entity) and all the principals thereof

20-67

known to him or her;

21-68

      (3) Stating the nature of his or her interest in the business entity and that of all the

21-69

principals thereof known to him or her;

21-70

      (4) Identifying all those persons and/or corporations known to him or her providing any

21-71

financing for the business entity.

21-72

     41-9-4. Town and state election on establishment of facility. -- (a) Before a gambling

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facility shall be established in any town or city, the town council of the town or the city council of

21-74

the city shall comply with the following procedure:

21-75

      (1) Upon receipt of a resolution from the town council of the town or the city council of

21-76

the city, for a referendum to establish a gambling facility and/or activity, the general assembly

21-77

shall determine, by passage of an act, whether to allow a referendum on the establishment of the

21-78

gambling facility and/or activity.

21-79

      (2) Upon passage of an act to allow a referendum for the establishment of the gambling

21-80

facility and/or activity, the town council of the town or the city council of the city shall pose, by

21-81

adopting a resolution to be placed on the ballot at the next general election to be submitted to the

21-82

qualified electors of the town or city and to the qualified electors of the state, the following

21-83

question: "Shall a gambling facility and/or activity be established in the town (or city) of

21-84

__________________?"

21-85

      (b) The question shall be submitted by the local board of canvassers to the electors of the

21-86

town or city where the facility or activity is to be located, and the results of the election shall be

21-87

certified to the secretary of state.

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      (c) The question shall be submitted by the secretary of state to the qualified electors of

21-89

the state at the same general election and the secretary of state shall certify the election results.

21-90

      (d) The affirmative vote of the subject town or city and the electors of the state shall be

21-91

necessary for the approval of the question, and if consent be thus given, all rules and regulations

21-92

shall be promulgated in accordance with the authority conferred upon the general assembly in R.I.

21-93

Const., Art. VI, Sec. XV.

21-94

     41-9-5. Penalties. -- Any person who knowingly and willfully violates the provisions of

21-95

this chapter shall be guilty of a felony herein and punished by a fine of not more than five

21-96

thousand dollars ($5,000) and/or imprisonment for no longer than five (5) years for each

21-97

violation.

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     41-9-6. Applicability. -- The provisions of this chapter shall specifically apply to any

21-99

facility licensed pursuant to chapter 7 of this title prior to any casino gambling activity being

21-100

licensed on the premises of the facility.

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     SECTION 6. Chapter 41-9.1 of the General Laws entitled "THE RHODE ISLAND

21-102

GAMING CONTROL AND REVENUE ACT" is hereby repealed in its entirety.

22-1

     CHAPTER 41-9.1

22-2

The Rhode Island Gaming Control and Revenue Act

22-3

     41-9.1-1. Title. -- This chapter shall be known as the "Rhode Island Gaming Control and

22-4

Revenue Act."

22-5

     41-9.1-2. Legislative findings. -- The general assembly makes the following findings:

22-6

      (1) In accord with R.I. Const. Art. VI, section 22, only the people of the State of Rhode

22-7

Island can determine whether the state should pursue casino gaming as a source of revenue;

22-8

      (2) The people should be able to make this determination in a manner that is consistent

22-9

with the Rhode Island Constitution;

22-10

      (3) The people should be able to exercise their right and their elected representatives

22-11

should be able to implement the people's determination based upon clear and objective criteria;

22-12

      (4) A potential casino licensee should be provided with clear and objective criteria;

22-13

      (5) Casino states have diverse regulatory schemes, but all have strong legislative and

22-14

regulatory oversight to ensure integrity of casino operations and to maintain public confidence;

22-15

      (6) To ensure the integrity of the commercial casino gaming industry and its reputation

22-16

in Rhode Island, commercial casino gaming needs the strictest possible regulation with law

22-17

enforcement oversight;

22-18

      (7) There are socio-economic costs that expanded gaming may impose on communities

22-19

and the state;

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      (8) Problem gambling already exists in Rhode Island and may increase with the

22-21

introduction of casino gaming;

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      (9) The state of Rhode Island should follow the lead of other casino jurisdictions and

22-23

take measures designed to detect the extent of problem gambling, educate the public, and assure

22-24

availability of resources for treatment.

22-25

     41-9.1-3. Definitions. -- As used in this chapter, the following terms are defined as

22-26

follows:

22-27

      (1) "Adjusted gross receipts" means the gross receipts less winnings paid to wagerers.

22-28

      (2) "Affiliate" means a person who, directly or indirectly, through one or more

22-29

intermediaries, controls, is controlled by, or is under common control with; is in a partnership

22-30

(general or limited) or joint venture relationship with; or is a co-shareholder of a corporation, a

22-31

co-member of a limited liability company, or co-partner in a limited liability partnership with a

22-32

person who holds or applies for a casino license under this chapter.

22-33

      (3) "Affiliated company" means any form of business organization which controls, is

22-34

controlled by or is under common control with, is in a partnership (general or limited) or joint

23-1

venture relationship with, or is a co-shareholder of a corporation, a co-member of a limited

23-2

liability company, or co-partner in a limited liability partnership with a person who holds or

23-3

applies for a casino license under this chapter.

23-4

      (4) "Agent" means any person who is employed by any agency of the state other than the

23-5

state lottery division, the state police, or attorney general who is assigned to perform full-time

23-6

services on behalf of or for the benefit of the state lottery division regardless of the title or

23-7

position held by that person.

23-8

      (5) "Applicant" means any person who applies for any right, license or registration under

23-9

this chapter:

23-10

      (6) "Casino" means a building in which gaming is conducted.

23-11

      (7) "Casino licensee" or "casino operator" means any person licensed to conduct gaming

23-12

operations according to the provisions of this chapter.

23-13

      (8) "Chairperson" means the chairperson of the state lottery division.

23-14

      (9) "Commission" means the state lottery division as created by chapter 61 of title 42.

23-15

      (10) "Company" means a sole proprietorship, corporation partnership (general or

23-16

limited), limited liability partnership, limited liability company, trust, association, joint stock

23-17

company, joint venture tribal corporation or other form of business organization.

23-18

      (11) "Compensation" means any money, thing of value or financial benefit conferred on

23-19

or received by a person in return for services rendered or to be rendered, whether by that person

23-20

or another.

23-21

      (12) "Conflict of interest" means a situation in which the private interest of a member,

23-22

employee, or agent of the state lottery division may influence the judgment of the member,

23-23

employee, or agent in the performance of his or her public duty under this chapter. A conflict of

23-24

interest includes, but is not limited to, the following:

23-25

      (i) Any conduct that would lead a reasonable person knowing all of the circumstances, to

23-26

conclude that the member, employee, or agent of the state lottery division is biased against or in

23-27

favor of an applicant.

23-28

      (ii) Acceptance of any form of compensation other than from the state lottery division,

23-29

for any services rendered as part of or related to the official duties of the member, employee, or

23-30

agent for the state lottery division.

23-31

      (iii) Participation in any business being transacted with or before the state lottery

23-32

division, in which the member, employee, or agent of the state lottery division, or his or her

23-33

parent, spouse or child, has a financial interest.

24-34

      (iv) Use of the position, title, or any related authority of the member, employee, or agent

24-35

of the state lottery division in a manner designed for personal gain or benefit.

24-36

      (v) Demonstration through work or other action in the performance of the official duties

24-37

of the member, employee, or agent of the state lottery division of any preferential attitude or

24-38

treatment of any person.

24-39

      (13) "Control" means having a greater than twenty percent (20%) direct or indirect

24-40

pecuniary interest in the gaming operation with respect to which the license is sought.

24-41

      (14) "Development agreement" means a written agreement between an applicant for a

24-42

casino license and the Town of West Warwick pertaining to the casino including, but not limited

24-43

to, approval of the location of the site and the process for addressing and approving zoning, land

24-44

use, utility and other essential services, on-site and off-site improvements, local impacts and

24-45

construction and operational issues.

24-46

      (15) "Disciplinary action" is an action by the state lottery division suspending or

24-47

revoking a license, fining, excluding, reprimanding or otherwise penalizing a person for violating

24-48

this chapter or rules promulgated by the state lottery division.

24-49

      (16) "Financial interest" or "financially interested" means any interest in investments,

24-50

awarding of contracts, grants, loans, purchases, leases, sales, or similar matters under

24-51

consideration or consummated by the state lottery division. A member, employee, or agent of the

24-52

state lottery division will be considered to have a financial interest in a matter under consideration

24-53

if any of the following circumstances exist:

24-54

      (i) He or she owns a five percent (5%) or greater direct or indirect pecuniary interest in

24-55

any party to the matter under consideration or consummated by the state lottery division; or

24-56

      (ii) He or she is employed by or is an independent contractor for a party to the matter

24-57

under consideration or consummated by the state lottery division.

24-58

      (17) "Gambling game" means any game played with cards, dice, equipment or a

24-59

machine, including any mechanical, electromechanical or electronic device which shall include

24-60

computers and cashless wagering systems, for money, credit, or any representative of value;

24-61

including, but not limited to faro, monte, roulette, keno, bingo fan tan, twenty-one, blackjack,

24-62

seven and a half, klondike, craps, poker, chuck a luck, Chinese chuck a luck (dai shu), wheel of

24-63

fortune, chemin de fer, baccarat, pai gow, beat the banker, panguingui, slot machine, any banking

24-64

or percentage game, or any other game or device approved by the state lottery division, but does

24-65

not include games played with cards in private homes or residences in which no person makes

24-66

money for operating the game.

24-67

      (18) "Game" means any banking or percentage game located exclusively within a

24-68

licensed casino, which is played with cards, dice, or any electronic, electrical, or mechanical

25-1

device or machine for money, property, or any thing of value.

25-2

      (19) "Gaming" means to deal, operate, carry on, conduct, maintain or expose or offer for

25-3

play any gambling game or gaming operation.

25-4

      (20) "Gaming device" means any equipment or mechanical, electromechanical, or

25-5

electronic contrivance component or machine used directly or indirectly in connection with

25-6

gaming or any game which affects the result of a wager by determining win or loss. The term

25-7

includes a system for processing information, which can alter the normal criteria of random

25-8

selection which affects the operation of any game or which determines the outcome of a game.

25-9

The term does not include a system or device, which affects a game solely by stopping its

25-10

operation so that the outcome remains undetermined.

25-11

      (21) "Gaming operation" means the conduct of authorized gambling games in a casino

25-12

pursuant to this chapter but does not include those operations governed by chapters 61 and 61.2

25-13

of Title 42.

25-14

      (22) "Gaming supplier" means any person who supplies, sells or leases or contracts to

25-15

sell or lease gaming devices, equipment, or supplies to a holder of a license or a casino gaming

25-16

operator.

25-17

      (23) "Gaming supplier permit" means the permit of a gaming supplier.

25-18

      (24) "Gaming supplies" means all materials and supplies other than gaming devices

25-19

which the state lottery division finds or determines to be used or expended in gaming operations

25-20

or activities and that can impact the outcome of game.

25-21

      (25) "Gross receipts" means the total of all sums including valid or invalid checks,

25-22

currency, tokens, coupons, vouchers, or instruments of monetary value whether collected or

25-23

uncollected, received by a casino licensee from gaming, including all entry fees assessed for

25-24

tournaments or other contests less a deduction for uncollectible gaming receivables not to exceed

25-25

the uncollectible amounts owed as a result of wagers placed at or through a gambling game or

25-26

four percent (4%) of the total gross receipts, whichever is less. The licensee shall not receive the

25-27

deduction unless the licensee provides written proof to the state treasurer of the uncollected

25-28

gaming receivable and has complied with all rules promulgated by the state lottery division

25-29

regarding the issuance of credit and the collection of amounts due under a credit extension.

25-30

      (26) "Institutional investor" means a person that is:

25-31

      (a) A plan or trust established and maintained by the United States government, a state,

25-32

or a political subdivision of a state for the benefit of its respective employees.

25-33

      (b) An investment company that is registered under the Investment Company Act of

25-34

1940.

26-1

      (c) A Collective Investment Trust organized by a bank under Part Nine of the rules of the

26-2

Comptroller of the Currency.

26-3

      (d) A closed end investment trust registered with the United States Securities and

26-4

Exchange Board.

26-5

      (e) A mutual fund.

26-6

      (f) A life insurance company or property and casualty insurance company.

26-7

      (g) A federal or state bank.

26-8

      (h) An investment advisor registered under the Investment Advisors Act of 1940.

26-9

      (i) Such other similar regulated entities as may be approved by the state lottery division

26-10

for good cause.

26-11

      (27) "Institutional lender" means a person that is:

26-12

      (a) An insurance company regulated by any state of the United States.

26-13

      (b) Any investment company registered under the Investment Company Act of 1940.

26-14

      (c) Any plan established and maintained by a state, its political subdivision or any

26-15

agency or instrumentality of a state or its political subdivisions for the benefit of its employees.

26-16

      (d) Any trust fund, the trustee of which is a bank or trust.

26-17

      (e) Any investment adviser registered with the United States Securities and Exchange

26-18

Board.

26-19

      (f) Any real estate investment trust registered with the United States Securities and

26-20

Exchange Board.

26-21

      (g) Any dealer registered pursuant to section 15 of the Securities and Exchange Act of

26-22

1934.

26-23

      (h) Any qualified institutional buyer, as defined in Rule 144A under the Securities Act of

26-24

1933 and any entity, all of the equity owners of which are qualified institutional buyers, as

26-25

defined in rule 144A under the Securities Act of 1933, acting for its own account or the accounts

26-26

of other qualified institutional buyers.

26-27

      (i) Any bank as defined in section 3(a)(2) of the Securities Act of 1933, any savings and

26-28

loan association or other institution as referenced in section 3(a)(5)(A) of the Securities Act of

26-29

1933, or any foreign bank or savings and loan association or equivalent institution or any

26-30

investment fund that participates in a bank syndication, and any purchaser that takes an

26-31

assignment or other participation interest in the bank syndication.

26-32

      (j) Any investor or group of investors purchasing debt securities of a licensee, permittee,

26-33

or casino gaming operator, or a subsidiary of a licensee, permittee or casino gaming operator, in

26-34

any public offering registered pursuant to the Securities Act of 1933 or through any private

27-1

placement, and any investor purchasing such securities in a subsequent sale; however, such

27-2

securities are widely held and freely traded, and the investor holds no more than twenty percent

27-3

(20%) of a licensee, permittee or casino gaming operator's total debt or fifty percent (50%) of a

27-4

material debt issue unless otherwise approved by the state lottery division, so as not to give such

27-5

investor the ability to control a licensee, permittee, or casino gaming operator.

27-6

      (k) Any business development company as defined in section 2(a)(48) of the Investment

27-7

Company Act of 1940.

27-8

      (l) Any business development company as defined in section 202(a)(22) of the

27-9

Investment Advisers Act of 1940.

27-10

      (m) Any other regulated lender as the state lottery division may determine in its sole

27-11

discretion consistent with the provisions of this chapter.

27-12

      (n) Such other similar regulated entities as may be approved by the state lottery division

27-13

for good cause.

27-14

      (28) "Key gaming employee" means any natural person employed in the operation of a

27-15

licensed casino facility in a supervisory managerial capacity or empowered to make discretionary

27-16

decisions, which regulate casino facility operations, as determined by the state lottery division.

27-17

      (29) "Key gaming employee permit" means the permit of a key gaming employee.

27-18

      (30) "License" means an authorization issued to a person or entity by or in the name of

27-19

the state lottery division to engage in or assist gaming operations or activities regulated by this

27-20

chapter.

27-21

      (31) "Licensee" means any employee, agent, person or entity that is required to be issued

27-22

a license under this chapter or under the rules and regulations of the state lottery division.

27-23

      (32) "Managerial employee" means a person who by virtue of the level of their

27-24

remuneration or otherwise holds a management supervisory, or policy-making position with any

27-25

authorized licensee pursuant to this chapter, vendor, or the state lottery division.

27-26

      (33) "Manufacturer" means any person or entity that manufactures or assembles

27-27

programs or slot machines or other gaming devices for sale or use in this state.

27-28

      (34) "Master contract" means that contract entered into among the Narragansett Indian

27-29

Tribe, Harrah's Entertainment, Inc. or an Affiliate thereof ("Harrah's") and the state lottery

27-30

division, which contract would have a term commencing on the date of execution and expiring

27-31

ten (10) years from the date that Harrah's opens the casino for business.

27-32

      (35) "Member" means a member appointed to the state lottery division's board.

27-33

      (36) "Municipality" means any city or town within the state.

28-34

      (37) "Non-gaming supplier" means any person or entity that sells, leases, or otherwise

28-35

distributes directly or indirectly, goods or services other than gaming devices and supplies to the

28-36

holder of a license.

28-37

      (38) "Permit" means any permit or authorization, or application therefore, issued

28-38

pursuant to the provisions of this chapter.

28-39

      (39) "Permittee" means any person or entity that is issued or applying for a permit

28-40

pursuant to the provisions of this chapter.

28-41

      (40) "Person" means an individual, corporation, limited liability company, association,

28-42

partnership (general or limited), limited liability partnership, trust, entity, or other legal entity.

28-43

      (41) "Security" means the protection of information that would or could provide an

28-44

unfair advantage to any individual involved in the operation of the casino gaming; protection and

28-45

preservation of the integrity of casino gaming games and operations; as well as measures taken to

28-46

prevent crimes against a gaming operator or the state lottery division.

28-47

      (42) "Slot machine" means any mechanical, electrical, or other device, contrivance, or

28-48

machine which, upon insertion of a coin, token, card or similar object therein or upon payment of

28-49

any consideration whatsoever, is available to play or operate the play or operation of which,

28-50

whether by reason of the skill of the operator or application of the element of change, or both,

28-51

may deliver or entitle the person playing or operating the machine to receive cash, premiums,

28-52

merchandise, tokens, or any thing of value, whether the payoff is made automatically from the

28-53

machine or in any other manner.

28-54

      (43) "Suitable" "suitability" or "suitability requirements" means the criteria provided for

28-55

in section 41-9.1-22.

28-56

      (44) "Vendor" means a person who supplies any goods or services to a casino licensee.

28-57

      (45) "Video Lottery Terminal revenue" means net terminal income derived from video

28-58

lottery games and deposited in the general fund and to the state lottery division for administrative

28-59

purposes pursuant to section 42-61.2-7(a)(1).

28-60

      (46) "Wagerer" means a person who plays a gambling game authorized under this

28-61

chapter.

28-62

      (47) "Wagering tax revenue" means the tax revenue to the state derived from the taxes

28-63

imposed on the adjusted gross receipts of the casino licensee in accordance with section 41-9.1-

28-64

12(b).

28-65

      (48) "Winnings" means the total cash value of all property or sums including currency,

28-66

tokens, or instruments of monetary value paid to wagerers as a direct result of wagers placed at or

28-67

through a gambling game.

29-68

     41-9.1-4. State lottery division -- Members, employees, agents -- Powers and duties. -

29-69

- (a) In addition to its powers and duties set forth in chapter 61 of title 42, the state lottery

29-70

division shall have the powers and duties specified within this chapter and all other powers

29-71

necessary and proper to fully and effectively execute and administer the provisions of this chapter

29-72

for its purpose of licensing, regulating and enforcing the system of casino gaming.

29-73

      (b) By January 31st of each year, each member of the state lottery division shall prepare

29-74

and file with the office of the state lottery division, a member disclosure form in which the

29-75

member does all of the following:

29-76

      (1) Affirms that the member or the member's spouse, parent, child, or child's spouse is

29-77

not a member of the board of directors, or financially interested in, or employed by a licensee or

29-78

applicant.

29-79

      (2) Affirms that the member continues to meet any other criteria for state lottery division

29-80

membership under this chapter or the rules promulgated by the state lottery division.

29-81

      (3) Discloses any other information as may be required to ensure that the integrity of the

29-82

state lottery division and its work is maintained.

29-83

      (c) By January 31st of each year, each employee of the state lottery division shall

29-84

prepare and file with the office of the state lottery division an employee disclosure form in which

29-85

the employee does all of the following:

29-86

      (1) Affirms the absence of financial interests prohibited by this chapter.

29-87

      (2) Discloses any legal or beneficial interests in any real property that is or that may be

29-88

directly or indirectly involved with gaming or gaming operations authorized by this chapter.

29-89

      (3) Discloses whether the employee or the employee's spouse, parent, child, or child's

29-90

spouse is financially interested in or employed by licensee or applicant.

29-91

      (4) Discloses such other matters as may be required to ensure that the integrity of the

29-92

state lottery division and its work is maintained.

29-93

      (d) A member, employee, or agent of the state lottery division who becomes aware that

29-94

the member, employee or agent of the state lottery division or his or her spouse, parent, or child is

29-95

a member of the board of directors; or financially interested in, or employed by, a licensee or an

29-96

applicant shall immediately provide detailed written notice thereon to the chairperson.

29-97

      (e) A member, employee or agent of the state lottery division who has been indicted,

29-98

charged with, convicted of, pled guilty or nolo contendere to or forfeited bail concerning a

29-99

misdemeanor or felony involving gaming, dishonesty, theft, or fraud in this state or any state or of

29-100

the United States shall immediately provide detailed written notice of the conviction or charge to

29-101

the chairperson.

30-102

      (f) Any member, employee, or agent of the state lottery division who is negotiating for,

30-103

or acquires by any means any interest in any person who is a licensee or an applicant, or any

30-104

person affiliated with such a person, shall immediately provide written notice of the details of the

30-105

interest to the chairperson. The member, employee, or agent of the state lottery division shall not

30-106

act on behalf of the state lottery division with respect to that person.

30-107

      (g) A member, employee, or agent of the state lottery division may not enter into any

30-108

negotiations for employment with any person or affiliate of any person who is a licensee or an

30-109

applicant, and shall immediately provide written notice of the details of any such negotiations or

30-110

discussions to the chairperson. The member, employee, or agent of the state lottery division shall

30-111

not take any action on behalf of the state lottery division with respect to that person.

30-112

      (h) Any member, employee, or agent of the state lottery division who receives an

30-113

invitation, written or oral, to initiate a discussion concerning employment or the possibility of

30-114

employment with a person or affiliate of a person who is a licensee or an applicant shall

30-115

immediately report that he or she received the invitation to the chairperson. The member,

30-116

employee, or agent of the state lottery division shall not take action on behalf of the state lottery

30-117

division with respect to the person.

30-118

      (i) A licensee or applicant shall not knowingly initiate a negotiation for or discussion of

30-119

employment with a member, employee, or agent of the state lottery division. A licensee or

30-120

applicant who initiates a negotiation or discussion about employment shall immediately provide

30-121

written notice of the details of the negotiation or discussion to the chairperson as soon as he or

30-122

she becomes aware that the negotiation or discussion has been initiated with a member,

30-123

employee, or agent of the state lottery division.

30-124

      (j) A member, employee, or agent of the state lottery division, or former member,

30-125

employee, or agent of the state lottery division, shall not disseminate or otherwise disclose any

30-126

material or information in the possession of the state lottery division that the state lottery division

30-127

considers confidential unless specifically authorized to do so by the chairperson of the state

30-128

lottery division.

30-129

      (k) A member, employee or agent of the state lottery division shall not engage in any

30-130

conduct that constitutes a conflict of interest and shall immediately advise the chairperson, in

30-131

writing, of the details of any incident or circumstances that would present the existence of a

30-132

conflict of interest with respect to the performance of the state lottery division -related work or

30-133

duty of the member, employee, or agent of the state lottery division.

30-134

      (l) A member, employee, or agent of the state lottery division who is approached and

30-135

offered a bribe shall immediately provide written account of the details of the incident to the

30-136

chairperson and to a law enforcement officer of a law enforcement agency having jurisdiction.

31-1

      (m) A member, employee, or agent of the state lottery division shall disclose his or her

31-2

past involvement with any casino interest in the past five (5) years.

31-3

      (n) A member, employee, or agent of the state lottery division or a parent, spouse,

31-4

sibling, spouse of a sibling, child, or spouse of a child of a member, employee, or agent of the

31-5

state lottery division may not accept, other than that which they may be able to receive as a

31-6

legislator in compliance with campaign contribution, disclosure and other rules, regulations and

31-7

general laws in existence, any gift, gratuity, compensation, travel, lodging, or anything of value,

31-8

directly or indirectly, from any licensee or any applicant or affiliate or representative of an

31-9

applicant or licensee. Any member, employee, or agent of the state lottery division who is offered

31-10

or receives any gift, gratuity, compensation, travel, lodging, or anything of value, directly or

31-11

indirectly, from any licensee or any applicant or affiliate or representative of an applicant or

31-12

licensee shall immediately provide written notification of the details to the chairperson.

31-13

      (o) A licensee or applicant, or affiliate or representative of an applicant or licensee, may

31-14

not, directly or indirectly, give or offer to give any gift, gratuity, compensation, travel, lodging, or

31-15

anything of value to any member, employee, or agent of the state lottery division which the

31-16

member, employee, or agent of the state lottery division is prohibited from accepting under

31-17

subsection (j).

31-18

      (p) Except as follows, no member, employee, or agent of the state lottery division may

31-19

participate in or wager on any gambling game conducted by any licensee or applicant or any

31-20

affiliate of an applicant or licensee in Rhode Island or in any other jurisdiction. A member,

31-21

employee, or agent of the state lottery division may participate in and wager on a gambling game

31-22

conducted by a licensee under this chapter, to the extent authorized by the chairperson or board of

31-23

the state lottery division as part of the person's surveillance, security, or other official duties for

31-24

the state lottery division.

31-25

      (q) A former member, employee or agent of the state lottery division may appear before

31-26

the state lottery division as a fact witness about matters or actions handled by the member,

31-27

employee, or agent during his or her tenure as a member, employee, or agent of the state lottery

31-28

division. The member, employee, or agent of the state lottery division shall not receive

31-29

compensation for such an appearance other than standard witness fee for reimbursement for travel

31-30

expenses as established by statute or court rule.

31-31

      (r) A new or current employee or agent of the state lottery division shall obtain written

31-32

permission from the executive director before continuing outside employment held at the time the

31-33

employee begins to work for the state lottery division. Permission shall be denied, or permission

31-34

previously granted will be revoked, if the nature of the work is considered to or does create a

32-1

possible conflict of interest or otherwise interferes with the duties of the employee or agent for

32-2

the state lottery division.

32-3

      (s) An employee or agent of the state lottery division granted permission for outside

32-4

employment shall not conduct any business or perform any activities, including solicitation,

32-5

related to outside employment on premises used by the state lottery division or during the

32-6

employee's working hours for the state lottery division.

32-7

      (t) Whenever the chairperson, as an employee of the state lottery division, is required to

32-8

file disclosure forms or report, in writing, the details of any incident or circumstance pursuant to

32-9

this section, he or she shall make such filings or written reports to the state lottery division.

32-10

      (u) The chairperson shall report any action he or she has taken or contemplates taking

32-11

under this section with respect to an employee or agent or former employee or former agent to the

32-12

state lottery division at the next meeting of the state lottery division. The state lottery division

32-13

may direct the executive director to take additional or different action.

32-14

      (v) Violation of this section by a licensee or applicant, or affiliate of a licensee or

32-15

applicant, may result in denial of the application of licensure or revocation or suspension of

32-16

license or other disciplinary action by the state lottery division.

32-17

      (w) Violation of this section by a member of the state lottery division may result in

32-18

disqualification or constitute cause for removal pursuant to the provisions of this chapter or other

32-19

disciplinary action as determined by the state lottery division.

32-20

      (x) A violation of this section by an employee or agent of the state lottery division will

32-21

not result in termination of employment if the state lottery division determines that the conduct

32-22

involved does not violate the purpose of this chapter. However, employment will be terminated as

32-23

follows:

32-24

      (1) If, after being offered employment or beginning employment with the state lottery

32-25

division, the employee or agent intentionally acquires a financial interest in a licensee or an

32-26

applicant, or affiliate of a licensee or applicant, employment with the state lottery division shall

32-27

be terminated.

32-28

      (2) If a financial interest in a licensee or an applicant, or affiliate of a licensee or

32-29

applicant, is acquired by an employee or agent that has been offered employment with the state

32-30

lottery division, an employee of the state lottery division, or the employee's or agent's spouse,

32-31

parent, or child, through no intentional action of the employee or agent, the individual shall have

32-32

up to thirty (30) days to divest or terminate the financial interest. Employment may be terminated

32-33

if the interest has not been divested after thirty (30) days.

33-34

      (3) Employment shall be terminated if the employee or agent is a spouse, parent, child,

33-35

or spouse of a child of a state lottery division member.

33-36

      (y) Violation of this section does not create a civil cause of action.

33-37

      (z) As used in this section, "Outside employment" includes, but is not limited to, the

33-38

following:

33-39

      (1) Operation of a proprietorship.

33-40

      (2) Participation in a partnership or group business enterprise.

33-41

      (3) Performance as a director or corporate officer of any for-profit corporation or

33-42

banking or credit institution.

33-43

     41-9.1-5. State lottery division -- Jurisdiction -- Powers. -- (a) In addition to its

33-44

jurisdiction and powers set forth in chapter 61 of title 42, the state lottery division shall also have

33-45

such jurisdiction and powers as provided for in this title. The state lottery division shall have

33-46

jurisdiction over and shall supervise all gaming operations governed by this chapter. The state

33-47

lottery division shall have all powers necessary and proper to fully and effectively execute this

33-48

chapter; including, but not limited to, the authority to do all of the following:

33-49

      (1) Investigate applicants and determine the eligibility of applicants for licenses or

33-50

registration and to grant licenses to applicants in accordance with this chapter and the rules

33-51

promulgated under this chapter.

33-52

      (2) Have jurisdiction over and supervise casino gaming authorized by this chapter and all

33-53

persons in casinos where gaming is conducted under this chapter.

33-54

      (3) Enter, to the extent permissible under the Constitutions of the State of Rhode Island

33-55

and of the United States of America, through its investigators agents, auditors, and the state police

33-56

at any time without a warrant and without notice to the licensee, the premises, offices, casinos,

33-57

facilities or other places of business of a casino licensee or gaming supplier permittee where

33-58

evidence of the compliance or noncompliance with this chapter or the rules promulgated by the

33-59

state lottery division is likely to be found, for the following purposes:

33-60

      (i) To inspect and examine all premises wherein casino gaming or the business of

33-61

gaming or the business of a gaming supplier is conducted, or where any records of the activities

33-62

are prepared.

33-63

      (ii) To inspect, examine, audit, impound, seize or assume physical control of, or

33-64

summarily remove from the premises all books, ledgers, documents, writings, photocopies,

33-65

correspondence, records, videotapes, including electronically stored records, money receptacles,

33-66

other containers and their contents, equipment in which the records are stored, or other gaming

33-67

related equipment and supplies on or around the premises including counting rooms.

34-68

      (iii) To inspect the person, and inspect, examine and seize personal effects present in a

34-69

casino facility licensed under this chapter, of any holder of a license or registration issued

34-70

pursuant to this chapter while that person is present in a licensed casino facility.

34-71

      (iv) To investigate and deter alleged violations of this chapter or the rules promulgated

34-72

by the state lottery division.

34-73

      (4) Investigate alleged violations of this chapter or rules promulgated by the state lottery

34-74

division and to take appropriate disciplinary action against a licensee, permittee or any other

34-75

person or holder of an occupational license or permit for a violation, or institute appropriate legal

34-76

action for enforcement, or both.

34-77

      (5) Adopt standards for the licensing or permitting of all persons pursuant to this chapter,

34-78

as well as for electronic or mechanical gambling games, and to establish fees for such licenses

34-79

and permits.

34-80

      (6) Adopt appropriate standards for all casino gaming facilities and equipment.

34-81

      (7) Require that all records of casino licensees and gaming supplier permittees, including

34-82

financial or other statements, be kept on the premises of the casino licensee or gaming supplier

34-83

permittee in the manner prescribed by the state lottery division.

34-84

      (8) Require that the casino licensee submit to the state lottery division an annual balance

34-85

sheet, profit and loss statement, and any other information the state lottery division considers

34-86

necessary in order to effectively administer this chapter, all rules promulgated by the state lottery

34-87

division, and orders and final decisions made under this chapter.

34-88

      (9) Prescribe a form to be used by any licensee involved in the ownership or

34-89

management of gambling operations as an application for employment for prospective

34-90

employees.

34-91

      (10) Revoke or suspend licenses or permits, impose fines and penalties as the state

34-92

lottery division considers necessary and in compliance with this chapter and applicable laws of

34-93

the state regarding administrative procedure, and review and decide the renewal of licenses.

34-94

      (11) In addition to a disassociated person, eject or exclude or authorize the ejection or

34-95

exclusion of a person from a casino if the person violates the provisions of this chapter, rules

34-96

promulgated by the state lottery division or final orders of the state lottery division or when the

34-97

state lottery division determines that the person's conduct or reputation is such that his or her

34-98

presence within the casino gaming facilities may compromise the honesty and integrity of the

34-99

gambling operations or interfere with the orderly conduct of the gaming operations. However, the

34-100

propriety of the election or exclusion is subject to a subsequent hearing by the state lottery

34-101

division.

35-102

      (12) Suspend, revoke or restrict licenses and permits, and require the removal of a

35-103

licensee or permittee or an employee of a licensee or permittee, for a violation of this chapter or a

35-104

rule promulgated by the state lottery division or for engaging in a fraudulent practice, and impose

35-105

civil penalties pursuant to the provisions of this chapter.

35-106

      (13) Disqualify a person in accordance with the applicable provisions of this chapter.

35-107

      (14) In addition to the authority provided under subsection (a)(12), revoke or suspend a

35-108

casino license or impose any other disciplinary action for any of the following reasons:

35-109

      (i) The casino licensee has violated the provisions of chapter 2 of title 3 or rules

35-110

promulgated pursuant to this chapter.

35-111

      (ii) At any time the licensee no longer meets the eligibility requirements or suitability

35-112

determination by the state lottery division for a casino license under this chapter.

35-113

      (iii) The failure to revoke or suspend the license would undermine the public's

35-114

confidence in the Rhode Island gaming industry.

35-115

      (15) Conduct periodic compliance or special or focused audits of casinos authorized

35-116

under this chapter. Said audits may be conducted by state agency personnel or private sector audit

35-117

firms and shall be in addition to annual financial audits conducted by certified public accountant

35-118

firms.

35-119

      (16) Establish minimum levels of insurance to be maintained by licensees.

35-120

      (17) Perform a background check, at the vendor's expense, of any vendor using the same

35-121

standards that the state lottery division uses in determining whether to grant a gaming or non-

35-122

gaming supplier's permit.

35-123

      (18) Review the business practices of a casino licensee including, but not limited to, the

35-124

price and quality of goods and services offered to patrons, and take disciplinary action as the state

35-125

lottery division considers appropriate to prevent practices that undermine the public's confidence

35-126

in the Rhode Island gaming industry.

35-127

      (19) Review a holder of a license, permit or registration if that holder is under review or

35-128

is otherwise subject to discipline by a regulatory body in any other jurisdiction for a violation of a

35-129

gaming law or regulation in that jurisdiction.

35-130

      (20) Take any other action as may be reasonable or appropriate to enforce this chapter

35-131

and rules promulgated by the state lottery division.

35-132

      (b) The state lottery division may seek and shall receive the cooperation and assistance

35-133

of the department of state police and department of attorney general in conducting background

35-134

investigations of applicants and in fulfilling its responsibilities under this chapter.

35-135

      (c) The state lottery division shall establish, issue and promulgate rules and regulations

35-136

pertaining to any or all matters within the state lottery division's jurisdiction, in accordance with

36-1

the provisions of the state administrative procedures act, chapter 35 of title 42, including, but not

36-2

limited to:

36-3

      (1) The issuance of any license, registration, or permit authorized by this chapter or other

36-4

law providing for gaming operations and activities subject to regulation of the state lottery

36-5

division.

36-6

      (2) The methods and procedures for making an application for a license, registration, or

36-7

permit to be considered by the state lottery division.

36-8

      (3) The methods for providing to the state lottery division information concerning a

36-9

person's family, habits, character, associates, criminal record, business activities, and financial

36-10

affairs.

36-11

      (4) Enforcement of this chapter, gaming laws administered by the state lottery division,

36-12

and rules of the state lottery division including imposition and collection of fines, penalties, and

36-13

other sanctions which may be imposed by the state lottery division against a casino operator or

36-14

any other licensee or permittee of the state lottery division.

36-15

      (5) The operation and management of the facility, the hiring of employees thereof, the

36-16

establishment of prevention, education and other services related to pathological gambling, the

36-17

conduct of gaming, electronic funds transfer terminals, audits, annual reports, prohibited conduct,

36-18

and such other matters as the state lottery division shall determine.

36-19

      (d) The state lottery division may conduct hearings or may designate a hearing officer or

36-20

hearing panel to conduct hearings and in connection therewith may:

36-21

      (1) Issue subpoenas and compel the attendance of witnesses or the production of

36-22

documents.

36-23

      (2) Administer oath.

36-24

      (3) Require testimony under oath before the hearing officer or hearing panel in the

36-25

course of a hearing being held for any reason.

36-26

      (4) Issue written interrogatories.

36-27

      (e) Notwithstanding any other provisions of the general laws or regulations adopted

36-28

thereunder to the contrary, including, but not limited to, the provisions of chapter 2 of title 37,

36-29

and chapter 61 of title 42, the state lottery division is hereby authorized, empowered and directed

36-30

to enter into a Master Contract with the Narragansett Indian Tribe and Harrah's Entertainment,

36-31

Inc. or an Affiliate thereof ("Harrah's") which contract will have a term commencing on the date

36-32

of execution and expiring ten (10) years from the date that the casino opens for business, and to

36-33

fix in the Master Contract for the duration of such term the following: the casino license fee; the

36-34

rate of taxation on the adjusted gross receipts from gaming authorized under this chapter; the two

37-1

(2) year tax revenue insurance policy; the hotel occupancy tax which shall be in lieu of all other

37-2

parking, admission and other related patron taxes and fees; the project investment requirement of

37-3

the casino licensee; the annual funding covenant of the casino licensee in favor of the Rhode

37-4

Island Council on Problem Gambling; and the annual funding covenant of the casino licensee in

37-5

connection with a joint marketing budget in favor of the Rhode Island Hospitality and Tourism

37-6

Association and Rhode Island Convention Center and Visitors Bureau, all as set forth and

37-7

described in section 41-9.1-12. Insofar as the provisions of this act are inconsistent with the

37-8

provisions of any other general or special law, the provisions of this act shall be controlling. The

37-9

state does hereby pledge and agree under this act that the state will not limit, alter, diminish, or

37-10

adversely impact the rights or economic benefits which vest in the casino licensee under the terms

37-11

of the Master Contract authorized hereby, unless authorized by this act, and the state lottery

37-12

division is hereby authorized, empowered and directed to memorialize this pledge and agreement

37-13

on behalf of the state in the Master Contract.

37-14

      (f) After the expiration of the ten (10) year period of the Master Contract described

37-15

above, the parties thereto shall renegotiate the wagering tax rates set forth in section 41-9.1-12(b)

37-16

and the casino license renewal fee set forth in section 41-9.1-11.

37-17

     41-9.1-6. Division of state police -- Jurisdiction -- Powers. -- The division of state

37-18

police shall:

37-19

      (a) Conduct investigations and audits regarding the qualifications of applicants for

37-20

licenses, permits or registrations requiring suitability determinations as required by law or rule or

37-21

determined necessary by the state lottery division.

37-22

      (b) Submit all investigative reports to the state lottery division by and through the

37-23

executive director for analysis, review, and action pursuant to the provisions of this chapter.

37-24

      (c) Conduct audits to assist the state lottery division in determining compliance with all

37-25

gaming laws, rules and regulations on gaming activities and operations under the state lottery

37-26

division's jurisdiction.

37-27

      (d) Perform all other duties and functions necessary for the efficient, efficacious, and

37-28

thorough regulation and control of gaming activities and operations under the state lottery

37-29

division's jurisdiction.

37-30

     41-9.1-7. Appropriation -- Reimbursement. -- Operations of the state lottery division

37-31

during fiscal years shall be funded by the fees paid by licensees and suppliers pursuant to the

37-32

provisions of this chapter, including without limitation section 41-9.1-11.

37-33

     41-9.1-8. Casino gaming authorized. -- (a) Notwithstanding any other section of Rhode

37-34

Island General Laws, gaming is authorized at a single casino in the state of Rhode Island to the

38-1

extent that it is conducted in accordance with this chapter.

38-2

      (b) This chapter does not apply to any of the following:

38-3

      (1) The pari-mutuel system of wagering used or intended to be used in connection with

38-4

race meetings as authorized under chapters 3.1 and 4 of this title.

38-5

      (2) Lottery games authorized under chapters 61 and 61.2 of title 42; including, without

38-6

limitation, video lottery terminals located at Newport Grand and Lincoln Greyhound Park.

38-7

      (3) Bingo.

38-8

      (4) The pari-mutuel system of wagering used or intended to be used in connection with

38-9

jai alai as authorized under chapter 7 of this title.

38-10

      (5) The pari-mutuel system of wagering used or intended to be used in connection with

38-11

Simulcast programs from licensed betting facilities as authorized under chapter 11 of this title.

38-12

     41-9.1-9. State and local referendum election. -- (a) Pursuant to the terms of R.I.

38-13

Const., Art. VI, section 22 and chapter 5 of title 17, the general assembly hereby authorizes

38-14

submission to all of the electors of the state, at the general election to take place on November 2,

38-15

2004, the following question: "Shall there be a casino in the Town of West Warwick operated by

38-16

an Affiliate of Harrah's Entertainment in association with the Narragansett Indian Tribe?"

38-17

      (b) Prior to the general election question being submitted to the electors of the state and

38-18

prior to any casino being established in the Town of West Warwick, and in order for such town to

38-19

be eligible as the host community for such casino, the casino license applicant shall, within

38-20

seventy-five (75) days of the passage of this act, file a statement of intent with the state lottery

38-21

division that demonstrates the following:

38-22

      (1) Evidence that the West Warwick Town Council has agreed to pose, by adopting

38-23

subsequent to July 1, 2004, a resolution to be placed on the ballot at the next general election to

38-24

be submitted to the qualified electors of the Town of West Warwick and to the qualified electors

38-25

of the state, the question referenced in subsection (a) of this section;

38-26

      (2) Adequate description of real estate designated and available for the development of

38-27

the casino, which real estate shall constitute at least thirty (30) acres;

38-28

      (3) Evidence of a fully executed development agreement; and

38-29

      (4) A complete proposal as referred to in section 41-9.1-10.

38-30

      (c) In the event of certification by the state lottery division of the statement of intent, the

38-31

question referenced in subsection (a) shall then be submitted by the secretary of state to the

38-32

qualified electors of the state at a general election to take place on November 2, 2004. The

38-33

secretary of state shall certify the election results. The question shall also be submitted at the

38-34

same general election by the local board of canvassers to the qualified electors of the Town of

39-1

West Warwick, and the local board of canvassers shall certify the election results to the secretary

39-2

of state. Notwithstanding any provisions of this section, in the event that certification by the state

39-3

lottery division of the statement of intent does not occur, then any vote by the qualified electors of

39-4

the state and the Town of West Warwick on the question referenced in subsection (a) shall be

39-5

deemed non-binding.

39-6

      (d) In the event of the affirmative vote of the qualified electors of the Town of West

39-7

Warwick and the qualified electors of the state, the state lottery division shall, in accordance with

39-8

the provisions of this section and section 41-9.1-11, award the casino license to the applicant that

39-9

is a party with the Town of West Warwick to the development agreement no later than March 1,

39-10

2005.

39-11

      (e) In the event that the affirmative vote of both the Town of West Warwick and the

39-12

electors of the state does not occur, or in the event that the casino license applicant is not able to

39-13

timely file a statement of intent with the state lottery division in accordance with the provisions of

39-14

subsection (b), then this chapter shall cease to have effect, and shall become null and void.

39-15

      (f) Notwithstanding any provision of the General Laws to the contrary, with respect to

39-16

the matters contemplated in this chapter, the application and license issuance process described in

39-17

this chapter shall govern and control and shall be in lieu of any other public bidding, request for

39-18

proposal rights or requirements contained in the General Laws. Any decision or act by the general

39-19

assembly, the secretary of state or the state lottery division in: (i) phrasing or submitting the

39-20

statewide question, (ii) determining whether a statement of intent is in compliance with the filing

39-21

and other provisions of this chapter, or (iii) awarding the single casino license, shall be final and

39-22

binding and shall not be reviewable in any court on any grounds except corruption or fraud, so as

39-23

to promote and not hinder the economic development initiatives and matters contemplated in this

39-24

chapter. Jurisdiction of any suit, action or proceeding with respect to any of the foregoing shall

39-25

immediately and exclusively vest in the Superior Court, and any appeal to the Rhode Island

39-26

Supreme Court shall be heard on an expedited basis; provided, however, that no such suit, action

39-27

or proceeding shall serve to enjoin (i) the question referenced in subsection (a) from being

39-28

submitted by the Secretary of State to the qualified electors of the state at a general election to

39-29

take place on November 2, 2004, and submitted at the same general election by the local board of

39-30

canvassers to the qualified electors of the Town of West Warwick, (ii) the awarding and issuance

39-31

of the single casino license, or (iii) any recipient of a casino license from proceeding with

39-32

development or operational matters, until a final, non-appealable decision has been rendered by a

39-33

court.

40-34

     41-9.1-10. Content of proposal. -- The proposal filed with the state lottery division shall

40-35

be made under oath, and shall include without limitation all of the following:

40-36

      (a) The name and business address of the applicant, and the names and business

40-37

addresses of the board of directors and the key officers thereof. In the event that a person or entity

40-38

directly owns or controls a five percent (5%) or greater voting interest in the applicant, then the

40-39

applicant shall also disclose the names and business addresses of such person or entity and the

40-40

officers and directors thereof unless such entity is an institutional investor in which case the name

40-41

and address of the institutional investor need only be disclosed. The applicant shall also disclose

40-42

whether it has knowledge that any disclosed person or entity has been convicted of any felony

40-43

crime.

40-44

      (b) A fully executed development agreement between the applicant and the Town of

40-45

West Warwick.

40-46

      (c) A description of the proposed gaming operation and related amenities, including the

40-47

economic benefits to the host community and the state (i.e., the proposed amount of investment in

40-48

construction and development; square footage of the casino; the number and types of games; the

40-49

presence of hotels, restaurants and other non-gaming amenities; parking spaces; etc.).

40-50

      (d) A description of the physical location of the proposed gaming operation and related

40-51

amenities, and evidence that applicant has the real estate site control (i.e., real estate purchase and

40-52

sale agreements or option agreements) necessary to support such development.

40-53

      (e) A description of the anticipated or actual number of employees, and related wages

40-54

and benefits.

40-55

      (f) A description of the marketing and operating experience of the applicant, and a

40-56

description of how such experience and other assets of the applicant would enable it and the state

40-57

to secure and maintain a strategic and competitive position within New England's casino gaming

40-58

industry.

40-59

      (g) A statement regarding compliance with federal and state affirmative action

40-60

guidelines.

40-61

     41-9.1-11. Issuance of single casino license. -- (a) The casino license issued shall remain

40-62

in effect so long as the licensee complies with the provisions below. The initial issuance of the

40-63

casino license shall be valid for a period of five (5) years and shall be renewable for periods of

40-64

five (5) years, each upon the payment of a fee in the amount of five hundred thousand ($500,000)

40-65

dollars and determination by the state lottery division that the casino licensee is in compliance

40-66

with the suitability requirements of section 41-9.1-22. The fee shall be paid to the state.

40-67

      (b) Any casino license issued pursuant to this chapter shall be subject to the continuing

40-68

duty of the licensee to maintain the suitability requirements of section 41-9.1-22 and all

41-1

requirements of the state lottery division.

41-2

     41-9.1-12. Wagering and other related taxes and fees. -- Subject to the provisions of

41-3

section 41-9.1-5(e), the wagering and other related taxes and fees set forth below in this section

41-4

shall be paid by the casino licensee, shall be fixed and memorialized in the Master Contract, and

41-5

shall constitute the total remuneration owed from the casino licensee to the state during the term

41-6

of the Master Contract other than as provided for in this act as of the date of its passage [July 30,

41-7

2004]and other than general business and corporate taxes that all businesses of this state are

41-8

subject to under the laws of this state.

41-9

      (a) Casino License Fee. - Subject to the terms and conditions of the Master Contract, a

41-10

casino license fee in the amount of one hundred million dollars ($100,000,000) shall be payable

41-11

by the casino licensee to the state in three installments of thirty-three million three hundred thirty-

41-12

three thousand three hundred thirty-three dollars and thirty-three cents ($33,333,333.33) each on

41-13

the following dates: (i) the date of issuance of the casino license; (ii) the one-year anniversary

41-14

date of the issuance of the casino license; and (iii) the two-year anniversary date of the issuance

41-15

of the casino license.

41-16

      (b) Wagering Tax. - The annual rate of taxation on the adjusted gross receipts ("AGR")

41-17

received by the casino licensee from gaming authorized under this chapter shall be as follows for

41-18

the period of time commencing on the first (1st) day on which the casino opens for business (the

41-19

"Commencement Date") and expiring at the end of five (5) years from the Commencement Date

41-20

(the "Expiration Date").

41-21

      AGR up to an including $400 million 25.00%

41-22

      AGR greater than $400 million and up to and including $500 million 27.00%

41-23

      AGR greater than $500 million and up to and including $600 million 29.00%

41-24

      AGR greater than $600 million and up to and including $750 million 31.00%

41-25

      AGR greater than $750 million and up to and including $900 million 33.00%

41-26

      AGR greater than $900 million and up to and including $1 billion 35.00%

41-27

      AGR greater than $1 billion 40.00%

41-28

      The annual rate of taxation on AGR received by the casino licensee from gaming

41-29

authorized under this chapter shall be as follows subsequent to the Expiration Date and going

41-30

forward:

41-31

      AGR up to and including $400 million 25.00%

41-32

      AGR greater than $400 million and up to and including $500 million 28.00%

41-33

      AGR greater than $500 million and up to and including $600 million 30.00%

42-34

      AGR greater than $600 million and up to and including $750 million 32.00%

42-35

      AGR greater than $750 million and up to and including $900 million 35.00%

42-36

      AGR greater than $900 million 40.00%

42-37

      (c) Tax Revenue Insurance Policy. - For purposes of this subsection (c), the term

42-38

"Effective Period" shall mean that period of time commencing on the first (1st) day on which the

42-39

casino opens for business and expiring two (2) years from such date, and the term "Base Year"

42-40

shall mean the one-year period immediately preceding the date on which the casino opens for

42-41

business. Subject to the terms and conditions of the Master Contract, the casino licensee shall

42-42

covenant therein that in the event that the aggregate amount of video lottery terminal revenue and

42-43

wagering tax revenue, minus any amounts refunded to GTECH Corporation under the Master

42-44

Contract between GTECH Corporation and the Commission effective July 1, 2003 and due to

42-45

passage of this act, received by the state each year during the Effective Period is not at least equal

42-46

to that amount which is one hundred ten percent (110%) of the video lottery terminal revenue

42-47

received by the state during the Base Year, then the casino licensee shall reimburse to the state

42-48

dollar for dollar the amount of such shortfall.

42-49

      (d) Hotel Occupancy Tax. - With respect to each hotel room that is occupied by a guest,

42-50

the casino licensee shall pay to the state, in addition to other state and local hotel taxes that apply

42-51

to all hotels in the state, a one dollar ($1.00) hotel occupancy tax, which tax shall be in lieu of all

42-52

other parking, admission, complimentary and other related patron taxes and fees.

42-53

      (e) Project Investment Requirement. - The casino licensee shall demonstrate to the

42-54

satisfaction of the state lottery division prior to the opening of the casino for business that it has

42-55

invested in the aggregate at least five hundred million dollars ($500,000,000) of hard and soft

42-56

costs in connection with acquiring interests in land, making improvements to real property and

42-57

otherwise developing and constructing the casino and related facilities.

42-58

      (f) Funding Covenant of Casino Licensee in favor of the Rhode Island Hospitality and

42-59

Tourism Association and the Rhode Island Convention Center and Visitors Bureau. - Fifty

42-60

thousand dollars ($50,000) per year to each entity throughout the term of the casino license shall

42-61

be provided by casino licensee for the marketing of state convention and tourism business.

42-62

      (g) Funding Covenant of Casino Licensee in favor of the Rhode Island Council on

42-63

Problem Gambling. - One hundred fifty thousand dollars ($150,000) per year throughout the term

42-64

of the casino license shall be provided by casino licensee to the Rhode Island Council on Problem

42-65

Gambling or such other department, agency or entity that the legislature shall designate.

42-66

     41-9.1-13. State lottery division and other approvals necessary for construction of

42-67

casino. -- (a) No casino licensed under this chapter shall open for operation until the state lottery

42-68

division and all appropriate state agencies have received and approved certification from the

43-1

Town of West Warwick that all casino construction has complied with all applicable provisions

43-2

of this chapter, any regulations promulgated thereunder, and applicable state and local law, as

43-3

well as with all provisions of the development agreement.

43-4

      (b) So long as the Town of West Warwick is actively seeking authorization to amend its

43-5

comprehensive plan to include a casino development, authority is hereby granted to the casino

43-6

licensee to proceed with the construction of the casino development approved by the voters in the

43-7

state and local referendum election pursuant to section 41-9.1-9; subject to the receipt of any and

43-8

all municipal approvals.

43-9

     41-9.1-14. Promulgation of operational rules and regulations. -- Upon the licensing of

43-10

a casino under the provisions of this chapter, the state lottery division shall have authority to issue

43-11

such regulations as it deems appropriate pertaining to the operation and management of the

43-12

facility, the hiring of employees thereof, the establishment of compulsive gambling treatment

43-13

programs, the conduct of gaming, electronic funds transfer terminals, audits, annual reports,

43-14

prohibited conduct and such other matters as the state lottery division shall determine.

43-15

     41-9.1-15. Gaming and non-gaming supplier permits and gaming employee permits

43-16

required -- Terms. -- (a) The securing of a permit under the provisions of this chapter shall be a

43-17

prerequisite for performing any activity which requires a permit pursuant to this chapter.

43-18

      (b) The permits provided for in this chapter shall not be transferable.

43-19

      (c) Any permit applied for, granted, or issued under the provisions of this chapter is an

43-20

absolute revocable privilege, the awarding, denial or withdrawal of which is solely within the

43-21

discretion of the state lottery division where applicable except as provided in this chapter. Any

43-22

permit used or renewed under the provisions of this chapter is not a property right or a protected

43-23

interest under the constitutions of either the United States or the state of Rhode Island.

43-24

      (d) A licensee shall not employ any person in a capacity for which he is required to be

43-25

issued a permit, unless he possesses a valid permit.

43-26

      (e) Every person desiring to obtain a gaming supplier permit, a key gaming employee

43-27

permit or a non-gaming supplier permit shall make application to the state lottery division where

43-28

applicable on a form and in a manner prescribed by the state lottery division. The application

43-29

forms shall be provided by the state lottery division and shall contain such information pursuant

43-30

to the provisions of this chapter and the state lottery division. No application shall be accepted

43-31

unless the state lottery division determines that all relevant requirements of this chapter have been

43-32

met. Notwithstanding anything to the contrary contained in this chapter, the state lottery division

43-33

in its sole discretion may issue such permits on a temporary basis prior to all relevant

43-34

requirements of this chapter having been met, to such applicants under the circumstances and on

44-1

terms that it deems appropriate.

44-2

      (f) The term of a permit shall be for five (5) years; however, the state lottery division

44-3

may issue temporary permits.

44-4

      (g) The state lottery division shall establish by rule a procedure for issuing and renewing

44-5

permits that are issued so that a similar number of permits will come up for renewal in each

44-6

subsequent year. The rule may provide for a one-time renewal period of less than a five (5)-year

44-7

duration. Appropriate fees shall also be established.

44-8

     41-9.1-16. Gaming supplier permits. -- (a) The state lottery division shall issue a

44-9

gaming supplier permit to suitable persons who supply, sell, lease or repair, or contract to supply,

44-10

sell lease or repair gaming devices, equipment, and supplies to the holder of a license. A person

44-11

shall not supply, sell, lease, or repair, or contract to supply, sell, lease or repair, gaming devices,

44-12

equipment and supplies unless then possess a valid gaming supplier permit.

44-13

      (b) Gaming devices or supplies may not be distributed to the holder of a license unless

44-14

such devices or supplies conform to rules adopted by the state lottery division.

44-15

      (c) A gaming supplier shall furnish to the state lottery division a list of any gaming

44-16

devices and supplies offered by the gaming supplier for sale or lease in connection with games

44-17

authorized under this chapter. A gaming supplier shall keep books and records for the furnishing

44-18

of gaming devices and supplies to gaming operations separate and distinct from any other

44-19

business that the gaming supplier might operate. A gaming supplier shall file an annual return

44-20

with the state lottery division listing all sales and leases. A gaming supplier shall permanently

44-21

affix its name to all its gaming devices and supplies for gaming operations unless otherwise

44-22

authorized by the state lottery division. Any gaming supplier's gaming devices or supplies, which

44-23

are used by any person in unauthorized gaming operations, shall be forfeited to the state lottery

44-24

division. The holder of a license may own its own gaming devices and supplies. Each gaming

44-25

supplier and the holder of a license shall file an annual report with the state lottery division listing

44-26

its inventories of gaming devices, equipment, and supplies.

44-27

      (d) The initial fee for a gaming supplier permit issued under the provisions of this section

44-28

is three thousand dollars ($3,000), and the renewal fee shall be one thousand dollars ($1,000).

44-29

This fee is required to be submitted at the time of application and on the anniversary date of the

44-30

issuance of the permit thereafter. The state lottery division may assess the gaming supplier any

44-31

costs incurred in testing and approving any devices or supplies.

44-32

      (e) Except as is otherwise required under section 41-9.1-17, non-gaming suppliers shall

44-33

not be required to obtain a permit from the state lottery division; provided, however, the state

44-34

lottery division may call forward any such non-gaming supplier and require a finding of

45-1

suitability if necessary to protect the public interest.

45-2

     41-9.1-17. Non-gaming supplier permits. -- (a) The state lottery division shall issue a

45-3

non-gaming supplier permit to suitable persons who supply, sell, lease or repair, or contract to

45-4

supply, sell, lease or repair, non-gaming devices and supplies, in amounts that in the aggregate

45-5

exceed two hundred thousand dollars ($200,000) per calendar year, to the holder of a license. A

45-6

person shall not be entitled to compensation for the supply, sale, lease or repair of, or a contract to

45-7

supply, sell, lease, or repair, non-gaming devices and supplies in amounts that in the aggregate

45-8

exceed two hundred thousand dollars ($200,000) per calendar year, unless they possess a valid

45-9

non-gaming supplier permit.

45-10

      (b) The initial fee for a non-gaming supplier permit issued under the provisions of this

45-11

section is one hundred dollars ($100) and the renewal fee shall be one hundred dollars ($100).

45-12

This fee is required to be submitted at the time of application and on the anniversary date of the

45-13

issuance of the permit thereafter. The state lottery division may assess the non-gaming supplier

45-14

any costs incurred in testing and approving any devices or supplies.

45-15

     41-9.1-18. Key gaming employee and key gaming employee permit. -- (a) The state

45-16

lottery division shall issue a key gaming employee permit to suitable persons pursuant to this

45-17

chapter. No key gaming employee required by this chapter to be permitted may commence

45-18

employment or be employed as a key gaming employee unless that person is the holder of a valid

45-19

key gaming employee permit; provided, however, the state lottery division may issue temporary

45-20

permits.

45-21

      (b) The state lottery division shall issue a key gaming employee permit to suitable

45-22

persons pursuant to this chapter.

45-23

      (c) The holder of a key gaming employee permit or temporary permit issued under this

45-24

chapter shall be authorized to work in the capacity for which permitted for the holder of a license.

45-25

      (d) The fee for the initial application for a key gaming employee permit issued under the

45-26

provisions of this section is two hundred dollars ($200). This fee is required to be submitted at the

45-27

time of application. The renewal fee for the key gaming employee permit is one hundred dollars

45-28

($100).

45-29

     41-9.1-19. License, permit and registration as revocable privilege -- Rights,

45-30

limitations and prohibitions -- Revocation and suspension -- Penalties for violation. -- (a) A

45-31

license, permit or registration issued under this chapter is a revocable privilege granted by the

45-32

state dependent upon the holder's compliance with this chapter and rules promulgated hereunder

45-33

and is not a property right. Granting a license, permit or registration under this chapter does not

45-34

create or vest any right, title, franchise or other property interest. Any casino license or gaming

46-1

supplier permit is exclusive to the holder, and a holder or any other person shall apply for and

46-2

receive the state lottery division's approval before a casino license or gaming supplier permit is

46-3

transferred, sold or purchased, or before a voting trust agreement or other similar agreement is

46-4

established with respect to such. A holder of a casino license or gaming supplier permit, or any

46-5

other person, shall not lease, pledge, or borrow, or loan money against such license or permit. The

46-6

attempted transfer, sale or other conveyance of an interest in a casino license or gaming supplier

46-7

permit without prior state lottery division approval is grounds for suspension or revocation of the

46-8

license or permit, or other sanctions considered appropriate by the state lottery division. In the

46-9

event of any transfer, sale or other conveyance of a casino license or gaming supplier permit,

46-10

including those ordered by a court of competent jurisdiction in connection with a bankruptcy,

46-11

receivership or other like proceeding, the state lottery division shall have the right to approve any

46-12

proposed transferee pursuant to the requirements of this chapter. Any costs associated with a

46-13

transfer, sale or other conveyance of a casino license or gaming supplier permit shall be borne by

46-14

the transferee.

46-15

      (b) The state lottery division may upon its own motion, and shall upon the verified

46-16

complaint, in writing, of any person initiating a cause under this chapter, ascertain the facts and, if

46-17

warranted, hold a hearing for the nonrenewal, suspension or revocation of a license, permit or

46-18

registration. The state lottery division shall have the power to suspend or revoke a license, permit

46-19

or registration or place a holder on probation where the license permit or registration has been

46-20

obtained by false representation or by fraudulent act or conduct or where a holder violates any of

46-21

the provisions of this chapter.

46-22

      (c) In addition to the nonrenewal, revocation or suspension of a license, permit or

46-23

registration, the state lottery division is authorized to levy an administrative penalty not exceeding

46-24

the greater of:

46-25

      (1) Five hundred thousand dollars ($500,000); or

46-26

      (2) Two hundred percent (200%) of the amount unreported or underreported for any

46-27

violation of the reporting requirements of this chapter and/or the rules and regulations

46-28

promulgated by the state lottery division. For violations of the chapter and/or the rules

46-29

promulgated by the state lottery division other than reporting requirements, the state lottery

46-30

division may levy administrative penalties of up to five thousand dollars ($5,000) against

46-31

individuals and up to ten thousand dollars ($10,000) or an amount equal to the daily gross

46-32

receipts on the date of the violation, whichever is greater, against casino licensees for each such

46-33

violation.

47-34

      (d) (1) Except as provided in subsection (e), before refusing to renew, suspending or

47-35

revoking a license, permit or registration on its own motion, the state lottery division shall, in

47-36

writing, notify the holder of its intended action and the grounds for the action. The holder may,

47-37

within twenty (20) days, file with the state lottery division, in triplicate, a request for a hearing

47-38

stating his or her answer to the grounds specified in the notification. The state lottery division

47-39

shall consider the answer and set a date for a hearing, notifying the holder of the date at least

47-40

twenty (20) days prior to the hearing date.

47-41

      (2) Before refusing to renew, suspending or revoking an existing license, permit or

47-42

registration upon the verified written complaint of any person stating a violation of this chapter,

47-43

the state lottery division shall, in writing, notify the holder of its receipt of the complaint,

47-44

enclosing a copy of the complaint. The holder shall, within twenty (20) days, file with the state

47-45

lottery division, in quadruplicate his or her answer to the complainant or complainants.

47-46

      (3) The state lottery division shall transmit a copy of the answer to the complainant or

47-47

complainants with the scheduled date, time and place for hearing at least twenty (20) days prior to

47-48

the hearing date.

47-49

      (4) All notices and answers required or authorized to be made or filed under this section

47-50

may be served or filed personally, or by certified mail to the last known business address of the

47-51

addressee. If served personally, the time runs from the date of service; if by registered mail, from

47-52

the postmarked date of the letter enclosing the document.

47-53

      (5) Hearings are subject to chapter 46 of title 42, entitled "open meetings", and the

47-54

holder has an opportunity to be heard in person or by counsel. The state lottery division shall

47-55

render a decision on any application or complaint within sixty (60) days after the final hearing on

47-56

the matter and shall immediately notify the parties to the proceedings, in writing, of its ruling,

47-57

order or decision. In the event the matter contained in the complaint has been filed or made part

47-58

of a case pending in any court of this state, the state lottery division may then withhold its

47-59

decision until the court action has been concluded. Hearings are held in accordance with rules

47-60

promulgated by the state lottery division in conformity with state and federal law.

47-61

      (e) The state lottery division may suspend a license, permit or registration, without notice

47-62

or hearing, upon a determination that the safety or health of patrons or employees is jeopardized.

47-63

If the state lottery division suspends a license, permit or registration under this subsection without

47-64

notice or hearing, a prompt post-suspension hearing shall be held in accordance with subsection

47-65

(d) to determine if the suspension should remain in effect. The suspension may remain in effect

47-66

until the state lottery division determines that the cause for suspension has been abated. The state

47-67

lottery division may revoke the license, permit or registration upon a determination that the

47-68

holder has not made satisfactory progress toward abating the hazard.

48-1

      (f) (1) The state lottery division is authorized and empowered to issue subpoenas for the

48-2

attendance of witnesses and the production of records or documents. The process issued by the

48-3

state lottery division may extend to all parts of the state, and the process may be served by any

48-4

person designated by the state lottery division. The person serving that process shall receive any

48-5

compensation that is allowed by the state lottery division, not to exceed the fee prescribed by law

48-6

for similar services. All witnesses subpoenaed who appear in any proceedings before the state

48-7

lottery division shall receive the same fees and mileage allowances allowed by law, and all those

48-8

fees and allowances are taxed as part of the costs of the proceedings.

48-9

      (2) Where, in any proceeding before the state lottery division, any witness fails or

48-10

refuses to attend upon subpoena issued by the state lottery division, or refuses to testify, or

48-11

refuses to produce any records or documents the production of which is called for by the

48-12

subpoena, the attendance of the witness and the giving of his or her testimony and the production

48-13

of the documents and records shall be enforced by any court of competent jurisdiction of this state

48-14

in the same manner as are enforced the attendance, testimony of witnesses and production of

48-15

records in civil cases in the courts of this state.

48-16

      (g) The procedures of the administrative procedures act, chapter 35 of title 42, and all

48-17

amendments and modifications to that act and the rules adopted pursuant to the act, apply to and

48-18

govern all proceedings for the judicial review of final administrative decisions of the state lottery

48-19

division. Any party aggrieved by a final administrative decision of the state lottery division may

48-20

seek review of that decision in the superior court of the county of his or her residence if a natural

48-21

person, or the county in which the aggrieved party maintains a place of business, if other than a

48-22

natural person.

48-23

      (h) Any person aggrieved has the right of appeal from any adverse ruling, order or

48-24

decision of the state lottery division to a court of competent jurisdiction in the county where the

48-25

hearing was held within thirty (30) days from the service of notice of the action of the state lottery

48-26

division upon the parties to the hearing.

48-27

      (i) Notice of appeal is filed in the office of the clerk of the court, which shall issue a writ

48-28

of certiorari directed to the state lottery division, commanding it, within fifteen (15) days after

48-29

service of the writ, to certify to the court its entire record in the matter in which the appeal has

48-30

been taken. The appeal shall be heard in due course, by the court, which shall review the record

48-31

and, after a hearing on the matter, make its determination of the cause.

48-32

      (j) A final administrative decision of the state lottery division shall not become effective

48-33

until time for appeal has expired. If an appeal is taken, it shall not act as a stay of decision unless

48-34

the court so directs.

49-1

      (k) In the event of a suspension or revocation of a license, permit or registration, the state

49-2

lottery division may take such action as is necessary to continue the daily operation of the casino

49-3

until the reinstatement of the license, permit or registration in the case of a suspension, or the

49-4

approval of a replacement license, permit or registration in accordance with the approval process

49-5

contained in this chapter in the case of a revocation.

49-6

     41-9.1-20. Records of state lottery division deemed open -- Exceptions. -- (a) Except

49-7

as otherwise provided in this chapter or other chapters, records of the state lottery division shall

49-8

be public records. A record of the state lottery division shall be confidential when the record:

49-9

      (1) Relates to the background of an applicant and was provided by the applicant or a

49-10

confidential source or informant.

49-11

      (2) Relates to security measures of the state lottery division, an applicant, or a licensee or

49-12

permittee.

49-13

      (3) Consists of an applicant's personal history form or questionnaires, disclosure forms,

49-14

or financial statements and records.

49-15

      (4) Relates to surveillance and security techniques, procedures, or practices of the state

49-16

lottery division, an applicant, or a licensee or permittee.

49-17

      (5) Relates to trade secrets or design of experimental gaming devices and equipment.

49-18

      (6) Consists of proprietary architectural, construction, schematic or engineering plans,

49-19

blueprints, specifications, computer programs or software, or economic or financial calculations

49-20

which relate to authorized gaming activities on the premises where authorized gaming activities

49-21

are conducted or to be conducted.

49-22

      (7) Relates to an ongoing investigation of the state lottery division into a possible

49-23

violation by a licensee or permittee, until the state lottery division initiates proposed enforcement

49-24

action against the licensee or the permittee and makes the record public in the course thereof.

49-25

      (8) Results from or is part of a state lottery division background investigation of an

49-26

applicant.

49-27

      (9) Relates to specific financial data concerning casino operations and results; provided,

49-28

however, the monthly gross gaming revenue amount shall be publicly disclosed.

49-29

      (b) Confidential information or data which is obtained by the state lottery division may

49-30

not be revealed in whole or in part except in the course of the proper administration of this

49-31

chapter. However, the state lottery division or its authorized agents may reveal such information

49-32

or data to an authorized agent of any agency of the United States government or to any agent of

49-33

this state or of any political subdivision of this state, pursuant to rules and regulations adopted by

49-34

the state lottery division, or pursuant to a lawful order of a court of competent jurisdiction. Notice

50-1

of the content of any information or data furnished or released pursuant to this section may be

50-2

given to the applicant or licensee to whom it pertains in a manner prescribed by rules adopted by

50-3

the state lottery division.

50-4

      (c) No state lottery division member, employee, agent, or authorized representative shall

50-5

disclose, divulge, disseminate, or otherwise transmit or communicate any confidential state

50-6

lottery division record, reports, or any confidential information therein, except as permitted in this

50-7

section and then only with the approval of the state lottery division. Disclosure of any

50-8

confidential state lottery division record, report, or any information therein other than as provided

50-9

in this section shall be grounds for removal of a state lottery division member or termination of

50-10

any employee.

50-11

      (d) All files, records, reports, and other information pertaining to gaming matters in the

50-12

possession of the division of state police or any other state or municipal law enforcement

50-13

authority, and otherwise not specifically provided for in this chapter shall be made available to

50-14

the state lottery division as necessary for the regulation of gaming activities and operations as

50-15

provided by law.

50-16

      (e) The state lottery division shall maintain a file of all applications for licenses, permits

50-17

or registrations, and requests for all other state lottery division actions or approvals received by

50-18

the state lottery division, together with a record of all action taken with respect to those

50-19

applications and requests. The file and record shall be open to public inspection.

50-20

      (f) The state lottery division shall maintain a file of all bids or proposals for any contract

50-21

let or entered into by the state lottery division together with a record of all action taken with

50-22

respect to those bids. The file and record shall be open to public inspection.

50-23

     41-9.1-21. Restricted use agreements -- confidentiality of records. -- (a) The state

50-24

lottery division may enter into intelligence sharing, reciprocal use, or restricted use agreements

50-25

with a department or agency of the federal government, law enforcement agencies, and gaming

50-26

enforcement and regulatory agencies of other jurisdictions which provide for and regulate the use

50-27

of information provided and received pursuant to the agreement.

50-28

      (b) Records, documents and information in the possession of the state lottery division

50-29

received pursuant to an intelligence sharing, reciprocal use or restricted use agreement entered

50-30

into by the state lottery division with a federal department or agency, any law enforcement

50-31

agency, or the gaming enforcement or regulatory agency of any jurisdiction shall be considered

50-32

investigative records of a law enforcement agency and shall not be disseminated under any

50-33

condition without the permission of the person or agency providing the record or information or

50-34

by order of a court with competent jurisdiction over the matter.

51-1

     41-9.1-22. Standards for license, permit and registration issuance suitability

51-2

qualifications. -- (a) No applicant shall be eligible to obtain a license to conduct gaming

51-3

operations, a permit or registration unless the state lottery division: (i) has, with respect to a

51-4

casino license applicant, received a filing made under oath that includes, without limitation, the

51-5

information set forth below, and (ii) is satisfied that the applicant is suitable. In determining

51-6

whether a casino license applicant is suitable, the state lottery division may consider, in addition

51-7

to the information set forth below, whether the applicant has been found suitable and/or has been

51-8

issued a license to conduct casino gaming in other jurisdictions.

51-9

      (1) The identity of every person in accordance with the provisions of this subdivision,

51-10

who has or controls any ownership interest in the applicant with respect to which the license is

51-11

sought. If the disclosed entity is a trust, the application shall disclose the names, addresses, birth

51-12

dates and social security number of all such beneficiaries, if a corporation, the names, addresses,

51-13

birth dates, and social security numbers of all such officers and directors; if a partnership, the

51-14

names, addresses, birth dates, and social security numbers of all such partners, both general and

51-15

limited, if a limited liability company, the names, addresses, birth dates, and social security

51-16

numbers of all such members. The applicant shall also separately disclose in like manner any

51-17

person or entity directly or indirectly owning or controlling a five percent (5%) or greater voting

51-18

interest in such owners of the applicant. If any such person is an entity with one or more classes

51-19

of securities registered pursuant to the Securities Exchange Act of 1934, as amended, the

51-20

applicant shall disclose names, addresses, birth dates and social security numbers of all officers

51-21

and directors and provide public filings with the U.S. Securities and Exchange Commission for

51-22

the past year. If any such persons or entities are institutional investors or institutional lenders

51-23

owning or controlling a five percent (5%) or greater voting interest in such owners of the

51-24

applicant, the applicant shall not be required to provide detailed information on such institutional

51-25

investors or institutional lenders other than their respective identities unless otherwise requested

51-26

by the commission. The applicant will forward any request for additional information to the

51-27

institutional investors or institutional lenders.

51-28

      (2) An identification of any business, including, if applicable, the state of incorporation

51-29

or registration, in which an applicant or any other person or entity identified in subdivision (a)(1)

51-30

has an equity interest of five percent (5%) or more. If an applicant is a corporation, partnership, or

51-31

other business entity, the applicant shall identify any other corporation, partnership, or other

51-32

business entity in which it has an equity interest of five percent (5%) or more; including, if

51-33

applicable, the state of incorporation or registration. An applicant can comply with this

51-34

subdivision by filing a copy of the applicant's registration with the securities exchange board if

52-1

the registration contains the information required by this subsection.

52-2

      (3) Whether an applicant or any other person or entity identified in subdivision (a)(1) is

52-3

known by applicant to have been indicted, charged, arrested, convicted, pleaded guilty or nolo

52-4

contendere, forfeited bail concerning, or has had expunged any criminal offense under the laws of

52-5

any jurisdiction, either felony or misdemeanor, not including traffic violations, regardless of

52-6

whether the offense has been expunged, pardoned or reversed on appeal or otherwise, including

52-7

the date, the name and location of the court, arresting agency and prosecuting agency, the case

52-8

caption, the docket number, the offense, the disposition, and the location and length of

52-9

incarceration.

52-10

      (4) Whether an applicant or any other person or entity identified in subdivision (a)(1) is

52-11

known by applicant to have ever applied for or has been granted any gaming license or certificate

52-12

issued by a licensing authority within this state or any other jurisdiction that has been denied,

52-13

restricted, suspended, revoked, or not renewed, and a statement describing the facts and

52-14

circumstances concerning the application, denial restriction, suspension, revocation or

52-15

nonrenewal, including the licensing authority, the date each action was taken, and the reason for

52-16

each action.

52-17

      (5) Such information, documentation and assurances as may be required to establish by

52-18

clear and convincing evidence:

52-19

      a. the financial stability, integrity and responsibility of the applicant, including, but not

52-20

limited to, bank references, financial statements, tax returns and other reports filed with

52-21

governmental agencies;

52-22

      b. the adequacy of financial resources both as to the completion of the casino proposal

52-23

and the operation of the casino; and

52-24

      c. that the applicant has sufficient business ability and casino experience as to establish

52-25

the likelihood of creation and maintenance of a successful, efficient and competitive casino

52-26

operation.

52-27

      (6) Such information, documentation and assurances to establish to the satisfaction of the

52-28

state lottery division the applicant's good character, honesty and integrity, and the applicant's

52-29

suitability qualification pursuant to this section.

52-30

      (7) A statement listing the names and titles of all Rhode Island public officials or officers

52-31

of any unit of government, and the spouses, parents, and children of those public officials or

52-32

officers who, directly or indirectly, own any financial interest in, have any beneficial interest in,

52-33

are the creditors of or hold any debt instrument issued by, or hold or have any interest in any

52-34

contractual or service relationship with an applicant. As used in this subsection, the terms "public

53-1

official" and "officer" do not include a person who would have to be listed solely because of his

53-2

or her state or federal military service. This subsection shall not apply to public officials or

53-3

officers or the spouses, parents and children thereof, whose sole financial interest amounts to less

53-4

than a one percent (1%) ownership interest in a publicly traded company.

53-5

      (8) The name and business telephone number of any attorney, counsel, lobbyist, agent, or

53-6

any other person representing an applicant in matters before the state lottery division.

53-7

      (9) Whether an applicant or any other person or entity identified in subdivision (a)(1) has

53-8

ever filed or had filed against it a civil or administrative action or proceeding in bankruptcy or has

53-9

ever been involved in any formal process to adjust, defer, suspend, or otherwise work out the

53-10

payment of any debt including the date of filing, the name and location of the court, the case

53-11

caption, the docket number, and the disposition.

53-12

      (10) Whether an applicant or any other person or entity identified in subdivision (a)(1)

53-13

has filed, or been served with, a complaint or other notice filed with any public body, regarding

53-14

the delinquency in the payment of, or a dispute over the filings concerning the payment of any tax

53-15

required under federal, state, or local law, including the amount, type of tax, the taxing agency,

53-16

and the periods involved.

53-17

      (11) Financial and other information in the manner and form prescribed by the

53-18

commission.

53-19

      (b) For purposes of this chapter, "suitable" means that the proposed casino licensee, or

53-20

other applicant or permittee has demonstrated to the state lottery division by clear and convincing

53-21

evidence that he or she:

53-22

      (1) Is a person of good character, honesty, and integrity or an entity whose reputation

53-23

indicates it possesses honesty, integrity and sufficient knowledge of the gaming industry.

53-24

      (2) Is a person whose prior activities, criminal record, if any, reputation, habits, and

53-25

associations do not pose a threat to the public interest of this state or to the effective regulation

53-26

and control of gaming, or create or enhance the dangers of unsuitable, unfair, or illegal practices,

53-27

methods, and activities in the conduct of gaming or the carrying on of the business and financial

53-28

arrangements incidental thereto.

53-29

      (3) Is capable of and likely to conduct the activities for which the applicant or casino

53-30

gaming operator is licensed or approved in accordance with the provisions of this chapter and any

53-31

rules of the state lottery division.

53-32

      (c) For purposes of a casino licensee, the applicant shall also demonstrate by clear and

53-33

convincing evidence that:

54-34

      (1) He or she or the entity has adequate business competence and experience in the

54-35

operation of gaming operations.

54-36

      (2) The proposed financing of the conducting of gaming operations is:

54-37

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

54-38

      (ii) From a suitable source, subject to provisions of section 41-9.1-23 hereof.

54-39

      (d) Information provided by the applicant shall be used as a basis for a thorough

54-40

background investigation which the state lottery division shall conduct. A false or incomplete

54-41

filing may be cause for denial of a license. The state lottery division in its sole discretion may

54-42

provide the applicant a reasonable opportunity to correct any deficiency in the filing.

54-43

      (e) Applicants shall consent, in writing, to being subject to the inspections, searches, and

54-44

seizures provided for in this chapter and to disclosure to the state lottery division and its agents of

54-45

otherwise confidential records including tax records held by any federal, state, or local agency, or

54-46

credit bureau or financial institution while applying for or holding a license under this chapter.

54-47

      (f) The state lottery division may contract for, at the expense of the applicants, any

54-48

technical or investigative services that it shall require to conduct such research and/or

54-49

investigation as it deems appropriate with respect to its evaluation of the filing. A nonrefundable

54-50

application fee of fifty thousand dollars ($50,000) shall be paid at the time of filing to defray the

54-51

costs associated with such research and investigation conducted by the state lottery division. If

54-52

the costs of the research and investigation exceed fifty thousand dollars ($50,000), the applicant

54-53

shall pay the additional amount.

54-54

      (g) All licensees, all permittees, and any other persons who have been found suitable or

54-55

approved by the state lottery division shall maintain suitability throughout the term of the license,

54-56

permit or approval. In the event of a current prosecution of an offense, the state lottery division

54-57

shall have the discretion to defer a determination on a person's continuing suitability pending the

54-58

outcome of the proceedings, provided that if a decision is deferred pending such outcome, the

54-59

state lottery division, where applicable, may take such action as is necessary to protect the public

54-60

trust, including the suspension of any license, permit or registration.

54-61

      (h) All holders of licenses, permits and registrations, and any other persons required to

54-62

be found suitable, shall have a continuing duty to inform the state lottery division of any possible

54-63

violation of this chapter and of any rules adopted by the state lottery division. No person who so

54-64

informs the state lottery division or any law enforcement authority within the state of a violation

54-65

or possible violation shall be discriminated against by the applicant, licensee, permittee, registrant

54-66

or casino gaming operator because of supplying such information, and shall be afforded the

54-67

protection of section 28-50-1 et al. "The Rhode Island Whistleblower's Protection Act", so called.

55-68

      (i) The state lottery division shall have the power to call forward for a finding of

55-69

suitability any person that is affiliated with a licensee, permittee or registrant if necessary to

55-70

protect the public interest. Subject to section 41-9.1-24, any person who has or controls directly

55-71

or indirectly five percent (5%) or greater voting interest shall meet all suitability requirements and

55-72

qualifications pursuant to the provisions of this chapter, unless otherwise determined by the state

55-73

lottery division.

55-74

      (j) If the state lottery division finds that an individual owner or holder of a security of a

55-75

licensee, permittee, or registrant, or of a holding or intermediary company of a licensee or

55-76

permittee, or registrant, or any person or persons with an economic interest in a licensee,

55-77

permittee, or registrant, or a director, partner, officer, or managerial employee is not suitable, and

55-78

if as a result, the licensee, permittee, or registrant is no longer qualified to continue as a licensee,

55-79

permittee, or registrant, the state lottery division shall propose action necessary to protect the

55-80

public interest, including the suspension of the license, permit or registration. The state lottery

55-81

division may also issue under penalty of revocation or suspension of a license, permit, or

55-82

registration, impose a condition of disqualification naming the person or persons and declaring

55-83

that such person or persons may not:

55-84

      (1) Receive dividends or interest on securities of a person, or a holding or intermediary

55-85

company of a person, holding a license, permit, or other approval.

55-86

      (2) Exercise directly, or through a trustee or nominee, a right conferred by securities of a

55-87

person, or a holding or intermediary company of a person, holding a license, permit, or other

55-88

approval of the state lottery division issued pursuant to the provisions of this chapter.

55-89

      (3) Receive remuneration or other economic benefit from any person, or a holding or

55-90

intermediary company of a person, holding a license, permit, or other approval issued pursuant to

55-91

this chapter.

55-92

      (4) Exercise significant influence over activities of a person, or a holding or intermediary

55-93

company of a person, holding a license, permit, or other approval issued pursuant to the

55-94

provisions of this chapter.

55-95

      (5) Continue owning or holding a security of a person, or a holding or intermediary

55-96

company of a person, holding a license, permit, or other approval of the state lottery division

55-97

issued pursuant to the provisions of this chapter or remain as a manager, officer, director, or

55-98

partner of a licensee or permittee.

55-99

     41-9.1-23. Casino license -- Disqualification criteria. -- The state lottery division shall

55-100

not award a casino or other license, permit or registration to any person who is disqualified on the

55-101

basis of any of the following criteria:

56-102

      (1) Failure of the applicant to prove by clear and convincing evidence that he or she is

56-103

suitable in accordance with the provisions of this chapter.

56-104

      (2) Failure of the applicant to provide information and documentation to reveal any fact

56-105

material to a suitability determination, or the supplying of information which is untrue or

56-106

misleading as to a material fact pertaining to the qualification criteria.

56-107

      (3) The conviction of, or a plea of guilty or nolo contendere by, the applicant, or of any

56-108

person required to be qualified under this chapter for an offense punishable by imprisonment of

56-109

more than one year or a fine up to one thousand dollars ($1,000); provided, however, a conviction

56-110

or plea of guilty or nolo contendere by the applicant shall not constitute an automatic

56-111

disqualification as otherwise required if:

56-112

      (i) Ten (10) or more years has elapsed between the date of application and the successful

56-113

completion of service of any sentence, deferred adjudication, or period of probation or parole; or

56-114

      (ii) Five (5) or more years has elapsed between the date of application and the successful

56-115

completion of any sentence, deferred adjudication, or period of probation or parole and the

56-116

conviction for an offense which was a misdemeanor offense.

56-117

      (4) Notwithstanding any provision of law to the contrary, the state lottery division may

56-118

consider the seriousness and circumstances of any offense, any arrest, or any conviction in

56-119

determining suitability.

56-120

     41-9.1-24. Institutional investors or institutional lenders. -- (a) Requirements of

56-121

disclosure or of being suitable or qualified with respect to an institutional investor or institutional

56-122

lender, pursuant to the provisions of this chapter and the rules adopted pursuant thereto, shall be

56-123

deemed to have been complied with upon submission of documentation by the casino licensee

56-124

applicant, casino licensee, permittee or the institution, as appropriate, sufficient to establish

56-125

qualifications as an institutional investor or institutional lender as defined herein and it is

56-126

determined that:

56-127

      (1) It owns, holds, or controls publicly traded securities issued by a casino licensee

56-128

applicant, casino licensee, permittee or holding, intermediate or parent company of a casino

56-129

licensee applicant, casino licensee or permittee in the ordinary course of business for investment

56-130

purposes.

56-131

      (2) It does not intend to exercise influence over the affairs of the issuer of such

56-132

securities, nor over any licensed or permitted subsidiary of the issuer of such securities, in the

56-133

future, and that it agrees to notify the state lottery division, in writing, within thirty (30) days if

56-134

such intent should change.

56-135

      (b) The exercise of voting privileges with regard to publicly traded securities shall not be

56-136

deemed to constitute the exercise of influence over the affairs of the issuer of such securities.

57-1

      (c) The state lottery division may rescind the presumption of suitability for an

57-2

institutional lender or institutional investor at any time if the institutional lender or investor

57-3

exercises or intends to exercise influence or control over the affairs of the casino licensee

57-4

applicant, the casino licensee, permittee, or a holding, intermediate, or parent company of the

57-5

casino licensee applicant, the casino licensee or permittee.

57-6

      (d) This section shall not be construed to preclude the state lottery division from

57-7

investigating the suitability or qualifications of an institutional investor or institutional lender

57-8

should the state lottery division become aware of facts or information which may result in such

57-9

institutional investor or institutional lender being found unsuitable or disqualified.

57-10

     41-9.1-25. Uniform compulsive and problem gambling program. -- (a) The gaming

57-11

industry through the American Gaming Association in the Responsible Gaming Resource Guide

57-12

has stated that the industry recognizes that gaming entertainment companies must stand up and

57-13

take responsible actions to address social problems and costs that are created when some

57-14

individuals have problems handling the product or services they provide. The industry has also

57-15

stated that they know that the vast majority of the men and women who are their customers can

57-16

enjoy their games responsibly, but that they also know the customers expect them to act

57-17

responsibly toward those who cannot. It is imperative for the health, safety, and welfare of the

57-18

citizens of the state of Rhode Island that all casino licensees develop and implement

57-19

comprehensive compulsive and problem gambling programs to be approved by the state lottery

57-20

division.

57-21

      (b) Any casino licensee shall adopt a comprehensive program that provides policies and

57-22

procedures that, at a minimum, cover the following areas of concern and are designed to:

57-23

      (1) Provide procedures designed to prevent employees from willfully permitting a person

57-24

identified on a self-exclusion list from engaging in gaming activities at the licensed establishment

57-25

or facility.

57-26

      (2) Provide procedures to offer employee assistance programs or equivalent coverage.

57-27

The procedures shall be designed to provide confidential assessment and treatment referral for

57-28

gaming employees and, if covered, their dependents who may have a gambling problem.

57-29

      (3) Provide procedures for the development of programs to address issues of underage

57-30

gambling and unattended minors at gaming facilities.

57-31

      (4) Provide procedures for the training of all employees that interact with gaming patrons

57-32

in gaming areas.

57-33

      (5) Provide procedures designed to prevent serving alcohol to individuals who appear to

57-34

be intoxicated consistent with the provisions of Rhode Island law.

58-1

      (6) Provide procedures for removing self-excluded person from the licensed

58-2

establishment or facility, including, if necessary, procedures that include obtaining the assistance

58-3

of local law enforcement.

58-4

      (7) Provide procedures preventing any person identified on the self-exclusion list from

58-5

receiving any advertisement promotion, or other targeted mailing after ninety (90) days of

58-6

receiving notice from the state lottery division that the person has been placed on the self-

58-7

exclusion list.

58-8

      (8) Provide procedures for the distribution or posting within the gaming establishment of

58-9

information that promotes public awareness about problem gambling and provides information on

58-10

available services and resources to those who have a gambling problem.

58-11

      (9) Provide procedures for the distribution of responsible gaming materials to

58-12

employees.

58-13

      (10) Provide procedures for the posting of local curfews or laws and prohibitions, if any,

58-14

regarding underage gambling and unattended minors.

58-15

      (11) Provide procedures to prevent any person placed on the self-exclusion list from

58-16

having access to credit or from receiving complimentary services, check-cashing services, and

58-17

other club benefits.

58-18

      (c) (1) The state lottery division shall provide by rule for the establishment of a list of

58-19

self-excluded persons from gaming activities at all gaming establishments. Any person may

58-20

request placement on the list of self-excluded persons by acknowledging in a manner to be

58-21

established by the state lottery division that the person wishes to be excluded and by agreeing

58-22

that, during any period of voluntary exclusion, the person may not collect any winnings or

58-23

recover any losses resulting from any gaming activity at such gaming establishments.

58-24

      (2) The rules of the state lottery division shall establish procedures for placements on,

58-25

and removals from, the list of self-excluded persons, provided that notwithstanding any law to the

58-26

contrary, prior to the removal from such list, the state lottery division or a hearing officer shall

58-27

conduct a hearing not open to the general public at which it shall be established by the person

58-28

seeking removal that there is no longer a basis to be maintained on the self-exclusion list.

58-29

      (3) The rules shall establish procedures for the transmittal to the gaming establishment of

58-30

identifying information concerning self-excluded persons, and shall require all the gaming

58-31

establishment to establish procedures designed, at a minimum, to remove self-excluded persons

58-32

from targeted mailings or other forms of advertising or promotions and deny self-excluded

58-33

persons access to credit, complimentaries, check-cashing privileges and other club benefits.

59-34

      (4) The rules shall provide that the state lottery division's list of self-excluded persons

59-35

shall not be open to public inspection. The state lottery division, any licensee, permittee and any

59-36

employee or agent thereof shall not be liable to any self-excluded person or to any other party in

59-37

any judicial proceeding for any monetary damages or to other remedy which may arise as a result

59-38

of disclosure or publication in any manner other than a willfully unlawful disclosure to a third

59-39

party that is not an employee, affiliated company, or employee or agent of the state lottery

59-40

division of the identity of any self-excluded person.

59-41

      (d) A person who is prohibited from any gaming establishment by any provision of this

59-42

chapter or pursuant to any self-exclusion rules adopted by the state lottery division shall not

59-43

collect in any manner or proceeding any winnings or recover any losses arising as a result of any

59-44

prohibited gaming activity.

59-45

      (e) In any proceeding brought against any licensee, permittee any employee thereof for a

59-46

willful violation of the self-exclusion rules of the state lottery division, the state lottery division

59-47

may order the forfeiture of any money or thing of value obtained by the licensee from any self-

59-48

excluded person.

59-49

      (f) Nothing herein shall prevent any licensee or permittee from adopting and maintaining

59-50

a self-exclusion policy that may impose different or greater standards so long as such policy is in

59-51

addition to the state lottery division's self-exclusion rules, and any actions taken pursuant to such

59-52

a policy of a licensee or permittee shall be subject to the limitations of liability set forth in this

59-53

section.

59-54

      (g) The provisions of this section shall not require the state lottery division, licensees,

59-55

permittees and the employees thereof to identify problem or compulsive gamblers, which is an

59-56

activity that requires medical and clinical expertise.

59-57

      (h) (1) The state lottery division may impose sanctions on a licensee or permittee, under

59-58

this chapter, if the licensee, permittee, or casino gaming operator willfully fails to exclude from

59-59

the licensed gaming establishment a person placed on the self-exclusion list.

59-60

      (2) The state lottery division may seek the suspension of a licensor permit, if the licensee

59-61

or permittee engages in a pattern of willful failure to exclude from the licensed gaming

59-62

establishment persons placed on the self-exclusion list.

59-63

      (i) A licensee conducting gaming pursuant to the provisions of this chapter can

59-64

demonstrate to the state lottery division compliance with the education and training provisions of

59-65

this section by providing proof of attendance by all employees when they are hired and annually

59-66

thereafter at one of the following education programs:

59-67

      (1) Training programs conducted by the Rhode Island department of mental health,

59-68

retardation, and hospitals.

60-1

      (2) Any other course on problem and compulsive gaming training approved by the state

60-2

lottery division, including any courses offered by a casino licensee.

60-3

     41-9.1-26. State lottery division designated excluded persons. -- (a) The state lottery

60-4

division shall adopt rules to provide for the establishment of a list of persons who are to be

60-5

excluded from any room, premises, or designated gaming area of any establishment where

60-6

gaming is conducted pursuant to a license or contract issued pursuant to the provisions of this

60-7

chapter. The rules must define the standards for exclusion and include standards relating to the

60-8

following persons:

60-9

      (1) Those who are career or professional offenders as defined by the rules of the state

60-10

lottery division.

60-11

      (2) Those who have been convicted of a criminal offense specified by the state lottery

60-12

division.

60-13

      (3) Those whose presence in a gaming establishment operated by a casino licensee

60-14

would be adverse to the interests of Rhode Island or gaming operations.

60-15

      (b) The state lottery division shall have the authority to place persons on the excluded

60-16

list. The state lottery division may not place a person on such a list due to the person's race, color,

60-17

creed, national origin, sex, or disability.

60-18

      (c) Whenever the name and description of any person is placed on an excluded person's

60-19

list pursuant to this chapter, except at that person's request, the state lottery division shall serve

60-20

notice of such fact to such person by either of the following:

60-21

      (1) By personal service.

60-22

      (2) By certified mail to the last known address of such person.

60-23

      (d) A person may petition the state lottery division for removal of his or her name from

60-24

the list. The petitioner has the burden of proving he or she does not meet the criteria of

60-25

subdivision (a)(1), (a)(2), or (a)(3) of this section.

60-26

      (e) Any person who has been placed on the list of persons to be excluded or ejected from

60-27

any gaming establishment pursuant to this chapter may be imprisoned for up to six (6) months or

60-28

fined not more than five hundred dollars ($500), or both, if he or she thereafter enters or attempts

60-29

to enter the premises of a gaming establishment without first having obtained a determination by

60-30

the state lottery division that he or she should not have been placed on the list of persons to be

60-31

excluded or ejected.

60-32

      (f) The state lottery division may impose sanctions on a licensee under this chapter if the

60-33

licensee willfully fails to exclude from the licensed gaming establishment a person placed on the

60-34

exclusion list.

61-1

      (g) The state lottery division may seek suspension of a license if the licensee engages in

61-2

a pattern of willful failure to exclude from the licensed gaming establishment persons placed on

61-3

the exclusion list.

61-4

      (h) A person who is placed on the list is entitled to a hearing for review of the listing.

61-5

Unless otherwise agreed by the state lottery division and the named person, the hearing shall be

61-6

held not later than thirty (30) days after the receipt of the petition.

61-7

     41-9.1-27. Advertising -- Compulsive gambling information. -- In any advertisement

61-8

of gaming activities or of a gaming establishment that is offered to the general public in print by

61-9

any casino licensee pursuant to the provisions of this chapter, the toll-free telephone number of

61-10

the National Council on Problem Gambling or a similar toll-free number approved by the state

61-11

lottery division shall be placed on such advertisement.

61-12

     41-9.1-28. Exclusion or ejection of persons. -- (a) Any casino licensee may exclude or

61-13

eject any person for any reason, except race, color, creed, national origin, sex, or disability.

61-14

      (b) Any casino licensee and any employee of a casino licensee shall not be liable for any

61-15

monetary damages or any other remedy in any judicial proceeding as a result of the exclusion or

61-16

removal of any person for any reason, except race, color, creed, national origin, sex, or disability.

61-17

     41-9.1-29. Making false statements relating to gaming. -- (a) No person shall

61-18

knowingly or intentionally make a material false statement in any application for a license,

61-19

permit, suitability determination, or in support of a proposal for a development agreement

61-20

pursuant to the provisions of this chapter. No person shall intentionally make a material false

61-21

statement in any book, record, form, or any other document which is required, compiled, or

61-22

maintained pursuant to the provisions of this chapter.

61-23

      (b) Any person who violates any of the provisions of this section shall be imprisoned for

61-24

not more than five (5) years and may be fined an amount not to exceed ten thousand dollars

61-25

($10,000).

61-26

     41-9.1-30. Use of device to obtain advantage at casino game -- Forfeiture -- Notice. --

61-27

If, in playing a game in a licensed casino, the person uses, or assists another in the use of, an

61-28

electronic, electrical or mechanical device which is designed, constructed, or programmed

61-29

specifically for use in obtaining an advantage at playing any game in a licensed casino, such

61-30

action is prohibited and is punishable by imprisonment for a period of one year and/or a fine up to

61-31

one thousand dollars ($1,000). In addition, any device used by any person in violation of this

61-32

section shall be subject to forfeiture. Each casino licensee shall post notice of this prohibition and

61-33

the penalties of this section in a manner determined by the state lottery division.

62-34

     41-9.1-31. Unlawful use of bogus chips or gaming billets, marked cards, dice,

62-35

cheating devices, unlawful coins -- Penalty. -- (a) It shall be unlawful for any person to play any

62-36

game and:

62-37

      (1) Knowingly to use bogus or counterfeit chips or gaming billets, or knowingly to

62-38

substitute and use in any such game cards or dice that have been marked, loaded or tampered

62-39

with; or

62-40

      (2) Knowingly to use or possess any cheating device with intent to cheat or defraud.

62-41

      (b) It shall be unlawful for any person, playing or using any slot machine to:

62-42

      (1) Knowingly to use other than a lawful coin or legal tender of the United States of

62-43

America or to use coin not of the same denomination as the coin intended to be used in such slot

62-44

machine, except that in the playing of any slot machine or similar gaming device, it shall be

62-45

lawful for any person to use gaming billets, tokens or similar objects therein which are approved

62-46

by the state lottery division; or

62-47

      (2) To use any cheating or thieving device, including, but not limited to, tools, drills,

62-48

wires, coins or tokens attached to strings or wires, or electronic or magnetic devices, to facilitate

62-49

the alignment of any winning combination or removing from any slot machine any money or

62-50

other contents thereof.

62-51

      (c) It shall be unlawful for any person knowingly to possess or use while on the premises

62-52

of a licensed casino, any cheating, or thieving device, including, but not limited to, tolls, wires,

62-53

drills, coins attached to strings or wires or electronic or magnetic devices to facilitate removing

62-54

from any slot machine any money or contents thereof, except that a duly authorized employee of

62-55

a licensed casino may possess and use any of the foregoing only in furtherance of his or her

62-56

employment in the casino.

62-57

      (d) It shall be unlawful for any person knowingly to possess or use while on the premises

62-58

of any licensed casino any key or device designed for the purpose of or suitable for opening or

62-59

entering any slot machine or similar gaming device or drop box, except that a duly authorized

62-60

employee of a licensed casino, or of the state lottery division may possess and use any of the

62-61

foregoing only in furtherance of his or her employment.

62-62

      (e) Any person who violates any of the provisions of this section shall be imprisoned for

62-63

no more than (5) five years and may be fined an amount not to exceed ten thousand dollars

62-64

($10,000).

62-65

     41-9.1-32. Cheating games and devices in a licensed casino -- Penalty. -- (a) It shall be

62-66

unlawful:

62-67

      (1) Knowingly to conduct, carry on, operate, deal or allow to be conducted, carried on,

62-68

operated or dealt any cheating or thieving game or device; or

63-1

      (2) Knowingly to deal, conduct, carry on, operate or expose for play any game or games

63-2

played with cards, dice or any mechanical device, or any combination of games or devices, which

63-3

have in any manner been marked or tampered with, or placed in a condition, or operated in a

63-4

manner, the result of which tends to deceive the public or tends to alter the normal random

63-5

selection of characteristics or the normal chance of the game which could determine or alter the

63-6

result of the game.

63-7

      (3) It shall be unlawful knowingly to use or possess any marked cards, loaded dice,

63-8

plugged or tampered with machines or devices.

63-9

      (b) Any person who violates any of the provisions of this section shall be imprisoned for

63-10

not more than five (5) years and may be fined an amount not to exceed ten thousand dollars

63-11

($10,000).

63-12

     41-9.1-33. Skimming of gaming proceeds. -- (a) The crime of skimming of gaming

63-13

proceeds is the intentional excluding or the taking of any action in an attempt to exclude any

63-14

thing or its value from the deposit, counting, collection, or computation of:

63-15

      (1) Gross revenues from gaming operations or activities.

63-16

      (2) Net gaming proceeds.

63-17

      (3) Amounts due the state pursuant to the provisions of this chapter.

63-18

      (b) Whoever commits the crime of skimming of gaming proceeds when the amount

63-19

skimmed, or to be skimmed, is less than one thousand dollars ($1,000) may be imprisoned for not

63-20

more than five (5) years or may be fined not more than five thousand dollars ($5,000), or both.

63-21

      (c) Whoever commits the crime of skimming of gaming proceeds when the amount

63-22

skimmed, or to be skimmed, is one thousand dollars ($1,000) or more shall be imprisoned for not

63-23

less than one year and not more than twenty (20) years or may be fined not more than ten

63-24

thousand dollars ($10,000) or the amount skimmed or to be skimmed, whichever is greater, or

63-25

both.

63-26

     41-9.1-34. Conduct subject to civil penalty. -- In addition to other penalties provided

63-27

for under this chapter, a person who conducts a gaming operation without first obtaining a license

63-28

to do so, or a licensee who continues to conduct gambling games after revocation of the licensee's

63-29

license, or any licensee who conducts or allows to be conducted any unauthorized gambling

63-30

games in a casino in which the licensee is authorized to conduct its gaming operation, is subject

63-31

to a civil penalty equal to the amount of gross receipts derived from wagering on the gambling

63-32

games whether unauthorized or authorized, conducted on that day as well as confiscation and

63-33

forfeiture of all gambling game equipment used in the conduct of unauthorized gambling games.

64-34

     41-9.1-35. Property subject to seizure, confiscation, destruction, or forfeiture. -- Any

64-35

equipment, gaming device, money, apparatus, material of gaming, proceeds, substituted proceeds,

64-36

or real or personal property used, obtained, or received in violation of this chapter shall be subject

64-37

to seizure, confiscation, destruction, or forfeiture.

64-38

     41-9.1-36. Prohibited conduct -- Violation as felony -- Violation as misdemeanor --

64-39

Penalties -- Presumption -- Venue. -- (a) A person is guilty of a felony punishable by

64-40

imprisonment for not more than ten (10) years or a fine of not more than one hundred thousand

64-41

dollars ($100,000) or both, and shall be barred from receiving or maintaining a license, for doing

64-42

any of the following:

64-43

      (1) Conducting a gaming operation where wagering is used or to be used without a

64-44

license issued by the state lottery division.

64-45

      (2) Conducting a gaming operation where wagering is permitted other than in the manner

64-46

specified pursuant to the provisions of this chapter.

64-47

      (3) Knowingly providing false testimony to the state lottery division or its authorized

64-48

representative while under oath.

64-49

      (b) A person commits a felony punishable by imprisonment for not more than ten (10)

64-50

years or a fine of not more than one hundred thousand dollars ($100,000) or both, and, in

64-51

addition, shall be barred for life from a gaming operation under the jurisdiction of the state lottery

64-52

division if the person does any of the following:

64-53

      (1) Offers, promises, or gives anything of value or benefit to a person who is connected

64-54

with a licensee or affiliated company, including, but not limited to, an officer or employee of a

64-55

casino licensee or holder of an occupational license pursuant to an agreement or arrangement or

64-56

with the intent that the offer, promise, or thing of value or benefit will influence the actions of the

64-57

person to whom the offer, promise, or gift was made in order to affect or attempt to affect the

64-58

outcome of a gambling game.

64-59

      (2) Solicits or knowingly accepts or receives a promise of anything of value or benefit

64-60

while the person is employed by or connected with a licensee, including, but not limited to, an

64-61

officer or employee of a casino licensee or holder of an occupational license, pursuant to an

64-62

understanding or arrangement or with the intent that the promise or thing of value or benefit will

64-63

influence the actions of the person to affect or attempt to affect the outcome of a gambling game.

64-64

      (c) A person, or an affiliate of a person, is guilty of a misdemeanor punishable by

64-65

imprisonment for not more than one year or a ten thousand dollar ($10,000) fine, or both, for

64-66

doing any of the following:

64-67

      (1) Knowingly making a wager if the person is under twenty-one (21) years of age or

64-68

permitting a person under twenty-one (21) years of age to make a wager.

65-1

      (2) Willfully failing to appear before or provide an item to the state lottery division at the

65-2

time and place specified in a subpoena or summons issued by the state lottery division or

65-3

executive director.

65-4

      (3) Willfully refusing, without just cause, to testify or provide items in answer to a

65-5

subpoena, subpoena duces tecum or summons issued by the state lottery division or executive

65-6

director.

65-7

      (4) Conducting or permitting a person who is not licensed or permitted pursuant to this

65-8

chapter to conduct activities required to be licensed or permitted under the casino, occupational,

65-9

and suppliers licensee and permittee provisions in this chapter or in rules promulgated by the state

65-10

lottery division.

65-11

      (5) Leasing, pledging, borrowing, or loaning money against a casino, supplier, or

65-12

occupational license or permit.

65-13

     41-9.1-37. Sale of alcoholic beverages. -- Alcoholic beverages shall only be sold or

65-14

distributed in a casino pursuant to state law.

65-15

     41-9.1-38. Legal shipments of gaming devices into the state. -- All shipments of

65-16

gaming devices, including slot machines, into any town or city of this state within which gaming

65-17

is authorized, the registering, recording, and labeling of which have been duly done by the

65-18

manufacturer or dealer thereof in accordance with sections 3 and 4 of that certain chapter of the

65-19

Congress of the United States entitled, "An act to prohibit transportation of gaming devices in

65-20

interstate and foreign commerce", approved January 2, 1951, being c. 1194, 64 Stat. 1134, and

65-21

also designated as 15 U.S.C. sections 1171-1177, shall be deemed legal shipments thereof into the

65-22

State of Rhode Island.

65-23

     41-9.1-39. Declaration of state's exemption from operation of provisions of 15 U.S.C.

65-24

section 1172. -- Pursuant to section 2 of that certain chapter of the Congress of the United States

65-25

entitled "An act to prohibit transportation of gaming devices in interstate and foreign commerce",

65-26

approved January 2, 1951, being c. 1194, 64 Stat. 1134, and also designated as 15 U.S.C. sections

65-27

1171-1177, the state of Rhode Island, acting by and through its duly elected and qualified

65-28

members of its legislature, does hereby in this section, and in accordance with and in compliance

65-29

with the provisions of section 2 of such chapter of Congress, declare and proclaim that any town

65-30

or city of the State of Rhode Island, within which gaming is authorized is exempt from the

65-31

provisions of section 2 of that certain chapter of the Congress of the United States entitled "An

65-32

act to prohibit transportation of gaming devices in interstate and foreign commerce", designated

65-33

15 U.S.C. sections 1171-1177, approved January 2, 1951.

66-34

     41-9.1-40. Smoking. -- (a) Notwithstanding any other provisions of the general laws or

66-35

regulations adopted thereunder to the contrary, including, but not limited to, the provisions of

66-36

chapter 20.10 of title 23, the provisions of this section shall govern and control with respect to

66-37

any and all smoking prohibitions as such relate to a casino licensed under this chapter.

66-38

      (b) Any casino licensed under this chapter shall provide designated smoking and

66-39

nonsmoking gaming areas in its facility.

66-40

      (c) The designated nonsmoking gaming area shall be physically separated from any

66-41

smoking area and shall be required to have separate and distinct ventilation systems so as to

66-42

prohibit the migration of smoke into the nonsmoking area.

66-43

      (d) Except with respect to bars located in a designated smoking area within the gaming

66-44

area, any bar or restaurant located in a casino shall be nonsmoking and be physically separate

66-45

from any smoking area and shall have a separate ventilation system so as to prohibit the migration

66-46

of smoke into the restaurant.

66-47

      (e) Any casino licensee shall promulgate rules and regulations to allow its employees the

66-48

right to work in a smoke free environment. These rules shall include, but not be limited to,

66-49

provisions on the right to opt out of working in a smoking area and a provision that no adverse

66-50

impact or action could take place against the employee if they request to opt out of a smoking

66-51

area. The rules promulgated by the casino licensee shall be filed with the state lottery division

66-52

with copies to the general assembly and the department of health prior to the opening of the

66-53

casino for business.

66-54

      (f) A casino licensee shall file an annual report with the state lottery division with copies

66-55

to the general assembly and department of health detailing smoke mitigation efforts undertaken

66-56

by the licensee during the previous year and plans for the upcoming year. The licensee shall be

66-57

required to monitor air quality with current appropriate technology. A professional HVAC

66-58

engineer (or other appropriate professional) shall certify the monitoring process and results. The

66-59

results of the monitoring process shall be included in the annual report.

66-60

      (g) Any enactment relating to the provisions of this section on a casino licensed under

66-61

this chapter or the casino licensee shall be by statute as enacted by the general assembly;

66-62

provided, however, that the general assembly may by statute delegate such authority to the cities

66-63

and towns.

66-64

     41-9.1-41. Severability. -- If any provision of this chapter or the application thereof shall

66-65

for any reason be judged invalid, that judgment shall not affect, impair, or invalidate the

66-66

remainder of the law, but shall be confined in its effect to the provision or application directly

66-67

involved in the controversy giving rise to the judgment.

67-68

     SECTION 7. Chapter 41-10 of the General Laws entitled "OFF-TRACK BETTING" is

67-69

hereby repealed in its entirety.

67-70

     CHAPTER 41-10

67-71

Off-Track Betting

67-72

     41-10-1. License required for off track betting. -- No person, association, or

67-73

corporation shall hold or conduct off track betting on any racing event for any stake, purse, or

67-74

reward, except such person, association, or corporation as shall be licensed by the division of

67-75

racing and athletics as provided by this chapter and as approved by the voters as required by this

67-76

chapter.

67-77

     41-10-2. City elections on establishment of off track betting. -- (a) Notwithstanding

67-78

any other provisions of law, before an off track betting facility shall be established in the city of

67-79

Pawtucket, the question "Shall an off track betting facility be located in the city of Pawtucket, the

67-80

state proceeds from which shall be paid directly to the cities and towns for the relief of property

67-81

taxes?"

67-82

      (b) This resolution shall be placed on the ballot at the next general election to be

67-83

submitted to the qualified electors of the city of Pawtucket, and the state.

67-84

      (c) The question shall be submitted by the local board of canvassers to the electors of the

67-85

city of Pawtucket, and the results of the election shall be certified to the secretary of state;

67-86

      (d) The question shall be submitted by the secretary of state to the qualified electors of

67-87

the state at the same general election and the secretary of state shall certify the election results;

67-88

      (e) The affirmative vote of the city of Pawtucket and the electors of the state shall be

67-89

necessary for the approval of the question, and if such consent be thus given, all further

67-90

regulations shall rest with the division of racing and athletics.

67-91

     41-10-3. Application for license -- Action by division of racing and athletics. -- (a)

67-92

Any person, association, or corporation desiring to conduct pari-mutuel wagering at an off track

67-93

betting facility on any racing event shall apply to the division for a license on forms provided by

67-94

the division. The application shall specify the days on which betting is to be conducted, the

67-95

location of the betting facility and such other information as may be required by the division. The

67-96

division may also require any person, association, or corporation to give information as to their

67-97

financial standing and credit. The division shall have the right to reject any applications for a

67-98

license for any cause, which it may deem sufficient. Applicants aggrieved by a decision or order

67-99

of the division shall have the right to an appeal to the racing and athletics board pursuant to

67-100

chapter 2 of title 41. The division shall allow an off track betting facility to be open seven (7)

67-101

days a week. On each day of the week the off track facility licensee may import racing programs

67-102

from one or more out-of-state racetracks in a manner to be approved by the division.

68-1

      (b) Definition of an "off track betting facility": An off track betting facility shall be a full

68-2

service betting facility offering foods and beverage services plus other amenities, containing a

68-3

minimum of ten thousand square feet (10,000 sq. ft.), providing audio/visual signals of horse

68-4

racing programs via approved telecommunication and totalizator systems.

68-5

     41-10-4. Powers and duties of division. -- In addition to the powers already granted to

68-6

the division, the division shall have the power and it shall be its duty to supervise and administer

68-7

the operation of off track betting in accordance with this chapter and with the rules and

68-8

regulations of the division.

68-9

     41-10-5. Licensing restrictions. -- (a) The division shall refuse to grant a license, or

68-10

shall suspend a license, if the applicant or licensee:

68-11

      (1) Has been convicted of a felony, or any crime involving moral turpitude;

68-12

      (2) Has engaged in illegal gambling as a significant source of income;

68-13

      (3) Has been convicted of violating any gambling statutes;

68-14

      (4) Has been convicted of fraud or misrepresentation in any connection; or

68-15

      (5) Has been found to have violated any rule, regulation, or order of the division.

68-16

      (b) The license heretofore issued shall be suspended by the division for any charge

68-17

which may result in a conviction or conduct prescribed in subdivisions (a)(1) through (a)(5);

68-18

which suspension shall be effective until a final judicial determination.

68-19

      (c) The division shall refuse to grant, or the division shall suspend, pending a hearing

68-20

before the division, a license if the applicant or licensee is an association or corporation:

68-21

      (1) Any of whose directors, officers, partners, or shareholders holding a five percent

68-22

(5%) or greater interest have been found guilty of any of the activities specified in subsection (a);

68-23

or

68-24

      (2) In which it appears to the division that due to the experience, character, or general

68-25

fitness of any director, officer, or controlling partner, or shareholder, the granting of a license

68-26

would be inconsistent with the public interest, convenience, or trust.

68-27

      (d) Whenever requested by the division, the division of criminal identification of the

68-28

department of the attorney general, the superintendent of state police, and the superintendent or

68-29

chief of police or town sergeant of any city or town, shall furnish all information on convictions,

68-30

arrests, and present investigations concerning any person who is an applicant for a license or who

68-31

is a licensee under this chapter.

68-32

     41-10-6. Host community fee. -- The city of Pawtucket shall receive as host community

68-33

fee one percent (1%) of the amount contributed to the mutuel pools.

69-34

     41-10-7. Off track betting taxes and commissions. -- (a) Each licensee conducting

69-35

wagering in an off track betting facility under the pari-mutuel system shall pay to the state, and

69-36

there is hereby imposed, a tax on such events at the rate of:

69-37

      (1) Three and one half percent (3.5%) of the total money wagered thereon on win, place,

69-38

and show wagers;

69-39

      (2) Four percent (4%) on multiple wagers therein involving two (2) animals; and

69-40

      (3) Four and one half percent (4.5%) on exotic wagers therein involving three (3) or

69-41

more animals.

69-42

      (b) Where the division has approved the commingling of wagers placed at the off track

69-43

betting facility into similar wagering pools at a host facility where the racing event is conducted,

69-44

each licensee conducting wagering in an off track betting facility may retain as his or her

69-45

licensee's commission an amount equal to the takeout at the host facility. Where commingling of

69-46

wagers does not occur the division shall be:

69-47

      (1) Eighteen percent (18%) of the amount wagered therein on win, place and show

69-48

wagers;

69-49

      (2) Twenty percent (20%) on multiple wagers therein, involving two (2) animals;

69-50

      (3) Twenty-five percent (25%) on exotic wagers therein involving three (3) or more

69-51

animals; and

69-52

      (4) One half (1/2) of the breakage to the dime resulting from such betting shall be paid to

69-53

the division to support the division in accordance with section 41-4-4.1. The remaining breakage

69-54

shall be retained by the licensee.

69-55

      (c) Off track betting licensees may impose a surcharge on winning wagers of up to five

69-56

and one half percent (5.5%) to offset telecommunications costs and the cost of acquiring racing

69-57

signals.

69-58

     41-10-8. Payment by state to cities and towns -- State aid formula. -- The off track

69-59

betting tax payable to the state under section 41-10-7(a)(1), (2), and (3) shall be paid directly by

69-60

the state to the cities and towns of the state in accordance with the state aid formula as set out in

69-61

section 45-13-1, and these funds shall be used by the cities and towns as a direct reduction against

69-62

the residential tax rate.

69-63

     SECTION 8. Chapter 41-11 of the General Laws entitled "SIMULCAST PROGRAMS

69-64

FROM LICENSED BETTING FACILITIES" is hereby repealed in its entirety.

69-65

     CHAPTER 41-11

69-66

Simulcast Programs from Licensed Betting Facilities

69-67

     41-11-1. Definitions. -- For the purpose of this chapter, the following words shall mean:

70-68

      (1) "Day" means the normal business day of the facility on which the licensee may

70-69

conduct multiple programs.

70-70

      (2) "Licensee" means an entity licensed pursuant to chapters 3.1 and 7 of title 41.

70-71

      (3) "Simulcast" means the live television broadcast of programs either interstate or

70-72

intrastate to a licensee of a licensed facility within the state. The program must be sanctioned

70-73

and/or licensed in the state of origin.

70-74

     41-11-2. Simulcast. -- (a) Notwithstanding the provisions of section 41-4-2 as to location

70-75

of programs only, a licensee may enter into a contract with any licensed racing association to

70-76

simulcast programs from the facility on certain racing days.

70-77

      (b) A licensee may simulcast programs a maximum of two hundred seventy (270) days

70-78

in a state fiscal calendar year.

70-79

      (c) A licensee shall obtain a permit from the division of racing and athletics.

70-80

      (d) A licensee may accept pari-mutuel wagering on the simulcast at the licensed facility

70-81

and not at any other location.

70-82

      (e) (1) When the program is a dog race, the licensee shall compensate the owners of dog

70-83

kennels who are under contract with the licensee at the time of the program. The compensation

70-84

shall be equal to that percentage of the pari-mutuel handle paid to the owners pursuant to the

70-85

contract then existing between the licensee and the owners.

70-86

      (2) A licensee licensed pursuant to chapter 7 of title 41 who receives simulcasts of dog

70-87

races intrastate shall compensate the owners of dog kennels who are under contract with a

70-88

licensee licensed pursuant to chapter 3.1 of title 41 at the time of the simulcast an amount equal to

70-89

the percentage of the pari-mutuel handle being paid to the dog kennel owners pursuant to their

70-90

contracts with the licensee licensed pursuant to chapter 3.1 of title 41.

70-91

     41-11-3. Taxes and commissions. -- (a) Each licensee conducting wagering in a

70-92

simulcast betting facility under the pari-mutuel system shall pay to the state, and there is hereby

70-93

imposed, a tax on such programs at the rate of:

70-94

      (1) Four percent (4%) of the total money wagered thereon on win, place and show

70-95

wagers;

70-96

      (2) Four percent (4%) on multiple wagers therein involving two (2) animals; and

70-97

      (3) Five and one half percent (5.5%) on exotic wagers therein involving three (3) or

70-98

more animals.

70-99

      (b) Where the division has approved the integration of wagers placed at the simulcast

70-100

facility into similar wagering pools at a host facility where the program is conducted, each

70-101

licensee conducting wagering in a simulcast betting facility may retain as his or her commission

70-102

an amount equal to the takeout at the host facility of which one and four tenths percent (1.4%)

71-1

shall be paid to the kennel owners at facilities licensed pursuant to chapter 3.1 of title 41. This tax

71-2

structure shall apply to any transmission of programs between licensed facilities within the state.

71-3

Where integration of wagers does not occur the division shall be:

71-4

      (1) Twenty percent (20%) of the amounts wagered on win, place and show wagers of

71-5

which one and four tenths percent (1.4%) shall be paid to the kennel owners at facilities licensed

71-6

pursuant to chapter 3.1 of title 41.

71-7

      (2) Twenty percent (20%) of the amounts wagered on multiple wagers involving two (2)

71-8

animals of which one and four tenths percent (1.4%) shall be paid to the kennel owners at

71-9

facilities licensed pursuant to chapter 3.1 of title 41.

71-10

      (3) Twenty-five percent (25%) of the amounts wagered on exotic wagers involving three

71-11

(3) or more animals of which one and four tenths percent (1.4%) shall be paid to the kennel

71-12

owners at facilities licensed pursuant to chapter 3.1 of title 41.

71-13

      (4) One half (1/2) of the breakage to the dime resulting from the betting shall be

71-14

deposited as general revenues. The remaining breakage shall be retained by the licensee.

71-15

      (c) The amount of unclaimed money which shall hereafter be held by any licensee, on

71-16

account of outstanding and uncashed winning tickets, shall, at the expiration of one year after the

71-17

close of the meeting during which the tickets were issued, be paid into the general fund of the

71-18

state.

71-19

      (d) Notwithstanding any other provision of law, money wagered on the simulcast of

71-20

intrastate and interstate programs, as provided in this chapter, shall be subject only to the tax

71-21

imposed in this section, and provided further, where there is interstate transmission of signals in

71-22

accordance with national practice, the tax shall be levied in the receiving state only.

71-23

     41-11-4. Admission of minors prohibited. -- No person who is under the age of

71-24

eighteen (18) years shall be admitted into a building where pari-mutuel betting or simulcast is

71-25

taking place, unless the person is an employee of a licensed concessionaire or licensed vendor and

71-26

performing his or her duties of employment.

71-27

     SECTION 9. The title of Chapter 41-1 of the General Laws entitled "DIVISION OF

71-28

RACING AND ATHLETICS" is hereby amended to read as follows:

71-29

     CHAPTER 41-1

71-30

Division of Racing and Athletics

71-31

     CHAPTER 41-1

71-32

DIVISION OF ATHLETICS

71-33

     SECTION 10. Sections 41-1-1 and 41-1-3 of the General Laws in Chapter 41-1 entitled

71-34

"Division of Racing and Athletics" are hereby amended to read as follows:

72-1

     41-1-1. Division of racing and athletics – Duties Division of athletics – Duties. --

72-2

Within the department of business regulation there shall be a division of racing and athletics. The

72-3

division shall supervise the enforcement of all laws relating to the regulation and control of racing

72-4

and athletics, and may in the first instance make decisions and issue orders, subject to appeal to

72-5

the racing and athletics hearing board. The division shall exercise all powers and duties

72-6

prescribed by chapters 3, 3.1, 4, 5, 7, and 11 5, 5.1, and 5.2 of this title, and all other acts relative

72-7

to the regulation and supervision of horse racing, dog racing, and athletics, heretofore performed

72-8

by the commission on horse racing and athletics. The division shall exercise all powers and duties

72-9

prescribed by chapters 3, 3.1, 4, 5, 7, and 11 of this title, and all other acts relative to the

72-10

regulation and supervision of horse racing, dog racing, and athletics, heretofore performed by the

72-11

commission on horse racing and athletics. The division shall comply with RI general laws section

72-12

42-14-14 in the conduct of any investigation related to any license application, permit and/or

72-13

registration related to Chapters 3, 3.1, 4, 7 and 11 of this title. The division may comply with RI

72-14

general laws section 42-14-14 in the conduct of any investigation related to any license

72-15

application, permit and/or registration related to chapters 5, 5.1, and 5.2 of this title. Such

72-16

investigation shall require the applicant to apply to the bureau of criminal identification of the

72-17

Rhode Island state police or the Rhode Island department of the attorney general for a nationwide

72-18

criminal records check with fingerprinting. The applicant shall be responsible for payment of the

72-19

costs of said criminal records check. The Rhode Island state police or the Rhode Island

72-20

department of the attorney general, as applicable, shall send the results of such criminal records

72-21

check to the division. Once said results are sent to and received by the Rhode Island Lottery

72-22

division, the Rhode Island state police and the Rhode Island department of attorney general shall

72-23

promptly destroy said fingerprint record(s). On or before February 1, 2011, the agency division

72-24

shall adopt rules and regulations establishing criteria to be used in determining whether based

72-25

upon a criminal records check an application will be approved.

72-26

     41-1-3. Construction of references -- Continuity of functions. -- (a) Whenever in any

72-27

general or public law, and more particularly in this title, the words "commission on horse racing

72-28

and athletics", or the word "commission" in reference to the commission shall appear, the words

72-29

shall be deemed to refer to and mean the division of racing and athletics in the department of

72-30

business regulation. The division shall be deemed and held to constitute a continuation of the

72-31

former commission on horse racing and athletics. The governor is authorized to transfer or

72-32

reallocate by executive order the whole or any part of the appropriation of the former commission

72-33

on horse racing and athletics to the department and the division.

73-34

      (b) Whenever in any general or public law, and more particularly this title, the words

73-35

"division of racing and athletics" or the word “division” in reference to the division of racing and

73-36

athletics, shall appear, the words shall be deeded to refer to and mean the division of athletics in

73-37

the department of business regulation. The division shall be deemed and held to constitute a

73-38

continuation of the former division of racing and athletics.

73-39

     (c) Whenever the words “division of athletics” shall appear, the words shall be deemed to

73-40

mean the division of commercial licensing and racing and athletics in the department of business

73-41

regulation.

73-42

     SECTION 11. Section 41-1-2 of the General Laws in Chapter 41-1 entitled "Division of

73-43

Racing and Athletics" is hereby repealed.

73-44

     41-1-2. Collection of and accounting for racing taxes. -- The division of racing and

73-45

athletics shall exercise all the powers and duties prescribed by chapters 3, 3.1, and 4 of this title,

73-46

and all subsequent acts in amendment thereof and in addition thereto, relating to the collection of

73-47

and accounting for racing taxes and fees heretofore performed by the commission on horse racing

73-48

and athletics.

73-49

     SECTION 12. The title of Chapter 41-2 of the General Laws entitled "RACING AND

73-50

ATHLETIC HEARING BOARD" is hereby amended to read as follows:

73-51

     CHAPTER 41-2

73-52

Racing and Athletic Hearing Board

73-53

     CHAPTER 41-2

73-54

ATHLETICS HEARING BOARD

73-55

     SECTION 13. Sections 41-2-1, 41-2-3, 41-2-4, 41-2-5, 41-2-6 and 41-2-7 of the General

73-56

Laws in Chapter 41-2 entitled "Racing and Athletic Hearing Board" are hereby amended to read

73-57

as follows:

73-58

     41-2-1. Board created -- Appointment and removal of members. -- (a) Within the

73-59

executive department there shall be a racing and an athletics hearing board. The hearing board

73-60

shall consist of three (3) members, not more than two (2) of whom shall be members of the same

73-61

political party, who shall be appointed by the governor as provided in this section. In the month

73-62

of February in each odd numbered year, the governor shall appoint one member of the board to

73-63

hold office until the first day of March in the sixth year after his or her appointment and until his

73-64

or her successor is appointed and qualified to succeed the member whose term will next expire.

73-65

      (b) Any vacancy which may occur in the board shall be filled by appointment by the

73-66

governor for the remainder of the unexpired term. A member of the board may be removed by the

73-67

governor only for cause, after being given a copy of charges against him or her and an

73-68

opportunity to be heard publicly on the charges before the governor. A copy of the charges and a

74-1

transcript of the record of the hearing shall be filed with the secretary of state.

74-2

     41-2-3. Right of appeal from division. -- The division of racing and athletics may in the

74-3

first instance make such decisions and issue such orders as may to it seem proper in the

74-4

administration of the provisions of laws that shall be from time to time assigned to its direction by

74-5

the governor. Any person or persons aggrieved by a decision or order of the division of racing

74-6

and athletics shall have the right to appeal to the racing and athletics hearing board by filing an

74-7

appeal in writing with the board within seven (7) days from the service of the order or decision

74-8

appealed from.

74-9

     41-2-4. Hearing and decision by board. -- Upon an appeal being taken from any

74-10

decision or order, the racing and athletics hearing board shall hold and conduct hearings on the

74-11

appeal to be governed by rules to be adopted by the board, and in the hearings the board shall not

74-12

be bound by technical rules of evidence. The board shall sit as an impartial, independent body in

74-13

order to make decisions affecting the public interest and private rights. It shall hear all appeals de

74-14

novo as to both the law and the facts and its decisions shall be based upon the law and upon the

74-15

evidence presented to it by the division of racing and athletics and by the parties in interest. The

74-16

concurrence of a majority of the board shall be sufficient for any decision.

74-17

     41-2-5. Subpoena powers of board -- Rules and regulations. -- (a) The members of the

74-18

racing and athletics hearing board are hereby severally authorized and empowered to administer

74-19

oaths; and the board, in all cases of every nature pending before it, is hereby authorized and

74-20

empowered to summon and examine witnesses and to compel the production and examination of

74-21

papers, books, accounts, documents, records, certificates, and other legal evidence that may be

74-22

necessary or proper for the determination and decision of any question before or the discharge of

74-23

any duty required by law of the board.

74-24

      (b) All subpoenas and subpoenas duces tecum shall be signed by the chairperson or, in

74-25

the absence or disqualification of the chairperson, by any other member thereof, and shall be

74-26

served as subpoenas are now served in civil cases in the superior court; and witnesses so

74-27

subpoenaed shall be entitled to the same fees for attendance and travel as are now provided for

74-28

witnesses in civil cases in the superior court. If any person fails to obey the command of any

74-29

subpoena, without reasonable cause, or if a person in attendance before the board shall, without

74-30

reasonable cause, refuse to be sworn, or to be examined, or to answer a legal and pertinent

74-31

question, the board may apply to any justice of the superior court, upon proof by affidavit of the

74-32

fact, for a rule or order returnable in not less than two (2) or more than five (5) days, directing the

74-33

person to show cause why he or she should not be adjudged in contempt.

75-34

      (c) Upon the return of an order, the justice before whom the matter is brought for a

75-35

hearing shall examine under oath the person and the person shall be given an opportunity to be

75-36

heard, and if the justice shall determine that the person has refused without reasonable cause or

75-37

legal excuse to be examined, or to answer a legal and pertinent question, or to produce books,

75-38

accounts, papers, records, and documents, material to the issue, which he or she was ordered to

75-39

bring or produce, he or she may forthwith commit the person to the adult correctional institutions,

75-40

there to remain until he or she submits to do the act which he or she was so required to do, or is

75-41

discharged according to law.

75-42

      (d) The board shall have power to adopt reasonable rules and regulations governing the

75-43

procedure to be followed in any matter that may come before it for hearing.

75-44

     41-2-6. Judicial review by superior court. -- The division of racing and athletics or any

75-45

party in interest, if aggrieved by a decision of the board shall be entitled to judicial review as

75-46

provided by chapter 35 of title 42.

75-47

     41-2-7. Exclusive remedy. -- Notwithstanding the provisions of section 42-20-13, or

75-48

other provisions of laws, the procedures established by sections 41-2-3, 41-2-4, and 41-2-6 shall

75-49

constitute the exclusive remedies for persons aggrieved by any order or decision of the division of

75-50

racing and athletics or of the racing and athletics hearing board.

75-51

     SECTION 14. Section 42-61-4 of the General Laws in Chapter 42-61 entitled "State

75-52

Lottery" is hereby amended to read as follows:

75-53

     42-61-4. Powers and duties of director. -- The director shall have the power and it shall

75-54

be his or her duty to:

75-55

      (1) Supervise and administer the operation of lotteries, racing, and casino gaming in

75-56

accordance with this chapter, chapter chapters 61.2, 61.3, 61.4, 61.5, 61.6, 61.7, 61.8, and 61.10

75-57

of this title and with the rules and regulations of the division;

75-58

      (2) Act as the chief administrative officer having general charge of the office and records

75-59

and to employ necessary personnel to serve at his or her pleasure and who shall be in the

75-60

unclassified service and whose salaries shall be set by the director of the department of revenue,

75-61

pursuant to the provisions of section 42-61-3.

75-62

      (3) In accordance with this chapter and the rules and regulations of the division, license

75-63

as agents to sell lottery tickets those persons, as in his or her opinion, who will best serve the

75-64

public convenience and promote the sale of tickets or shares. The director may require a bond

75-65

from every licensed agent, in an amount provided in the rules and regulations of the division.

75-66

Every licensed agent shall prominently display his or her license, or a copy of their license, as

75-67

provided in the rules and regulations of the committee;

76-68

      (4) Confer regularly as necessary or desirable, and not less than nine (9) times per year,

76-69

with the permanent joint committee on state lottery on the operation and administration of the

76-70

lotteries; make available for inspection by the committee, upon request, all books, records, files,

76-71

and other information, and documents of the division; advise the committee and recommend

76-72

those matters that he or she deems necessary and advisable to improve the operation and

76-73

administration of the lotteries;

76-74

      (5) Suspend or revoke any license issued pursuant to this chapter, chapter chapters 61.2,

76-75

61.3, 61.4, 61.5, 61.6, 61.7, 61.8, and 61.10 of this title or the rules and regulations promulgated

76-76

under this chapter and, chapter chapters 61.2, 61.3, 61.4, 61.5, 61.6, 61.7, 61.8, and 61.10 of this

76-77

title;

76-78

      (6) Enter into contracts for the operation of the lotteries, or any part of the operation of

76-79

the lotteries, and into contracts for the promotion of the lotteries;

76-80

      (7) Ensure that monthly financial reports are prepared providing gross monthly revenues,

76-81

prize disbursements, other expenses, net income, and the amount transferred to the state general

76-82

fund for keno and for all other lottery operations; submit this report to the state budget officer, the

76-83

auditor general, the permanent joint committee on state lottery, the legislative fiscal advisors, and

76-84

the governor no later than the twentieth business day following the close of the month; the

76-85

monthly report shall be prepared in a manner prescribed by the members of the revenues

76-86

estimating conference; at the end of each fiscal year the director shall submit an annual report

76-87

based upon an accrual system of accounting which shall include a full and complete statement of

76-88

lottery revenues, prize disbursements and expenses, to the governor and the general assembly,

76-89

which report shall be a public document and shall be filed with the secretary of state;

76-90

      (8) Carry on a continuous study and investigation of the state lotteries throughout the

76-91

state, and the operation and administration of similar laws, which may be in effect in other states

76-92

or countries;

76-93

      (9) Implement the creation and sale of commercial advertising space on lottery tickets as

76-94

authorized by section 42-61-4 of this chapter as soon as practicable after June 22, 1994;

76-95

      (10) Promulgate rules and regulations, which shall include, but not be limited to:

76-96

      (i) The price of tickets or shares in the lotteries;

76-97

      (ii) The number and size of the prizes on the winning tickets or shares;

76-98

      (iii) The manner of selecting the winning tickets or shares;

76-99

      (iv) The manner of payment of prizes to the holders of winning tickets or shares;

76-100

      (v) The frequency of the drawings or selections of winning tickets or shares;

76-101

      (vi) The number and types of location at which tickets or shares may be sold;

77-102

      (vii) The method to be used in selling tickets or shares;

77-103

      (viii) The licensing of agents to sell tickets or shares, except that a person under the age

77-104

of eighteen (18) shall not be licensed as an agent;

77-105

      (ix) The license fee to be charged to agents;

77-106

      (x) The manner in which the proceeds of the sale of lottery tickets or shares are

77-107

maintained, reported, and otherwise accounted for;

77-108

      (xi) The manner and amount of compensation to be paid licensed sales agents necessary

77-109

to provide for the adequate availability of tickets or shares to prospective buyers and for the

77-110

convenience of the general public;

77-111

      (xii) The apportionment of the total annual revenue accruing from the sale of lottery

77-112

tickets or shares and from all other sources for the payment of prizes to the holders of winning

77-113

tickets or shares, for the payment of costs incurred in the operation and administration of the

77-114

lotteries, including the expense of the division and the costs resulting from any contract or

77-115

contracts entered into for promotional, advertising, consulting, or operational services or for the

77-116

purchase or lease of facilities, lottery equipment, and materials, for the repayment of moneys

77-117

appropriated to the lottery fund;

77-118

      (xiii) The superior court upon petition of the director after a hearing may issue

77-119

subpoenas to compel the attendance of witnesses and the production of documents, papers, books,

77-120

records, and other evidence in any matter over which it has jurisdiction, control or supervision. If

77-121

a person subpoenaed to attend in the proceeding or hearing fails to obey the command of the

77-122

subpoena without reasonable cause, or if a person in attendance in the proceeding or hearing

77-123

refuses without lawful cause to be examined or to answer a legal or pertinent question or to

77-124

exhibit any book, account, record, or other document when ordered to do so by the court, that

77-125

person may be punished for contempt of the court;

77-126

      (xiv) The manner, standards, and specification for a process of competitive bidding for

77-127

division purchases and contracts; and

77-128

      (xv) The sale of commercial advertising space on the reverse side of, or in other

77-129

available areas upon, lottery tickets provided that all net revenue derived from the sale of the

77-130

advertising space shall be deposited immediately into the state's general fund and shall not be

77-131

subject to the provisions of section 42-61-15.

77-132

     (11) As part of its investigation as to whether to issue a license in accordance with

77-133

chapters 61.2, 61.3, 61.4, 61.5, 61.6, 61.7, 61.8, and 61.10 of this title and with the rules and

77-134

regulations of the division, the division shall require criminal background checks of individuals as

77-135

it deems appropriate. Said individuals shall apply to the bureau of criminal investigation of the

77-136

Rhode Island state police or the Rhode Island department of attorney general for a national

78-1

criminal records check with fingerprinting. The applicant whose criminal records check is being

78-2

conducted shall be responsible for the payment of the costs of said criminal records check. The

78-3

Rhode Island state police or the Rhode Island department of attorney general, as applicable, shall

78-4

send the results of such criminal records check to the division. Once said results are sent to and

78-5

received by the division, the Rhode Island state police and the Rhode Island department of

78-6

attorney general shall promptly destroy said fingerprint record(s). On or before February 1, 2013,

78-7

the division shall adopt rules and regulations establishing criteria to be used in determining

78-8

whether based upon a criminal records check an application will be approved.

78-9

     SECTION 15. Section 42-61.2-3 of the General Laws in Chapter 42-61.2 entitled "Video

78-10

Lottery Terminal" is hereby amended to read as follows:

78-11

     42-61.2-3. Additional powers and duties of the director. -- In addition to the powers

78-12

and duties of the state lottery director under section 42-61-4, the director shall promulgate

78-13

reasonable rules and regulations relating to video lottery games and to make recommendations

78-14

and set policy for these games. These rules and regulations and shall include, but not be limited

78-15

to:

78-16

      (1) The division shall license technology providers capable of interfacing with a central

78-17

communications system controlled by the division. In making its licensing decision, the division

78-18

shall select providers based on the following factors: providers experienced in performing

78-19

comparable projects, financial stability, technical and management abilities, the quality of the

78-20

product and service capabilities, likelihood of timely performance, maximum revenue generation,

78-21

its ability to pass a law enforcement background investigation, and any other factors found to be

78-22

relevant to performance. As part of its investigation as to whether to issue a license hereunder, the

78-23

Rhode Island division of state lottery shall require criminal background checks of individuals as it

78-24

deems appropriate and said individuals shall apply to the bureau of criminal investigation of the

78-25

Rhode Island state police or the Rhode Island department of the attorney general for a national

78-26

criminal records check with fingerprinting. The applicant whose criminal records check is being

78-27

conducted shall be responsible for the payment of the costs of said criminal records check. The

78-28

Rhode Island state police or the Rhode Island department of attorney general, as applicable, shall

78-29

send the results of such criminal records check to the Rhode Island division of state lottery. Once

78-30

said results are sent to and received by the Rhode Island Lottery division of state lottery, the

78-31

Rhode Island state police and the Rhode Island department of attorney general shall promptly

78-32

destroy said fingerprint record(s). On or before February 1, 2011, the agency division of state

78-33

lottery shall adopt rules and regulations establishing criteria to be used in determining whether

78-34

based upon a criminal records check an application will be approved.

79-1

      The award of a license to technology providers under this section shall satisfy the

79-2

requirements of chapter 2 of title 37. An outside independent testing laboratory may be utilized

79-3

by the division at the expense of the individual provider;

79-4

      (2) Accounting procedures for determining the net terminal income from lottery video

79-5

terminals, and unclaimed prizes and credits;

79-6

      (3) The type of video lottery games to be conducted;

79-7

      (4) The price to play each game and the prizes or credits to be awarded;

79-8

      (5) Financial reporting procedures for licensed video lottery retailers and control

79-9

procedures in the event that any of these retailers should become insolvent;

79-10

      (6) Insurance and bonding by:

79-11

      (i) Licensed video lottery retailers; and

79-12

      (ii) Technology provider;

79-13

      (7) The licensing of licensed video lottery retailers;

79-14

      (8) The contracting with technology providers;

79-15

      (9) All video lottery machines shall be linked under a central communications system to

79-16

provide auditing program information as approved by the division. The communications system

79-17

approved by the division may not limit participation to only one manufacturer of video lottery

79-18

machines by either cost of implementing the necessary program modifications to communicate or

79-19

the inability to communicate with the central communication system;

79-20

      (10) Establishment of information system, operating procedures, reporting and

79-21

accounting criteria in order to comply with the provisions of section 42-61.2-12; and

79-22

      (11) Any other matters necessary for video lottery terminals or for the convenience of

79-23

the public.

79-24

     SECTION 16. Chapter 42-28 of the General Laws entitled "State Police" is hereby

79-25

amended by adding thereto the following section:

79-26

     42-28-51. Gaming enforcement unit. – (a) The superintendent shall establish a gaming

79-27

enforcement unit within the division.

79-28

     (b) The unit shall work in conjunction and in cooperation with the division of state lottery

79-29

in investigations and enforcement of casino gaming laws and regulations to ensure the efficient,

79-30

efficacious, and thorough regulation and control of casino gaming activities and operations.

79-31

     (c) The superintendent shall assign such supervisory and investigative personnel and

79-32

other resources to the gaming enforcement unit as may be necessary to fulfill its obligations under

79-33

this section.

80-34

     (d) The unit’s responsibilities shall include, but not be limited to, the investigation of

80-35

compliance with all casino gaming laws, rules and regulations promulgated thereto, and

80-36

operations under the division of state lottery’s jurisdiction and the investigation of criminal

80-37

activity related to casino gaming.

80-38

     (e) Each licensee or applicant for a license under chapter 42-6.10 shall cooperate with the

80-39

unit in the performance of its duties.

80-40

     (f) No person assigned to the unit, other than in the performance of official duties, shall

80-41

place a wager in a casino gaming facility licensed by the division of state lottery.

80-42

     (g) The superintendent shall establish a program to rotate persons in and out of the unit.

80-43

     (h) The unit’s operations shall be initially funded by the reimbursement provided by

80-44

section 42-61.10-5 and during subsequent fiscal years shall be funded by the fees paid by

80-45

licensees pursuant to section 42-61.10-6.

80-46

     SECTION 17. Chapter 42-61 of the General Laws entitled "State Lottery" is hereby

80-47

amended by adding thereto the following section:

80-48

     42-61-19. Collection of and accounting for racing taxes. -- The division shall exercise

80-49

all the powers and duties prescribed by chapters 3, 4, and 5 of this title, and all subsequent acts in

80-50

amendment thereof and in addition thereto, relating to the collection of and accounting for racing

80-51

taxes and fees heretofore performed by the commission on horseracing.

80-52

     SECTION 18. Title 42 of the General Laws entitled "STATE AFFAIRS AND

80-53

GOVERNMENT" is hereby amended by adding thereto the following chapters:

80-54

     CHAPTER 61.3

80-55

HORSERACING

80-56

     42-61.3-1. License required for racing. – No person, association, or corporation shall

80-57

hold or conduct any meeting within the state where horseracing shall be permitted for any stake,

80-58

purse, or reward, except such person, association, or corporation as shall be licensed by the

80-59

division of state lottery as provided in this chapter, and after an affirmative vote of the qualified

80-60

electors as provided in chapter 61.9 of this title.

80-61

     42-61.3-2. Town or city election on establishment of track. – Before a horseracing

80-62

track shall be established in any town or city, the approval of the question as is required by

80-63

chapter 61.9 of this title shall be necessary, and if consent be thus given, all further regulations

80-64

shall rest with the division of state lottery.

80-65

     42-61.3-3. Classes of licenses. – The division of state lottery shall be empowered to

80-66

license race meets under the following classes:

80-67

     (1) Class A. Horse running races, so-called.

81-68

     (2) Class B. Competitive harness horse races, which are run in connection with the grand

81-69

circuit, so-called.

81-70

     (3) Class C. Competitive harness horse races, which are not run in connection with the

81-71

grand circuit, so-called.

81-72

     (4) Class D. Competitive horse races where there is no wagering.

81-73

     (5) Class E. Harness racing by any incorporated association duly authorized to maintain

81-74

agricultural exhibits.

81-75

     42-61.3-4. Application for license – Action by division. – (a) Any person, association,

81-76

or corporation desiring to conduct horseracing within this state shall apply to the division of state

81-77

lottery for a license on forms provided by the division. The application shall specify the days on

81-78

which horseracing is to be conducted, the location of the horseracing, and such other information

81-79

as may be required by the division.

81-80

     (b) The division may also require any person, association, or corporation to give

81-81

information as to financial standing and credit. Any background investigations conducted as part

81-82

of the license application shall be requested from the division of gaming enforcement and shall be

81-83

subject to the provisions of chapter 9.4 of this title. The division shall have the right to reject any

81-84

applications for a license for any cause, which it may deem sufficient, and the action of the

81-85

division both as to the license and the date or award shall be final, subject to the right of appeal

81-86

provided by chapter 35 of this title.

81-87

     (c) The division shall, as far as practicable, avoid conflicts in the dates assigned or

81-88

awarded for horseracing in the state.

81-89

     42-61.3-5. Award of dates for class A racing. – The application for a Class A license

81-90

shall be filed on or before the fifteenth (15th) day of February in any year and the division of state

81-91

lottery having considered the applications, shall on or before the first (1st) day of April in any

81-92

year, assign or award all dates for racing within the state for the current year; provided, however,

81-93

that the division in its discretion, may receive applications at a later date and may change the

81-94

assignment or award if in its judgment the change is found necessary, but prior to making the

81-95

change it shall print a public notice in the newspapers and shall give the party aggrieved by the

81-96

change an opportunity to be heard.

81-97

     42-61.3-6. Renewal of class A licenses. – Class A licenses when granted shall be

81-98

renewable at the option of the licensee for a period of ten (10) years, provided the licensee

81-99

complies with the provisions of this chapter and chapter 4 of this title.

81-100

     42-61.3-7. Rebate of license fees. – If by any reason or cause beyond the control of and

81-101

through no fault or neglect of any licensee and while the licensee is not in default, it should

81-102

become impossible or impracticable to conduct horseracing upon any day or days licensed by the

82-1

division of state lottery, at the request of the licensee and upon sworn statements, submitted in

82-2

writing by the licensee, the division may rebate all or part of the license fee.

82-3

     42-61.3-8. Licensing of owners, trainers, jockeys, and other personnel. – The division

82-4

of state lottery at its discretion shall license owners, trainers, jockeys, starters, exercise boys,

82-5

hotwalkers, grooms, and all other stable personnel as well as pari-mutuel employees,

82-6

concessioners and vendors, security personnel, licensees, employees, pari-mutuel totalizator

82-7

companies and its employees, and all employees of racetrack management.

82-8

     42-61.3-8.1. Licensing of concessionaires, vendors, pari-mutuel totalizator

82-9

companies, and employees. – (a) All persons, firms, partnerships, associations, or corporations

82-10

desiring to operate any concession allied to any horseracing track, shall apply for a license to the

82-11

division of state lottery, on such forms and in such a manner as prescribed by regulations of the

82-12

division. The division, by regulation, shall establish other occupational licensing for all

82-13

employees of the concessions, all pari-mutuel employees, and all persons employed in any other

82-14

capacity by the racetrack management, and for other persons engaged in racing activities at any

82-15

horseracing track.

82-16

     (b) All persons, firms, associations, or corporations employed by the management of a

82-17

horseracing track in providing pari-mutuel totalizator computer services for pari-mutuel

82-18

computations, shall apply for a license to the division of state lottery upon such forms and in such

82-19

manner as prescribed by regulations of the division. All employees of the pari-mutuel totalizator

82-20

computer companies shall be licensed by the division on forms prescribed by regulations of the

82-21

division.

82-22

     (c) In determining whether to grant a license pursuant to this section, the division of state

82-23

lottery may require the applicant to submit information as to: financial standing and credit; moral

82-24

character; criminal record, if any; previous employment; corporate, partnership or association

82-25

affiliations; ownership of personal assets; and such other information as it deems pertinent to the

82-26

issuance of the license. The division may reject for good cause an application for a license, and it

82-27

may suspend or revoke for good cause any license issued by it after a hearing held in accordance

82-28

with chapter 35 of title 42.

82-29

     (d) The issuance of a license and the payment of annual fees shall be in accordance with

82-30

the following schedule:

82-31

     (1) Concessionaire and vendors one hundred dollars ($100)

82-32

     (2) Occupational license:

82-33

     (i) Owners five dollars ($5.00)

83-34

     (ii) Trainers five dollars ($5.00)

83-35

     (iii) Jockeys five dollars ($5.00)

83-36

     (iv) Apprentice jockeys five dollars ($5.00)

83-37

     (v) Authorized agents five dollars ($5.00)

83-38

     (vi) Starters five dollars ($5.00)

83-39

     (vii) Stable employees five dollars ($5.00)

83-40

     (viii) Assumed names ten dollars ($10.00)

83-41

     (ix) Colors five dollars ($5.00)

83-42

     (3) Vendors and concessionaires' employees five dollars ($5.00)

83-43

     (4) Pari-mutuel employees five dollars ($5.00)

83-44

     (5) Employees of race track management five dollars ($5.00)

83-45

     (6) Pari-mutuel totalizator company one hundred dollars ($100)

83-46

     (7) Pari-mutuel totalizator company employees five dollars ($5.00)

83-47

     (e) All individual applicants for licensing under this section shall be fingerprinted, and

83-48

upon obtaining the license, shall wear upon his or her outer apparel a photo identification badge,

83-49

issued or authorized by the division of athletics under rules and regulations promulgated by the

83-50

division.

83-51

     42-61.3-9. Rules as to betting and track operation -- Deputies. – The division of state

83-52

lottery may make rules and regulations governing the operation of the tracks and stables. The

83-53

division may make rules regulating betting at the horseracing events. The division may, at its

83-54

discretion, appoint deputies, not exceeding twenty-two (22), to perform such duties as the rules

83-55

and regulations of the division may require.

83-56

     42-61.3-9.1. Admittance in stable enclosure. – (a) No person shall enter the stable

83-57

enclosure of a licensee of thoroughbred horses kept for a racing meeting without first obtaining

83-58

the proper photo identification or permission in writing from the designated track security

83-59

authority.

83-60

     (b) Any person violating this section shall be guilty of a misdemeanor punishable by a

83-61

fine up to one hundred dollars ($100) or a jail sentence of up to thirty (30) days or both for the

83-62

first (1st) offense, and the second (2nd) and subsequent offense shall be punishable by a fine up to

83-63

two hundred ($200) dollars or up to ninety (90) days in jail or both.

83-64

     (c) This section shall not apply to any police officer or firefighter in the exercise of his or

83-65

her lawful duty.

83-66

     42-61.3-10. Accounting methods. – The division of state lottery shall have the power to

83-67

require that the books and financial or other statements of any person, corporation, or association

83-68

licensed under the provisions of this chapter shall be kept in any manner which to the division

84-1

may seem best, and the division shall also be authorized to visit, to investigate, and to place

84-2

expert accountants and such other persons as it may deem necessary, in the offices, tracks, or

84-3

places of business of any person, corporation, or association, for the purpose of satisfying itself

84-4

that the division's rules and regulations are strictly complied with.

84-5

     42-61.3-11. Employees of licensees. – The division of state lottery may at any time for

84-6

cause require the removal of any employee or official employed by any licensee hereunder.

84-7

     42-61.3-12. Compelling production of records. – The division of state lottery shall have

84-8

power to compel the production of any and all books, memoranda, or documents showing the

84-9

receipts and disbursements of any person, corporation, or association licensed under the

84-10

provisions of this chapter to conduct race meetings.

84-11

     42-61.3-13. Witnesses before division. – The division of state lottery shall have power

84-12

to summon witnesses before it and to administer oaths or affirmations to the witnesses whenever,

84-13

in the judgment of the division, it may be necessary for the effectual discharge of its duties; and

84-14

any person failing to appear before the division at the time and place specified in answer to the

84-15

summons, or refusing to testify, shall be guilty of a misdemeanor and, upon conviction in a court

84-16

of competent jurisdiction, shall be punished by a fine of not more than five hundred dollars

84-17

($500) or by a sentence to the adult correctional institutions for not more than six (6) months, or

84-18

by a sentence to both a fine and imprisonment, in the judgment of the court. False swearing on the

84-19

part of any witnesses shall be deemed perjury, and shall be punished as perjury.

84-20

     42-61.3-14. Suspension or revocation of license. – Any license granted under the

84-21

provisions of this chapter shall be subject to the rules and regulations set forth by the division of

84-22

state lottery, and shall be subject to suspension or revocation for any cause which the division

84-23

shall deem sufficient, after giving the licensee a reasonable opportunity for a hearing at which he

84-24

or she shall have the right to be represented by counsel. If any license is suspended or revoked,

84-25

the division shall state the reasons for the suspension or revocation and cause an entry of the

84-26

reasons to be made on the record books of the division.

84-27

     42-61.3-15. Penalty for unauthorized racing. – Any person aiding or abetting in the

84-28

conduct of any meeting within this state at which racing of horses shall be permitted for any

84-29

stake, purse, or reward, except in accordance with a license duly issued and unsuspended or

84-30

unrevoked by the division of state lottery, shall be guilty of a misdemeanor, and upon conviction,

84-31

shall be punished by a fine of not more than five hundred dollars ($500) for each day of the

84-32

unauthorized meeting or by imprisonment for not exceeding six (6) months, or both a fine and

84-33

imprisonment, in the discretion of the court.

85-34

     42-61.3-16. Municipal taxation of tracks. – No fee, tax, or other emolument shall be

85-35

exacted by any city or town for the use of track or events conducted thereon under the provisions

85-36

of this chapter, and the right to establish any fees, taxes, or other emoluments shall rest with the

85-37

division of state lottery in accordance with law; provided, however, that nothing in this chapter or

85-38

chapter 61.5 of this title contained shall be construed to prevent any city or town from assessing

85-39

and collecting taxes upon the real and personal property used by or in connection with any racing

85-40

track.

85-41

     42-61.3-17. Ejection of undesirable persons – Rights of licensee. – Any licensee under

85-42

this chapter shall have the right to refuse admission to and to eject from the enclosure of any pari-

85-43

mutuel facility where a pari-mutuel meeting licensed under the provisions of this chapter, is being

85-44

held, any person or persons whose presence within the enclosure is, in the sole judgment of the

85-45

licensee, its agents, or servants, undesirable.

85-46

     42-61.3-18. Penalty for refusing to leave. – Any person or persons within the enclosure

85-47

deemed undesirable by the licensee, its agents, or servants or who has been ordered to leave or

85-48

who has been previously ejected, shall, upon refusal to leave, be guilty of a misdemeanor, and

85-49

upon conviction thereof, be punished by a fine of not more than one hundred dollars ($100) or

85-50

imprisoned for not more than one year or both.

85-51

     42-61.3-19. Severability. – The invalidity of any sections or parts of any section or

85-52

sections of this chapter of this title shall not affect the validity of the remainder of the chapters.

85-53

     42-61.3-20. Majority of directors of licensee to be residents. – The majority of the

85-54

membership of the board of directors of any corporation licensed to hold or conduct any meeting

85-55

within the state where horseracing shall be permitted for any stake, purse, or reward, shall be

85-56

residents of the state.

85-57

     42-61.3-21. Chemical test. – There shall be administered to the first three (3) finishers

85-58

and to the last finisher of every horse race, the appropriate chemical test authorized by the

85-59

division of state lottery.

85-60

     CHAPTER 61.4

85-61

DOG RACING IN BURRILLVILLE, LINCOLN, AND WEST GREENWICH

85-62

     42-61.4-1. Operation of dog racing facilities. – Any person desiring to operate a facility

85-63

for the exhibition of the sport called dog racing in the towns of Burrillville, Lincoln, and West

85-64

Greenwich, may do so upon the compliance with the terms and provisions of this chapter and

85-65

pursuant to the provisions of chapter 61.9 of this title.

85-66

     42-61.4-2. “Sports facilities” defined. – The words "sports facilities" as used in this

85-67

chapter, means a building or enclosure in which dog racing is conducted.

86-68

     42-61.4-3. Regulation of operations. – (a) The division of state lottery is hereby

86-69

authorized to license dog racing in the towns of Burrillville, Lincoln, and West Greenwich. The

86-70

operation of a dog track shall be under the division's supervision. The division is hereby

86-71

authorized to issue rules and regulations for the supervision of the operations, and the regulations

86-72

are to be issued prior to commencement of licensing hearings.

86-73

     (b) Any license granted under the provisions of this chapter shall be subject to the rules

86-74

and regulations promulgated by the division and shall be subject to suspension or revocation for

86-75

any cause which the division shall deem sufficient after giving the licensee a reasonable

86-76

opportunity for a hearing at which he or she shall have the right to be represented by counsel. If

86-77

any license is suspended or revoked, the division shall state the reasons for the suspension or

86-78

revocation and cause an entry of the reasons to be made on the record books of the division.

86-79

     (c) The division shall be prohibited from licensing dog racing and/or the operation of a

86-80

dog track upon which dog racing occurs in the town of Lincoln. Any license having been issued

86-81

and in effect as of the effective date of this section shall be null and void and any licensee shall be

86-82

prohibited from operating thereunder; provided, however, that the following entities shall be

86-83

deemed pari-mutuel licensees as defined in section 42-61.2-1 et seq. and licensees as defined in

86-84

section 41-11-1 et seq.:

86-85

     (1) Any entity having been issued a license to operate a dog track prior to December 31,

86-86

2008; and

86-87

     (2) Any entity having been issued a license to operate a dog track prior to December 31,

86-88

2008 that after such date is reorganized under a confirmed plan of reorganization pursuant to

86-89

chapter 11 of title 11 of the United States Bankruptcy Code (11 U.S.C. sections 101 – 1532); and

86-90

provided, further, that in the case of a reorganized licensee under subdivision (2) above, its

86-91

application for a facility permit license is approved and issued by the department of business

86-92

regulation in the event of a proposed change in control of the entity. Nothing herein shall limit the

86-93

ability of the department of business regulation, in connection with a proposed change in control,

86-94

to investigate and subject to the regulatory due diligence process, any holder of an ownership

86-95

interest regardless of percentage of ownership held.

86-96

     42-61.4-4. Powers and duties of division of state lottery. – In addition to the other

86-97

powers conferred upon the division, the division of state lottery shall carry out the provisions of

86-98

this chapter, and to that end, the division may:

86-99

     (1) Personally or by agent, supervise and check the making of pari-mutuel pools and

86-100

wages and the distribution therefrom;

86-101

     (2) Fix and set the dates within which any dog track may be operated; provided, however,

86-102

there shall be at least one hundred twenty-five (125) days annually of the operation; and

87-1

     (3) Require any applicant for a permit to operate a dog track to file an application under

87-2

oath setting forth:

87-3

     (i) The full name of the person, firm, corporation, or association, and if a corporation, the

87-4

name of the state under which it is incorporated, as well as the names of the officers and directors

87-5

of the corporation, and their places of residences, or if an association, the name and residence of

87-6

the members of the association;

87-7

     (ii) The exact location where it is desired to operate a dog track;

87-8

     (iii) Whether or not the dog track is owned or leased, and if leased, the name, residence,

87-9

and address of the owners or lessees, or if the owner or lessee be a corporation, the name and

87-10

address of the officers and directors thereof;

87-11

     (iv) A statement of the assets and liabilities of the person, firm, corporation, or

87-12

association making application for the permit; and

87-13

     (v) Such other information as the division may require.

87-14

     42-61.4-5. Wages and pari-mutuel pools permitted within enclosure of dog track. –

87-15

The pari-mutuel system, so-called, or other form of betting system authorized by this chapter,

87-16

shall not be used or permitted at any location other than the race track at which the dog racing

87-17

event is licensed to be conducted.

87-18

     42-61.4-5.1. Sale or purchase of twin-double tickets. – The sale or purchase of twin-

87-19

double tickets or attempting to aid or abet in the sale or purchase of twin-double tickets through

87-20

solicitation of patrons attending, other than through pari-mutuel machines, is prohibited. Any

87-21

person violating the provisions of this section shall be denied admission to all dog tracks in the

87-22

state and may be prosecuted. Persons convicted of violating the provisions of this chapter shall be

87-23

punishable by a fine of not more than five hundred dollars ($500) or by imprisonment for up to

87-24

one year or both.

87-25

     42-61.4-6. Tax on betting and licensee’s commission. – (a) The commission of a

87-26

licensee on pari-mutuel pools and wagers shall be eighteen percent (18%) of the amount

87-27

contributed thereto:

87-28

     (1) After deducting the commission and the "breaks," hereafter defined, a pari-mutuel

87-29

pool shall be redistributed to the contributors. The licensee conducting such events pursuant to

87-30

this chapter shall pay a tax to the state of five and one-half percent (5.5%) of the amounts

87-31

contributed to the pari-mutuel pool. The licensee shall pay a tax of one-half of one percent (.5%)

87-32

of the pool to each city or town in which any portion of the racing facility, including parking

87-33

areas, storage areas, buildings, and entrances or exits to or from property being used in

87-34

conjunction with the operation of dog racing, is located.

88-1

     (b) Redistribution of funds otherwise distributable to the contributors to the pari-mutuel

88-2

pools shall be a sum equal to the next lowest multiple of ten (10).

88-3

     (c) No distribution of a pari-mutuel pool shall be made of the odd cents of any sum

88-4

otherwise distributable, which odd cents shall be known as the "breaks".

88-5

     (d) The "breaks" shall be known as the difference between the amount contributed to a

88-6

pari-mutuel pool and the total of the commission of the licensee and the sums actually

88-7

redistributed to the contributors.

88-8

     (e) No person or corporation shall directly or indirectly purchase pari-mutuel tickets or

88-9

participate in the purchase of any part of a pari-mutuel pool for another for hire or for any

88-10

gratuity, and no person shall purchase any part of a pari-mutuel pool, through another, wherein he

88-11

or she gives or pays directly or indirectly the other person anything of value, and any person

88-12

violating this section shall be fined the sum of five hundred dollars ($500) for each violation.

88-13

     42-61.4-7. Distribution of funds. – All money mentioned in this chapter derived from

88-14

taxes on wagers and pari-mutuel pools shall be disbursed by the state treasurer pursuant to

88-15

chapter 61.5 of this title. Except as is inconsistent therewith, the provisions of chapters 61.3 and

88-16

61.5 of this title shall apply to the sport of dog racing.

88-17

     42-61.4-8. Tax on breaks -- Distribution. – (a) A tax is hereby levied upon every pari-

88-18

mutuel pool conducted at the dog track, equal to fifty percent (50%) of the "breaks" as defined in

88-19

subsection 42-61.4-5(d).

88-20

     (b) It shall be the duty of every dog track licensee to pay unto the state treasurer the tax

88-21

hereby levied and the licensee shall be liable therefor.

88-22

     42-61.4-9. Severability. – If any provision of this chapter or the application thereof to

88-23

any person or circumstances is held invalid, the invalidity shall not effect other provisions or

88-24

applications, and to this end the provisions of this chapter are severable.

88-25

     42-61.4-10. Chemical test. – There shall be administered to one randomly selected

88-26

finisher, of every dog race, the appropriate chemical test authorized by the division of state

88-27

lottery. The department of revenue is authorized to establish by rule and regulation procedures

88-28

required for the chemical testing.

88-29

     42-61.4-11. Applications – Disclosure requirements. – Upon filing of an application(s)

88-30

to the department of revenue or the division of lotteries with respect to a pari-mutuel or video

88-31

lottery license, the department of business regulation and/or the division of state lottery with

88-32

respect to a pari-mutuel or video lottery license, the department of revenue and/or division of

88-33

state lottery, as the case may be, shall, upon a proper request made pursuant to chapter 2 of title

88-34

38 of the Rhode Island general laws entitled "access to public records", disclose the name,

89-1

business address and contact person of the person or entity filing such an application in

89-2

accordance with said chapter 2 of title 38. Any and all other personal or financial information

89-3

contained in such application(s) is expressly exempted from provisions of said chapter 2 of title

89-4

38 and is hereby deemed not to be a public record as defined therein.

89-5

     CHAPTER 61.5

89-6

MUTUEL BETTING AND LICENSEE FEES

89-7

     42-61.5-1. Meets at which betting authorized – Types of mutuels. – (a) The division of

89-8

state lottery may permit at racing events, licensed under the provisions of chapter 61.3 of this title

89-9

betting under pari-mutuel system, so-called, or auction mutuel system, so-called, except as

89-10

otherwise provided in this chapter.

89-11

     (b) Events run under Class A shall be conducted under the pari-mutuel system only.

89-12

     (c) Events run under Classes B, C, and E shall be conducted under the pari-mutuel or

89-13

auction mutuel system as the division may determine.

89-14

     42-61.5-2. Betting only at track – Minors prohibited. – The pari-mutuel system, so-

89-15

called, or other form of betting system authorized by this chapter, shall not be used or permitted

89-16

at any location other than the race track at which the horseracing event is licensed to be

89-17

conducted. No licensee shall knowingly permit any minor to be a patron of the pari-mutuel

89-18

system or other betting system authorized by this chapter.

89-19

     42-61.5-3. Tax on pari-mutuel betting. – (a) Each licensee conducting racing events

89-20

under the pari-mutuel system shall pay to the state, and there is hereby imposed:

89-21

     (1) A tax at the rate of three percent (3%) of the total money wagered on so-called

89-22

straight (win, place, or show) wagering on the events; and

89-23

     (2) A tax at the rate of six percent (6%) of the total money wagered on so-called exotic or

89-24

multiple forms of wagering on the events; and

89-25

     (3) A tax equal to one-half (1/2) of the breakage to the dime resulting from the wagering.

89-26

     (b) Each licensee conducting harness horseracing events under the pari-mutuel system

89-27

shall pay to the state, and there is hereby imposed:

89-28

     (1) A tax at the rate of five and one-half percent (5.5%) of so much of the total amount of

89-29

money wagered daily on such events as does not exceed four hundred thousand dollars

89-30

($400,000); six and three quarters percent (6.75%) of so much thereof as exceeds four hundred

89-31

thousand dollars ($400,000), but does not exceed four hundred and fifty thousand dollars

89-32

($450,000); seven and one quarter percent (7.25%) of so much thereof as exceeds four hundred

89-33

and fifty thousand dollars ($450,000), but does not exceed five hundred thousand dollars

89-34

($500,000); and ten percent (10%) of so much of the total amount of money wagered on such

90-1

events as exceeds five hundred thousand dollars ($500,000);

90-2

     (2) A tax equal to one-half (1/2) of the breakage to the dime resulting from the wagering.

90-3

     (c) Each licensee-conducting dog racing events under the pari-mutuel system shall pay to

90-4

the state, and there is hereby imposed, a tax on such events at the rate of:

90-5

     (1) Five and one-half percent (5.5%) of the first one hundred and fifty thousand dollars

90-6

($150,000) of money wagered daily; plus nine percent (9%) on amounts wagered from one

90-7

hundred and fifty thousand dollars ($150,000) to two hundred and fifty thousand dollars

90-8

($250,000); plus ten and one quarter percent (10.25%) on amounts wagered from two hundred

90-9

and fifty thousand dollars ($250,000) to three hundred and seventy-five thousand dollars

90-10

($375,000); plus ten and three quarters percent (10.75%) on amounts wagered over three hundred

90-11

and seventy-five thousand dollars ($375,000); and

90-12

     (2) One-half (1/2) of the breakage to the dime resulting from the wagering.

90-13

     42-61.5-4. Licensee’s commission under pari-mutuel system. – (a) Each licensee under

90-14

the pari-mutuel system may retain as the licensee's commission:

90-15

     (1) Not to exceed sixteen percent (16%) of the total amount of money wagered on so

90-16

called straight (win, place, or show) wagering on events; and

90-17

     (2) Not to exceed eighteen percent (18%) of the total amount of money wagered on so

90-18

called exotic or multiple forms of wagering on such events, and one-half (1/2) of the breakage to

90-19

the dime resulting from the wagering.

90-20

     (b) Each licensee conducting a harness horseracing meeting under the pari-mutuel system

90-21

may retain as the licensee's commission:

90-22

     (1) Not to exceed eleven and one-half percent (11.5%) of so much of the total amount of

90-23

money wagered daily on such events as does not exceed four hundred thousand dollars

90-24

($400,000); ten and one quarter percent (10.25%) of so much thereof as exceeds four hundred

90-25

thousand dollars ($400,000), but does not exceed four hundred and fifty thousand dollars

90-26

($450,000); nine and three quarters percent (9.75%) of so much thereof as exceeds four hundred

90-27

and fifty thousand dollars ($450,000), but does not exceed five hundred thousand dollars

90-28

($500,000); and seven percent (7%) of so much of the total amount of money wagered on such

90-29

events as exceeds five hundred thousand dollars ($500,000); and

90-30

     (2) One-half (1/2) of the breakage to the dime resulting from the wagering.

90-31

     (c) Each licensee-conducting dog racing events under the pari-mutuel system may retain

90-32

as the licensee's commission an amount not to exceed:

90-33

     (1) Eleven and one-half percent (11.5%) of the first one hundred and fifty thousand

90-34

dollars ($150,000) of money wagered daily; plus eight percent (8%) on amounts wagered from

91-1

one hundred and fifty thousand dollars ($150,000) to two hundred and fifty thousand dollars

91-2

($250,000); plus six and three quarters percent (6.75%) on amounts wagered from two hundred

91-3

and fifty thousand dollars ($250,000) to three hundred and seventy-five thousand dollars

91-4

($375,000); plus six and one quarter percent (6.25%) on amounts wagered over three hundred and

91-5

seventy-five thousand dollars ($375,000); and

91-6

     (2) One-half (1/2) of the breakage to the dime resulting from the wagering.

91-7

     42-61.5-4.1. Support of racing division activities -- Tax. – (a) Notwithstanding the

91-8

provisions of section 42-61.5-3 or section 42-61.3.1-6 each licensee conducting racing events

91-9

under the pari-mutuel system shall collect an additional five percent (5%) of all money wagered

91-10

on the multiple pools at racing tracks. "Multiple pools" shall be defined as all forms of wagering

91-11

other than win, place, and show. This five percent (5%) tax shall be over and above the schedule

91-12

of taxes as set forth in section 42-61.5-3, and shall be distributed as follows:

91-13

     (1) One and one-half percent (1.5%) shall be paid to the department of revenue and these

91-14

proceeds shall be deposited as general revenue.

91-15

     (2) One-half of one percent (0.5%) shall be paid to owners of dog kennels who are under

91-16

contract with a licensee who shall distribute funds to the owners of dog kennels in a manner

91-17

consistent with the generally accepted distribution of dog kennel owners' purses subject to an

91-18

annual audit by the auditor general or his or her designee.

91-19

     (3) One and one-half percent (1.5%) shall be paid to the licensee provided that there is at

91-20

least three hundred forty (340) scheduled performances during the calendar year.

91-21

     (4) One and one-half percent (1.5%) shall be paid to the state and revert to the general

91-22

fund.

91-23

     (b) Notwithstanding the provisions of section 42-61.4-5 each licensee conducting racing

91-24

events under the pari-mutuel system shall collect an additional four percent (4%) of all moneys

91-25

wagered on so called straight (win, place, or show) wagering. This four percent (4%) tax shall be

91-26

over and above the schedule of taxes as set forth in section 41-3.1-6, and shall be distributed as

91-27

follows:

91-28

     (1) One percent (1%) shall be paid to the town of Lincoln; and

91-29

     (2) One percent (1%) shall be paid to owners of dog kennels who are under contract with

91-30

a licensee who shall distribute funds to the owners of dog kennels in a manner consistent with the

91-31

generally accepted distribution of dog kennel owners' purses subject to an annual audit by the

91-32

auditor general or his or her designee.

91-33

     (3) Two percent (2%) shall be paid to the state and revert to the general fund.

92-34

     42-61.5-5. Taxes and license fees under auction mutuel system. – If events are

92-35

conducted under the auction mutuel system the following taxes and license fees are hereby

92-36

imposed:

92-37

     (1) As to Class B events, a tax of two percent (2%) of the total amount of money wagered

92-38

and also a license fee of two hundred dollars ($200) per day;

92-39

     (2) As to Class C events, a tax of one and one-half percent (1.5%) of the total amount of

92-40

money wagered and also a license fee of fifty dollars ($50.00) per day;

92-41

     (3) As to Class E events, a tax of one percent (1%) of the total amount of money wagered

92-42

and also a license fee of twenty dollars ($20.00) per day.

92-43

     42-61.5-6. Licensee’s commission under auction mutuel system. – Each licensee under

92-44

the auction mutuel system may retain, as the licensee's commission, not to exceed five percent

92-45

(5%) of the total amount of money wagered.

92-46

     42-61.5-7. Class D license fee. – Events run under Class D shall pay a fee not exceeding

92-47

ten dollars ($10.00) per day; provided, however, that no wagering of any sort shall be allowed at

92-48

the events.

92-49

     42-61.5-8. Collection of taxes – Interest on delinquencies –Failure to pay on demand.

92-50

The tax administrator shall assess and collect the taxes imposed by this chapter under such rules

92-51

and regulations as he or she may prescribe. All taxes hereby imposed shall be due and payable at

92-52

the close of each day's racing and any tax not paid upon demand of the tax administrator shall

92-53

bear interest at the rate of six percent (6%) per annum from the time of the demand. Failure to pay

92-54

any tax upon demand shall be cause for revocation of a license.

92-55

     42-61.5-9. Accounting system – Supervision of betting. – The division of state lottery

92-56

shall devise a system of accounting and shall supervise betting at a track in a manner so that the

92-57

rights of the state are protected, and shall collect all fees and licenses under such rules and

92-58

regulations as it shall prescribe.

92-59

     42-61.5-9.1. Licensing of concessionaires, vendors, and pari-mutuel totalizator

92-60

companies. – (a) All persons, firms, partnerships, associations, or corporations desiring to

92-61

operate any concession allied to any dog racing track, shall apply for a license to the division of

92-62

state lottery, on such forms and in such a manner as prescribed by regulations of the division. The

92-63

division by regulations shall establish other occupational licensing for all employees of the

92-64

concessions, all pari-mutuel employees, and all persons employed in any other capacity by the

92-65

racetrack management, and for other persons engaged in racing activities at any dog-racing track.

92-66

     (b) All persons, firms, associations, or corporations employed by the management of a

92-67

dog racing track in providing pari-mutuel totalizator computer services for pari-mutuel

92-68

computations, shall apply for a license to the division of state lottery upon such forms and in such

93-1

manner prescribed by regulations of the division. All employees of the pari-mutuel totalizator

93-2

computer companies shall be licensed by the division on forms prescribed by regulations of the

93-3

division.

93-4

     (c) In determining whether to grant a license pursuant to this section the division may

93-5

require the applicant to submit information as to: financial standing and credit; moral character;

93-6

criminal record, if any; previous employment; corporate, partnership or association affiliations;

93-7

ownership of personal assets; and such other information as it deems pertinent to the issuance of

93-8

the license. The division may reject for good cause an application for a license, and it may

93-9

suspend or revoke for good cause any license issued by it after a hearing held in accordance with

93-10

chapter 35 of title 42 and subject to further appeal procedures provided by section 41-2-3.

93-11

     (d) The division shall issue a three (3) year license commencing with license year 2007.

93-12

The division shall implement a graduated system in 2007 where one-third (1/3) of licenses due to

93-13

expire shall be renewed for one year, a second one-third (1/3) of licenses due to expire shall be

93-14

renewed for two (2) years, and the final one-third (1/3) of licenses due to expire shall be renewed

93-15

for three (3) years, with licensing fees prorated accordingly. As said licenses become due for

93-16

renewal, licenses shall be renewed for a three (3) year period of time. All licenses issued shall be

93-17

in accordance with regulations and the following schedule:

93-18

     (1) For gaming facility employees:

93-19

     (i) Key employees three hundred dollars ($300);

93-20

     (ii) Operation employees one hundred fifty dollars ($150);

93-21

     (iii) Service employees seventy-five dollars ($75.00);

93-22

     (2) For gaming facility non-employees:

93-23

     (i) Concessionaires and vendors: seven hundred fifty dollars ($750);

93-24

     (3) Occupational licenses:

93-25

     (i) Owners four hundred fifty dollars ($450);

93-26

     (ii) Trainers one hundred fifty dollars ($150);

93-27

     (iii) Assumed names one hundred fifty dollars ($150);

93-28

     (iv) Kennel people seventy-five dollars ($75.00);

93-29

     (4) Concessionaire and vendor's employees seventy-five dollars ($75.00);

93-30

     (5) Pari-mutuel totalizator companies seven hundred fifty dollars ($750); and

93-31

     (6) Pari-mutuel totalizator company employees one hundred fifty dollars ($150).

93-32

     (e) All individual applicants for licensing under this section shall be fingerprinted, and,

93-33

upon obtaining the license, shall wear upon his or her outer apparel a photo identification badge,

93-34

issued or authorized by the division of state lottery under rules and regulations promulgated by

94-1

the division.

94-2

     (f) The cost of the licensing pursuant to this section shall be paid by the employer of the

94-3

licensee, and shall include one hundred and fifty percent (150%) of the total salaries and benefits

94-4

for the state employees engaged in the licensing at each facility. The fund shall be deposited as

94-5

restricted receipts for the use of the state and shall be in addition to any taxes and fees otherwise

94-6

payable to the state.

94-7

     42-61.5-10. Unclaimed winnings. – The amount of unclaimed money, as determined by

94-8

the division of state lottery, now held or which shall hereafter be held by any licensee, on account

94-9

of outstanding and un-cashed winning tickets shall, at the expiration of one year after the close of

94-10

the meeting during which the tickets were issued, be collected forthwith from the licensee by the

94-11

division and shall be paid over to the general treasurer for the use of the state and all unclaimed

94-12

money shall be held in an escrow account by the licensee until collected by the division.

94-13

     42-61.5-11. Entry of premises for inspection of operations. – The division of state

94-14

lottery may authorize members of the division or duly authorized deputies to enter upon the

94-15

premises at any racing event for the purpose of inspecting books and records, supervising and

94-16

examining cashiers, ticket sellers, pool sellers, and other persons handling money at the event and

94-17

such other supervision as may be necessary for the maintenance of order at the event.

94-18

     42-61.5-12. Monthly statement of receipts – Payments to treasurer. – The division of

94-19

state lottery shall, on or before the tenth (10th) day of each month, prepare and file with the

94-20

general treasurer a full and complete statement of its receipts from all sources, and shall turn over

94-21

to the general treasurer all moneys in its possession.

94-22

     42-61.5-13. Dog racing – Distribution of pari-mutuel pool to communities where

94-23

tracks located. – After deducting the commission and the "breaks," as required by law, a pari-

94-24

mutuel pool shall be redistributed to the contributors. The licensee of a dog track shall pay a tax

94-25

to the state of five and one-half percent (5.5%) of the amounts contributed to the mutuel pool.

94-26

The licensee shall pay a tax of one-half of one percent (.5%) of such pool to each city or town

94-27

within whose borders the racing facility or any portion thereof, including parking areas, storage

94-28

areas, buildings, and entrances or exits to or from the property being used in conjunction with the

94-29

operation of dog racing, is located.

94-30

     42-61.5-13.1. Local approval. – Section 42-61.5-14 shall take effect upon the approval

94-31

of the voters of any city or town voting on the question allowing the sport of dog racing, subject,

94-32

however, to an affirmative vote as provided in chapter 61.9 of this title.

94-33

     CHAPTER 61.6

94-34

JAI ALAI

95-1

     42-61.6-1. Operations of jai alai sports facilities. – Any person desiring to operate a

95-2

facility for the exhibition of the Spanish sport called jai alai in the city of Newport may do so

95-3

upon the compliance with the terms and provisions of this chapter.

95-4

     42-61.6-2. “Sports facilities” and “frontons” defined. – The words "sports facilities"

95-5

and "fronton" as used in this chapter mean a building or enclosure in which is provided a playing

95-6

court with three (3) walls so designed and constructed for the playing of that sports game of ball

95-7

as played in Spanish speaking countries, called jai alai or pelota.

95-8

     42-61.6-3. Regulation of operations -- Licensing. – (a) The division of state lottery is

95-9

hereby authorized to license jai alai in the city of Newport. The operation of a fronton shall be

95-10

under the division's supervision. The division is hereby authorized to issue rules and regulations

95-11

for the supervision of the operations.

95-12

     (b) Any license granted under the provisions of this chapter shall be subject to the rules

95-13

and regulations promulgated by the division of state lottery and shall be subject to suspension or

95-14

revocation for any cause which the division shall deem sufficient after giving the licensee a

95-15

reasonable opportunity for a hearing at which he or she shall have the right to be represented by

95-16

counsel. If any license is suspended or revoked, the division shall state the reasons for the

95-17

suspension or revocation and cause an entry of the reasons to be made on the record books of the

95-18

division.

95-19

     (c) Commencing July 1, 2013, the division of state lottery shall be permitted to license jai

95-20

alai in the city of Newport. Any license having been issued and in effect as of that date shall be

95-21

null and void and any licensee shall be prohibited from operating thereunder; provided, however,

95-22

that any entity having been issued a license to operate a jai alai fronton prior to July 1, 2013 shall

95-23

be deemed a pari-mutuel licensee as defined in section 42-61.5-1 et seq., and a licensee as defined

95-24

in section 42-61.8-1 et seq.

95-25

     42-61.6-4. Power and duties of the division of state lottery. – In addition to the other

95-26

powers conferred upon the division of state lottery, the division shall carry out the provisions of

95-27

this chapter, and to that end, the division may:

95-28

     (1) Personally or by agent, supervise and check the making of pari-mutuel pools and

95-29

wagers and the distribution therefrom;

95-30

     (2) Fix and set the dates within which any fronton may be operated; provided, however,

95-31

there shall be at least one hundred (100) days annually of the operation; and

95-32

     (3) Require any applicant for a permit to operate a fronton to file an application under

95-33

oath setting forth:

96-34

     (i) The full name of the person, firm, corporation, or association, and if a corporation, the

96-35

name of the state under which it is incorporated, as well as the names of the officers, directors,

96-36

and stockholders of the corporation, and their places of residence, or if an association, the name

96-37

and residence of the members of the association;

96-38

     (ii) The exact location where it is desired to operate a fronton exhibiting the Spanish sport

96-39

jai alai or pelota;

96-40

     (iii) Whether or not the fronton is owned or leased, and if leased, the name, residence,

96-41

and address of the owners or lessees, or if the owner or lessee be a corporation, the name and

96-42

address of the officers, directors, and stockholders thereof;

96-43

     (iv) A statement of the assets and liabilities of the person, firm, corporation, or

96-44

association making application for the division permit;

96-45

     (v) Such other information as the division may require.

96-46

     42-61.6-5. Wagers and pari-mutuels pools permitted within enclosure of fronton. –

96-47

Within the enclosure of any fronton licensed and conducted under this chapter but not elsewhere,

96-48

wagering on the respective scores or points of the game of jai alai or pelota and the sale of pari-

96-49

mutuel pools under such regulation as the division of state lottery shall prescribe, are hereby

96-50

authorized and permitted, including, but not limited to, those forms of wagering known as daily

96-51

double, perfecta, quinella, and trifecta.

96-52

     42-61.6-5.1. Sale or purchase of twin-double tickets. – The sale or purchase of twin-

96-53

double tickets or attempting to aid or abet in the sale or purchase of twin-double tickets through

96-54

solicitation of patrons attending, other than through pari-mutuel machines, is prohibited. Any

96-55

person violating the provisions of this section shall be denied admission to the fronton and may

96-56

be prosecuted. Persons convicted of violating the provisions of this section shall be punished by a

96-57

fine of not more than five hundred dollars ($500) or by imprisonment for up to one year or both.

96-58

     42-61.6-6. Tax on betting and licensee’s commission. – (a) The commission of a

96-59

licensee on pari-mutuel pools and wagers shall be twenty and one-half percent (20.5%) of the

96-60

amount contributed thereto. After deducting the commission and the "breaks," hereafter defined,

96-61

a pari-mutuel pool shall be redistributed to the contributors. The licensee conducting events

96-62

pursuant to this chapter shall pay a tax to the state of three percent (3%) of annual amounts

96-63

contributed to mutuel pools up to eighteen million dollars ($18,000,000) of total handle. The

96-64

Rhode Island tax shall increase one-half of one percent (.5%) for the next incremental increase of

96-65

two million dollars ($2,000,000), and one-half of one percent (.5%) for each incremental increase

96-66

of one million dollars ($1,000,000), thereafter, in the total annual pool up to a maximum of five

96-67

percent (5%). The licensee shall pay a tax of one percent (1%) of the pool to the city of Newport

96-68

and the tax administrator/collector or equivalent for the city of Newport shall assess and collect

97-1

the taxes imposed by this section with respect to the city of Newport under such rules and

97-2

regulations as he or she may prescribe. All taxes hereby imposed shall be due and payable at the

97-3

close of each day's activities, and any tax not paid upon demand of the tax administrator/collector

97-4

shall bear interest at the rate of six percent (6%) per annum for the time of the demand. Failure to

97-5

pay any tax upon demand shall be cause for revocation of a license.

97-6

     (b) Redistributions of funds otherwise distributable to the contributors to the pari-mutuel

97-7

pools shall be a sum equal to the next lowest multiple of ten (10).

97-8

     (c) No distribution of a pari-mutuel pool shall be made of the odd cents of any sum

97-9

otherwise distributable, which odd cents shall be known as the "breaks."

97-10

     (d) The "breaks" shall be known as the difference between the amount contributed to a

97-11

pari-mutuel pool and the total of the commission of the licensee and the sums actually

97-12

redistributed to the contributors.

97-13

     (e) No person or corporation shall directly or indirectly purchase pari-mutuel tickets or

97-14

participate in the purchase of any part of a pari-mutuel pool for another for hire or for any gratuity

97-15

and no person shall purchase any part of a pari-mutuel pool through another, wherein he or she

97-16

gives or pays directly or indirectly the other person anything of value, and any person violating

97-17

this section shall be fined the sum of five hundred dollars ($500) for each violation.

97-18

     42-61.6-7. Distribution of funds – Applicability of chapter 61.3 and 61.5 of this title.

97-19

All money mentioned in this chapter derived from taxes on wagers and pari-mutuel pools shall

97-20

be disbursed by the state treasurer pursuant to chapter 61.5 of this title. Except as is inconsistent

97-21

with this chapter the provisions of chapters 61.3 and 61.5 of this title shall apply to the sport of jai

97-22

alai.

97-23

     42-61.6-8. Tax on breaks -- Distribution. – (a) A tax is hereby levied upon every pari-

97-24

mutuel pool conducted at the fronton for the exhibition of the Spanish ball game known as jai alai

97-25

or pelota in Newport authorized by law so to do, equal to fifty percent (50%) of the "breaks" as

97-26

defined in the above.

97-27

     (b) It shall be the duty of every fronton licensee to pay unto the state treasurer the tax

97-28

hereby levied and the licensee shall be liable therefor.

97-29

     42-61.6-9. Leases of city properties. – The city of Newport is hereby authorized to enter

97-30

into a lease of city property for a period not to exceed thirty-five (35) years with an application to

97-31

the division of state lottery for a license to conduct jai alai or pelota.

97-32

     42-61.6-10. Licensing of concessionaires, vendors, pari-mutuel totalizator

97-33

companies. – (a) All persons, firms, partnerships, associations, or corporations desiring to

97-34

operate any concession allied to any fronton, shall apply for a license to the division of state

98-1

lottery, on such forms and in such a manner as prescribed by regulations. The division by

98-2

regulations shall establish other occupational licensing for all employees of the concessions, all

98-3

pari-mutuel employees, and all persons employed in any other capacity by the fronton

98-4

management.

98-5

     (b) All persons, firms, partnerships, associations, or corporations employed by the

98-6

fronton management in providing pari-mutuel totalizator computer services for pari-mutuel

98-7

computations, shall apply for a license to the division of state lottery upon such forms and in such

98-8

manner as prescribed by regulations of the division. All employees of the pari-mutuel totalizator

98-9

computer companies shall be licensed by the division on forms prescribed by regulations of the

98-10

division.

98-11

     (c) In determining whether to grant a license pursuant to this section the division of state

98-12

lottery may require the applicant to submit information as to:

98-13

     (1) Financial standing and credit;

98-14

     (2) Moral character;

98-15

     (3) Criminal record, if any;

98-16

     (4) Previous employment;

98-17

     (5) Corporate, partnership, or association affiliations;

98-18

     (6) Ownership of personal assets; and

98-19

     (7) Such other information as it deems pertinent to the issuance of the license. The

98-20

division may reject for good cause an application for a license, and it may suspend or revoke for

98-21

good cause any license issued by it after a hearing held in accordance with chapter 35 of title 42;

98-22

subject to further appeal procedures provided by section 41-2-3.

98-23

     (d) Issuance of license and the payment of annual fees shall be the same in accordance

98-24

with the following schedule:

98-25

     (1) Concessionaires and vendors two hundred dollars ($200);

98-26

     (2) Occupational licenses:

98-27

     (i) Player license ten dollars ($10.00);

98-28

     (ii) Ball maker ten dollars ($10.00);

98-29

     (iii) Player/manager ten dollars ($10.00);

98-30

     (iv) Jai alai judge ten dollars ($10.00);

98-31

     (3) Vendor or concessionaire employee ten dollars ($10.00);

98-32

     (4) Pari-mutuel employees ten dollars ($10.00);

98-33

     (5) Employees of fronton management ten dollars ($10.00);

99-34

     (6) Pari-mutuel totalizator companies two hundred dollars ($200);

99-35

     (7) Pari-mutuel totalizator company employees ten dollars ($10.00); and

99-36

     (8) Security employees ten dollars ($10.00).

99-37

     (e) All individual applicants for licensing under this section shall be fingerprinted, and,

99-38

upon obtaining a license, shall wear upon his or her outer apparel a photo identification badge,

99-39

issued or authorized by the division of state lottery under rules and regulations promulgated by

99-40

the division.

99-41

     42-61.6-11. Conclusion of Saturday performances. – Notwithstanding the provisions of

99-42

chapter 6 of title 41, any jai alai or pelota game played within the enclosure of any fronton

99-43

licensed and conducted pursuant to this chapter, commencing on a Saturday evening and not

99-44

concluded before twelve (12) o'clock midnight, shall not be permitted to be played beyond one

99-45

o'clock in the morning of the first day of the week.

99-46

     CHAPTER 61.7

99-47

OFF-TRACK BETTING

99-48

     42-61.7-1. Definition of an “off-track betting facility”. – For the purposes of this

99-49

chapter, an off-track betting facility shall be a full service betting facility offering foods and

99-50

beverage services plus other amenities, containing a minimum of ten thousand square feet

99-51

(10,000 sq. ft.), providing audio/visual signals of horseracing programs via approved

99-52

telecommunication and totalizator systems.

99-53

     42-61.7-2. License required for off-track betting. – No person, association, or

99-54

corporation shall hold or conduct off-track betting on any racing event for any stake, purse, or

99-55

reward, except such person, association, or corporation as shall be licensed by the division of

99-56

state lottery as provided by this chapter and as approved by the voters as required by chapter 61.9.

99-57

     42-61.7-3. Application for license – Action by division of state lottery. – (a) Any

99-58

person, association, or corporation desiring to conduct pari-mutuel wagering at an off-track

99-59

betting facility on any racing event shall apply to the division for a license on forms provided by

99-60

the division. The application shall specify the days on which betting is to be conducted; the

99-61

location of the betting facility and such other information as may be required by the division. The

99-62

division may also require any person, association, or corporation to give information as to their

99-63

financial standing and credit. The division shall have the right to reject any applications for a

99-64

license for any cause, which it may deem sufficient. Applicants aggrieved by a decision or order

99-65

of the division shall have the right to an appeal pursuant to chapter 35 of this title. The division

99-66

shall allow an off-track betting facility to be open seven (7) days a week. On each day of the

99-67

week the off-track facility licensee may import racing programs from one or more out-of-state

99-68

racetracks in a manner to be approved by the division.

100-1

     42-61.7-4. Powers and duties of division. – In addition to the powers already granted to

100-2

the division of state lottery, the division shall have the power and it shall be its duty to supervise

100-3

and administer the operation of off-track betting in accordance with this chapter and with the

100-4

rules and regulations of the division.

100-5

     42-61.7-5. Licensing restrictions. – (a) The division of state lottery shall refuse to grant

100-6

a license, or shall suspend a license, if the applicant or licensee:

100-7

     (1) Has been convicted of a felony, or any crime involving moral turpitude;

100-8

     (2) Has engaged in illegal gambling as a significant source of income;

100-9

     (3) Has been convicted of violating any gambling statutes;

100-10

     (4) Has been convicted of fraud or misrepresentation in any connection; or

100-11

     (5) Has been found to have violated any rule, regulation, or order of the division.

100-12

     (b) The license heretofore issued shall be suspended by the division for any charge which

100-13

may result in a conviction or conduct prescribed in subdivisions (a)(1) through (a)(5); which

100-14

suspension shall be effective until a final judicial determination.

100-15

     (c) The division shall refuse to grant, or the division shall suspend, pending a hearing

100-16

before the division, a license if the applicant or licensee is an association or corporation:

100-17

     (1) Any of whose directors, officers, partners, or shareholders holding a five percent (5%)

100-18

or greater interest have been found guilty of any of the activities specified in subsection (a); or

100-19

     (2) In which it appears to the division that due to the experience, character, or general

100-20

fitness of any director, officer, or controlling partner, or shareholder, the granting of a license

100-21

would be inconsistent with the public interest, convenience, or trust.

100-22

     (d) Whenever requested by the division of state lottery, the division of criminal

100-23

identification of the department of the attorney general, the superintendent of state police, and the

100-24

superintendent or chief of police or town sergeant of any city or town, shall furnish all

100-25

information on convictions, arrests, and present investigations concerning any person who is an

100-26

applicant for a license or who is a licensee under this chapter.

100-27

     42-61.7-6. Host community fee. – The city or town where a facility licensed after

100-28

January 1, 2012 is located shall receive as host community fee one percent (1%) of the amount

100-29

contributed to the mutuel pools.

100-30

     42-61.7-7. Off-track betting taxes and commissions. – (a) Each licensee conducting

100-31

wagering in an off-track betting facility under the pari-mutuel system shall pay to the state, and

100-32

there is hereby imposed, a tax on such events at the rate of:

100-33

     (1) Three and one-half percent (3.5%) of the total money wagered therein on win, place,

100-34

and show wagers;

101-1

     (2) Four percent (4%) on multiple wagers therein involving two (2) animals; and

101-2

     (3) Four and one-half percent (4.5%) on exotic wagers therein involving three (3) or more

101-3

animals.

101-4

     (b) Where the division has approved the commingling of wagers placed at the off-track

101-5

betting facility into similar wagering pools at a host facility where the racing event is conducted,

101-6

each licensee conducting wagering in an off-track betting facility may retain as his or her

101-7

licensee's commission an amount equal to the takeout at the host facility. Where commingling of

101-8

wagers does not occur the division shall be:

101-9

     (1) Eighteen percent (18%) of the amount wagered therein on win, place and show

101-10

wagers;

101-11

     (2) Twenty percent (20%) on multiple wagers therein, involving two (2) animals;

101-12

     (3) Twenty-five percent (25%) on exotic wagers therein involving three (3) or more

101-13

animals; and

101-14

     (4) One-half (1/2) of the breakage to the dime resulting from such betting shall be paid to

101-15

the division to support the division in accordance with section 41-4-4.1. The remaining breakage

101-16

shall be retained by the licensee.

101-17

     (c) Off-track betting licensees may impose a surcharge on winning wagers of up to five

101-18

and one-half percent (5.5%) to offset telecommunications costs and the cost of acquiring racing

101-19

signals.

101-20

     42-61.7-8. Payment by state to cities and towns – State aid formula. – The off-track

101-21

betting tax payable to the state under subdivisions 42-61.7-7(a)(1), (2) and (3) shall be paid

101-22

directly by the state to the cities and towns of the state in accordance with the state aid formula as

101-23

set out in section 45-13-1, and these funds shall be used by the cities and towns as a direct

101-24

reduction against the residential tax rate.

101-25

     CHAPTER 61.8

101-26

SIMULCAST PROGRAMS FROM LICENSED BETTING FACILITIES

101-27

     42-61.8-1. Definitions. – For the purpose of this chapter, the following words shall have

101-28

the following meanings:

101-29

     (1) "Day" means the normal business day of the facility on which the licensee may

101-30

conduct multiple programs.

101-31

     (2) "Licensee" means an entity licensed pursuant to chapters 61.4 and 61.6 of title 41.

101-32

     (3) "Simulcast" means the live television broadcast of programs either interstate or

101-33

intrastate to a licensee of a licensed facility within the state. The program must be sanctioned

101-34

and/or licensed in the state of origin.

102-1

     42-61.8-2. Simulcast. – (a) Notwithstanding the provisions of section 42-61.5-2 as to

102-2

location of programs only, a licensee may enter into a contract with any licensed racing

102-3

association to simulcast programs from the facility on certain racing days.

102-4

     (b) A licensee may simulcast programs a maximum of two hundred seventy (270) days in

102-5

a state fiscal calendar year.

102-6

     (c) A licensee shall obtain a permit from the division of state lottery.

102-7

     (d) A licensee may accept pari-mutuel wagering on the simulcast at the licensed facility

102-8

and not at any other location.

102-9

     (e) When the program is a dog race, the licensee shall compensate the owners of dog

102-10

kennels who are under contract with the licensee at the time of the program. The compensation

102-11

shall be equal to that percentage of the pari-mutuel handle paid to the owners pursuant to the

102-12

contract then existing between the licensee and the owners.

102-13

     (2) A licensee licensed pursuant to chapter 61.6 of this title who receives simulcasts of

102-14

dog races intrastate shall compensate the owners of dog kennels who are under contract with a

102-15

licensee licensed pursuant to chapter 61.4 of this title at the time of the simulcast an amount equal

102-16

to the percentage of the pari-mutuel handle being paid to the dog kennel owners pursuant to their

102-17

contracts with the licensee licensed pursuant to chapter 6.4 of this title.

102-18

     42-61.8-3. Taxes and commissions. – (a) Each licensee conducting wagering in a

102-19

simulcast betting facility under the pari-mutuel system shall pay to the state, and there is hereby

102-20

imposed, a tax on such programs at the rate of:

102-21

     (1) Four percent (4%) of the total money wagered therein on win, place and show wagers;

102-22

     (2) Four percent (4%) on multiple wagers therein involving two (2) animals; and

102-23

     (3) Five and one-half percent (5.5%) on exotic wagers therein involving three (3) or more

102-24

animals.

102-25

     (b) Where the division has approved the integration of wagers placed at the simulcast

102-26

facility into similar wagering pools at a host facility where the program is conducted, each

102-27

licensee conducting wagering in a simulcast betting facility may retain as his or her commission

102-28

an amount equal to the takeout at the host facility of which one and four tenths percent (1.4%)

102-29

shall be paid to the kennel owners at facilities licensed pursuant to chapter 61.4 of this title. This

102-30

tax structure shall apply to any transmission of programs between licensed facilities within the

102-31

state. Where integration of wagers does not occur the division shall be:

102-32

     (1) Twenty percent (20%) of the amounts wagered on win, place and show wagers of

102-33

which one and four tenths percent (1.4%) shall be paid to the kennel owners at facilities licensed

102-34

pursuant to chapter 61.4 of this title.

103-1

     (2) Twenty percent (20%) of the amounts wagered on multiple wagers involving two (2)

103-2

animals of which one and four tenths percent (1.4%) shall be paid to the kennel owners at

103-3

facilities licensed pursuant to chapter 61.4 of this title.

103-4

     (3) Twenty-five percent (25%) of the amounts wagered on exotic wagers involving three

103-5

(3) or more animals of which one and four tenths percent (1.4%) shall be paid to the kennel

103-6

owners at facilities licensed pursuant to chapter 61.4 of this title.

103-7

     (4) One-half (1/2) of the breakage to the dime resulting from the betting shall be

103-8

deposited as general revenues. The remaining breakage shall be retained by the licensee.

103-9

     (c) The amount of unclaimed money which shall hereafter be held by any licensee, on

103-10

account of outstanding and uncashed winning tickets, shall, at the expiration of one year after the

103-11

close of the meeting during which the tickets were issued, be paid into the general fund of the

103-12

state.

103-13

     (d) Notwithstanding any other provision of law, money wagered on the simulcast of

103-14

intrastate and interstate programs, as provided in this chapter, shall be subject only to the tax

103-15

imposed in this section, and provided further, where there is interstate transmission of signals in

103-16

accordance with national practice, the tax shall be levied in the receiving state only.

103-17

     42-61.8-4. Admission of minors prohibited. – No person who is under the age of

103-18

eighteen (18) years shall be admitted into a building where pari-mutuel betting or simulcast is

103-19

taking place, unless the person is an employee of a licensed concessionaire or licensed vendor and

103-20

performing his or her duties of employment.

103-21

     CHAPTER 61.9

103-22

ESTABLISHMENT AND EXTENSION OF GAMBLING ACTIVITIES AND OTHER

103-23

FACILITIES

103-24

     42-61.9-1. “Gambling” and “gambling facilities” defined. – For the purposes of this

103-25

chapter, the following words shall have the following meanings:

103-26

     (1) "Gambling" means and includes, but is not limited to, horseracing, dog racing, jai

103-27

alai, video lottery games, as defined in section 42-61.2-1, and all other forms of casino gaming as

103-28

defined in section 42-61.10.

103-29

     (2) “Gambling facility" means a building or enclosure in which any gambling activity

103-30

including, but not limited to, the foregoing is played or conducted. The term "gambling facility"

103-31

shall also include any building, enclosure or other improvement designed, constructed, or used in

103-32

connection with an overall plan or project involving the establishment of any gambling activity;

103-33

provided, however, that this sentence shall not apply to any gambling facility licensed prior to

103-34

July 3, 1998.

104-1

     42-61.9-2. Financial disclosure by promoter. – (a) Ninety (90) days prior to the general

104-2

or special election at which the question of the establishment or extension of any gambling

104-3

activity or facility is presented to the electorate, all persons and/or corporations promoting or

104-4

having an interest of five percent (5%) or greater in the activity or facility shall file with the ethics

104-5

commission the financial statement provided by the commission which shall conform with the

104-6

requirements of section 36-14-16. If the person and/or corporation acquire an interest of five

104-7

percent (5%) or greater within ninety (90) days prior to the general or special election at which

104-8

the question of the establishment or extension of any gambling activity or facility is presented to

104-9

the electorate, that person and/or corporation shall file the financial statement within seven (7)

104-10

days after acquiring such interest.

104-11

     (b) The duty to file the financial statement shall be a continuing duty and shall be

104-12

required of any and all persons and/or corporations who have or will have an interest of five

104-13

percent (5%) or greater in an activity and/or facility.

104-14

     42-61.9-3. Disclosure of regulated business interests. – Every person who is required to

104-15

file a financial statement pursuant to this chapter and who has, or within the preceding three (3)

104-16

years divests himself or herself of, five percent (5%) or greater equity interest in a business entity

104-17

which is subject to regulation by this chapter, by a state or municipal agency, shall file with the

104-18

ethics commission annually an affidavit:

104-19

     (1) Identifying himself or herself and stating the capacity in which he or she serves or is

104-20

about to serve which occasions the filing of the affidavit;

104-21

     (2) Identifying the business entity (or each business entity) and all the principals thereof

104-22

known to him or her;

104-23

     (3) Stating the nature of his or her interest in the business entity and that of all the

104-24

principals thereof known to him or her;

104-25

     (4) Identifying all those persons and/or corporations known to him or her providing any

104-26

financing for the business entity.

104-27

     42-61.9-4. Town and state election on establishment of facility. – (a) Before an

104-28

establishment or extension of any gambling facility shall be established in any town or city, the

104-29

town council of the town or the city council of the city shall comply with the following

104-30

procedure:

104-31

     (1) Upon receipt of a resolution from the town council of the town or the city council of

104-32

the city, for a referendum to establish a gambling facility and/or activity, the general assembly

104-33

shall determine, by passage of an act, whether to allow a referendum on the establishment of the

104-34

gambling facility and/or activity.

105-1

     (2) Upon passage of an act to allow a referendum for the establishment of the gambling

105-2

facility and/or activity, the town council of the town or the city council of the city shall pose, by

105-3

adopting a resolution to be placed on the ballot at the next general election to be submitted to the

105-4

qualified electors of the town or city and to the qualified electors of the state, the following

105-5

question: "Shall a gambling facility and/or activity be established in the town (or city) of

105-6

_____________?"

105-7

     (b) The question shall be submitted by the local board of canvassers to the electors of the

105-8

town or city where the facility or activity is to be located, and the results of the election shall be

105-9

certified to the secretary of state.

105-10

     (c) The question shall be submitted by the secretary of state to the qualified electors of

105-11

the state at the same general election and the secretary of state shall certify the election results.

105-12

     (d) The affirmative vote of the subject town or city and the electors of the state shall be

105-13

necessary for the approval of the question, and if consent be thus given, all rules and regulations

105-14

shall be promulgated in accordance with the authority conferred upon the general assembly in

105-15

Rhode Island Constitution, Article VI, Section 15.

105-16

     42-61.9-5. Penalties. – Any person who knowingly and willfully violates the provisions

105-17

of this chapter shall be guilty of a felony herein and punished by a fine of not more than five

105-18

thousand dollars ($5,000) and/or imprisonment for no longer than five (5) years for each

105-19

violation.

105-20

     42-61.9-6. Applicability. – The provisions of this chapter shall specifically apply to any

105-21

facility licensed pursuant to chapter 7 of this title prior to any casino gambling activity being

105-22

licensed on the premises of the facility.

105-23

     SECTION 19. Title 42 of the General Laws entitled "State Affairs and Government" is

105-24

hereby amended by adding thereto the following chapter:

105-25

     CHAPTER 61.10

105-26

THE RHODE ISLAND GAMING CONTROL AND ENFORCEMENT ACT

105-27

     42-61.10-1. Legislative findings. – (a) The general assembly hereby finds, determines

105-28

and declares it to be the public policy of this state that:

105-29

     (1) In accord with Rhode Island Constitution, Article VI, Section 22, only the people of

105-30

the state of Rhode Island can determine whether the state should pursue casino gaming as a

105-31

source of revenue;

105-32

     (2) The success of casino gaming is dependent upon public confidence and trust that

105-33

licensed casino gaming is conducted honestly and competitively; that the rights of the creditors of

105-34

licensees are protected; and that casino gaming is free from criminal and corruptive elements;

106-1

     (3) Public confidence and trust can be maintained only by strict regulation of all persons,

106-2

locations, practices, associations, and activities related to the operation of licensed casino gaming

106-3

establishments and the manufacture or distribution of casino gaming devices and equipment;

106-4

     (4) All establishments where casino gaming is conducted and where casino gaming

106-5

devices are operated and all manufactures, sellers, and distributors of certain gaming devices and

106-6

equipment must therefore be licensed, controlled, and assisted to protect the public health, safety,

106-7

good order, and the general welfare of the inhabitants of the state to foster the stability and

106-8

success of casino gaming and to preserve the economy and policies of free competition of the

106-9

state of Rhode Island.

106-10

     (b) It is the intent of the general assembly that, to achieve the goals set forth in subsection

106-11

(a) of this section, the division should place great weight upon the policies expressed in

106-12

subdivision (a)(3) in construing the provisions of this chapter.

106-13

     42-61.10-2. Definitions. – For the purposes of this chapter, the following words shall

106-14

mean:

106-15

     (1) “Casino” means a facility in which the state conducts casino gaming.

106-16

     (2) “Casino gaming” means any and all table and casino-style games played with cards,

106-17

dice or equipment, for money, credit, or any representative of value; including, but not limited to

106-18

roulette, blackjack, big six, craps, poker, baccarat, pai gow, any banking or percentage game, or

106-19

any other game of device included within the definition of Class III gaming as that term is

106-20

defined in Section 2703(8) of Title 25 of the United States Code and which is approved by the

106-21

state through the division of state lottery.

106-22

     (3) “Casino gaming licensee” or “casino gaming operator” means any person licensed by

106-23

the division to conduct casino gaming operations according to the provisions of this chapter or

106-24

chapter 61.2 of this title.

106-25

     (4) “Casino gaming supplier” means any person who supplies, sells or leases or contracts

106-26

to sell or lease casino gaming devices, equipment, or supplies to a casino gaming licensee or a

106-27

casino gaming operator.

106-28

     (5) “Division” means the division of state lottery within the department of revenue.

106-29

     (6) “License” means an authorization issued to a person or entity by or in the name of the

106-30

division to engage in or assist casino gaming operations regulated by this chapter.

106-31

     (7) "Non-casino gaming supplier" means any person or entity that sells, leases, or

106-32

otherwise distributes directly or indirectly, goods or services other than casino gaming devices

106-33

and supplies to a casino gaming licensee or a casino gaming operator.

107-34

     42-61.10-3. Division of state lottery authorized to operate casino gaming. – (a)

107-35

Notwithstanding any provisions of any other law, the division is authorized to conduct and

107-36

control casino gaming under its authority to that extent that such gaming is authorized pursuant to

107-37

this title.

107-38

     (b) Casino gaming may be authorized and operated by the division at any constitutionally

107-39

authorized facility.

107-40

     42-61.10-4. General duties and powers. – (a) Notwithstanding any other provisions of

107-41

the general laws, the division shall have all powers necessary and proper to fully and effectively

107-42

execute this chapter and the rules and regulations promulgated thereto including, but not limited

107-43

to, the authority to:

107-44

     (1) Adopt eligibility requirements for applicants for licenses, grant licenses to applicants,

107-45

and conduct investigations of applicants for licenses;

107-46

     (2) Adopt appropriate eligibility requirements and standards for employees, independent

107-47

contractors, or agents of casino gaming facilities;

107-48

     (3) Adopt appropriate eligibility requirements and standards for casino gaming suppliers

107-49

and non-casino suppliers of casino gaming facilities;

107-50

     (4) Adopt appropriate standards for all casino gaming facilities and equipment;

107-51

     (5) Investigate alleged violations of this chapter or rules promulgated thereto, take

107-52

appropriate disciplinary action against a licensee or any other person subject to this chapter or the

107-53

rules and regulations promulgated thereto, or institute appropriate legal action for enforcement;

107-54

     (6) Restrict, suspend, or revoke licenses and impose fines and penalties as the division

107-55

considers necessary and in compliance with this chapter or the rules and regulations promulgated

107-56

thereto including, but not limited to:

107-57

     (i) The licensee has violated the provisions of chapter 2 of title 3;

107-58

     (ii) At any time the licensee no longer meets the eligibility requirements of this chapter or

107-59

the rules and regulations promulgated thereto; or

107-60

     (iii) The failure to revoke or suspend the license would undermine the public’s

107-61

confidence in the Rhode Island gaming industry;

107-62

     (7) Require the removal of a licensee or any other person subject to this chapter or the

107-63

rules and regulations promulgated thereto for engaging in any fraudulent practices;

107-64

     (8) Review a licensee if that licensee is under review or is otherwise subject to discipline

107-65

by a regulatory body in any other jurisdiction for a violation of gaming law or regulation in that

107-66

jurisdiction;

107-67

     (9) Review and determine the renewal of licenses;

108-68

     (10) Require that all records of a licensee, including financial or other statements, be kept

108-69

on the premises of the licensee or the casino gaming supplier in the manner prescribed by the

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division; and

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     (11) Take any other action as may be reasonable or appropriate to enforce this chapter

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and the rules and regulations promulgated thereto.

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     (b) Notwithstanding any other provisions of the general laws, the division shall have the

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power to enter, to the extent permissible under the constitutions of the state of Rhode Island and

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the United State of America, through its investigators, agents, auditors, and the state police at any

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time without a warrant and without notice to the licensee, the premises, offices, casino facilities

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or other places of business of a licensee where evidence of the compliance or noncompliance with

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this chapter, the rules or regulations promulgated thereto is likely to be found, for the following

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purposes:

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     (1) To inspect and examine all premises wherein casino gaming or the business of casino

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gaming is conducted;

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     (2) To inspect, examine and audit all books, ledgers, documents, writing, photocopies,

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correspondence, records, videotapes, including electronically stored records, money receptacles,

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other containers and their contents, equipment in which the records are stored, on or around the

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casino;

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     (3) To inspect the person, and inspect, examine, and seize personal effects present in a

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licensee facility of any holder of a license issued pursuant to this chapter while that person is

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present in a licensee facility;

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     (4) To investigate and deter alleged violations of this chapter or the rules and regulations

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promulgated thereto as they relate to licensee, licensee facilities, casino operators, casino or

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casino gambling games;

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     (5) Eject, exclude, or authorize the ejection or exclusion of a person from a casino if the

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person violated the provisions of this chapter, the rules or regulations promulgated thereto, final

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orders of the division, or when the division determines that the person’s conduct or reputation is

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such that his or her presence within the casino facilities may compromise the honesty and

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integrity of the gaming operations or interfere with the orderly conduct of the gaming operations.

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However, the propriety of the ejection or exclusion is subject to a subsequent hearing by the

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division; and

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     (6) Take any other action as may be reasonable or appropriate to enforce this chapter and

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rules promulgated by the gaming division.

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     (c) The division shall establish, issue and promulgate rules and regulations pertaining to

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any and all matters within the division’s jurisdiction under this chapter, in accordance with the

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provisions of the administrative procedures act, chapter 35 of title 42.

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     42-61.10-5. Appropriations -- Reimbursement. – There is appropriated for the first

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year of the effective date a sum sufficient to fund the casino gaming operations of the division

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and the operations of the gaming enforcement unit of the division of state police under section 42-

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28-51. This appropriation shall be reimbursed either directly from the licensee(s) licensed under

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this chapter or indirectly assessed by the director pursuant to this chapter. The amount owed

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from such licensee(s) shall be paid to the general fund no later than the first day such casino(s)

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open for operation or upon transfer of an existing gaming license. Operation of the division and

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the gaming enforcement unit during subsequent fiscal years shall be funded by the fees paid by

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licensees pursuant to the provisions of this chapter.

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     42-61.10-6. Annual assessment of licenses. – A licensee shall make monthly payments

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to the division to fund operations under this chapter and the operations of the gaming

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enforcement unit of the division of state police under section 42-28-51. The amount of the

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payments shall be proportionally allocated to each licensee based on the percentage which such

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licensee’s gaming revenues bears to total gaming revenues of all licensees.

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     42-61.10-7. Cooperation by licensees, registrants or applicants. – Each licensee or

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applicant for a license under this chapter shall cooperate with the division in the performance of

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its duties.

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     SECTION 20. The governor of the state of Rhode Island is hereby authorized and

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directed to transfer personnel from the department of business regulation to the department of

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revenue in order to effectuate the provisions of this act and to reflect any diminution of functions

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for the department of business regulation and any increase of functions for the department of

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revenue resulting from the foregoing sections.

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     SECTION 21. This act shall take effect on January 1, 2013, except that Sections 16 and

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19 shall take effect upon the approval of an expansion to gambling by a majority of the electors in

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accordance with Article VI, Section 22 of the Rhode Island Constitution.

     

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LC02004

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO SPORTS, RACING, AND ATHLETICS

***

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     This act would provide a comprehensive amendment to the laws, rules, regulations, and

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governing bodies in the areas of gaming and athletics.

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     This act would take effect on January 1, 2013, except that Sections 16 and 19 would take

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effect upon the approval of an expansion to gambling by a majority of the electors in accordance

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with Article VI, Section 22 of the Rhode Island Constitution.

     

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LC02004

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H7922