2014 -- S 3013 SUBSTITUTE A AS AMENDED

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

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A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- VIDEO LOTTERY TERMINAL

     Introduced By: Senator Maryellen Goodwin

     Date Introduced: May 15, 2014

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Findings. The general assembly hereby finds that:

     (1) The state of Rhode Island operates table games at the Twin River facility ("Twin

River") located in the town of Lincoln pursuant to § 42-61.2-2.1 and electoral approval in

accordance with Article VI, Section 22 of the Rhode Island Constitution. The state of Rhode

Island also operates video lottery games at Twin River pursuant to § 42-61.2-2.

     (2) It is imperative that legislative action be taken to preserve and protect the state's

ability to maximize revenues at Twin River in an increasingly competitive gaming market by

expanding critical revenue-driving programs.

     (3) The extension of credit to table game and video lottery players (collectively, "players"

or "patrons") is a vital customer service function that facilitates a gaming program's long-term

success.

     (4) While preserving and protecting the state's ability to maximize revenues in the

competitive gaming market is imperative to the financial well-being of the state, the general

assembly also recognizes the need to balance that concern with the financial well-being and

safety of its citizens.

     (5) While gaming and gambling can be a healthy source of recreation and entertainment

enjoyed by many people, the general assembly must ensure that persons who obtain a line of

credit from, or at, a state-operated gaming facility or casino are financially sound and financially

capable of entering into agreements for a line of credit.

     (6) It is the intent of the general assembly to authorize the establishment of a program for

the extension of credit to players at Twin River pursuant to the terms and conditions hereof and

the rules and regulations submitted by Twin River and approved and promulgated by the division

of lotteries.

     It is also the intent of the general assembly to place limitations on the amount of the line

of credit that may be provided to an individual patron by, or at, a state-operated gaming facility or

casino.

     SECTION 2. Section 42-61.2-1 of the General Laws in Chapter 42-61.2 entitled "Video

Lottery Terminal" is hereby amended to read as follows:

     42-61.2-1. Definitions. [Effective June 30, 2009.] -- For the purpose of this chapter, the

following words shall mean:

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

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

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

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

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

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

terminals.

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

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

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

credits redeemed for cash by players.

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

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

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

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

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

associated equipment for the sale or use in this state.

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

controlled by the lottery division.

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

that, upon the insertion of cash or any other representation of value that has been approved by the

division of lotteries, is available to play a video game authorized by the lottery division, and

which that uses a video display and microprocessors in which, by chance, the player may receive

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

directly dispenses coins, cash, or tokens.

      (8) "Casino gaming" means any and all table and casino-style games played with cards,

dice, or equipment, for money, credit, or any representative of value; including, but not limited to,

roulette, blackjack, big six, craps, poker, baccarat, paigow, any banking or percentage game, or

any other game of device included within the definition of Class III gaming as that term is

defined in Section 2703(8) of Title 25 of the United States Code and which that is approved by

the state through the division of state lottery.

      (9) "Net Ttable Ggame Rrevenue" means win from Ttable Ggames minus counterfeit

currency.

      (10) "Rake" means a set fee or percentage of cash and chips representing cash wagered

in the playing of a nonbanking Ttable Ggame assessed by a Ttable Ggame Rretailer for providing

the services of a dealer, gaming table or location, to allow the play of any nonbanking Ttable

Ggame.

      (11) "Table Ggame" or "Ttable Ggaming" means that type of Ccasino Ggaming in which

table games are played for cash or chips representing cash, or any other representation of value

that has been approved by the division of lotteries, using cards, dice, or equipment and conducted

by one or more live persons.

      (12) "Table Ggame Rretailer" means a retailer authorized to conduct Ttable Ggaming

pursuant to sections §§42-61.2-2.1 and 42-61.2-2.2 of the Rhode Island General Laws.

     (13) "Credit facilitator" means any employee of Twin River approved in writing by the

division whose responsibility is to, among other things, review applications for credit by players,

verify information on credit applications, grant, deny and suspend credit, establish credit limits,

increase and decrease credit limits, and maintain credit files, all in accordance with this chapter

and rules and regulations approved by the division.

     SECTION 3. Chapter 42-61.2 of the General Laws entitled "Video Lottery Terminal" is

hereby amended by adding thereto the following section:

     42-61.2-3.2. Gaming credit authorized. – (a) Authority. In addition to the powers and

duties of the state lottery director under §§ 42-61-4, 42-61.2-3, 42-61.2-3.1 and 42-61.2-4, the

division shall authorize Twin River to extend credit to players pursuant to the terms and

conditions of this chapter.

     (b) Credit. Notwithstanding any provision of the general laws to the contrary, including,

without limitation, §11-19-17, except for applicable licensing laws and regulations, Twin River

may extend interest-free, unsecured credit to its patrons for the sole purpose of such patrons

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making wagers at table games and/or video lottery terminals at the Twin River facility subject to

the terms and conditions of this chapter.

     (c) Regulations. Within ninety (90) days of the effective date of this section, Twin River

shall submit to the division of lotteries, for review and approval, proposed rules and regulations

regarding the establishment of procedures governing a program for the extension of credit and

requirements with respect to a credit applicant's financial fitness, including, without limitation,

annual income, debt-to-income ratio, prior credit history, average monthly bank balance and/or

level of play. The division of lotteries may approve, approve with modification, or disapprove

any portion of the policies and procedures submitted for review and approval.

     (d) Credit applications. Each applicant for credit shall submit a written application to

Twin River that shall be maintained by Twin River for three (3) years in a confidential credit file.

The application shall include the patron's name; address; telephone number; social security

number; comprehensive bank account information; the requested credit limit; the patron's

approximate amount of current indebtedness; the amount and source of income in support of the

application; the patron's signature on the application; a certification of truthfulness; and any other

information deemed relevant by Twin River or the division of lotteries.

     (e) Credit application verification. As part of the review of a credit application and before

an application for credit is approved, Twin River shall verify:

     (1) The identity, creditworthiness, and indebtedness information of the applicant by

conducting a comprehensive review of:

     (i) The information submitted with the application;

     (ii) Indebtedness information regarding the applicant received from a credit bureau;

and/or

     (iii) Information regarding the applicant's credit activity at other licensed facilities that

Twin River may obtain through a casino credit bureau and, if appropriate, through direct contact

with other casinos.

     (2) That the applicant's name is not included on an exclusion or self-exclusion list

maintained by Twin River and/or the division of lotteries.

     (3) As part of the credit application, Twin River shall notify each applicant in advance

that Twin River will verify the information in subsections (e)(1) and (e)(2) of this section and

may verify any other information provided by the applicant as part of the credit application. The

applicant is required to acknowledge in writing that he or she understands that the verification

process will be conducted as part of the application process and that he or she consents to having

said verification process conducted.

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     (f) Establishment of credit. After a review of the credit application and upon completion

of the verification required under subsection (e) of this section, and subject to the rules and

regulations approved by the division of lotteries, a credit facilitator may approve or deny an

application for credit to a player. The credit facilitator shall establish a credit limit for each patron

to whom credit is granted. The approval or denial of credit shall be recorded in the applicant's

credit file that shall also include the information that was verified as part of the review process,

and the reasons and information relied on by the credit facilitator in approving or denying the

extension of credit and determining the credit limit. Subject to the rules and regulations approved

by the division of lotteries, increases to an individual's credit limit may be approved by a credit

facilitator upon receipt of written request from the player after a review of updated financial

information requested by the credit facilitator and re-verification of the player's credit

information.

     (g) Recordkeeping. Detailed information pertaining to all transactions affecting an

individual's outstanding indebtedness to Twin River shall be recorded in chronological order in

the individual's credit file. The financial information in an application for credit and documents

related thereto shall be confidential. All credit application files shall be maintained by Twin River

in a secure manner and shall not be accessible to anyone that is not a credit facilitator or a Twin

River manager or officer responsible for the oversight of the extension of credit program.

     (h) Reduction or suspension of credit. A credit facilitator may reduce a player's credit

limit or suspend his or her credit to the extent permitted by the rules and regulations approved by

the division of lotteries and shall reduce a player's credit limit or suspend a player's credit limit as

required by said rules and regulations.

     (i) Voluntary credit suspension. A player may request that Twin River suspend or reduce

his or her credit. Upon receipt of a written request to do so, the player's credit shall be reduced or

suspended as requested. A copy of the request and the action taken by the credit facilitator shall

be placed in the player's credit application file.

     (j) Liability. In the event that a player fails to repay a debt owed to Twin River resulting

from the extension of credit by Twin River, neither the state of Rhode Island nor the division of

lotteries shall be responsible for the loss and said loss shall not affect net table game revenue or

net terminal income. Twin River, the state of Rhode Island, the division of lotteries, and/or any

employee of Twin River, shall not be liable in any judicial or administrative proceeding to any

player, any individual, or any other party, including table game players or individuals on the

voluntary suspension list, for any harm, monetary or otherwise, that may arise as a result of:

     (1) Granting or denial of credit to a player;

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     (2) Increasing the credit limit of a player;

     (3) Allowing a player to exercise his or her right to use credit as otherwise authorized;

     (4) Failure of Twin River to increase a credit limit;

     (5) Failure of Twin River to restore credit privileges that have been suspended, whether

involuntarily or at the request of the player; or

     (6) Permitting or prohibiting an individual whose credit privileges have been suspended,

whether involuntarily or at the request of the player, to engage in gaming activity in a licensed

facility while on the voluntary credit suspension list.

     (k) Limitations. Notwithstanding any other provision of this chapter, for any extensions

of credit, the maximum amount of outstanding credit per player shall be fifty thousand dollars

($50,000).

     SECTION 4. Section 9-26-4 of the General Laws in Chapter 9-26 entitled "Levy and Sale

on Execution" is hereby amended to read as follows:

     9-26-4. Property exempt from attachment. -- The following goods and property shall

be exempt from attachment on any warrant of distress or on any other writ, original, mesne, or

judicial:

      (1) The necessary wearing apparel of a debtor or of the debtor's family, if he or she has a

family.

      (2) The working tools of a debtor necessary in the debtor's usual occupation, not

exceeding in value the sum of two thousand dollars ($2,000), and the professional library of any

professional person in actual practice.

      (3) The household furniture, clothing, and family stores of a debtor, including beds and

bedding, not exceeding in value the sum of nine thousand six hundred dollars ($9,600).

      (4) The bibles, school books, and other books in use in the family, not exceeding in value

the sum of three hundred dollars ($300).

      (5) The debtor's interest in one lot or right of burial, as the case may be, in any cemetery.

      (6) Wages due or accruing to any sailor.

      (7) Debts secured by bills of exchange or negotiable promissory notes.

      (8) (i) The entire salary or wages of any debtor due or payable from any charitable

corporation, or from any person or corporation engaged in the disbursement or administration of

any public charitable fund or money, whenever the salaries or wages are to be paid or supplied,

directly or indirectly, from any fund or money appropriated or contributed for the relief of the

poor or in aid of unemployment, and the debtor is the object of the relief or aid.

      (ii) The entire wages or salary of any debtor due or payable from any employer, where

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the debtor has been the object of relief from any state, federal, or municipal corporation or agency

for a period of one year from and after the time when the debtor ceases to be the object of such

relief.

      (iii) The salary or wages due or payable to any other debtor, not exceeding the sum of

fifty dollars ($50.00).

      (9) The salary and wages of the wife and the minor children of any debtor.

      (10) Such other property, real, personal, or mixed, in possession or actions as is or shall

be exempted from attachment and execution, either permanently or temporarily, by general or

special acts, charters of incorporation, or by the policy of the law.

      (11) An individual retirement account or individual retirement annuity as defined in

sections 408 and 408A of the the Internal Revenue Code, 26 U.S.C. sections §§408 and 408A,

and the payments or distributions from such an account or annuity, except that this exemption

does not apply to any of the following:

      (i) An order of a court pursuant to a judgment of divorce or separate maintenance.

      (ii) An order of a court concerning child support.

      (iii) Contributions to an individual retirement account or premiums on an individual

retirement annuity, including the earnings or benefits from those contributions or premiums, that

constitute an excess contribution within the meaning of Section 4973 of the Internal Revenue

Code, [26 U.S.C. section §4973.

      (12) The right or interest of a person in an annuity, pension, profit sharing, or other

retirement plan protected by the Employee Retirement Income Security Act of 1974, Public Law

93-406, 29 U.S.C. section §1001 et seq. This exemption shall also apply to the operation of the

Federal Bankruptcy Code, as permitted by Section 522(d)(10)(E) of Title 11 of the United States

Code, 11 U.S.C. section §522(d)(10)(E). This exemption shall not apply to the right or interest of

a person in an annuity, pension, profit sharing, or other retirement plan to the extent that that right

or interest is subject to any of the following:

      (i) An order of the court pursuant to a judgment of divorce or separated maintenance.

      (ii) An order of a court concerning child support.

      This exemption shall not apply to, contributions to and the earnings of, any of the

retirement plans enumerated in this subdivision that are not qualified retirement plans as defined

by Section 401 of the the Internal Revenue Code, 26 U.S.C. section §401.

      (13) Any and all motor vehicles owned by the debtor not to exceed an aggregate total of

twelve thousand dollars ($12,000).

      (14) Any and all jewelry owned by the debtor not to exceed an aggregate total of two

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thousand dollars ($2,000).

      (15) An account balance, right, or interest of a person in a "prepaid tuition program" or a

"tuition savings program" as defined in section §16-57-3(10) and (16), respectively. This

exemption shall not apply to a balance, right, or interest to the extent that the balance, right, or

interest is subject to any of the following:

      (i) An order of a court pursuant to a judgment of divorce or separate maintenance;

      (ii) An order of a court concerning child support.

      (16) In addition to the exemptions herein, a debtor in bankruptcy may exempt an

additional six thousand five hundred dollars ($6,500) in any assets.

     (17) The real property of any person having debts secured by casino-issued lines of credit

also known as "casino markers" that are issued to casino patrons by the casino credit department

or other department or agency of the casino.

     SECTION 5. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- VIDEO LOTTERY TERMINAL

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     This act would authorize the extension of credit to players at the Twin River gaming

facility, and would establish the statutory guidelines governing such extension of credit.

     This act would also prohibit casinos from attaching the real estate of any person who is

provided a casino marker or line of credit by the casino.

     This act would take effect upon passage.

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