HB 520-FN-A – AS INTRODUCED
2007 SESSION
08/04
HOUSE BILL 520-FN-A
AN ACT establishing a state-owned casino to provide funds for public education.
SPONSORS: Rep. DiFruscia, Rock 4; Rep. Gleason, Rock 5; Rep. Holden, Hills 7; Sen. Gallus, Dist 1
This bill:
I. Establishes a casino commission and authorizes it to establish state-owned casinos, at locations of its choosing, pending local approval.
II. Provides a limitation that no state-owned casino may be less than 100 miles apart.
III. Places control of gambling and betting at such casinos under authority of the commission.
IV. Provides that the commission shall have the option of administering the day-to-day operation of the facilities or contracting out such operation.
V. Requires the commission to investigate and issue casino work permits to casino employees.
VI. Provides that revenue from the facilities shall be forwarded to a casino revenue account, from which the costs of administering these provisions shall be paid. The balance shall be distributed as follows:
(a) Ten percent to provide scholarships for the benefit of residents of the state pursuing programs of higher education within the state.
(b) Ten percent to the university system of New Hampshire fund.
(c) Seventy-five percent to the education trust fund.
(d) Five percent to gambling addiction programs.
VII. Establishes salaries of commission members.
VIII. Provides a start-up appropriation of $1 to the commission for the fiscal year ending June 30, 2009.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
07-0390
08/04
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Seven
AN ACT establishing a state-owned casino to provide funds for public education.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Chapter; Casino and Convention Center Facilities. Amend RSA by inserting after chapter 284 the following new chapter:
CHAPTER 284-A
CASINO AND CONVENTION CENTER FACILITIES
284-A:1 Definitions. In this chapter:
I. “Casino” means a state-owned facility which is operated in accordance with this chapter and rules adopted under authority of this chapter.
II. “Casino employee” means any person employed in the operation of a casino, including without limitation, boxmen, cashiers, dealers or croupiers, floormen, hosts or other persons empowered to extend credit or complimentary service, machine mechanics, security personnel or inspectors, shift or pit bosses, supervisors or managers, and bartenders, waiters, and waitresses or other persons engaged in preparing or serving food or beverages within the casino.
III. “Casino work permit” means any card, certificate or permit issued by the commission which authorizes the employment of the holder as a casino employee at a casino.
IV. “Commission” means the casino commission established under RSA 284-A:2.
V. “Commissioner” means any member of the casino commission.
VI. “Executive director” means the executive director of the commission.
VII. “Game” or “gambling game” means any banking or percentage game located exclusively within a casino played with cards, dice, or any mechanical device or machine for money including, but not limited to: faro, monte, roulette, pan, twenty-one, blackjack, seven-and-a-half, baccarat, chemin-de-fer, dice, any game of poker, or slot machine. For the purposes of this chapter, “game” or “gambling game” shall not include the game of bingo, any derivative of bingo such as keno, or betting of any sort upon sports events or other activity not conducted in a casino.
VIII. “Gaming” or “gambling” means the dealing, operating, carrying on, conducting, maintaining or exposing for pay any game as defined in this section.
IX. “Gaming device” means any mechanical contrivance or machine used in connection with gaming or any game.
X. “Gross revenues” means the total of all sums actually received by a casino from gaming operations, less only the total of all sums paid out as winnings to patrons, in addition to the total of all sums received by the corresponding convention center. Gross revenues shall be calculated daily.
XI. “Hearing examiner” means a commissioner or other person authorized by the commission to conduct investigative hearings.
XII. “House profits” means gross revenues from a casino and convention center facility in their entirety, less operating and administrative expenses and bond payments.
XIII. “Person” means any corporation, association, operation, firm, partnership, trust, or other form of business association, as well as a natural person.
XIV. “Slot machine” means any mechanical, electrical, or other device, contrivance, or machine which, upon insertion of a coin, token, or similar object, or upon payment of any consideration, is available to play or operate, the play or operation of which, whether by reason of skill of the operator or application of the element of chance, or both, may deliver or entitle the person playing or operating the machine to receive cash, premiums, merchandise, tokens, or anything of value, whether the payoff is made automatically from the machine or in any other manner.
284-A:2 Casino Commission. There is created a casino commission consisting of 3 members who shall be known as casino commissioners, and who shall be appointed and may be removed for cause by the governor with the advice and consent of the council. One member shall be appointed for one year, one for 2 years and one for 3 years, and upon the expiration of their terms of office their respective successors shall be appointed for a term of 3 years. Any vacancy shall be filled by appointment for the unexpired term. The members shall serve until their successors are appointed and qualified. No member of the commission shall have any pecuniary or other interest in any supplier or agent to the commission, or in any supplier or lessor of gaming devices, or in any person, as defined in RSA 284-A:1, IX, contracted for the operation or management of a casino and convention center facility.
284-A:3 Organization. The commissioners shall select one from their number to be chairperson. Two of the members of the commission shall constitute a quorum to do business, not including the operation of a casino facility.
284-A:4 Bond. Members of the commission shall give bond to the state in such amount as shall be determined under the provisions of RSA 93-B.
284-A:5 Compensation. Each member of the commission shall receive an annual salary as specified in RSA 94:1-a. Members shall also be compensated for their reasonable expenses, including transportation, incurred in the performance of their duties under this chapter to be audited and allowed by the governor and council.
284-A:6 Executive Director. The commission shall appoint an executive director who shall serve at its pleasure. No person shall be eligible for nomination and appointment to such office unless he or she has had at least 5 years of responsible administrative experience in public or business administration. The executive director shall receive an annual salary as specified in RSA 94:1-a. The executive director shall be responsible to and under the supervision and direction of the commission, for the administration of this chapter and for enforcement of the rules adopted by the commission. The executive director shall be the secretary and executive officer of the commission.
284-A:7 Office. The commission shall have an office in the state at a location of its choice.
284-A:8 Commission Study. The commission shall carry on a continuous study and investigation of the conduct of casino gambling at state casinos for the purposes of:
I. Assuring effective and proper implementation and enforcement of the provisions of this chapter.
II. Formulating recommendations for legislative amendments to this chapter, as necessary.
284-A:9 Commission Duties; Investigators. The commission shall:
I. Choose the location of one or more casino and convention center facilities, pending local approval pursuant to RSA 284-A:33.
II. Construct and equip the casinos.
III. Administer, regulate, and control the casinos.
IV. Collect and administer the revenues received under this chapter.
V. Investigate the circumstances surrounding any act or transaction for which commission approval is required.
VI. Observe the conduct of all persons having a material involvement directly or indirectly with the operation or management of a casino to ensure that there shall be no material involvement directly or indirectly with the management or operation of a casino by:
(a) Unqualified or disqualified persons.
(b) Unsuitable persons.
(c) Persons whose operations are conducted in an unsuitable manner, or in an unsuitable place or location.
VII. Have authority to hire employees of casinos.
284-A:10 Locations. One or more casinos may be established in the state, provided that no 2 state casinos shall be located less than 100 miles apart.
284-A:11 Management of Casino Operations. The commission shall have the option of managing the daily operations of any casino or of entering into contracts with any person, as defined in RSA 284-A:1, XIII, for the management of daily operations of any casino and convention center facility.
284-A:12 Construction; Commencement of Operations.
I. Construction plans shall be approved by all appropriate local and state agencies and all necessary permits shall be obtained before the commencement of casino construction.
II. Construction shall commence upon, and be completed within, dates specified by the commission.
III. No casino operations of any kind shall be permitted until construction has been completed and the facility has been certified by the commission as complying with this chapter.
284-A:13 Inspection. The commission and its agents, inspectors, and employees shall have the authority, without notice and without warrant, to:
I. Inspect and examine the premises on which casino gambling is conducted.
II. Inspect all equipment and supplies in, about, upon, or around such premises.
III. Seize summarily and remove from such premises and impound any such equipment or supplies for the purposes of examination and inspection.
IV. Inspect books, memoranda, and documents showing the receipts and disbursements of a casino.
V. Seize, impound, or assume physical control of any book, record, ledger, game, device, cash box and its contents, counting room or its contents, or casino operations. Any equipment, supplies, records, or other objects or documents seized, impounded, or physically controlled by the commission under this section may be held pending the filing and disposition of a complaint.
VI. Inspect a casino at any time during hours of operation and certify the accuracy of money and vouchers received by the casino, in order to ensure compliance with applicable statutes and the rules of the commission.
284-A:14 Subpoena; Service of Process. The commission shall have authority to issue subpoenas and compel the attendance of witnesses at any place within this state, to administer oaths, and to require testimony under oath. Any process or notice may be served in a manner provided for service of process and notice in civil actions.
284-A:15 Commission Members; Ineligibility. No person shall be eligible to serve as a member of the commission who shall have, within 5 years prior to appointment or employment, been an owner of any gambling establishment or employee of any gambling establishment or of any person engaged in the operation of licensed pari-mutuel betting. During such person’s term of office or employment and for 5 years thereafter, such person shall not have a pecuniary interest, directly or indirectly, in any organization or establishment operating pursuant to this chapter or be employed in any capacity by any such organization or establishment. A casino employee shall not be considered an employee of the commission.
284-A:16 Commission Records. The commission shall keep a record of all proceedings under this chapter. The commission may also maintain such other files and records as it deems necessary.
284-A:17 Enforcement.
I. The commission shall request the attorney general to proceed in any action or prosecution to enforce the provisions of this chapter.
II. At any time within 5 years after any amount of revenue required to be collected under this chapter becomes due and payable, the commission through the attorney general may bring a civil action in the courts of this state, any other state, or of the United States to collect in the name of the state of New Hampshire the amount delinquent together with penalties and interest. If the action is brought in this state:
(a) A writ of attachment may be issued and no bond or affidavit prior to its issuance shall be required.
(b) The records of the commission shall be prima facie evidence of the determination of the amount of the delinquency.
284-A:18 Rules. The commission shall adopt rules, under RSA 541-A, relative to:
I. The information to be furnished by any casino employee concerning such person’s background, business associates, criminal record, business activities and financial affairs, past or present.
II. Methods of identification of casino employees.
III. The manner and method of collection of revenue under this chapter.
IV. The areas of operation, games and devices permitted, and the method of operation of such games and devices.
V. The practice of extending credit to patrons, including the authority to limit the circumstances and amount of credit.
VI. The hours of operation of games.
VII. Standards for exclusion or ejection of persons from a casino.
VIII. The qualifications of, and the conditions pursuant to which attorneys, accountants, and others shall be permitted to practice before the commission.
IX. Internal fiscal procedures and periodic financial reports.
X. Acquisition or leasing of gaming devices used in the operation of a casino.
XI. Security procedures used in the operation of casinos.
XII. Any other matter necessary to the administration of this chapter.
284-A:19 Employee Discipline. The commission may limit, suspend, or discharge any casino employee, in accordance with this chapter and rules adopted by the commission, if such employee fails to adhere to the standards adopted by the commission for exclusion or ejection.
284-A:20 Financial Reports; Internal Fiscal Procedures.
I. The commission shall by rule require periodic financial reports and shall:
(a) Specify standard forms for reporting financial condition, results of operations, and other relevant information.
(b) Formulate a uniform code of accounts and accounting classifications to assure consistency, comparability, and effective disclosure of all financial information.
(c) Determine the intervals at which such information shall be furnished.
(d) Require audits of the financial statements which shall be made not less frequently than once each year.
II. The commission shall by rule prescribe minimum procedures to be followed in the exercise of effective control over its internal fiscal affairs including, but not limited to:
(a)(1) The safeguarding of assets and revenues, and the recording of cash and evidences of indebtedness. No credit shall be extended on behalf of a casino to any patron without a written memorandum of credit. Such memorandum shall be filed with the daily receipts and preserved until satisfied or canceled pursuant to rules of the commission.
(2) No casino employee shall extend credit or favors to any member of the general court, any appointed or elected state official, or any member of the family of such member of the general court or official.
(3) Violation of this subparagraph shall be a class B misdemeanor.
(b) The adoption and use of internal audits, whether by qualified internal auditors or by accountants holding a license to practice public accounting.
284-A:21 Hours of Operation. Hours of operation of all games shall be uniform. Games shall not be operated for more than 16 hours in any 24-hour period.
284-A:22 Conduct Prohibited.
I. It shall be unlawful for any casino employee:
(a) To deal, operate, carry on, conduct, maintain, or expose for play in the state of New Hampshire any game or slot machine as defined in this chapter, except as provided by this chapter and rules adopted by the commission pursuant to this chapter.
(b) To receive, directly or indirectly, any compensation, reward, or any percentage or share of the money or property played for keeping, running, or carrying on any game or slot machine except under the provisions of this chapter.
II. It shall be unlawful for any person to lend, let, lease, or otherwise deliver or furnish any service including service in managing a casino and convention center facility, or any equipment for any gambling game including slot machines, for any interest or any percentage or share of the money or property played for with respect to such equipment, or for any interest however defined in the revenues, profits, or earnings of a casino and convention center facility, other than pursuant to the terms of a written agreement, which agreement shall not be effective unless approved by the commission.
284-A:23 Political Contributions. Any contribution made to any candidate, party, group, committee, or association by any casino employee or family member of a casino employee shall be reported to the commission by the receiver of the contribution within 5 days after such contribution. Nothing in this section shall be construed to authorize a contribution in any amount or manner otherwise forbidden by law.
284-A:24 Agreements; Prohibition.
I. The commission may require an application for approval of any agreement regarding the realty of, or any business or person doing business on the premises of a casino, in order that the commission may determine whether said agreement or person should be approved to be associated with the casino in accordance with this chapter. If the commission does not approve such an application, the commission shall require the termination of such association. Any agreement which entitles a business other than a casino to be conducted on such premises shall be subject to commission approval of the business or of any person associated with the business. Every such agreement shall be deemed to include a provision for its termination without liability on the part of the business, if the commission disapproves of the business or of any other person associated with the business, by reason of a finding that the business or person is unsuitable to be associated with the casino. Failure to expressly include such a condition in the agreement shall not constitute a defense in any action brought to terminate the agreement.
II. It shall be unlawful for any person to sell, purchase, lease, assign, hypothecate, borrow, or loan money upon, or create a voting trust agreement or any other agreement of any sort with respect to a casino, except in accordance with the rules of the commission.
284-A:25 Casino Employee Work Permits.
I. No person may commence or continue in employment as a casino employee unless such person is the holder of a valid work permit issued by the commission.
II. An applicant for a casino work permit shall provide the commission with a full set of fingerprints and 2 suitable photographs in the form required by the commission. The commission shall maintain these records for identification, security, discipline, and casino control purposes.
III. Application for a casino work permit shall be made to the commission, and may be granted or denied for any cause deemed reasonable by the commission.
IV. Any person whose application for a casino work permit has been denied by the commission may apply in writing to the commission for a hearing which shall be held within 30 days after the request has been received by the commission. The commission shall uphold or reverse the denial within 15 days after the completion of such hearing.
V. Any applicant aggrieved by a decision of the commission under this section may appeal pursuant to RSA 541.
VI. All records acquired or compiled by the commission relating to any application under this section are confidential and no part of such application may be disclosed, except in the proper administration of this chapter or to an authorized law enforcement agency. All lists of persons to whom casino work permits have been issued or denied, and all records of the names or identity of the persons engaged in the gaming industry in this state are confidential and shall not be disclosed, except in the proper administration of this chapter or to an authorized law enforcement agency.
284-A:26 Casino Employee Permit; Fees; Revocation.
I. The commission shall by rule establish annual fees for the issuance and renewal of casino work permits for the various classes of casino employees, which fees shall be paid by the employer licensee.
II.(a) If any casino employee is convicted of a violation of this chapter, the commission shall hold a hearing and revoke the employee’s casino work permit if the findings of the hearing sustain the alleged violation.
(b) The commission shall revoke a casino work permit if it finds that the casino employee has failed to disclose, misstated, or otherwise misled the commission with respect to any fact contained or required to be contained in any application for a casino work permit. Falsification of such application shall be a class B misdemeanor.
284-A:27 Distribution of Revenues. There is hereby established a casino revenue account consisting of the gross revenues collected under this chapter. Funds in the account shall be used to pay the expenses of the commission in administering this chapter. Remaining account moneys represent house profits, and shall be distributed as follows:
I. Ten percent of house profits shall be credited to the casino education trust fund (“the trust fund”), hereby established in the office of the treasurer, which shall be kept distinct and separate from all other funds. The state treasurer shall be the trustee of the trust fund, and shall invest the trust fund in accordance with RSA 6:8. Any earnings on trust fund moneys shall be added to the trust fund. The trust fund shall be nonlapsing. All moneys in the trust fund shall be transferred, on July 1 immediately following 5 full years of state casino operations, to the New Hampshire excellence in higher education endowment trust fund established under RSA 6:38, to be used for providing scholarships for the benefit of residents of the state pursuing programs of study at eligible educational institutions within the state. Thereafter the casino education trust fund shall be closed.
II. After the transfer of moneys from the casino education trust fund to the New Hampshire excellence in higher education endowment trust fund, as provided in paragraph I, 10 percent of house profits thereafter shall be credited to the New Hampshire excellence in higher education endowment trust fund to be administered in conformance with and for the purposes of that trust fund.
III. Ten percent of house profits shall be credited to the university system of New Hampshire fund established under RSA 187-A:7.
IV. Seventy-five percent of house profits shall be credited to the education trust fund established under RSA 198:39.
V. Five percent of house profits shall be designated for gambling addiction treatment programs to be paid in a manner and at the discretion of the commission.
284-A:28 Prohibited Acts.
I. Any person who knowingly fails to report, pay, or truthfully account for and pay over any revenue received under this chapter, or who knowingly attempts in any manner to evade or defeat such payments shall be guilty of a class A misdemeanor, and shall in addition be liable for a fine in the same amount as the revenue owed, paid, collected, or paid over subject to the maximum fine amounts set forth in RSA 651:2, IV.
II.(a) No person shall permit any gambling game, slot machine or device to be conducted, operated, dealt, or carried on in any casino by a person other than by a person employed under this chapter and any gaming device, slot machine, or related equipment used contrary to this paragraph shall be seized by appropriate state and local enforcement authorities.
(b) No games or slot machines shall be put into play or displayed without the authority of the commission.
(c) No person shall work as a casino employee without obtaining a casino work permit.
(d) Any person who violates this paragraph shall be fined pursuant to RSA 651:2, IV, and shall have any gaming device, slot machine or related equipment seized by appropriate state and local enforcement authorities.
III. Any person with 2 or more violations of paragraph II within a 2-year period shall be guilty of a class B felony.
284-A:29 Cheating; Penalty.
I. No person playing a gambling game at a casino shall:
(a) Use bogus or counterfeit chips, or substitute and use in any such game cards or dice that have been marked, loaded, or tampered with.
(b) Employ or have on their person any device to facilitate cheating in such games.
II. It shall be unlawful for any person playing or using a slot machine designed to receive or be operated by legal tender of the United States of America:
(a) To knowingly use any tender other than legal tender of the United States of America, or to use coin not of the same denomination as the coin intended to be used in such slot machine, except that in the playing of any slot machine it shall be lawful for any person to use tokens or similar objects which are approved by the commission.
(b) To use any cheating or thieving device, including but not limited to tools, drills, wires, coins attached to strings or wires, or electronic or magnetic devices, to facilitate the alignment of any winning combination or removing money or other contents from any slot machine.
III. It shall be unlawful for any person, except a duly authorized employee of a casino acting in furtherance of such employee’s scope of employment, to have on his or her person or in his or her possession while on the premises of a casino, any cheating or thieving device, including but not limited to tools, wires, drills, coins attached to strings or wires, or electronic or magnetic devices to facilitate removing money or other contents from any slot machine.
IV. It shall be unlawful for any person, except a duly authorized employee of a casino acting in furtherance of such employee’s scope of employment, to have on his or her person or in his or her possession while on the premises of a casino any key or device known to have been designed for the purpose of and suitable for opening or entering any slot machine or drop box.
V. It shall be unlawful:
(a) To conduct, carry on, operate, deal or allow to be conducted, carried on, operated or dealt any cheating or thieving game or device.
(b) To deal, conduct, carry on, operate or expose for play any game or games played with cards, dice or any mechanical device, or any combination of games or devices, which have in any manner been marked or tampered with, or placed in a condition, or operated in a manner, the result of which tends to deceive the public or tends to alter the normal random selection of criteria which determine the result of a game.
(c) To use or possess any marked cards, loaded dice, plugged or tampered-with machines or devices.
VI. Any person who violates this section shall be guilty of a class B felony.
284-A:30 Minors Prohibited; Penalty. No person under 21 years of age shall be employed by or allowed to enter a casino. Any casino employee who knowingly allows a minor to enter a casino shall be guilty of a class A misdemeanor, provided, however, that the following facts established by a person allowing any such minor to enter a casino shall constitute an affirmative defense to any prosecution therefor:
I. The minor falsely represented that such minor was 21 years of age or older.
II. The appearance of the minor was such that an ordinary prudent person would believe the minor to be 21 years of age or older.
III. Admittance was made in good faith, relying upon such written representation and appearance, and in reasonable belief that the minor was actually 21 years of age or older.
284-A:31 Declaration of Limited Exemption from Operation of Provisions of 15 U.S.C. section 1172. Pursuant to section 2 of an act of Congress of the United States entitled “An act to prohibit transportation of gambling devices in interstate and foreign commerce,” approved January 2, 1951, being Chapter 1194, 64 Stat. 1134, and also designated as 15 U.S.C. sections 1171-1177, the state of New Hampshire, acting by and through the duly elected and qualified members of its legislature, does hereby, in accordance with and in compliance with the provisions of section 2 of that act of Congress, declare and proclaim that section 2 of that act of Congress shall not apply to any gambling device in this state where the transportation of such a device is specifically authorized by and done in compliance with the provisions of this chapter and any rules adopted pursuant to it, and that any such gambling device transported in compliance with state law and rules shall be exempt from the provisions of that act of Congress.
284-A:32 Legal Shipment of Gaming Devices into New Hampshire. All shipments of gaming devices into this state, the registering, recording and labeling of which has been duly had by the manufacturer or dealer in accordance with sections 3 and 4 of an act of Congress of the United States entitled “An act to prohibit transportation of gambling devices in interstate and foreign commerce,” approved January 2, 1951, being chapter 1194, 64 Stat. 1134, and also designated as 15 U.S.C. sections 1171-1177, shall be deemed legal shipments into this state.
284-A:33 Adoption by Local Community. A town or city in which a location for a casino has been chosen by the commission may adopt the provisions of RSA 284-A, for the establishment of a state-owned casino in the municipality, in the following manner:
I. In a town, other than a town that has adopted a charter pursuant to RSA 49-D, the question shall be placed on the warrant of a special or annual town meeting, by the governing body or by petition pursuant to RSA 39:3, and shall be voted upon by official ballot if that town has adopted the official ballot for the election of officers. A public hearing shall be held at least 15 but not more than 60 days prior to the vote.
II. In a city or a town that has adopted a charter pursuant to RSA 49-D, the legislative body may consider and act upon the question in accordance with its normal procedures for passage of resolutions, ordinances, and other legislation. In the alternative, the legislative body of any such municipality may vote to place the question on the official ballot for any regular municipal election.
2 New Hampshire Excellence in Higher Education Endowment Trust Fund; Moneys Credited. Amend RSA 6:38, I to read as follows:
I. There is hereby established in the office of the treasurer the New Hampshire excellence in higher education endowment trust fund which shall be kept distinct and separate from all other funds. Annual administrative fees less any annual administrative costs received from the New Hampshire college tuition savings plan established under RSA 195-H shall be credited to the trust fund, as well as moneys credited pursuant to RSA 284-A:27 I-II, to provide scholarships for the benefit of residents of the state pursuing programs of study at eligible educational institutions within the state.
3 University System of New Hampshire Fund; Moneys Credited. Amend RSA 187-A:7, I to read as follows:
I. For the purpose of providing a fund to be known as the university system of New Hampshire fund, the state treasurer shall credit to such fund the appropriation made to the university system for each fiscal year, as well as moneys credited to the fund pursuant to RSA 284-A:27, III.
4 Education Trust Fund; Moneys Credited. Amend RSA 198:39, I(k) to read as follows:
(k) All moneys due the fund in accordance with RSA 284-A:27, IV.
(l) Any other moneys appropriated from the general fund.
5 New Subparagraph; State-owned Casino Not Prohibited. Amend RSA 647:2, V by inserting after subparagraph (c) the following new subparagraph:
(d) State-owned casinos established under RSA 284-A.
6 Compensation of State Officers; Salaries. Amend RSA 94:1-a, I as follows:
Insert in group P:
Executive director, casino and convention center commission.
7 Compensation of State Officers; Salaries. Amend RSA 94:1-a, II as follows:
Insert:
Casino and convention center commission, chairperson $13,005, maximum.
Casino and convention center commission, members $ 6,936, maximum.
8 Appropriation. The sum of $1 is hereby appropriated to the casino and convention center commission for the fiscal year ending June 30, 2009. Said sum shall be used to carry out the purpose of this act. The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated.
9 Moneys Credited to the New Hampshire Excellence in Higher Education Endowment Trust. In accordance with RSA 284-A:27, section 2 of this act shall take effect on July 1 immediately following 5 full years of state casino and convention center facilities operation.
10 Effective Date.
I. Section 2 of this act shall take effect as provided in section 9 of this act.
II. The remainder of this act shall take effect July 1, 2007.
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HB 520-FN-A - FISCAL NOTE
AN ACT establishing a state-owned casino to provide funds for public education.
FISCAL IMPACT:
The Office of Legislative Budget Assistant, Lottery Commission, Department of Justice, Judicial Branch, Judicial Council, and Department of Corrections indicate this bill will increase state revenue and expenditures by an indeterminable amount in FY 2008 and each year thereafter. There will be no fiscal impact on county and local revenue or expenditures.
This bill appropriates $1 from the general fund in FY 2009 to the Casino Commission established by this bill.
METHODOLOGY:
The Office of Legislative Budget Assistant states this bill establishes a Casino Commission responsible for developing and operating state-owned casinos. Pursuant to the proposed RSA 284-A:27, the Casino Commission shall pay its expenses from a casino revenue account containing gross revenues collected from casino operations. This bill provides that house profits will be distributed as follows: 10% to the casino education trust fund, with all moneys in the casino education trust fund to be transferred to the New Hampshire excellence in higher education endowment trust fund on the July 1 immediately following five full years of casino operations, and thereafter 10% to the New Hampshire excellence in higher education endowment trust fund; 10% to the university system of New Hampshire fund; 75% to the education trust fund; and 5% for gambling addiction treatment programs. The Office of Legislative Budget Assistant indicates total state net revenue from casino operations will depend on the number of casinos built, the games offered at such casinos, gross casino revenue, casino operating costs, and other factors.
The Lottery Commission provided revenue and expenditure estimates relative to slot machine operations in casinos; however, this bill delegates casino responsibilities to the proposed Casino Commission, not the Lottery Commission. The Lottery Commission assumes there will be one casino established under this bill. The Commission estimates net slot machine revenue to the state from 500 slot machines at $296 per machine per 16-hour day of operation. The Commission states it does not have revenue data on table games; therefore, revenue and
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expenditure calculations are limited to slot machines only. The Commission estimates annual net slot machine revenue will be $54,020,000 (500 machines x $296 per machine x 365 days). The Commission assumes the casino will be fully operational in FY 2009.
The Lottery Commission indicates state expenditures will increase for slot machine leasing and central system costs. The Commission assumes the State will annually lease 500 slot machines at a cost of $4,862 per machine, for an annual cost of $2,431,000. The Commission indicates the state must obtain a central gaming computer system capable of handling the state’s video lottery needs, including processing performance, information technology support, and software functions and controls. The Commission estimates the annual cost of the system at 10% of net slot machine revenues, or $5,402,000. The Commission estimates state expenditures for slot machine operations of $7,833,000 ($2,431,000 + $5,402,000) in FY 2009 and each year thereafter.
The Office of Legislative Budget Assistant states this bill establishes four new positions, including three Casino Commissioners and an Executive Director. Expenditures for these four positions will be as follows:
FY 2008 and each fiscal year thereafter
Executive Director (Group PP) $124,047
Benefits (48.3% of salary) 59,915
Total, Executive Director 183,962
Casino Commission Chair 13,005
Casino Commission Members (2) 13,872
Total, Commission Salary 26,877
Benefits, Commission
(7.65% of Salary) 2,056
Total, Casino Commission 28,933
Grand Total $212,895
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The Office of Legislative Budget Assistant further states this bill authorizes the Casino Commission to construct, equip, manage, and staff casinos, which will increase state restricted expenditures by an indeterminable amount in FY 2008 and each fiscal year thereafter.
The Department of Justice states this bill provides that the attorney general would, at the Casino Commission’s request, proceed in any action or prosecution to enforce the provisions of this bill. The Department would also be responsible to give legal counsel to the newly-created Casino Commission. The Department states it is unable to estimate the increase in general fund expenditures that may result from the additional responsibilities contained in this bill because it cannot predict the number of casinos to be developed, the number of casino employees, or how many civil or criminal actions would be pursued, and therefore cannot predict how much additional time it would have to devote to providing legal counsel or engaging in litigation.
The Judicial Branch states this bill establishes certain civil actions, class A misdemeanors, class B misdemeanors, class B felonies, and appeals to the Supreme Court from Casino Commission decisions on work permits. The Branch states it cannot estimate the type or number of cases that may occur under this bill. A recent National Center for State Courts study calculated the Branch’s per case costs at current salary levels as follows: routine civil case in Superior Court, $302; complex civil case in Superior Court, $391; class B misdemeanor, $37; class A misdemeanor, $50; class B felony, $297. The Branch states the Supreme Court has discretionary review of appeals from Casino Commission decisions on work permits, meaning the court decides whether to accept the appeal for full appellate review, accept it for more limited review, or decline the appeal. The Branch states it cannot determine the increase in general fund expenditures that may result from civil cases, criminal cases, or appeals.
The Judicial Council states this bill establishes new penalty provisions relating to prohibited conduct that include class A misdemeanors, class B misdemeanors, and class B felonies. The Council states it cannot determine if this bill will result in additional cases being brought. To the extent additional cases are brought and the individuals so charged have been determined to be indigent, general fund expenditures will increase. If either a public defender or contract attorney is appointed to the case, the fixed fee of $275 for a misdemeanor and $756 for a felony is charged. If an assigned counsel attorney must be used due to either conflict of interest or caseload limitations, the $60 per hour rate, with a fee cap of $1,000 for a misdemeanor and
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$3,000 for a felony will be assessed. The fee cap may be waived upon motion filed in advance and approved by the court. Additional costs could be incurred for “services other than counsel” and appeals to the Superior Court or Supreme Court.
The Department of Corrections states it cannot predict the number of individuals that may be found guilty of a felony for violating provisions of this bill; however, the average annual cost of incarcerating an individual in the general prison population for FY 2006 was $31,140, and the average annual cost to supervise an offender by the Division of Field Services for FY 2006 was $1,174.
The Treasury Department states the cost of establishing and providing administration for the casino education trust fund established by this bill, and the cost associated with transfers of funds, will be insignificant and can be absorbed within existing appropriations.