Bingo and pull tabs-licensing.

WORKING DRAFT
2009
STATE OF
WYOMING
09LSO-0303

HOUSE BILL
NO.
HB0210

Bingo and pull tabs-licensing.

Sponsored by:
Representative(s)
Edmonds

A BILL

for

AN ACT relating to
gambling; providing for licensure of organizations operating
bingo and pull tab games
; providing for licensure of manufacturers and
distributors
of equipment, devices and supplies for use in
bingo or pull tab games
; providing for enforcement of gambling provisions by the department of revenue; granting rulemaking authority; providing for fees; providing for inspection of records; imposing penalties;
and providing for an effective date.

Be It Enacted by the Legislature of the State of
Wyoming
:

Section 1.

W.S. 6
‑
7
‑
201 through 6
‑
7
‑
2
09
are created to read:

ARTICLE 2
LICENSING AND ENFORCEMENT

6
‑
7
‑
201.

Department of
r
evenue; duties; authority to issue subpoenas; refusal to comply.

(a)

The department of revenue shall:

(i)

Regulate and license operators of
bingo and pull tab games
authorized under this chapter;

(ii)

Regulate and license manufacturers, distributors and operators of equipment, devices and supplies for use in licensed
bingo and pull tab games
authorized under this chapter;

(iii)

Monitor the conduct or business of licensees under this
article
to the extent necessary to ensure compliance with this chapter and department rules and regulations;

(iv)

Regulate
bingo and pull tab games
conducted under any license issued under this
article
to assure the games are fairly held, operated and conducted in accordance with the requirements of the appropriate license and this chapter;

(v)

Enforce this chapter and department rules and regulations and assist local law enforcement in enforcing this chapter;

(vi)

Promulgate rules and regulations necessary to carry out the provisions and responsibilities imposed by this chapter, including the establishment of application or renewal fees. Any funds collected by the department shall be deposited in the general fund;

(vii)

Conduct necessary examinations, inspections and investigations for the enforcement of this chapter, applicable state law and department rules and regulations;

(viii)

Require that license applicants be fingerprinted for identification purposes as a condition of licensing.

(b)

In any examination, inspection or investigation conducted pursuant to this chapter, the department may by subpoena require papers, records, files, correspondence, documents and other evidence relevant to the inquiry.

(c)

Upon refusal of any person to comply with any subpoena and upon application by the department, the district court of the county in which the examination, inspection or investigation is conducted or in which the person resides or may be found, may issue an order requiring the person to comply with the subpoena and produce evidence. Failure to obey a court order is grounds for immediate license suspension and may be punished by the court as contempt.

(d)

As used in this
article
, "department" means the department of revenue.

6
‑
7
‑
202.

Investigation and review of applications for licensure; determination; effect; conditions; investigation costs; appeal.

(a)

The department shall upon receipt of any application for any license under this
article
, investigate the qualifications of the applicant and the merits of the application including requiring fingerprints from persons enumerated under paragraph (i) of this
sub
section. In its investigation, the department shall determine:

(i)

The existence of a prior criminal record
showing a conviction for violation of federal or state law by any of the following persons:

(A)

If applicable, any individual or member of the applicant organization designated within the application to be responsible for the conduct of the authorized
bingo or pull tab games
;

(B)

If applicable, the person under whose name the
bingo or pull tab games
will be conducted
;

(C)

If applicable, the person applying for the license to manufacture or distribute equipment, devices or supplies used in any licensed
bingo or pull tab games
.

(ii)

If the applicant is duly qualified to hold, operate and conduct
bingo
or pull tab games
under this chapter;

(iii)

If the authorized
bingo or pull tab games
are to be held, operated and conducted in accordance with provisions of this chapter governing the holding, operation and conduct of the
bingo or pull tab games
and if applicable, that the proceeds are to be disposed of as required under this chapter.

(b)

Within a reasonable period of time not to exceed one hundred twenty (120) days following receipt of any application for a new license or within thirty (30) days following receipt of any applica
­
tion for license renewal, the department shall approv
e
or den
y
the application for licensure under this
article
together with its findings.

(c)

The department shall not approve any application if based upon the investigation conducted under paragraph (a)(i) of this section, it determines the prior activity or criminal record of the applicant and persons enumerated under paragraph (a)(i) of this section:

(i)

Poses a threat to the public interest of the state or the effective regulation and control of authorized
bingo or pull tab games
; or

(ii)

Creates a danger of unlawful practices, methods or activities in the conduct of authorized
bingo or pull tab games
or in the conduct of business and financial arrangements incidental to
bingo or pull tab games
.

(d)

The cost of any necessary background investigation of any applicant for a license or license renewal under this section shall be paid by the applicant. The department shall by rule and regulation establish the conditions and procedures for payment and may require payment in advance.

(e)

Any determination by the department under this
article
is subject to appeal in accordance with the Wyoming Administrative Procedure Act.

6
‑
7
‑
20
3
.

Inspections and examinations; audits; failure to permit entry; concurrent authority.

(a)

In enforcing this chapter, the department through its employees or agents may:

(i)

Enter and inspect at any time the premises upon which
bingo or pull tab games
are conducted or from which supplies, devices and equipment for
bingo or pull tab games
are manufactured, maintained or supplied;

(ii)

Examine the records, books of account and equipment, supplies or devices of any license applicant or licensee, as necessary to conduct examinations, inspec
­
tions and investigations under this chapter;

(iii)

Seize, remove and impound from the premises of any licensee, equipment, supplies and devices for the purpose of examination and inspection;

(iv)

When warranted, conduct detailed investiga
­
tions and through the department of audit, conduct detailed audits.

(b)

Upon request of the department, the department of audit shall conduct an audit of any license applicant or licensee as necessary to assist the department in enforcing this chapter.

(c)

Entry for purposes of inspection is authorized only during open business hours unless it is in the presence of the licensee or a duly authorized representative of the licensee, or unless the officer making entry does so under court order, under search warrant issued by a court of competent jurisdiction or has probable cause to believe that evidence of any violation of this chapter is within the place to be entered. Refusal to permit the entry of an agent of the department to the licensed premises or place of business for the purpose of inspection in accordance with this section is grounds for immediate license suspension.

(d)

The department shall have concurrent authority and powers with the district attorneys in this state in the investigation of any criminal violation under this chapter. Upon refusal of any district attorney to act on any criminal violation of this chapter, the department may request the attorney general
to
act on behalf of the county, state or any agency thereof.

6
‑
7
‑
20
4
.

Games of chance authorized; application for licenses and license
renewals; contents; submission to department; notification of change in application information; penalty.

(a) Authorized
bingo or pull tab games
are permitted only as provided in W.S. 6
‑
7
‑
101 through 6
‑
7
‑
104.

(b)

To conduct any authorized
bingo or pull tab game
, an applicant for any license or license renewal under this
article
shall file written application with the
department
. The application shall be made under oath upon a form prepared by the department.

(
c
)

An applicant shall during pendency of the application, immediately notify the
department
of any change in the information stated in the application. If any substantial change occurs after license issuance or renewal, the change shall be reported to the
department
within ten (10) days after the date of the change. Failure to report any change in the information stated in the initial application or any substantial change after issuance or renewal of a license shall be grounds for denial of an application or revocation of an existing license.

(
d
)

Any person knowingly submitting an application containing false information in violation of this
article
is guilty of a felony punishable by a fine of not more than ten thousand dollars ($10,000.00), imprisonment for not more than three (3) years, or both.

6
‑
7
‑
20
5
.

Comb
ination of interests prohibited
.

(a)

Any license
for operation of a
bingo or pull tab game
authorized by this chapter shall not be held by, issued or transferred to:

(i)

Any person or organization in which any officer, director, manager, employee or agent has a direct or indirect interest in any manufacturer or distributor of equipment, devices or supplies used in
bingo or pull tab games
, or who serves as an officer, director, proprietor or employee or is a stockholder holding more than two percent (2%) of the outstanding shares of the manufacturer or distributor;

(ii)

Any mayor, member of a town council or county
commission
er within their respective jurisdiction;

(iii)

Any person employed by the department or to any organization in which the employed person has an ownership interest;

(
i
v)

Any peace officer employed by the state or any city, town or county.

6
‑
7
‑
2
06
.

Proof of financial responsibility required.

Before issuing or renewing any license
for operation of a
bingo or pull tab game
and in addition to payment of license fees, the
department
shall require the license applicant to furnish a bond or other form of financial responsibility approved by the
department
, in an amount established by the department for the appropriate
game
.

6
‑
7
‑
2
07
.

Disposition of
license fees; terms of licenses
.

(a)

Fees authorized by this
article
shall be established by the department in amounts sufficient to ensure that the total revenue generated by the collection of such fees approximates the direct and indirect costs incurred in carrying out its duties under this
article
. The amounts of all fees shall be reviewed annually by the department
.

(
b
)

Any license issued o
r renewed under this
article

is considered a privilege to the holder and the term of the license is for
one
(
1
) year unless sooner revoked.

6
‑
7
‑
2
08
.

Transfer of license location or ownership prohibited; ownership transfer specified.

(a)

No license issued under this
article
shall be
transferred or sold.

(b)

A transfer or sale of a cumulative fifty percent (50%) or more of the ownership of a license is a transfer or sale for purposes of this section.

6
‑
7
‑
2
09
.

Suspension and revocation;
penalties
.

(a)

The department
may suspend or revoke any license issued under this
article
for any violation of this chapter or rule or regulation of the department.
Suspension or revocation by the department is subject to appeal in accordance with the Wyoming Administrative Procedure Act.

(
b
)

Any person violating any provision of this chapter for which no specific penalty is provided is guilty of a felony punishable by a fine of not more than one thousand dollars ($1,000.00), imprisonment for not more than five (5) years, or both. Each violation is a separate offense.

(b)

Any person conducting
bingo or pull tab games
authorized by this chapter without holding a license authorizing the conduct is guilty of professional gambling as prohibited and penalized under W.S. 6
‑
7
‑
102(b).

Section 2.

W.S. 7
‑
19
‑
201(a) by creating a new paragraph (xiii)
and
39
‑
11
‑
102(c)(xxiii) and by creating a new paragraph (xxv) are amended to read:

7
‑
19
‑
201.

State or national criminal history record information.

(a)

The following persons shall be required to submit to fingerprinting in order to obtain state and national criminal history record information:

(xiii)

Persons applying to the department of revenue for a license under W.S. 6
‑
7
‑
201 through 6
‑
7
‑
2
09
.

39
‑
11
‑
102.

Administration; confidentiality; department of revenue.

(c)

In addition to the other powers and duties imposed by law, the department shall:

(xxiii)

Review boundaries for proposed special districts pursuant to W.S. 22
‑
29
‑
109(a);

and

(xxv) Enforce the provisions of W.S. 6
‑
7
‑
101 through 6
‑
7
‑
20
9
.

Section
3
.

This act is effective July 1, 2009.

(END)

1
HB0210