2006 Louisiana Laws - RS 27:306 — State license qualifications; limitations; right to hearing

§306.  State license qualifications; limitations; right to hearing

A.(1)  The legislature hereby recognizes the importance of a controlled gaming industry to the development of the economy of the state of Louisiana.  The legislature further recognizes that the success and growth of gaming are dependent upon public confidence and trust that gaming activities and particularly video draw poker gaming activities are conducted honestly and are free from criminal and corruptive elements.  The state of Louisiana has a legitimate interest in providing strict regulation of all persons, practices, associations, and activities related to the operation of licensed establishments licensed to offer video draw poker devices, and the manufacture, supply, or distribution of video draw poker gaming devices and supplies, in order to maintain public confidence and trust in the video draw poker gaming industry.  The legislature hereby finds that the types of establishments which may place video draw poker devices at their licensed establishments each possess unique features, some of which are volume of business, number of establishments, and hours required of the division to insure suitability prior to licensing.  Therefore, in order to provide the most effective regulation and control of the video draw poker gaming industry, it is necessary to develop three categories of licenses which may be issued to qualified establishments for the privilege of operating video draw poker devices.

(2)(a)  A person who has been granted a Class A-General retail permit or a Class A-Restaurant permit, as defined in Part II of Chapter 1 or Part II of Chapter 2 of Title 26 of the Louisiana Revised Statutes of 1950, to sell alcoholic beverages for consumption on the premises of a restaurant, bar, tavern, cocktail lounge, club only, or such an establishment located within a motel or hotel only may be granted a license for the placement of not more than three video draw poker devices in his licensed establishment.

(b)  A person who is the owner of more than one restaurant, bar, tavern, cocktail lounge, or club which is located within a single building or structure, and who has been granted a Class A-General retail permit or a Class A-Restaurant permit, as defined in Part II of Chapter 1 or Part II of Chapter 2 of Title 26 of the Louisiana Revised Statutes of 1950, to sell alcoholic beverages for consumption on the premises of each such facility, may make available for play not more than three video draw poker devices at each separate facility, not to exceed a total of nine video draw poker devices for the single building or structure, if that person and each facility complies with all other requirements of this Chapter and of the administrative rules that are applicable to the operation of video draw poker devices.  The limitation on the number of facilities contained in this Subparagraph shall not apply to any person or entity who owns and operates multiple facilities which are located in a publicly owned and operated transportation facility offering any transportation to interstate and international destinations.

(c)  For purposes of Subparagraph (b) of this Paragraph, a person shall be deemed to own more than one restaurant, bar, tavern, cocktail lounge, or club located within a single building or structure when the person has an ownership interest in each restaurant, bar, tavern, cocktail lounge, club, or other facility located within the single building or structure.

(d)  Except as provided in Subparagraph (b), (c), or (e) of this Paragraph, when a restaurant, bar, tavern, cocktail lounge, or club is owned by one person, each establishment shall be physically separate and noncontiguous in order to qualify for a license to operate video draw poker devices at each such establishment.

(e)  A licensee owning or leasing a licensed establishment which is a hotel or motel which has more than one lounge or facility and which has a Class A-General retail permit or a Class A-Restaurant permit, as defined in Part II of Chapter 1 or Part II of Chapter 2 of Title 26 of the Louisiana Revised Statutes of 1950, to sell alcoholic beverages for on-premises consumption on a single licensed premises may make available for play not more than three video draw poker devices at each lounge or separate facility, not to exceed a total of twelve video draw poker devices for the hotel or motel, if all other requirements of this Chapter are met.  Each separate lounge or facility shall meet the following criteria:

(i)  It must be a physically separate noncontiguous facility.

(ii)  It must have separate and independent beverage preparation areas.

(iii)  It must prepare, dispense, and sell alcoholic beverages for on-premises consumption.

(iv)  It must have a person whose primary duty is tending bar on duty while the lounge or facility is open for business and have a permanently affixed wet bar facility including plumbing and sinks.

(v)  It must be able to accommodate a minimum of twenty-five patrons.

(3)  A person owning a Louisiana State Racing Commission licensed pari-mutuel wagering facility or an offtrack wagering facility may be granted a license for the placement of video draw poker devices in his facility if all other requirements of this Chapter are met.  There shall be no limit on the number of video draw poker devices which may be placed at the facility.  Notwithstanding any provision of law to the contrary, video draw poker devices in these facilities may schedule games with no minimum wager.

(4)(a)  A person owning a qualified truck stop facility may be granted a license for the placement of not more than fifty video draw poker devices in his facility based on the fuel sales as provided in Subparagraph (b) of this Paragraph, in an area separated for adult patronage only, if all other requirements of this Chapter are met.  There shall be only one license granted for the operation of video draw poker devices at each qualified truck stop facility.

(b)  The number of video draw poker devices placed at a qualified truck stop facility shall be based on the average monthly fuel sales as follows:

(i)  One hundred thousand gallons of fuel of which forty thousand gallons are diesel - not more than fifty devices.

(ii)  Seventy-five thousand gallons of fuel of which thirty thousand gallons are diesel - not more than forty devices.

(iii)  Fifty thousand gallons of fuel of which ten thousand are diesel - not more than thirty-five devices.

(c)  As used in this Section a qualified truck stop facility shall mean a facility covering at least five developed contiguous acres which sells fuel, lubricating oil, and other vehicular merchandise, such as batteries, tires, or vehicle parts for eighteen-wheel tractor-trailers, and which also meets all of the following criteria:

(i)  It must be located adjacent to a major state or interstate highway, as defined by the division through rules and regulations adopted by the division for this purpose, subject to legislative oversight.

(ii)  It must have an on-site restaurant, except for reason of force majeure affecting the ability to maintain the on-site restaurant for a reasonable period of time as determined by the division following the interruption of such ability, which for the purposes of qualifying as a qualified truck stop facility, shall be required to have only the following features:

(aa)  Provides seating for at least fifty patrons.

(bb) Provides full table service for sit-down meals.

(cc)  Is open at least twelve hours a day.

(dd)  Offers a varied menu.

(ee)  Operates a fully equipped kitchen which includes but is not limited to a range, an oven, and refrigerated storage appliances used for the preparation of foods for on-premises or immediate consumption.

(iii)  It must have parking areas with each of the following:

(aa)  A stable parking area for at least fifty eighteen-wheel tractor-trailer motor vehicles, either paved or concrete, to support eighteen-wheel tractor-trailer motor vehicles and their loads, constructed according to industry specifications, subject to approval by the division.  All other parking areas not paved or concrete must be certified by an authorized company and proof provided that compaction tests were conducted, subject to approval by the division.

(bb)  Parking of sufficient size is allowed for safe ingress and egress.

(cc)  Parking areas for other vehicles around business entrance ways and exits shall not constitute parking areas for eighteen-wheel tractor-trailer motor vehicles.

(iv)  It must have diesel and gasoline fuel facilities.  The fuel facility shall offer, in the regular course of business, fuel sales for individual vehicle consumption.  Bulk sales or transfers shall not be used to calculate monthly averages.  All fuel sales must correspond to state-accepted daily sales reports which correspond to monthly state sales tax reports and shall be verified by fuel tickets from the truck stop facility.  To be considered a fuel facility at a qualified truck stop facility for the purpose of licensing that qualified truck stop to operate video draw poker devices, the fuel facility shall not be subject to the fuel sales requirements provided for in Subpart E of Part VIII of Chapter 1 of Title 51 of the Louisiana Revised Statutes of 1950, comprised of R.S. 51:421 through 427, and the requirements of Chapter 13 of Title 51 of the Louisiana Revised Statutes of 1950, comprised of R.S. 51:1401 through 1419.*  The provisions of this Item provide for the fuel sales requirements for the purpose of licensing criteria for the operation of video draw poker devices at a qualified truck stop facility.  The provisions of this Item shall not be construed to repeal, limit, or supersede any requirements for the sale of fuel by fuel facilities as otherwise provided for by law.  The provisions of this Item shall not be construed to repeal, limit, or supersede the authority of the office of the attorney general to enforce the Unfair Trade Practices or Consumer Protection Law or the authority of any district attorney to prosecute violations of Subpart E of Part VIII of Chapter 1 of Title 51 of the Louisiana Revised Statutes of 1950, comprised of R.S. 51:421 through 427.

(v)  It must have on-site repair service facilities for eighteen-wheel tractor-trailer motor vehicles.  The on-site repair service may be in the form of contracted services from a business which regularly offers this type of service.  A copy of any contractual agreement shall be submitted for approval to the division for review and processing.

(vi)  It must have at least four of the following amenities, except for reason of force majeure affecting the ability to maintain the amenities for a reasonable period of time, as determined by the division following the interruption of such ability:

(aa)  A separate truckers' television lounge.

(bb)  A full-service laundry facility located in a convenient area for truckers' use.

(cc)  Private showers for men and women and not located in an area open to general public restroom facilities.

(dd)  A travel store with items commonly referred to as truckers' supplies (items commonly used only by commercial motor vehicles).

(ee)  Truck scales.

(ff)  Separate truckers' telephones.

(gg)  Permanent storage facilities for fuel.

(vii)  It must have an area separated for adult patronage only.

(d)(i)  The criteria and amenity requirements for a qualified truck stop facility provided for by this Paragraph shall be suspended for that criteria or amenity if any portion of the property upon which a qualified truck stop is located is expropriated by the state of Louisiana or one of its political subdivisions.  The suspension for that criteria or amenity shall remain in effect until such time as it is possible for the licensee to meet the requirements of this Paragraph. During the period of suspension the licensee may continue to operate video draw poker devices without meeting the requirements for that particular criteria or amenity affected by the expropriation as otherwise provided for by this Paragraph if all other provisions of this Chapter are met.

(ii)  The provisions of this Subparagraph shall not be construed to adversely affect parish boundary surveys or good faith reliance upon those surveys as provided for in R.S. 27:325.

(5)(a)  The qualified truck stop facility shall be owned or leased by a person who meets all the personal qualifications for a Class A-General retail permit or a Class A-Restaurant permit, as defined in Part II of Chapter 1 or Part II of Chapter 2 of Title 26 of the Louisiana Revised Statutes of 1950, to serve or sell alcoholic beverages for on-premises consumption. However, when no such permit is obtainable or available, no such permit shall be required.

(b)  An owner or lessor of a qualified truck stop facility may lease or sublease any restaurant, convenience store, fuel facility, or any other business operation located on the premises of the qualified truck stop facility to another person, provided that such person executes a written lease which contains a requirement that the lessee or sublessee comply with the laws and regulations which govern the operation of video draw poker devices.  If such lease or sublease is granted, the owner or lessor of such qualified truck stop facility shall maintain ultimate supervision and control of his entire truck stop premise.  No such lessee or sublessee shall be required to meet suitability requirements unless he receives, as a result of the lease, any video draw poker device operation revenue or unless he exercises some management or control over video draw poker devices.  Any violation of the laws and regulations which govern the operation of video draw poker devices by such lessee or sublessee shall be considered a violation by the licensee.  No financial lending institution or pawnshop shall be located on the premises of a qualified truck stop facility.  Nothing herein shall prohibit the placement of automatic teller machines on the premises of a qualified truck stop.

(c)  Any licensee who has leased or subleased a restaurant or convenience store prior to August 15, 1997, which lease does not meet the requirements provided in Subparagraph (b) of this Paragraph shall have until June 30, 1998, to comply with such provisions.

(d)  Repealed by Acts 2004, No. 918, §3.

(6)(a)  Any person applying for a license for the placement of video draw poker devices at a truck stop facility shall have, prior to any required re-zoning, construction application, or construction of the truck stop which the applicant seeks to establish as a qualified truck stop facility, publish a notice of his intention to build a truck stop that may qualify for a license to operate video draw poker devices as a qualified truck stop facility.

(b)  The notice shall be published on two separate days in the official journal of the parish where the facility is to be located and in another newspaper with a larger circulation within the parish than the official journal of the parish, if there is one.  All costs associated with publication of this notice shall be borne by the person seeking application for a licensed truck stop facility.

(c)  Requirements for the notice required in this Paragraph shall be prescribed by the Louisiana Gaming Control Board, which requirements shall include:

(i)  Prominent placement in the newspaper in a section other than the classified advertisement or public notice section.

(ii)  Formatting in a box with a bolded outline.

(iii)  A size of not less than two inches by four inches.

(iv)  Print in bold face type.

(v)  The additional publications in the official journal as required by this Subparagraph shall be provided by the official journal at a charge not in excess of the rates assessed and charged for regular commercial advertising.

(vi)  Failure to timely accomplish such publication shall make an application for a licensed truck stop null, void, and of no effect until the person seeking application has fully complied with the requirements of advertising pursuant to this Paragraph.

(vii)  Each person required to publish public notice pursuant to this Paragraph shall also provide notice to the local governing authority in its parish or district as the case may be.

(d)  In addition to the requirements for publication provided for in this Paragraph, the person seeking application shall issue a press release to newspapers with substantial distribution within the parish where the facility is to be located and to area broadcast media.

(7)(a)  Any person applying for a truck stop facility license must meet all requirements provided by this Chapter and must have fuel sales reports and verifiable fuel tickets which indicate average fuel sales of sufficient gallons, as required by this Chapter, for the ninety days immediately prior to licensing.

(b)  If after a qualified truck stop facility is licensed and an initial determination has been made to authorize the placement and operation of devices at the facility based upon the average of the fuel sales reports for three months, and the qualified truck stop facility thereafter becomes unable to sell a sufficient number of gallons of fuel to permit the minimum number of devices to be operated at the facility, for reasons of force majeure or due to other noncommercial circumstances, such as road or other governmental construction projects contiguous to, or otherwise directly affecting the fuel sales of the qualified truck stop facility as determined by the division, the facility shall continue to be authorized to place and operate the number of devices based upon the last average calculation of monthly fuel sales reports prior to the interruption in the fuel sales. Upon resolution of the reasons causing the reduction in fuel sales, the division shall use the next three months of monthly fuel sales reports to determine the number of devices authorized to be placed and operated at the facility.

(8)  Notwithstanding any other provision of law to the contrary, a licensed establishment located at a public or private golf course licensed to operate video draw poker devices pursuant to the provisions of this Chapter prior to January 1, 2004, issued a Class A-Restaurant-Conditional permit issued pursuant to the authority granted in R.S. 26:71.1(4)(d) shall be authorized to continue to operate video draw poker devices, provided that the licensee of such a licensed establishment maintains continuous suitability and meets all other licensing criteria required by the provisions of this Chapter.

(9)  No license shall be granted for the establishment of a qualified truck stop facility at a location that requires or required re-zoning to accommodate the establishment of the facility unless any signage required to be posted under the re-zoning requirements in the parish contains in clear and easily readable form the information that the re-zoning is proposed for consideration to provide for the establishment of a qualified truck stop facility.

B.  Each applicant for a license shall on the application form disclose to the division any present or previous experience or involvement as an owner or operator of gambling devices and establishments as defined by the division.  Present or previous experience or involvement includes:

(1)  Controlling of gambling devices as an owner or operator.

(2)  Employment with the owner or operator of gambling devices.

(3)  Employment in establishments where gambling is offered to the public.

(4)  Conviction of violation of federal, state, or local gambling laws in any jurisdiction.

C.(1)  A licensee may not have on the premises or make available for play on the premises of his licensed establishment more video draw poker devices than as provided in Subsection A of this Section.

(2)(a)  Notwithstanding any provision of law to the contrary, no license shall be granted to any truck stop facility located at the time application is made for a license to operate video draw poker devices, within five hundred feet of any property that is on the National Historic Registry, any public playground, or a building used exclusively as a church, synagogue, public library, or school.

(b)  In municipalities and in unincorporated areas which are divided into subdivisions with streets, blocks, and sidewalks, this distance shall be measured as a person walks using the sidewalk from the nearest point of the property line of the property on the National Historic Registry, public playground, church, synagogue, public library, or school to the nearest point of the premises to be licensed.

(c)  Outside of municipalities and unincorporated areas which are not divided into subdivisions with streets, blocks, or sidewalks, the measurement of this distance shall be  a straight line from the nearest point of the truck stop facility to the nearest point of the church, synagogue, or school.

(3)  The prohibitions in Paragraph (2) of this Subsection do not apply to any truck stop licensed for the placement of video draw poker devices for a period of one year or longer prior to July 1, 1994.  The subsequent construction, erection, development, or movement of a property on the National Historic Registry, public playground, church, synagogue, public library, or school which causes the truck stop facility to be located within the prohibited distance shall not be cause for revocation, withholding, denial, or nonrenewal of a license. The subsequent construction, erection, development, or movement of a property on the National Historic Registry, public playground, church, synagogue, public library, or school following the application for a license to operate video draw poker devices at a truck stop facility and the granting of that license which causes the truck stop facility to be located within the prohibited distance shall not be cause for the revocation, withholding, denial, or nonrenewal of a license.

D.(1)  If the lease of a truck stop facility, which is a licensed establishment for the operation of video draw poker devices, expires or is terminated without legal cause by the lessor, then, in either event, neither the lessor nor a new lessee shall have the right to apply for a video draw poker device license at the same truck stop location for a period of six years from the date of expiration or termination of the lease.

(2)  The former lessee/licensee shall have any of the following rights:

(a)  To continue operations at the licensed facility by agreement with the lessor or the new lessee.

(b)  To transfer the existing license to any other new or existing truck stop facility which meets all of the qualifying requirements contained in this Chapter, except:

(i)  That such former lessee/licensee shall not be required to wait before making application and commencing video draw poker operation at a new or existing facility.

(ii)  That such former lessee/licensee shall be required to perform at the new facility any existing sublease or other contracts with licensed device owners/operators in effect at the time of expiration or termination of the lease.

(3)  Nothing herein shall affect or apply to any truck stop facility in which the lessor is the holder of the license for the operation of video poker devices.

E.(1)  When a licensed establishment which requires an alcoholic beverage license as a condition of the receipt of a video draw poker device license is sold or transferred, the video gaming devices shall be allowed to continue to operate if the new owner applies for a state Class "A" license within fifteen days of purchasing the business, and upon issuance of a state Class "A" license, the new owner applies for a video draw poker license within fifteen days.

(2)  The video draw poker devices shall be allowed to be continued in operation under the old license until the issuance of a video draw poker license in the name of the owner, until any of the following occur:

(a)  A determination by the division that the new applicant is unsuitable.

(b)  Denial of the new license application.

(c)  The passage of one hundred eighty days from submission of the application to the division.  The provisions of this Subparagraph shall not apply to new owner applicants for a video draw poker license who are licensed at the time of such application.  However, if the applicant fails to provide requested information to the division in a timely manner, the devices may be disabled after one hundred eighty days have elapsed.

(3)  The division shall adopt and promulgate rules to implement this Subsection.

(4)  All establishment licensees shall within five days of the change in ownership notify the division, in writing, of any facts which indicate that the licensed establishment has had a change in ownership.  This notification requirement shall only apply to device owners when they have been given notice by certified mail of the change in ownership.  The device owner when given notice by certified mail of the change in ownership shall notify the division within five days of receipt of the notice of the change in ownership of the licensed establishment.

F.(1)  Each applicant for a license or renewal of a license shall provide to the division in addition to the  application form a signed sales tax clearance from the secretary of the Department of Revenue, which clearance request shall be processed within seven business days.

(2)  No license shall be granted to any applicant unless he has submitted proof to the division, as required by Paragraph (1) of this Subsection, that he does not owe the state or local governing authority of the parish or municipality in which the establishment is located any delinquent sales taxes, penalties, or interest, excluding items under formal appeal or protest as provided by law.

G.  When an applicant for a license files its application with the division, the applicant shall send notice with a copy of the application to the local governing authority and submit evidence of the notification to the division.

H.(1)  Prior to the expiration of the license term, a licensee who is licensed under the provisions of this Chapter for the placement of not more than three video draw poker devices in an approved, qualified establishment shall apply for renewal of the license by completing an affidavit in a form approved by the Louisiana Gaming Control Board that certifies that there have been no changes in the prior qualification and suitability information previously furnished to the board.  This affidavit shall be executed by the licensee and each person required to meet qualification and suitability requirements under R.S. 27:310, provided that the licensee or person previously submitted all information required by the board in its initial suitability determination. Notwithstanding the above, the licensee and all persons required to meet suitability shall furnish such releases, affidavits, and documents as may be required by the board.  Additionally, the licensee shall furnish with each renewal application all of the following:

(a)  A current local sales tax clearance certificate.

(b)  A current local governing authority and taxing authority notification.

(c)  A current state sales tax clearance certificate.

(d)  A Class A-General retail permit or a Class A-Restaurant permit, as defined in Part II of Chapter 1 or Part II of Chapter 2 of Title 26 of the Louisiana Revised Statutes of 1950, to sell alcoholic beverages for consumption on the premises.

(2)  Failure to disclose changes in prior qualification and suitability information shall result in denial of the renewal application or revocation of the video draw poker gaming license.

(3)(a)  It shall be unlawful for any person intentionally to submit a false affidavit under this Subsection or to make or cause to be made or aid, assist, or procure another to make or submit a false affidavit.

(b)  Whoever is convicted of violating the provisions of this Subsection shall be imprisoned, with or without hard labor, for not more than ten years or be fined not more than ten thousand dollars, or both.

(4)  The provisions of this Subsection shall not apply to, and affidavits shall not be used for renewal of, a license for the operation of video draw poker devices at a hotel or motel, a Louisiana State Racing Commission licensed pari-mutuel wagering facility, an offtrack wagering facility, or a qualified truck stop facility.

Acts 1991, No. 1062, §1, eff. July 30, 1991; Acts 1993, No. 593, §1; Acts 1994, 3rd Ex. Sess., No. 13, §1, eff. July 1, 1994; Acts 1995, No. 1052, §1; Acts 1995, No. 1280, §1, eff. July 1, 1995.  Redesignated from R.S. 33:4862.6 by Acts 1996, 1st Ex. Sess., No. 7, §3, eff. May 1, 1996; Acts 1997, No. 68, §1; Acts 1997, No. 1285, §1, eff. July 15, 1997; Acts 1999, No. 490, §1, eff. June 22, 1999; Acts 1999, No. 1385, §§1, 2; Acts 2000, 2d Ex. Sess., No. 26, §1, eff. July 17, 2000; Acts 2001, No. 535, §1; Acts 2001, No. 889, §1; Acts 2003, No. 1289, §1; Acts 2004, No. 637, §1; Acts 2004, No. 918, §§1, 3; Acts 2005, No. 425, §1; Acts 2006, No. 42, §1, eff. May 12, 2006; Acts 2006, No. 616, §1; Acts 2006, No. 679, §1.

*As appears in the enrolled bill.  Should be through §1424.