CHAPTER 287
HB 1590-FN – FINAL VERSION
07Mar2006… 0884h
05/03/06 1987s
24May2006… 2326cofc
2006 SESSION
09/10
HOUSE BILL 1590-FN
AN ACT relative to the pari-mutuel commission.
SPONSORS: Rep. F. Sullivan, Hills 12; Rep. Pilotte, Hills 16; Rep. Velez, Hills 12; Sen. Martel, Dist 18; Sen. D'Allesandro, Dist 20
COMMITTEE: Executive Departments and Administration
This bill makes changes in the laws regulating horse and greyhound racing, including license requirements and fees, payment for audits, powers of stewards and judges, and compensation of track veterinarians.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
07Mar2006… 0884h
05/03/06 1987s
24May2006… 2326cofc
06-2283
09/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Six
AN ACT relative to the pari-mutuel commission.
Be it Enacted by the Senate and House of Representatives in General Court convened:
287:1 License Fees; Background Checks. Amend RSA 284:12-a to read as follows:
284:12-a License Required; Investigation Fees.
I. No person, association, corporation, or any other type of entity shall hold any running or harness horse or dog race or meet at which pari-mutuel pools are sold without a license from the commission.
II. Investigation fees shall be collected by the commission and shall be continually appropriated to the commission and used by the commission to offset the costs of conducting background checks and monitoring of license applicants and licensees as required under this section, RSA 284:16, RSA 284:16-a, RSA 284:18-a, RSA 284:19, RSA 284:20, and RSA 284:20-b. Funds received hereunder and not expended for such investigations shall lapse to the general fund 2 years after receipt of such funds.
287:2 License Applicants; Audits. Amend RSA 284:15, III to read as follows:
III. The commission shall have the power to require, at the applicant’s or holder’s expense, that any financial information provided under paragraphs I and II be verified by an audit performed by a certified public accountant. The commission shall have the further power to require that as a condition of securing a license or of continuing to hold a license the license applicant or holder make available its books and records so as to permit the commission to perform such independent auditing or financial analysis as the commission may deem necessary. In so doing, the commission may employ certified public accountants and any other financial analysts or investigators necessary to perform said auditing and may [pay them reasonable compensation, on the warrant of the governor, out of any money in the treasury not otherwise appropriated] bill the license applicant or holder for all costs associated with the auditing.
287:3 Disclosure of Information. RSA 284:15-b is repealed and reenacted to read as follows:
284:15-b Disclosure of Information; Expenses of Investigations.
I. Any person, association, corporation, or any other type of entity applying for or holding a license issued pursuant to the provisions of this chapter shall file annually, not later than December 31, with the attorney general a complete and detailed written statement, signed under oath, by the applicant or holder of such license, if an individual, or by the officers of the applicant or holder, if a corporation or an association, containing the following information:
(a) The name, residence address, and nature of the ownership interest, including where applicable the number of shares of stock held and, if known, how obtained, of every person who possesses an ownership interest in such license applicant or holder;
(b) The name, address, present principal occupation or employment, and the name and principal business of any corporation or other organization in which such employment is carried on of every director, officer, and holder of 10 percent or more ownership interest in such license applicant or holder;
(c) The name and all information which a license applicant or holder has or might reasonably be expected to have as to any felony convictions of any officer, director, or holder of an ownership interest of any degree; provided, that if the license applicant or holder is an association or corporation in which 25 or fewer individuals or organizations hold an ownership interest or stock, then the information required by subparagraphs (a) and (b) shall be provided by each such interest holder or stockholder, who shall be further required to submit a detailed statement of assets and liabilities on forms prescribed by the attorney general; and
(d) Such information as the commissioner may prescribe by rule or rejection.
II. The attorney general shall have the authority to conduct an investigation on the attorney general’s motion into the background of the license applicant or holder, of any person included in paragraph I or of any person or entity upon whom the license applicant or holder relies for financial support. In addition, whenever the commission shall receive an application, it shall refer the application to the attorney general who shall conduct such 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 the attorney general’s 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 commission requests such an investigation, the attorney general shall report the results of such investigation to the commission within 90 days after the receipt of the 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 shall have sole discretion to determine the extent to which and the manner in which the results may be reported to the commission 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 commission whether or not in the attorney general’s 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. The expenses of the commission and the office of attorney general in conducting any investigation authorized in this section, including the services of consultants, experts, accountants, and other assistants, shall be a direct charge against the applicant or holder. Total expenses under this paragraph shall not exceed $50,000, except with the approval of the fiscal committee of the general court.
IV. In any investigation conducted pursuant to paragraph II, the attorney general or any duly authorized justice department staff member may require, by subpoena or otherwise, the attendance of witnesses and the production of such correspondence, documents, books, and papers as the attorney general or staff member 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 II 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, that person shall not be prosecuted, punished, or subjected to any penalty or forfeiture for or on account of any act, transaction, matter, or thing which such person, under oath, disclosed or produced. No person so testifying shall be exempt from prosecution or punishment for any perjury committed by such person in such testimony.
287:4 Condition of Licensee. Amend RSA 284:16-b to read as follows:
284:16-b [Financial] Condition of Licensee.
I. 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 holder thereof does not warrant a continuation of said license, or, in lieu of revocation, to impose such conditions upon the continued possession of the license as the commission deems reasonably necessary [to the functioning of said licensee on a sound financial basis].
II. The commission, after conducting a hearing, may require a licensee to divest itself of any partner, person, sub-corporation, shareholder, or any other entity of the licensee if the commission determines that any partner, person, sub-corporation, shareholder, or any other entity of the licensee is not fit to be associated with racing in this state.
III. The licensee shall notify the commission of any change of, or transfer of any of the owners of the voting stock or other voting interest, if the licensee is privately held. In the case of a publicly-traded entity holding the license, the commission shall be notified of any changes to the board of directors, or when more than 10 percent of the publicly-held shares or other voting interest are closely held by one entity. The licensee shall provide such notice to the commission in writing within 10 days of the occurrence of any such event. On receipt of such notice, the commission shall assess whether the change in ownership affects the licensee’s qualifications for continued licensure.
287:5 Powers of Stewards. Amend RSA 284:20 to read as follows:
284:20 Stewards. There shall be at least 3 stewards to supervise each running or harness horse race or meet, conducted under the provisions of this chapter, at which pari-mutuel pools are sold. One of such stewards shall be the official steward of the state racing commission, and the remaining stewards shall be appointed by the person, association, corporation, or any other type of entity conducting the race or meet, subject to the approval of the commission. Said stewards shall be authorized to assess fines and suspend licenses and shall exercise such other powers and perform such duties at each race meet as may be prescribed by the rules and regulations of the commission. Any person who has been assessed a fine or whose license has been suspended may appeal any fine or suspension imposed by the stewards under this section to the commission.
287:6 Powers of Judges. Amend RSA 284:20-b to read as follows:
284:20-b Judges. There shall be at least 3 judges to supervise each dog race or meet, conducted under the provisions of this chapter, at which pari-mutuel pools are sold. One of such judges shall be the official judge of the state greyhound racing commission, and the remaining judges shall be appointed by the person, association, corporation, or any other type of entity conducting the race or meet, subject to the approval of the commission. Said judges shall be authorized to assess fines and suspend licenses and shall exercise such other powers and perform such duties at each race as may be prescribed by the rules and regulations of the commission. Any person who has been assessed a fine or whose license has been suspended may appeal any fine or suspension imposed by the judges under this section to the commission.
287:7 Compensation of Stewards. Amend RSA 284:20 to read as follows:
284:20-d Compensation of Stewards, Judges, and Veterinarians. Compensation of the commission veterinarian, and of the official state steward or associate judges of the commission shall be reimbursed to the state by the person, association, corporation, or any other type of entity conducting the race or meet, and such reimbursement shall include the employer’s share of OASI taxes. The commission may establish the salaries of the state steward and associate judges. Payments to the state required under this section shall be made no later than 30 calendar days after receipt of billing from the commission. Failure to make payments in the time prescribed shall subject the licensee to a civil forfeiture of up to $50 for each day the payments are overdue, at the discretion of the pari-mutuel commission.
287:8 New Section; Background and Criminal Records Check. Amend RSA 284 by inserting after section 284:20-e the following new section:
284:20-f Background and Criminal Records Check.
I. Each applicant for a license pursuant to this chapter and rules adopted by the pari-mutuel commission shall submit to the commission with his or her license application a background and criminal record release authorization form provided or approved by the pari-mutuel commission.
II. Upon receipt of an applicant’s background and criminal record information, the commission shall make a determination of eligibility for licensure.
287:9 Effective Date. This act shall take effect 60 days after its passage.
Approved: June 15, 2006
Effective: August 14, 2006