HB 494-FN-A – AS INTRODUCED
2007 SESSION
08/04
HOUSE BILL 494-FN-A
AN ACT relative to keno in New Hampshire.
SPONSORS: Rep. Camm, Rock 8; Rep. Wickson, Rock 5
This bill allows the organization and play of keno games in New Hampshire.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
07-0805
08/04
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Seven
AN ACT relative to keno in New Hampshire.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Subdivision; Bingo and Lucky 7; Keno. Amend RSA 287-E by inserting after section 29 the following new subdivision:
287-E:30 Definition. In this subdivision, “keno” means any game where a player purchases a ticket of 80 numbers and selects 1 to 20 numbers by marking selections on the purchased ticket. The game operator chooses 20 numbers at random and the player is paid out against his or her original wager based upon how many numbers match the numbers they have marked on their ticket.
287-E:31 Administration and Enforcement. The pari-mutuel commission shall administer and enforce this subdivision.
287-E:32 Rulemaking. The commission shall adopt rules, pursuant to RSA 541-A, relative to:
I. The application procedure for keno licenses.
II. Information to be required on license applications.
III. The application procedure for distributor and manufacturer licenses under RSA 287-E:41.
IV. Procedures for a hearing following the revocation of a license.
V. The operation of keno games.
VI. The price for a single card or play in keno games.
VII. The rental of facilities and the leasing of equipment for use in keno games.
VIII. 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 in addition to the requirements set forth in RSA 287-E:38.
IX. Other matters related to the proper administration of this subdivision.
287-E:33 Copies of Records. The commission shall forward copies of all records relating to keno licensing, taxes, and financial reports to the commissioner of the department of safety.
287-E:34 License Fees.
I. The keno license application fee shall be $25 per day.
II. Such fee shall be submitted to the commission at the time the application for a keno license is filed and shall be refunded if the application is denied.
III. The license fee for a commercial premises keno license under RSA 287-E:35, VI shall be $250 per year. Such fee shall be submitted to the commission at the time the application is made and shall be refunded if the application is denied.
287-E:35 License Applications.
I. Applications shall be submitted to the 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.
II. Applications shall be made only on the forms supplied to the charitable organization by the commission.
III. The application form shall be fully completed by the duly authorized officer, director, or official of the charitable organization.
IV. Applications shall be submitted at least 15 days prior to the first game date of each month. This requirement may be waived by the 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 will operate the keno games.
(c) Neither the applicant nor any member of the charitable organization who will operate the keno games has been convicted of a 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 the statutes or rules governing charitable gambling.
(d) The applicant and any member of the charitable organization who will be participating in the operation of the keno games is aware of all statutes and rules applicable to the operation of keno games.
VI. If a charitable organization intends to lease or rent premises for the conduct of keno from an entity other than a charitable organization or governmental subdivision, the entity leasing or renting out the premises shall be licensed by the commission. The license shall be applied for by filing an application supplied by the commission. The 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 commission.
VII. To be eligible for licensure under this subdivision 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 7:19-32, with the director of charitable trusts.
(d) Maintain a current list of bona fide members.
287-E:36 Licenses.
I. Keno licenses shall only be issued to charitable organizations which meet the requirements of RSA 287-E:35 and paragraph II of this section.
II. Keno licenses may be issued to a charitable organization to conduct keno 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 keno in one calendar month, and in no more than one town or city which has authorized keno games under RSA 287-E:27. The license shall expire on the last game date authorized under the license.
(b) The provisions of subparagraph II(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 keno in one calendar month and no more than 120 game dates of keno 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 II(a), and charitable organizations licensed under subparagraph II(a) shall be ineligible to receive concurrently an annual license under this subparagraph.
(c) A license shall authorize games at specific times on specific dates at specific locations and may authorize keno games to be conducted at carnivals.
(d) No more than 2 licensed charitable organizations may conduct keno games at any one location on any specified date.
(e) A license shall not be transferable.
287-E:37 Operation of Keno Games.
I.(a) Only bona fide members of charitable organizations shall operate keno 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 I(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 keno games on behalf of the charitable organization. Individuals so designated are subject to all applicable provisions of this subdivision, and the designation of such individuals is subject to the approval of the commission.
(c) Notwithstanding subparagraph I(a), all charitable organizations that conduct keno 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 keno games. A list of the names of the persons assisting shall be submitted to the department of safety prior to the scheduled keno event.
II. No compensation shall be paid to operators of a keno game. Compensation shall include, but is not limited to, money or any other thing of value. Operators of keno 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. No one under the age of 18 years shall be admitted to the premises on which keno games are being conducted, except when the keno games are being conducted at a carnival. Proof of age shall be produced upon request of the commission. When keno games are conducted at a carnival, persons under the age of 18 years may be admitted to the premises on which the keno games are being conducted when accompanied and supervised by a parent or legal guardian, but persons under the age of 18 shall not be permitted to play keno at a carnival.
IV. No keno games shall be conducted prior to 11:00 a.m. on a weekday, prior to noon on a Sunday, or after 11:00 p.m. on any day.
V. No keno chairperson, keno treasurer, or person who has leased out a facility or sold or leased keno paraphernalia or related equipment to a charitable organization for use during keno games shall participate or play in any game conducted at that location on that date.
VI. A person who volunteers to assist in the operation of a keno game may play keno after assisting with the operation of the game, provided that once a person has played keno on a given date, that person may no longer assist with the operation of the keno game on that date.
VII. No person who 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, or who has violated any of the statutes or rules governing charitable gambling in the past in this or any other state shall operate a keno game licensed under this subdivision, or rent, lease, sublease, or otherwise provide any hall or keno paraphernalia for the conduct of keno licensed under this subdivision.
VIII. No charitable organization shall act as an agent for operating keno games when it is unlawful for the charitable organization’s principal to conduct keno games.
IX. The price to be paid for a single keno card shall be established by rules adopted by the commission.
X. No fee shall be charged for admission to keno games.
XI. Raffles permitted under RSA 287-A and RSA 287-D may be conducted at the same time and in the same place as a keno game licensed under this subdivision.
XII. Except as provided in paragraph XIV, all prizes, tokens, or awards used, given, offered or awarded in connection with any game or series of games conducted on one game date shall not exceed the total value of $3,500.
XIII. All keno game paraphernalia or related equipment used in conducting keno games shall be subject to inspection and approval by the commission.
XIV. During any game or series of games conducted on any one game date by a charitable organization, no more than 4 winner take all games may be conducted in which the total amount paid by the players shall be divided among the winners of that game, provided that:
(a) Winners may be awarded prizes when predetermined designs are completed, however, no more than 25 numbers shall be called in the game, and no number may be called more than once.
(b) All money collected from the participants in such game or games shall be collected, counted, and displayed in full view of the participants and shall be kept separately from all other moneys collected by the charitable organization during the keno games conducted on the premises.
(c) The total amount collected from the participants shall be publicly announced and shall be recorded by an officer, director, or authorized official of the charitable organization.
(d) The total amount awarded in the game shall not exceed the total amount collected from the participants in the game.
(e) A game reimbursement fee equal to 7 percent of the total amount collected from participants in any winner take all game shall be paid to the charitable organization operating the game.
287-E:38 Financial Reports and Inspection Required.
I. A charitable organization which has been licensed to conduct keno games shall submit a complete financial report to the commission for each license issued under RSA 287-E:36 within 15 days after the expiration of each license, provided, however, a complete monthly financial report shall be submitted in a timely fashion to the commission for each month covered by a license issued under RSA 287-E:36, I-a.
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 revenues and expenses.
(b) A record of the amount of prizes awarded.
(c) The names and addresses of the members of the charitable organization who operated the licensed games.
(d) The name and address of any person, partnership, corporation or other entity from whom equipment used at the licensed games was rented or leased.
(e) The name and address of any person, partnership, corporation or other entity from whom premises were leased or rented to conduct the licensed games.
(f) The name and address of, and the fee paid to, any person, or business entity, who provided consulting, accounting, management, or other similar services to the organization for the operation of keno.
IV. All charitable organizations licensed under this subdivision shall maintain a separate checking account for the deposit and disbursement of all income relating to keno, except cash prizes awarded at the games. All expenses shall be paid by check, and all prizes of $500 or more shall be paid by check. No keno funds shall be commingled with other funds of the charitable organization. The organization shall retain all cancelled checks for the payment of expenses and prizes for at least 2 years from the date of the check. 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 keno 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 the department of safety upon request.
VII. A charitable organization which has been licensed to conduct keno 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-E:39 Suspension; 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-E:40 Rehearing and Appeal. Any person aggrieved by a decision of the commission to deny or revoke a keno 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.
287-E:41 Distributors and Manufacturers of Keno Supplies and Equipment. The commission shall license distributors and manufacturers of keno paper supplies and electronic keno player systems 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 keno paper supplies and electronic keno player systems, and shall not be required to file for licensing under this section. All keno paper supplies and electronic keno player systems shall be purchased, leased, or rented from a licensed distributor and manufactured by a licensed manufacturer. All keno paper sold to charitable organizations by New Hampshire licensed distributors 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 the following additional qualifications for licenses:
I. The applicant for a distributor’s license shall pay to the commission an annual license or license renewal fee of $10,000. Such fee shall authorize the distribution of keno paper supplies and electronic keno player systems within the state of New Hampshire and the warehousing of keno paper supplies, and electronic keno player systems for subsequent sale out of state. 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.
II. The 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.
III. Each 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 bond under this section.
IV. An applicant for a license as a distributor shall have a principal place of business located within this state.
V.(a) The commission shall issue a special license to manufacturers of keno paper supplies and electronic keno player systems 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 licensing fee under this paragraph.
(b) The fee for such special license shall be $5,000 per year or for any part of a year.
2 Referendum. Amend RSA 287-E:27, I(a) to read as follows:
I.(a) Any city or town desiring to adopt the provisions of RSA 287-E may do so by presenting the following question to the voters: “Shall we adopt the provisions of RSA 287-E relative to the conduct of games of bingo and keno and the sale of lucky 7 tickets?”
3 Bingo and Lucky 7; Chapter Name Amended. Amend the chapter name in RSA 287-E to read as follows:
Bingo, Keno, and Lucky 7
4 Effective Date. This act shall take effect July 1, 2007.
LBAO
07-0805
01/25/07
HB 494-FN-A - FISCAL NOTE
AN ACT relative to keno in New Hampshire.
FISCAL IMPACT:
The Pari-Mutuel Commission states this bill will increase state restricted revenue by $606,250 in FY 2008 and each year thereafter and increase state expenditures by $86,923 in FY 2008, $84,197 in FY 2009, $87,599 in FY 2010, and $91,268 in FY 2011. There will be no fiscal impact on county and local revenue or expenditures.
METHODOLOGY:
The Pari-Mutuel Commission states this bill allows for the organization and play of keno games in the state. The Commission assumes the 200 charity organizations licensed for Bingo/Lucky 7 games will also request licensing for Keno games and apply for Keno licenses for a maximum of 120 game dates per calendar year. The Commission estimates revenue will increase by $600,000 (200 organizations * 120 game dates * $25 a license) in FY 2008 and each year thereafter. The Commission also assumes 25 commercial premises will request licenses at $250 per entity per year increasing revenue by $6,250 (25 commercial premises * $250 license fee) in FY 2008 and each year thereafter.
The Commission believes it will need two additional full-time staff members for the administration and regulation of Keno games. This bill does not provide an appropriation for increased expenditures or authorization for additional positions. Net revenue in excess of expenditures will be deposited in the Education Trust Fund.
FY 2008 |
FY 2009 |
FY 2010 |
FY 2011 | |
Licensing Processor (LG 11, wage schedule A000) |
$22,444 |
$23,302 |
$24,200 |
$25,233 |
Enforcement Officer (LG 16, wage schedule X208) |
32,123 |
33,473 |
34,869 |
36,310 |
Benefits (48.3 percent) |
26,356 |
27,422 |
28,530 |
29,725 |
Equipment (computer, desk) |
6,000 |
0 |
0 |
0 |
Total |
$86,923 |
$84,197 |
$87,599 |
$91,268 |