Section 1. This Act shall be known as the “Qualified Entertainment Zone Act”.

Section 2. Amend § 4801(b), Chapter 48, Title 29 of the Delaware Code by redesignating paragraph “(2)” as new paragraph “(3)”, and by adding new paragraph “(2)” thereto to read as follows:

“(2) Provide a source of revenue to be used for:

A. farmland and open space preservation; and

B. for the financial support of long-term facilities as defined in § 1751, Chapter 11, Title 16 and operated by non-profit organizations, including non-profit corporations and for educational initiatives of the school districts of this State for Pre-Kindergarten children; and”.

Section 3. Further Amend § 4801(b), Chapter 48, Title 29 of the Delaware Code by adding at the end of renumbered paragraph (3) the phrase “, and to qualified entertainment venues located in qualified entertainment zones”.

Section 4. Amend § 4803, Chapter 48, Title 29 of the Delaware Code by adding new Subsections to read as follows:

“(k) ‘Qualified entertainment zone’ shall mean a geographical location on or adjoining the Delaware River, where, within or adjoining such location, musical, theatrical or other performing arts entertainment is offered to the public on a regular basis in connection with food and beverage service, including, but not limited to, dinner theaters and cabarets, provided that such location is within or adjoins:

(1) a ‘brownfield’, as defined in § 2010(16), Chapter 20 of Title 30 of the Delaware Code;

(2) a ‘targeted area’, as defined in § 2020(1), Chapter 20 of Title 30 of the Delaware Code; or

(3) an area in need of redevelopment as determined by federal law, or by the law of any state, county or municipality.

Any such zone shall be deemed to include any boat docking facility, as defined in § 6002(46), Chapter 60 of Title 7; marina, as defined in § 6002(55), Chapter 60 of Title 7 of this Code; pier, floating breakwater or similar structure, provided such facilities, marinas, piers, floating breakwaters or structures are built upon or connected to the shoreline or fast land of this State, including any island within the limits of the State, as defined in § 201, Chapter 2 of Title 29 of the Delaware Code, and provided, further, that any such zone shall include the waterway within 1,000 feet of such facilities, marinas, piers or similar structures.

(l) ‘Qualified entertainment venue’ shall mean vessels, barges or other floating facilities which are moored, berthed or secured by any means to a boat docking facility, as defined in § 6002(46), Chapter 60 of Title 7 of the Delaware Code, located in a ‘qualified entertainment zone’, which vessels, barges or other floating facilities are of sufficient size to accommodate at least 1,000 Video Lottery Machines, provided that such vessels, barges or other floating facilities are moored or berthed at least 1,500 yards by direct measurement from the outer boundaries of:

(1) the reaches of the Federal Channel from Philadelphia to the Sea; and

(2) the channel of the Chesapeake & Delaware Canal to its confluence with the Federal Channel.

(m) ‘Qualified entertainment venue operator’ shall mean a video lottery agent licensed under § 4805(b)(14) of this Chapter.

(n) ‘Island’ shall mean a parcel of land, natural or manmade, existing above the mean high tide line and separated from the contiguous mainland of any state by water which exists through the duration of a normal or predicted astronomical tidal cycle, provided such parcel is located within the limits of the State, as defined in § 201, Chapter 2 of Title 29 of the Delaware Code.

(o) ‘Reaches of the Federal Channel from Philadelphia to the Sea’ shall mean the Federal Channel, also known as the Federal Project, on the Delaware River designated as ‘Philadelphia to the Sea’ as established and described in 1910 in U. S. House of Representatives Document HD 61-733, as most recently amended in 1958 by HD 85-185.

(p) ‘Pre-Kindergarten’ shall mean under the age of compulsory school attendance, as established in Chapter 27 of Title 14 of the Delaware Code.”.

Section 5. Amend § 4805(b), Chapter 48, Title 29 of the Delaware Code by renumbering existing paragraphs (14) and (15) as (15) and (16) respectively and by inserting a new paragraph (14) therein to read as follows:

“(14) License as video lottery agents each person, corporation, limited liability company or partnership, including a limited liability company or partnership, which owns or operates a qualified entertainment venue; provided, however, that any such person, corporation or partnership shall be licensed as a video lottery agent with respect to only one qualified entertainment venue in any qualified entertainment zone; provided, further, any such license shall permit the licensee to contract with one or more persons, corporations, limited liability companies or partnerships to operate the video lottery facilities within that qualified entertainment venue; provided, further, that within any qualified entertainment zone there shall be no more than two qualified entertainment venues licensed under this paragraph; and provided, further, that the Director shall not grant a license with respect to any qualified entertainment venue which is located within ten miles by direct measurement of the location of Video Lottery Machines operated by a video lottery agent licensed under § 4805(b)(13) of this Chapter, or which is located within ten miles by direct measurement of any qualified entertainment venue licensed under this paragraph and located in another qualified entertainment zone. Such person, corporation, or partnership, including any person, corporation or partnership with whom the licensee contracts for the operation of the video lottery facilities within the qualified entertainment venue, also must satisfy such fitness and background standards as the Director may promulgate pursuant to Subsection (a)(17) of this Section, and shall be conditioned upon the Director’s determination that such person, corporation or partnership shall have met the requirements of § 4806(a)(1)-(4) and (b) of this Chapter. Change of ownership occurring after the Director has issued a license shall automatically terminate the license 90 days thereafter unless the Director has determined after application to issue the license to the new owner(s) because the new owner(s) have met the requirements of § 4806(a)(1)-(4) and (b) of this Title and satisfied such fitness and background standards as the Director may promulgate pursuant to Subsection (a)(17) of this Section. Any license granted pursuant to this Subsection is a privilege personal to the video lottery agent and is not a legal right. Any vessel, barges or other floating facility which is the subject of a license granted pursuant to this paragraph shall be deemed to be fastened to the shore of this State, and shall be under the exclusive jurisdiction of this State. A license granted or renewed pursuant to this Subsection may not be transferred or assigned to another person, nor may a license be pledged as collateral. For purposes of this Subsection, ‘a change of ownership’ shall have occurred if more than 20 percent of the legal or beneficial interests of such person, corporation or partnership shall be transferred by direct or indirect means.”.

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 by:

a. Racetrack Video Lottery Agents.

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. Qualified Entertainment Venue Operators.

i. 15.5% of the average daily win 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.”.

Section 7. Amend § 4815(b)(3) a., Chapter 48, Title 29 of the Delaware Code by striking the word “The” at the beginning of the first sentence thereof, and substituting in lieu thereof the phrase “With respect to licensees other than qualified entertainment venue operators, the”.

Section 8. Further Amend § 4815(b)(3) a., Chapter 48, Title 29 of the Delaware Code by inserting after the first sentence thereof a new sentence to read as follows:

“With respect to qualified entertainment venue operators, the State shall receive an additional 12.73% of the proceeds remaining after payments made under paragraph (1) of this Subsection from the proceeds attributable to such licensees.”.

Section 9. Amend § 4815(b)(3), Chapter 48, Title 29 of the Delaware Code by redesignating Subparagraph “c.” and “d.” as “d.” and “e.” respectively and by inserting therein a new subparagraph c. to read as follows:

“c. Payments to the ‘Qualified Entertainment Zone’ (‘QEZ’). For video lottery agents licensed only as qualified entertainment venue operators under this Chapter, such agents shall be paid and shall pay into an Appropriated Special Fund account established in the accounts of the State Treasurer an amount calculated and disbursed as follows:

1. The agent shall pay an amount equal to 7% of the proceeds remaining after payments made under Subsections (b)(1), (b)(2) and (b)(3) a. of this Section.

2. The amounts paid by qualified entertainment venue operators pursuant to this Subparagraph c. shall be deposited in a ‘QEZ’ Appropriated Special Fund account established in the accounts of the State Treasurer, and shall be disbursed in accordance with § 4824 of this Title.”.

Section 10. Amend § 4819(a), Chapter 48, Title 29 of the Delaware Code by striking said subsection in its entirety and substituting in lieu thereof the following:

(a) Video Lottery Machines shall only be located 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 or Title 28 or a harness horse racing meet pursuant to Title 3, or on the premises of a qualified entertainment venue licensed under this Chapter; and”.

Section 11. Amend § 4819(b), Chapter 48, Title 29 of the Delaware Code by inserting the phrase “, or the area within any qualified entertainment zone, the use of which as a boat docking facility, as defined in § 6002(46), Chapter 60 of Title 7; marina, as defined in § 6002(55), Chapter 60 of Title 7 of this Code; or pier was lawful under any county or municipal zoning ordinance as of January 1, 2001,” after the phrase “as of January 1, 1993” and before the phrase “the use of Video Lottery Machines”.

Section 12. Amend § 4820(b), Chapter 48, Title 29 of the Delaware Code by inserting the phrase “or qualified entertainment venue” after the phrase “within the confines of a racetrack” and before the phrase “property unless the Director approves”.

Section 13. Further Amend § 4820(b), Chapter 48, Title 29 of the Delaware Code by inserting the phrase “or qualified entertainment venue” after the phrase “for each racetrack” and before the phrase “property, and further provided”.

Section 14. Amend Subchapter I, Chapter 48, Title 29 of the Delaware Code by adding thereto a new § 4824 to read as follows:

“§ 4824. QEZ Fund.

(a) Disbursement of the amounts deposited in the ‘QEZ’ Appropriated Special Fund account pursuant to § 4815(b)(3) c. of this Title shall be:

(1) One-third of any such funds shall be utilized to preserve farmland and open space throughout the State. The distribution of these funds shall be determined by the Bond Bill Committee; and

(2) One-third of any such funds shall be utilized to support Pre-Kindergarten education for all school districts in the State. The Department of Education shall be authorized to distribute these funds through a competetive grant process; and

(3) One-third of any such funds shall be utilized to provide financial assistance to Delaware residents requiring an extended stay in a long-term care facility. The Department of Health and Social Services shall be authorized to distribute these funds and establish program guidelines according to the following criteria:

(a) be a Delaware resident;

(b) reside in a Delaware long-term care facility;

(d) have a physical condition or illness, either mental or physical which requires the person to reside at a long-term care facility for a minimum of thirty (30) days.”.

Section 15. This Act shall take effect upon its enactment into law; provided, however, that there shall be no disbursement from the QEZ Fund until July 1^st of the year following the issuance of the first license to a Qualified Entertainment Venue operator under Section 5 of this Act.

SPONSOR:	Rep. Miro & Sen. Peterson &
	Sen. Henry; Reps. Carey, Caulk, DiPinto, Fallon, Hudson, Lavelle, Houghton