HB1744 (2006) Detail

Authorizing the pari-mutuel commission to regulate games of chance conducted by charitable organizations and relative to tournaments conducted by charitable organizations where chips have no monetary face value.


CHAPTER 311

HB 1744-FN-A – FINAL VERSION

21Mar2006… 1177h

21Mar2006… 1260h

04/20/06 1784s

24May2006… 2315cofc

24May2006… 2400eba

2006 SESSION

06-2782

09/01

HOUSE BILL 1744-FN-A

AN ACT authorizing the pari-mutuel commission to regulate games of chance conducted by charitable organizations and relative to tournaments conducted by charitable organizations where chips have no monetary face value.

SPONSORS: Rep. Weyler, Rock 8; Rep. Dickinson, Carr 1; Rep. Asselin, Rock 7; Rep. F. Sullivan, Hills 12; Sen. D'Allesandro, Dist 20; Sen. Green, Dist 6

COMMITTEE: Executive Departments and Administration

ANALYSIS

This bill authorizes the pari-mutuel commission to regulate games of chance conducted by charitable organizations.

The bill places limits on wagering and prizes in tournaments where chips have no monetary face value. The bill imposes a 3 percent tax on the total amount collected by a charitable organization in any tournament conducted where chips have no monetary face value.

The bill also permits a charitable organization to obtain a license to sell lucky 7 tickets at a place where a game of chance is authorized.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

21Mar2006… 1177h

21Mar2006… 1260h

04/20/06 1784s

24May2006… 2315cofc

24May2006… 2400eba

06-2782

09/01

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Six

AN ACT authorizing the pari-mutuel commission to regulate games of chance conducted by charitable organizations and relative to tournaments conducted by charitable organizations where chips have no monetary face value.

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

311:1 Findings and Purpose. The legislature finds that:

I.(a) Charitable organizations provide important and necessary educational, religious, and social services to the people of this state;

(b) Charitable gaming has been authorized in this state for the specific purposes of affording charitable organizations an alternative method of raising funds so that they may further the purpose for which they were established;

(c) Increasingly, a large percentage of the proceeds of charitable games are being diverted away from the charitable organizations to private businesses; and

(d) Uniform regulation for the conduct of charitable games of chance is in the best interest of charitable organizations and the people of the state.

II. The 2006 amendments to RSA 287-D made by this act are enacted with the purposes to ensure that charitable organizations that sponsor games of chance obtain the maximum possible financial return, and to protect the interest of the public by ensuring the integrity of such games. The provisions of RSA 287-D shall be liberally interpreted, construed, and administered to effectuate these purposes.

311:2 New Paragraph; Pari-mutuel Commission; Games of Chance Conducted by Charitable Organizations. Amend RSA 284:6-a by inserting after paragraph IV the following new paragraph:

V. The pari-mutuel commission shall administer RSA 287-D, relating to games of chance conducted by charitable organizations.

311:3 New Paragraph; Pari-mutuel Commission; Rulemaking. Amend RSA 284:12 by inserting after paragraph IX the following new paragraph:

X. Rules for games of chance conducted by charitable organizations under RSA 287-D.

311:4 Special Fund; Lottery Commission; Pari-mutuel Commission. Amend RSA 284:21-j, I to read as follows:

I. The state treasurer shall credit all moneys received from the lottery commission and all moneys received from the pari-mutuel commission under RSA 287-D and RSA 287-E, 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 all administration and enforcement expenses of the pari-mutuel commission under RSA 287-D and RSA 287-E. Any balance left in such fund after such expenses are paid shall be deposited in the education trust fund established under RSA 198:39.

311:5 Games of Chance; Enforcement. Amend RSA 287-D:1-a to read as follows:

287-D:1-a [Administration and] Enforcement. The pari-mutuel commission, with the assistance of the attorney general and the [respective] chief of police of any city or town where games of chance are held, shall administer and enforce the provisions of this chapter.

311:6 New Section; Rulemaking. Amend RSA 287-D by inserting after section 1-a the following new section:

287-D:1-b Rulemaking. The pari-mutuel commission shall adopt rules, pursuant to RSA 541-A, relative to:

I. The application procedure for games of chance licenses for charitable organizations.

II. Information to be required on license applications for games of chance licenses for charitable organizations

III. The application procedure for games of chance licenses for game operators.

IV. Information to be required on license applications for games of chance licenses for game operators.

V. Procedures for a hearing following revocation of any license issued pursuant to this chapter.

VI. The operation of games of chance.

VII. The rental or lease of facilities pursuant to RSA 287-D:2-a, VI and the leasing or purchasing of equipment for use in games of chance.

VIII. Refunds of license fees pursuant to RSA 287-D:2-d, VI.

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 and licensed game operators in addition to requirements set forth in RSA 287-D:5.

X. Enforcement of this chapter pursuant to RSA 287-D:6 and RSA 287-D:7.

XI. Background and criminal records checks pursuant to RSA 287-D:8.

XII. The issuance of subpoenas pursuant to RSA 287-D:9.

XIII. Other matters related to the proper administration of this chapter.

311:7 Games of Chance Authorized. Amend RSA 287-D:2, II to read as follows:

II. No one may apply for a license for the operation of games of chance without first obtaining written permission of the owner of the property where the games will be conducted. Such permission shall be acknowledged before a notary public or justice of the peace and shall be obtained on a form supplied by the [chief of police of said city or town] pari-mutuel commission.

311:8 Games of Chance; License Applications. Amend RSA 287-D:2-a to read as follows:

287-D:2-a License Applications.

I. Applications shall be submitted to the [respective chief of police and to the attorney general] pari-mutuel commission by an officer, director, or duly authorized official of the charitable organization. Proof of authority to submit the application on behalf of the charitable organization may be required. The applicant shall send copies of the application submitted to the pari-mutuel commission to the attorney general and the chief of police of each city or town where games of chance are held.

II. Applications shall be made only on the forms supplied to the charitable organization by the [attorney general] pari-mutuel commission including, at a minimum, the following information provided that the commission may, by rule, establish additional items to be submitted on the application form or attached to it:

(a) If known, the date or dates and location or locations of each game of chance to be sponsored by the charity.

(b) A list of the names and addresses of the current bona fide members of the charity.

(c) The name of the financial institution with at least one branch in New Hampshire and the corresponding bank account number for the account in which money from the game of chance will be deposited and withdrawn.

(d) The name, date of birth, and social security number of all bona fide charitable organization members who will participate in the operation of the games. The pari-mutuel commission shall keep as exempt from disclosure, pursuant to RSA 91-A, any social security numbers submitted.

(e) The name and address of any game operator who will be involved in the operation of the games.

(f) If any of the proposed games are to be held in a location licensed pursuant to  RSA 287-D:2-a, VI, the name and address of the person or business from whom the space is being rented.

(g) If the charitable organization is buying or renting any equipment for the game of chance, the name and address of the seller or renter.

III. No license shall be issued unless the application form is fully completed by the duly authorized officer, director, or official of the charitable organization.

IV. Applications shall be received by the [chief of police and attorney general 15] pari-mutuel commission 60 days [prior to] before the first game date of [each month] the year. This requirement may be waived by the [attorney general] pari-mutuel commission for good cause shown.

V. The applicant shall certify under oath that:

(a) The information provided on the application is accurate.

(b) Only bona fide members of the charitable organization or persons complying with the requirements of RSA 287-D:2-c will operate the games of chance.

(c) That neither the applicant nor any [member of the charitable organization] person who will be participating in the operation of the games of chance has been convicted of a [felony or class A misdemeanor within the previous 10 years which has not been annulled by a court, or a class B misdemeanor within the past 5 years which has not been annulled by a court,][a crime] felony within the previous 10 years which has not been annulled by a court or a misdemeanor involving falsehood or dishonesty within the previous 5 years which has not been annulled by a court, or has violated any statutes or rules governing charitable gambling.

(d) The applicant or any [member of the charitable organization] person who will be participating in the operation of the games of chance is aware of all statutes and rules applicable to the operation of games of chance.

VI. If a charitable organization intends to lease or rent premises for the conduct of any game of chance from an entity other than a charitable organization or governmental subdivision, the entity leasing or renting out the premises shall be licensed by the pari-mutuel commission. The license shall be applied for by filing an application supplied by the pari-mutuel commission. The pari-mutuel commission may issue a license for a period of one year which shall expire on June 30 of each year unless sooner revoked or suspended for just cause by the pari-mutuel commission.

VII. To be eligible for licensure under this chapter, a charitable organization shall: (a) Document that it is exempt from federal income tax.

(b) Establish that the religious, civic, fraternal, veterans, or charitable purposes for which it was organized, other than charitable gambling, are furthered through activities conducted in the town or city in which the charitable organization is organized.

(c) Register, if required under RSA 7:19 – RSA 7:32, with the director of charitable trusts.

(d) Maintain a current list of bona fide members.

(e) Maintain an account at a financial institution with at least one branch in New Hampshire solely in the name of the charitable organization in which the money from games of chance shall be deposited and withdrawn.

(f) Meet all other applicable requirements specified in this chapter and in rules adopted by the pari-mutuel commission.

VIII. No person shall be permitted to participate in the operation of a game of chance, unless that person is:

(a) Listed on the application form pursuant to subparagraph II(d), or added to the list pursuant to paragraph IX, and has submitted to a background and criminal record check pursuant to RSA 287-D:8; or

(b) A licensed game operator pursuant to RSA 287-D:2-c.

IX. The charitable organization may amend or supplement the list of members who will participate in the operation of a game of chance, pursuant to subparagraph II(d), up to 10 working days prior to any particular game.

311:9 Operation of Games of Chance. Amend RSA 287-D:2-b, I and II to read as follows:

I.(a) Only persons complying with the requirements of RSA 287-D:2-c or bona fide members of charitable organizations shall operate games of chance; 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 for any person not subject to the requirements of RSA 287-D:2-c.

(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 games of chance on behalf of said charitable organization. Individuals so designated are subject to all applicable provisions of this chapter, shall be listed pursuant to RSA 287-D:2-a, II(b) or RSA 287-D:2-a, IX, and the designation of such individuals is subject to the approval of the [chiefs of police] pari-mutuel commission.

(c) Notwithstanding subparagraph (a), all charitable organizations that conduct games of chance 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 games of chance. [A list of the names of the persons assisting shall e submitted to the chief of police prior to the scheduled game of chance event.] These spouses, sons, and daughters are subject to all applicable provisions of this chapter, shall be listed pursuant to RSA 287-D:2-a, II(b) or RSA 287-D:2-a, IX, and are subject to the approval of the pari-mutuel commission.

II. No compensation shall be paid to operators of a game of chance unless agreed to in advance in writing by the charity. Compensation shall include, but is not necessarily limited to, money or any other thing of value. If the paid game operator’s compensation is contingent upon the amount of revenue received from a game of chance, the compensation shall be a fixed percentage of the gross revenue from the game of chance excluding the paid game operator’s expenses. If the compensation of a paid game operator is not contingent upon the amount of revenue received, the compensation shall be a reasonable estimate, expressed as a percentage of the gross revenue. The contract shall clearly disclose the assumptions upon which the estimate is based. The stated assumptions shall be based upon all of the relevant facts known to the paid game operator regarding the services to be provided and the past performance of games of chance operated by the paid game operator.  

II-a. Unless otherwise agreed to in advance, pursuant to paragraph II, in writing by the charitable organization, operators of games of chance may be reimbursed for their out-of-pocket expenses in an amount not to exceed $[8]25 per game date, provided that such expenses are itemized and submitted in writing to the charitable organization.

311:10 New Paragraphs; Operation of Games of Chance. Amend RSA 287-D:2-b by inserting after paragraph VI the following new paragraphs:

VII. Only the treasurer of the charitable organization or a bona fide member of the charitable organization designated by the treasurer, shall handle any monetary transactions related to the game of chance.

VIII. The charitable organization shall deposit cash and proceeds from a game of chance into the account required by RSA 287-D:2-a, VII(e). All expenses, including prizes of more than $500, game operator fees, and equipment and hall rental fees shall be paid by check from the account required by RSA 287-D:2-a, VII(e). The treasurer of the charitable organization shall document all prizes awarded as prescribed in rules adopted by the pari-mutuel commission.

IX. All game of chance paraphernalia or related equipment used in conducting games of chance shall be subject to inspection and approval by the pari-mutuel commission.

X. The charitable organization shall keep a record of all persons participating in the operation of a game of chance, including but not limited to, the date and location of the game and the person’s name, address, telephone number, and type of participation in the game.

XI. For games of chance where chips have no monetary face value, the charitable organization may offer any number of games per licensed event in which each player may spend up to $150 per game including buy-ins and re-buys.

XII. Notwithstanding paragraph XI, the charitable organization may offer one game per licensed event in which each player may spend up to $250 for the game including buy-ins and re-buys.

XIII. At least 45 days prior to each game date, the charitable organization shall submit the date and location of the game of chance, if this information has not already been submitted to the pari-mutuel commission pursuant to subparagraph II(a).

311:11 New Sections; Licensing of Game Operators. Amend RSA 287-D by inserting after section 2-b the following new sections:

287-D:2-c Licensing of Game Operators.

I. As used in this section, game operators means any consultant or any person other than a bona fide member of the charitable organization involved in conducting, managing, supervising, directing, or running the games of chance, and those involved in such tasks as dealing, running a roulette wheel, handling chips, and serving beverages or food.

II. Applications shall be made only on the forms supplied to the game operator by the pari-mutuel commission including, at a minimum, the following information provided that the pari-mutuel commission may, by rule, establish additional items to be submitted on the application form or attached to it:

(a) The name of the game operator.

(b) The name of the game operator’s employer and the employer’s address and telephone number.

(c) A list of the games of chance in which the game operator will participate including the date of the game, the location of the game, and the charitable organization holding the game.

(d) A list of any other states in which the game operator has been registered or licensed as a professional fundraiser, professional game operator, or other similar position.

(e) Whether a registration or license listed in subparagraph (d) has been denied, suspended, revoked, or enjoined by a court or state agency, or if such proceedings are pending; and

(f) The names and addresses of any individuals with whom the applicant is affiliated in the fundraising or game operating business.

III. No person shall be permitted to participate in the operation of a game of chance as a game operator, unless that person:

(a) Is listed on a charitable organization’s application form pursuant to RSA 287-D:2-a, II(e);

(b) Has submitted a background and criminal check pursuant to RSA 287-D:8; and

(c) Is a licensed game operator pursuant to this section.

IV. Applications shall be received by the pari-mutuel commission at least 60 days before the first game date of the year. The requirement may be waived by the pari-mutuel commission for good cause shown.

V. The game operator or the game operator’s employer shall submit a $20,000 bond to the pari-mutuel commission with the application form.

287-D:2-d License Fees and Specifications.

I. An applicant for a charitable organization license under RSA 287-D:2-a shall apply to the pari-mutuel commission, and upon payment of a fee of $25 per game date and if the applicant meets all other requirements of this chapter, a license shall be issued. Only one license shall be issued to each applicant per year to operate games of chance for 10 days, which 10 days need not be consecutive. A license issued under RSA 287-D:2-a shall expire on December 31. The pari-mutuel commission shall notify the attorney general and police chief of any city or town where games of chance are held of any applications approved.

II. An applicant for a game of chance facility license under RSA 287-D:2-a, VI shall apply to the pari-mutuel commission, and upon payment of a fee of $250 per year and if the applicant meets all other requirements of this chapter, a license shall be issued. Only one license shall be issued to each applicant per year. A license issued under RSA 287-D:2-a, VI shall expire on June 30.

III. An applicant for a game operator license under RSA 287-D:2-c shall apply to the pari-mutuel commission, and upon payment of a fee of $500 per year and if the applicant meets all other requirements of this chapter, a license shall be issued. Only one license shall be issued to each applicant per year. A license issued under RSA 287-D:2-c shall expire on December 31. The pari-mutuel commission shall notify the attorney general and police chief of any city or town where games of chance are held of any applications approved. RSA 7:28-c shall not apply to game operator licensees subject to this chapter.

IV. A license issued under RSA 287-D:2-a shall authorize games at specific times on specific dates at specific locations.

V. No more than 2 licensed charitable organizations may conduct games of chance at any one location on any specified date.

VI. Any license issued under RSA 287-D:2-a or RSA 287-D:2-c shall not be transferable and the fees for the license shall not be refunded except for good cause shown as specified in rules adopted by the pari-mutuel commission.

311:12 New Paragraphs; Equipment; Wagering; Prizes; Facilities. Amend RSA 287-D:3 by inserting after paragraph V the following new paragraphs:

VI. Any contract for the rental of a facility for a game of chance shall be independent of any contract for the rental of equipment. Those contracts shall not be contingent upon the charitable organization’s agreement that it will contract with a particular business for a particular facility or equipment.

VII. A charitable organization shall only rent a facility by means of a fixed rental payment. The fixed rental payment shall not be based on a percentage of what the charitable organization receives from the game of chance and it shall reflect fair rental value of the property for any use not just as a place to hold a game of chance. Any rental entered into by the charitable organization shall be submitted with the charitable organization’s license application for review by the pari-mutuel commission.

VIII. The charitable organization shall retain no less than 35 percent of the gross revenues from any game of chance minus any prizes paid on any game date in which game operators licensed under RSA 287-D:2-c are involved in any capacity. Such revenues shall be used by the organization to advance its charitable purpose.

311:13 Fees; Financial Reports and Inspections. RSA 287-D:5 is repealed and reenacted to read as follows:

287-D:5 Financial Reports and Inspections.

I. A charitable organization shall submit a complete financial report for each license issued under RSA 287-D:2 and RSA 287-D:2-a to the pari-mutuel commission on forms supplied to the charitable organization by the pari-mutuel commission within 30 days of the end of each month during which a game of chance was held.

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.

III. The financial report shall include:

(a) A complete statement of all revenues and expenses.

(b) A record of the amount of prizes awarded.

(c) The names and addresses of the members who participated in the games of chance.

(d) The name and address of any fundraising counsel or game operator involved in conducting the games of chance.

IV. The charitable organization shall retain canceled checks for the payment of expenses and prizes for a period of 2 years.

V. All financial reports filed by charitable organizations shall be maintained by the pari-mutuel 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 games of chance 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 the pari-mutuel commission, the attorney general or the chief of police of any city or town where games of chance are held upon request. The pari-mutuel commission may audit such financial records.

VII. A charitable organization 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.

311:14 New Paragraph; Penalties; Suspension; and Revocation. Amend RSA 287-D:6 by inserting after paragraph II the following new paragraph:

III. The pari-mutuel commission may suspend or revoke the license of any licensee who violates any provision of this subdivision or for just cause shown. 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.

311:15 New Section; Rehearing and Appeal. Amend RSA 287-D by inserting after section 6 the following new sections:

287-D:7 Rehearing and Appeal. Any person aggrieved by a decision of the pari-mutuel commission to deny or revoke a license issued pursuant to this chapter may apply to the pari-mutuel commission for a rehearing within 15 business days of the decision. Rehearings and appeals shall be governed by RSA 541.

287-D:8 Background and Criminal Records Check.

I. All applicants for a license pursuant to this chapter shall submit to the pari-mutuel commission with their license application a New Hampshire department of safety, division of state police, notarized criminal record release authorization form.

II. Upon receipt of an applicant’s criminal record information, the pari-mutuel commission shall make a determination of eligibility for licensure.

III. All applicants shall also be subject to a background check by the pari-mutuel commission to determine if they are eligible for licensure under this chapter.

287-D:9 Subpoenas. The pari-mutuel commission may issue subpoenas for witnesses and for documents relative to investigations or adjudicatory hearings held by the pari-mutuel commission.

311:16 Games of Chance Study Commission Established. There is established a games of chance study commission to evaluate the effect of this legislation on games of chance.

I. The members of the games of chance study commission shall be as follows:

(a) Three members of the house of representatives, 2 of who shall be from the house executive department and administration committee and one of whom shall be from the ways and means committee, appointed by the speaker of the house of representatives.

(b) One member of the senate, appointed by the president of the senate.

(c) A commissioner from the pari-mutuel commission, chosen by the pari-mutuel commission chairman.

(d) The executive director of the pari-mutuel commission, or the executive director’s designee.

(e) One member from the gaming industry who represents companies presently involved in games of chance appointed by the chairman of the pari-mutuel commission.

(f) Two persons representing the charities who are currently involved in the operation of games of chance, appointed by the attorney general.

(g) One member of the New Hampshire Police Chief’s Association who has experience with games of chance held in his or her community, appointed by the association.

(h) One representative of the department of justice, appointed by the attorney general.

II. Legislative members of the games of chance study commission shall receive mileage at the legislative rate when attending to the duties of the commission.

III. The games of chance study commission shall evaluate the effect of this legislation on games of chance. The commission shall solicit input from the regulated community to assist the commission. The commission shall also solicit input from individuals with experience relevant to implementation, administration, and enforcement of RSA 287-D, as deemed necessary by the games of chance study commission. The games of chance commission shall also study:

(a) The establishment of minimal amounts to be paid to charity.

(b) The existence of possible streams of state revenue.

(c) Limits on wagering, prizes, and any other pertinent issues regarding revenue.

(d) Any other areas the commission deems related to the effect of this act on games of chance.

IV. The members of the games of chance study commission shall elect a chairperson from among the members. The first meeting of the commission shall be held within 60 days of the effective date of this section. The chairperson of the commission shall hold meetings no less than once per quarter. Six members of the commission shall constitute a quorum.

V. The games of chance study commission shall report its findings and any recommendations for proposed legislation to the speaker of the house of representatives, the president of the senate, the house clerk, the senate clerk, the governor, and the state library on or before July 1, 2007.

311:17 Effective Date. This act shall take effect 30 days after its passage.

Approved: June 19, 2006

Effective: July 19, 2006

Links

HB1744 at GenCourtMobile

Action Dates

Date Body Type

Bill Text Revisions

HB1744 Revision: 10013 Date: Jan. 21, 2010, midnight

Docket