Oklahoma 2023 Regular Session

Oklahoma House Bill HB1027 Compare Versions

Version 1 (Old)

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28		-	ENGROSSED HOUSE
29		-	BILL NO. 1027 By: Luttrell, Pittman, and
30		-	Hefner of the House
	30	+	HOUSE OF REPRESENTATIVES - FLOOR VERSION
	31	+
	32	+	STATE OF OKLAHOMA
	33	+
	34	+	1st Session of the 59th Legislature (2023)
	35	+
	36	+	COMMITTEE SUBSTITUTE
	37	+	FOR
	38	+	HOUSE BILL NO. 1027 By: Luttrell of the House
31	39
32	40		and
33	41
34	42		Coleman of the Senate
35	43
36	44
	45	+
	46	+	COMMITTEE SUBSTITUTE
37	47
38	48		[ amusements and sports – gaming exemption - Gaming
39	49		Compact Supplement – pools – term – fees - content
40	50		- procedures - funds - conduct - participation –
41	51		codification - effective date ]
42	52
43	53
44	54		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
45	55		SECTION 1. AMENDATORY 3A O.S. 2021, Section 262, is
46	56		amended to read as follows:
47	57		Section 262. A. If at least four Indian tribes enter into the
48	58		model tribal-state compact set forth in Sec tion 281 of this title,
49	59		and such compacts are approved by the Secretary of the I nterior and
50	60		notice of such approval is published in the Federal Register, the
51	61		Oklahoma Horse Racing Commission ("Commission") shall license
52	62		organization licensees which are lic ensed pursuant to Section 205.2
53	63		of this title to conduct authorized gaming as th at term is defined
54		-	by this act pursuant to this act utilizing gaming machines or
55		-	devices authorized by this act subject to the limitations of
56		-	subsection C of this section. No fair association or organization
57		-	licensed pursuant to Sec tion 208.2 of this titl e or a city, town or
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	92	+	by this act pursuant to this act utilizing gaming machines or
	93	+	devices authorized by this act subject to the limitations of
	94	+	subsection C of this section. No fair association or organization
	95	+	licensed pursuant to Sec tion 208.2 of this titl e or a city, town or
84	96		municipality incorporated or otherwise, or an instrumentality
85	97		thereof, may conduct authorized gaming as that term is defined by
86	98		this act.
87	99		Notwithstanding the provisions of Sections 941 through 988 of
88	100		Title 21 of the Oklahoma Statutes, the conducting of and
89	101		participation in gaming in accordance with the provisions of this
90	102		act or the model compact set forth in Section 281 of this title is
91	103		lawful and shall not be subject to any criminal penalties. Provided
92	104		further, a licensed manufacturer or distributor licensed pursuant to
93	105		this act may manufacture, exhibit or store as a lawful activity any
94	106		machines or devices which are capable of being used to conduct the
95	107		following types of gaming:
96	108		1. Gaming authorized by the State -Tribal Gaming Act; or
97	109		2. Other gaming which may be lawfully conducted by an Indian
98	110		tribe in this state.
99	111		B. Except for Christmas Day, authorized gaming may only be
100	112		conducted by an organization lice nsee on days when the licensee is
101	113		either conducting live racing or is accepting wagers on simulcast
102	114		races at the licensee's racing facilities. Authorized gaming may
103	115		only be conducted by organization licensees at enclosure locations
104		-	where live racing is co nducted. Under no circumstances shall
105		-	authorized gaming be conducted by an orga nization licensee at any
106		-	facility outside the organization licensee's racing enclosure. No
107		-	person who would not be eligible to be a patron of a pari -mutuel
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	144	+	where live racing is co nducted. Under no circumstances shall
	145	+	authorized gaming be conducted by an orga nization licensee at any
	146	+	facility outside the organization licensee's racing enclosure. No
	147	+	person who would not be eligible to be a patron of a pari -mutuel
134	148		system of wagering pursuant to the provisions of subsection B of
135	149		Section 208.4 of this title shall be admitted into any area of a
136	150		facility when authorized games are played nor be permitted to
137	151		operate, or obtain a prize from, or in connection with, the
138	152		operation of any author ized game, directly or indirectly.
139	153		C. In order to encour age the growth, sustena nce and development
140	154		of live horse racing in this state and of the state's agriculture
141	155		and horse industries, the Commission is hereby authorized to issue
142	156		licenses to conduct aut horized gaming to no more than three
143	157		organization license es operating racetrack locations at which horse
144	158		race meetings with pari-mutuel wagering, as authorized by the
145	159		Commission pursuant to the provisions of this title, occurred in
146	160		calendar year 2001, as f ollows:
147	161		1. An organization licensee operating a racetrac k location at
148	162		which an organization licensee is licensed to conduct a race meeting
149	163		pursuant to the provisions of Section 205.2 of this title located in
150	164		a county with a population exceeding six hundre d thousand (600,000)
151	165		persons, according to the most recen t Federal Decennial Cen sus,
152	166		shall be licensed to operate not more than six hundred fifty (650)
153	167		player terminals in any year. Beginning with the third year after
154		-	an organization licensee is licensed pursuant to this paragraph to
155		-	operate such player termina ls, such licensee may b e licensed to
156		-	operate an additional fifty (50) player terminals. Beginning with
157		-	the fifth year after an organization licensee is licensed pursuant
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	196	+	an organization licensee is licensed pursuant to this paragraph to
	197	+	operate such player termina ls, such licensee may b e licensed to
	198	+	operate an additional fifty (50) player terminals. Beginning with
	199	+	the fifth year after an organization licensee is licensed pursuant
184	200		to this paragraph to operate such player terminals, such licensee
185	201		may be licensed to operate a further addit ional fifty (50) player
186	202		terminals; and
187	203		2. Two organization licensees operating racetrack locations at
188	204		which the organization licensees are licensed to conduct race
189	205		meetings pursuant to the provisions of Section 205.2 of this title
190	206		located in counties with populations not exceeding four hundred
191	207		thousand (400,000) persons, according to the most recent Federal
192	208		Decennial Census, may each be licensed to operate not more than two
193	209		hundred fifty (250) player terminals in any year.
194	210		Subject to the limitations on the number of player terminals
195	211		permitted to each organization licensee, an organization licensee
196	212		may utilize electronic amusement games as defined in this act,
197	213		electronic bonanza-style bingo games as defined in this act and
198	214		electronic instant bingo games as d efined in this act, and any type
199	215		of gaming machine or device that is specifically allowed by law and
200	216		that an Indian tribe in this state is authorized to utilize pursuant
201	217		to a compact entered into between the state and the tribe in
202	218		accordance with the provi sions of the Indian Gaming Regulatory Act
203	219		and any other machine or device that an Indian tribe in this state
204		-	is lawfully permitted to operate pursuant to the Indian Gaming
205		-	Regulatory Act, referred to collectively as "authorized games". An
206		-	organization licensee's utilization of such machines or devices
207		-	shall be subject to the regulatory control and supervision of the
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	248	+	is lawfully permitted to operate pursuant to the Indian Gaming
	249	+	Regulatory Act, referred to collectively as "authorized games". An
	250	+	organization licensee's utilization of such machines or devices
	251	+	shall be subject to the regulatory control and supervision of the
234	252		Commission; provided, the Commission shall have no role in ove rsight
235	253		and regulation of gaming conducted by a tribe subj ect to a compact.
236	254		The Commission shall promulgate rules to regulate the operation and
237	255		use of authorized gaming by organization licensees. In promulgating
238	256		such rules, the Commission shall consider t he provisions of any
239	257		compact which authorizes electronic gaming which is specifi cally
240	258		authorized by law by an Indian tribe. For the purpose of paragraphs
241	259		1 and 2 of this subsection, the number of player terminals in an
242	260		authorized game that permits multipl e players shall be determined by
243	261		the maximum number of pl ayers that can particip ate in that game at
244	262		any given time; provided, however, that nothing in this act
245	263		prohibits the linking of player terminals for progressive jackpots,
246	264		so long as the limitations o n the number of permitted player
247	265		terminals at each organi zation licensee are not exceeded. Each
248	266		organization licensee shall keep a record of, and shall report at
249	267		least quarterly to the Oklahoma Horse Racing Commission, the number
250	268		of games authorized by th is section utilized in the organization
251	269		licensee's facility, by the name or type of each and its identifying
252	270		number.
253		-	D. No zoning or other local ordinance may be adopted or amended
254		-	by a political subdivision where an organization licensee conducts
255		-	live horse racing with the intent to restrict or prohibit an
256		-	organization licensee's right to conduct authorized gaming at such
257		-	location.
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	299	+	D. No zoning or other local ordinance may be adopted or amended
	300	+	by a political subdivision where an organization licensee conducts
	301	+	live horse racing with the intent to restrict or prohibit an
	302	+	organization licensee's right to conduct authorized gaming at such
	303	+	location.
284	304		E. For purposes of this act, "adjusted gross revenues" means
285	305		the total receipts received by an organization licensee from th e
286	306		play of all authorized gaming minus all monetary payout s.
287	307		F. The Oklahoma Hor se Racing Commission shall promulgate rules
288	308		to regulate, implement and enforce the provisions of this act with
289	309		regard to the conduct of authorized gaming by organization
290	310		licensees; provided, regulation and oversight of games covered by a
291	311		compact and operated by an Indian tribe shall be conducted solely
292	312		pursuant to the requirements of the compact.
293	313		G. If an organization licensee operates or attempts to operate
294	314		more player terminals which offer authorized games than it is
295	315		authorized to offer to the public by this act or the terms of its
296	316		license, upon written notice from the Commission, such activity
297	317		shall cease forthwith. Such activity shall constitute a basis upon
298	318		which the Commission may suspend or revoke the licensee 's license.
299	319		The Commission shall promul gate any rules and regulations necessary
300	320		to enforce the provisions of this subsection.
301	321		H. This act is game-specific and shall not be construed to
302	322		allow the operation of any ot her form of gaming unless specifically
303		-	allowed by this act. This act shall not permit the operation of
304		-	slot machines, house-banked card games, house-banked table games
305		-	involving dice or roulette wheels, or games where winners are
306		-	determined by wagering on the outcome of a sports contest ; provided,
307		-	however, that in-person wagering and wagering conducted on a mobile
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	351	+	allowed by this act. This act shall not permit the operation of
	352	+	slot machines, house-banked card games, house-banked table games
	353	+	involving dice or roulette wheels, or games where winners are
	354	+	determined by wagering on the outcome of a sports contest ; provided,
	355	+	however, that in-person wagering and wagering conducted on a mobile
334	356		device on the outcome of sports contests may be conducted in
335	357		accordance with Section 3 of this act.
336	358		SECTION 2. AMENDATORY 3A O.S. 2021, Section 280, is
337	359		amended to read as follows:
338	360		Section 280. The State of Oklahoma through the conc urrence of
339	361		the Governor after considering the executive prerogatives of that
340	362		office and the power to negotiate the terms of a compact between the
341	363		state and a tribe, and by means of the execution of the State-Tribal
342	364		Gaming Act, and with the concurrence of t he State Legislature
343	365		through the enactment of the State-Tribal Gaming Act, hereby makes
344	366		the following offer of a model tribal gaming compact Model Tribal
345	367		Gaming Compact regarding gaming to all fed erally recognized Indian
346	368		tribes as identified in the Federal Register within this state that
347	369		own or are the beneficial owners of Indian lands as defined by the
348	370		Indian Gaming Regulatory Act, 25 U.S.C., Section 2703(4), and over
349	371		which the tribe has jurisdict ion as recognized by the S ecretary of
350	372		the Interior and is a part of the trib e's "Indian reservation" as
351	373		defined in 25 C.F.R., Part 151.2 or has been acquired pursuant to 25
352	374		C.F.R., Part 151, which, if accepted, shall constitute a gaming
353		-	compact between this state and the accepting tribe for purposes of
354		-	the Indian Gaming Regulatory Act. Acceptance of the offer contained
355		-	in this section shall be through the signature of the chief
356		-	executive officer of the tribal government whose authority to enter
357		-	into the compact Compact shall be set forth in an accompanying law
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	403	+	compact between this state and the accepting tribe for purposes of
	404	+	the Indian Gaming Regulatory Act. Acceptance of the offer contained
	405	+	in this section shall be through the signature of the chief
	406	+	executive officer of the tribal government whose authority to enter
	407	+	into the compact Compact shall be set forth in an accompanying law
384	408		or ordinance or reso lution by the governing body of the tribe, a
385	409		copy of which shall be provided by the tribe to the Gover nor. No
386	410		further action by the Governor or the state is required before the
387	411		compact Compact can take effect. A tribe accepting this Model
388	412		Tribal Gaming Compact is responsible for submitting a copy of the
389	413		Compact executed by the tribe to the Secretary of the Inter ior for
390	414		approval and publication in the Federal Register. The tribe shal l
391	415		provide a copy of the executed Compact to the Governor. No tribe
392	416		shall be required to agree to terms different than the terms set
393	417		forth in the Model Tribal Gaming Compact, which is set forth in
394	418		Section 281 of this title. As a precondition to execution of the
395	419		Model Tribal Gaming Compact by any tribe, the tribe must have paid
396	420		or entered into a written agreement for payment of any fines
397	421		assessed prior to the effective date of the Stat e-Tribal Gaming Act
398	422		by the federal government with respect to the tribe 's gaming
399	423		activities pursuant to the Indian Gaming Regulatory Act.
400	424		Notwithstanding the provisions of Sections 941 through 988 of
401	425		Title 21 of the Oklahoma Statutes, the conducting of and the
402	426		participation in any game authorized by the model compact Model
403		-	Tribal Gaming Compact set forth in Section 281 of this title are
404		-	lawful when played pursuant to a compact which has become effective.
405		-	1. Prior to July 1, 2008, of all fees received by the state
406		-	pursuant to subsection A of Part 11 of the Model Tribal Gaming
407		-	Compact set forth in Sect ion 281 of this title:
408	427
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	455	+	Tribal Gaming Compact set forth in Section 281 of this title are
	456	+	lawful when played pursuant to a compact which has become effective.
	457	+	1. Prior to July 1, 2008, of all fees received by the state
	458	+	pursuant to subsection A of Part 11 of the Model Tribal Gaming
	459	+	Compact set forth in Sect ion 281 of this title:
434	460		a. twelve percent (12%) sha ll be deposited in the
435	461		Oklahoma Higher Learning Access Trust Fund, and
436	462		b. eighty-eight percent (88%) of such fees shall be
437	463		deposited in the Education Reform Revolving Fund.
438	464		2. On or after July 1, 2008, of all fees received by the state
439	465		pursuant to subsection A of Part 11 of the Model Tribal Gaming
440	466		Compact set forth in Section 281 of this title and Gaming Compact
441	467		Supplements offered pursuant to Section 2 280.1 of this title and
442	468		Section 3 of this act:
443	469		a. twelve percent (12%) shall be deposited in the General
444	470		Revenue Fund, and
445	471		b. eighty-eight percent (88%) of such fees shall be
446	472		deposited in the Education Reform Revolving Fund.
447	473		Provided, the first Twenty Thous and Eight Hundred Thirty-three
448	474		Dollars and thirty-three cents ($20,833.33) of all fees received
449	475		each month by the state pursuant to subsection A of Part 11 of the
450	476		Model Tribal Gaming Compact set forth in Section 281 of this title
451	477		and Gaming Compact Supplements offered pursuant to Secti on 2 280.1
452	478		of this title and Section 3 of this act shall be transferred t o the
453		-	Department of Mental Health and Substance Abuse Services for the
454		-	treatment of compulsive gambling disorder and educatio nal programs
455		-	related to such disorder.
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	507	+	Department of Mental Health and Substance Abuse Services for the
	508	+	treatment of compulsive gambling disorder and educatio nal programs
	509	+	related to such disorder.
482	510		SECTION 3. NEW LAW A new section of law to be codified
483	511		in the Oklahoma Statutes as Section 280.2 of Title 3A, unless there
484	512		is created a duplication in numbering, reads as follows:
485	513		A. Provided that federal laws permit and pursuant to the offer
486	514		of the Model Tribal Gaming Compact made in Section 280 of Title 3A
487	515		of the Oklahoma Statutes and the definition of "covered games" in
488	516		the Model Tribal Gaming Compact codified in Section 281 of Title 3A
489	517		of the Oklahoma Statutes, which said codified compact o ffer provides
490	518		the state may approve additional forms of covered games under said
491	519		compact by amendment of the State-Tribal Gaming Act and a compacting
492	520		tribe may operate such add itional forms of covered game s by written
493	521		supplement to an existing compact, the state hereby approves,
494	522		subject to this section, an additional game offering as follows:
495	523		"Sports pools" means any in-person wagering and wagering
496	524		conducted on a mobile device on the outcome of sporting events or
497	525		other events, other than horse or other anima l races.
498	526		B. Should a tribe that has compacted with the state in
499	527		accordance with Sections 280 and 281 of Title 3A of the Oklahoma
500	528		Statutes elect to accept this offer of an additional covered game
501	529		and, accordingly, to operate sp orts pools under the terms of its
502		-	existing gaming compact with the state, said t ribe shall execute a
503		-	supplement to said compact, to provide as follows:
504		-	MODEL TRIBAL GAMING COMPACT SUPPLEMENT
505		-	Between the [Name of Tribe]
506	530
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	558	+	existing gaming compact with the state, said t ribe shall execute a
	559	+	supplement to said compact, to provide as follows:
	560	+	MODEL TRIBAL GAMING COMPACT SUPPLEMENT
	561	+	Between the [Name of Tribe]
532	562		and the STATE OF OKLAHOMA
533	563		To be governed in accord with the [Name of Tribe]'s State-Tribal
534	564		Gaming Compact ("Compact"), approved by the United States Department
535	565		of the Interior on [Date], the [Name of Tr ibe] ("Tribe") accepts the
536	566		state's offer of additional covered game codified in Section 280.2
537	567		of Title 3A of the Oklahom a Statutes, which offer and this
538	568		acceptance are subject to the following terms:
539	569		Part 1. TITLE
540	570		This document shall be referred to as the "[Name of Tribe] and
541	571		State of Oklahoma Gaming Compact Sports Pools Supplement (Gaming
542	572		Compact Supplement)".
543	573		Part 2. TERMS
544	574		A. The Tribe hereby memorializes its election to ac cept the
545	575		state's offer of an additional covered game, which offer is codified
546	576		in Section 280.2 of Title 3A of the Oklahoma Statutes. The Tribe
547	577		further certifies and agrees it shall not offer such add itional
548	578		covered game unless and until doing so would be legal under federal
549	579		law.
550	580		B. The Tribe agrees, subject to the enforcement and ex clusivity
551	581		provisions of its Compact, to pay to the state a fee derived from
552		-	sports pool revenues cal culated as set forth in paragraph 2 of this
553		-	subsection. Such fee shall be paid no later than the t wentieth day
554		-	of the month for revenues received by the Tribe in the preceding
555		-	month; and
556	582
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	610	+	sports pool revenues cal culated as set forth in paragraph 2 of this
	611	+	subsection. Such fee shall be paid no later than the t wentieth day
	612	+	of the month for revenues received by the Tribe in the preceding
	613	+	month; and
582	614		1. The fee shall be:
583	615		a. four percent (4%) of the first Five Million Dollars
584	616		($5,000,000.00) of monthly net win received by a Tribe
585	617		in a calendar year from the pay of sports pools,
586	618		b. five percent (5%) of the next Five Milli on Dollars
587	619		($5,000,000.00) of adjusted gross revenues received by
588	620		a Tribe in a calendar year from the play of sports
589	621		pools, and
590	622		c. six percent (6%) of all subsequent adjusted gross
591	623		revenues received by a Tribe in a calendar year from
592	624		the play of sports pools.
593	625		Payments of such fees shall be made to the Treasurer of the State of
594	626		Oklahoma. Nothing herein shall require the allocation of such fees
595	627		to particular state purposes, including, but not limited t o, the
596	628		actual costs of performing the State's regulatory responsibilities
597	629		hereunder. "Net win" shall mean all money wagered les s prizes paid
598	630		out and less applicable fed eral taxes. For all purposes, such
599	631		payment shall be deemed an exclusivity a nd fee payment under
600	632		paragraph 2 of subsection A of Part 11 of the State-Tribal Gaming
601	633		Compact between the electing Tribe and the State.
602		-	C. The Tribe's operation of sports pools pursuant to this
603		-	Gaming Compact Supplement shall, for all purposes, including
604		-	enforcement and exclusivity, be treated as subject to and lawfully
605		-	conducted under the terms and provisions of the Compact.
606	634
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	662	+	C. The Tribe's operation of sports pools pursuant to this
	663	+	Gaming Compact Supplement shall, for all purposes, including
	664	+	enforcement and exclusivity, be treated as subject to and lawfully
	665	+	conducted under the terms and provisions of the Compact.
632	666		Part 3. AUTHORITY TO EXECUTE
633	667		This Gaming Compact Supplement, t o the extent it conforms with
634	668		Section 280.2 of Title 3A of the Oklah oma Statutes, is deemed
635	669		approved by the State of Oklahoma. No further action of the State
636	670		or any state official is necessary for this Gaming Compact
637	671		Supplement to take effect upon approva l by the Secretary of the
638	672		United States Department of the Interior a nd publication in the
639	673		Federal Register. The undersigned tribal official(s) represents
640	674		that he or she is duly authorized and h as the authority to execute
641	675		this Gaming Compact Supplement on behalf of the Tribe for whom he or
642	676		she is signing.
643	677		APPROVED:
644	678		[Name of Tribe]
645	679		________________________ Date: __________
646	680		[Title]
647	681		C. A tribe electing to accept this additional game offering is
648	682		responsible for submitting a copy of the executed supplement to the
649	683		Secretary of the United States Department of the Interior for
650	684		approval and publication in the Federal Register.
651		-	D. Upon approval of a supplement by the Secretary of the United
652		-	States Department of the Interior, said supplement shall be
653		-	construed as an acceptance of this offer and a supplement to the
654		-	Tribe's existing State-Tribal Gaming Compact with the State.
655	685
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	713	+	D. Upon approval of a supplement by the Secretary of the United
	714	+	States Department of the Interior, said supplement shall be
	715	+	construed as an acceptance of this offer and a supplement to the
	716	+	Tribe's existing State-Tribal Gaming Compact with the State.
681	717		Thereafter, sports pools shall be deemed a covered game pursuant to
682	718		said Compact.
683	719		E. The Tribe is entitled to keep an amount equal to state
684	720		payments from the operation of sports pools. For all purposes, such
685	721		payment shall be deemed an exclusivity and fee payment under
686	722		paragraph 2 of subsection A of Part 11 of the State -Tribal Gaming
687	723		Compact between the electing Tribe and the State.
688	724		F. The offer contained in this section shall not be construed
689	725		to permit the operat ion of any additional form of gaming by
690	726		organization licensees or permit any additional electronic or
691	727		machine gaming within Oklaho ma.
692	728		G. Notwithstanding the provi sions of Sections 941 through 988
693	729		of Title 21 of the Oklahoma Statutes, the conducting of and
694	730		participation in any game authorized pursuant to this section are
695	731		lawful when played pursuant to a compact supplement which has b ecome
696	732		effective in accordance wit h this section.
697	733		SECTION 4. This act shall become effective November 1, 2023.
698	734
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723		-
724		-	Passed the House of Representatives the 21st day of March, 2023.
725		-
726		-
727		-
728		-
729		-	Presiding Officer of the House
730		-	of Representatives
731		-
732		-
733		-
734		-	Passed the Senate the ____ day of __________, 2023.
735		-
736		-
737		-
738		-
739		-	Presiding Officer of the Senate
740		-
741		-
	735	+	COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS AND BUDGET, dated
	736	+	03/06/2023 - DO PASS, As Amended and Coauthored.