Chapter 290
2012 -- S 3001 SUBSTITUTE A
Enacted 06/20/12
A N A C T
RELATING TO
REVENUE PROTECTION
Introduced By: Senators Goodwin, Bates, and Felag
Date Introduced: May 24, 2012
It is enacted by the
General Assembly as follows:
SECTION 1. Purpose. The
general assembly hereby finds that:
(a)
The
important source of revenue for the state of
Island Department of
Business Regulation to conduct pari-mutuel wagering, and at which the
Division (as defined
herein) operates games of the
(b)
The
important source of revenue for the state of
Island Department of
Business Regulation to conduct pari-mutuel wagering, and at which the
Division (as defined
herein) operates games of the
(c)
In a study commissioned by the Rhode Island Department of Revenue, Christiansen
Capital Advisors, LLC
anticipated that competition from gaming facilities recently authorized in
operated gaming in
($100,000,000)
or more in annual revenue.
(d)
Revenues generated from state-operated gaming in
largest source of revenue to the state, behind only revenue
generated from income taxes and sales
and use taxes.
(e)
Accordingly, competition from gaming facilities in
imminent threat to revenues generated by the state, and thus
an imminent threat to the public
welfare.
(f)
It is therefore imperative that action be taken to ameliorate the anticipated
adverse
effects on state revenues from competition from gaming
facilities recently authorized in
(g)
It is also imperative that action be taken to preserve and protect the state’s
ability to
maximize revenues at
market by expanding critical revenue-driving promotional programs
through legislative
authorization and necessary amendments to contracts, previously
authorized by the General
Assembly,
to position the promotional programs for long-term success.
(h)
It is also in the best interest of the state to preserve public confidence in
the integrity
of
control state-operated Table Gaming (as defined herein).
(i) It is the intent of the general assembly that this act address, independently: (1) Section
8 of Chapter 151,
Article 25 of the Public Laws of 2011 authorizing a referendum question to be
submitted to statewide and Town of
to approve Casino Gaming (as defined therein) at
and 25 of the Public Laws of 2012 authorizing a
referendum question to be submitted to statewide
and City of
Gaming at
the referendum questions as to
referendum questions as to
(j)
It is also the intent of the general assembly that this act satisfies the
general assembly’s
obligations pursuant to subdivision 42-61.2-2.1(b)(4) of the
Rhode Island General Laws.
(k)
It is also the intent of the general assembly that this act, being necessary to
address an
imminent threat to the public welfare, as aforesaid, shall be
liberally construed so as to effectuate
its purposes, including without limitation, the state’s
attempt to minimize certain commercial
risks faced by UTGR (as defined herein) and
entering into agreements with the Division.
SECTION 2. Definitions.
(a) For the purposes of this act, the following terms shall have
the following meanings:
(1)
"Division" means the division of lotteries within the department of
revenue and/ or
any successor as party to the UTGR Master Contract, the
GTECH
Master Contract.
(2)
"GTECH Master Contract" means that certain Master Contract made as of
May 12,
2003
pursuant to Chapters 32 and 33 of the Public Laws of 2003, as amended from time
to time.
(3)
"Initial Promotional Points Program" means that promotional points
program
authorized in Section 4(a)(ii) of Part A as to
Chapter 16 of the Public
Laws of 2010, as amended by Section 8 of Chapter 151, Article 25 of
the Public Laws of 2011.
(4)
"
the Public Laws of 2010, Part B, Section 2(l).
(5)
"
Contract made as of
November 23, 2005 by and between the Division and
Alai, LLC, as amended
from time to time.
(6)
"Prior Marketing Year" means the prior state fiscal year.
(7)
"Promotional Points" means the promotional points issued pursuant to
any free play
or other promotional program operated by the Division at
a licensed video lottery terminal facility
(including,
without limitation, the promotional points programs at
Grand authorized
pursuant to Chapter 16 of the Public Laws of 2010, Part A as to
Part B as to
Section 8(a)(i), and Section 8 hereof as to
which are downloaded to a video lottery terminal by a
player.
(8)
"Supplementary Promotional Points Program" means that promotional
points program
authorized in Section 8 hereof as to
(9)
“UTGR” means that corporation defined in Chapter 16 of the Public Laws of 2010,
Part A, Section 2(n).
(10)
"UTGR Master Contract" means that certain Master Video Lottery
Terminal
Contract made as of July
18, 2005 by and between the Division, the Department
of
Transportation
and UTGR, as amended from time to time.
SECTION 3. Except as otherwise amended by this act, the terms,
conditions, provisions
and definitions of Chapters 32 and 33 of the Public Laws
of 2003, Chapters 322 and 323 of the
Public Laws of 2005,
Chapter 16 of the Public Laws of 2010, Chapter 151, Article 25 of the Public
Laws of 2011 and Chapters
24 and 25 of the Public Laws of 2012 are hereby incorporated by
reference and shall remain in full force and effect.
SECTION 4. Sections 42-61.2-1 and 42-61.2-7 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, operates 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, 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.
(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 is approved by the
state through the division of state lottery.
(9)
"Net Table Game Revenue" means win from Table Games minus
counterfeit
currency.
(10)
"Rake" means a set fee or percentage of cash and chips
representing cash wagered in
the playing of a nonbanking Table Game assessed by a
Table Game Retailer for providing the
services of a dealer, gaming table or location, to allow the
play of any nonbanking Table Game.
(11)
“Table Game” or “Table Gaming” means that type of
Casino Gaming in which table
games are played for cash or chips representing cash, using
cards, dice or equipment and
conducted by one or more live persons.
(12)
"Table Game Retailer" means a retailer authorized to conduct Table
Gaming
pursuant to section 42-61.2-2.1 and 42-61.2-2.2 of the Rhode
Island General Laws.
42-61.2-7.
Division of revenue. [Effective June 30, 2011.] --
(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) 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. For the fiscal
year ending June 30, 2009, the total
state distribution shall be the same total amount
distributed in the fiscal year ending June 30,
2008 and shall be made from general appropriations.
For the fiscal year ending June 30, 2010, the
total state distribution shall be the same total amount
distributed in the fiscal year ending June 30,
2009 and shall be made from general appropriations,
provided however that $784,458 of the total
appropriation shall be distributed equally to each qualifying
distressed community. For each of
the fiscal years ending June 30, 2011 and June 30, 2012,
seven hundred eighty-four thousand four
hundred fifty-eight dollars ($784,458) of the total
appropriation shall be distributed equally to
each qualifying distressed community.
(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. For the fiscal year ending June 30,
2009, no funding shall be disbursed. For the fiscal
year ending June 30, 2010 and thereafter,
funding shall be determined by appropriation.
(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).
(iii) Effective July
1, 2013, provided that the referendum measure authorized by Section
1 of Chapters 24 and 25 of the Public Laws of 2012 is
approved statewide and in the City of
games, the rate of net terminal income payable to
Master Contract shall increase by one and one half
percentage (1.5%) points.
(b) (i) Prior to the effective date of
the UTGR Master Contract, to the present licensed
video lottery retailer at
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; in addition
thereto, technology providers who
provide premium or licensed proprietary content or those
games that have unique characteristics
such as 3D graphics, unique math/game play features or
merchandising elements to video lottery
terminals may receive incremental compensation, either in the
form of a daily fee or as an
increased percentage, if all of the following criteria are met:
(A) A licensed video
lottery retailer has requested the placement of premium or licensed
proprietary content at its licensed video lottery facility;
(B) The division of
lottery has determined in its sole discretion that the request is likely
to increase net terminal income or is otherwise
important to preserve or enhance the
competiveness of the licensed video lottery retailer;
(C) After approval of
the request by the division of lottery, the total number of premium
or licensed propriety content video lottery terminals
does not exceed ten percent (10%) of the
total number of video lottery terminals authorized at the
respective licensed video lottery retailer;
and
(D) All incremental
costs are shared between the division and the
respective licensed
video lottery retailer based upon their proportionate
allocation of net terminal income. The
division of lottery is hereby authorized to amend agreements
with the licensed video lottery
retailers, or the technology providers, as applicable, to
effect the intent herein.
(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) (A) To the city of
income of authorized machines at Newport Grand, except that:
(i)
Effective November 9, 2009 until June 30, 2012 2013, 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, and
(ii) Effective July 1,
2013, provided that the referendum measure authorized by Section 1
of Chapters 24 and 25 of the Public Laws of 2012 is
approved statewide and in the City of
income of authorized video lottery terminals at
(B) To the town
of
terminal income of authorized machines at Lincoln Park
(i)
Effective November 9, 2009 until June 30, 2012 2013, the
allocation shall be one and
forty-five hundredths percent (1.45%) of net terminal income of
authorized machines at Lincoln
Park the facility operates video
lottery games are offered on a twenty-
four (24) hour basis for all eligible hours authorized,
and
(ii) Effective July
1, 2013, provided that the referendum measure authorized by Article
25, Chapter 151, Section 4 of the Public Laws of 2011
is approved statewide and in the Town of
income of authorized video lottery terminals at
(5) To the Narragansett
Indian Tribe, seventeen hundredths of one percent (0.17%) of net
terminal income of authorized machines at
($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) Unclaimed prizes and
credits shall remit to the general fund of the state; and
(7) Payments into the
state's general fund specified in subdivisions (a)(1)
and (a)(6) 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.
(b) Notwithstanding the
above, the amounts payable by the Division to UTGR related to
the Marketing Program shall be paid on a frequency agreed
by the Division, but no less
frequently than annually.
(c) Notwithstanding
anything in this chapter 61.2 of this title 42 to the contrary, the
Director is authorized to fund the Marketing Program
as described above in regard to the First
Amendment to the UTGR Master
Contract.
(d) Notwithstanding the
above, the amounts payable by the Division to Newport Grand
related to the Marketing Program shall be paid on a frequency
agreed by the Division, but no less
frequently than annually.
(e) Notwithstanding
anything in this chapter 61.2 of this title 42 to the contrary, the
Director is authorized to fund the Marketing Program
as described above in regard to the First
Amendment to the
(f) Notwithstanding
the provisions of § 42-61-15, the allocation of Net Table Game
Revenue derived from Table Games at
(1) For deposit into
the state lottery fund for administrative purposes and then the balance
remaining into the general fund:
(i)
Sixteen percent (16%) of Net Table Game Revenue, except as provided in
subsection
(f)(1)(ii);
(ii) An additional
two percent (2%) of Net Table Game Revenue generated at
shall be allocated starting from the commencement of Table
Game activities by such Table Game
Retailer, and ending, with respect to such Table Game
Retailer, on the first date that such Table
Game Retailer’s net terminal income for a full State
fiscal year is less than such Table Game
Retailer’s net terminal income for the prior State
fiscal year, at which point this additional
allocation to the State shall no longer apply to such Table Game
Retailer.
(2) To UTGR, Net
Table Game Revenue not otherwise disbursed pursuant to above
subsection (f)(1); provided, however, on the first date that
such Table Game Retailer’s net
terminal income for a full State fiscal year is less than such
Table Game Retailer’s net terminal
income for the prior State fiscal year, as set forth in
subsection (f)(1)(ii) above, one percent (1%)
of this Net Table Game Revenue shall be allocated to the
town of
State fiscal years.
(g) Notwithstanding the
provisions of § 42-61-15, the allocation of Net Table Game
Revenue derived from Table Games at
(1) For deposit into
the state lottery fund for administrative purposes and then the balance
remaining into the general fund: eighteen percent (18%) of Net
Table Game Revenue.
(2) To
to above subsection (g)(1) provided, however, on the
first date that such Table Game Retailer’s
net terminal income for a full State fiscal year is less
than such Table Game Retailer’s net
terminal income for the prior State fiscal year, one percent
(1%) of this Net Table Game Revenue
shall be allocated to the city of
SECTION 5. Chapter 42-61.2 of the General Laws entitled
"Video Lottery Terminal" is
hereby amended by adding thereto the following section:
42-61.2-3.1. Table
game regulation. – (a) In addition to the
powers and duties of the
Division director under Sections 42-61-4, 42-61.2-3
and 42-61.2-4, and pursuant to § 42-61.2-2.1
and § 42-61.2-2.2, the Division director shall promulgate
reasonable rules and regulations relating
to state-operated Table Gaming and set policy for these
Table Games. These rules and regulations
shall include, but not be limited to:
(1) Establishing
standards and procedures for Table Gaming and associated equipment.
(2)
Establishing standards, rules and regulations to govern the conduct of Table
Games and the
system of wagering associated with Table Games, including
without limitation:
(i)
The object of the Table Game and method of play, including what constitutes
win, loss
or tie bets;
(ii) Physical
characteristics of the Table Games and Table Game equipment;
(iii) Wager and
payout odds for each type of available wager;
(iv)
The applicable inspection procedures for any of the following, as
required by a Table
Game:
(A) Cards;
(B) Dice;
(C) Wheels and balls;
and
(D) Other devices,
equipment and accessories related to table games.
(v) Procedures for
the collection of bets and payouts, including requirements for internal
revenue service purposes;
(vi)
Procedures for handling suspected cheating or Table Gaming
irregularities; and
(vii) Procedures for
handling any defective or malfunctioning Table Game equipment.
(3) Establishing the
method for calculating Net Table Game Revenue and standards for
the daily counting and recording of cash received in the
conduct of Table Games, and ensuring
that internal controls are followed, including the
maintenance of financial books and records and
the conduct of annual audits at the expense of the table
game retailer.
(4) Establishing the
number and type of Table Games authorized at a Table Game
Retailer’s facility, and all
rules related thereto.
(5) Establishing any
Table Game rule changes, Table Game minimum and maximum
wager changes, and changes to the type of Table Game being
offered at a particular gaming table,
including any notice by the Table Game Retailer to the public.
(6) Requiring the
Table Game Retailer to:
(i)
Provide written information at each Table Game about game rules, payoffs or
winning
wagers and other information as the Division may require.
(ii) Provide
specifications approved by the Division to integrate and update the Table
Game Retailer’s surveillance system to cover all areas
where Table Games are conducted and
other areas as required by the lottery division. The
specifications shall include provisions
providing the Division and other persons authorized by the
Division with onsite access to the
system.
(iii) Designate one
or more locations within the Table Game Retailer’s facility to
conduct Table Games.
(iv)
Ensure that visibility in a Table Game Retailer’s facility is not
obstructed in any way
that could interfere with the ability of the Division, the
Table Game Retailer or other persons
authorized under this section or by the Division to oversee the
surveillance of the conduct of
Table Games.
(v)
Ensure that the count room for Table Gaming has appropriate security for the
counting and storage of cash.
(vi)
Furnish each Table Game with a sign acceptable to the division
indicating the
permissible minimum and maximum wagers at the Table Game.
(vii) Adopt policies
or procedures to prohibit any Table Game equipment from being
possessed, maintained or exhibited by any person on the premises
of a Table Game Retailer’s
facility except in the areas of such facility where the
conduct of Table Games is authorized or in a
restricted area designated to be used for the inspection,
service, repair or storage of Table Game
equipment by the Table Game Retailer or in an area used for
employee training and instruction by
the Table Game Retailer.
(viii) Ensure that
drop boxes are brought into or removed from an area where Table
Games are conducted or locked or unlocked in
accordance with procedures established by the
Division.
(ix) Designate secure
locations for the inspection, service, repair or storage of Table
Game equipment and for employee
training and instruction to be approved by the Division.
(7) Establishing the
size and uniform color by denomination of Table Game chips used in
the conduct of Table Games, including tournaments, and a
policy for the use of promotional or
commemorative chips used in the conduct of certain Table Games. All
types of Table Game chips
shall be approved by the Division prior to being used for
play at a Table Game.
(8) Establishing the
procedure to be used by a Table Game Retailer to determine and
extract a Rake for the purposes of generating Net Table Game
Revenue from nonbanking games.
(9) Establishing
minimum standards relating to the acceptance of tips or gratuities by
dealers at a Table Game, which shall include:
(i)
The requirement that tips or gratuities accepted by dealers at banking Table
Games be
placed in a common pool for complete distribution pro rata
among all dealers based on the daily
collection of such tips or gratuities; provided however, the
Division may establish an alternative
distribution method for tips or gratuities at a banking Table Game
upon submission by the Table
Game Retailer of a proposal acceptable to the division
to modify the existing distribution method
for tips or gratuities.
(ii) The requirement
that tips or gratuities accepted by dealers at nonbanking Table
Games are not required to be pooled and may be
retained by the dealers; provided however, the
Division may establish an alternative distribution
method for tips or gratuities at a nonbanking
Table Game upon submission by the Table Game Retailer
of a proposal acceptable to the division
to modify the existing distribution method for tips or
gratuities.
(10) Establishing the
minimal proficiency requirements for Table Game personnel,
including without limitation Table Game dealers. The foregoing
requirements of this subsection
(10) shall not affect any
rules or regulations of the Rhode Island Department of Business
Regulation requiring licensing of
personnel of state-operated gaming facilities.
(11) Establishing the
practices and procedures governing the conduct of Table Game
tournaments.
(12) Establishing
appropriate eligibility requirements and standards for traditional Table
Game equipment suppliers.
(13) Any other
matters necessary for conducting Tables Games.
(b) The Division
shall promulgate the Table Game regulations authorized by this section
on or before March 31, 2013.
(c) A Table Game
Retailer shall reimburse and pay to the Division (or to such other
entities as the Division may identify) all reasonable costs
and expenses associated with the
Division's review of the business or operations of the
Table Game Retailer, including, but not
limited to, such items as ongoing auditing, legal,
investigation services, compulsive and problem
gambling programs, and other related matters.
(d) The Table Game
Retailer shall provide secure, segregated facilities as required by the
Division on the premises for the
exclusive use of the Lottery staff and the State Police. Such
space shall be located proximate to the gaming floor and
shall include surveillance equipment,
monitors with full camera control capability, as well as other
office equipment that may be
deemed necessary by the Division. The location and size of
the space shall be subject to the
approval of the Division.
SECTION 6. Sections 42-61.2-5, 42-61.2-8 and 42-61.2-12 of
the General Laws in
Chapter 42-61.2 entitled
"Video Lottery Terminal" are hereby amended to read as follows.
42-61.2-5.
Exclusion of minors. -- No person under the age of
eighteen (18) years may
play a video lottery game or a Table Game
authorized by this chapter, nor shall any licensed
video lottery or Table Game retailer knowingly
permit a minor to play a video lottery machine or
Table Game or
knowingly pay a minor with respect to a video lottery credit slip or Table
Game
chip. Violation of this section shall be punishable by a
fine of five hundred dollars ($500).
42-61.2-8.
Penalty for manipulation or tampering. -- Any
person who, with intent to
manipulate the outcome, payoff, and/or operation of a video
lottery terminal or Table Game,
manipulates the outcome, prize, or operation of a video lottery
terminal or Table Game by
physical or electronic means shall be guilty of a felony punishable
by imprisonment for not more
than ten (10) years or by a fine of not less than ten
thousand ($10,000) dollars or both.
42-61.2-12. Video
lottery terminal prize -- Set-off for child support debts Prize --
Set-off for child support debts. -- Notwithstanding the provisions of section 42-61-7
relating to
assignment of prizes, the following set off provisions shall
apply to the payment of any prize
requiring the issuance of Internal Revenue Service Form W-2G by
a video lottery retailer
(whether or not a Table Game
Retailer) to a patron:
(1) With respect to a
person entitled to receive the prize who has an unpaid
child support
order(s) arrearage(s) in excess of five hundred dollars
($500), as provided by the department of
human services pursuant to subsection 42-61-7.1(3), the
division of state lottery:
(i)
Shall establish rules and regulations pursuant to section 42-61.2-3 and
section 42-
61.2-3.1)
providing for the establishment and operation of a system whereby the division
of state
lottery shall have the ability to communicate such
information to video lottery retailers so as to
identify a person entitled to receive a prize requiring the
issuance of Internal Revenue Service
Form W-2G who has an unpaid child support order(s) arrearage(s).
(ii) Upon receipt of
information indicating an unpaid child support arrearage the video
lottery retailer shall set off against the amount due to that
person an amount up to the balance of
the child support arrearage(s). The video lottery
retailer shall then make payment as prescribed by
the division of lottery to the
which shall deposit the amount set off into the registry of
the family court for a period of forty-
five (45) days, or if any application for review has been
filed pursuant to subsection 27-57-1(d),
until final disposition of the application until further
order of the court.
(iii) The video lottery
retailer shall pay to this person the remaining balance of the prize
amount, if any, after reduction of the amount set off above
for child support.
(2) The division of
lottery, the lottery director and the video lottery retailer shall be
discharged of all further liability upon payment of a prize pursuant
to this section. Except in the
case of gross negligence, the division of lottery, the
lottery director and the video lottery retailer
shall not be liable to any party or person for failure to
make such a set-off.
(3) The department of
human services shall periodically within each year furnish the
director with a list or compilation of names of individuals,
together with any other identifying
information and in a form that the director shall require, who as
of the date of the list or
compilation, have an unpaid child support order arrearage in
excess of five hundred dollars
($500) as shown on the
support enforcement computer system ("CSE system").
For the purposes of this section, the terms
used in this section shall be given the meaning and
definitions specified in section 15-16-2.
(4) Any party aggrieved
by any action taken under this section may within thirty (30)
days of the withholding of the payment by the lottery
director seek judicial review in the family
court, which may, in its discretion, issue a temporary
order prohibiting the disbursement of funds
under this section, pending final adjudication.
(5) Notwithstanding any
other general or special law to the contrary, this section shall
apply to all existing gambling facilities within the state
as of the time of enactment and also to
any gambling facility within this state which is
established after the date of enactment.
SECTION 7. Chapter 42-61.2 of the General Laws entitled
"Video Lottery Terminal" is
hereby amended by adding thereto the following sections:
42-61.2-13.
Table game enforcement. – (a) Whoever violates sections 42-61.2-2.1 or
42-61.2-3.1, or any rule or regulation, policy or
procedure, duly promulgated thereunder, or any
administrative order issued pursuant to sections 42-61.2-2.1 or
42-61.2-3.1, shall be punishable as
follows:
(1) In the Division
director's discretion, the Division director may impose an
administrative penalty of not more than one thousand dollars ($1,000)
for each violation. Each day
of continued violation shall be considered as a separate
violation if the violator has knowledge of
the facts constituting the violation and knows or should
know that such facts constitute or may
constitute a violation. Lack of knowledge regarding such facts
or violation shall not be a defense
to a continued violation with respect to the first day
of its occurrence. Written notice detailing the
nature of the violation, the penalty amount, and effective
date of the penalty will be provided by
the Division director. Penalties shall take effect upon
notification. A written request for a hearing
must be submitted in writing to the Division director
within thirty (30) days of notification of
violation.
(2)(a) In the
Division director's discretion, the Division director may endeavor to obtain
compliance with requirements of this chapter by written
administrative order. Such order shall be
provided to the responsible party, shall specify the
complaint, and propose a time for correction
of the violation.
(b) The Division
director shall enforce this chapter. Such enforcement shall include, but
not be limited to, referral of suspected criminal
activity to the
investigation.
(c) Any interest,
costs or expense collected under this section shall be appropriated to the
Division for administrative
purposes.
(d) Any penalty
imposed by the Division pursuant to this Section 42-61.2-13 shall be
appealable to Superior Court.
42-61.2-14.
Compulsive and problem gambling program. – The
Division and the State
acknowledge that the vast majority of gaming patrons can enjoy
gambling games responsibly, but
that there are certain societal costs associated with
gaming by some individuals who have
problems handling the product or services provided. The
Division and the State further
understand that it is their duty to act responsibly toward those
who cannot participate
conscientiously in gaming. Pursuant to the foregoing,
cooperation with the State, shall offer compulsive and problem
gambling programs that include,
but are not limited to (a) problem gambling awareness
programs for employees; (b) player self-
exclusion program; and (c) promotion of a problem gambling
hotline.
Grand shall modify their existing compulsive and
problem-gambling programs to include Table
Games to the extent such games are authorized at such
facilities.
shall reimburse and pay to the Division no less than one
hundred thousand dollars ($100,000) in
aggregate annually for compulsive and problem gambling programs
established by the Division.
The contribution from each facility shall be
determined by the Division.
42-61.2-15.
Table game hours of operation. – To the extent
Table Games are
authorized at
the days and times that VLTs
are offered. To the extent Table Games are authorized at
Grand, such Table Games may be offered at
times that VLTs are offered.
SECTION 8. Authorized Procurement of Third Amendment to
the UTGR Master
Contract.
(a)
Notwithstanding any provision of the general or Public Laws to the contrary,
within ninety
(90) days
of the enactment of this Act, the Division is hereby expressly authorized and
directed to
enter into with UTGR a Third Amendment to the UTGR Master
Contract to effectuate the terms
and conditions of this Act relative to video lottery
terminals, including, without limitation, the
following:
(1)
There is hereby authorized a Supplementary Promotional Points Program at Twin
River (in addition to
the Initial Promotional Points Program), pursuant to the terms and conditions
established from time to time by the Division during the term of the
UTGR Contract. The
approved amount of the Supplementary Promotional Points
Program shall not exceed six percent
(6%)
of
aggregate approved amount of the Initial and Supplementary
Promotional Points Programs, in
total, shall therefore not exceed ten percent (10%) of the
amount of net terminal income of Twin
River of the Prior
Marketing Year, plus an additional seven hundred and fifty thousand dollars
($750,000) allocated
pursuant to the terms of Chapter 151, Article 25 of the Public Laws of 2011,
Section 8(a)(i).
(2)
The requirements of this Section 8 related to the Supplementary Promotional
Points
Program shall take
effect on and after July 1, 2012.
SECTION 9. Authorized Procurement of Third Amendment to
the
Master Contract.
(a)
Notwithstanding any provision of the general or Public Laws to the contrary,
within ninety
(90) days
of the enactment of this Act, the Division is hereby expressly authorized and
directed to
enter into with
to effectuate the terms and conditions of this Act
relative to video lottery terminals, including,
without limitation, the following:
(1)
There is hereby authorized a Supplementary Promotional Points Program at
Grand (in addition to
the Initial Promotional Points Program), pursuant to the terms and
conditions established from time to time by the Division during
the term of the
Master Contract. The
approved amount of the Supplementary Promotional Points Program shall
not exceed six percent (6%) of
For avoidance of doubt,
the aggregate approved amount of the Initial and Supplementary
Promotional Points
Programs, in total, shall therefore not exceed ten percent (10%) of the amount
of net terminal income of
hundred and fifty thousand dollars ($750,000) allocated pursuant
to the terms of Chapter 151,
Article 25 of the Public
Laws of 2011, Section 8(a)(i).
(2)
The requirements of this Section 9 related to the Supplementary Promotional
Points
Program shall take
effect on and after July 1, 2012.
SECTION
10. This act shall take effect upon passage, except for section 7. With
respect
to
statewide and by the Town of Lincoln pursuant to
Article 25, Chapter 151, Section 4 of the Public
Laws of 2011. With respect to Newport Grand, Section 7 shall take
effect only if Casino Gaming
at Newport Grand is approved statewide and by the City
of
Chapters 24 and 25 of the Public
Laws of 2012. Voter approval or
non-approval with respect to
one facility shall be independent of voter approval or
non-approval with respect to the other
facility.
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LC02714/SUB A/4
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