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<section article="gcr" article_name="Criminal Law" number="12-304" title_number="12" title_name="Gaming -- Statewide Provisions" subtitle_number="3" subtitle_name="Slot Machines">
  <level label="a">
    <text>In this section, “eligible organization” means:</text>
    <level label="1">
      <text>a nonprofit organization that:</text>
      <level label="i">
        <text>has been located in a county listed in subsection (b) of this section for at least 5 years before the organization applies for a license under subsection (e) of this section; and</text>
      </level>
      <level label="ii">
        <text>is a bona fide:</text>
        <level label="1">
          <text>fraternal organization;</text>
        </level>
        <level label="2">
          <text>religious organization; or</text>
        </level>
        <level label="3">
          <text>war veterans’ organization; or</text>
        </level>
      </level>
    </level>
    <level label="2">
      <text>a nonprofit organization that has been affiliated with a national fraternal organization for less than 5 years and has been located in a county listed in subsection (b) of this section for at least 50 years before the nonprofit organization applies for a license under subsection (e) of this section.</text>
    </level>
  </level>
  <level label="b">
    <text>This section applies in:</text>
    <level label="1">
      <text>Caroline County;</text>
    </level>
    <level label="2">
      <text>Cecil County;</text>
    </level>
    <level label="3">
      <text>Dorchester County;</text>
    </level>
    <level label="4">
      <text>Kent County;</text>
    </level>
    <level label="5">
      <text>Queen Anne’s County;</text>
    </level>
    <level label="6">
      <text>Somerset County;</text>
    </level>
    <level label="7">
      <text>Talbot County;</text>
    </level>
    <level label="8">
      <text>Wicomico County; and</text>
    </level>
    <level label="9">
      <text>Worcester County.</text>
    </level>
  </level>
  <level label="c">
    <level label="1">
      <text>In this subsection, a console or set of affixed slot machines is not an individual slot machine.</text>
    </level>
    <level label="2">
      <text>Notwithstanding any other provision of this subtitle, an eligible organization may own and operate a slot machine if the eligible organization:</text>
      <level label="i">
        <text>obtains a license under subsection (e) of this section for each slot machine;</text>
      </level>
      <level label="ii">
        <text>owns each slot machine that the eligible organization operates;</text>
      </level>
      <level label="iii">
        <text>owns not more than five slot machines;</text>
      </level>
      <level label="iv">
        <text>locates and operates its slot machines at its principal meeting hall in the county in which the eligible organization is located;</text>
      </level>
      <level label="v">
        <text>does not locate or operate its slot machines in a private commercial facility;</text>
      </level>
      <level label="vi">
        <text>uses:</text>
        <level label="1">
          <text>at least one–half of the net after payout proceeds from its slot machines for the benefit of a charity; and</text>
        </level>
        <level label="2">
          <text>the remainder of the proceeds from its slot machines to further the purposes of the eligible organization;</text>
        </level>
      </level>
      <level label="vii">
        <text>does not use any of the proceeds of the slot machine for the financial benefit of an individual; and</text>
      </level>
      <level label="viii">
        <text>reports annually under affidavit to the State Comptroller:</text>
        <level label="1">
          <text>the income of each slot machine; and</text>
        </level>
        <level label="2">
          <text>the disposition of the income from each slot machine.</text>
        </level>
      </level>
    </level>
  </level>
  <level label="d">
    <text>An eligible organization may not use or operate a slot machine unless:</text>
    <level label="1">
      <text>the slot machine is equipped with a tamperproof meter or counter that accurately records gross receipts; and</text>
    </level>
    <level label="2">
      <text>the eligible organization keeps an accurate record of the gross receipts and payoffs of the slot machine.</text>
    </level>
  </level>
  <level label="e">
    <level label="1">
      <level label="i">
        <text>The State Comptroller shall regulate the operation of slot machines under this section.</text>
      </level>
      <level label="ii">
        <text>The State Comptroller may adopt regulations to implement the requirements of this section, including requiring audits of the annual reports submitted to the State Comptroller under subsection (c)(2)(viii) of this section.</text>
      </level>
    </level>
    <level label="2">
      <text>Before an eligible organization may operate a slot machine under this section, the eligible organization shall obtain a license for the slot machine from the State Comptroller.</text>
    </level>
    <level label="3">
      <level label="i">
        <text>The State Comptroller shall:</text>
        <level label="1">
          <text>charge an annual fee for each license for a machine; and</text>
        </level>
        <level label="2">
          <text>issue a license sticker to the applicant.</text>
        </level>
      </level>
      <level label="ii">
        <text>The applicant shall place the sticker on the slot machine.</text>
      </level>
      <level label="iii">
        <text>The State Comptroller shall set the amount of the annual fee so that the total proceeds of the annual fee equal an amount directly related to administrative costs of the State Comptroller to regulate the operation of slot machines under this section.</text>
      </level>
    </level>
    <level label="4">
      <text>In the application to the State Comptroller for a license, one of the principal officers of the eligible organization shall certify under affidavit that the organization:</text>
      <level label="i">
        <text>is an eligible organization; and</text>
      </level>
      <level label="ii">
        <text>will comply with this section.</text>
      </level>
    </level>
  </level>
  <level label="f">
    <level label="1">
      <text>A principal officer of the eligible organization may not intentionally misrepresent a statement of fact on the application.</text>
    </level>
    <level label="2">
      <text>A person who violates this subsection is guilty of perjury and on conviction is subject to the penalty provided under Title 9, Subtitle 1 of this article.</text>
    </level>
  </level>
  <level label="g">
    <text>The Comptroller may not issue a license for a slot machine to an eligible organization located in Ocean City that is located east of South and North Baltimore Avenues.</text>
  </level>
</section>
