Chapter
326
2006 -- S 2347 SUBSTITUTE B
Enacted 07/04/06
A N A
C T
RELATING TO STATE
AFFAIRS AND GOVERNMENT -- STATE LOTTERY
Introduced By: Senators
Tassoni, Doyle, and McBurney
Date Introduced: February
07, 2006
It is
enacted by the General Assembly as follows:
SECTION
1. Chapter 42-61.2 of the General Laws entitled "Video Lottery
Terminal" is
hereby
amended by adding thereto the following section:
42-61.2-12.
Video lottery terminal prize – Set-off for child support debts. --
Notwithstanding
the provisions of section 42-61-7 relating to assignment of prizes, the
following
set
off provisions shall apply to the payment of any prize requiring the issuance
of Internal
Revenue
Service Form W-2G by a video lottery retailer to a patron:
(1)
With respect to a person entitled to receive the prize who has an unpaid child
support
order(s)
arrearage(s) in excess of five hundred dollars ($500), as provided by the
department of human
services
pursuant to subsection 42-61-7.1(3), the division of state lottery:
(i)
Shall establish rules and regulations pursuant to section 42-61.2-3 providing
for the
establishment
and operation of a system whereby the division of state lottery shall have the
ability
to
communicate such information to video lottery retailers so as to identify a
person entitled to
receive
a prize requiring the issuance of Internal Revenue Service Form W-2G who has an
unpaid
child
support order(s) arrearage(s).
(ii)
Upon receipt of information indicating an unpaid child support arrearage the
video
lottery
retailer shall set off against the amount due to that person an amount up to
the balance of
the
child support arrearage(s). The video lottery retailer shall then make payment
as prescribed
by
the division of lottery to the Rhode Island family court in the case of child
support arrearage(s)
which
shall deposit the amount set off into the registry of the family court for a
period of forty-
five
(45) days, or if any application for review has been filed pursuant to
subsection 27-57-1(d),
until
final disposition of the application until further order of the court.
(iii)
The video lottery retailer shall pay to this person the remaining balance of
the prize
amount,
if any, after reduction of the amount set off above for child support.
(2)
The division of lottery, the lottery director and the video lottery retailer
shall be
discharged
of all further liability upon payment of a prize pursuant to this section. Except
in the
case
of gross negligence, the division of lottery, the lottery director and the
video lottery retailer
shall
not be liable to any party or person for failure to make such a set-off.
(3)
The department of human services shall periodically within each year furnish
the
director
with a list or compilation of names of individuals, together with any other
identifying
information
and in a form that the director shall require, who as of the date of the list
or
compilation,
have an unpaid child support order arrearage in excess of five hundred dollars
($500)
as shown on the Rhode Island family court decrees department of human services
child
support
enforcement computer system ("CSE system"). For the purposes of this
section, the terms
used
in this section shall be given the meaning and definitions specified in section
15-16-2.
(4)
Any party aggrieved by any action taken under this section may within thirty
(30)
days
of the withholding of the payment by the lottery director seek judicial review
in the family
court,
which may, in its discretion, issue a temporary order prohibiting the
disbursement of funds
under
this section, pending final adjudication.
(5)
Notwithstanding any other general or special law to the contrary, this section
shall
apply
to all existing gambling facilities within the state as of the time of
enactment and also to
any
gambling facility within this state which is established after the date of
enactment.
SECTION
2. Section 42-61.2-3 of the General Laws in Chapter 42-61.2 entitled
"Video
Lottery
Terminal" is hereby amended to read as follows:
42-61.2-3.
Additional powers and duties of the director. -- In addition to the
powers
and
duties of the state lottery director under section 42-61-4, the director shall
promulgate
reasonable
rules and regulations relating to video lottery games and to make
recommendations
and set
policy for these games. These rules and regulations and shall include but not
be limited to:
(1) The division shall license technology providers capable of interfacing with
a central
communications
system controlled by the division. In making its licensing decision, the
division
shall
select providers based on the following factors: providers experienced in
performing
comparable
projects, financial stability, technical and management abilities, the quality
of the
product
and service capabilities, likelihood of timely performance, maximum revenue
generation,
its
ability to pass a law enforcement background investigation, and any other
factors found to be
relevant
to performance. The award of a license to technology providers under this
section shall
satisfy
the requirements of chapter 2 of title 37. An outside independent testing laboratory
may be
utilized
by the division at the expense of the individual provider;
(2) Accounting procedures for determining the net terminal income from lottery
video
terminals,
and unclaimed prizes and credits;
(3) The type of video lottery games to be conducted;
(4) The price to play each game and the prizes or credits to be awarded;
(5) Financial reporting procedures for licensed video lottery retailers and
control
procedures
in the event that any of these retailers should become insolvent;
(6) Insurance and bonding by:
(i) Licensed video lottery retailers; and
(ii) Technology provider;
(7) The licensing of licensed video lottery retailers;
(8) The contracting with technology providers;
(9) All video lottery machines shall be linked under a central communications
system to
provide
auditing program information as approved by the division. The communications
system
approved
by the division may not limit participation to only one manufacturer of video
lottery
machines
by either cost of implementing the necessary program modifications to
communicate or
the
inability to communicate with the central communication system; and
(10)
Establishment of information system, operating procedures, reporting and
accounting
criteria in order to comply with the provisions of section 42-61.2-12; and
(10)
(11) Any other matters necessary for video lottery terminals or for the
convenience
of the
public.
SECTION
3. This act shall take effect on January 1, 2007.
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LC01740/SUB B
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