HLS 14RS-29 ORIGINAL Page 1 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Regular Session, 2014 HOUSE BILL NO. 493 BY REPRESENTATIVE HARRISON FUNDS/FUNDING: (Constitutional Amendment) Creates the Bet on Louisiana's Future Fund for the deposit of certain gaming proceeds A JOINT RESOLUTION1 Proposing to amend Article XII, Section 6(A)(1) and to add Article VII, Section 10.13 of the2 Constitution of Louisiana, relative to gaming funds; to establish the Bet on3 Louisiana's Future Fund; to redirect lottery proceeds to such fund; to provide sources4 of revenue and to provide for deposit and uses of monies in the fund; to provide an5 effective date; to provide for submission of the proposed amendment to the electors;6 and to provide for related matters.7 Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members8 elected to each house concurring, that there shall be submitted to the electors of the state of9 Louisiana, for their approval or rejection in the manner provided by law, a proposal to add10 Article VII, Section 10.13 of the Constitution of Louisiana, to read as follows:11 §10.13. Bet on Louisiana's Future Fund12 Section 10.13.(A) The Bet on Louisiana's Future Fund, hereinafter referred13 to as the "fund", is hereby established in the state treasury as a special fund to14 provide a dedicated, recurring source of revenue to improve Louisiana's future.15 (B)(1) The required monies to be deposited into the fund shall include fees,16 fines, net gaming revenues or proceeds, payments, taxes, and other monies generated17 from the following activities:18 (a) Any game of chance approved by the Louisiana Lottery Corporation.19 HLS 14RS-29 ORIGINAL HB NO. 493 Page 2 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (b) Casino gaming activities or operations offered or conducted at or in an1 official gaming establishment by virtue of a contract let or bid by the Louisiana2 Economic Development and Gaming Corporation.3 (c) Gaming activities or operations, including racehorse wagering, conducted4 upon a riverboat, except admission fees levied by a local governing authority.5 (d) Slot machine gaming activities or operations authorized by the Louisiana6 Gaming Control Board at facilities licensed to conduct live horse racing, except local7 taxes imposed thereon.8 (e) Any card game utilizing a video draw poker device that plays or9 simulates the play of the game of draw poker or other card games, except funds10 directed to the office of the district attorney or to governing authorities of11 municipalities or parishes in which video draw poker devices are operated.12 (2) Other monies which may be deposited into this fund may include grants,13 gifts, and donations received by the state for the purposes of this Section, any other14 revenues as may be provided by law, or monies which may be appropriated by the15 legislature.16 (C) After compliance with the requirements of Article VII, Section 9(B) of17 this constitution relative to the Bond Security and Redemption Fund, and prior to18 monies being placed in the state general fund, an amount equal to deposits into the19 state treasury from the foregoing sources shall be deposited in and credited to the20 fund.21 (D) Beginning Fiscal Year 2015-2016 and each fiscal year thereafter, monies22 in the fund shall be subject to deposit or appropriation in accordance with this23 Paragraph but not in the same calendar year in which they are received.24 (1) Seventy-five percent of monies in the fund shall be used exclusively for25 education and shall not displace, replace, or supplant appropriations from the general26 fund for elementary and secondary education, including implementation of the27 Minimum Foundation Program, nor displace, replace, or supplant funding for higher28 HLS 14RS-29 ORIGINAL HB NO. 493 Page 3 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. education or community and technical colleges. Monies deposited pursuant to the1 provisions of this Subparagraph shall be allocated as follows:2 (a) Seventy percent to be appropriated to the following for the exclusive3 support of public elementary and secondary education:4 (i) The Minimum Foundation Program.5 (ii) Support Education in Louisiana First (SELF) Fund.6 (b) Fifteen percent shall be appropriated to the following for the exclusive7 support of public postsecondary education under the supervision and management8 of the Board of Supervisors for the University of Louisiana System, the Board of9 Supervisors of Louisiana State University and Agricultural and Mechanical College,10 or the Board of Supervisors of Southern University and Agricultural and Mechanical11 College:12 (i) The Taylor Opportunity Program for Students (TOPS).13 (ii) Support Education in Louisiana First (SELF) Fund.14 (iii) Institutions and programs.15 (c) Fifteen percent shall be appropriated to the following for the exclusive16 support of public postsecondary education under the supervision and management17 of the Board of Supervisors of Community and Technical Colleges.18 (i) The Taylor Opportunity Program for Students (TOPS).19 (ii) Support Education in Louisiana First (SELF) Fund.20 (iii) Institutions and programs.21 (2) Twenty-five percent of monies in the fund shall be allocated as follows:22 (a) Eighty percent shall be appropriated to provide for payments against the23 unfunded accrued liability of the public retirement systems which shall be in addition24 to any payments required for the annual amortization of the unfunded accrued25 liability of the public retirement systems, as required by Article X, Section26 29(E)(2)(c) of this constitution; however, any such payments to the public retirement27 systems shall not be used, directly or indirectly, to fund cost-of-living increases for28 such systems.29 HLS 14RS-29 ORIGINAL HB NO. 493 Page 4 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (b) Of the remaining twenty percent of monies appropriated pursuant to the1 provisions of this Subparagraph, the first one million dollars shall be credited to the2 Compulsive and Problem Gaming Fund. Any remaining funds may be appropriated3 for regulatory, administrative, investigative, enforcement, legal, and other expenses4 to carry out the duties, relating to gaming operations, of each of the following:5 (i) Louisiana Gaming Control Board.6 (ii) Louisiana State Racing Commission.7 (iii) Office of state police, Department of Public Safety and Corrections.8 (iv) Department of Justice.9 (E) All unexpended and unencumbered monies remaining in the fund at the10 end of the fiscal year shall remain in the fund. The monies in the fund shall be11 invested by the state treasurer in the same manner as monies in the state general12 fund.13 Section 2. Be it resolved by the Legislature of Louisiana, two-thirds of the members14 elected to each house concurring, that there shall be submitted to the electors of the state of15 Louisiana, for their approval or rejection in the manner provided by law, a proposal to16 amend Article XII, Section 6(A)(1) of the Constitution of Louisiana, to read as follows:17 §6. Lotteries; Gaming, Gambling, or Wagering18 Section 6.(A) Lotteries. (1) The legislature may provide for the creation and19 operation of a state lottery and may create a special corporation for that purpose20 whose employees shall not be subject to state civil service. The net proceeds from21 the operation of the lottery shall be deposited in a special fund created in the state22 treasury entitled the Lottery Proceeds Bet on Louisiana's Future Fund. Amounts23 deposited in the fund shall not be appropriated for expenditure in the same calendar24 year in which they are received. The legislature shall annually appropriate from the25 fund only for the purposes of the minimum foundation program and no more than26 five hundred thousand dollars for services related to compulsive and problem gaming27 as may be provided by law.28 * * *29 HLS 14RS-29 ORIGINAL HB NO. 493 Page 5 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Section 3. Be it further resolved that this proposed amendment shall be submitted1 to the electors of the state of Louisiana at the statewide election to be held on November 4,2 2014.3 Section 4. Be it further resolved that on the official ballot to be used at the election,4 there shall be printed a proposition, upon which the electors of the state shall be permitted5 to vote YES or NO, to amend the Constitution of Louisiana, which proposition shall read as6 follows:7 Do you support an amendment to require gaming proceeds, including lottery8 revenue exclusive of local admission fees, local gaming taxes, and funds9 directed to district attorneys and local governing authorities to be deposited10 into the Bet on Louisiana's Future Fund and allocated for support of public11 elementary and secondary education, higher education, community and12 technical colleges, reduction of the debt on public retirement systems, and13 gaming enforcement and regulation? (Amends Article XII, Section 6(A)(1);14 Adds Article VII, Section 10.13)15 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)] Harrison HB No. 493 Abstract: Requires gaming proceeds be deposited into a new constitutional fund, the Bet on Louisiana's Future Fund, and provides for the allocation of monies from this fund to the MPF, the SELF fund, TOPS, Louisiana Community and Technical College System, the UAL, and gaming enforcement and regulation. Present constitution requires net lottery proceeds be deposited into the Lottery Proceeds Fund for subsequent appropriation to the Minimum Foundation Program (MFP), except for $500,000 dedicated to services related to compulsive and problem gaming. Proposed constitutional amendment directs fees, fines, net gaming revenues, and taxes from the state lottery, casino, riverboat gaming (except boarding fees), slot machine gaming (except local taxes), and video draw poker (except funds directed to the district attorney's office or to the local governing authority in which video draw poker devices are operated) to the Bet on Louisiana's Future Fund. Proposed constitutional amendment, beginning FY 2015-2016, requires allocation of these gaming funds as follows: 52.5% to public elementary and secondary education, 11.5% to higher education, and 11.5% to community and technical colleges including the MFP, TOPS, HLS 14RS-29 ORIGINAL HB NO. 493 Page 6 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. and the SELF fund. Additional allocations include 15% to the UAL and 5% for gaming enforcement and regulation. Provides for submission of the proposed amendment to the voters at the statewide election to be held Nov. 4, 2014. (Amends Art. XII, §6(A)(1); Adds Art. VII, §10.13)