Chapter
013
2008 -- H 7040 SUBSTITUTE A AS AMENDED
Enacted 05/06/08
A N A C T
RELATING TO STATE
AFFAIRS AND GOVERNMENT
Introduced By: Representatives San Bento, Rose, Singleton, Shanley, and Slater
Date Introduced: January 03, 2008
It is
enacted by the General Assembly as follows:
SECTION
1. Sections 42-61.2-1, 42-61.2-6 and 42-61.2-7 of the General Laws in
Chapter
42-61.2 entitled "Video Lottery Terminal" are hereby amended to read
as follows:
42-61.2-1.
Definitions. -- 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, operates, 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, is available to play a video game authorized by the
lottery
division,
and which uses a video display and microprocessors in which, by chance, the
player
may
receive free games or credits that can be redeemed for cash. The term does not
include a
machine
that directly dispenses coins, cash, or tokens.
42-61.2-6.
When games may be played. – (a) Video lottery games authorized
by this
chapter
may be played at the licensed video lottery retailer's facilities with the
approval of the
lottery
commission even if that facility is not conducting a pari-mutuel event.
(b)
Upon the effective date of this section, the facilities known as "Twin
River" in
Lincoln,
Rhode Island, and "Newport Grand" in Newport, Rhode Island, are
permitted at their
discretion
to maintain and operate all video lottery games which said facilities are
authorized to
conduct
on a twenty-four (24) hour basis, on weekends and federal or state recognized
holidays.
For
purposes of operating these additional hours on weekends, the facility may open
at its
regularly
scheduled time on Friday, and then remain open through its regular closing time
on
Sunday
evening, except that if the federal or state holiday is recognized on a Monday,
the facility
may
remain open through to that Monday and close at the normal closing time on
Monday. For
purposes
of operating these additional hours on federal or state recognized holidays,
the facility
may
open at its regular time on the day preceding the holiday, and then remain open
through to
what
would be its regular closing time on the holiday. It shall be the duty of the
pari-mutuel
licensees
operating the respective facilities, under the supervision of the division of
state lottery,
to
account for the amount of funds generated during and by these additional hours
of operation.
The
normal closing time for said facilities shall be no later than three (3)
o'clock A.M. except as
provided
herein.
42-61.2-7.
Division of revenue. -- (a) Notwithstanding the provisions of section
42-61-
15, the
allocation of net terminal income derived from video lottery games is as
follows:
(1) For deposit in the general fund and to the state lottery division fund for
administrative
purposes: Net terminal income not otherwise disbursed in accordance with
subdivisions
(a)(2) -- (a)(6)(7) herein;
(i) Except for the fiscal year ending June 30, 2008, nineteen one hundredths of
one
percent
(0.19%) up to a maximum of twenty million dollars ($20,000,000) shall be
equally
allocated
to the distressed communities as defined in section 45-13-12 provided that no
eligible
community
shall receive more than twenty-five percent (25%) of that community's currently
enacted
municipal budget as its share under this specific subsection. Distributions
made under
this
specific subsection are supplemental to all other distributions made under any
portion of
general
laws section 45-13-12. For the fiscal year ending June 30, 2008 distributions
by
community
shall be identical to the distributions made in the fiscal year ending June 30,
2007 and
shall be
made from general appropriations.
(ii) Five one hundredths of one percent (0.05%) up to a maximum of five million
dollars
($5,000,000)
shall be appropriated to property tax relief to fully fund the provisions of
section 44-
33-2.1.
The maximum credit defined in subdivision 44-33-9(2) shall increase to the
maximum
amount
to the nearest five dollar ($5.00) increment within the allocation until a
maximum credit
of five
hundred dollars ($500) is obtained. In no event shall the exemption in any
fiscal year be
less
than the prior fiscal year.
(iii) One and twenty-two one hundredths of one percent (1.22%) to fund section
44-34.1-
1,
entitled "Motor Vehicle and Trailer Excise Tax Elimination Act of
1998", to the maximum
amount
to the nearest two hundred fifty dollar ($250) increment within the allocation.
In no event
shall
the exemption in any fiscal year be less than the prior fiscal year.
(iv) Except for the fiscal year ending June 30, 2008, ten one hundredths of one
percent
(0.10%) to
a maximum of ten million dollars ($10,000,000) for supplemental distribution to
communities
not included in paragraph (a)(1)(i) above distributed proportionately on the
basis of
general
revenue sharing distributed for that fiscal year. For the fiscal year ending
June 30, 2008
distributions
by community shall be identical to the distributions made in the fiscal year
ending
June 30,
2007 and shall be made from general appropriations.
(2) To the licensed video lottery retailer:
(a) (i) Prior to the effective date of the NGJA Master Contract, Newport Jai
Ali twenty-
six
percent (26%) minus three hundred eighty four thousand nine hundred ninety-six
dollars
($384,996);
(ii) On and after the effective date of the NGJA Master Contract, to the
licensed video
lottery
retailer who is a party to the NGJA Master Contract, all sums due and payable
under said
Master
Contract minus three hundred eighty four thousand nine hundred ninety-six
dollars
($384,996).
(b) (i) Prior to the effective date of the UTGR Master Contract, to the present
licensed
video
lottery retailer at Lincoln Park which is not a party to the UTGR Master
Contract, twenty-
eight
and eighty-five one hundredths percent (28.85%) minus seven hundred sixty-seven
thousand
six hundred eighty-seven dollars ($767,687);
(ii) On and after the effective date of the UTGR Master Contract, to the
licensed video
lottery
retailer who is a party to the UTGR Master Contract, all sums due and payable
under said
Master
Contract minus seven hundred sixty-seven thousand six hundred eighty-seven
dollars
($767,687).
(3) (i) To the technology providers who are not a party to the GTECH Master
Contract
as set
forth and referenced in Public Law 2003, Chapter 32, seven percent (7%) of the
net
terminal
income of the provider's terminals;
(ii) To contractors who are a party to the Master Contract as set forth and
referenced in
Public
Law 2003, Chapter 32, all sums due and payable under said Master Contract;
(iii) Notwithstanding paragraphs (i) and (ii) above, there shall be subtracted
proportionately
from the payments to technology providers the sum of six hundred twenty-eight
thousand
seven hundred thirty-seven dollars ($628,737);
(4) To the city of Newport one and one hundredth percent (1.01%) of net
terminal
income
of authorized machines at Newport Grand except that upon passage the
allocation shall be
one
and two tenths percent (1.2%) of net terminal income of authorized machines at
Newport
Grand
for each week the facility operates video lottery games on a twenty-four (24)
hour basis for
all
eligible hours authorized in section 42-61.2-6(b) and to the town of Lincoln one and twenty-
six
hundreths (1.26%) of net terminal income of authorized machines at Lincoln Park;
and except
that
upon passage the allocation shall be one and forty-five hundredths percent
(1.45%) of net
terminal
income of authorized machines at Lincoln Park for each week the facility
operates video
lottery
games on a twenty-four (24) hour basis for all eligible hours authorized in
section 42-61.2-
6(b);
(5)
To the Narragansett Indian Tribe, seventeen hundredths of one percent (0.17%)
of net
terminal
income of authorized machines at Lincoln Park up to a maximum of ten million
dollars
($10,000,000)
per year, which shall be paid to the Narragansett Indian Tribe for the account
of a
Tribal
Development Fund to be used for the purpose of encouraging and promoting: home
ownership
and improvement, elderly housing, adult vocational training; health and social
services;
childcare; natural resource protection; and economic development consistent
with state
law.
Provided, however, such distribution shall terminate upon the opening of any
gaming facility
in which
the Narragansett Indians are entitled to any payments or other incentives; and
provided
further,
any monies distributed hereunder shall not be used for, or spent on previously
contracted
debts.;
and
(6)
To the permanent school fund established in chapter 16-4 the additional revenue
accruing
to the state as the direct result of the additional hours authorized by this
act net of the
additional
revenue to the city of Newport and the Town of Lincoln resulting directly from
the
additional
hours authorized under this act, not to exceed fourteen million one hundred
thousand
dollars
($14,100,000) by June 30, 2009, to be allocated as aid to local education
authorities as
determined
by the general assembly for fiscal year 2009, notwithstanding the provisions of
chapter
16-4 of the Rhode Island General Laws.
(6) (7) Unclaimed prizes and credits shall remit to the general
fund of the state;
(7) (8) Payments into the state's general fund specified in
subdivisions (a)(1) and
(a)(6)(7)
shall be made on an estimated monthly basis. Payment shall be made on the tenth
day
following
the close of the month except for the last month when payment shall be on the
last
business
day.
SECTION
2 This act shall take effect upon passage and shall expire on June 30, 2009.
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LC00259/SUB A/3
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