HLS 10RS-1057 REENGROSSED Page 1 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Regular Session, 2010 HOUSE BILL NO. 334 BY REPRESENTATIVE LEGER GAMING/REVENUE: Provides relative to the casino support services contract AN ACT1 To amend and reenact R.S. 27:247 and 270(A)(3)(a), relative to the casino support services2 contract; to provide for the funding of such contract; to establish the Casino Support3 Services Fund as a special treasury fund; to provide for an effective date; and to4 provide for related matters.5 Be it enacted by the Legislature of Louisiana:6 Section 1. R.S. 27:247 and 270(A)(3)(a) are hereby amended and reenacted to read7 as follows: 8 §247. Casino support services contract; Casino Support Services Fund9 A. Subject to and in accordance with the provisions of this Chapter, the10 gaming control board shall enter into a casino support services contract with the11 governing authority of the parish where the official gaming establishment is located12 in order to compensate the parish on a quarterly basis for the cost to the parish for13 providing support services resulting from the operation of the official gaming14 establishment and the activities therein. Support services as used in this Section15 shall include but not be limited to fire, police, sanitation, health, transportation, and16 traffic services. The amount of the contract shall be determined by negotiation and17 agreement between the gaming control board and the parish, subject to approval by18 the Joint Legislative Committee on the Budget. In the event that a new contract is19 not agreed upon by the gaming control board and the parish by March thirty-first of20 any year, the contract currently in effect shall be submitted to the Joint Legislative21 Committee on the Budget for approval of the amount of the contract at the next22 HLS 10RS-1057 REENGROSSED HB NO. 334 Page 2 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. meeting of the committee. If the committee approves or does not act upon the1 amount of the contract, the contract shall remain in full force and effect. If the2 committee disapproves or does not act upon the amount of the contract, the contract3 shall be null, void, and of no effect.4 B.(1) There is hereby created in the state treasury, as a special fund, the5 Casino Support Services Fund, hereinafter referred to as the "fund", to provide6 compensation to the parish governing authority pursuant to a casino support services7 contract executed pursuant to Subsection A of this Section.8 (2) Monies in the fund shall be invested in the same manner as monies in the9 general fund. Interest earned on investment of monies in the fund shall be credited10 to the fund. Unexpended and unencumbered monies in the fund at the end of the11 fiscal year shall remain in the fund.12 (3) The state treasurer is directed to deposit into the fund at the beginning of13 each fiscal year an amount equal to the amount of the compensation provided14 pursuant to the casino support services contract most recently approved by the Joint15 Legislative Committee on the Budget from the net revenues from casino gaming16 operations as provided by R.S. 27:270(A)(3)(a). Monies in the fund shall be17 appropriated, administered, and used solely as provided in Subsection C of this18 Section.19 C. Monies in the fund shall be appropriated to the parish governing authority20 and used to compensate the parish on a quarterly basis for the cost to the parish of21 providing support services resulting from the operation of the official gaming22 establishment and the activities therein.23 * * *24 §270. Deposit of revenues; expenditures and investments authorized; transfer of25 revenues to state treasury; corporation operating account; audit of26 corporation books and records; audits27 A.28 * * *29 HLS 10RS-1057 REENGROSSED HB NO. 334 Page 3 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (3)(a) Daily, the corporation shall transfer to the state treasury for deposit1 into certain funds in the treasury, as provided in this Paragraph, the amount of net2 revenues which the corporation determines are surplus to its needs. After first being3 credited to the Bond Security and Redemption Fund in accordance with Article VII,4 Section 9(B) of the Constitution of Louisiana, and after satisfying any other5 requirements of the Constitution and laws of Louisiana, such net revenues shall be6 deposited as follows:7 (i) Ten percent shall be deposited in and credited to the Support Education8 in Louisiana First Fund as provided in R.S. 17:421.7 and shall be used solely and9 exclusively for the same purposes provided for in Paragraph (B)(1) of that Section.10 All such net revenues shall be deposited in and credited to the Support Education in11 Louisiana First Fund as provided in R.S. 17:421.7 until the fund balance is sufficient12 to fully fund appropriations from that fund for the current fiscal year.13 (ii) After satisfying the requirements of Item (i) of this Paragraph, all such14 net revenues shall be deposited in and credited to the Casino Support Services Fund15 as provided in R.S. 27:247, not to exceed the amount required to fully fund the16 casino support services contract most recently approved by the Joint Legislative17 Committee on the Budget.18 (iii) Ninety percent The remainder shall be deposited in and credited to the19 Support Education in Louisiana First Fund as provided in R.S. 17:421.7.20 * * *21 Section 2. This Act shall become effective upon signature by the governor or, if not22 signed by the governor, upon expiration of the time for bills to become law without signature23 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If24 vetoed by the governor and subsequently approved by the legislature, this Act shall become25 effective on the day following such approval.26 HLS 10RS-1057 REENGROSSED HB NO. 334 Page 4 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. DIGEST The digest printed below was prepared by House Legislative Services. It constitutes no part of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)] Leger HB No. 334 Abstract: Creates the Casino Support Services Fund and dedicates the amount required to fund the most recently approved casino support services contract. Additionally deletes present law nullifying the most recent casino support services contract if no action is taken by the Joint Legislative Committee on the Budget. Present law provides that the gaming control board and the parish governing authority shall enter into a casino support services contract to compensate the governing authority for support services resulting from operation of the land-based casino. Requires approval of the Joint Legislative Committee on the Budget (JLCB). If a new contract is not agreed to by March 31, the contract currently in effect shall remain in full force and effect. If the JLCB approves the contract, it shall remain in full force and effect. Proposed law retains present law. Present law provides that if the JLCB disapproves or does not act upon the amount of the contract, it shall be nullified. Proposed law provides that if JLCB does not approve the amount of the contract, the prior contract shall remain in full force and effect. Retains present law nullifying the contract if it is disapproved by the JLCB. Proposed law establishes the Casino Support Services Fund as a special treasury fund to provide compensation to the parish governing authority pursuant to a casino support services contract. The state treasurer is directed to deposit at the beginning of the fiscal year an amount equal to the amount of the most recently approved casino support services contract from net revenues from the land-based casino as provided in proposed law. Proposed law provides that monies in the fund shall be appropriated to the parish governing authority and used to compensate the parish on a quarterly basis for the cost to the parish of providing support services resulting from the operation of the official gaming establishment and the activities therein. Present law provides that, of net revenues received from the land-based casino, up to $500,000 shall be deposited into the Compulsive and Problem Gaming Fund. Provides that the remainder of net revenues to be deposited to the state treasury shall be deposited as follows: (1)10% shall be deposited in and credited to the Support Education in La. First (SELF) Fund, to be used to provide the increase in salary of certain public pre-K through 12th grade certificated personnel and other public pre-K through 12th grade classroom teachers as provided in present law. (2)90% to the SELF Fund. Proposed law deletes present law and instead provides that net revenues be deposited as follows: (1)All net revenues shall deposited into the SELF Fund until the fund balance is sufficient to fully fund appropriations from the SELF Fund in the current fiscal year. HLS 10RS-1057 REENGROSSED HB NO. 334 Page 5 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (2)After the requirements of (1) are satisfied, all net revenues shall be deposited into the Casino Support Services Fund, not to exceed the amount required to fully fund the casino support services contract most recently approved by the JLCB. (3)Any net revenues remaining after satisfying the requirements of (1) and (2) shall be deposited into the SELF Fund. Present law established the SELF Fund. Provides that certain riverboat gaming franchise fees and casino net revenues shall be used and expended solely as follows: (1)70% percent of the monies in the fund shall be used to provide an increase in the salary of certain pre-K through 12th grade certificated personnel and for other public pre-kindergarten through 12th grade classroom teachers in FY 2001-2002 and annually to support such increase. (2)30% of the monies in the fund shall be used to provide public postsecondary education faculty salary increases, including related benefits, to be distributed in accordance with a plan developed jointly by the Board of Regents and the Division of Administration in FY 2001-2002 and annually to support such increase. Proposed law retains present law. Effective upon signature of governor or lapse of time for gubernatorial action. (Amends R.S. 27:247 and 270(A)(3)(a)) Summary of Amendments Adopted by House Committee Amendments Proposed by House Committee on Appropriations to the original bill. 1. Added requirement that deposits into the Casino Support Services Fund come from net revenues received by the state from the land-based casino. 2. Changed provisions requiring deposits of net revenues from the land-based casino into the SELF Fund and permitting the deposit of certain net revenues into the Casino Support Services Fund instead of the SELF Fund. House Floor Amendments to the engrossed bill. 1. Changed effectiveness from July 1, 2010, to signature of the governor or lapse of time for gubernatorial action.