CHAPTER I General Provision

(Purpose of this Law) Article 1. This Law shall be to provide for the motor boat racing which is held in order to improve local finance as well as to contribute to the improvement of quality of the motor boat in its efficiency, the overseas propagation concerning motor boat, the development of the industry connected with the manufacture of motor boats and the popularization and publicity of maritime affairs, and also to the tourist industry.

CHAPTER II Sponsor of Racing, Prefectural Association of Motor Boat Racing and the Federation of the Prefectural Association of Motor Boat Racing

(Execution of the Racing) Article 2. To, Do, Fu or prefecture as well as city, town or village to be designated by the Local Finance Commission taking its population, financial condition, etc. into consideration (hereinafter referred to as "the Sponsor of the Racing" ), may, upon the decision of the Assembly concerned, hold the motor boat racing (hereinafter referred to as "the racing" ) in accordance with the provisions of this Law. 2 No person other than the Sponsor of the Racing shall hold the racing, issuing the betting ticket or anything similar thereto.

(Entrusting of Execution of the Racing) Article 3. The Sponsor of the Racing may entrust the execution of the racing to the Prefectural Association of Motor Boat Racing (hereinafter referred to as "the Prefectural Association" ) to be established in To, Do, Fu or prefecture concerned.

(Prefectural Association and Federation of the Prefectural Associations) Article 4. The Prefectural Association shall be established only one in number in each To, Do, Fu and prefecture, with a view to executing the racing. 2 All the Prefectural Associations shall establish the Federation of the Prefectural Associations of Motor Boat Racing only one in number all over the State (hereinafter referred to as "the Federation of the Prefectural Association" ) and be its members;each member shall have an equal right to vote and the proceedings of the general meeting of the Federation of the Prefectural Associations shall be decided by the majority of votes. 3 The purpose of the Federation of the Prefectural Associations shall be the registrations of motor boat race courses (hereinafter referred to as the "race courses" ), operators of boats to participate in the racing, boats and motors to be used for the racing, and judges, as well as the guidance and co-ordination of execution of the racing such as making program of races of each Sponsor of the Racing and promotion of matters concerning the motor boat. 4 The Prefectural Association and the Federation of the Prefectural Associations shall be a juridical person to be established in accordance with the provisions of Article 34 (Establishment of the juridical person for public interests) of the Civil Code (Law No.89 of 1896) respectively.

CHAPTER III Execution of the Racing

(Race Course) Article 5. The racing shall be held in the race course.

(Registration) Article 6. The race course, operators of boats to participate in the racing, boats and motors to be used for the racing and judges shall be those registered in advance by the Federation of the Prefectural Associations. 2 The Federation of the Prefectural Associations shall not refuse the registration of race course, operators of boats, boats, motors and judges, which satisfy the requirements for registration.

(Admission Fee) Article 7. The Sponsor of the Racing shall collect the admission fee from the visitors when the racing is held.

(Betting Ticket) Article 8. The Sponsor of the Racing may sell the betting ticket at its face value of fifty (50) yen or one hundred (100) yen. 2 The Sponsor of the Racing may sell the betting ticket representing ten (10) betting tickets mentioned in the preceding paragraph.

(Prohibition on Purchase, etc. of Betting Ticket) Article 9. Any person who falls under any of the following items shall not purchase or take over the betting ticket;provided that this shall not apply to the cases where the person who falls under item (2) purchase or take over the betting ticket for the racing of which they do not engage themselves in the management: (1) Operators of boats, judges, officers of a Prefectural Association and officers and staffs of the Federation of the Prefectural Associations; (2) Other than those mentioned in the preceding item, race supervisor, executive committee members for the racing, clerks, accountants, liaison men and other persons who engage in the management of the racing.

(Dividend) Article 10. The Sponsor of the Racing shall repay to the holder of the betting ticket on the winner as the dividend a proportionate share in the amount corresponding to seventy-five (75) per cent of net proceeds of the betting tickets of each race (such amount obtained by deducting an amount to be repaid in accordance with the provision of Article 12 from the total proceeds of betting tickets;hereinafter the same). 2 With regard to the net proceeds in case of there being no holder of the betting tickets on the winner, proportionate share in the amount corresponding to seventy-five (75) per cent of net proceeds of the betting tickets of each race shall be repaid as dividends to those who bought the betting tickets on the motor boats, participated in the race, other than the winner. 3 The calculating formula and repaying method of the amount which shall be repaid in accordance with the provisions of the preceding two paragraphs to the holder of betting ticket on the winner, or those who bought the betting ticket, shall be provided for by Ministry of Transportation Ordinance.

Article 11. In repaying the dividends in accordance with the provisions of the preceding Article, if the amount has any fractions less than one (1) yen, the fractions shall be omitted. 2 The amount arisen from omitting the fractions as mentioned in the preceding paragraph shall be the revenue of the Sponsor of the Racing.

(Invalidity of Betting) Article 12. In case a cause which comes under any of the following items occurs after the betting ticket has been sold, the betting shall be null and void: (1) That the number of motor boats that are to race becomes none or only one; (2) That the race is not materialized; (3) That there is no winning motor boat in the race. 2 In case the motor boat, inscribed on the betting ticket sold, did not race, the betting on the said motor boat (the set to which the said motor boat belongs, in the betting system, in which the set combining the motor boats of the first and second in the order of arrival shall be the winner (hereinafter referred to as the "forecasting system" )) shall be null and void. In the forecasting system, the same shall apply to the betting on the set, of which either one of the motor boats inscribed on the betting ticket did not race, if the motor boats of the same number of forecasting systems have been combined as a set. 3 In the case of the preceding two paragraphs, any person who has the said betting ticket may demand the Sponsor of the Racing to refund the amount of the ticket at its face value.

(Payment of Dividend and Redemption) Article 13. The dividends under the provisions of Article 10, of the redemption as mentioned in the preceding Article shall be claimed and paid in exchange for the betting ticket concerned immediately after the race has been finished.

(Prescription of Claim for Dividend and Redemption) Article 14. The claim for the dividends under the provisions of Article 10 or the redemption as mentioned in Article 12, shall lapse by prescription in case it is not exercised for thirty (30) days.

(Prohibition on Refundment of the Face Value of Betting Ticket and Admission Fee) Article 15. The Sponsor of the Racing shall not entertain any claim for refundment of the face value of betting ticket, except in the case provided for in Article 12 paragraph 3. The same shall apply to the admission fee.

(Measures for Securing the Fairness of Racing) Article 16. The Federation of the Prefectural Associations may, when deemed it necessary in order to secure the fair and safe execution of the racing, may take action to suspend the participation of some motor boats or operators in the racing.

(Control in the Race Course) Article 17. For maintaining order in the race course, the Sponsor of the Racing shall take necessary steps as to the regulation on visitors, prevention of crimes and unfairness concerning the racing, and the maintenance of grace and sanitation in the race course.

Article 18. When the Sponsor of the Racing, or the Prefectural Association deemed it necessary for securing fair and safe execution of the racing or maintaining order in the race course, it may take actions as enumerated below: (1) To suspend the participation of the motor boat concerned in the racing; (2) To suspend the participation of the operator of boat concerned in the racing; (3) To refuse the entrance of visitors or to order the visitors out of the race course.

CHAPTER IV Revenue and Expenditure

(Revenue of the Sponsor of the Racing) Article 19. The Sponsor of the Racing shall take, as its own revenue, the amount corresponding to twenty-five (25) per cent of the proceeds of the betting tickets.

(Payment to National Treasury) Article 20. The Sponsor of the Racing shall pay to the National treasury the amount corresponding to three (3) per cent of the proceeds of the betting tickets out of the amount to be its own revenue in accordance with the provision of the preceding Article.

(Grant for the Prefectural Association) Article 21. In case the Sponsor of the Racing entrusts a Prefectural Association with execution of the racing, the Sponsor of the Racing shall grant to the Prefectural Association concerned the amount not exceeding five (5) per cent of the proceeds of the betting tickets from the amount to be its own revenue in accordance with the provision of Article 19.

(Expenses Necessary for the Execution to be Borne by the Sponsor of the Racing) Article 22. The Sponsor of the Racing shall appropriate a part of the remains obtained by deducting the amount to be paid in accordance with the provisions of the preceding two Articles from the amount to be its own revenue in accordance with the provision of Article 19, as expenses concerning the matters other than those entrusted to the Prefectural Association in respect to execution of the racing.

CHAPTER V Miscellaneous Provisions

(Suspension of Sale of the Betting Ticket, etc.) Article 23. In case the Sponsor of the Racing, the Prefectural Association or the Federation of the Prefectural Associations has violated this Law, the order issued under this Law, or the action taken thereunder, the Minister of Transportation may, after having given a warning in advance, order the Sponsor of the Racing, the Prefectural Association, or the Federation of the Prefectural Associations concerned to suspend sale of the betting ticket and to take other necessary measures. 2 In case the Minister of Transportation wants to take an action other than warning in accordance with the provision of the preceding paragraph, the said Minister shall hold open hearing against the Sponsor of the Racing, the Prefectural Association or the Federation of the Prefectural Associations concerned by notifying the date and place to hold the open hearing However, in case of urgent necessity, open hearing may be held post factum.

(Race Supervisor) Article 24. The Minister of Transportation may cause officials of the Ministry of Transportation to supervise the sale of betting ticket and the payment of dividend and redemption and other matters related with the execution of the racing, having them to bear identification cards showing their official status. 2 The officials referred to in the preceding paragraph shall be race supervisors.

(Notice or Report) Article 25. The Minister of Transportation may demand the Sponsor of the Racing to notify or report on holding and closing as well as accounts of the racing and other matters recognized as necessary.

(Matters to Be Entrusted) Article 26. Other than those provided for by this Law, the matters concerning entrusting of execution of the racing, matters concerning registration, such as the requirements for registration, etc. of race courses, operators of boats to participate in the racing, boats and motors to be used for the racing, as well as judges, and other matters necessary for enforcement of this Law shall be prescribed by Ministry of Transportation Ordinance.

CHAPTER VI Penal Provisions

Article 27. Any person who falls under any of the following items shall be liable to penal servitude not exceeding one (1) year or a fine not exceeding fifty thousand (50,000) yen, or both: (1) Any person who has violated the provision of Article 2 paragraph 2; (2) Any person who has caused large number of people to gamble with goods in connection with the racing held in accordance with the provisions of this Law; (3) Any person, who is prohibited from purchasing or taking over the betting ticket in accordance with the provision of Article 9, and has become the other party in the act mentioned in the preceding item.

Article 28. Any person who falls under any of the following items shall be liable to a fine not exceeding fifty thousand (50,000) yen: (1) Any person who, knowing the fact, has sold the betting tickets to those who are prohibited from purchasing the same in accordance with the provision of Article 9; (2) Any person who has violated the provision of Article 9; (3) Any person who has become the other party in those acts provided for in item (1) of the preceding Article; (4) Other than those mentioned in item (3) of the preceding Article, any person who has become the other party in the act provided for in item (2) of the same Article.

Article 29. In case the officers of a Prefectural Association or of the Federation of the Prefectural Associations, executive committee members for the racing, other persons engaging in the management of the racing or the operators of boats has accepted, demanded or promised the bribes, in connection with their duties or the racing, they shall be liable to penal servitude not exceeding three (3) years. 2 In case persons provided for in the preceding paragraph have acted unfair deeds or have not done what they should have done, as the result of their receiving, demanding or promising of bribes in connection with their duties or the racing, they shall be liable to penal servitude not exceeding five (5) years. 3 In the case of the preceding two paragraphs, the bribes received shall be confiscated. In case the whole or a part of them cannot be confiscated, the same amount shall be collected.

Article 30. Any person who has offered, or proposed or promised a bribe mentioned in paragraph 1 or 2 of the preceding Article shall be liable to penal servitude not exceeding three (3) years.