SB 0127

AN ACT authorizing the sweepstakes commission to license multi-hall linked bingo for charitable purposes.

SPONSORS: Sen. Martel, Dist 18; Sen. Green, Dist 6; Sen. Gallus, Dist 1; Rep. Dickinson, Carr 4; Rep. J. Brown, Straf 67; Rep. Belanger, Rock 76; Rep. Eaton, Ches 24

This bill authorizes the sweepstakes commission to license multi-hall linked bingo for charitable purposes.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

AN ACT authorizing the sweepstakes commission to license multi-hall linked bingo for charitable purposes.

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

1 New Chapter; Multi-Hall Linked Bingo. Amend RSA by inserting after chapter 287-F the following new chapter:

II. "Central computer operator" means an entity licensed by the sweepstakes commission to operate a central computer to which multi-hall linked bingo games are electronically linked.

IV. "Commercial bingo hall" means a location licensed by the commission under the provisions of RSA 287-E:4, II-a and RSA 287-E:5, VI.

VI. "Gross machine income" means all cash or other consideration used to play a multi-hall linked bingo game on a multi-hall linked bingo machine.

VII. "Multi-hall linked bingo" means any game, by whatever name called, played on an electronic card marked into squares containing numbers in a predetermined design, for that purpose, and linked to other such electronic cards by a central computer, in which a prize is offered to one or more players playing against each other first covering squares in a bingo game at the same or multiple licensed locations.

VIII. "Multi-hall linked bingo game machine" means an electronic bingo system in which players play multi-hall linked bingo games against other individuals utilizing electronic player stations that display no more than 15 bingo cards on each station for each game played, and which are electronically linked by a central computer.

IX. "Net machine income" means all cash or other consideration remaining after deducting prizes from gross machine income.

X. "Prizes" means all cash or other consideration paid to players of multi-hall linked bingo. 287-G:2 Administration and Enforcement. The sweepstakes commission shall administer and the commissioner of safety shall enforce this chapter relating to multi-hall linked bingo.

287-G:3 Rulemaking. The commission shall adopt rules, pursuant to RSA 541-A, relative to:

III. The application procedure for distributor and manufacturer licenses under RSA 287-G:10.

IV. The application procedure for multi-hall linked bingo game central computer operator.

VIII. The rental of facilities and the leasing of equipment for use in multi-hall linked bingo games.

IX. Accountability controls to ensure game integrity, including, but not limited to, cash, attendance, prizes, income, expense and financial reporting, and record-keeping to be implemented by licensed charitable organizations.

I. A license to operate multi-hall linked bingo games issued by the commission shall authorize a charitable organization to conduct multi-hall linked bingo as defined in RSA 287-G:1.

II. The commission shall not allow more than 75 multi-hall linked bingo machines to be in operation at any one location, at any given time.

III. A commercial bingo hall licensed under the provisions of RSA 287-E shall also permit the operation of multi-hall linked bingo under the provisions of this chapter. Any facility used by a charitable organization to operate multi-hall linked bingo must be licensed as a commercial bingo hall under RSA 287-E unless the licensed charitable organization conducting multi-hall linked bingo at the facility is the owner of the facility.

IV. Multi-hall linked bingo licenses shall be issued only to charitable organizations which meet the requirements of RSA 287-E:5 and paragraph V of this section.

V. Multi-hall linked bingo licenses may be issued to a charitable organization to conduct bingo games only under the following conditions:

(a) No more than one license shall be issued to a charitable organization per calendar month, and the license shall permit no more than 10 game dates of multi-hall linked bingo in one calendar month. A charitable organization issued a license under this section may also be issued a license under RSA 287-E to conduct paper.

(b) The provisions of subparagraph (a) notwithstanding, a license may be issued to a charitable organization per fiscal year, and the license shall permit no more than 10 game dates of multi-hall linked bingo in one calendar month and no more than 120 game dates of multi-hall linked bingo in one calendar year. The license shall expire on the last game date authorized under the license. Charitable organizations electing to receive an annual license under this paragraph shall be ineligible to receive concurrently a monthly license under subparagraph (a), and charitable organizations licensed under subparagraph (a) shall be ineligible to receive concurrently an annual license under this subparagraph.

(d) No more than 2 licensed charitable organizations may conduct bingo games at any one location on any specified date.

(f) A license to operate multi-hall linked bingo shall allow the licensee to operate such games between the hours of 1:00 p.m. and the following 1:00 a.m. Monday through Saturday, and between the hours of 1:00 p.m. and 12:00 a.m. on Sunday.

287-G:5 Copies of Records. The commission shall forward copies of all records relating to multi-hall linked bingo licensing, taxes, and financial reports to the commissioner of safety.

I. Each charitable organization shall pay to the commission a fee of $25 for each day the organization conducts multi-hall linked bingo, provided that if the organization conducts paper bingo as provided for in RSA 287-E on the same day that they conduct multi-hall linked bingo and has paid the fee required under RSA 287-E:4, I, the fee required under this paragraph shall be waived.

II. All funds collected by the commission under this section shall be deposited in the special fund established under RSA 284:21-j.

I.(a) Only bona fide members of charitable organizations shall operate multi-hall linked bingo games; except that, if all bona fide members of a charitable organization are under 18 years of age, adult officers or directors of the charitable organization or parents or legal guardians of bona fide minor members, who have been authorized by the officers or directors of the charitable organization, shall operate the games. Proof of bona fide membership shall be required.

(b) Notwithstanding subparagraph (a), if, by reason of the established criteria for membership, all bona fide members of the charitable organization are physically or mentally disabled, or both, the officers, directors, or authorized officials of the charitable organization may designate individuals to conduct the operation of multi-hall linked bingo games on behalf of said charitable organization. Individuals so designated are subject to all applicable provisions of this chapter, and the designation of such individuals is subject to the approval of the commission.

(c) Notwithstanding subparagraph (a), all charitable organizations that conduct multi-hall linked bingo games for charitable purposes may allow spouses, sons, and daughters of bona fide members who are at least 18 years of age to assist with the operation of the multi-hall linked bingo games. A list of the names of the persons assisting shall be submitted to the department of safety prior to the scheduled bingo event.

II. No compensation shall be paid to operators of a bingo game. Compensation shall include, but is not necessarily limited to, money or any other thing of value. Operators of multi-hall linked bingo games may be reimbursed for their out-of-pocket expenses in an amount not to exceed $25 per game date, provided that such expenses are itemized and submitted in writing to the charitable organization.

III. Notwithstanding paragraphs I and II, a charitable organization may designate non members to operate multi-hall linked bingo games during times when the charitable organization is not simultaneously conducting a paper bingo game licensed under RSA 287-E. Such non-member operators must be approved by the commission in advance and may be compensated by the owner or operator of the facility where the multi-hall linked bingo game takes place.

IV. Raffles permitted under RSA 287-A and RSA 287-D may be conducted at the same time and in the same place as a multi-hall linked bingo game licensed under this chapter.

V. All multi-hall linked bingo game equipment used in conducting multi-hall linked bingo games shall be subject to inspection and approval by the commission.

I. No one under the age of 18 years shall be admitted on the premises on which multi-hall linked bingo games are being conducted. Proof of age shall be produced upon request of the commission.

II. No bingo chairperson, bingo treasurer, or person who has leased out a facility or sold or leased bingo paraphernalia or related equipment to a charitable organization for use during multi-hall linked bingo games shall participate or play in any game conducted at that location on that date.

III. A person who volunteers to assist in the operation of a multi-hall linked bingo game may play bingo after assisting with the operation of the game; provided that once a person has played multi-hall linked bingo on a given date, that person may no longer assist with the operation of the bingo game on that date.

IV. No person who has been convicted of any criminal offense or who has violated any of the statutes or rules governing charitable gambling in this or any other state shall operate a multi-hall linked bingo game licensed under this chapter, or rent, lease, sublease, or otherwise provide any hall or bingo paraphernalia for the conduct of multi-hall linked bingo licensed under this chapter.

V. No charitable organization shall act as an agent for operating multi-hall linked bingo games when it is unlawful for the charitable organization's principal to conduct bingo or multi-hall linked bingo games.

I. Multi-hall linked bingo machines shall pay out to the players in prizes not less than an average of 80 percent of gross machine income, annually.

II.(a) In the event that the charitable organization licensee purchases the multi-hall linked bingo machines used by the licensee to play multi-hall linked bingo, and owns the property where the multi-hall linked bingo game is played, not less than 73 percent of net machine income each day shall be retained by the charitable organization licensee, less any fees paid under paragraphs III and IV.

(b) Not more than 5 percent of net machine income each day shall be paid to a distributor licensed under this chapter for maintenance and distribution of multi-hall linked bingo machines.

(c) Not more than 20 percent of net machine income each day shall be paid to the central computer operator licensed under this chapter.

(d) Two percent of net machine income each day shall be paid to the state by the charitable organization licensee as an administration fee. The charitable licensee shall pay the state fee not later than 10 days after the game date at which the fee was collected.

III. In the event that the charitable organization licensee leases or rents the multi-hall linked bingo machines used to play multi-hall linked bingo from a licensed manufacturer or distributor, the licensee may pay the manufacturer or distributor a rent or lease fee not to exceed an amount equal to 20 percent of the daily net machine income received by the charitable organization from the conduct of multi-hall linked bingo.

IV. In the event the charitable organization licensee does not own the premises where the multi-hall linked bingo game is played, the licensee may pay a fee for use of the premises to play multi-hall linked bingo to an entity licensed for that purpose under this chapter, said fee shall not exceed 20 percent of the daily net machine income received by the charitable organization from the conduct of multi-hall linked bingo.

287-G:10 Distributors and Manufacturers of Multi-hall Linked Bingo Equipment; Central Computer Operator.

I. The commission shall license distributors and manufacturers of multi-hall linked bingo machines sold, leased, or rented in this state. A distributor with a current New Hampshire license for distribution of lucky 7 tickets shall be authorized to distribute multi-hall linked bingo machines, and shall not be required to file for licensing under this section. All multi-hall linked bingo machines shall be purchased, leased, or rented from a licensed distributor or manufacturer, and shall be manufactured by a licensed manufacturer.

II. All multi-hall linked bingo machines sold, leased or rented to charitable organizations by New Hampshire licensed distributors or manufacturers shall be recorded by serial numbers and listed on the charitable organization's invoices. A license shall be issued to a distributor or manufacturer under the following conditions, provided that the commission may, by rule, establish additional reasonable qualifications for licenses:

III The applicant for a distributor's license shall pay to the commission a fee of $10,000 per year or any part of a year. Such fee shall authorize the distribution and maintenance of multi-hall linked bingo machines within the State of New Hampshire. A distributor with a current New Hampshire license for distribution of lucky 7 tickets shall not be required to pay the additional licensing fee under this section.

IV. The applicant for a distributors license shall certify that neither the applicant nor any partner, officer, or director has been convicted of a felony, which has not been annulled by any court, within 10 years from the date of application.

V. Each multi-hall linked bingo distributor licensee shall post a bond in the amount of $50,000, conditioned upon the licensee's compliance with the rules of the commission. A distributor with a current New Hampshire license for distribution of lucky 7 tickets shall not be required to post the additional bond under this section.

VI.(a) The commission is authorized to issue a special license to manufacturers of multi-hall linked bingo machines leased, rented, or sold in the state. A manufacturer with a current New Hampshire license to manufacture lucky 7 tickets shall not be required to pay the additional licensing fee under this paragraph.

(b) The fee for such special license shall be $10,000 per year or for any part of a year.

(c) The applicant for a manufacturers license shall certify that neither the applicant nor any partner, officer, or director has been convicted of a felony, which has not been annulled by any court, within 10 years from the date of application.

VII. Each multi-hall linked bingo manufacturer licensee shall post a bond in the amount of $50,000, conditioned upon the licensee's compliance with the rules of the commission. A distributor with a current New Hampshire license for distribution of lucky 7 tickets shall not be required to post the additional bond under this section.

VIII.(a) The commission is authorized to issue a license to the operator of a multi-hall linked bingo central computer operator. The applicant for a multi-hall linked bingo central computer operator license shall provide evidence satisfactory to the commission that the applicant possesses the necessary expertise to operate the central computer system.

(b) The central computer applicant shall certify that neither the applicant nor any partner, officer, or director has been convicted of a felony, which has not been annulled by any court, within 10 years from the date of application.

(c) The central computer operator shall provide to the commission a report of daily accounting of all multi-hall linked bingo games linked by the computer operator. Such report shall include an accounting of all revenue received and distributed and any other information required by the commission. All information gathered by the central computer operator under the provision of this section shall be maintained by the operator for a period of at least three years.

(d) The fee for the central computer operator license shall be $10,000 per year or any part of a year, provided that if the central computer operator has paid any other fee required under this section no additional fee shall be required.

(e) The commission is authorized to require the multi hall linked bingo central computer operator and/or manufacturer's system to be certified by a nationally recognized independent testing laboratory selected by the commission, prior to the issuing of a license, and subsequently as the commission deems necessary. The fees associated with such testing shall be paid by the central computer operator and/or the manufacturer.

I. A charitable organization which has been licensed to conduct multi-hall linked bingo games shall submit a complete financial report to the commission for each license issued under this chapter within 15 days after the expiration of each license.

II. The financial report shall be completed by the treasurer of the charitable organization or a duly authorized officer, director, or official of the charitable organization who shall certify such accounting under oath.

(d) The names and addresses of any non-members of the charitable organization who were compensated for operating the licensed games in accordance with RSA 287-G:7, III.

(e) The name and address of any person, partnership, corporation or other entity from whom equipment used at the licensed games was rented or leased.

(f) The name and address of any person, partnership, corporation or other entity from whom premises were leased or rented to conduct the licensed games.

IV. All charitable organizations licensed under this chapter shall maintain a separate checking account for the deposit and disbursement of all income relating to multi-hall linked bingo, except cash prizes awarded at the games. All expenses shall be paid by check or electronic funds transfer, and all prizes of $500 or more shall be paid by check. There shall be no commingling of multi-hall linked bingo funds with other funds of the charitable organization. The organization shall retain all canceled checks or record of electronic funds transfers for the payment of expenses and prizes for at least 2 years. The organization shall not cash checks which it issues.

V. All financial reports filed by charitable organizations shall be maintained by the commission for a period of one year from the date of filing and shall be open to public inspection.

VI. All financial records pertaining to the operation of multi-hall linked bingo games shall be maintained by the treasurer of the charitable organization or other duly authorized director, officer or official of the charitable organization and shall be made available to representatives of the commission or of the commissioner of safety upon request.

VII. A charitable organization which has been licensed to conduct multi-hall linked bingo games shall maintain complete and accurate documentation of all revenues and expenses contained in the financial reports for at least 2 years from the date the financial report is filed.

287-G:12 Suspension and Revocation. The commission may suspend or revoke the license of any licensee who violates any provision of this subdivision. Any licensee whose license is revoked shall not be eligible for licensure for a period of up to one year from the date of revocation.

287-G:13 Rehearing and Appeal. Any person aggrieved by a decision of the commission to deny suspend or revoke a bingo license may apply to the commission for a rehearing within 15 business days of the decision. Rehearings and appeals shall be governed by RSA 541.

I.(a) Any city or town desiring to adopt the provisions of RSA 287-G may do so by presenting the following question to the voters: `Shall we adopt the provisions of RSA 287-G relative to the conduct of games of multi-hall linked bingo for charitable purposes'?

(b) The ballot containing the question shall include 2 squares next to the question allowing the voter to vote `Yes' or `No'. If no cross is made in either of the squares, the ballot shall not be counted on the question.

II. In a town, the question shall be listed in the warrant and placed on the official ballot, or a special ballot prepared by the clerk, upon a vote of the selectmen or upon submission to the selectmen of a petition signed by 25 registered voters or 1/6 of the registered voters, whichever is less.

III. In a city or town with a town council, the question shall be placed on the official ballot for any regular municipal election upon a vote of the city or town council or upon submission to the city or town council of a petition signed by 5 percent of the registered voters.

IV. Any city or town which has adopted RSA 287-G may put to the voters the question of whether to rescind its action upon the vote of the selectmen or council or upon the petition of voters as provided in paragraph II or III. The question shall be as provided in paragraph I, except the word `adopt' shall be changed to `rescind'.

V. In any city or town conducting bingo as of the effective date of this chapter, as provided for in RSA 287-E, the provisions of RSA 287-G shall apply unless rescinded as provided for in RSA 287-G:14, IV.

I. In addition to any other penalties provided for by law, any person who violates RSA 287-G shall be guilty of a misdemeanor if a natural person, or guilty of a felony if any other person.

II. Each day on which a multi-hall linked bingo game is played in violation of RSA 287-G shall constitute a separate offense.

2 Department of Safety; Duties of the Commissioner. Amend RSA 21-P:4, VI to read as follows:

VI. Have the discretion to grant to bingo and lucky 7 inspectors within his department certain limited police powers as follows:

(b) Power to make arrests for violations of RSA 287-E, RSA 287-G, or any other laws or rules governing bingo, multi-hall linked bingo, and lucky 7 and to enforce and make arrests for violations of any criminal laws which they uncover incident to their enforcement of the bingo, multi-hall linked bingo, and lucky 7 law.

(c) Power to inspect premises that conduct bingo, multi-hall linked bingo, or lucky 7 or any records pertaining to bingo, multi-hall linked bingo, or lucky 7.

III. The division of state police shall be responsible for bingo, multi-hall linked bingo, and lucky 7 enforcement and any other duties performed by bingo and lucky 7 inspectors.

4 Rulemaking Authority; Commissioner of Safety. Amend RSA 21-P:14, II (q) to read as follows:

(q) Bingo, multi-hall linked bingo, and lucky 7 inspection and enforcement[~~, as authorized by RSA 106-A:3-b~~].

5 Sweepstakes Commission; Administrative and Rulemaking Provisions. Amend RSA 284:21-i to read as follows:

I. The sweepstakes commission shall be empowered to employ such technical assistants and employees to carry out the provisions of this subdivision as the governor and council shall authorize. Such assistants and employees shall receive compensation at rates to be established by the personnel commission. No employee of the commission shall have any pecuniary or other interest in any supplier or agent to the commission, or in any supplier or lessor of bingo equipment or halls, or in any officer of a bingo licensee licensed under RSA 287-E, RSA 287-G, or in any licensee licensed under this chapter.

I. The state treasurer shall credit all moneys received from the sweepstakes commission, and interest received on such moneys, to a special fund from which the treasurer shall pay all expenses of the commission incident to the administration of this subdivision [~~and~~], RSA 287-E, and RSA 287-G. Any balance left in such fund after such expenses are paid shall be deposited in the education trust fund established under RSA 198:39.

AN ACT authorizing the sweepstakes commission to license multi-hall linked bingo for charitable purposes.

The Sweepstakes Commission states this bill will have an indeterminable fiscal impact on state restricted revenue and expenditures and the Department of Safety indicates this bill will increase state expenditures by an indeterminable amount in FY 2004 and each year thereafter. There will be no fiscal impact on county and local revenue or expenditures.

The Sweepstakes Commission states it cannot perform any financial analysis to determine the fiscal impact of this bill because the following items are unknown:

· The number of halls

· The number of games played per month per hall

· The estimated gross revenue per machine.

The Department of Safety states it cannot estimate the total increase in state expenditures that will result from this bill, however, it did offer the following information:

· The Department assumes this bill will require the hiring of additional investigators and auditors.

· Three Investigators and one Auditor will cost $230,000 in FY 2004 and $180,000 each year thereafter through FY 2007. The breakdown by type of expenditures is as follows: $174,000 for salaries and benefits, $6,000 for current expenses and $50,000 in FY 2004 for three cruisers.