Committee reviews emergency rule for video lottery terminals; agency plans regular rulemaking

The Joint Legislative Committee on Administrative Rules discussed an emergency rule from the Lottery and Gaming Commission to allow video lottery terminals (VLTs) in locations where games of chance are permitted. Committee members heard from a division director and the agency’s rule writer, who said the emergency rule is intended as an interim measure while the commission prepares regular rulemaking.

Committee members were told the emergency rule builds on existing infrastructure the state has used for historic horse racing machines and that the department consolidated related provisions into a lengthy emergency package to ensure the regime would function immediately. A committee member said the emergency rule was unusually long for an emergency filing (133 pages were noted in the packet) but was told the agency plans a separate, regular rulemaking to create permanent, finalized rules.

Agency staff described the legal standard for emergency rulemaking under the statute cited in the discussion (referred to in the packet as 5 41 a 18), which allows emergency rules where there is an immediate harm to public health or safety or a potential for substantial fiscal harm to the state or its citizens. A committee member asked whether the department had precedent for invoking fiscal harm; staff said the decision is a department discretion and that they would research precedent and return with more background. One committee member noted the department’s fiscal‑impact analyses sometimes use thresholds (an example of $10,000 was mentioned conversationally) but no binding numeric threshold was identified in committee.

Valerie King, identified as the director of the division overseeing implementation and the rule writer for the Lottery and Gaming Commission, told the committee the agency “are already in the process of of finalizing our initial proposal, and we plan to bring that before our commission at their October meeting.” King said the emergency rule is meant to avoid “substantial fiscal harm to the state” by preserving expected revenue streams while permanent rules are prepared.

A committee member urged that the permanent rulemaking be undertaken with “all expedience” so the emergency measure can be replaced with rules specifically tailored to video lottery terminals.

No formal committee vote on the emergency rule was recorded in the transcript; the discussion closed with the agency indicating it will pursue regular rulemaking and present a proposal to its commission in October.