COMPULSIVE GAMING PREVENTION ACT - S.B. 570 (S-1): FLOOR ANALYSIS

Senate Bill 570 (Substitute S-1 as reported by the Committee of the Whole)

Sponsor: Senator Michael J. Bouchard

Committee: Gaming and Casino Oversight

CONTENT

The bill would create the "Compulsive Gaming Prevention Act"; create the "Compulsive Gaming Prevention Fund" and direct money into the Fund from casinos, the State lottery, and horse racing; require that $40,000 from the Fund be distributed to the Domestic Abuse Council; provide that the Director of the Department of Community Health (DCH) would have to distribute the remaining funds exclusively for the treatment, prevention, education, training, research, and evaluation of pathological gamblers and their families and to fund the toll-free compulsive gaming helpline number; allow the DCH to establish fees for the treatment of pathological gambling addictions; and allow the Gaming Control Board to assess a fee on each of the three casinos licensed under the Michigan Gaming Control and Revenue Act, equal to the amount needed to fund services, programs, and research if the DCH Director determined that money in the Compulsive Gaming Prevention Fund was inadequate to fund the services, programs, and research required under the bill.

The bill states that, "It is the intent of the legislature to preserve the funds appropriated for the department of community health for the treatment of individuals pursuant to the mental health code", and that, therefore, public funds for the treatment of "pathological gamblers" would have to be taken exclusively from the Fund created under the bill. A "pathological gambler" would be an individual with a severe, persistent, and recurrent maladaptive gambling behavior that disrupted personal, family, or vocational pursuits.

The bill is tie-barred to Senate Bill 569, which would amend the Gaming Control and Revenue Act.

- Legislative Analyst: G. Towne

FISCAL IMPACT

The Compulsive Gaming Prevention Fund, under this bill, would receive $1.0 million in FY 1997-98 from the State lottery and the racetracks. In FY 1998-99, three casinos in Detroit are expected to open and the Compulsive Gaming Prevention Fund would receive $12.1 million from the State lottery, the racetracks, and the casinos.

The three casinos, however, could be assessed a fee to equal additional costs to adequately fund the services, programs, and research required under the bill if the Director of the Department of Community Health determined that the money in the Compulsive Gaming Prevention Fund was inadequate.

Date Completed: 6-10-97 - Fiscal Analyst: R. Ross

- A. Rich

- P. Graham

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This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.