§ 41-9.1-5 - State lottery division – Jurisdiction – Powers.
SECTION 41-9.1-5
§ 41-9.1-5 State lottery division –Jurisdiction – Powers. – (a) In addition to its jurisdiction and powers set forth in chapter 61 of title42, the state lottery division shall also have such jurisdiction and powers asprovided for in this title. The state lottery division shall have jurisdictionover and shall supervise all gaming operations governed by this chapter. Thestate lottery division shall have all powers necessary and proper to fully andeffectively execute this chapter; including, but not limited to, the authorityto do all of the following:
(1) Investigate applicants and determine the eligibility ofapplicants for licenses or registration and to grant licenses to applicants inaccordance with this chapter and the rules promulgated under this chapter.
(2) Have jurisdiction over and supervise casino gamingauthorized by this chapter and all persons in casinos where gaming is conductedunder this chapter.
(3) Enter, to the extent permissible under the Constitutionsof the State of Rhode Island and of the United States of America, through itsinvestigators agents, auditors, and the state police at any time without awarrant and without notice to the licensee, the premises, offices, casinos,facilities or other places of business of a casino licensee or gaming supplierpermittee where evidence of the compliance or noncompliance with this chapteror the rules promulgated by the state lottery division is likely to be found,for the following purposes:
(i) To inspect and examine all premises wherein casino gamingor the business of gaming or the business of a gaming supplier is conducted, orwhere any records of the activities are prepared.
(ii) To inspect, examine, audit, impound, seize or assumephysical control of, or summarily remove from the premises all books, ledgers,documents, writings, photocopies, correspondence, records, videotapes,including electronically stored records, money receptacles, other containersand their contents, equipment in which the records are stored, or other gamingrelated equipment and supplies on or around the premises including countingrooms.
(iii) To inspect the person, and inspect, examine and seizepersonal effects present in a casino facility licensed under this chapter, ofany holder of a license or registration issued pursuant to this chapter whilethat person is present in a licensed casino facility.
(iv) To investigate and deter alleged violations of thischapter or the rules promulgated by the state lottery division.
(4) Investigate alleged violations of this chapter or rulespromulgated by the state lottery division and to take appropriate disciplinaryaction against a licensee, permittee or any other person or holder of anoccupational license or permit for a violation, or institute appropriate legalaction for enforcement, or both.
(5) Adopt standards for the licensing or permitting of allpersons pursuant to this chapter, as well as for electronic or mechanicalgambling games, and to establish fees for such licenses and permits.
(6) Adopt appropriate standards for all casino gamingfacilities and equipment.
(7) Require that all records of casino licensees and gamingsupplier permittees, including financial or other statements, be kept on thepremises of the casino licensee or gaming supplier permittee in the mannerprescribed by the state lottery division.
(8) Require that the casino licensee submit to the statelottery division an annual balance sheet, profit and loss statement, and anyother information the state lottery division considers necessary in order toeffectively administer this chapter, all rules promulgated by the state lotterydivision, and orders and final decisions made under this chapter.
(9) Prescribe a form to be used by any licensee involved inthe ownership or management of gambling operations as an application foremployment for prospective employees.
(10) Revoke or suspend licenses or permits, impose fines andpenalties as the state lottery division considers necessary and in compliancewith this chapter and applicable laws of the state regarding administrativeprocedure, and review and decide the renewal of licenses.
(11) In addition to a disassociated person, eject or excludeor authorize the ejection or exclusion of a person from a casino if the personviolates the provisions of this chapter, rules promulgated by the state lotterydivision or final orders of the state lottery division or when the statelottery division determines that the person's conduct or reputation is suchthat his or her presence within the casino gaming facilities may compromise thehonesty and integrity of the gambling operations or interfere with the orderlyconduct of the gaming operations. However, the propriety of the election orexclusion is subject to a subsequent hearing by the state lottery division.
(12) Suspend, revoke or restrict licenses and permits, andrequire the removal of a licensee or permittee or an employee of a licensee orpermittee, for a violation of this chapter or a rule promulgated by the statelottery division or for engaging in a fraudulent practice, and impose civilpenalties pursuant to the provisions of this chapter.
(13) Disqualify a person in accordance with the applicableprovisions of this chapter.
(14) In addition to the authority provided under subsection(a)(12), revoke or suspend a casino license or impose any other disciplinaryaction for any of the following reasons:
(i) The casino licensee has violated the provisions ofchapter 2 of title 3 or rules promulgated pursuant to this chapter.
(ii) At any time the licensee no longer meets the eligibilityrequirements or suitability determination by the state lottery division for acasino license under this chapter.
(iii) The failure to revoke or suspend the license wouldundermine the public's confidence in the Rhode Island gaming industry.
(15) Conduct periodic compliance or special or focused auditsof casinos authorized under this chapter. Said audits may be conducted by stateagency personnel or private sector audit firms and shall be in addition toannual financial audits conducted by certified public accountant firms.
(16) Establish minimum levels of insurance to be maintainedby licensees.
(17) Perform a background check, at the vendor's expense, ofany vendor using the same standards that the state lottery division uses indetermining whether to grant a gaming or non-gaming supplier's permit.
(18) Review the business practices of a casino licenseeincluding, but not limited to, the price and quality of goods and servicesoffered to patrons, and take disciplinary action as the state lottery divisionconsiders appropriate to prevent practices that undermine the public'sconfidence in the Rhode Island gaming industry.
(19) Review a holder of a license, permit or registration ifthat holder is under review or is otherwise subject to discipline by aregulatory body in any other jurisdiction for a violation of a gaming law orregulation in that jurisdiction.
(20) Take any other action as may be reasonable orappropriate to enforce this chapter and rules promulgated by the state lotterydivision.
(b) The state lottery division may seek and shall receive thecooperation and assistance of the department of state police and department ofattorney general in conducting background investigations of applicants and infulfilling its responsibilities under this chapter.
(c) The state lottery division shall establish, issue andpromulgate rules and regulations pertaining to any or all matters within thestate lottery division's jurisdiction, in accordance with the provisions of thestate administrative procedures act, chapter 35 of title 42, including, but notlimited to:
(1) The issuance of any license, registration, or permitauthorized by this chapter or other law providing for gaming operations andactivities subject to regulation of the state lottery division.
(2) The methods and procedures for making an application fora license, registration, or permit to be considered by the state lotterydivision.
(3) The methods for providing to the state lottery divisioninformation concerning a person's family, habits, character, associates,criminal record, business activities, and financial affairs.
(4) Enforcement of this chapter, gaming laws administered bythe state lottery division, and rules of the state lottery division includingimposition and collection of fines, penalties, and other sanctions which may beimposed by the state lottery division against a casino operator or any otherlicensee or permittee of the state lottery division.
(5) The operation and management of the facility, the hiringof employees thereof, the establishment of prevention, education and otherservices related to pathological gambling, the conduct of gaming, electronicfunds transfer terminals, audits, annual reports, prohibited conduct, and suchother matters as the state lottery division shall determine.
(d) The state lottery division may conduct hearings or maydesignate a hearing officer or hearing panel to conduct hearings and inconnection therewith may:
(1) Issue subpoenas and compel the attendance of witnesses orthe production of documents.
(2) Administer oath.
(3) Require testimony under oath before the hearing officeror hearing panel in the course of a hearing being held for any reason.
(4) Issue written interrogatories.
(e) Notwithstanding any other provisions of the general lawsor regulations adopted thereunder to the contrary, including, but not limitedto, the provisions of chapter 2 of title 37, and chapter 61 of title 42, thestate lottery division is hereby authorized, empowered and directed to enterinto a Master Contract with the Narragansett Indian Tribe and Harrah'sEntertainment, Inc. or an Affiliate thereof ("Harrah's") which contract willhave a term commencing on the date of execution and expiring ten (10) yearsfrom the date that the casino opens for business, and to fix in the MasterContract for the duration of such term the following: the casino license fee;the rate of taxation on the adjusted gross receipts from gaming authorizedunder this chapter; the two (2) year tax revenue insurance policy; the hoteloccupancy tax which shall be in lieu of all other parking, admission and otherrelated patron taxes and fees; the project investment requirement of the casinolicensee; the annual funding covenant of the casino licensee in favor of theRhode Island Council on Problem Gambling; and the annual funding covenant ofthe casino licensee in connection with a joint marketing budget in favor of theRhode Island Hospitality and Tourism Association and Rhode Island ConventionCenter and Visitors Bureau, all as set forth and described in § 41-9.1-12.Insofar as the provisions of this act are inconsistent with the provisions ofany other general or special law, the provisions of this act shall becontrolling. The state does hereby pledge and agree under this act that thestate will not limit, alter, diminish, or adversely impact the rights oreconomic benefits which vest in the casino licensee under the terms of theMaster Contract authorized hereby, unless authorized by this act, and the statelottery division is hereby authorized, empowered and directed to memorializethis pledge and agreement on behalf of the state in the Master Contract.
(f) After the expiration of the ten (10) year period of theMaster Contract described above, the parties thereto shall renegotiate thewagering tax rates set forth in § 41-9.1-12(b) and the casino licenserenewal fee set forth in § 41-9.1-11.