HB 1319-FN-A-LOCAL - AS INTRODUCED

2001 SESSION

01-2217

08/09

HOUSE BILL 1319-FN-A-LOCAL

AN ACT establishing the New Hampshire electronic gaming commission, creating New Hampshire electronic gaming districts, and authorizing the licensing and use of electronic gaming machines and equipment.

SPONSORS: Rep. Micklon, Rock 26; Rep. Holland, Rock 26; Rep. P. Katsakiores, Rock 13

COMMITTEE: Ways and Means

ANALYSIS

This bill:

I. Establishes the electronic gaming commission.

II. Establishes 8 gaming districts in the state.

III. Permits electronic gaming at race tracks, commercial bingo halls, and grand resort hotels.

IV. Establishes an electronic gaming 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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

01-2217

08/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand One

AN ACT establishing the New Hampshire electronic gaming commission, creating New Hampshire electronic gaming districts, and authorizing the licensing and use of electronic gaming machines and equipment.

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

1 Statement of Purpose. The general court finds that:

I. Allowing electronic gaming in limited locations under the direction and control of a strong electronic gaming commission provides substantial economic benefit to the state while maintaining strict control over the gaming industry, and limiting electronic gaming franchises fosters the spirit of competition among economic competitors resulting in maximum revenue generated for the state.

II. The pari-mutuel industry has a substantial positive impact upon the economies of the local communities in which racetracks are located as well as that of the state.

III. Commercial bingo halls have a substantial positive impact upon charities throughout the state, thereby decreasing the burden upon the state, municipalities, and New Hampshire residents to provide funding for such charities. Commercial bingo halls also provide substantial and positive contributions to the economies of the local communities.

IV. The grand resort hotels in New Hampshire provide substantial and positive impacts upon the economies of the local communities in which they are located, as well as that of the state. Grand resort hotels contribute substantially to the lodging and tourism industries in the state.

V. The pari-mutuel industry, commercial bingo halls, and the grand resort hotels face substantial competition from various sources. Racetracks in other jurisdictions are assessed lower taxes and receive substantial incentives to support this industry. Large casinos in other jurisdictions offer games which hurt the charities of New Hampshire, which rely on commercial bingo halls for assistance with funding. Large resort hotels in other states have access to state-created amenities to attract year-round guests.

VI. The general court specifically finds that allowing electronic gaming at racetracks, commercial bingo halls, and grand resort hotels would produce benefits for these important industries, and for the state through increased revenues which will assist with the funding of an adequate education to children in the state. Electronic gaming would maximize revenue to this state while relieving some of the tax burden currently imposed upon residents.

2 New Chapter; Electronic Gaming. Amend RSA by inserting after chapter 284 the following new chapter:

CHAPTER 284-A

ELECTRONIC GAMING

284-A:1 Definitions. In this chapter:

I. "Central communication system" means a system approved by the electronic gaming commission, linking all electronic gaming machines at licensee locations to a central location under the commission's control to provide auditing program information and any other information determined by the commission. The central communications system technology provider shall provide all computer hardware and related software necessary for the establishment and implementation of a comprehensive system as the commission requires.

II. "Commercial bingo hall" means a hall or any other facility owned or leased by an individual, corporation, realty trust, partnership, association or any other party which rented or leased to a charitable organization for the operation of bingo games in accordance with RSA 287-E and was licensed by the New Hampshire sweepstakes commission as a "commercial hall" in the year 1997.

III. "Commission" means the New Hampshire electronic gaming commission as established by this chapter or any successor agency or commission.

IV. "Electronic gaming machine" means an electronic, mechanical, or computerized machine licensed by the commission that, upon inserting cash, tokens, or any other consideration, by chance or skill, or both, the player may receive cash, tokens, or any other consideration. Electronic gaming machines shall include, but are not limited to, video poker machines, slot machines, and electronic gaming machines. Electronic gaming machines shall not include machines of any type which were lawfully operated before this chapter was enacted.

V. "Electronic gaming machine provider" means a technology provider specifically licensed by the commission to assemble or produce electronic gaming machines and associated equipment for use in license locations.

VI. "Franchise fee" means the fee the commission is authorized to impose upon licensees and technology providers under this chapter.

VII. "Grand resort hotel" means a facility:

(a) Operated with a minimum of 150 rooms in a single structure, with restaurant facilities in common ownership, available to the public during the calendar year 1997 or before; or

(b) Historically operated as a casino in this state and which presently contributes to the state's tourism industry by offering a minimum 18-hole golf course.

VIII. "Key employee" means an individual employee, person, or agent of an applicant or licensee who has the power to exercise significant influence over significant decisions concerning the applicant's or licensee's business.

IX. "License application fee" means the fee charged by the commission to consider the application of a licensee or technology provider.

X. "Licensee" means a race track, commercial bingo hall, or grand resort hotel as defined in this section which has been licensed under the provisions of this chapter by the commission.

XI. "Licensee location" means the race track, commercial bingo hall, or grand resort hotel operated by the licensee.

XII. "Net machine income" means all cash or other consideration utilized to play electronic gaming machines as defined in this section minus cash or other consideration paid to players of electronic gaming machines as winnings.

XIII. "Race track" means a facility which operated live dog or horse racing for pari-mutuel betting purposes in the year 1997.

XIV. "Technology provider" means any individual, firm, corporation, or other entity, which is approved and licensed by the commissioner:

(a) As an electronic gaming machine provider which designs, manufacturers, installs, operates, distributes or supplies electronic gaming machines as defined by this chapter, and related equipment, for sale or use for conducting electronic gaming in accordance with this chapter, or

(b) To supply, operate, or maintain the central communication system required to be implemented pursuant to this chapter.

284-A:2 Electronic Gaming Commission Established. There is established a state electronic gaming commission consisting of 7 members appointed by the governor with the consent of the council. The commission shall include the following: an attorney proficient in New Hampshire regulatory law; a certified public accountant with knowledge of corporate finance, a corporate manager with 5 years of relevant experience, a member of law enforcement, and 3 public members. Each member shall serve for a 3-year term and until a qualified successor has been appointed. The members shall choose a chairperson and secretary. The secretary shall record the commission's proceedings and preserve its records. A majority of the members shall constitute a quorum to conduct the commission's business.

284-A:3 Electronic Gaming Commission Powers and Duties.

I. The commission shall be the regulatory body responsible for licensing and overseeing all electronic gaming authorized to be conducted in this state. The commission shall have all the powers conferred upon it by this chapter in addition to any other powers and duties conferred upon it by other applicable law.

II. No commission member shall have a financial interest in any entity which conducts business under the commission's regulatory authority.

III. The commission shall maintain an office in Concord, and may conduct its business in such other locations as it deems necessary to carry out the intent of this chapter.

IV. The commission shall establish a central communications system pursuant to RSA 284-A:14.

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

VI. The commission shall have the power to conduct hearings at which all matters pertaining to the administration of the affairs of the commission and all activities conducted under its jurisdiction may be investigated and determined. The procedures and rules for such hearings shall be the procedures and rules set forth for hearings pursuant to RSA 284:13.

VII. The commission shall monitor the financial condition of its licensees on a continuing basis and shall have the power to revoke, after hearing, any license if in its judgment the financial condition of the license holder does not warrant the continuation of the license. As an alternative to revocation, the commission may impose conditions upon the continued possession of the license as the commission deems necessary to the functioning of the licensee on a sound financial basis.

VIII. The commission shall purchase or lease all electronic gaming machines to be used pursuant to this chapter from electronic gaming machine manufacturers licensed pursuant to this chapter and the commission's rules. The commission shall purchase or lease electronic gaming machines pursuant to a competitive bidding process.

IX. With regard to minutes and records of the commission:

(a) The commission shall cause to be made and kept a record of all proceedings held at public meetings of the commission. A verbatim transcript of those proceedings shall be prepared by the 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) All information and data required by the commission to be furnished to it, or which may otherwise be obtained, relative to the finances, earnings or revenue, except the net machine income, of any licensee shall be considered 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.

(c) All information and data pertaining to an applicant's criminal record, family, and background furnished to or obtained by the commission from any source shall be considered confidential and shall not be revealed, in whole or 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.

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

X. The commission is authorized to employ such assistants and employees as it may deem necessary to provide adequate policing and to carry out the purposes of this chapter at a rate of compensation set by the state personnel commission. The commission shall specify the duties to be performed by assistants and employees and shall have the authority to terminate any assistant or employee subject to the regulations of the state personnel commission.

XI. Each member of the commission shall receive a salary of $7,781 per year and shall be reimbursed for reasonable expenses, including transportation, incurred in the performance of the members' duties, to be audited and allowed by the governor and council.

XII. The compensation and expenses of the commissioners and their assistants and employees, and other necessary expenses such as furniture, equipment, supplies, and office expense, shall be charged to and paid out of the funds received under the provisions of this chapter.

XIII. The commission shall make an annual report to the governor and council on or before April 1 of each year, including therein an account of its actions, receipts derived under the provisions of this chapter, the practical effects of the application of this chapter, and any recommendation for legislation which the commission deems advisable.

XIV. The commission shall adopt rules, pursuant to RSA 541-A, relating to electronic gaming as specified in this chapter which shall include but not be limited to the following:

(a) Application procedures for all licensees.

(b) The procedure under which the commission may contract with technology providers.

(c) The amount which can be played on any one electronic gaming machine game at a licensee location.

(d) The amount of payout from electronic gaming machines provided that such payout shall average not less than 90 percent on an annual basis.

(e) Any other rule necessary to carry out the commission's duties pursuant to this chapter.

284-A:4 New Hampshire Electronic Gaming Districts. There are established 8 New Hampshire electronic gaming districts which are particularly described as follows:

I. The "seacoast gaming district" shall include the municipalities and unincorporated towns through which route 125 passes and all cities and towns east of route 125 excluding the city of Rochester.

II. The "southern gaming district" shall include that part of Rockingham county which is not in the seacoast gaming district and which lies in executive counselor district 3 as the boundaries of district 3 exist on the date this chapter is enacted.

III. The "Merrimack valley gaming district" shall include Hillsborough county and that part of Rockingham county which is not in the seacoast gaming district or the southern gaming district.

IV. The "Monadnock gaming district" shall include all of the municipalities and unincorporated towns located in Cheshire county and Sullivan county.

V. The "capitol region gaming district" shall include:

(a) All municipalities and unincorporated towns located in Merrimack county.

(b) The municipalities and unincorporated towns in Belknap county and Strafford county which are not included in the definition of another gaming district in this section.

(c) The city of Rochester.

VI. The "lakes regions gaming district" shall include:

(a) The municipalities and unincorporated towns of Belknap county and Strafford county through which route 11 and route 3 pass, including the city of Laconia, and all the municipalities and unincorporated towns north of route 11 and route 3.

(b) The municipalities and unincorporated towns in Carroll county through which route 112 and route 302 pass and all cities and towns to the south of route 112 and route 113 in Carroll county.

VII. The "White Mountains gaming district" shall include all municipalities and unincorporated towns of Grafton county and Carroll county which are not included another gaming district.

VIII. The "north country gaming district" shall include all municipalities and unincorporated towns in the state senatorial district 1 as the boundaries of district 1 exist on the date this chapter is enacted.

284-A:5 License Applications.

I. Any person, association, or corporation desiring a license under this chapter shall submit an application to the commission, which is signed and sworn to, as set forth in this chapter and in the commission's rules. The commission shall provide a standard application form for licenses which, at a minimum, shall contain the following information:

(a) The full name and address of the person, association, or corporation.

(b) If the owner is not a natural person, the state in which the owner is formed and its principal place of business.

(c) The names and addresses of officers, directors, shareholders, managers, or partners of the person.

(d) The exact location where the gaming machines are proposed to be located.

(e) A statement of assets and liabilities of the person making the application.

(f) Such other information as the commission may require.

II. The applicant shall immediately inform the commission of any material change or anticipated material change in the information provided to the commission during the application process and while the licensee holds a license issued under this chapter.

III. The commission may require, at the applicant's expense, that any information provided to the commission under this section be verified by an audit performed by a certified public accountant.

IV. The commission, with the aid of the attorney general, shall conduct a criminal background check of the applicant and its officers, directors, partners, owners, and key employees under the procedure established for investigations pursuant to RSA 284:15-b. The applicant shall pay the cost of any background investigation conducted pursuant to this chapter.

284-A:6 Licensee Location Applications. Applicants seeking to operate a licensee location are subject to the following requirements in addition to the requirements of RSA 284-A:5:

I. The commission may require that, as a condition of continuing to hold a license under this chapter, the licensee make its books and records available to the commission or its agent to perform such independent auditing or financial analysis as the commission may deem necessary. The applicant or licensee shall bear the expense of such auditing or financial analysis.

II. A licensee location which is both a race track and commercial bingo hall may apply for only one license under this chapter. Such a licensee location shall apply pursuant to its race track designation and not as a commercial bingo hall.

III. The commission may require the applicant to provide a copy of its federal, state, and local tax returns for inspection upon request.

IV. The approval or renewal of any license is subject to the following additional conditions:

(a) The licensee agrees to abide by all provisions of this chapter and the commission's rules.

(b) The licensee agrees that, at all times on a 24-hour unannounced basis, it shall make its premises and records available for inspection by the commission's representatives or state law enforcement personnel without the requirement of a warrant.

(c) The licensee and any entity owned by the licensee consents in writing that the commission may inspect all accounts, bank accounts, and records under the licensee's control, and, upon request, shall authorize all third parties to release any information to the commission.

(d) A licensee shall immediately notify the commission of any proposed or effective change regarding owners, directors, officers, partners, or key employees of the licensee.

V. A business plan must accompany each license application.

VI. The commission shall award licenses on a competitive basis based upon the information provided in the application, business plan, and other information. The commission shall award licenses to maximize revenue to the state and further the purpose of this chapter.

VII. RSA 284:39 is deemed applicable to licensees under this chapter.

284-A:7 License Fees. The commission is authorized to establish and collect a license application fee of $100 from licensee locations and $1,000 from technology providers. The commission is authorized to establish and collect a franchise fee of $5,000 per year from licensee locations and $10,000 per year from technology providers. The fees collected shall be remitted to the office of alcohol and drug abuse prevention, department of health and human services, to provide services to treat gambling addictions under RSA 172.

284-A:8 Licenses.

I. No license to operate a licensee location shall be granted under this chapter in a municipality or unincorporated town unless and until such municipality or unincorporated town approves electronic gaming pursuant to RSA 284-A:17.

II.(a) Licenses may be issued under this chapter only to technology providers and the following licensee locations:

(1) Race tracks.

(2) Commercial bingo halls.

(3) Grand resort hotels in the White Mountains and North Country gaming districts.

(b) The commission shall issue licenses to 2 licensee locations in each of the following gaming districts: seacoast, southern, Merrimack, White Mountains, and north country. The commission shall license only one licensee location in each of the following districts: Monadnock, capitol region, and lakes region.

III. The commission shall establish a licensure requirement and enforcement procedure, which shall take no more than 90 days to complete unless extenuating circumstances require a longer period, in which case the commission shall act with all deliberate speed to complete the process, for officers, directors, key employees and persons who:

(a) Own directly or indirectly 10 percent or more of a licensee location; and

(b) Propose to contract with a licensee or the state for the provision of goods or services related to electronic gaming to include management services, electronic game machine manufacturers and the central communication system provider.

IV. The license to operate a licensee location granted under this chapter shall immediately be automatically revoked if:

(a) A race track does not have the minimum number of live race days required in RSA 284:22-a, II(3)

(b) A commercial bingo hall ceases to rent or lease its premises for a minimum of 250 days per year to charitable organizations for the operation of bingo games in accordance with RSA 287-E;

(c) A grand resort hotel:

(1) Ceases to operate with a minimum of 150 rooms in a single structure available to the public, with restaurant facilities in common ownership; or

(2) Ceases to be of historic value to New Hampshire's gambling industry and fails to maintain a minimum 18-hole golf course.

V. Any license granted or renewed under this chapter shall not be transferred, assigned, or pledged as collateral. Upon such a change in ownership, the license shall become void.

VI. No individual, corporation, realty trust, partnership, association, or any other entity may maintain an ownership interest in more than one licensee location in which electronic gaming is conducted under this chapter. No licensee location may apply to conduct electronic gaming under more than one licensee location designation.

VII. A license expires 5 calendar years from the date the license is issued unless earlier revoked by the commission. The date of issue shall be visible on the license. A licensee location shall apply for license renewal 6 months before the license expires. At the time of the renewal application, other licensee locations within the same gaming district may submit an application and business plan to compete for the licenses due to expire. The commission shall treat the renewal application as if it is an original application.

VIII. The commission may suspend or revoke a license for good cause shown after reasonable notice and a hearing.

IX. The commission may require the removal of an employee or official of a licensee as a condition of maintaining the license.

X. A licensee shall follow the requirements of this chapter, the commission's rules and all other applicable law as a condition of maintaining its license.

XI. A licensee may enter into one or more agreements to manage the operation of electronic gaming at its licensee location. All entities seeking to provide such management services, which may include technology providers, shall be approved by the commission.

284-A:9 Enforcement of Chapter. It shall be the duty of the attorney general to enforce the provisions of this chapter upon notification from the commission of any violations of this chapter.

284-A:10 Limitation on Number of Machines and Placement.

I. There shall be no more than 700 electronic gaming machines in the seacoast and southern districts. There shall be no more than 500 electronic gaming machines in the capitol region and Monadnock districts. There shall be no more than 400 electronic gaming machines in the Merrimack Valley, White Mountains and north country districts. There shall be no more than 200 machines in the lakes region district.

II. The commission shall control the number of electronic gaming machines which may be present at each licensee location based upon the information provided in the licensee's business plan.

(a) No race track shall have more than 500 machines.

(b) No commercial bingo hall shall have more than 200 machines.

(c) No grand resort hotel shall have more than 200 machines.

III. Children under 18 years of age shall be accompanied by a parent or guardian over age 25 wherever electronic gaming is conducted at a licensee location.

284-A:11 Restrictions not Applicable. The restrictions on gambling and gaming activity in RSA 284:17-c and RSA 287-C:1 shall not apply to any activity which is permitted under this chapter.

284-A:12 Disclosure of Information. Any person, association or corporation applying for or holding a license pursuant to this chapter shall file annually, no later than December 31 of each year, with the attorney general a complete and detailed written statement, signed under oath by the applicant or holder of such license, or by the officers of the applicant or holder if a corporation or association containing such information as the commission may by rule prescribe in addition to the information listed in RSA 284:15-b.

284-A:13 Right to Know Exemption. Any information deemed confidential under RSA 284-A:3, X, provided to or received by the commission shall be exempt from disclosure under the right to know law, RSA 91-A.

284-A:14 Central Communications.

I. The commission, in order to assure the integrity of its accounting system, shall operate the electronic gaming machine network through a central communications system. The central communications system shall be capable of auditing the operation, financial data, security, and program information of the electronic gaming machine network.

II. The central communications system shall be used exclusively for the operation of the electronic gaming machine network and shall incorporate electronic fund transfer procedures to facilitate the collection of revenue, be capable of disabling any machine from play which does not comply with the provisions of this chapter, and be capable of communicating with all electronic gaming machines approved by the commission. The commission shall provide licensed technology providers with the protocol documentation and the audit information and controls necessary to enable the providers' machines to communicate with the commission's central communication system. The central communication system shall not limit participation to only one manufacturer of electronic gaming machines or electronic gaming machine associated equipment by either the cost of implementing necessary program modifications to communicate or the inability to communicate with the system.

284-A:15 Technology Providers.

I. The commission shall license technology providers to supply electronic gaming machines and related equipment capable of interfacing with the central communications system controlled by the commission. To supply, operate, and maintain the central communication system, the commission shall use the services of the technology provider currently providing such services to the New Hampshire sweepstakes commission during the first 5 years this chapter is in effect. The commission shall thereafter establish a competitive bid procedure for future contracts. All technology providers shall install, operate, own, or lease electronic gaming machines and equipment only at licensee locations.

II. In making its licensing decisions under this section, the commission shall select technology providers based upon the following factors:

(a) Providers experienced in performing comparable projects.

(b) Financial stability.

(c) Technical and management abilities.

(d) The quality of the project and service capabilities.

(e) Likelihood of timely performance.

(f) Maximum revenue generation.

(g) A provider's ability to pass a criminal background investigation.

(h) The providers past dealing with the state.

(i) Any other factor the commission finds relevant to contract performance.

284-A:16 Prohibited Use.

I. No person under 21 years of age shall play an electronic gaming machine.

II. No licensee shall:

(a) Knowingly permit a person under 21 years of age to play an electronic gaming machine, purchase a cash voucher, or pay on a credit.

(b) Knowingly permit a person under 21 years of age to enter a segregated gaming room of a licensee location unless accompanied by a parent or guardian over 25 years of age.

III. Each violation of either paragraph I or II of this section shall be punishable by a fine of up to $5,000 per offense and loss of the license issued pursuant to this chapter.

IV. Any person who, with the intent to manipulate the outcome, payoff or operation of an electronic gaming machine, manipulates the outcome, payoff or operation of any electronic gaming machines by physical, electrical or mechanical means, shall be guilty of a felony punishable by a term of imprisonment of up to 7 years, a fine of up to $10,000 per offense, and loss of the license issued pursuant to this chapter.

284-A:17 Procedure to Adopt.

I. Any municipality or unincorporated town may decide to adopt the provisions of RSA 284-A which allows the operation of electronic gaming in the following manner:

(a) In a town, the question may 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 by ballot. In a city, the legislative body of a city may vote to place the question on the official ballot for any regular municipal election, or, in the alternative, may 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 may hold a public hearing on the question at least 15 days but not more than 30 days before the day of the vote. 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: "Shall we allow electronic gaming machines to be licensed and operated under the authority of the electronic gaming commission in the municipality?"

II. If a majority of those voting on the question votes "Yes" RSA 284-A shall apply within the city or town 30 days from the date of the vote approving electronic gaming.

III. The licensee locations in a particular municipality shall pay the costs associated with an election held pursuant to this section or the cost of placing the question on the ballot of an annual election.

284-A:18 Electronic Gaming Fund. An electronic gaming fund is established, and this fund shall be nonlapsing and continually appropriated as follows.

I. Sixty percent of the "net machine income" shall be reported and remitted to the commission, less expenses and fees for the technology provider. The commission may lease, purchase or pay a fee from the net machine income, not to exceed 11 percent of the net machine income, to technology providers which supply the terminals to the licensee and central communications services to the state. Money derived by the commission from electronic gaming, less the amount paid to technology provider, shall be deposited in this fund.

II. Thirty-five percent of the net electronic game machine income shall be remitted to the licensee location of the electronic game machines.

(a) Racetrack licensees shall contribute no less than 5 percent of net machine income to purses for live races run at the licensee location.

(b) Commercial bingo hall licensees shall contribute 5 percent of net machine income to the charities that conducted bingo games at the licensee location.

(c) All licensee locations shall contribute one percent of net machine income to the state office of tourism, department of resources and economic development to be used by the department to promote tourism in New Hampshire.

III. Five percent of the net machine income shall go equally to the municipalities in which the licensee locations are located.

IV. One percent of the net machine income shall go equally to the counties in which the licensee locations are located.

V. One percent of the net machine income shall go equally to charities registered with the attorney general's office director of charitable trusts pursuant to RSA 7:19. These funds shall be collected by the commission and disbursed pursuant to RSA 284-A:18, V(b).

VI. All distributions:

(a) To be made pursuant to RSA 284-A:18, I, II(a) - (c), and III shall be made within 30 business days after the end of each month in which the net machine income is generated;

(b) To charities pursuant to RSA 294-A:18, IV shall be made annually by the commission after verification of charitable status through the director of charitable trusts.

3 Gambling Addiction Added. Amend RSA 172:2-a to read as follows:

172:2-a Program Established. The commissioner shall provide for the scientific care, treatment, and rehabilitation of gambling, alcohol, and drug abusers, and work towards the prevention of, and assist in the control of, gambling, alcohol, and drug abuse within the state through education, treatment, community organization, and research.

4 Gambling Addiction Added. Amend RSA 172:8 to read as follows:

172:8 Duties of Commissioner. The commissioner shall:

I. Study the problems presented by gambling, alcohol, and drug abuse, including methods and facilities available for the care, treatment, custody, employment, and rehabilitation of persons who are inebriates, alcohol abusers, drug dependent, [or] drug abusers, or gambling addicts.

II. Promote meetings and programs for the discussion of gambling, alcohol, and drug dependency and abuse for the guidance and assistance of individuals, schools, courts, and other public and private agencies.

III. Conduct, promote and finance, in full or in part, studies, and other appropriate facilities dealing with the physical, psychological, and/or social aspects of gambling, alcohol, and drug abuse.

IV. Have the authority to accept or reject for examination, diagnosis, guidance, and treatment, insofar as funds and facilities permit, any resident of the state who comes to the commissioner voluntarily for advice and treatment.

V. [Repealed.]

VI. Render biennially to the governor and council a report of his activities including recommendations for improvements therein by legislation or otherwise.

VII. Coordinate community medical resources for the emergency medical care of persons suffering acute mental or physical reaction to gambling, alcohol, or drugs and of persons suffering from drug dependency.

VIII. Employ such assistants as may be necessary to carry out the purposes of this chapter, in accordance with state personnel regulations, and within available appropriations and funds.

IX. Disseminate information on the subjects of gambling, alcohol, and drug abuse for the guidance and assistance of individuals, schools, courts and other public and private agencies.

X. [Repealed.]

5 Gambling Addiction Added. Amend RSA 172:8-a to read as follows:

172:8-a Confidentiality of Client Records. No reports or records or the information contained therein on any client of the program or a certified gambling, alcohol, or drug abuse treatment facility or any client referred by the commissioner shall be discoverable by the state in any criminal prosecution. No such reports or records shall be used for other than rehabilitation, research, statistical or medical purpose, except upon the written consent of the person examined or treated. Confidentiality shall not be construed in such manner as to prevent recommendation by the commissioner to a referring court, nor shall it deny release of information through court order pursuant to appropriate federal regulations.

6 Gambling Addiction Added. Amend RSA 172:8-b to read as follows:

172:8-b Rulemaking. The commissioner shall adopt rules under RSA 541-A relative to the following:

I. The acceptance, care and treatment of gambling, alcohol, or drug dependent persons and alcohol or drug abusers who are clients of the program established under this chapter or a certified substance abuse treatment facility.

II. A fee schedule and collection of fees under RSA 172:14, IV.

III. Certification of substance abuse treatment facilities including, but not limited to:

(a) Program content;

(b) Qualifications of program staff; and

(c) Type of substance abuse treatment offered.

IV. Certification and recertification of gambling, alcohol, and drug abuse counselors including, but not limited to:

(a) Peer review of applicants.

(b) Minimum qualifications and competency.

(c) Education and continuing education.

(d) Experience required.

(e) Required knowledge of gambling, alcohol and drug abuse counseling.

(f) Such other matters as the commissioner may deem necessary to carry out the purposes of this chapter.

V. Voluntary admissions under RSA 172:13.

7 New Subparagraph; Application of Receipts. Amend RSA 6:12, I by inserting after (iiii) the following new subparagraph:

(jjjj) Moneys received under RSA 284-A:18, I, which shall be credited to the electronic gaming fund.

8 Effective Date. This act shall take effect 60 days after its passage.

LBAO

01-2217

Revised 11/27/01

HB 1319 FISCAL NOTE

AN ACT establishing the New Hampshire electronic gaming commission, creating New Hampshire electronic gaming districts, and authorizing the licensing and use of electronic gaming machines and equipment.

FISCAL IMPACT:

The Pari-Mutuel and Sweepstakes Commissions, Administrative Office of the Courts, Judicial Council and Departments of Corrections and Health and Human Services indicate they cannot estimate this bill's fiscal impact on state, county and local revenues or expenditures. The Department of Justice indicates this bill will increase state general fund expenditures by $323,500 in FY 2003, $339,675 in FY 2004, $356,659 in FY 2005 and $374,492 in FY 2006.

METHODOLOGY:

The Department of Justice states it will need to hire two Investigators, one Accountant, one Attorney and one Secretary to comply with the terms of this bill. The salaries, benefits and operational costs account for the increase in state general fund expenditures.

The agencies listed below could not estimate the impact of this bill but did offer the following information:

· Department of Corrections - Cannot estimate how many people will be incarcerated under the terms of the bill but indicates the annual cost of incarceration for one inmate is $24,814.

· Administrative Office of the Courts - Indicates there will be no fiscal impact on their Office as a result of this bill.

· Judicial Council - States the fiscal impact of this bill is indeterminable.

· Sweepstakes Commission - States this bill will decrease Sweepstakes revenue by an indeterminable amount.

· Pari-Mutuel Commission - Indicates there are too many variables to accurately estimate total income from the electronic gaming machines. Assumes each machine will provide $296 in net machine income per day, 365 days per year.

· Health and Human Services - Cannot estimate the amount of revenue that will be available to fund expenditures but indicates they intend to establish a Counselor position at each of the 12 outpatient community agencies, at an estimated cost which includes salary, benefits and operating costs of $44,700 each, for a total of $536,400. The Department will also add one full-time position for technical assistance, coordination, contract management, and performance review. Salary, benefits, and operating costs will total $49,288. Thus, the total estimated cost for FY 2003 will be $585,688 ($536,400 + $49,288). Costs are expected to increase each year because of salary increases and inflation.