Louisiana Senate Bill SB196

Louisiana 2019 Regular Session

• Introduced: 3/27/19
• Refer: 3/27/19
• Refer: 4/8/19
• Report Pass: 4/23/19

Caption

Authorizes local governments to charge a fee on certain gaming winnings to fund local early childhood programs. (8/1/19)

Impact

The proposed legislation seeks to provide a new funding source for early childhood education, which has been a growing concern in Louisiana. By allowing local governments to impose this fee, the bill aims to enhance funding avenues for early learning centers, potentially improving the availability and quality of care for young children in the community. The expectation is that with additional revenue, local early childhood programs will have more resources to foster developmental initiatives for children, thus positively impacting the community's future workforce.

Summary

Senate Bill 196, introduced by Senator Morrell, aims to authorize local governing authorities in Louisiana to levy a fee of up to $50 on certain gambling winnings, specifically on progressive slot machine annuities and cash gaming winnings. The bill intends for the proceeds from this fee to be allocated exclusively to local early childhood programs targeting quality care for children aged birth to two years old. The implementation of this fee is contingent upon the requirement for the gambling licensee to file specific IRS forms for reporting large winnings, ensuring that it only applies to higher payouts.

Sentiment

The sentiment surrounding SB 196 appears to be mixed. Proponents of the bill argue that it presents a unique opportunity for local governments to generate revenue specifically for the benefit of young children and educational programs, which have been historically underfunded. However, there may be concerns regarding the burden this fee could impose on gambling patrons, as some may view this as an additional tax on winnings. The prospect of local variances in implementation may also lead to disparities in funding across different regions.

Contention

Notably, the bill's language excludes licensed video draw poker establishments from being affected by this fee, which may raise questions about the fairness and equity of the legislation. Opponents might argue that differentiating between types of gambling establishments creates an uneven regulatory landscape. The bill does require local governments to use the funds exclusively for early childhood programs, but this specific allocation could lead to debates about the best use of gaming revenue and whether it ought to address broader educational funding challenges.