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 411 Original 2016 Regular Session Richard
Abstract: Redirects riverboat, casino, slots at tracks, video draw poker, lottery gaming, and offtrack
wagering proceeds to the Bet on Louisiana's Future Fund.
RIVERBOAT GAMING
Present law permits riverboat gaming and imposes an annual license fee of $100,000 per riverboat
and 3.5% of net gaming proceeds (R.S. 27:91(B)). A basic franchise fee is charged for the right to
conduct gaming activities on a riverboat at an annual amount of 15% of net gaming proceeds (R.S.
27:91(C)(1)). There are add-on franchise fees, depending on locale, that run from an additional 3%
(R.S. 27:91(C)(2)) to an additional 6% (R.S. 27:91(C)(2) and (3)), a dock-side fee of 2% to 3%
based on a sliding scale (R.S. 27:91(C)(4)), and an admission (boarding) fee of $2.50 to $3.00 for
each passenger charged by the local governing authority of the respective area (R.S. 27:93(A)).
Present law allocates these license and franchise fees, other than admission fees, in varying amounts
to the following entities, in the respective funds listed:
ENTITY SOURCE FUND
Office of Behavioral Health
R.S. 27:92(B)(2)(a)(i)Compulsive and Problem
Gaming Fund, R.S. 28:842
State Operating Expenses R.S. 27:92(B)(2)(b)(i)State General Fund
MFP;
LSU System;
Southern Univ. System;
UL System;
LCTCS (technical colleges);
LUMCON
R.S. 27:92(B)(2)(b)(ii),
(iii), and (iv)
Support Education in LA First
(SELF) Fund,
R.S. 17:421.7
Office of Attorney General;
Gaming Control Board;
DPS&C/State Police
R.S. 27:92(C) Riverboat Gaming
Enforcement Fund,
R.S. 27:92(B)(2)(c)
Proposed law redirects riverboat gaming revenues listed above, except the local admission fees, to
the Bet on Louisiana's Future Fund. LAND-BASED CASINO
Present law permits the operation of a land-based casino in New Orleans and, except for a percentage
for Compulsive and Problem Gaming, all net revenues which are surplus to the needs of the
Louisiana Economic Development and Gaming Corporation are transferred to the state treasury (R.S.
27:270(A)(3)). Present law allocates revenues in varying amounts to the following entities, in the
respective funds listed:
ENTITY SOURCE FUND
Office of Behavioral Health
R.S. 27:270(A)(2) Compulsive and Problem
Gaming Fund, R.S. 28:842
MFP;
LSU System;
Southern Univ. System;
UL System;
LCTCS (technical colleges);
LUMCON
R.S. 27:270(A)(3)(a)Support Education in LA First
(SELF) Fund,
R.S. 17:421.7
Office of Attorney General;
Gaming Control Board;
DPS&C/State Police
R.S. 27:270(B)(2) Casino Gaming Enforcement
Fund,
R.S. 27:270(B)
Proposed law redirects land-based casino gaming revenues listed above to the Bet on Louisiana's
Future Fund.
SLOTS AT TRACKS
Present law authorizes certain race tracks to conduct slot machine gaming (R.S. 27:361(A)) and
imposes a state license tax of 18.5% (R.S. 27:393) and a local tax of 4% (R.S. 2:391) of net slot
machine proceeds. Present law also requires 15% of net slot machine proceeds to be paid to
supplement purses (R.S. 27:361(B)(4)(a)) and 3% to horse associations (R.S. 27:361(B)(4)(b) and
(c)). Present law allocates net slot machine proceeds, other than the 4% local tax, in varying
amounts to the following entities, in the respective funds listed:
ENTITY SOURCE FUND
Thoroughbred and quarter horse
purse supplement;
Horsemen's Benevolent &
Protective Assoc.
R.S. 27:361(B)(4)(a) Direct payment LA Thoroughbred Breeders'
Assoc. breeders' award;
LA Quarter Horse Breeders
Assoc. breeders' award
R.S. 27:361(B)(4)(b) and
(c)
Direct payment
Office of Behavioral Health R.S. 27:392(B)(2)(a) Compulsive and Problem
Gaming Fund, R.S. 28:842
Office of Attorney General;
Gaming Control Board;
Louisiana Racing Comm.;
DPS&C/State Police
R.S. 27:392(B)(2)(b) Pari-mutuel Live Racing
Facility Gaming Control
Fund, R.S. 28:392(2)(a)
26
th
JDC truancy program R.S. 27:392(B)(3)(a) Bossier Parish Truancy
Program Fund,
R.S. 27:392(B)(3)(a)(i)
St. Landry School Board R.S. 27:392(B)(3)(b) St. Landry Parish Excellence
Fund,
R.S. 27:392(B)(3)(b)
Calcasieu Parish School Bd;
McNeese State Univ.;
Sowella Technical Inst.
R.S. 27:392(B)(3)(c) Calcasieu Parish Fund,
R.S. 27:392(B)(3)(c)
LCTCS, Allied Health &
Nursing Program
R.S. 27:392(B)(3)(d) Orleans Parish Excellence
Fund, R.S. 27:392(B)(3)(d)
Agriculture and Forestry R.S. 27:392(B)(4) Agricultural Finance Auth.
Fund, R.S. 3:277
Affiliated Blind of Louisiana;
LA Center for the Blind at
Ruston;
La. Assoc. for the Blind;
Lighthouse for the Blind in New
Orleans
R.S. 27:392(B)(5) Rehabilitation for the Blind
and Visually Impaired Fund,
R.S. 27:392(B)(5)
Equine Health Studies; Program
at LSU Vet School
R.S. 27:392(B)(6)(a) Equine Health Studies
Program Fund,
R.S. 27:392(B)(6)(a)
Southern University AgCenterR.S. 27:392(B)(6)(b) Southern University AgCenter
Program Fund,
R.S. 27:392(B)(6)(b) New Orleans City Park
Improvement Assoc.
R.S. 27:392(B)(7) and
R.S. 27:392(C)(1)
Beautification and
Improvement of the New
Orleans City Park Fund,
R.S. 27:392(B)(7)
Southern Univ. Urban Tourism
and Marketing Program
R.S. 27:392(B)(8)
Orleans Parish DA's Office R.S. 27:392(B)(8)
Greater New Orleans Sports
Foundation
R.S. 27:392(C)(2) Greater New Orleans Sports
Foundation Fund,
R.S. 27:392(C)(2)
Algiers Economic Development
Foundation
R.S. 27:392(C)(3) Algiers Economic
Development Fund,
R.S. 27:392(C)(3)
New Orleans Urban Tourism &
Hospitality Training in Econ.
Dev., Inc.
R.S. 27:392(C)(4) New Orleans Urban Tourism
& Hospitality Training in
Econ. Dev. Foundation Fund,
R.S. 27:392(C)(4)
Beautification Project for New
Orleans Neighborhoods, Inc.
R.S. 27:392(C)(5) Beautification Project for New
Orleans Neighborhoods Fund,
R.S. 27:392(C)(5)
Friends of NORD, Inc. R.S. 27:392(C)(6) Friends of NORD Fund,
R.S. 27:392(C)(6)
LA Stadium & Expo Dist. for
contractual obligations of NFL
or NBA franchise
R.S. 27:392(C)(7) New Orleans Sports Franchise
Assistance Fund,
R.S. 27:392(C)(7)
State operating expenses R.S. 27:392(B)(9) State General Fund
Proposed law redirects slots-at-the-track gaming revenues listed above, except the 4% local tax
portion, to the Bet on Louisiana's Future Fund.
Present law also establishes a Pari-Mutuel Live Racing Facility Economic Redevelopment and
Gaming Control Assistance District in the parishes of St. Landry, Bossier, and Calcasieu as a special
taxing district with boundaries coterminous with the parish lines, which districts are authorized to
levy an additional tax of 18.5% on net slot machine proceeds. Proposed law repeals these special
taxing districts. In St. Landry and Bossier, present law establishes a preference and priority to
Louisiana residents, laborers, vendors, and suppliers. Proposed law retains this preference.
VIDEO DRAW POKER Present law authorizes the placement, operation, maintenance, and play of approved video draw
poker devices and imposes an annual fee to be paid by the holder of each license (R.S. 27:435(A)),
a device owner fee (R.S. 27:435(B)), a franchise payment in an amount equal to a percentage of the
net device revenue derived from the operation of each device, the percentage of which is based on
the type of licensed establishment (R.S. 27:435(D)), and a processing fee (R.S. 27:435(H)). Present
law allocates these fees and payments in varying amounts to the following entities, in the respective
funds listed:
ENTITY SOURCE FUND
Purse supplements;
Horsemen's benefits
R.S. 27:438 Direct payment
Purse supplements for
thoroughbred and quarter horse
races;
Thoroughbred Breeders
Association;
Quarterhorse Racing
Association
R.S. 27:435(D)(4); R.S.
27:439
Video Draw Poker Device
Purse Supplement Fund, R.S.
27:439
Office of Behavioral Health
R.S. 27:437(B)(2)(a) Compulsive and Problem
Gaming Fund, R.S. 28:842
District Attorneys and Assistant
District Attorneys
R.S. 27:437(C)(1)(a)Video Draw Poker Device
Fund, R.S. 27:437
Local Governing AuthoritiesR.S. 27:437(C)(1)(b)Video Draw Poker Device
Fund, R.S. 27:437
Office of Attorney General;
DPS&C/State Police
R.S. 27:437(C)(2) Video Draw Poker Device
Fund, R.S. 27:437
State Operating Expenses R.S. 27:437(C)(3) State General Fund
Proposed law redirects video draw poker revenues listed above, except revenues going to the District
Attorneys and Assistant District Attorneys and to local governing authorities, to the Bet on
Louisiana's Future Fund.
LOTTERY
Present law permits the operations of a state lottery with all net revenues, surplus to the needs of the
Lottery Corporation, credited to the Louisiana Lottery Proceeds Fund (R.S. 47:9029(B)). Present
law allocates revenues in varying amounts to the following entities, in the respective funds listed: ENTITY SOURCE FUND
Office of Behavioral Health
R.S. 47:9029(B)(2) Compulsive and Problem
Gaming Fund, R.S. 28:842
MFP Const. Art. 12, Sec. 6Lottery Proceeds Fund, Const.
Art. 12, Sec. 6; R.S.
47:9029(A) and (B)
Proposed law redirects lottery revenues listed above to the Bet on Louisiana's Future Fund.
OFFTRACK WAGERING
Present law authorizes the Louisiana State Racing Commission to collect a license fee not to exceed
1 ½ percent of the total amount wagered at each offtrack wagering facility. Present law allocates
revenues in varying amounts to the following entities:
ENTITY SOURCE FUND
LA Thoroughbred Breeders'
Assoc. breeders' award;
LA Quarter Horse Breeders
Assoc. breeders' award
R.S. 4:218(A)(1) Direct payment
Board of Regents R.S. 4:218(A)(2)
State Racing Commission R.S. 4:218(A)(3)
Proposed law redirects offtrack wagering revenues listed above to the Bet on Louisiana's Future
Fund.
FUNDS
Proposed law retains the Support Education in Louisiana First (the SELF) Fund but eliminates
references to various sources of gaming revenue. Proposed law provides for deposits into the SELF
fund from the Bet on Louisiana's Future Fund.
Proposed law retains the Compulsive and Problem Gaming Fund but eliminates references to various
sources of gaming revenue. Proposed law provides for deposits into the Compulsive and Problem
Gaming Fund from the Bet on Louisiana's Future Fund.
Proposed law repeals the following funds: Riverboat Gaming Enforcement Fund, R.S.
27:92(B)(2)(c); Casino Gaming Enforcement Fund, R.S. 27:270(B); Bossier Parish Truancy
Program Fund, R.S. 27:392(B)(3)(a)(i); St. Landry Parish Excellence Fund, R.S. 27:392(B)(3)(b);
Calcasieu Parish Fund, R.S. 27:392(B)(3)(c); Orleans Parish Excellence Fund, R.S. 27:392(B)(3)(d);
Rehabilitation for the Blind and Visually Impaired Fund, R.S. 27:392(B)(5); Equine Health Studies Program Fund, R.S. 27:392(B)(6)(a); Pari-mutuel Live Racing Facility Gaming Control Fund, R.S.
28:392(2)(a); Compulsive and Problem Gaming Fund, R.S. 28:842; Southern University AgCenter
Program Fund, R.S. 27:392(B)(6)(b); Beautification and Improvement of the New Orleans City Park
Fund, R.S. 27:392(B)(7); Greater New Orleans Sports Foundation Fund, R.S. 27:392(C)(2); Algiers
Economic Development Fund, R.S. 27:392(C)(3); New Orleans Urban Tourism & Hospitality
Training in Econ. Dev. Foundation Fund, R.S. 27:392(C)(4); Beautification Project for New Orleans
Neighborhoods Fund, R.S. 27:392(C)(5); Friends of NORD Fund, R.S. 27:392(C)(6); New Orleans
Sports Franchise Assistance Fund, R.S. 27:392(C)(7); and Video Draw Poker Device Purse
Supplement Fund, R.S. 27:439.
BET ON LOUISIANA'S FUTURE FUND
Proposed law establishes the Bet on Louisiana's Future Fund as a special treasury fund.
Proposed law deposits riverboat gaming, land-based casino, slot machines at racetracks, video draw
poker, lottery, and offtrack wagering proceeds into the fund.
Proposed law, 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.
Proposed law prohibits the expenditure of deposits into the fund in the same calendar year in which
they are received.
OTHER
Proposed law eliminates cross-references to provisions of law being repealed by this Act.
Effective if and when the proposed amendment of Article XII of the Constitution of La. contained
in the Act which originated as House Bill No. ____ of this 2016 R.S. of the Legislature is adopted
at a statewide election and becomes effective.
(Amends R.S. 4:218(A), R.S.17:421.7(A), R.S. 27:92(B)(1), 249, 270, 353(13), 392(B)(1), 435(D),
and 437(B)(1) and (C)(intro para) and (3), R.S. 28:842(B) and (C), the heading of Chapter 39 of Title
33 of the La. Revised Statutes of 1950 and R.S. 33:9551(F), the heading of Chapter 40 of Title 33
of the La. Revised Statutes of 1950 and R.S. 33:9561(F), and R.S. 47:9029(A)(3) and (C); Adds R.S.
27:601; Repeals R.S. 27:31(F), 92(B)(2) and (C), 361(B)(4), 392(B)(2)-(9) and (C), 437(B)(2) and
(C)(2) and (4), 438, and 439, R.S. 33:9551(A)-(E), 9561(A)-(E), and 9571, and R.S. 47:9029(B))