RELATING TO CASINO GAMING.

SB3268

THE SENATE

S.B. NO.

3268

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.
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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 Hawaii gaming control commission pursuant to this chapter shall
apply to all persons who are licensed or otherwise participate in gaming as
permitted under this chapter.

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� -2
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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:

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(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 that may include bars,
restaurants, showrooms, theaters, or other facilities, but 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",
"black jack", "poker", "craps", "slot
machine", "video gaming of chance", "roulette wheel",
"Klondike table", "punch-board", "faro layout", "keno
layout", "numbers ticket", "push card", "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.
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A conflict of
interest includes but is not limited to the following:

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(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. For the 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:

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(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;

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(E)
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Promotional play; and

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(F)
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The dollar amount of 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 the casino
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 (54 Stat. 789, 15 U.S.C. sections 80a-1 to
80a-3 and 80a-4 to 80a-64);

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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 of the rules
of the United States Comptroller of the Currency;

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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, (54 Stat. 847, 15 U.S.C. sections 80b-1 to
80b-21 as amended); 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.
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An investigative hearing shall include 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 policy making 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 more than a five per cent
direct or indirect interest in an applicant.
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For the purposes of 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 facility 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, is available for play or operation, and that
by reason of the play or operation of the device, contrivance, or machine, may
deliver or entitle the person playing or operating the device, contrivance, or
machine to receive cash, premiums, merchandise, tokens, or anything of value,
whether the payoff is made automatically from the device, contrivance, or
machine or in any other manner.
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"Slot
machine" includes a device, contrivance, or machine that:

����
(1)
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U
tilizes spinning reels or video
displays, or both;

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(2)
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D
ispenses or does not dispense coins,
tickets, or tokens to winning patrons;

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

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(4)
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Simulates a table game.

"Slot
machine" does not include table games.

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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, including an electronic or
stadium-seating game operated with a live dealer, authorized by the commission
as a wagering device under this chapter, upon which casino gaming is conducted
or that determines the outcome that is the object of a wager; provided that
"table game" does not include slot machines or video gaming of chance.

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"Vendor"
means a person who is not licensed under this chapter who supplies any goods or
services to the casino licensee or a 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;
establishment; membership; executive director; employees.
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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 of commerce and consumer affairs 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 by the president of the
senate and one shall be appointed from a list of nominees submitted 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:

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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 a misdemeanor
involving gambling or fraud under the laws of this State, any other state, or
the United States within the ten years before 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 before 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 like 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 compensation of $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 maintain 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 and who shall be subject to
the commission's supervision.
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Within ten
days of the commission's initial meeting, the commission shall appoint an
interim executive director who shall be exempt from paragraphs (3) and (4), and
therefore 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:

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(1)
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Hold office at the pleasure 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 shall 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 pleasure 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; provided that no person
shall be hired or appointed under this subsection who:

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(A)
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Is an elected state official;

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(B)
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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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(C)
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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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(D)
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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 the laws of this State, any other state, or
the United States within the last ten years, or a local ordinance in any state
involving gambling or fraud that substantially corresponds to a misdemeanor in
that state within the ten years before employment.

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

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(k)
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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 on which employees are prohibited 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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(l)
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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:

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

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

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except
that the person seeking employment may be employed by the commission if the
person's interest in the casino licensee would not, in the opinion of the
commission, interfere with the objective discharge of the person's employment
obligations.
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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 the
casino licensee or a casino supplier, or any person who has an application for
a casino or occupational license pending before the commission.

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(m)
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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:

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(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

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(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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(n)
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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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(o)
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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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(p)
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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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(q)
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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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(r)
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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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Recordkeeping; other staff.
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(a)
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The executive director shall maintain 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)
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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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� -5
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Hawaii gaming control commission; powers.
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(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.
�
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)
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Issue a twenty-year casino license to
operate a casino facility pursuant to this chapter;

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

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

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

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(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 the casino licensee or a 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;

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(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 adopted by the commission;

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

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(8)
�
Be present through its inspectors and
agents, any time casino gaming operations are conducted in a casino facility for
the purpose of certifying the casino facility'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;

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(10)
�
Require that records including
financial or other statements of the casino licensee under this chapter 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 an
annual balance sheet and profit and loss statement, 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 any other information the commission
deems necessary to effectively administer this chapter;

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(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 to administer oaths and
affirmations to the witnesses, when, in the judgment of the commission, it is
necessary to administer or enforce this chapter. The executive
director or the executive director's designee is also authorized to issue
subpoenas and to 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 that ejection or
exclusion shall be subject to subsequent hearing by the commission;

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(13)
�
Permit the 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;

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(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;

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(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 which, 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;

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(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 necessary
to implement this chapter; provided that the regulations of the Nevada gaming
commission and Nevada state gaming control board ("the Nevada regulations")
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.

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

����
� -6
�
Hawaii gaming control commission; conduct of
members, employees, and agents, 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 applicant shall not knowingly
initiate a negotiation for, or discussion of, employment with a member,
employee, or agent of the commission.
�
A
licensee or 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 an applicant or
licensee, 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 an applicant or licensee shall immediately provide written
notice of the details to the chairperson.

����
(k)
�
A licensee or applicant, or affiliate or
representative of an applicant or licensee, 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 any involvement with any casino interest during the
preceding five years and shall not engage in any political or
politically-related activity for the duration of the person's membership 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 applicant or any affiliate or
representative of an applicant or licensee shall not engage in ex parte
communications concerning a pending application, license, or enforcement action
with any member 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 an
applicant or licensee, 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 with 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 applicant or any affiliate of a licensee or 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 facility in this State, or in another jurisdiction, operated by a
licensee, applicant, or affiliate of a licensee or applicant, outside the scope
of the person's official duties for the commission.

����
(x)
�
Violation of this section by a licensee,
applicant, or affiliate or representative of a licensee or applicant, may result
in denial of the application of licensure, 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 purposes 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 applicant.

����
(aa)
�
If a financial interest in a licensee or an
applicant, or affiliate or representative of a licensee or 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)
�
For the purposes of this section:

����
"Outside
employment" includes:

����
(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 casino gaming; permitted
location; licensing.
�
(a)
�
Casino gaming shall be permitted only at a single
casino facility located in the stadium development district.

����
(b)
�
An application for a casino license to
operate the casino facility shall:

����
(1)
�
Comply
with and use the application procedures and forms required of an applicant for
a non-restricted Nevada gaming license, as adopted by the Nevada gaming commission
and Nevada state gaming control board that are in effect on the effective date
of this Act; and

����
(2)
�
Include:

���������
(A)
�
A
casino facility development plan for the casino facility; and

���������
(B)
�
All
information required under section -8.

����
(c)
�
Applications
for a casino license to operate the casino facility shall be submitted to the
commission no later than thirty days after the date of the commission's initial
meeting.

����
(d)
�

No later than ninety days after the final date for filing of
applications with the commission, the commission shall select one applicant per
location whom, in the commission's judgment, best meets all of the criteria
pursuant to section ‑9.
�

If an 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.

����
(e)
�

Not more than one casino license shall be issued and valid at any given
time.
�
The casino license shall be
non-transferable and be valid only for the person in whose name the license was
issued and for the operation of the casino facility at the designated location.

����
� -8
�
Application for casino license; contents.
�
(a)
�

A person seeking to operate the casino facility shall file an
application with the commission for a casino license.
�
The application shall be made under oath on
forms required by this chapter and shall include:

����
(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 any qualifier has an equity interest
of more than five per cent.
�
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)
�
A
statement whether the applicant or any qualifier has developed and opened a new
land-based casino facility in an urban area within a jurisdiction in the United
States that previously did not allow gaming, including a description of the
casino facility, the casino facility's gross revenue, and the amount of revenue
the casino facility has generated for state and local governments within that
jurisdiction;

����
(4)
�
A
statement whether the applicant or any 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.
�
The statement shall include the date, name
and location of the court, arresting agency, prosecuting agency, case caption,
docket number, the offense, disposition, and the location and duration of
incarceration, if any;

����
(5)
�
A
statement whether the applicant or any 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.
�
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 whether the applicant or any qualifier, within the last ten years,
has filed or had filed against it any civil or administrative action or
proceeding in bankruptcy;

����
(7)
�
A
statement whether the applicant or any 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 interagency appeals
processes.
�
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 government or county government in the jurisdiction in which
the casino facility is to be located, 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 a qualifier.
�
For the purposes of 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 other person
representing the applicant or any qualifier in matters before the commission;

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

���
(11)
�
For
the applicant only, a description of any proposed or approved casino facility,
including the economic benefit to the community, projected 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 in 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, but 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 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 more
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 trust, the application shall disclose the
names and addresses of the beneficiaries; if a corporation, the names and
addresses of all stockholders and directors; if a partnership, 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 qualifiers' 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
�
Award of casino license; suitability; criteria;
ineligibility.
�
(a)
�
The commission shall consider casino license applications
filed by applicants that satisfy all the eligibility criteria under this
chapter and rules adopted by the commission pursuant to this chapter.

����
(b)
�
Any
applicant who has paid the application fee required pursuant to
section -8 shall be deemed suitable.

����
(c)
�
In
issuing the casino license, the commission shall select an applicant that, in
the commission's judgment, best meets all of the following criteria:

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

����
(2)
�
The
applicant or its qualifiers
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 have 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 have 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 have
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 their secured and unsecured
debts in accordance with its financing agreement and other contractual
obligations
;

����
(6)
�
The
applicant or any of its qualifiers demonstrates that, as of July 1, 2026, the
applicant or qualifier has successfully developed and opened, as opposed to
acquired, and currently operates at least four permanent casino facilities in
any jurisdiction in the United States
.
�
For the purposes of this paragraph, "permanent
casino facility" means
a lawfully operating casino facility with not
less than one thousand slot machines and, if table games are authorized under applicable
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 any 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
interagency 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, will 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 facility, including the proposed casino
facility's aesthetic appearance, location, amount of economic benefit to the
community, absence of any business conflict of interest of the qualifier, projected
or actual number of employees, compliance with federal and state affirmative
action guidelines, and projected or actual gross receipts
.

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

����
(e)
�
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 filed an application for a
license under this chapter that contains false information;

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

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

����
(6)
�
Is
a member of the master development team responsible for the development of the
stadium development district; or

����
(7)
�
Has
been awarded any contract for the provision of any goods, services, or
construction in relation to the aloha stadium or the new stadium facilities to
be constructed within the stadium development district.

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

����
(g)
�
Simultaneous with an applicant's filing 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.

����
(h)
�
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.

����
(i)
�
The
commission shall establish a process to facilitate and expedite the approval of
necessary licenses and permits.

����
The commission may establish procedures
for the issuance of a liquor license for the casino licensee.
�
The casino licensee shall not be subject to
any ordinance adopted by the city and county of Honolulu or any rule or requirement
of the liquor commission for the city and county of Honolulu regarding the
permitting or approval of any form of live or professional music, dancing, or
entertainment; provided that all other state laws, county ordinances, and rules
and requirements of the liquor commission for the city and county of Honolulu relating
to liquor are met.

����
The commission shall be the receiving
agency for any environmental assessment required under chapter 343.

����
(j)
�
Nothing in this chapter shall be interpreted
to prohibit the 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 required payments, maintains books and records, files
required reports, and conducts games of chance in compliance 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 replacement bond with the commission
in the required amount on or before the effective date of cancellation, the
licensee's casino license shall be revoked.
�

The total and aggregate liability of the surety under 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 by the commission 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 qualifier's apparent deficiency shall not constitute a final
determination by the commission as to the suitability of the applicant to be
issued a license, or the suitability of a qualifier to hold an ownership
interest in a casino license applicant.

����
(c)
�
At any time before a finding by the
commission that a qualifier is unsuitable to hold an ownership interest in a
casino license applicant, a qualifier shall have the ability to sell its
ownership interest in the casino license applicant to the casino license 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 a request is made,
the commission shall determine the suitability of the affected qualifier
separate from the suitability of the casino license 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 license applicant, the casino license applicant or licensee shall not do
any of the following:

����
(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; waiver.
�
(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 the 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 the
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 the 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 the casino licensee 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 who 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 a $5,000 annual license fee and a
determination by the commission that the 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 filed 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 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)
�
Maintain
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 with the commission listing its inventories of casino gaming
equipment, devices, and supplies.

����
(f)
�
Any person who knowingly makes a false
statement on an application under this section shall be 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
at least twenty-one years of age if the applicant performs any function
involved in casino gaming by patrons.
�

Any applicant seeking an occupational license for a non-gaming function
shall be at least eighteen years of age;

����
(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:

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

����
(2)
�
Has
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)
�
Has
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 with the
application two sets of the applicant's fingerprints.
�
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 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 shall be guilty of a petty misdemeanor.

����
(h)
�
Any occupational 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 an 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 the 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 filed with 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, the
casino licensee, a 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 not 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 the 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 governor and the legislature no later than sixty days after the close
of each fiscal year and shall submit any additional reports upon request by the
governor or the legislature.
�
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
other findings and recommendations that the commission may deem valuable or
which the governor or the legislature may request.

����
� -17
�
Hearings by the commission.
�
(a)
�

The commission may order one of the commission members or a hearings
officer designated by the commission to conduct any hearing provided for under
this chapter related to casino gaming or by commission rule, and submit
findings and recommendations 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; conditions
.
�
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 location
permitted under the license
;

����
(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 licensee and its qualifiers remain
eligible and suitable for a casino license;

����
(3)
�
The casino facility
may operate twenty-four hours per day, each and 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.
�
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 the age of 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 the age of twenty‑one
shall perform any function involved in casino gaming by patrons.
�
No person under the age of 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)
�
Before
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,
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, and provide
revenue to the local economy and to 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)
�
In
addition to the above, casino gaming shall be conducted in accordance with all
rules adopted by the commission.

����
� -19
�
Collection of amounts owing under credit
agreements.
�
Notwithstanding any law
to the contrary, if the casino licensee extends credit to a wagerer, the casino
licensee may institute a cause of action to collect any amounts due and owing
under the extension of credit and the licensee's costs, expenses, and
reasonable attorney's fees incurred in collection.

����
� -20
�
Wagering tax; rates; disposition
.
�
(a)
�
A
wagering tax shall be imposed on the monthly gross receipts received from
casino gaming authorized under this chapter.
�

The tax
rates imposed under this section shall be:

����
(1)
�
F
ifteen
per cent
for table games; and

����
(2)
�
Twenty per cent for all other casino games
.

����
(b)
�

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.

����
(c)
�
The tax revenues
collected under this section shall be distributed as follows:

����
(1)
�
Twenty-five per

cent shall be allocated to the office of
Hawaiian affairs;

����
(2)
�
Fifteen
per cent shall be allocated to the state
gaming fund established under section -21 for the purposes
set forth in section -21(b)(2) and (3); and

����
(3)
�
Sixty per cent shall be allocated to the
department of education.

����
� -21
�
State gaming fund.
�
(a)
�
There
is established within the state treasury the state gaming fund
, to be
administered by the commission,

into which shall be deposited
:

����
(1)
�
A
ll fees
,
fines
, and other
revenues
collected

pursuant
to
this
chapter
, unless otherwise provided;

����
(2)
�
Wagering tax revenues allocated to the fund under
section -20; and

����
(3)
�
All interest earned or accrued on moneys deposited in
the fund.

����
(b)
�

Moneys

in
the fund
shall
be
allocated as follows:

����
(1)
�
Twenty-five per

cent shall be allocated to the office of
Hawaiian affairs;

����
(2)
�
Five per cent shall
be allocated to the
compulsive
gamblers program
established pursuant to -23
and
programs to ensure
public
safety
at the casino facility;

����
(3)
�
Ten
per cent shall be
used for the administrative expenses of
the commission
; and

����
(4)
�
Sixty per cent
shall be allocated to the
d
epartment
of education
.

����
(c)
�
The commission shall submit a report to the
legislature, no later than sixty days after the close of each fiscal year, providing
an accounting of the receipts and expenditures of the fund.

����
� -22
�
Audits.
�

After the first full fiscal year of operation, the auditor shall
conduct a program and financial audit of the Hawaii gaming 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 establish and
implement a program to assist individuals who are identified as compulsive
gamblers.

����
� -24
�
Disclosure of information.

�
(a)
�
The
commission, upon written request from any person, shall provide the following
information concerning an applicant or licensee, an applicant's or licensee's
products, services, or gambling enterprises, or an applicant's or licensee's
business holdings; provided that the commission has the information in its
possession:

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

����
(2)
�
I
dentification 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 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.
�

(a)
�
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 by the casino licensee as follows:

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

����
(2)
�
$75,000,000 due one
year after the issuance of the casino license.

����
(b)
�
The
fee collected pursuant to this section shall be deposited into the general
fund.

����
(c)
�
Upon
payment of the $75,000,000 due under subsection (a)(2), the casino licensee
shall be credited with the amount of this payment against the wagering tax
imposed upon the casino licensee under section -20, to be amortized
over a period of ten years after that payment is made."

����
SECTION 2.
�

Chapter
281
,
Hawaii Revised Statutes, is amended by adding a new section to
part I to
be appropriately designated and to read
as follows:

����
"
�
281-
�
Liquor
license; casino facilities.
�
(a)
�
Notwithstanding any law to the contrary, the
Hawaii gaming control commission, established pursuant to section -3,
may establish procedures for the issuance of a liquor license for the casino
licensee.

����
(b)
�

The casino licensee shall not be subject to any ordinance adopted by the
city and county of Honolulu or any rule or requirement of the liquor commission
for the city and county of Honolulu regarding the permitting or approval of any
form of live or professional music, dancing, or entertainment; provided that
all other state laws, county ordinances, and relating to liquor are met.

����
(c)
�
For the purposes of this section,
"casino licensee" means any person who holds a casino license issued
under chapter .
"

����
SECTION
3.
�
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; exempted.
�
This part shall
not apply to casino gaming as authorized pursuant
to chapter .
"

����
SECTION
4.
�
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
5.
�
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
6.
�
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 facility 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
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; Auditor; OHA; DOE; Casino Gaming; Stadium
Development District; Hawaii Gaming Control Commission; Rules; Casino License;
Supplier's License; Occupational License; Liquor License; Reports; Wagering
Tax; State Gaming Fund; Compulsive Gamblers Program; Audits; Appropriation

Description:

Authorizes limited casino gaming in the State at a single
casino facility located in the Stadium Development District.
�
Establishes the Hawaii Gaming Control
Commission.
�
Authorizes the Commission to
adopt rules.
�
Authorizes the Commission
to issue one 20-year casino license to one licensee for the development and
operation of the casino facility.
�
Establishes
application procedures and requirements for the casino license, supplier's
license, and occupational license.
�
Allows
the Commission to establish procedures for the issuance of a liquor license for
the casino licensee.
�
Requires annual
reports to the Governor and Legislature.
�

Establishes the Wagering Tax and the disposition of revenues therefrom, including
allocations to the Office of Hawaiian Affairs and Department of Education.
�
Establishes the State Gaming Fund.
�
Requires the Commission to establish a Compulsive
Gamblers Program.
�
Requires the Auditor
to perform periodic audits of the Commission.
�
Appropriates funds.

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