CHAPTER 285
HB 1302-FN – FINAL VERSION
06Feb2008… 0345h
05/01/08 1359s
04Jun2008… 2154eba
2008 SESSION
08/10
HOUSE BILL 1302-FN
AN ACT relative to enforcement of gambling laws.
SPONSORS: Rep. Schmidt, Straf 4
COMMITTEE: Executive Departments and Administration
This bill makes various changes to the law regarding licenses for charitable game operators.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
06Feb2008… 0345h
05/01/08 1359s
04Jun2008… 2154eba
08-2430
08/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eight
AN ACT relative to enforcement of gambling laws.
Be it Enacted by the Senate and House of Representatives in General Court convened:
285:1 License Applications; Charitable Organizations. Amend RSA 287-D:2-a, II(f) to read as follows:
(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 or permission for use has been granted.
285:2 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, in any jurisdiction, 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 [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.
285:3 License Applications Charitable Organizations. Amend RSA 287-D:2-a, VI to read as follows:
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 or otherwise allowing a charitable organization to use the premises shall be licensed by the pari-mutuel commission. Any entity other than a charitable organization or governmental subdivision with a facility at which games of chance are held for no more than 4 game dates per calendar year shall be exempt from the licensing requirement of this paragraph. 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.
285:4 New Paragraph; License Applications. Amend RSA 287-D:2-a by inserting after paragraph IX the following new paragraph:
X. 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).
285:5 License Applications. Amend RSA 287-D:2-b, III-IV to read as follows:
III. No one under the age of 18 years shall be admitted to the premises on which games of chance are being conducted, except when the games are being conducted at a carnival. Proof of age shall be produced upon request of the [lottery] pari-mutuel commission. When games of chance are conducted at a carnival, persons under the age of 18 years may be admitted to the premises on which the 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 games of chance at a carnival.
IV. No games of chance shall be conducted prior to 11:00 a.m. on a weekday or a Saturday, prior to noon on a Sunday, or after 1:00 a.m. on any day.
285:6 License Applications. Amend RSA 287-D:2-b, VI to read as follows:
VI. Subject to the provisions of RSA 287-D:8, II, no person who has in any jurisdiction, 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 game of chance licensed under this chapter, or rent, lease, sublease, or otherwise provide any hall or game of chance paraphernalia for the conduct of games of chance licensed under this chapter.
285:7 Operation of Games. RSA 287-D:2-b, VIII is repealed and reenacted to read as follows:
VIII.(a) On game dates where the charitable organization operates the games, 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 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.
(b) On game dates where the licensed game operator operates the games, the licensed game operator shall deposit cash and proceeds from a game of chance into the account required by RSA 287-D:2-c, VI. All expenses, including prizes of more than $500 and equipment and hall rental fees shall be paid by check from the account established in RSA 287-D:2-c, VI. The licensed game operator shall document all prizes awarded as prescribed in rules adopted by the pari-mutuel commission.
285:8 Licensing of Game Operators. Amend RSA 287-D:2-c, II to read as follows:
II. Applications for individual game operators and for game operator employers shall be made only on the forms supplied to the game operator by the pari-mutuel commission including, at a minimum, the following information as applicable, 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 and social security number of the game operator, or for an organization the name and federal tax identification number. The pari-mutuel commission shall not disclose any social security number submitted;
(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; and
(g) 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.
285:9 Licensing of Game Operators. Amend RSA 287-D:2-c, III(b) to read as follows:
(b) Has submitted a background and criminal record check pursuant to RSA 287-D:8; and
285:10 Licensing of Game Operators. Amend RSA 287-D:2-c, V to read as follows:
V. The game operator or the game operator’s employer shall submit a [$20,000] bond to the pari-mutuel commission in an amount up to $300,000 as determined by the pari-mutuel commission. Such bond shall be included with the application form.
285:11 New Paragraphs; Licensing of Game Operators. Amend RSA 287-D:2-c by inserting after paragraph V the following new paragraphs:
VI. To be eligible for licensure under this chapter, a licensed game operator shall maintain an account at a financial institution with at least one branch in New Hampshire solely in the name of the licensed game operator in which the money from games of chance shall be deposited and withdrawn.
VII. Game operators who operate games of chance on behalf of a charitable organization shall be responsible for all requirements that the charitable organization would otherwise be responsible for if they were operating the games of chance themselves.
285:12 License Fees and Specifications. RSA 287-D:2-d, III is repealed and reenacted to read as follows:
III. An applicant for a game operator license under RSA 287-D:2-c shall apply to the pari-mutuel commission and, if the applicant meets all other requirements of this chapter and pays the fee established by the pari-mutuel commission in rules adopted pursuant to RSA 541-A, 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.
285:13 New Paragraph; License Fees and Specifications. Amend RSA 287-D:2-d by inserting after paragraph VI the following new paragraph:
VII. Any game operator licensed pursuant to RSA 287-D:2-c shall be issued, as part of the yearly license, an identification badge by the pari-mutuel commission. The fee for such badge shall be established by the commission. The commission shall adopt rules pursuant to RSA 541-A to specify badge requirements.
285:14 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.
285:15 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 scaled to reflect the violator’s prior history and the scope and severity of the violation, after notice and an opportunity for a hearing, pursuant to rules adopted under RSA 541-A, for any violation of this subdivision, any rule adopted under this subdivision, any license issued pursuant to this chapter 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. Rehearings and appeals from a decision of the commission under this paragraph shall be in accordance with RSA 541. Fines imposed by the commission shall be determined as follows:
(a) For a minor deviation from a requirement, the fine shall be not less than $25 and not more than $1,500 per violation.
(b) For a moderate deviation from a requirement, the fine shall be not less than $100 and not more than $2,500 per violation.
(c) For a major deviation from a requirement, the fine shall be not less than $250 and not more than $5,000 per violation.
(d) For repeat violations, the commission may assess an additional fine.
VI. All fines imposed by the commission shall be deposited in the fund established pursuant to RSA 284:21-j.
285:16 New Paragraphs; Rulemaking. Amend RSA 287-D:1-b by inserting after paragraph XII the following new paragraphs:
XII-a. Administrative orders and fines pursuant to RSA 287-D:6.
XII-b. Badge specifications, requirements, and fees pursuant to RSA 287-D:2-d, VII.
XII-c. Game operator fees pursuant to RSA 287-D:2-d, III.
285:17 Background Check. Amend RSA 287-D:8, II to read as follows:
II. Upon receipt of an applicant’s criminal record information, the pari-mutuel commission shall make a determination of eligibility for licensure and whether the applicant is fit to be associated with games of chance in New Hampshire.
285:18 Federal Background Check. Amend RSA 287-D:8, III to read as follows:
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.] Every applicant shall submit to the pari-mutuel commission a notarized criminal history record release form, as provided by the New Hampshire division of state police, department of safety, which authorizes the release of his or her criminal history record, if any, to the pari-mutuel commission.
IV. The applicant shall submit with the release form a complete set of fingerprints taken by a qualified law enforcement agency or an authorized employee of the department of safety. In the event that the first set of fingerprints is invalid due to insufficient pattern, a second set of fingerprints shall be necessary in order to complete the criminal history records check. If, after 2 attempts, a set of fingerprints is invalid due to insufficient pattern, the pari-mutuel commission may, in lieu of the criminal history records check, accept police clearances from every city, town, or county where the person has lived during the past 5 years.
V. The pari-mutuel commission shall submit the criminal history records release form and fingerprint form to the division of state police which shall conduct a criminal history records check through its records and through the Federal Bureau of Investigation. Upon completion of the records check, the division of state police shall release copies of the criminal history records to the pari-mutuel commission. The pari-mutuel commission shall maintain the confidentiality of all criminal history records information received pursuant to this section.
VI. The pari-mutuel 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 V.
285:19 New Paragraph; Game Operator; Definition. Amend RSA 287-D:1 by inserting after paragraph IV the following new paragraph:
V. “Game operator” means:
(a) “Primary game operator” which 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; or
(b) “Secondary game operator” which means any person other than a bona fide member of the charitable organization, involved in dealing, running a roulette wheel, or handling chips.
285:20 Game Operator; Definition. Amend RSA 287-D:2-a, VIII(b) to read as follows:
(b) A licensed game operator pursuant to RSA [287-D:2-c] 287-D:1.
285:21 Repeal. The following are repealed:
I. RSA 287-D:2-b, XIII, relative to submission of information to the pari-mutuel commission.
II. RSA 287-D:2-c, I, relative to the definition of game operator.
III. RSA 287-D:2-d, IV, relative to authorization of specific games.
IV. RSA 284:23, V, relative to tax rates for Rockingham Park.
285:22 Effective Date.
I. Section 20 of this act shall take effect January 1, 2009.
II. The remainder of this act shall take effect June 30, 2008.
Approved: June 27, 2008
Effective Date: I. Section 20 shall take effect January 1, 2009.
II. Remainder shall take effect June 30, 2008.