2012 -- S 2695 SUBSTITUTE A

=======

LC01980/SUB A

=======

STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

____________

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: Senators Goodwin, Ciccone, Bates, and Crowley

     Date Introduced: March 01, 2012

     Referred To: Senate Special Legislation and Veterans Affairs

It is enacted by the General Assembly as follows:

1-1

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

1-2

hereby amended by adding thereto the following section:

1-3

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

1-4

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

1-5

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

1-6

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

1-7

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

1-8

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

1-9

be effective upon:

1-10

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

1-11

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

1-12

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

1-13

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

1-14

include casino gaming.

1-15

     (b) The general assembly finds that:

1-16

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

1-17

economy of the state and enhance local revenues;

1-18

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

1-19

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

2-1

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

2-2

location at which casino gaming shall be conducted;

2-3

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

2-4

as specified at Newport Grand; and

2-5

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

2-6

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

2-7

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

2-8

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

2-9

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

2-10

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

2-11

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

2-12

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

2-13

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

2-14

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

2-15

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

2-16

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

2-17

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

2-18

authority to:

2-19

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

2-20

tables and sites within the facility;

2-21

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

2-22

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

2-23

matters determined from time to time;

2-24

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

2-25

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

2-26

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

2-27

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

2-28

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

2-29

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

2-30

facility, including, without limitation:

2-31

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

2-32

loss, and any other necessary information or reports; and

2-33

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

2-34

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

3-1

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

3-2

conducted;

3-3

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

3-4

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

3-5

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

3-6

areas from which to conduct such monitoring activities;

3-7

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

3-8

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

3-9

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

3-10

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

3-11

     (8) Establish compulsive gambling treatment programs;

3-12

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

3-13

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

3-14

chapter; and

3-15

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

3-16

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

3-17

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

3-18

the state of Rhode Island.

3-19

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

3-20

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

3-21

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

3-22

the extent authorized by this act.

3-23

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

3-24

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

3-25

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

3-26

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

3-27

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

3-28

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

3-29

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

3-30

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

3-31

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

3-32

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

3-33

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

3-34

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

4-1

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

4-2

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

4-3

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

4-4

gambling it offers?”

4-5

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

4-6

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

4-7

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

4-8

to the secretary of state:

4-9

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

4-10

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

4-11

gambling it offers?”

4-12

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

4-13

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

4-14

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

4-15

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

4-16

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

4-17

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

4-18

as the first two (2) referendum question.

4-19

     SECTION 7. This act shall take effect upon passage.

=======

LC01980/SUB A

========

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

***

5-1

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

5-2

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

5-3

     This act would take effect upon passage.

=======

LC01980/SUB A

=======