2012 -- H 7543 SUBSTITUTE A

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LC01606/SUB A

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- AUTHORIZING STATE-

OPERATED CASINO GAMING AT NEWPORT GRAND SUBJECT TO STATEWIDE AND

LOCAL VOTER APPROVAL

     Introduced By: Representatives Jackson, Martin, Reilly, and Ruggiero

     Date Introduced: February 15, 2012

     Referred To: House Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 42-61.2 of the General Laws entitled "Video Lottery Terminal" is

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hereby amended by adding thereto the following section:

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     42-61.2-2.2. State authorized to operate casino gaming at Newport Grand. – (a)

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State-operated casino gaming shall be authorized at the facility of the licensed video lottery

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terminal retailer known as “Newport Grand” located in the town of Newport; provided, that the

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requirements of Article VI, Section 22 of the Rhode Island Constitution are met with respect to

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said facility at the general election next held after enactment of this section.

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     (1) With respect to the Newport Grand facility, the authorization of this section 2.2 shall

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be effective upon:

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     (i) The certification by the secretary of state that the qualified voters of the state have

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approved the expansion of gambling at such facility to include casino gaming; and

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     (ii) The certification by the board of canvassers of the city of Newport that the qualified

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electors of the city of Newport have approved the expansion of gambling at such facility to

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include casino gaming.

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     (b) The general assembly finds that:

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     (i) The operation of casino gaming at Newport Grand will play a critical role in the

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economy of the state and enhance local revenues;

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     (2) Pursuant to Article VI, Section 15 of the Rhode Island Constitution and the specific

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powers, authorities and safeguards set forth in subsection (c) herein in connection with the

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operation of casino gaming, the state shall have full operational control over the specified

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location at which casino gaming shall be conducted;

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     (3) It is in the best interest of the state to have the authorization to operate casino gaming

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as specified at Newport Grand; and

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     (4) Pursuant to the provisions of subdivision 42-61.2-2.1(b)(4), and by action of the

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governor, an extensive analysis and evaluation of competitive casino-gaming operations was

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completed, which concluded that the viability of Newport Grand as a video lottery terminal

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facility is threatened by the location of casino gaming in Southeast Massachusetts.

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     (5) The legislature shall, by enactment of comprehensive legislation during the 2012

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session, determine the terms and conditions pursuant to which casino gaming would be operated

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in the state if it is authorized as set forth herein.

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     (c) Notwithstanding the provisions of any other law and pursuant to Article VI, Section

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15 of the Rhode Island Constitution, the state is authorized to operate, conduct and control casino

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gaming at Newport Grand subject to subsection (a) above. In furtherance thereof, the state,

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through the division of state lottery and/or the department of business regulation, shall have full

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operational control to operate the foregoing facilities, the authority to make all decisions about all

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aspects of the functioning of the business enterprise, including, without limitation, the power and

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authority to:

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     (1) Determine the number, type, placement and arrangement of casino-gaming games,

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tables and sites within the facility;

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     (2) Establish with respect to casino gaming one or more systems for linking, tracking,

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deposit and reporting of receipts, audits, annual reports, prohibitive conduct and other such

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matters determined from time to time;

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     (3) Collect all receipts from casino gaming, require that Newport Grand collect casino-

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gaming gross receipts in trust for the state through the division of state lottery, deposit such

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receipts into an account or accounts of its choice, allocate such receipts according to law, and

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otherwise maintain custody and control over all casino-gaming receipts and funds;

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     (4) Hold and exercise sufficient powers over Newport Grand’s accounting and finances to

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allow for adequate oversight and verification of the financial aspects of casino gaming at the

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facility, including, without limitation:

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     (i) The right to require Newport Grand to maintain an annual balance sheet, profit and

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loss, and any other necessary information or reports; and

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     (ii) The authority and power to conduct periodic compliance or special or focused audits

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of the information or reports provided, as well as the premises with the facility containing records

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of casino gaming or in which the business of Newport Grand’s casino-gaming operations are

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conducted;

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     (5) Monitor all casino-gaming operations and have the power to terminate or suspend any

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casino-gaming activities in the event of an integrity concern or other threat to the public trust, and

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in furtherance thereof, require the licensed video lottery retailer to provide a specified area or

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areas from which to conduct such monitoring activities;

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     (6) Define and limit the rules of play and odds of authorized casino-gaming games,

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including, without limitation, the minimum and maximum wagers for each casino-gaming game;

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     (7) Have approval rights over matters relating to the employment of individuals to be

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involved, directly or indirectly, with the operation of casino gaming at Newport Grand;

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     (8) Establish compulsive gambling treatment programs;

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     (9) Promulgate, or propose for promulgation, any legislative, interpretive and procedural

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rules necessary for the successful implementation, administration and enforcement of this

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chapter; and

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     (10) Hold all other powers necessary and proper to fully effectively execute and

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administer the provisions of this chapter for its purpose of allowing the state to operate a casino-

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gaming facility through a licensed video lottery retailer hosting said casino gaming on behalf of

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the state of Rhode Island.

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     (d) Subject to subsection (a) above, the state, through the division of state lottery and/or

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the department of business regulation, may expand Newport Grand’s existing video lottery

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license issued, or issue Newport Grand a new casino-gaming license, to permit casino gaming to

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the extent authorized by this act.

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     (e) Subject to subsection (a) above, all rules and regulations shall be promulgated by the

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state, through the division of state lottery and the department of business regulation, in

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accordance with the authority conferred upon the general assembly pursuant to Article VI,

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Section 15 of the Rhode Island Constitution. In accord therewith, subject to subsection (a) above,

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the state, through the division of state lottery and/or the department of business regulation, shall

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have authority to issue such regulations as it deems appropriate pertaining to control, operation

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and management of casino gaming as specifically set forth in subsections (b) and (c).

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     SECTION 2. Nothing in this act shall abrogate or diminish the powers of the state,

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through the division of state lottery and/or the department of business regulation, to conduct and

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control video lottery terminals pursuant to chapter 42-61.2 of the general laws.

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     SECTION 3. Pursuant to Article VI, section 22 of the Rhode Island constitution, the

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following question shall be submitted by the secretary of state to the qualified electors of the state

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at the next statewide general election, and the secretary of state shall certify the election results:

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     “Shall an act be approved which would authorize the facility known as “Newport Grand”

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in the city of Newport to add state-operated casino gaming, such as table games, to the types of

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gambling it offers?”

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     SECTION 4. Pursuant to Article VI, section 22 of the Rhode Island constitution, the

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following question shall be submitted by the local board of canvassers to the qualified electors of

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the city of Newport at the next statewide general election, and the results thereof shall be certified

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to the secretary of state:

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      “Shall an act be approved which would authorize the facility known as “Newport Grand”

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in the city of Newport to add state-operated casino gaming, such as table games, to the types of

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gambling it offers?”

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     SECTION 5. Unless otherwise amended by this act, the terms, conditions, provisions,

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and definitions of chapters 322 and 323 of the public laws of 2005 and chapter 16 of the public

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laws of 2010 are hereby incorporated herein by reference and shall remain in full force and effect.

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     SECTION 6. The said question to be submitted to the qualified electors relating to

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Newport Grand, as well as that question to be submitted to the qualified electors pursuant to

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article 25 of chapter 151 of the 2011 public laws relating to Twin River shall appear on the ballots

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as the first two (2) referendum question.

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     SECTION 7. This act shall take effect upon passage.

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LC01606/SUB A

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- AUTHORIZING STATE-

OPERATED CASINO GAMING AT NEWPORT GRAND SUBJECT TO STATEWIDE AND

LOCAL VOTER APPROVAL

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     This act would authorize casino gaming at Newport Grand subject to the approval of the

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qualified electors of the state and the city of Newport at the next general election.

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     This act would take effect upon passage.

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LC01606/SUB A

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