HLS 16RS-428 ORIGINAL 2016 Regular Session HOUSE BILL NO. 276 BY REPRESENTATIVE RICHARD FUNDS/FUNDING: (Constitutional Amendment) Creates the Bet on Louisiana's Future Fund for the deposit of certain gaming proceeds 1 A JOINT RESOLUTION 2Proposing to amend Article XII, Section 6(A)(1) and to add Article VII, Section 10.15 of the 3 Constitution of Louisiana, relative to gaming funds; to establish the Bet on 4 Louisiana's Future Fund; to redirect lottery proceeds to such fund; to provide sources 5 of revenue and to provide for deposit and uses of monies in the fund; to provide an 6 effective date; to provide for submission of the proposed amendment to the electors; 7 and to provide for related matters. 8 Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members 9elected to each house concurring, that there shall be submitted to the electors of the state of 10Louisiana, for their approval or rejection in the manner provided by law, a proposal to add 11Article VII, Section 10.15 of the Constitution of Louisiana, to read as follows: 12 §10.15. Bet on Louisiana's Future Fund 13 Section 10.15.(A) The Bet on Louisiana's Future Fund, hereinafter referred 14 to as the "fund", is hereby established in the state treasury as a special fund to 15 provide a dedicated, recurring source of revenue to improve Louisiana's future. 16 (B)(1) The required monies to be deposited into the fund shall include fees, 17 fines, net gaming revenues or proceeds, payments, taxes, and other monies generated 18 from the following activities: 19 (a) Any game of chance approved by the Louisiana Lottery Corporation. 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HLS 16RS-428 ORIGINAL HB NO. 276 1 (b) Casino gaming activities or operations offered or conducted at or in an 2 official gaming establishment by virtue of a contract let or bid by the Louisiana 3 Economic Development and Gaming Corporation. 4 (c) Gaming activities or operations, including racehorse wagering, conducted 5 upon a riverboat, except admission fees levied by a local governing authority. 6 (d) Slot machine gaming activities or operations authorized by the Louisiana 7 Gaming Control Board at facilities licensed to conduct live horse racing, except local 8 taxes imposed thereon. 9 (e) Any card game utilizing a video draw poker device that plays or 10 simulates the play of the game of draw poker or other card games, except funds 11 directed to the office of the district attorney or to governing authorities of 12 municipalities or parishes in which video draw poker devices are operated. 13 (f) Offtrack wagering conducted at offtrack wagering facilities licensed by 14 the Louisiana State Racing Commission. 15 (2) Other monies which may be deposited into this fund may include grants, 16 gifts, and donations received by the state for the purposes of this Section, any other 17 revenues as may be provided by law, or monies which may be appropriated by the 18 legislature. 19 (C) After compliance with the requirements of Article VII, Section 9(B) of 20 this constitution relative to the Bond Security and Redemption Fund, and prior to 21 monies being placed in the state general fund, an amount equal to deposits into the 22 state treasury from the foregoing sources shall be deposited in and credited to the 23 fund. 24 (D) Beginning Fiscal Year 2017-2018 and each fiscal year thereafter, monies 25 in the fund shall be subject to deposit or appropriation in accordance with this 26 Paragraph but not in the same calendar year in which they are received. 27 (1) Seventy-five percent of monies in the fund shall be used exclusively for 28 education and shall not displace, replace, or supplant appropriations from the general 29 fund for elementary and secondary education, including implementation of the Page 2 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 16RS-428 ORIGINAL HB NO. 276 1 Minimum Foundation Program, nor displace, replace, or supplant funding for higher 2 education or community and technical colleges. Monies deposited pursuant to the 3 provisions of this Subparagraph shall be allocated as follows: 4 (a) Seventy percent to be appropriated to the following for the exclusive 5 support of public elementary and secondary education: 6 (i) The Minimum Foundation Program. 7 (ii) Support Education in Louisiana First (SELF) Fund. 8 (b) Fifteen percent shall be appropriated to the following for the exclusive 9 support of public postsecondary education under the supervision and management 10 of the Board of Supervisors for the University of Louisiana System, the Board of 11 Supervisors of Louisiana State University and Agricultural and Mechanical College, 12 or the Board of Supervisors of Southern University and Agricultural and Mechanical 13 College: 14 (i) The Taylor Opportunity Program for Students (TOPS). 15 (ii) Support Education in Louisiana First (SELF) Fund. 16 (iii) Institutions and programs. 17 (c) Fifteen percent shall be appropriated to the following for the exclusive 18 support of public postsecondary education under the supervision and management 19 of the Board of Supervisors of Community and Technical Colleges. 20 (i) The Taylor Opportunity Program for Students (TOPS). 21 (ii) Support Education in Louisiana First (SELF) Fund. 22 (iii) Institutions and programs. 23 (2) Twenty-five percent of monies in the fund shall be allocated as follows: 24 (a) Eighty percent shall be appropriated to provide for payments against the 25 unfunded accrued liability of the public retirement systems which shall be in addition 26 to any payments required for the annual amortization of the unfunded accrued 27 liability of the public retirement systems, as required by Article X, Section 28 29(E)(2)(c) of this constitution; however, any such payments to the public retirement Page 3 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 16RS-428 ORIGINAL HB NO. 276 1 systems shall not be used, directly or indirectly, to fund cost-of-living increases for 2 such systems. 3 (b) Of the remaining twenty percent of monies appropriated pursuant to the 4 provisions of this Subparagraph, the first one million dollars shall be credited to the 5 Compulsive and Problem Gaming Fund. Any remaining funds may be appropriated 6 for regulatory, administrative, investigative, enforcement, legal, and other expenses 7 to carry out the duties, relating to gaming operations, of each of the following: 8 (i) Louisiana Gaming Control Board. 9 (ii) Louisiana State Racing Commission. 10 (iii) Office of state police, Department of Public Safety and Corrections. 11 (iv) Department of Justice. 12 (E) All unexpended and unencumbered monies remaining in the fund at the 13 end of the fiscal year shall remain in the fund. The monies in the fund shall be 14 invested by the state treasurer in the same manner as monies in the state general 15 fund. 16 Section 2. Be it resolved by the Legislature of Louisiana, two-thirds of the members 17elected to each house concurring, that there shall be submitted to the electors of the state of 18Louisiana, for their approval or rejection in the manner provided by law, a proposal to 19amend Article XII, Section 6(A)(1) of the Constitution of Louisiana, to read as follows: 20 §6. Lotteries; Gaming, Gambling, or Wagering 21 Section 6.(A) Lotteries. (1) The legislature may provide for the creation and 22 operation of a state lottery and may create a special corporation for that purpose 23 whose employees shall not be subject to state civil service. The net proceeds from 24 the operation of the lottery shall be deposited in a special fund created in the state 25 treasury entitled the Lottery Proceeds Bet on Louisiana's Future Fund. Amounts 26 deposited in the fund shall not be appropriated for expenditure in the same calendar 27 year in which they are received. The legislature shall annually appropriate from the 28 fund only for the purposes of the minimum foundation program and no more than Page 4 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 16RS-428 ORIGINAL HB NO. 276 1 five hundred thousand dollars for services related to compulsive and problem gaming 2 as may be provided by law. 3 * * * 4 Section 3. Be it further resolved that this proposed amendment shall be submitted 5to the electors of the state of Louisiana at the statewide election to be held on November 8, 62016. 7 Section 4. Be it further resolved that on the official ballot to be used at the election, 8there shall be printed a proposition, upon which the electors of the state shall be permitted 9to vote YES or NO, to amend the Constitution of Louisiana, which proposition shall read as 10follows: 11 Do you support an amendment to require gaming proceeds, including lottery 12 revenue exclusive of local admission fees, local gaming taxes, and funds 13 directed to district attorneys and local governing authorities to be deposited 14 into the Bet on Louisiana's Future Fund and allocated for support of public 15 elementary and secondary education, higher education, community and 16 technical colleges, reduction of the debt on public retirement systems, and 17 gaming enforcement and regulation? (Amends Article XII, Section 6(A)(1); 18 Adds Article VII, Section 10.15) 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)] HB 276 Original 2016 Regular Session Richard 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 MFP, 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), video draw poker (except funds directed to the district attorney's office Page 5 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 16RS-428 ORIGINAL HB NO. 276 or to the local governing authority in which video draw poker devices are operated), and offtrack wagering to the Bet on Louisiana's Future Fund. Proposed constitutional amendment, beginning FY 2017-2018, 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, 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 November 8, 2016. (Amends Const. Art. XII, §6(A)(1); Adds Const. Art. VII, §10.15) Page 6 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions.