CHAPTER 53

FORMERLY

HOUSE BILL NO. 269

AN ACT TO AMEND TITLE 29, CHAPTER 48 OF THE DELAWARE CODE RELATING TO THE DELAWARE LOTTERY.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend Subsection 4805(b)(4), Chapter 48, Title 29 of the Delaware Code by adding the following language to the end of the second sentence of the existing subsection to provide as follows:

", and, including agreements with other state, provincial, or international lotteries for participation in lottery games."

Section 2. Amend Subsection 4815(b)(3)a, Chapter 48, Title 29 of the Delaware Code, by adding the following language to the second sentence of the existing subsection:

", provided that the video lottery agents shall reimburse the State for a portion of additional equipment costs for the operation of video lottery machines that require the payment of an additional license or proprietary fee as provided under (b)(3)d. of this section."

Section 3. Amend Subsection 4815(b)(3)d, Chapter 48, Title 29 of the Delaware Code, by adding the following language to the end of the existing subsection:

", provided that the video lottery agent shall first pay to the State an additional surcharge fee of 1.25% of the commission due to the video lottery agent under this subparagraph and then the video lottery agent shall reimburse the State for 50% of any equipment costs consisting of video lottery machine license or proprietary fees."

Section 4. Amend Subsection 4819(c), Chapter 48, Title 29 of the Delaware Code by deleting the existing subsection in its entirety and substituting in lieu thereof the following:

"(c) Video lottery machines shall be connected to the Lottery’s central computer system, except when used for promotional tournaments in which players are not required to pay any fee to participate, and shall not be available for play on Christmas, or after 4:00 a.m. on Easter, or between the hours of 4:00 a.m. and 12:00 p.m. on Sundays, or between the hours of 4:00 a.m. and 8:00 a.m. on all other days."

Section 5. Amend Subsection 4820(a), Chapter 48, Title 29 of the Delaware Code by adding the following sentence to the end of the existing subsection:

"The Lottery may own or lease video lottery machines pursuant to this subsection that require the payment of an additional license or proprietary fees and the number of such license or proprietary fee machines at any licensed racetrack property may not exceed more than 5% of the total number of video lottery machines at the licensed racetrack property, unless the Director finds that an additional number of such machines are necessary to increase revenues, will not produce reductions in the overall net proceeds from the video lottery, will protect the public welfare, and will ensure the security of the video lottery."

Section 6. Amend Subsection 4820(b), Chapter 48, Title 29 of the Delaware Code by deleting the phrase "unless the Director approves up to an additional 1,000 for each racetrack property" as it appears therein in said subsection and substituting in lieu thereof the phrase "unless the Director approves up to an additional 1,500 for each racetrack property", and by adding the phrase ", provided that the maximum number of video lottery machines under this subsection shall include no more than 30 video lottery machines at each racetrack used exclusively for promotional tournaments in which players are not required to pay any fee to participate" to the end of the first sentence in the existing subsection.

Section 7. Create a new Section 4824 of Title 29 of the Delaware Code, which shall read as follows:

Ҥ 4824. Advisory Council on Video Lottery Planning

(a) An Advisory Council on Video Lottery Planning is established and shall serve in an advisory capacity to the Secretary of Finance. Its membership shall include:

(1) The Director of the State Lottery Office.

(2) One member from each licensed video lottery agent, to be designated by the respective agent.

(3) Two members representing all of the licensed manufacturers of video lottery machines to be designated by the Director of the State Lottery Office, and/or the licensed manufacturer of the central computer systems to be designated by the Director of the State Lottery Office.

(b) The Governor shall designate one member to serve as Chairperson of the Council, who shall serve in that capacity for two years and shall be eligible for reappointment.

(c) The Council shall consider matters relating to the growth and competitive vitality of the video lottery industry in the State, including but not limited to:

(1) The status of video lottery game development issues in the state;

(2) The status of known game problem resolution;

(3) Personnel issues and concerns affecting the industry;

(4) The effectiveness of current operational procedures and recommendations for new operational procedures or regulations;

(5) The competitive vitality of the video lottery industry in the state, and recommendations for marketing and technological improvements;

(6) Issues and concerns relating to the repair and maintenance of video lottery machines and related equipment, including preventive maintenance programs;

(7) Video lottery agent or manufacturer specific projects that will impact the operation of the video lottery; and

(8) Issues and concerns of the State Lottery Office relating to video lottery operations and the status of internal control approvals.

(d) Members of the Council shall serve without compensation, except that they may be reimbursed for reasonable necessary expenses incident to their duties as members in accordance with State law.

(e) Any member of the Council other than the Director of the State Lottery Office shall be subject to removal and replacement, without cause, at any time by the person who appointed or designated the member.

(f) The Council shall meet at least four times each calendar year, at the call of the Director, the Chairperson, or a majority of the members.

(g) The Council shall submit a report on its activities to the Secretary of Finance by the 5th day of November of each year, together with recommendations for legislative and/or administrative changes it deems desirable.”.

Approved June 19, 2003