2003-2004 Bill 1184: Catawba Indian Tribe, Gaming - South Carolina Legislature Online

1 South Carolina General Assembly 2 115th Session, 2003-2004 3 4 S. 1184 5 6 STATUS INFORMATION 7 8 General Bill 9 Sponsors: Senators Matthews, Land, Hutto, Ravenel and Ford 10 Document Path: l:\council\bills\gjk\21174sd04.doc 11 12 Introduced in the Senate on April 21, 2004 13 Currently residing in the Senate Committee on Judiciary 14 15 Summary: Catawba Indian Tribe, gaming 16 17 18 HISTORY OF LEGISLATIVE ACTIONS 19 20 Date Body Action Description with journal page number 21 4/21/2004 Senate Introduced and read first time SJ-35 22 4/21/2004 Senate Referred to Committee on Judiciary SJ-35 23 24 25 VERSIONS OF THIS BILL 26 27 4/21/2004 28 1 2 3 4 5 6 7 8 9 A BILL 10 11 TO AMEND SECTION 27-16-110, CODE OF LAWS OF 12 SOUTH CAROLINA, 1976, RELATING TO THE CONDUCT 13 OF BINGO BY THE CATAWBA INDIAN TRIBE UNDER THE 14 CATAWBA INDIAN CLAIMS SETTLEMENT ACT AND THE 15 TERMS AND CONDITIONS RELATING THERETO, SO AS 16 TO ALSO PERMIT THE TRIBE TO CONDUCT CLASS II 17 ELECTRONIC BINGO GAMING AT A SINGLE TRIBAL 18 FACILITY LOCATED IN ORANGEBURG COUNTY AND TO 19 REPEAL ANY RIGHT OF THE CATAWBA INDIAN TRIBE 20 TO OPERATE VIDEO POKER AND SIMILAR ELECTRONIC 21 PLAY DEVICES; TO AMEND CHAPTER 16 OF TITLE 27, 22 RELATING TO THE CATAWBA INDIAN CLAIMS 23 SETTLEMENT ACT, BY ADDING SECTIONS 27-16-200 24 THROUGH 27-16-350 SO AS TO PROVIDE FOR THE 25 MANNER IN WHICH AND CONDITIONS UNDER WHICH 26 THE CATAWBA INDIAN TRIBE MAY DEVELOP AND 27 OPERATE A CLASS II ELECTRONIC BINGO FACILITY AND 28 TO PROVIDE PENALTIES FOR CERTAIN VIOLATIONS; BY 29 ADDING SECTION 11-41-175 SO AS TO PROVIDE THAT 30 THE CLASS II ELECTRONIC BINGO FACILITY OF THE 31 CATAWBA INDIAN TRIBE AUTHORIZED ABOVE IS NOT 32 ELIGIBLE FOR FUNDS UNDER THE STATE GENERAL 33 OBLIGATION ECONOMIC DEVELOPMENT BOND ACT; BY 34 ADDING SECTION 12-8-2050 SO AS TO PROVIDE THAT 35 THE CATAWBA INDIAN TRIBE AND ITS ELECTRONIC 36 BINGO FACILITY OPERATION SHALL COMPLY WITH ALL 37 APPLICABLE REPORTING AND WITHHOLDING 38 REQUIREMENTS OF THE INTERNAL REVENUE SERVICE 39 AND THE SOUTH CAROLINA DEPARTMENT OF 40 REVENUE; BY ADDING SECTION 12-10-115 SO AS TO 41 PROVIDE THAT THE CLASS II ELECTRONIC BINGO 42 FACILITY AUTHORIZED ABOVE IS NOT ELIGIBLE FOR

1 [1184] 1 1 THE JOBS TAX CREDIT UNDER THE ENTERPRISE ZONE 2 ACT OF 1995; BY ADDING SECTION 12-21-4285 SO AS TO 3 PROVIDE THAT NOTHING IN EXISTING BINGO 4 REGULATORY PROVISIONS OF LAW MAY BE DEEMED 5 TO AUTHORIZE THE STATE TO IMPOSE ANY TAX, FEE, 6 CHARGE, OR ASSESSMENT UPON THE CATAWBA INDIAN 7 TRIBE AND ITS GAMING OPERATION EXCEPT FOR 8 CHARGES EXPRESSLY AUTHORIZED PURSUANT TO 9 CHAPTER 16 OF TITLE 27; AND TO PROVIDE FOR THE 10 EFFECTIVE DATE OF THE ABOVE PROVISIONS 11 INCLUDING A REQUIREMENT FOR RATIFYING FEDERAL 12 LEGISLATION AND A REQUIREMENT THAT THE 13 EXECUTIVE COMMITTEE OF THE TRIBE FILE A 14 CERTIFICATION WITH THE SECRETARY OF STATE THAT 15 THE TRIBE HAS VOTED TO WAIVE AND DISCLAIM ANY 16 RIGHT TO OPERATE VIDEO POKER DEVICES OR TO 17 BRING LAWSUITS AGAINST THE STATE OF SOUTH 18 CAROLINA ON THIS BASIS. 19 20 Be it enacted by the General Assembly of the State of South 21 Carolina: 22 23 SECTION 1. Section 27-16-110(G) of the 1976 Code, as added 24 by Act 142 of 1993, is amended to read: 25 26 “(G) The Tribe may permit on its Reservation video poker or 27 similar electronic play devices to the same extent that the devices 28 are authorized by state law. The Tribe is subject to all taxes, 29 license requirements, regulations, and fees governing electronic 30 play devices provided by state law, except if the Reservation is 31 located in a county or counties which prohibit the devices pursuant 32 to state law, the Tribe nonetheless must be permitted to operate the 33 devices on the Reservation if the governing body of the Tribe so 34 authorizes, subject to all taxes, license requirements, regulations, 35 and fees governing electronic play devices provided by state law. 36 Notwithstanding any other provision of law, the Tribe may 37 conduct ‘Class II gaming’ as defined in this section, and in the 38 manner and subject to the restrictions in Section 27 - 16 - 200 39 through Section 27 - 16 - 350, at a single tribal facility on land in 40 Orangeburg County: 41 (1) As used in this section, ‘Class II gaming’ means any 42 game of chance known as bingo, whether or not electronic,

1 [1184] 2 1 computer, or other technologic aids are used in connection 2 therewith: 3 (a) which is played for prizes including monetary prizes 4 with printed or electronic cards bearing numbers or other 5 designations; 6 (b) in which the holder of the card covers the numbers or 7 designations when objects, similarly numbered or designated, are 8 drawn or electronically determined; and 9 (c) in which the game is won by the first person covering 10 a previously designated arrangement of numbers or designations 11 on the cards including, if played in the same location, pull - tabs and 12 other games similar to bingo. 13 (2) The term ‘Class II gaming’ does not include: 14 (a) any banking card games, including baccarat, chemin 15 de fer, or blackjack (21); or 16 (b) electronic or electron mechanical facsimiles of a game 17 of chance or slot machines of any kind. 18 (3) As used in this section, ‘electronic, computer, or other 19 technologic aids’ includes electronic bingo games, electronic 20 pull - tab dispensers, and any machine or device that assists a player 21 or the playing of a bingo game, broadens the participation levels in 22 a bingo game, facilitates communication between and among 23 bingo machines and locations over a wide area network, or allows 24 players to play a game with or against other players rather than 25 with or against a machine. 26 (4) As used in this section, ‘electronic bingo games’ means 27 bingo, played with a minimum of two players competing against 28 each other on electronic player stations that are interconnected 29 through a computer network, wherein players select and purchase 30 electronic bingo cards bearing numbers or other designations that 31 are electronically generated and stored in a central computer 32 database; the numbers or other designations are electronically 33 determined by a random number generator and transmitted to and 34 displayed on each player’s electronic player station; and the game 35 is won by the person or persons holding a card that matches the 36 game winning pattern or patterns that have been electronically 37 determined, with game results displayed in various entertaining 38 visual modes, provided that an electronic display of the bingo card 39 must appear in a section of the screen in all visual modes. 40 Electronic bingo games may include auto - play systems that allow 41 the bingo game to commence or continue if the mandatory number 42 of players required by the system are not present.

1 [1184] 3 1 (5) As used in this section, ‘electronic pull - tab dispensers’ 2 means devices which dispense pull - tabs from a roll of tabs which 3 may or may not be a part of a larger pull - tab deal. Electronic 4 pull - tab dispensers may provide the players with a choice of 5 various entertaining visual modes to accompany the game, 6 provided that a ‘verify’ feature that allows players to see the 7 results for each pull - tab shall appear in a section of the screen in 8 all visual modes after the pull - tab is dispensed, and provided 9 further that players manually shall peel back the top layer of the 10 pull - tab to confirm victory and any winning tabs dispensed by the 11 machine must be presented for in - person inspection by a gaming 12 hall clerk before the player receives payment. 13 (6) As used in this section, other examples of ‘electronic, 14 computer or other technologic aids’ includes, but are not limited 15 to, dispensers, readers, telephones, cables, televisions, screens, 16 satellites, bingo blowers, electronic player stations, electronic 17 cards for participants in bingo games, player terminals, and central 18 servers containing random number generators for remote player 19 terminals.” 20 21 SECTION 2. Chapter 16, Title 27 of the 1976 Code is amended 22 by adding: 23 24 “Section 27-16-200. The General Assembly finds: 25 (1) Orangeburg and Clarendon Counties have for many years 26 experienced unemployment levels which continue to approach or 27 exceed two hundred percent of South Carolina statewide 28 unemployment levels; 29 (2) the Department of Commerce and Orangeburg and 30 Clarendon County economic development officials, as well as the 31 political and business leaders in the town of Santee, have identified 32 tourism related business as the key to economic development and 33 job creation in Orangeburg and Clarendon Counties; 34 (3) elected officials, working together with economic 35 development officials, from Orangeburg County, Clarendon 36 County, and the town of Santee have for several years worked 37 closely with the Catawba Indian Tribe for the development of the 38 Class II electronic bingo facility to be authorized and regulated 39 under the provisions of this chapter; 40 (4) the Class II electronic bingo facility authorized and 41 regulated under the provisions of this chapter will constitute an 42 economic development and job creation project which will create 43 more than eleven hundred jobs without the appropriation of any

1 [1184] 4 1 funds by the General Assembly and without the use of any tax or 2 other special incentives; 3 (5) the Class II electronic bingo facility authorized and 4 regulated under the provisions of this chapter will generate more 5 than five million dollars in new state and local tax revenue; 6 (6) the Orangeburg County Council and Santee Town Council, 7 supported by the business community, local political leaders of the 8 Republican and Democratic political parties, and the editors of the 9 Orangeburg Times and Democrat, have voted unanimously in 10 support of the Catawba Indian Tribe’s efforts to operate a Class II 11 gaming facility near Santee in Orangeburg County. 12 (7) it is the desire and intention of the General Assembly to 13 prevent the expansion of gambling authorized by law and to 14 completely eliminate any right that the Catawba Indian Tribe may 15 have to operate video poker or similar electronic devices on the 16 Catawba Reservation in York County and the Catawba Indian 17 Tribe has agreed to forever waive any such right, to the extent such 18 right exists, upon enactment of Sections 27-16-200 through 19 27-16-350 by the General Assembly of South Carolina and 20 approval of Sections 27-16-200 through 27-16-350 by the 21 Congress. 22 23 Section 27-16-210. As used in Sections 27-16-200 through 24 27-16-350: 25 (1) ‘Class II gaming’ shall have the meaning set forth in 26 Section 27-16-110(G). 27 (2) ‘Electronic, computer, or other technologic aids’ shall have 28 the meaning set forth in Section 27-16-110(G). 29 (3) ‘Electronic bingo games’ shall have the meaning set forth 30 in Section 27-16-110(G). 31 (4) ‘Electronic pull-tab dispensers’ shall have the meaning set 32 forth in Section 27-16-110(G). 33 (5) ‘Enterprise’ means any individual, trust, corporation, 34 partnership, or other legal entity of any kind other than a tribal 35 enterprise wholly owned by the Catawba Indian Tribe; provided, 36 however, that with respect to a corporation, the term ‘enterprise’ 37 shall include each corporation or other legal entity which, directly 38 or indirectly, controls a majority of the voting interests in the 39 corporation; and further provided, that with respect to any 40 partnership, trust, or other form of unincorporated business 41 organization, the term ‘enterprise’ shall include each corporation 42 or other legal entity which, directly or indirectly, controls a 43 majority of the voting interests in the organization.

1 [1184] 5 1 (6) ‘Gaming employee’ means any natural person employed in 2 the operation or management of the single tribal gaming facility 3 referenced in Section 27-16-110(G), whether employed by the 4 Tribe or by any enterprise providing on-site services to the Tribe. 5 (7) ‘Gaming equipment’ means any machine or device which 6 is specifically designed or manufactured for use in the operation of 7 Class II gaming. 8 (8) ‘Gaming facility’ means any structure in which Class II 9 gaming is conducted. 10 (9) ‘Gaming operation’ means any enterprise operated by the 11 Tribe for the conduct of Class II gaming in any gaming facility. 12 (10) ‘Principal’ means with respect to any enterprise: 13 (a) each of its officers and directors; 14 (b) each of its principal management employees, including 15 any chief executive officer, chief financial officer, chief operating 16 officer, or general manager; 17 (c) each of its owners or partners if an unincorporated 18 business; 19 (d) each of its shareholders who owns more than ten percent 20 of the shares of the corporation if a corporation; and 21 (e) each person other than a banking institution who has 22 provided financing for the enterprise constituting more than ten 23 percent of the total financing of the enterprise. 24 (11) ‘State’ means the State of South Carolina, its authorized 25 officials, agents, and representatives. 26 (12) ‘Lottery Commission’ means the South Carolina Lottery 27 Commission or its regulatory successor. 28 (13) ‘Tribe’ means the Catawba Indian Tribe, its authorized 29 officials, agents, and representatives. 30 31 Section 27-16-220. (A) If the State authorizes a person or 32 entity, including state agencies or entities, to engage in a form of 33 gaming which was prohibited by state law off the Reservation on 34 January 1, 2004, then the Tribe shall have the right to conduct the 35 identical form of gaming at its Class II facility in Orangeburg 36 County and on the Tribe’s Reservation. In addition, the Tribe’s 37 right to operate ‘electronic bingo games’ and ‘electronic pull-tab 38 dispensers shall be deemed to be an exclusive, contractual right 39 and no other person or entity in the State, including state agencies 40 or entities, shall have the right to operate ‘electronic bingo games’ 41 and ‘electronic pull-tab dispensers’. Nothing in Sections 42 27-16-200 through 27-16-350 may be construed to affect the right

1 [1184] 6 1 of a person in this State to conduct the game of bingo to the extent 2 allowed as of March 1, 2004. 3 (B) Except as is provided by Section 27-16-110 and this 4 chapter, the Tribe shall have the right to permit or to engage in 5 gaming only to the same extent as any other person within the 6 State. 7 8 Section 27-16-230. (A) The State of South Carolina shall have 9 jurisdiction to enforce all criminal laws of the State at and within 10 the single tribal facility authorized in Section 27-16-110(G). 11 (B) Law enforcement officers of the State of South Carolina 12 must be accorded free access to any gaming facilities for the 13 purpose of maintaining public order and public safety and 14 enforcing criminal laws of the State, and personnel employed by 15 the gaming operation for such purposes shall provide state law 16 enforcement officers access to locked and secure areas of the 17 gaming facilities in accordance with the standards of maintenance 18 and operation promulgated in this chapter. 19 (C) No person under twenty-one may be admitted into a 20 gaming facility nor be permitted to engage in Class II gaming. 21 However, a person over the age of majority may be employed in 22 the gaming facility provided that he is licensed as provided in this 23 chapter. 24 (D) All payments for wagers made in Class II gaming must be 25 made by cash, cash equivalent, check, or credit card. 26 27 Section 27-16-240. (A) No person may commence or continue 28 employment as a gaming employee unless he is the holder of a 29 valid current gaming employee license issued by the Lottery 30 Commission in accordance with the provisions of this section. 31 (B) Each applicant for a gaming employee license shall submit 32 a completed license application to the Lottery Commission on 33 forms required and provided by the Lottery Commission. The 34 Gaming Operation shall certify on the application that submission 35 of the application has been approved. The gaming employee 36 license application forms shall contain the information, 37 documentation, and assurances as may be required by the Lottery 38 Commission concerning the applicant’s personal and family 39 history, personal and business references, criminal conviction 40 record, business activities, financial affairs, gaming industry 41 experience, gaming school education, and general educational 42 background. Each completed license application submitted to the 43 Lottery Commission pursuant to the provisions of this section must 1 [1184] 7 1 be accompanied by the applicant’s fingerprint cards and 2 photographs in the form as required by the Lottery Commission. 3 Promptly upon receipt of a completed license application, the 4 Lottery Commission shall forward a copy of the application to the 5 State Law Enforcement Division. 6 (C) Promptly upon receipt of an application for a gaming 7 employee license, the Lottery Commission shall request the State 8 Law Enforcement Division to cause state and federal criminal 9 record checks to be done on the applicant to determine whether the 10 applicant has a criminal history. The State Law Enforcement 11 Division may undertake such further investigation of the applicant 12 and applicant’s background as it considers appropriate and, as soon 13 as is practicable after receipt of the completed license application, 14 shall report to the Lottery Commission and the Gaming Operation 15 to the extent otherwise permitted by law on the results of such 16 investigation. 17 (D) Unless the state criminal record check undertaken by the 18 Lottery Commission within ten days of the receipt of a completed 19 application discloses that the applicant has a criminal history, or 20 unless other grounds sufficient to disqualify the applicant pursuant 21 to subsection (E) are apparent on the face of the application, the 22 Lottery Commission, upon request of the Gaming Operation, shall 23 issue a temporary gaming employee license to the applicant which 24 shall expire and become void and of no effect upon the 25 determination by the Lottery Commission of the applicant’s 26 suitability for a gaming employee license. 27 (E) The Lottery Commission, as soon as is practicable after 28 receipt of a completed license application, either shall grant or 29 deny the license. The Lottery Commission may deny a gaming 30 employee license to any applicant who has: 31 (1) been determined to be a person whose prior activities, 32 criminal record, if any, or reputation, habits, and associations pose 33 a threat to the effective regulation of gaming or create or enhance 34 the chances of unfair or illegal practices, methods, and activities in 35 the conduct of the gaming activities permitted under this chapter. 36 However, the State shall not apply standards for approval of 37 licenses pursuant to this section more rigorously than those 38 actually applied in the hiring of employees of the Lottery 39 Commission; 40 (2) failed to provide any information reasonably required to 41 investigate the application for a gaming employee license or to 42 reveal any fact material to such application, or has furnished any

1 [1184] 8 1 information which is untrue or misleading in connection with such 2 application. 3 (F) A gaming employee license issued by the Lottery 4 Commission must be effective for not more than one year and shall 5 expire on October thirty-first of each year; provided, that a 6 licensed employee who has applied for renewal may continue to be 7 employed under the expired license until final action is taken on 8 the renewal application by the Lottery Commission. Previously 9 licensed applicants or applicants for renewal shall provide 10 currently updated application material but may not be required to 11 resubmit historical data already available to the Lottery 12 Commission. No additional background investigation of an 13 applicant for renewal may be required unless new information 14 concerning the renewal applicant’s continuing suitability or 15 eligibility for a license comes to the attention of either the Lottery 16 Commission or the State Law Enforcement Division. 17 (G) The Lottery Commission or State Law Enforcement 18 Division may investigate a person who holds a gaming employee 19 license at any time, and the Lottery Commission may suspend or 20 revoke a gaming employee license issued under this chapter if new 21 information concerning facts arising either before or after the 22 issuance of the original license or a renewal of the license comes to 23 the attention of the Lottery Commission, which information would 24 justify denial of the original license, or the renewal of the license, 25 pursuant to subsection (E) of this section. However, no gaming 26 employee license may be revoked or suspended except after the 27 notice and hearing as is generally required for similar 28 administrative actions under the Administrative Procedures Act 29 applicable to agencies of the State. 30 (H) All licensed gaming employees actively employed by the 31 Gaming Operation and having access to the gaming facilities, upon 32 the commencement of their employment, must be provided with 33 identification badges in the form as required by the Lottery 34 Commission which must be displayed or carried within the gaming 35 facility, and the Tribe shall employ its best efforts to recover the 36 badges from an employee upon the termination of employment at 37 the gaming facility. 38 (I) Decisions of the Lottery Commission to deny, suspend, or 39 revoke a gaming employee license pursuant to this section, 40 following an administrative review or appeal which may be 41 permitted by the Lottery Commission in accordance with 42 procedures which it may establish, constitutes final agency action 43 subject to judicial review in the manner provided by the laws of

1 [1184] 9 1 the State for judicial review of administrative actions affecting 2 similar rights. 3 (J) The State Law Enforcement Division may investigate 4 misconduct of employees of the Gaming Operation who are not 5 gaming employees but who are employed in ancillary facilities 6 located within the same building as any gaming facility, and these 7 employees must be dismissed by the Tribe from this employment 8 upon notification by the State Law Enforcement Division that their 9 conduct in the course of their employment in the ancillary facilities 10 poses a threat to the effective regulation of gaming or creates or 11 enhances the dangers of unfair or illegal practices, methods, and 12 activities in the conduct of gaming, subject to the same rights of 13 appeal as are provided in subsection (I) above. 14 15 Section 27-16-250. (A) No enterprise may provide gaming 16 equipment to the Gaming Operation unless it is the holder of a 17 valid current gaming service registration issued by the Lottery 18 Commission in accordance with the provisions of this section. 19 (B) Each applicant for a gaming service registration shall 20 submit a completed registration application to the Lottery 21 Commission on forms required and provided by the Lottery 22 Commission. The Gaming Operation shall certify on the 23 application that submission of the application has been approved. 24 The gaming service registration application shall contain the 25 information, documentation, and assurances as may be required by 26 the Lottery Commission which shall identify all of the applicant’s 27 principals and which shall concern the applicant’s and the 28 principal’s personal and family history, personal and business 29 references, criminal conviction record, business activities, 30 financial affairs, prior gaming industry experience, and general 31 education background; all of the foregoing as may be applicable to 32 the applicant or the principal. Each completed gaming service 33 registration application submitted to the Lottery Commission 34 pursuant to the provisions of this section must be accompanied by 35 the fingerprint cards and photographs of each principal of the 36 applicant in the form required by the Lottery Commission. 37 Promptly upon receipt of a completed registration application, the 38 Lottery Commission shall forward a copy to the State Law 39 Enforcement Division. 40 (C) The Lottery Commission and the State Law Enforcement 41 Division promptly upon receipt of an application for a gaming 42 services registration shall conduct an investigation of the applicant 43 and each of its principals. The investigation shall include criminal

1 [1184] 10 1 record checks to be done on each of the applicant’s principals and 2 the other investigation of applicants and its principals as may be 3 considered appropriate by the Lottery Commission and State Law 4 Enforcement Division. The State Law Enforcement Division, as 5 soon as is practicable after receipt of the completed gaming 6 services registration application, shall report to the Lottery 7 Commission and the Gaming Operation to the extent permitted by 8 law on the results of its investigation. 9 (D) During the twelve-month period immediately following the 10 effective date of Sections 27-16-200 through 27-16-350 as 11 provided herein, an applicant for a gaming service registration that 12 is licensed to provide equipment for gaming in any other state may 13 file a completed application for gaming service registration with 14 the Lottery Commission, and upon filing of the application with 15 the Lottery Commission immediately must be issued a temporary 16 gaming service registration by the Lottery Commission pending 17 determination of the applicant’s suitability or eligibility for a 18 gaming service registration pursuant to subsection (E) of this 19 section. 20 (E) The Lottery Commission, as soon as practicable after 21 receipt of a completed application for a gaming service 22 registration, either shall grant or deny the application. The Lottery 23 Commission may deny a gaming service registration to an 24 applicant upon its determination that the applicant, or a principal 25 identified with the applicant: 26 (1) is a person or entity whose prior activities, criminal 27 record, if any, or reputation, habits, and associations pose a threat 28 to the effective regulation of gaming or create or enhance the 29 chances of unfair or illegal practices, methods, and activities in the 30 conduct of the gaming activities permitted in this chapter. 31 However, the State shall not apply standards for approval of 32 registrations pursuant to this section more rigorously than those 33 actually applied in the approval of similar licenses in gaming 34 enterprises operated or regulated exclusively by the State; or 35 (2) has failed to provide any information reasonably required 36 to investigate the application for a gaming service registration or to 37 reveal any fact material to the application or has furnished any 38 information which is untrue or misleading in connection with the 39 application. 40 (F) Any gaming services registration issued by the Lottery 41 Commission must be effective for not more than one year and shall 42 expire on October thirty-first of each year; provided, that a 43 registered enterprise that has applied for renewal may continue to

1 [1184] 11 1 provide services under the expired registration until final action is 2 taken on the renewal application by the Lottery Commission. 3 Previously registered applicants or applicants for renewal shall 4 provide currently updated application material but will not be 5 required to re-submit historical data already available to the 6 Lottery Commission. No additional background investigation of 7 an applicant for registration renewal must be required unless new 8 information concerning the renewal applicant’s continuing 9 suitability or eligibility for a license comes to the attention of 10 either the Lottery Commission or the State Law Enforcement 11 Division. 12 (G) The Lottery Commission or the State Law Enforcement 13 Division may investigate an enterprise or principal of the 14 enterprise which holds a gaming services registration license at 15 any time, and the Lottery Commission may suspend or revoke a 16 gaming services registration issued under this chapter if new 17 information concerning facts arising either before or after the 18 issuance of the original registration, or any renewal of it, comes to 19 the attention of the Lottery Commission which information would 20 justify denial of the original license, or any renewal thereof, 21 pursuant to subsection (E) of this section. However, no 22 registration may be revoked or suspended except after the notice 23 and hearing as is ordinarily required for similar administrative 24 actions under the administrative procedures applicable to agencies 25 of the State. Further, the enterprise must be entitled to any 26 payment due for services provided or goods delivered before the 27 effective date of suspension or revocation of its registration. 28 (H) Decisions of the Lottery Commission to deny, suspend, or 29 revoke a registration pursuant to this section, following an 30 administrative review or appeal which may be permitted by the 31 Lottery Commission in accordance with procedures which it may 32 establish, constitutes final agency action subject to judicial review 33 in the manner provided by the laws of the State for judicial review 34 of administrative actions affecting similar rights. 35 (I) Any enterprise filing an application for a gaming services 36 registration pursuant to this section shall pay to the Lottery 37 Commission a fee sufficient to compensate the Lottery 38 Commission for the costs of review of the registration applications. 39 Provided the maximum amount of the fee may be no more than 40 one thousand five hundred dollars for each applicant, but any 41 balance of the costs not recovered as a result of this limitation on 42 fees must be included in the assessment of costs pursuant to 43 Section 27-16-280.

1 [1184] 12 1 (J) Notwithstanding any other provision of law, the Tribe’s 2 right to contract with a person, corporation, partnership, limited 3 partnership, limited liability company, or other entity for the 4 purpose of developing, owning or operating a facility or facilities 5 for gaming authorized by Section 27-16-110(G) may not be 6 impaired. Provided, an enterprise which provides goods or 7 services to a Gaming Operation other than gaming equipment in a 8 total amount exceeding the sum of one hundred thousand dollars in 9 a single twelve-month period must be identified by the Tribe to the 10 Lottery Commission and shall agree to cooperate with the Lottery 11 Commission and the State Law Enforcement Division in an 12 investigation considered necessary by either the agency relative to 13 the fitness of the enterprise to engage in business with a gaming 14 operation, or relative to the conduct of the enterprise in connection 15 with the activity. The Lottery Commission may bar the enterprise 16 from providing goods or services to the Gaming Operation upon a 17 determination that the enterprise or a principal thereof is a person 18 or entity whose prior activities, criminal record, if any, or 19 reputation, habits, and associations pose a threat to the effective 20 regulation of gaming or create or enhance the dangers of unfair or 21 illegal practices, methods, and activities in the conduct of gaming. 22 However, the enterprise may appeal the determination in the 23 manner provided pursuant to subsection (H). The provisions of 24 subsection (J) shall not apply to: 25 (1) persons providing professional, legal, and accounting 26 services; 27 (2) institutional brokers, investment banks, investment 28 advisors, or placement agents providing underwriting, placement, 29 investment management or financial advisory services to or for the 30 benefit of the gaming enterprise; 31 (3) institutional lenders or mutual funds or publicly held 32 companies purchasing, either directly or indirectly, bonds, notes, 33 participations, or other tangible or intangible interests in financing 34 provided to or for the benefit of the gaming enterprise; and 35 (4) persons purchasing, either directly or indirectly, bonds, 36 notes, participations, or other tangible or intangible interests in 37 financing provided to or for the benefit of the gaming enterprise 38 from entities described in item (3). 39 40 Section 27-16-260. (A) The Gaming Operation shall adopt 41 standards of operation and management to govern all Class II 42 gaming that are consistent with this chapter. These standards shall 43 protect the public interest in the integrity of Class II gaming and

1 [1184] 13 1 shall reduce the dangers of unsuitable, unfair, or illegal practices 2 and methods and activities in the conduct of gaming. 3 (B) The following additional standards shall apply to the 4 operation of Class II gaming: 5 (1) the Gaming Operation shall exclude persons from the 6 gaming facility whose criminal history or association with career 7 offenders or career offender organizations poses a threat to the 8 integrity of the Class II gaming facility. The Gaming Operation 9 shall employ its best efforts to exclude these persons from entry 10 into its gaming facilities. The Gaming Operation also shall 11 exclude persons engaging in disorderly conduct or other conduct 12 jeopardizing public safety in the gaming facility; 13 (2) the Tribe shall require the audit of the gaming activities 14 of the Gaming Operation, not less than annually, by an 15 independent certified public accountant, in accordance with the 16 auditing and accounting standards of the American Institute of 17 Certified Public Accountants for audits of similar gaming 18 facilities. 19 20 Section 27-16-270. Whenever in this chapter it is provided that 21 decisions of state administrative actions may be appealed in the 22 manner provided for appeal of agency actions subject to judicial 23 review, if the Administrative Law Judge Division or a court lacks 24 jurisdiction to entertain the appeal, then the action must be subject 25 to appeal to an arbitrator designated in accordance with the 26 procedures of the American Arbitration Association. The 27 procedures for the arbitration must be governed by the rules of the 28 American Arbitration Association. The arbitration must be 29 decided in accordance with the provisions of this chapter and, to 30 the extent consistent with the provisions of this chapter, in 31 accordance with the principles generally applicable under South 32 Carolina law relating to the review of final administrative 33 decisions subject to judicial review. 34 35 Section 27-16-280. (A) The Lottery Commission annually shall 36 make an assessment sufficient to compensate the State for the 37 reasonable and necessary costs of regulating gaming operations 38 and conducting law enforcement investigations pursuant to this 39 chapter. The assessment must be net of fees received with respect 40 to the submission of gaming service enterprise registrations 41 pursuant to Section 27-16-250. 42 (B) By August first, annually, the Lottery Commission shall 43 render to the Tribe a statement of the total cost of regulation and

1 [1184] 14 1 law enforcement for the preceding fiscal year ending June thirtieth, 2 together with proposed assessments for the forthcoming fiscal year 3 based on the preceding fiscal year cost, except that in the first year 4 after the effective date of Sections 27-16-200 through 27-16-350, 5 the assessment must be prospective and based upon a pro rata 6 allocation of costs, and must be established following consultation 7 with the Tribe. On September first annually, the State, after 8 receiving any objections to the proposed assessments and making 9 the changes or adjustments as may be indicated, shall assess the 10 Tribe for the costs of regulation and law enforcement. The Tribe 11 shall thereafter make a payment representing one-third of the 12 assessment within a twenty-day period, and thereafter payments on 13 January first and April first annually. The payments must be 14 deposited with the State Treasurer. The monies deposited must be 15 credited to the Lottery Commission and must be accounted for, as 16 the State considers appropriate. 17 (C) If the Tribe is aggrieved because of an assessment levied 18 pursuant to this chapter, within one month from the time provided 19 for the payment of the assessment, it may appeal from the 20 assessment to the court of common pleas for Orangeburg County. 21 Notice of the appeal must be served on the Lottery Commission in 22 the same manner, as is required in case of a summons in a civil 23 action. 24 (D) If the total assessment paid by the Tribe during a fiscal year 25 of the State exceeds the reasonable and necessary costs of 26 regulating gaming operations and conducting law enforcement 27 investigations pursuant to this chapter during that fiscal year, then 28 the State shall adjust the assessment for the succeeding fiscal year 29 in the amount necessary to offset the excess assessments. If the 30 Tribe is aggrieved because of any failure by the State to make such 31 an adjustment, any claim for the adjustment must be presented in 32 the appeal of the assessment as provided in subsection (C). 33 34 Section 27-16-290. (A) The Gaming Operation shall prepare a 35 plan for the protection of public safety and the physical security of 36 patrons in each of its gaming facilities, following consultation and 37 agreement with the State Law Enforcement Division. The Gaming 38 Operation also shall provide the Lottery Commission with copies 39 of its floor plans and surveillance systems for each gaming facility 40 and confer with the Lottery Commission regarding the adequacy of 41 the plans and systems. 42 (B) The Lottery Commission shall have the authority to inspect 43 the Gaming Operations in order to determine whether such

1 [1184] 15 1 operations are conducted in compliance with the provisions of this 2 chapter, and for that purpose personnel employed by the Lottery 3 Commission shall have access to all areas of the gaming facilities 4 without prior notice for the purpose of audits of the Gaming 5 Operations, and personnel employed by the Gaming Operation for 6 such purposes shall provide the state personnel access to locked 7 and secure areas of the gaming facilities in accordance with the 8 standards of maintenance and operation promulgated pursuant to 9 this chapter. The state personnel shall report to the Lottery 10 Commission regarding any failure by the Gaming Operation to 11 comply with any of the provisions of this chapter. Personnel 12 employed by the Lottery Commission may not interfere with the 13 conduct of the Gaming Operation except as may be required to 14 perform the review functions. Auditors employed by the Lottery 15 Commission shall have unfettered access during ordinary hours of 16 operation to inspect and copy all records including computer log 17 tapes of the Gaming Operation. However, all records of the 18 Gaming Operation which are obtained by the Lottery Commission 19 are considered confidential and proprietary financial information 20 belonging to the Gaming Operation and must be protected from 21 public disclosure by the State without the express written consent 22 of the Gaming Operation. The Lottery Commission may conduct 23 the investigations and may employ subpoena powers with which it 24 may be vested under the laws of the State, as it considers 25 appropriate to investigate violations of this chapter with respect to 26 the Gaming Operation. 27 (C) If the Lottery Commission determines that the Gaming 28 Operation is not in compliance with the provisions of this chapter, 29 the Lottery Commission shall deliver a notice of noncompliance to 30 the Tribe and the Gaming Operation setting forth the nature of the 31 noncompliance and the action required to remedy the 32 noncompliance. If the Gaming Operation fails to comply with any 33 provision of this chapter following receipt of a valid notice from 34 the Lottery Commission requesting correction of such 35 noncompliance, the United States District Court for the District of 36 South Carolina shall have jurisdiction over any cause of action 37 initiated by the Lottery Commission to enjoin a Class II gaming 38 activity conducted in violation of this chapter. The Tribe hereby 39 waives any defense which it may have by virtue of its sovereign 40 immunity from suit with respect to any such action in the United 41 States District Court for the District of South Carolina to enforce 42 the provisions of this chapter and consents to the exercise of 43 jurisdiction over the action and over the Tribe by the United States

1 [1184] 16 1 District Court for the District of South Carolina with respect to the 2 actions to enforce the provisions of this chapter. 3 4 Section 27-16-300. The ordinances of the Tribe governing Class 5 II gaming activities provide that net revenues from these gaming 6 activities are not to be used for purposes other than: 7 (1) to fund tribal government operations or programs; 8 (2) to provide for the general welfare of the Indian tribe and its 9 members; 10 (3) to promote tribal economic development; 11 (4) to donate to charitable organizations; or 12 (5) to pay for the actual costs of operations of state, county, 13 and local governmental agencies required as a result of the conduct 14 of Class II gaming in Orangeburg County. 15 16 Section 27-16-310. (A) The terms and conditions of this chapter 17 may not be modified, amended, or otherwise altered except in the 18 manner set forth by Title 25, Section 941m(f), of the United States 19 Code. 20 (B) Nothing in this chapter may be deemed to authorize the 21 State to regulate in any manner the government of the Tribe or to 22 interfere in any manner with the Tribe’s selection of its 23 governmental officers. No licensing or registration requirement 24 contemplated by this chapter may be applicable to the officers with 25 respect to their capacity as officers of the Tribe. 26 27 Section 27-16-320. If any section or provision of this chapter is 28 held invalid, or its application to a particular activity held invalid, 29 it is the intent of the parties that the remaining sections of the 30 chapter and the remaining applications of the section or provision 31 shall continue in full force and effect. 32 33 Section 27-16-330. Nothing in this chapter may be construed to 34 allow video poker play and all prohibitions regarding video poker 35 in Sections 12-21-2710, 16-19-40, and 16-19-50 apply. 36 37 Section 27-16-340. The State of South Carolina and the Tribe 38 waive sovereign immunity and Eleventh Amendment immunity to 39 a lawsuit by each other in state or federal court to enforce the 40 provisions of this chapter. 41

1 [1184] 17 1 Section 27-16-350. Nothing in this chapter may be deemed to 2 expand or contract the rights, obligations, and responsibilities of 3 the South Carolina Education Lottery.” 4 SECTION 3. Chapter 41, Title 11 of the 1976 Code is amended 5 by adding: 6 7 “Section 11-41-175. The Class II electronic bingo facility 8 authorized and regulated under Chapter 16 of Title 27 is not 9 eligible for funds under the State General Obligation Economic 10 Development Bond Act.” 11 12 SECTION 4. Chapter 8, Title 12 of the 1976 Code is amended by 13 adding: 14 15 “Section 12-8-2050. The Catawba Indian Tribe and its gaming 16 operation conducted under the authority of Chapter 16 of Title 27 17 shall comply with all applicable reporting and withholding 18 requirements of the Internal Revenue Service and the South 19 Carolina Department of Revenue and shall maintain accurate 20 records of all these reports and returns, and shall implement 21 policies and procedures adequate to assure compliance with these 22 obligations.” 23 24 SECTION 5. Chapter 10, Title 12 of the 1976 Code is amended 25 by adding: 26 27 “Section 12-10-115. The Class II electronic bingo facility 28 authorized below and regulated under Chapter 16 of Title 27 is not 29 eligible for the jobs tax credit under the Enterprise Zone Act of 30 1995.” 31 32 SECTION 6. Chapter 21, Title 12 of the 1976 Code is amended 33 by adding: 34 35 “Section 12-21-4285. Nothing in this Article 24 or in any 36 other provision of law may be deemed to authorize the State to 37 impose any tax, fee, charge, or assessment upon the Catawba 38 Indian Tribe and its Gaming Operation conducted under the 39 authority of Chapter 16 of Title 27 except for charges expressly 40 authorized pursuant to Chapter 16 of Title 27. However, nothing 41 in Chapter 16 of Title 27 shall relieve the Gaming Operation of the 42 obligation to pay ordinary and customary taxes as otherwise would 43 be required of a similarly situated entity.” 1 [1184] 18 1 2 SECTION 7. This act takes effect upon approval by the 3 Governor, approval of ratifying legislation by the Congress of the 4 United States, and upon the Executive Committee of the Tribe 5 filing a certification with the South Carolina Secretary of State that 6 the Executive Committee of the Tribe has voted to waive, release, 7 and forever disclaim any right to operate video poker devices or to 8 bring lawsuits against the State of South Carolina or any officials 9 of the State of South Carolina based in whole or in part on the 10 refusal of the State or any of its officials to permit the Tribe to 11 operate video poker devices on or off the Reservation. 12 ----XX---- 13

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