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Program E: Gaming

Program Authorization: R.S. 27:1 et seq.; R.S. 4:141 et seq.; R.S. 33:4861.1 et seq.; and R.S.47;9001 et seq.

PROGRAM DESCRIPTION

The mission of the Gaming Program (organizationally expressed as the Gaming Division) is to serve the Louisiana Gaming Control Board and other client agencies in a manner that creates a regulatory atmosphere for licensed gaming and instills public confidence and trust that gaming activities are conducted honestly and are free from criminal and corruptive elements; to ensure the integrity of individual gaming entities by the regulation of persons, practices, associations, and activities within the gaming industry; and to anticipate and support necessary corrective rulemaking and legislation.

The goals of the Gaming Program are:

1. Provide superior legal and professional services to the State of Louisiana.

2. Improve cooperative working relationships with federal, state, and local agencies and private sector organizations.

The Gaming Program has responsibilities related to: Louisiana Gaming Control Board, Riverboat and Video Poker, Louisiana Lottery Corporation, Live Racing Facility Slot Machine Gaming, State Racing Commission, Charitable Gaming Control, Land-Based Casino, and Indian Gaming.

The Gaming Program assists the Louisiana Gaming Control Board by providing superior representation, legal advice in areas of land-based casino, riverboat, charitable, live racing facility slot machine, charitable, and video poker gaming, and gaming on Indian lands; including licensing, enforcement, and rulemaking, prosecuting administrative actions, involving denials of applications, suspensions, revocations, and civil penalties. The Gaming Program also assists in the review of files and applications. The Gaming Program also represents the Board and State Police in judicial appeals of administrative actions and defends the Board and State Police in other civil litigation related to gaming.

The Gaming Program attends meetings of the Louisiana Lottery Corporation (LLC) providing legal advice and counsel on an as needed basis to the LLC on wide-ranging concerning the operation of the Lottery in accordance with statutory provisions. The Gaming Program also participates in the review of Requests for Proposals issued by the lottery for the soliciation of services to the LLC. Additionally, the Gaming Program provides legal defense in certain matters instituted against the LLC.

The Gaming Program provides to the State Racing Commission legal representation and counsel to the Racing Commission in all matters regarding the regulation of the horse racing industry, pari mutual wagering, off-track wagering. The Gaming Program prosecutes administrative actions on behalf of the Commission and defends the Commission in all civil litigation to which it is a party.

OBJECTIVES AND PERFORMANCE INDICATORS

1. In FY 1998-99, the Gaming Program will reduce the average time required to review and process video poker application files by approximately 5%.

1 The numbers of application fees reviewed and processed for FY 1996-97 are based on only captured figures which are less than the actual numbers of files reviewed and processed. The numbers of application files reviewed and processed for FY 1997-98 are projected from figures obtained from July 1, 1997, through November 5, 1997.

2 The number of administrative hearings held during FY 1996-97 is for a nine month period from September 23, 1997, through June 30, 1997. The number of hearings estimated for FY 1997-98 is based on actual figures for the six-month period of April 1 - October 31, 1997.

Explanation Note: Data on the number of violation reports reviewed, number of administrative action letters drafted/issued, and number/percentage of administrative cases closed have not been collected in the past. This information will be collected and reported by the department beginning in FY 1997-98.

2. In FY 1998-99, the Gaming Program will increase the percentage of riverboat gaming cases closed during the fiscal year by 5%.

1 As of November 1997, 13 of the 15 statutorily authorized riverboats were in operation. It is anticipated that all 15 riverboats may be in operation prior to the end of FY 1998-99, in which case the number of employee files being reviewed and administrative hearings held will increase significantly.

2 No prior year actual data exist for this indicator. Data are being collected beginning in FY 1997-98. Figures for FY 1997-98 and FY 198-99 are estimates.

3 The number of administrative hearings during FY 1996-97 is based on a nine-month period (from September 23, 1997, when the first hearings were held by the Louisiana Gaming control Board, to June 30, 1997. This number includes employee and violation hearings. For FY 1997-98, the number of administrative hearings held is estimated, based on figures from the six-month period proceeding preparation of FY 1998-99 operational plan.

4 The FY 1997-98 number of judicial appeals is estimated, based on 13 appeals filed as of November 5, 1997.

Explanatory Note: Data for an outcome indicator, "Percentage of administrative cases closed," are being collected by the department beginning in FY 1997-98. Other data to be collected by the department include: number of violation reports reviewed and number of administrative letters drafted/issued.

3. In FY 1998-99, the Gaming Program will hold the number of charitable gaming administrative hearings below the level of FY 1995-96 (when 43 administrative hearings were held) by conducting prehearing conferences.

1 During FY 1995-96, 43 administrative hearings were held. This number has been reduced as a result of informal meetings held by the Charitable Gaming Division with licensees.

4. In FY 1998-99, the Gaming Program will close at least three judicial appeals related to the State Racing commission and hold the number of racing-related judicial appeals filed below the level of the cases (9) filed in FY 1995-96.

1 Since the number of pending appeals has been reduced, the number susceptible to being closed in the future is likewise reduced.

2 Nine racing-related judicial appeals were filed in FY 1995-96.

5. In FY 1998-99, the Gaming Program will reduce the average time required to review and process live racing facility slot machine gaming application files by 5% and increase the percentage of live racing facility slot machine gaming administrative cases closed by 5%.

`Explanatory Note: Act 721 of 1997 authorizes slot machines gaming at live horse racing facilities under regulation of the Louisiana Gaming Control Board contingent upon local approval. Significant work will be required of the Gaming Division involving all legal aspects including drafting of rules and regulations. Licensing of facilities, manufacturers, distributors, employees, etc. and representing the Gaming Control Board in administrative hearings and litigation. The following performance have no prior history but will be captured and used for future budgets and operational plans:

Average time to process application files (in days)

Percentage of administrative cases closed

Number of application files reviewed

Number of application files processed

Number of violation reports reviewed

Number of administrative hearings held

Number of administrative action letters drafted/issued.

RESOURCE ALLOCATION FOR THE PROGRAM

SOURCE OF FUNDING

This program is funded with interagency transfers, fees and self-generated revenues and statutory dedications. Interagency transfers are derived from various state agencies for investigative and legal services. Self-generated revenues are derived from the Louisiana Lottery Corporation and the Louisiana Gaming Control Board for investigative and legal services. Statutory dedications, from the Riverboat Enforcement Fund, were for providing legal counsel and legal representation for the gaming regulatory entities and activities in the State of Louisiana. (Per R.S.39:32b.(8), see table below for a listing of expenditures out of each statutory dedicated fund.)

ANALYSIS OF RECOMMENDATION

GENERAL FUND

TOTAL

T.O.

 

DESCRIPTION

 

 

 

 

 

$0

$3,761,363

43

 

ACT 18 FISCAL YEAR 1997-1998

 

 

 

 

 

 

 

 

 

BA-7 TRANSACTIONS:

$0

$4,500

0

 

Carryforward for professional services contract for computers

 

 

 

 

 

$0

$3,765,863

43

 

EXISTING OPERATING BUDGET - December 10, 1997

 

 

 

 

 

$0

($4,500)

0

 

Non-Recurring Carryforward for professional services contract for computers

$0

($10,000)

0

 

Equipment/Major Repairs Adjustment(s)

$0

($7,812)

0

 

Retirement Rate Adjustment(s)

$0

$90,000

 

 

Implementation of agency's unclassified attorneys pay schedule

 

 

 

 

 

$0

$3,833,551

43

 

TOTAL RECOMMENDED

 

 

 

 

 

$0

$67,688

0

 

DIFFERENCE (TOTAL RECOMMENDED AND EXISTING OPERATING BUDGET)

The total means of financing for this program is recommended at 101.7% of the existing operating budget. It represents 1107.8% of the total request ($3,554,026) for this program. The net increase is due to increased funding to provide for the implementation of agency's unclassified attorneys pay schedule, the retirement rate reduction and the removal of funding for nonrecurring carryforward and acquisitions.

PROFESSIONAL SERVICES

$1,315,479

 

Legal services costs for expert witnesses, taking depositions and other legal expenses

 

 

 

$1,315,479

 

TOTAL PROFESSIONAL SERVICES

OTHER CHARGES

$77,725

 

Funds needed to pay depositions and court costs of cases handled by this office

 

 

 

$77,725

 

TOTAL OTHER CHARGES

 

 

 

 

 

Interagency Transfers:

$6,255

 

Maintenance of state buildings

 

 

 

$6,255

 

TOTAL INTERAGENCY TRANSFERS

ACQUISITIONS AND MAJOR REPAIRS

This Program Does Not Have Funding for Acquisitions and Major Repairs for Fiscal Year 1998-1999.


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