HLS 11RS-181 ORIGINAL Page 1 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Regular Session, 2011 HOUSE BILL NO. 516 BY REPRESENTATIVE LEGER Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana. 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 HLS 11RS-181 ORIGINAL HB NO. 516 Page 2 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. any year, the contract currently in effect shall be submitted to the Joint Legislative1 Committee on the Budget for approval of the amount of the contract at the next2 meeting of the committee. If the committee approves the amount of the contract, the3 contract shall remain in full force and effect. If the committee disapproves or does4 not act upon the amount of the contract, the contract shall be null, void, and of no5 effect. If the committee disapproves or does not act upon the amount of the contract6 and the contract is null, void, and of no effect, the treasurer shall not deposit any7 monies into the fund.8 B.(1) There is hereby created in the state treasury, as a special fund, the9 Casino Support Services Fund, hereinafter referred to as the "fund", to provide10 compensation to the parish governing authority pursuant to a casino support services11 contract executed pursuant to Subsection A of this Section.12 (2) Monies in the fund shall be invested in the same manner as monies in the13 general fund. Interest earned on investment of monies in the fund shall be credited14 to the fund. Unexpended and unencumbered monies in the fund at the end of the15 fiscal year shall remain in the fund.16 C. Monies in the fund shall be appropriated to the parish governing authority17 and used to compensate the parish on a quarterly basis for the cost to the parish of18 providing support services resulting from the operation of the official gaming19 establishment and the activities therein.20 * * *21 §270. Deposit of revenues; expenditures and investments authorized; transfer of22 revenues to state treasury; corporation operating account; audit of23 corporation books and records; audits24 A.(1) 25 * * *26 (3)(a) Daily, the corporation shall transfer to the state treasury for deposit27 into certain funds in the treasury, as provided in this Paragraph, the amount of net28 revenues which the corporation determines are surplus to its needs. After first being29 HLS 11RS-181 ORIGINAL HB NO. 516 Page 3 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. credited to the Bond Security and Redemption Fund in accordance with Article VII,1 Section 9(B) of the Constitution of Louisiana, and after satisfying any other2 requirements of the Constitution and laws of Louisiana, such net revenues shall be3 deposited as follows:4 (i) Ten percent shall be deposited in and credited to the Support Education5 in Louisiana First Fund as provided in R.S. 17:421.7 and shall be used solely and6 exclusively for the same purposes provided for in Paragraph (B)(1) of that Section.7 (ii) Except in a year when the Joint Legislative Committee on the Budget8 disapproves or does not act upon the amount of the casino support services contract9 as provided in R.S. 27:747 and no revenues are required to be deposited in and10 credited to the Casino Support Services Fund, and after satisfying the requirements11 of Item (i) of this Paragraph, all such net revenues shall be deposited in and credited12 to the Casino Support Services Fund as provided in R.S. 27:247, not to exceed the13 amount required to fully fund the casino support services contract most recently14 approved by the Joint Legislative Committee on the Budget.15 (iii) Ninety percent The remainder shall be deposited in and credited to the16 Support Education in Louisiana First Fund as provided in R.S. 17:421.7.17 * * *18 Section 2. This Act shall become effective upon signature by the governor or, if not19 signed by the governor, upon expiration of the time for bills to become law without signature20 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If21 vetoed by the governor and subsequently approved by the legislature, this Act shall become22 effective on the day following such approval.23 HLS 11RS-181 ORIGINAL HB NO. 516 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. 516 Abstract: Requires a portion of the monies collected from the operation of a land-based casino to be deposited into a special fund to be used to compensate the parish governing authority for support services as provided in the most recently approved casino support services contract. 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 retains present law and adds provision that if JLCB disapproves or does not act upon the amount of the contract, the treasurer shall not deposit any monies into the Casino Support Services Fund which proposed law establishes as a special treasury fund to provide compensation to the parish governing authority pursuant to a casino support services contract. 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 retains present law requiring the deposit of 10% into the SELF Fund. Proposed law provides that except in a year when the JLCB disapproves or does not act upon the contract amount and after the requirements of the 10% 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. Further provides that any net revenues remaining after satisfying the above requirements shall be deposited into the SELF Fund. HLS 11RS-181 ORIGINAL HB NO. 516 Page 5 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. 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))