SSHB137 3944 3958
HOUSE SUMMARY OF SENATE AMENDMENTS
HB 137 2021 Regular Session Duplessis
GAMING/CASINO: Provides relative to non-gaming economic development activities by
the casino gaming operator
Synopsis of Senate Amendments
1.Makes technical changes.
2.Adds provisions relative to hotel room taxes.
3.Adds provisions relative to taxation of food, beverage, entertainment, and
parking.
4.Rewords proposed law provisions relative to the memorandum of understanding
between the casino gaming operator and the La. Stadium and Exposition
District and the Ernest N. Morial-New Orleans Exhibition Hall Authority.
5.Specifies that any action related to the enforcement of the memorandum of
understanding shall be instituted in the Civil District Court for the parish of
Orleans.
6.Adds an effective date of July 1, 2021, and provides for effectiveness contingent
upon the enactment of House Bill No. 365 and Senate Bill Nos. 204 and 209 of
the 2021 Regular Session of the Legislature.
Digest of Bill as Finally Passed by Senate
Present law (R.S. 27:240 et seq.) provides for the Land-Based Casino Operating Contract and
provides for the operations for the land-based casino.
Present law (R.S. 27:243) provides that as of Aug. 1, 2019, the casino operator is authorized
to conduct certain non-casino related activities at the official gaming establishment on or at
another location subject to requirements set forth in present law.
Present law provides for terms of the memorandum of understanding and agreement with the
Greater New Orleans Hotel and Lodging Association date April 2019.
Present law provides that room taxes shall be paid by the casino gaming operator on all
discounted and complimentary rooms to be paid at applicable tax rates.
Proposed law retains present law and specifies that room taxes levied and collected by the
city of New Orleans shall be paid by the casino gaming operator.
Proposed law removes discounted rooms from those by which the room taxes levied and
collected by the city of New Orleans shall be paid by the casino gaming operator.
Proposed law provides that complimentary rooms provided by the casino gaming operator
shall not be subject to the state sales and use tax, the occupancy taxes levied by the La.
Stadium and Exposition District, or the occupancy taxes levied by the Ernest N. Morial-New
Orleans Exhibition Hall Authority.
Proposed law also provides that room taxes levied and collected by the city of New Orleans,
sales and use taxes levied by the state, and sales and use or occupancy taxes levied by any
other political subdivision on rooms provided at a discount by the casino gaming operator
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shall be paid at the applicable rates based on the amount actually paid or charged for the
room.
Proposed law further provides that in order to establish and stabilize the amount of
occupancy taxes to be paid by the casino gaming operator to the La. Stadium and Exposition
District and the Ernest N. Morial-New Orleans Exhibition Hall Authority for complimentary
rooms provide by the casino gaming operator, which amount is otherwise uncertain, the
casino gaming operator shall enter into a binding memorandum of understanding with the
La. Stadium and Exposition District and the Ernest N. Morial-New Orleans Exhibition Hall
Authority to provide for cumulative annual payments for the occupancy taxes of not less
than$1,300,000 per year, with the first payment beginning on July 1, 2022, and continuing
through July 31, 2054, and to provide that payments are to be made on a quarterly basis as
may be set forth in the binding memorandum of understanding.
Proposed law provides that any action related to the enforcement of or any related
agreements to the binding memorandum of understanding shall be instituted in the Civil
District Court for the parish of Orleans.
Proposed law requires the casino gaming operator to remit state and local sales and use taxes
on all complimentary and discounted food, beverage, or entertainment offerings based on the
actual value of food, beverage, or entertainment provided.
Proposed law further requires the casino gaming operator to remit state and local sales and
use taxes on all parking provided at a charge to the customer or the general public.
Present law (R.S. 27:248) provides relative to the promotion of non-gaming economic
development by the casino gaming operator or an affiliate company through the development
of businesses, including restaurants, entertainment outlets, and retail outlets leased or
subleased to third-party tenants or subtenants within, adjacent to, and around the official
gaming establishment.
Present law requires the casino gaming operator to report quarterly the total operating force
or personnel level of the third-party tenants to the board of directors of the La. Economic
Development and Gaming Corporation.
Present law provides that the reported operating force or personnel level for the prior quarter
shall be determined by taking into account the greater of either the three-month average for
the applicable reporting quarter or the highest monthly total during the applicable reporting
quarter. Further provides that the reported operating force or personnel level for the prior
quarter shall be credited to the casino gaming operator for purposes of meeting certain
present law obligations, provided that such credit is limited to 400 employment positions
toward the total operating force or personnel level.
Present law provides that prior to July 15, 2024, the casino operator shall make a capital
investment on or around the official gaming establishment of $325,000,000 subject to an
extension for any force majeure event.
Proposed law amends present law to remove the 400 employment positions credited toward
the total operating force or personnel level.
Present law defines "operating force or personnel level" as the number of people employed
by the casino and any related non-gaming entity, including hotel operations, third-party
tenants, and corporate employees.
Present law provides that the casino gaming operator shall not reduce its total operating force
or personnel level below 90% of the force or level as such existed on March 8, 2001.
Present law provides that to meet those goals the credit is limited to 400 employment
positions.
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Proposed law changes present law from 400 positions to not more than half of the total
operating force or personnel level to meet those goals.
Proposed law adds hospitality outlet employees to the definition of "operating force or
personnel level" and also adds third-party contractor employees provided, however, that the
employees of third-party contractors shall be included only until the $325,000,000 capital
investment requirement has been fulfilled.
Proposed law removes third-party tenants from the total operating force or personnel level
that is reported to the gaming control board.
Proposed law amends the present law definition to also include employees of any third-party
contractors.
Present law provides that the casino gaming operator shall be credited an amount equal to
the pro rata share of compensation to employees of the third-party tenants.
Proposed law amends present law to provide that the amount credited to the casino gaming
operator is equal to the compensation to employees of the third-party tenants.
Effective July 1, 2021, if and when the Acts which originated as House Bill No. 365 and
Senate Bill Nos. 204 and 209 of the 2021 Regular Session of the Legislature are enacted and
become effective.
(Amends R.S. 27:243(C)(intro. para.), (4)(b) and (5), 248(C)(2)(intro. para.), (3), (4), and (5);
Adds R.S. 27:243(C)(6))
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