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Monday, December 28, 1998

1998 HB678 St Lottery Commission Video Lottery Terminals

1998 HB678 St Lottery Comm Video Lottery Terminals

http://mlis.state.md.us/1998rs/billfile/hb0678.htm


1998 Regular Session bill information current as of December 28, 1998 - 7:34 p.m.

Sponsors

Title

Synopsis

History

Sponsor List

Subjects

Statutes

Documents

Another Session

Another Bill

HOUSE BILL 678

CONSTITUTIONAL AMENDMENT

File Code: Agencies, Offices, and Officials

Sponsored By:

Delegates Rawlings, Hixson, Arnick, Curran, C. Davis, Dewberry, Harrison, Vallario, Branch, Bonsack, DeCarlo, Franchot, Howard, B. Hughes, Marriott, Malone, Minnick, Mohorovic, Nathan-Pulliam, Palumbo, Proctor, Valderrama, Weir, and Wood

Entitled:

State Lottery Commission - Video Lottery Terminals - Revenues and Funding


Synopsis:

Authorizing the State Lottery Commission to issue electronic gaming facility licenses for specific racetracks, tourist destination locations, and satellite simulcast facilities; authorizing the Commission to issue licenses for electronic gaming employees, service technicians, and manufacturers; requiring the Commission to adopt regulations; creating an Education Trust Fund; providing for administrative penalties; providing for the allocation of fees and other revenue; etc.


History by Legislative Date

House Action

2/9

First Reading Ways and Means

2/13

Hearing 2/26 at 11:00 a.m.

Senate Action

No Action


Sponsored by:

Delegate Howard P. Rawlings, District 40

Delegate John S. Arnick, District 7

Delegate Rose Mary Hatem Bonsack, District 34

Delegate Talmadge Branch, District 45

Delegate Gerald J. Curran, District 43

Delegate Clarence Davis, District 45

Delegate Diane DeCarlo, District 6

Delegate Thomas E. Dewberry, District 47B

Delegate Peter Franchot, District 20

Delegate Hattie N. Harrison, District 45

Delegate Sheila Ellis Hixson, District 20

Delegate Carolyn J. B. Howard, District 24

Delegate Brenda B. Hughes, District 25

Delegate James E. Malone, Jr., District 12A

Delegate Salima Siler Marriott, District 40

Delegate Joseph J. Minnick, District 7

Delegate Jacob J. Mohorovic, Jr., District 7

Delegate Shirley Nathan-Pulliam, District 10

Delegate Richard A. Palumbo, District 22A

Delegate James E. Proctor, Jr., District 27A

Delegate David M. Valderrama, District 26

Delegate Joseph F. Vallario, Jr., District 27A

Delegate Michael H. Weir, District 6

Delegate John F. Wood, Jr., District 29A


Bill indexed under the following Subjects:

COMMITTEES AND COMMISSIONS -see also- POLITICAL COMMITTEES

CONSTITUTIONAL AMENDMENTS

EDUCATION -see also- PUBLIC SCHOOLS; SPECIAL ED.; HIGHER ED.

FEES -see also- DEVELOPMENT FEES AND TAXES

GAMING -see also- BINGO; LOTTERY; RAFFLES

GENERAL ASSEMBLY -see also- AELR CMTE; LEGISLATIVE POLICY

HEALTH AND MENTAL HYGIENE, DEPARTMENT OF

HEARINGS

INVESTIGATIONS AND INQUIRIES -see also- CRIM BCKGRND INVEST.

LICENSES -see also- ALC. BEVERAGES LICENSES; DRIVERS' LIC

LOTTERY

MENTAL HEALTH

PENALTIES

RACING

REFERENDUM

REVENUE AND TAXES -see also specific taxes -

RULES AND REGULATIONS

TOURISM

VIDEO


Bill affects the following Statutes:

Article - XIX State Lottery Commission - Video Lottery Terminals

( 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14 )


Documents:

Bill Text: First Reading (RTF / PDF), Third Reading, Enrolled

Fiscal Note: Available (RTF / PDF)

Amendments: None offered


HOUSE BILL 678

CONSTITUTIONAL AMENDMENT

Unofficial Copy 1998 Regular Session

P1 8lr0152

____________________________________________________________________________________

By: Delegates Rawlings, Hixson, Arnick, Curran, C. Davis, Dewberry,

Harrison, Vallario, Branch, Bonsack, DeCarlo, Franchot, Howard, B.

Hughes, Marriott, Malone, Minnick, Mohorovic, Nathan-Pulliam,

Palumbo, Proctor, Valderrama, Weir, and Wood

Introduced and read first time: February 9, 1998

Assigned to: Ways and Means

_____________________________________________________________________________________

A BILL ENTITLED

1 AN ACT concerning

2 State Lottery Commission - Video Lottery Terminals - Revenues and

3 Funding

4 FOR the purpose of prohibiting the General Assembly from enacting on or after a

5 certain date a statute that authorizes certain forms or expansion of commercial

6 gaming, such as casino-style gaming; authorizing the State Lottery Commission

7 to allow certain thoroughbred racing and harness racing licensees to offer video

8 lottery terminals for public use at certain tracks in the State; authorizing the

9 State Lottery Commission to allow video lottery terminals for public use at

10 certain tourist destination locations and certain satellite simulcast facilities

11 licensed by the Maryland Racing Commission; establishing certain eligibility

12 criteria and disqualifying criteria for a video lottery facility license; authorizing

13 the State Lottery Commission to conduct certain investigations and hearings;

14 specifying limits on the numbers of video lottery terminals allowed at certain

15 facilities; authorizing the State Lottery Commission to require video lottery

16 terminal manufacturers, video lottery operators, video lottery employees, and

17 service technicians to be licensed; providing for certain eligibility criteria and

18 disqualifying criteria for certain licenses; requiring the State Racing

19 Commission to issue certain satellite simulcast facility permits under certain

20 circumstances; authorizing the State Lottery Commission to reprimand a

21 licensee or deny, suspend, or revoke certain licenses under certain

22 circumstances; authorizing the State Lottery Commission to collect certain fees,

23 civil penalties, and taxes; providing for the issuance of certain regulations by the

24 State Lottery Commission; providing that the State Lottery Commission shall

25 buy or lease, and shall maintain control over, the video lottery terminals,

26 associated equipment, and central computer under this Act; requiring the State

27 Lottery Commission to distribute certain moneys in specified ways; providing

28 for certain local impact grants; providing for a certain distribution from video

29 lottery proceeds to the Purse Dedication Account for horse racing; creating an

30 Education Trust Fund administered by the Education Trust Fund Board;

31 providing for the membership and duties of the Board; requiring certain

32 distributions from video lottery proceeds to the Education Trust Fund; providing


2 HOUSE BILL 678

1 for certain appropriations from the Education Trust Fund for certain education

2 programs; providing for certain distributions from the Purse Dedication Account

3 for horse racing; providing for a certain distribution from video lottery proceeds

4 to the Maryland Tourism Development Board Fund; requiring the State Lottery

5 Commission to make certain accounts to the Comptroller; creating a Compulsive

6 Gambling Fund in the Department of Health and Mental Hygiene; providing for

7 certain disbursements from the Compulsive Gambling Fund for certain

8 purposes; defining certain terms; generally relating to the operation of video

9 lottery terminals at certain tracks, tourist destination locations, and satellite

10 simulcast facilities; providing for a certain contingency regarding the

11 authorization of video lottery terminals at certain tourist destination locations

12 and satellite simulcast facilities; and submitting this amendment to the

13 qualified voters of the State of Maryland for their adoption or rejection.

14 BY proposing an addition to the Constitution of Maryland

15 New Article XIX - State Lottery Commission - Video Lottery Terminals

16 Section 1 through 14, inclusive

17 Preamble

18 WHEREAS, The question of whether to authorize video lottery terminals is a

19 public policy issue of paramount importance that shall be decided by the voters of the

20 State by their adoption or rejection of this amendment to the Constitution of

21 Maryland; and

22 WHEREAS, The authorization of any additional forms or expansion of

23 commercial gaming, such as casino-style gaming, in the State shall be prohibited by

24 this amendment to the Constitution of Maryland; and

25 WHEREAS, The General Assembly recognizes that an investment in

26 education is an investment in the State's economic future and in a workforce that can

27 meet the challenges of the 21st century and beyond; and

28 WHEREAS, The State should dedicate significant levels of funding from the

29 video lottery operations to reflect a commitment to prekindergarten through

30 secondary public education, public institutions of higher education in the State, and

31 educational opportunities for the students of the State; and

32 WHEREAS, Maryland's horse racing industry reaches across the State

33 affecting farm owners, breeders, horsemen, and track personnel from the Eastern

34 Shore to Western Maryland; and

35 WHEREAS, The General Assembly finds and declares that this amendment to

36 the Constitution of Maryland is necessary to preserve, restore, and revitalize the

37 horse racing and breeding industries and preserve in Maryland the economic impact

38 associated with these industries; and

39 WHEREAS, The General Assembly finds and declares that competition from

40 video lottery facilities in Delaware is resulting in increased purses and economic


3 HOUSE BILL 678

1 activity in that state and the Delaware facilities, as well as the opening of a similar

2 facility in West Virginia adjacent to Frederick County, will have a substantial

3 negative impact on Maryland's historic racing and breeding industries and the related

4 economy of the State; and

5 WHEREAS, The tourist industry of the State constitutes a critical component

6 of its economic structure and, if properly developed, controlled, and fostered, is

7 capable of providing a substantial contribution to the general welfare, health, and

8 prosperity of the State and its inhabitants; and

9 WHEREAS, The introduction of a limited number of authorized video lottery

10 terminals in tourist destination locations will facilitate the development of the tourist

11 industry; and

12 WHEREAS, An integral and essential element of the regulation and control of

13 video lottery terminals rests in the credibility and integrity of the regulatory process

14 and of video lottery operations; and to further public confidence and trust, the

15 regulatory provisions of this Act are designed to extend strict regulation to all

16 persons, locations, practices, and associations related to the operation of licensed

17 video lottery operations as provided under this amendment to the Constitution of

18 Maryland; and

19 WHEREAS, The facilities in which video lottery operations are to be located

20 are of vital law enforcement and social interest to the public; and

21 WHEREAS, The General Assembly finds and declares that it is necessary and

22 in the best interest of the economic growth of the State to make commitments to

23 educational programs in the State and to allow Maryland's horse racing and breeding

24 industries and tourist industry to compete with those industries in surrounding

25 states by authorizing video lottery terminals at some of Maryland's racing facilities,

26 satellite simulcast facilities, and tourist destination locations; now, therefore,

27 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF

28 MARYLAND, (Three-fifths of all the members elected to each of the two Houses

29 concurring), That it be proposed that the Constitution of Maryland read as follows:

30 ARTICLE XIX - STATE LOTTERY COMMISSION - VIDEO LOTTERY TERMINALS

31 1. DEFINITIONS.

32 (A) IN THIS ARTICLE THE FOLLOWING WORDS HAVE THE MEANINGS

33 INDICATED.

34 (B) "APPLICANT" MEANS A PERSON WHO APPLIES FOR ANY LICENSE

35 REQUIRED UNDER THIS ARTICLE.

36 (C) "ASSOCIATED EQUIPMENT" MEANS HARDWARE LOCATED ON THE

37 LICENSEE'S PREMISES THAT IS CONNECTED TO THE VIDEO LOTTERY SYSTEM FOR

38 THE PURPOSE OF PERFORMING COMMUNICATION, VALIDATION, OR OTHER


4 HOUSE BILL 678

1 FUNCTIONS, BUT NOT INCLUDING THE COMMUNICATION FACILITIES OF A

2 REGULATED UTILITY OR THE VIDEO LOTTERY TERMINALS.

3 (D) "BACKGROUND INVESTIGATION" MEANS A SECURITY, CRIMINAL, AND

4 CREDIT INVESTIGATION OF A PERSON WHO APPLIES FOR OR WHO IS GRANTED A

5 LICENSE UNDER THIS ARTICLE.

6 (E) "CAREER OFFENDER" MEANS A PERSON WHOSE BEHAVIOR IS PURSUED IN

7 AN OCCUPATIONAL MANNER OR CONTEXT FOR THE PURPOSE OF ECONOMIC GAIN

8 THAT UTILIZES METHODS THAT ARE DEEMED BY THE COMMISSION AS CRIMINAL

9 VIOLATIONS OF THE PUBLIC POLICY OF THE STATE.

10 (F) "CAREER OFFENDER CARTEL" MEANS A GROUP OF PERSONS WHO

11 OPERATE TOGETHER AS CAREER OFFENDERS.

12 (G) "CENTRAL COMPUTER" MEANS A CENTRAL SITE COMPUTER PROVIDED TO

13 AND CONTROLLED BY THE COMMISSION TO WHICH VIDEO LOTTERY TERMINALS

14 COMMUNICATE FOR PURPOSES OF:

15 (1) INFORMATION RETRIEVAL; AND

16 (2) PROGRAMS TO ACTIVATE AND DISABLE VIDEO LOTTERY TERMINALS.

17 (H) "COMMISSION" MEANS THE STATE LOTTERY COMMISSION.

18 (I) "CONTROL" MEANS THE AUTHORITY TO DIRECT THE MANAGEMENT AND

19 POLICIES OF AN APPLICANT OR LICENSEE.

20 (J) "COSTS" MEANS, UNLESS THE CONTEXT OTHERWISE REQUIRES, THE

21 EXPENSES INCURRED BY THE COMMISSION IN THE ADMINISTRATION OF THIS

22 ARTICLE, INCLUDING THE TESTING AND EXAMINATION OF VIDEO LOTTERY

23 TERMINALS AND THE PERFORMANCE OF BACKGROUND INVESTIGATIONS AND

24 OTHER RELATED ACTIVITIES.

25 (K) "COUNTY" INCLUDES BALTIMORE CITY.

26 (L) "EASTERN SHORE OF MARYLAND" MEANS CAROLINE, CECIL, DORCHESTER,

27 KENT, QUEEN ANNE'S, SOMERSET, TALBOT, WICOMICO, AND WORCHESTER

28 COUNTIES.

29 (M) "FAMILY" MEANS SPOUSE, PARENTS, GRANDPARENTS, CHILDREN,

30 GRANDCHILDREN, SIBLINGS, UNCLES, AUNTS, NEPHEWS, NIECES, FATHERS-IN-LAW,

31 MOTHERS-IN-LAW, DAUGHTERS-IN-LAW, SONS-IN-LAW, BROTHERS-IN-LAW, AND

32 SISTERS-IN-LAW, WHETHER BY WHOLE OR HALF BLOOD, BY MARRIAGE, ADOPTION,

33 OR NATURAL RELATIONSHIP.

34 (N) (1) "LICENSEE" MEANS AN APPLICANT WHO HAS BEEN ISSUED A VIDEO

35 LOTTERY FACILITY LICENSE.


5 HOUSE BILL 678

1 (2) "LICENSEE" INCLUDES, UNLESS THE CONTEXT OTHERWISE

2 REQUIRES, AN APPLICANT WHO HAS BEEN ISSUED ANY LICENSE REQUIRED UNDER

3 THIS ARTICLE.

4 (O) "MANUFACTURER" MEANS A PERSON WHO HOLDS A LICENSE ISSUED BY

5 THE COMMISSION TO ENGAGE IN THE BUSINESS OF DESIGNING, BUILDING,

6 CONSTRUCTING, ASSEMBLING, MANUFACTURING, OR DISTRIBUTING A CENTRAL

7 COMPUTER, VIDEO LOTTERY TERMINALS, ASSOCIATED EQUIPMENT, THE

8 ELECTRONIC COMPUTER COMPONENTS OF VIDEO LOTTERY TERMINALS, THE

9 RANDOM NUMBER GENERATOR OF VIDEO LOTTERY TERMINALS, OR THE CABINET IN

10 WHICH A VIDEO LOTTERY TERMINAL IS HOUSED, AND WHOSE PRODUCT IS

11 INTENDED FOR SALE, LEASE, OR OTHER ASSIGNMENT TO A LICENSEE OR THE

12 COMMISSION AND WHO CONTRACTS WITH THE LICENSEE OR THE COMMISSION FOR

13 THE SALE, LEASE, OR OTHER ASSIGNMENT.

14 (P) "OWN" MEANS HAVING A BENEFICIAL OR PROPRIETARY INTEREST, OF AT

15 LEAST A CERTAIN PERCENTAGE ESTABLISHED BY THE COMMISSION, IN THE

16 PROPERTY OR BUSINESS OF AN APPLICANT OR LICENSEE.

17 (Q) "PLAYER" MEANS A PERSON WHO PLAYS A VIDEO LOTTERY TERMINAL AT A

18 VIDEO LOTTERY FACILITY LICENSED BY THE COMMISSION.

19 (R) "PROCEEDS" MEANS THE PART OF THE AMOUNT OF MONEY BET THROUGH

20 VIDEO LOTTERY TERMINALS THAT IS NOT RETURNED TO SUCCESSFUL PLAYERS BUT

21 IS OTHERWISE ALLOCATED UNDER THIS ARTICLE.

22 (S) "SATELLITE SIMULCAST FACILITY" MEANS A FACILITY AUTHORIZED BY

23 THE STATE RACING COMMISSION TO CONDUCT SATELLITE SIMULCAST BETTING AT A

24 LOCATION OTHER THAN A TRACK.

25 (T) "SERVICE TECHNICIAN" MEANS A PERSON WHO IS LICENSED BY THE

26 COMMISSION AND PERFORMS SERVICE, MAINTENANCE, OR REPAIR ON LICENSED

27 VIDEO LOTTERY TERMINALS.

28 (U) "VIDEO LOTTERY" MEANS GAMING OR BETTING CONDUCTED USING A

29 VIDEO LOTTERY TERMINAL.

30 (V) "VIDEO LOTTERY EMPLOYEE" MEANS AN EMPLOYEE, OF A PERSON WHO

31 HOLDS A VIDEO LOTTERY FACILITY LICENSE, WHO PARTICIPATES IN THE VIDEO

32 LOTTERY OPERATIONS.

33 (W) (1) "VIDEO LOTTERY TERMINAL" MEANS ANY ELECTRONIC

34 CONTRIVANCE, MACHINE, OR OTHER DEVICE THAT, ON INSERTION OF A COIN,

35 TOKEN, OR SIMILAR OBJECT OR ON PAYMENT OF ANY CONSIDERATION, IS

36 AVAILABLE TO PLAY OR OPERATE, THE PLAY OR OPERATION OF WHICH, WHETHER

37 BY REASON OF THE SKILL OF THE OPERATOR OR APPLICATION OF THE ELEMENT OF

38 CHANCE, OR BOTH, MAY DELIVER OR ENTITLE THE PLAYER WHO OPERATES THE

39 DEVICE TO RECEIVE CASH, PREMIUMS, MERCHANDISE, TOKENS, OR ANYTHING OF

40 VALUE, WHETHER THE PAYOUT IS MADE AUTOMATICALLY FROM THE DEVICE OR IN

41 ANY OTHER MANNER.


6 HOUSE BILL 678

1 (2) "VIDEO LOTTERY TERMINAL" DOES NOT INCLUDE AN AUTHORIZED

2 SLOT MACHINE OPERATED BY AN ELIGIBLE ORGANIZATION UNDER ARTICLE 27, §

3 264B OF THE ANNOTATED CODE OF MARYLAND.

4 (X) "WESTERN MARYLAND" MEANS ALLEGANY, GARRETT, AND WASHINGTON

5 COUNTIES.

6 2. ADDITIONAL FORMS OR EXPANSION OF COMMERCIAL GAMING PROHIBITED.

7 (A) ON OR AFTER THE EFFECTIVE DATE OF THIS ARTICLE, THE GENERAL

8 ASSEMBLY MAY NOT AUTHORIZE STATUTORILY ANY ADDITIONAL FORMS OR

9 EXPANSION OF COMMERCIAL GAMING, SUCH AS CASINO-STYLE GAMING,

10 INCLUDING:

11 (1) CARD GAMES;

12 (2) DICE GAMES;

13 (3) ROULETTE;

14 (4) SLOT MACHINES; AND

15 (5) VIDEO LOTTERY TERMINALS.

16 (B) THIS SECTION DOES NOT APPLY TO:

17 (1) EXCEPT AS PROVIDED IN ITEM (A)(5) OF THIS SECTION, LOTTERIES

18 CONDUCTED UNDER TITLE 9, SUBTITLE 1 OF THE STATE GOVERNMENT ARTICLE OF

19 THE ANNOTATED CODE OF MARYLAND;

20 (2) WAGERING ON HORSE RACING CONDUCTED UNDER TITLE 11 OF THE

21 BUSINESS REGULATION ARTICLE OF THE ANNOTATED CODE OF MARYLAND; OR

22 (3) GAMING CONDUCTED BY A BONA FIDE FRATERNAL, CIVIC, WAR

23 VETERANS', RELIGIOUS, OR CHARITABLE ORGANIZATION, VOLUNTEER FIRE

24 COMPANY, OR SUBSTANTIALLY SIMILAR ORGANIZATION DESCRIBED UNDER THE

25 GAMING SUBHEADING OF ARTICLE 27 OF THE ANNOTATED CODE OF MARYLAND.

26 3. VIDEO LOTTERY FACILITY LICENSE REQUIRED.

27 (A) THE COMMISSION SHALL REGULATE THE OPERATION OF VIDEO LOTTERY

28 TERMINALS IN ACCORDANCE WITH THIS ARTICLE.

29 (B) ONLY A PERSON WITH A VIDEO LOTTERY FACILITY LICENSE ISSUED BY

30 THE COMMISSION MAY OFFER A VIDEO LOTTERY TERMINAL FOR PUBLIC USE IN THE

31 STATE UNDER THIS ARTICLE.

32 (C) ANY OTHER LAW THAT PROHIBITS THE LOCATION, POSSESSION, KEEPING,

33 MAINTAINING, OR OPERATION OF VIDEO LOTTERY TERMINALS DOES NOT APPLY TO

34 VIDEO LOTTERY TERMINALS AUTHORIZED IN ACCORDANCE WITH THIS ARTICLE.


7 HOUSE BILL 678

1 4. ELIGIBILITY REQUIREMENTS FOR VIDEO LOTTERY FACILITY LICENSE.

2 (A) IN ADDITION TO ANY OTHER REQUIREMENTS OF THIS ARTICLE, TO

3 QUALIFY FOR A VIDEO LOTTERY LICENSE, AN APPLICANT SHALL BE:

4 (1) A HOLDER OF A LICENSE FOR A TRACK FOR MILE THOROUGHBRED

5 RACING IN ANNE ARUNDEL COUNTY;

6 (2) A HOLDER OF A LICENSE FOR A TRACK FOR MILE THOROUGHBRED

7 RACING IN BALTIMORE CITY;

8 (3) A HOLDER OF A LICENSE FOR A RACETRACK FOR HARNESS RACING

9 IN PRINCE GEORGE'S COUNTY;

10 (4) IN THE EASTERN SHORE OF MARYLAND AND WESTERN MARYLAND, A

11 PERSON WHO MEETS THE ELIGIBILITY QUALIFICATIONS REQUIRED UNDER THIS

12 SECTION FOR THE ISSUANCE OF A VIDEO LOTTERY FACILITY LICENSE FOR A

13 TOURIST DESTINATION LOCATION IN THE STATE; OR

14 (5) A HOLDER OF A PERMIT IN EFFECT ON JANUARY 1, 1998, TO OPERATE

15 A SATELLITE SIMULCAST FACILITY UNDER TITLE 11, SUBTITLE 8 OF THE BUSINESS

16 REGULATION ARTICLE OF THE ANNOTATED CODE OF MARYLAND WHO MEETS THE

17 ELIGIBILITY QUALIFICATIONS REQUIRED UNDER THIS SECTION FOR THE ISSUANCE

18 OF A VIDEO LOTTERY FACILITY LICENSE FOR THE SATELLITE SIMULCAST FACILITY

19 LOCATION FOR WHICH THE APPLICANT HOLDS THE PERMIT TO CONDUCT SATELLITE

20 SIMULCAST BETTING.

21 (B) THE COMMISSION MAY NOT ISSUE:

22 (1) A VIDEO LOTTERY FACILITY LICENSE TO AN APPLICANT WHO IS THE

23 HOLDER OF A LICENSE FOR A TRACK DESCRIBED UNDER SUBSECTION (A) OF THIS

24 SECTION FOR A LOCATION OTHER THAN THE LOCATION OF THE TRACK FOR WHICH

25 THE APPLICANT HOLDS THE TRACK LICENSE;

26 (2) MORE THAN ONE VIDEO LOTTERY FACILITY LICENSE FOR EACH OF

27 THE FOLLOWING:

28 (I) A TOURIST DESTINATION LOCATION ON THE EASTERN SHORE

29 OF MARYLAND;

30 (II) A TOURIST DESTINATION LOCATION IN WESTERN MARYLAND;

31 AND

32 (III) EACH SATELLITE SIMULCAST FACILITY LOCATION;

33 (3) MORE THAN ONE VIDEO LOTTERY FACILITY LICENSE TO ANY

34 PERSON FOR THE OPERATION OF VIDEO LOTTERY TERMINALS AT A TOURIST

35 DESTINATION LOCATION, A SATELLITE SIMULCAST FACILITY LOCATION, OR BOTH;

36 AND


8 HOUSE BILL 678

1 (4) A VIDEO LOTTERY FACILITY LICENSE FOR ANY LOCATION ON STATE

2 PROPERTY.

3 (C) AN APPLICANT FOR A VIDEO LOTTERY FACILITY LICENSE FOR A TRACK

4 LOCATION DESCRIBED UNDER SUBSECTION (A) OF THIS SECTION SHALL MEET THE

5 FOLLOWING ELIGIBILITY REQUIREMENTS:

6 (1) THE CONSTRUCTION PROJECT AT THE TRACK LOCATION FOR THE

7 APPLICANT'S VIDEO LOTTERY AND OTHER FACILITIES SHALL COST AT LEAST $100

8 MILLION IN DIRECT INVESTMENT BY THE APPLICANT IN CONSTRUCTION AND

9 RELATED COSTS AT THE TRACK LOCATION;

10 (2) THE APPLICANT SHALL PROVIDE THE EQUIVALENT OF AT LEAST 500

11 ADDITIONAL FULL-TIME JOBS AT THE TRACK LOCATION FOR WHICH THE VIDEO

12 LOTTERY FACILITY LICENSE IS SOUGHT; AND

13 (3) FOR THE CONSTRUCTION OF FACILITIES AND PROCUREMENT

14 RELATED TO THE OPERATION OF VIDEO LOTTERY TERMINALS, THE APPLICANT

15 SHALL MEET THE SAME REQUIREMENTS OF A DESIGNATED UNIT FOR MINORITY

16 BUSINESS PARTICIPATION DESCRIBED UNDER TITLE 14, SUBTITLE 3 OF THE STATE

17 FINANCE AND PROCUREMENT ARTICLE OF THE ANNOTATED CODE OF MARYLAND.

18 (D) AN APPLICANT FOR A VIDEO LOTTERY FACILITY LICENSE FOR A TOURIST

19 DESTINATION LOCATION SHALL MEET THE FOLLOWING ELIGIBILITY

20 REQUIREMENTS:

21 (1) THE CONSTRUCTION PROJECT AT THE TOURIST DESTINATION

22 LOCATION FOR THE APPLICANT'S VIDEO LOTTERY AND OTHER FACILITIES SHALL

23 COST AT LEAST $100 MILLION IN DIRECT INVESTMENT BY THE APPLICANT IN

24 CONSTRUCTION AND OTHER RELATED COSTS AT THE TOURIST DESTINATION

25 LOCATION;

26 (2) THE APPLICANT SHALL PROVIDE THE EQUIVALENT OF AT LEAST 800

27 FULL-TIME JOBS AT THE TOURIST DESTINATION LOCATION FOR WHICH THE VIDEO

28 LOTTERY FACILITY LICENSE IS SOUGHT; AND

29 (3) FOR THE CONSTRUCTION OF FACILITIES AND PROCUREMENT

30 RELATED TO THE OPERATION OF VIDEO LOTTERY TERMINALS, THE APPLICANT

31 SHALL MEET THE SAME REQUIREMENTS OF A DESIGNATED UNIT FOR MINORITY

32 BUSINESS PARTICIPATION DESCRIBED UNDER TITLE 14, SUBTITLE 3 OF THE STATE

33 FINANCE AND PROCUREMENT ARTICLE OF THE ANNOTATED CODE OF MARYLAND.

34 (E) SUBJECT TO SUBSECTION (C) OF THIS SECTION, AN APPLICANT FOR A

35 VIDEO LOTTERY FACILITY LICENSE FOR A SATELLITE SIMULCAST FACILITY

36 LOCATION SHALL MEET THE FOLLOWING ELIGIBILITY REQUIREMENTS:

37 (1) THE CONSTRUCTION PROJECT AT THE LOCATION OF THE SATELLITE

38 SIMULCAST FACILITY FOR THE APPLICANT'S VIDEO LOTTERY AND OTHER FACILITIES

39 SHALL COST AT LEAST $10 MILLION IN DIRECT INVESTMENT BY THE APPLICANT IN


9 HOUSE BILL 678

1 CONSTRUCTION AND OTHER RELATED COSTS AT THE LOCATION OF THE SATELLITE

2 SIMULCAST FACILITY;

3 (2) THE APPLICANT SHALL PROVIDE THE EQUIVALENT OF AT LEAST 200

4 ADDITIONAL FULL-TIME JOBS AT THE SATELLITE FACILITY LOCATION FOR WHICH

5 THE VIDEO LOTTERY FACILITY LICENSE IS SOUGHT; AND

6 (3) FOR THE CONSTRUCTION OF FACILITIES AND PROCUREMENT

7 RELATED TO THE OPERATION OF VIDEO LOTTERY TERMINALS, THE APPLICANT

8 SHALL MEET THE SAME REQUIREMENTS OF A DESIGNATED UNIT FOR MINORITY

9 BUSINESS PARTICIPATION DESCRIBED UNDER TITLE 14, SUBTITLE 3 OF THE STATE

10 FINANCE AND PROCUREMENT ARTICLE OF THE ANNOTATED CODE OF MARYLAND.

11 5. DUTIES OF APPLICANTS AND LICENSEES; DISQUALIFICATION CRITERIA; OTHER

12 REQUIREMENTS.

13 (A) AN APPLICANT FOR A LICENSE SHALL SUBMIT TO THE CHAIRMAN OF THE

14 COMMISSION AN APPLICATION:

15 (1) IN THE FORM THAT THE COMMISSION REQUIRES; AND

16 (2) ON OR BEFORE THE DATE SET BY THE COMMISSION.

17 (B) (1) AN APPLICANT OR LICENSEE SHALL HAVE THE AFFIRMATIVE

18 RESPONSIBILITY TO ESTABLISH BY CLEAR AND CONVINCING EVIDENCE THE

19 PERSON'S QUALIFICATIONS.

20 (2) AN APPLICANT OR LICENSEE SHALL PROVIDE INFORMATION

21 REQUIRED BY THIS ARTICLE AND SATISFY REQUESTS FOR INFORMATION RELATING

22 TO QUALIFICATIONS IN THE FORM SPECIFIED BY THE COMMISSION.

23 (3) AN APPLICANT OR LICENSEE SHALL CONSENT TO INSPECTIONS,

24 SEARCHES, AND SEIZURES AUTHORIZED BY THIS ARTICLE OR REGULATIONS ISSUED

25 UNDER THIS ARTICLE.

26 (4) (I) AN APPLICANT OR LICENSEE SHALL HAVE THE CONTINUING

27 DUTY TO:

28 1. PROVIDE ASSISTANCE OR INFORMATION REQUIRED BY

29 THE COMMISSION; AND

30 2. COOPERATE IN AN INQUIRY, INVESTIGATION, OR

31 HEARING CONDUCTED BY THE COMMISSION.

32 (II) ON ISSUANCE OF A FORMAL REQUEST TO ANSWER OR

33 PRODUCE INFORMATION, EVIDENCE, OR TESTIMONY, IF AN APPLICANT OR LICENSEE

34 REFUSES TO COMPLY, THE APPLICATION OR LICENSE OF THE PERSON MAY BE

35 DENIED, SUSPENDED, OR REVOKED BY THE COMMISSION.


10 HOUSE BILL 678

1 (5) AN APPLICANT SHALL BE PHOTOGRAPHED AND FINGERPRINTED

2 FOR IDENTIFICATION AND INVESTIGATION PURPOSES UNDER PROCEDURES

3 ESTABLISHED IN REGULATIONS THAT SHALL BE ISSUED BY THE COMMISSION.

4 (6) (I) AN APPLICANT OR LICENSEE SHALL HAVE A DUTY TO INFORM

5 THE COMMISSION OF AN ACT OR OMISSION THAT THE PERSON BELIEVES

6 CONSTITUTES A VIOLATION OF THIS ARTICLE OR THE REGULATIONS ISSUED UNDER

7 THIS ARTICLE.

8 (II) AN APPLICANT OR LICENSEE MAY NOT DISCRIMINATE AGAINST

9 A PERSON WHO INFORMS THE COMMISSION OF AN ACT OR OMISSION THAT THE

10 PERSON BELIEVES CONSTITUTES A VIOLATION OF THIS ARTICLE OR THE

11 REGULATIONS ISSUED UNDER THIS ARTICLE.

12 (7) AN APPLICANT OR LICENSEE SHALL PRODUCE INFORMATION,

13 DOCUMENTATION, AND ASSURANCES TO ESTABLISH THE FOLLOWING

14 QUALIFICATION CRITERIA BY CLEAR AND CONVINCING EVIDENCE:

15 (I) THE FINANCIAL STABILITY, INTEGRITY, AND RESPONSIBILITY

16 OF THE APPLICANT OR LICENSEE;

17 (II) THE INTEGRITY OF THE FINANCIAL BACKERS, INVESTORS,

18 MORTGAGEES, BONDHOLDERS, AND HOLDERS OF OTHER EVIDENCES OF

19 INDEBTEDNESS THAT BEAR A RELATION TO THE APPLICATION;

20 (III) THE APPLICANT'S OR LICENSEE'S GOOD CHARACTER, HONESTY,

21 AND INTEGRITY;

22 (IV) SUFFICIENT BUSINESS ABILITY AND EXPERIENCE OF THE

23 APPLICANT OR LICENSEE;

24 (V) THE SUITABILITY OF THE VIDEO LOTTERY FACILITY AND ITS

25 LOCATION; AND

26 (VI) THE GOOD FAITH EFFORTS OF THE APPLICANT OR LICENSEE

27 TO PROVIDE FOR OWNERSHIP WITH INDICATION OF PERCENTAGE AND TYPE, SUCH

28 AS EQUITY PARTNER OR SPECIFIC PERCENTAGE SHAREHOLDER, BY MINORITY

29 INDIVIDUALS, WOMEN, AND BUSINESS ENTITIES OWNED BY MINORITY INDIVIDUALS

30 OR BY WOMEN.

31 (8) IN ADDITION TO OTHER INFORMATION REQUIRED BY THIS ARTICLE,

32 A CORPORATION APPLYING FOR A VIDEO LOTTERY FACILITY LICENSE SHALL

33 PROVIDE THE FOLLOWING INFORMATION:

34 (I) THE ORGANIZATION, FINANCIAL STRUCTURE, AND NATURE OF

35 ALL BUSINESSES OPERATED BY THE CORPORATION;

36 (II) THE NAMES, PERSONAL EMPLOYMENT, AND CRIMINAL

37 HISTORIES OF OFFICERS, DIRECTORS, AND PRINCIPAL EMPLOYEES OF THE

38 CORPORATION;


11 HOUSE BILL 678

1 (III) THE NAMES OF ALL HOLDING, INTERMEDIARY, AND

2 SUBSIDIARY COMPANIES OF THE CORPORATION;

3 (IV) THE ORGANIZATION, FINANCIAL STRUCTURE, AND NATURE OF

4 ALL BUSINESSES OPERATED BY THE CORPORATION'S HOLDING, INTERMEDIARY, AND

5 SUBSIDIARY COMPANIES;

6 (V) THE RIGHTS AND PRIVILEGES ACQUIRED BY THE HOLDERS OF

7 DIFFERENT CLASSES OF AUTHORIZED SECURITIES OF THE CORPORATION AND ITS

8 HOLDING, INTERMEDIARY, AND SUBSIDIARY COMPANIES;

9 (VI) THE TERMS ON WHICH THE SECURITIES HAVE BEEN OR ARE TO

10 BE OFFERED;

11 (VII) THE TERMS AND CONDITIONS OF ALL OUTSTANDING LOANS,

12 MORTGAGES, TRUST DEEDS, PLEDGES, OR OTHER INDEBTEDNESS OR SECURITY

13 DEVICES UTILIZED BY THE CORPORATION;

14 (VIII) THE EXTENT OF THE EQUITY SECURITY HOLDING IN THE

15 CORPORATION OF THE OFFICERS, DIRECTORS, AND UNDERWRITERS AND THEIR

16 REMUNERATION IN THE FORM OF SALARY, WAGES, FEES, OR OTHERWISE;

17 (IX) THE NAMES OF PERSONS OTHER THAN DIRECTORS AND

18 OFFICERS WHO OCCUPY POSITIONS SPECIFIED BY THE COMMISSION OR WHOSE

19 COMPENSATION EXCEEDS AN AMOUNT DETERMINED BY THE COMMISSION;

20 (X) THE NAMES OF PERSONS WHO OWN OR CONTROL THE

21 CORPORATION;

22 (XI) A DESCRIPTION OF ALL BONUS AND PROFIT-SHARING

23 ARRANGEMENTS;

24 (XII) COPIES OF MANAGEMENT AND SERVICE CONTRACTS; AND

25 (XIII) A LISTING OF STOCK OPTIONS.

26 (9) IF A CORPORATION THAT APPLIES FOR A VIDEO LOTTERY FACILITY

27 LICENSE IS, OR IF A CORPORATION HOLDING A VIDEO LOTTERY FACILITY LICENSE IS

28 TO BECOME, A SUBSIDIARY, EACH HOLDING COMPANY AND EACH INTERMEDIARY

29 COMPANY WITH RESPECT TO THE CORPORATION SHALL, AS A CONDITION OF THE

30 SUBSIDIARY ACQUIRING OR RETAINING A VIDEO LOTTERY FACILITY LICENSE:

31 (I) QUALIFY TO DO BUSINESS IN THE STATE OF MARYLAND;

32 (II) IF IT IS A CORPORATION, FURNISH THE COMMISSION WITH THE

33 INFORMATION REQUIRED OF A CORPORATE APPLICANT SPECIFIED IN PARAGRAPH (8)

34 OF THIS SUBSECTION AND OTHER INFORMATION THAT THE COMMISSION MAY

35 REQUIRE; OR


12 HOUSE BILL 678

1 (III) IF IT IS NOT A CORPORATION, FURNISH THE COMMISSION WITH

2 THE INFORMATION THE COMMISSION MAY REQUIRE.

3 (10) A NONCORPORATE APPLICANT FOR A VIDEO LOTTERY FACILITY

4 LICENSE SHALL PROVIDE THE INFORMATION REQUIRED UNDER PARAGRAPH (8) OF

5 THIS SUBSECTION IN THE FORM REQUIRED BY THE COMMISSION.

6 (11) THE COMMISSION SHALL DENY A VIDEO LOTTERY FACILITY LICENSE

7 TO AN APPLICANT WHO IS DISQUALIFIED ON THE BASIS OF ANY OF THE FOLLOWING

8 CRITERIA:

9 (I) FAILURE OF THE APPLICANT TO PROVE BY CLEAR AND

10 CONVINCING EVIDENCE THAT THE APPLICANT AND EACH PERSON WHO OWNS OR

11 CONTROLS THE APPLICANT ARE QUALIFIED UNDER THE PROVISIONS OF THIS

12 ARTICLE;

13 (II) FAILURE OF THE APPLICANT OR ANY PERSON REQUIRED TO BE

14 QUALIFIED UNDER THIS ARTICLE AS A CONDITION OF A LICENSE TO PROVIDE

15 INFORMATION, DOCUMENTATION, AND ASSURANCES REQUIRED BY THIS ARTICLE OR

16 REQUESTED BY THE COMMISSION;

17 (III) FAILURE OF THE APPLICANT OR ANY PERSON REQUIRED TO BE

18 QUALIFIED UNDER THIS ARTICLE AS A CONDITION OF A LICENSE TO REVEAL ANY

19 FACT MATERIAL TO QUALIFICATION;

20 (IV) SUPPLYING, BY THE APPLICANT OR ANY PERSON REQUIRED TO

21 BE QUALIFIED UNDER THIS ARTICLE AS A CONDITION OF A LICENSE, OF

22 INFORMATION THAT IS UNTRUE OR MISLEADING AS TO A MATERIAL FACT

23 CONCERNING THE QUALIFICATION CRITERIA;

24 (V) THE CONVICTION OF THE APPLICANT OR OF ANY PERSON

25 REQUIRED TO BE QUALIFIED UNDER THIS ARTICLE AS A CONDITION OF A LICENSE

26 OF AN OFFENSE UNDER THE LAWS OF THE UNITED STATES OR ANY JURISDICTION

27 WITHIN THE UNITED STATES THAT IS A CRIMINAL OFFENSE INVOLVING MORAL

28 TURPITUDE OR A GAMBLING OFFENSE;

29 (VI) CURRENT PROSECUTION OF THE APPLICANT OR A PERSON

30 WHO IS REQUIRED TO BE QUALIFIED UNDER THIS ARTICLE AS A CONDITION OF A

31 LICENSE FOR AN OFFENSE DESCRIBED UNDER ITEM (V) OF THIS PARAGRAPH;

32 HOWEVER, AT THE REQUEST OF THE APPLICANT, THE COMMISSION SHALL DEFER

33 DECISION ON THE APPLICATION DURING THE PENDENCY OF THE CHARGE;

34 (VII) THE PURSUIT BY THE APPLICANT OR A PERSON WHO IS

35 REQUIRED TO BE QUALIFIED UNDER THIS ARTICLE AS A CONDITION OF A LICENSE

36 OF ECONOMIC GAIN IN AN OCCUPATIONAL MANNER OR CONTEXT THAT IS IN

37 VIOLATION OF THE CRIMINAL OR CIVIL PUBLIC POLICIES OF THE STATE, IF THE

38 PURSUIT CREATES A REASONABLE BELIEF THAT PARTICIPATION OF THE APPLICANT

39 IN VIDEO LOTTERY OPERATIONS WOULD BE INIMICAL TO THE POLICIES OF THIS

40 ARTICLE;


13 HOUSE BILL 678

1 (VIII) THE IDENTIFICATION OF THE APPLICANT OR A PERSON WHO

2 IS REQUIRED TO BE QUALIFIED UNDER THIS ARTICLE AS A CONDITION OF A LICENSE

3 AS A CAREER OFFENDER OR A MEMBER OF A CAREER OFFENDER CARTEL OR AN

4 ASSOCIATE OF A CAREER OFFENDER OR CAREER OFFENDER CARTEL IN A MANNER

5 THAT CREATES A REASONABLE BELIEF THAT THE ASSOCIATION IS OF A NATURE AS

6 TO BE INIMICAL TO THE POLICIES OF THIS ARTICLE;

7 (IX) THE COMMITTING OF AN ACT BY THE APPLICANT OR A PERSON

8 WHO IS REQUIRED TO BE QUALIFIED UNDER THIS ARTICLE AS A CONDITION OF A

9 LICENSE THAT WOULD CONSTITUTE AN OFFENSE DESCRIBED UNDER ITEM (V) OF

10 THIS PARAGRAPH, EVEN IF THE ACT HAS NOT OR MAY NOT BE PROSECUTED UNDER

11 THE CRIMINAL LAWS OF THE STATE; AND

12 (X) CONTUMACIOUS DEFIANCE BY THE APPLICANT OR A PERSON

13 WHO IS REQUIRED TO BE QUALIFIED UNDER THIS ARTICLE AS A CONDITION OF A

14 LICENSE OF A LEGISLATIVE INVESTIGATORY BODY OR OTHER OFFICIAL

15 INVESTIGATORY BODY OF THE UNITED STATES OR A JURISDICTION WITHIN THE

16 UNITED STATES WHEN THE BODY IS ENGAGED IN THE INVESTIGATION OF CRIMES

17 RELATING TO GAMBLING, OFFICIAL CORRUPTION, OR ORGANIZED CRIME ACTIVITY.

18 (C) (1) ON THE FILING OF AN APPLICATION FOR ANY LICENSE REQUIRED

19 UNDER THIS ARTICLE AND ANY SUPPLEMENTAL INFORMATION REQUIRED BY THE

20 COMMISSION, THE COMMISSION SHALL CONDUCT A BACKGROUND INVESTIGATION

21 AND A HEARING ON THE QUALIFICATIONS OF THE APPLICANT AND ANY PERSON

22 WHO IS REQUIRED TO BE QUALIFIED UNDER THIS ARTICLE AS A CONDITION OF A

23 LICENSE.

24 (2) AFTER THE INVESTIGATION AND HEARING, THE COMMISSION MAY

25 EITHER GRANT A LICENSE TO AN APPLICANT WHOM THE COMMISSION DETERMINES

26 TO BE QUALIFIED OR DENY THE APPLICATION TO AN APPLICANT WHOM THE

27 COMMISSION DETERMINES TO BE NOT QUALIFIED OR DISQUALIFIED.

28 (3) IF MORE THAN ONE APPLICANT IS QUALIFIED FOR A LICENSE, THE

29 COMMISSION SHALL:

30 (I) GRANT A LICENSE TO THE APPLICANT THAT THE COMMISSION

31 DETERMINES IS LIKELY TO PROVIDE THE GREATEST BENEFIT TO THE STATE AND

32 THE COUNTY IN WHICH THE LICENSEE IS TO BE LOCATED; AND

33 (II) DENY A LICENSE TO ANY OTHER APPLICANT FOR THAT

34 LICENSE.

35 (4) IF AN APPLICATION IS DENIED, THE COMMISSION SHALL PREPARE

36 AND FILE AN ORDER DENYING THE APPLICATION WITH A STATEMENT OF THE

37 REASONS FOR THE DENIAL, INCLUDING THE SPECIFIC FINDINGS OF FACT.

38 (5) IF SATISFIED THAT AN APPLICANT IS QUALIFIED TO RECEIVE A

39 LICENSE, AND ON TENDER OF ALL REQUIRED APPLICATION, LICENSE, AND OTHER

40 FEES AND TAXES, AND ANY BONDS AS THE COMMISSION MAY REQUIRE FOR THE

41 FAITHFUL PERFORMANCE OF THE REQUIREMENTS IMPOSED BY THIS ARTICLE, ANY


14 HOUSE BILL 678

1 STATUTE, AND THE REGULATIONS ISSUED UNDER THIS ARTICLE, THE COMMISSION

2 SHALL ISSUE A LICENSE FOR A TERM OF 1 YEAR.

3 (6) (I) THE COMMISSION SHALL SET, BY REGULATION, THE AMOUNT

4 OF THE BOND OR BONDS TO BE REQUIRED UNDER THIS SUBSECTION IN THE

5 AMOUNTS THE COMMISSION MAY DEEM APPROPRIATE.

6 (II) THE BONDS FURNISHED MAY BE APPLIED BY THE COMMISSION

7 TO THE PAYMENT OF AN UNPAID LIABILITY OF THE LICENSEE.

8 (7) SUBJECT TO THE POWER OF THE COMMISSION TO DENY, REVOKE, OR

9 SUSPEND A LICENSE, A LICENSE IN FORCE SHALL BE RENEWED BY THE COMMISSION

10 FOR THE NEXT SUCCEEDING LICENSE PERIOD ON:

11 (I) PROPER APPLICATION FOR RENEWAL; AND

12 (II) PAYMENT OF ALL REQUIRED APPLICATION, LICENSE, AND

13 OTHER FEES AND TAXES.

14 (D) (1) ON THE REQUEST OF AN APPLICANT FOR A LICENSE, THE

15 COMMISSION MAY GRANT AN EXEMPTION OR WAIVER OF ANY REQUIREMENT UNDER

16 SUBSECTION (B) OR SUBSECTION (C) OF THIS SECTION IF THE COMMISSION

17 CONSIDERS THAT THE REQUIREMENT IS NOT NECESSARY IN ORDER TO PROTECT

18 THE PUBLIC INTEREST OR ACCOMPLISH THE POLICIES ESTABLISHED BY THIS

19 ARTICLE.

20 (2) ON GRANTING TO AN APPLICANT AN EXEMPTION OR WAIVER OF A

21 REQUIREMENT OF SUBSECTION (B) OR (C) OF THIS SECTION, OR AT ANY TIME AFTER

22 AN EXEMPTION OR WAIVER IS GRANTED, THE COMMISSION:

23 (I) MAY LIMIT OR PLACE RESTRICTIONS ON THE EXEMPTION OR

24 WAIVER AS THE COMMISSION DEEMS NECESSARY IN THE PUBLIC INTEREST; AND

25 (II) SHALL REQUIRE THE PERSON WHO IS GRANTED THE

26 EXEMPTION OR WAIVER TO COOPERATE WITH THE COMMISSION AND, ON REQUEST,

27 TO PROVIDE INFORMATION IN THE SAME MANNER AS REQUIRED OF A LICENSED

28 VIDEO LOTTERY FACILITY UNDER THIS ARTICLE.

29 (E) (1) BECAUSE THE PUBLIC HAS A VITAL INTEREST IN VIDEO LOTTERY

30 OPERATIONS AND HAS ESTABLISHED A LIMITED EXCEPTION TO THE POLICY OF THE

31 STATE CONCERNING GAMING FOR PRIVATE GAIN, PARTICIPATION IN VIDEO LOTTERY

32 OPERATIONS BY A LICENSEE UNDER THIS ARTICLE SHALL BE DEEMED A REVOCABLE

33 PRIVILEGE CONDITIONED ON THE PROPER AND CONTINUED QUALIFICATION OF THE

34 LICENSEE AND ON THE DISCHARGE OF THE AFFIRMATIVE RESPONSIBILITY OF EACH

35 LICENSEE TO PROVIDE TO THE REGULATORY AND INVESTIGATORY AUTHORITIES

36 UNDER THIS ARTICLE OR ANY OTHER PROVISION OF LAW, ANY ASSISTANCE AND

37 INFORMATION NECESSARY TO ASSURE THAT THE POLICIES DECLARED BY THIS

38 ARTICLE ARE ACHIEVED.


15 HOUSE BILL 678

1 (2) CONSISTENT WITH THE POLICY DESCRIBED IN PARAGRAPH (1) OF

2 THIS SUBSECTION, IT IS THE INTENT OF THIS SUBSECTION TO:

3 (I) PRECLUDE:

4 1. THE CREATION OF ANY PROPERTY RIGHT IN ANY LICENSE

5 REQUIRED UNDER THIS ARTICLE;

6 2. THE ACCRUAL OF ANY VALUE TO THE PRIVILEGE OF

7 PARTICIPATION IN VIDEO LOTTERY OPERATIONS; AND

8 3. THE TRANSFER OF ANY LICENSE ISSUED UNDER THIS

9 ARTICLE; AND

10 (II) REQUIRE THAT PARTICIPATION IN VIDEO LOTTERY

11 OPERATIONS BE CONDITIONED SOLELY ON THE INDIVIDUAL QUALIFICATIONS OF

12 THE PERSON WHO SEEKS THE PRIVILEGE.

13 (F) IF THE COMMISSION ISSUES A VIDEO LOTTERY FACILITY LICENSE TO AN

14 APPLICANT FOR A TOURIST DESTINATION LOCATION, THE STATE RACING

15 COMMISSION SHALL ISSUE TO THE PERSON A PERMIT TO CONDUCT SATELLITE

16 SIMULCAST BETTING AT THE TOURIST DESTINATION LOCATION.

17 (G) (1) EACH VIDEO LOTTERY TERMINAL DEVICE, ASSOCIATED EQUIPMENT,

18 AND THE CENTRAL COMPUTER SHALL BE:

19 (I) OWNED OR LEASED BY THE COMMISSION; AND

20 (II) UNDER THE CONTROL OF THE COMMISSION.

21 (2) A VIDEO LOTTERY FACILITY LICENSEE AT A TRACK FACILITY

22 LOCATION OR A TOURIST DESTINATION LOCATION MAY NOT OPERATE MORE THAN

23 2,000 VIDEO LOTTERY TERMINALS.

24 (3) A VIDEO LOTTERY FACILITY LICENSEE AT A SATELLITE SIMULCAST

25 FACILITY THAT IS NOT A TOURIST DESTINATION LOCATION MAY NOT OPERATE MORE

26 THAN 250 VIDEO LOTTERY TERMINALS.

27 (H) (1) UNLESS A PERSON HOLDS A VALID VIDEO LOTTERY OPERATOR

28 LICENSE ISSUED BY THE COMMISSION, THE PERSON MAY NOT ENTER INTO A

29 MANAGEMENT AGREEMENT, OR ANY OTHER BUSINESS RELATIONSHIP, WITH A

30 VIDEO LOTTERY FACILITY LICENSEE OR APPLICANT FOR THE OPERATION OR THE

31 MANAGEMENT OF THE LICENSEE'S OR APPLICANT'S VIDEO LOTTERY FACILITY OR TO

32 SHARE IN THE PROCEEDS FROM THE LICENSEE'S OR APPLICANT'S VIDEO LOTTERY

33 FACILITY.

34 (2) EACH VIDEO LOTTERY OPERATOR AND EACH OTHER PERSON WHO

35 OWNS OR CONTROLS THE VIDEO LOTTERY OPERATOR, MANAGEMENT AND

36 SUPERVISORY PERSONNEL, AND OTHER PRINCIPAL EMPLOYEES SHALL QUALIFY


16 HOUSE BILL 678

1 UNDER THE STANDARDS AND PROVISIONS SET FORTH IN SUBSECTIONS (B) AND (C)

2 OF THIS SECTION FOR LICENSEES.

3 (3) THE COMMISSION MAY NOT GRANT AN EXEMPTION OR WAIVER OF

4 ANY LICENSING REQUIREMENT TO AN APPLICANT FOR OR HOLDER OF A VIDEO

5 LOTTERY OPERATOR LICENSE.

6 (4) A VIDEO LOTTERY FACILITY LICENSEE OR APPLICANT SHALL FILE

7 WITH THE COMMISSION ANY CURRENT OR PROPOSED OPERATION OR MANAGEMENT

8 AGREEMENT WITH ANY PERSON, WHICH AGREEMENT SHALL BE SUBJECT TO

9 APPROVAL BY THE COMMISSION.

10 (5) A LICENSED VIDEO LOTTERY OPERATOR MAY NOT ENTER INTO AN

11 AGREEMENT DESCRIBED UNDER THIS SUBSECTION WITH MORE THAN ONE VIDEO

12 LOTTERY FACILITY LICENSEE.

13 (I) (1) UNLESS A PERSON HOLDS A VALID VIDEO LOTTERY EMPLOYEE

14 LICENSE ISSUED BY THE COMMISSION, THE PERSON MAY NOT BE EMPLOYED BY A

15 LICENSEE AS A VIDEO LOTTERY EMPLOYEE.

16 (2) UNLESS A PERSON HOLDS A VALID SERVICE TECHNICIAN LICENSE

17 ISSUED BY THE COMMISSION, THE PERSON MAY NOT PROVIDE SERVICE AS A

18 SERVICE TECHNICIAN.

19 (3) BEFORE ISSUANCE OF A LICENSE, AN APPLICANT FOR A VIDEO

20 LOTTERY EMPLOYEE LICENSE OR SERVICE TECHNICIAN LICENSE SHALL PROVIDE

21 SUFFICIENT INFORMATION, DOCUMENTATION, AND ASSURANCES TO MEET THE

22 QUALIFICATION CRITERIA CONTAINED IN REGULATIONS THAT SHALL BE ISSUED BY

23 THE COMMISSION.

24 (4) THE COMMISSION SHALL DENY A VIDEO LOTTERY EMPLOYEE

25 LICENSE OR SERVICE TECHNICIAN LICENSE TO AN APPLICANT WHO IS

26 DISQUALIFIED ON THE BASIS OF CRITERIA AND PROCEDURES CONTAINED IN

27 REGULATIONS THAT SHALL BE ISSUED BY THE COMMISSION.

28 (J) (1) UNLESS A MANUFACTURER HOLDS A VALID MANUFACTURER

29 LICENSE ISSUED BY THE COMMISSION BEFORE CONDUCTING BUSINESS WITH A

30 LICENSEE OR THE STATE, THE MANUFACTURER MAY NOT OFFER ANY VIDEO

31 LOTTERY TERMINAL, ASSOCIATED EQUIPMENT, CENTRAL COMPUTER, OR GOODS OR

32 SERVICES THAT DIRECTLY RELATE TO THE OPERATION OF VIDEO LOTTERY

33 TERMINALS.

34 (2) EACH MANUFACTURER, AND EACH PERSON WHO OWNS OR

35 CONTROLS THE MANUFACTURER, MANAGEMENT AND SUPERVISORY PERSONNEL,

36 AND OTHER PRINCIPAL EMPLOYEES SHALL QUALIFY UNDER THE STANDARDS AND

37 PROVISIONS SET FORTH IN SUBSECTIONS (B) AND (C) OF THIS SECTION FOR

38 LICENSEES.


17 HOUSE BILL 678

1 (3) THE COMMISSION MAY NOT GRANT AN EXEMPTION OR WAIVER OF

2 ANY LICENSING REQUIREMENT TO AN APPLICANT FOR OR HOLDER OF A

3 MANUFACTURER LICENSE.

4 (4) A MANUFACTURER OF THE VIDEO LOTTERY TERMINALS,

5 ASSOCIATED EQUIPMENT, AND CENTRAL COMPUTER SHALL MANUFACTURE OR

6 DISTRIBUTE THE VIDEO LOTTERY TERMINALS, ASSOCIATED EQUIPMENT, AND

7 CENTRAL COMPUTER THAT MEET SPECIFICATIONS AND PROCEDURES CONTAINED

8 IN REGULATIONS THAT SHALL BE ISSUED BY THE COMMISSION.

9 (K) (1) THE COMMISSION SHALL CONTRACT WITH ONE OR MORE LICENSED

10 MANUFACTURERS FOR THE LEASE OR PURCHASE OF THE VIDEO LOTTERY

11 TERMINALS, ASSOCIATED EQUIPMENT, AND CENTRAL COMPUTER AUTHORIZED

12 UNDER THIS ARTICLE.

13 (2) THE COMMISSION SHALL COMPLY WITH THE REQUIREMENTS OF

14 THE STATE FINANCE AND PROCUREMENT ARTICLE OF THE ANNOTATED CODE OF

15 MARYLAND, INCLUDING REQUIREMENTS FOR COMPETITIVE BIDS FOR

16 PROCUREMENT CONTRACTS.

17 6. LICENSE SANCTIONS AND PENALTIES.

18 (A) THE COMMISSION MAY DENY A LICENSE TO AN APPLICANT, REPRIMAND

19 OR FINE A LICENSEE, OR SUSPEND OR REVOKE A LICENSE FOR A VIOLATION OF:

20 (1) THIS ARTICLE;

21 (2) A REGULATION ADOPTED UNDER THIS ARTICLE;

22 (3) A STATUTE ENACTED PURSUANT TO THIS ARTICLE; OR

23 (4) A CONDITION THAT THE COMMISSION SETS.

24 (B) (1) FOR EACH VIOLATION SPECIFIED IN SUBSECTION (A) OF THIS

25 SECTION, THE COMMISSION MAY IMPOSE A PENALTY NOT EXCEEDING $5,000

26 PAYABLE TO THE EDUCATION TRUST FUND ESTABLISHED UNDER § 9 OF THIS

27 ARTICLE.

28 (2) EACH DAY THAT A PERSON IS IN VIOLATION UNDER THIS SECTION

29 SHALL BE CONSIDERED A SEPARATE VIOLATION.

30 (3) TO DETERMINE THE AMOUNT OF THE PENALTY IMPOSED UNDER

31 PARAGRAPH (1) OF THIS SUBSECTION, THE COMMISSION SHALL CONSIDER:

32 (I) THE SERIOUSNESS OF THE VIOLATION;

33 (II) THE HARM CAUSED BY THE VIOLATION; AND

34 (III) THE GOOD FAITH OR LACK OF GOOD FAITH OF THE PERSON

35 WHO COMMITTED THE VIOLATION.


18 HOUSE BILL 678

1 (C) EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS ARTICLE,

2 NOTHING CONTAINED IN THIS ARTICLE ABROGATES OR LIMITS THE CRIMINAL LAWS

3 OF THIS STATE OR LIMITS THE AUTHORITY OF THE GENERAL ASSEMBLY TO ENACT

4 STATUTES ESTABLISHING CRIMINAL OFFENSES AND PENALTIES RELATING TO

5 VIDEO LOTTERY OPERATIONS.

6 7. POWERS AND DUTIES OF COMMISSION.

7 (A) THE COMMISSION SHALL:

8 (1) HEAR AND DECIDE PROMPTLY AND IN REASONABLE ORDER LICENSE

9 APPLICATIONS AND CAUSES AFFECTING THE GRANTING, SUSPENSION, REVOCATION,

10 OR RENEWAL OF LICENSES UNDER THIS ARTICLE;

11 (2) CONDUCT HEARINGS CONCERNING CIVIL VIOLATIONS OF THIS

12 ARTICLE OR REGULATIONS ISSUED UNDER THIS ARTICLE;

13 (3) ISSUE REGULATIONS AS IN ITS JUDGMENT MAY BE NECESSARY TO

14 FULFILL THE POLICIES OF THIS ARTICLE;

15 (4) ESTABLISH AND COLLECT APPLICATION, LICENSE, AND OTHER FEES

16 TO COVER THE COSTS OF ADMINISTERING THIS ARTICLE, EXCEPT THE COSTS

17 DESCRIBED UNDER § 8(B)(1)(I) AND (II) OF THIS ARTICLE;

18 (5) APPLY APPLICATION, LICENSE, AND OTHER FEES TO COVER THE

19 COSTS OF ADMINISTERING THIS ARTICLE, EXCEPT THE COSTS DESCRIBED UNDER §

20 8(B)(1)(I) AND (II) OF THIS ARTICLE;

21 (6) ESTABLISH AN ANNUAL FEE, TO BE PAID BY EACH VIDEO LOTTERY

22 LICENSEE AND DISTRIBUTED BY THE COMMISSION TO THE COMPULSIVE GAMBLING

23 FUND ESTABLISHED UNDER § 13 OF THIS ARTICLE, OF $350 FOR EACH VIDEO

24 LOTTERY TERMINAL OPERATED BY THE LICENSEE DURING THE YEAR;

25 (7) LEVY AND COLLECT CIVIL PENALTIES THAT SHALL BE PAID TO THE

26 EDUCATION TRUST FUND ESTABLISHED UNDER § 9 OF THIS ARTICLE FOR CIVIL

27 VIOLATIONS OF THE PROVISIONS OF THIS ARTICLE, REGULATIONS ISSUED UNDER

28 THIS ARTICLE, OR ANY STATUTE ENACTED PURSUANT TO THIS ARTICLE;

29 (8) BE PRESENT AT A VIDEO LOTTERY FACILITY THROUGH ITS

30 EMPLOYEES AND AGENTS AT ANY TIME DURING THE OPERATION OF ANY VIDEO

31 LOTTERY TERMINAL FOR THE PURPOSE OF CERTIFYING REVENUE FROM THE VIDEO

32 LOTTERY TERMINALS, RECEIVING COMPLAINTS FROM THE PUBLIC, AND

33 CONDUCTING ANY OTHER INVESTIGATION INTO THE OPERATION OF THE VIDEO

34 LOTTERY TERMINALS AND THE MAINTENANCE OF THE VIDEO LOTTERY TERMINALS

35 AND ASSOCIATED EQUIPMENT AS THE COMMISSION MAY DEEM NECESSARY AND

36 PROPER; AND

37 (9) REVIEW AND RULE ON ANY COMPLAINT BY A LICENSEE REGARDING

38 ANY INVESTIGATIVE PROCEDURES OF THE COMMISSION THAT ARE UNNECESSARILY

39 DISRUPTIVE OF VIDEO LOTTERY OPERATIONS.


19 HOUSE BILL 678

1 (B) (1) THE COMMISSION'S NEED TO INSPECT AND INVESTIGATE SHALL BE

2 PRESUMED AT ALL TIMES.

3 (2) THE DISRUPTION OF A LICENSEE'S VIDEO LOTTERY OPERATIONS

4 SHALL BE PROVED BY CLEAR AND CONVINCING EVIDENCE, AND ESTABLISH THAT:

5 (I) THE PROCEDURES HAD NO REASONABLE LAW ENFORCEMENT

6 PURPOSE; AND

7 (II) THE PROCEDURES WERE SO DISRUPTIVE AS TO INHIBIT THE

8 LICENSEE'S VIDEO LOTTERY OPERATIONS.

9 (C) THE COMMISSION SHALL HAVE THE AUTHORITY TO:

10 (1) ISSUE SUBPOENAS AND TO COMPEL THE ATTENDANCE OF

11 WITNESSES AT ANY PLACE WITHIN THE STATE;

12 (2) ADMINISTER OATHS AND TO REQUIRE TESTIMONY UNDER OATH

13 BEFORE THE COMMISSION IN THE COURSE OF ANY INVESTIGATION OR HEARING

14 CONDUCTED UNDER THIS ARTICLE;

15 (3) SERVE OR CAUSE TO BE SERVED ITS PROCESS OR NOTICES IN A

16 MANNER PROVIDED FOR SERVICE OF PROCESS IN CIVIL ACTIONS UNDER THE

17 MARYLAND RULES; AND

18 (4) PROPOUND WRITTEN INTERROGATORIES.

19 (D) EXCEPT AS OTHERWISE PROVIDED IN THIS ARTICLE, THE COMMISSION

20 SHALL CONDUCT A HEARING IN THE SAME MANNER AS SPECIFIED IN TITLE 10,

21 SUBTITLE 2 OF THE STATE GOVERNMENT ARTICLE OF THE ANNOTATED CODE OF

22 MARYLAND.

23 (E) THE COMMISSION SHALL ADOPT REGULATIONS THAT INCLUDE THE

24 FOLLOWING SPECIFIC PROVISIONS IN ACCORDANCE WITH THIS ARTICLE:

25 (1) REQUIRING THE METHODS AND FORMS OF APPLICATION THAT AN

26 APPLICANT FOR ANY LICENSE REQUIRED UNDER THIS ARTICLE SHALL FOLLOW AND

27 COMPLETE BEFORE CONSIDERATION OF THE APPLICATION BY THE COMMISSION;

28 (2) REQUIRING THE METHODS, PROCEDURES, AND FORM FOR DELIVERY

29 OF INFORMATION FROM AN APPLICANT OR LICENSEE CONCERNING ANY PERSON'S

30 FAMILY, HABITS, CHARACTER, ASSOCIATES, CRIMINAL RECORD, BUSINESS

31 ACTIVITIES, AND FINANCIAL AFFAIRS;

32 (3) REQUIRING THE PROCEDURES FOR THE FINGERPRINTING OF AN

33 APPLICANT FOR ANY LICENSE REQUIRED UNDER THIS ARTICLE OR OTHER METHODS

34 OF IDENTIFICATION THAT MAY BE NECESSARY IN THE JUDGMENT OF THE

35 COMMISSION TO ACCOMPLISH EFFECTIVE ENFORCEMENT OF THE PROVISIONS OF

36 THIS ARTICLE;


20 HOUSE BILL 678

1 (4) REQUIRING THE MANNER AND PROCEDURE OF HEARINGS

2 CONDUCTED BY THE COMMISSION;

3 (5) REQUIRING THE MANNER AND METHOD OF COLLECTION OF TAXES,

4 FEES, AND CIVIL PENALTIES;

5 (6) DEFINING AND LIMITING THE AREAS OF OPERATION FOR VIDEO

6 LOTTERY TERMINALS, RULES OF VIDEO LOTTERY TERMINALS, ODDS FOR VIDEO

7 LOTTERY TERMINALS, AND THE METHOD OF OPERATION OF THE VIDEO LOTTERY

8 TERMINALS;

9 (7) REGULATING THE PRACTICE AND PROCEDURES FOR NEGOTIABLE

10 TRANSACTIONS INVOLVING PLAYERS, INCLUDING LIMITATIONS ON THE

11 CIRCUMSTANCES AND AMOUNTS OF NEGOTIABLE TRANSACTIONS, AND THE

12 ESTABLISHMENT OF FORMS AND PROCEDURES FOR NEGOTIABLE INSTRUMENT

13 TRANSACTIONS, REDEMPTIONS, AND CONSOLIDATIONS;

14 (8) PRESCRIBING THE GROUNDS AND PROCEDURES FOR REPRIMANDS

15 OR THE REVOCATION OR SUSPENSION OF LICENSES ISSUED UNDER THIS ARTICLE;

16 (9) GOVERNING THE MANUFACTURE, DISTRIBUTION, SALE, AND

17 SERVICING OF VIDEO LOTTERY TERMINALS;

18 (10) REQUIRING THE PROCEDURES, FORMS, AND METHODS OF

19 MANAGEMENT CONTROLS;

20 (11) PROVIDING FOR MINIMUM UNIFORM STANDARDS OF ACCOUNTANCY

21 METHODS, PROCEDURES, AND FORMS AS ARE NECESSARY TO ASSURE CONSISTENCY,

22 COMPARABILITY, AND EFFECTIVE DISCLOSURE OF ALL FINANCIAL INFORMATION,

23 INCLUDING PERCENTAGES OF PROFIT FOR VIDEO LOTTERY TERMINALS;

24 (12) REQUIRING PERIODIC FINANCIAL REPORTS AND THE FORM OF THE

25 REPORTS, INCLUDING AN ANNUAL AUDIT PREPARED BY A CERTIFIED PUBLIC

26 ACCOUNTANT LICENSED TO DO BUSINESS IN THE STATE, DISCLOSING WHETHER

27 THE ACCOUNTS, RECORDS, AND CONTROL PROCEDURES EXAMINED ARE

28 MAINTAINED BY THE VIDEO LOTTERY FACILITY LICENSEE AS REQUIRED BY THIS

29 ARTICLE, THE REGULATIONS THAT SHALL BE ISSUED UNDER THIS ARTICLE, AND

30 ANY STATUTE ENACTED PURSUANT TO THIS ARTICLE;

31 (13) LIMITING SIGNS AND OTHER ON-SITE ADVERTISING WITH A VIEW

32 TOWARD MINIMIZING SOLICITATION FOR VIDEO LOTTERY PURPOSES FROM THE

33 PUBLIC THOROUGHFARES OR OTHERWISE DOMINATING OR DESPOILING THE

34 ENVIRONMENT;

35 (14) PROHIBITING A LICENSEE FROM ALLOWING A MINOR TO PLAY A

36 VIDEO LOTTERY TERMINAL; AND

37 (15) ESTABLISHING PAYOUT PERCENTAGE FOR VIDEO LOTTERY

38 TERMINALS OF NOT LESS THAN 83% ON AN AVERAGE ANNUAL BASIS.


21 HOUSE BILL 678

1 (F) (1) THE COMMISSION, BY REGULATION, SHALL PROVIDE FOR THE

2 ESTABLISHMENT OF A LIST OF PERSONS WHO ARE TO BE EXCLUDED OR EJECTED

3 FROM ANY VIDEO LOTTERY FACILITY LICENSED UNDER THIS ARTICLE.

4 (2) THE REGULATIONS UNDER THIS SUBSECTION SHALL DEFINE THE

5 STANDARDS FOR EXCLUSION OR EJECTION AND SHALL INCLUDE STANDARDS

6 RELATING TO PERSONS:

7 (I) WHO ARE CAREER OFFENDERS AS DEFINED BY REGULATIONS

8 THAT SHALL BE ISSUED BY THE COMMISSION;

9 (II) WHO HAVE BEEN CONVICTED OF A CRIMINAL OFFENSE UNDER

10 THE LAWS OF THE UNITED STATES OR ANY JURISDICTION WITHIN THE UNITED

11 STATES THAT IS A CRIMINAL OFFENSE INVOLVING MORAL TURPITUDE OR A

12 GAMBLING OFFENSE; OR

13 (III) WHOSE PRESENCE IN THE ESTABLISHMENT OF A LICENSEE

14 WOULD BE, IN THE OPINION OF THE COMMISSION, INIMICAL TO THE INTEREST OF

15 THE STATE, THE LICENSEE, OR THE PERSON.

16 (3) THE COMMISSION MAY IMPOSE SANCTIONS ON A LICENSEE IN

17 ACCORDANCE WITH THIS ARTICLE IF THE LICENSEE KNOWINGLY FAILS TO EXCLUDE

18 OR EJECT FROM THE PREMISES OF THE LICENSEE A PERSON PLACED BY THE

19 COMMISSION ON THE LIST OF PERSONS TO BE EXCLUDED OR EJECTED.

20 (4) AN ORDER UNDER THIS SUBSECTION SHALL BE SUBJECT TO

21 JUDICIAL REVIEW.

22 (5) RACE, COLOR, CREED, NATIONAL ORIGIN OR ANCESTRY, OR SEX MAY

23 NOT BE A REASON FOR PLACING THE NAME OF A PERSON ON THE LIST OF PERSONS

24 TO BE EXCLUDED OR EJECTED.

25 (G) (1) THE COMMISSION SHALL PROMPTLY AND IN REASONABLE ORDER

26 INVESTIGATE ALL APPLICATIONS AND ENFORCE THE PROVISIONS OF THIS ARTICLE,

27 REGULATIONS THAT SHALL BE ISSUED UNDER THIS ARTICLE, AND ANY STATUTE

28 ENACTED PURSUANT TO THIS ARTICLE.

29 (2) THE COMMISSION AND ITS EMPLOYEES AND AGENTS SHALL HAVE

30 THE AUTHORITY, WITHOUT NOTICE AND WITHOUT WARRANT, TO:

31 (I) INSPECT AND EXAMINE ALL PREMISES IN WHICH VIDEO

32 LOTTERY OPERATIONS UNDER THIS ARTICLE ARE CONDUCTED OR ANY AUTHORIZED

33 VIDEO LOTTERY TERMINALS, ASSOCIATED EQUIPMENT, OR CENTRAL COMPUTER

34 ARE DESIGNED, BUILT, CONSTRUCTED, ASSEMBLED, MANUFACTURED, SOLD,

35 DISTRIBUTED, OR SERVICED, OR IN WHICH RECORDS OF THOSE ACTIVITIES ARE

36 PREPARED OR MAINTAINED;

37 (II) INSPECT ANY VIDEO LOTTERY TERMINALS, ASSOCIATED

38 EQUIPMENT, OR CENTRAL COMPUTER IN, ABOUT, ON, OR AROUND THOSE PREMISES;


22 HOUSE BILL 678

1 (III) SEIZE SUMMARILY AND REMOVE FROM THOSE PREMISES AND

2 IMPOUND, OR ASSUME PHYSICAL CONTROL OF, ANY VIDEO LOTTERY TERMINALS,

3 ASSOCIATED EQUIPMENT, OR CENTRAL COMPUTER FOR THE PURPOSES OF

4 EXAMINATION AND INSPECTION;

5 (IV) INSPECT, EXAMINE, AND AUDIT BOOKS, RECORDS, AND

6 DOCUMENTS CONCERNING A LICENSEE'S VIDEO LOTTERY OPERATIONS; AND

7 (V) SEIZE, IMPOUND, OR ASSUME PHYSICAL CONTROL OF BOOKS,

8 RECORDS, LEDGERS, CASH BOXES AND THEIR CONTENTS, A COUNTING ROOM OR ITS

9 EQUIPMENT, OR OTHER PHYSICAL OBJECTS RELATING TO VIDEO LOTTERY

10 OPERATIONS.

11 8. DISTRIBUTION OF PROCEEDS.

12 (A) THE PROCEEDS FROM VIDEO LOTTERY TERMINALS SHALL BE UNDER THE

13 CONTROL OF THE COMMISSION AND SHALL BE DISTRIBUTED AS PROVIDED IN THIS

14 SECTION.

15 (B) (1) FROM THE PROCEEDS FROM VIDEO LOTTERY TERMINALS, THE

16 COMMISSION SHALL INITIALLY PAY, BASED ON A SCHEDULE DETERMINED BY THE

17 COMMISSION:

18 (I) THE COSTS OF LEASING, OR THE CAPITALIZED COST OF

19 PURCHASING, THE VIDEO LOTTERY TERMINALS, ASSOCIATED EQUIPMENT, AND

20 CENTRAL COMPUTER;

21 (II) THE COSTS TO REPAIR AND MAINTAIN THE VIDEO LOTTERY

22 TERMINALS, ASSOCIATED EQUIPMENT, AND CENTRAL COMPUTER TO THE EXTENT

23 THESE COSTS ARE NOT INCLUDED IN THE COSTS OF LEASING OR PURCHASING THE

24 VIDEO LOTTERY TERMINALS, ASSOCIATED EQUIPMENT, AND CENTRAL COMPUTER;

25 AND

26 (III) SUBJECT TO THE PROVISIONS OF PARAGRAPH (2) OF THIS

27 SUBSECTION, AN AMOUNT TO THE GENERAL FUND SUBJECT TO APPROVAL BY THE

28 GENERAL ASSEMBLY FOR LOCAL IMPACT GRANTS TO COUNTIES FOR

29 INFRASTRUCTURE, FACILITIES, SERVICES, REDEVELOPMENT, AND OTHER

30 IMPROVEMENTS IN COUNTIES WHERE PIMLICO RACE COURSE, LAUREL RACE

31 COURSE, ROSECROFT RACEWAY, AND VIDEO LOTTERY FACILITIES AT TOURIST

32 DESTINATION LOCATIONS AND SATELLITE SIMULCAST FACILITIES ARE LOCATED

33 THAT SHALL BE:

34 1. AT LEAST $27,400 PER DAY FOR EACH DAY OF OPERATION

35 BY A VIDEO LOTTERY FACILITY LICENSEE LOCATED AT A TRACK IN A COUNTY WITH

36 A POPULATION DENSITY OF MORE THAN 2,500 PER SQUARE MILE;

37 2. AT LEAST $21,925 PER DAY FOR EACH DAY OF OPERATION

38 BY A VIDEO LOTTERY FACILITY LICENSEE LOCATED AT A TRACK IN A COUNTY WITH

39 A POPULATION DENSITY OF MORE THAN 1,500 PER SQUARE MILE;


23 HOUSE BILL 678

1 3. AT LEAST $16,450 PER DAY FOR EACH DAY OF OPERATION

2 BY A VIDEO LOTTERY FACILITY LICENSEE LOCATED AT A TRACK IN A COUNTY WITH

3 A POPULATION DENSITY OF MORE THAN 1,000 PER SQUARE MILE;

4 4. AT LEAST $2,750 PER DAY FOR EACH DAY OF OPERATION

5 BY A VIDEO LOTTERY FACILITY LICENSEE LOCATED AT A TOURIST DESTINATION

6 LOCATION; AND

7 5. AT LEAST $1,400 PER DAY FOR EACH DAY OF OPERATION

8 BY A VIDEO LOTTERY FACILITY LICENSEE LOCATED AT A SATELLITE SIMULCAST

9 FACILITY THAT IS NOT A TOURIST DESTINATION LOCATION.

10 (2) IF A VIDEO LOTTERY FACILITY LICENSE IS ISSUED FOR THE LAUREL

11 RACE COURSE LOCATION, THE LOCAL IMPACT GRANT FOR THAT LOCATION SHALL BE

12 DISTRIBUTED AS FOLLOWS:

13 (I) 60% TO ANNE ARUNDEL COUNTY;

14 (II) 20% TO HOWARD COUNTY; AND

15 (III) 20% TO THE CITY OF LAUREL.

16 (3) POPULATION DENSITY UNDER ITEM (1)(III) OF THIS SUBSECTION

17 SHALL BE DETERMINED BY THE MARYLAND OFFICE OF PLANNING BASED ON THE

18 OFFICIAL 1997 POPULATION ESTIMATE FOR THE YEAR 2000.

19 (4) THE LOCAL IMPACT GRANTS IN ITEM (1)(III) OF THIS SUBSECTION

20 SHALL INCREASE 2% EACH YEAR IN WHICH THE PROCEEDS IN THE CURRENT FISCAL

21 YEAR EXCEED THE PROCEEDS IN THE PRIOR FISCAL YEAR.

22 (C) FROM THE PROCEEDS FROM THE VIDEO LOTTERY TERMINALS FOR ALL

23 VIDEO LOTTERY FACILITIES THAT DO NOT EXCEED AN AVERAGE OF $250 PER VIDEO

24 LOTTERY TERMINAL PER DAY AS DETERMINED EACH FISCAL YEAR, AFTER THE

25 DEDUCTIONS FROM THE PROCEEDS OF THE AMOUNTS DESCRIBED UNDER

26 SUBSECTION (B) OF THIS SECTION, THE COMMISSION SHALL PAY, BASED ON A

27 SCHEDULE DETERMINED BY THE COMMISSION:

28 (1) AS APPROVED BY THE COMMISSION, AN AMOUNT NOT TO EXCEED

29 47% OF THE REMAINDER OF THE PROCEEDS FOR THE OPERATING COSTS AND

30 RELATED CAPITAL COSTS OF, AND A REASONABLE RETURN FOR, THE VIDEO LOTTERY

31 FACILITY LICENSEE;

32 (2) 9% OF THE REMAINDER OF THE PROCEEDS TO THE PURSE

33 DEDICATION ACCOUNT ESTABLISHED UNDER § 10 OF THIS ARTICLE;

34 (3) 1% OF THE REMAINDER OF THE PROCEEDS TO THE MARYLAND

35 TOURISM DEVELOPMENT BOARD FUND ESTABLISHED UNDER ARTICLE 83A, TITLE 4,

36 SUBTITLE 2 OF THE ANNOTATED CODE OF MARYLAND FOR THE PURPOSES

37 SPECIFIED IN § 11 OF THIS ARTICLE; AND


24 HOUSE BILL 678

1 (4) 0.5% OF THE REMAINDER OF THE PROCEEDS TO BE ALLOCATED

2 AMONG ALL OF THE HOLDERS OF TRACK LICENSES IN THE STATE, EXCLUDING

3 HOLDERS OF TRACK LICENSES WHO HAVE A VIDEO LOTTERY FACILITY LICENSE, IN A

4 MANNER DETERMINED BY THE COMMISSION.

5 (D) FROM THE PROCEEDS FROM THE VIDEO LOTTERY TERMINALS FOR ALL

6 VIDEO LOTTERY FACILITIES THAT EXCEED AN AVERAGE OF $250 PER VIDEO LOTTERY

7 TERMINAL PER DAY AS DETERMINED EACH FISCAL YEAR, THE COMMISSION SHALL

8 PAY BASED ON A SCHEDULE DETERMINED BY THE COMMISSION:

9 (1) AS APPROVED BY THE COMMISSION, AN AMOUNT NOT TO EXCEED

10 50% OF THE REMAINDER OF THE PROCEEDS DESCRIBED BY THIS SUBSECTION FOR

11 THE OPERATING AND RELATED CAPITAL COSTS, AND A REASONABLE RETURN FOR,

12 THE VIDEO LOTTERY FACILITY LICENSEE; AND

13 (2) THE BALANCE OF THE PROCEEDS TO THE EDUCATION TRUST FUND

14 ESTABLISHED UNDER § 9 OF THIS ARTICLE.

15 (E) FROM THE PROCEEDS REMAINING AFTER PAYMENTS UNDER

16 SUBSECTIONS (B), (C), AND (D) OF THIS SECTION, THE COMMISSION SHALL PAY THE

17 BALANCE TO THE EDUCATION TRUST FUND ESTABLISHED UNDER § 9 OF THIS

18 ARTICLE.

19 9. EDUCATION TRUST FUND.

20 (A) THERE IS AN EDUCATION TRUST FUND WHICH IS A SPECIAL CONTINUING,

21 NONLAPSING FUND.

22 (B) THERE SHALL BE CREDITED TO THE EDUCATION TRUST FUND ALL TAXES,

23 FEES, CHARGES, AND REVENUES COLLECTED OR RECEIVED BY OR PAID,

24 APPROPRIATED, OR CREDITED, UNDER THIS ARTICLE OR ANY OTHER PROVISION OF

25 LAW, TO THE ACCOUNT OF THE EDUCATION TRUST FUND.

26 (C) THERE IS A BOARD OF THE EDUCATION TRUST FUND THAT SHALL

27 OVERSEE THE ALLOCATION AND EXPENDITURE OF FUNDS FROM THE EDUCATION

28 TRUST FUND.

29 (D) THE BOARD SHALL CONSIST OF THE FOLLOWING NINE MEMBERS:

30 (1) THE SECRETARY OF BUDGET AND MANAGEMENT;

31 (2) THE SECRETARY OF THE MARYLAND HIGHER EDUCATION

32 COMMISSION;

33 (3) THE STATE SUPERINTENDENT OF SCHOOLS;

34 (4) THE CHANCELLOR OF THE UNIVERSITY SYSTEM OF MARYLAND;

35 (5) THE PRESIDENT OF MORGAN STATE UNIVERSITY;


25 HOUSE BILL 678

1 (6) A MEMBER OF THE HOUSE OF DELEGATES APPOINTED BY THE

2 SPEAKER OF THE HOUSE OF DELEGATES;

3 (7) A MEMBER OF THE SENATE APPOINTED BY THE PRESIDENT OF THE

4 SENATE; AND

5 (8) TWO MEMBERS OF THE PUBLIC APPOINTED BY THE GOVERNOR TO A

6 TERM OF 4 YEARS BEGINNING JANUARY 1, 1999, WHO ARE ELIGIBLE FOR

7 REAPPOINTMENT.

8 (E) THE STATE SUPERINTENDENT OF SCHOOLS SHALL SERVE AS THE

9 CHAIRMAN OF THE BOARD.

10 (F) (1) THE BOARD SHALL PERIODICALLY REVIEW THE ALLOCATION AND

11 EXPENDITURE OF FUNDS FROM THE EDUCATION TRUST FUND.

12 (2) THE BOARD SHALL SUBMIT A REPORT ANNUALLY TO THE GOVERNOR

13 AND THE GENERAL ASSEMBLY BY NOVEMBER 1 OF EACH YEAR.

14 (3) THE REPORT SHALL INCLUDE THE EDUCATION TRUST FUND'S:

15 (I) BEGINNING BALANCE;

16 (II) PROJECTED REVENUES;

17 (III) PROPOSED OVERALL BUDGET AND ALLOCATION OF FUNDS IN

18 THE UPCOMING FISCAL YEAR; AND

19 (IV) IDENTIFICATION OF MULTIYEAR COMMITMENTS FOR

20 OPERATING OR CAPITAL PURPOSES.

21 (4) (I) THE GOVERNOR SHALL CONSIDER THE BOARD'S

22 RECOMMENDATIONS WHEN DEVELOPING THE BUDGET FOR THE UPCOMING FISCAL

23 YEAR.

24 (II) THE GOVERNOR MAY ADJUST THE BOARD'S PROPOSED

25 ALLOCATION OF FUNDS WITHIN THE EDUCATION TRUST FUND'S OVERALL BUDGET

26 AND EDUCATION PURPOSES RECOMMENDED BY THE BOARD.

27 (5) EXPENDITURES FROM THE EDUCATION TRUST FUND SHALL BE

28 MADE IN ACCORDANCE WITH ANY APPLICABLE BUDGET BILL.

29 (G) (1) FOR EACH FISCAL YEAR BEGINNING ON OR AFTER THE EFFECTIVE

30 DATE OF THIS ARTICLE, THE BOARD OF THE EDUCATION TRUST FUND SHALL USE

31 THE FUNDS IN THE EDUCATION TRUST FUND FOR ANY LAWFUL OPERATING OR

32 PAY-AS-YOU-GO CAPITAL PURPOSE RELATED TO:

33 (I) THE EXTENDED ELEMENTARY EDUCATION PROGRAM;


26 HOUSE BILL 678

1 (II) FULL-DAY KINDERGARTEN WITH BEFORE- AND

2 AFTER-KINDERGARTEN CARE FOR "AT RISK" CHILDREN ELIGIBLE FOR FREE AND

3 REDUCED PRICE MEALS;

4 (III) TECHNOLOGY IN EDUCATION, WHICH FUNDING SHOULD BE

5 USED TO IMPLEMENT AND ADMINISTER THE MARYLAND PLAN FOR TECHNOLOGY IN

6 EDUCATION DEVELOPED FOR THE STATE BOARD OF EDUCATION WITH A GOAL TO

7 PROVIDE ACCESS AND USE OF INFORMATION AND COMMUNICATION RESOURCES

8 FOR EVERY CLASSROOM IN THE STATE;

9 (IV) THE STATE LIBRARY RESOURCE CENTER AND REGIONAL

10 RESOURCE CENTERS IN SOUTHERN MARYLAND, WESTERN MARYLAND, AND THE

11 EASTERN SHORE FOR IMPROVED LIBRARY SERVICES AND TECHNOLOGY

12 ENHANCEMENTS;

13 (V) THE OPPORTUNITIES SCHOLARSHIP FUND THROUGH WHICH

14 SCHOLARSHIPS:

15 1. ARE PROVIDED TO MARYLAND HIGH SCHOOL GRADUATES

16 WITH A CUMULATIVE HIGH SCHOOL GRADE POINT AVERAGE OF B OR HIGHER IN

17 COLLEGE PREPARATORY COURSES AND A FAMILY INCOME OF NOT MORE THAN

18 $85,000;

19 2. MAY BE USED TO ATTEND ANY COMMUNITY COLLEGE OR

20 4-YEAR COLLEGE IN THIS STATE THAT HAS RECEIVED A CERTIFICATE OF APPROVAL

21 FROM THE MARYLAND HIGHER EDUCATION COMMISSION;

22 3. MAY PAY UP TO THE FULL COST OF TUITION CHARGED AT

23 THE UNIVERSITY OF MARYLAND, COLLEGE PARK FOR 1 YEAR; AND

24 4. THAT MAY BE RENEWED FOR A MAXIMUM OF THREE

25 ADDITIONAL YEARS FOR STUDENTS WHO CONTINUE TO MAINTAIN A B AVERAGE IN

26 EACH COLLEGE ACADEMIC YEAR;

27 (VI) THE STATE'S STUDENT FINANCIAL ASSISTANCE PROGRAMS,

28 UNDER TITLE 18 OF THE EDUCATION ARTICLE OF THE ANNOTATED CODE OF

29 MARYLAND, TO REDUCE WAITING LISTS FOR FINANCIAL ASSISTANCE WITH THE

30 GOAL OF MEETING 40% OF THE DEMONSTRATED FINANCIAL NEED OF ELIGIBLE

31 STUDENTS IN THE EDUCATIONAL ASSISTANCE GRANT PROGRAM;

32 (VII) FUNDING FOR THE PUBLIC SENIOR HIGHER EDUCATION

33 INSTITUTIONS IN THE STATE TO:

34 1. CREATE AN EMINENT SCHOLAR FUND PROGRAM THAT

35 INCREASES THE NUMBER OF EMINENT FACULTY PROFESSORSHIPS IN ORDER TO BE

36 COMPETITIVE IN RECRUITING AND RETAINING WORLD CLASS FACULTIES AND THAT

37 PROVIDES FOR:


27 HOUSE BILL 678

1 A. THE CREATION OF ENDOWMENTS THROUGH PRIVATE

2 DONATIONS TO SUPPORT THE SALARIES AND WORK OF EMINENT FACULTY

3 POSITIONS MATCHED ON A DOLLAR FOR DOLLAR BASIS; AND

4 B. DISTRIBUTION OF FUNDS TO AN INSTITUTION UPON ITS

5 CERTIFICATION OF PRIVATE DONATIONS OF AT LEAST $500,000 TO CREATE A

6 SPECIFIC EMINENT FACULTY PROFESSORSHIP;

7 2. RECRUIT AND RETAIN DISTINGUISHED FACULTY

8 THROUGH ENHANCED FACULTY SALARIES BY PROVIDING FUNDS TO INSTITUTIONS

9 TO ACHIEVE AVERAGE FACULTY SALARIES IN THE 90TH PERCENTILE OF ITS PEER

10 INSTITUTIONS, AS CERTIFIED BY THE MARYLAND HIGHER EDUCATION COMMISSION;

11 AND

12 3. PROVIDE AND MAINTAIN INFORMATION TECHNOLOGY

13 INFRASTRUCTURE, INCLUDING:

14 A. BUILDING MODERN TELECOMMUNICATIONS SYSTEMS,

15 CLASSROOMS, AND LABORATORIES;

16 B. CREATING DIGITAL LIBRARIES;

17 C. PROVIDING AMPLE COMPUTER WORKSTATIONS FOR

18 STUDENTS; AND

19 D. ENHANCING DISTANCE LEARNING TECHNOLOGIES;

20 (VIII) THE PUBLIC SCHOOL CONSTRUCTION PROGRAM

21 ESTABLISHED UNDER § 5-301 OF THE EDUCATION ARTICLE OF THE ANNOTATED

22 CODE OF MARYLAND AND ADMINISTERED BY THE INTERAGENCY COMMITTEE ON

23 SCHOOL CONSTRUCTION; AND

24 (IX) ANY OTHER EDUCATION RELATED PURPOSE APPROVED BY THE

25 EDUCATION TRUST FUND BOARD.

26 (2) FOR EACH FISCAL YEAR, IN ADDITION TO THE FUNDS DEDICATED

27 UNDER THIS SECTION TO THE EDUCATION TRUST FUND, THE GOVERNOR SHALL

28 INCLUDE IN THE ANNUAL BUDGET BILL SUBMITTED TO THE GENERAL ASSEMBLY A

29 GENERAL FUND APPROPRIATION FOR THE PURPOSES DESCRIBED UNDER

30 PARAGRAPH (1) OF THIS SUBSECTION IN AN AMOUNT NOT LESS THAN THE AMOUNT

31 OF FUNDS APPROPRIATED IN THE PRIOR FISCAL YEAR FOR THOSE PURPOSES.

32 (3) AN APPROPRIATION FROM THE EDUCATION TRUST FUND PROPOSED

33 TO BE MADE TO ANY UNIT IN THE DEPARTMENT OR PROPOSED TO BE MADE FOR ANY

34 DESIGNATED EDUCATION ACTIVITY, FUNCTION, OR UNDERTAKING THAT HAS BEEN

35 REDUCED BY THE GENERAL ASSEMBLY MAY NOT BE RESTORED, FOR THE SAME

36 PURPOSE AS ORIGINALLY PROPOSED, EXCEPT IN AN EMERGENCY, BY THE BUDGET

37 AMENDMENT PROCEDURE OF § 7-209 OF THE STATE FINANCE AND PROCUREMENT

38 ARTICLE OF THE ANNOTATED CODE OF MARYLAND OR OTHERWISE IF THE GENERAL


28 HOUSE BILL 678

1 ASSEMBLY IN STRIKING OR REDUCING THE APPROPRIATION, PROHIBITED ITS

2 RESTORATION.

3 (4) EXCEPT FOR AN EMERGENCY CAPITAL PROJECT FOR EDUCATION, IF

4 THE GENERAL ASSEMBLY EXPLICITLY REDUCES IN THE BUDGET BILL AN

5 APPROPRIATION FROM THE EDUCATION TRUST FUND PROPOSED FOR A MAJOR

6 CAPITAL PROJECT OR CAPITAL GRANT FOR EDUCATION, THE APPROPRIATION MAY

7 NOT BE RESTORED FOR THE SAME PURPOSE AS ORIGINALLY PROPOSED BY THE

8 BUDGET AMENDMENT PROCEDURE OF § 7-209 OF THE STATE FINANCE AND

9 PROCUREMENT ARTICLE OF THE ANNOTATED CODE OF MARYLAND OR OTHERWISE

10 UNLESS THE GENERAL ASSEMBLY, IN STRIKING OR REDUCING THE APPROPRIATION,

11 EXPRESSLY AUTHORIZED ITS RESTORATION.

12 10. PURSE DEDICATION ACCOUNT.

13 (A) THERE IS A PURSE DEDICATION ACCOUNT UNDER THE AUTHORITY OF

14 THE COMMISSION.

15 (B) (1) THE ACCOUNT SHALL RECEIVE MONEYS AS REQUIRED UNDER §

16 8(C)(2) OF THIS ARTICLE.

17 (2) MONEYS IN THE ACCOUNT SHALL BE INVESTED AND REINVESTED BY

18 THE TREASURER AND INTEREST AND EARNINGS SHALL ACCRUE TO THE ACCOUNT.

19 (3) THE ACCOUNT IS A SPECIAL CONTINUING, NONLAPSING FUND THAT

20 IS NOT SUBJECT TO § 7-302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE OF

21 THE ANNOTATED CODE OF MARYLAND.

22 (4) EXPENDITURES FROM THE ACCOUNT SHALL ONLY BE MADE:

23 (I) AS PROVIDED UNDER SUBSECTION (C) OF THIS SECTION; AND

24 (II) IN ACCORDANCE WITH AN APPROPRIATION APPROVED BY THE

25 GENERAL ASSEMBLY IN THE ANNUAL STATE BUDGET OR BY THE BUDGET

26 AMENDMENT PROCEDURE PROVIDED FOR IN § 7-209 OF THE STATE FINANCE AND

27 PROCUREMENT ARTICLE OF THE ANNOTATED CODE OF MARYLAND.

28 (C) FUNDS CREDITED TO THE PURSE DEDICATION ACCOUNT UNDER § 8(C)(2)

29 OF THIS ARTICLE SHALL BE ALLOCATED BY THE COMMISSION AND PAID FROM THE

30 ACCOUNT IN THE FOLLOWING MANNER:

31 (1) 62.3% TO MILE THOROUGHBRED PURSES;

32 (2) 7.7% TO THE MARYLAND-BRED RACE FUND;

33 (3) 26.67% TO STANDARDBRED PURSES; AND

34 (4) 3.33% TO THE STANDARDBRED RACE FUND.

35 (D) (1) THE ORGANIZATION REPRESENTING A MAJORITY OF THE

36 THOROUGHBRED BREEDERS LICENSED IN THE STATE MAY USE UP TO 5% OF THE


29 HOUSE BILL 678

1 MONEY ALLOCATED TO THE MARYLAND-BRED RACE FUND UNDER SUBSECTION

2 (C)(2) OF THIS SECTION FOR ACTIVITIES RELATED TO THE MARKETING, PROMOTION,

3 AND ENHANCEMENT OF THE THOROUGHBRED RACING AND BREEDING INDUSTRY IN

4 THE STATE.

5 (2) THE STATE RACING COMMISSION SHALL USE THE REMAINING 95%

6 OF THE MONEY ALLOCATED TO THE MARYLAND-BRED RACE FUND UNDER

7 SUBSECTION (C)(2) OF THIS SECTION FOR MARYLAND-BRED FUND RACES AS

8 DESCRIBED UNDER TITLE 11, SUBTITLE 5 OF THE BUSINESS REGULATION ARTICLE

9 OF THE ANNOTATED CODE OF MARYLAND.

10 (E) THE GROUP THAT REPRESENTS A MAJORITY OF THE APPLICABLE OWNERS

11 AND TRAINERS LICENSED IN THE STATE MAY ALLOCATE REVENUES OUT OF THE

12 APPLICABLE PURSE SHARE.

13 (F) THE GROUP THAT REPRESENTS A MAJORITY OF THE APPLICABLE

14 BREEDERS IN THE STATE MAY ALLOCATE REVENUES OUT OF THE APPLICABLE BRED

15 FUND SHARE.

16 11. MARYLAND TOURISM DEVELOPMENT.

17 (A) THE MARYLAND TOURISM DEVELOPMENT BOARD SHALL RECEIVE

18 MONEYS AS REQUIRED UNDER § 8(C)(3) OF THIS ARTICLE.

19 (B) IN ACCORDANCE WITH AN APPROPRIATION APPROVED BY THE GENERAL

20 ASSEMBLY IN THE ANNUAL STATE BUDGET OR BY THE BUDGET AMENDMENT

21 PROCEDURE PROVIDED FOR IN § 7-209 OF THE STATE FINANCE AND PROCUREMENT

22 ARTICLE OF THE ANNOTATED CODE OF MARYLAND, THE MARYLAND TOURISM

23 DEVELOPMENT BOARD SHALL EXPEND MONEYS DESCRIBED UNDER § 8(C)(3) OF THIS

24 ARTICLE FOR STATEWIDE TOURISM PROMOTION, INCLUDING HERITAGE AND OTHER

25 TOURISM AREAS.

26 12. COMPULSIVE GAMBLING FUND.

27 (A) THERE IS A COMPULSIVE GAMBLING FUND IN THE DEPARTMENT OF

28 HEALTH AND MENTAL HYGIENE.

29 (B) (1) THERE SHALL BE CREDITED TO THE COMPULSIVE GAMBLING FUND

30 ALL FEES COLLECTED BY THE COMMISSION UNDER § 7(A)(6) OF THIS ARTICLE.

31 (2) MONEYS IN THE COMPULSIVE GAMBLING FUND SHALL BE INVESTED

32 AND REINVESTED BY THE TREASURER, AND INTEREST AND EARNINGS SHALL

33 ACCRUE TO THE FUND.

34 (3) THE COMPULSIVE GAMBLING FUND IS A SPECIAL CONTINUING,

35 NONLAPSING FUND THAT IS NOT SUBJECT TO § 7-302 OF THE STATE FINANCE AND

36 PROCUREMENT ARTICLE OF THE ANNOTATED CODE OF MARYLAND.

37 (C) EXPENDITURES FROM THE COMPULSIVE GAMBLING FUND SHALL ONLY

38 BE MADE:


30 HOUSE BILL 678

1 (1) BY THE DEPARTMENT OF HEALTH AND MENTAL HYGIENE TO

2 ESTABLISH A 24-HOUR HOTLINE FOR COMPULSIVE GAMBLERS AND TO PROVIDE

3 COUNSELING AND OTHER SUPPORT SERVICES FOR COMPULSIVE GAMBLERS; AND

4 (2) IN ACCORDANCE WITH AN APPROPRIATION APPROVED BY THE

5 GENERAL ASSEMBLY IN THE ANNUAL STATE BUDGET OR BY THE BUDGET

6 AMENDMENT PROCEDURE PROVIDED FOR IN § 7-209 OF THE STATE FINANCE AND

7 PROCUREMENT ARTICLE OF THE ANNOTATED CODE OF MARYLAND.

8 13. COMPTROLLER OF THE TREASURY.

9 (A) THE COMMISSION SHALL ESTABLISH AN ELECTRONIC PAYMENT SYSTEM

10 FOR THE PAYMENT OF THE AMOUNTS REQUIRED UNDER § 8 OF THIS ARTICLE.

11 (B) THE COMMISSION SHALL ACCOUNT TO THE COMPTROLLER FOR ALL OF

12 THE REVENUE AND EXPENDITURES UNDER THIS ARTICLE.

13 (C) THE COMPTROLLER SHALL CREDIT THE REVENUES AS REQUIRED BY § 8

14 OF THIS ARTICLE.

15 14. LOCAL APPROVAL.

16 NOTWITHSTANDING ANY OTHER PROVISION OF THE CONSTITUTION OF

17 MARYLAND, ANY PROVISION OF THIS ARTICLE THAT AUTHORIZES VIDEO LOTTERY

18 OPERATIONS:

19 (1) AT A TOURIST DESTINATION LOCATION SHALL BE CONTINGENT,

20 WITH RESPECT TO THE COUNTY WITHIN WHICH THE TOURIST DESTINATION

21 LOCATION'S VIDEO LOTTERY OPERATION IS TO BE AUTHORIZED, ON A MAJORITY OF

22 THE REGISTERED VOTERS IN THAT COUNTY WHO VOTE ON THIS ARTICLE VOTING

23 FOR ADOPTION OF THIS ARTICLE; AND

24 (2) AT A SATELLITE SIMULCAST FACILITY LOCATION SHALL BE

25 CONTINGENT, WITH RESPECT TO THE COUNTY WITHIN WHICH THE SATELLITE

26 SIMULCAST FACILITY'S VIDEO LOTTERY OPERATION IS TO BE AUTHORIZED, ON A

27 MAJORITY OF THE REGISTERED VOTERS IN THAT COUNTY WHO VOTE ON THIS

28 ARTICLE VOTING FOR ADOPTION OF THIS ARTICLE.

29 SECTION 2. AND BE IT FURTHER ENACTED, That the General Assembly

30 determines that the amendment to the Constitution of Maryland proposed by this Act

31 affects multiple jurisdictions and that the provisions of Article XIV, Section 1 of the

32 Constitution concerning local approval of constitutional amendments do not apply.

33 SECTION 3. AND BE IT FURTHER ENACTED, That the aforegoing section

34 proposed as an amendment to the Constitution of Maryland shall be submitted to the

35 legal and qualified voters of this State at the next general election to be held in

36 November, 1998 for their adoption or rejection in pursuance of directions contained in

37 Article XIV of the Constitution of this State. At that general election, the vote on this

38 proposed amendment to the Constitution shall be by ballot and upon each ballot there

39 shall be printed the words "For the Constitutional Amendments" and "Against the


31 HOUSE BILL 678

1 Constitutional Amendments," as now provided by law. Immediately after the election,

2 all returns shall be made to the Governor of the vote for and against the proposed

3 amendment, as directed by Article XIV of the Constitution, and further proceedings

4 had in accordance with Article XIV.

HB 678









1998 HB678 Fiscal Note St Lottery Commission Video Lottery Terminals

HB 678

Department of Legislative Services

Maryland General Assembly

FISCAL NOTE

House Bill 678

(Delegate Rawlings, et al.)

Ways and Means

State Lottery Commission - Video Lottery Terminals - Revenues and Funding

This bill proposes a constitutional amendment which authorizes video lottery terminals (VLTs) at up to 10 locations in the State, provides for the distribution of revenue from video lottery terminals, creates the Education Trust Fund and other special funds, and prohibits the General Assembly from adopting any laws authorizing any additional forms or expansion of commercial gaming.

Fiscal Summary

State Effect: Special fund revenues would increase by an estimated $54.6 million in FY 1999, increasing to $428.1 million in FY 2001, the first full year of operation for all authorized VLTs. Income and other tax revenues could increase an indeterminate amount through economic activity generated by VLT operations. Expenditures could increase for education, horse racing purses, and tourism development to the extent included in future years= proposed budgets and appropriated by the General Assembly. Fee revenues will offset administrative costs of the State Lottery Commission.

(in millions)

FY 1999

FY 2000

FY 2001

FY 2002

FY 2003

SF Revenues

$54.6

$354.6

$428.1

$427.9

$427.6

SF Expenditures

--

--

--

--

--

Net Effect

$54.6

$354.6

$428.1

$427.9

$427.6

Note: ( ) - decrease; GF - general funds; FF - federal funds; SF - special funds

Local Effect: Revenues for localities with VLTs would increase by an estimated $11.7 million in FY 1999, and $29.1 million in FY 2000. In the out-years, this amount would increase by 2% annually. Expenditures would not be affected.

Small Business Effect: Meaningful.

Analysis

Bill Summary: This bill permits video lottery operations at Laurel, Pimlico, and Rosecroft racetracks, all five existing off-track betting facilities (OTBs) (in Cecil, Dorchester, and Frederick counties, and two in Charles County), and at tourist destination locations in Western Maryland and on the Eastern Shore. Licenses may only be issued at OTBs and tourist destination locations if this constitutional amendment receives a majority of the votes cast in each respective county. Video lottery licensees at OTBs may have 250 VLTs; all others may have 2,000 VLTs for a total of 11,250 authorized VLTs. The bill also establishes the Education Trust Fund (ETF), and details the programs on which expenditures from the fund may be made.

Regulation

The State Lottery Commission is the regulatory body for video lotteries. The commission shall own or lease and control each VLT, associated equipment, and the central computer. Among other duties, the commission must establish application and license fees to cover administrative costs; establish the rules, odds, and method of operation of VLTs; prescribe the grounds and procedures for reprimands and revocation or suspension of licenses; oversee the manufacture, distribution, and servicing of VLTs; require periodic financial reports from licensees; prohibit licensees from allowing minors to play VLTs; and establish the payout percentage, which must not be less than 83% on an annual basis. The commission shall also license video lottery operators, video lottery employees, service technicians, and manufacturers. The commission has the authority to inspect and examine all premises in which video lottery operations are conducted and any VLTs and associated equipment, and to seize any VLTs and associated equipment. The commission may also inspect, examine, audit and seize books, records and documents relating to a licensees VLT operations.

At least $100 million must be invested by each licensee on construction and related costs, except for OTB licensees, who must invest at least $10 million each. License holders at race tracks must provide 500 additional full-time jobs; those at tourist destination facilities must provide 800 full-time jobs; those at OTBs must provide at least 200 additional full-time jobs. If licenses are issued to tourist destination facilities, the State Racing Commission is to issue OTB permits to the license holders. All video lottery licensees must endeavor to spend 14% of the total dollars spent on construction and procurement on services and goods provided by minority businesses.

Distribution of Revenue

The first allocation of revenue is for the costs of leasing, purchasing, repair, and maintenance of VLTs and associated equipment, as well as impact aid for counties where VLT facilities are located. If, at the end of the fiscal year, the proceeds from all VLTs average $250 per day per machine or less:

! up to 47% of the remaining proceeds (after the above costs) are distributed to the video lottery facility licensee;

! 9% is distributed to the purse dedication account;

! 1% is distributed to the Maryland Tourism Development Board;

! 0.5% is distributed to holders of track licenses except those who have video lottery facilities;

! the remainder (at least 42.5%) is distributed to the Education Trust Fund.

If proceeds from all VLTs exceed $250 per day per machine, the above distribution is followed for the first $250. Of the excess, no more than half, as determined by the commission, is distributed to the VLT licensees, and the remainder (at least half) is distributed to the ETF.

Education Trust Fund

A nine-member Education Trust Fund Board, chaired by the State Superintendent of Schools, is created to oversee the allocation of expenditures from the ETF. The State Superintendent of Schools is the chairman of the board. The board is required to report to the Governor and General Assembly by November 1 each year on the beginning balance and projected revenues of the fund, multi-year commitments for operating or capital purposes, and the proposed overall budget and allocation of funds for the upcoming fiscal year. The Governor may adjust the board=s proposed allocation of funds within the overall ETF budget and purposes for which the funds are designated.

Expenditures on the following programs are authorized from the fund:

! the extended elementary education program, which is an existing program providing pre-kindergarten programs to four-year olds from low-income families;

! full-day kindergarten with before and after school care for Aat risk@ children eligible for free and reduced price meals (a new program);

! technology in education, to fully fund the Maryland Plan for Technology in Education, which calls for all schools to be wired for technology and for the provision of hardware, software, and teacher training;

! the State Library Resource Center and regional resource centers, for improved library services and technology enhancements;

! the Opportunities Scholarship Fund, for scholarships of up to the full cost of University of Maryland, College Park tuition for Maryland high school graduates and college students with B averages or higher and family incomes of not more than $85,000 (a new program);

! the State=s student financial assistance programs, to reduce waiting lists for financial assistance;

and for Maryland=s public senior higher educational institutions, expenditures from the ETF may be made for:

! the Eminent Scholar Fund, to create endowed chairs;

! raising faculty salaries to the 90th percentile of their peer institutions;

! providing and maintaining information technology infrastructure.

Expenditures may also be made from the fund for the public school construction program or any other education related purpose approved by the board. The Governor is to include in each year=s proposed budget for these programs an amount not less than the amount appropriated in the prior fiscal year.

Other Revenue Uses

The Purse Dedication Account is created to enhance purses at the racetracks. Expenditures may only be made through an appropriation in the State budget or by budget amendment, and only by the following allocation: 62.3% to mile thoroughbred purses; 7.7% to the Maryland-Bred Race Fund; 26.67% to standardbred purses; and 3.33% to the standardbred race fund.

Funds distributed to the Maryland Tourism Development Board shall be expended for statewide tourism promotion, including heritage and other tourism areas. A Compulsive Gambling Fund is established, and funded by a $350 annual fee for each VLT. The fund is to be used by the Department of Health and Mental Hygiene for a 24-hour hotline for compulsive gamblers, and to provide counseling and other support services.


State Revenues: The table below shows the estimated proceeds of VLTs and their distribution for fiscal 1999, the first year of operation, through fiscal 2001, the first year in which the full allotment of VLTs would be in operation for the entire year (numbers may not add due to rounding).

Distribution of Estimated VLT Revenues

Fiscal 1999 through Fiscal 2001






FY 1999

FY 2000

FY 2001





Vendor Costs

$10,758,000

$65,443,000

$78,750,000





Impact Aid

11,742,000

29,143,000

29,725,000





VLT Licensees

48,910,000

317,408,000

383,253,000





Purse Dedication Account

9,366,000

60,780,000

73,389,000





Tourism Promotion

1,041,000

6,753,000

8,154,000





Non‑VLT Tracks

520,000

3,377,000

4,077,000





Education Trust Fund

44,227,000

287,018,000

346,558,000





Gross Proceeds

$126,563,000

$769,922,000

$923,906,000

These estimates are based on average proceeds per VLT per day of $225, and assume one-third of the VLTs are operational in February, 1999, one-third in July 1999, and the final third in January 2000. It is assumed that vendor costs would total approximately 8.5% of gross proceeds. The estimates show the maximum distribution to VLT licensees; the commission could distribute a lesser amount. If so, the difference would be credited to the ETF.

If the average proceeds per VLT per day were $300, the distribution to the ETF would be an estimated $481.8 million in fiscal 2001, and the distribution to VLT licensees would be an estimated $522.0 million.

Revenues would also increase an indeterminate amount through application, license, and other fees. The commission is to set these fees to cover the costs incurred in the regulation of VLTs. This revenue increase cannot be reliably determined at this time; the commission would set the fees by regulation.


Thursday, December 17, 1998

19981216 President Clinton explains Iraq strike

Transcript: President Clinton explains Iraq strike - December 16, 1998

MORE STORIES:. Wednesday, December 16, 1998. • Republicans skeptical of Iraq attack on eve of impeachment vote • Clinton: Iraq has abused its final chance…

Clinton Iraq 1998

http://www.cnn.com/ALLPOLITICS/stories/1998/12/16/transcripts/clinton.html

Transcript: President Clinton explains Iraq strike

CLINTON: Good evening.

Earlier today, I ordered America's armed forces to strike military and security targets in Iraq. They are joined by British forces. Their mission is to attack Iraq's nuclear, chemical and biological weapons programs and its military capacity to threaten its neighbors.

Their purpose is to protect the national interest of the United States, and indeed the interests of people throughout the Middle East and around the world.

Saddam Hussein must not be allowed to threaten his neighbors or the world with nuclear arms, poison gas or biological weapons.

I want to explain why I have decided, with the unanimous recommendation of my national security team, to use force in Iraq; why we have acted now; and what we aim to accomplish.

Six weeks ago, Saddam Hussein announced that he would no longer cooperate with the United Nations weapons inspectors called UNSCOM. They are highly professional experts from dozens of countries. Their job is to oversee the elimination of Iraq's capability to retain, create and use weapons of mass destruction, and to verify that Iraq does not attempt to rebuild that capability.

The inspectors undertook this mission first 7.5 years ago at the end of the Gulf War when Iraq agreed to declare and destroy its arsenal as a condition of the ceasefire.

The international community had good reason to set this requirement. Other countries possess weapons of mass destruction and ballistic missiles. With Saddam, there is one big difference: He has used them. Not once, but repeatedly. Unleashing chemical weapons against Iranian troops during a decade-long war. Not only against soldiers, but against civilians, firing Scud missiles at the citizens of Israel, Saudi Arabia, Bahrain and Iran. And not only against a foreign enemy, but even against his own people, gassing Kurdish civilians in Northern Iraq.

The international community had little doubt then, and I have no doubt today, that left unchecked, Saddam Hussein will use these terrible weapons again.

The United States has patiently worked to preserve UNSCOM as Iraq has sought to avoid its obligation to cooperate with the inspectors. On occasion, we've had to threaten military force, and Saddam has backed down.

Faced with Saddam's latest act of defiance in late October, we built intensive diplomatic pressure on Iraq backed by overwhelming military force in the region. The UN Security Council voted 15 to zero to condemn Saddam's actions and to demand that he immediately come into compliance.

Eight Arab nations -- Egypt, Syria, Saudi Arabia, Kuwait, Bahrain, Qatar, United Arab Emirates and Oman -- warned that Iraq alone would bear responsibility for the consequences of defying the UN.

When Saddam still failed to comply, we prepared to act militarily. It was only then at the last possible moment that Iraq backed down. It pledged to the UN that it had made, and I quote, a clear and unconditional decision to resume cooperation with the weapons inspectors.

I decided then to call off the attack with our airplanes already in the air because Saddam had given in to our demands. I concluded then that the right thing to do was to use restraint and give Saddam one last chance to prove his willingness to cooperate.

I made it very clear at that time what unconditional cooperation meant, based on existing UN resolutions and Iraq's own commitments. And along with Prime Minister Blair of Great Britain, I made it equally clear that if Saddam failed to cooperate fully, we would be prepared to act without delay, diplomacy or warning.

Now over the past three weeks, the UN weapons inspectors have carried out their plan for testing Iraq's cooperation. The testing period ended this weekend, and last night, UNSCOM's chairman, Richard Butler, reported the results to UN Secretary-General Annan.

The conclusions are stark, sobering and profoundly disturbing.

In four out of the five categories set forth, Iraq has failed to cooperate. Indeed, it actually has placed new restrictions on the inspectors. Here are some of the particulars.

Iraq repeatedly blocked UNSCOM from inspecting suspect sites. For example, it shut off access to the headquarters of its ruling party and said it will deny access to the party's other offices, even though UN resolutions make no exception for them and UNSCOM has inspected them in the past.

Iraq repeatedly restricted UNSCOM's ability to obtain necessary evidence. For example, Iraq obstructed UNSCOM's effort to photograph bombs related to its chemical weapons program.

It tried to stop an UNSCOM biological weapons team from videotaping a site and photocopying documents and prevented Iraqi personnel from answering UNSCOM's questions.

Prior to the inspection of another site, Iraq actually emptied out the building, removing not just documents but even the furniture and the equipment.

Iraq has failed to turn over virtually all the documents requested by the inspectors. Indeed, we know that Iraq ordered the destruction of weapons-related documents in anticipation of an UNSCOM inspection.

So Iraq has abused its final chance.

As the UNSCOM reports concludes, and again I quote, "Iraq's conduct ensured that no progress was able to be made in the fields of disarmament.

"In light of this experience, and in the absence of full cooperation by Iraq, it must regrettably be recorded again that the commission is not able to conduct the work mandated to it by the Security Council with respect to Iraq's prohibited weapons program."

In short, the inspectors are saying that even if they could stay in Iraq, their work would be a sham.

Saddam's deception has defeated their effectiveness. Instead of the inspectors disarming Saddam, Saddam has disarmed the inspectors.

This situation presents a clear and present danger to the stability of the Persian Gulf and the safety of people everywhere. The international community gave Saddam one last chance to resume cooperation with the weapons inspectors. Saddam has failed to seize the chance.

And so we had to act and act now.

Let me explain why.

First, without a strong inspection system, Iraq would be free to retain and begin to rebuild its chemical, biological and nuclear weapons programs in months, not years.

Second, if Saddam can crippled the weapons inspection system and get away with it, he would conclude that the international community -- led by the United States -- has simply lost its will. He will surmise that he has free rein to rebuild his arsenal of destruction, and someday -- make no mistake -- he will use it again as he has in the past.

Third, in halting our air strikes in November, I gave Saddam a chance, not a license. If we turn our backs on his defiance, the credibility of U.S. power as a check against Saddam will be destroyed. We will not only have allowed Saddam to shatter the inspection system that controls his weapons of mass destruction program; we also will have fatally undercut the fear of force that stops Saddam from acting to gain domination in the region.

That is why, on the unanimous recommendation of my national security team -- including the vice president, the secretary of defense, the chairman of the joint chiefs of staff, the secretary of state and the national security adviser -- I have ordered a strong, sustained series of air strikes against Iraq.

They are designed to degrade Saddam's capacity to develop and deliver weapons of mass destruction, and to degrade his ability to threaten his neighbors.

At the same time, we are delivering a powerful message to Saddam. If you act recklessly, you will pay a heavy price. We acted today because, in the judgment of my military advisers, a swift response would provide the most surprise and the least opportunity for Saddam to prepare.

If we had delayed for even a matter of days from Chairman Butler's report, we would have given Saddam more time to disperse his forces and protect his weapons.

Also, the Muslim holy month of Ramadan begins this weekend. For us to initiate military action during Ramadan would be profoundly offensive to the Muslim world and, therefore, would damage our relations with Arab countries and the progress we have made in the Middle East.

That is something we wanted very much to avoid without giving Iraq's a month's head start to prepare for potential action against it.

Finally, our allies, including Prime Minister Tony Blair of Great Britain, concurred that now is the time to strike. I hope Saddam will come into cooperation with the inspection system now and comply with the relevant UN Security Council resolutions. But we have to be prepared that he will not, and we must deal with the very real danger he poses.

So we will pursue a long-term strategy to contain Iraq and its weapons of mass destruction and work toward the day when Iraq has a government worthy of its people.

First, we must be prepared to use force again if Saddam takes threatening actions, such as trying to reconstitute his weapons of mass destruction or their delivery systems, threatening his neighbors, challenging allied aircraft over Iraq or moving against his own Kurdish citizens.

The credible threat to use force, and when necessary, the actual use of force, is the surest way to contain Saddam's weapons of mass destruction program, curtail his aggression and prevent another Gulf War.

Second, so long as Iraq remains out of compliance, we will work with the international community to maintain and enforce economic sanctions. Sanctions have cost Saddam more than $120 billion -- resources that would have been used to rebuild his military. The sanctions system allows Iraq to sell oil for food, for medicine, for other humanitarian supplies for the Iraqi people.

We have no quarrel with them. But without the sanctions, we would see the oil-for-food program become oil-for-tanks, resulting in a greater threat to Iraq's neighbors and less food for its people.

The hard fact is that so long as Saddam remains in power, he threatens the well-being of his people, the peace of his region, the security of the world.

The best way to end that threat once and for all is with a new Iraqi government -- a government ready to live in peace with its neighbors, a government that respects the rights of its people. Bringing change in Baghdad will take time and effort. We will strengthen our engagement with the full range of Iraqi opposition forces and work with them effectively and prudently.

The decision to use force is never cost-free. Whenever American forces are placed in harm's way, we risk the loss of life. And while our strikes are focused on Iraq's military capabilities, there will be unintended Iraqi casualties.

Indeed, in the past, Saddam has intentionally placed Iraqi civilians in harm's way in a cynical bid to sway international opinion.

We must be prepared for these realities. At the same time, Saddam should have absolutely no doubt if he lashes out at his neighbors, we will respond forcefully.

Heavy as they are, the costs of action must be weighed against the price of inaction. If Saddam defies the world and we fail to respond, we will face a far greater threat in the future. Saddam will strike again at his neighbors. He will make war on his own people.

And mark my words, he will develop weapons of mass destruction. He will deploy them, and he will use them.

Because we're acting today, it is less likely that we will face these dangers in the future.

Let me close by addressing one other issue. Saddam Hussein and the other enemies of peace may have thought that the serious debate currently before the House of Representatives would distract Americans or weaken our resolve to face him down.

But once more, the United States has proven that although we are never eager to use force, when we must act in America's vital interests, we will do so.

In the century we're leaving, America has often made the difference between chaos and community, fear and hope. Now, in the new century, we'll have a remarkable opportunity to shape a future more peaceful than the past, but only if we stand strong against the enemies of peace.

Tonight, the United States is doing just that. May God bless and protect the brave men and women who are carrying out this vital mission and their families. And may God bless America.

####



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