Section 1. This Act establishes an additional revenue source for the State and a dedicated source of revenue for public education in Delaware. This Act shall be known as the Public Education Assistance Act (the “PEAA”). This Act is a companion to legislation establishing the Public Education Assistance Act Trust (the “PEAA Trust”).

Section 2. Amend § 4801(b), Title 29 of the Delaware Code by striking paragraph (2) and substituting in lieu thereof the following:

“(2) Provide an additional revenue source for the State and a dedicated revenue source for public education in Delaware;

(3) Provide assistance in the form of increased economic activity and vitality for the waterfront area in, and in the vicinity of, the City of Wilmington; and

(4) Restrict the location of such lotteries to locations where wagering is already permitted, and to no more than one additional area located at the Wilmington Waterfront, in the vicinity of Christina River in the City of Wilmington, which is in need of the redevelopment assistance that a State-regulated video lottery may afford.”.

Section 3. Amend § 4802, Title 29 of the Delaware Code by striking the period at the end of that Section, and by inserting in its place the following: “, except as otherwise directed hereunder.”.

Section 4. Amend § 4803, Title 29 of the Delaware Code by adding thereto new subsections (k) and (l) to read as follows:

“(k) ‘PEAA Redevelopment Property’ shall mean a property located as provided in § 4819(a)ii of this subchapter on which video lottery and other lawful gaming operations may be conducted pursuant to a license granted by the Director under § 4805(b)(13)(B) of this subchapter.

(l) ‘PEAA Trust’ shall mean the trust established under Chapter 36 of Title 29 of the Delaware Code.”.

Section 5. Amend § 4805(b)(13), Title 29 of the Delaware Code by redesignating the first two sentences of subsection (b)(13) as subparagraph (A), by redesignating the remaining four sentences of subsection (b)(13) as subparagraph (C) and by inserting a new subparagraph between subparagraphs (A) and (C) to read:

“(B) As video lottery agents each person, corporation, partnership, limited liability company or other entity or association which the Director determines meets the requirements of § 4806(a)(1)-(4) and (b) of this Title, satisfies such fitness and background standards as the Director may promulgate pursuant to subsection (a)(16) of this Section, and otherwise has the lawful right to operate, and commits to operate, video lottery facilities at the permitted location of a PEAA Redevelopment Property, as identified in § 4819(a)ii of this Title.”.

Section 6. Amend § 4815(b)(2), Title 29 of the Delaware Code by striking it in its entirety and substituting in lieu thereof the following:

“(2) Proceeds returned to the State. Of amounts remaining after all payments to players under paragraph (1) of this subsection, there shall be returned to the State the following:

a. Video lottery agents operating within the confines of a racetrack property, in accordance with the provisions of § 4819(a)i of this subchapter shall return:

i. 12.5% of the average daily win (the amount remaining after all payments to players) not exceeding $25,000;

ii. 15% of the average daily win exceeding $25,000 but not in excess of $50,000;

iii. 20% of the average daily win exceeding $50,000 but not in excess of $75,000; and

iv. 30% of the average daily win in excess of $75,000.

b. Video lottery agents operating within the confines of a PEAA Redevelopment Property in accordance with the provisions of § 4819(a)ii and § 4805(b)(13)(B) of this subchapter shall return to the State, after all payments to players under paragraph (1) of this subsection, the following:

i. 15.5% of the average daily win (the amount remaining after all payments to players) not exceeding $25,000;

ii. 18% of the average daily win exceeding $25,000 but not in excess of $50,000;

iii. 23% of the average daily win exceeding $50,000 but not in excess of $75,000; and

iv. 33% of the average daily win in excess of $75,000.

The funds retained by the State Lottery Office shall be applied as follows:

a. to the administrative costs and expenses in respect of the video lottery including, but not limited to administrative expenses including payroll and other employment costs attributable to the operation of the video lottery by the State Lottery Office, law enforcement and security expenses, including payroll and other employment costs of the State Lottery Office, the Office of the Attorney General and the Delaware State Police, attributable to the operation by the State Lottery Office of a video lottery;

b. $100,000 or 1%, whichever is greater, of the proceeds distributed under (b)(2) a.-d. of this Section to the Division of Substance Abuse and Mental Health of the Department of Health and Social Services for funding programs for the treatment, education and assistance of compulsive gamblers and their families;

c. costs of the Administrator of Racing and racing inspectors referenced in Chapters 100 and 101 of Title 3; and

d. the remainder shall be paid into the State’s General Fund.”.

Section 7. Amend § 4815(b)(3)a., Title 29 of the Delaware Code by inserting after the first sentence thereof a new sentence to read as follows:

“With respect to video lottery operations conducted at a PEAA Redevelopment Property, the State shall receive an additional 12.75% of the proceeds remaining after payments made under paragraph (1) of this subsection.”.

Section 8. Further amend § 4815(b)(3) by redesignating subsection d. thereof (entitled “Commissions to agents”) as subsection “f” and by adding thereto new subsections “d” and “e” as follows:

“d. Payment to the PEAA Trust. Video lottery agents operating within the confines of a PEAA Redevelopment Property in accordance with the provisions of § 4819(a)ii and § 4805(b)(13)(B) of this subchapter shall remit ten percent (10%) of the average daily win (the amount remaining after all payments to players) to the PEAA Trust.

e. Payment to the City of Wilmington. Video lottery agents operating within the confines of a PEAA Redevelopment Property located within the City of Wilmington shall remit three percent (3%) of the average daily win (the amount remaining after all payments to players) to the general fund of the City of Wilmington.”.

Section 9. Amend § 4819, Title 29 of the Delaware Code by striking that Section in its entirety and substituting in lieu thereof the following:

“§ 4819. Restrictions on location and use of video lottery machines.

(a) Video lottery machines may be located only in the following places:

i. Within the confines of an existing racetrack property in this State on which was conducted in 1993 either a horse racing meet pursuant to Title 3 of Title 28 or a harness horse racing meet pursuant to Title 3; and

ii. Within the confines of a PEAA Redevelopment in the City of Wilmington on real estate located at 401 and 501 A Street bearing tax parcel numbers 26050.00 O 36 and 26050.00 O 37.

(b) In respect of any pari-mutuel harness racing or pari-mutuel horse racing property, the racing operations on which were lawful under any county or municipal zoning ordinance as of January 1, 1993 and in respect of any PEAA Redevelopment Property, the use of video lottery machines shall not be deemed to change the character of such lawful land use and the use of video lottery machines at those properties shall not be prohibited by any county or municipal zoning ordinance, including amendments thereto.”.

Section 10. Amend § 4820(b), Title 29 of the Delaware Code by inserting immediately after “racetrack property” each time it appears therein the words “or PEAA Redevelopment Property”.”.

Section 11. If any provision of this Act or the application thereof to any person or circumstance is held invalid for any reason, the invalidity shall not affect the other provisions or any other application of this Act which can be given without the invalid provision or application, and, to this end, all the provisions of this Act are declared to be severable.

SPONSOR:	Rep. DiPinto & Rep. Hudson &
	Sen. Henry & Sen. McDowell; Reps. Plant, Williams; Sen. Marshall