SLS 12RS-785 REENGROSSED Page 1 of 38 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 with respect13 to suitability criteria for the issuance of video draw poker devices; to provide for14 criteria and amenities which shall be offered at different licensed establishments; to15 provide for the calculation of fuel sales at qualified truck stop facilities; to provide16 with respect to the construction and location of qualified truck stop facilities; to17 SB NO. 575 SLS 12RS-785 REENGROSSED Page 2 of 38 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. provide for the temporary operation of video draw poker devices; to provide with1 respect to force majeure; to provide for applicability; to provide for exceptions; to2 provide with respect to leasing qualified truck stop facilities; to repeal statutory3 provisions which have become obsolete; to provide with respect to the sale or4 transfer of a license; to provide for tax clearances for the granting or renewal of a5 license to operate video draw poker devices; to provide for the application process6 for three machine locations; to provide for issuance of licenses by the office of state7 police for three machine locations; to provide for the regulation and enforcement8 regarding the operation of video draw poker devices; to provide for rulemaking; and9 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 REENGROSSED Page 3 of 38 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 REENGROSSED Page 4 of 38 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 REENGROSSED Page 5 of 38 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. 27:417. 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 REENGROSSED Page 6 of 38 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 card games approved by the board or division, where applicable, utilizing8 a 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 REENGROSSED Page 7 of 38 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 mechanical meters as26 required by the rules and regulations of the board or division, where applicable.27 These areas must be locking and separated. Access to one from the other must28 not be allowed at any time.29 SB NO. 575 SLS 12RS-785 REENGROSSED Page 8 of 38 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 mechanical meters housed in a secure11 compartment that 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 (i) Total credits in, total credits played, total credits won, and total19 credits paid.20 (ii) 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 card games as are approved by the board or division, where28 applicable, and have the following method of operation:29 SB NO. 575 SLS 12RS-785 REENGROSSED Page 9 of 38 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, March 31, 2001,23 February 14, 2005, and December 16, 2005. Any authorization of a multi-hand24 game by the board or division, where applicable, in violation of this Paragraph25 shall be null and void.26 D. A video draw poker device may have a mechanism that accepts cash27 in the form of bills with a denomination not to exceed twenty dollars.28 E. The board or division, where applicable, may provide for additional29 SB NO. 575 SLS 12RS-785 REENGROSSED Page 10 of 38 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. specifications for devices to be approved and authorized pursuant to the1 provisions of this Chapter as it deems necessary to maintain the integrity of2 video draw poker devices and operations. The board or division, where3 applicable, shall not provide for any additional specifications which would have4 the effect of reducing to fewer than four the number of manufacturers who5 make devices that meet the specifications of this Chapter.6 §406. Ticket vouchers and accounting tickets7 A. Each video draw poker device must be capable of printing a ticket8 voucher for the player at the completion of each game. If credits are owed the9 player, the ticket must contain each of the following:10 (1) The name of the licensed establishment.11 (2) The address of the establishment.12 (3) The value of the prize in numbers.13 (4) The value of the prize in words.14 (5) The time of day, in hours and minutes in a twenty-four-hour format.15 (6) The date.16 (7) The device license number or serial number up to eight digits.17 (8) The sequential number of the ticket voucher.18 (9) An encrypted validation number from which the validity of the prize19 can be determined.20 B. An exact copy of each printed ticket voucher must be printed and21 retained within the device, or other means of capturing and retaining an22 electronic copy of the ticket data as approved by the board or division, where23 applicable, for a minimum of five thousand tickets. If a thermal printer is used24 and the duplicate information is stored electronically in the device, any25 duplicate voucher printed by the device must have the prominent word26 "DUPLICATE" printed on the face of the voucher.27 C. Each video draw poker device must issue, by activation of an external28 switch, an accounting ticket containing a performance synopsis of the device.29 SB NO. 575 SLS 12RS-785 REENGROSSED Page 11 of 38 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. The ticket must contain:1 (1) The name of the licensed establishment.2 (2) The address of the establishment.3 (3) The license number of the device.4 (4) The time of day, in hours and minutes in a twenty-four-hour format.5 (5) The date.6 (6) The electronic meter readings required by this Chapter.7 §407. Games without minimum wager; Orleans excepted8 A. Notwithstanding any provision of law to the contrary, video draw9 poker devices in any facility licensed pursuant to this Chapter, in any parish10 other than Orleans, may schedule games with no minimum wager. A video11 draw poker device may accept coins in the amount of the minimum wager12 offered by that device. Video draw poker devices may accept coins or currency13 of denominations of multiples of the minimum wager but shall provide one14 game for each amount of the minimum wager deposited in that video draw15 poker device. The provisions of this Subsection shall not be construed to affect16 the limitations on the amount of money played and the limitation on the value17 of prizes established in R.S. 27:410.18 B. Video draw poker devices in any facility licensed pursuant to this19 Chapter located in Orleans Parish may schedule games with such minimum20 wager as may be approved by the board or division, where applicable, provided21 it has been determined by the Louisiana Gaming Control Board that permitting22 such minimum wager in Orleans Parish will not violate any of the terms or23 provisions of Section 1.3 of the Amended and Renegotiated Casino Operating24 Contract entered into pursuant to R.S. 27:201 et seq., on October 30, 1998, as25 amended, effective October 19, 1999, March 29, 2001, March 31, 2001,26 February 14, 2005, and December 16, 2005. Any change to the minimum wager27 in violation of this Subsection shall be null and void.28 §408 through 411. (Reserved)29 SB NO. 575 SLS 12RS-785 REENGROSSED Page 12 of 38 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. PART III. LICENSING AND TYPES OF LICENSES1 §412. State license qualifications; types of licenses2 A.(1) The legislature hereby recognizes the importance of a controlled3 gaming industry to the development of the economy of the state of Louisiana.4 The legislature further recognizes that the success and growth of gaming are5 dependent upon public confidence and trust that gaming activities and6 particularly video draw poker gaming activities are conducted honestly and are7 free from criminal and corruptive elements.8 (2) The state of Louisiana has a legitimate interest in providing strict9 regulation of all persons, practices, associations, and activities related to the10 operation of licensed establishments licensed to offer video draw poker devices,11 and the manufacture, supply, or distribution of video draw poker gaming12 devices and supplies, in order to maintain public confidence and trust in the13 video draw poker gaming industry.14 (3) The legislature hereby finds that the types of establishments which15 may place video draw poker devices at their licensed establishments each16 possess unique features, some of which are volume of business, number of17 establishments, and hours required of the board or division, where applicable,18 to ensure suitability prior to licensing. Therefore, in order to provide the most19 effective regulation and control of the video draw poker gaming industry, it is20 necessary to develop three categories of licenses which may be issued to21 qualified establishments for the privilege of operating video draw poker devices.22 B. The three categories of licenses which may be issued to qualified23 establishments for the operation of video draw poker devices are as follows:24 (1) A license to operate a maximum of three video draw poker devices25 at establishments licensed to sell alcoholic beverages for consumption on the26 premises of the establishment as provided for in R.S. 27:413.27 (2) A license to operate a maximum of fifty video draw poker devices at28 qualified truck stop facilities as provided for in R.S. 27:416.29 SB NO. 575 SLS 12RS-785 REENGROSSED Page 13 of 38 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. (3) A license to operate an unlimited number of video draw poker1 devices at a licensed pari-mutuel wagering facility or an offtrack wagering2 facility as provided for in R.S. 27:415.3 C. A licensee may not have on the premises or make available for play4 on the premises of the licensed establishment more video draw poker devices5 than as provided in this Section.6 §413. Licenses to operate video draw poker devices at certain alcoholic7 beverage facilities; multiple facilities8 A. A person who has been granted a Class A-General retail permit or9 a Class A-Restaurant permit, as defined in Part II of Chapter 1 or Part II of10 Chapter 2 of Title 26 of the Louisiana Revised Statutes of 1950, to sell alcoholic11 beverages for consumption on the premises of a restaurant, bar, tavern, cocktail12 lounge, or club only, or such an establishment located within a motel or hotel13 may be granted a license for the placement of not more than three video draw14 poker devices in his licensed establishment.15 B. A person who is the owner of more than one restaurant, bar, tavern,16 cocktail lounge, or club which is located within a single building or structure,17 and who has been granted a Class A-General retail permit or a Class A-18 Restaurant permit, as defined in Part II of Chapter 1 or Part II of Chapter 2 of19 Title 26 of the Louisiana Revised Statutes of 1950, to sell alcoholic beverages for20 consumption on the premises of each such facility, may make available for play21 not more than three video draw poker devices at each separate facility, not to22 exceed a total of nine video draw poker devices for the single building or23 structure, if that person and each facility complies with all other requirements24 of this Chapter and of the administrative rules that are applicable to the25 operation of video draw poker devices. The limitation on the number of26 facilities contained in this Subsection shall not apply to any person or entity who27 owns and operates multiple facilities which are located in a publicly owned and28 operated transportation facility offering any transportation to interstate and29 SB NO. 575 SLS 12RS-785 REENGROSSED Page 14 of 38 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. international destinations.1 C. For purposes of Subsection B of this Section, a person shall be2 deemed to own more than one restaurant, bar, tavern, cocktail lounge, or club3 located within a single building or structure when the person has an ownership4 interest in each restaurant, bar, tavern, cocktail lounge, club, or other facility5 located within the single building or structure.6 D. Except as provided in Subsection B or C of this Section or R.S.7 27:414, when a restaurant, bar, tavern, cocktail lounge, or club is owned by one8 person, each establishment shall be physically separate and noncontiguous in9 order to qualify for a license to operate video draw poker devices at each such10 establishment.11 §414. Hotel and motel facilities; criteria12 A licensee owning or leasing a licensed establishment which is a hotel or13 motel which has more than one lounge or facility and which has a Class A-14 General retail permit or a Class A-Restaurant permit, as defined in Part II of15 Chapter 1 or Part II of Chapter 2 of Title 26 of the Louisiana Revised Statutes16 of 1950, to sell alcoholic beverages for on-premises consumption on a single17 licensed premises may make available for play not more than three video draw18 poker devices at each lounge or separate facility, not to exceed a total of twelve19 video draw poker devices for the hotel or motel, if all other requirements of this20 Chapter are met. Each separate lounge or facility shall meet the following21 criteria:22 (1) It must be a physically separate noncontiguous facility.23 (2) It must have separate and independent beverage preparation areas.24 (3) It must prepare, dispense, and sell alcoholic beverages for on-25 premises consumption.26 (4) It must have a person whose primary duty is tending bar on duty27 while the lounge or facility is open for business and have a permanently affixed28 wet bar facility including plumbing and sinks.29 SB NO. 575 SLS 12RS-785 REENGROSSED Page 15 of 38 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. (5) It must be able to accommodate a minimum of twenty-five patrons.1 §415. Pari-mutuel wagering facility or offtrack wagering facility; no minimum2 wager3 A person owning a Louisiana State Racing Commission licensed pari-4 mutuel wagering facility or an offtrack wagering facility may be granted a5 license for the placement of video draw poker devices in his facility if all other6 requirements of this Chapter are met. There shall be no limit on the number7 of video draw poker devices which may be placed at the facility.8 Notwithstanding any provision of law to the contrary, video draw poker devices9 in these facilities may schedule games with no minimum wager.10 §416. Qualified truck stop facilities; number of devices; fuel sales11 A. A person owning or leasing a qualified truck stop facility may be12 granted a license for the placement of not more than fifty video draw poker13 devices in his facility based on the fuel sales as provided in Subsection C of this14 Section, in an area separated for adult patronage only, if all other requirements15 of this Chapter are met. There shall be only one license granted for the16 operation of video draw poker devices at each qualified truck stop facility.17 B. The qualified truck stop facility shall be owned or leased by a person18 who meets all the personal qualifications for a Class A-General retail permit or19 a Class A-Restaurant permit, as defined in Part II of Chapter 1 or Part II of20 Chapter 2 of Title 26 of the Louisiana Revised Statutes of 1950, to serve or sell21 alcoholic beverages for on-premises consumption; however, when no such22 permit is obtainable or available, no such permit shall be required.23 C. Except as provided in R.S. 27:421, the number of video draw poker24 devices placed at a qualified truck stop facility shall be based on the average25 monthly fuel sales calculated quarterly, using four sets of three calendar26 months, for the first year of operation and thereafter shall be based upon the27 average monthly fuel sales calculated annually, using a calendar year, as28 follows:29 SB NO. 575 SLS 12RS-785 REENGROSSED Page 16 of 38 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. (1) One hundred thousand gallons of fuel of which forty thousand1 gallons are diesel - not more than fifty devices.2 (2) Seventy-five thousand gallons of fuel of which thirty thousand3 gallons are diesel - not more than forty devices.4 (3) Fifty thousand gallons of fuel of which ten thousand are diesel - not5 more than thirty-five devices.6 D.(1) The fuel facility shall offer, in the regular course of business, fuel7 sales for individual vehicle consumption.8 (2) Bulk sales or transfers shall not be used to calculate monthly9 averages. All fuel sales must correspond to state-accepted daily sales reports10 which correspond to monthly state sales tax reports and shall be verified by fuel11 tickets from the truck stop facility.12 (3) To be considered a fuel facility at a qualified truck stop facility for13 the purpose of licensing that qualified truck stop to operate video draw poker14 devices, the fuel facility shall not be subject to the fuel sales requirements15 provided for in Subpart E of Part VIII of Chapter 1 of Title 51 of the Louisiana16 Revised Statutes of 1950, comprised of R.S. 51:421 through 427, and the17 requirements of Chapter 13 of Title 51 of the Louisiana Revised Statutes of18 1950.19 (4) The provisions of this Subsection provide for the fuel sales20 requirements for the purpose of licensing criteria for the operation of video21 draw poker devices at a qualified truck stop facility.22 (5) The provisions of this Subsection shall not be construed to repeal,23 limit, or supercede any requirements for the sale of fuel by fuel facilities as24 otherwise provided for by law.25 (6) The provisions of this Subsection shall not be construed to repeal,26 limit, or supercede the authority of the office of the attorney general to enforce27 the Unfair Trade Practices or Consumer Protection Law or the authority of any28 district attorney to prosecute violations of Subpart E of Part VIII of Chapter29 SB NO. 575 SLS 12RS-785 REENGROSSED Page 17 of 38 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. 1 of Title 51 of the Louisiana Revised Statutes of 1950, comprised of R.S. 51:4211 through 427.2 §417. Qualified truck stop criteria; amenities3 A. As used in this Chapter, a qualified truck stop facility shall mean a4 facility covering at least five developed contiguous acres which sells fuel,5 lubricating oil, and other vehicular merchandise, such as batteries, tires, or6 vehicle parts for eighteen-wheel tractor-trailers, and which also meets all of the7 following criteria:8 (1) It must be located adjacent to a major state or interstate highway,9 as defined by the board or division, where applicable, through rules and10 regulations adopted by the board or division, where applicable, for this purpose,11 subject to legislative oversight.12 (2) It must have an onsite restaurant which, for the purposes of13 qualifying as a qualified truck stop facility, shall be required to have only the14 following features:15 (a) Provides seating for at least fifty patrons, with all seats located16 within a centralized area.17 (b) Is open at least twelve hours a day.18 (c) Offers a varied menu.19 (d) Operates a fully equipped kitchen which includes but is not limited20 to a range, or an oven, and refrigerated storage appliances used for the21 preparation of foods for on-premises or immediate consumption.22 (3) It must have parking areas with each of the following:23 (a) A stable parking area for at least fifty eighteen-wheel tractor-trailer24 motor vehicles, either paved or concrete, to support eighteen-wheel tractor-25 trailer motor vehicles and their loads, constructed according to industry26 specifications, subject to approval by the board or division where applicable.27 All other parking areas not paved or concrete must be certified by an28 authorized company and proof provided that compaction tests were conducted,29 SB NO. 575 SLS 12RS-785 REENGROSSED Page 18 of 38 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. subject to approval by the division.1 (b) Parking of sufficient size is allowed for safe ingress and egress.2 (c) Parking areas for other vehicles around business entrance ways and3 exits shall not constitute parking areas for eighteen-wheel tractor-trailer motor4 vehicles.5 (4) It must have diesel and gasoline fuel facilities.6 (5) It must have onsite repair service facilities for eighteen-wheel7 tractor-trailer motor vehicles. The onsite repair service may be in the form of8 contracted services from a business which regularly offers this type of service.9 A copy of any contractual agreement shall be submitted with the application for10 review and processing.11 (6) It must have at least four of the following amenities, except for12 reason of force majeure affecting the ability to maintain the amenities for a13 reasonable period of time, as determined by the board or division, where14 applicable, following the interruption of such ability:15 (a) A separate truckers' television lounge.16 (b) A full-service laundry facility located in a convenient area for17 truckers' use.18 (c) Private showers for men and women and not located in an area open19 to general public restroom facilities.20 (d) A travel store with items commonly referred to as truckers' supplies21 (items commonly used only by commercial motor vehicles).22 (e) Truck scales.23 (f) Separate truckers' telephones.24 (g) Permanent storage facilities for fuel.25 (7) It must have an area separated for adult patronage only.26 B. If, for reason of force majeure, the truck stop facility loses the ability27 to maintain one or more of the amenities or criteria required in Subsection A28 of this Section, it may continue to operate the video draw poker devices for a29 SB NO. 575 SLS 12RS-785 REENGROSSED Page 19 of 38 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. reasonable period of time as determined by the board or division, as may be1 applicable, provided that the owner or lessor of the truck stop facility makes2 every effort to restore the affected amenities as soon as practicable.3 C.(1) The criteria and amenity requirements for a qualified truck stop4 facility provided for by this Section shall be suspended for that criteria or5 amenity if any portion of the property upon which a qualified truck stop is6 located is expropriated by the state of Louisiana or one of its political7 subdivisions. The suspension for that criteria or amenity shall remain in effect8 until such time as it is possible for the licensee to meet the requirements of this9 Section. During the period of suspension the licensee may continue to operate10 video draw poker devices without meeting the requirements for that particular11 criteria or amenity affected by the expropriation as otherwise provided for by12 this Section if all other provisions of this Chapter are met.13 (2) The provisions of this Subsection shall not be construed to adversely14 affect parish boundary surveys or good faith reliance upon those surveys as15 provided for in R.S. 27:456.16 D. Except as provided for in Subsections B and C of this Section, the17 criteria and amenities required for a qualified truck stop facility shall be18 operational and maintained in working condition.19 §418. Leasing or subleasing restaurant and convenience stores at qualified20 truck stops; holiday operation21 A. An owner or lessor of a qualified truck stop facility may lease or22 sublease any restaurant, convenience store, fuel facility, or any other business23 operation located on the premises of the qualified truck stop facility to another24 person, provided that such person executes a written lease which contains a25 requirement that the lessee or sublessee comply with the laws and regulations26 which govern the operation of video draw poker devices. If such lease or27 sublease is granted, the owner or lessor of such qualified truck stop facility shall28 maintain ultimate supervision and control of his entire truck stop premise. No29 SB NO. 575 SLS 12RS-785 REENGROSSED Page 20 of 38 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. such lessee or sublessee shall be required to meet suitability requirements unless1 he receives, as a result of the lease, any video draw poker device operation2 revenue or unless he exercises some management or control over video draw3 poker devices. Any violation of the laws and regulations which govern the4 operation of video draw poker devices by such lessee or sublessee shall be5 considered a violation by the licensee.6 B. No financial lending institution or pawnshop shall be located on the7 premises of a qualified truck stop facility. Nothing herein shall prohibit the8 placement of automatic teller machines on the premises of a qualified truck9 stop.10 C. Notwithstanding any other provision of law to the contrary, the11 owner or lessor of a qualified truck stop facility may close the restaurant on the12 premises of the qualified truck stop facility during a legal holiday as defined in13 R.S. 1:55(B)(1)(a).14 §419. Truck stop construction; advertising; notice of intent to construct15 A. Any person applying for a license for the placement of video draw16 poker devices at a truck stop facility shall have, prior to any required rezoning,17 construction application, or construction of the truck stop which the applicant18 seeks to establish as a qualified truck stop facility, publish a notice of his19 intention to build a truck stop that may qualify for a license to operate video20 draw poker devices as a qualified truck stop facility.21 B. The notice shall be published on two separate days in the official22 journal of the parish where the facility is to be located and in another23 newspaper with a larger circulation within the parish than the official journal24 of the parish, if there is one. All costs associated with publication of this notice25 shall be borne by the person seeking application for a licensed truck stop26 facility.27 C. Requirements for the notice required in this Section shall be28 prescribed by the Louisiana Gaming Control Board, which requirements shall29 SB NO. 575 SLS 12RS-785 REENGROSSED Page 21 of 38 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. include:1 (1) Prominent placement in the newspaper in a section other than the2 classified advertisement or public notice section.3 (2) Formatting in a box with a bolded outline.4 (3) A size of not less than two inches by four inches.5 (4) Print in bold face type.6 (5) The additional publications in the official journal as required by this7 Subsection shall be provided by the official journal at a charge not in excess of8 the rates assessed and charged for regular commercial advertising.9 (6) Failure to timely accomplish such publication shall make an10 application for a licensed truck stop null, void, and of no effect until the person11 seeking application has fully complied with the requirements of advertising12 pursuant to this Section.13 (7) Each person required to publish public notice pursuant to this14 Section shall also provide notice to the local governing authority in its parish or15 district as the case may be.16 D. In addition to the requirements for publication provided for in this17 Section, the person seeking application shall issue a press release to newspapers18 with substantial distribution within the parish where the facility is to be located19 and to area broadcast media.20 §420. Rezoning notice21 No license shall be granted for the establishment of a qualified truck stop22 facility at a location that requires or required rezoning to accommodate the23 establishment of the facility unless any signage required to be posted under the24 rezoning requirements in the parish contains in clear and easily readable form25 the information that the rezoning is proposed for consideration to provide for26 the establishment of a qualified truck stop facility.27 §421. Temporary placement of twenty-five video draw poker devices28 A. Any person applying for a truck stop facility license must meet all29 SB NO. 575 SLS 12RS-785 REENGROSSED Page 22 of 38 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. requirements provided by this Chapter prior to licensing. Upon a1 determination by the board that a truck stop facility meets the licensing and2 amenity requirements provided for by this Chapter, up to twenty-five video3 draw poker devices shall be temporarily placed at that facility without the4 requirement that the facility meet the fuel sale requirements as provided for in5 R.S. 27:416(C) for three calendar months. At the end of the first three calendar6 months of fuel sales, the number of video draw poker devices placed at the7 qualified truck stop facility shall be based on the average monthly fuel sales.8 Monthly fuel sales shall be calculated quarterly, using four sets of three9 calendar months, for the first year. For each calendar year thereafter, the10 number of video draw poker devices placed at the qualified truck stop facility11 shall be based upon the average fuel sales calculated annually as provided for12 in this Subsection.13 B. If after a qualified truck stop facility is licensed and an initial14 determination has been made to authorize the placement and operation of15 devices at the facility based upon the average of the fuel sales reports for three16 months, and the qualified truck stop facility thereafter becomes unable to sell17 a sufficient number of gallons of fuel to permit the minimum number of devices18 to be operated at the facility, for reasons of force majeure or due to other19 noncommercial circumstances, such as road or other governmental construction20 projects contiguous to, or otherwise directly affecting the fuel sales of the21 qualified truck stop facility as determined by the board or division, where22 applicable, the facility shall continue to be authorized to place and operate the23 number of devices based upon the last average calculation of monthly fuel sales24 reports prior to the interruption in the fuel sales. Upon resolution of the25 reasons causing the reduction in fuel sales, the board or division, where26 applicable, shall use the next three months of monthly fuel sales reports to27 determine the number of devices authorized to be placed and operated at the28 facility.29 SB NO. 575 SLS 12RS-785 REENGROSSED Page 23 of 38 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. §422. Truck stop location; prohibited distances; prohibited structures1 A. No license shall be granted to any qualified truck stop facility located,2 at the time application is made for a license to operate video draw poker3 devices, within one mile from any property on the National Historic Registry,4 any public playground, any residential property, or a building used primarily5 as a church, synagogue, public library, or school. The measurement of the6 distance shall be a straight line from the nearest point of the truck stop facility7 to the nearest point of the property on the National Historic Registry, the public8 playground, residential property, church, synagogue, public library, or school.9 B. After application, the subsequent construction, erection, development,10 or movement of a property identified in Subsection A of this Section which11 causes the location of a qualified truck stop facility to be within the prohibited12 distance shall not be cause for denial of an application or revocation of a license.13 C. The prohibition in Subsection A of this Section shall not apply to the14 location of a qualified truck stop facility which applied for a license or was15 issued a license on or before June 1, 2010. Such location shall be eligible for a16 qualified truck stop facility license without reference to the prohibition in17 Subsection A of this Section unless a qualified truck stop facility has not been18 licensed at that location for thirty-six consecutive months and application for19 licensing is not made within that thirty-six-month period.20 D. The prohibition in Subsection A of this Section shall not apply to the21 location of a qualified truck stop facility which has a certificate of compliance22 as required by R.S. 27:452(C) or valid building permit issued by the23 appropriate authority but has not constructed a truck stop. For these locations,24 if application for licensing is made on or before December 31, 2012, the25 prohibited distance shall be in accordance with the following:26 (1) For facilities applying for a certificate of compliance or a building27 permit on or before January 1, 2008, five hundred feet from any property on28 the National Historic Registry, any public playground, or a building used29 SB NO. 575 SLS 12RS-785 REENGROSSED Page 24 of 38 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. primarily as a church, synagogue, public library, or school.1 (2) For facilities applying for a certificate of compliance or a building2 permit after January 1, 2008, but on or before June 1, 2010, two thousand five3 hundred feet from any property on the National Historic Registry, any public4 playground, residential property, or a building used primarily as a church,5 synagogue, public library, or school.6 E. If application for licensing is made after December 31, 2012, the7 prohibition in Subsection A of this Section shall apply.8 F. "Residential property" shall mean any property which is wholly or9 partly used for or intended to be used for living or sleeping by human occupants10 and which includes one or more rooms, including a bathroom and complete11 kitchen facilities. Residential property shall include a mobile home or12 manufactured housing, provided that it shall have been in its present location13 for at least sixty days. Residential property shall not include any hotel or motel.14 §423. Termination of lease of truck stop; effect on operation of devices15 A. If the lease of a truck stop facility, which is a licensed establishment16 for the operation of video draw poker devices, expires or is terminated without17 legal cause by the lessor, then, in either event, neither the lessor nor a new lessee18 shall have the right to apply for a video draw poker device license at the same19 truck stop location for a period of six years from the date of expiration or20 termination of the lease.21 B. The former lessee/licensee shall have any of the following rights:22 (1) To continue operations at the licensed facility by agreement with the23 lessor or the new lessee.24 (2) To transfer the existing license to any other new or existing truck25 stop facility which meets all of the qualifying requirements contained in this26 Chapter, except:27 (a) That such former lessee/licensee shall not be required to wait before28 making application and commencing video draw poker operation at a new or29 SB NO. 575 SLS 12RS-785 REENGROSSED Page 25 of 38 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. existing facility.1 (b) That such former lessee/licensee shall be required to perform at the2 new facility any existing sublease or other contracts with licensed device3 owners/operators in effect at the time of expiration or termination of the lease.4 C. Nothing herein shall affect or apply to any truck stop facility in which5 the lessor is the holder of the license for the operation of video draw poker6 devices.7 §424. Sale or transfer of license; continued operation of devices8 A. When a licensed establishment which requires an alcoholic beverage9 license as a condition of the receipt of a video draw poker device license is sold10 or transferred, the video draw poker devices shall be allowed to continue to11 operate if the new owner applies for a state Class "A" license within fifteen days12 of purchasing the business, and upon issuance of a state Class "A" license, the13 new owner applies for a video draw poker license within fifteen days.14 B. The video draw poker devices shall be allowed to be continued in15 operation under the old license until the issuance of a video draw poker license16 in the name of the owner, until any of the following occur:17 (1) A determination by the board or division, where applicable, that the18 new applicant is unsuitable.19 (2) Denial of the new license application.20 (3) The passage of one hundred eighty days from submission of the21 application to the board or division, where applicable. The provisions of this22 Subsection shall not apply to new owner applicants for a video draw poker23 license who are licensed at the time of such application; however, if the24 applicant fails to provide requested information to the board or division, where25 applicable, in a timely manner, the devices may be disabled after one hundred26 eighty days have elapsed.27 C. The board or division, where applicable, shall adopt and promulgate28 rules to implement this Section.29 SB NO. 575 SLS 12RS-785 REENGROSSED Page 26 of 38 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. D. All establishment licensees shall within five days of the change in1 ownership notify the board or division, where applicable, in writing, of any facts2 which indicate that the licensed establishment has had a change in ownership.3 This notification requirement shall apply to device owners only when they have4 been given notice by certified mail of the change in ownership. The device5 owner when given notice by certified mail of the change in ownership shall6 notify the board or division, where applicable, within five days of receipt of the7 notice of the change in ownership of the licensed establishment.8 §425. Tax clearance9 A. Each applicant for a license or renewal of a license shall provide to10 the board or division, where applicable, in addition to the application form a11 signed sales tax clearance from the secretary of the Department of Revenue,12 which clearance request shall be processed within seven business days.13 B. No license shall be granted to any applicant unless he has submitted14 proof to the board or division, where applicable, as required in this Section, that15 he does not owe the state or local governing authority of the parish or16 municipality in which the establishment is located any delinquent sales taxes,17 penalties, or interest, excluding items under formal appeal or protest as18 provided by law.19 C. When an applicant for a license files its application with the board20 or division, where applicable, the applicant shall send notice with a copy of the21 application to the local governing authority and submit evidence of the22 notification to the board or division, where applicable.23 §426. Affidavit application for three machine locations24 A. Prior to the expiration of the license term, a licensee who is licensed25 under the provisions of this Chapter for the placement of not more than three26 video draw poker devices in an approved, qualified establishment shall apply27 for renewal of the license by completing an affidavit in a form approved by the28 Louisiana Gaming Control Board that certifies that there have been no changes29 SB NO. 575 SLS 12RS-785 REENGROSSED Page 27 of 38 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. in the prior qualification and suitability information previously furnished to the1 board. This affidavit shall be executed by the licensee and each person required2 to meet qualification and suitability requirements under R.S. 27:427, provided3 that the licensee or person previously submitted all information required by the4 board in its initial suitability determination. Notwithstanding the above, the5 licensee and all persons required to meet suitability shall furnish such releases,6 affidavits, and documents as may be required by the board. Additionally, the7 licensee shall furnish with each renewal application all of the following:8 (1) A current local sales tax clearance certificate.9 (2) A current local governing authority and taxing authority10 notification.11 (3) A current state sales tax clearance certificate.12 (4) A Class A-General retail permit or a Class A-Restaurant permit, as13 defined in Part II of Chapter 1 or Part II of Chapter 2 of Title 26 of the14 Louisiana Revised Statutes of 1950, to sell alcoholic beverages for consumption15 on the premises.16 B. Failure to disclose changes in prior qualification and suitability17 information shall result in denial of the renewal application or revocation of the18 video draw poker gaming license.19 C.(1) It shall be unlawful for any person intentionally to submit a false20 affidavit under this Subsection or to make or cause to be made or aid, assist, or21 procure another to make or submit a false affidavit.22 (2) Whoever is convicted of violating the provisions of this Subsection23 shall be imprisoned, with or without hard labor, for not more than ten years or24 be fined not more than ten thousand dollars, or both.25 D. The provisions of this Section shall not apply to, and affidavits shall26 not be used for renewal of, a license for the operation of video draw poker27 devices at a hotel or motel, a Louisiana State Racing Commission licensed pari-28 mutuel wagering facility, an offtrack wagering facility, or a qualified truck stop29 SB NO. 575 SLS 12RS-785 REENGROSSED Page 28 of 38 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. facility.1 PART IV. SUITABILITY2 §427. Suitability requirements3 A. No person may be eligible to apply or be granted a license under the4 provisions of this Chapter if he has been convicted in any jurisdiction of any of5 the following offenses within ten years prior to the date of the application or less6 than ten years has elapsed between the date of application and the successful7 completion or service of any sentence, deferred adjudication, or period of8 probation or parole for any of the following:9 (1) Any offense punishable by imprisonment for more than one year.10 (2) Theft or any crime involving false statements or declarations.11 (3) Gambling as defined by the laws or ordinances of any municipality,12 any parish, any state, or the United States.13 B.(1) No person shall be granted a license under the provisions of this14 Chapter unless the applicant has demonstrated to the board or division, where15 applicable, that he is suitable for licensing. For purposes of this Chapter,16 suitability means the applicant or licensee is:17 (a) A person of good moral character, honesty, and integrity.18 (b) A person whose prior activities, arrest or criminal record if any,19 reputation, habits, and associations do not pose a threat to the public interest20 of this state or to the effective regulation of video draw poker, and do not create21 or enhance the dangers of unsuitable, unfair, or illegal practices, methods, and22 operations in the activities authorized by this Chapter and financial23 arrangements incidental thereto.24 (c) Likely to conduct business as authorized by this Chapter in complete25 compliance with the provisions of this Chapter.26 (d) Not prohibited from making application or disqualified from27 licensure under the provisions of Subsection A of this Section.28 (e) A person who does not owe the state or local governing authority of29 SB NO. 575 SLS 12RS-785 REENGROSSED Page 29 of 38 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. the parish or municipality in which the establishment is located any delinquent1 sales taxes, penalties, or interest, excluding items under formal appeal or protest2 as provided by law.3 (2) An applicant who is not disqualified from making application or4 licensure as a result of Subsection A of this Section shall still be required to5 demonstrate to the board or division, where applicable, that he otherwise meets6 the remaining requirements for suitability, particularly those contained in7 Subparagraphs (1)(a), (b), and (c) of this Subsection. Evidence of or relating8 to an arrest, summons, charge, or indictment of an applicant, or the dismissal9 thereof, shall be considered by the board or division, where applicable, even if10 the arrest, summons, charge, or indictment results in acquittal, deferred11 adjudication, probation, parole, or pardon.12 (3) Any person who has been granted a Class-A General Retail permit13 or a Class-A Restaurant permit as defined in Part II of Chapter 1 or Part II of14 Chapter 2 of Title 26 of the Louisiana Revised Statutes of 1950, and meets the15 other requirements within this Chapter shall be granted a license, including16 renewals, by the board or division, where applicable, to operate a maximum of17 three video draw poker devices at a restaurant, bar, tavern, or cocktail lounge18 under the provisions of this Section without having to additionally meet any19 other suitability requirements found in Subsections A, B, D, F, and G of this20 Section. The provisions of this Paragraph shall apply only to licenses to operate21 a maximum of three video draw poker devices as provided for in R.S.22 27:412(B)(1).23 C. All licensees and persons required to be qualified under this Chapter24 shall have a continuing duty to inform the board or division, where applicable,25 of any action which they believe would constitute a violation of this Chapter.26 No person who so informs the board or division, where applicable, shall be27 discriminated against by an applicant or licensee because of supplying such28 information.29 SB NO. 575 SLS 12RS-785 REENGROSSED Page 30 of 38 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. D. Every person who has or controls directly or indirectly more than a1 five percent ownership, income, or profit interest in an entity which has or2 applies for a license in accordance with the provisions of this Chapter, or who3 receives more than five percent revenue interest in the form of a commission,4 finder's fee, loan repayment, or any other business expense related to the5 gaming operation, or who has the ability, in the opinion of the board or division,6 where applicable, to exercise a significant influence over the activities of a7 licensee authorized or to be authorized by this Chapter, shall meet all suitability8 requirements and qualifications for licensees. For the purposes of this Chapter,9 all gaming related associations, outstanding loans, promissory notes, or other10 financial indebtedness of an applicant or licensee must be revealed to the board11 or division, where applicable, for the purposes of determining significant12 influence and suitability.13 E. A person whose application for a license has been denied, or whose14 license has been issued subject to a condition or suspended or revoked, or15 against whom a fine has been levied has the right to a hearing in accordance16 with the provisions of R.S. 27:25 and 26.17 F. Notwithstanding the provisions of Subsection D of this Section, if any18 person required to be found qualified or suitable pursuant to Subsection D of19 this Section fails to provide all or part of the documents or information required20 by the Louisiana Gaming Control Board or the board or division, where21 applicable, and if, as a result, any person holding a license issued pursuant to22 the provisions of this Chapter is not or may no longer be qualified or suitable,23 the board shall issue, under penalty of revocation of the license, a condition24 naming the person who failed to provide all or part of the documents or25 information required by the board or the division, where applicable, and26 declaring that such person may not:27 (1) Receive dividends or interest on securities of a corporation holding28 a license, if the person has or controls directly or indirectly more than a five29 SB NO. 575 SLS 12RS-785 REENGROSSED Page 31 of 38 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. percent ownership, income, or profit interest in such corporation.1 (2) Exercise directly, or through a trustee or nominee, a right conferred2 by securities of a corporation holding a license, if the person has or controls3 directly or indirectly more than a five percent ownership, income, or profit4 interest in such corporation.5 (3) Receive remuneration or other economic benefit from any person6 holding a license issued pursuant to the provisions of this Chapter.7 (4) Exercise significant influence over the activities of a person holding8 a license issued pursuant to the provisions of this Chapter.9 (5) Continue owning or holding a security of a corporation holding a10 license if the person has or controls directly or indirectly more than a five11 percent ownership, income, or profit interest in such corporation.12 G.(1) An institutional investor otherwise required to be found suitable13 or qualified pursuant to the provisions of this Chapter and the rules adopted14 pursuant thereto shall be presumed suitable or qualified upon submitting15 documentation sufficient to establish qualifications as an institutional investor16 as provided herein, and upon certifying that:17 (a) It owns, holds, or controls publicly traded securities issued by a18 licensee or permittee or a holding, intermediate, or parent company of a licensee19 or permittee in the ordinary course of business for investment purposes only.20 (b) It does not exercise influence over the affairs of the issuer of such21 securities or over any licensed or permitted subsidiary of the issuer of such22 securities.23 (c) It does not intend to exercise influence over the affairs of the issuer24 of such securities, or over any licensed or permitted subsidiary of the issuer of25 such securities, in the future, and that it agrees to notify the board in writing26 within thirty days if such intent should change.27 (2) The exercise of voting privileges with regard to publicly traded28 securities shall not be deemed to constitute the exercise of influence over the29 SB NO. 575 SLS 12RS-785 REENGROSSED Page 32 of 38 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. affairs of a licensee.1 (3) The provisions of this Subsection shall not be construed to preclude2 the Louisiana Gaming Control Board or the board or division, where3 applicable, from investigating the suitability or qualifications of an institutional4 investor should the Louisiana Gaming Control Board or division become aware5 of facts or information which may result in such institutional investor being6 found unsuitable or disqualified.7 H.(1) On or after August 15, 2009, a licensee who employs a designated8 representative at a licensed qualified truck stop facility, Louisiana State Racing9 Commission licensed pari-mutuel wagering facility, or an offtrack wagering10 facility shall do all of the following prior to employing the person:11 (a) Obtain conviction records of an applicant seeking employment as a12 designated representative pursuant to the provisions of R.S. 15:587(E).13 (b) Determine that, based upon those conviction records, the applicant14 meets the suitability requirements provided for in Subsection A of this Section.15 (2) The licensee shall have a continuing duty to inform the board or16 division, where applicable, of any action taken by the designated representative17 which they believe would constitute a violation of this Chapter.18 (3) The licensee shall maintain the information required by the19 provisions of this Subsection and have it readily available for inspection by the20 board or division, where applicable.21 §428. (Reserved)22 PART V. REGULATION AND ENFORCEMENT23 §429. Regulation of video draw poker devices; Louisiana Gaming Control24 Board; gaming division25 A. The Louisiana Gaming Control Board shall perform the duties and26 functions as authorized by the provisions of this Chapter and the regulatory27 authority with respect to the regulation of video draw poker devices as provided28 by R.S. 27:15.29 SB NO. 575 SLS 12RS-785 REENGROSSED Page 33 of 38 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. B. The Department of Public Safety and Corrections, office of state1 police, gaming division, shall perform the duties and functions as authorized by2 the provisions of this Chapter and the provisions of R.S. 27:20.3 §430. Rules and regulations; reporting to board or division4 A. The board or division, where applicable, shall promulgate rules and5 regulations for the counting and collecting of all net device revenues and for the6 timely payment of all license fees and penalties. The board or division, where7 applicable, may institute proceedings for the collection of fees and penalties.8 B. Each month, the device owner must give the board or division, where9 applicable, a report containing the:10 (1) Serial number of each video draw poker device.11 (2) Name and address of the establishment where each device is located.12 (3) Computer printouts of the net revenue of each device taken directly13 from the device's electronic accounting devices, if requested by the board or14 division, where applicable.15 C. The board or division, where applicable, may require any device16 owner to maintain or submit any data, information, record, or reports required17 by this Chapter in any computer form, program, or storage consistent with its18 recordkeeping or computer system or access. Any rule or regulation19 promulgated pursuant to this Subsection shall apply to the records of all device20 owners.21 D. Video draw poker devices placed in a licensed establishment which22 is a restaurant shall be operated and played only in a designated area, as23 approved by the board or division, where applicable, which is separated from24 restaurant patrons seated in the dining area of the restaurant.25 E. Except for a uniform logo and advertising notice approved by the26 board or division, where applicable, the board or division, where applicable,27 may promulgate rules to prohibit licensed establishments from advertising28 video gaming activities on the outside of the premises where video gaming29 SB NO. 575 SLS 12RS-785 REENGROSSED Page 34 of 38 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. devices are located.1 F.(1) The board or division, where applicable, may establish by rule2 criteria for the physical placement of video draw poker devices within a licensed3 establishment.4 (2) Any establishment which allows minors to enter the area where video5 draw poker devices are located or operated shall separate any video draw poker6 devices from the sight of any minor by placing a partition of at least five feet in7 height between the video draw poker devices and in any area where a minor8 may be present.9 §§431 - 434. (Reserved)10 PART VI. FRANCHISE PAYMENTS, FEES, DISTRIBUTION OF REVENUE11 §§435 - 439. (Reserved)12 PART VII. CRIMES AND PROHIBITED CONDUCT13 §§440 - 444. (Reserved)14 PART VIII. VIDEO DRAW POKER EMPLOYEE PERMITS15 §§445 - 450. (Reserved)16 PART IX. MISCELLANEOUS17 §§451 - 457. (Reserved)18 CHAPTER 8. 9. MISCELLANEOUS GAMING PROVISIONS19 §401. 501. Potential problems with gaming and gambling; educational program20 A. The Department of Health and Hospitals, office of behavioral health, shall21 develop and fund a program for educating students in public and nonpublic22 elementary and secondary schools about the potential problems associated with23 gaming and gambling.24 B. The state Department of Education shall implement the program in public25 elementary and secondary schools and shall make the program available to nonpublic26 elementary and secondary schools.27 C. The program may be implemented through or in association with the28 statewide D.A.R.E. program or a similar program.29 SB NO. 575 SLS 12RS-785 REENGROSSED Page 35 of 38 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. §402. 502. Raffles under two hundred fifty dollars1 A. Notwithstanding any provision of law to the contrary, a raffle or raffles2 may be conducted by any person twenty-one years of age or older for any purpose3 provided that the value of the prize played for does not exceed two hundred fifty4 dollars.5 B. For purposes of this Section, "raffle" or "raffles" means any game of6 chance played by drawing for prizes or the allotment of prizes by chance, by the7 selling of shares, tickets, or rights to participate in such game or games, or by8 conducting the game or games accordingly.9 Section 3. Chapter 6 of Title 27 of the Louisiana Revised Statutes of 1950,10 comprised of R.S. 27:301 through 326, is hereby repealed in its entirety.11 Section 4. The Louisiana Legislature hereby renumbers and redesignates the12 following provisions in the reserved provisions of this Act as follows: R.S. 27:303 as R.S.13 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.14 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.15 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.16 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. 27:439,17 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.18 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.19 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.20 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.21 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. 27:31722 as R.S. 27:455, R.S. 27:325 as R.S. 27:456, and R.S. 27:311.8 as R.S. 27:457.23 Section 5. The Louisiana State Law Institute is hereby directed to make technical24 changes to statutory laws as necessary to reflect the name changes provided for in this Act.25 SB NO. 575 SLS 12RS-785 REENGROSSED Page 36 of 38 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. The original instrument was prepared by Dawn Romero Watson. The following digest, which does not constitute a part of the legislative instrument, was prepared by Michelle Broussard-Johnson. DIGEST Morrell (SB 575) 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 provides that no multi-hand games or minimum wager may be authorized with respect to any video draw poker device located in Orleans Parish unless it has been determined by the Louisiana Gaming Control Board that permitting such game or wager in Orleans Parish will not violate the terms or provisions of the land based casino contract, as entered into on October 30, 1998, and amended effective October 19, 1999, March 29, 2001, and March 31, 2001. SB NO. 575 SLS 12RS-785 REENGROSSED Page 37 of 38 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Proposed law retains present law and adds the February 14, 2005, and December 16, 2005, amendments to the land based casino contract. Present law provides that a qualified truck stop shall mean a facility covering at least five developed contiguous acres which sells fuel, lubricating oil, and other vehicular merchandise, such as batteries, tires, or vehicle parts for eighteen-wheeler tractor-trailers, and which meet certain criteria. Present law, among other criteria, requires that a qualified truck stop provide seating for at least 50 patrons. Proposed law requires that such seating be centralized. Present law requires that qualified truck stop facilities have stabilized parking areas as a criteria for licensing as a qualified truck stop. Present law allows a qualified truck stop to temporarily continue operating video draw poker devices for a reasonable period of time as determined by the La. Gaming Control Board or the gaming division of the office of state police, if, for reason of force majeure, the truck stop facility loses the ability to maintain one or more of the required amenities. Proposed law retains present law and adds a similar allowance if the qualified truck stop facility loses the ability to maintain one or more of the required criteria by reason of force majeure. 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) Summary of Amendments Adopted by Senate Committee Amendments Proposed by Senate Committee on Judiciary B to the original bill. 1. Adds to the restrictions provided for the land based casino contract, the 2005 February and December amendments to such contract. 2. Deletes requirement that a truck stop facility must sell lubricating oil and other vehicular merchandise as a qualification for video draw poker devices. 3. Adds requirement to the criteria for a qualified truck stop that the seating for at least 50 patrons must be located in a centralized area. 4. Adds allowance for temporarily continuing operation of video draw poker devices by a qualified truck stop facility when, for reason of force majeure, the facility loses its ability to maintain one or more of the required criteria. Senate Floor Amendments to engrossed bill. 1. Technical amendments made. 2. Clarifies the meters required by the rules and regulations are mechanical. SB NO. 575 SLS 12RS-785 REENGROSSED Page 38 of 38 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. 3. Clarifies the nonresettable meters housed in a secure compartment are mechanical. 4. Deletes section on progressive jackpots. 5. Adds truck stops sell lubricating oil and other vehicular merchandise such as batteries, tires, or vehicle parts for 18-wheel tractor trailers. 6. Removes provision that once parking areas are approved they not be subject to approval or review by the division. 7. Clarifies the operation of poker devices as video poker devices. 8. Changes video gaming device to draw poker devices. 9. Clarifies a person of good, "moral" character.