CHAPTER 19
FORMERLY
HOUSE BILL NO. 148
AS AMENDED BY
HOUSE AMENDMENT NO. 1
AN ACT TO AMEND CHAPTER 48, TITLE 29 OF THE DELAWARE CODE RELATING TO THE DELAWARE LOTTERY.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (Three-fifths of all members elected to each house thereof concurring therein):
Section 1. Amend § 4815(b)(1), Chapter 48, Title 29 of the Delaware Code by striking the sentence beginning with the phrase “In any 1 month” and replacing it with the following:
“In any one (1) fiscal year, this amount shall not exceed 4% of all proceeds, net of proceeds returned to players pursuant to paragraph (1) of this subsection, from the operation of the video lottery from the previous fiscal year generated by the respective video lottery agent.”.
Section 2. Further Amend § 4815(b)(1), Chapter 48, Title 29 of the Delaware Code by deleting the last sentence in said paragraph.
Section 3. The following definitions shall apply for the purposes of carrying out the provisions set forth in Section 4 of this Act:
“(a) ‘Base Period’ shall mean the fifty-two week period ending at 6:00 a.m. on June 4, 2007.
(b) ‘State Share’ shall mean all proceeds earned from a video lottery agent returned to the State from the operation of the video lottery as outlined in § 4815(b)(2) and § 4815(b)(3) of Title 29 of the Delaware Code along with any monies earned from the (i) additional surcharge described in §
4815(b)(3)d. of
Chapter 48, Title 29 of the Delaware Code and (ii) the annual license fees described in § 4820(b)(2) of Chapter 48, Title 29 of the Delaware Code.
(c) ‘State Share Percentage’ shall mean the result of a video lottery agent’s State Share for the Base Period divided by the total of all video lottery agents’ State Shares for the Base Period.
(d) ‘Total State Target Amount’ shall be the sum of the total of all video lottery agents’ State Shares for the Base Period plus the Total FY 2008 Incremental Target.
(e) ‘Total FY 2008 Incremental Target’ shall equal $5,000,000.
(f) ‘Video Lottery Agent Target Amount’ shall equal the sum of a respective video lottery agent’s State Share for the Base Period plus the Video Lottery Agent Incremental Target.
(g) ‘Video Lottery Agent Incremental Target’ shall equal the product of a video lottery agent’s State Share Percentage multiplied by the Total FY 2008 Incremental Target.
(h) ‘FY 2008 Aggregate Shortfall’ shall be an amount, not less than zero, equal to the Total State Target Amount minus the sum of the total of all video lottery agents’ State Shares during the Review Period.
(i) ‘Video Lottery Agent Shortfall’ shall be an amount, not less than zero, equal to a video lottery agent’s Video Lottery Agent Target Amount minus its State Share during the Review Period.
(j) ‘FY 2008 Shortfall Share Percentage’ shall equal a fraction, the numerator of which, for each video lottery agent that failed to reach its Video Lottery Agent Target Amount during the Review Period, shall be the respective video lottery agent’s State Share during the Review period, the denominator of which shall be the sum of all video lottery agents’ State Shares which, during the Review Period, have failed to reach their respective Video Lottery Agent Target Amounts.
(k) ‘Review Period’ shall mean the fifty-two week period ending at 6:00 a.m. on June 2, 2008.”.
Section 4. Fiscal Year 2008 Performance Benchmark.
In addition to the State Share remitted to the State, video lottery agents must remit to the State an additional surcharge. The amount of the additional surcharge shall vary depending upon both the individual video lottery agent’s performance and the performance of the video lottery industry as a whole. In the event that the sum of the total of all video lottery agents’ State Shares during the Review Period is:
(a) not less than the Total State Target Amount, then the amount of the Fiscal Year 2008 surcharge for all video lottery agents shall be zero,
(b) no more than $10,000,000 below the Total State Target Amount, then the amount of the Fiscal Year 2008 surcharge shall be determined as follows. In the event a video lottery agent’s State Share during the Review Period:
(1) exceeds its Video Lottery Agent Target Amount, the Fiscal Year 2008 additional surcharge for said video lottery agent shall be zero,
(2) is less than its Video Lottery Agent Target Amount, the Fiscal Year 2008 additional surcharge for said video lottery agent shall be the lesser of:
a. its Video Lottery Agent Incremental Target,
b. its Video Lottery Agent Shortfall, or
c. the FY 2008 Aggregate Shortfall times its FY 2008 Shortfall Share Percentage.
(a) more than $10,000,000 below the Total State Target Amount, then the amount of the Fiscal Year 2008 surcharge shall be determined as follows. In the event a video lottery agent’s State Share during the Review Period:
(1) exceeds its Video Lottery Agent Target Amount, the Fiscal Year 2008 additional surcharge for said video lottery agent shall be zero,
(2) is less than its Video Lottery Agent Target Amount, the Fiscal Year 2008 additional surcharge for said video lottery agent shall be the lesser of:
a. its Video Lottery Agent Incremental Target (calculated for purposes of this subparagraph(a) only with a Total FY 2008 Incremental Target equal to $6,000,000), or
b. an amount equal to its Video Lottery Agent Target Amount (calculated for purposes of this subparagraph (b) only with a Total FY 2008 Incremental Target equal to $6,000,000) minus its State Share during the Review Period.
(a) The Fiscal Year 2008 Additional Surcharge must be remitted by video lottery agents to the State no later than June 25, 2008. Payments received after June 25, 2008, may, at the discretion of the Secretary of Finance, be subject to interest provisions provided in § 533 of Title 30 of the Delaware Code.”.
Section 5. This Act shall be effective upon its enactment into law.