HLS 14RS-282 ORIGINAL
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Regular Session, 2014
HOUSE BILL NO. 389
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 funding for such contract; to establish the Casino Support3
Services Fund as a special treasury fund; to provide for deposits into the fund; to4
provide for uses of monies in the fund; to provide for an effective date; and to5
provide for related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 27:247 and 270(A)(3)(a) are hereby amended and reenacted to read8
as follows:9
§247. Casino support services contract; Casino Support Services Fund10
A. Subject to and in accordance with the provisions of this Chapter, the11
gaming control board shall enter into a casino support services contract with the12
governing authority of the parish where the official gaming establishment is located13
in order to compensate the parish for the cost to the parish for providing support14
services resulting from the operation of the official gaming establishment and the15
activities therein. Support services as used in this Section shall include but not be16
limited to fire, police, sanitation, health, transportation, and traffic services. The17
amount of the contract shall be determined by negotiation and agreement between18
the gaming control board and the parish, subject to approval by the Joint Legislative19 HLS 14RS-282 ORIGINAL
HB NO. 389
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Committee on the Budget. In the event that a new contract is not agreed upon by the1
gaming control board and the parish by March thirty-first of any year, the contract2
currently in effect shall be submitted to the Joint Legislative Committee on the3
Budget for approval of the amount of the contract at the next meeting of the4
committee. If the committee approves the amount of the contract the chairman shall5
notify the treasurer of the amount of the contract and, the contract shall remain in full6
force and effect. If the committee disapproves or does not act upon the amount of7
the contract, the contract shall be null, void, and of no effect and the treasurer shall8
be prohibited from depositing monies into the Casino Support Services Fund.9
B.(1) There is hereby created in the state treasury, as a special fund, the10
Casino Support Services Fund, hereinafter referred to as the "fund", to provide11
compensation to the parish governing authority pursuant to a casino support services12
contract executed pursuant to Subsection A of this Section.13
(2) Monies in the fund shall be invested in the same manner as monies in the14
general fund. Interest earned on investment of monies in the fund shall be credited15
to the fund. Unexpended and unencumbered monies in the fund at the end of the16
fiscal year shall remain in the fund.17
C. Monies in the fund shall be appropriated to the parish governing authority18
and used to compensate the parish for its costs for providing support services19
resulting from the operation of the official gaming establishment and the activities20
therein.21
* * *22
§270. Deposit of revenues; expenditures and investments authorized; transfer of23
revenues to state treasury; corporation operating account; audit of24
corporation books and records; audits25
A.26
* * *27
(3)(a) Daily, the corporation shall transfer to the state treasury for deposit28
into certain funds in the treasury, as provided in this Paragraph, the amount of net29 HLS 14RS-282 ORIGINAL
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revenues which the corporation determines are surplus to its needs. After first being1
credited to the Bond Security and Redemption Fund in accordance with Article VII,2
Section 9(B) of the Constitution of Louisiana, and after satisfying any other3
requirements of the Constitution and laws of Louisiana, such net revenues shall be4
deposited as follows:5
(i) In each year for which the Joint Legislative Committee on the Budget6
disapproves or does not act upon the amount of the casino support services contract7
as provided in R.S. 27:247 and no monies are deposited in and credited to the Casino8
Support Services Fund:9
(aa) Ten percent shall be deposited in and credited to the Support Education10
in Louisiana First Fund as provided in R.S. 17:421.7 and shall be used solely and11
exclusively for the same purposes provided for in Paragraph (B)(1) of that Section.12
(ii) (bb) Ninety percent shall be deposited in and credited to the Support13
Education in Louisiana First Fund as provided in R.S. 17:421.7.14
(ii) In each year for which the Joint Legislative Committee on the Budget15
approves the amount of the casino support services contract as provided in R.S.16
27:247:17
(aa) The first one million eight hundred thousand dollars shall be deposited18
in and credited to the Casino Support Services Fund.19
(bb) The next sixty million dollars shall be deposited in and credited to the20
Support Education in Louisiana First Fund as provided in R.S. 17:421.7.21
(cc) After satisfying the requirements of Subitems (aa) and (bb) of this Item,22
monies shall be deposited into the Casino Support Services Fund until the casino23
support services contract is fully funded for that year.24
(dd) After satisfying the requirements of Subitem (cc) of this Item, the25
remainder of the monies shall be deposited in and credited to the Support Education26
in Louisiana First Fund as provided for in R.S. 17:421.7.27
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HB NO. 389
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Section 2. This Act shall become effective upon signature by the governor or, if not1
signed by the governor, upon expiration of the time for bills to become law without signature2
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If3
vetoed by the governor and subsequently approved by the legislature, this Act shall become4
effective on the day following such approval.5
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. 389
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 the cost of 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 the
cost of 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 current contract 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 but adds the requirement that the chairman of JLCB notify
the treasurer of the amount of the new contract.
Present law provides that if JLCB disapproves or does not act upon the amount of the
contract, it shall be nullified.
Proposed law retains present law and adds a 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 Casino Support Services Fund shall be
appropriated to the parish governing authority and used to compensate the parish for its costs
for providing support services resulting from the operation of the official gaming
establishment.
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. Further
provides that the remainder of net revenues 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 salary increases 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. HLS 14RS-282 ORIGINAL
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Proposed law retains present law for those years that a casino support services contract is not
approved. For years for which a contract is approved, provides that the revenues shall be
deposited as follows:
(1)The first $1,800,000 shall be deposited into the Casino Support Services Fund.
(2)The next $60 million shall be deposited and credited to the SELF Fund.
(3)Any revenues in excess of the above amounts shall be deposited into the Casino
Support Services Fund until the casino support services contract is fully funded.
(4)The remainder shall be deposited into and credited to the SELF Fund.
Present law establishes the SELF Fund. Requires that certain riverboat gaming franchise
fees and casino net revenues be used as follows:
(1)70% shall be used to provide salary increases for certain pre-K through 12th grade
certificated personnel and for other public pre-K through 12th grade classroom
teachers in FY 2001-2002 and annually to support such increase.
(2)30% 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))