RELATING TO GAMBLING

Introduced By: Senators Fogarty, Paiva-Weed, J. Cicilline, and Roberts

Date Introduced : May 20, 1998

41-9-2. Financial disclosure by promoter. -- (a) {DEL Before DEL} {ADD By the first Monday in August prior to the general election at which ADD} the question of the establishment or extension of any gambling activity or facility is presented to the electorate, all persons and/or corporations promoting or having an interest of {DEL ten percent (10%) DEL} {ADD five percent (5%) ADD} or greater in the activity or facility shall file with the ethics commission the financial statement provided by the commission which shall conform with the requirements of section 36-14-16. {ADD If the person and/or corporation acquire an interest of five percent (5%) or greater after the first Monday in August, that person and/or corporation shall file the financial statement within seven (7) days after acquiring such interest. ADD}

(b) The duty to file the financial statement shall be a continuing duty and shall be required of any and all persons and/or corporations who have or will have an interest of {DEL ten percent (10%) DEL} {ADD five percent (5%) ADD} or greater in an activity and/or facility.

41-9-3. Disclosure of regulated business interests. -- Every person who is required to file a financial statement pursuant to this chapter and who has, or within the preceding three (3) years divests himself or herself of {DEL ten percent (10%) DEL} {ADD five percent (5%) ADD} or greater equity interest in a business entity which is subject to regulation by this chapter, by a state or municipal agency, shall file with the ethics commission annually an affidavit:

(1) Identifying himself or herself and stating the capacity in which he or she serves or is about to serve which occasions the filing of the affidavit;

(2) Identifying the business entity (or each business entity) and all the principals thereof known to him or her;

(3) Stating the nature of his or her interest in the business entity and that of all the principals thereof known to him or her;

(4) Identifying all those persons and/or corporations known to him or her providing any financing for the business entity.

SECTION 2. Chapter 41-9 of the General Laws entitled "Establishment and Extension of Gambling Activities and Other Facilities" is hereby amended by adding thereto the following section:

{ADD 41-9-2.1. Proposal disclosure by promoter -- Review by attorney general -- Public comment -- Report by attorney general. -- ADD} {ADD (a) Before the question of the establishment or extension of any gambling facility is presented to any city or town council for resolution to be placed on the next ballot, all persons and/or corporations promoting or having an interest of more than five percent (5%) or greater in the proposed facility shall file with the attorney general a gambling facility proposal disclosure statement, in a form approved by the attorney general, which shall include, at a minimum the following information: ADD}

{ADD (1) A detailed summary of the proposed gambling facility and gambling activity; ADD}

{ADD (2) Names, addresses and phone numbers of all persons, natural or corporate, having any ownership or management interest in the proposed gambling facility; ADD}

{ADD (3) Copies of any agreements between any person, corporation or business entity concerning the gambling facility and gambling activity; ADD}

{ADD (4) With respect to any corporation identified pursuant to subsection (2) hereof, the name, address, phone number and occupation of all officers, members of the board of directors, trustees, executive and senior level management including for each position, current persons and persons holding position during the past three (3) years including: ADD}

{ADD (i) copies of the articles of incorporation and certificate of incorporation including the by-laws and organizational charts. ADD}

{ADD (ii) Any agreements between any person, corporation or business entity concerning the gambling facility and gambling activity. ADD}

{ADD (5) Organizational structure of the proposed gambling facility detailing any capital investment and proposed profit distributions; ADD}

{ADD (6) Any interest in any other gambling facility or gambling activity, identifying all other interested persons, corporations, or business entity of any type; ADD}

{ADD (7) Conflict of interest statements, policies and procedures for the proposed gambling facility; ADD}

{ADD (8) Names, addresses and phone numbers of professional consultants engaged in connection with the proposed gambling facility; ADD}

{ADD (9) A detailed description of real estate issues including title reports for land owned and lease agreements concerning the proposed gambling facility; ADD}

{ADD (10) A detailed description as each relates to the proposed transaction for equipment leases, insurance, regulatory compliance, tax status, pending litigation or pending regulatory citations, pension plan descriptions and employee benefits, environmental reports, assessments and organizational goals; ADD}

{ADD (11) Copies of reports analyzing the proposed gambling facility prepared during the past three (3) years including, but not limited to, reports by appraisers, accountants, investment bankers, actuaries and other experts; and ADD}

{ADD (12) A list of pending or adjudicated citations, violations or charges against any of the persons identified pursuant to subsection (2) brought by any governmental agency within the past three (3) years and the status or disposition of each such matter; ADD}

{ADD (b) A vote by a city or town council shall not be taken concerning a resolution pursuant to this chapter until the attorney general receives and publishes the gambling facility proposal disclosure statement. The attorney general shall publish notice of the proposal in a newspaper of general circulation in the state. The city or town council shall provide reasonable opportunity for public comment prior to a resolution. ADD}

{ADD (c) Within one hundred fifty (150) days after receipt of a resolution passed by a city or town council, the attorney general in conjunction with the state police shall report to the Governor, to the Speaker of the House of Representatives and to the Majority Leader of the Senate his conclusions and recommendations, if any, concerning: ADD}

{ADD (i) The fitness of the proposed facility's promoters; ADD}

{ADD (ii) The likely impact of the proposed facility upon the economy of the State and of the city or town in which the facility would be located; and ADD}

{ADD (iii) The likely impact of the proposed facility upon the environment of the State and of the city or town in which the facility would be located. ADD}

{ADD (d) The department of attorney general in effectuating the purposes of this chapter may engage experts or consultants as he or she deems appropriate, including, but not limited to actuaries, investment bankers, accountants, attorneys, or industry analysts. All copies of reports prepared by experts and consultants, and costs associated herewith, shall be made available to the public. All costs incurred under this chapter shall be the responsibility of the gambling facility promoter in an amount to be determined by the attorney general to cover the costs of the department of attorney general and state police associated with investigating and preparing the report. No proposed gambling facility proposal statement will be considered complete unless an agreement has been executed with the attorney general and a bond posted for the payment of costs under this chapter ADD}

{ADD (e) The attorney general in conjunction with the state police may conduct an investigation in discharging the duties required under this chapter. For purposes of this investigation the attorney general may require any person, agent, trustee, fiduciary, consultant, institution, association, or corporation directly related to the proposed gambling facility or activity to appear at such time and place as the attorney general may designate, then and there under oath to produce for the use of the attorney general any and all documents and other such information relating directly to the proposed gambling facility or activity as the attorney general may require. ADD}

{ADD (1) Whenever the attorney general may require the attendance of any person as provided in subsection (a), the attorney general shall issue a notice setting the time and place when the attendance is required and shall cause the notice to be delivered or sent by registered or certified mail to the person at least ten (10) days before the date fixed in the notice for the attendance. ADD}

{ADD (2) If any person receiving notice pursuant to this provision neglects to attend or remain in attendance so long as may be necessary for the purposes which the notice was issued, or refuses to produce information requested, any justice of the superior court for the county within which the inquiry is carried on or within which the gambling facility or activity is proposed, upon application by the attorney general shall have jurisdiction to hear and consider on an expedited basis the request by the attorney general, and if appropriate and relevant to the consideration of proposed gambling facility or activity, may issue an order requiring any person, agent, trustee, fiduciary, consultant, institution, association, or corporation to appear before the attorney general to produce for the use of the attorney general evidence in accordance with the terms of the order of the court, and any failure to obey the order of the superior court may be punished by the court as contempt thereof. ADD}

SECTION 3. This act shall take effect upon passage."