HB922 (2007) Detail

Relative to licensing for games of chance.


HB 922-FN – AS INTRODUCED

2007 SESSION

07-0857

08/04

HOUSE BILL 922-FN

AN ACT relative to licensing for games of chance.

SPONSORS: Rep. F. Sullivan, Hills 12; Rep. Velez, Hills 12; Rep. Manney, Hills 7; Rep. P. Garrity, Hills 14; Sen. D'Allesandro, Dist 20

COMMITTEE: Executive Departments and Administration

ANALYSIS

This bill makes certain changes to rules of licensure for operators of games of chance.

This bill was requested by the pari-mutuel commission.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

07-0857

08/04

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Seven

AN ACT relative to licensing for games of chance.

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

1 License Applications. Amend RSA 287-D:2-a, V(c) to read as follows:

(c) That neither the applicant nor any person who will be participating in the operation of the games of chance has been convicted of a felony or a class A misdemeanor within the previous 10 years which has not been annulled by a court or a class B 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 in the past in New Hampshire or any other state.

2 License Applications; Charitable Organizations. Amend RSA 287-D:2-a, VI to read as follows:

VI. If a charitable organization intends to use, 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 or otherwise allowing a charitable organization to use 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.

3 License Applications. Amend RSA 287-D:2-b, II to read as follows:

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. Any agreement entered into by the charity shall be made available, upon request, to the pari-mutual commission for review. Such agreement shall take into consideration all other expenses related to the games of chance including security fees, facility rental fees, equipment rental fees, and advertising. Such agreement shall result in the charity receiving no less than 35 percent of the gross revenues minus prizes paid as specified in RSA 287-D:3, VIII.

4 Equipment; Inspection. Amend RSA 287-D:3, II to read as follows:

II. Any and all devices and equipment used to conduct said games of chance shall be subject to inspection by duly authorized law enforcement or pari-mutuel officials.

5 Charitable Revenue. Amend RSA 287-D:3 to read as follows:

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. The charitable organization shall use, only as necessary, the remaining 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, to pay for, or to have paid for on their behalf, any and all expenses related to the games of chance for that game date.

6 New Paragraphs; Penalties. Amend RSA 287-D:6 by inserting after paragraph III the following new paragraphs:

IV. The commission may issue an order requiring any person or organization, to comply with this subdivision or any rule adopted hereunder, and may require such remedial measures as may be necessary.

V. The commission may impose an administrative fine for any violation of this subdivision, any rule adopted under this subdivision, or any order issued pursuant to this subdivision, or upon any person who makes or certifies a material false statement relative to any application or report required by this subdivision. Any administrative fine imposed under this paragraph shall not preclude the imposition of other penalties under this chapter.

7 Background and Criminal Records Check. Amend RSA 287-D:8, III to read as follows:

III. All applicants shall also be subject to a national criminal background check, including the submission of fingerprints to the Federal Bureau of Investigation, by the pari-mutuel commission to determine if they are eligible for licensure under this chapter.

8 New Paragraph; Background and Criminal Records Check. Amend RSA 287-D:8 by inserting after paragraph III the following new paragraph:

IV. The commission shall bill the applicant for any fee associated with the criminal or background record check to cover any fee charged by the department of safety for the criminal records check in paragraph I or by the Federal Bureau of Investigation for the background check in paragraph III.

9 Effective Date. This act shall take effect January 1, 2008.

LBAO

07-0857

Revised 02/20/07

HB 922 FISCAL NOTE

AN ACT relative to licensing for games of chance.

FISCAL IMPACT:

      The Department of Safety and Pari-Mutuel Commission have determined this bill increases state revenue and expenditures by an indeterminable but equal amount in fiscal year 2008 and each year thereafter. There is no fiscal impact on county and local revenue or expenditures.

METHODOLOGY:

    The Department of Safety and Pari-Mutuel Commission state this bill makes certain changes to the rules of licensure for operators of games of chance. It requires all applicants to be subject to a national criminal background check, including the submission of fingerprints. The Department of Safety shall conduct the background check and the applicant shall bear the cost. Since the applicant is required to bear the cost there should be no additional cost to the Department. Revenue would increase by the amount of the cost to cover background checks.