Article 1. Gaming Control Act. Article 2. Dog Racing

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CHAPTER 7

GAMING

SOURCE: The original publication was made on February 15, 1975.

2012 NOTE: Rule-making authority for the formulation of gaming control rules and regulations by the Department of Revenue and Taxation is found in Public Law 26-52:4 (Oct. 17, 2001), which states:

“Notwithstanding any other provision of law, the Cockpit License Board, together with the Department of Revenue and Taxation, is hereby authorized to promulgate necessary rules and regulations to create a comprehensive regulatory scheme to regulate all gaming activities on Guam; provided, that the rules and regulations shall restrict gaming activities to those authorized and licensed on Guam as of August 1, 2001.”

Pursuant to this authority, the Department of Revenue and Taxation filed the gaming control regulations with the Legislative Secretary on January 3, 2003, consisting of rules and regulations now found in Articles 1 to 5 herein. See 5 GCA § 9100 et seq. (Guam’s Administrative Adjudication Law). This submission from the Department of Revenue and Taxation stated the following:

“Upon codification of these regulations, Chapter 5 of Title 11 of the Guam Code Annotated will be repealed and re-enacted, to be replaced by these regulations [.]”

And,

“Chapter 39 of Title 22 Guam Code Annotated is hereby repealed in its entirety and re-enacted under Chapter 5 of Title 11 Guam Code Annotated [.]”

However, section 4 of Public Law 26-52 did not authorize the Department of Revenue and Taxation to repeal and reenact existing Guam law. Section 4 of Public Law 26-52 authorized the Department of Revenue and Taxation only to “promulgate necessary rules and regulations to create a comprehensive regulatory scheme to regulate all gaming activities on Guam.” Public Law 26-52:4 (Oct. 17, 2001). The gaming control regulations are not codified in the Guam Code Annotated, but placed in this chapter.

Article 1. Gaming Control Act. Article 2. Dog Racing - Pari-Mutuel. [Repealed] Article 3. Non-Profit Bingo Article 4. Cockfighting Article 5. Miscellaneous

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ARTICLE 1

GAMING CONTROL ACT

SOURCE: Article 1 was formerly entitled “General Racing Operations” Rules and Regulations for dog racing, and were filed with the Legislative Secretary on April 29, 1985. This article now contains rules and regulations governing gaming, which were filed with the Legislative Secretary on January 3, 2003 pursuant to Public Law 26-52:4.

§ 7101. Name of Act. § 7102. Definitions. § 7103. Limited Gaming-Authorization-Regulation. § 7104. Function of Director. § 7105. Gaming Control Division - Creation. § 7106. Function of Division. § 7107. Chief of Gaming Control division - Qualification - Powers

and Duties. § 7108. Investigators - Peace Officers. § 7109. Gaming Control Division - Access to Records. § 7110. Gaming Control Commission - Creation. § 7111. Commission - Powers and Duties. § 7112. Hearing Officer. § 7113. Conflict of Interest. § 7114. Limited Gaming Activities - Authorized and Unauthorized. § 7115. Licenses - Types. § 7116. Events Sponsored by Non-Profit Organizations. § 7117. Terms of Sponsorship. § 7118. Key Employee- Determination of Status. § 7119. Licenses - Revocable - Nontransferable. § 7120. Operator, Key Employee, Support Licensee, or Retailer -

Qualification for Licensure. § 7121. Considerations for Licensure. § 7122. Temporary or Conditional Licenses. § 7123. Delegation of Authority to Issue Certain Licenses. § 7124. Licensed Premises - Retail Floor Plan. § 7125. License - Disqualification - Criteria. § 7126. Applicants and Licensees - Providing Information. § 7127. Application - Fee- Waiver of Confidentiality. § 7128. Supplier of Licensee - Licensure Requirements.

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§ 7129. Application - Authorization for Background Investigations. § 7130. License - Grounds for Approval or Denial. § 7131. Licensed Premises - Safety Conditions - Fire and Electrical. § 7132. Buildings - Accessible to Persons with Disabilities. § 7133. Waiver from Liability - Government of Guam - Disclosures

or Publications. § 7134. Renewal of Licenses. § 7135. Denial of Application. § 7136. Appeal of Final Action of Commission. § 7137. Executive and Closed Meetings. § 7138. Communications - Privileged and Confidential. § 7139. Summary Suspension. § 7140. Suspension or Revocation of License - Grounds - Penalties. § 7141. Commission Hearings - Testimony. § 7142. Records - Confidentiality - Exceptions. § 7143. Chief and Director have Access to Files and Records. § 7144. Licensees - Duty to Maintain Records. § 7145. Limited Gaming Tax. § 7146. Violations of Taxation Provisions - Penalties. § 7147. Returns and Reports - Failure to File - Penalties. § 7148. Limited Gaming Fund. § 7149. Audits and Annual Reports. § 7150. Enforcement. § 7151. Attorney General - Duties. § 7152. Persons Prohibited from Interest in Limited Gaming. § 7153. Responsibilities of Operator. § 7154. Gaming Devices - Security and Audit Specifications. § 7155. Restriction upon Persons having Financial Interest in Retail

Licenses. § 7156. Age of Participants - Violation as Misdemeanor. § 7157. Key Employee - Support License. § 7158. Extension of Credit Prohibited. § 7159. Failure to Pay Winners. § 7160. Persons in Supervisory Positions - Unlawful Acts. § 7161. Limited Gaming - Limited Hours. § 7162. Cheating. § 7163. Fraudulent Acts. § 7164. Unlawful Manufacture, Sale, Distribution, Marking,

Altering, or Modification of Equipment and Devices

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Associated with Limited Gaming - Unlawful Instruction. § 7165. Detention and Questioning of Person Suspected of Violating

Act - Limitations on Liability - Posting of Notice. § 7166. Failure to Display Operator and Premises Licenses. § 7167. Authority, Duties, and Powers - Department of Revenue and

Taxation and the Guam Police Department.

§ 7101. Untitled.

This Act shall be known as the Gaming Control Act.

§ 7102. Definitions.

(a) “Applicant” means any person who has applied for a limited gaming license for permission to engage in any limited gaming activities regulated under the provisions of this Act.

(b) “Bingo” or “game” means a specific game of chance, commonly known as bingo or lotto, in which a right to participate is sold to a player and prizes are awarded on the basis of designated numbers or symbols conforming to randomly selected numbers or symbols.

(c) “Bingo equipment” means equipment used, made, or sold for use in facilitating the operation of a bingo game. It includes, but is not limited to, tables, chairs, counters, bars, floors, markers, and public address systems used at any time in the operation of a bingo game regardless whether the equipment is also used for other purposes. The term includes:

(1) Machine or other device from which balls or other items are withdrawn to determine the letters and numbers or other symbols to be called;

(2) An electronic or mechanical card-minding device;

(3) A pull-tab dispenser;

(4) A bingo card; and

(5) Any other device commonly used in the direct operation of a bingo game.

(d) “Bingo occasion” means all activities incident to the conduct of a series of bingo games by a licensed authorized organization.

(e) “Bingo Proceeds” and “receipts from any bingo operation”

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means the total receipts from the operation of any bingo game or games by any bingo licensee.

(f) “Chairman” means the chairman of the Gaming Control Commission.

(g) “Chief” means the chief of the Gaming Control Division.

(h) “Commission” means the Gaming Control Commission.

(i) “Department” means the Department of Revenue and Taxation.

(j) “Director” means the Director of the Department of Revenue and Taxation

(k) “Division” means the Gaming Control Division.

(l) “Expenses” means ordinary, necessary and reasonable costs incurred in preparation, or in the conduct of a bingo or other limited gaming activities.

(m) “Fund” means the Limited Gaming Fund.

(n) “Gaming device” means any equipment or mechanical, electromechanical or electronic contrivance, component or machine used remotely or directly in connection with gaming or any game which affects the result of a wager by determining win or loss. The term includes:

(1) A slot machine.

(2) A collection of two or more of the following components:

(A) An assembled electronic circuit which cannot be reasonably demonstrated to have any use other than in a slot machine;

(B) A cabinet with electrical wiring and provisions for

mounting a coin, token or currency acceptor and provisions for

mounting a dispenser of coins, tokens or anything of value;

(C) A storage medium containing the source language or executable code of a computer program that cannot be reasonably demonstrated to have any use other than in a slot

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machine;

(D) An assembled video display unit;

(E) An assembled mechanical or electromechanical display unit intended for use in gambling; or

(F) An assembled mechanical or electromechanical unit which cannot be demonstrated to have any use other than in a slot machine;

(3) Any mechanical, electrical or other device which may be connected to or used with a slot machine to alter the normal criteria of random selection or affect the outcome of a game.

(4) A system for the accounting or management of any game in which the result of the wager is determined electronically by using any combination of hardware or software for computers.

(5) Any combination of one of the components set forth in paragraphs (A) to (F), inclusive, of subsection (2) and any other component that the Commission determines, by regulation, to be a machine used directly or remotely in connection with gaming or any game which affects the results of a wager by determining a win or loss.

(o) “Gaming employee” means any person employed by an operator or retailer hosting limited gaming to work directly with the limited gaming portion of such operator’s or retailer’s business, which person shall be twenty-one (21) years of age or older and hold a limited gaming support license. Persons deemed to be limited gaming employees shall include, but shall not be limited to, the following: any person involved in the handling, counting, collecting, or exchanging of money, property, checks, credit or any representative of value, including any coin, token, chip, cash premium, merchandise, redeemable game credits, or any other thing of value or payoff from any limited gaming activity, or any gaming device used in limited gaming; and such other persons as the commission shall by rule or regulation determine who are participating in limited gaming activities.

(p) “Gaming license” means a license that authorizes any person, corporation or entity to engage in gaming and to repair, transport, manufacture, sell, purchase, operate and use all gaming equipment or

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gaming devices and to engage in all remote, satellite, and on- line gaming activities and other off-site betting activities and to engage in a lottery or lottery games.

(q) “Gross receipts” means the total revenue from any gaming activities less payments for any winnings paid to generate said revenue.

(r) “Immediate family” means a person related by marriage or cohabitation in lieu of marriage and any and all children resulting from such marriage or cohabitation.

(s) “Key employee” means any executive, employee, or agent of a limited gaming licensee having the power to exercise a significant influence over decisions concerning any part of the operation of a limited gaming licensee.

(t) “Lease” and “rental” means the leasing or renting of equipment or premises used to conduct limited gaming and the possession or use thereof by the lessee or rentee for a consideration, without transfer of the title of such equipment to the lessee.

(u) “Licensed gaming establishment” means any premises authorized herein for the conduct of gaming.

(v) “Licensed premises” means that portion of any premises authorized herein for the conduct of gaming.

(w) “Licensee” means any person licensed under this Act to conduct limited gaming activities.

(x) “Licensing authority” means the Gaming Control Commission.

(y) “Limited Gaming” means land based bingo, cockfighting, dog racing, land based lottery, carnival or liberation day gaming, and operation and use of land based electronic gaming devices as authorized herein. All equipment or paraphernalia used, or intended to be used, in limited gaming or any limited gaming activities shall be “limited gaming equipment” or “limited gaming devices”.

(z) “Lottery,” “lottery game,” or “lottery games” means any game of chance approved by the Commission, or as otherwise authorized herein, and operated pursuant to this Act, including, but not limited to

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instant tickets, on-line games, and games using mechanical or electronic devices but excluding pari-mutuel betting and casino gambling.

(aa) “Net proceeds” means the gross amount collected from participants less the actual costs or expenses to generate said revenue and less depreciation expenses incurred.

(bb) “Non-profit Organization” means:

(1) A non-profit organization domiciled in Guam that is tax exempt as determined by the Department of Revenue and Taxation, organized to perform and engage primarily in performing charitable, benevolent, patriotic, employment-related, or educational functions that meet the other requirements of this Act.

(2) A religious organization that has existed in Guam for at least two (2) years.

(3) Any senior citizen recreational center that is defined as an organization by the Mayors’ Council of Guam whose members are fifty-five (55) years or older, the sole function of which is to provide amusement and diversion for its members.

(cc) “Operator” means any person or other entity who places limited gaming equipment or limited gaming devices or bingo equipment upon another person’s business premises or any person who, individually or jointly, pursuant to an agreement whereby consideration is paid for the right to place limited gaming devices or bingo equipment on another’s business premises, engages in the business of placing and operating limited gaming devices or bingo equipment upon another person’s business establishment.

(dd) “Past-posting” means making a bet after the event has begun.

(ee) “Pinching bets” means the removal of chips or money just before the dealer seizes losing bets.

(ff) “Pressing bets” means the player lets winnings ride by wagering them along with the original bet.

(gg) “Recreational bingo session” means a bingo session operated by any person or entity at no charge to participants in which the prizes for each bingo game during the bingo session shall be non-cash

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prizes and the total of such prizes for each game shall not exceed twenty dollars ($20.00) as established pursuant to regulations established by the Commission. No such non-cash prizes awarded in recreational bingo shall be exchanged or redeemed for money; or for any other prize with a value in excess of the amount established pursuant to regulations established by the Commission.

(hh) “Retailer” means any limited gaming licensee who maintains limited gaming equipment or conducts limited gaming activities at his place of business.

(ii) “Spouse” means a person related by marriage or cohabitating in lieu of marriage.

§ 7103. Limited Gaming-Authorization-Regulation.

Limited gaming as defined in Section 7102(y) is hereby authorized and may be operated and maintained and conducted subject to the provisions of the Gaming Control Act. All limited gaming, as said term is defined in Section 7102(y), shall be regulated by the Commission.

§ 7104. Function of Director.

(a) The Director shall exercise all powers specified under this Act

and shall enter into agreements with any department, agency, or unit of the Government of Guam to secure services which he/she deems necessary and to provide for the payment for such services.

(b) The Director shall employ and compensate a legal counsel, technical consultants and assistants as are needed, or may be required, and, as otherwise permitted by law, to conduct activities in relation to regulating limited gaming activities in Guam.

§ 7105. Gaming Control Division - Creation.

There is hereby created, within the Department of Revenue and Taxation, the Gaming Control Division, the head of which shall be the Chief of the Gaming Control Division. The Chief shall be appointed and subject to removal by, the Director with the approval of the Commission. The Division and the Commission created in Section 7110, shall exercise their respective powers and perform their respective duties and functions as specified in this Act under the Department as if

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the same were transferred to the Department; except that the Commission shall have full and exclusive authority to promulgate rules and regulations related to limited gaming without any approval by, or delegation of authority from the Department as said authority to promulgate rules and regulations is defined in this Act.

§ 7106. Function of Division.

The function of the Division, in conjunction and in cooperation with the Commission whose duties are specified herein, is to issue approved licenses, to implement approved rules and regulations, and supervise the conduct of limited gaming in Guam as limited gaming is defined in this Chapter in Section 7102(y) and as otherwise directed by the Commission.

§ 7107. Chief of Gaming Control Division - Qualification-Powers

and Duties.

(a) The Chief shall:

(1) Be qualified by training and experience to direct the work of the Division;

(2) Be of good character and shall not have been convicted of any felony or gambling-related offense;

(3) Not be engaged in any other profession or occupation that could appear to be or which does present a conflict of interest to his/her duties as Chief; and,

(4) Direct and supervise the administrative and technical activities of the Division.

(b) In addition to the duties imposed upon the Chief elsewhere herein, the Chief shall:

(1) Supervise and administer the operation of the Division and limited gaming in accordance with the provisions of this Act and the rules and regulations of the Commission;

(2) Attend meetings of the Commission or to appoint a designee to attend on his/her behalf;

(3) Direct such personnel as may be necessary to carry out the purposes of this Act, but no person shall be employed with

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the Division who has been convicted of a felony or any gambling-related offense;

(4) Confer with the Commission as necessary or desirable, but not less than once each month, with regard to the operation of the Division;

(5) Make available for inspection by the Commission or any member of the Commission, upon request, all books, records, files, and other information and documents in the Chiefs office;

(6) Advise and recommend to the Commission such rules and regulations and such other procedures as the Chief deems necessary and advisable to improve the operation of the Division and the conduct of limited gaming activities in Guam;

(7) With the concurrence of the Commission or pursuant to Commission requirements and procedures, to enter into contracts for materials, equipment, and supplies to be used in the operation of the Division;

(8) Make a continuous study and investigation of the operation and the administration of similar laws in relation to limited gaming activities which may be in effect in the United States or other countries; of any literature on limited gaming which, from time to time, may be published or available; and, of any federal laws which may affect the operation of the Division;

(9) Furnish to the Director and the Commission a monthly report that contains a full and complete statement of the Division’s revenue and expenses for each month. All reports required by this paragraph shall be public, and copies of all such reports shall be sent to the Governor of Guam, the Speaker of I Liheslaturan

Guåhan, and the Public Auditor;

(10) Annually prepare and submit to the Director and the Commission, for their approval, a proposed budget for the succeeding fiscal year, which budget shall set forth a complete financial plan for all proposed expenditures and anticipated revenues of the Division;

(11) Take such action as may be determined by the Commission to be necessary to protect the security and integrity

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of limited gaming activities in Guam; and,

(12) Perform any other lawful acts that the Commission may consider necessary or desirable in order to carry out the purposes and provisions of this Act in relation to implementing and enforcing the Commission’s authority and jurisdiction over limited gaming activities in Guam.

§ 7108. Investigators - Peace Officers.

(a) All investigators of the Division, and their supervisors, including the Chief, shall have all the powers of any peace officer to:

(1) Make arrests, with or without warrant, for any violation of the provisions of this Act in relation to limited gaming activities or the rules and regulations promulgated pursuant to this Act, any other laws or regulations pertaining to the conducting of limited gaming in Guam, or any criminal law of Guam, if, during an officer’s exercise of powers or performance of duties under this Act, probable cause is established that a violation of any said law or rule or regulation has occurred;

(2) Inspect, examine, investigate, hold, or impound any premises where limited gaming is conducted, any devices or equipment designed for or used in limited gaming, an1any books and records in any way connected with any limited gaming activity;

(3) Require any person licensed by the Commission, upon demand, to permit an inspection of such person’s licensed premises, gaming equipment and devices, or books or records; and to permit the testing and the seizure for testing or examination purposes of all such devices, equipment, and books and records;

(4) Serve all warrants, notices, summonses, or other processes relating to the enforcement of laws regulating limited gaming;

(5) Serve distraint warrants issued by the Division pertaining to limited gaming;

(6) Conduct investigations into the character, record, and reputation of all applicants for limited gaming licenses, all limited gaming licensees, and such other persons as the Commission may determine pertaining to limited gaming; and,

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(7) Investigate violations of all the laws pertaining to limited gaming and limited gaming activities.

(b) Criminal violations of this Act discovered during an authorized investigation or is covered by the Commission shall be referred to the Attorney General of Guam.

(c) The investigators of the Division and their supervisors, including the Chief, shall be considered peace officers as defined in 8 GCA § 5.55.

(d) Nothing in this section shall be construed to prohibit the Guam Police Department from enforcing the provisions of this Act, and the rules and regulations promulgated pursuant to this Act, or from performing their other duties to the full extent permitted by law. All such police officers and the Attorney General of Guam shall have all the powers set forth in subsection (a) of this section.

(e) The abuse of authority by any investigator of the Division shall be a third degree felony and punishable as such.

§ 7109. Gaming Control Division - Access to Records.

The Division, for purposes of this Act, shall have full authority to procure, at the expense of the Division, any records furnished to or maintained by any law enforcement agency in the United States for the purpose of carrying out its responsibilities pursuant to this Act. Upon request from the Attorney General of Guam, the Division shall provide copies of any and all information obtained pursuant to this Act.

§ 7110. Gaming Control Commission - Creation.

(a) Notwithstanding any other provision of law, there is hereby created, within the Department of Revenue and Taxation, the Gaming Control Commission. The Commission shall consist of the Director (ex officio) who shall have no vote, and five (5) members, all of whom shall be citizens of the United States and voting residents of Guam for at least five (5) consecutive years. The members shall be appointed by the Governor, with the consent and approval of I Liheslaturan Guåhan. No member shall have been convicted of a felony or any gambling-related offense, including those individuals who have been pardoned for these types of offenses that are committed subsequent to the effective date of the Gaming Control Act. At the first meeting of each fiscal year, a

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chairman and vice-chairman of the Commission shall ‘be chosen both of whom cannot serve consecutive terms as chairman or vice-chairman, and both of whom shall be elected by a majority of the members of the Commission from its regular members confirmed by the legislature. Membership and operation of the Commission shall additionally meet the following requirements:

(1) One (1) member of the Commission shall have had at least five (5) years of law enforcement experience as a peace officer qualified pursuant to 8 GCA § 5.55; one (1) member shall preferably be an attorney admitted to the practice of law in Guam for not less than five (5) years and who has experience in regulatory law or, alternatively to a practicing attorney with five (5) years experience in regulatory law, shall be a graduate of an American Bar Association accredited law school; one (1) member shall preferably be a certified public accountant or public accountant who has been practicing in Guam for at least five (5) years and who has a comprehensive knowledge of the principles and practices of corporate finance or, alternatively to a certified public accountant with five (5) years experience, shall be a graduate of an accredited college or university in Guam or the United States with a degree in finance or accounting; one (1) member shall have been engaged in business in a management-level capacity for at least five (5) years; and, one member shall be from the community-at-large who is not employed in any profession or industry otherwise described in this paragraph (1);

(2) Initial members shall be appointed to the Commission by the Governor as follows: One member to serve until March 1, 2003, one member to serve until March 1, 2004, one member to serve until March 1, 2005, and two (2) members to serve until March 1, 2006. All subsequent appointments shall be for terms of five (5) years. No member of the Commission shall be eligible to serve more than two (2) consecutive five (5) year terms;

(3) Any vacancy on the Commission shall be filled for the unexpired term in the same manner and for the remaining term as the original appointment. The member appointed to fill such vacancy shall be from the same category and shall have the required

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qualifications described in paragraph (1) of this subsection (a) as the member vacating the position;

(4) Any member of the Commission may be removed by the Governor for cause;

(5) The term of any member of the Commission who misses more than two (2) consecutive regular Commission meetings without good cause shall be terminated and such member’s successor shall be appointed in the manner provided for appointments under this section;

(6) Commission members shall receive as compensation for their services one hundred dollars· ($100.00) for each day· spent in the conduct of Commission business and shall be reimbursed for necessary travel and other reasonable expenses incurred in the performance of their official duties. The maximum annual compensation for each member of the Commission, including reimbursement for necessary travel and other reasonable expenses incurred in the performance of their official duties, shall not exceed five thousand dollars ($5,000.00) per year;

(7) Prior to confirmation by I Liheslaturan Guåhan, each member shall file with the Director a financial disclosure statement in the form required and prescribed by the Director. Such statement shall be renewed as of each February 15th during the member’s term of office;

(8) The Commission shall hold at least one (l) meeting each

month and such additional meetings as may be prescribed by rules

of the Commission. In addition, special meetings may be called by the Chairman, any two (2) Commission members, or the Chief, if written notification of such meeting is delivered to each member at least seventy-two (72) hours prior to such meeting. Notwithstanding any other provision of law, in emergency situations in which a majority of the Commission certifies that exigencies of time require that the Commission meet without delay, the requirements of public notice and of seventy-two (72) hours actual advance written notice to members may be dispensed with, and Commission members as well as the public shall receive such notice as is reasonable under the circumstances;

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(9) A majority of the Commission shall constitute a quorum, but the concurrence of a majority of the members appointed to the Commission shall be required for any final determination by the Commission; and,

(10) The Commission shall keep a complete and accurate written or recorded or videotaped record of all its meetings.

§ 7111. Commission - Powers and Duties.

(a) In addition to any other powers and duties set forth herein, the Commission shall nonetheless have the following powers and duties:

(1) To promulgate, within ninety days (90) days from the effective date of this Act, interim rules, regulations and an interim schedule of all fees authorized in this Act, governing limited gaming licensing and the conduct and operations of limited gaming activities as it deems necessary to carry out the purposes of this Act in relation to limited gaming activities in Guam. These interim rules, regulations and fees shall be valid until February 15th 2002 or until permanent rules, regulations and a schedule of

fees are implemented, whichever shall occur first and,

notwithstanding any other provision of law to the contrary, these interim rules, regulations and schedule of fees shall be promulgated, implemented and made effective without complying with the provisions of the Administrative Adjudication Act. On or before November 15th 2002 the Commission shall publish proposed permanent rules, regulations and schedule of fees whose adoption and promulgation shall comply with the Administrative Adjudication.

(2) To conduct hearings upon complaints charging violations of this Act in relation to limited gaming activities or violations of rules and regulations promulgated pursuant to this Act, and to conduct such other hearings as may be required by the rules of the Commission or by the provisions of this Act;

(3) To enter into agreements with the Guam Police Department for the conduct of investigations, identification, or registration, or any combination thereof, of licensed operators and employees in licensed premises engaging in limited gaming activities, which conduct shall include, but not be limited to,

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performing background investigations and criminal records checks on an applicant applying for licensure pursuant to the provisions of this Act in relation to limited gaming activities and investigating violations of any provision of this Act or of any rule or regulation promulgated herein or by the Commission pursuant to paragraph (1) of subsection (a) of this section, discovered as a result of such investigator process or discovered by the Division, or the Commission in the course of conducting its business. Nothing in this section shall prevent or impair the Guam Police Department from engaging in the activities set forth in this paragraph (3) on their own initiative;

(4) To conduct a continuous study and investigation of limited gaming throughout Guam for the purpose of ascertaining any defects in this Act in relation to limited, gaming, or in the rules and regulations promulgated pursuant to this Act in relation to limited gaming, in order to discover any abuses in the administration and operation of the Division or any violation of this Act in relation to limited gaming activities;

(5) To formulate and recommend changes to any rule or regulation promulgated pursuant to this Act concerning limited gaming for the purpose of preventing abuses and violations of this Act in relation to limited gaming in Guam; to guard against the use of such rules and regulations as a cloak for the conducting of illegal limited gaming activities in Guam; and, to ensure that such rules and regulations shall be in such form and be so administered as to serve the true purpose and intent of this Act in relation to the conduct of limited gaming activities in Guam;

(6) To report immediately to the Governor, the Attorney General, the Speaker of I Liheslaturan Guåhan, and such other Guam officials as the Commission deems appropriate, concerning any laws in relation to limited gaming that it determines require immediate amendment to prevent abuses and violations of this Act in relation to limited gaming or any rule or regulation promulgated pursuant to this Act in relation to limited gaming, or to remedy undesirable conditions in connection with the administration or the operation of the Division concerning limited gaming;

(7) To require such special reports from the Chief as it

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considers necessary in relation to limited gaming;

(8) To issue temporary or permanent licenses to those involved in the ownership, participation, or conduct of limited gaming as authorized herein;

(9) Upon complaint, or upon its own motion, to levy fines and to suspend or revoke licenses that the Commission has issued and is authorized to issue in this Act and as allowed herein;

(10) To establish and collect fees and taxes upon persons, limited gaming licenses, and limited gaming equipment or other devices used in, or participating in limited gaming as allowed and defined in this Act;

(11) To obtain all information from limited gaming licensees and other persons and agencies connected with limited gaming activities which the Commission deems necessary or desirable m the conduct of its business of regulating limited gaming activities;

(12) To issue subpoenas for the appearance or production of

persons, records, and things in connection with applications before the Commission or in connection with disciplinary or contested cases considered by the Commission in relation to limited gaming;

(13) To apply for injunctive or declaratory relief to enforce the provisions of this Act and any rules and regulations promulgated pursuant to this Act in relation to limited gaming;

(14) To inspect and examine without notice all premises wherein limited gaming is conducted or devices or equipment used in limited gaming, manufactured, sold, or distributed, and to summarily seize, remove, and impound, without notice or hearing from such premises any equipment, devices, supplies, books, or records used in limited gaming for the purpose of examination or inspection;

(15) To enter into contracts with any governmental entity to carry out its duties in compliance with the provisions of existing laws. Such contracts or formal agreements, or both, are to be based on pre-established Commission criteria specifying minimum levels of cooperation and conditions for payment;

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(16) To exercise such other incidental powers as may be necessary to ensure the safe and orderly regulation of limited gaming and the secure collection of all revenues, taxes, and license fees concerning limited gaming;

(17) To establish internal control procedures for limited gaming licensees, including accounting procedures, reporting procedures, and personnel policies;

(18) To establish and collect fees for performing background checks on all applicants for limited gaming licenses and on all persons with whom the Commission or Division may agree with or contract with for the providing of goods or services, as the Commission deems appropriate;

(19) To establish and collect fees for performing, or having performed, tests on equipment and devices to be used in limited gaming;

(20) To demand, at any time when limited gaming is being conducted, access to and inspection, examination, photocopying, and auditing of all papers, books, and records of applicants and limited gaming licensees, on their premises or elsewhere, as practicable and in the presence of the limited gaming licensee or his agent, pertaining to the gross income produced by any licensed limited gaming establishment conducting limited gaming activities, and to require verification of income, and all other matters

affecting the enforcement of the policies of the Commission or

any provision of this Act in relation to limited gaming; and to impound or remove all papers, books, and records of limited gaming applicants and limited gaming licensees, without hearing, for inspection or examination; and,

(21) To prescribe voluntary alternative methods for the making, filing, signing, subscribing, verifying, transmitting, receiving, or storing of returns or other documents in relation to limited gaming activities.

(22) To enter into agreements with any person, entity, partnership, association or corporation, not engaging in limited gaming activities or who are not otherwise subject to the jurisdiction of the Commission under the terms of this Act, wherein

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said party consents to be bound by the provisions of this Act, in whole or in part, for an agreed term and conditions and in which agreement any activities, on agreement of the parties, may be defined as limited gaming activities as said term is defined in this Act and subject to the jurisdiction of the Commission. Any party executing any agreement consenting to the jurisdiction of the Commission, and defining some or all of its activities as limited gaming activities, shall be bound by the provisions of this Act to the extent agreed, as if they had originally been subject to the jurisdiction of the Commission and the provisions of this Act to the extent agreed.

(b) Permanent rules, regulations and schedule of fees promulgated pursuant to subsection (1) of this section in compliance with the Administrative Adjudication Act shall include, but shall not be limited to, the following:

(1) Rules, regulations and a schedule of any applicable fees defining the manner, type, allowable prizes and other pertinent rules and regulations for conducting lotteries or lottery games, dog racing, cockfighting, Liberation Day or carnival gaming, bingo and, the use of land based electronic gaming devices in Guam provided that any limited gaming activities allowed must not exceed those activities or expand the allowable activities which could had been authorized and licensed in Guam under Guam law as of August 1st 2001;

(2) The procedures for the issuance, revocation, suspension, and summary suspension of all types of permanent and temporary limited gaming licenses required for the conduct of limited gaming activities in Guam as required under the terms of this Act;

(3) The procedures for replacing any land based electronic gaming devices to ensure that the number of said machines licensed at any one time does not exceed the total number of machines for which licenses were issued by the Department prior to August 1st 2001 whether said machines were currently licensed or not on August 1st 2001;

(4) The details of times, places, and structures where limited gaming shall be authorized;

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(5) The type, time, place, manner, extent and all other pertinent regulations relating to carnival or Liberation Day gaming provided said rules and regulations allows only gaming activities which could have been conducted under Guam law on August 1st 2001 ;

(6) The procedures and description of the scope and conditions for conducting investigations and inspections into the conduct of limited gaming activities, the background of limited gaming licensees and applicants for limited gaming licenses, the premises where limited gaming is authorized, all premises where limited gaming devices are located for the purpose of conducting limited gaming activities, the books and records of limited gaming licensees, and the sources and maintenance of limited gaming devices and equipment;

(7) The detailed activities which the Commission determines constitutes fraud, cheating, or illegal or criminal activities in relation to limited gaming;

(8) The percentage of the gross receipts to be paid by each limited gaming licensee to the Commission, in addition to all other license fees and ordinary income taxes for limited gaming activities as authorized in this Act;

(9) The detailed procedures and grounds for seizure of limited gaming equipment, supplies, or books and records for the purpose of examination and inspection which are used in limited gaming activities;

(10) The forms and procedures for disclosure of all financial interests of limited gaming applicants for limited gaming licenses and all other applicants intending to participate in limited gaming activities;

(11) The detail grounds and procedures for the issuance or denial of support licenses by the Director for limited gaming activities;

(12) The detailed procedures and grounds for granting all limited gaming licenses including any special or limiting conditions;

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(13) The establishment of procedures for determining suitability or unsuitability of persons, acts, or practices connected with or relating to limited gaming activities;

(14) The procedures for determining and for the payment of costs incurred in the operation and administration of the Division, and the costs resulting from any contract entered into for consulting or operational services for limited gaming regulation;

(15) The procedures for determining and for payment of costs incurred by the Attorney General, the Guam Police Department and any other agency for investigations or background checks, which shall be paid by applicants for all limited gaming licenses;

(16) The procedures and grounds for levying of fines for violations of this Act or any rule or regulation promulgated pursuant to this Act in relation to limited gaming activities;

(17) The schedule of fees and their application on a yearly basis or per event for all license fees for all limited gaming licenses and equipment or other license issued by the Commission and for all land based gaming devices and limited gaming devices;

(18) The detailed types and specifications of all equipment and devices which are authorized and may be used in limited gaming activities in Guam and to the extent possible, the types of equipment which are specifically disallowed, although equipment which are not specifically allowed shall be considered disallowed, and provided further, that all limited gaming equipment allowed must be those allowed and licensed by the Department as of August 1st 200l, and,

(19) All other rules, regulations and schedule of fees necessary to accomplish the purposes of this Act in relation to the conduct of limited gaming activities in Guam.

§ 7112. Hearing Officer.

Any dispute or complaints charging violations of this Act in relation to limited gaming activities or the violation of any rules and regulations promulgated pursuant to this Act, may be delegated by the

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Commission to the Legal Counsel, as provided for in Section 7104 of this Act, or a Hearing Officer appointed pursuant to Chapter 9, Title 5 GCA (Administrative Adjudication Act) and furthermore all hearings required under the terms of this Act shall be conducted pursuant to the provisions of the Administrative Adjudication Act.

§ 7113. Conflict of Interest.

(a) Members of the Commission and employees of the Division are declared to be in positions of public trust. In order to ensure the confidence of the people of Guam in the integrity of the Division, its

employees, and the Commission, the following restrictions shall apply:

(1) No member of the Commission, including his/her spouse, a natural child, child by adoption, stepchild, parents, grandparents, a brother or sister of the whole or half-blood of a member, or an uncle, aunt, nephew, or niece of the whole blood of a member, shall have any interest of any kind in a limited gaming license issued pursuant to this Act or own or have any interest in property where limited gaming is permitted. The provisions of his paragraph (1) shall apply to spouses of Commission members, in like fashion as to members;

(2) No member of the Commission or employee of the Division, including the Chief, and no member of the immediate family, including spouses and issues therefrom, of Commission members, the Chief or employees of the Division, shall have any

interest, direct or indirect, in any licensee, licensed premises,

establishment, or business involved in or with limited gaming;

(3) No member of the Commission or employee of the Division, including the Chief, and no member of the immediate family, including spouses and issues therefrom, of’ members of the Commission, the Chief or employee of the Division, shall receive any gift, gratuity, employment, or other thing of value from any person, corporation, association, or firm that contracts with or that

offers services, supplies, materials, or equipment used by the

Division in the normal course of its operations, or which is licensed by the Division or the Commission;

(4) No member of the Commission or employee of the Division, including the Chief, and no member of their immediate

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families, including spouses and issues therefrom, shall participate in limited gaming; and,

(5) No member of the Commission or employee of the Division, including the Chief, shall have been convicted of a felony or any gambling-related offense or have received a pardon for such offense unless said pardoned offense was committed prior to the effective date hereof.

(b) Notwithstanding the provisions of subsection (a) of this section, the Commission shall, by rule, determine that an ownership interest of no more than five percent (5%), held by or through an institutional investor fund, does not constitute an interest under paragraphs (1) and (2) of subsection (a) of this section.

§ 7114. Limited Gaming Activities - Authorized and Unauthorized.

(a) The following are the only limited gaming activities authorized in Guam under this Act:

(1) Bingo that is conducted by a tax exempt non-profit organization as defined in Section 7102 (bb) domiciled in Guam, and licensed to conduct bingo activities;

(2) Cockfighting that is conducted at a licensed cockpit and

that all wagers are present at the cockpit;

(3) Dog racing that is conducted at a licensed dog-racing track and that all wagers are present at the racetrack as said activity is defined in Article 2 of this Act;

(4) Public lottery and carnival or Liberation Day gaming; and,

(5) Electronic gaming devices that have been registered, or were at any time previously registered, by the Department of Revenue and Taxation pursuant to 11 Guam Code Annotated, Chapter 22, Article 2, prior to August 1st 2001. Any electronic gaming devices previously registered with the Department may be replaced by new electronic gaming devices which are approximately similar to the old electronic gaming devices being replaced provided all old electronic gaming devices being replaced are disposed of or stored pursuant to rules and regulations issued

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by the Commission.

(b) All limited gaming activities aside from those listed in subsection (a), and the importation, manufacturing, and distribution of gaming devices in an attempt to conduct such limited gaming activities, except as indicated in the Gaming Control Act, are considered illegal and in violation of this Act. Such gaming devices, except as authorized herein, include any coin-operated device which, when operated, may return winnings (other than free games not redeemable for cash) of value to the user based partially or completely upon chance, by the operation of which a person may become entitled to receive winnings of value. It does not include pinball and other amusement machines or devices that are predominantly games of skill, whether affording the opportunity of additional chances or free plays or not. It does include slot machines, video poker machines and other machines or devices which afford the opportunity of winnings, payout, malfunction refunds, to the player, or giving the player or user anything of value under any guise or form based partially or completely upon chance except as otherwise authorized herein.

(c) Any person found guilty of the importation, attempted importation or causing the importation of gaming devices to Guam, except as authorized herein, or who is found guilty of manufacturing a gaming device in Guam, except as authorized herein, shall be guilty of a felony and shall be subject to imprisonment for not more than five (5) years, a fine not to exceed Twenty-five Thousand Dollars ($25,000) per gaming device, or both such fine and imprisonment.

§ 7115. Licenses - Types.

(a) The Commission shall issue six (6) types of licenses as follows:

(1) Non-profit organization to engage in limited gaming activities authorized herein;

(2) Electronic gaming device owners. An electronic gaming device owner’s license is required for anyone owning such devices for limited gaming purposes. Each license issued pursuant to this paragraph (2) shall expire one (l) year from the date of its issuance but may be renewed upon the filing of an application for renewal. All owners of electronic gaming devices registered with the

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Department under Section 7114(a)(5) shall be initially licensed for one (1) year and may apply for successive one (1) year renewals thereof. The Commission, pursuant to rules and regulations authorized herein, shall determine the fee for the initial license and all renewal fees thereof;

(3) Operator. An operator license is required for any person who is an Operator as defined in Section 7102(cc) and is not licensed under any other subsection of this section. Each license issued pursuant to this paragraph (3) shall expire one (1) year from the date of its issuance but may be renewed for successive one (1) year periods upon the filing and approval of an application for renewal. The Commission, pursuant to rules and regulations authorized herein, shall determine the fee for the initial license and all renewals thereof. A licensed operator shall obtain gaming devices only from a licensed owner pursuant to paragraph (2) of this subsection;

(4) Retail gaming. A retail gaming license is required for all persons permitting limited gaming on their premises and who are not licensed under subsections (1) through (3) above. Each license issued pursuant to this paragraph (4) shall expire one (l) year from the date of its issuance but may be renewed for successive one (1) year periods upon the filing and approval of an application for renewal. The Commission, pursuant to rules and regulations authorized herein, shall determine the fee for the initial license and all renewals thereof;

(5) Support. A support license is required for all persons employed in the field of limited gaming and by all limited gaming employees who are not otherwise licensed under the provisions of sections (1) through (4) above or section (6) below. No person, required to hold a limited gaming support license, shall be an employee of, or assist, any licensee until such person obtains a valid limited gaming license. The Commission may deny a limited gaming support license to any person discharged, for cause, from

employment by any licensed gaming establishment in this or

any other country. Each license issued pursuant to this paragraph

(5) shall expire two (2) years from the date of its issuance but may be renewed for successive two (2) year periods upon the filing

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and approval of an application for renewal. The Commission, pursuant to rules and regulations authorized herein, shall determine the fee for the initial license and all renewals thereof; and

(6) Key employee. Every retail gaming licensee shall have a person in charge of all limited gaming activities available at all times when limited gaming is being conducted. Such person in charge shall hold a key employee license. Each license, issued pursuant to this paragraph (6), shall expire two (2) years from the date of its issuance but may be renewed for successive two (2) year periods upon the filing and approval of an application for renewal. The Commission, pursuant to rules and regulations authorized herein, shall determine the fee for the initial license and all renewals thereof.

(7) Grandfather licenses. All current licenses authorizing any person, corporation or entity to conduct dog racing and to operate a cockpit shall remain in effect for their currently stated term but in no event shall any of said licenses be valid for more than five (5) years from the effective date of this Act.

The Commission, the Division, the Chief or the Director shall not issue any business or any other license to any corporation, person, partnership, employee or any other entity which allows or otherwise, in any way, authorizes or permits said corporation, person, partnership, employee or other entity to conduct any

gaming business or engage in any gaming activities, including,

but not limited to, the business of day cruise gaming ships or charter gaming ships in Guam where said ships, vessels or barges contain or transport any gaming devices or instruments to be used in any gaming activities by any passengers or crew embarking and disembarking said vessels from any port in Guam without an intervening stop in a foreign country, except that, any corporation, person, partnership or other entity (and their employees) who, on August 1st 2001, had a current Guam business license (primary license) authorizing said corporation, person, partnership or entity to engage in a boat charter business and which boat charter business license, issued prior to August 1st 2001, specifically refers to 15 United States Code Section 1175, may continue to operate, use, own, transport, build, repair and maintain gaming

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devises under a gaming license, directly and or jointly or severally through any future sublicensee or sublicensees of the primary license holder, without the need for any additional licenses, at the minimum tax rate currently specified herein, and which primary license shall be applicable for all boats, barges or other vessels currently owned, 1eased, chartered to be otherwise acquired in the future by the holder of said primary license and or jointly or severally by its current or future sub-licensees, and further provided that any such gaming license shall be valid and the use of any gambling devices and instruments on said boats, barges or other vessels shall occur only beyond thirty (30) feet from the high water mark. Additionally, the Port Authority of Guam and any other Government of Guam agency or entity, shall not enter into any agreement or agreements which allow, or which otherwise allows without explicit agreement, said day cruise gaming ships, charter boats, or barges containing any gaming devices on board to be used by passengers embarking and disembarking in Guam without an intervening stop in a foreign country, which explicit or implicit agreement allows or may allow said vessels to use any Government of Guam facility, property, services or any other items, except that, the restrictions, limitations and prohibitions contained herein shall not apply to any corporation, person, partnership or other entity and or their sub-licensees, which primary license holder on August 1st 2011 had a current boat charter Guam business license which business license specifically references 15 United States Code Section 1175. Nothing herein shall prevent the Government of Guam or any of its agencies or entities, from entering into agreements in the normal course of business to provide all services and facilities to cruise ships, charter boats, barges or any other vessels containing gaming devices, provided said gaming devices are locked in a separate compartment or area, and are not used or intended to be used in Guam, and, which ship, charter boat, barge or other vessel embarks, disembarks or intends to embark or disembark passengers in a foreign country at its departing port immediately before arriving in Guam, or at its next destination immediately after departing from Guam.

§ 7116. Events Sponsored by Non-Profit Organizations.

(a) Any person licensed as a gaming device owner, operator or

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retailer, may choose to allow a non-profit organization to sponsor limited gaming activities if the following conditions are met:

(1) The organization is a non-profit organization, which, for purposes of this section, means any organization, not for pecuniary profit, which is operated for the relief of poverty, distress, or other condition of public concern within Guam and which has been so engaged for five (5) years prior to making application to sponsor limited gaming under this Act:

(2) The licensed operator or retailer and the non-profit organization agree, in writing, upon all the terms and conditions of the sponsorship, and a copy of the written agreement is filed with the Commission at least fourteen (14) days prior to the day of the sponsored event;

(3) All requirements of this Act shall apply to such events; and,

(4) Criminal violations of this Article discovered during an authorized investigation or discovered by the Commission shall be referred to the Attorney General.

§ 7117. Terms of Sponsorship.

(a) All limited gaming events sponsored by non-profit organizations pursuant to this article shall, in addition to all the other requirements, meet the following conditions:

(1) The agreement between the licensed operator, retailer or gaming device owner and the non-profit organization shall provide for the payment by the non-profit organization to the retailer, operator or gaming device owner a flat fee or no fee; in return, the non-profit organization shall receive one hundred percent (100%) of the adjusted gross proceeds, less the amount of taxes due on those proceeds as determined by the Commission from limited gaming for each day of the sponsored event, or during all the hours of a sponsored event if less than a full day. The licensed operator, retailer or limited gaming device owner shall report and pay taxes on the full amount of the gross receipts from limited gaming sponsored by any non-profit organization; and

(2) No retailer shall permit a single non-profit organization to

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sponsor more than three (3) days of limited gaming at that retailer’s licensed premises during any calendar year; and, no retailer shall permit more than thirty (30) total days of sponsored events on its premises during any calendar year.

§ 7118. Key Employee - Determination of Status.

If, in the determination of the Commission, an employee of a licensee for limited gaming is a key employee and as such is subject to licensure, the Commission shall serve notice of such determination upon the limited gaming licensee who employed such key employee. In determining whether or not an employee is a key employee, the Commission is not restricted by the title of the job performed by such employee but may consider the functions and responsibilities of such employee in making its decision. The licensee shall, within thirty (30) days following receipt of the notice of the Commission’s determination, present the application for licensing of such employee to the Commission or provide documentary evidence that such employee is no longer employed by the limited gaming licensee. Failure of the limited gaming licensee to respond as required by this section is grounds for denial of a limited gaming license. A person subject to application for licensing as a key employee may make written request to the Commission to review its determination of such person’s status within the gaming organization. If the Commission determines that the person is not a key employee, such person shall be allowed to withdraw his application and continue in his employment. The request by an employee for review of his employment status does not stay the obligation of the limited gaming licensee to present such employee’s application to the Commission within the thirty-day period prescribed by this section.

§ 7119. Licenses - Revocable - Nontransferable.

Every limited gaming license issued by the Commission or which the Commission is authorized to issue under the terms hereof are revocable and nontransferable and all other licenses issued under the

provisions of this Act are non-revocable and transferable and shall be a property interest of the holder thereof. The privilege to continue to hold any revocable limited gaming license issued, is conditioned upon the proper and continuing qualification of the limited gaming licensee or registrant and, upon the discharge of the affirmative responsibility of

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each such revocable limited gaming licensee or registrant to provide to the regulatory, investigatory, and law enforcement authorities any assistance and information necessary to assure that the policies and requirements of this Act, in relation to limited gaming activities, are achieved.

§ 7120. Operator, Key Employee, Support Licensee, or Retailer -

Qualifications for Licensure.

Prior to a person’s licensure for all limited gaming licenses issued by the Commission, such person shall, in addition to meeting any other requirements imposed by, this Act, the Commission, or any rule or regulation promulgated pursuant to this Act, show that he is of good moral character. Such person has the burden of proving his qualifications to the satisfaction of the Commission for a limited gaming license issued by the Commission. Such person shall submit to and pay for any background investigations as may be ordered by the Commission to obtain a limited gaming license which may be issued by the Commission. All such payments shall be deposited into the Fund established in Section 7148 of this Act.

§ 7121. Considerations for Licensure.

In considering whether a person is of good moral character for purposes of issuing any limited gaming ‘license which the Commission may issue pursuant to this Act, the Commission may, in addition to all other information, consider whether that person has been denied a gaming license or a limited gaming license by this or any other jurisdiction, city, state, or country, or whether the person has ever had a gaming license or limited gaming license suspended or revoked in this or any other jurisdiction, city, state, or country. The Commission may also consider whether a person has ever withdrawn an application for any type of gaming license or limited gaming license anywhere and the reasons for such withdrawal.

§ 7122. Temporary or Conditional Licenses.

The Commission may issue temporary or conditional limited gaming licenses for up to a maximum of six (6) months, or shorter periods for all licenses the Commission is authorized to issue under this Act.

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§ 7123. Delegation of Authority to Issue Certain Licenses.

The Commission may delegate to the Division the authority to issue permanent and temporary support and key employee licenses, but the Commission shall review and approve the issuance of all other limited gaming licenses it is authorized to issue pursuant to this Act.

§ 7124. Licensed Premises - Retail Floor Plan.

For purposes of this section, “retail floor plan” means a physical layout of the inside of the building in which limited gaming will take place, which shall show the location of the licensed premises within the building. The retail floor plan shall be submitted to the Commission with an applicant’s application for a retail gaming license. Approval of the retail floor plan is subject to Commission rules and those rules pertaining to the zoning law, Uniform Building Code, public health, safety, good order, and general welfare. All gaming shall be located within the licensed premises of a business. A licensed retailer may change the physical location of the licensed premises with Commission approval.

§ 7125. License - Disqualification - Criteria.

(a) The Commission shall deny a limited gaming license to any applicant who is disqualified for licensure on the basis of any of the following criteria:

(1) Failure of the applicant to prove, by clear and convincing evidence, that the applicant is qualified in accordance with the provisions of this Act;

(2) Failure of the applicant to provide information, documentation, and assurances required by this Act or requested by the Commission, failure of the applicant to reveal any fact material to qualification, or the supplying of information which is untrue or misleading as to a material fact pertaining to the qualification criteria;

(3) Conviction of the applicant, or any of its officers or directors, or any of its general partners, or any stockholders, limited partners, or other persons having a financial or equity interest of five (5) percent or greater in the applicant, of any of the following:

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(A) Service of a sentence, upon conviction of a felony, in a correctional facility or jail, within three (3) years prior to the date of the application;

(B) Service of a sentence, upon conviction of any misdemeanor gambling-related offense, or misdemeanor theft by deception, in a correctional facility or jail within three (3) years prior to the date of the application;

(C) Service of a sentence, upon conviction of any misdemeanor involving fraud or misrepresentation, in a correctional facility or jail within three (3) years prior to the date of the application;

(D) Service of a sentence, upon conviction of any gambling-related felony or felony involving theft by deception, in a correctional facility or jail within three (3) years prior to the date of the application;

(E) Service of a sentence upon conviction of any felony involving fraud or misrepresentation in a correctional facility or jail within three (3) years prior to the date of the application; and,

(F) The granting of a pardon to an individual by the Governor of Guam or any governor of any state of the United States, or the President of the United States, or any president of any country or nation, does not waive the requirements above unless the pardoned offense was committed at least three (3) years prior to the effective date of this Act.

(4) Current prosecution or pending charges in any jurisdiction against the applicant, or against any person listed in the introductory paragraph of (3) above, for any of the offenses enumerated in the introductory paragraph of (3) above; except that, at the request of the applicant or the person charged, the Commission shall defer decision upon such application during the pendency of such charge;

(5) The identification of the applicant or any person listed in the introductory paragraph of (3) above as a career offender, or a member of a career offender cartel, or an associate of a career

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offender, or a career offender cartel, in such a manner which creates a reasonable belief that the association is of such a nature as to be inimical to the policy of this Act and to limited gaming operations. For purposes of this section, “career offender” means any person whose behavior is pursued in an occupational manner or context for the purpose of economic gain, utilizing such methods as are deemed criminal violations of the public policy of Guam. For purposes of this section, “career offender cartel” means any group of persons who operate together as career offenders; and

(6) Refusal to cooperate by the applicant or any person who is required to be qualified under this Act for a limited gaming license with any legislative investigatory body or other official investigatory body of Guam, any state in the United States, or the U.S. government, when such body is engaged in the investigation of crimes relating to limited gaming, official corruption, or organized crime activity.

§ 7126. Applicants and Licensees - Providing Information.

(a) All applicants for limited gaming licenses issued by the Commission, and all persons holding such limited gaming licenses, including all persons interested, directly or indirectly, in the limited

gaming business or limited gaming license held by an applicant or

limited gaming licensee, shall, upon request by the Commission or Division, provide fingerprints and handwriting exemplars, and DNA

samples from hair, blood or other body fluids, and each such person

shall allow himself or herself to be photographed in accordance with procedures established by the Commission.

(b) Upon issuance of a formal request or subpoena by the Commission to answer or produce information, evidence, or testimony, each applicant and limited gaming licensee shall comply with the request or subpoena. Where an applicant or limited gaming licensee, or any employee or person interested, directly or indirectly in, either refuses or fails to comply with a Commission request or subpoena, then that person’s limited gaming license or application may be suspended, revoked, or denied, based solely upon such failure or refusal.

§ 7127. Application - Fee - Waiver of Confidentiality.

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(a) The Commission may establish investigation and application fees for the purpose of paying for the administrative costs of the Commission and for paying for any background investigations of applicants and others involved in limited gaming activities. These fees may vary depending on the type of application, the complexity of the investigation, or the costs of the Commission in reviewing the matters involved.

(b) The application form created by the Commission shall include a waiver of any right of confidentiality and a provision which allows the information contained in the application to be accessible to law enforcement agents of Guam, any state of the United States, the government of the United States, or any foreign country. The waiver of confidentiality shall extend to any financial or personnel records, wherever maintained.

§ 7128. Supplier of Licensee - Licensure Requirements.

Any person supplying goods, equipment, devices, or services to any limited gaming licensee in return for payment of a percentage, or calculated upon a percentage, of limited gaming activities or income, must obtain an operator license, or must be listed on the retailer’s license where such limited gaming will take place.

§ 7129. Application - Authorization for Background Investigations.

By signing and filing an application for a limited gaming license, which is hereby made subject to the perjury laws of Guam, the applicant authorizes the Commission to obtain information from any source, public or private, in Guam, the United States, or any other country, regarding the background or conduct of the applicant and, if the applicant is a partnership or corporation, any of its shareholders, ot1icers, directors, partners, agents, or employees.

§ 7130. License - Grounds for Approval or Denial.

The Commission may approve or deny any application for a limited gaming license it is authorized to issue herein, in addition to all other conditions and requirements set forth in this Act and the rules and regulations promulgated pursuant thereto, on the basis of whether it deems the applicant a suitable person to hold the limited gaming license applied for, and, whether it considers the proposed location, retail floor plan, or any other conditions suitable. Refusal of an applicant

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to provide all information requested by the Commission, or to allow investigation into the applicant’s background, shall be grounds for denial of a limited gaming license the Commission is authorized to issue. Information requested from the applicant by the Commission, shall include the applicant’s date of birth in addition to other information necessary to identify and investigate fully the record and relevant history of the applicant.

§ 7131. Licensed Premises - Safety Conditions - Fire and Electrical.

The building in which limited gaming will be conducted, and the areas where limited gaming will occur, shall meet safety standards and conditions for the protection of life and property as determined by the Guam Fire Department.

§ 7132. Buildings - Accessible to Persons with Disabilities.

All premises where limited gaming is conducted shall be accessible to and functional for persons with physical disabilities.

§ 7133. Waiver from Liability - Government of Guam - Disclosures

or Publications.

All applicants, registrants, and limited gaming licensees shall waive liability as to the Government of Guam and its instrumentalities and agents for any damages resulting from any disclosure or publication in any manner, other than a willfully unlawful disclosure or publication, of any material or information acquired during inquiries, investigations, or hearings.

§ 7134. Renewal of Licenses.

(a) Subject to the power of the Commission to deny, revoke, or suspend limited gaming licenses as stated above, any limited gaming license, in force, shall be renewed by the Commission for the next succeeding license period upon proper application for renewal and payment of license fees and taxes as required by law and the regulations of the Commission. In addition, the Commission shall open limited gaming licensing hearings at any time, at the request of the Chief or the Chief of the Guam Police Department. The Commission shall act upon any such application prior to the date of expiration of the current limited gaming license and any current or expired license shall continue in force as if not terminated until such time as the

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Commission shall act on the application or request.

(b) An application for renewal of a limited gaming license shall be filed with the Commission up to thirty (30) days prior to the expiration of a current limited gaming license, and, all limited gaming license fees and taxes, as required by law, shall be paid to the Commission on or before the date of expiration of the current limited gaming license. The Commission shall set the manner, time, and place at which an application is made.

(c) Upon renewal of any limited gaming license, the Commission shall issue an appropriate renewal certificate or validating device or sticker, which shall be attached to each limited gaming license.

(d) Renewal of a limited gaming license may be denied by the Commission for any violation of this Act or the rules and regulations promulgated pursuant thereto, for any reason which would or could have prevented its original issuance, or for any good cause shown.

§ 7135. Denial of Application.

(a) Any person, or anyone who has an ownership interest of five (5%) percent or more:

(1) Whose application has been denied by the Commission, may not reapply for licensure until at least one (1) year has elapsed from the date of denial; and,

(2) Who has been denied a license for a second or any subsequent time, may not reapply until at least three (3) years have passed since the date of the last denial.

§ 7136. Appeal of Final Action of Commission.

Any person aggrieved by a final action of the Commission, may appeal the final action to the Superior Court of Guam.

§ 7137. Executive and Closed Meetings.

(a) The Commission may hold executive or closed meetings for any of the following purposes

(1) Considering applications form limited gaming licensing when discussing background investigations or personal information;

(2) Meeting with gaming officials of other jurisdictions, the

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attorney general, or law enforcement officials in connection with possible criminal violations of persons engaged in limited gaming activities;

(3) Consulting with the Chief, Director, employees, or agents of the Commission concerning possible criminal violations or any security issues involving limited gaming activities; and,

(4) Deliberations after hearing evidence in an informal consultation or in a contested case before the Commission for its deliberation and ruling.

§ 7138. Communications - Privileged and Confidential.

Communications among the Commission, Chief, and the Director relating to limited gaming licensing, disciplining of limited gaming licensees, or violations by limited gaming licensees, are privileged and confidential, if made lawfully and in the course of or in furtherance of the business of the Commission while performing its regulatory responsibilities over limited gaming activities, except pursuant to court order after an in-camera review. The Chief, Director, the Commission, or any member of the Commission may claim this privilege.

§ 7139. Summary Suspension.

Every limited gaming license granted, issued pursuant to section 7115(a) subsections (1) through (5), may be summarily suspended by the Commission, pending a hearing before the Commission, upon such terms and conditions as the Commission shall, by rule and regulation, mandate.

§ 7140. Suspension or Revocation of License - Grounds - Penalties.

(a) Any limited gaming license granted by the Commission may be suspended for up to six (6) months, or revoked for any cause which would have prevented its issuance, or for any violation by the limited

gaming licensee, or any officer, director, agent, member, or employee of

a limited gaming licensee of this Act, or any rule or regulation promulgated by the Commission, or for conviction of a crime involving moral turpitude or a felony, after notice to the limited gaming licensee and a hearing upon proof by a preponderance of the evidence as determined by the Commission. In addition to revocation or

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suspension, or in lieu of revocation or suspension, the Commission may impose a reprimand or a monetary penalty not to exceed the following amounts:

(1) If the limited gaming licensee is a gaming device owner, the amount of ten thousand dollars ($10,000.00);

(2) If the limited gaming licensee is an operator, the amount of five thousand dollars ($5,000.00);

(3) If the limited gaming licensee is a retailer, the amount of two thousand five hundred dollars ($2,500.00);

(4) If the limited gaming licensee is a key employee, the amount of one thousand dollars ($1,000.00); and,

(5) If the limited gaming licensee holds a limited gaming support license, the sum of five hundred dollars ($500.00).

(b) Any monetary penalty received by the Commission pursuant to this section shall be d posited in the Fund established in Section 7148 of this Act.

(c) The civil penalties set forth in this section shall not be a bar to any criminal prosecution or to any civil or administrative prosecution.

§ 7141. Commission Hearings - Testimony.

In any hearing held by the Commission pursuant to this Act, the Commission may apply to the Attorney General to prosecute the underlying criminal matter to compel testimony.

§ 7142. Records - Confidentiality- Exceptions.

(a) Information and records of the Commission enumerated by this section are confidential and may not be disclosed except pursuant to a court order. No person may, by subpoena, discovery, or statutory authority, obtain such information or records. Information and records considered confidential include

(1) Tax returns of individual licensees;

(2) Credit reports and security reports and procedures of applicants for limited gaming licenses and other persons seeking or doing business with the Commission;

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(3) Audit work papers, worksheets, and auditing procedures used by the Commission, its agents, or employees; and

(4) Investigative reports concerning violations of law, or concerning the backgrounds of limited gaming licensees, applicants, or other persons, prepared by Division investigators or investigators from other agencies working with the Commission, and any work papers related to such reports; except that the Commission may in its sole discretion, disclose so much of said reports or work papers as it deems necessary and prudent.

(5) Agreements between a private party and the Commission extending the jurisdiction of the Commission over a private party and their activities which activities are not otherwise considered limited gaming activities under the provisions of this Act.

(b) This section does not apply to requests for such information or records from the Attorney General, Public Auditor, or any U.S. government or state law enforcement agency, or for the use of such information or records by the Chief, Director, or Commission for official purposes, or by employees of the Division or the Department in the performance of their authorized and official duties.

(c) This section may not be construed to make confidential the aggregate tax collections during any reporting period, the names and businesses of licensees, or figures showing the aggregate amount of money during any reporting period.

(d) (1) Any person who discloses confidential records or information in violation of the provisions of this section, commits a misdemeanor and shall be punished as provided for by law. Any criminal prosecution, pursuant to the provisions of this section, must be brought within five (5) years from the date the violation occurred.

(2) If the person who violates this section is a Commission member or employee of the Division or the Department, in addition to any other penalties or sanctions, such person shall be subject to dismissal.

(3) If the person violating such provisions is a present Commission member or employee of the Division or the Department who obtained the confidential records or information

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during such employment, then, in any civil action, the subject of which includes the release of such confidential records or information, such person shall be liable for treble damages and reasonable attorney’s fees and costs to any injured party.

(4) If the person violating such provisions is a former Commission member or employee of the Division or the Department, who obtained the confidential records or information during such employment, and if such person executed a written statement agreeing to be held to the confidentiality standards expressed in this subsection (d), then, in any civil action, the subject of which includes the release of such records or information after leaving state employment, the former employee or officer shall be liable for treble damages and reasonable attorney’s fees and costs to any injured party.

§ 7143. Chief and Director Have Access to Files and Records.

The Chief and the Director shall have access both physically and electronically to all files and records kept by the Commission, or required to be maintained, and may contribute to those records.

§ 7144. Licensees - Duty to Maintain Records.

Each limited gaming licensee shall keep a complete set of books of account, correspondence, and all other records necessary to show fully the limited gaming transactions of the limited gaming licensee, all of which shall be open at all times during business hours for the inspection and examination of the Division or its duly authorized representatives. The Division may require any limited gaming licensee to furnish such information, as the Division considers necessary for the proper administration of this Act, and may require an audit to be made of such books of account and records on such occasions as the Division considers necessary by the Public Auditor or an independent auditor, selected by the Commission or the Chief, who shall likewise have access to all such books and records of the limited gaming licensee, and the limited gaming licensee may be required to pay the expense thereof.

§ 7145. Limited Gaming Tax.

(a) There is hereby imposed, a limited gaming tax on the gross receipts from limited gaming activities allowed by this Act in Guam.

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The tax rate on limited gaming activities shall be set by rule promulgated by the Commission as stated in this Act. In no event shall the tax exceed four (4) percent of the gross receipts at a minimum rate of one half of two percent (2%) of all gross receipts from all gaming activities in Guam and which tax shall not be limited to limited gaming activities alone In establishing the tax rate allowed herein the Commission shall take into consideration the following:

(1) The tax rate shall be established in conformity with the spirit and interests of this Act so as to permit limited gaming licensed operations, under normal business conditions and operating procedures, to realize a fair and just profit;

(2) The tax rate shall take into account un-reimbursed Government of Guam financial and infrastructure costs associated with limited gaming activities;

(3) The tax rate shall permit the affected limited gaming licensee a reasonable profit after expenses while considering the overall costs of doing business and the general economic climate prevailing in Guam at the time the rate is set including but not limited to the following:

(A) Capital costs associated with entering into and maintaining gaming activities and the level of employment created by said activities;

(B) Capital costs likely to be incurred to comply with Commission requirements.

(b) (1) The Department shall collect the amount of limited gaming tax on the gross receipts from limited gaming activities determined pursuant to subsection (a) of this section from any limited gaming licensee owing the tax and shall have all of the powers, rights, and duties provided for by law, to carry out such collection. The Commission shall authorize reimbursement to the Department of the costs associated with collection of limited gaming tax.

(2) All moneys collected pursuant to this section shall be deposited m the Fund created by Section 5 148 of this act.

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§ 7146. Violations of Taxation Provisions - Penalties.

(a) Any person who willfully:

(1) Makes any false or fraudulent return in attempting to defeat or evade the tax imposed by this Act commits a third degree felony and shall be punished as provided for by law;

(2) Fails to pay tax due under this Act within thirty (30) days after the date the tax becomes due, commits a misdemeanor and shall be punished as provided for by law;

(3) Fails to file a return required by this Act within thirty (30) days after the date the return is due commits a misdemeanor and shall be punished as provided for by law;

(4) Violates either paragraph (2) or (3) of this section, two (2) or more times in any twelve-month period, commits a third degree felony and shall be punished as provided for by law; and

(5) Aids or assists in, or procures, counsels, or advises the preparation or presentation under, or in connection with any matter arising under any title administered by the Commission, or a return, affidavit, claim, or other document which is fraudulent or is false as to any material fact, whether or not such falsity or fraud is with the knowledge or consent of the person authorized or required to present such return, affidavit, claim, or document, commits a third degree felony and shall be punished as provided for by law.

(b) For purposes of this section, “person” includes corporate officers having control or supervision of, or responsibility for, completing tax returns or making payments pursuant to this Act.

§ 7147. Returns and Reports - Failure to File - Penalties.

(a) (1) Any person who fails to file a return or report required by this Act for limited gaming activities, which return or report includes taxable limited gaming transactions, on or before the date the return or report is due, as prescribed in Section 7146 (a) (3) of this Act, is subject to the payment of an additional amount assessed as a penalty equal to fifteen percent (15%) of the tax, or one thousand dollars ($1,000.00), whichever is greater;

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except that, for good cause shown, the Director may reduce or eliminate such penalty.

(2) Any person, subject to taxation under this chapter for limited gaming activities, who fails to pay the tax within the time prescribed, is subject to an interest charge of two percent (2%) per month or portion there off or the period of time during which the payment is late, or one thousand dollars ($1,000.00), whichever is greater.

(3) (A) Penalty and interest are considered the same as a tax for the purposes of collection and enforcement, including liens, distraint warrants, and criminal violations; and,

(B) Any payment received for taxes, penalties, or interest is applied, first to the tax, beginning with the oldest delinquency then to interest and then to penalty.

(4) The Director may, upon application of the taxpayer, establish a maximum interest rate of twenty-four percent (24%) upon delinquent taxes if the Director determines that the delinquent payment was caused by a mistake of law and not by a willful intent to evade the tax.

(b) The procedures for collection of any taxes due under this Act and the authority of the Department to collect such taxes, shall be the same as those provided for the collection of gross receipts taxes.

§ 7148. Limited Gaming Fund.

(a) There is hereby created, separate and apart from other funds of the government of Guam, a fund to be known as the Limited Gaming Fund. All license fees, taxes and penalties collected under this Act shall be deposited in the Fund. The Fund shall not be commingled with the General Fund, except as indicated herein, shall be kept in a separate bank account, and, shall not be used as a pledge of security or as collateral for government loans. The Director of Administration shall make an itemized quarterly report to the Governor of Guam, and I Liheslaturan Guåhan, of the condition of, and a detailed description of all financial activity within, the Fund. The Director of Administration shall further make an itemized annual report, which shall be made available to the general public.

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(b) The Fund shall be used first and exclusively for the purpose of the administration of this Act and as otherwise stated herein. Said Fund shall be examined and reported upon by the Director of Administration as required by law and shall be expended as follows:

(1) The initial appropriation to the Division and all subsequent revenues of the Division shall be paid into the Fund. All expenses of the Division and the Commission, including the expenses of investigation and prosecution relating to limited gaming, shall be paid from the Fund.

(2) In addition to the initial appropriation to the Division, all moneys paid into the Fund shall be available immediately, without further appropriation, for the purposes of said Fund. From the moneys in the Fund, the Director is hereby authorized to pay all ongoing expenses of the Commission relating to regulation of limited gaming activities, the Department, the Division, and any other agency from which assistance related to the administration of this Act concerning limited gaming activities, as requested by the Commission, Director, or Chief Such payment shall be made upon proper presentation of a voucher prepared by the Commission in accordance with other statutes governing payments of liabilities incurred on behalf of the government and pursuant to rules and regularities issued pursuant to this Act. Such payment shall not be conditioned on any appropriation by I Liheslaturan Guåhan.

Receipt of such payment shall constitute spending authority by the Department for the Division.

Notwithstanding any other provision, at the end of each fiscal year, the Department of Administration shall distribute the balance remaining in the Fund, except for an amount equal to all expenses of the administration of this Act for the preceding two-month period, by repaying the initial appropriation to the Department of Administration before any distributions are made under this section.

(c) The Division shall be operated so that after the initial government appropriation, it shall be self-financing.

(d) No claim for the payment of any expense incurred by the Commission, Department, Division, or any other agency in the

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administration of this Act, shall be made unless it is against the Fund. No other moneys of the government of Guam shall be used or obligated to pay the expenses of the Division or Commission.

(e) Moneys remaining in the Fund, after repaying the initial

appropriation and maintaining the stated reserves for administrative

expenses of this Act, shall be allocated in the following manner:

(1) Twenty five percent (25%) to the Department of Education’s Interscholastic Sports Program to be used specifically for interscholastic sports. Such funds shall not be commingled with any other Department of Education funds nor shall such funds used for any administrative costs. At the end of each fiscal year, the Program Consultant for the Interscholastic Sports Program and the Director of Education shall, within thirty (30) working days, file a report with the Director detailing the manner in which such funds were expended. Unexpended funds shall be carried over to the ensuing fiscal year up to the sum of five hundred thousand dollars ($500,000.00) with any amounts over the sum of

five hundred thousand dollars ($500,000.00) to be transferred to

the general operating budget of the Guam Community College.

(2) Twenty five percent (25%) to the Guam National Olympic Committee to be used specifically for the training, development and enhancement of Guam’s national team athletes in preparation for national, international and world sports competitions. Such funds shall not be used for any administrative or operating costs. At the end of each fiscal year, the Treasurer and President of the Guam National Olympic Committee shall, within thirty (30) working days, file a report with the Director detailing the manner in which such funds were expended Unexpended funds shall be carried over to the ensuing year up to the sum of five hundred thousand dollars ($500,000.00) with any amounts over the sum of five hundred thousand dollars ($500,000.00) to be transferred to the general operating budget of the Department of education.

(3) Fifty percent (50%) to:

(A) the Guam Sports Complex situated on Lot No. 10142 New PTN Tract 100 in the Municipality of Dededo,

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established under P. L. 15-130; and,

(B) the Southern Sports Complex situated on Lot No. 477 in the Municipality of Agat, established under Public Law 22-150. Such funds shall be divided equally between the two complexes and shall be used strictly for the development and maintenance thereof. The funds shall be administered by the agency or organization having cognizance over the management and operations of the respective complexes. At the end of each fiscal year, the agency or organization of the respective complexes shall, within thirty (30) working days, file a report with the Director detailing the manner in which such funds were expended. All unexpended funds shall be carried over to the ensuing fiscal year until completion of the construction of the above referenced two (2) sports complexes and thereafter the amount carried over to the ensuing fiscal year shall be up to the sum of one million dollars ($1,000,000.00) with any amounts over the sum of one million dollars ($1,000,000.00) remaining shall be transferred to the general fund of the Government of Guam.

§ 7149. Audits and Annual Reports.

The Division shall be audited at least annually, by or under the direction of the Public Auditor, who shall submit a report of the audit to the Governor of Guam and the Speaker of I Liheslaturan Guåhan.

The expenses of the audit shall be paid from the Fund.

§ 7150. Enforcement.

It is the duty of all police officers in Guam to enforce the provisions of this Act, and the rules and regulations promulgated by the Commission, either at their own discretion or upon complaint of any person, including any authorized agent of the Commission. Such police officers may exercise any authority of inspection and examination specified in this Act. The Attorney General of Guam shall prosecute all violations of this Act in the same manner as provided for other crimes and misdemeanors.

§ 7151. Attorney General - Duties.

(a) The Attorney General of Guam shall represent the Division,

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the Department and the Commission, at the request of the Commission, the Chief, or the Director. The Attorney General shall make reasonable efforts to ensure that there is continuity in the legal services provided and that the attorneys providing legal services to the Division and the Commission shall have or shall, within a reasonable period, obtain expertise in the field relating to limited gaming activities. Routine legal services shall be provided pursuant to Section 7104 (b) of this Act.

(b) The Commission, the Chief, or the Director may request the Attorney General to make civil investigations and enforce civil violations of rules and regulations of the Commission, on behalf of and in the name of the Division, and to bring and defend civil suits and proceedings for any of the purposes necessary and proper for carrying out the functions of the Division in relation to limited gaming activities.

(c) Expenses of the Attorney General incurred in the performance of the responsibilities under this section shall be paid from the Fund.

§ 7152. Persons Prohibited from Interest in Limited Gaming.

(a) None of the following persons shall have any interest, direct or indirect, in any limited gaming license:

(1) All peace officers defined in 8 GCA Section 5.55 of any law enforcement agency of Guam with the authority to investigate or prosecute crime;

(2) Judges of the Superior Court of Guam and the Supreme Court of Guam.

(b) No limited gaming licensee may employ any person in any capacity while that person is in the employment of the Commission or is in the employment of, or has a reserve police officer position with the authority to investigate or prosecute crime.

§ 7153. Responsibilities of Operator.

Every limited gaming licensed operator and retailer having limited gaming devices on his premises shall provide audit and security measures relating to limited gaming devices prescribed by this Act and by rules of the Commission. Every limited gaming licensed operator and retailer having such devices shall ensure that the limited gaming devices in his establishment comply with the specifications set

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forth in this Act and the rules and regulations promulgated pursuant to this Act.

§ 7154. Gaming Devices - Security and Audit Specifications.

All limited gaming devices and all other equipment and devices used in limited gaming allowed by this act shall have the features, security provisions, and audit specifications established in rules or regulations adopted by the Commission.

§ 7155. Restriction Upon Persons having Financial Interest in Retail

Licenses.

No person may have an ownership interest in more than ten (10) retail licenses. The interest of a licensed limited gaming equipment licensee or operator leasing or routing limited gaming devices in return for a percentage of the income from limited gaming shall not, by itself, be considered an interest in a retail license under this section.

§ 7156. Age of Participants - Violation as Misdemeanor.

(a) It is unlawful for any person under eighteen (18) years of age to be present at, participate, play, be allowed to play, place wagers, or collect winnings, whether personally or through an agent, in or from any limited gaming game.

(b) It is unlawful for any person to engage in limited gaming with, or to share proceeds from limited gaming with, any person under eighteen (18) years of age.

(c) It is unlawful for any licensee to permit entry to any person who is less than eighteen (18) years of age or to participate, play, be allowed to play, place wagers, or collect winnings, whether personally or through an agent, in or from any limited gaming device.

(d) It is unlawful for any licensee to permit the presence of any person who is less than eighteen (18) years of age within the premises where gaming is being conducted.

(e) Any person violating any of the provisions of this section commits a misdemeanor and shall be punished as provided for by law.

(f) Any person violating any of the provisions of this section with a person under eighteen (18) years of age shall be prosecuted for contributing to the delinquency of a minor and shall be punished as

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provided for by law.

§ 7157. Key Employee - Support License.

(a) A limited gaming licensee shall not employ any person to work in the field of limited gaming, or to handle any of the proceeds of limited gaming, unless such person holds a valid key employee or limited gaming support license issued by the Commission except that all such current employees shall have an automatic key employee limited gaming license for a period of one ( 1) year from the effective date of this Act with all renewals subject to the approval of the Commission as stated in the provisions of this Act.

(b) It is unlawful for any person holding a key employee or limited gaming support license to participate in limited gaming in the gaming establishment where such limited gaming licensee is employed; except that such limited gaming licensee may participate in limited gaming, if such participation is performed as part of such limited gaming licensee’s employment responsibilities.

§ 7158. Extension of Credit Prohibited.

No person licensed by the Commission to engage in limited gaming activities may extend credit to another person for participation in limited gaming activities.

§ 7159. Failure to Pay Winners.

(a) It is unlawful for any limited gaming licensees to willfully refuse to pay the winner of any limited gaming game.

(b) Any person violating any provision of this section commits a misdemeanor and shall be punished as provided for by law.

§ 7160. Persons in Supervisory Positions - Unlawful Acts.

It is unlawful for any gaming employee who serves in a supervisory position, to solicit or accept any tip or gratuity from any player or patron at the premises where he is employed in gaming activities.

§ 7161. Limited Gaming - Limited Hours.

It shall be unlawful for any person to conduct or participate in land based limited gaming between the hours of 4:00 a.m. and 6:00a.m.

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§ 7162. Cheating.

(a) It is unlawful for any person, whether he is an owner or employee of, or a player in an establishment, to cheat at any gaming activity.

(b) For purposes of this article, “cheating” means to alter the selection of criteria that determines:

(1) The result of a game; or

(2) The amount or frequency of payment in a game.

(c) Any person violating any provision of this section, commits a third degree felony and shall be punished as provided for by law and any other person violating any provision of this section commits a misdemeanor and shall be punished as provided for by law. If the person is a repeating offender the person commits a third degree felony for each instance of cheating and shall be punished as provided for by law.

§ 7163. Fraudulent Acts.

(a) It is unlawful for any person:

(1) To alter or misrepresent the outcome of a game after the outcome is made sure but before it is revealed to the players;

(2) To claim, collect, or take, or attempt to claim, collect, or take, money or anything of value in or from any gaming activity with intent to defraud and without having made a wager contingent thereon, or to claim, collect, or take an amount greater than the amount won;

(3) Knowingly to entice or induce another to go to any place where gaming is being conducted or operated in violation of the provisions of this Act, with the intent that the other person play or participate in that gaming activity;

(4) To place or increase a bet after acquiring knowledge of the outcome of the game or other event that is the subject of the bet, including past-posting and pressing bets;

(5) To reduce the amount wagered or to cancel a bet after acquiring knowledge of the outcome of the game or other event that

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is the subject of the bet, including pinching bets;

(6) To manipulate, with the intent to cheat, any component of a gaming device in a manner contrary to the designed and normal operational purpose for the component with knowledge that the manipulation affects the outcome of the game or with knowledge of any event that affects the outcome of the game;

(7) To conduct any gaming operation without a valid license;

(8) To conduct any limited gaming operation on unlicensed premises;

(9) To permit any gaming to be conducted, operated, or carried on in any premises by a person other than a person licensed pursuant to this Act;

(10) To place any limited gaming devices into play or display such limited gaming devices without the authorization of the Commission;

(11) To employ, or continue to employ any person in a limited gaming operation who is not duly licensed or registered in a position whose duties require a license or registration pursuant to this Act; or

(12) To, without first obtaining the requisite limited gaming license or registration pursuant to this Act, be employed, work, or otherwise act in a position whose duties would require licensing or registration pursuant to this Act.

(2) Any person issued a limited gaming license pursuant to this Act, who violates any provision of this section, commits a third degree felony and shall be punished as provided for by law; and, any other person violating any provision of this section commits a misdemeanor and shall be punished as provided for by law. If the person is a repeating gaming offender, the person commits a third degree felony and shall be punished as provided for by law.

§ 7164. Unlawful Manufacture, Sale, Distribution, Marking,

Altering, or Modification of Equipment and Devices Associated

with Limited Gaming - Unlawful Instruction.

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(a) It is unlawful to manufacture, sell, or distribute any item or device that is intended to be used to violate any provision of this Act.

(b) It is unlawful to mark, alter, or otherwise modify, any associated equipment or gaming device in a manner that:

(1) Affects the results; or,

(2) Alters the normal criteria of random selection, which affects the operation of a game, or which determines the outcome of a game.

(c) It is unlawful for any person to instruct another in cheating or in the use of any device for that purpose, with the knowledge or intent that the information or use so conveyed may be employed to violate any provision of this Act.

(d) Any person issued a license pursuant to this Act violating any provision of this section commits a third degree felony and shall be punished as provided for by law; and, any other person violating any provision of this section commits a misdemeanor and shall be punished as provided for by law. If the person is a repeating gaming offender, the person commits a third degree felony and shall be punished as provided for by law.

§ 7165. Detention and Questioning of Person Suspected of Violating

Act - Limitations on Liability - Posting of Notice.

(a) Any licensee or an officer, employee, or agent thereof, may question any person in any gaming establishment suspected of violating any of the provisions of this Act. A licensee or any officer, employee, or agent thereof, is not criminally or civilly liable:

(1) On account of any such questioning; or,

(2) For reporting to the Division, Commission, or law enforcement authorities the person suspected of the violation.

(b) Any licensee or any officer, employee, or agent thereof, who has probable cause to believe that there has been a violation of this Act in any gaming establishment by any person, may take that person into custody and detain him in the establishment in a reasonable manner and for a reasonable length of time. Such a taking into custody and detention does not render the owners or operators of the gaming

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establishment, or the officer, employee, or agent thereof, criminally or civilly liable unless it is establish by clear and convincing evidence, that the taking into custody or detention is unreasonable under all the circumstances.

(c) An owner or operator of any gaming establishment or any officer, employee, or agent thereof, is not entitled to the immunity from liability provided for in subsection (b) of this section unless there is displayed, in a conspicuous place in the licensee’s establishment, a notice in boldface type clearly legible and in substantially this form:

“Any owner or operator of any gaming establishment, or

any officer, employee, or agent thereof, who has probable

cause to believe that any person has violated any provision

prohibiting cheating in gaming, may detain that person in

the establishment.”

§ 7166. Failure to Display Operator and Premises Licenses.

(a) It is unlawful for any person or gaming establishment to fail to permanently display in a conspicuous manner:

(1) Operator and premises licenses granted by the Commission or other license issued herein or by the Department or Director;

(2) A notice in bold face type which IS clearly legible and in substantially the following form:

“IT IS UNLAWFUL TO ADMIT ANY

PERSON UNDER THE AGE OF

EIGHTEEN INTO ANY LIMITED

GAMING OR GAMING ESTABLISHMENT

OR TO ENGAGE IN GAMING OR

LIMITED GAMING.”

(b) Any person violating this section commits a misdemeanor and shall be punished as provided for by law.

§ 7167. Authority, Duties, and Powers- Department of Revenue

and Taxation and the Guam Police Department.

The Commission, the Department, and the Division, shall regulate the limited gaming industry and enforce the limited gaming laws.

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Nothing in this section shall be construed to prohibit or limit the authority of police officers to enforce all the provisions of this Act, or the rules and regulations promulgated pursuant to this Act.

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ARTICLE 2

DOG RACING - PARI-MUTUEL

[REPEALED]

2012 NOTE: Article 2 was originally entitled “Territorial Lottery” Rules and Regulations filed with the Legislative Secretary on April 29, 1985. Public Law 19-19 (August 1988) repealed the Territorial Lottery Law completely and repealed the Criminal Code exemption from prosecution for territorial lotteries. Public Law 19-19 made such lotteries illegal; thus the corresponding rules and regulations were repealed by operation of law. On January 23, 2003, rules and regulations entitled “Dog Racing – Pari-Mutuel” Rules and Regulations were filed with the Legislative Secretary on January 3, 2003, pursuant to Public Law 26-52:4 (Oct. 17, 2001), and were placed in Article 2.

Public Law 30-162:3 (July 16, 2010) repealed and reenacted 11 GCA, Chapter 5, and established a prohibition against dog racing. Thus, rules and regulations in this article are repealed by operation of law.

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ARTICLE 3

NON-PROFIT BINGO

SOURCE: Contained within the Gaming Control Act rules and regulations that were filed with the Legislative Secretary on January 3, 2003 pursuant to Public Law 26-52:4.

§ 7301. Obligations; Suspensions, Revocation. § 7302. Operation of Bingo Games License Required. § 7303. Registration; Licensing Requirement. § 7304. Bingo License Expiration Renewals. § 7305. Rental Agreements Concerning Premises.

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§ 7306. Changes Affecting the Status of a Bingo Licensee. § 7307. Equipment for Bingo Operations. § 7308. Revocation of Determination Letter. § 7309. Annual Report. § 7310. Contracts Concerning Bingo Operations. § 7311. Residency Requirements. § 7312. Licensing Qualifications. § 7313. Places Where Bingo Operations May Be Held. § 7314. Posting of Winners. § 7315. Who May Operate Bingo Session. § 7316. Illegal Games. § 7317. Advertising. § 7318. Age Restriction. § 7319. Payments. § 7320. Total Prize Value Limit. § 7321. Operating Times. § 7322. Location of Records. § 7323. Effect of Bingo License Revocation/Suspension. § 7324. Subterfuge. § 7325. Individuals Responsible for Bingo Session. § 7326. Unlawful Activities. § 7327. Compliance.

§ 7301. Obligations, Suspension; Revocation.

(a) In addition to any other remedies or combination of remedies available to the Commission under the provisions of this Act, any bingo licensee, member, agent, representative or employee of a non-profit corporation licensed hereunder, who, while the organization holds the bingo license, shall violate any provision of this Act, or direct consent to or acquiesce in any violation of the same, shall forfeit the applicable bingo license, or bingo licenses through suspension or revocation, whichever the Commission determines.

(b) The failure of anyone holding a bingo license to meet any obligation imposed by any law of Guam, in addition to all other applicable penalties, shall also be grounds for suspension or revocation of such bingo license

§ 7302. Operation of Bingo Games; Bingo License Required.

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Any bingo session at which cash prizes are awarded, shall be conducted only by non-profit tax exempt organizations which are properly licensed by the Commission. Non-profit tax exempt organizations which operate recreational bingo games, at no charge to participants in which the participants are senior citizens attending a function at a facility of the tax exempt licensed organization, or are residents of nursing homes, retirement homes, or hospitals and in which the prizes for each bingo game during the bingo session shall be nominal cash prizes not to exceed $20.00 for any single prize and the total of such prizes for each such games shall not exceed the amount established pursuant to regulations established by the Commission.

§ 7303. Registration; Bingo Licensing Requirements.

(a) Before any non-profit tax exempt organization shall be licensed to operate bingo games, such organization shall submit a bingo license application to the Commission on forms prescribed by the Commission.

(b) In addition to any information required in the prescribed bingo application, the Commission may require any additional information reasonable and necessary to make a determination as to whether a bingo license should be issued. Each application for a bingo license and each bingo application for renewal of a bingo license must be accompanied by, but not limited, to the following:

(1) An annual fee of $100 must be paid prior to the issuance of any new bingo license or before any existing bingo license will be renewed. Payment shall be made by certified check or money order made payable to the Commission which shall be deposited in the Fund.

(2) A determination letter from the Department certifying that the applicant is an exempt organization under Federal Income Tax Law. No bingo license shall be issued to any non-profit tax exempt organization unless it has been in active existence and actively functioning as a certified non-profit organization for at least twenty-four (24) months immediately prior to the submitting the application for a bingo license. If the bingo license applicant claims its tax exempt status through a ruling by the Department as to its parent organization’s tax exempt status, said bingo license applicant must prove by clear and convincing evidence, to the satisfaction of the

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Commission, that the determination of tax exempt status also applies to the bingo license applicant and the bingo license applicant shall also submit a current letter of good standing from the parent organization and a copy of the charter from the parent organization. The applicant must have been chartered by the parent organization for at least twenty-four (24) months immediately prior to the submission of the bingo license application.

(3) A determination letter from the Department certifying that the bingo license applicant is exempt under income tax laws of Guam. The burden is upon the bingo license applicant to establish to the Commission, by clear and convincing evidence, it is entitled to the exempt status. An organization requesting a tax exempt status must file a written application with the Department. Until a determination letter granting an exempt status is issued, no exempt status shall may be claimed by the bingo license applicant.

(4) The organization’s sales tax registration number from the Department. An organization requesting a sales tax number must file a registration form with the Director.

(5) A certified copy of the current incorporation papers, charter and other such documents indicating the date the organization originated.

(6) A copy of the applicant’s current constitution and/or by laws.

(7) A statement as to the location where the bingo license applicant will conduct bingo games; if the premises where games are to be conducted is leased, a copy of the current lease or rental agreement; the days and times bingo games will be conducted.

(8) A copy of the purchase or lease contract for the bingo equipment to be used by the bingo license applicant, or a statement of ownership of the equipment.

(9) A current financial statement of the bingo license applicant organization as of the date of application.

(10) A statement of the source of funds to be used in the initial development of the bingo operation, and if any improvements are

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made on the premises where the bingo operation is to be conducted, the source of those funds

(11) The names and addresses of any persons, organizations or other legal entities that will act as surety for the bingo license applicant or to whom the bingo license applicant is financially indebted, or to whom any financial obligation is owed by the bingo license applicant.

(12) A photograph, two (2) fingerprint cards and personal history and background statement on forms provided by the Commission of all persons who are establishing, or will be promoting, advertising, or operating the bingo games, and if the bingo license applicant is a corporation, association or other similar entity, the names and home addresses, a photograph, two fingerprint cards, and a personal history and background statement on the aforementioned forms of all the directors/officers of the organization and any other person associated in any way with the bingo license applicant’s bingo operation.

(13) A statement showing the convictions, pleas of guilty, and nolo contendere, if any, for criminal offenses, other than minor traffic offenses, for all directors/officers of the organization and for all persons establishing, promoting, advertising or operating the bingo game.

(14) A current certificate from the Guam Fire Department showing the authorized number of occupants permitted on the premises where bingo is to be operated. The Guam Fire Department certificate must be posted in a conspicuous place on the premises.

(15) A current membership list of the bingo license applicant organization, entity, association or corporation, as of the date of application.

(c) Any untrue, misleading, or omitted statement of information contained in the bingo license application and its supporting documents or furnished the Commission or its agents in response to any investigation of the bingo license application or bingo license is cause for denying the issuance of a bingo license, if any bingo license has been previously issued, in addition to any other remedies available at law or to

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the Commission, it is cause for revocation or suspension of the bingo license or any other limited gaming license held by the bingo licensee.

(d) Any license issued pursuant to Act must specify the location at which bingo games will be conducted and is valid only for the premises for which the bingo license has been issued and shall be displayed conspicuously, at all times, at the location where the bingo game is conducted.

2012 NOTE: The self-contradictory language found in subsection (b)(3) is contained in the original submission from the Department of Revenue of Taxation filed with the Legislative Secretary on January 3, 2003 pursuant to Public Law 26-52:4.

§ 7304. Bingo License Expirations; Renewals.

All bingo licenses are annual, and licenses issued during the calendar year expire at midnight on December 31st following the date of issuance of the license. Renewal applications for each calendar year shall be filed with the Commission no later than sixty (60) days prior to January 1st of each year and shall be on forms provided and prescribed by the Commission.

§ 7305. Rental Agreements Concerning Premises.

(a) The total cost of leasing the premises used by a non-profit tax exempt organization in its bingo operation must be for a fixed dollar amount and shall not exceed the fair market rental value of such premises and may not be based on gross receipts, gross proceeds, or any other scale or percentage of gross proceeds or other measure that is related to or dependent upon the amount of revenue created by the bingo operation or number of persons attending the bingo games. All salaries of any person involved with or connected to the conduct of bingo games shall be a fixed dollar amount and no salaries, fees or payments of any type shall be made to any person or entity based upon a scale or percentage that is related to or dependent upon receipts from a bingo operation or the number of people attending the bingo games.

(b) The diversion of bingo proceeds from the non-profit organization operating bingo games, except in the manner expressly authorized by the Act is contrary to the legislative intent of this Act and is further contrary to the public welfare and constitutes a violation of this Act.

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(c) No bingo licensee may make any payments, give any compensation or divert any proceeds from receipts from any bingo operation to any person or entity, other than to the licensed non-profit organization itself and provided all said funds are used in furtherance of the legitimate non-profit aims of the organization, except in exchange for goods or services actually provided or rendered and used by the bingo licensee and then only in an amount equal to the fair market value of the goods or services

(d) No organizational member, agent, representative or profit making organization shall derive any financial benefit from any bingo operation licensed pursuant to this Act with the exception of the salaries and fees expressly authorized pursuant to Commission rules and regulations and this Act, and then only a reasonable profit shall be derived. No employee/operator or an agent acting on the behalf of the employee/operator may participate in the playing of bingo, during a session in which the employee/operator has assisted the organization in any part of the operation of its bingo game.

§ 7306. Changes Affecting the Status of a Bingo Licensee.

Any change involving or affecting the nonprofit tax exempt organization or the bingo operation, including but not limited to, the election or resignation of directors/officers, change of address, dates and time of bingo games, which causes the information provided by the applicant in the bingo license or renewal application or during the bingo license investigation and bingo license application process to be incorrect, amended, altered or incomplete, must be reported to the Commission within fifteen (15) days of the change or event.

§ 7307. Equipment for Bingo Operations.

(a) The bingo licensee is required to own all equipment used to conduct the bingo games or lease such equipment from an organization that is licensed to conduct such bingo games.

(b) Ownership means that legal title and possession of the equipment shall be in the name of the bingo licensee, free of any liens or encumbrances, on the date the bingo licensee first begins operating under the Guam license; and, financing arrangements which, in any way, tie purchase payments or rental fees for equipment or supplies to receipts from the bingo operation, are prohibited and further provided that all

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financing arrangements for any equipment may be allowed only on prior approval of the Commission. Copies of all contracts involving the purchase equipment used to conduct bingo games shall be provided to the Commission within fifteen (15) days of their execution or simultaneously with the bingo license application.

§ 7308. Revocation of Determination Letter.

Any bingo license issued by the Commission shall become invalid upon the revocation of the bingo licensee’s tax exempt status by either the Department or the Internal Revenue Service.

§ 7309. Annual Report.

An itemized report must be filed with the Commission each year disclosing the gross receipts and all expenses and expenditures associated with the operation of the bingo games. Such report shall be filed on or before April 15th. The report must be prepared on the form prescribed and provided by the Commission and its contents must be authenticated by a Certified or Registered Public Accountant.

§ 7310. Contracts Concerning the Bingo Operations.

Only non-profit tax exempt organizations properly licensed by the Department shall operate bingo games. No contracts are allowed by any bingo licensee or bingo license applicant with any other party which involve the other party’s providing aid to the non-profit tax exempt organization in any way concerning the bingo operations of said non-profit tax exempt organization.

§ 7311. Residency Requirements.

In addition to all other applicable requirements under the terms of this Act, no person shall participate, other than by playing bingo, in any manner, nor assist in any way, with regard to the bingo operations of a non-profit tax exempt organization of which the person is a member unless:

(a) The person has been domiciled in Guam for a minimum of six (6) months; or

(b) The person has been a member of the organization for at least one (1) year and can produce a certified copy of his/her criminal history from the place in which he/she is domiciled.

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§ 7312. Bingo Licensing Qualifications.

(a) When contrary to the public interest and welfare, no bingo license shall be issued by the Commission to.

(1) Any organization as determined by the Commission, by reason of the organization’s business experience, financial standing, trade association, reputation in any community, membership, employees, or officers, record of arrests of members, employees, or officers that is not likely to maintain the operation of bingo games in conformity with Guam or Federal laws;

(2) Any organization having paid employees or officers, or having members who have substantial control over the organization or bingo operation, who have been convicted of, pled nolo contendere to, or pled guilty to a felony or a crime not involving moral turpitude; other than minor traffic offenses, within three (3) years next preceding the filing of application of the bingo license; and,

(3) Any organization having paid employees or officers, or having members who have substantial control over the organization or bingo operation, who have been convicted of, or pled nolo contendere to, or pled guilty to a misdemeanor under any Federal or Guam law, particularly, but not limited to, those involving alcoholic beverages, gambling, or tax law violations, if such conviction or plea of nolo contendere or plea of guilty tends to indicate that the applicant will not maintain the bingo operation in conformity with Federal and Guam laws;

(b) The Commission may decline to issue a bingo license to an organization for the operation of non-profit bingo games when any person having any interest in the operation, or interest in the control over the premises or facility where the non-profit games are to be played, does not meet the qualifications set forth herein.

(c) If the Commission has reason to believe that the bingo license applicant is not entitled to the bingo license for which it has applied, the Commission shall notify the bingo license applicant thereof, and upon request by the bingo license applicant, afford it due notice and opportunity for hearing on the bingo license application. If the Commission, after affording such notice and opportunity for hearing,

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finds the bingo license applicant is not entitled to a bingo license hereunder, the bingo license applicant shall be advised in writing of the findings upon which the denial is based.

(d) The Commission may, after due notice and opportunity for hearing, in addition to any other remedies and or penalties under the terms of this act, suspend, or revoke the bingo license of any organization which does not meet or continue to meet the requirements herein set forth at any time such knowledge is acquired by the Commission.

§ 7313. Places Where Bingo Operations May Be Held.

A non-profit tax exempt organization may only conduct its bingo operations on premises of the following types:

(a) Premises owned by such non-profit tax exempt organization;

(b) Premises leased from another non-profit tax exempt organization, provided such premises are owned by a non-profit tax exempt organization; and,

(c) Premises leased from someone other than a non-profit tax exempt organization or from a non-profit tax exempt organization where someone other than a non-profit tax exempt organization owns the premises, when such premises are used and were so used prior to bingo license application for the holding of the lessee organization’s meetings or for some other major activity of the organization which is conducted on a regular basis and when such premises are not used primarily for bingo operations. “Regular basis” means at least fifty percent (50%) of the total time during which the premises are in actual use.

§ 7314. Posting of Winners.

After all bingo games involving prizes valued at fifty dollars ($50) or more, the names and addresses of all persons winning prizes with a value of fifty dollars ($50) or more, the amount of such prizes, and the number of each winning card shall be posted at the place where the bingo sessions are held and shall remain posted for six (6) bingo sessions subsequent to such winning session.

§ 7315. Who May Operate Bingo Session.

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(a) Except in accordance with the provisions of this Act, no person may participate in, or be involved, in any way, with the operation of an organization’s bingo session unless:

(1) He has been a regular, active member of the organization for at least three (3) months. Regular active membership shall be governed by the definition of regular membership contained in the organization’s or its parent organization’s constitution and by-laws;

(2) The Commission may determine that an organization holding a bingo license has a bona fide auxiliary unit, and if that auxiliary unit does not, itself hold a bingo license, then regular members of the auxiliary unit shall be permitted to assist in the operation of the related organization;

(3) A member or an auxiliary member of the organization is ineligible to participate in, or be involved, in any way, with the operation of a bingo session, until his personal history and background form, photograph, and fingerprint cards have been submitted to and approved by the Commission in addition to compliance with any other requirements of the Commission; and,

(4) Any person participating in the operation of a bingo game must wear a name tag or some other means of identification which identifies the person as an operator of the bingo game and the organization for which he is working.

(b) A person who is a member of more than one licensed organization can participate in the bingo operations of no more than two (2) such organizations in any given calendar year.

§ 7316. Illegal Bingo Games.

No organization shall participate in a practice which reduces or alters the random chance aspect of the selection of a winner.

(a) No modification shall be made to any bingo equipment used in the bingo games which alters or reduces the random chance to win.

(b) Bingo cards shall be provided by the licensee on a random basis to players. Bingo cards shall not be reserved from session to session. No cards shall be distributed free of charge to players.

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§ 7317. Bingo Advertising.

No bingo licensee shall lend its name or identity to anyone for use, or allow the use of its name in a manner which results in false or misleading promotions, or advertisements of unlawful bingo games, or lend its name or identity for use by any individual, firm, association or corporation for use in the operation or advertising of a bingo game in which the licensee is not directly and solely operating the bingo game. A promotion or advertisement shall be deemed “false”, “misleading”, or “unlawful” when any activity or portion thereof being advertised or promoted is in violation of this Act or regulations issued by the Commission which violation shall be a misdemeanor offense.

§ 7318. Age Restrictions.

No person under the age of eighteen (18) years shall be permitted entry into any bingo game or operation or to play any game of bingo conducted pursuant to any bingo license issued under these regulations. No person under the age of eighteen (18) shall be permitted to conduct or assist in the conducting of any game of bingo conducted pursuant to any bingo license issued under the terms of this Act.

§ 7319. Payment to Individuals.

No person or organization may receive any money or other consideration for salary, expense money, or any other fees for the operation of or assistance with regard to any bingo game, except that a maximum of thirty ($30) per day may be paid to each member of the licensed non-profit tax exempt organization who assists in the conducting of such games on such day. No person shall receive more than thirty ($30) in any one day regardless of the number of games he conducts, assists in conducting, or otherwise participates in.

§ 7320. Total Prize Value Limit.

The Commission shall promulgate rules and regulations setting cash or gift prize limits for all bingo sessions under this Act. It shall be unlawful to exceed limits set by the Commission, at any combination of locations operated by a single licensee or his agents or employees. It shall be unlawful for two or more bingo licensees to pyramid or accumulate the valuation of prizes in such manner as to exceed the limits set pursuant to Commission rules and regulations. The term “equivalent value” shall mean the fair market value of the gift on the date the gift is

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given as the prize in a bingo game. Total amounts shall include the cost of all prizes awarded in conjunction with any bingo session whether such prizes were awarded in conjunction with playing bingo or for some other reason.

§ 7321. Operating Time.

No bingo licensee shall conduct more than one (1) bingo session during any one calendar day; and no session shall exceed five (5) hours in length. It shall be a violation of this Act for two (2) or more non-profit tax exempt organizations which are properly licensed, pursuant to Act, to operate bingo games jointly or to operate bingo games upon the same premises during any eight (18) hour period.

§ 7322. Location of Records.

(a) A bingo licensee that conducts or operates a bingo session shall maintain the following records for at least three (3) years from the date on which the bingo session is conducted. The records shall be maintained on the standard format prescribed by the Commission.

(1) An itemized list of the gross receipts for each session;

(2) An itemized list of all expenses other than prizes that are incurred in the conducting of the bingo session as well as the name of each person to whom the expenses are paid and a receipt for all of the expenses;

(3) A list itemized with particularity of all prizes awarded during the bingo session and the name and address of all persons who are winners of prizes of fifty ($50) or more in value and the name of all persons who are winners of prizes of less than fifty ($50) in value; and,

(4) An itemized list of the recipients, other than the bingo licensee, of the proceeds of the bingo game, including the name and address of each recipient to whom such funds are distributed.

(5) A record of the number of persons who participate in any bingo session conducted by the bingo licensee.

(b) The records must be kept and be readily available for inspection at any reasonable time. Such reasonable time shall include any time the non-profit tax exempt organization is operating bingo games and the

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records shall be available on the premises where the bingo games are being conducted.

§ 7323. Effect of Bingo License Revocation/Suspension.

(a) If a bingo licensee has its license revoked, such organization shall not be eligible to reapply for another license for twelve (12) months, to be computed from the date the bingo license is surrendered to and received by the Commission.

(b) If a person is a member of more than two (2) bingo licensed organizations, and if one of the organizations which he/she has been assisting as a bingo worker has its bingo license revoked. said person may only participate in the bingo operations of one bingo licensed organization until the organization whose bingo license has been revoked is eligible to reapply for a bingo license; provided, however, that the revocation of the license did not result from actions of said person, in which case he may not participate in any bingo operation until the organization whose bingo license has been revoked is eligible to reapply for a bingo license.

(c) If a bingo licensee has its bingo license suspended, in addition to all other applicable penalties, such organization shall not be eligible to operate a bingo game for one (1) to six (6) months, to be computed from the date the bingo license is surrendered to and received by the Commission.

(d) If a person is a member of more than two (2) licensed organizations, and if one of the organizations which he has been assisting as a bingo worker has its bingo license suspended, said person may participate in only one other organization’s bingo operation until the suspended bingo license has been reinstated; provided, however, that the suspension of the license did not result from actions of said person, in which case he may not participate in any bingo operation until the organization whose bingo license has been suspended has been reinstated.

§ 7324. Subterfuge.

Any act which may be construed as a subterfuge to violate; and any effort, attempt or conspiracy to circumvent any section of this Article, or any of the Commission’s rules and regulations issued pursuant to this

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.

Article, shall be deemed a violation of the provision said bingo licensee attempted to or intended to circumvent or avoid compliance with.

§ 7325. Individuals Responsible for Bingo Session.

In addition to all other persons required to be present under the terms of this Act, at least one (1) of the individuals listed by the organization on the bingo license must be present at all times during the operation of any bingo game.

§ 7326. Activities. Unlawful.

It shall be a violation of Commission rules for any bingo licensee to permit any person to engage in any illegal activity on the premises for which the bingo license is issued. Violators will be punished as provided for by law.

§ 7327. Compliance.

A compliance form prescribed and provided by the Commission which identifies persons responsible for bingo operations and requires newly elected officers to review pertinent bingo documents, must be filed each year upon election of new officers and submitted within fifteen (15) days of the election.

(a) All new officers will review the necessary bingo documents outlined on the Commission Compliance Form.

(b) All new officers will sign and date the Compliance Form.

(c) The Commission Timeline Form must be posted next to the bingo license.

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ARTICLE 4

COCKFIGHTING


2012 NOTE: The promulgation of these rules were pursuant to Public Law 26-52:4. It is unclear of their effect, if any, on the rules and regulations contained in

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Chapter 3 entitled “Cockpit License Board,” which were promulgated pursuant to 22 GCA § 39103.

§ 7401. Gaming Control Commission: Authorization to License Cockfighting.

§ 7402. Cockpit Licenses: Issuance. § 7403. Bid, Invitation for and Submission of. § 7404. Cockpit License, Award of. § 7405. Cockpit License, Duration, Number, Suspension or

Revocation; Citizenship Requirement. § 7406. Cockfights: Days § 7407. Operation of Cockpits. § 7408. Operation of Cockpits: Admission Fees. § 7409. Operation of Cockpits: Fees. § 7410. Cockpit Wagers. § 7411. Cockpits and Cockfighting. § 7412. Cockpits and Cockfighting: Drugging Gamecocks and

Allied Offenses. § 7413. Penalty.

§ 7401. Gaming Control Commission: Authorization to License

Cockpit.

The Commission is authorized to issue cockpit licenses for both Balentia and Amara cockpits.

Balentia cockfighting shall be that in which the cocks are not equipped with knives or other sharp instruments. Amara cockfighting shall be that in which the cocks are equipped with knives or other sharp instruments. The Commission may authorize a cockpit licensee to conduct either or both types of cockfighting.

§ 7402. Cockpit Licenses: Issuance.

Cockpit licenses for the operation of cockpits shall be issued by the Commission only after the awarding of the license as herein provided.

§ 7403. Bid, Invitation for and Submission of.

(a) Whenever there are two (2) or less current licenses in effect, the Commission shall conduct a public meeting at which it shall review cockpit operations and authorize the letting of bids for cockpit licenses

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which will be new or which will replace the expired or non-renewed cockpit licenses.

(b) Not later than ninety (90) days prior to the expiration of an existing cockpit license, the Commission shall publish, in a newspaper of general circulation within Guam, its invitation for bids.

(c) The invitation for bids shall specify the types of cockpit license to be granted and the municipality in which the cockpit license is intended to be granted.

(d) The notice shall be published at least once weekly for three (3) consecutive weeks.

The notice shall state the address to which bids must be submitted and shall set a deadline, which shall be thirty (30) days following the day of last publication of notice, for the submission of bids.

(e) No bid for amara shall be considered unless it is accompanied by a deposit of One Hundred Dollars ($100.00) which sum shall not be refundable and which shall be paid in the Fund.

(f) No bid shall be considered unless it shall be submitted in a sealed envelope.

(g) The minimum bid which can be received or accepted by the Commission for the operation of a cockpit in which amara fights may be conducted shall be Ten Thousand Dollars ($10,000.00) for five (5) years.

(h) The minimum bid which can be received or accepted by the Commission for the operation of a cockpit in which only balentia fights may be conducted shall be Fifty Dollars ($50.00) for five (5) years.

§ 7404. Cockpit License, Award of.

The Commission shall award the cockpit license to the highest responsible bidder, provided that said bidder is approved by the Commission. In the event that the Board does not approve the highest responsible bidder, or the highest responsible bid is, for any reason, not acceptable to the Commission, new notices shall be posted and bids received in the same manner as if no notice had been given.

§ 7405. Cockpit License, Duration, Number, Suspension or

Revocation; Citizenship Requirement.

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(a) Cockpit Licenses to operate cockpits shall be issued for a five (5) year period and may be renewed for an additional five (5) year period upon payment of an amount equal to the amount of his original bid.

(b) No more than three (3) cockpit licenses in which amara fights may be conducted shall be granted, provided, that this restriction shall not take effect until the expiration of licenses issued pursuant to previous law.

(c) In addition to all other available remedies under the provisions of this Act, the Commission may suspend or revoke a cockpit license for violation of any section of this Article or of the rules and regulations issued pursuant thereto. Any action for suspension or revocation shall be taken as provided by the Administrative Adjudication Act.

(d) The Commission shall not issue a cockpit license to any natural person who is not a citizen of the United States and a resident of Guam, nor to a legal entity in which the ownership is not at least fifty-one percent (51%) vested in citizens of the United States who are residents of Guam.

§ 7406. Cockfights: Days.

(a) Cockfights may be held on Sundays, legal holidays or church holidays. In addition thereto, additional cockfight events may be held each year upon the approval thereof by a majority of the members of the Commission.

(b) Notwithstanding any other provision of law, the Commission is authorized to allow the conduct of cockfights for the three (3) day weekend period consisting of Friday, Saturday, and Sunday for every annual village fiesta, for Discovery Day, and for Fiestan Tasi, with the net proceeds of such cockfights to be given to the Municipal Planning Council of the village in which the cockfight is held.

§ 7407. Operation of Cockpits.

Cockpits may be operated at any time on a day on which they are authorized to be held.

§ 7408. Operation of Cockpits: Admission Fees.

The admission fee to a cockpit shall be Three Dollars ($3.00).

§ 7409. Operation of Cockpits: Fees.

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For each combat between cocks, a fee not to exceed two percent (2%) of the total amount of bets, will be collected by the holder of the franchise.

§ 7410. Cockpit Wagers.

All wagers on a combat shall be made only within the licensed premises and placed with the cockpit licensee or his agent.

§ 7411. Cockpits and Cockfighting.

Every person who shall:

(a) Operate a cockpit without a license is guilty of a misdemeanor; and

(b) Engage in cockfighting outside of a licensed cockpit is guilty of a misdemeanor. Balentia (without knives or gaffs) or the training of gamecocks shall be exempted from the provision of this subsection, so long as no wagering is involved;

§ 7412. Cockpits and Cockfighting: Drugging Gamecocks and Allied

Offenses.

(a) Every person who drugs, cripples, poisons, or in any manner injures any gamecock intended to be matched, or entered in a lawful cockfight, is guilty of a misdemeanor and shall be punished as provided for by law. For purposes of this section, the taking of a gamecock to within the enclosure of any cockpit shall be sufficient to constitute an intent to match.

(b) Every person who, at any time, has in his possession, any grain or other chicken feed, or substance suitable for consumption by chickens which has been mixed or treated with any drug, chemical or other substance poisonous or harmful to chickens with intent to drug, cripple, poison, or in any manner, injure any gamecock intended to be matched or entered in a lawful cockfight, is guilty of a misdemeanor and shall be punished as provided for by law. For purposes of this section, possession of any grain or chicken fees, or substance suitable for consumption by chickens, which has been mixed or treated with any drug, chemical, or other substance poisonous or harmful to chickens within the enclosure of any cockpit, shall be sufficient to constitute an intent to drug, cripple, poison or in any manner injure any gamecock.

COL07162012


CH. 7 - GAMING

74

§ 7413. Penalty.

Violation of any provision of this Article or of any rule or regulation promulgated by the Commission pursuant to the provisions of this Article for which another penalty is not expressly provided, shall be a misdemeanor.

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ARTICLE 5

MISCELLANEOUS


§ 7501. [Untitled Section]. § 7502. [Untitled Section].

§ 7501. [Untitled Section].

If any provision of this Act or its application to any person or circumstance is found to be invalid or contrary to law, such invalidity shall not affect other provisions or applications of this Act which can be given effect without the invalid provisions or application, and to this end the provisions of this Act are severable.

2012 NOTE: Promulgated as § 5414. Renumbered by Compiler to maintain general numbering scheme of the GARR.

§ 7502. [Untitled Section].

All laws and parts of laws inconsistent with any of the provisions of this Act, except as stated in this Act, and are hereby repealed.

2012 NOTE: Promulgated as § 5502. Renumbered by Compiler to maintain general numbering scheme of the GARR.

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Article 1. Gaming Control Act. Article 2. Dog Racing

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