Amends TCA Title 4; Title 14; Title 38; Title 39; Title 47; Title 49 and Title 67.

This bill revises various provisions of the Tennessee Sports Gaming Act, as described below. Under present law, the lottery corporation sports wagering advisory council: (1) Advises the board of directors of the Tennessee education lottery corporation of best practices with respect to sports wagering; (2) Provides administrative and technical assistance to the corporation with respect to sports wagering; and (3) Carries out any other duties of the council as prescribed by the board or the Act. This bill deletes items (2) and (3) above and adds that the council will meet jointly with the board for purposes of promulgating rules (discussed below) and taking disciplinary action against a licensee under the Act. Under present law, the corporation and board enforce the Act and supervise compliance with laws and rules relating to the regulation and control of wagering on sporting events in this state. The board promulgates rules under the Act, and present law provides that the rules must be adopted, amended, or repealed in the same manner as the board adopts, amends, and repeals bylaws and regulations of the board for purposes of regulating the corporation's affairs and the conduct of corporate business. This bill requires the board and its employees and staff to provide administrative assistance to the council with respect to its duties under the Act, at the request of the council. This bill revises the rules provisions above to instead provide that the board and council, meeting jointly, will promulgate rules. This bill requires that a quorum of both the board and council, respectively, be present at the joint meeting for purposes of adopting rules. This bill also requires that rules be adopted by a majority of those present and voting and that the promulgated rules be amended or repealed in the same manner as the board and council adopt such rules. Present law requires the council to meet not less than quarterly, and authorizes the council to hold additional regular and special meetings at the call of the board. This bill removes the specification that the additional and special meetings be "at the call of the board." Under the Act, a licensee offering interactive sports wagering is subject to privilege tax of 20 percent on the licensee's adjusted gross income. This bill requires the board and council to promulgate rules to carry out the taxing and collection provisions of the Act. Under present law, fees collected from licensees under the Act must be used by the corporation to pay the actual operating and administrative expenses incurred under the Act. This bill adds that such expenses include those incurred by the board and council. Under present law, the board may investigate and conduct a hearing with respect to a licensee upon information and belief that the licensee has violated the Act, or upon the receipt of a credible complaint from any person that a licensee has violated the Act. The board must conduct investigations and hearings in accordance with rules adopted by the board. This bill revises these provisions to clarify that the board may call a hearing and, in regard to conducting hearings, the board will meet jointly with the council. This bill requires the board to consult with the council for purposes of establishing the date of a hearing called under these provisions, and requires that the hearings be held jointly, with a quorum present from each respective entity. Under this bill, final disciplinary action may be taken only by a majority vote of those present and voting. ON APRIL 22, 2021, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 588, AS AMENDED. AMENDMENT #1 rewrites this bill and revises various provisions of the Tennessee Sports Gaming Act, as described below. Under present law, the lottery corporation sports wagering advisory council: (1) Advises the board of directors of the Tennessee education lottery corporation of best practices with respect to sports wagering; (2) Provides administrative and technical assistance to the corporation with respect to sports wagering; and (3) Carries out any other duties of the council as prescribed by the board or the Act. Under present law, the corporation and board enforce the Act and supervise compliance with laws and rules relating to the regulation and control of wagering on sporting events in this state. The board promulgates rules in accordance with the Act. This amendment reverses the above duties of the council and the corporation. This amendment requires the council, in consultation with the board, to enforce the Act and supervise compliance with laws relating to the regulation and control of wagering on sporting events in this state. This amendment requires the council to promulgate rules in accordance with the Act. Under this amendment, the corporation will: (1) Assist the council regarding enforcement of the Act; (2) Advise the council of best practices with respect to sports wagering; and (3) Carry out any other duties as prescribed by the council or the Act. Under the Act, a licensee offering interactive sports wagering is subject to privilege tax of 20 percent on the licensee's adjusted gross income. This amendment requires the corporation to promulgate rules in accordance with the taxing and collection provisions of the Act. Under present law, the council meets not less than quarterly, and may hold additional regular and special meetings "at the call of the board." This amendment authorizes the council to hold additional or special meetings at the call of the chair. This amendment renames the "lottery corporation sports wagering advisory council" to be the "sports wagering advisory council." ON MAY 4, 2021, THE HOUSE SUBSTITUTED SENATE BILL 588 FOR HOUSE BILL 1267, ADOPTED AMENDMENT #2, AND PASSED SENATE BILL 588, AS AMENDED. AMENDMENT #2 rewrites this bill to transfer all powers and duties regarding the Tennessee Sports Gaming Act to the sports wagering advisory council. Under present law, the Tennessee lottery corporation sports wagering advisory council: (1) Advises the board of directors of the Tennessee education lottery corporation of best practices with respect to sports wagering; (2) Provides administrative and technical assistance to the corporation with respect to sports wagering; and (3) Carries out any other duties of the council as prescribed by the board or the Act. Under present law, the corporation and board enforce the Act and supervise compliance with laws and rules relating to the regulation and control of wagering on sporting events in this state. The board promulgates rules in accordance with the Act. This amendment transfers all powers and duties regarding the Tennessee Sports Gaming Act to the "sports wagering advisory council" (as renamed by this bill). Under this amendment the council will be an independent entity and subject to sunset review. The appointed members of the existing Tennessee education lottery corporation sports wagering advisory council will be transferred to the sports wagering advisory council to serve as the initial appointed members of the sports wagering advisory council, and will serve out their respective terms on the council until that time at which such terms would have expired while members of the Tennessee education lottery corporation sports wagering advisory council. A license or permit issued by the Tennessee education lottery corporation prior to the effective date of this bill as amended will remain valid on and after the effective date of this bill as amended, and will be deemed to be a license or permit issued by the sports wagering advisory council upon the promulgation of emergency or permanent rules by such council. Upon the promulgation of emergency or permanent rules by the sports wagering advisory council, the Tennessee education lottery corporation will transfer all remaining funds collected for the administration of the Act, to the sports wagering advisory council for the administration of the Act on and after January 1, 2022. Contracts executed by the Tennessee education lottery corporation under the Act prior to the effective date of this bill as amended, including, but not limited to, for purposes of regulating sports gaming and providing related services, will remain valid on and after the effective date of this bill as amended, and assigned to the sports wagering advisory council upon the promulgation of emergency or permanent rules by such council. Such contracts will remain in full force and effect until such time as the contracts expire by their original terms, at which time the contracts may be renewed with the sports wagering advisory council at the discretion of the parties. This bill will take effect upon becoming a law for purposes of promulgating rules and carrying out any administrative duties necessary to effectuate the provisions and intent of this bill as amended. This bill as amended will take effect on January 1, 2022, for all other purposes.