Bill Text: DE SB30 | 2015-2016 | 148th General Assembly | Draft
Bill Title: An Act To Amend Title 29 Of The Delaware Code Relating To Lotteries.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2015-01-29 - Assigned to Finance Committee in Senate [SB30 Detail]
Download: Delaware-2015-SB30-Draft.html
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SPONSOR: |
Sen. Bushweller & Rep. Carson |
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Sens. Ennis, Lawson, Pettyjohn; Reps. Dukes, Gray, Hensley, Kowalko, Lynn, Matthews, D. Short, Smyk, Spiegelman, Yearick |
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DELAWARE STATE SENATE 148th GENERAL ASSEMBLY |
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SENATE BILL NO. 30 |
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AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO LOTTERIES. |
Section 1.Amend Chapter 48, Title 29 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows and by redesignating accordingly:
§ 4815 State Lottery Fund.
(b)(2) Certain
administrative and vendor costs. — The State shall retain a portion of such
proceeds in an amount equal to 75% 100% of all costs of equipment
(both video lottery machines and related equipment), including video lottery
machine license and proprietary fees, whether leased or owned by the State,
used or under the control of such agent, the cost of the central computer used
to monitor the equipment used by the agent, and related vendor fees, and from
these proceeds, and the proceeds provided pursuant to paragraph (b)(4)a. of
this section, remit these amounts to vendors.
Section 2. Amend Chapter 48, Title 29 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows and by redesignating accordingly:
§ 4815 State Lottery Fund.
(b)(4) Application of remaining proceeds. - The proceeds remaining after payments as set forth in paragraphs (b)(1), (2) and (3) of this section shall be applied as follows:
a.
Balance of administrative and vendor costs. — The State shall receive an
amount equal to 25% of all costs of equipment (both video lottery machines and
related equipment), including video lottery machine license and proprietary
fees, whether leased or owned by the State, used or under the control of such
agent, the cost of the central computer used to monitor the equipment used by
the agent, and related vendor fees to be applied pursuant to paragraph (b)(2)
of this section.
Section 3. Amend Chapter 48, Title 29 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows and by redesignating accordingly:
§ 4815 State Lottery Fund.
(b)(3)
c. Application of funds retained by the state lottery. — The funds
retained by the state lottery shall be applied as follows: first, to the
administrative costs and expenses in respect of the video lottery including,
but not limited to, administrative expenses including payroll and other
employment costs attributable to the operation of the video lottery by the State
Lottery Office, law-enforcement and security expenses, including payroll and
other employment costs of the state lottery, the Office of the Attorney General
and the Delaware State Police, attributable to the operation by the state
lottery of a video lottery; second, $1,000,000 or 1%, whichever is greater, of
the proceeds returned to the State under this paragraph (b)(3), to the Division
of Substance Abuse and Mental Health of the Department of Health and Social
Services for funding programs for the treatment, education and assistance of
compulsive gamblers and their families; third, costs of the Administrator of
Racing and racing inspectors referenced in Chapters 100 and 101 of Title 3;
fourth, the State's contribution to the Delaware Standardbred Breeder's Program
and Delaware Certified Thoroughbred Program (DCTP); and fifth, an
amount equal to 1% of the proceeds remaining after payments made under
paragraph (b)(1) of this section, shall be added to payments for purses under
paragraphs (b)(3) b.1. and b.2. in order to increase each of said purses by 1%
and which shall be applied as provided therein; and sixth, the remainder
shall be paid into the State's General Fund.
Section 4. Amend Chapter 48, Title 29 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows and by redesignating accordingly:
§ 4815 State Lottery Fund.
(d) Gross table game revenue shall be electronically transferred daily or weekly at the direction of the Lottery Director into a designated state lottery account by the agent, and transferred to the State Lottery Fund by the lottery on a daily or weekly basis. Gross table game revenue shall be applied as follows:
(1) Proceeds returned to the State. —
a.
Except as otherwise provided by this paragraph, of gross table game revenue,
there shall be returned to the State 29.415%.
Section 5. Amend Chapter 48, Title 29 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows and by redesignating accordingly:
§ 4819 Restrictions on location and use of video lottery and sports lottery machines; fees.
(d)(1) For
the privilege of hosting the operation of table games, the State shall collect
from the video lottery agents for the benefit of the General Fund, for each
fiscal year after June 30, 2011, license fees totaling $13,250,000, to be paid
no later than June 1 of the preceding fiscal year, and to be allocated among
the video lottery agents offering table games as follows: Each video lottery
agent's license fee shall be the portion of $13,250,000 that is equal to the
percentage of gross table game revenue generated at that video lottery facility
in the preceding fiscal year out of the total gross table game revenue
generated at all video lottery facilities in the preceding fiscal year.
(2) Each
video lottery agent shall be permitted for purposes of this subsection to
reduce the license fee it would otherwise owe for that year pursuant to
paragraph (d)(1) of this section by the amount of qualified investments, up to
a cap of $10,250,000 for all video lottery agents, made in the 12-month period
ending on June 30 by the video lottery agent in the competitiveness of its
facilities and business. The video lottery agents shall provide the Director
annually an accounting of the qualified investments made pursuant to this
paragraph. A qualified investment pursuant to this paragraph shall be
determined by the Director to benefit the competitiveness or services of such
video lottery agent and may include:
a. Amounts paid out for new or enhanced buildings or permanent
improvements or betterments to video lottery facilities or immediately adjacent
property or properties that are owned by video lottery licensees that would not
be deductible for purposes of §263(a)(1) of the Internal Revenue Code (26
U.S.C. §263(a)(1)), or amounts paid out to service debt incurred in the
construction of buildings or permanent improvements or betterments b. Expenditures
for marketing of lottery games and promotion items provided to patrons, all as
determined by the Office to be in excess of the comparable amount of such
expenditures made by the video lottery agent during the 12-month period ending
June 30, 2012, measured as a percentage of the proceeds from the operation of
the video lottery and table games.
Section 6. Amend Chapter 48, Title 29 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows and by redesignating accordingly:
§ 4815 State Lottery Fund. [Effective July 1, 2016]
(b)(3) c. Application
of funds retained by the state lottery. — The funds retained by the state
lottery shall be applied as follows: first, to the administrative costs and
expenses in respect of the video lottery including, but not limited to,
administrative expenses including payroll and other employment costs
attributable to the operation of the video lottery by the State Lottery Office,
law-enforcement and security expenses, including payroll and other employment
costs of the state lottery, the Office of the Attorney General and the Delaware
State Police, attributable to the operation by the state lottery of a video
lottery; second, $1,000,000 or 1%, whichever is greater, of the proceeds
returned to the State under this paragraph (b)(3), to the Division of Substance
Abuse and Mental Health of the Department of Health and Social Services for
funding programs for the treatment, education and assistance of compulsive
gamblers and their families; third, costs of the Administrator of Racing and
racing inspectors referenced in Chapters 100 and 101 of Title 3; fourth, the
State's contribution to the Delaware Standardbred Breeder's Program and
Delaware Certified Thoroughbred Program (DCTP); fifth, an amount equal to 5%
of the proceeds remaining after payments made under paragraph (b)(1) of this
section, shall be added to the payments made to video lottery agents under
paragraph (b)(4) d. of this section and to be used by video lottery agents for
marketing purposes or refunded to the State as provided herein; and sixth, an
amount equal to 5% of the proceeds remaining after payments made under
paragraph (b)(1) of this section, shall be added to the payments made to video
lottery agents under paragraph (b)(4) d. of this section and to be used by video
lottery agents for capital expenditures or refunded to the State as provided
herein; seventh, an amount equal to 1% of the proceeds remaining after payments
made under paragraph (b)(1) of this section, shall be added to payments for
purses under paragraphs (b)(3) b.1. and b.2. in order to increase each of said
purses by 1% and which shall be applied as provided therein; and fifth
eighth, the remainder shall be paid into the State's General Fund.The amounts to be used by video lottery
agents for marketing purposes and capital expenditures must be incurred or paid
or committed to be paid during each fiscal year ending June 30 and if not, the
balance shall be refunded to the State within 30 days following the end of such
fiscal year. Amounts incurred, paid or committed to be paid shall be
subject to audit by an independent auditor at the request of the video lottery
agent or the State. Amounts to be used by video lottery agents for
capital expenditures shall refer to amounts properly characterized as capital
expenditures under generally accepted accounting principles and shall apply to
any facilities used by the video lottery agent in connection with its
operations – including its video lottery facilities, horse racing facilities,
food and beverage operations, retail operations, parking facilities, and if
applicable, hotel and golf course amenities. Amounts to be used by video
lottery agents for marketing purposes shall include advertising and promotions,
provided that complimentaries such as free or discounted food and beverage
offers, hotel rooms, gifts and prizes shall be accounted for at the video
lottery agent's cost to provide such complimentaries.
Section 7. Sections 1 through 5 shall be effective July 1, 2015; Section 6 shall be effective July 1, 2016.
SYNOPSIS
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This Bill implements the recommendations of the Lottery & Gaming Study Commission adopted on January 22, 2015.The revenue sharing model is being adjusted in a way that allows the State to continue to benefit from video lottery proceeds, allows for continued employment and horse racing at the State's three video lottery facilities, allows for the reinvestment of capital in those facilities to enable them to compete and remain vibrant tourism enterprises for the State, and allows the facilities to earn a fair return on their investment.Effective July 1, 2015, all video lottery equipment costs will be deducted prior to calculation of the State's share of revenue.Effective July 1, 2015, the State's share of gross table game revenues is revised to 15% and the table game license fee is eliminated.Effective July 1, 2015, purses paid to the horsemen shall be increased by 1% of video lottery proceeds by a reduction in the State's share.Effective July 1, 2016, video lottery agents shall receive a credit of up to 5% of video lottery proceeds to pay for marketing expenditures and up to 5% to pay for capital expenditures. |
Author:Senator Bushweller
