CHAPTER 184

FORMERLY

HOUSE BILL NO. 18

AS AMENDED BY HOUSE AMENDMENT NO. 1

AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO SECURITY OF LOTTERY OPERATIONS AND THE STATE LOTTERY OFFICE.

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

Section 1. Amend § 4803, Title 29, Delaware Code by adding thereto new subsections to read as follows:

"(h) 'Employee organization' shall mean any organization that admits or seeks to admit to membership employees of a Delaware video lottery agent and which has a purpose the representation of such employees in collective bargaining, grievance representation, labor disputes, salaries, wages, rates of pay, hours of employment, or conditions of work.

(i) 'Key employee' shall mean any officer and any employee of an employee organization who has direct involvement with or who exercises authority, discretion or influence in the representation of employees of a Delaware video lottery agent in collective bargaining, grievance representation, labor disputes, salaries, wages, rates of pay, hours of employment or conditions of work."

Section 2. Amend § 4805(a), Title 29, Delaware Code by adding thereto new paragraphs to read as follows:

"(24)(a) A registration requirement and enforcement procedure for any employee organization representing or seeking to represent employees who are employed by a Delaware video lottery agent. Any employee organization may at any time file with the Office an application for registration as an employee organization. However, an employee organization shall be required to file such registration application within ten (10) business days after it secures a signed authorization card from any employee who is employed by a Delaware video lottery agent.

Any registration statement filed by an employee organization after the signature of an authorization card but prior to the employee organization's petition for election shall not be subject to disclosure by the Lottery Office to any video lottery agent.

(b) Every key employee of an employee organization shall be required to register with the Office at the same time as the application for registration is filed under subparagraph (a) of this paragraph or within thirty (30) days after the date on which such individual is elected, appointed or hired, whichever is later.

(c) The application for registration by an employee organization or key employee of such employee organization may be denied or registration revoked under the following circumstances:

(i) If such employee organization or key employee of such employee organization is in violation of standards established under the Labor-Management Reporting and Disclosure Procedure Prohibition Against Certain Persons Holding Office, 29 U.S.0 504(a).

(ii) The applicant's competence, honesty, or integrity pose a threat to the public interest of the State or to the reputation of or effective regulation and control of the video lottery based on the applicant's associations or by virtue of the fact that the applicant has been convicted of a felony crime of moral turpitude or has been arrested for an act constituting racketeering under 11 ad. C. Section 1502(9)(a)(b)(2)(4-10) within ten (10) years prior to applying for registration hereunder or at anytime thereafter. Any employee or employee organization denied registration based on an arrest for an act constituting racketeering under 11 Di. C. Section 1502(9)(a)(b)(2)(4-10) may apply for reconsideration of registration if subsequently acquitted or a nolle prosequi is entered or the charge is otherwise dismissed. In such instances, the Lottery shall reconsider the applicant's registration based on the criteria previously set forth in this subsection.

(iii) The organization or individual has knowingly made or caused to be made any written statement to any representative of the Office or the Delaware State Police or who has orally responded to an official inquiry by the Office, its employees or agents, which was at the time and in light of circumstances under which it was made false or misleading.

(iv) The organization or key employee thereof holds or obtains a direct financial interest in any video lottery agent, provided the employee organization is provided a thirty (30) day period to divest of any such direct financial interest.

The Delaware State Police shall conduct the background checks required by this paragraph. The failure of any key employee to satisfy the requirements of paragraph (c)(i-iv) may constitute grounds for suspension of the registration of the employee organization if the organization does not remove the key employee from his duties as defined in 29 ad. C. Section 4803(i). The employee organization will be given a reasonable opportunity to remove or replace any key employee found to be in violation of paragraph (c)(i-iv).

(d) All registration statements filed under this paragraph shall be valid for a one- year period and a renewed registration form or an updated supplemental registration form must be filed annually. The entity or individual filing such form is under a continuing duty to promptly notify the Director of any changes in disclosed information.

(e) The Secretary of Finance shall, within a reasonable time, if requested by the Director, appoint a hearing officer to determine whether the application for registration shall be denied or registration suspended or revoked. The hearing officer shall be required to hold a hearing in conformance with the requirements of §10131 of this Title. In any hearing, the Delaware Uniform Rules of Evidence shall be in effect. The denial of an application of registration or the suspension or revocation of a registration shall be bound by the provisions of §10133 and §10134 of this Title. The hearing officer's decision to deny an application of registration or to suspend or revoke a registration shall be appealable to the Superior Court under the provisions of the Delaware Administrative Procedures Act. All applications for registration shall be deemed approved unless the Director notifies the applicant within sixty (60) days of his or her decision not to approve and to appoint a hearing officer under this paragraph, or unless extenuating circumstances require a longer period, in which case the Director shall act with all deliberate speed to complete the process. Any employee organization may continue to provide services to employees of a Delaware video lottery agent during the review of the application process and the appeal process, except where the employee organization is found in violation of paragraph (c)(iv) or there has been a previous violation of paragraph (c)(i-iii) by the employee organization within the previous ten (10) years.

(f) Information requested in the Application of Registration provided for under this paragraph shall be adopted as part of the Office's official rules and regulations upon notice and opportunity for a hearing under the provisions of the Delaware Administrative Procedures Act.

(25) The Director shall adopt procedures under the Delaware Administrative Procedures Act for employment investigations of the honesty, integrity, reputation, and associations of Office employees in order to determine that the employee's employment does not pose a threat to the public interest of the State or the integrity of the Office. The procedures and any rules and regulations shall require any person seeking employment for compensation with the Office for a position which has direct access to lottery tick sales agents, video lottery agents, or vendors to submit his or her fingerprints and other relevant information in order to obtain the individual's entire federal and state criminal history record. The Delaware State Police shall conduct the investigations required und such rules and regulations. The rules and regulations shall require new employees submit fingerprints for purposes of the state and federal criminal history checks."

Approved July 16, 1997