2001 SESSION

01-2164

08/09

HOUSE BILL 1239-FN-A

COMMITTEE: Ways and Means

ANALYSIS

This bill establishes a licensing mechanism to permit off-track betting at certain facilities, and establishes a gambling addiction education fund.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

01-2164

08/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand One

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

1 New Chapter; Off-track Wagering. Amend RSA by inserting after chapter 284 the following new chapter:

CHAPTER 284-A

OFF-TRACK WAGERING

284-A:1 Definitions. In this chapter:

I. "Class A lounge" means a facility which is properly licensed to serve beer, wine, spirits and malt liquor and serves at least light-fare meals at tables, booths, or counters between the hours of 11:30 a.m. to 10:00 p.m.

II. "Commission" means the New Hampshire pari-mutuel commission.

III. "Market area" means a 25 mile radius from the location of a pari-mutuel racetrack.

284-A:2 Off-track Betting on Simulcast Racing. A person may conduct pari-mutuel wagering at an off-track betting facility that is licensed under this chapter, if the person operates a class A lounge.

284-A:3 Application for Off-track Betting. To obtain a license to conduct pari-mutuel wagering at an off-track betting facility, a person shall submit to the commission the fee required in RSA 284-A:4 and an application on a form prescribed by the commission that specifies at least the following:

I. The number of permanent and part-time jobs to be created at the proposed facility.

II. The population of the municipality and surrounding area where the proposed facility is to be located.

III. The exact location of the proposed facility and its proximity to any other approved off-track betting facility or licensed racetrack.

IV. The type of seating to be provided, including areas in the proposed facility where patrons can handicap races.

V. The total seating capacity of the proposed facility.

VI. The size and number of toilet facilities.

VII. Accommodations made for persons with disabilities and proof of compliance with applicable state and federal laws regarding the same.

VIII. The availability of food and beverages, including the number of tables, chairs, kitchen facilities and concession stands.

IX. The number of available parking spaces.

X. A description of the general design or style of the proposed facility, including lighting, decor and plans for the exterior of the facility.

XI. The number of betting windows and stand-alone betting terminals to be provided.

XII. A description of the heating and air-conditioning units, the smoke removal equipment, and other climate control devices.

XIII. The total area in square feet of the proposed facility.

XIV. The number, type, and quality of the television equipment to be installed and, if applicable, the name and place of business of any proposed independent contract operator.

XV. The full name and address of the person, association, or corporation applying for the license; if an association, the names and residences of the members of the association; and if a corporation, the name of the state under which it is incorporated with its principal place of business and the names and addresses of its directors and stockholders.

XVI. The dates and times of day or night when it is desired to conduct wagering.

XVII. Whether the facility is owned or leased and, if leased, the name and residence of the fee owner or, if a corporation, the names and residences of the directors and stockholders of that corporation.

XVIII. A statement of the assets and liabilities of the person, association, or corporation submitting the application.

XVIX. The name of the entity that will originate each simulcast likely to be offered for wagering at the facility and other information required by the commission regarding that entity.

284-A:4 Application and Renewal; Fees. The fee for an initial application for an off-track betting facility is $1,000 and shall be valid for 2 years. An off-track betting facility license shall be renewed bi-annually for $250. Applications shall be accepted only from individuals or entities with a primary residence or primary place of business in the state of New Hampshire.

284-A:5 Notice to Commercial Racetracks and Off-track Betting Facilities; Objections. An applicant shall send written notice of its application for an off-track betting license to any commercial racetrack and any off-track betting facility in whose market area the facility will be located and shall present proof to the commission that it has provided the notice. The notice shall include all information contained in the application. A commercial racetrack or off-track betting facility shall notify the commission within 30 days of receiving notice if the racetrack or off-track betting facility objects to the location of the facility based on adverse impact to the existing track or facility. The commission shall suspend consideration of the application for the 30-day objection period. If the commission receives an objection from a racetrack or off-track betting facility in whose market area the facility would be located within the 30-day period, the commission shall reject the application. If the commission does not receive an objection within that period, the commission may proceed to consider the application.

284-A:6 Municipal Approval. The commission shall not grant a license to conduct pari-mutuel wagering at an off-track betting facility unless the facility is approved in accordance with this section by the municipal officers of the municipality in which the facility is to be located.

I. Within 15 days after receiving an application for an off-track betting facility license, or within 15 days after the expiration of the 30-day objection period described in RSA 284-A:5 when the proposed facility is located within the market area of an existing off-track betting facility or a commercial racetrack, the commission shall notify the municipal officers of the municipality in which the facility is to be located and shall send a copy of the application to those officers. The municipal officers shall hold a public hearing for the consideration of the application in accordance with this section.

II. The municipal officers shall provide public notice of a hearing held under this section by causing a notice stating the name and place of hearing, at the applicant's prepaid expense, to appear on at least 6 consecutive days before the date of hearing in a daily newspaper of general circulation in the municipality where the facility will be located or on 2 consecutive weeks before the date of the hearing in a weekly newspaper of general circulation in the municipality where the facility is to be located.

III. Within 48 hours following the public hearing, the municipal officers shall grant or deny approval of the facility, indicate the reasons for their decision, and provide a copy to the applicant.

IV. Approval of a facility may be denied on one or more of the following grounds:

(a) Conviction of a felony by the applicant or a holder of more than 50 percent of the shares or other interests of the applicant.

(b) Noncompliance of the facility or the facility's use with a local zoning ordinance or other land use ordinance.

(c) Conditions of record, such as waste disposal violations, health or safety violations, and repeated parking or traffic violations, on or in the vicinity of the facility and caused by persons patronizing or employed by the facility or other conditions caused by persons patronizing or employed by the facility that unreasonably disturb, interfere with, or affect the ability of persons or businesses residing or located in the vicinity of the facility to use their property in a reasonable manner.

(d) Any other compelling reason, provided that reason is based in fact and has merit and is not based on a municipal officer's personal dislike for pari-mutuel wagering.

V. An applicant aggrieved by the decision of the municipal officers under this section may appeal to the superior court, and may make subsequent appeals.

VI. Any actual costs incurred by the municipality in performance of the provisions of this section shall be reimbursed by the license applicant.

284-A:7 Requirements for Approval of License. Upon completion of the municipal review, the commission shall conduct a hearing on the application within 5 days. The commission may issue a license to conduct pari-mutuel wagering at an off-track betting facility if:

I. The commission finds that the facility:

(a) Will not adversely affect the public interest;

(b) Will not adversely affect the integrity of live racing;

(c) Will not have an adverse impact on the local community;

(d) Provides a potential for job creation, including jobs in the racing and wagering industries and other service jobs;

(e) Has adequate seating facilities, toilet facilities, and parking;

(f) Will not adversely affect the value of abutting property;

(g) Will be operated by an applicant with the financial ability to maintain the facility in a manner that meets the standards set forth in this paragraph;

(h) Provides segregated areas for conducting betting separate from the areas in which restaurant or other services are provided to the general public for nonbetting purposes; and

(i) Will not adversely affect existing licensed racetracks or off-track betting facilities within 25 miles of the proposed facility.

II. The municipal officers of the municipality in which the facility is to be located have approved the facility pursuant to RSA 284-A:6.

III. The commission is satisfied that the provisions of this chapter and any rules prescribed by the commission will be fully complied with during the coming year by the person or entity applying for a license; that the applicant, its members, directors, officers, shareholders, employees, creditors, and associates are of good moral character; and that the applicant is financially responsible; and

IV. No commercial racetrack or off-track betting facility in whose market area the facility would be located has filed a written objection to the facility within the time period prescribed in RSA 284-A:5.

284-A:8 Operation of Facility. An off-track betting licensee may not permit a person under the age of 16 to enter the facility unless accompanied by a parent, legal guardian, or custodian. The off-track betting licensee may not permit a person under 18 years of age within 15 feet of a betting window or other place for accepting wagers.

284-A:9 Payments for Operation. An off-track betting licensee shall pay commissions on wagering as follows:

I. On exotic wagers:

(a) Ten percent to the general fund of the state.

(b) Twelve percent to be evenly distributed to the commercial racetracks within the state.

II. On regular wagers:

(a) Seven percent to the general fund of the state.

(b) Nine percent to be evenly distributed to the commercial racetracks within the state.

III. No later than January 31 of each year, 2.5 percent of a facility's total received wagers for the preceding calendar year shall be paid to the municipality in which the off-track betting facility is located.

IV. No later than January 31 of each year, 1.5 percent of a facility's total received wagers for the preceding calendar year shall be paid to the gambling addiction education fund established in RSA 284-A:10.

284-A:10 There is hereby established in the office of the state treasurer the gambling addiction education fund. All moneys in the fund shall be nonlapsing and shall be continually appropriated top the commission for purposes of providing gambling addiction education.

284-A:11 License Nontransferable. An off-track betting facility license issued is not transferable or assignable.

284-A:12 Conditions. The commission is authorized to impose conditions on a license if one or more of the criteria established in this chapter are not met at the time the license is issued and the licensee is able to comply with the conditions within a specified time period during the licensing year or if the conditions are requested both by the municipality as a condition of its approval and by the applicant.

2 New Paragraph; Rulemaking; Off-track Betting. Amend RSA 284:12 by inserting after paragraph VI the following new paragraph:

VII. Rules for off-track betting as provided in RSA 284-A.

3 New Subparagraph; Gambling Addiction Education Fund Created. Amend RSA 6:12, I by inserting after subparagraph (iiii) the following new subparagraph:

(jjjj) Moneys received under RSA 284-A:10, IV, which shall be credited to the gambling addiction education fund established in 284-A:10.

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

LBAO

01-2164

9/18/01

HB 1239-FN-A - FISCAL NOTE

FISCAL IMPACT:

METHODOLOGY: