Bill S.2495

SENATE DOCKET, NO. 2633 FILED ON: 6/18/2010

SENATE . . . . . . . . . . . . . . No. 2495

The Commonwealth of Massachusetts

_______________

In the Year Two Thousand Ten

_______________

An Act Text of the Senate amendment (Ways and Means) to the House Bill establishing expanded gaming in the Commonwealth (House, No. 4619).

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

region 1: suffolk, middlesex, essex and worcester counties;

region 2: norfolk, bristol, plymouth, nantucket, dukes and barnstable counties;

region 3: hampshire, hamden, franklin and berkshire counties.

Gaming licenses shall only be issued to applicants who are qualified under the criteria set forth in this chapter as determined by the commission. Within any of the regions, if the commission is not convinced that there is an applicant that has both met the eligibility criteria and provided convincing evidence that the applicant will provide value to the region in which the gaming establishment is proposed to be located and to the commonwealth, no gaming license shall be awarded in that region.

(b) No other gaming license shall be issued by the commission for a period of 10 years.

(c) No gaming licensee shall transfer a license or any direct or indirect interest in the license or a gaming establishment without the majority approval of the commission. Any person seeking to acquire a license through a transfer shall qualify for licensure under this chapter. The commission shall reject any license transfer or transfer of interest in the gaming establishment to an unsuitable person and may reject a proposed transfer that, in the opinion of the commission, would be disadvantageous to the interests of the commonwealth.

(d) (1) Notwithstanding any general or special law or rule or regulation to the contrary, the commission may grant, upon request of an applicant for a gaming license, a gaming beverage license for the sale and distribution of alcoholic beverages to be drunk on the premises of a gaming establishment. The alcoholic beverage control commission shall have the exclusive authority to enforce, regulate and control the distribution of alcoholic beverages in the gaming establishment.

(2) Chapter 138 and the rules and regulations promulgated by the alcoholic beverages control commission shall apply to a gaming establishment and a gaming beverage license unless otherwise provided by this section.

(3) The fee for the gaming beverage license and any renewals of the license shall be determined by the commission. The application fee shall be remitted with the gaming application fee.

(4) A licensee under this section shall be permitted to distribute alcohol free of charge and for on-premise consumption to patrons in the gaming area or as a complimentary service or item in the gaming establishment; provided, however, that the commission shall promulgate regulations on such distribution as well as the forms of identification that may be presented to the licensee to demonstrate proof that a person has attained the age of 21.

(5) The request submitted to the commission for a gaming beverage license by an applicant for a gaming license shall detail all areas where alcoholic beverages will be served within the gaming establishment. In issuing a gaming beverage license, the commission shall describe the scope of the particular license and any restrictions and limitations; provided, that the license shall not permit the sale or distribution of alcoholic beverages between the hours of 2 a.m. and 8 a.m.

(6) A gaming licensee shall be responsible for violations of gaming beverage license in the gaming establishment. The commission may revoke, suspend, refuse to renew or refuse to transfer a gaming beverage license for violations of chapter 138, regulations promulgated by the alcoholic beverages control commission and the regulations adopted by the commission. If, at any time, a licensee elects temporary suspension of their gaming license due to violations of this section, said licensee shall owe the commonwealth the average tax on gross gaming revenue based on an appropriate period of time as determined by the commission for the number of days operation was suspended.

(7) A gaming beverage license shall be nontransferable without prior approval from the commission. If the license granted under this section is cancelled, revoked or no longer in use, it shall be returned physically, with all the legal rights, privileges and restrictions pertaining to the license, to the commission and the commission may then grant the license to a new gaming licensee under the same conditions as specified in this section.

(8) A license granted under this section shall not decrease the number of such licenses authorized to be granted to the host community under chapter 138.

(e) A gaming license issued under this chapter shall be valid for a period of 10 years from the date of first issuance. Ten years after issuance, and every 10 years thereafter, the commission shall perform a thorough review of the business strategy of the gaming establishment which shall include plans for expansion and marketing submitted by the licensee. The commission shall establish procedures for renewal and set the renewal fee based on the cost associated with the evaluation of a licensee requesting a renewed gaming license.

A gaming licensee shall issue an annual report to the board explicitly stating its progress on meeting each of the stated goals and stipulations from the licensee’s original application. If a licensee is unable to meet stated goals within a reasonable time frame, as determined by the board, the board may levy additional fees, so long as the fees are fair and reasonable and the commission may revoke the license, so long as the licensee has been afforded a proper hearing on the matter.

Nothing in this section shall preclude the board at any time from reviewing the business operations of a gaming licensee to ensure that the conditions of licensure are being met, including, but not limited to, the suitability of the licensee and any affiliates and the fiscal stability of the gaming establishment.

(f) The commission may condition, suspend or revoke a gaming license upon a finding that a licensee: (i) has committed a criminal or civil offense under this chapter or any other laws of the commonwealth; (ii) is not in compliance with gaming regulations or is under criminal investigation in another jurisdiction; (iii) has breached a condition of the gaming license; (iv) is conducting business with or employing a person or entity subject to license or registration under this chapter that is not licensed or registered; (v) is no longer capable of maintaining operations at a gaming establishment; or (vi) whose business practice, upon a determination by the commission, is injurious to the policy objectives of this chapter.

(g) Whenever any person contracts to transfer any property relating to an ongoing gaming establishment, including a security holding in a gaming licensee or holding or intermediary company, under circumstances which require that the transferee obtain licensure under this chapter, the contract shall not specify a closing or settlement date which is sooner than 121 days after the submission of a completed application for licensure or qualification, which application shall include a fully executed and approved trust agreement.

The commission shall hold a hearing and render a decision on the interim authorization of the applicant. If the commission grants interim authorization, then the closing or settlement may occur without interruption of gaming operations. If the commission denies interim authorization, there shall be no closing or settlement until the commission makes a determination on the qualification of the applicant. If the commission then denies qualification the contract shall be terminated for all purposes without liability on the part of the transferor.

(h) No person or affiliate shall be awarded, purchase or otherwise hold or have a financial interest in more than 1 gaming license issued by the commission.

(i) When granting the gaming licenses, the commission shall take into consideration the physical distance in of the proposed gaming establishments as they relate to each other and how to maximize the benefits to the commonwealth. No gaming establishment shall be located within 40 miles of any other gaming establishment in the commonwealth.

(j) The commission shall evaluate all gaming license applications to determine which application provides the highest and best value to the region and to the commonwealth based on the criteria set out in this chapter, and any other terms the commission determines by regulation. If there is more than 1 applicant in a region who is determined by the commission to be eligible for a gaming license under this section, the commission shall allow each eligible applicant to resubmit its application. An eligible applicant may, in its resubmitted application, voluntarily increase the license fee required by subsection (k) and may modify any portion of their application related to the factors listed in section 16. The commission shall consider the entire application and not base its decision solely on the additional license fee payments in determining which applicant shall be awarded a license.

(k) A gaming licensee which has received a license in region 1 or 2 shall pay to the board a fee of not less than $75,000,000 and a gaming licensee which has received a license in region 3 shall pay to the board a fee of not less than $50,000,000. These fees shall be paid not later than 30 days after the final award of the license which sets forth the conditions to be satisfied by the licensee before the gaming establishment may be opened to the public.

Section 18. (a) The board shall prescribe the form of the gaming license, which shall include, but shall not be limited to, the following license conditions:

Each gaming licensee shall have an affirmative obligation to abide by every statement made in its application to the board under section 13 and every statement made in its bid submission to the board under section 17.

Each gaming licensee shall comply with all laws of the commonwealth and all rules and regulations promulgated under this chapter.

Each gaming licensee shall abide by all state and local building codes.

Each gaming licensee shall pay daily to the board the gross gaming revenue payment.

Each gaming licensee shall make, or cause to be made, capital expenditures to its gaming establishment in a minimum aggregate amount equal to or greater than 3.5 per cent of the net gaming revenues derived from the establishment.

No person including, but not limited to, substantial party in interest, affiliates and those entities established under the rules and regulations of the state secretary, shall transfer a license, a direct or indirect real interest, structure, real property, premises, facility, personal interest or pecuniary interest under a license issued under this chapter or enter into an option contract, management contract or other agreement or contract providing for such transfer in the present or future, without the notification to, and approval by, the commission. The commission may promulgate rules and regulations, under section 5, that create exemptions from the approval requirement; provided, that:

in no event shall a bona fide commercial financial institution licensed by the division of banks which becomes a substantial party of interest with a licensee be considered a transferee;

the commission may require the transferor, transferee, or both, to pay to the board an amount representing the commonwealth’s share of the increased value for the transferred licenses, property or interest; provided, further, that the commission shall consider as a factor in determining the amount of the payment the market value of said license, property or interest when it was acquired and at the time of the transfer; provided, further, that the commission may place additional conditions or restrictions on said transfer that the commission considers suitable; provided, further, that the commission may reject said transfer if the commission considers the transfer unsuitable; and

any payments collected by the board on behalf of the commonwealth based on said transfer shall be deposited in the same manner as license fees are deposited.

No gaming licensee shall be permitted to change its business governing structure without the notification and approval of the commission.

No gaming licensee shall operate, invest or own, in whole or in part, another licensee’s license or gaming establishment. The commission shall promulgate rules and regulations, under section 5, to address violations of this subsection.

Each gaming licensee shall cooperate with the commission, the board and the attorney general in all gaming-related investigations. Each licensee shall make readily available all documents, materials, equipment, personnel and any other items requested during all investigations. Material that the licensee considers a trade secret or detrimental to the licensee if it were made public may, with the board’s approval, be protected from public disclosure and the gaming licensee may require non-disclosure agreements with the board before disclosing such material.

Each gaming licensee shall cooperate with the commission, the board and the attorney general with respect to the investigation of any criminal matter that is discovered on the gaming establishment. The gaming licensee shall, upon receipt of criminal or civil process compelling testimony or production of documents in connection with a civil or criminal investigation, immediately disclose such information to the board. This section shall not prohibit private persons or public entities from seeking any remedy or damages against a gaming licensee.

Each gaming licensee shall allow the board to conduct warrantless searches of the licensee’s gaming area.

Each gaming licensee shall have a duty to inform the board of any action which the licensee reasonably believes would constitute a violation of this chapter, and shall assist the board and any federal or state law enforcement agency in the investigation and prosecution of such violation. No person who informs the board of such an action shall be discriminated against by an applicant or licensee as a consequence for having supplied of such information.

Each gaming licensee shall agree to be a state lottery reseller for the purpose of lottery, multi-jurisdictional lottery and keno games and to demonstrate that state lottery and keno games are readily accessible to people in the gaming establishment.

Each gaming licensee shall provide an office for the board at the gaming establishment. The board shall establish the minimum requirements for said office.

Each gaming licensee shall provide an office for the designated state police unit at the gaming establishment. The board shall establish the minimum requirements for square footage for the state police office, office furnishings and parking space.

Each gaming licensee shall collect and annually report to the board a detailed statistical report on the number, job titles and salary of employees hired and retained in employment at the gaming establishment.

Each gaming licensee shall agree to make a good faith effort to identify and recruit candidates from the local labor market area and other nearby labor market areas to ensure a diverse workforce.

Each gaming licensee shall establish, fund and maintain internal human resource hiring and training practices that promote the development of a skilled and diverse workforce with access to promotion opportunities by:

establishing transparent career paths with measurable criteria within the gaming establishment that lead to increased responsibility and higher pay grades that are designed to allow employees to pursue career advancement and promotion;

establishing employee access to additional resources, such as tuition reimbursement or stipend policies, to enable employees to acquire the education or job training needed to advance career ladders based on increased responsibility and pay grades; and

establishing an on-site child day care program.

Each gaming licensee shall formulate for board approval and abide by an affirmative-action program of equal opportunity by which the applicant guarantees to provide equal employment opportunities to all employees qualified for licensure in all employment categories, including a person with a disability, under the laws of the commonwealth.

Each gaming licensee shall employ only those persons licensed by the commission or registered by the board.

Each gaming licensee shall do business only with those vendors licensed by the commission or registered by the board.

Each gaming licensee shall provide to the board aggregate demographic information with respect to the licensee’s customers in a manner and under a schedule to be defined by the board.

Each gaming licensee shall meet the requirements under clauses 7 through 11 of subsection (a) of section 12 and clause (23) of subsection (a) of section 13 to the satisfaction of the board.

Each gaming licensee shall provide complimentary on-site space for an independent substance abuse, compulsive gambling and mental health counseling service and establish a program to train the gaming employees in the identification of and intervention with customers exhibiting problem gaming behavior.

Each gaming licensee shall keep conspicuously posted in the gaming area a notice containing the name and a telephone number for problem gambling assistance. The board may require the licensee to provide this information in more than 1 language.

Each gaming licensee shall provide a process for individuals to exclude such individuals’ names and contact information from the gaming licensee’s database or any other list held by the gaming licensee for use in marketing or promotional communications.

Each gaming licensee shall meet the requirements under clause (22) of subsection (a) of section 13 to the satisfaction of the board.

Each gaming licensee shall institute additional public health strategies as required by the board.

(b) The board may include any reasonable additional requirements to the license conditions.

Section 19. (a) No person or business shall conduct any business with a gaming licensee regarding the licensee’s gaming establishment unless such person has been licensed by the commission or registered by the board.

(1) No person or business shall manufacture, sell, distribute or repair gaming equipment or slot machines, other than antique slot machines as defined in section 5A of chapter 271, without a valid gaming vendor license issued by the commission.

(2) Non-gaming vendors shall be required to register with the board and shall produce such information as the board may require; provided, however, that the board may require any vendor otherwise considered a non-gaming vendor, which regularly conducts over $250,000 of business with a gaming licensee within a 12 month period, or $100,000 of business within a 3 year period, to be licensed as a gaming vendor.

(b) Any person seeking a gaming vendor license shall file an application with the board. Such application shall be on a form prescribed by the board and shall include, but shall not be limited to, the following:

(1) the name of the applicant;

(2) the mailing address and if a corporation, the name of the state under the laws of which the corporation is incorporated, the location of the corporation’s principal place of business and the names and addresses of the corporation’s directors and stockholders;

(3) any criminal or arrest record;

(4) any civil judgments obtained against the person pertaining to antitrust or security regulation;

(5) the identity of every person or entity having a direct or indirect interest in the business and the nature of such interest; provided, that, if the entity is a trust, the application shall disclose the names and addresses of all beneficiaries; provided, further, that if the entity is a partnership, the names and addresses of all partners, both general and limited; and provided, further, that if the disclosed entity is a limited liability company, the names and addresses of all members;

(6) an independent audit report of all financial activities and interests including, but not limited to, the disclosure of all contributions, donations, loans or any other financial transactions to or from any gaming licensee or operator of a gaming establishment in the past 5 years; and

(7) clear and convincing evidence of financial stability including, but not limited to, bank accounts, records, references, business and personal income and disbursement schedules, tax returns and other reports filed by government agencies and business and personal accounting check records and ledgers.

The board may require such other information as it deems appropriate including, without limitation, information related to the financial integrity of the applicant and may require the applicant to submit other documentation the board considers appropriate.

(c) Any person owning more than 5 per cent of the common stock of a company required to be licensed as a gaming vendor, or a holding, intermediary or subsidiary of such company, shall be required to file for licensure. The commission may waive the licensing requirements for institutional investors holding up to 15 per cent of the stock of the company, or holding, intermediary or subsidiary company of the company, upon a showing by the person seeking the waiver that the applicant purchased the securities for investment purposes only and does not have any intention to influence or affect the affairs or operations of the company or a holding, intermediary or subsidiary of the such company. Any institutional investor granted a waiver which subsequently determines to influence or affect the affairs or operations of the gaming vendor, or a holding, intermediary or subsidiary of the gaming vendor, shall provide not less than 30 days notice to the board of such intent and shall file an application and be subject to the licensing requirements of this chapter before taking an action that may influence or affect the affairs of the applicant company or a holding, intermediary or subsidiary of the applicant company.

(d) The board, by a majority vote of all members, may (i) make a recommendation to the commission that it deny a gaming vendor license application; (ii) extend the period for issuing a recommendation in order to obtain additional information necessary for a complete evaluation of the gaming vendor license application; or (iii) recommend to the commission that it grant the applicant a gaming vendor license.

(e) The board may deny an application for registration of a non-gaming vendor or supplier if the board finds that an applicant or registrant is disqualified under section 11 or may be unsuitable for registration under section 14.

(f) The commission or board, in the case of a non-gaming vendor, may condition, suspend or revoke any license or registration under this section if the commission or board finds that a licensee or registrant has:

(i) been arrested or convicted of a crime;

(ii) failed to comply with section 10 or

(iii) failed to comply with this chapter pertaining to licensees.

(g) The board shall establish a master vendor list to monitor all gaming and non-gaming vendor contracts with a gaming establishment. A vendor doing business with a gaming establishment which has failed to submit an application for licensure or registration shall be prohibited from engaging in any future business with a gaming establishment; provided, that the board may terminate any contracts that have been entered into with an unlicensed or unregistered vendor.

(h) Each gaming licensee shall have a continuing duty to inform the board of all gaming and non-gaming vendor contracts.

(i) A license or registration issued under this section shall be issued for a term of 3 years. It shall be the responsibility of the vendor to ensure that the vendor’s license or registration is current.

(j) The board shall establish fees for gaming vendor licenses which shall include costs incurred for conducting a background investigation into an applicant for said license. The board shall establish fees for non-gaming vendor registration which shall include costs incurred for conducting a background investigation into an applicant for said registration.

(k) The board shall monitor the conduct of all gaming vendors and other persons having a material involvement, directly or indirectly, with a gaming vendor to ensure that gaming vendor licenses are not issued to, or held by, and there is no direct or indirect material involvement with, a gaming vendor by unqualified, disqualified or unsuitable persons.

Section 20. (a) Each labor organization, union or affiliate seeking to represent employees who are employed at a gaming establishment shall register with the board.

(b) Neither a labor organization, nor its officers who are not otherwise licensed or registered under this chapter, may hold any financial interest in a gaming establishment whose employees are represented by the organization.

Section 21. (a) A gaming licensee shall be permitted to issue credit to a patron of a gaming establishment under regulations promulgated under section 5. Such regulations shall include, but not be limited to: (i) procedures for confirming that a patron has an established credit history and is in good standing; (ii) whether the patron has a good credit history with the gaming establishment; (iii) authorization of a credit instrument; (iv) methods for acknowledging a credit instrument and payment of debt; and (v) information to be provided by the patron to the gaming establishment to be shared with the board for auditing purposes.

(b) Except as otherwise authorized by the board through regulations under section 5, no establishment, nor any person acting on behalf of an establishment shall: (1) cash any check, make any loan or otherwise provide or allow to a person any credit or advance of anything of value, or which represents value, to enable a person to place a wager; or (2) release or discharge a debt, either in whole or in part, or make a loan which represents any losses incurred by a player in gaming activity, without maintaining a written record of the release or discharge under the rules of the commission. Nothing in this section shall prohibit an establishment from accepting credit cards for non-gaming related purchases or services.

(c) Checks cashed in conformity with the requirements of this chapter shall be valid instruments enforceable under the laws of the commonwealth. Any check cashed, transferred, conveyed or given in violation of this chapter or regulations promulgated under section 5 shall be invalid and unenforceable.

(d) The commission shall establish by regulation, under section 5, procedures and standards for approving promotional gaming credits; provided, that, no such credit shall be reported as a promotional gaming credit by an operator of a gaming establishment unless the operator can establish that the credit was issued by the gaming establishment and received from a patron as a wager at a game in the gaming establishment; provided, further, that such promotional gaming credit shall not be taxable for the purposes of determining gross revenue.

(e) No other person or entity, other than a gaming licensee licensed under this chapter, shall issue credit to a person while the person is a patron of a gaming establishment.

(f) Debt collections under this section and debt collection regulations promulgated under section 5 shall be limited to key gaming employees or attorneys acting directly on behalf of gaming licensees; provided further that a key gaming employee shall be prohibited from making any such collections if the key gaming employee serves as a junket representative for the gaming establishment.

Section 22. (a) No junkets may be organized or permitted and no person may act as a junket representative or junket enterprise except as authorized by the board under this chapter.

(b) A junket representative employed by a gaming licensee or affiliate shall be licensed as a gaming employee; provided, however, that a junket representative need not be a resident of the commonwealth. A person who holds a valid gaming employee license may act as a junket representative while employed by a gaming licensee or an affiliate. No gaming licensee shall employ or otherwise engage a junket representative who is not licensed under this chapter.

(c) The board shall deny an application for a license under this section if the board finds that an applicant is disqualified under section 11 or may be unsuitable for licensure under section 14.

(d) Each gaming licensee, junket representative or junket enterprise shall file a report with the board with respect to each list of junket patrons or potential junket patrons purchased directly or indirectly by the gaming licensee, junket representative or enterprise.

(e) No junket enterprise or junket representative or person acting as a junket representative shall: (i) engage in efforts to collect upon checks that have been returned by banks without full and final payment; (ii) exercise approval authority with regard to the authorization or issuance of credit under this chapter; (iii) act on behalf of or under any arrangement with a gaming licensee or a gaming patron with regard to the redemption, consolidation or substitution of the gaming patron’s checks awaiting deposit; (iv) individually receive or retain any fee from a patron for the privilege of participating in a junket; or (v) pay for any services, including transportation, or other items of value provided to, or for the benefit of, any patron participating in a junket.

Section 23. (a) No gaming licensee shall offer complimentary services, gifts, cash or other items of value to any person unless those complimentary services or items are provided through a complimentary distribution program which shall be filed and approved by the board upon the implementation of the program or maintained under regulations adopted under section 5.

(b) Gaming licensees shall submit quarterly reports to the board covering all complimentary services offered or engaged in by the licensee during the immediately preceding quarter. The reports shall identify regulated complimentary services and the costs of those services, the number of people who received each service or item and such other information as the board may require. The report shall also document any services or items valued in excess of $2,000 that were provided to patrons, including detailed reasons as to why they were provided.

(c) Complimentary services or items shall be valued in an amount based upon the retail price normally charged by the gaming licensee for the service or item. The value of a complimentary service or item not normally offered for sale by a gaming licensee or provided by a third party on behalf of a gaming licensee shall be the cost to the gaming licensee of providing the service or item, as determined under rules adopted by the commission.

Section 24. (a) Upon revocation or suspension of a gaming license under section 26 or upon the failure or refusal to renew a gaming license the commission may appoint a conservator to temporarily manage and operate the business of the licensee relating to the gaming establishment. Such conservator shall be a person of similar experience in the field of gaming management and, in the case of replacing a gaming licensee, shall have experience operating a gaming establishment of similar caliber in another jurisdiction, and shall be in good standing in all jurisdictions in which the conservator operates a gaming establishment.

Upon appointment, a conservator shall agree to all licensing provisions of the former licensee.

(b) A conservator shall, before assuming managerial or operational duties, execute and file a bond for the faithful performance of such duties payable to the board with such surety and in such form and amount as the board shall approve.

(c) The board shall require that the former or suspended licensee purchase liability insurance, in an amount determined by the board, to protect a conservator from liability for acts or omissions of the conservator during the conservator’s appointment reasonably related to, and within the scope of, the conservator’s duties.

(d) During the period of temporary management of the gaming establishment, the commission shall initiate proceedings under this chapter to award a new gaming license to a qualified applicant whose gaming establishment shall be located at the site of the preexisting gaming establishment.

(e) Applicants for a new gaming license shall be qualified for licensure under this chapter; provided, however, that the commission shall determine an appropriate level of investment by an applicant into the preexisting gaming establishment.

(f) Upon award of a new gaming license, the new gaming licensee shall pay the licensing fee.

Section 25. (a) There shall be within the board an investigations and enforcement bureau, which shall be the primary enforcement agent for regulatory matters under this chapter. The bureau shall perform such functions as the chair of the board determines in relation to enforcement, including the investigations of all licensees under this chapter. The bureau shall be under the supervision and control of the deputy director for investigations and enforcement. The deputy director shall be the executive and administrative head of the bureau and shall be responsible for administering and enforcing the law relative to the bureau and to each administrative unit of the bureau. The duties given to the deputy director in this chapter and in any other general or special law shall be exercised and discharged subject to the direction, control and supervision of the chair of the board.

(b) The bureau shall be a law enforcement agency and its employees shall have such law enforcement powers as to effectuate the purposes of this chapter, including the power to receive intelligence on an applicant or licensee under this chapter and to investigate a suspected violation of this chapter.

(c) Officers and employees of the gaming enforcement unit of the state police assigned to the commission under section 70 of chapter 22C shall work with employees of the bureau, under the direction of the deputy director, to investigate violations of this chapter by a licensee under this chapter or any activity taking place on the premises of a gaming establishment. Officers assigned to work with the bureau shall record their time and submit total hours to the bureau. The board shall reimburse the state police.

(d) The bureau shall notify the division of gaming enforcement in the office of the attorney general of any criminal violations by a gaming licensee. The bureau and the division shall cooperate on the regulatory and criminal enforcement of this chapter and may determine whether to proceed with civil or criminal sanctions, or both against said licensee.

(e) To further effectuate the purposes of this chapter with respect to the investigation and enforcement of licensed gaming establishments and licensees, the bureau may obtain or provide pertinent information regarding applicants or licensees from or to law enforcement entities or gaming authorities and other domestic, federal or foreign jurisdictions, including the federal bureau of investigation and may send or receive such information electronically.

(f) The gaming enforcement unit of the department of state police shall have exclusive police jurisdiction of any criminal activity relating to the operation of a gaming establishment or relating to games or gaming that occurs inside a gaming establishment; provided, however, that the state police shall have concurrent jurisdiction with the law enforcement agency of the host community on all other policing matters and, in consultation with the board, shall execute a memorandum of understanding with the law enforcement agency of the host community that shall include, but not be limited to, procedures involving: (i) assignment of police officers of the host community to the gaming enforcement unit of the state police; (ii) first responder calls from the gaming establishment; (iii) emergencies occurring within the gaming establishment, including the gaming area; and (iv) criminal investigations involving employees or patrons of the gaming establishment.

Section 26. (a) The board shall have the authority to issue orders requiring persons to cease activity which violates this chapter, a regulation adopted under this chapter or a law related to gaming in the commonwealth. The board may, in its order, require compliance with such terms and conditions as are reasonably necessary to effectuate the purposes of this chapter.

(b) If the board finds, under the procedures established in this section and the regulations adopted under said section 5, that a person is not in compliance with an order issued under this section, it shall assess a civil administrative penalty on such person and the regulations adopted under section 5. The penalty may be assessed whether or not the violation was willful. In determining the amount of the civil penalty, the board shall consider: (i) the nature of the violation; (ii) the length of time the violation occurred; (iii) the risk to the public and to the integrity of gaming operations created by the conduct of the person; (iv) the seriousness of the conduct of the person; (v) any justification or excuse for such conduct by the person; (vi) the prior history of the particular person involved with respect to gaming activity; (vii) any corrective action taken by person to prevent future misconduct; and (viii) other relevant factors.

(c) In addition to collecting any civil penalties recoverable under this chapter or any other general or special law, the board may bring an action in the superior court to restrain, prevent or enjoin any conduct prohibited by this chapter or to compel action to comply immediately and fully with an order issued by the bureau. Except in the case of an emergency during which, in the opinion of the court, immediate abatement of the unlawful conduct is required to protect the public interest, the court may in its decree fix a reasonable time during which the person responsible for the unlawful conduct may abate and correct the violation. The expense of the proceeding shall be recoverable from the subject of the proceeding.

(d) Upon a recommendation from the board, the commission may issue orders to condition, suspend or revoke a license or permit issued under this chapter.

(e) The board may issue an order to cease and desist any activity if the board finds that a licensee has engaged in or is about to engage in an act or practice which constitutes a violation of this chapter or laws of the commonwealth and may take such affirmative action to effectuate the order. If the board finds that the licensee is engaged in an act or practice that would cause irreparable harm to the security and integrity of the gaming establishment or the interests of the commonwealth in ensuring the security and integrity of gaming under this chapter, the board may issue a temporary suspension of the license.

(f) Any licensee who has been issued a temporary order of suspension by the board shall be entitled to a hearing before the commission on such suspension within 7 days of the day on which the order was issued. At the conclusion of the hearing, the commission may issue a final order to condition, suspend or revoke the license in question.

(g) Any licensee shall have the right to an adjudicatory hearing on an order issued by the board under chapter 30A.

Section 27. (a) The board may assess a civil administrative penalty on a licensee or registrant who fails to comply with any provision of this chapter or any regulation or order adopted by the commission; provided, however, that such noncompliance occurred after the board had given the licensee or registrant written notice of such noncompliance and the time stated in the notice for coming into compliance had elapsed. The board may assess a civil administrative penalty on a licensee or registrant without providing written notice of such noncompliance if the failure to comply: (i) was part of a pattern of noncompliance and not an isolated instance; (ii) was willful or neglectful and not the result of error; (iii) resulted in a significant breach to the integrity of the gaming establishment or gaming laws of the commonwealth; and (iv) consisted of failure to promptly report to the board any knowledge of evidence or circumstances that would cause a reasonable person to believe that a violation of this chapter had been committed. The civil administrative penalty shall be in addition to any other civil penalty that may be prescribed by law.

(b) For the purpose of determining whether such noncompliance was part of a pattern of noncompliance and not an isolated instance, the board shall consider without limitation the following: (i) whether the board had previously notified the person of such noncompliance on more than 1 occasion during the previous month or of any noncompliance similar to the current noncompliance during the previous 6 months; or (ii) whether the current and previous instances of noncompliance, considered together, indicate a potential threat to the integrity of the gaming establishment and gaming in the commonwealth or an interference with the commission’s ability to efficiently and effectively regulate gaming in the commonwealth and enforce any regulation, license or order. If a licensee or registrant who has received a notice of noncompliance fails to come into compliance within the time period stated in such notice, the civil administrative penalty may be assessed by the board upon such licensee or registrant from the date of receipt of such notice.

(c) Whenever the board seeks to assess a civil administrative penalty on a licensee or registrant, the board shall cause to be served upon such licensee or registrant, either by service, in hand, or by certified mail, return receipt requested, a written notice of the board’s intent to assess a civil administrative penalty which shall include:

(i) a concise statement of the alleged act or omission for which the board seeks to assess the civil administrative penalty;

(ii) each law, regulation, order, license or approval which has not been complied with as a result of the alleged act or omission;

(iii) the amount which the board seeks to assess as a civil administrative penalty for each such alleged act or omission;

(iv) a statement of the licensee’s or registrant's right to an adjudicatory hearing on the proposed assessment;

(v) the requirements such licensee or registrant shall comply with to avoid waiving the licensee’s or registrant’s right to an adjudicatory hearing; and

(vi) the manner of payment of the penalty if the licensee or registrant elects to pay the penalty and waive an adjudicatory hearing.

After written notice of noncompliance or intent to assess a civil administrative penalty has been given, each subsequent day during which such noncompliance occurs or continues shall constitute a separate offense and may be subject to a separate civil administrative penalty if reasonable efforts have not been made by the licensee or registrant to promptly come into compliance.

(d) Whenever the board seeks to assess a civil administrative penalty on a licensee or registrant, such licensee or registrant shall have the right to an adjudicatory hearing. Chapter 30A shall apply to adjudicatory hearings under this chapter; provided, that, if there is a conflict between this chapter and said chapter 30A, this chapter shall govern.

(e) A licensee or registrant shall be deemed to have waived the licensee’s or registrant’s right to an adjudicatory hearing unless, within 21 days of the date of the board's notice that it seeks to assess a civil administrative penalty, the licensee or registrant files with the board a written statement denying the occurrence of the acts or omissions alleged by the board in such notice or asserting that the amount of the proposed civil administrative penalty is excessive. In an adjudicatory hearing the board shall be required to prove the occurrence of each act or omission alleged by the board by a preponderance of the evidence.

(f) If a licensee or registrant waives the licensee’s or registrant’s right to an adjudicatory hearing, the proposed civil administrative penalty shall be final immediately upon such waiver. If a civil administrative penalty is assessed at the conclusion of an adjudicatory hearing, the civil administrative penalty shall be final upon the expiration of 30 days if no action for judicial review of the decision is commenced under chapter 30A.

(g) A licensee or registrant who institutes proceedings for judicial review of the final assessment of a civil administrative penalty shall place the full amount of the final assessment in an interest-bearing escrow account in the custody of the clerk or magistrate of the reviewing court. The establishment of such an interest-bearing escrow account shall be a condition precedent to the jurisdiction of the reviewing court unless the party seeking judicial review demonstrates in a preliminary hearing held within 30 days of the filing of the complaint an inability to pay. Upon such a demonstration, the court may grant an extension or waiver of the interest-bearing escrow account or may require, in lieu of such interest-bearing escrow account, the posting of a bond payable directly to the commonwealth in the amount of 125 per cent of the assessed penalty.

(i) If, after judicial review, in a case where the requirement for an escrow account has been waived, and in cases where a bond has been posted in lieu of such requirement, the court affirms, in whole or in part, the assessment of a civil administrative penalty the board shall be paid the amount of the penalty together with interest at the rate set forth in section 6C of chapter 231.