2011 Louisiana Laws
Revised Statutes
TITLE 27 — Louisiana gaming control
RS 27:321 — Horse racing emergency relief; exemption from franchise payments

§321. Horse racing emergency relief; exemption from franchise payments

A. Owners of video draw poker devices located in licensed establishments owned or operated by a licensed racing association eligible for emergency relief as determined by the Interim Emergency Board shall be exempt from the franchise payment otherwise due on such machines as required in R.S. 27:311 for a period of time to be determined by the board. However, in no case shall this exemption exceed a period of fifteen years.

B. Owners of video draw poker devices exempted from the franchise payment as provided in this Section shall remit directly to an eligible licensed racing association an amount equal to the franchise payment otherwise due for the duration of the exemption period. All funds received by a licensed racing association pursuant to this Section shall be used for the sole purpose of providing emergency relief to eligible pari-mutuel facilities, but by no event shall this tax exemption exceed two million five hundred thousand dollars annually.

C. The use of funds received by a licensed racing association pursuant to this Section shall be subject to review and prior approval by the Joint Legislative Committee on the Budget and shall be subject to continued oversight by the committee. The committee may specify such reporting and accounting procedures as it deems necessary to fulfill such approval and oversight. The committee may, at any time, reduce the exemption authorized pursuant to this Section if the racing association, through its audited financial records, cannot verify and document to the committee's satisfaction that the exemption is fully needed to allow for the on-going economic viability of the racing association.

D. The financial records pertaining to all use of funds pursuant to this Section shall be audited by the legislative auditor.

E. At such time as the emergency relief for any licensed racing association granted pursuant to this Section exceeds the required annual debt service on any bonds or other indebtedness incurred to address the emergency situation, such indebtedness shall not exceed twenty-five million dollars, the excess of such funds shall be remitted to the state treasury for deposit into the Video Draw Poker Device Fund. The proceeds of any settlement of disputed claims involving the emergency situation shall be used solely and exclusively to retire in advance of maturity or defease outstanding bonds or other indebtedness.

F. In the event the licensed racing association or owner of the facilities ceases to operate the facilities as pari-mutuel wagering facilities at any time during the authorized period of the exemption, the exemption shall immediately cease and the full amount of franchise payments exempted from inception of the exemption shall be reimbursed to the state treasury.

G. The provisions of this Section shall only apply to emergency relief sought for catastrophic occurrences which occurred prior to June 7, 1994.

H. In the event that a pari-mutuel facility is leased to another pari-mutuel operator or is sold, the state treasury shall be paid the full aggregate extent of the exemption granted under Subsection A of this Section.

Acts 1994, No. 44, §1, eff. June 7, 1994. Redesignated from R.S. 33:4862.21 by Acts 1996, 1st Ex. Sess., No. 7, §3, eff. May 1, 1996.