Chapter 438

2006 -- H 6782 SUBSTITUTE A

Enacted 07/07/06

A N A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- STATE LOTTERY

Introduced By: Representatives Gemma, Jacquard, Lima, Schadone, and O`Neill

Date Introduced: January 11, 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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LC00076/SUB A/2

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