HB1223 — As Amended by the House

HB 1223 - AS AMENDED BY THE HOUSE

28Mar2024... 1218h

2024 SESSION

24-2620

11/10

HOUSE BILL 1223

AN ACT creating local options for games of chance.

SPONSORS: Rep. Roy, Rock. 31

COMMITTEE: Municipal and County Government

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AMENDED ANALYSIS

This bill gives municipalities a local option for games of chance.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

28Mar2024... 1218h 24-2620

11/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twenty Four

AN ACT creating local options for games of chance.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1  New Section; Local Option; Games of Chance.  Amend RSA 287-D by inserting after section 287-D:31 the following new section:

287-D:32  Local Option; Games of Chance.

I.  Any applicant applying to the lottery commission after July 1, 2024, for a game operator employer license under RSA 287-D to operate games of chance in a municipality who has not previously made an application for a game operator employer license in that municipality shall first obtain the approval of the municipality where the applicant seeks to operate games of chance.  Said approval shall be obtained from the town or city to allow the operation of games of chance according to the provisions of this subdivision, in the following manner:

(a)  In a town, the question shall be placed on the warrant of an annual town meeting under the procedures set out in RSA 39:3, and shall be voted on a ballot.  In a city, the legislative body may vote to place the question on the official ballot for any regular municipal election, or, in the alternative, shall place the question on the official ballot for any regular municipal election upon submission to the legislative body of a petition signed by 5 percent of the registered voters.

(b)  The selectmen, aldermen, or city council shall hold a public hearing on the question at least 15 days, but not more than 30 days before the question is to be voted on.  Notice of the hearing shall be posted in at least 2 public places in the municipality, on the website of the municipality, and by publication in a newspaper of general circulation at least 14 days before the hearing.

(c)  The wording of the question shall be substantially as follows: "Shall we allow the operation of games of chance within the town or city?"

II.  If a majority of those voting on the question vote "Yes," games of chance may be operated within the town or city.

III.  If the question is not approved, the question may later be voted upon according to the provisions of paragraph I as early as the next annual town meeting or regular municipal election.  Notwithstanding any other provision of law, including RSA 287-D:32, I and II, the requirement for obtaining local approval to apply for a license as a game operator employer shall not apply to:

(a)  Any game operator employer licensed by the lottery as of May 1, 2021 and still licensed as of the effective date of this act; or

(b)  Any applicant for a game operator license who applied to the lottery between January 1, 2023 and October 15, 2023.

IV.(a)  A city or town may rescind its approval for operation of games of chance under RSA 287-D or disallow such operation by following procedures in paragraph I in this section where one of the following exists:

(1)  A facility allowed to operate games of chance pursuant to this section that has not begun operation within 7 years of the grant of permission;

(2)  A facility that applied to the lottery for a game operator employer license prior to July 1, 2024 and has not begun operation within 7 years of the date of application approval or by July 1, 2024, whichever is later; or

(3)  A gaming operation where the operator has ceased its operation and does not reopen the operation in the same municipality for 7 years after such cessation; or where a facility exists that has been inoperative for the most recent 7 continuous years beginning any time after July 1, 2024.

(b)  The wording of the question shall be substantially as follows:  "Shall we prohibit the operation of games of chance within the town or city?" If 60 percent of those voting on the question vote "Yes,” the town or city shall not permit the operation of games of chance.

V.  An unincorporated place may allow the operation of games of chance by majority vote of the county delegation, after a public hearing is held.

VI.  In an unincorporated place, if no facility exists that was allowed to operate games of chance pursuant to this section, or which, having been licensed prior to July 1, 2024, has begun operation within 7 years of the grant of permission or the period starting July 1, 2024, whichever is later, or if there exists no facility in operation for the most recent 7 continuous years beginning any time after July 1, 2024, the delegation may consider rescinding its action or disallowing the operation in the same manner as paragraph V. with the requirement that a 60 percent “yes” vote would be required to rescind the action or disallow the operation.  

VII.  The lottery commission shall maintain a list of municipalities where games of chance are available.

VIII.  If the town, city, or unincorporated place has voted within this section to prohibit games of chance, that municipality may pass an ordinance allowing only a specified number of charitable gaming events per year, or certain number of dates per year to be determined by the town, hosted by local charitable organizations pursuant to RSA 287-D:4, and specifying how the municipality shall determine how charitable organizations register for a gaming event.

2  Effective Date.  This act shall take effect July 1, 2024.

LBA

24-2620

Amended 4/25/24

HB 1223- FISCAL NOTE

AS AMENDED BY THE HOUSE (AMENDMENT #2024-1218h)

AN ACT creating local options for games of chance.

FISCAL IMPACT:      [ X ] State              [    ] County               [    ] Local              [    ] None

METHODOLOGY:

This bill requires applicants seeking to open new games of chance locations to receive an approval from the town or municipality where it is located before beginning operations. The Lottery Commission states that this requirement does not apply to game operator employers who were licensed as of May 1, 2021, and are still licensed as of the effective date of the bill, or to applications for game operator employer licenses submitted between January 1, 2023, and October 15, 2023. The Commission understands that the municipality may revoke an approval to operate if a facility is not operating within seven (7) years of either the municipal approval, the Lottery Commission application approval, or the closure of the facility. The Commission assumes that the proposed legislation will decrease the number of games of chance facilities that may be opened in the future as it creates an additional barrier to entry to the market. The Commission cannot determine how many games of chance facilities will be impacted by this requirement. It anticipates that the revenue impact from this bill would be negative to the State, however, the exact impact cannot be determined. The Commission assumes that the fiscal impact is limited as the proposed legislation still allows for approximately 19 games of chance facilities with the potential to open more with municipal approval. Any additional facilities that may have been added but for this legislation would be anticipated to have a minor impact on the overall gaming market.

AGENCIES CONTACTED:

Lottery Commission