2008 -- H 7040 SUBSTITUTE A AS AMENDED

=======

LC00259/SUB A/3

=======

STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2008

____________

A N A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT

     Introduced By: Representatives San Bento, Rose, Singleton, Shanley, and Slater

     Date Introduced: January 03, 2008

     Referred To: House Finance

It is enacted by the General Assembly as follows:

1-1

     SECTION 1. Sections 42-61.2-1, 42-61.2-6 and 42-61.2-7 of the General Laws in

1-2

Chapter 42-61.2 entitled "Video Lottery Terminal" are hereby amended to read as follows:

1-3

     42-61.2-1. Definitions. -- For the purpose of this chapter, the following words shall

1-4

mean:

1-5

      (1) "Central communication system" means a system approved by the lottery division,

1-6

linking all video lottery machines at a licensee location to provide auditing program information

1-7

and any other information determined by the lottery. In addition, the central communications

1-8

system must provide all computer hardware and related software necessary for the establishment

1-9

and implementation of a comprehensive system as required by the division. The central

1-10

communications licensee may provide a maximum of fifty percent (50%) of the video lottery

1-11

terminals.

1-12

      (2) "Licensed video lottery retailer" means a pari-mutuel licensee specifically licensed

1-13

by the director subject to the approval of the division to become a licensed video lottery retailer.

1-14

      (3) "Net terminal income" means currency placed into a video lottery terminal less

1-15

credits redeemed for cash by players.

1-16

     (4) "Pari-mutuel licensee" means an entity licensed and authorized to conduct:

1-17

      (i) Dog racing, pursuant to chapter 3.1 of title 41; and/or

1-18

      (ii) Jai-alai games, pursuant to chapter 7 of title 41.

1-19

      (5) "Technology provider" means any individual, partnership, corporation, or association

2-1

that designs, manufactures, installs, operates, distributes or supplies video lottery machines or

2-2

associated equipment for the sale or use in this state.

2-3

      (6) "Video lottery games" means lottery games played on video lottery terminals

2-4

controlled by the lottery division.

2-5

      (7) "Video lottery terminal" means any electronic computerized video game machine

2-6

that, upon the insertion of cash, is available to play a video game authorized by the lottery

2-7

division, and which uses a video display and microprocessors in which, by chance, the player

2-8

may receive free games or credits that can be redeemed for cash. The term does not include a

2-9

machine that directly dispenses coins, cash, or tokens.

2-10

     42-61.2-6. When games may be played. – (a) Video lottery games authorized by this

2-11

chapter may be played at the licensed video lottery retailer's facilities with the approval of the

2-12

lottery commission even if that facility is not conducting a pari-mutuel event.

2-13

     (b) Upon the effective date of this section, the facilities known as "Twin River" in

2-14

Lincoln, Rhode Island, and "Newport Grand" in Newport, Rhode Island, are permitted at their

2-15

discretion to maintain and operate all video lottery games which said facilities are authorized to

2-16

conduct on a twenty-four (24) hour basis, on weekends and federal or state recognized holidays.

2-17

For purposes of operating these additional hours on weekends, the facility may open at its

2-18

regularly scheduled time on Friday, and then remain open through its regular closing time on

2-19

Sunday evening, except that if the federal or state holiday is recognized on a Monday, the facility

2-20

may remain open through to that Monday and close at the normal closing time on Monday. For

2-21

purposes of operating these additional hours on federal or state recognized holidays, the facility

2-22

may open at its regular time on the day preceding the holiday, and then remain open through to

2-23

what would be its regular closing time on the holiday. It shall be the duty of the pari-mutuel

2-24

licensees operating the respective facilities, under the supervision of the division of state lottery,

2-25

to account for the amount of funds generated during and by these additional hours of operation.

2-26

The normal closing time for said facilities shall be no later than three (3) o'clock A.M. except as

2-27

provided herein.

2-28

     42-61.2-7. Division of revenue. -- (a) Notwithstanding the provisions of section 42-61-

2-29

15, the allocation of net terminal income derived from video lottery games is as follows:

2-30

      (1) For deposit in the general fund and to the state lottery division fund for

2-31

administrative purposes: Net terminal income not otherwise disbursed in accordance with

2-32

subdivisions (a)(2) -- (a)(6)(7) herein;

2-33

      (i) Except for the fiscal year ending June 30, 2008, nineteen one hundredths of one

2-34

percent (0.19%) up to a maximum of twenty million dollars ($20,000,000) shall be equally

3-1

allocated to the distressed communities as defined in section 45-13-12 provided that no eligible

3-2

community shall receive more than twenty-five percent (25%) of that community's currently

3-3

enacted municipal budget as its share under this specific subsection. Distributions made under

3-4

this specific subsection are supplemental to all other distributions made under any portion of

3-5

general laws section 45-13-12. For the fiscal year ending June 30, 2008 distributions by

3-6

community shall be identical to the distributions made in the fiscal year ending June 30, 2007 and

3-7

shall be made from general appropriations.

3-8

      (ii) Five one hundredths of one percent (0.05%) up to a maximum of five million dollars

3-9

($5,000,000) shall be appropriated to property tax relief to fully fund the provisions of section 44-

3-10

33-2.1. The maximum credit defined in subdivision 44-33-9(2) shall increase to the maximum

3-11

amount to the nearest five dollar ($5.00) increment within the allocation until a maximum credit

3-12

of five hundred dollars ($500) is obtained. In no event shall the exemption in any fiscal year be

3-13

less than the prior fiscal year.

3-14

      (iii) One and twenty-two one hundredths of one percent (1.22%) to fund section 44-34.1-

3-15

1, entitled "Motor Vehicle and Trailer Excise Tax Elimination Act of 1998", to the maximum

3-16

amount to the nearest two hundred fifty dollar ($250) increment within the allocation. In no event

3-17

shall the exemption in any fiscal year be less than the prior fiscal year.

3-18

      (iv) Except for the fiscal year ending June 30, 2008, ten one hundredths of one percent

3-19

(0.10%) to a maximum of ten million dollars ($10,000,000) for supplemental distribution to

3-20

communities not included in paragraph (a)(1)(i) above distributed proportionately on the basis of

3-21

general revenue sharing distributed for that fiscal year. For the fiscal year ending June 30, 2008

3-22

distributions by community shall be identical to the distributions made in the fiscal year ending

3-23

June 30, 2007 and shall be made from general appropriations.

3-24

      (2) To the licensed video lottery retailer:

3-25

      (a) (i) Prior to the effective date of the NGJA Master Contract, Newport Jai Ali twenty-

3-26

six percent (26%) minus three hundred eighty four thousand nine hundred ninety-six dollars

3-27

($384,996);

3-28

      (ii) On and after the effective date of the NGJA Master Contract, to the licensed video

3-29

lottery retailer who is a party to the NGJA Master Contract, all sums due and payable under said

3-30

Master Contract minus three hundred eighty four thousand nine hundred ninety-six dollars

3-31

($384,996).

3-32

      (b) (i) Prior to the effective date of the UTGR Master Contract, to the present licensed

3-33

video lottery retailer at Lincoln Park which is not a party to the UTGR Master Contract, twenty-

3-34

eight and eighty-five one hundredths percent (28.85%) minus seven hundred sixty-seven

4-1

thousand six hundred eighty-seven dollars ($767,687);

4-2

      (ii) On and after the effective date of the UTGR Master Contract, to the licensed video

4-3

lottery retailer who is a party to the UTGR Master Contract, all sums due and payable under said

4-4

Master Contract minus seven hundred sixty-seven thousand six hundred eighty-seven dollars

4-5

($767,687).

4-6

      (3) (i) To the technology providers who are not a party to the GTECH Master Contract

4-7

as set forth and referenced in Public Law 2003, Chapter 32, seven percent (7%) of the net

4-8

terminal income of the provider's terminals;

4-9

      (ii) To contractors who are a party to the Master Contract as set forth and referenced in

4-10

Public Law 2003, Chapter 32, all sums due and payable under said Master Contract;

4-11

      (iii) Notwithstanding paragraphs (i) and (ii) above, there shall be subtracted

4-12

proportionately from the payments to technology providers the sum of six hundred twenty-eight

4-13

thousand seven hundred thirty-seven dollars ($628,737);

4-14

      (4) To the city of Newport one and one hundredth percent (1.01%) of net terminal

4-15

income of authorized machines at Newport Grand except that upon passage the allocation shall be

4-16

one and two tenths percent (1.2%) of net terminal income of authorized machines at Newport

4-17

Grand for each week the facility operates video lottery games on a twenty-four (24) hour basis for

4-18

all eligible hours authorized in section 42-61.2-6(b) and to the town of Lincoln one and twenty-

4-19

six hundreths (1.26%) of net terminal income of authorized machines at Lincoln Park; and except

4-20

that upon passage the allocation shall be one and forty-five hundredths percent (1.45%) of net

4-21

terminal income of authorized machines at Lincoln Park for each week the facility operates video

4-22

lottery games on a twenty-four (24) hour basis for all eligible hours authorized in section 42-61.2-

4-23

6(b);

4-24

     (5) To the Narragansett Indian Tribe, seventeen hundredths of one percent (0.17%) of net

4-25

terminal income of authorized machines at Lincoln Park up to a maximum of ten million dollars

4-26

($10,000,000) per year, which shall be paid to the Narragansett Indian Tribe for the account of a

4-27

Tribal Development Fund to be used for the purpose of encouraging and promoting: home

4-28

ownership and improvement, elderly housing, adult vocational training; health and social

4-29

services; childcare; natural resource protection; and economic development consistent with state

4-30

law. Provided, however, such distribution shall terminate upon the opening of any gaming facility

4-31

in which the Narragansett Indians are entitled to any payments or other incentives; and provided

4-32

further, any monies distributed hereunder shall not be used for, or spent on previously contracted

4-33

debts.; and

4-34

     (6) To the permanent school fund established in chapter 16-4 the additional revenue

5-1

accruing to the state as the direct result of the additional hours authorized by this act net of the

5-2

additional revenue to the city of Newport and the Town of Lincoln resulting directly from the

5-3

additional hours authorized under this act, not to exceed fourteen million one hundred thousand

5-4

dollars ($14,100,000) by June 30, 2009, to be allocated as aid to local education authorities as

5-5

determined by the general assembly for fiscal year 2009, notwithstanding the provisions of

5-6

chapter 16-4 of the Rhode Island General Laws.

5-7

      (6) (7) Unclaimed prizes and credits shall remit to the general fund of the state;

5-8

      (7) (8) Payments into the state's general fund specified in subdivisions (a)(1) and

5-9

(a)(6)(7) shall be made on an estimated monthly basis. Payment shall be made on the tenth day

5-10

following the close of the month except for the last month when payment shall be on the last

5-11

business day.

5-12

     SECTION 2 This act shall take effect upon passage and shall expire on June 30, 2009.

=======

LC00259/SUB A/3

========

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT

***

6-1

     This act would permit the operation of video lottery games on a twenty-four hour basis

6-2

on weekends and federally recognized holidays at the Twin River and Newport Grand facilities.

6-3

This act would take effect upon passage.

=======

LC00259/SUB A/3

=======