VIDEO LOTTERY; RACETRACK                                                                                                                             S.B. 397 & 399:

                                                                                                                                                                                                      SUMMARY OF BILL

                                                                                                                                                                        REPORTED FROM COMMITTEE

Senate Bills 397 and 399 (as reported without amendment)

Sponsor:   Senator Jim Ananich

Committee:   Agriculture

CONTENT

Senate Bill 397 would add Article 2 to the Lottery Act to do the following:

 --       Add various terms and definitions, including "video lottery game" and "video lottery terminal".

 --       Prescribe the duties of the Bureau of State Lottery with respect to video lottery, including promulgation of rules and the collection of fees.

 --       Specify that the Bureau would have the powers and duties prescribed in the Lottery Act and would have to administer the provisions of the Act relating to licensing, enforcement, and regulation.

 --       Require the Bureau to grant a license to an applicant to conduct video lottery if it had determined that the applicant held a valid race meeting license, had filed an application with the Bureau, and that the Bureau had completed a background check and was satisfied with the results.

 --       Prescribe an application fee for a license of $50,000, a license fee of $100,000, and a renewal license fee of $50,000.

 --       Specify that information provided to the Bureau by a licensee that disclosed the name, address, or any other personal information of a licensee or any patron of the licensee would be considered confidential and would not be subject to disclosure under the Freedom of Information Act.

 --       Allow the Bureau to issue an occupational, manufacturer, or supplier license to an applicant if it had determined that the applicant had filed a completed application and the Bureau completed a background check and was satisfied with the results.

 --       Require a license holder to retain as his or her commission 81% of the gross terminal income generated from video lottery terminals at the license holder's licensed premises.

 --       Require a license holder to remit its net terminal income to the Bureau by electronic transfer of funds on dates established by the Bureau.

 --       Require remitted net terminal income from all license holders to be combined and require the combined income to be used first for administrative expenses with the remainder allocated to the funds or entities specified in the bill.

 --       Prescribe felony and misdemeanor criminal penalties for various violations of Article 2.

The bill also would recodify the existing provisions of the Act as Article 1, and would amend the Act to do the following:

 --       Modify the definition of "lottery" and define "State lottery" and "video lottery".

 --       Require the Bureau to make determinations as to whether a lottery winner owned money for a support arrearage or to various State entities before payment of a prize of $1,000 or more under Articles 1 or 2.

 --       Specify that provisions of the Act related to the State Lottery Fund would not apply to gross te