RELATING TO CASINO GAMING.

HB2222

HOUSE OF REPRESENTATIVES

H.B. NO.

2222

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to casino gaming
.

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

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SECTION
1.
�
The Hawaii Revised Statutes is
amended by adding a new chapter to be appropriately designated and to read as
follows:

"
Chapter

Casino gaming

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� -1
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Limited casino gaming authorized.
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Casino gaming and a system of wagering incorporated therein, as defined
in this chapter, are authorized only to the extent that casino gaming and
wagering is conducted in accordance with this chapter.
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In case of any conflict between this chapter
and any other law regarding casino gambling, this chapter shall prevail.
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This chapter and the rules adopted by the
commission shall apply to all persons who are licensed or otherwise participate
in gaming as permitted under this chapter.

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Definitions.
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As used in this chapter:

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"Affiliate" means a person who,
directly or indirectly, through one or more intermediaries:

����
(1)
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Controls, is controlled by, or is under common
control with;

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(2)
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Is in a partnership or joint venture
relationship with; or

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(3)
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Is a co-shareholder of a corporation, a
co-member of a limited liability company, or a co-partner in a limited
liability partnership with,

a person who
holds or applies for a casino license under this chapter.

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"Agent" means any person who is
employed by any agency of the State, other than the commission, who is assigned
to perform full-time services on behalf of or for the benefit of the commission
regardless of the title or position held by that person.

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"Applicant" means any person who
applies for a license under this chapter.

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"Casino facility" means a
freestanding, land-based structure in which casino gaming permitted under this
chapter may be conducted, which may include bars, restaurants, showrooms,
theaters, or other facilities.
�

"Casino facility" does not include any structure used for
hotel or other transient accommodation lodging purposes.

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"Casino gaming", "limited
casino gaming", "game", or "gaming", as the context
may require, means the operation of games conducted pursuant to this chapter in
a licensed casino facility including but not limited to the games commonly
known as baccarat, twenty-one, poker, craps, slot machine, video gaming of
chance, roulette wheel, klondike table, punch-board, faro layout, numbers
ticket, push car, jar ticket, pull tab, or their common variants, or any other
game of chance that is authorized by the commission as a wagering device.

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"Casino license" means a license
to operate and maintain a casino facility for casino gaming permitted under
this chapter.

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"Chairperson" means the
chairperson of the Hawaii gaming control commission.

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"Commission" means the Hawaii
gaming control commission.

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"Conflict of interest" means a
situation in which the private interest of a member, employee, or agent of the
commission may influence the judgment of the member, employee, or agent in the
performance of the member's, employee's, or agent's public duty under this
chapter.
�
"Conflict of interest"
includes but is not limited to the following:

����
(1)
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Any conduct that would lead a reasonable
person, knowing all of the circumstances, to conclude that the member,
employee, or agent of the commission is biased against or in favor of an
applicant;

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(2)
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Acceptance of any form of compensation other
than from the commission for any services rendered as part of the official
duties of the member, employee, or agent for the commission; or

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(3)
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Participation in any business being transacted
with or before the commission in which the member, employee, or agent of the
commission or the member's, employee's, or agent's parent, spouse, or child has
a financial interest.

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"Department" means the department
of commerce and consumer affairs.

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"Ex parte communication" means
any communication, direct or indirect, regarding a licensing application,
disciplinary action, or a contested case under this chapter other than
communication that takes place during a meeting or hearing conducted under this
chapter or in a manner otherwise authorized by this chapter.

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"Executive director" means the
executive director of the commission.

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"Financial interest" or
"financially interested" means any interest in investments, awarding
of contracts, grants, loans, purchases, leases, sales, or similar matters under
consideration or consummated by the commission or holding a one per cent or
more ownership interest in an applicant or a licensee.
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For purposes of this definition, a member,
employee, or agent of the commission shall be considered to have a financial
interest in a matter under consideration if any of the following circumstances
exist:

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(1)
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The individual owns one per cent or more of
any class of outstanding securities that are issued by a party to the matter
under consideration or consummated by the commission; or

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(2)
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The individual is employed by or is an
independent contractor for a party to the matter under consideration or
consummated by the commission.

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"Gross receipts":

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(1)
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Means the total of:

���������
(A)
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Cash received or retained as winnings by a
licensee;

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

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(C)
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Compensation received for conducting any game
in which a licensee is not party to a wager; and

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(2)
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Does not include:

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(A)
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Counterfeit money or tokens;

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(B)
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Coins of other countries that are received in
gaming devices;

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(C)
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Cash taken in fraudulent acts perpetrated
against a licensee for which the licensee is not reimbursed;

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(D)
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Cash received as entry fees for contests or
tournaments in which patrons compete for prizes; and

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(E)
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The dollar amount of promotional play,
including non-cashable vouchers, coupons, and electronic promotions, redeemed
by wagerers in the casino, up to and including an amount not to exceed twenty
per cent of a licensee's gross receipts.

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"Individual" means a natural
person.

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"Institutional investor" means:

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(1)
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Any retirement fund administered by a public
agency for the exclusive benefit of federal, state, or county public employees;

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(2)
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An employee benefit plan, or pension fund that
is subject to the Employee Retirement Income Security Act of 1974, as amended;

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(3)
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An investment company registered under the
Investment Company Act of 1940;

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(4)
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A collective investment trust organized by a
bank under title 12 Code of Federal Regulations section 9.18;

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(5)
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A closed-end investment trust;

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(6)
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A chartered or licensed life insurance company
or property and casualty insurance company;

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(7)
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A chartered or licensed financial institution;

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(8)
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An investment advisor registered under the
Investment Advisers Act of 1940; and

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(9)
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Any other person as the commission may
determine for reasons consistent with this chapter.

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"Investigative hearing" means any
hearing conducted by the commission or its authorized representative to
investigate and gather information or evidence regarding pending license
applicants, qualifiers, licensees, or alleged or apparent violations of this
chapter or rules adopted by the commission.
�

"Investigative hearing" includes any matter related to an
apparent deficiency, except for informal conferences requested under section ‑11.

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"Managerial employee" means a
person who holds a policymaking position with the commission or any vendor or
licensee under this chapter.

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"Occupational license" means a
license issued by the commission to a person or entity to perform an occupation
relating to casino gaming in the State that the commission has identified as an
occupation that requires a license.

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"Person" means an individual,
association, partnership, estate, trust, corporation, limited liability
company, or other legal entity.

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"Qualifier" means an affiliate,
affiliated company, officer, director, or managerial employee of an applicant,
or a person who holds greater than a five per cent direct or indirect interest
in an applicant.
�
As used in this
definition, "affiliate" and "affiliated company" do not
include a partnership, a joint venture relationship, a co-shareholder of a
corporation, a co-member of a limited liability company, or a co-partner in a
limited liability partnership that has a five per cent or less direct interest in
the applicant and is not involved in the casino as defined in rules adopted by
the commission.

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"Slot machine" means any
mechanical, electrical, or other device, contrivance, or machine that is
authorized by the commission as a wagering device under this chapter which,
upon insertion of a coin, currency, token, or similar object, or upon payment
of any consideration whatsoever, is available to play or operate, the play or
operation of which may deliver or entitle the person playing or operating the
machine to receive cash, premiums, merchandise, tokens, or anything of value
whatsoever, whether the payoff is made automatically from the machine or in any
other manner whatsoever.
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A slot machine:

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(1)
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May utilize spinning reels or video displays,
or both;

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(2)
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May or may not dispense coins, tickets, or
tokens to winning patrons;

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(3)
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May use an electronic credit system for
receiving wagers and making payouts; and

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(4)
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May simulate a table game.

"Slot machine" does not include table
games authorized by the commission as a wagering device under this Act.

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"Supplier" means a person that
the commission has identified under rules adopted by the commission as
requiring a license to provide casino licensees with goods or services
regarding the realty, construction, maintenance, or business of a proposed or
existing casino facility on a regular or continuing basis, including security
businesses, manufacturers, distributors, persons who service gaming devices or
equipment, garbage haulers, maintenance companies, food purveyors, and
construction companies.

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"Supplier's license" means a
license that authorizes a supplier to furnish any equipment, devices, supplies,
or services to a licensed casino facility permitted under this chapter.

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"Table game" means a live gaming
apparatus upon which gaming is conducted or that determines an outcome that is
the object of a wager, including but not limited to baccarat, twenty-one,
blackjack, poker, craps, roulette wheel, electronic or stadium seating games
operated with a live dealer, klondike table, punchboard, faro layout, keno
layout, numbers ticket, push card, jar ticket, pull tab, or other similar games
that are authorized by the commission as a wagering device under this chapter.
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"Table game" does not include slot
machines or video games of chance.

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"Vendor" means a person who is not
licensed under this chapter and supplies any goods or services to a casino
licensee or supplier licensee.

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"Wagerer" means a person who
plays a gambling game authorized under this chapter.

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Hawaii gaming control commission.
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(a)
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There is established the
Hawaii gaming control commission, which shall be a body corporate and a public
instrumentality of the State for the purpose of implementing this chapter.
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The commission shall be placed within the
department for administrative purposes.
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The
commission shall consist of five members to be appointed by the governor with
the advice and consent of the senate under section 26-34.
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Of the five members, one shall be appointed
from a list of nominees submitted to the governor by the president of the
senate and one shall be appointed from a list of nominees submitted to the
governor by the speaker of the house of representatives.
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Appointments of initial commission members
shall be made within ten days of the effective date of this Act.

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(b)
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No
person shall be appointed as a member of the commission or continue to be a
member of the commission if the person:

����
(1)
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Is an elected state official;

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(2)
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Is licensed by the commission pursuant to this
chapter, or is an official of, has a financial interest in, or has a financial
relationship with, any gaming operation subject to the jurisdiction of the
commission pursuant to this chapter;

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(3)
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Is related to any person within the second
degree of consanguinity or affinity who is licensed by the commission pursuant
to this chapter; or

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(4)
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Has been under indictment, convicted, pled
guilty or nolo contendere, or forfeited bail for a felony or a misdemeanor
involving gambling or fraud under the laws of this State, any other state, or
the United States within the ten years prior to appointment, or a local
ordinance in a state involving gambling or fraud that substantially corresponds
to a misdemeanor in that state within the ten years prior to appointment.

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(c)
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The
term of office of a commission member shall be five years.
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Vacancies in the commission shall be filled
for the unexpired term in the same manner as the original appointments;
provided that the governor shall have thirty days following the occurrence of a
vacancy to appoint a successor member to the commission.

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(d)
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After
due notice and public hearing, the governor may remove or suspend for cause any
member of the commission.

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(e)
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Members
of the commission shall:

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(1)
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Be a resident of the State;

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(2)
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Serve part-time;

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(3)
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Be paid $300 for each day in the performance
of official duties; and

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(4)
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Be reimbursed for expenses, including travel
expenses, incurred in the performance of official duties.

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(f)
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Officers
of the commission, including the chairperson, shall be selected by the members.
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The commission, subject to chapter 92, shall
hold at least one meeting in each quarter of the State's fiscal year.
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The commission shall hold its initial meeting
within twenty days of the effective date of this Act.
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Special meetings may be called by the
chairperson or any three members upon seventy-two hours' written notice to each
member.
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Three members shall constitute a
quorum, and a majority vote of the five members present shall be required for
any final determination by the commission.
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The commission shall keep a complete and accurate record of all its
meetings.

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(g)
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Before
assuming the duties of office, each member of the commission shall take an oath
that the member shall faithfully execute the duties of office according to the
laws of the State and shall file and maintain with the director a bond in the
sum of $25,000 with good and sufficient sureties.
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The cost of any bond for any member of the
commission under this section shall be considered a part of the necessary
expenses of the commission.

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(h)
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The
commission shall appoint a person to serve as the executive director of the
commission, who shall be subject to the commission's supervision.
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The commission shall appoint an interim
executive director within ten days of the commission's initial meeting who
shall be exempt from paragraphs (3) and (4) such that the interim executive
director may be a current public employee or regulatory official from a similar
body in another state who temporarily undertakes the role of interim executive
director.
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The executive director shall:

����
(1)
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Hold office at the will of the commission;

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(2)
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Be exempt from chapters 76 and 89;

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(3)
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Devote full time to the duties of the office;

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(4)
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Not hold any other office or employment;

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(5)
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Perform any and all duties that the commission
assigns; and

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(6)
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Receive an annual salary at an amount set by
the commission and be reimbursed for expenses actually and necessarily incurred
in the performance of the executive director's duties.

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(i)
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Except
as otherwise provided by law, the executive director may:

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(1)
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Hire assistants, other officers, and
employees, who shall be exempt from chapters 76 and 89 and who shall serve at
the will of the executive director; and

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(2)
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Appoint committees and consultants necessary
for the efficient operation of casino gaming.

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(j)
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No person shall be hired or appointed under subsection (i)
who:

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(1)
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Is an elected state official;

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(2)
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Is licensed by the commission pursuant to this
chapter or is an official of, has a financial interest in, or has a financial
relationship with, any gaming operation subject to the jurisdiction of this
commission pursuant to this chapter;

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(3)
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Is related to any person within the second
degree of consanguinity or affinity who is licensed by the commission pursuant
to this chapter; or

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(4)
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Has been under indictment, convicted, pled
guilty or nolo contendere, or forfeited bail for a felony or misdemeanor
concerning gambling or fraud under:

���������
(A)
�
The laws of this State, any other state, or
the United States within the last ten years; or

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(B)
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A local ordinance in any state involving
gambling or fraud that substantially corresponds to a misdemeanor in that state
within the ten years prior to employment.

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(k)
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The
salaries of employees hired pursuant to subsection (i) shall be set by the
executive director.

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(l)
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The
commission shall adopt rules in accordance with chapter 91 establishing a code
of ethics for its employees that shall include restrictions prohibiting certain
employees from participating in or wagering on any casino game or casino gaming
operation subject to the jurisdiction of the commission.
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The code of ethics shall be separate from and
in addition to any standards of conduct set forth pursuant to chapter 84.

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(m)
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No
person shall be employed by the commission if:

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(1)
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During the three years immediately preceding
appointment or employment, the person held any direct or indirect interest in,
or was employed by:

���������
(A)
�
A casino licensee under this chapter or in
another jurisdiction; or

���������
(B)
�
A potential casino licensee who had an
application to operate a casino pending before the commission or any other
jurisdiction;

���������
provided
that the person seeking employment may be employed by the commission if the
person's interest in a casino licensee would not, in the opinion of the
commission, interfere with the objective discharge of the person's employment
obligations; provided further that a person shall not be employed by the
commission if the person's interest in the casino licensee constitutes a
controlling interest in that casino licensee; or

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(2)
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The person or the person's spouse, parent,
child, child's spouse, or sibling is a member of the commission, or a director
of, or a person financially interested in, any person licensed as a casino
licensee or casino supplier, or any person who has an application for a casino
or occupational license pending before the commission.

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(n)
�
Each
member of the commission, the executive director, and each key employee, as
determined by the commission, shall file with the governor a financial
disclosure statement:

����
(1)
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Listing all assets, liabilities, and property
and business interests of the member, executive director, key employee, and any
of their spouses; and

����
(2)
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Affirming that the member, executive director,
and key employee are in compliance with this chapter.

The
financial disclosure statement shall be made under oath and filed at the time
of employment and annually thereafter.

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(o)
�
Each
employee of the commission, except the executive director or a key employee,
shall file with the commission at the time of employment a financial disclosure
statement listing all assets, liabilities, property and business interests, and
sources of income of the employee and the employee's spouse.

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(p)
�
A
member of the commission, executive director, or key employee shall not hold
direct or indirect interest in, be employed by, or enter into a contract for
service with, any applicant or person licensed by the commission for a period
of five years after the date of termination of the person's membership on or
employment with the commission.

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(q)
�
An
employee of the commission shall not acquire any direct or indirect interest
in, be employed by, or enter into a contract for services with any applicant or
person licensed by the commission for a period of three years after the date of
termination of the person's employment with the commission.

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(r)
�
A
commission member or a person employed by the commission shall not represent a
person or party other than the State before or against the commission for a
period of three years after the date of termination of the member's term of
office or the employee's period of employment with the commission.

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(s)
�
A
business entity in which a former commission member or employee or agent has an
interest, or any partner, officer, or employee of the business entity, shall
not make any appearance or representation before the commission that is
prohibited to that former member, employee, or agent.

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As used in this subsection, "business
entity" means a corporation, limited liability company, partnership,
limited liability partnership, association, trust, or other form of legal
entity.

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Staff.
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(
a)
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The executive director shall keep records of
all proceedings of the commission and shall preserve all records, books,
documents, and other papers belonging to the commission or entrusted to its
care relating to casino gaming.

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(b)
�
In addition to persons hired under section
‑3(i), the commission may employ any personnel that may
be necessary to carry out its duties related to casino gaming.

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Powers of the commission.
�
(a)
�
The commission shall have all powers
necessary to fully and effectively supervise all casino gaming operations,
including the power to:

����
(1)
�
Administer, regulate, and enforce the system
of casino gaming established by this chapter; provided that the commission's
jurisdiction shall extend to every person, association, corporation,
partnership, trust, and any other entity with a financial interest in or
holding a license under this chapter, or required under this chapter to hold a
license in casino gaming operations in the city and county of Honolulu;

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(2)
�
Issue a twenty-year casino license to operate
a casino facility pursuant to this chapter;

����
(3)
�
Determine the types and numbers of
occupational and supplier's licenses to be permitted under this chapter;

����
(4)
�
Adopt standards for the licensing of all
persons under this chapter subject to the qualifications and standards set
forth in this chapter, issue licenses, and establish and collect fees for these
licenses;

����
(5)
�
Provide for the collection of all taxes
imposed pursuant to this chapter and collect, receive, expend, and account for
all revenues derived from casino gaming within the city and county of Honolulu;

����
(6)
�
Enter at any time, without a warrant and
without notice to a licensee, the premises, offices, casino facility, or other
places of business of a casino licensee, or casino supplier licensee, where
evidence of the compliance or noncompliance with this chapter or rules is likely
to be found.
�
Entry is authorized to:

���������
(A)
�
Inspect and examine all premises wherein
casino gaming or the business of gaming or the business of a supplier is
conducted, or where any records of the activities are prepared;

���������
(B)
�
Inspect, examine, audit, impound, seize, or
assume physical control of, or summarily remove from the premises all books,
ledgers, documents, writings, photocopies of correspondence records,
videotapes, including electronically or digitally stored records, money
receptacles, other containers and their contents, equipment in which the
records are stored, or other gaming-related equipment and supplies on or around
the premises, including counting rooms;

���������
(C)
�
Inspect the person, and inspect, examine, and
seize personal effects present in a casino facility licensed under this chapter
of any holder of a licensed casino facility; and

���������
(D)
�
Investigate and deter alleged violations of
this chapter or rules;

����
(7)
�
Investigate alleged violations of this chapter
and take appropriate disciplinary action against a casino licensee or a holder
of an occupational or supplier's license for a violation or institute
appropriate legal action for enforcement, or both;

����
(8)
�
Be present, through its inspectors and agents,
any time casino gaming operations are conducted in a casino for the purpose of
certifying the casino's revenue, receiving complaints from the public, and
conducting other investigations into the conduct of the casino gaming and the
maintenance of the equipment as from time to time the commission may deem
necessary and proper;

����
(9)
�
Adopt appropriate standards for a casino
facility as well as for electronic or mechanical gaming devices;

���
(10)
�
Require that records, including financial or
other statements, of a casino licensee be kept in the manner prescribed by the
commission and that a licensee involved in the ownership or management of
casino gaming operations submit to the commission:

���������
(A)
�
An annual balance sheet and profit and loss
statement;

���������
(B)
�
A list of the stockholders or other persons
having a five per cent or greater beneficial interest in the gaming activities
of the licensee; and

���������
(C)
�
Any other information the commission deems
necessary to effectively administer this chapter;

���
(11)
�
Conduct hearings; issue subpoenas for the
attendance of witnesses and subpoenas duces tecum for the production of books,
records, and other pertinent documents; and administer oaths and affirmations
to the witnesses when, in the judgment of the commission, it is necessary to
administer or enforce this chapter; provided that the executive director or the
executive director's designee shall also be authorized to issue subpoenas and
administer oaths and affirmations to witnesses;

���
(12)
�
Eject or exclude, or authorize the ejection or
exclusion of, any person from casino facilities where the person is in
violation of this chapter or where the person's conduct or reputation is such
that the person's presence within a casino facility, in the opinion of the
commission, may call into question the honesty and integrity of the casino
gaming operation or interfere with the orderly conduct thereof or any other
action that, in the opinion of the commission, is a detriment or impediment to
the casino gaming operations; provided that the propriety of the ejection or
exclusion shall be subject to subsequent hearing by the commission;

���
(13)
�
Permit a casino licensee of casino gaming
operations to use a wagering system whereby wagerers' money may be converted to
tokens, electronic cards, or chips, which shall be used only for wagering
within the casino facility;

���
(14)
�
Suspend, revoke, or restrict licenses, to
require the removal of a licensee or an employee of a licensee for a violation
of this chapter or a commission rule, or for engaging in a fraudulent practice;

���
(15)
�
Impose and collect fines of up to $5,000
against individuals and up to $10,000 against a licensee for each violation of
this chapter, any rules adopted by the commission, or for any other action that,
in the commission's discretion, is a detriment or impediment to casino gaming
operations;

���
(16)
�
Establish minimum levels of insurance to be
maintained by a licensee;

���
(17)
�
Delegate the execution of any of its powers
for the purpose of administering and enforcing this chapter; and

���
(18)
�
Adopt rules pursuant to chapter 91 to
implement this chapter; provided that the regulations of the Nevada gaming
commission and the Nevada gaming control board, that are in effect on the
effective date of this Act shall be the emergency interim rules of the
commission.
�
As adopted under this
chapter, all references in the Nevada regulations to "Nevada" shall
mean "Hawaii" and all references to any Nevada state department,
agency, commission, statute, or rule shall mean the equivalent or similar department,
agency, commission, statute, or rule of the State.
�
To the extent the Nevada regulations are
inconsistent with this chapter, this chapter shall supersede the Nevada
regulations.
�
Due to the imminent peril
to public health, safety, or morals absent valid rules related to gaming
authorized by this chapter, the commission, under chapter 91, may amend the
emergency interim rules to correct inconsistencies between the Nevada regulations
and this chapter, but the commission shall retain as much of the emergency interim
rules as possible until at least the date on which the casino licensee
authorized by this chapter begins operating the gaming facility authorized
under this chapter.

����
(b)
�
Rules adopted under this chapter shall not be
arbitrary, capricious, or contradictory to the provisions of chapter 91.
�
Rules may include but need not be limited to
rules that:

����
(1)
�
Govern, restrict, approve, or regulate the
casino gaming authorized in this chapter;

����
(2)
�
Promote the safety, security, and integrity of
casino gaming authorized in this chapter;

����
(3)
�
License and regulate, consistent with the
qualifications and standards set forth in this chapter, persons participating
in or involved with casino gaming authorized in this chapter; and

����
(4)
�
Authorize any other action that may be
reasonable or appropriate to enforce this chapter and rules adopted under this
chapter.

����
(c)
�
This section is not intended to limit
warrantless inspections except in accordance with constitutional requirements.

����
� -6
�
Member,
employee, or agent of commission; conduct generally.
�
(a)
�

By January 31 of each year, each member of the commission shall prepare
and file with the commission a disclosure form in which the member shall:

����
(1)
�
Affirm that the member or the member's spouse,
parent, child, or child's spouse is not a member of the board of directors of,
financially interested in, or employed by, a licensee or applicant;

����
(2)
�
Affirm that the member continues to meet all
other criteria for commission membership under this chapter or the rules
adopted by the commission;

����
(3)
�
Disclose any legal or beneficial interest in
any real property that is or may be directly or indirectly involved with gaming
operations authorized by this chapter; and

����
(4)
�
Disclose any other information that may be
required to ensure that the integrity of the commission and its work is
maintained.

����
(b)
�
By January 31 of each year, each employee of
the commission shall prepare and file with the commission a disclosure form in
which the employee shall:

����
(1)
�
Affirm the absence of financial interests
prohibited by this chapter;

����
(2)
�
Disclose any legal or beneficial interests in
any real property that is or that may be directly or indirectly involved with
gaming or gaming operations authorized by this chapter;

����
(3)
�
Disclose whether the employee or the
employee's spouse, parent, child, or child's spouse is financially interested
in or employed by a supplier licensee, or an applicant for a supplier's
license, under this chapter; and

����
(4)
�
Disclose any other information that may be
required to ensure that the integrity of the commission and its work is
maintained.

����
(c)
�
A member, employee, or agent of the
commission who becomes aware that the member, employee, or agent of the
commission or their spouse, parent, or child is a member of the board of
directors of, financially interested in, or employed by a licensee or an applicant
shall immediately provide detailed written notice to the chairperson.

����
(d)
�
A member, employee, or agent of the
commission who has been indicted, charged with, convicted of, pled guilty or
nolo contendere to, or forfeited bail for:

����
(1)
�
A misdemeanor involving gambling, dishonesty,
theft, or fraud;

����
(2)
�
A local ordinance in any state involving
gambling, dishonesty, theft, or fraud that substantially corresponds to a
misdemeanor in that state; or

����
(3)
�
A felony under Hawaii law, the laws of any
other state, or the laws of the United States, or any other jurisdiction,

shall immediately provide detailed written notice of
the conviction or charge to the chairperson.

����
(e)
�
Any member, employee, or agent of the
commission who is negotiating for, or acquires by any means, any interest in
any person who is a licensee or an applicant or is affiliated with a person who
is a licensee or an applicant, shall immediately provide written notice of the
details of the interest to the chairperson.
�

The member, employee, or agent of the commission shall not act on behalf
of the commission with respect to that person.

����
(f)
�
A member, employee, or agent of the
commission shall not enter into any negotiations for employment with any person
or affiliate of any person who is a licensee or an affiliate and shall
immediately provide written notice of the details of any negotiations or
discussions to the chairperson.
�
The
member, employee, or agent of the commission shall not take any action on
behalf of the commission with respect to that person.

����
(g)
�
Any member, employee, or agent of the
commission who receives an invitation, written or oral, to initiate a
discussion concerning employment or the possibility of employment with a
person, or affiliate of a person, who is a licensee or an applicant shall
immediately report the invitation to the chairperson.
�
The member, employee, or agent of the
commission shall not take action on behalf of the commission with respect to
that person.

����
(h)
�
A licensee or an applicant shall not
knowingly initiate a negotiation for, or discussion of, employment with a
member, employee, or agent of the commission.
�

A licensee or an applicant who initiates a negotiation or discussion
about employment shall immediately provide written notice of the details of the
negotiation or discussion to the chairperson as soon as that person becomes
aware that the negotiation or discussion has been initiated with a member,
employee, or agent of the commission.

����
(i)
�
A member, employee, or agent of the
commission, or former member, employee, or agent of the commission, shall not
disseminate or otherwise disclose any material or information in the possession
of the commission that the commission considers confidential, unless
specifically authorized to do so by the chairperson or the commission.

����
(j)
�
A member, employee, or agent of the
commission or a parent, spouse, sibling, or child of a member, employee, or
agent of the commission shall not accept any gift, gratuity, compensation,
travel, lodging, or anything of value, directly or indirectly, from any
licensee, applicant, or any affiliate or representative of a licensee or an
applicant, unless the acceptance conforms to a written policy or directive
issued by the chairperson or the commission.
�

Any member, employee, or agent of the commission who is offered or
receives any gift, gratuity, compensation, travel, lodging, or anything of
value, directly or indirectly, from any licensee or any applicant or affiliate
or representative of a licensee or an applicant shall immediately provide
written notification of the details to the chairperson.

����
(k)
�
A licensee or an applicant, or affiliate or
representative of a licensee or an applicant, shall not, directly or
indirectly, knowingly give or offer to give any gift, gratuity, compensation,
travel, lodging, or anything of value to any member, employee, or agent of the
commission that the member, employee, or agent of the commission is prohibited
from accepting under subsection (j).

����
(l)
�
A member, employee, or agent of the
commission shall not engage in any conduct that constitutes a conflict of
interest, and shall immediately advise the chairperson in writing of the
details of any incident or circumstances that would present the existence of a
conflict of interest with respect to the performance of commission-related work
or duty of the member, employee, or agent of the commission.

����
(m)
�
A member, employee, or agent of the
commission who is approached and offered a bribe in violation of this chapter
shall immediately provide a written account of the details of the incident to
the chairperson and to a law enforcement officer of a law enforcement agency
having jurisdiction.

����
(n)
�
A member, employee, or agent of the
commission shall disclose past involvement with any casino interest in the past
five years and shall not engage in political activity or politically related
activity during the duration of the person's appointment or employment.

����
(o)
�
A former member, employee, or agent of the
commission may appear before the commission as a witness testifying as to
factual matters or actions handled by the member, employee, or agent during the
person's tenure as a member, employee, or agent of the commission.
�
The member, employee, or agent of the
commission shall not receive compensation for appearance other than a standard
witness fee and reimbursement for travel expenses as established by statute or
court rule.

����
(p)
�
A licensee or an applicant or any affiliate
or representative of a licensee or an applicant shall not engage in ex parte
communications concerning a pending application, license, or enforcement action
with members of the commission.
�
A member
of the commission shall not engage in any ex parte communications with a
licensee or an applicant, or with any affiliate or representative of a licensee
or an applicant, concerning a pending application, license, or enforcement
action.

����
(q)
�
Any commission member, licensee, or applicant
or affiliate or representative of a commission member, licensee, or applicant
who receives any ex parte communication in violation of subsection (p), or who
is aware of an attempted communication in violation of subsection (p), shall
immediately report details of the communication or attempted communication in
writing to the chairperson.

����
(r)
�
Any member of the commission who receives an
ex parte communication that attempts to influence that member's official action
shall disclose the source and content of the communication to the chairperson.
�
The chairperson may investigate or initiate
an investigation of the matter with the assistance of the attorney general and
law enforcement to determine if the communication violates subsection (p) or
(q) or other state law.
�
The disclosure
under this section and the investigation shall remain confidential.
�
Following an investigation, the chairperson
shall advise the governor or the commission, or both, of the results of the
investigation and may recommend action, as the chairperson considers
appropriate.

����
(s)
�
A new or current employee or agent of the
commission shall obtain written permission from the executive director before
continuing outside employment held at the time the employee begins to work for
the commission.
�
Permission shall be
denied, or permission previously granted shall be revoked, if the nature of the
work is considered to, or does create, a possible conflict of interest or
otherwise interferes with the duties of the employee or agent for the
commission.

����
(t)
�
An employee or agent of the commission
granted permission for outside employment shall not conduct any business or
perform any activities, including solicitation, related to outside employment
on premises used by the commission or during the employee's working hours for
the commission.

����
(u)
�
Whenever the chairperson is required to file
disclosure forms or report in writing the details of any incident or
circumstance pursuant to this section, the chairperson shall file the forms or
reports to the commission.

����
(v)
�
The chairperson shall report any action the
chairperson has taken or contemplates taking under this section, with respect
to an employee or agent or former employee or former agent, to the commission
at the next meeting of the commission.
�
The
commission may direct the executive director to take additional or different
action.

����
(w)
�
No member, employee, or agent of the
commission may participate in or wager on any gambling game conducted by a
licensee or an applicant or any affiliate of a licensee or an applicant in the
State or in any other jurisdiction, except as follows:

����
(1)
�
A member, employee, or agent of the commission
may participate in and wager on a gambling game conducted by a licensee under
this chapter, to the extent authorized by the chairperson or commission as part
of the person's surveillance, security, or other official duties for the
commission; and

����
(2)
�
A member, employee, or agent of the commission
shall advise the chairperson at least twenty-four hours in advance if the
person plans to be present in a casino in this State, or in another
jurisdiction, operated by a licensee, applicant, or affiliate of a licensee or an
applicant, outside the scope of their official duties for the commission.

����
(x)
�
Violation of this section by a licensee,
applicant, or affiliate or representative of a licensee or an applicant may
result in denial of the application of licensure or revocation or suspension of
license or other disciplinary action by the commission.

����
(y)
�
Violation of this section by a member of the
commission may result in disqualification or constitute cause for removal under
section -3(d) or other disciplinary action as determined by
the commission.

����
(z)
�
A violation of this section by an employee or
agent of the commission shall not result in termination of employment or
require other disciplinary action if the commission determines that the conduct
involved does not violate the purpose of this chapter.
�
Employment shall be terminated:

����
(1)
�
If the employee or agent is a spouse, parent,
child, or spouse of a child of a commission member; or

����
(2)
�
If, after being offered employment or having
begun employment with the commission, the employee or agent intentionally
acquires a financial interest in a licensee or an applicant, or affiliate or
representative of a licensee or an applicant.

����
(aa)
�
If a financial interest in a licensee or an
applicant, or affiliate or representative of a licensee or an applicant, is
acquired by:

����
(1)
�
An employee or agent that has been offered
employment with the commission;

����
(2)
�
An employee of the commission; or

����
(3)
�
The employee's or agent's spouse, parent, or
child,

through no intentional action of the employee or
agent, the employee or agent shall have up to thirty days to divest or
terminate the financial interest.
�
Employment
may be terminated if the interest has not been divested after thirty days.

����
(bb)
�
Violation of this section does not create a
civil cause of action.

����
(cc)
�
As used in this section:

����
"Outside
employment" includes the following:

����
(1)
�
Operation of a proprietorship;

����
(2)
�
Participation in a partnership or group
business enterprise; or

����
(3)
�
Performance as a director or corporate officer
of any for-profit corporation or banking or credit institution.

����
"Political
activity" or "politically related activity" includes:

����
(1)
�
Using the person's official authority or
influence for the purpose of interfering with or affecting the result of an
election;

����
(2)
�
Knowingly soliciting, accepting, or receiving
political contributions from any person;

����
(3)
�
Running for nomination or as a candidate for
election to a partisan political office; or

����
(4)
�
Knowingly soliciting or discouraging the
participation in any political activity of any person who is:

���������
(A)
�
Applying for any compensation, grant,
contract, ruling, license, permit, or certificate pending before the
commission; or

���������
(B)
�
The subject of or a participant in an ongoing
audit, investigation, or enforcement action being carried out by the
commission.

����
� -7
�
Authorization
of limited gaming; application and selection process.
�
(a)
�

Casino gaming shall be permitted only a single location in the city and county
of Honolulu.
�
Any application for a
casino license shall include a casino facility development plan.

����
(b)
�
The commission's applications and forms for a
casino license shall be in the same form and substance as the applications and
forms required for an applicant for a non-restricted Nevada gaming license that
have been adopted by the Nevada gaming commission and Nevada gaming control
board and are in effect on the effective date of this Act.

����
(c)
�
As part of an applicant's application for a
casino license, an applicant shall submit all additional information required
by section -8.

����
(d)
�
Applications for a casino license shall be
submitted to the commission no later than ninety days after the date of the
commission's initial meeting.
�
The
commission shall select one applicant who, in the commission's judgment, best
meets all of the criteria pursuant to section -9 no later
than ninety days after the final date applications are submitted to the
commission.
�
If the applicant selected by
the commission meets all the requirements of this chapter, the commission shall
issue a casino license to that applicant within thirty days after the date the
applicant is selected.

����
� -8
�
Application
for casino license.
�
(a)
�
A person may apply to the commission for a
casino license to conduct a casino gaming operation in the city and county of
Honolulu.
�
The application shall be made
under oath on forms used in Nevada until the commission adopts forms pursuant
to section ‑7 and such forms shall include all of the
following:

����
(1)
�
The name, business address, telephone number,
social security number, and, where applicable, the federal tax identification
number of the applicant and every qualifier;

����
(2)
�
The identity of any business, including, if
applicable, the state of incorporation or registration, in which the applicant
or qualifier has an equity interest of more than five per cent; provided that if
the applicant or qualifier is a corporation, partnership, or other business
entity, the applicant or qualifier shall identify any other corporation,
partnership, or other business entity in which it has an equity interest of
more than five per cent, including, if applicable, the state of incorporation
or registration;

����
(3)
�
An explanation of whether the applicant or
qualifier has developed and opened a new land-based casino in an urban area
within a jurisdiction in the United States that previously did not allow
gaming, including a description of the casino, the casino's gross revenue, and
the amount of revenue the casino has generated for state and local governments
within that jurisdiction;

����
(4)
�
A statement of whether the applicant or qualifier
has been indicted, convicted, pled guilty or nolo contendere, or forfeited bail
for any felony or for a misdemeanor involving gambling, theft, or fraud;
provided that the statement shall include the date, the name and location of
the court, arresting agency, prosecuting agency, the case caption, the docket
number, the offense, the disposition, and the location and length of
incarceration;

����
(5)
�
A statement of whether the applicant or qualifier
has ever been granted any license or certificate issued by a licensing
authority in the State or any other jurisdiction that has been restricted,
revoked, or not renewed; provided that the statement shall describe the facts
and circumstances concerning that restriction, revocation, or nonrenewal,
including the licensing authority, the date each action was taken, and the
reason for each action;

����
(6)
�
A statement of whether the applicant or
qualifier, within the last ten years, has filed or had filed against it a civil
or administrative action or proceeding in bankruptcy;

����
(7)
�
A statement of whether the applicant or
qualifier, within the last five tax years, has been adjudicated by a court or
tribunal to have failed to pay any final amount of any income, sales, or gross
receipts tax due and payable under federal, state, or local law, after exhaustion
of all inter-agency appeals processes; provided that this statement shall
identify the amount of the tax, type of tax, time periods involved, and
resolution;

����
(8)
�
A statement listing the names and titles of
all public officials or officers of any unit of state or county government and
the spouses, parents, and children of those public officials or officers who,
directly or indirectly, own any financial interest in, have any beneficial
interest in, are the creditors of or hold any debt instrument issued by, or
hold or have an interest in any contractual or service relationship with, the
applicant or qualifier.
�
As used in this
paragraph, "public official" or "officer" does not include
a person who would be listed solely because of the person's state or federal
military service;

����
(9)
�
The name and business telephone number of any
attorney, counsel, or any other person representing an applicant or qualifier
in matters before the commission;

���
(10)
�
A description of the applicant's or its
qualifiers' plan for community involvement or investment in the area where the
casino facility will be located; and

���
(11)
�
For the applicant only, a description of any
proposed or approved casino gaming facility, including the economic benefit to
the community, anticipated or actual number of employees, any statement from an
applicant regarding compliance with federal and state affirmative action
guidelines, projected or actual admissions, projected or actual gross receipts,
and scientific market research, if any.

����
(b)
�
Information provided on the application shall
be used as the basis for a thorough background investigation that the
commission shall conduct with respect to each applicant and qualifier; provided
that any financial information submitted by each applicant and qualifier shall
be kept confidential by the commission.
�
An
incomplete application shall be cause for denial of a license by the
commission.

����
(c)
�
Applicants shall submit with their
application a plan for training residents of the State for jobs that are
available at the casino facility.
�
The
plan shall take into consideration the need to provide training to low-income
persons to enable those persons to qualify for jobs that will be created in the
casino facility.

����
(d)
�
Each applicant and qualifier shall disclose
the identity of every person, association, trust, or corporation having a
greater than five per cent direct or indirect financial interest in the casino
gaming operation for which the license is sought.
�
If the disclosed entity is a:

����
(1)
�
Trust, the application shall disclose the
names and addresses of the beneficiaries;

����
(2)
�
Corporation, the application shall disclose
the names and addresses of all stockholders and directors; and

����
(3)
�
Partnership, the application shall disclose the
names and addresses of all partners, both general and limited.

����
(e)
�
A nonrefundable application fee of $1,000,000
shall be paid to the commission by an applicant at the time of filing to defray
the costs associated with an applicant and qualifier's background investigation
conducted by the commission.
�
If the
costs of the investigation exceed $1,000,000, the applicant shall pay the
additional amount to the commission.

����
� -9
�
Criteria
for award of a casino license.
�
(a)
�
The commission shall issue one casino license
to operate a casino facility located in the city and county of Honolulu;
provided that the applicant has paid the application fee required under section
‑8 and is eligible and suitable to receive a casino
license under this chapter and the rules adopted by the commission, and best
satisfy all of the following criteria:

����
(1)
�
The applicant has submitted a casino facility
development plan for the casino facility that provides the likelihood that the
applicant's casino facility will increase tourism, generate jobs, provide
revenue and economic benefit to the local economy, and provide revenue to the
general fund;

����
(2)
�
The applicant or its qualifiers shall have a
bona fide plan for community involvement or investment in the area where the
casino facility will be located;

����
(3)
�
The applicant or its qualifiers has the
financial ability to purchase and maintain adequate liability and casualty
insurance and to provide an adequate surety bond;

����
(4)
�
The applicant or its qualifiers has provided
data identifying the applicant's sources of capital and demonstrating that the
applicant has adequate capital to develop, construct, maintain, and operate the
proposed casino facility;

����
(5)
�
The applicant or its qualifiers has adequate
capitalization to develop, construct, maintain, and operate, for the duration
of the license, the proposed casino facility in accordance with the
requirements of this chapter and rules adopted by the commission and to
responsibly pay off its secured and unsecured debts in accordance with its
financing agreement and other contractual obligations;

����
(6)
�
As of July 1, 2026, the applicant or any of
its qualifiers demonstrate that they have successfully developed and opened, as
opposed to acquired, and currently operate at least four permanent casinos in
any jurisdiction in the United States.
�
As
used in this paragraph, "permanent casino" means a lawfully operating
gaming facility with a minimum of one thousand slot machines and, if table
games were authorized by law, forty table games;

����
(7)
�
Neither the applicant nor any of its
qualifiers have been indicted, convicted, pled guilty or nolo contendere, or
forfeited bail for any felony or for a misdemeanor involving gambling, theft,
or fraud;

����
(8)
�
Neither the applicant nor any of its
qualifiers, within the last ten years, have filed, or had filed against them, a
proceeding for bankruptcy;

����
(9)
�
The extent to which an applicant or any of its
qualifiers have, within the last five tax years, been adjudicated by a court or
tribunal to have failed to pay any final amount of income, sales, or gross
receipts tax due and payable under federal, state, or local law, after
settlements or exhaustion of all inter-agency appeals processes;

���
(10)
�
The extent to which the applicant meets other
standards for the issuance of a casino license that the commission may have
adopted by rule;

���
(11)
�
To ensure the continued integrity of Hawaii
collegiate athletics, neither the applicant, nor any parent or subsidiary of
the applicant, shall permit wagering within the State on Hawaii collegiate
athletics;

���
(12)
�
The adequacy of the applicant's plan for
training residents of the State for jobs that are available at the casino
facility and the extent to which the plan considers the need to provide
training to low-income persons to enable those persons to qualify for jobs that
will be created in the casino facility; and

���
(13)
�
The caliber of the proposed casino gaming
facility, including the proposed casino facility's aesthetic appearance,
location, amount of economic benefit to the community, lack of a business
conflict of interest of the qualifier, anticipated or actual number of
employees, compliance with federal and state affirmative action guidelines, and
projected or actual gross receipts.

����
(b)
�
Any rules adopted pursuant to chapter 91
shall not be arbitrary, capricious, or contradictory to the expressed
provisions of this chapter and shall further define and clarify the criteria
listed in subsection (a) rather than create new conditions for licensure.

����
(c)
�
An applicant shall be ineligible to receive a
casino license if the applicant or any employee or qualifier of the applicant:

����
(1)
�
Has been convicted of a felony under the laws
of this State, any other state, or the United States;

����
(2)
�
Has been convicted of any violation under part
III of chapter 712, or substantially similar laws of another jurisdiction;

����
(3)
�
Knowingly submitted an application for a
license under this chapter that contains false information;

����
(4)
�
Is a member or employee of the commission; or

����
(5)
�
Has had a license to own or operate gaming
facilities in this State or any other jurisdiction revoked.

����
(d)
�
To demonstrate financial ability, the
applicant may include the economic resources available directly or indirectly
to the casino license applicant and its qualifiers.

����
(e)
�
Simultaneous with an applicant's submission
of an application, each applicant and qualifier that is a natural person shall
submit to the commission on fingerprint cards issued by the Federal Bureau of
Investigation or in digital format two sets of fingerprints for each applicant
and qualifier.

����
(f)
�
The commission may revoke the casino license
if the licensee fails to begin regular casino gaming operations within twelve
months of receipt of the commission's approval of the application or twelve
months after a certificate of occupancy for the casino facility is first
issued, whichever is later, upon a finding by the commission that the casino
license revocation is in the best interest of the State.

����
(g)
�
The commission shall establish a process to
facilitate and expedite the approval of the necessary licenses and permits.
�
The commission may establish its own
procedures for the issuance of liquor licenses for any holder of a casino
license under this chapter and the holder of a casino license shall not be
subject to any requirement of the Honolulu liquor commission as to the approval
of forms of live or professional music, dancing, and entertainment; provided
that all other state laws and county ordinances relating to liquor are met.
�
The commission shall be the receiving agency
for any environmental assessment required under chapter 343.

����
(h)
�
Nothing in this chapter shall be interpreted
to prohibit a casino licensee from operating a school to train occupational
licensees.

����
� -10
�
Bond
of licensee.
�
Before a casino
license is issued, the licensee shall file a bond in the sum of $200,000 with
the department.
�
The bond shall be used
to guarantee that the licensee faithfully makes the payments, keeps books and
records, makes reports, and conducts games of chance in conformity with this
chapter and rules adopted by the commission.
�

The bond shall not be canceled by a surety on less than thirty days'
notice in writing to the commission.
�
If
a bond is canceled and the licensee fails to file a new bond with the
commission in the required amount on or before the effective date of
cancellation, the licensee's license shall be revoked.
�
The total and aggregate liability of the
surety on the bond shall be limited to the amount specified in the bond.

����
� -11
�
Application
deficiency.
�
(a)
�
If, in the review of an application submitted
under this chapter, the executive director identifies an apparent deficiency
that, if true, would require denial of the license or the disqualification of a
qualifier, the executive director shall immediately notify the affected
applicant or qualifier in writing of the apparent deficiency.
�
The applicant or qualifier may then request a
confidential informal conference with the executive director to discuss the
factual basis of the apparent deficiency.

����
(b)
�
The executive director shall provide the
applicant or qualifier a reasonable period of time to correct the apparent
deficiency and, if the apparent deficiency is not corrected within the
reasonable time period, the executive director shall find that the apparent
deficiency has not been corrected.
�
Following
this finding, the affected applicant or qualifier shall have an opportunity to
appeal the executive director's finding to the commission.
�
The commission shall conduct an investigative
hearing, pursuant to section ‑17 and in accordance with
rules adopted under this chapter, to determine whether there is sufficient
evidence to support an apparent deficiency finding.
�
At the hearing, the burden of proof shall be
on the executive director to demonstrate that the finding of an apparent
deficiency is supported by law and facts.
�

Any finding by the commission regarding an applicant's or a qualifier's
apparent deficiency shall not constitute a final determination by the
commission as to the suitability of the applicant to hold a license or the
suitability of a qualifier to hold an ownership interest in a casino applicant.

����
(c)
�
At any time prior to a finding by the
commission that a qualifier is unsuitable to hold an ownership interest in a
casino applicant, a qualifier shall have the ability to sell its ownership
interest in the casino applicant to the casino applicant, another qualifier, or
a third party.

����
(d)
�
A qualifier who has been issued a finding of
an apparent deficiency shall have the right to request that the commission
expand the apparent deficiency hearing under this section to include a
determination of the qualifier's suitability to hold an ownership interest in
the casino license applicant.
�
If such a
request is made, the commission shall determine the suitability of the affected
qualifier separate from the suitability of the casino applicant and any of its
other qualifiers.
�
A request by a
qualifier for an extended hearing pursuant to this section shall not prevent
the commission from issuing a license to the applicant.
�
Until the commission determines that a
qualifier under this section is suitable to hold an ownership interest in the
casino applicant, the casino applicant or licensee shall not:

����
(1)
�
Make any direct or indirect payments or
distributions of revenue or other benefits to the qualifier that are related in
any way to the qualifier's interest in the applicant; and

����
(2)
�
Pay any direct or indirect compensation to the
qualifier for services rendered to the applicant, unless specifically approved
and authorized by the commission.

����
� -12
�
Institutional
investor.
�
(a)
�
Unless the commission determines that an
institutional investor is unqualified, an institutional investor holding less
than ten per cent of the equity securities of a casino licensee's affiliate or
affiliated company that is related in any way to the financing of the casino
licensee shall be granted a waiver of the eligibility and suitability
requirements if:

����
(1)
�
The securities are those of a publicly traded
corporation and its holdings of those securities were purchased for investment
purposes only; and

����
(2)
�
Upon request by the commission, the
institutional investor files with the commission a certified statement that it
has no intention of influencing or affecting the affairs of the issuer, the
casino licensee, or its affiliate or affiliated company.

����
(b)
�
The commission may grant a waiver under this
section to an institutional investor holding a higher percentage of securities
than allowed in subsection (a) upon a showing of good cause and if the
conditions specified in subsection (a) are met.

����
(c)
�
An institutional investor granted a waiver
under this section that subsequently intends to influence or affect the affairs
of the issuer shall provide notice to the commission and file an application
for a determination of eligibility and suitability before taking any action
that may influence or affect the affairs of the issuer.

����
(d)
�
Notwithstanding any provisions of this
chapter, an institutional investor may vote on all matters that are put to the
vote of the outstanding security holders of the issuer.

����
(e)
�
If an institutional investor changes its
investment intent or if the commission finds that the institutional investor is
unqualified, no action other than divestiture of the security holdings shall be
taken until there has been compliance with this chapter.

����
(f)
�
The casino licensee or an affiliate or
affiliated company of the casino licensee shall immediately notify the
commission of any information concerning an institutional investor holding its
equity securities that may affect the eligibility and suitability of the
institutional investor for a waiver under this section.

����
(g)
�
If the commission finds that an institutional
investor, holding any security of an affiliate or affiliated company of a
casino licensee that is related in any way to the financing of the casino
licensee, fails to comply with the requirements of this section, or if at any
time the commission finds that, by reason of the extent or nature of its
holdings, an institutional investor is in a position to exercise a substantial
impact upon the controlling interests of a casino licensee, the commission may
take any necessary action to protect the public interest, including requiring
the institutional investor to satisfy the eligibility and suitability
requirements under sections ‑8, ‑9,
and ‑10.

����
� -13
�
Supplier's
licenses.
�
(a)
�
No person shall furnish in excess of $500,000
worth of equipment, devices, or supplies to a licensed casino gaming operation
under this chapter unless the person has first obtained a supplier's license
pursuant to this section.
�
The commission
may issue a supplier's license to any person, firm, or corporation that pays a
nonrefundable application fee as set by the commission upon a determination by
the commission that the applicant is eligible for a supplier's license and upon
payment by the applicant of a $5,000 license fee.
�
Supplier's licenses shall be renewable
annually upon payment of the $5,000 annual license fee and a determination by
the commission that the supplier licensee continues to meet all of the
requirements of this chapter.

����
(b)
�
The holder of a supplier's license may sell
or lease, or contract to sell or lease, gaming equipment and supplies to any
licensee involved in the ownership or management of casino gaming operations.

����
(c)
�
Casino gaming supplies and equipment shall
not be distributed unless supplies and equipment conform to standards adopted
by rules of the commission.

����
(d)
�
A person, firm, or corporation shall be
ineligible to receive a supplier's license if:

����
(1)
�
The person has been convicted of a felony
under the laws of this State, any other state, or the United States;

����
(2)
�
The person has been convicted of any violation
under part III of chapter 712, or substantially similar laws of another
jurisdiction;

����
(3)
�
The person has knowingly submitted an
application for a license under this chapter that contains false information;

����
(4)
�
The person is a member of the commission;

����
(5)
�
The firm or corporation is one in which a
person identified in paragraph (1), (2), (3), or (4) is an officer, director,
or managerial employee;

����
(6)
�
The firm or corporation employs a person,
identified in paragraph (1), (2), (3), or (4), that participates in the
management or operation of casino gaming authorized under this chapter; or

����
(7)
�
The license of the person, firm, or
corporation issued under this chapter, or a license to own or operate casino
gaming facilities in any other jurisdiction, has been revoked.

����
(e)
�
A supplier shall:

����
(1)
�
Furnish to the commission a list of all
equipment, devices, and supplies offered for sale or lease in connection with
casino games authorized under this chapter;

����
(2)
�
Keep books and records for the furnishing of
equipment, devices, and supplies to casino gaming operations separate and
distinct from any other business that the supplier might operate;

����
(3)
�
File quarterly returns with the commission
listing all sales and leases;

����
(4)
�
Permanently affix its name to all its
equipment, devices, and supplies used for casino gaming operations; and

����
(5)
�
File an annual report listing its inventories
of casino gaming equipment, devices, and supplies.

����
(f)
�
Any person who knowingly makes a false
statement on an application is guilty of a petty misdemeanor.

����
(g)
�
Any casino gaming equipment, devices, or
supplies provided by any licensed supplier may either be repaired in the casino
facility or be removed from the casino facility to a facility owned by the
holder of a casino license for repair.
�
Any
supplier's equipment, devices, and supplies that are used by any person in an
unauthorized gaming operation shall be forfeited to the county.

����
� -14
�
Occupational
licenses.
�
(a)
�
The commission may issue an occupational
license to an applicant upon:

����
(1)
�
The payment of a nonrefundable application fee
set by the commission;

����
(2)
�
A determination by the commission that the
applicant is eligible for an occupational license; and

����
(3)
�
Payment of an annual license fee in an amount
set by the commission.

����
(b)
�
To be eligible for an occupational license,
an applicant shall:

����
(1)
�
Be:

���������
(A)
�
At least twenty-one years of age if the
applicant performs any function involved in casino gaming by patrons; or

���������
(B)
�
At least eighteen years of age if the
applicant is seeking an occupational license for a non-gaming function;

����
(2)
�
Not have been convicted of a felony offense in
any jurisdiction or a crime involving dishonesty or moral turpitude; and

����
(3)
�
Have met standards for the holding of an
occupational license as provided in rules adopted by the commission, including
background inquiries and other requirements.

����
(c)
�
Each application for an occupational license
shall be on forms prescribed by the commission and shall contain all
information required by the commission.
�
The
applicant shall set forth in the application whether the applicant has:

����
(1)
�
Been issued prior gaming-related licenses in
any jurisdiction;

����
(2)
�
Been licensed in any other jurisdiction under
any other name, and if so, the name and the applicant's age at the time; and

����
(3)
�
Had a permit or license issued from any other
jurisdiction suspended, restricted, or revoked, and if so, for what period of
time.

����
(d)
�
Each applicant shall submit two sets of the
applicant's fingerprints with the application.
�

The commission shall charge each applicant a fee to defray the costs
associated with the search and classification of fingerprints obtained by the
commission with respect to the application.

����
(e)
�
The commission may refuse to grant an
occupational license to any person:

����
(1)
�
Who is unqualified to perform the duties
required of the applicant;

����
(2)
�
Who fails to disclose or states falsely any
information called for in the application;

����
(3)
�
Who has been found guilty of a violation of
this chapter or whose prior casino gaming-related license or application has
been suspended, restricted, revoked, or denied for just cause in any other
jurisdiction; or

����
(4)
�
For any other just cause.

����
(f)
�
The commission may suspend, revoke, or
restrict any occupational licensee:

����
(1)
�
For any violation of this chapter;

����
(2)
�
For any violation of the rules of the
commission;

����
(3)
�
For any cause which, if known to the
commission, would have disqualified the applicant from receiving a license;

����
(4)
�
For default in the payment of any obligation
or debt due to the State or the county; or

����
(5)
�
For any other just cause.

����
(g)
�
A person who knowingly makes a false
statement on an application is guilty of a petty misdemeanor.

����
(h)
�
Any license issued pursuant to this section
shall be valid for a period of one year from the date of issuance and shall be
renewable annually upon payment of the annual license fee and a determination
by the commission that the licensee continues to meet all of the requirements
of this chapter.

����
(i)
�
Any training provided for an occupational
licensee may be conducted either in a licensed casino facility or at a school
with which a casino licensee has entered into an agreement.

����
� -15
�

Temporary supplier and occupational licenses.
�
(a)
�

Upon written request of a person applying for a supplier or occupational
license under this chapter, the executive director shall issue a temporary
license to the applicant and permit the applicant to undertake employment with,
conduct business transactions with, and provide goods and services to, casino
licensees, casino license applicants, and holders of certificates of
suitability; provided that all of the following provisions are met:

����
(1)
�
The applicant has submitted to the commission
a completed application, an application fee, and all required disclosure forms
and other required written documentation and materials;

����
(2)
�
Preliminary review of the application and a
criminal history check by the executive director and the commission staff does
not reveal that the applicant or the applicant's affiliates, key persons, local
and regional managerial employees or sales and service representatives, or
substantial owners have been convicted of a felony or misdemeanor that would
require denial of the application or may otherwise be ineligible, unqualified,
or unsuitable to permit licensure under this chapter;

����
(3)
�
There is no other apparent deficiency in the
application that may require denial of the application; and

����
(4)
�
The applicant has an offer of employment from,
or agreement to begin providing goods and services to, a casino licensee,
casino license applicant, or holder of a certificate of suitability upon
receipt of the temporary license or the applicant shows good cause for being
granted a temporary license.

����
(b)
�
A temporary license issued under this section
shall be valid for no more than one hundred and eighty days but may be renewed
upon expiration by the executive director.

����
(c)
�
An applicant who receives a temporary license
under this section may undertake employment with or supply a casino licensee,
casino license applicants, and holders of certificates of suitability with
goods and services subject to this chapter until a license is issued by the
commission pursuant to the applicant's application or until the temporary
license expires or is suspended or revoked.
�

During the period of the temporary license, the applicant shall comply
with this chapter and rules adopted by the commission.

����
(d)
�
If the temporary license expires, is not
renewed, or is suspended or revoked, the executive director shall immediately
forward the applicant's application to the commission for action after first
providing a reasonable time for the applicant to correct any apparent
deficiency in its application.

����
� -16
�
Annual
report.
�
The commission shall submit
an annual report to the governor and the legislature no later than sixty days before
the close of each fiscal year and shall submit any additional reports that the
governor or the legislature requests.
�
The
annual report shall include:

����
(1)
�
A statement of receipts and disbursements
related to casino gaming pursuant to this chapter;

����
(2)
�
Actions taken by the commission; and

����
(3)
�
Any additional information and recommendations
that the commission may deem valuable or which the governor or the legislature
may request.

����
� -17
�
Hearings
by the commission.
�
(a)
�
Upon order of the commission, one of the
commission members or a hearings officer designated by the commission may
conduct any hearing provided for under this chapter related to casino gaming or
by commission rule and may recommend findings and decisions to the commission.
�
The record made at the time of the hearing
shall be reviewed by the commission, or a majority thereof, and the findings
and decisions of the majority of the commission shall constitute the order of
the commission in that case.

����
(b)
�
Any party aggrieved by an action of the
commission denying, suspending, revoking, restricting, or refusing to renew a
license under this chapter may request in writing a hearing before the
commission within five days after service of notice of the action of the
commission.
�
Notice of the actions of the
commission shall be served either by personal delivery or by certified mail,
postage prepaid, to the aggrieved party.
�

Notice served by certified mail shall be deemed complete on the business
day following the date of the mailing.
�
The
commission shall conduct all requested hearings promptly and in reasonable
order.

����
� -18
�
Conduct
of casino gaming
.
�
Casino gaming
may be conducted by the holder of a casino license, subject to the following:

����
(1)
�
The site of the casino facility shall be
restricted to the city and county of Honolulu;

����
(2)
�
The term of the casino license shall be twenty
years and shall be renewable for additional twenty-year terms; provided that:

���������
(A)
�
The casino facility has demonstrated an effort
to increase tourism, generate jobs, provide revenue to the local economy, and
provide revenue to the general fund;

���������
(B)
�
The casino licensee's actions have not caused
the casino license under this chapter to be suspended or revoked; and

���������
(C)
�
The applicant and its qualifiers remain
eligible and suitable for a casino license;

����
(3)
�
The casino facility may operate twenty-four
hours per day, every day of the year;

����
(4)
�
Minimum and maximum wagers on games shall be
set by the casino licensee;

����
(5)
�
The commission's agents may enter and inspect
the casino facility at any time for the purpose of determining whether the
casino licensee is in compliance with this chapter;

����
(6)
�
Commission employees shall have the right to
be present in a casino facility or on adjacent facilities under the control of
the casino licensee;

����
(7)
�
Gaming equipment and supplies customarily used
in conducting casino gaming shall be purchased or leased only from suppliers
licensed under this chapter;

����
(8)
�
Persons licensed under this chapter shall
permit no form of wagering on games except as permitted by this chapter;

����
(9)
�
Wagers may be received only from a person
present in a licensed casino facility; provided that no person present in a
licensed casino facility shall place or attempt to place a wager on behalf of
another person who is not present in the casino facility;

���
(10)
�
Wagering shall not be conducted with money or
other negotiable currency, except for wagering on slot machines;

���
(11)
�
No person under age twenty-one shall be
permitted in an area of a casino facility where casino gaming is being
conducted, except for a person at least eighteen years of age who is an
employee of the casino facility.
�
No
employee under age twenty-one shall perform any function involved in casino
gaming by patrons.
�
No person under age
twenty-one shall be permitted to make a wager under this chapter;

���
(12)
�
All tokens, chips, or electronic cards used to
make wagers shall only be purchased from the casino licensee within the casino
facility.
�
The tokens, chips, or
electronic cards may be purchased by means of an agreement under which the
casino licensee extends credit to the wagerer.
�

The tokens, chips, or electronic cards shall be used while within a
casino facility only for the purpose of making wagers on authorized games;

���
(13)
�
Prior to commencing gaming operations at the
casino facility, the casino licensee shall enter into a development agreement
with the State that includes at least the following terms:

���������
(A)
�
The casino licensee agrees to invest at least
$500,000,000 to develop and construct a casino facility, including land, and soft
and hard costs;

���������
(B)
�
The casino licensee agrees to use best efforts
to train residents of the State for jobs that are available at the casino
facility;

���������
(C)
�
The casino licensee agrees that neither the
casino licensee, nor any parent or subsidiary of the casino licensee, will
permit wagering within the State on Hawaii collegiate athletics;

���������
(D)
�
The casino licensee shall use best efforts to
increase tourism, generate jobs, provide revenue to the local economy and the
State; and

���������
(E)
�
The casino licensee and the State agree that,
other than the one casino facility licensed under this chapter, the State shall
not authorize any additional gaming in the State without the prior written
consent of the casino licensee and the State; and

���
(14)
�
All casino gaming shall be conducted in
accordance with all rules adopted by the commission.

����
� -19
�
Collection
of amounts owing under credit agreements.
�

Notwithstanding any other law to the contrary, a casino licensee who
extends credit to a wagerer shall be expressly authorized to institute a cause
of action to collect any amounts due and owing under the extension of credit,
as well as the licensee's costs, expenses, and reasonable attorney's fees
incurred in collection.

����
� -20
�
Wagering
tax; rate; disposition
.
�
(a)
�
A wagering tax shall be imposed on the
monthly gross receipts received from casino gaming authorized under this
chapter.
�
The tax imposed on table games
shall be at the rate of fifteen per cent and the tax for all gambling games
other than table games, including but not limited to slot machines, video game
of chance gambling, and electronic gambling games shall be at the rate of
twenty percent.
�
The wagering tax imposed
by this section shall be in lieu of all other state taxes on gross or adjusted
gross receipts, including taxes levied under chapters 237 and 239, except
income taxes.
�
All other income received
by the casino licensee that is not from casino gaming shall not be subject to
the wagering tax but shall be subject to any other state taxes on gross or
adjusted gross receipts levied under chapters 237 and 239.

����
(b)
�
Tax revenue collected under this section
shall be divided as follows:

����
(1)
�
Eighty-five per cent shall be deposited into
the state general fund; provided that from these revenues, the following
amounts shall be retained by the commission and deposited into the state gaming
fund established under section ‑21 for use by the
commission as follows:

���������
(A)
�
One per cent of the tax revenues to fund a
compulsive gamblers program and for public security at the casino facility; and

���������
(B)
�
Not more than one per cent of the tax revenues
to fund administrative expenses of the commission;

����
(2)
�
Ten per cent transferred to the city and county
of Honolulu; and

����
(3)
�
Five per cent deposited into a fund to support
the new aloha stadium entertainment district.

����
� -21
�
State
gaming fund; disposition of taxes collected.
�
There is established within the state
treasury the state gaming fund to be administered by the Hawaii gaming control
commission into which shall be deposited all fees, taxes, and fines collected
under this chapter other than the wagering tax collected pursuant to section
‑20.
�
Moneys from
the state gaming fund shall be allocated as follows:

����
(1)
�
Twenty-five per cent to the department of
education;

����
(2)
�
Forty per cent to the compulsive gamblers
program established under section -23 and for public security
at the casino facility; and

����
(3)
�
Thirty-five per cent to fund administrative
expenses of the commission.

����
� -22
�
Program and
financial audit
.
�
After the first full fiscal year of
operation, the auditor shall conduct a program and financial audit of the
commission.
�
Thereafter, the auditor
shall conduct a program and financial audit every four years after the initial
audit is completed.

����
� -23
�
Compulsive
gamblers program.
�
The commission
shall create and implement a program to assist individuals who are identified
as compulsive gamblers.

����
� -24
�

Disclosure of information.
�
The
commission, upon written request from any person, shall provide the following
information concerning the applicant or licensee, the applicant's or licensee's
products, services, or gambling enterprises, and the applicant's or licensee's
business holdings if the commission has the information in its possession:

����
(1)
�
The name, business address, and business
telephone number;

����
(2)
�
An identification of any applicant or licensee
including, if an applicant or licensee is not an individual, its state of
incorporation or registration, its corporate officers, and the identity of its
qualifiers;

����
(3)
�
The name and business telephone number of any
attorney, counsel, lobbyist, or any other person representing an applicant or a
licensee in matters before the commission; and

����
(4)
�
A description of the product or service to be
supplied by, or occupation to be engaged in by, a licensee.

����
� -25
�
License
issuance fee.
�
In addition to any
other fee or payment required under this chapter, there shall be a one-time fee
of $150,000,000, in cash or cash equivalent, to be paid as follows:

����
(1)
�
$75,000,000 as a condition precedent to the
issuance of the casino license; and

����
(2)
�
$75,000,000 one year after the casino license
is issued.

Upon payment of the $75,000,000 payment due one year
after the casino license is issued, the casino licensee shall be credited with
this payment against the wagering tax imposed upon the casino licensee under
section ‑20 .
�
The
credit shall be applied to the percentage of tax that is deposited in the
general fund to be amortized over a period of ten years after that payment is
made.
�
The fee shall be deposited into
the general fund.
�
Once issued, the
license shall be non-transferable and shall be valid only for the person or
entity in whose name it was issued and for the operation of the casino facility
at the designated place."

����
SECTION
2.
�
Chapter 712, Hawaii Revised Statutes,
is amended by adding a new section to part III to be appropriately designated
and to read as follows:

����
"
�712-
�
Casino gaming; exemption.
�
This
part shall not apply to casino gaming as authorized by chapter
.
"

����
SECTION
3
.
�
Section 46-80.5, Hawaii Revised Statutes, is
amended by amending subsection (e) to read as follows:

����
"(e)
�
Exemptions.

����
(1)
�
Property owned by the state or county
governments or entities, may be exempt from the assessment except as provided
in paragraph (3);

����
(2)
�
Property owned by the federal government or
entities, shall be exempt from the assessment except as provided in paragraph
(3);

����
(3)
�
If a public body owning property, including
property held in trust for any beneficiary, which is exempt from an assessment
pursuant to paragraphs (1) and (2), grants a leasehold or other possessory
interest in the property to a nonexempt person or entity, the assessment,
notwithstanding paragraphs (1) and (2), shall be levied on the leasehold or
possessory interest and shall be payable by the lessee;

����
(4)
�
The construction of any casino facility
authorized under chapter shall be exempt from the assessment
and any special improvement district requirements regarding redevelopment
authorized by subsection (a);

���
[
(4)
]

(5)
�
The redevelopment of the Ala Wai boat
harbor shall be exempt from the assessment and any special improvement district
requirements authorized by subsection (a); and

���
[
(5)
]

(6)
�

No other properties or owners shall be exempt from the assessment unless
the properties or owners are expressly exempted in the ordinance establishing a
district adopted pursuant to this section or amending the rate or method of
assessment of an existing district."

����
SECTION
4
.
�
Section 76-16, Hawaii Revised Statutes, is
amended by amending subsection (b) to read as follows:

����
"
(b)
�
The civil
service to which this chapter applies shall comprise all positions in the State
now existing or hereafter established and embrace all personal services
performed for the State, except the following:

����
(1)
�
Commissioned and enlisted personnel of the
Hawaii National Guard and positions in the Hawaii National Guard that are
required by state or federal laws or regulations or orders of the National
Guard to be filled from those commissioned or enlisted personnel;

����
(2)
�
Positions filled by persons employed by
contract where the director of human resources development has certified that
the service is special or unique or is essential to the public interest and
that, because of circumstances surrounding its fulfillment, personnel to
perform the service cannot be obtained through normal civil service recruitment
procedures.
�
Any contract may be for any
period not exceeding one year;

����
(3)
�
Positions that must be filled without delay to
comply with a court order or decree if the director determines that recruitment
through normal recruitment civil service procedures would result in delay or
noncompliance, such as the Felix-Cayetano consent decree;

����
(4)
�
Positions filled by the legislature or by
either house or any committee thereof;

����
(5)
�
Employees in the office of the governor and
office of the lieutenant governor, and household employees at Washington Place;

����
(6)
�
Positions filled by popular vote;

����
(7)
�
Department heads, officers, and members of any
board, commission, or other state agency whose appointments are made by the
governor or are required by law to be confirmed by the senate;

����
(8)
�
Judges, referees, receivers, masters, jurors,
notaries public, land court examiners, court commissioners, and attorneys
appointed by a state court for a special temporary service;

����
(9)
�
One bailiff for the chief justice of the
supreme court who shall have the powers and duties of a court officer and
bailiff under section 606-14; one secretary or clerk for each justice of the
supreme court, each judge of the intermediate appellate court, and each judge
of the circuit court; one secretary for the judicial council; one deputy
administrative director of the courts; three law clerks for the chief justice
of the supreme court, two law clerks for each associate justice of the supreme
court and each judge of the intermediate appellate court, one law clerk for
each judge of the circuit court, two additional law clerks for the civil
administrative judge of the circuit court of the first circuit, two additional
law clerks for the criminal administrative judge of the circuit court of the
first circuit, one additional law clerk for the senior judge of the family
court of the first circuit, two additional law clerks for the civil motions
judge of the circuit court of the first circuit, two additional law clerks for
the criminal motions judge of the circuit court of the first circuit, and two
law clerks for the administrative judge of the district court of the first
circuit; and one private secretary for the administrative director of the
courts, the deputy administrative director of the courts, each department head,
each deputy or first assistant, and each additional deputy, or assistant
deputy, or assistant defined in paragraph (16);

���
(10)
�
First deputy and deputy attorneys general, the
administrative services manager of the department of the attorney general, one
secretary for the administrative services manager, an administrator and any
support staff for the criminal and juvenile justice resources coordination
functions, and law clerks;

���
(11)
�
(A)
�
Teachers, principals, vice-principals, complex
area superintendents, deputy and assistant superintendents, other certificated
personnel, and no more than twenty noncertificated administrative,
professional, and technical personnel not engaged in instructional work;

���������
(B)
�
Effective July 1, 2003, teaching assistants,
educational assistants, bilingual or bicultural school-home assistants, school
psychologists, psychological examiners, speech pathologists, athletic health
care trainers, alternative school work study assistants, alternative school
educational or supportive services specialists, alternative school project
coordinators, and communications aides in the department of education;

���������
(C)
�
The special assistant to the state librarian
and one secretary for the special assistant to the state librarian; and

���������
(D)
�
Members of the faculty of the university of
Hawaii, including research workers, extension agents, personnel engaged in
instructional work, and administrative, professional, and technical personnel
of the university;

���
(12)
�
Employees engaged in special, research, or
demonstration projects approved by the governor;

���
(13)
�
(A)
�
Positions filled by inmates, patients of state
institutions, and persons with severe physical or mental disabilities
participating in the work experience training programs;

���������
(B)
�
Positions filled with students in accordance
with guidelines for established state employment programs; and

���������
(C)
�
Positions that provide work experience
training or temporary public service employment that are filled by persons
entering the workforce or persons transitioning into other careers under
programs such as the federal Workforce Investment Act of 1998, as amended, or
the Senior Community Service Employment Program of the Employment and Training
Administration of the United States Department of Labor, or under other similar
state programs;

���
(14)
�
A custodian or guide at Iolani Palace, the
Royal Mausoleum, and Hulihee Palace;

���
(15)
�
Positions filled by persons employed on a fee,
contract, or piecework basis, who may lawfully perform their duties
concurrently with their private business or profession or other private
employment and whose duties require only a portion of their time, if it is
impracticable to ascertain or anticipate the portion of time to be devoted to
the service of the State;

���
(16)
�
Positions of first deputies or first
assistants of each department head appointed under or in the manner provided in
section 6, article V, of the Hawaii State Constitution; three additional
deputies or assistants either in charge of the highways, harbors, and airports
divisions or other functions within the department of transportation as may be
assigned by the director of transportation, with the approval of the governor;
one additional deputy in the department of human services either in charge of
welfare or other functions within the department as may be assigned by the
director of human services; four additional deputies in the department of
health, each in charge of one of the following:
�

behavioral health, environmental health, hospitals, and health resources
administration, including other functions within the department as may be
assigned by the director of health, with the approval of the governor; two
additional deputies in charge of the law enforcement programs, administration,
or other functions within the department of law enforcement as may be assigned
by the director of law enforcement, with the approval of the governor; three
additional deputies each in charge of the correctional institutions,
rehabilitation services and programs, and administration or other functions
within the department of corrections and rehabilitation as may be assigned by
the director of corrections and rehabilitation, with the approval of the
governor; two administrative assistants to the state librarian; and an administrative
assistant to the superintendent of education;

���
(17)
�
Positions specifically exempted from this part
by any other law; provided that:

���������
(A)
�
Any exemption created after July 1, 2014,
shall expire three years after its enactment unless affirmatively extended by
an act of the legislature; and

���������
(B)
�
All of the positions defined by paragraph (9)
shall be included in the position classification plan;

���
(18)
�
Positions in the state foster grandparent
program and positions for temporary employment of senior citizens in
occupations in which there is a severe personnel shortage or in special
projects;

���
(19)
�
Household employees at the official residence
of the president of the university of Hawaii;

���
(20)
�
Employees in the department of education
engaged in the supervision of students during meal periods in the distribution,
collection, and counting of meal tickets, and in the cleaning of classrooms
after school hours on a less than half-time basis;

���
(21)
�
Employees hired under the tenant hire program
of the Hawaii public housing authority; provided that no more than twenty-six
per cent of the authority's workforce in any housing project maintained or
operated by the authority shall be hired under the tenant hire program;

���
(22)
�
Positions of the federally funded expanded
food and nutrition program of the university of Hawaii that require the hiring
of nutrition program assistants who live in the areas they serve;

���
(23)
�
Positions filled by persons with severe
disabilities who are certified by the state vocational rehabilitation office
that they are able to perform safely the duties of the positions;

���
(24)
�
The sheriff;

���
(25)
�
A gender and other fairness coordinator hired
by the judiciary;

���
(26)
�
Positions in the Hawaii National Guard youth
and adult education programs;

���
(27)
�
In the Hawaii state energy office in the
department of business, economic development, and tourism, all energy program
managers, energy program specialists, energy program assistants, and energy
analysts;

���
(28)
�
Administrative appeals hearing officers in the
department of human services;

���
(29)
�
In the Med-QUEST division of the department of
human services, the division administrator, finance officer, health care
services branch administrator, medical director, and clinical standards
administrator;

���
(30)
�
In the director's office of the department of
human services, the enterprise officer, information security and privacy
compliance officer, security and privacy compliance engineer, security and
privacy compliance analyst, information technology implementation manager,
assistant information technology implementation manager, resource manager,
community or project development director, policy director, special assistant
to the director, and limited English proficiency project manager or
coordinator;

���
(31)
�
The Alzheimer's disease and related dementia
services coordinator in the executive office on aging;

���
(32)
�
In the Hawaii emergency management agency, the
executive officer, public information officer, civil defense administrative
officer, branch chiefs, and emergency operations center state warning point
personnel; provided that for state warning point personnel, the director shall
determine that recruitment through normal civil service recruitment procedures
would result in delay or noncompliance;

���
(33)
�
The executive director and seven full-time
administrative positions of the school facilities authority;

���
(34)
�
Positions in the Mauna Kea stewardship and
oversight authority;

���
(35)
�
In the office of homeland security of the
department of law enforcement, the statewide interoperable communications
coordinator;

���
(36)
�
In the social services division of the
department of human services, the business technology analyst;

���
(37)
�
The executive director and staff of the 911
board;

���
(38)
�
The software developer supervisor and senior
software developers in the department of taxation;

���
(39)
�
In the department of law enforcement, five
Commission on Accreditation for Law Enforcement Agencies, Inc., coordinator
positions;

���
(40)
�
The state fire marshal and deputy state fire marshal
in the office of the state fire marshal;

���
(41)
�
The administrator for the law enforcement
standards board;

���
(42)
�
In the office of the
director of taxation, the data privacy officer and tax business analysts
; [
and
]

[
[
]
(43)[
]
]
���
All
positions filled by the Hawaii tourism authority within the department of
business, economic development, and tourism[
.
]
; and

���
(44)
�
The executive director and any assistants,
officers, or employees of the Hawaii gaming control commission.

����
The
director shall determine the applicability of this section to specific
positions.

����
Nothing in
this section shall be deemed to affect the civil service status of any
incumbent as it existed on July 1, 1955."

����
SECTION
5.
�
There is appropriated out of the
general revenues of the State of Hawaii the sum of $5,000,000 or so much
thereof as may be necessary for fiscal year 2026-2027 for the purpose of
funding the operations of the Hawaii gaming control commission; provided that
the:

����
(1)
�
Casino licensee shall reimburse the amount
appropriated by remitting $5,000,000 to the director of finance no later than
the first day on which the casino opens for operation;

����
(2)
�
Casino licensee's application fee under
section ‑8(e), Hawaii Revised Statutes, shall be
applied as a credit against the $5,000,000 amount due under this section; and

����
(3)
�
Amount the casino licensee reimburses the
State under this section shall also be credited against the wagering tax
imposed under section ‑20, Hawaii Revised Statutes.

����
The sum
appropriated shall be expended by the department of commerce and consumer
affairs for the purposes of this Act.

����
SECTION 6.
�
This Act does not affect rights and duties
that matured, penalties that were incurred, and proceedings that were begun
before its effective date.

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

����
SECTION 8.
�
This Act shall take effect on July 1, 2026.

INTRODUCED BY:

_____________________________

Report Title:

DCCA; Casino
Gaming; Hawaii Gaming Control Commission; Wagering Tax; State Gaming Fund;
Compulsive Gamblers Program; Counties; Special Assessment Exemption; Civil
Service Exemption; Appropriation

Description:

Authorizes
limited casino gaming in a single location in the City and County of
Honolulu.
�
Establishes the Hawaii Gaming
Control Commission.
�
Imposes a wagering
tax on

the monthly
gross receipts received from casino gaming.
�

Establishes the State Gaming Fund.
�

Requires the Hawaii Gaming Commission to create and implement a
Compulsive Gamblers Program.
�
Exempts the
construction of any casino facility from county special assessments and certain
special improvement district requirements.
�

Establishes certain civil service exemptions.
�
Appropriates funds with certain conditions.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.