72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 1888
 
                         House Bill 2510
 
Sponsored by Representative ROSENBAUM; Representatives
  DINGFELDER, TOMEI, Senator CORCORAN
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
 
  Limits compensation of video lottery game retailers to 15
percent of net receipts.
 
                        A BILL FOR AN ACT
Relating to compensation of video lottery game retailers;
  creating new provisions; and amending ORS 461.310.
  Whereas under current contracts video lottery game retailers
such as taverns make more than $130 million a year in
commissions, based on commission rates that average 32.5 percent
of video lottery game revenues; and
  Whereas the primary purpose of the Oregon State Lottery is to
provide funding for education, which currently receives 66
percent of the state's share of lottery revenues, and parks,
watershed restoration and other natural resource purposes, which
currently receive 15 percent of the state's share of lottery
revenues, and economic development and job creation, which
currently receive 18 percent of the state's share of lottery
revenues; and
  Whereas independent studies by economists and auditors,
including the Division of Audits of the Office of the Secretary
of State, have found that video lottery game retailers could make
a reasonable profit with commission rates of 10 to 15 percent;
and
  Whereas limiting video lottery game retailers' commissions to a
reasonable rate will provide substantial additional funding for
education, parks and natural resources, and job creation and
economic development in this state; and
  Whereas video lottery game dollars are public dollars that
should not be used to subsidize employers that do not provide
health benefits; now, therefore,
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 461.310 is amended to read:
  461.310.  { + (1) + } Upon recommendation of the Director of
the Oregon State Lottery, the  { + Oregon State Lottery + }
Commission shall determine the compensation to be paid to lottery
game retailers for their sales of lottery tickets or shares.
Until the commission shall otherwise determine, the compensation
paid to lottery game retailers shall be five percent of the
retail price of the tickets or shares plus an incentive bonus of
one percent based on attainment of sales volume or other
objectives specified by the director for each lottery game. In
cases of a lottery game retailer whose rental payments for
premises are contractually computed in whole or in part, on the
basis of a percentage of retail sales, and where such computation
of retail sales is not explicitly defined to include sales of
tickets or shares in a state-operated lottery, the compensation
received by the lottery game retailer from the Oregon State
Lottery shall be deemed to be the amount of the retail sale for
the purposes of such contractual computation.
   { +  (2) Notwithstanding subsection (1) of this section, a
contract between the commission and a video lottery game retailer
may not provide for compensation to the video lottery game
retailer that exceeds 15 percent of the net receipts of the video
lottery game retailer. As used in this subsection, 'net receipts'
means the amount of money received by the video lottery game
retailer from the operation of video lottery games after payment
of prizes. + }
  SECTION 2.  { + The amendments to ORS 461.310 by section 1 of
this 2003 Act apply to any contract between the Oregon State
Lottery Commission and a video lottery game retailer entered into
or renewed on or after the effective date of this 2003 Act. + }
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