Bill Text: OR HB2720 | 2011 | Regular Session | Introduced
Bill Title: Relating to compensation of video lottery game retailers.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Failed) 2011-06-30 - In committee upon adjournment. [HB2720 Detail]
Download: Oregon-2011-HB2720-Introduced.html
76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 1945
House Bill 2720
Sponsored by Representative TOMEI; Representative HARKER
(Presession filed.)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Directs Oregon State Lottery Commission to survey sample of
video lottery game retailers and to study compensation rates for
video lottery game retailers.
Prohibits commission from entering into contract with video
lottery game retailer that extends beyond June 30, 2016, until
commission has reviewed survey and study, and determined
appropriate rate of return for video lottery game retailers in
specified income categories.
Prohibits compensation rates on or after July 1, 2016, that are
intended to result in average annual net income that exceeds 50
percent for video lottery game retailers in specified income
categories.
A BILL FOR AN ACT
Relating to compensation of video lottery game retailers;
creating new provisions; and amending ORS 461.310.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + (1) As used in this section:
(a) 'Net income' means the amount by which the gross annual
compensation for hosting video lottery games exceeds the annual
cost of hosting video lottery games, including:
(A) Labor costs that are attributable to hosting video lottery
games on the premises of an establishment licensed by the Oregon
Liquor Control Commission and that are over and above the labor
costs that would be associated with operating a similar
establishment that does not host video lottery games on premises.
(B) Space costs, determined on the basis of cost per square
foot per year, that are attributable to hosting video lottery
games on the premises of an establishment licensed by the Oregon
Liquor Control Commission and that are over and above the space
costs that would be associated with operating a similar
establishment that does not host video lottery games on premises.
(C) Other direct operational costs that are attributable to
hosting video lottery games on the premises of an establishment
licensed by the Oregon Liquor Control Commission.
(D) Other capital costs that are attributable to hosting video
lottery games on the premises of an establishment licensed by the
Oregon Liquor Control Commission and that are over and above the
capital costs that would be associated with operating a similar
establishment that does not host video lottery games.
(b) 'Rate of return' means the annual net income of a video
lottery game retailer expressed as a percentage of the annual
costs of the video lottery game retailer.
(c) 'Video lottery game retailer' has the meaning given that
term in ORS 461.217.
(2) On or before February 1, 2014, the Oregon State Lottery
Commission shall:
(a) Conduct a study of video lottery game retailers and the
costs attributable to hosting video lottery games.
(b) Survey at least 100 video lottery game retailers, including
at least 10 retailers with annual net income from video lottery,
in the most recent year reported, in each of the following income
categories:
(A) $0 to $50,000.
(B) More than $50,000 to $100,000.
(C) More than $100,000 to $200,000.
(D) More than $200,000 to $400,000.
(E) More than $400,000 to $800,000.
(F) More than $800,000.
(c) Determine what constitutes a reasonable rate of return as
the basis for establishing compensation rates for video lottery
game retailers for fiscal years beginning on or after July 1,
2016.
(d) Based on the information gathered in the study and survey
required by this section, issue an estimate for each income
category of video lottery game retailers identified in this
subsection of:
(A) The representative costs as a percentage of commissions;
and
(B) The rate of return.
(3) Before March 1, 2014, the Oregon State Lottery Commission
shall report its findings from the study and the survey required
by this section to the Legislative Assembly in the manner
provided by 192.245.
(4) Notwithstanding ORS 461.310 or 461.440, the Oregon State
Lottery Commission may not enter into a contract with a video
lottery game retailer to host video lottery games for a term that
extends beyond June 30, 2016, until the commission has completed
the study and survey required by this section and determined
appropriate compensation rates for the income categories of video
lottery game retailers identified in subsection (2) of this
section. + }
SECTION 2. ORS 461.310 is amended to read:
461.310. { + (1) + } Upon recommendation of the Director of
the Oregon State Lottery, the { + Oregon State Lottery + }
Commission shall determine the compensation to be paid to lottery
game retailers for their sales of lottery tickets or shares.
Until the commission shall otherwise determine, the compensation
paid to lottery game retailers shall be five percent of the
retail price of the tickets or shares plus an incentive bonus of
one percent based on attainment of sales volume or other
objectives specified by the director for each lottery game. In
cases of a lottery game retailer whose rental payments for
premises are contractually computed in whole or in part, on the
basis of a percentage of retail sales, and where such computation
of retail sales is not explicitly defined to include sales of
tickets or shares in a state-operated lottery, the compensation
received by the lottery game retailer from the Oregon State
Lottery shall be deemed to be the amount of the retail sale for
the purposes of such contractual computation.
{ + (2) The commission shall establish compensation rates for
hosting video lottery games that are intended to result in an
average rate of return that does not exceed 50 percent for video
lottery game retailers in each of the following categories of
annual net income from hosting video lottery games:
(a) $0 to $50,000.
(b) More than $50,000 to $100,000.
(c) More than $100,000 to $200,000.
(d) More than $200,000 to $400,000.
(e) More than $400,000 to $800,000.
(f) More than $800,000.
(3) As used in this section:
(a) 'Net income' and 'rate of return' have the meanings given
those terms in section 1 of this 2011 Act.
(b) 'Video lottery game retailer' has the meaning given that
term in ORS 461.217. + }
SECTION 3. { + The amendments to ORS 461.310 by section 2 of
this 2011 Act become operative July 1, 2016. + }
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