SB198 — Version 100

2/14/02 2228s

2001 SESSION

01-0663

08/10

SENATE BILL 198-FN-A

AN ACT establishing a gaming oversight authority, and video lottery gaming.

COMMITTEE: Ways and Means

AMENDED ANALYSIS

This bill provides for video gambling to be regulated, establishes the division of gaming enforcement, and establishes the gaming oversight authority. This bill determines the disbursement of all proceeds of video gambling with 60 percent of the proceeds being used to reduce the state property tax and provides money for the general fund, and establishes new funds for school construction and rehabilitation, and for gambling addiction and prevention.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

2/14/02 2228s

01-0663

08/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand One

AN ACT establishing a gaming oversight authority, and video lottery gaming.

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

1 New Chapter; Gaming Oversight Authority and Video Lottery. Amend RSA by inserting after chapter 287-F the following new chapter:

CHAPTER 287-G

GAMING OVERSIGHT AUTHORITY AND VIDEO LOTTERY

287-G:1 Definitions. In this chapter:

I. "Centralized data provider" means a provider of centralized gambling data, selected by the gaming oversight authority.

II "Facilities applicant" means the entity, which will participate and apply for a facilities license, as applicable.

III. "Facilities licensee" means an applicant who is issued a license by the gaming oversight authority to provide facilities and support to state operated video lottery locations.

IV. "Facilities license" means the license issued by the gaming oversight authority to a facilities licensee.

V. "Gaming oversight authority" means the authority established by RSA 287-G:2.

VI. "Sweepstakes commission" means the New Hampshire sweepstakes commission as established by RSA 284:21-a.

VII. "Technology provider" means any person or entity which designs, manufactures, installs, distributes, or supplies video lottery machines for lease to the state for conducting video lottery games in accordance with this chapter.

VIII. "Token" means the coin, which is not legal tender, sold by a cashier in a face amount equal to the cash paid by a player for the sole purpose of playing a video lottery machine at a licensed facility, which can be exchanged for cash at the same facility where the video lottery machines are located.

IX. "Video lottery machines" means an electronic, mechanical, or computerized machine licensed by the gaming oversight authority which, upon the insertion of cash or tokens is available to be played where, by chance or skill, or both, the player may receive cash or tokens. Video lottery machines include, but are not limited to, slot machines, video poker machines, and other lottery machines. Video lottery machines shall not include any redemption slot machines and redemption poker machines as defined in RSA 647 or video poker machines or other similar machines used for amusement purposes only.

X. "Video lottery employee" means a person employed by the state in the operation of a video lottery location, including without limitation, cashiers; floormen; machine mechanics; security personnel or inspectors; and supervisors or managers.

XI. "Video lottery location" means a state operated facility authorized by the local community that contains video lottery machines operated in accordance with this chapter.

287-G:2 Gaming Oversight Authority.

I. There is hereby established the New Hampshire gaming oversight authority. The gaming oversight authority shall consist of the commissioner of safety, the commissioner of the department of resources and economic development, and the commissioner of revenue administration, or their respective designees. The commissioner of safety shall serve as the chairperson of the gaming oversight authority.

II. The gaming oversight authority or designee shall exclusively establish, staff, manage, and operate video lottery locations at facilities licensed under the provisions of this chapter. The gaming oversight authority or designee shall operate the video lottery locations at a facility provided by the facilities licensee which contains non-gaming resources such as, dining, liquor, hotel, and any other support resource approved by the gaming oversight authority. The facilities licensee shall, at a minimum, provide and pay for heat, electricity, water, sewer, and maintenance for which the facilities licensee shall receive remuneration pursuant to RSA 287-G:14, III.

III. No license shall be issued to any person under this chapter without the approval of the gaming oversight authority. The gaming oversight authority shall issue licenses only after completion of the investigations set forth in this chapter. All license applications shall be approved or denied no later than 180 days from the date of application. No license issued under the provisions of this chapter shall be assigned, transferred or sold.

IV. The gaming oversight authority shall have general responsibility for the implementation of this chapter and shall adopt rules under RSA 541-A relative to:

(a) Hearing and deciding all license applications or recommendations for the suspension or revocation of any license.

(b) Conducting all investigations required with regard to the application, suspension, or revocation of any licensee or applicant.

(c) Conducting hearings pertaining to administrative violations or rules and collecting all penalties assessed under the provisions of this chapter.

(d) Establishing standards and a reasonable fee structure for the licensing and renewal of licenses for facilities.

(e) Establishing standards and a reasonable fee structure for the licensing and renewal of licenses for technology providers.

(f) Establishing technical standards for approval of video lottery machines, including mechanical and electrical reliability and security against tampering, as it may deem necessary to protect the public from fraud or deception and to ensure the integrity of operation.

(g) Establishing criteria for licensing, suspension, and revocation.

(h) Such other rules that may be necessary to implement this chapter.

V. The gaming oversight authority shall have the authority to issue subpoenas and compel the attendance of witnesses, to administer oaths, and require testimony of witnesses under oath.

VI. Pending the adoption of rules under RSA 541-A, and notwithstanding RSA 541-A:2, the gaming oversight authority shall adopt interim rules including provisions for the publication of public notice of the period of time for the submission of facilities license applications and after public hearing and within 60 days of the effective date of this chapter. Such interim rules shall automatically expire upon the adoption of rules under RSA 541-A.

VII. No later than March 31 in each calendar year, the gaming oversight authority shall provide a report to the fiscal committee of the general court, regarding the operation of video lottery machines. Such report shall include any recommendations for legislation and any community concerns.

VIII. (a) The gaming oversight authority shall make and keep records of all proceedings of its public meetings. A copy of the transcript shall be made available to any person upon request and payment of the costs of preparing a copy.

(b) The gaming oversight authority shall keep and maintain a list of all license applicants and a record of all actions taken with respect to each applicant. A file and record of the actions by the gaming oversight authority shall be open to public inspection provided, however, that the information regarding any applicant whose license or registration has been denied, revoked, or not renewed shall be removed from such list after 5 years from the date of such action.

(c) The gaming oversight authority shall maintain such other files and records as it deems necessary. All records maintained by the gaming oversight authority may be maintained in digital format or other technology, provided that such information is capable of being produced in written form.

(d) All information and data obtained by the gaming oversight authority shall be confidential and shall not be revealed in whole or in part except as otherwise provided by law, or upon the lawful order of a court of competent jurisdiction, or with the approval of the attorney general, to a duly authorized law enforcement agency.

(e) Notice of the contents of any information or data released, except to a duly authorized law enforcement agency pursuant to subparagraph (d), shall be given to any applicant, registrant, or licensee in a manner prescribed by the rules adopted by the gaming oversight authority.

IX. The gaming oversight authority may contract for and procure financial, economic, or security consultants and any other technical and professional services as the authority deem necessary.

287-G:3 Restrictions. No member or employee of the gaming oversight authority, the sweepstakes commission, the department of revenue administration, the department of resources and economic development, or the department of safety shall have a fiduciary interest in any technology provider, facilities licensee, or centralized data provider.

287-G:4 Licensure of Technology Provider and Centralized Data Provider. No technology provider or centralized data provider shall engage in the business of providing, installing, or repairing video lottery machines used in this program without a license issued by the gaming oversight authority.

287-G:5 Restriction on Technology and Centralized Data Provider. No technology provider or centralized data provider or their employees shall be entitled to operate video lottery machines within the state.

287-G:6 Restriction of Minors.

I. No person under the age of 21 shall play a video lottery machine authorized by this chapter.

II. No member or employee of any video lottery location, the sweepstakes commission, department of safety, the attorney general's office, or the gaming oversight authority shall knowingly permit a person under the age of 21 to play or participate in any aspect of the playing of a video lottery machine.

III. Each violation of this section shall be punishable by a fine of no more than $1,000 and shall be payable by such person who violates paragraph I.

IV. Each violation of this section shall be punishable by a fine of no more than $1,000 and shall be payable by the employee or operator licensee that is found to have violated paragraph II.

287-G:7 Penalty for Tampering or Manipulating. Any person who, with the intent to manipulate the outcome, payoff, or operation of a video lottery machine, manipulates the outcome, payoff, or operation of any video lottery machine by physical, electronic, or mechanical means, shall be guilty of a class B felony.

287-G:8 Video Lottery Machine Requirements.

I. No video lottery machine shall be used to conduct gaming unless it is identical in all electrical, mechanical, and other aspects to a model, which has been specifically tested and licensed for use by the sweepstakes commission.

II. All video lottery machines in operation shall pay out at least 87 percent on an annual basis.

III. The gaming oversight authority shall establish the days and hours of operation of video lottery locations and shall not be restricted by the facilities licensee.

287-G:9 Licenses; Number of Video Lottery Machines.

I. In the initial 12 months from the effective date of this chapter, the number of video lottery machines statewide shall be limited to 3,500 to be distributed at the discretion and judgment of the gaming oversight authority, but in no case shall a single location have more than 800 machines or fewer than 300 machines.

II. Beginning 12 months after the effective date of this chapter, the gaming oversight authority may increase or decrease the number of video lottery machines present at a facilities licensee location, although the total number of machines statewide may not exceed 5,500 and no video lottery location shall possess more than 25 percent of the total number of statewide machines. The determination shall be made after careful and due consideration of the economic conditions, including but not limited to, the performance of a particular facilities licensee location that is operating video lottery machines, the present market conditions, and seasonal increases in tourism.

III. The gaming oversight authority shall issue not more than a total of 8 facilities licenses in the state of New Hampshire. Eligibility shall be based on, but not limited to the following:

(a) Evidence provided by the applicant that the applicant has received any required local approval.

(b) Regional location of prospective facilities licensee.

(c) A detailed economic plan, filed with the gaming oversight authority, for the municipality and the surrounding region where the prospective facilities licensee is located with supporting documentation to explain the following:

(1) Unemployment in the area.

(2) Direct and indirect employment gain.

(3) Effect on tourism based economy.

(4) Effect on regional economic development.

(5) Tourist trends.

(d) A business plan, filed with the gaming oversight authority, to support video lottery machines.

(e) Qualifications of those persons who own or manage the prospective facilities licensee facility.

(f) Regional population.

(g) Vehicle traffic.

(h) Total square footage of the facility and total acreage of such facility.

(i) Availability of suitable infrastructure.

(j) Availability of adequate parking.

(k) Other information that the gaming oversight authority may require.

287-G:10 Application and License Requirements.

I. A facilities licensee applicant shall obtain a facilities license from the gaming oversight authority. An applicant shall complete and sign an application on the forms prescribed by the gaming oversight authority. The application shall include the full name, residence, date of birth, and other personal identifying information of the applicant, and if a corporation or other form of business enterprise, the same information shall be provided with respect to each partner, trustee, officer, director, and any shareholder or other holder who owns more than 5 percent of the legal or beneficial interests of such entity. All such business entities shall be registered with the secretary of state.

II. The gaming oversight authority shall refer applications to the attorney general who shall conduct an investigation. The investigation may be conducted through any appropriate state or federal law enforcement system and may seek information as to the applicant's financial, criminal or business background, or any other information which the attorney general, in his or her sole discretion, may deem relevant to the subject's fitness to be associated with the ownership or management of the operation of a facilities licensee in New Hampshire, including but not limited to, the subject's character, personal associations, and the extent to which the subject is properly doing business in the manner in which it purports to operate. The attorney general shall report the results of the investigation to the gaming oversight authority within 90 days after the receipt of the application. Notwithstanding any other law to the contrary, the results of any such investigation shall be confidential and shall not be subject to disclosure or to public inspection.

III. In any investigation conducted pursuant to paragraph II, the attorney general or any duly authorized member of the attorney general's staff may subpoena the attendance of witnesses and require the production of such correspondence, documents, books and papers as deemed advisable, and for purposes of this section, may administer oaths and take the testimony of witnesses.

287-G:11 Licensure Requirements.

I. No facilities license shall be issued by the gaming oversight authority unless the applicant has proven to the satisfaction of the gaming oversight authority by clear and convincing evidence:

(a) The financial stability based on audited financial statements, integrity, and responsibility, considering, without limitation, bank references, business and personal income and disbursement schedules, tax returns and other reports filed with governmental agencies, and business and personal accounting and check records and ledgers.

(b) The trustworthiness and good reputation of all financial backers, investors, mortgagees, bondholders, and holders of indentures, notes and other evidences of indebtedness of the applicant.

(c) The good character, honesty and integrity, considering, without limitation, information pertaining to reputation, criminal record, business activities, and financial affairs covering at least the 10 year period immediately preceding the filing of the application.

(d) In addition, no facilities license shall be issued by the gaming oversight authority to any applicant unless the applicant has proven to the satisfaction of the gaming oversight authority by clear and convincing evidence that each director, officer or similar principal employee and each direct or indirect owner satisfies the standards for licensure contained in RSA 287-G:10.

(e) The gaming oversight authority may, in its discretion, waive the qualification requirement for any such person who is not significantly involved in the activities of the applicant, does not have the ability to significantly influence or control the applicant, or for other good cause, only when written justification is provided.

(f) Except as provided in this chapter, no person who owns, directly or indirectly, legally or beneficially, 5 percent or less of the equity securities or 50 percent or less of the outstanding debt securities of a publicly traded holding company of an applicant for a facilities license shall be required to be qualified pursuant to the provisions of this section prior to the issuance of such a license to the applicant.

(g) If a facilities licensee has 25 or fewer holders of its equity securities, either directly or indirectly, legally or beneficially, then each such holder shall satisfy the standards of this chapter.

II. No technology provider's license shall be issued by the gaming oversight authority after recommendation by the sweepstakes commission unless the applicant has demonstrated to the satisfaction of the gaming oversight authority by clear and convincing evidence that it satisfies the standards contained in paragraph I of this section. The sweepstakes commission shall establish the form of application that shall be completed by each applicant for a technology provider's license. Each technology provider license applicant shall be subject to the investigation set forth in RSA 287-G:10 except that all investigatory reports shall be provided to the sweepstakes commission and the gaming oversight authority.

III. All information and data required by the gaming oversight authority, the sweepstakes commission, or the division of gaming enforcement to be furnished pursuant to this chapter, or which may otherwise be obtained by the gaming oversight authority, the sweepstakes commission, or the division of gaming enforcement in the performance of their duties under this chapter, except information regarding net machine income, shall be considered to be confidential and shall not be revealed in whole or in part except as otherwise provided by law, or upon the lawful order of a court of competent jurisdiction, or with the approval of attorney general, to a duly authorized law enforcement agency.

287-G:12 License and Investigation Fees. A non-refundable license application fee for each class or type of license to be issued under this chapter shall be $150,000.

287-G:13 Term of License. Any facilities license or technology provider's license issued pursuant to this chapter and any renewal thereof shall be valid for 5 years unless earlier suspended or revoked by the gaming oversight authority.

287-G:14 Distribution of Net Machine Income. Net machine income generated by a facilities licensee shall be distributed and paid as follows:

II. Fifteen percent of the net machine income shall be paid to the department of safety to be used to pay for the establishment and administration of the division of gaming enforcement.

III. Eight percent of the net machine income shall be paid to the facilities licensee as a gross lease.

IV. Six percent of the net machine income shall be paid to the technology provider for the leasing and maintenance of the video lottery machines.

V. Five percent of the net machine income shall go to the school construction and rehabilitation fund established in RSA 287-G:20.

VI. Two and one half percent of the net machine income shall be evenly distributed to the ten counties to help reduce the county tax.

VII. Two percent of the net machine income shall be paid to the centralized data provider to carry out the responsibilities outlined in this chapter.

VIII. One percent of the net machine income shall be paid to the city or town where the facilities licensee facility is located. Revenues will be distributed based on the number of video lottery machines in that location.

IX. One half of one percent of the net machine income shall be deposited in the gambling addiction prevention fund established in RSA 287-G:21.

X. Any unused portion of moneys disbursed pursuant to paragraphs II-IX shall be deposited in the general fund.

287-G:15 Gaming Oversight.

I. The gaming oversight authority or the division of gaming enforcement shall be present at all facilities licensee location at which video lottery machines are operated by the state at all times whether the facility is open to the public or not.

II. The division of gaming enforcement shall be present at all times when a video lottery machine is opened to remove or insert any drop box, hopper, or other mechanism containing money, tokens, or other items of value. The division of gaming enforcement shall be present in the count room at all times that money, tokens or other items of value utilized in video lottery machines are counted.

287-G:16 Penalties.

I. The gaming oversight authority shall have the sole and exclusive authority, following appropriate hearings and factual determinations, to impose penalties against any person for any violation of this chapter or any rule of the gaming oversight authority or the sweepstakes commission, adopted under the provisions of this chapter.

II. The gaming oversight authority shall have the authority to impose penalties upon any person for any violation of this chapter or the rules of the gaming oversight authority as follows:

(a) Revocation or suspension of a license.

(b) Administrative penalties as may be necessary to punish misconduct and to deter future violations, which penalties may not exceed $50,000 for each violation.

(c) Order restitution of any moneys or property unlawfully obtained or retained by a person.

(d) Issue a cease and desist order, which specifies the conduct, which is to be discontinued, altered, or implemented by the person.

(e) Issue letters of reprimand or censure, which letters shall be made a permanent part of the file of each person so sanctioned.

(f) Impose any sanctions provided in this paragraph individually or in combination.

III. In determining appropriate sanctions in a particular case, the gaming oversight authority shall consider:

(a) The risk to the public and to the integrity of the video lottery machine operations.

(b) The seriousness of the conduct of the person and whether the conduct was purposeful or with knowledge that it was in contravention of the provisions of this chapter or the rules of the gaming oversight authority.

(c) Any mitigating circumstances for such conduct.

(d) The prior history of the person involved.

(e) The corrective action taken by the person to prevent future misconduct of a like nature from occurring.

(f) In the case of a monetary penalty, the amount of the penalty in relation to the severity of the misconduct and the financial means of the person.

(g) Notwithstanding the foregoing, in the event that a person receives 2 administrative penalties each in the amount of $50,000 during the term of such person's license, the gaming oversight authority shall either revoke the license for the balance of the term of the license or suspend such license for a period of 60 days, as determined by the gaming oversight authority.

287-G:17 Procedures for Adoption by Local Community.

I. Any town or city in which a facilities licensee location is situated may adopt the provisions of RSA 287-G, to allow the operation of electronic games of chance, in the following manner:

(a) In a town, the question shall be placed on the warrant of a special or annual town meeting under the procedures set out in RSA 39:3, and shall be voted on a ballot; provided, however, if the question is placed on the warrant at a special town meeting, it shall be the only question at such special town meeting. 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 and published in a newspaper of general circulation at least 7 days before the hearing.

(c) The wording of the question shall be substantially as follows: "Shall we adopt the provisions of RSA 287-G, allowing the operation of electronic games of chance at the licensed facility located within the town and operated by the state?"

II. If a majority of those voting on the question vote "Yes," RSA 287-G shall apply within the city or town.

III. If the question is not approved, the question may later be voted upon according to the provisions of paragraph I, provided, however, that the town may consider the question at no more than one special town meeting and the annual town meeting in the same calendar year.

IV. Alternatively, the selectmen or city council may themselves adopt the provisions of RSA 287-G with a 60 percent majority vote.

287-G:18 Declaration of Limited Exemption. Pursuant to section 2 of an act of Congress of the United States entitled "An act to prohibit transportation of gambling devices in interstate and foreign commerce," approved January 2, 1951, being Chapter 1194, 64 Stat. 1134, and also designated as 15 U.S.C. sections 1171-1177, the state of New Hampshire, acting by and through the duly elected and qualified members of its legislature, does hereby, in accordance with and in compliance with the provisions of that section 2 of that act of Congress, declare and proclaim that section 2 of that act of Congress shall not apply to any gambling device in this state where the transportation of such a device is specifically authorized by and done in compliance with the provisions of this chapter and any rules adopted pursuant to it, and that any such gambling device transported in compliance with state law and rules shall be exempt from the provisions of that act of Congress.

287-G:19 Legal Shipment of Gaming Devices into New Hampshire. All shipments into this state of gaming devices, the registering, recording and labeling of which has been duly made by the manufacturer or dealer in accordance with sections 3 and 4 of an act of Congress of the United States entitled "An act to prohibit transportation of gambling devices in interstate and foreign commerce," approved January 2, 1951, being chapter 1194, 64 Stat. 1134, and also designated as 15 U.S.C. sections 1171-1172, shall be deemed legal shipments into this state.

287-G:20 School Construction and Rehabilitation Fund Established.

I. There is established a school construction and rehabilitation fund in the state treasury. The fund shall only be used for school construction and rehabilitation projects and expenses relating to such projects. The commissioner of the department of education shall adopt rules pursuant to RSA 541-A, relative to disbursement of funds.

II. All fees collected under RSA 287-G:14, V shall be credited to the fund established in paragraph I.

287-G:21 Gambling Addiction Prevention Fund.

I. A gambling addiction prevention fund shall be established in the state treasury. The fund shall only be used for gambling addiction prevention projects and expenses relating to the projects and shall be administered by the department of health and human services. The commissioner of the department of health and human services shall adopt rules relative to the use of funds.

II. All fees collected under RSA 287-G:14, IX shall be credited to the fund established in paragraph I.

287-G:22 Property Tax Reduction Fund. There is hereby established in the office of the state treasurer the property tax reduction fund, which shall be kept separate and distinct from all other funds. Revenue collected under RSA 287-G:14, I shall be deposited in this revolving, non-lapsing fund for the sole purpose of providing reduction of property taxes.

I. The commissioner of revenue administration shall include available moneys in the fund not to exceed $166,000,000 in the education property tax calculation required under RSA 76:8, and the same amount shall be transferred to the education trust fund in lieu of property taxes that would otherwise be collected under RSA 76:3.

II. Any remaining moneys in the fund that exceed the amount referenced in paragraph one shall be deposited in the general fund.

2 Commissioner's Warrant. Amend RSA 76:8, I to read as follows:

I. The commissioner of revenue administration shall annually calculate the proportion of education property tax to be raised by each municipality by multiplying the uniform education property tax rate by the total equalized value of all property in the municipality as determined under RSA 21-J:3, XIII for the preceding year, except property taxable under RSA 82 or RSA 83-F. The property tax to be raised by each community shall be proportionately reduced by the application of moneys in the education property tax reduction fund pursuant to RSA 287-G:22, I.

3 New Paragraphs; Application of Receipts. Amend RSA 6:12, I by inserting after paragraph (iiii) the following new paragraphs:

(jjjj) Moneys deposited in the school construction and rehabilitation fund established in RSA 287-G:20.

(kkkk) Moneys deposited in the gambling addiction prevention fund established in RSA 287-G:21.

(llll) Moneys deposited in the property tax reduction fund established in RSA 287-G:22.

4 New Section; Sweepstakes Commission Supervision of Gaming Oversight Authority. Amend RSA 284 by inserting after section 21-j the following new section:

284:21-k Duties of the Sweepstakes Commission; Gaming Oversight Authority. The sweepstakes commission shall:

I. Hear and make recommendations to the gaming oversight authority all license applications for technology providers and centralized data providers.

II. Collect all license fees imposed upon any applicant and all taxes imposed by this chapter.

III. Certify net machine income by inspecting records, conducting audits, having its agents on site, or by other reasonable means.

IV. Establish a central computer system at a location designated by the gaming oversight authority linking all video lottery machines to a central mainframe to ensure control over the video lottery machines.

V. Enter into lease agreements with up to 3 technology providers to provide video lottery machines to the state. Lease agreements shall provide that the technology provider supply the quantity and quality of video lottery machines determined by the sweepstakes commission and the gaming oversight authority in a timely and efficient manner, and shall be paid with a percentage of the net machine income, as provided in RSA 287-G:14, IV. The technology provider shall provide all maintenance and service of its video lottery machines at no additional charge or fee to the state. Each agreement shall also provide that the technology provider shall be required to replace 30 percent of its video lottery machines on a yearly basis, based on the machine's revenue production.

VI. Establish technical standards for approval of video lottery machines, including mechanical and electrical reliability and security against tampering, as it may deem necessary to protect the public from fraud or deception and to ensure the integrity of the operation.

VII. The sweepstakes commission shall have the authority to issue subpoenas and compel the attendance of witnesses, to administer oaths and to require testimony under oath.

VIII. Not later than March 31 in each calendar year of this program, provide a report to the gaming oversight authority and legislative fiscal committee regarding the generation of revenues of video lottery machines.

IX. The sweepstakes commission shall cause to be made and keep a record of all proceedings held at public meetings of the sweepstakes commission. A copy of the transcript shall be made available to any person upon request and payment of the costs of preparing the copy.

X. The sweepstakes commission shall keep and maintain a list of all technology provider applicants and licensed technology providers together with a record of all actions taken with respect to such applicants. A file and record of the actions by the sweepstakes commission shall be open to public inspection provided, however, that the information regarding any applicant whose license or registration has been denied, revoked, or not renewed shall be removed from such list after 5 years from the date of such action.

XI. Maintain such files and records as the sweepstakes commission and gaming oversight authority deem necessary.

XII. All information and data obtained by the sweepstakes commission under this section shall be confidential and shall not be revealed in whole or in part except as otherwise provided by law, or upon the lawful order of a court of competent jurisdiction, or, with the approval of the attorney general, to a duly authorized law enforcement agency.

XIII. Notice of the contents of any information or data released, except to a duly authorized law enforcement agency, shall be given to any applicant, registrant, or licensee in a manner prescribed by the rules adopted by the sweepstakes commission.

XIV. Establish in conjunction with the gaming oversight authority by rules adopted under RSA 541-A, the value of prizes, which may be awarded, and the cost of play for each video lottery game played on a video lottery machine.

XV. Pending the adoption of rules under RSA 541-A, and notwithstanding RSA 541-A:18, the sweepstakes commission shall adopt interim rules after public hearing. Such interim rules shall automatically expire in accordance with RSA 541-A:19.

5 New Paragraph; Attorney General; Temporary or Contract Investigators. Amend RSA 21-M:3 by inserting after paragraph VII the following new paragraph:

VIII. The attorney general may hire temporary investigators or contract for investigatory services to facilitate background investigations required under RSA 287-G, and said investigators may be paid from licensing fees paid under RSA 287-G:12.

6 New Section; Division of Gaming Enforcement. Amend RSA 21-P by inserting after section 8 the following new section:

21-P:8-a Division of Gaming Enforcement.

I. There is hereby established a division of gaming enforcement under the supervision of an unclassified director of gaming enforcement whom shall be responsible for the following functions, in accordance with applicable laws:

(a) Manage, and hire employees for the day-to-day operation of all video lottery locations ensuring the integrity of the program. Gaming enforcement employees shall be assigned to all locations and will be present at all times whether the location is open or closed.

(b) Investigate violations of RSA 284 or RSA 287-G and the rules adopted under the provisions of RSA 284 or RSA 287-G and initiate proceedings before the gaming oversight authority for such violations.

(c) Report the results of any investigation conducted to the sweepstakes commission and the gaming oversight authority.

(d) Participate in any hearing conducted by the sweepstakes commission or gaming oversight authority.

II. The commissioner of safety shall organize the division into such units as the commissioner deems necessary.

7 Compensation of Certain State Officers; Director of Gaming Enforcement. Amend RSA 94:1-a, I by:

Inserting in Grade GG:

Department of safety director of gaming enforcement

8 New Subparagraph; Liquor Sales. Amend RSA 178:20, V by inserting after subparagraph (u) the following new subparagraph:

(v) Facilities License. The commissioner may issue a special license to any person holding a facilities license with respect to a facilities licensee location under the provisions of RSA 287-G. Such special license shall allow the sale of liquor, wine, and beverages in a dining room, function room, gaming room, lounge, or any other area designated by the commissioner, without regard to whether meals are served within, but only during the time video lottery gaming is being conducted under RSA 287-G and pursuant to applicable state law.

9 New Subparagraph; Authorized Video Lottery Games of Chance Machines Not Prohibited. Amend RSA 647:2, V by inserting after subparagraph (c) the following new subparagraph:

10 Contingent Repeal. If a constitutional amendment to the New Hampshire constitution is adopted by the voters at any time subsequent to the effective date of this act providing that the state is not the guarantor of adequate education funding, then sections 1-9 of this act shall be repealed.

11 Effective Date. This act shall take effect July 1, 2002.

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