SLS 12RS-785 ORIGINAL Page 1 of 37 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Regular Session, 2012 SENATE BILL NO. 575 BY SENATOR MORRELL AND REPRESENTATIVE LOPINTO VIDEO POKER. Provides with respect to the Video Draw Poker Devices Control Law. (8/1/12) AN ACT1 To amend and reenact R.S. 14:90(C), R.S. 27:20(A)(1)(d)(ii), and Chapter 8 of Title 27 of2 the Louisiana Revised Statutes of 1950, to be comprised of R.S. 27:401 through 457,3 to enact Chapter 9 of Title 27 of the Louisiana Revised Statutes of 1950, to be4 comprised of R.S. 27:501 and 502, and to repeal Chapter 6 of Title 27 of the5 Louisiana Revised Statutes of 1950 , comprised of R.S. 27:301 through 326, relative6 to the licensing and operation of video draw poker devices; to provide for a7 comprehensive reorganization of the Video Draw Poker Devices Control Law; to8 provide for definitions; to provide for the types of licensed establishments which9 may be issued for the operation of video draw poker devices; to provide for limits10 on the number of devices which may be offered at those licensed establishments; to11 provide for specifications of video draw poker devices; to provide for the types of12 games which may be played on video draw poker devices; to provide for progressive13 jackpots; to provide with respect to suitability criteria for the issuance of video draw14 poker devices; to provide for criteria and amenities which shall be offered at15 different licensed establishments; to provide for the calculation of fuel sales at16 qualified truck stop facilities; to provide with respect to the construction and location17 SB NO. 575 SLS 12RS-785 ORIGINAL Page 2 of 37 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. of qualified truck stop facilities; to provide for the temporary operation of video1 draw poker devices; to provide with respect to force majeure; to provide for2 applicability; to provide for exceptions; to provide with respect to leasing qualified3 truck stop facilities; to repeal statutory provisions which have become obsolete; to4 provide with respect to the sale or transfer of a license; to provide for tax clearances5 for the granting or renewal of a license to operate video draw poker devices; to6 provide for the application process for three machine locations; to provide for7 issuance of licenses by the office of state police for three machine locations; to8 provide for the regulation and enforcement regarding the operation of video draw9 poker devices; to provide for rulemaking; and to provide for related matters.10 Be it enacted by the Legislature of Louisiana:11 Section 1. R.S. 14:90(C) is hereby amended and reenacted to read as follows:12 §90. Gambling13 * * *14 C. The conducting or assisting in the conducting of gaming activities or15 operations upon a riverboat at the official gaming establishment, by operating an16 electronic video draw poker device, by a charitable gaming licensee, or at a pari-17 mutuel wagering facility, conducting slot machine gaming at an eligible horse racing18 facility, or the operation of a state lottery which is licensed for operation and19 regulated under the provisions of Chapters 4 and 11 of Title 4, Chapters 4, 5, 6, and20 7, and 8 of Title 27, or Subtitle XI of Title 47 of the Louisiana Revised Statutes of21 1950, is not gambling for the purposes of this Section, so long as the wagering is22 done conducted on the premises of the licensed establishment.23 * * *24 Section 2. R.S. 27:20(A)(1)(d)(ii) and Chapter 8 of Title 27 of the Louisiana Revised25 Statutes of 1950, comprised of R.S. 27:401 through 457, are hereby amended and reenacted26 and Chapter 9 of Title 27 of the Louisiana Revised Statutes of 1950, comprised of R.S.27 27:501 and 502, is hereby enacted to read as follows:28 §20. Department of Public Safety and Corrections, office of state police29 SB NO. 575 SLS 12RS-785 ORIGINAL Page 3 of 37 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. A.(1) The Department of Public Safety and Corrections, office of state1 police, shall:2 * * *3 (d) Issue the following licenses and permits in accordance with rules adopted4 by the board:5 * * *6 (ii) Renewals New licenses and the renewal of licenses for the operation7 of video draw poker devices at facilities with no more than three video draw poker8 devices at their licensed establishments.9 * * *10 CHAPTER 8. VIDEO DRAW POKER DEVICES CONTROL LAW11 PART I. GENERAL PROVISIONS12 §401. Short title13 This Chapter shall be known and may be cited as the "Video Draw14 Poker Devices Control Law".15 §402. Definitions16 As used in this Chapter, the following words and phrases shall have the17 following meanings unless the context clearly indicates otherwise:18 (1) "Board" means the Louisiana Gaming Control Board, as established19 by R.S. 27:11.20 (2) "Certified technicians level one" means qualified service personnel21 trained by a manufacturer, distributor, or other qualified entity, or in a training22 program approved by the board or division, where applicable, who are capable23 of clearing paper or money jams, changing paper contained within the video24 draw poker devices, or retrieving money from video draw poker devices.25 (3) "Certified technicians level two" means qualified service personnel26 trained by a manufacturer, distributor, or other qualified entity, or in a training27 program approved by the board or division, where applicable, who are capable28 of clearing paper or money jams, changing paper contained within the video29 SB NO. 575 SLS 12RS-785 ORIGINAL Page 4 of 37 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. draw poker devices, or retrieving money from video draw poker devices,1 performing any repairs, parts replacements, maintenance, cleaning, and other2 matters related to servicing of video draw poker devices.3 (4) "Device operation" means the privilege of operating a video draw4 poker device in accordance with the provisions of this Chapter.5 (5) "Device owner" means a person other than a distributor, who owns6 and operates, maintains, repairs, or services one or more video draw poker7 devices in licensed establishments.8 (6) "Distributor" means any person who buys, sells, leases, services, or9 repairs video draw poker devices and provides a facility for the inspection of10 those devices as required by the board or division, where applicable.11 (7) "Division" shall have the same meaning as that term defined in R.S.12 27:3.13 (8) "Hotel" or "motel" means an operating commercial establishment14 which possesses all appropriate licensing as a hotel or motel and which is15 engaged primarily in the renting of rooms, generally at a daily rate basis, which16 provides overnight lodging to the general public.17 (9) "Institutional investor" means a person that is:18 (a) A plan or trust established and maintained by the United States19 government, a state, a political subdivision of a state for the benefit of their20 respective employees.21 (b) An investment company that is registered under the Investment22 Company Act of 1940.23 (c) A collective investment trust organized by a bank under Part Nine24 of the rules of the Comptroller of the Currency.25 (d) A closed end investment trust registered with the United States26 Securities and Exchange Commission.27 (e) A mutual fund.28 (f) A life insurance company or property and casualty insurance29 SB NO. 575 SLS 12RS-785 ORIGINAL Page 5 of 37 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. company.1 (g) A federal or state bank.2 (h) An investment advisor registered under the Investment Advisors Act3 of 1940.4 (10) "Licensed establishment" means an establishment that has a Class5 A-General retail permit or a Class A-Restaurant permit as defined in Part II of6 Chapter 1 or Part II of Chapter 2 of Title 26 of the Louisiana Revised Statutes7 of 1950, for the sale of alcoholic beverages for on-premises consumption or a8 Louisiana state racing commission licensed race track, pari-mutuel wagering9 facility, or offtrack wagering facility, or a qualified truck stop facility as defined10 in R.S. 27:416. Licensed establishment shall not include any premises leased to11 or utilized by a bona fide nonprofit organization for the conducting of12 charitable gaming nor any convenience store, quick-stop, food-mart, service13 station, grocery store, barber shop, laundromat/washateria, package or14 discount liquor/cigarette establishment, movie theater, or beauty shop.15 (11) "Manufacturer" means any person who manufactures or assembles16 and programs video draw poker devices for use in this state.17 (12) "Net device revenue" means the gross revenue of a device less the18 value of prizes paid as shown on the meters of the device.19 (13) "Person" shall have the same meaning as that term defined in R.S.20 27:3.21 (14) "Restaurant, bar, tavern, cocktail lounge, or club" means an22 operating establishment primarily engaged in the retail sale of prepared foods23 or the sale of alcoholic beverages for on-premises or immediate consumption24 that has been granted a Class A-General retail permit or a Class A-Restaurant25 permit, as defined in Part II of Chapter 1 or Part II of Chapter 2 of Title 26 of26 the Louisiana Revised Statutes of 1950, for the sale of alcoholic beverages for27 on-premises consumption.28 (15) "Service entity" means any person other than a distributor or29 SB NO. 575 SLS 12RS-785 ORIGINAL Page 6 of 37 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. device owner who repairs, services, inspects, or examines video draw poker1 devices in the presence of a device owner or owner's employee.2 (16) "Suitability", "suitable", or "suitability requirements" means the3 criteria provided for in R.S. 27:427.4 (17) "Video draw poker device" means any unit, mechanism, or device5 authorized pursuant to the provisions of this Chapter, that, upon insertion of6 cash, is available to play or simulate the play of the game of draw poker, or7 other games approved by the board or division, where applicable, utilizing a8 video display and microprocessors in which the player may win games or9 credits that can be redeemed for cash only. The term does not include a device10 that directly dispenses coins, cash, tokens, or any thing else of value, except the11 ticket voucher required in accordance with the provisions of this Chapter. The12 term does not include any device authorized to be used in the conducting of13 charitable gaming. The term does not include video line up games, mechanical14 reel games, or any combination thereof, or any slot machine as defined in R.S.15 27:353(14).16 (18) "Video draw poker" means any card game approved by the board17 or division, where applicable, that utilizes one deck of cards per hand with18 multiple hands permitted per game.19 (19) "Video draw poker employee" means a person issued a permit20 pursuant to the provisions of R.S. 27:445.21 §403. Video draw poker device operation not gambling; license is a privilege22 A. Notwithstanding any provision of law to the contrary, the placement,23 operation, maintenance, and play of approved video draw poker devices in24 accordance with the provisions of this Section is legal, and such devices shall not25 be considered gambling devices.26 B. Any license applied for, granted, or issued under the provisions of27 this Chapter is a pure and absolute privilege, the awarding, denial, or28 withdrawal of which is solely within the discretion of the board or division,29 SB NO. 575 SLS 12RS-785 ORIGINAL Page 7 of 37 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. where applicable, and, except as provided in this Chapter, without recourse at1 law. Any license issued or renewed under the provisions of this Chapter is not2 property or a protected interest under the constitutions of either the United3 States or the state of Louisiana.4 §404. Service entity5 A service entity shall not perform any accounting functions, including6 but not limited to recording meter readings or handling or transporting funds7 procured from the video draw poker device. A service entity shall not perform8 any actions which would fulfill state reporting requirements other than those9 directly related to the physical repair of video draw poker devices.10 PART II. VIDEO DRAW POKER DEVICES11 §405. Description and specifications of devices12 A. Each video draw poker device shall:13 (1) Be inspected by the board or division, where applicable, or its14 designee for certification and compliance.15 (2) Be connected with a system consisting of player operated terminals16 and a self-contained control computer.17 (3) Not have any device or program that will alter the reading of the18 values or amounts of play to reflect values or amounts other than actually19 played or any switches, jumpers, wire posts, or any other means of20 manipulation that could affect the operation or outcome of a game.21 (4) Not have any device, switch, program, or function that can alter the22 readings of the actual amounts or values relating to any function or occurrence23 of the device.24 (5) Have separate secure areas with locking doors for the game logic25 board and software, the cash compartment, and the meters as required by the26 rules and regulations of the board or division, where applicable. These areas27 must be locking and separated. Access to one from the other must not be28 allowed at any time.29 SB NO. 575 SLS 12RS-785 ORIGINAL Page 8 of 37 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. (6) For card games, use a display with images of cards that closely1 resemble standard poker playing cards.2 (7) Not have any functions or parameters adjustable by or through any3 separate video display or input codes, except for the adjustment of features that4 are wholly cosmetic.5 (8) Have a circuit-interrupting device, method, or capability which will6 disable the machine if the board or division, where applicable, approved7 program is accessed or altered.8 (9) Have a serial number or other identification number permanently9 affixed to the device by the manufacturer.10 (10) Have nonresettable meters housed in a secure compartment that11 keep a permanent record of all of the following:12 (a) Total credits accepted.13 (b) Total credits played by players.14 (c) Total credits won by players.15 (d) Total credits printed out by the ticket voucher printer.16 (e) The device must contain electronic metering using meters that record17 all of the following:18 (f) Total credits in, total credits played, total credits won, and total19 credits paid.20 (g) Total hands of poker played and total hands of poker won.21 B. Each video draw poker device shall be linked by telecommunication22 to a central computer for purposes of polling or reading device activities and for23 central computer remote shutdown of device operations; however, if the central24 computer system fails as a result of a malfunction or catastrophic event, the25 device may remain in operation until the central computer system is restored.26 C. Each video draw poker device shall offer the game of draw poker or27 such other games as are approved by the board or division, where applicable,28 and have the following method of operation:29 SB NO. 575 SLS 12RS-785 ORIGINAL Page 9 of 37 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. (1) The cards must be shuffled after each hand is dealt.1 (2) The card games must utilize a deck of cards consisting of fifty-two2 standard playing cards, and up to two jokers may also be used. The deck must3 be shuffled by use of a random number generator to exchange each card in the4 deck with another randomly selected card.5 (3) After shuffling, a required number of cards must be dealt from the6 top of the deck.7 (4) Any discarded cards must be replaced by remaining cards in the8 deck, starting with the next subsequent card and using the cards in the order of9 the deck.10 (5) The game must display the hands for which won games or credits11 will be awarded and the number of won games or credits for each hand, not to12 exceed the value of one thousand dollars.13 (6) Notwithstanding the provisions of Paragraphs (2), (3), and (4) of this14 Subsection when they are in conflict, multi-hand games shall be an authorized15 game for play when approved by an authorized device testing laboratory and16 the board or division, where applicable, provided that, with respect to any video17 draw poker device located in Orleans Parish, no multi-hand game is or may be18 authorized unless it has been determined by the Louisiana Gaming Control19 Board that permitting such game in Orleans Parish will not violate any of the20 terms or provisions of Section 1.3 of the Amended and Renegotiated Casino21 Operating Contract entered into pursuant to R.S. 27:201 et seq., on October 30,22 1998, as amended, effective October 19, 1999, March 29, 2001, and March 31,23 2001. Any authorization of a multi-hand game by the board or division, where24 applicable, in violation of this Paragraph shall be null and void.25 D. A video draw poker device may have a mechanism that accepts cash26 in the form of bills with a denomination not to exceed twenty dollars.27 E. The board or division, where applicable, may provide for additional28 specifications for devices to be approved and authorized pursuant to the29 SB NO. 575 SLS 12RS-785 ORIGINAL Page 10 of 37 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. provisions of this Chapter as it deems necessary to maintain the integrity of1 video draw poker devices and operations. The board or division, where2 applicable, shall not provide for any additional specifications which would have3 the effect of reducing to fewer than four the number of manufacturers who4 make devices that meet the specifications of this Chapter.5 §406. Ticket vouchers and accounting tickets6 A. Each video draw poker device must be capable of printing a ticket7 voucher for the player at the completion of each game. If credits are owed the8 player, the ticket must contain each of the following:9 (1) The name of the licensed establishment.10 (2) The address of the establishment.11 (3) The value of the prize in numbers.12 (4) The value of the prize in words.13 (5) The time of day, in hours and minutes in a twenty-four-hour format.14 (6) The date.15 (7) The device license number or serial number up to eight digits.16 (8) The sequential number of the ticket voucher.17 (9) An encrypted validation number from which the validity of the prize18 can be determined.19 B. An exact copy of each printed ticket voucher must be printed and20 retained within the device, or other means of capturing and retaining an21 electronic copy of the ticket data as approved by the board or division, where22 applicable, for a minimum of five thousand tickets. If a thermal printer is used23 and the duplicate information is stored electronically in the device, any24 duplicate voucher printed by the device must have the prominent word25 "DUPLICATE" printed on the face of the voucher.26 C. Each video draw poker device must issue, by activation of an external27 switch, an accounting ticket containing a performance synopsis of the device.28 The ticket must contain:29 SB NO. 575 SLS 12RS-785 ORIGINAL Page 11 of 37 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. (1) The name of the licensed establishment.1 (2) The address of the establishment.2 (3) The license number of the device.3 (4) The time of day, in hours and minutes in a twenty-four-hour format.4 (5) The date.5 (6) The electronic meter readings required by this Chapter.6 §407. Games without minimum wager; Orleans excepted7 A. Notwithstanding any provision of law to the contrary, video draw8 poker devices in any facility licensed pursuant to this Chapter, in any parish9 other than Orleans, may schedule games with no minimum wager. A video10 draw poker device may accept coins in the amount of the minimum wager11 offered by that device. Video draw poker devices may accept coins or currency12 of denominations of multiples of the minimum wager but shall provide one13 game for each amount of the minimum wager deposited in that video draw14 poker device. The provisions of this Subsection shall not be construed to affect15 the limitations on the amount of money played and the limitation on the value16 of prizes established in R.S. 27:410.17 B. Video draw poker devices in any facility licensed pursuant to this18 Chapter located in Orleans Parish may schedule games with such minimum19 wager as may be approved by the board or division, where applicable, provided20 it has been determined by the Louisiana Gaming Control Board that permitting21 such minimum wager in Orleans Parish will not violate any of the terms or22 provisions of Section 1.3 of the Amended and Renegotiated Casino Operating23 Contract entered into pursuant to R.S. 27:201 et seq., on October 30, 1998, as24 amended, effective October 19, 1999, March 29, 2001, and March 31, 2001. Any25 change to the minimum wager in violation of this Subsection shall be null and26 void.27 §408. Progressive jackpots28 A progressive jackpot may be offered for play at a licensed facility if the29 SB NO. 575 SLS 12RS-785 ORIGINAL Page 12 of 37 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. video draw poker devices are located at the same facility. The video draw poker1 devices at a licensed facility may be linked in order to offer a pooled or2 progressive jackpot. This jackpot shall not exceed the current single game3 payout maximum provided for in R.S. 27:410. Multi-tiered progressive shall be4 permitted as long as the progressive value does not exceed the single game5 payout maximum.6 §409 through 411. (Reserved)7 PART III. LICENSING AND TYPES OF LICENSES8 §412. State license qualifications; types of licenses9 A.(1) The legislature hereby recognizes the importance of a controlled10 gaming industry to the development of the economy of the state of Louisiana.11 The legislature further recognizes that the success and growth of gaming are12 dependent upon public confidence and trust that gaming activities and13 particularly video draw poker gaming activities are conducted honestly and are14 free from criminal and corruptive elements.15 (2) The state of Louisiana has a legitimate interest in providing strict16 regulation of all persons, practices, associations, and activities related to the17 operation of licensed establishments licensed to offer video draw poker devices,18 and the manufacture, supply, or distribution of video draw poker gaming19 devices and supplies, in order to maintain public confidence and trust in the20 video draw poker gaming industry.21 (3) The legislature hereby finds that the types of establishments which22 may place video draw poker devices at their licensed establishments each23 possess unique features, some of which are volume of business, number of24 establishments, and hours required of the board or division, where applicable,25 to ensure suitability prior to licensing. Therefore, in order to provide the most26 effective regulation and control of the video draw poker gaming industry, it is27 necessary to develop three categories of licenses which may be issued to28 qualified establishments for the privilege of operating video draw poker devices.29 SB NO. 575 SLS 12RS-785 ORIGINAL Page 13 of 37 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. B. The three categories of licenses which may be issued to qualified1 establishments for the operation of video draw poker devices are as follows:2 (1) A license to operate a maximum of three video draw poker devices3 at establishments licensed to sell alcoholic beverages for consumption on the4 premises of the establishment as provided for in R.S. 27:413.5 (2) A license to operate a maximum of fifty video draw poker devices at6 qualified truck stop facilities as provided for in R.S. 27:416.7 (3) A license to operate an unlimited number of video draw poker8 devices at a licensed pari-mutuel wagering facility or an offtrack wagering9 facility as provided for in R.S. 27:415.10 C. A licensee may not have on the premises or make available for play11 on the premises of the licensed establishment more video draw poker devices12 than as provided in this Section.13 §413. Licenses to operate video draw poker devices at certain alcoholic14 beverage facilities; multiple facilities15 A. A person who has been granted a Class A-General retail permit or16 a Class A-Restaurant permit, as defined in Part II of Chapter 1 or Part II of17 Chapter 2 of Title 26 of the Louisiana Revised Statutes of 1950, to sell alcoholic18 beverages for consumption on the premises of a restaurant, bar, tavern, cocktail19 lounge, club only, or such an establishment located within a motel or hotel only20 may be granted a license for the placement of not more than three video draw21 poker devices in his licensed establishment.22 B. A person who is the owner of more than one restaurant, bar, tavern,23 cocktail lounge, or club which is located within a single building or structure,24 and who has been granted a Class A-General retail permit or a Class A-25 Restaurant permit, as defined in Part II of Chapter 1 or Part II of Chapter 2 of26 Title 26 of the Louisiana Revised Statutes of 1950, to sell alcoholic beverages for27 consumption on the premises of each such facility, may make available for play28 not more than three video draw poker devices at each separate facility, not to29 SB NO. 575 SLS 12RS-785 ORIGINAL Page 14 of 37 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. exceed a total of nine video draw poker devices for the single building or1 structure, if that person and each facility complies with all other requirements2 of this Chapter and of the administrative rules that are applicable to the3 operation of video draw poker devices. The limitation on the number of4 facilities contained in this Subsection shall not apply to any person or entity who5 owns and operates multiple facilities which are located in a publicly owned and6 operated transportation facility offering any transportation to interstate and7 international destinations.8 C. For purposes of Subsection B of this Section, a person shall be9 deemed to own more than one restaurant, bar, tavern, cocktail lounge, or club10 located within a single building or structure when the person has an ownership11 interest in each restaurant, bar, tavern, cocktail lounge, club, or other facility12 located within the single building or structure.13 D. Except as provided in Subsection B or C of this Section or R.S.14 27:414, when a restaurant, bar, tavern, cocktail lounge, or club is owned by one15 person, each establishment shall be physically separate and noncontiguous in16 order to qualify for a license to operate video draw poker devices at each such17 establishment.18 §414. Hotel and motel facilities; criteria19 A licensee owning or leasing a licensed establishment which is a hotel or20 motel which has more than one lounge or facility and which has a Class A-21 General retail permit or a Class A-Restaurant permit, as defined in Part II of22 Chapter 1 or Part II of Chapter 2 of Title 26 of the Louisiana Revised Statutes23 of 1950, to sell alcoholic beverages for on-premises consumption on a single24 licensed premises may make available for play not more than three video draw25 poker devices at each lounge or separate facility, not to exceed a total of twelve26 video draw poker devices for the hotel or motel, if all other requirements of this27 Chapter are met. Each separate lounge or facility shall meet the following28 criteria:29 SB NO. 575 SLS 12RS-785 ORIGINAL Page 15 of 37 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. (1) It must be a physically separate noncontiguous facility.1 (2) It must have separate and independent beverage preparation areas.2 (3) It must prepare, dispense, and sell alcoholic beverages for on-3 premises consumption.4 (4) It must have a person whose primary duty is tending bar on duty5 while the lounge or facility is open for business and have a permanently affixed6 wet bar facility including plumbing and sinks.7 (5) It must be able to accommodate a minimum of twenty-five patrons.8 §415. Pari-mutuel wagering facility or offtrack wagering facility; no minimum9 wager10 A person owning a Louisiana State Racing Commission licensed pari-11 mutuel wagering facility or an offtrack wagering facility may be granted a12 license for the placement of video draw poker devices in his facility if all other13 requirements of this Chapter are met. There shall be no limit on the number14 of video draw poker devices which may be placed at the facility.15 Notwithstanding any provision of law to the contrary, video draw poker devices16 in these facilities may schedule games with no minimum wager.17 §416. Qualified truck stop facilities; number of devices; fuel sales18 A. A person owning or leasing a qualified truck stop facility may be19 granted a license for the placement of not more than fifty video draw poker20 devices in his facility based on the fuel sales as provided in Subsection C of this21 Section, in an area separated for adult patronage only, if all other requirements22 of this Chapter are met. There shall be only one license granted for the23 operation of video draw poker devices at each qualified truck stop facility.24 B. The qualified truck stop facility shall be owned or leased by a person25 who meets all the personal qualifications for a Class A-General retail permit or26 a Class A-Restaurant permit, as defined in Part II of Chapter 1 or Part II of27 Chapter 2 of Title 26 of the Louisiana Revised Statutes of 1950, to serve or sell28 alcoholic beverages for on-premises consumption; however, when no such29 SB NO. 575 SLS 12RS-785 ORIGINAL Page 16 of 37 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. permit is obtainable or available, no such permit shall be required.1 C. Except as provided in R.S. 27:421, the number of video draw poker2 devices placed at a qualified truck stop facility shall be based on the average3 monthly fuel sales calculated quarterly, using four sets of three calendar4 months, for the first year of and thereafter shall be based upon the average5 monthly fuel sales calculated annually, using a calendar year, as follows:6 (1) One hundred thousand gallons of fuel of which forty thousand7 gallons are diesel - not more than fifty devices.8 (2) Seventy-five thousand gallons of fuel of which thirty thousand9 gallons are diesel - not more than forty devices.10 (3) Fifty thousand gallons of fuel of which ten thousand are diesel - not11 more than thirty-five devices.12 D.(1) The fuel facility shall offer, in the regular course of business, fuel13 sales for individual vehicle consumption.14 (2) Bulk sales or transfers shall not be used to calculate monthly15 averages. All fuel sales must correspond to state-accepted daily sales reports16 which correspond to monthly state sales tax reports and shall be verified by fuel17 tickets from the truck stop facility.18 (3) To be considered a fuel facility at a qualified truck stop facility for19 the purpose of licensing that qualified truck stop to operate video draw poker20 devices, the fuel facility shall not be subject to the fuel sales requirements21 provided for in Subpart E of Part VIII of Chapter 1 of Title 51 of the Louisiana22 Revised Statutes of 1950, comprised of R.S. 51:421 through 427, and the23 requirements of Chapter 13 of Title 51 of the Louisiana Revised Statutes of24 1950.25 (4) The provisions of this Subsection provide for the fuel sales26 requirements for the purpose of licensing criteria for the operation of video27 draw poker devices at a qualified truck stop facility.28 (5) The provisions of this Subsection shall not be construed to repeal,29 SB NO. 575 SLS 12RS-785 ORIGINAL Page 17 of 37 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. limit, or supercede any requirements for the sale of fuel by fuel facilities as1 otherwise provided for by law.2 (6) The provisions of this Subsection shall not be construed to repeal,3 limit, or supercede the authority of the office of the attorney general to enforce4 the Unfair Trade Practices or Consumer Protection Law or the authority of any5 district attorney to prosecute violations of Subpart E of Part VIII of Chapter6 1 of Title 51 of the Louisiana Revised Statutes of 1950, comprised of R.S. 51:4217 through 427.8 §417. Qualified truck stop criteria; amenities9 A. As used in this Chapter, a qualified truck stop facility shall mean a10 facility covering at least five developed contiguous acres which sells fuel,11 lubricating oil, and other vehicular merchandise, such as batteries, tires, or12 vehicle parts for eighteen-wheel tractor-trailers, and which also meets all of the13 following criteria:14 (1) It must be located adjacent to a major state or interstate highway,15 as defined by the board or division, where applicable, through rules and16 regulations adopted by the board or division, where applicable, for this purpose,17 subject to legislative oversight.18 (2) It must have an onsite restaurant which, for the purposes of19 qualifying as a qualified truck stop facility, shall be required to have only the20 following features:21 (a) Provides seating for at least fifty patrons.22 (b) Is open at least twelve hours a day.23 (c) Offers a varied menu.24 (d) Operates a fully equipped kitchen which includes but is not limited25 to a range, or an oven, and refrigerated storage appliances used for the26 preparation of foods for on-premises or immediate consumption.27 (3) It must have parking areas with each of the following:28 (a) For issuance of the initial license, a stable parking area for at least29 SB NO. 575 SLS 12RS-785 ORIGINAL Page 18 of 37 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. fifty eighteen-wheel tractor-trailer motor vehicles, either paved or concrete, to1 support eighteen-wheel tractor-trailer motor vehicles and their loads,2 constructed according to industry specifications, subject to approval by board3 or the division where applicable. All other parking areas not paved or concrete4 must be certified by an authorized company and proof provided that5 compaction tests were conducted, subject to approval by the division. Once the6 division has approved the parking area and issued a license for the operation of7 video draw poker devices, the continued maintenance of the parking area shall8 not be subject to approval or review by the division.9 (b) Parking of sufficient size is allowed for safe ingress and egress.10 (c) Parking areas for other vehicles around business entrance ways and11 exits shall not constitute parking areas for eighteen-wheel tractor-trailer motor12 vehicles.13 (4) It must have diesel and gasoline fuel facilities.14 (5) It must have onsite repair service facilities for eighteen-wheel15 tractor-trailer motor vehicles. The onsite repair service may be in the form of16 contracted services from a business which regularly offers this type of service.17 A copy of any contractual agreement shall be submitted with the application for18 review and processing.19 (6) It must have at least four of the following amenities, except for20 reason of force majeure affecting the ability to maintain the amenities for a21 reasonable period of time, as determined by the board or division, where22 applicable, following the interruption of such ability:23 (a) A separate truckers' television lounge.24 (b) A full-service laundry facility located in a convenient area for25 truckers' use.26 (c) Private showers for men and women and not located in an area open27 to general public restroom facilities.28 (d) A travel store with items commonly referred to as truckers' supplies29 SB NO. 575 SLS 12RS-785 ORIGINAL Page 19 of 37 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. (items commonly used only by commercial motor vehicles).1 (e) Truck scales.2 (f) Separate truckers' telephones.3 (g) Permanent storage facilities for fuel.4 (7) It must have an area separated for adult patronage only.5 B. If, for reason of force majeure, the truck stop facility loses the ability6 to maintain one or more of the amenities, it may continue to operate the video7 draw poker devices for a reasonable period of time as determined by the board8 or division, as may be applicable, provided that the owner or lessor of the truck9 stop facility makes every effort to restore the affected amenities as soon as10 practicable.11 C.(1) The criteria and amenity requirements for a qualified truck stop12 facility provided for by this Section shall be suspended for that criteria or13 amenity if any portion of the property upon which a qualified truck stop is14 located is expropriated by the state of Louisiana or one of its political15 subdivisions. The suspension for that criteria or amenity shall remain in effect16 until such time as it is possible for the licensee to meet the requirements of this17 Section. During the period of suspension the licensee may continue to operate18 video draw poker devices without meeting the requirements for that particular19 criteria or amenity affected by the expropriation as otherwise provided for by20 this Section if all other provisions of this Chapter are met.21 (2) The provisions of this Subsection shall not be construed to adversely22 affect parish boundary surveys or good faith reliance upon those surveys as23 provided for in R.S. 27:454.24 D. Except as provided for in Subsections B and C of this Section, the25 criteria and amenities required for a qualified truck stop facility shall be26 operational and maintained in working condition.27 §418. Leasing or subleasing restaurant and convenience stores at qualified28 truck stops; holiday operation29 SB NO. 575 SLS 12RS-785 ORIGINAL Page 20 of 37 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. A. An owner or lessor of a qualified truck stop facility may lease or1 sublease any restaurant, convenience store, fuel facility, or any other business2 operation located on the premises of the qualified truck stop facility to another3 person, provided that such person executes a written lease which contains a4 requirement that the lessee or sublessee comply with the laws and regulations5 which govern the operation of video draw poker devices. If such lease or6 sublease is granted, the owner or lessor of such qualified truck stop facility shall7 maintain ultimate supervision and control of his entire truck stop premise. No8 such lessee or sublessee shall be required to meet suitability requirements unless9 he receives, as a result of the lease, any video draw poker device operation10 revenue or unless he exercises some management or control over video draw11 poker devices. Any violation of the laws and regulations which govern the12 operation of video draw poker devices by such lessee or sublessee shall be13 considered a violation by the licensee.14 B. No financial lending institution or pawnshop shall be located on the15 premises of a qualified truck stop facility. Nothing herein shall prohibit the16 placement of automatic teller machines on the premises of a qualified truck17 stop.18 C. Notwithstanding any other provision of law to the contrary, the19 owner or lessor of a qualified truck stop facility may close the restaurant on the20 premises of the qualified truck stop facility during a legal holiday as defined in21 R.S. 1:55(B)(1)(a).22 §419. Truck stop construction; advertising; notice of intent to construct23 A. Any person applying for a license for the placement of video draw24 poker devices at a truck stop facility shall have, prior to any required rezoning,25 construction application, or construction of the truck stop which the applicant26 seeks to establish as a qualified truck stop facility, publish a notice of his27 intention to build a truck stop that may qualify for a license to operate video28 draw poker devices as a qualified truck stop facility.29 SB NO. 575 SLS 12RS-785 ORIGINAL Page 21 of 37 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. B. The notice shall be published on two separate days in the official1 journal of the parish where the facility is to be located and in another2 newspaper with a larger circulation within the parish than the official journal3 of the parish, if there is one. All costs associated with publication of this notice4 shall be borne by the person seeking application for a licensed truck stop5 facility.6 C. Requirements for the notice required in this Section shall be7 prescribed by the Louisiana Gaming Control Board, which requirements shall8 include:9 (1) Prominent placement in the newspaper in a section other than the10 classified advertisement or public notice section.11 (2) Formatting in a box with a bolded outline.12 (3) A size of not less than two inches by four inches.13 (4) Print in bold face type.14 (5) The additional publications in the official journal as required by this15 Subsection shall be provided by the official journal at a charge not in excess of16 the rates assessed and charged for regular commercial advertising.17 (6) Failure to timely accomplish such publication shall make an18 application for a licensed truck stop null, void, and of no effect until the person19 seeking application has fully complied with the requirements of advertising20 pursuant to this Section.21 (7) Each person required to publish public notice pursuant to this22 Section shall also provide notice to the local governing authority in its parish or23 district as the case may be.24 D. In addition to the requirements for publication provided for in this25 Section, the person seeking application shall issue a press release to newspapers26 with substantial distribution within the parish where the facility is to be located27 and to area broadcast media.28 §420. Rezoning notice29 SB NO. 575 SLS 12RS-785 ORIGINAL Page 22 of 37 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. No license shall be granted for the establishment of a qualified truck stop1 facility at a location that requires or required rezoning to accommodate the2 establishment of the facility unless any signage required to be posted under the3 rezoning requirements in the parish contains in clear and easily readable form4 the information that the rezoning is proposed for consideration to provide for5 the establishment of a qualified truck stop facility.6 §421. Temporary placement of twenty-five video draw poker devices7 A. Any person applying for a truck stop facility license must meet all8 requirements provided by this Chapter prior to licensing. Upon a9 determination by the board that a truck stop facility meets the licensing and10 amenity requirements provided for by this Chapter, up to twenty-five video11 draw poker devices shall be temporarily placed at that facility without the12 requirement that the facility meet the fuel sale requirements as provided for in13 R.S. 27:416(C) for three calendar months. At the end of the first three calendar14 months of fuel sales, the number of video draw poker devices placed at the15 qualified truck stop facility shall be based on the average monthly fuel sales.16 Monthly fuel sales shall be calculated quarterly, using four sets of three17 calendar months, for the first year. For each calendar year thereafter, the18 number of video draw poker devices placed at the qualified truck stop facility19 shall be based upon the average fuel sales calculated annually as provided for20 in this Subsection.21 B. If after a qualified truck stop facility is licensed and an initial22 determination has been made to authorize the placement and operation of23 devices at the facility based upon the average of the fuel sales reports for three24 months, and the qualified truck stop facility thereafter becomes unable to sell25 a sufficient number of gallons of fuel to permit the minimum number of devices26 to be operated at the facility, for reasons of force majeure or due to other27 noncommercial circumstances, such as road or other governmental construction28 projects contiguous to, or otherwise directly affecting the fuel sales of the29 SB NO. 575 SLS 12RS-785 ORIGINAL Page 23 of 37 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. qualified truck stop facility as determined by the board or division, where1 applicable, the facility shall continue to be authorized to place and operate the2 number of devices based upon the last average calculation of monthly fuel sales3 reports prior to the interruption in the fuel sales. Upon resolution of the4 reasons causing the reduction in fuel sales, the board or division, where5 applicable, shall use the next three months of monthly fuel sales reports to6 determine the number of devices authorized to be placed and operated at the7 facility.8 §422. Truck stop location; prohibited distances; prohibited structures9 A. No license shall be granted to any qualified truck stop facility located,10 at the time application is made for a license to operate video draw poker11 devices, within one mile from any property on the National Historic Registry,12 any public playground, any residential property, or a building used primarily13 as a church, synagogue, public library, or school. The measurement of the14 distance shall be a straight line from the nearest point of the truck stop facility15 to the nearest point of the property on the National Historic Registry, the public16 playground, residential property, church, synagogue, public library, or school.17 B. After application, the subsequent construction, erection, development,18 or movement of a property identified in Subsection A of this Section which19 causes the location of a qualified truck stop facility to be within the prohibited20 distance shall not be cause for denial of an application or revocation of a license.21 C. The prohibition in Subsection A of this Section shall not apply to the22 location of a qualified truck stop facility which applied for a license or was23 issued a license on or before June 1, 2010. Such location shall be eligible for a24 qualified truck stop facility license without reference to the prohibition in25 Subsection A of this Section unless a qualified truck stop facility has not been26 licensed at that location for thirty-six consecutive months and application for27 licensing is not made within that thirty-six-month period.28 D. The prohibition in Subsection A of this Section shall not apply to the29 SB NO. 575 SLS 12RS-785 ORIGINAL Page 24 of 37 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. location of a qualified truck stop facility which has a certificate of compliance1 as required by R.S. 27:452(C) or valid building permit issued by the2 appropriate authority but has not constructed a truck stop. For these locations,3 if application for licensing is made on or before December 31, 2012, the4 prohibited distance shall be in accordance with the following:5 (1) For facilities applying for a certificate of compliance or a building6 permit on or before January 1, 2008, five hundred feet from any property on7 the National Historic Registry, any public playground, or a building used8 primarily as a church, synagogue, public library, or school.9 (2) For facilities applying for a certificate of compliance or a building10 permit after January 1, 2008, but on or before June 1, 2010, two thousand five11 hundred feet from any property on the National Historic Registry, any public12 playground, residential property, or a building used primarily as a church,13 synagogue, public library, or school.14 E. If application for licensing is made after December 31, 2012, the15 prohibition in Subsection A of this Section shall apply.16 F. "Residential property" shall mean any property which is wholly or17 partly used for or intended to be used for living or sleeping by human occupants18 and which includes one or more rooms, including a bathroom and complete19 kitchen facilities. Residential property shall include a mobile home or20 manufactured housing, provided that it shall have been in its present location21 for at least sixty days. Residential property shall not include any hotel or motel.22 §423. Termination of lease of truck stop; effect on operation of devices23 A. If the lease of a truck stop facility, which is a licensed establishment24 for the operation of video draw poker devices, expires or is terminated without25 legal cause by the lessor, then, in either event, neither the lessor nor a new lessee26 shall have the right to apply for a video draw poker device license at the same27 truck stop location for a period of six years from the date of expiration or28 termination of the lease.29 SB NO. 575 SLS 12RS-785 ORIGINAL Page 25 of 37 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. B. The former lessee/licensee shall have any of the following rights:1 (1) To continue operations at the licensed facility by agreement with the2 lessor or the new lessee.3 (2) To transfer the existing license to any other new or existing truck4 stop facility which meets all of the qualifying requirements contained in this5 Chapter, except:6 (a) That such former lessee/licensee shall not be required to wait before7 making application and commencing video draw poker operation at a new or8 existing facility.9 (b) That such former lessee/licensee shall be required to perform at the10 new facility any existing sublease or other contracts with licensed device11 owners/operators in effect at the time of expiration or termination of the lease.12 C. Nothing herein shall affect or apply to any truck stop facility in which13 the lessor is the holder of the license for the operation of video poker devices.14 §424. Sale or transfer of license; continued operation of devices15 A. When a licensed establishment which requires an alcoholic beverage16 license as a condition of the receipt of a video draw poker device license is sold17 or transferred, the video gaming devices shall be allowed to continue to operate18 if the new owner applies for a state Class "A" license within fifteen days of19 purchasing the business, and upon issuance of a state Class "A" license, the new20 owner applies for a video draw poker license within fifteen days.21 B. The video draw poker devices shall be allowed to be continued in22 operation under the old license until the issuance of a video draw poker license23 in the name of the owner, until any of the following occur:24 (1) A determination by the board or division, where applicable, that the25 new applicant is unsuitable.26 (2) Denial of the new license application.27 (3) The passage of one hundred eighty days from submission of the28 application to the board or division, where applicable. The provisions of this29 SB NO. 575 SLS 12RS-785 ORIGINAL Page 26 of 37 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Subsection shall not apply to new owner applicants for a video draw poker1 license who are licensed at the time of such application; however, if the2 applicant fails to provide requested information to the board or division, where3 applicable, in a timely manner, the devices may be disabled after one hundred4 eighty days have elapsed.5 C. The board or division, where applicable, shall adopt and promulgate6 rules to implement this Section.7 D. All establishment licensees shall within five days of the change in8 ownership notify the board or division, where applicable, in writing, of any facts9 which indicate that the licensed establishment has had a change in ownership.10 This notification requirement shall only apply to device owners when they have11 been given notice by certified mail of the change in ownership. The device12 owner when given notice by certified mail of the change in ownership shall13 notify the board or division, where applicable, within five days of receipt of the14 notice of the change in ownership of the licensed establishment.15 §425. Tax clearance16 A. Each applicant for a license or renewal of a license shall provide to17 the board or division, where applicable, in addition to the application form a18 signed sales tax clearance from the secretary of the Department of Revenue,19 which clearance request shall be processed within seven business days.20 B. No license shall be granted to any applicant unless he has submitted21 proof to the board or division, where applicable, as required in this Section, that22 he does not owe the state or local governing authority of the parish or23 municipality in which the establishment is located any delinquent sales taxes,24 penalties, or interest, excluding items under formal appeal or protest as25 provided by law.26 C. When an applicant for a license files its application with the board27 or division, where applicable, the applicant shall send notice with a copy of the28 application to the local governing authority and submit evidence of the29 SB NO. 575 SLS 12RS-785 ORIGINAL Page 27 of 37 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. notification to the board or division, where applicable.1 §426. Affidavit application for three machine locations2 A. Prior to the expiration of the license term, a licensee who is licensed3 under the provisions of this Chapter for the placement of not more than three4 video draw poker devices in an approved, qualified establishment shall apply5 for renewal of the license by completing an affidavit in a form approved by the6 Louisiana Gaming Control Board that certifies that there have been no changes7 in the prior qualification and suitability information previously furnished to the8 board. This affidavit shall be executed by the licensee and each person required9 to meet qualification and suitability requirements under R.S. 27:427, provided10 that the licensee or person previously submitted all information required by the11 board in its initial suitability determination. Notwithstanding the above, the12 licensee and all persons required to meet suitability shall furnish such releases,13 affidavits, and documents as may be required by the board. Additionally, the14 licensee shall furnish with each renewal application all of the following:15 (1) A current local sales tax clearance certificate.16 (2) A current local governing authority and taxing authority17 notification.18 (3) A current state sales tax clearance certificate.19 (4) A Class A-General retail permit or a Class A-Restaurant permit, as20 defined in Part II of Chapter 1 or Part II of Chapter 2 of Title 26 of the21 Louisiana Revised Statutes of 1950, to sell alcoholic beverages for consumption22 on the premises.23 B. Failure to disclose changes in prior qualification and suitability24 information shall result in denial of the renewal application or revocation of the25 video draw poker gaming license.26 C.(1) It shall be unlawful for any person intentionally to submit a false27 affidavit under this Subsection or to make or cause to be made or aid, assist, or28 procure another to make or submit a false affidavit.29 SB NO. 575 SLS 12RS-785 ORIGINAL Page 28 of 37 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. (2) Whoever is convicted of violating the provisions of this Subsection1 shall be imprisoned, with or without hard labor, for not more than ten years or2 be fined not more than ten thousand dollars, or both.3 D. The provisions of this Section shall not apply to, and affidavits shall4 not be used for renewal of, a license for the operation of video draw poker5 devices at a hotel or motel, a Louisiana State Racing Commission licensed pari-6 mutuel wagering facility, an offtrack wagering facility, or a qualified truck stop7 facility.8 PART IV. SUITABILITY9 §427. Suitability requirements10 A. No person may be eligible to apply or be granted a license under the11 provisions of this Chapter if he has been convicted in any jurisdiction of any of12 the following offenses within ten years prior to the date of the application or less13 than ten years has elapsed between the date of application and the successful14 completion or service of any sentence, deferred adjudication, or period of15 probation or parole for any of the following:16 (1) Any offense punishable by imprisonment for more than one year.17 (2) Theft or any crime involving false statements or declarations.18 (3) Gambling as defined by the laws or ordinances of any municipality,19 any parish, any state, or the United States.20 B.(1) No person shall be granted a license under the provisions of this21 Chapter unless the applicant has demonstrated to the board or division, where22 applicable, that he is suitable for licensing. For purposes of this Chapter,23 suitability means the applicant or licensee is:24 (a) A person of good character, honesty, and integrity.25 (b) A person whose prior activities, arrest or criminal record if any,26 reputation, habits, and associations do not pose a threat to the public interest27 of this state or to the effective regulation of video draw poker, and do not create28 or enhance the dangers of unsuitable, unfair, or illegal practices, methods, and29 SB NO. 575 SLS 12RS-785 ORIGINAL Page 29 of 37 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. operations in the activities authorized by this Chapter and financial1 arrangements incidental thereto.2 (c) Likely to conduct business as authorized by this Chapter in complete3 compliance with the provisions of this Chapter.4 (d) Not prohibited from making application or disqualified from5 licensure under the provisions of Subsection A of this Section.6 (e) A person who does not owe the state or local governing authority of7 the parish or municipality in which the establishment is located any delinquent8 sales taxes, penalties, or interest, excluding items under formal appeal or protest9 as provided by law.10 (2) An applicant who is not disqualified from making application or11 licensure as a result of Subsection A of this Section shall still be required to12 demonstrate to the board or division, where applicable, that he otherwise meets13 the remaining requirements for suitability, particularly those contained in14 Subparagraphs (1)(a), (b), and (c) of this Subsection. Evidence of or relating15 to an arrest, summons, charge, or indictment of an applicant, or the dismissal16 thereof, shall be considered by the board or division, where applicable, even if17 the arrest, summons, charge, or indictment results in acquittal, deferred18 adjudication, probation, parole, or pardon.19 (3) Any person who has been granted a Class-A General Retail permit20 or a Class-A Restaurant permit as defined in Part II of Chapter 1 or Part II of21 Chapter 2 of Title 26 of the Louisiana Revised Statutes of 1950, and meets the22 other requirements within this Chapter shall be granted a license, including23 renewals, by the board or division, where applicable, to operate a maximum of24 three video draw poker devices at a restaurant, bar, tavern, or cocktail lounge25 under the provisions of this Section without having to additionally meet any26 other suitability requirements found in Subsections A, B, D, F, and G of this27 Section. The provisions of this Paragraph shall apply only to licenses to operate28 a maximum of three video draw poker devices as provided for in R.S.29 SB NO. 575 SLS 12RS-785 ORIGINAL Page 30 of 37 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. 27:412(B)(1).1 C. All licensees and persons required to be qualified under this Chapter2 shall have a continuing duty to inform the board or division, where applicable,3 of any action which they believe would constitute a violation of this Chapter.4 No person who so informs the board or division, where applicable, shall be5 discriminated against by an applicant or licensee because of supplying such6 information.7 D. Every person who has or controls directly or indirectly more than a8 five percent ownership, income, or profit interest in an entity which has or9 applies for a license in accordance with the provisions of this Chapter, or who10 receives more than five percent revenue interest in the form of a commission,11 finder's fee, loan repayment, or any other business expense related to the12 gaming operation, or who has the ability, in the opinion of the board or division,13 where applicable, to exercise a significant influence over the activities of a14 licensee authorized or to be authorized by this Chapter, shall meet all suitability15 requirements and qualifications for licensees. For the purposes of this Chapter,16 all gaming related associations, outstanding loans, promissory notes, or other17 financial indebtedness of an applicant or licensee must be revealed to the board18 or division, where applicable, for the purposes of determining significant19 influence and suitability.20 E. A person whose application for a license has been denied, or whose21 license has been issued subject to a condition or suspended or revoked, or22 against whom a fine has been levied has the right to a hearing in accordance23 with the provisions of R.S. 27:25 and 26.24 F. Notwithstanding the provisions of Subsection D of this Section, if any25 person required to be found qualified or suitable pursuant to Subsection D of26 this Section fails to provide all or part of the documents or information required27 by the Louisiana Gaming Control Board or the board or division, where28 applicable, and if, as a result, any person holding a license issued pursuant to29 SB NO. 575 SLS 12RS-785 ORIGINAL Page 31 of 37 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. the provisions of this Chapter is not or may no longer be qualified or suitable,1 the board shall issue, under penalty of revocation of the license, a condition2 naming the person who failed to provide all or part of the documents or3 information required by the board or the division, where applicable, and4 declaring that such person may not:5 (1) Receive dividends or interest on securities of a corporation holding6 a license, if the person has or controls directly or indirectly more than a five7 percent ownership, income, or profit interest in such corporation.8 (2) Exercise directly, or through a trustee or nominee, a right conferred9 by securities of a corporation holding a license, if the person has or controls10 directly or indirectly more than a five percent ownership, income, or profit11 interest in such corporation.12 (3) Receive remuneration or other economic benefit from any person13 holding a license issued pursuant to the provisions of this Chapter.14 (4) Exercise significant influence over the activities of a person holding15 a license issued pursuant to the provisions of this Chapter.16 (5) Continue owning or holding a security of a corporation holding a17 license if the person has or controls directly or indirectly more than a five18 percent ownership, income, or profit interest in such corporation.19 G.(1) An institutional investor otherwise required to be found suitable20 or qualified pursuant to the provisions of this Chapter and the rules adopted21 pursuant thereto shall be presumed suitable or qualified upon submitting22 documentation sufficient to establish qualifications as an institutional investor23 as provided herein, and upon certifying that:24 (a) It owns, holds, or controls publicly traded securities issued by a25 licensee or permittee or a holding, intermediate, or parent company of a licensee26 or permittee in the ordinary course of business for investment purposes only.27 (b) It does not exercise influence over the affairs of the issuer of such28 securities or over any licensed or permitted subsidiary of the issuer of such29 SB NO. 575 SLS 12RS-785 ORIGINAL Page 32 of 37 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. securities.1 (c) It does not intend to exercise influence over the affairs of the issuer2 of such securities, or over any licensed or permitted subsidiary of the issuer of3 such securities, in the future, and that it agrees to notify the board in writing4 within thirty days if such intent should change.5 (2) The exercise of voting privileges with regard to publicly traded6 securities shall not be deemed to constitute the exercise of influence over the7 affairs of a licensee.8 (3) The provisions of this Subsection shall not be construed to preclude9 the Louisiana Gaming Control Board or the board or division, where10 applicable, from investigating the suitability or qualifications of an institutional11 investor should the Louisiana Gaming Control Board or division become aware12 of facts or information which may result in such institutional investor being13 found unsuitable or disqualified.14 H.(1) On or after August 15, 2009, a licensee who employs a designated15 representative at a licensed qualified truck stop facility, Louisiana State Racing16 Commission licensed pari-mutuel wagering facility, or an offtrack wagering17 facility shall do all of the following prior to employing the person:18 (a) Obtain conviction records of an applicant seeking employment as a19 designated representative pursuant to the provisions of R.S. 15:587(E).20 (b) Determine that, based upon those conviction records, the applicant21 meets the suitability requirements provided for in Subsection A of this Section.22 (2) The licensee shall have a continuing duty to inform the board or23 division, where applicable, of any action taken by the designated representative24 which they believe would constitute a violation of this Chapter.25 (3) The licensee shall maintain the information required by the26 provisions of this Subsection and have it readily available for inspection by the27 board or division, where applicable.28 §428. (Reserved)29 SB NO. 575 SLS 12RS-785 ORIGINAL Page 33 of 37 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. PART V. REGULATION AND ENFORCEMENT1 §429. Regulation of video draw poker devices; Louisiana Gaming Control2 Board; gaming division3 A. The Louisiana Gaming Control Board shall perform the duties and4 functions as authorized by the provisions of this Chapter and the regulatory5 authority with respect to the regulation of video draw poker devices as provided6 by R.S. 27:15.7 B. The Department of Public Safety and Corrections, office of state8 police, gaming division, shall perform the duties and functions as authorized by9 the provisions of this Chapter and the provisions of R.S. 27:20.10 §430. Rules and regulations; reporting to board or division11 A. The board or division, where applicable, shall promulgate rules and12 regulations for the counting and collecting of all net device revenues and for the13 timely payment of all license fees and penalties. The board or division, where14 applicable, may institute proceedings for the collection of fees and penalties.15 B. Each month, the device owner must give the board or division, where16 applicable, a report containing the:17 (1) Serial number of each video draw poker device.18 (2) Name and address of the establishment where each device is located.19 (3) Computer printouts of the net revenue of each device taken directly20 from the device's electronic accounting devices, if requested by the board or21 division, where applicable.22 C. The board or division, where applicable, may require any device23 owner to maintain or submit any data, information, record, or reports required24 by this Chapter in any computer form, program, or storage consistent with its25 recordkeeping or computer system or access. Any rule or regulation26 promulgated pursuant to this Subsection shall apply to the records of all device27 owners.28 D. Video draw poker devices placed in a licensed establishment which29 SB NO. 575 SLS 12RS-785 ORIGINAL Page 34 of 37 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. is a restaurant shall be operated and played only in a designated area, as1 approved by the board or division, where applicable, which is separated from2 restaurant patrons seated in the dining area of the restaurant.3 E. Except for a uniform logo and advertising notice approved by the4 board or division, where applicable, the board or division, where applicable,5 may promulgate rules to prohibit licensed establishments from advertising6 video gaming activities on the outside of the premises where video gaming7 devices are located.8 F.(1) The board or division, where applicable, may establish by rule9 criteria for the physical placement of video draw poker devices within a licensed10 establishment.11 (2) Any establishment which allows minors to enter the area where video12 draw poker devices are located or operated shall separate any video draw poker13 devices from the sight of any minor by placing a partition of at least five feet in14 height between the video draw poker devices and in any area where a minor15 may be present.16 §§431 - 434. (Reserved)17 PART VI. FRANCHISE PAYMENTS, FEES, DISTRIBUTION OF REVENUE18 §§435 - 439. (Reserved)19 PART VII. CRIMES AND PROHIBITED CONDUCT20 §§440 - 444. (Reserved)21 PART VIII. VIDEO DRAW POKER EMPLOYEE PERMITS22 §§445 - 450. (Reserved)23 PART IX. MISCELLANEOUS24 §§451 - 457. (Reserved)25 CHAPTER 8. 9. MISCELLANEOUS GAMING PROVISIONS26 §401. 501. Potential problems with gaming and gambling; educational program27 A. The Department of Health and Hospitals, office of behavioral health, shall28 develop and fund a program for educating students in public and nonpublic29 SB NO. 575 SLS 12RS-785 ORIGINAL Page 35 of 37 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. elementary and secondary schools about the potential problems associated with1 gaming and gambling.2 B. The state Department of Education shall implement the program in public3 elementary and secondary schools and shall make the program available to nonpublic4 elementary and secondary schools.5 C. The program may be implemented through or in association with the6 statewide D.A.R.E. program or a similar program.7 §402. 502. Raffles under two hundred fifty dollars8 A. Notwithstanding any provision of law to the contrary, a raffle or raffles9 may be conducted by any person twenty-one years of age or older for any purpose10 provided that the value of the prize played for does not exceed two hundred fifty11 dollars.12 B. For purposes of this Section, "raffle" or "raffles" means any game of13 chance played by drawing for prizes or the allotment of prizes by chance, by the14 selling of shares, tickets, or rights to participate in such game or games, or by15 conducting the game or games accordingly.16 Section 3. Chapter 6 of Title 27 of the Louisiana Revised Statutes of 1950,17 comprised of R.S. 27:301 through 326, is hereby repealed in its entirety.18 Section 4. The Louisiana Legislature hereby renumbers and redesignates the19 following provisions in the reserved provisions of this Act as follows: R.S. 27:303 as R.S.20 27:409, R.S. 27:304 as R.S. 27:410, R.S. 27:305 as R.S. 27:411, R.S. 27:311.7 as R.S.21 27:428, R.S. 27:308 as R.S. 27:431, R.S. 27:308.1 as R.S. 27:432, R.S. 27:308.2 as R.S.22 27:433, R.S. 27:313 as R.S. 27:434, R.S. 27:311 as R.S. 27:435, R.S. 27:311.9 as R.S.23 27:436, R.S. 27:312 as R.S. 27:437, R.S. 27:318 as R.S. 27:438, R.S. 27:323 as R.S. 27:439,24 R.S. 27:309 as R.S. 27:440, R.S. 27:315 as R.S. 27:441, R.S. 27:316 as R.S. 27:442, R.S.25 27:319 as R.S. 27:443, R.S. 27:322 as R.S. 27:444, R.S. 27:311.1 as R.S. 27:445, R.S.26 27:311.2 as R.S. 27:446, R.S. 27:311.3 as R.S. 27:447, R.S. 27:311.4 as R.S. 27:448, R.S.27 27:311.5 as R.S. 27:449, R.S. 27:311.6 as R.S. 27:450, R.S. 27:314 as R.S. 27:451, R.S.28 27:324 as R.S. 27:452, R.S. 27:320 as R.S. 27:453, R.S. 27:326 as R.S. 27:454, R.S. 27:31729 SB NO. 575 SLS 12RS-785 ORIGINAL Page 36 of 37 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. as R.S. 27:455, R.S. 27:325 as R.S. 27:456, and R.S. 27:311.8 as R.S. 27:457.1 Section 5. The Louisiana State Law Institute is hereby directed to make technical2 changes to statutory laws as necessary to reflect the name changes provided for in this Act.3 The original instrument and the following digest, which constitutes no part of the legislative instrument, were prepared by Cathy R. Wells. DIGEST Present law provides for the operation of video draw poker devices. Present law provides for the regulation of video draw poker device operations by the La. Gaming Control Board and the office of state police, gaming division. Proposed law retains present law. Present law authorizes DPS&C, state police gaming division, to issue renewals of licenses for the operation of video draw poker devices at facilities with no more than three video draw poker devices at their licensed establishments. Proposed law authorizes the issuance of new licenses as well as license renewals of three machine locations. Present law provides that a person who has an alcoholic beverage permit for on premises consumption of alcohol may be granted a license to operate no more than three video draw poker devices at that premises. Present law provides suitability requirements for the issuance of video draw poker licenses and qualification criteria for the issuance of permits for the consumption of alcoholic beverages on the premises of a restaurant or bar. Proposed law retains the provisions of present law and further provides that if a person has met the qualifications for the granting of a permit to sell alcoholic beverages on the premises of a restaurant or bar, they are not required to meet the suitability requirements for the issuance of a video draw poker license to operate three video draw poker devices. Present law defines a "video draw poker device" as any unit, mechanism, or device authorized that, upon insertion of cash, is available to play or simulate the play of the game of draw poker or other card games approved by the division, utilizing a cathode ray tube or video display screen and microprocessors in which the player may win games or credits that can be redeemed for cash only. Proposed law changes present law to provide that games other than card games may be authorized by the La. Gaming Control Board or the division, and excludes line up games, mechanical reel games, and slot machines from the definition of a video draw poker device. Present law provides for specifications of video draw poker devices. Proposed law deletes the requirement that meters in video draw poker devices be mechanical meters and removes certain present law specifications for video draw poker devices which have become technologically obsolete and otherwise retains present law regarding device specifications. Present law requires that qualified truck stop facilities have stabilized parking areas as a criteria for licensing as a qualified truck stop. SB NO. 575 SLS 12RS-785 ORIGINAL Page 37 of 37 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Proposed law provides that the parking requirements are mandatory for initial licensing, but that once the division has approved the parking area and issued a license for the operation of video draw poker devices, the continued maintenance of the parking area shall not be subject to approval or review by the division. Proposed law provides for the statutory reorganization of the provisions of present law regarding the licensing and operation of video draw poker devices. Effective August 1, 2012. (Amends R.S. 14:90(C), R.S. 27:20(A)(1)(d)(ii) and R.S. 27:401-457; adds R.S. 27:501- 502; repeals R.S. 27:301-326)