SB 780 — Casino gaming; eligible host cities, limitation on local referendums.

"Supplier" means any person that sells or leases, or contracts to sell or lease, any casino gaming equipment, devices, or supplies, or provides any management services, to a licensee.

"Voluntary exclusion program" means a program established by the Board pursuant to § 58.1-4103 that allows individuals to voluntarily exclude themselves from engaging in the activities described in subdivision B 1 of § 58.1-4103 by placing their names on a voluntary exclusion list and following the procedures set forth by the Board.

"Youth sports" means the same as such term is defined in § 58.1-4030.

§ 58.1-4107.

Eligible host city;

certification of preferred casino gaming operator.

E 1.

and (iii) a population decrease of at least 20 3.percent from 1990 to 2016, according to data provided by the U.S.

Census Bureau;

3.

(ii) in which at least 24 percent of the assessed value of all real estate in such city is exempt from local property taxation, according to the Virginia Department of Taxation Annual Report for Fiscal Year 2018;

and (iii) thattion,that experienced a population decrease of at least five percent from 1990 to 2016, according to data provided by the U.S.

Any city (i) with a population greater than 200,000 according to the 2018 population estimates :from the Weldon Cooper Center for Public Service of the University of Virginia;

35(ii) fromin thewhich Weldonat Cooperleast Center24 forpercent Publicof Servicethe assessed value of all real estate in such city is exempt from local property taxation, according to the UniversityVirginia Department of Virginia;Taxation Annual Report for Fiscal Year 2018;

(ii)and in(iii) whichthat athad leasta 36poverty 24rate percent of theat assessedleast value24 ofpercent all real estate in such2017, city is exempt from local property taxation, / 37 according to thedata Virginiaprovided Departmentby ofthe TaxationU.S. Annual Report for Fiscal Year 2018;

and (iii) that had 38 a poverty rate of at least 24 percent in 2017, according to data provided by the U.S.

or exemptb. from local property taxation, according to the Virginia Department of Taxation Annual Reportty is for Fiscal Year 2016;

(ii)Any thatcity had(i) ain povertywhich rate of at least 2117 percent of the assessed value of all real estate in 2019,such city is exempt from local property taxation, according to datathe providedVirginia byDepartment theof U.S.Taxation Annual Report for Fiscal Year 2016;

Census(ii) Bureau;that had a poverty rate of at least 21 percent in 2019, according to data of 5 percent in 2020, according to data provided by the U.S.

andBureau (iii)of thatLabor hadStatistics.of an annual unemployment rate of at least 13 percentB. in 2020, according to data provided by the U.S.

Bureau of Labor Statistics.

B.

The economic development value of the proposed casino gaming establishment and the potential forfor7. community reinvestment and redevelopment in an area in need of such.

Availability of city-owned assets and privately owned assets, such as real property, including where there is only one location practicably available or land under a development agreement between a potential operator and the city, incorporated in the proposal.

S 8.

The best financial interest of the city.

9.

The proposer's status as a minority-owned business as defined in § 2.2-1604 or the proposer's minority-owned businesses and the proposer's commitment to solicit contracts with minority-owneNmore businesses for the purchase of goods and services.

10.

The proposer's commitment to paying its employees no less than the prevailing wage rate.A C.

The Department shall, upon request of any eligible host city, provide a list of resources that may be of assistance in evaluating the technical merits of any proposal submitted pursuant to this Tection, proD.

The eligible host city described in subdivision A 4 shall provide substantial and preferredetion.

consideration to a proposer who is a Virginia Indian tribe recognized in House Joint Resolution No.

54 (1983) and acknowledged by the Assistant Secretary-Indian Affairs for the U.S.

Department of the Interior as an Indian tribe within the meaning of federal law that has the authority to conduct gaming activities as a matter of claimed inherent authority or under the authority of the Indian GaminS RegE.

The eligible host city described in subdivision A 5 a may provide preferred consideration to a proposer who is a Virginia Indian tribe recognized in House Joint Resolution No.

54 (1983) and U acknowledged by the Assistant Secretary-Indian Affairs for the U.S.

Department of the Interior as an Indian tribe within the meaning of federal law that has the authority to conduct gaming activitSes as a matter of claimed inherent authority or under the authority of the Indian Gaming Regulatory Act (25 U.SF.

An eligible host city shall promptly submit its preferred casino gaming operator to the Department for review prior to scheduling the referendum required by § 58.1-4123.

An eligible host city shall include with the submission any written or electronic documentation considered as part of the cTiteria in subsection B, including any memorandums of understanding, incentives, development agreements, land purchase agreements, or local infrastructure agreements.

The Department shall conduct a preliminary support ongoing operations in an eligible host city, as well as current casino operations in other statesy and territories.

The Department shall conduct such review within 45 days of receipt of the submEssion by the eligible host city.

An eligible host city and preferred casino gaming operator shall fully cooperate with all necessary requests by the Department in that regard.

Upon successful preliminary review, the Department shall certify approval for the eligible host city to proceed to the referendum required by the preliminary review required by this subsection.

Certification by the Department to proceed toducting referendum shall in no way entitle the preferred casino gaming operator to approval of any application to operate a casino gaming establishment.

§ 58.1-4110.

Issuance of operator's license to preferred casino gaming operator;

standards fSr licensure;

temporary casino gaming allowed under certain conditions.

7 application that meets the standards for licensure set forth in this article, the Board shall issue ans an operator's license to such preferred casino gaming operator.

The Board shall not consider an ap1lication from any applicant that has not been certified as a preferred casino gaming operator by an eligible host city.

B.

The Board may issue an operator's license to an applicant only if it finds that:

1.

The applicant submits a plan for addressing responsible gaming issues, including the goals of the SB780S1 4 of 5 plan, procedures, and deadlines for implementation of the plan;

2.

The applicant has established a policy requiring all license and permit holders who interact directly with the public in the casino gaming establishment to complete a training course acceptable to the Department in how to recognize and report suspected human trafficking;

3.

The casino gaming establishment the applicant proposes to use on a permanent basis is or will be appropriate for gaming operations consistent with the purposes of this chapter;

4.

The city where the casino gaming establishment will be located certifies that the proposed project complies with all applicable land use ordinances pursuant to Chapter 22 (§ 15.2-2200 et seq.) of Title 15.2;

5.

Any required local infrastructure or site improvements, including necessary sewerage, water, drainage facilities, or traffic flow, are to be paid exclusively by the applicant without state or local financial assistance;

6.

If the applicant is an entity, its securities are fully paid and, in the case of stock, nonassessable and have been subscribed and will be paid for only in cash or property to the exclusion of past services;

AvailabilityAll principals meet the criteria of city-ownedthis assetssubsection and privatelyhave ownedsubmitted assets,to suchthe asjurisdiction realof property,the includingVirginia wherecourts, thereand isall onlynonresident oneprincipals locationhave practicablydesignated availablethe orDirector landas undertheir aagent developmentfor agreementreceipt betweenof aprocess; pot8.

The8. best financial interest of the city.in the proposal.

SB780If 2the ofapplicant 3is 9.an entity, it has the right to purchase at fair market value the securities of, and require the resignation of, any person who is or becomes disqualified under subsection C;

The9. proposer's status as a minority-owned business as defined in § 2.2-1604 or the proposer's commitment to solicit equity investment in the proposed casino gaming establishment from one or more minority-owned businesses and the proposer's commitment to solicit contracts with minority-owned businesses for the purchase of goods and services.

The applicant pays its employees no less than the prevailing wage rate;

10.

The applicant meets any other criteria established by this chapter and the Board's regulations for the granting of an operator's license;

10.

11.

The applicant is qualified to do business in Virginia or is subject to the jurisdiction of the courts of the Commonwealth;

and 11.

12.

The applicant has not previously been denied a license pursuant to subsection C.

The DepartmentBoard shall,shall upondeny requesta oflicense anyto eligiblean hostapplicant city,if provideit afinds listthat offor resourcesany thatreason maythe beissuance of assistancea inlicense evaluatingto the technicalapplicant meritswould ofreflect anyadversely proposalon submittedthe pursuanthonesty toand thisintegrity section,of providedthe thatcasino selectiongaming ofindustry in the preferredCommonwealth casinoor gamingthat operatorthe shallapplicant, beor atany theofficer, city'sprincipal, solemanager, discretion.or director of the applicant:

1.

Is or has been guilty of any illegal act, conduct, or practice in connection with gaming operations in this or any other state or has been convicted of a felony;

2.

Has had a license or permit to hold or conduct a gaming operation denied for cause, suspended, or revoked, in this or any other state or country, unless the license or permit was subsequently granted or reinstated;

3.

Has at any time during the previous five years knowingly failed to comply with the provisions of this chapter or any Department regulation;

4.

Has knowingly made a false statement of material fact to the Department or has deliberately failed to disclose any information requested by the Department;

5.

Has defaulted in the payment of any obligation or debt due to the Commonwealth and has not cured such default;

or 6.

Has operated or caused to be operated a casino gaming establishment for which a license is required under this chapter without obtaining such license.

The eligibleBoard host city described in subdivision A 4 shall providemake substantiala anddetermination preferredregarding considerationwhether to aissue proposerthe whooperator's islicense awithin Virginia12 Indianmonths tribeof recognizedthe inreceipt Houseof Jointa Resolutioncompleted No.application.

54 (1983) and acknowledged by the Assistant Secretary-Indian Affairs for the U.S.

Department of the Interior as an Indian tribe within the meaning of federal law that has the authority to conduct gaming activities as a matter of claimed inherent authority or under the authority of the Indian Gaming Regulatory Act (25 U.S.C.

§ 2701 et seq.).

The eligibleBoard hostshall citybe describedlimited in subdivision A 5 a may provide preferred consideration to athe proposerissuance whoof isone aoperator's Virginialicense Indianfor tribeeach recognizedeligible inhost Housecity. Joint Resolution No.

54 (1983) and acknowledged by the Assistant Secretary-Indian Affairs for the U.S.

Department of the Interior as an Indian tribe within the meaning of federal law that has the authority to conduct gaming activities as a matter of claimed inherent authority or under the authority of the Indian Gaming Regulatory Act (25 U.S.C.

§ 2701 et seq.).

AnIf, eligibleat hostthe citytime shallof promptlyapplication, submitthe itsapplicant preferredhas casinonot gamingsatisfied operatorthe capital investment requirement of at least $300 million pursuant to subsection B of § 58.1-4108 but otherwise meets the Departmentstandards for reviewlicensure set forth in this article, the Department shall issue the operator's license, which, prior to schedulingsatisfying the referendumcapital requiredinvestment byrequirement, §may 58.1-4123.not be used to conduct gaming other than temporary casino gaming pursuant to subsection G.

AnG. eligible host city shall include with the submission any written or electronic documentation considered as part of the criteria in subsection B, including any memorandums of understanding, incentives, development agreements, land purchase agreements, or local infrastructure agreements.

The Department shallmay conductauthorize a preliminary review of the financial status and ability of the preferred casino gaming operator to operateoccur andon properlya supporttemporary ongoingbasis operationsfor ina anperiod eligibleof hostone city,year asunder wellthe asfollowing currentconditions: casino operations in other states and territories.

The1. Department shall conduct such review within 45 days of receipt of the submission by the eligible host city.

AnThe eligiblerequest hostto cityauthorize andcasino gaming is made by a preferred casino gaming operator shallthat fullyhas cooperatebeen withissued alla necessarylicense requestsconsistent bywith thethis Departmentsection. in that regard.

Upon2. successful preliminary review, the Department shall certify approval for the eligible host city to proceed to the referendum required by § 58.1-4123.

The Departmentpreferred shallcasino developgaming guidelinesoperator establishinghas proceduressubmitted andas criteriaa part of its application for conductinglicensure thea preliminaryconstruction reviewschedule requiredfor a casino gaming establishment that has been approved by thisthe subsection.eligible host city and the Department.

Certification3. by the Department to proceed to referendum shall in no way entitle the preferred casino gaming operator to approval of any application to operate a casino gaming establishment.

The temporary casino gaming is to be conducted at the same site referenced in the referendum held pursuant to § 58.1-4123.

4.

The preferred casino gaming operator has secured suppliers and employees holding the appropriate permits required by this chapter and sufficient for the routine operation of the site where the temporary casino gaming is authorized.

of 5 H.

No portion of any facility developed with the assistance of any grants or loans provided by a redevelopment and housing authority created pursuant to § 36-4 shall be used as a casino gaming establishment.

The Department may renew the authorization to conduct temporary casino gaming for an additional year if it determines that the preferred casino gaming operator has made a good faith effort to comply witI.

An operator issued a license under this chapter shall not be precluded from operating a sports betting facility for individuals to participate in sports betting activities in a casino gaming establishment, which may include in-person sports betting where the bettor places a bet directly with an employee of the casino or the sports betting permit holder, or through a kiosk or device.

A.host city until a referendum on the question of whether casino gaming shall be permitted in such city is approved by the voters of such city.

The Department shall not grant any initial license to operate a gaming operation in an eligible host city until a referendum on the question of whether casino gaming shall be permitted in such city is approved by the voters of such city.

The court, by order entered of record in accordance with Article 5 (§ 24.2-681 et seq.) of Chapter 6 of Title 24.2, shall require the regular election officials of the city to open the polls and take the sense of the voters on the question as herein provided.provided.ficials of the city tN open the C.

C.The clerk of such court of record of such city shall publish notice of such election in a newspaper of general circulation in such city once a week for three consecutive weeks prior to such electAon.

The clerk of such court of record of such city shall publish notice of such election in a newspaper of general circulation in such city once a week for three consecutive weeks prior to such election.

The regular election officers of such city shall open the polls at the various voting places in such city on the date specified in such order and conduct such election in the manner provided by law.laT.

The election shall be by ballot, which shall be prepared by the electoral board of the city and on which shall be printed the following question:

shall be prepared by the electoral board of the city and on which shall "Shall casino gaming be permitted at a casino gaming establishment in ________________________ (name of city and location) as may be approved by the Virginia Lottery Board? [ ] Yes [ ] No" InS the blank shall be inserted the name of the city in which such election is held and the proposed location of the casino gaming establishment.

Any voter desiring to vote "Yes" shall mark in the square provided for such purpose immediately preceding the word "Yes," leaving the square immediately U preceding the word "No" unmarked.

Any voter desiring to vote "No" shall mark in the square provided for such purpose immediately preceding the word "No," leaving the square immediately preceding theShe word "Yes" unmarked.

E.certified by the electoral board to the court ordering such election.

TheThereupon, ballotssuch court shall beenter counted,an order proclaiming the returnsresults madeof such election and canvasseda asduly incertified othercopy elections,of andsuch theorder resultsshall certifiedbeI bytransmitted to the electoralDepartment boardand to the courtgoverning orderingbody of such election.city.

Thereupon,T suchF. court shall enter an order proclaiming the results of such election and a duly certified copy of such order shall be of 3 transmitted to the Department and to the governing body of such city.

bodyWhen ofan anyeligible suchhost city thatis holdslocated awithin local25 referendummiles pursuantof toanother thiseligible sectionhost thatcity, subsequentlythe failsgoverning shallbody beof prohibitedany fromsuch holdingcity anotherthat holds a local referendum onpursuant theto samethis questionsection untilthat thesubsequently otherfails eligibleshall host city has had a reasonable opportunity to hold a local referendum pursuant to this section.

For Turposespurposes of this subsection, a "reasonable opportunity" shall not exceed the date of the 2023 regular geEeral election unless a court of competent jurisdiction sets an alternative date.

the 2023 regular geReral G.

A subsequent local referendum shall be required if a license has not been granted by the Board 2.within five years of the court order proclaiming the results of the election.

That for the purposes of subsection F of § 58.1-4123 of the Code of Virginia, as amended by O this act, the local referendum held on November 2, 2021, by the eligible host city described inDin subdivision A 5 a of § 58.1-4107 of the Code of Virginia, as amended by this act, shall be deemUddeemed the most recent local referendum such that the governing body in such eligible host city shall be prohibited from holding another local referendum on the same question until the governing body CeS in the eligible host city described in subdivision A 5 b of § 58.1-4107 of the Code of VirginiaEVirginia7 as amended by this act, has had a reasonable opportunity to hold a local referendum pursuant to the provisions of § 58.1-4123 of the Code of Virginia, as amended by this act.act.rendum pursuant to th0 3.

DThat the provisions of subdivision B 010 of § 58.1-4107 of the Code of Virginia, as amended b1 this act, shall only apply to the selection of a preferred casino gaming operator by an eligible host city that occurs on or after the effective date of this act.