HOUSE OF REPRESENTATIVES

H.B. NO.

2379

TWENTY-SIXTH LEGISLATURE, 2012

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO GAMING.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


PART I

     SECTION 1.  The Hawaiian Homes Commission Act, 1920, as amended, is amended by adding a new section to be appropriately designated and to read as follows:

     "§A.  Gaming; commission authority.  (a)  The commission shall have the authority to determine whether gaming operations shall be allowed on Hawaiian home lands pursuant to chapter    , Hawaii Revised Statutes.  Authority for gaming operations on Hawaiian home lands shall require an affirmative resolution approved by a majority vote of the commission.

     (b)  Upon authorization by the commission for gaming operations pursuant to subsection (a), the commission shall:

     (1)  Consult with the beneficiaries of this Act to determine the appropriateness of a prospective gaming site; and

     (2)  Designate the specific parcels upon which gaming shall be allowed."

     SECTION 2.  Section 204.5, Hawaiian Homes Commission Act, 1920, as amended, is amended to read as follows:

     "§204.5.  Additional powers.  In addition and supplemental to the powers granted to the department by law, and notwithstanding any law to the contrary, the department may:

     (1)  With the approval of the governor, undertake and carry out the development of any Hawaiian home lands available for lease under and pursuant to section 207 of this Act by assembling these lands in residential developments and providing for the construction, reconstruction, improvement, alteration, or repair of public facilities therein, including, without limitation, streets, storm drainage systems, pedestrian ways, water facilities and systems, sidewalks, street lighting, sanitary sewerage facilities and systems, utility and service corridors, and utility lines, where applicable, sufficient to adequately service developable improvements therein, sites for schools, parks, off-street parking facilities, and other community facilities;

     (2)  With the approval of the governor, undertake and carry out the development of available lands for homestead, commercial, and multipurpose projects as provided in section 220.5 of this Act, as a developer under this section or in association with a developer agreement entered into pursuant to this section by providing for the construction, reconstruction, improvement, alteration, or repair of public facilities for development, including, without limitation, streets, storm drainage systems, pedestrian ways, water facilities and systems, sidewalks, street lighting, sanitary sewerage facilities and systems, utility and service corridors, and utility lines, where applicable, sufficient to adequately service developable improvements therein, sites for schools, parks, off-street parking facilities, and other community facilities;

     (3)  With the approval of the governor, designate by resolution of the commission all or any portion of a development or multiple developments undertaken pursuant to this section an "undertaking" under part III of chapter 39, Hawaii Revised Statutes; [and]

     (4)  Exercise the powers granted under section 39-53, Hawaii Revised Statutes, including the power to issue revenue bonds from time to time as authorized by the legislature[.]; and

     (5)  Develop Hawaiian home lands, as authorized by the commission pursuant to section A, for the purpose of establishing gaming operations subject to chapter    , Hawaii Revised Statutes.

     All provisions of part III of chapter 39, Hawaii Revised Statutes, shall apply to the department and all revenue bonds issued by the department shall be issued pursuant to the provisions of that part, except these revenue bonds shall be issued in the name of the department, and not in the name of the State.

     As applied to the department, the term "undertaking" as used in part III of chapter 39 shall include a residential development or a development of homestead, commercial, or multipurpose projects under this Act.  The term "revenue" as used in part III of chapter 39, shall include all or any portion of the rentals derived from the leasing of Hawaiian home lands or available lands, whether or not the property is a part of the development being financed."

     SECTION 3.  Section 213.6, Hawaiian Homes Commission Act, 1920, as amended, is amended to read as follows:

     "§213.6.  Hawaiian home lands trust fund.  (a)  There is established a trust fund to be known as the Hawaiian home lands trust fund, into which shall be deposited all appropriations by the state legislature and moneys pursuant to section    -4(b), Hawaii Revised Statutes, specified to be deposited therein.  Moneys of the Hawaiian home lands trust fund shall be expended by the department, as provided by law, upon approval by the commission and shall be used for capital improvements and other purposes undertaken in furtherance of the Act[.]; provided that moneys deposited pursuant to section    -4(b), Hawaii Revised Statutes, shall only be used to develop Hawaiian home land communities, including the construction, reconstruction, improvement, alteration, or repair of public and community facilities.  The department shall have a fiduciary responsibility toward the trust fund and shall provide annual reports therefor to the legislature and to the beneficiaries of the trust.

     (b)  The commission may deposit moneys from the trust fund into depositories other than the state treasury and may manage, invest, and reinvest moneys in the trust fund.  The commission may hold, purchase, sell, assign, transfer, or dispose of any securities and investments in which any of the moneys have been invested, as well as the proceeds of the investments.  Moneys from the trust fund that are deposited into depositories other than the state treasury shall be exempt from the requirements of chapters 36 and 38.  Any interest or other earnings arising out of investments from the trust fund shall be credited to and deposited into the trust fund."

PART II

     SECTION 4.  The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

GAMING

     §    -1   Definitions.  As used in this chapter:

     "Commission" means the Hawaii gaming commission.

     "Gaming operation" means the operation of games licensed under this chapter, including bingo, lottery, baccarat, twenty-one, poker, craps, slot machine, video game of chance, roulette wheel, klondike table, punch board, faro layout, keno layout, numbers ticket, push card, jar ticket, pull tab, or other game of chance that is authorized by the commission.

     "Gross receipts" means the total of:

     (1)  Cash received as revenue from gaming operations;

     (2)  Cash received in payment for credit extended by a licensee to a patron for purposes of gaming; and

     (3)  Compensation received for conducting any game in which the licensee is not party to a wager.

Gross receipts do not include counterfeit money or tokens, coins of other countries that are received in gaming devices, cash taken in fraudulent acts perpetrated against a licensee for which the licensee is not reimbursed, and cash received as entry fees for contests or tournaments in which individuals compete for prizes.

     "Individual" means a natural person.

     §    -2  Gaming commission; established; duties.  (a)  There is established a Hawaii gaming commission within the department of commerce and consumer affairs.  The governor shall appoint five members of the commission pursuant to section 26-34.

     (b)  The commission shall:

     (1)  Establish the qualifications of any applicant for licensure to conduct gaming operations under this chapter; provided that an applicant shall be a corporation properly incorporated in the State;

     (2)  Evaluate applicants and award gaming operation licenses to responsive and qualified applicants who submit a bid that is expected to best fit the needs of the community located in an area designated by the Hawaiian homes commission pursuant to section A(b), Hawaiian Homes Commission Act, 1920, as amended;

     (3)  Collect all taxes and fees imposed; and

     (4)  Regulate gaming operations established under this chapter.

     §    -3  Gaming; where permitted.  Licenses issued by the commission pursuant to section    -2(b) shall authorize gaming operations only on Hawaiian home lands, as designated by the Hawaiian homes commission pursuant to section A, Hawaiian Homes Commission Act, 1920, as amended.

     §    -4  Wagering tax; distribution.  (a)  A wagering tax shall be imposed on the monthly gross receipts received from gaming operations authorized under this chapter at the rate of          per cent.  The wagering tax imposed by this section shall be paid to the commission in lieu of all other state taxes on gross or adjusted gross receipts, except income taxes, including taxes levied under chapter 237.  The commission shall retain          per cent for the administrative costs of the commission.

     (b)  After deduction of the commission's administrative costs, the tax collected under subsection (a) shall be allocated as follows:

     (1)  Twenty per cent shall be deposited into the general fund; and

     (2)  Eighty per cent shall be deposited into the Hawaiian home lands trust fund under section 213.6, Hawaiian Homes Commission Act, 1920, as amended.

     §    -5   Rules.  The commission shall adopt rules under chapter 91 to implement this chapter."

PART III

     SECTION 5.  The provisions of the amendments made by this Act to the Hawaiian Homes Commission Act, 1920, as amended, are declared to be severable, and if any section, sentence, clause, or phrase, or the application thereof to any person or circumstances is held ineffective because there is a requirement of having the consent of the United States to take effect, then that portion only shall take effect upon the granting of consent by the United States and effectiveness of the remainder of these amendments or the application thereof shall not be affected.

     SECTION 6.  In codifying the new section added by section 1 of this Act, the revisor of statutes shall substitute an appropriate section number for the letter used in designating the new section in this Act.

     SECTION 7.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 8.  This Act shall take effect upon its approval.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Hawaiian Home Lands; Gaming

 

Description:

Authorizes the Hawaiian homes commission to allow gaming on Hawaiian home lands and to consult with the Hawaiian Homes Commission Act, 1920 beneficiaries and designate specific Hawaiian home lands parcels for the purposes of establishing gaming operations.  Creates the Hawaii gaming commission to regulate gaming operations.  Imposes a wagering tax on gross receipts of gaming operations and provides for distribution to the general fund and Hawaiian home lands trust fund.

 

 

 

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