CHAPTER 189

FORMERLY

SENATE BILL NO. 379

AS AMENDED BY

SENATE AMENDMENT NO. 1

AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE TO AUTHORIZE THE PERFORMANCE OF THE SPANISH GAME OF JAI-ALAI AND WAGERING THEREON AND PROVIDING A SUPPLEMENTARY APPROPRIATION TO THE DELAWARE JAI-ALAI COMMISSION.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend Chapter 48, of Title 29 of the Delaware Code by adding the words "Subchapter 1" as a heading preceding §4801 and substituting the word "subchapter" for the word "Chapter" wherever the same shall appear therein.

Section 2. Amend Chapter 48 of Title 29 of the Delaware Code by adding a new Subchapter II to read as follows:

',SUBCHAPTER II.

§4820. Statement of Purpose.

It is the purpose of this Subchapter to permit wagering or betting upon exhibitions of the Spanish game of jai-alai, which exhibitions are to be conducted only by those licensed under this Subchapter and in accordance with the provisions hereof. This gambling activity is deemed by the General Assembly to be a lottery and permissible under the provisions of the Constitution of this State. It is the opinion of the General Assembly that permitting such gambling activity is in the best interest of the citizens of this State. It will raise funds for the State and the City of Wilmington, provide a recreational activity, create numerous job opportunities and will provide the State and political subdivisions thereof with other economic benefits. It is also the purpose of this Subchapter to exercise State control over all aspects of the operation of a jai-alai meeting in this State including but not limited to control over the conduct of the game of jai-alai, control over the conduct of the wagering or betting thereon and control over the conduct of any concessionaires providing food, beverages, parking or other goods and services on the premises where any such meeting is conducted.

§4821. Definitions.

As Used in this Subchapter.

(1) "Commission" means the Delaware Jai-Alai Commission.

(2) "Commissioner" means a member of the Delaware Jai-Alai Commission.

(3) "Director" means the person appointed by the Commission to supervise and regulate the Spanish game of jai-alai.

(4) "Fronton" means a building or enclosure in which the Spanish game of jai-alai is played for public exhibition.

(5) "Jai-Alai" means the Spanish ball game in which 2 or 4 players use a long curved wicker basket strapped to the wrist to catch and hurl a ball against the front wall of a 3-wall court in a manner intended to prevent the opponent from returning the ball before it has bounced more than once.

(6) "Licensee" means a person, firm partnership, joint venture, association or a corporation licensed under this Subchapter to conduct a jai-alai meeting with pari-mutuel betting or licensed to operate any concession providing food, beverages, parking or other goods and services on the premises where a jai-alai meeting is conducted.

(7) "Performances" means any program of jai-alai games for which separate admission is charged.

§4822. Delaware Jai-Alai Commission, Composition; Appointment, Qualifications; Term Compensation, Vacancy.

(a) The Delaware Jai-Alai Commission shall consist of 3 members to be appointed by the Governor. One member shall be appointed for a term of 2 years, one member for a term of 4 years and one member for a term of six years, each term commencing no later than 60 days following the effective date of this Act. Upon the expiration of each initial term, the Commissioners shall be appointed for a term of six years.

(b) No more than two Commissioners shall be of the same political party. Two Commissioners shall be residents of New Castle County and one a resident of Kent or Sussex County.

(c) The Governor shall designate one Commissioner to be chairman.

(d) The salary of each Commissioner shall be $1.00 per year. Commissioners shall be entitled to be paid their reasonable expenses for attending meetings of the Commission.

(e) Vacancies in the Commission shall be filled by the Governor for the unexpired term.

(f) No. Commissioner shall hold political office in the government of this State or any political subdivision thereof either by election or appointment while serving as a Commissioner.

§4823. Conflict of Interest.

No Commissioner or employee of the Commission or member of his immediate family shall directly or indirectly, individually or as a member of a 'firm, partnership, joint venture, association, or as a shareholder of a corporation, have any interest or employment whatsoever in the operation of a jai-alai meeting or in the ownership or leasing of any property, premises or concession used in connection with any jai-alai meeting, or be associated with a licensee in any respect whatsoever. A member of the immediate family is defined as a spouse, parent, child, child's spouse or issue of a child.

§4824. Appointment of Director; Qualifications, Term Compensation, Duties.

(a) The Director shall be appointed by the Commission for a term of 5 years.

(b) The Director:

(1) Shall be a person qualified by administrative experience in the Spanish sport of jai-alai;

(2) Shall be a person of honesty and integrity 'and shall be able to pass a thorough background investigation prior to appointment;

(3) Shall not hold political office in the government of this State or any political subdivision thereof either by election or appointment while serving as Director nor for a period of two years prior to such appointment;

(4) Shall be a citizen of the United States, at least 30 years of age and become a resident of this State within 90 days of appointment; and

(5) Shall serve on a full-time basis and shall not be engaged in any other trade, occupation, business or profession.

(d) The Director shall receive such salary to be determined by the Commission not to exceed $33,000 per year.

(e) As a condition of employment, the Director shall agree in writing that for a period of two years following the termination of his employment as Director:

(1) He will not accept a similar position or serve in a similar capacity in any State contiguous to Delaware; and

(2) He will not acquire or accept any interest in or become associated with any fronton or jai-alai operation in any State contiguous to Delaware.

(f) The Director shall, subject to the rules and regulations of the Commission, administer and coordinate the administrative functions of the Commission. The Commission may delegate to the Director such authority as it deems proper and appropriate for the efficient administration of the provisions of this Chapter.

§4825. Office and Employees.

The Commission shall establish and maintain an office within this State and may appoint such officers, clerks, stenographers, inspectors and such other employees as it deems necessary, all of whom shall be fingerprinted before being employed. The Commission may employ Commission judges who shall be exempt from classified service. All persons employed pursuant to this Section, with the exception of judges, shall be residents of the State of Delaware at the time of and during the full term of their employment.

§4826. Bonding of Employees

The Commission may, if it determines that it is necessary, require any of its employees to give bond in such amount as said Commission may determine. Every such bond when duly executed and approved shall be filed in the office of the Secretary of State. The cost of any such bond so given as aforesaid shall be part of the necessary expenses of the Commission.

§4827. Powers and Duties of Delaware Jai-Alai Commission, Generally.

In addition to specific powers hereinafter granted, the Commission shall have power to enforce the provisions of this Subchapter, and shall make all necessary regulations for that purpose and for carrying out, enforcing and preventing the violation of any of the provisions of this Subchapter, for the inspection of licensed premises, for insuring proper, safe and orderly conduct of jai-alai meetings and for protecting the public against fraud or overcharge. It shall have power generally to do whatever is reasonably necessary for the carrying out of the intent of this Subchapter; and is empowered to call upon other administrative departments of the State government and of municipal governments, State and municipal police departments and prosecuting officers and the Attorney General for such information and assistance as it deems necessary to the performance of its duties.

§4828. Power to Administer Oaths and Take Testimony.

(a) The Commission in conducting any inquiry, investigation or hearing under the provisions of this Subchapter shall have power to administer oaths and take testimony under oath relative to the matter of inquiry or investigation. At any hearing ordered by the Commission, the Commission or such agent having authority by law to issue such process may subpoena witnesses and require the production of records, papers and documents pertinent to such inquiry. Any member of the Commission, or any examiner or employee designated by it, may administer oaths to all witnesses who may be called before the Commission, any member thereof, or any examiner, as the case may be. Subpoenas issued by the Commission shall be signed by a member thereof or an examiner designated by it and attested by the secretary, and may be served by any sheriff, deputy sheriff, constable, or any employee of the Commission and return thereof made to the Commission.

(b) If a person subpoenaed to attend before the Commission, any member or examiner thereof, fails to obey the command of such subpoena without reasonable cause, or if a person in attendance before the Commission, any member or examiner thereof, refuses without lawful cause to be examined or to answer a legal or pertinent question, or to produce a book or paper when ordered to do so by the Commission, any member or examiner thereof, the Commission or any member thereof may apply to the Superior Court in and for the county where such hearing or investigation is being held or any Judge thereon in vacation, who shall have the power of the Court for such purpose, for an order returnable in not less than 2 nor more than 10 days, directing such person to show cause before the Court, or any Judge thereof in vacation, why he should not comply with the subpoena or order of the Commission, Upon the return of such order the Court or Judge, before whom the matter comes on for hearing, shall examine under oath the persons whose testimony may be relevant, and such person shall be given an opportunity to be heard, and if the Court or Judge determines that the person refused without legal excuse to obey the command of such subpoena or to be examined, or to answer a legal or pertinent question, or to produce a book or paper which he was ordered to produce, the Court or Judge may order such person to comply forthwith with the subpoena or order of the Commission, and any failure to obey such order of the Court or Judge may be punished by the Court or Judge as a contempt of the Superior Court.

(c) No person shall be excused from testifying or producing any book document or paper in any investigation or inquiry by or upon hearing before the Commission, or any member or examiner thereof, upon the ground that the testimony, evidence, book, document or paper required of such person may tend to incriminate such person or subject such person to penalty, or forfeiture, but such evidence or the production of such records or papers so produced shall not be used in any criminal proceeding against him. No person so testifying shall be exempt from prosecution or punishment for any perjury committed by .uch person in his testimony. Nothing contained in this Section is intended to give, or shall be construed in any manner to give any corporation immunity of any kind.

§4829. Regulations, Generally.

Without limiting the Commissioner's power to adopt such other regulations as it sees fit pursuant to §4857, the Commission shall adopt regulations:

(a) Prescribing the method and form of application for any license required by this Act. The regulations relating to the grant of a license to conduct a jai-alai meeting shall be adopted within 60 days of the formation of the Commission.

(b) Prescribing the information to be furnished by any applicant or licensee concerning such person's antecedents, habits, character, associates, criminal record, business activities and financial affairs, past or present.

(c) Requiring fingerprinting of an applicant or licensee or employee of a licensee or other methods of identification.

(d) Prescribing the manner and procedure of all hearings conducted by the board or commission or any hearing examiner of the board or commission, including special rules of evidence applicable thereto and notices thereof.

(e) Requiring any applicant to pay all or any part of the fees and costs of investigation of such applicant as may be determined by the Board.

(f) Prescribing the manner and method of collection and payment of fees and issuance of licenses.

(g) Requiring any applicant or licensee to waive any privilege with respect to any testimony at any hearing or meeting of the Board or Commission, except any privilege afforded by the constitutions of the United States or this State.

§4830. Oath and Bond, Failure to Furnish.

Before entering upon the discharge of the duties of his office, each Commissioner shall take an oath that.he will well and faithfully executive all and singular the duties appertaining to this office according to the laws of this State and the rules and regulations adopted by the Commissioner in accordance therewith. Each Commissioner shall give bond to the State with personal or corporate surety or sureties approved by the Governor in the penal sum of $25,000 with the condition that he will well and faithfully execute and perform all and singular the duties appertaining to his office according to the laws of this State and the rules and regulations adopted in accordance therewith. Every bond, when duly executed and approved, shall be filed in the office of the Secretary of State and may be used as evidence in any Court of this State.

The Governor at all times, when, in his opinion, the surety or sureties of any Commissioner shall become or are likely to become invalid or in sufficient shall demand and require the Commissioner forthwith to renew his bond to this State with surety or sureties to be approved by the Governor, in the penalty and according to the form prescribed in this Section.

Any Commissioner who fails to take oath and give bond with surety or sureties as required by this Section, within 30 days of his appointment, or fails to renew his bond with surety or sureties within 30 days after the same has been demanded and required by the Governor shall be guilty of neglect of duty and shall be removable as provided in §4831 of this Subchapter.

§4831. Removal of Commissioners from Office.

The Governor shall remove any or all of the Commissioners for inefficiency, neglect of duty or misconduct in office, first giving to him a copy of the charges filed against him or them and an opportunity of being publicly heard in person or by counsel in his or their defense upon not less than 10 days written notice. If any of the Commissioners are removed from office, the Governor shall file in the office of the Secretary of State a complete statement of all charges made against the Commissioner and his findings thereof together with a complete record of the proceedings.

§4832. Records.

The Commission shall keep a record of all proceedings and preserve all books, blueprints, documents and papers belonging to the office of the Commission or entrusted to its care.

§4833. Expenses; Deposit of Receipts.

The expenses of the Commission shall be paid out of the appropriation made to the Commission by the General Assembly and not from other receipts and money received by the Commission. All receipts and money received by the Commission shall be reported and paid over to the Secretary of the Department of Finance.

§4834. Annual Report.

The Commission shall make an annual fiscal year report to the Governor and the General Assembly on or before the 1st day of September in each year. The report shall include a statement of receipts and disbursements by the Commission and any additional information and recommendations which the Commission deems appropriate.

§4835. License to Conduct Jai-Alai Meeting_and Allied Concession.

(a) No person, firm, partnership, association or corporation shall hold or conduct any meeting within this State for the exhibition of the game of jai-alai with wagering thereon, for any stake, purse or reward, or operate any concession at such meeting, including but not limited to, food and beverage services, parking facilities, or other goods and services, without being licensed by the Commission. Any such licensee authorized to conduct a meeting with wagering thereon or to operate such a concession shall indemnify and save harmless the State of Delaware against any and all actions, claims, and demands of whatever kind or nature which the State may sustain or incur by reason or in consequence of issuing such license.

(b) Any license to conduct a jai-alai meeting with wagering thereon for any stake, purse or reward shall be limited solely to conducting such meeting within the corporate boundaries of The City of Wilmington.

§4836. Application Requirements.

(a) Any person, firm, partnership, joint venture, association or corporation desiring to conduct a jai-alai meeting with wagering thereon within this State shall apply to the Commission for a license within 30 days after the adoption of provisions by the Commission of regulations pursuant to §4829 (a) on forms provided by the Commission.

(b) Such application shall specify:

(1) The dates for the operation of the jai-alai meeting to be applied for pursuant to §4869 if the license is issued;

(2) The blueprints and specifications of the fronton where the meeting is to be conducted; provided, however, that it shall not be necessary for the applicant to submit blueprints and specifications with the application if the jai-alai meeting for which a license is requested is to be conducted at a fronton for which the Commission granted a license for the preceding year.

(c) Any person, firm, partnership, joint venture, or corporation desiring to own or operate a concession, including but not limited to food and beverage services, parking facilities, or other goods and services at a jai-alai meeting with wagering thereon shall apply for a license to the Commission on forms provided by the Commission.

(d) Any applicant for a license must produce information, documentation and assurances concerning the following qualification criteria:

(1) Each applicant shall produce such information, documentation and assurances concerning financial background and resources as may be required to establish by clear and convincing evidence the financial stability, integrity and responsibility of the applicant, including but not limited to bank references, business and personal income and disbursement schedules, tax returns and other reports filed with governmental agencies, and business and personal accounting and check records and ledgers. In addition, each applicant shall, in writing, authorize the examination of all bank accounts and records as may be deemed necessary by the Commission or the division;

(2) Each applicant shall produce such information, documentation and assurances as may be necessary to establish by clear and convincing evidence the integrity and reputation of all financial backers, investors, mortgagees, bond holders, and holders of indentures, notes or other evidences of indebtedness, either in effect or proposed, which bears any relation to the construction, financing and operation of a fronton and the conducting of a meeting for the exhibition of the game of jai-alai with wagering thereon. The reputation and integrity of financial sources shall be judged upon the same standards as the applicant. In addition, the applicant shall produce whatever information, documentation or assurance which may be required to establish by clear and convincing evidence the adequacy of financial resources both as to the completion of the fronton and the operation of the fronton;

(3) Each applicant shall produce such information, documentation and assurances of good character as may be required to establish by clear and convincing evidence the applicant's good reputation for honesty and integrity. Such information shall include, without limitation, information pertaining to family, habits, character, criminal and arrest record, business activities, financial affairs, and business, professional and personal associates, covering at least the ten-year period immediately preceding the filing of the application. Each applicant shall notify the Commission of any civil judgements obtained against any such applicant pertaining to antitrust or security regulation laws of the federal government, of this State or of any other State, jurisdiction, province or country. In addition, each applicant shall produce letters of reference from law enforcement agencies having jurisdiction in the applicant's place of residence and principal place of business, which letters of reference shall indicate that such law enforcement agencies do not have any pertinent information concerning the applicant, or if such law enforcement agency does have information pertaining to the applicant, shall specify what that information is. If the applicant has conducted gaming operations in a jurisdiction which permits such activity, the applicant shall produce letters of reference from the gaming enforcement or control agency which shall specify the experiences of such agency with the applicant, his associates, and his gaming operation; provided, however, that if no such letters are received within 60 days of request therefor, the applicant may submit a statement under oath that he is or was during the period such activities were conducted in good standing with such gaming enforcement or control agency.

(4) Each applicant shall produce such information, documentation and assurances as may be required to establish by clear and convincing evidence that the applicant has sufficient business ability and expertise as to jai-alai operation. The applicant shall produce the names of all proposed key jai-alai employees as they become known and a description of their respective or proposed responsibilities, and a full description

of security systems and management controls proposed for the fronton and related facilties.

§4837. Application, Individuals, Partnerships, Firms or Associations.

As to applications filed by individuals, partnerships, firms or associations, the application shall specify as to each individual, partner, member of firm or associate:

(1) His nave and address;

(2) All addresses at which he has resided for ten years previous to the application;

(3) His profession or occupation;

(4) The name and address of all businesses in which he has an interest;

(5) His criminal record, if any;

(6) A financial statement listing all assets, liabilities and sources of income;

(7) His fingerprints.

§4838. Licensing of Corporation.

In addition to the requirements of this Subchapter, a corporation applying for or holding a license from the

Commission shall comply with the additional requirements hereinafter stated in Sections 4839 through 4862.

§4839. "Director" Defined.

"Director" means any director of a corporation or any person performing similar functions with respect to any organization.

§4840. "Equity Security" Defined. "Equity security" means:

(1) Any voting stock of a corporation, or similar security;

(2) Any security convertible, with or without consideration, into such a security, or carrying any warrant or right to subscribe to or purchase such a security;

(3) Any such warrant or right; or

(4) Any security having a direct or indirect participation in the profits of the issuer.

§4841. "Holding Company" Defined.

(a) "Holding company" means any corporation, firm, partnership, trust or other form of business organization not a natural person which, directly or indirectly:

(1) Owns;

(2) Has the power or right to control; or

(3) Holds with power to vote, all or any part of the outstanding voting securities of a corporation which holds or applies for a State jai-alai or concession license.

(b) For the purposes of this Section, in addition to any other reasonable meaning of the words used, a holding company "indirectly" has, holds or owns any power, right or security mentioned in subsection (a) if it does so through any interest

in a subsidiary or successive subsidiaries, however many such subsidiaries may intervene between the holding company and the corporate licensee or applicant.

§4842. "Intermediary Company" Defined.

"Intermediary company" means any corporation, firm, partnership, trust or other form of business organization other than a natural person which:

(1) Is a holding company with respect to a corporation which holds or applies for a state gaming license; and

(2) Is a subsidiary with respect to any holding company.

§4843. "Publicly Traded Corporation" Defined.

"Publicly traded corporation" means any corporation or other legal entity except a natural person which:

(1) Has one or more classes of securities registered pursuant to section 12 of the Securities Exchange Act of 1934, as amended; or

(2) Is an issuer subject to section 15 (d) of the Securities Exchange Act of 1934, as amended.

§4844. "Subsidiary" Defined. "Subsidiary" means:

(a) Any corporation all or any part of whose outstanding equity securities are:

(1) Owned;

(2) Subject to a power or right of control; or

(3) Held with power to vote, by a holding company or intermediary company; or

(b) Any firm, partnership, trust or other form of business organization not a natural person, all or any interest in which is:

(1) Owned;

(2) Subject to a power or right of control; or

(3) Held with power to vote, by a holding company or intermediary company.

§4845. State Policy Concerning Issuance of Gaming Licenses to Corporation; Waiver of Requirements,

(a) The policy of the State of Delaware with respect to the issuance of State gaming licenses to corporations is:

(1) To broaden the opportunity for investment in gaming through the pooling of capital in corporate form;

(2) To maintain effective control over the conduct of gaming by corporate licensees;

(3) To restrain any speculative promotion of the stock or other securities of gaming enterprises.

(b) The Commission may waive, either selectively or by general regulation, one or more of the requirements of §4846 to §4862, inclusive, if it makes a written finding that such waiver is consistent with the State policy set forth in this Subchapter.

§4846. Qualification of Corporation for Receipt of State Gaming License.

In order to be eligible to receive a jai-alai or concession license, a corporation shall:

(1) Be incorporated:

(a) In the State of Delaware, although such corporation may be a wholly or partly owned subsidiary of a corporation which is chartered in another State of the United States; or

(b) In another State of the United States, if all persons having any direct or indirect interest of any nature in such corporation are licensed as required by §4849 and any applicable regulations of the Commission.

(2) Maintain an office of the corporation on the licensed premises.

(3) Comply with all of the requirements of the laws of the State of Delaware pertaining to corporations; and

(4) Maintain a ledger in the principal office of the corporation in Delaware, which shall:

(a) At all times reflect the ownership of every class of security issued by the corporation; and

(b) Be available for inspection by the Commission and its authorized agents, at all reasonable times

without notice.

§4847. Disposition of Securities by Corporate Licensee Ineffective Without Advance Commission Approval; Restrictions on Security Ownership; Contents of Certificates.

(1) The sale, assignment, transfer, pledge or other disposition of any security issued by a corporation which holds a State license is ineffective unless approved in advance by the Commission.

(2) If at any time the Commission finds that an individual owner of any such security is unsuitable to continue as a jai-alai or concession licensee in this State, such owner shall immediately offer such security to the issuing corporation for purchase. The corporation shall purchase the security so offered, for cash at fair market value, within 10 days after the date of the offer.

(3) Beginning upon the date when the Commission serves notice of a determination of unsuitability pursuant to subsection 2 upon the corporation, it is unlawful for the unsuitable owner:

(a) To receive any dividend or interest upon any such security;

(b) To exercise, directly or through any trustee or nominee, any voting right conferred by such security; or

(c) To receive any remuneration in any form from the corporation, for services rendered or otherwise.

(4) Every security issued by a corporation which holds a jai-alai or concession license shall bear a statement, on both sides of the certificate evidencing such security, of the restrictions imposed by this section.

§4848. Registration of Corporation with Commission; Required Information.

The corporation which applies for a State jai-alai or concession license shall register as a corporation with the Commission and shall provide the following information to the Commission:

(1) The organization, financial structure and nature of the business to be operated, including the names,

personal history and fingerprints of all officers, directors and key employees, and the names, addresses and number of shares held by all stockholders;

(2) The rights and privileges acquired by the holders of different classes of authorized securities, including debentures;

(3) The terms on which securities are to be offered;

(4) The terms and conditions of all outstanding loans, mortgages, trust deeds, pledges or any other indebtedness or security device;

(5) The extent of the equity security holding in the corporation of all officers, directors and underwriters, and their remuneration as compensation for services, in the form of salary, wages, fees or otherwise;

(6) Remuneration to persons other than directors and officers exceeding $30,000 per annum;

(7) Bonus and profit-sharing arrangements;

(8) Management and service contracts;

(9) Options existing, or to be created;

(10) Balance sheets for at least the 3 preceding fiscal years, of, if the corporation has not been incorporated for a period of 3 years, balance sheets from the time of its incorporation. All balance sheets shall be certified by independent public accountants certified or registered in the State of Delaware;

(11) Profit and loss statements for at least the 3 preceding fiscal years, or, if the corporation has not been incorporated for a period of 3 years profit and loss statements from the time of its incorporation. All profit and loss statements shall be certified by independent public accountants certified or registered in the State of Delaware;

(12) Any further financial data which the Commission may deem necessary or appropriate for the protection of the State of Delaware, or the sport of jai-alai, or both.

§4849. Individual Licensing of Corporate Officers, Directors, Other Persons.

All officers and directors of the corporation which holds or applies for a State jai-alai or concession license must be licensed individually according to the provisions of this Subchapter, and if, in the judgment of the Commission, the public interest will be served by requiring any or all of the corporation's individual stockholders, lenders, holders of evidence of indebtedness, underwriters, key executives, agents or employees to be licensed, the corporation shall require such persons to apply for a license in accordance with the laws and requirements in effect at the time the Commission requires such licensing.

§4850. Limitation on Certain Corporate Powers After Licensing; Commission Approval.

(1) After licensing pursuant to §4849, but before the corporation may issue or transfer any security to any person, it shall file a report of its proposed action with the Commission, which report shall request the approval of the Commission. The Commission shall have 90 days within which to approve or deny the request. If the Commission denies the request, the corporation shall not issue or transfer any such security.

(2) After licensing pursuant to §4849, the corporation shall file a report of each change of the corporate officers and the members of its board of directors with the Board and Commission. The Commission shall have 90 days within which to approve or disapprove such change. During such 90-day period and thereafter if the Commission does not disapprove the change, such officer or member of the Board of Directors shall be entitled to exercise all powers of the office to which he was so elected or appointed.

§4851. Reports, Statements to be Furnished by Corporate Licensee.

(1) After licensing pursuant to §4849, the corporation shall:

(a) Report to the Commission in writing any change in corporate personnel who have been designated by the Commission as key executives;

(b) Furnish the Commission an annual profit and loss statement and an annual balance sheet.

(2) The Commission may require that any such corporation furnish it with a copy of its federal income tax return within 30 days after such return is filed with the Federal Government.

§4852. Termination of Employment of Unsuitable Key Executives; Licensing of Successors.

(1) If the Commission finds any key executive of a corporation which holds a state gaming license unsuitable to hold a gaming license in the State of Delaware, the corporation shall, within 30 days of notification by registered or certified United States mail to the corporation of such finding, terminate the appointment or employment of any such unsuitable person;

(2) If the corporation names a person to replace the person found unsuitable, it shall promptly notify the Commission of such action and shall cause such person to apply for a jai-alai or concession license in the event his predecessor had such a license.

§4853. Applicability of §4854 to §4857 to Holding, Intermediary Company; Exempted Publicly Traded Corporation.

§4854 to §4857, inclusive apply to every holding company or intermediary company except a publicly traded corporation which has been exempted from the operation of all or some of

the provisions of such sections pursuant to §4858.

§4854. Duties of Holding, Intermediary Company When Corporation Applying for, Holding License is or Becomes Subsidiary; Investigations; Unsuitable Persons; Securities.

(1) If the corporation applying for or holding a license is or becomes a subsidiary, each holding company and each intermediary company with respect thereto must:

(a) Qualify to do business in the State of Delaware;

(b) If it is a corporation, register with the Commission and furnish the Commission:

(1) A complete list of all stockholders when it first registers, and annually thereafter, within 30 days after the annual meeting of the stockholders of the corporation, showing the number of shares held by each;

(2) The names of all corporate officers within 30 days of their appointment;

(3) The names of all members of the board of Directors within 30 days of their election.

(c) If it is a firm, partnership, trust or other form of business organization, it must register with the Commission and furnish it such analogous information as the Commission may prescribe.

(2) The Commission may in its discretion make such ivestigations concerning the officers, directors, underwriters, security holders, partners, principals, trustees or direct or beneficial owners of any interest in any holding company or intermediary company as it deems necessary, either at the time of initial registration or at any time thereafter.

(3) If at any time the Commission finds that any person owning, controlling or holding with power to vote all or any part of any class of security of, or any interest in, any holding company or intermediary company is unsuitable to be connected with a licensed enterprise, it shall so notify such unsuitable person, the holding company or intermediary company, or both. Such unsuitable person shall immediately offer such security to the issuing corporation, or such interest to the firm, partnership, trust or other business organization, for purchase. The corporation shall purchase the security so offered, or the firm, partnership, trust or other business organization shall purchase the interest so offered, for cash at fair market value within 10 days after the date of the offer.

(4) Beginning upon the date when the Commission serves notice of a determination of unsuitability pursuant to subsection 3, it is unlawful for the unsuitable person:

(a) To receive any dividend or interest upon any such securities, or any dividend, payment or distribution of any kind from any holding company or intermediary company;

(b) To exercise, directly or indirectly or through any proxy, trustee or nominee, any voting right conferred by such securities or interest; or

(c) To receive any remuneration in any form from the corporate gaming licensee, or form any holding company or intermediary company with respect thereto, for services rendered or otherwise.

(5) Every security issued by a holding company or intermediary company which directly or indirectly:

(a) Owns;

(b) Has the power or right to control; or

(c) Holds with power to vote, all or any part of the outstanding equity securities of a corporate jai-alai or concession licensee shall bear a statement, on both sides of the certificate evidencing such security, of the restrictions imposed by this section.

(6) A holding company or intermediary company subject to subsection 1 shall not make any public offering of any of its securities unless such public offering has been approved by the Commission.

(7) The Commission may, at any time and from time to time, by general regulation or selectively impose on any holding company or intermediary company any requirement not inconsistent

with law which it may deem necessary in the public interest. Without limiting the generality of the preceding sentence, any such requirement may deal with the same subject matter as, but be more stringent than the requirements imposed by §4839 to §4857, inclusive.

§4855. Suitability, Licensing of Certain Officers, Employees of Holding, Intermediary Company; Suspension of Suitability, License by Commission.

(1) Each officer, employee, director, partner, principal, trustee or direct or beneficial owner of any interest in any holding company or intermediary company, who the Commission determines is, or is to become, engaged in the administration or supervision of, or any other involvement with, the licensed activities of a corporate licensee, must be found suitable therefor and may be required to be licensed by the Commission, prior to such engagement.

(2) If any officer, employee, director, partner, principal, trustee or direct or beneficial owner required to be found suitable pursuant to subsection 1 fails to apply for a jai-alai or concession license within 30 days after being requested so to do by the Commission, or is not found suitable by the Commission, or his suitability or license is rescinded after such finding by the Commission, the holding company or intermediary company, or both, shall immediately remove such officer, employee, director, partner, principal, trustee or owner from any position wherein he is engaged in the administration or supervision of, or any other involvement with, the licensed activities of a corporate licensee. If the Commission suspends the suitability or license of any such officer, employee, director, partner, principal trustee or owner, the holding company or intermediary company, or both, shall, immediately and for the duration of such suspension, suspend such person from performing any duties wherein he is engaged in administration or supervision, of the jai-alai or concession activities of the corporate licensee and from any other involvement therewith.

§4856. Information to be Furnished Commission when Corporation

Applying for, Holding License is or Becomes Subsidiary

If the corporation applying for or holding a license

is or becomes a subsidiary, each holding company and intermediary company shall furnish the Commission the following information:

(1) The organization, financial structure and nature of the business it operates;

(2) The terms, position, rights and privileges of the different classes of securities outstanding;

(3) The terms on which its securities are to be, and during the preceding 3 years have been, offered to the public or otherwise;

(4) The terms and conditions of al] outstanding loans, mortgages, trust deeds, pledges or any other indebtedness or security device pertaining to the corporate jai-alai or concession licensee;

(5) The extent of the security holding or other interest in the holding company or intermediary company of all officers, employees, directors, underwriters, partners, principals, trustees or any direct or beneficial owner, and any remuneration as compensation for their services, in the form of salary, wages, fees or by contract, pertaining to the corporate jai-alai or concession licensee;

(6) Remuneration to others than directors and officers exceeding $40,000 per annum;

(7) Bonus and profit-sharing arrangements;

(8) Management and service contracts;

(9) Options existing or to be created in respect of their securities or other interests;

(10) Balance sheets, certified by independent certified public accountants, for not more than the 3 preceding fiscal years, if the holding company or intermediary company has not been in existence more than 3 years, balance sheets from the time of its establishment;

(11) Profit and loss statements, certified by independent certified public accountants, for not more than the 3 preceding fiscal years, or, if the holding company or intermediary company has not been in existence more than 3 years, profit and loss statements from the time of its establishment.

(12) Any further financial statements which the Commission may deem necessary or appropriate for the protection of the State of Delaware;

(13) An annual profit and loss statement and an annual balance sheet, and a copy of its annual federal income tax return, within 30 days after such return is filed with the Federal Government.

§4857 Disciplinary Action by Commission for Noncompliance by

Corporate Licensee, Holding, Intermediary Company.

If any corporate licensee, or if any holding company or intermediary company with respect thereto, does not comply with the laws of the State of Delaware and the regulations of the Commission, the Commission may, in its discretion, do any one, all or a combination of the following:

(1) Revoke, limit, condition or suspend the jai-alai or concession license of the corporate licensee; or

(2) Fine the persons involved, or the corporate licensee, or such holding company or intermediary company, in accordance with.the laws of the State of Delaware and the regulations of the Commission.

§4858. Exemption of Publicly Traded Corporations from Compliance with Certain Provisions; Compliance with §4859 to §4862.

Unless the Commission deems it necessary and appropriate for the protection of the State, licensed gambling, or both, the Commission shall exempt publicly traded corporations from compliance with:

(1) the provisions of subsection (4) of §4847;

(2) all of the provisions of §4854, §4855, and §4856.

Such corporations shall comply instead with the provisions of §4859 through §4862.

§4859. Duties of a Publicly Traded Corporation When Corporation Applying for, Holding State Jai-Alai or Concession License is or Becomes Owned in Whole or in Part or Controlled by such Publicly Traded Corporation; Investigations.

(1) If a corporation applying for or holding a State Jai-Alai or concession license is or becomes owned in whole or in part or controlled by a publicly traded corporation, such publicly traded corporation must:

(a) Maintain a ledger in the principal office of its subsidiary which is licensed to conduct jai-alai or concessions in the State of Delaware, and which shall:

(1) Reflect the ownership of record of each outstanding share of any class of equity security issued by the publicly traded corporation. The ledger may initially consist of a copy of its latest list of equity security holders and thereafter be maintained by adding a copy of such material as it regularly receives from the transfer agent for its equity securities of any class which are outstanding.

(2) Be available for inspection by the Commission and its authorized agents at all reasonable times without notice;

(b) Register with the Commission and provide the following information:

(1) The organization, fianancial structure and nature of the business of the publicly traded corporation, including the names of all officers, directors and any employees actively and directly engaged in the administration and supervision of the activities of the corporate jai-alai or concession licensee, and the names, addresses and number of shares held of record by holders of its equity securities;

(1) The rights and privileges accorded the holders of different classes of its authorized equity securities;

(1) The terms on which its equity securities are to be, and during the preceding 3 years have been offered by the corporation to the public or otherwise initially issued by it;

(1) The terms and conditions of all its outstanding loans, mortgages, trust deeds, pledges or any other indebtedness or security device, directly relating to the jai-alai or concession activities of the corporate licensee;

(1) The extent of the equity security holdings of record in the publicly traded corporation of all officers, directors, underwriters and persons owning of record equity securities of any class of the publicly traded corporation, and any payment received by any such person from the publicly traded corporation for each of its 3 preceding fiscal years for any reason whatsoever;

(1) Remuneration exceeding $40,000 per annum to persons other than directors and officers who are actively and directly engaged in administration or supervision of the jai-alai or concession activities of the corporate jai-alai or concession licensee;

(1) Bonus and profit-sharing arrangements of the publicly traded corporation directly or indirectly relating to the jai-alai or concession activities of the corporate jai-alai or concession licensee;

(8) Management and service contracts of the publicly traded corporation directly or indirectly relating to the jai-alai or concession activities of the corporate jai-alai or concession licensee;

(9) Options existing or from time to time created in respect of its equity securities;

(10) Balance sheets, certified by independent public accountants, for at least the 3 preceding fiscal years, or if the publicly traded corporation has not been incorporated for a period of 3 years, balance sheets from the time of its incorporation. These balance sheets may be those filed by it with or furnished by it to the Securities and Exchange Commission;

(11) Profit and loss statements, certified by independent certified public accountants, for at least 3 preceding fiscal years, or, if the publicly traded corporation has not been incorporated for a period of 3 years, profit and loss statements from the time of its incorporation. These profit and loss statements may be those filed by it with or furnished by it to the Securities and Exchange Commission;

(12) Any further information within the knowledge or control of the publicly traded corporation which either Commission may deem necessary or appropriate for the protection of the State of Delaware, or licensed gambling, or both. The Commission may in its discretion make such investigation of the publicly traded corporation or any of its officers, directors, security holders or other persons associated therewith as it deems necessary.

(2) If the publicly traded corporation is a foreign corporation, it must also qualify to do business in the State of Delaware.

(1) The Commission may, at any time and from time to time, by general regulation or selectively impose on any publicly traded corporation any requirement not inconsistent with law which it may deem necessary in the public interest. Without limiting the generality of the preceding sentence, any such requirement may deal with the same subject matter as, but be more stringent than, the requirements imposed by §4839 to §4862, inclusive.

§4860. Suitability, Licensing of Officers, Employees of Publicly Traded Corporation; Rescission of Suitability, License by Commission.

(1) Each officer and employee of a publicly traded corporation, who the Commission determines is, or is to become, actively and directly engaged in the administration or supervision

of the gaming activities of the corporate jai-alai or concession licensee must be found suitable therefor and may be required to be licensed by the Commission.

(2) If any such officer or employee of a publicly traded corporation required to be found suitable individually pursuant to subsection 1 fails to apply for such jai-alai or concession license within 30 days after being requested to do so by the Commission, or is not found suitable by the Commission, or his suitability or license is rescinded after such finding by the Commission, the publicly traded corporation shall immediately

remove such officer or employee from any office or position wherein he is actively and directly engaged in the administration or supervision of the jai-alai or concession activities of the corporate licensee. If the Commission suspends the suitability

of any officer or employee, the publicly traded corporation shall, immediately and for the duration of such suspension, suspend such officers or employees from the performance of any duties wherein they are actively and directly engaged in administration or supervision of the jai-alai or concession activities of the corporate licensee.

§4861. Duties of Publicly Traded Corporation after Registration.

After the publicly traded corporation has registered pursuant to this Subchapter, and while the subsidiary holds a jai-alai or concession license, the publicly traded corporation shall:

(1) Report promptly to the Commission in writing any change in its officers, directors or employees who are actively and directly engaged in the Admininstration or supervison of the jai-alai or concession activities of the corporate jai-alai or concession licensee;

(2) Each year furnish to the Commission a profit and loss statement and a balance sheet of the publicly traded corporation as of the end of such year, and, upon request of the Commission therefor, a copy of the publicly traded corporation's federal income tax return within 30 days after such return is filed with the Federal Government, All such profit and loss statements and balance sheets shall be submitted within 120 days after the close of the fiscal year to which they relate, and may be those filed by the publicly traded corporation with or furnished by it to the Securities and Exchange Commission;

(3) Report promptly to the Commission in writing any changes in ownership of record of its equity securities which indicate that any person has become the owner of record of more than 10 percent of its outstanding equity securities of any class;

(4) Upon request of the Commission furnish to it a copy of any document filed by the publicly traded corporation with the Securities and Exchange Commission or with any national or regional securities exchange to be confidential in nature, or furnished by it to any of its equity security holders of. any class.

§4862. Disciplinary Action by Commission for Noncompliance by Corporate Licensee, Publicly Traded Corporation.

If any corporate licensee owned or controlled by a publicly traded corporation subject to the provisions of this Subchapter, or such publicly traded corporation, does not comply with the laws of the State of Delaware and the regulations of the Commission, the Commission may in its discretion do any one, all or a combination of the following:

(1) Revoke, limit, condition or suspend the jai-alai or concession license of the corporate licensee; or

(2) Fine the persons involved, the corporate licensee or the publicly traded corporation in accordance with the laws of the State of Delaware and the regulations of the Commission.

§4863. Limited Partnerships, Business Trust, Association of a Quasi-Corporate Character.

No general or limited partnership, business trust or organization or other association of a quasi-corporate character shall be eligible to receive or hold any license under.this Subchapter unless all persons having any direct or indirect interest therein of any nature whatsoever, whether financial, administrative, policymaking or supervisory, are individually qualified to be licensed under the provisions of this Subchapter.

§4864. Investigation of Applicant.

(a) The Commission shall investigate each applicant to determine its financial standing and credit, moral character, expertise in conducting exhibitions of the game of jai-alai, experience in managing pari-mutuel wagering, experience in managing any concession, the criminal record, if any, of the individual applicants, and, as to corporations, the crminal record, if any, of the corporation itself, its directors, officers, and shareholders as disclosed in its application and any other matters which the Commission deems pertinent to the issuance of a license.

(b) The blueprints and specifications submitted with the application pursuant to §4836 (b) (2) shall be subject to

the approval of the Commission which, at the expense of the applicant, may order such engineering examination thereof as to the Commission deems necessary. The erection, construction and safety of the fronton of any applicant for a license to conduct a jai-alai meeting under this Subchapter shall be subject to the reasonable inspection of the Commission which may order such engineering examination as it deems necessary at the expense of the applicant, and may employ such inspectors as it considers necessary for that purpose. Any fronton shall be constructed, operated and maintained in conformity with all applicable local laws, codes and regulations.

§4865. Prohibited Licensees.

(a) No license shall be issued to any applicant, who has been convicted of a crime which is a felony under the laws of the State of Delaware, under the laws of the United States of American or under the laws of the jurisdiction where such conviction occurred; nor shall a license be issued to any applicant who has been convicted of any offense against the gambling laws of any jurisdiction or of any offense involving moral turpitude.

(b) No license shall be issued to any corporate applicant who has been convicted of a crime as specified in subsection (a) hereof or to any corporate applicant having an officer, director, or any corporation not publicly traded having a shareholder, as disclosed pursuant to §4848, who has been convicted of a crime as specified in subsection (a) hereof.

§4866. Public Hearing on License Application

After the completion of the Commission's investigation pursuant to §4864, the Commission shall hold a public hearing on any application to conduct a jai-alai meeting notice of which hearing shall be published at least 7 days before the hearing

in a newspaper of general circulation in New Castle County.

§4867. Denial of License.

The Commission may reject any application for a license for good cause which it deems sufficient.

§4868. Issuance of License.

(a) The Commission shall issue a license to conduct a jai-alai meeting or operate a concession to an applicant who has satisfied the requirements of this subchapter where the Commission has found, in its discretion, that said applicant possesses the technical and financial ability to conduct a jai-alai meeting of the highest quality; that the issuance of said license will serve the public convenience and necessity and is in the best interest of the State of Delaware.

(b) The Commission shall make its order, either recommending approval or denial of an application no longer than 90 days after the application and supporting data are completed and filed with the Commission. In the event denial of an application is recommended, the Commission shall prepare and issue its written reasons upon which its order is based.

§4869. Award of Dates.

(a) On or before the first day of May a licensee shall apply to the Commission for an award of dates for performance for the twelve month period commencing on the following September 1st.

(b) On or before the first day of June the Commission shall award dates for not less than 250 nor more than 255 performances during the twelve month period commencing on the following September 1st.

(c) The action of the Commission shall be final.

§4870. Application Fee; License Fee; Performance for Charity.

Any person upon applying to the Commission for a license to conduct a jai-alai meeting or for an award of dates shall at the time of making the application pay to the Secretary of the Department of Finance a fee of $500.

Any person who is granted a license or a licensee who is awarded dates by the Commission shall at the time the license is granted or award made pay to the Secretary of the Department of Finance an additional fee of $250.

§4871. Award of Dates for Charitable Performances.

The Commission, upon joint application of the licensee and a Delaware charitable organization qualified as such under Section 501 (c) (3) of the Internal Revenue Code of 1954, may award in any year not more than five additional performances

the net proceeds of which shall accrue to the charitable organization receiving such approval from the Commission. Net proceeds shall be defined as all taxes otherwise collected under §4884 and all licensee's commissions authorized under §4885.

§4872. Non-Assignability of License.

No license or any interest therein or any interest in any licensee shall be assignable or otherwise transferable without prior written consent of the Commission. A transferee or assignee shall satisfy all of the requirements of the Subchapter for licensing.

§4873. Regulation Concerning Operation of Jai-Alai Meeting, Fines, Suspension, Revocation of License.

(a) The Commission shall adopt regulations governing the operation of a jai-alai meeting, including the regulation of betting in connection therewith, to insure the integrity and • security of the conduct of meetings held pursuant to this Subchapter. Such regulations shall include provision for the imposition of fines, suspension or revocation of licenses for violations thereof.

(a) The Commission shall have the authority to impose a fine of up to five thousand dollars for any violation of such regulation; the players' manager of a jai-alai meeting acting in accordance with such regulations if authorized by the Commission shall have the authority to impose a fine of up to two hundred and fifty dollars or impose a suspension of up to 15 days upon any player who violates such regulations. All fines imposed pursuant to this section shall be paid over to the general fund upon receipt by the Commission. A player fined or suspended by the players' manager, shall have .a right of appeal to the Commission and for a hearing before the Commission. Any person, firm, partnership, association or corporation fined or suspended by the Commission shall have a right of appeal to the Superior Court of the State of Delaware in and for New Castle County. The action of the Commission shall stand unless and until reversed by the Court.

(a) The Commission may compel the production of any and all books, memoranda or documents showing the receipts and disbursements of any person licensed to conduct jai-alai meetings with wagering thereon.

(a) The Commission shall have the power to require that the books and financial or other statements of any person, firm, partnership, corporation or association licensed under the provisions of this Subchapter shall be kept in any manner which the Commission may deem best, and the Commission shall also be authorized to visit, to investigate and to place expert accountants and such other persons as it may deem necessary, in the corporation or association, for the purpose of satisfying itself that the Commission's regulations are strictly complied with.

(a) The Commission may at any time for good cause require the removal of any employee or official employed by any licensee hereunder.

(a) Any license granted under the provisions of this Subchapter shall be subject to the regulations set forth by the Commission, and shall be subject to suspension or revocation for good cause, after giving the licensee a reasonable opportunity for a hearing at which he shall have the right to be represented

by counsel. If any license is suspended or revoked, said Commission shall state the reasons for such suspension or revocation and cause an entry of such reasons to be made on the record books of the Commission. Any licensee aggrieved by the action of the Commission may appeal therefrom to the Superior Court of the State of Delaware in and for New Castle County within thirty days of the final decision of the Commission.

§4874. Inspection of Fronton Prior to Meet.

No less than 5 days prior to the opening of any jai-alai meeting authorized by the Commission, the Commission, at

the expense of the licensee, shall cause to be made an inspection of the fronton where the jai-alai meeting is to be held.

§4875. Rates or Charges; Rules, Regulations and Special Powers of Commission.

(a) The rate of charge by a licensee for admission, or for the performance or any service, or the sale of any article on the premises of a licensee shall be subject to the approval of the Commission.

(b) All proposed extension, additions, or improvements to the fronton owned or leased by a licensee under this Chapter shall be subject to the approval of the Commission.

§4876. Licensee's Annual Financial Statement.

Every licensee shall file with the Department of Finance not later than 4 months after the close of its fiscal year a statement, duly certified by an independent public accountant,

of its receipts from all sources whatsoever during the fiscal year and of all expenses and disbursements, itemized in the manner and form directed by the Department of Finance, showing the net revenue from all sources derived by the licensee during the fiscal year covered by such statement.

§4877. Liability Insurance Of Licensee.

Ten days before any jai-alai meetings may be held under this Subchapter the licensee shall deposit with the Commission

a policy of insurance against personal injury liability which may be sustained at the fronton. The insurance shall be in an amount approved by the Commission, with premium prepaid.

§4878. Limitation on Compensation that may be Paid by Licensee.

No salary, fee or compensation exceeding the sum of $2,000 shall be paid in any calendar year by any person licensed under this Subchapter, except to officials, employees, or others actively engaged in the operations incident to the holding of the jai-alai meeting or in the maintenance and administration of the fronton.

§4879. Enforcement.

All officers of the law shall cooperate with the Commission for the proper enforcement of this Subchapter.

§4880. Aiding or Abetting an Unlicensed Meet; Penalty.

Whoever aids in the conduct of any jai-alai meeting within this State upon which wagering or betting is conducted as provided in this Subchapter except in accordance with a license duly issued and unsuspended or unrevoked by the Commission, shall be fined not less than $500 and not more than $10,000, or imprisoned for two years, or both, for each day of such unauthorized meeting.

§4881. Failure of Licensee to Pay Tax; Penalty.

(a) Whoever, being a licensee, fails or refuses to pay any tax as provided in this Subchapter shall be fined not more than $25,000 in addition to the amount due.

(b) All fines up to the amount found to be due the Department of Finance and paid into Court by a licensee found guilty of violating this section, shall be paid to the Department of Finance.

§4882. Jurisdiction in Superior Court.

The Superior Court of the State of Delaware in and for New Castle County shall have exclusive jurisdiction of violations of §4880 and §4881.

§4883. Pari-Mutuel Betting.

(a) At exhibitions of the game of jai-alai licensed under the provisions of this Subchapter, the licensee shall be permitted to conduct betting or wagering under a pari-mutuel system, so called, including standard pari-mutuel, daily double, exacta, guinella, trifecta an superfecta betting, and such other forms of multiple betting or wagering as the Commission may determine.

(b) The pari-mutuel system, so called, shall not be used or permitted at any location other than the fronton at which the game of jai-alai is licensed to be played.

(c) No licensee shall knowingly permit a minor to be a patron of the pari-mutuel system.

§4884. Tax on Pari-Mutuel and Totalizator Pools; Special Fund.

Every person engaged in the business of conducting a jai-alai meeting under this Subchapter shall pay as a tax a

percentage of the total contributions to all pari-mutuel and totalizator pools conducted or made on each day of the jai-alai meeting at any and every fronton licensed under this Subchapter and on all performances that day at such fronton as follows:

(1) Three-fourths of one percent to the City of Wilmington.

(2) Five percent to this State, plus one-half of the odd cents of all redistributions to be made on pari-mutuel and totalizator pool contributions exceeding the sum equal to the lowest multiple of 10, such odd cents to be calculated upon the basis of each dollar wagered.

The tax shall be computed daily and shall be paid by certified check to the Secretary of the Department of Finance by the close of the next banking day after each day's jai-alai exhibition and any tax not paid upon demand of the Commission shall bear interest at the rate of one percent per month from the time of the delinquency. Failure to pay any such tax upon demand shall be cause for revocation of license.

§4885. Licensee's Commissions on Pari-Mutuel and Totalizator Pools.

The Commission shall authorize as commissions on pari-mutuel and totalizator pools to the licensee operating a jai-alai meeting under this Subchapter, twelve and one-fourth percent of the total daily contributions to all pari-mutuel and totalizator pools conducted or made at the jai-alai meeting and at every performance at the meeting, plus 1/2 of the odd cents of all redistributions to be made on all pari-mutuel and totalizator pool contributions, exceeding the sum equal to the lowest multiple of 10, such odd cents to be calculated upon the basis of each dollar wagered.

§4886. Tax on Admissions; Inspection of Licensee's Records.

(a) Every person licensed to hold a jai-alai meeting under this Subchapter shall pay a tax of 20 cents on each admission to any performance excepting admissions of persons performing any duty or work in connection with the holding of the jai-alai meeting. Ten cents of each admission tax shall be paid to the Department of Finance, and ten cents of each admission tax shall be paid to the City of Wilmington. The licensee may collect such amount from each ticket holder in addition to the amount charged for the ticket of admission.

(b) Accurate records and books shall at all times be kept and maintained by the licensee showing the number of admissions and employees of the licensee on each jai-alai meeting. The Department of Finance, or its duly authorized representative, shall at all reasonable times have access to the admission records

of any licensee for the purpose of examining and checking the same and ascertaining whether or not the proper amount has been, or is being, paid the State. The Department of Finance may also, from time to time, require sworn statements of the number of numbers of such admissions and prescribe plans upon which the reports shall be made.

§4887. Deduction of Federal Taxes from Total of Contributions.

For the purpose of making any of the calculations of amounts payable to the State and to the licensee under §4884 and §4885 of this title, no federal taxes, if any, shall be deducted from the amount of total contributions before applying the percentage specified in those sections.

§4888. Taxes Due City of Wilmington.

All taxes due and payable to the City of Wilmington, if any, under this Subchapter shall be transmitted by the licensee to the Secretary of the Department of Finance who shall deposit the same in a special account entitled "City of Wilmington Jai-Alai Tax Account." Within 14 days following the week for which the tax is due, the Secretary of the Department of Finance shall transfer and deliver all moneys in said account to the City of Wilmington.

§4889, Disposition of Moneys for Unclaimed Pari-Mutuel Tickets.

All sums held by any licensee for ing pari-mutuel tickets not claimed by the entitled thereto within a period of 1 year day of the meet shall be paid by certified of the Department of Finance. payment of outstand person or persons following the last check to the Secretary

§4890. Regulation of Pari-Mutuel Betting.

(a) The Commission shall devise a system of accounting and shall supervise betting at such fronton in such manner that the rights of the State are protected and shall collect all fees and licenses under such regulations as it shall prescribe.

(b) The Commission may authorize members of the Commission or duly authorized agents of the Department of Finance to enter upon the premises of the jai-alai exhibition for the purpose of inspecting books and records, supervising and examining cashiers, ticket sellers, pool sellers and other persons handling money at said event and such other supervision as may be necessary for the maintenance of order at such event.

§4891. Annual Audit of Licensee.

The Commission shall annually cause to be made by some competent person or persons in the Department of Finance a

thorough audit of the books and records of each licensee under this Subchapter, which audit record shall be kept on file in his office at all times and a copy of which shall be forwarded to the Commission immediately upon completion thereof; and each licensee shall permit access to its books and records for the purpose of having such audit made, and

shall produce upon written order of the Department of Finance, any and all papers and information required for such purpose.

§4892. Collection of Fees, Penalties or Tax.

At any time within 5 years after any amount of fees, interest, penalties or tax required to be collected pursuant to the provisions of this Act shall become due and payable, the Commission may bring a civil action in the courts of this State or any other State or of the United States, in the name of the State of Delaware, to collect the amount delinquent, together with interest at one percent per month for the period of the delinquency. An action may be brought whether or not the person owing the amount is at such time a licensee pursuant to the provisions of this Act. If such action is brought in this State, a writ of attachment may be issued and no bond or affidavit prior to the issuance thereof shall be required. In all actions in this State, the records of the Commission shall be prima facie evidence of the determination of the tax or the amount of the delinquency.

§4893. Regulations Governing Occupational Licenses.

The Commission shall adopt regulations governing the issuance of occupational licenses and payment of annual fees for the same in accordance with the following schedule:

(a) Licenses:

1. Concessionaire, for each concession, ten dollars;

2. Concession Employees, two dollars;

3. Jai-alai players, five dollars;

4. Officials and supervisors, five dollars;

5. Pari-mutuel employees, five dollars.

(b) Each applicant for a license under subsection (a) of this section shall be fingerprinted before such license is issued.

§4894. Severability.

If a provision of this Act or its application to a person or circumstance is held invalid, the invalidity shall not affect other provisions of this Act and to this end the provision of this Act are severable."

Section 3. The sum of $50,000.00 is hereby appropriated to the Delaware Jai-Alai Commission for the purpose of paying the expenses of the Commission during the current fiscal year and the funds herein appropriated shall be paid by the State Treasurer out of funds in the General Fund of the State of Delaware not otherwise appropriated. The funds herein appropriated which are unexpended or unencumbered on June 30, 1978 shall revert to the General Fund of the State of Delaware.

Approved August 12, 1977.