SB 203-FN-A-LOCAL - AS INTRODUCED
1999 SESSION
SENATE BILL 203-FN-A-LOCAL
AN ACT authorizing electronic games of chance at racetracks.
SPONSORS: Sen. Blaisdell, Dist 10; Sen. Klemm, Dist 22; Sen. Fraser, Dist 4; Sen. Disnard, Dist 8; Sen. J. King, Dist 18; Rep. Franks, Hills 26; Rep. Raynowska, Rock 26; Rep. Wallin, Merr 15; Rep. Foster, Hills 10; Rep. B. Baroody, Hills 42
This bill authorizes electronic games of chance at racetracks, sets forth criteria for establishing and conducting such games of chance, and establishes a gaming oversight authority. A division of gaming enforcement is also established within the department of safety.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
99-0976
08/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord One Thousand Nine Hundred and Ninety-Nine
AN ACT authorizing electronic games of chance at racetracks.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Chapter; Electronic Games of Chance. Amend RSA by inserting after chapter 284 the following new chapter:
CHAPTER 284-A
284-A:1 Definitions. In this chapter:
I. "Electronic games of chance machine" means an electronic, mechanical, or computerized machine licensed by the gaming oversight authority which, upon the insertion of cash, tokens or the payment of any consideration whatsoever, is available to be played where, by chance or skill, or both, the player may receive cash, tokens or any consideration whatsoever. Electronic games of chance machines include, but are not limited to, slot machines, video poker machines, and video lottery machines.
II. "Gaming oversight authority" means the authority established by RSA 284-A:2.
III. "Net machine income" means all cash or other consideration utilized to play an electronic games of chance machine, less all cash or other consideration paid to players of electronic games of chance machines as winnings.
IV. "Operator applicant" means the entity in which a pari-mutuel licensee will participate and apply for an operator's license to own and operate electronic games of chance machines at the pari-mutuel licensee location of such pari-mutuel licensee.
V. "Operator's license" means the license issued by the gaming oversight authority to an operator licensee which allows the operator licensee to own, possess, conduct and operate electronic games of chance machines in accordance with this chapter.
VI. "Operator licensee" means a pari-mutuel licensee or the operator applicant who is issued a license by the gaming oversight authority to operate electronic games of chance machines pursuant to this chapter.
VII. "Pari-mutuel commission" means the New Hampshire pari-mutuel commission as established in RSA 284:6-a.
VIII. "Pari-mutuel licensee" means an entity licensed and authorized to conduct either:
(a) Live horse racing as provided in RSA 284:16 for at least the number of days as required in RSA 284:22-a, II(a)(3) as determined by the pari-mutuel commission; or
(b) Live dog racing as provided in RSA 284:16-a for at least the number of days as required in RSA 284:22-a, II(a)(3) as determined by the pari-mutuel commission.
IX. "Pari-mutuel licensee location" means the facility at which the pari-mutuel licensee is located and where the pari-mutuel licensee conducts live thoroughbred horse racing or live dog racing as of January 1, 1998 and any real estate in which the pari-mutuel licensee has an interest as of January 1, 1998 which is adjacent to the real estate on which the pari-mutuel licensee conducts live thoroughbred horse racing or live dog racing; provided that the pari-mutuel licensee location shall include any structures that may be constructed at such location after January 1, 1998.
X. "Sweepstakes commission" means the New Hampshire sweepstakes commission as established by RSA 284:21-a.
XI. "Technology provider" means any person or entity which designs, manufacturers, installs, distributes, or supplies electronic games of chance machines for sale or lease to the sweepstakes commission, and which are for use by an operator licensee for conducting electronic games of chance in accordance with this chapter.
XII. "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 an electronic games of chance machine at a pari-mutuel licensee location or paid to a player of an electronic games of chance machine, which can be exchanged for cash at the pari-mutuel licensee location where the electronic games of chance machine is located.
284-A:2 Gaming Oversight Authority.
I. There is hereby established the New Hampshire gaming oversight authority. The gaming oversight authority shall consist of the attorney general, the commissioner of safety, and the commissioner of revenue administration or their respective designees. The attorney general or the designee of the attorney general shall serve as the chairperson of the gaming oversight authority.
II. No license shall be issued to any person under this chapter without the prior approval of the gaming oversight authority. The gaming oversight authority shall issue licenses only after completion of the investigations set forth in this chapter and the recommendation to issue such license from the pari-mutuel commission or the sweepstakes commission, as the case may be. In the event that the pari-mutuel commission or the sweepstakes commission does not recommend that a license be issued to an applicant, such applicant may make application to the gaming oversight authority for such license.
III. In addition to the responsibilities set forth in RSA 284-A:2, II, the gaming oversight authority shall have general responsibility to:
(a) Hear and decide promptly and in reasonable order all license applications or recommendations for the suspension or revocation of any license issued under this chapter.
(b) Conduct all investigations required under this chapter with regard to the application of any applicant for a license under this chapter.
(c) Notify the pari-mutuel commission that it has received an application by a pari-mutuel licensee or an operator applicant for issuance of an operator license at a pari-mutuel licensee location and require the pari-mutuel commission to provide the gaming oversight authority with all records of the pari-mutuel commission regarding the licensing of the pari-mutuel licensee.
(d) Conduct hearings pertaining to civil violations of this chapter or rules under the provisions of this chapter and to collect all penalties under the provisions of this chapter.
(e) Pursuant to RSA 541-A, adopt such rules as may be necessary to implement the responsibilities of the gaming oversight authority under this chapter.
IV. 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.
V. Pending the adoption of rules under RSA 541-A, and notwithstanding RSA 541-A:18, the gaming oversight authority shall adopt interim rules after public hearing and within 30 days after enactment of this chapter. Such interim rules shall automatically expire upon the adoption of rules under RSA 541-A.
VI. No later than March 31 in each calendar year, the gaming oversight authority shall provide a report to the fiscal committee regarding the operation of electronic games of chance machines. Such report shall include any recommendations for legislation.
VII. With regard to minutes and records of the gaming oversight authority:
(a) The gaming oversight authority shall cause to be made and kept a record of all proceedings held at public meetings of the gaming oversight authority. A verbatim transcript of those proceedings shall be prepared by the gaming oversight authority upon the request of any member or upon the request of any other person and the payment by that person of the costs of preparation. A copy of a transcript shall be made available to any person upon request and payment of the costs of preparing the copy.
(b) The gaming oversight authority shall keep and maintain a list of all applicants for licenses it receives under this chapter together with a record of all actions taken with respect to such applicants. 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 the gaming oversight authority determines is necessary.
(d) All information and data required by the gaming oversight authority to be furnished to it, or which may otherwise be obtained, shall be considered to be confidential and shall not be revealed in whole or in part except in the course of the necessary administration of this chapter, 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) All information and data pertaining to an applicant's criminal record, family, and background furnished to or obtained by the gaming oversight authority from any source shall be considered confidential and shall be withheld in whole or in part. Such information shall be released upon the lawful order of a court of competent jurisdiction or to a duly authorized law enforcement agency.
(f) Notice of the contents of any information or data released, except to a duly authorized law enforcement agency pursuant to subparagraphs (d) or (e) of this paragraph, shall be given to any applicant, registrant, or licensee in a manner prescribed by the rules adopted by the gaming oversight authority.
284-A:3 Duties of the Pari-mutuel Commission.
I. The pari-mutuel commission shall:
(a) Provide to the gaming oversight authority all records pertaining to the licensing of a pari-mutuel licensee under RSA 284 within 30 days after the pari-mutuel commission receives notice from the gaming oversight authority pursuant to RSA 284-A:2, III (c).
(b) Hear and make recommendations promptly but no later than 60 days after receipt of notice from the gaming oversight authority pursuant to RSA 284-A:2, III (c) to the gaming oversight authority and in reasonable order all license applications for a license under RSA 284-A: 7, II.
II. The pari-mutuel commission shall make its recommendation to the gaming oversight authority in writing and after hearing. All hearings shall be conducted in accordance with the rules adopted by the pari-mutuel commission under RSA 284 and subject to RSA 284-A:3, III.
III. With regard to minutes and records of the pari-mutuel commission:
(a) The pari-mutuel commission shall cause to be made and kept a record of all proceedings held at public meetings of the pari-mutuel commission pursuant to this chapter. A verbatim transcript of those proceedings shall be prepared by the pari-mutuel commission upon the request of any commissioner or upon the request of any other person and the payment by that person of the costs of preparation. A copy of a transcript shall be made available to any person upon request and payment of the costs of preparing the copy.
(b) The pari-mutuel commission shall keep and maintain a list of all notices it receives under RSA 284-A, together with a record of all actions taken with respect to such notices. A file and record of the pari-mutuel commission's actions 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 pari-mutuel commission shall maintain such other files and records as the pari-mutuel commission determines is necessary.
(d) All information and data required by the pari-mutuel commission to be furnished to it, or which may otherwise be obtained, shall be considered to be confidential and shall not be revealed in whole or in part except in the course of the necessary administration of this chapter, 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) All information and data pertaining to an applicant's criminal record, family, and background furnished to or obtained by the pari-mutuel commission from any source shall be considered confidential and shall be withheld in whole or in part. Such information shall be released upon the lawful order of a court of competent jurisdiction or to a duly authorized law enforcement agency.
(f) Notice of the contents of any information or data released, except to a duly authorized law enforcement agency pursuant to subparagraphs (d) or (e) of this paragraph, shall be given to any applicant, registrant, or licensee in a manner prescribed by the rules and regulations adopted by the pari-mutuel commission.
284-A:4 Duties of the Sweepstakes Commission.
I. The sweepstakes commission shall:
(a) Hear and make recommendations promptly to the gaming oversight authority and in reasonable order all license applications for technology providers.
(b) Collect all license fees imposed upon any applicant and all taxes imposed by this chapter.
(c) Adopt, pursuant to RSA 541-A, such rules as may be necessary to implement this chapter.
(d) Certify net machine income by inspecting records, conducting audits, having its agents on site, or by any other reasonable means.
(e) Establish a central computer system located at the office of the sweepstakes commission linking all electronic games of chance machines to a central mainframe located at the office of the sweepstakes commission to insure control over electronic games of chance. The sweepstakes commission shall establish a bid procedure for such contracts.
(f) Enter into lease agreements with technology providers to provide electronic games of chance machines to operator licensees. These lease agreements shall provide that each technology provider shall supply the quantity and quality of electronic games of chance machines as determined by an operator licensee in a timely and efficient manner. Each agreement shall also provide that the technology provider shall provide all maintenance and service of its electronic games of chance machines at no additional charge or fee to the state or the operator licensees.
(g) Subject to the provisions of RSA 284-A:7, VI, determine from time to time the number of electronic games of chance machines that any operator licensee may operate.
II. 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.
III. No later than March 1 in each calendar year, the sweepstakes commission shall provide a report to the gaming oversight authority regarding the generation of revenues of electronic games of chance machines by pari-mutuel licensees.
IV. With regard to minutes and records of the sweepstakes commission:
(a) The sweepstakes commission shall cause to be made and kept a record of all proceedings held at public meetings of the sweepstakes commission. A verbatim transcript of those proceedings shall be prepared by the sweepstakes commission upon the request of any commissioner or upon the request of any other person and the payment by that person of the costs of preparation. A copy of the transcript shall be made available to any person upon request and payment of the costs of preparing the copy.
(b) The sweepstakes commission shall keep and maintain a list of all notices for licenses as technology providers under RSA 284-A, 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.
(c) The sweepstakes commission shall maintain such other files and records as the sweepstakes commission determines is necessary.
(d) All information and data required by the commission to be furnished to it, or which may otherwise be obtained, shall be considered to be confidential and shall not be revealed in whole or in part except in the course of the necessary administration of this chapter, 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) All information and data pertaining to an applicant's criminal record, family, and background furnished to or obtained by the sweepstakes commission from any source shall be considered confidential and shall be withheld in whole or in part. Such information shall be released 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.
(f) Notice of the contents of any information or data released, except to a duly authorized law enforcement agency pursuant to subparagraphs (d) or (e) of this paragraph, shall be given to any applicant, registrant, or licensee in a manner prescribed by the rules adopted by the sweepstakes commission.
284-A:5 Restrictions on Employment.
I. No person who has held an interest in or been employed by the holder of a pari-mutuel license or an operator's license shall be employed by the gaming oversight authority, the pari-mutuel commission, the sweepstakes commission, or gaming enforcement division for 2 years from the expiration of such interest or employment. Excluded from this prohibition shall be employees of a pari-mutuel licensee who are employed on an emergency or temporary basis by the pari-mutuel commission for services in connection with a live race or live race meet.
II. No person who holds an interest in or is employed by the holder of a pari-mutuel license or an operator's license shall be employed by the gaming oversight authority, the pari-mutuel commission, the sweepstakes commission, or gaming enforcement division.
III. No employee of the gaming oversight authority, the pari-mutuel commission, the sweepstakes commission, or gaming enforcement division shall play an electronic games of chance machine.
IV. No employee of the gaming oversight authority, the pari-mutuel commission, the sweepstakes commission, or gaming enforcement division shall directly or indirectly pay or contribute money or things of value to:
(a) Any candidate for nomination or election to any public office in this state.
(b) Any political party or any committee of any political party in this state.
(c) Any group, committee or association organized in support of any such candidate or political party.
V. No person who was employed by the gaming oversight authority, the pari-mutuel commission, the sweepstakes commission, or gaming enforcement division shall hold an interest in or be employed by the holder of a pari-mutuel license or an operator's license for a period of 2 years from the termination of employment by the gaming oversight authority, pari-mutuel commission, the sweepstakes commission, or gaming enforcement division.
284-A:6 Authorization for Electronic Games of Chance.
I. A pari-mutuel licensee shall be authorized to install, operate and conduct electronic games of chance at its pari-mutuel licensee location, subject to the provisions of this chapter.
II. A pari-mutuel licensee may enter into one or more agreements to manage or participate in the operation of electronic games of chance at its pari-mutuel licensee location; such operator applicant must be licensed under this chapter.
284-A:7 Licenses, Number of Electronic Games of Chance Machines.
I. No person shall engage in the ownership, possession, transfer, maintenance, repair or operation of an electronic games of chance machine unless such person is licensed in accordance with the provisions of this chapter, local approval as provided in RSA 284-A:12 has been obtained, the gaming oversight authority has adopted temporary rules pursuant to RSA 284-A:2, V, and the sweepstakes commission has adopted temporary rules as provided in RSA 284-A:4, IV.
II. Any pari-mutuel license issued by the pari-mutuel commission following the effective date of this chapter shall not authorize the pari-mutuel licensee to install, operate or conduct electronic games of chance machines until the pari-mutuel licensee is issued an operator's license pursuant to the provisions of this chapter.
III. Any operator applicant shall be licensed as an operator licensee in accordance with the provisions of this chapter prior to engaging in any activity authorized by this chapter.
IV. Any employee of an operator licensee who is directly engaged in the installation or operation of electronic games of chance machines or in any moneys associated with the playing of electronic games of chance machines and all supervisory and managerial personnel, shall be licensed as an electronic games of chance employee in accordance with this chapter prior to engaging in any activity authorized by this chapter.
V. Any technology provider engaged in the business of providing, installing, maintaining or repairing electronic games of chance machines shall be licensed by the gaming oversight authority in accordance with the provisions of this chapter prior to engaging in any activity authorized by this chapter. No technology provider shall be entitled to operate electronic games of chance machines.
VI.(a)(1) On or prior to June 30, 2001, each operator licensee at a pari-mutuel licensee location at which live dog racing is conducted shall be limited to 750 electronic games of chance machines in operation at each such pari-mutuel licensee location.
(2) On or prior to June 30, 2001, the operator licensee at the pari-mutuel licensee location at which live thoroughbred horse racing is conducted shall be limited to 1500 electronic games of chance machines in operation at such pari-mutuel licensee location.
(b) Commencing as of July 1, 2001 and thereafter, but no more frequently than at 6-month intervals thereafter, the sweepstakes commission may increase the number of electronic games of chance machines in operation by an operator licensee, subject to approval of such recommendation by the gaming oversight authority. The determination by the sweepstakes commission shall be made after due consideration of the economic conditions present at the time of the determination, including without limitation, the performance of the operator licensee in operating the then existing electronic games of chance machines, the present market conditions and market forecasts and projections, and the financial ability of the operator licensee. Prior to any determination hereunder, the sweepstakes commission shall notify each operator licensee in writing that the sweepstakes commission intends to consider an adjustment in the number of electronic games of chance machines. No such determination shall be made until after notice and a hearing by the sweepstakes commission and specific findings and rulings are made by the sweepstakes commission. The sweepstakes commission shall adopt rules under RSA 541-A, regarding the procedures under this paragraph.
(c) In addition to all other enforcement powers it has, the sweepstakes commission may, after notice and hearing, reduce the number of electronic games of chance machines at a pari-mutuel licensee location for cause, including the failure to comply with the rules and regulations of the gaming oversight authority, the pari-mutuel commission or the sweepstakes commission.
284-A:8 Application and License Requirement for State License for Electronic Games of Chance.
I. An applicant who has been authorized for an electronic games of chance license shall secure a state license from the gaming oversight authority. An applicant must 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 10 percent of the legal or beneficial interests of such entity.
II. Whenever the gaming oversight authority shall receive an application, including any application under RSA 284-A:9, it shall refer the same 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 subject's financial, criminal or business background, or any other information which the attorney general, in his or her sole discretion, may find to bear on the subject's fitness to be associated with racing 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. When the gaming oversight authority requests such an investigation, the attorney general shall report the results of his or her investigation to the gaming oversight authority within 90 days after the receipt of said request. 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, except that the attorney general, in the attorney general's sole discretion, shall determine the extent to which and the manner in which said results may be reported to the gaming oversight authority or other state agency or official and, if reported, whether such results are to retain their confidential character; provided, however, that whenever the attorney general conducts such an investigation, the attorney general shall notify the gaming oversight authority whether or not in his or her opinion such person is fit to be associated with racing in New Hampshire. Notwithstanding any other provision of law, no person shall be issued or hold a license if in the opinion of the attorney general such person is not fit to be associated with racing in this state.
III. In any investigation conducted pursuant to paragraph II, the attorney general or any duly authorized member of the attorney general's staff may require by subpoena or otherwise the attendance of witnesses and the production of such correspondence, documents, books and papers as he deems advisable, and for purposes of this section, may administer oaths and take the testimony of witnesses. No person shall be excused from testifying or from producing any book or paper in any investigation conducted pursuant to paragraph I upon the ground that such testimony or documentary evidence might tend to incriminate such person; provided that if, after a claim of privilege, the attorney general, in writing, orders such person to testify or produce documentary evidence, he or she shall not be prosecuted, punished or subjected to any penalty or forfeiture for or on account of any act, transaction, matter or thing which he or she, under oath, disclosed or produced. No person so testifying shall be exempt from prosecution or punishment for any perjury committed by the person in his or her testimony.
284-A:9 Licensure Requirements.
I. No operator's 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) Its financial stability, 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 integrity of all financial backers, investors, mortgagees, bondholders, and holders of indentures, notes and other evidences of indebtedness of the applicant.
(c) Its good character, honesty and integrity, considering, without limitation, information pertaining to family, habits, character, reputation, criminal and arrest record, business activities, financial affairs, and business, professional and personal associates, covering at least the 10 year period immediately preceding the filing of the application.
(d) Its business ability and experience in the manufacture, installation, repair, maintenance or operation of electronic games of chance machines, as appropriate, so as to establish the likelihood of a successful and efficient operation.
II.(a) In addition, no operator's 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 284-A:9, I.
(b) 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.
(c) Except as provided in RSA 284-A:9, II(d), no person who owns, directly or indirectly, legally or beneficially, 10 percent or less of the equity securities or 20 percent or less of the outstanding debt securities of a publicly traded holding company of an applicant for an operator's 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.
(d) If an operator 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 RSA 284-A:9, II(a).
III. 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 paragraphs I and II of this section. The sweepstakes commission shall establish the form of application which must 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 284-A:8 except that all investigatory reports shall be provided to the sweepstakes commission and the gaming oversight authority.
IV. No electronic games of chance employee 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 that such person satisfies the standards contained in paragraph I of this section.
V. All information and data required by the gaming oversight authority, the pari-mutuel commission, the sweepstakes commission, or gaming enforcement division to be furnished pursuant to this chapter, or which may otherwise be obtained by the gaming oversight authority, the pari-mutuel commission, the sweepstakes commission, or gaming enforcement division 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 in the course of the necessary administration of this chapter, upon lawful order of a court of competent jurisdiction, or with the approval of the commissioner of safety, to a duly authorized law enforcement agency.
VI. In addition to all other fees, the sweepstakes commission shall collect from each pari-mutuel licensee the annual fee of $50 for each electronic game of chance machine located at the pari-mutuel licensee location and the annual fee of $10,000 from each technology provider.
284-A:10 Exclusion of Minors.
I. No person under the age of majority shall play an electronic games of chance machine authorized by this chapter.
II. No pari-mutuel licensee or operator's licensee shall knowingly permit a minor to play or participate in any aspect of the play of an electronic games of chance machine.
III. Each violation of RSA 284-A:10, I shall be punishable by a fine of no more than $1,000 and shall be payable by such person who violates such paragraph.
IV. Each violation of RSA 284-A:10, II shall be punishable by a fine of no more than $1,000 and shall be payable by the pari-mutuel licensee or operator licensee that is found to have violated such paragraph.
284-A:11 Distribution of Net Machine Income.
I. Net machine income generated by an operator licensee shall be distributed and paid as follows:
(a) Sixty-two percent of net machine income shall be paid to the state from which the state shall pay for its costs of regulation and administration; the acquisition and operation of the central computer system; the lease payments due to technology providers; and the balance shall be deposited with the treasurer for funding public education.
(b) Two percent of net machine income shall be paid to the municipality in which an operator licensee operates electronic games of chance.
(c) Three and two tenths percent of net machine income shall be paid to the pari-mutuel commission which will establish a purse fund account for live horse racing and shall be disbursed as follows:
(1) The sum of $257,000 each year and adjusted annually for inflation to the Jockeys Guild Health and Welfare Trust maintained by Jockeys Guild, Inc. for the sole purpose of providing health and welfare benefits to active, disabled, and retired jockeys in accordance with eligibility criteria established by the Guild; and
(2) The balance of such fund to award purses for live horse racing conducted by the pari-mutuel licensee at such pari-mutuel licensee location.
(d) Thirty-two and eight-tenths percent of net machine income shall be retained by the operator licensee.
II. The pari-mutuel commission shall adopt rules and regulations regarding the disbursement of moneys collected in the fund created in RSA 284-A:11, I(c) to the pari-mutuel licensee for live horse racing purses.
III. All distributions to the state and municipality shall be made by the operator licensee within 5 business days after the end of each week in which the net machine income is generated. The operator licensee shall pay a fine equal to the greater of $50 for each day in which such payments are overdue in whole or in part or interest on the unpaid amount with interest calculated at the annual rate of 10 percent for each day for which the payment due is late. The late payment penalty shall be paid by the operator licensee to the sweepstakes commission. Notwithstanding the foregoing, the fine imposed in this paragraph shall not limit the gaming oversight authority from imposing further sanctions if the sweepstakes commission determines that an operator licensee habitually violates this section.
284-A:12 Procedures for Adoption by Local Community.
I. Any town or city in which a pari-mutuel licensee location is situated may adopt the provisions of RSA 284-A, 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 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 284-A, allowing the operation of electronic games of chance at the licensed pari-mutuel facility located within the town?"
II. If a majority of those voting on the question vote "Yes," RSA 284-A shall apply within the city or town and may not be rescinded by 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.
284-A:13 Inspection of Machines; Penalty for Tampering or Manipulating.
I. The sweepstakes commission shall, from time to time, test electronic games of chance machines installed at a pari-mutuel licensee location. In conducting such tests, the sweepstakes commission shall use the services of an independent laboratory, the cost of which independent laboratory shall be paid by the technology provider.
II. Any person who, with the intent to manipulate the outcome, payoff or operation of an electronic games of chance machine, manipulates the outcome, payoff or operation of any electronic games of chance machine by physical, electronic or mechanical means, shall be guilty of a felony.
284-A:14 Electronic Games of Chance Machines.
I.(a) An operator licensee shall provide to the gaming oversight authority, the pari-mutuel commission and the sweepstakes commission by diagram a description of:
(1) The location of each electronic games of chance machine available for play by the public.
(2) The location of all areas for the storage, maintenance or repair of such machines.
(3) A description of all security measures to be taken for the safeguarding of such machines.
(4) The location and security measures taken for the safeguarding of all moneys, tokens, or other items of value utilized in the use of electronic games of chance machines.
(5) All procedures for the operation, maintenance, repair and inserting or removing of moneys, tokens, or other items of value from electronic games of chance machines.
(b) All of the above shall be approved by the gaming oversight authority prior to commencing the operation of any electronic games of chance machines.
II. No electronic games of chance machine shall be possessed, maintained, exhibited, brought into or removed from a pari-mutuel licensee location by any person unless such machine has permanently affixed to it an identification number or symbol authorized by the gaming oversight authority and prior notice of any such movement has been given to the sweepstakes commission.
III.(a) Each operator licensee shall maintain secure facilities for the counting and storage of all moneys, tokens, or other items of value utilized in the conduct of electronic games of chance machines.
(b) All drop boxes and other devices where moneys, tokens, or other items of value are deposited in electronic games of chance machines and all areas wherein such boxes and devices are kept while in use shall be equipped with 2 locking devices, one key which shall be under the exclusive control of the sweepstakes commission and the other under the exclusive control of the operator licensee. Said drop boxes and other devices shall not be brought into the pari-mutuel licensee location or removed from an electronic games of chance machine, locked or unlocked, except at such times and such places and according to such procedures as the sweepstakes commission may require to safeguard such boxes and devices and their contents.
IV.(a) No electronic games of chance 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 by the sweepstakes commission and licensed for use by the sweepstakes commission.
(b) The sweepstakes commission shall, by rule, establish technical standards for approval of electronic games of chance 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 their operation.
(c) All electronic games of chance machines in operation at a pari-mutuel licensee location shall provide a pay off of at least 87 percent on an average annual basis.
(d) All tickets given as prizes or winnings from electronic games of chance machines must be redeemed for cash within one year after the date of winning. After the expiration of that one year, all such unredeemed tickets shall become property of the state of New Hampshire, notwithstanding any other law to the contrary.
V. An operator licensee who operates electronic games of chance machines shall not be restricted in the days of operation of such machines, so long as the pari-mutuel licensee has scheduled at least the number of days of racing as required by RSA 284:22-a, II(a)(3). The hours of operation on each day shall be determined by the gaming oversight authority.
VI. The sweepstakes commission shall negotiate and execute agreements with at least 3 technology providers in accordance with reasonable business terms subject to the provisions of RSA 284-A:4, (I)(f). Each operator licensee shall obtain electronic games of chance machines from such technology providers and no others, provided, that no operator licensee shall obtain more than 50 percent of its electronic games of chance machines from any one such technology provider.
284-A:15 License and Investigation Fees. The gaming oversight authority shall establish a license application fee for each class or type of license to be issued under this chapter. The application fee shall be in an amount as determined by the gaming oversight authority to reimburse for the costs of the investigations set forth in this chapter.
284-A:16 Term of License.
I. Any operator's license or technology provider's license issued pursuant to this chapter and any renewal thereof shall be valid for 2 years unless earlier suspended or revoked by the gaming oversight authority.
II. Any electronic games of chance employee license or renewal thereof issued pursuant to this chapter shall be valid for 3 years unless earlier suspended or revoked by the gaming oversight authority.
284-A:17 Presence of the Gaming Oversight Authority and Sweepstakes Commission.
I.(a) The gaming oversight authority may be present at any pari-mutuel licensee location at which electronic games of chance machines are operated at all times when the facility is open to the public.
(b) The operator licensee may be required by the gaming oversight authority or gaming enforcement division to provide such office space and equipment which the commission shall by rule determine is reasonably necessary or proper for them to fulfill their responsibilities.
II. The sweepstakes commission may be present at any time an electronic games of chance machine is opened to remove or insert any drop box, hopper, or other mechanism containing money, tokens, or other items of value. The sweepstakes commission may be present in the count room at any time money, tokens or other items of value utilized in electronic games of chance machines are counted.
284-A:18 Sanction Powers of the Gaming Oversight Authority.
I. The gaming oversight authority shall have the sole and exclusive authority, following appropriate hearings and factual determinations, to impose sanctions against any person for any violation of this chapter or any rule of the gaming oversight authority, the sweepstakes commission, or the pari-mutuel commission adopted under the provisions of this chapter.
II. The gaming oversight authority shall have the authority to impose sanctions upon any person for any violation of this chapter or the rules of the gaming oversight authority, the pari-mutuel commission or the sweepstakes commission as follows:
(a) Revocation or suspension of a license.
(b) Civil penalties as may be necessary to punish misconduct and to deter future violations, which penalties may not exceed $20,000 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 or all of the foregoing sanctions in combination with each other.
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 electronic games of chance machine operations created by the conduct of the person.
(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, the pari-mutuel commission or the sweepstakes commission.
(c) Any justification or excuse 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 3 civil penalties each in the amount of $20,000 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.
284-A:19 Declaration of Limited Exemption from Operation of Provisions of 15 U.S.C. section 1172. 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.
284-A:20 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 had 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.
284-A:21 Effect on Other Laws. This chapter shall take precedence over any other law, rule, ordinance or regulation of the state or its political subdivisions to the contrary.
2 New Sections; Department of Safety Gaming Enforcement Division Established. Amend RSA 21-P by inserting after section 11 the following new sections:
21-P:11-a Department of Safety Gaming Enforcement Division.
I. There is established within the department a division of gaming enforcement under the supervision of the commissioner of safety. The division shall be authorized to:
(a) Investigate violations of RSA 284 or RSA 284-A and the rules adopted under the provisions of RSA 284 or RSA 284-A and initiate proceedings before the gaming oversight authority for such violations.
(b) Report the results of any investigation conducted to the pari-mutuel commission or the sweepstakes commission as appropriate.
(c) Participate in any hearing conducted by the pari-mutuel commission or the sweepstakes commission.
II. The commissioner of safety shall organize the division into such units as the commissioner deems necessary. The commissioner of safety may employ such personnel as the commissioner deems necessary to fulfill the responsibilities of the division.
21-P:11-b Enforcement Expenditures. Notwithstanding any other provisions of law, the governor and council with the prior approval of the fiscal committee of the general court, upon request from the commissioner of safety may authorize the transfer of general funds to the department of safety to implement and enforce this chapter.
3 License Restricted. RSA 284:16-c is repealed and reenacted to read as follows:
284:16-c License Restricted.
I. Notwithstanding any other provision of law, the pari-mutuel commission shall not issue a license to conduct live thoroughbred horse racing or live harness horse racing pursuant to RSA 284:16 to any applicant if the place where such races or race meets are to be held is within a radius of 40 miles of the place where live thoroughbred horse races or race meets have already been licensed pursuant to RSA 284:16; provided, however, that the pari-mutuel commission may issue a license to conduct live harness racing to the holder of a license to conduct live thoroughbred racing if the live harness racing is conducted at the same place where the live thoroughbred racing is being conducted.
II. Notwithstanding any other provision of law, the pari-mutuel commission shall not issue a license to conduct live dog racing pursuant to RSA 284:16-a to any applicant if the place where the races or race meets are to be held is within a radius of 40 miles of the place where such races or race meets have already been licensed pursuant to RSA 284:16-a.
4 Restriction on Gambling. RSA 284:17-c is repealed and reenacted to read as follows:
RSA 284:17-c Restriction on Gambling. Except as provided in the introductory paragraph of RSA 284:22, RSA 284:22-a, and RSA 284-A, no licensee who holds running horse races shall at the same facility hold any other kinds of races or permit any other type of gambling except harness horse races and activities licensed by the gaming oversight authority, pari-mutuel commission, or the sweepstakes commission.
5 Effective Date. This bill shall take effect July 1, 1999.
LBAO
99-0976
2/23/99
SB 203-FN-A-LOCAL - FISCAL NOTE
AN ACT authorizing electronic games of chance at racetracks.
FISCAL IMPACT:
The Pari-Mutuel Commission indicates state restricted revenue and expenditures will increase by $169,922,500 in FY 2000, by $186,915,000 in FY 2001, by $199,394,000 in FY 2002, and by $254,872,5000 in FY 2003. The Department of Safety indicates state general fund expenditures will increase by $462,554 in FY 2000, by $312,664 in FY 2001, by $319,903 in FY 2002, and by $324,332 in FY 2003. Local revenue will increase by $5,475,000 in FY 2000, by $6,022,500 in FY 2001, by $6,424,000 in FY 2002, and by $8,212,500 in FY 2003. There is no impact on county revenue or county and local expenditures.
METHODOLOGY:
The Commission states this bill establishes the New Hampshire Gaming Oversight Committee consisting of the Attorney General, the Commissioner of Safety and the Commissioner of Revenue Administration. The Committee will issue licenses and conduct investigations as provided by this bill. The Committee has the authority to establish a license application fee for each class or type of license. The application fee will be an amount to be determined to reimburse for the cost of the investigations in this bill.
The Commission anticipates that the four current pari-mutuel licensees will offer electronic games of chance as proposed by this bill. This bill provides that payouts (video play winnings) will be 87% of gross annual machine income. The distribution and order of net machine income (NMI) is calculated as follows:
FY 2000
NET MACHINE INCOME (NMI):
3,750 Machines x 365 days x $200 NMI $273,750,000
NMI DISTRIBUTION:
State Gross Proceeds 62% $169,725,000
Less: Operating Costs 24,637,500
Net Balance for Education $145,087,500
City/Town Licensee 2% $ 5,475,000
Purse Fund Account 3.2%
Jockey's Guild Trust (First) $ 257,000
Live Horse Purse Fund (Balance) $ 8,503,000
Licensee 32.8% $ 89,790,000
This bill provides that as of July 1, 2001, the Sweepstakes Commission may increase the number of electronic games of chance machines by an indeterminable amount. For the purpose of this fiscal note, the Pari-Mutuel Commission assumes that the number of machines will increase to 4,000 in FY 2002 and 4,500 in FY 2003. Net machine income is assumed to increase to $220 in each of the fiscal years 2001 and 2002 and to $250 in FY 2003.
In addition to its share of NMI, the Sweepstakes Commission will collect an annual fee of $50 for each electronic game of chance machine from each of the four licensees ($50 x 3,750 machines), or $187,500. Each technology provider will pay an annual fee of $10,000. The Pari-Mutuel Commission assumes that the number of technology providers will be 3 in FY 2001, 5 in FY 2002, and 6 in FY 2003.
Gross NMI proceeds remitted to the Sweepstakes Commission will be reduced by the Commission to pay the costs of regulation and administration, the acquisition and operation of the central computer system, and lease payments due to technology providers. The Pari-Mutuel Commission, for the purpose of this fiscal note, states that based on expenses incurred by the State of Delaware, 9% of total NMI ($273,750,000 x 9%), or $24,637,500 will be the estimated cost to the State of New Hampshire. Of the balance of state proceeds remaining, ($169,725,000 less $24,637,500), or $145,087,500, will be deposited with the Treasurer pursuant to RSA 284:21-j to fund public education. It is assumed that all net state proceeds will be expended for education funding.
This bill also provides that the Governor and Council, with prior approval of the Fiscal Committee, upon request of the Commissioner of the Department of Safety, may authorize the transfer of general funds to the Department to establish a Gaming Enforcement Division to implement and enforce the provisions of this bill. The Department of Safety states they will need to hire a Lieutenant, labor grade 24 and 4 Troopers, labor grade 13 the first year, and labor grade 17 the second year and an Executive Secretary, labor grade 10, plus associated benefits. The 5 State Police personnel will require a cruiser at $28,987 each, travel of $3,000 and current expenses of $8,034 the first year (including uniforms), and $600 estimated current expense for subsequent years, for a total cost, including salaries and benefits of $462,554. Second year costs are estimated at $312,664 in FY 2001, and will increase by $7,239 in FY 2002, and by $4,429 in FY 2003, as a result of labor grade step increases.