HB886 (2008) Detail

Relative to funding an adequate education.


HB 886-FN-A-LOCAL – AS INTRODUCED

2007 SESSION

07-0728

04/10

HOUSE BILL 886-FN-A-LOCAL

AN ACT relative to funding an adequate education.

SPONSORS: Rep. Wells, Rock 8; Rep. Guthrie, Rock 8; Rep. Butynski, Ches 4; Rep. Holden, Hills 7

COMMITTEE: Ways and Means

ANALYSIS

This bill:

I. Requires the commissioner of the department of revenue administration to set the adequate education property tax rate at a rate one cent below the rate at which no education property tax would be created for any municipality.

II. Establishes video lottery gaming and sets aside $5,000,000 per year in a treatment and prevention fund for abusers of alcohol, drugs, and gambling.

III. Provides an additional $400,000,000 for adequate education grants.

IV. Repeals provisions relating to the excess statewide education property tax.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

07-0728

04/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Seven

AN ACT relative to funding an adequate education.

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

1 Department of Revenue Administration; Cooperative Assessment Districts; Purpose. Amend RSA 21-J:14-h to read as follows:

21-J:14-h Purpose. The general court finds that the encouragement and support of the establishment of multi-jurisdictional assessing districts is in the state’s interest in order to ensure the accuracy and fairness of valuations of real property for the purposes of administration of the statewide [enhanced] adequate education property tax, county property taxes, school district property taxes, municipal property taxes, the distribution of various forms of state aid, and the equalization of property values among jurisdictions. The general court further recognizes that many municipalities do not have sufficient numbers of real estate parcels, sufficient varieties of real property, or sufficient levels of new development to make it practical or economical to engage full-time, trained, and certified assessing professionals. The general court further finds that the state has a vested interest in encouraging and supporting the establishment of cooperative assessing districts which can efficiently and economically provide full-time, trained, and certified assessing professionals to serve the municipalities which elect to create and join said districts.

2 Apportionment, Assessment, and Abatement of Taxes; Statewide Adequate Education Property Tax. RSA 76:3 is repealed and reenacted to read as follows:

76:3 Statewide Adequate Education Property Tax. Beginning July 1, 2007, and every July 1 of the first year of the biennium thereafter, the commissioner of the department of revenue administration shall set the statewide adequate education property tax rate at a rate one cent below the rate at which no excess statewide adequate education property tax would be created for any municipality when imposed on all persons and property taxable pursuant to RSA 76:8, except property subject to tax under RSA 82 and RSA 83-F. The statewide adequate education property tax rate shall be the same in the second year of each biennium.

3 Statewide Adequate Education Property Tax Rate; Base Year for Calculation. The department of revenue administration shall use data from the 2005 fiscal year in calculating the statewide adequate education property tax rate for the 2008 fiscal year.

4 Apportionment, Assessment, and Abatement of Taxes; Commissioner’s Warrant. Amend RSA 76:8 to read as follows:

76:8 Commissioner’s Warrant.

I.(a) The commissioner shall annually determine a municipality’s tax base for the statewide [enhanced] adequate education property tax by subtracting from the total equalized valuation of all property, as determined under RSA 21-J:3, XIII for the preceding year, property that was then taxable under RSA 82 and RSA 83-F. In determining the tax base, the value of any utility property that was not taxable under RSA 83-F in the preceding year but is taxable under RSA 83-F in the current year shall also be subtracted, provided the sum value represents at least 5 percent of the total equalized value of all property, except property taxable under RSA 82 or RSA 83-F in the preceding year.

(b) The commissioner shall calculate the portion of the statewide [enhanced] adequate education property tax to be raised by each municipality by multiplying the uniform education property tax rate by the municipality’s tax base.

II. The commissioner shall issue a warrant under the commissioner’s hand and official seal for the amount computed in paragraph I to the selectmen or assessors of each municipality by December 15 directing them to assess such sum and pay it to the municipality for the use of the school district or districts [and, if there is an excess statewide enhanced education tax payment due pursuant to RSA 198:46, directing them to assess the amount of the excess payment and pay it to the department of revenue administration for deposit in the education trust fund]. Such sums shall be assessed at such times as may be prescribed for other taxes assessed by such selectmen or assessors of the municipality.

III. Municipalities are authorized to assess local property taxes necessary to fund school district appropriations not funded by the statewide [enhanced] adequate education property tax, by distributions from the education trust fund under RSA 198:39, or by other revenue sources.

5 Utility Property Tax; Exemption. Amend the section heading of RSA 83-F:9 to read as follows:

83-F:9 Exemption From Statewide [Enhanced] Adequate Education Property Tax.

6 Reference Changes. Amend the following RSA provisions by replacing “equitable” with “adequate”: RSA 21-N:1, II(c); RSA 193:1, I(c); RSA 193-E:1, II; the introductory paragraph of RSA 193-E:2; the section heading of RSA 193-E:3; RSA 194-B:3, II(i); RSA 194-B:11, IX(a); RSA 198:43; RSA 198:48; and RSA 198:48-a, VII-VIII.

7 Cooperative School Districts; Certification of District Taxes. Amend RSA 195:14, I(c)-(d) to read as follows:

(c) The commissioner of revenue administration shall certify to the state department of education the total amount to be apportioned among the pre-existing school districts. Such total shall include the [equitable] adequate education cost for the district and the amount above the cost of an [equitable] adequate education to be assessed and collected as local educational taxes.

(d) The state department of education shall determine the proportional share of the costs above an [equitable] adequate education to be assessed as local education taxes as follows:

(1) First, the department shall determine each pre-existing district’s proportional share of the total amount to be apportioned based on the cooperative school district formula.

(2) Second, the department shall then deduct each pre-existing school district’s [equitable] adequate education cost from its proportional share of the total amount to be apportioned.

(3) Third, the department shall notify the commissioner of revenue administration of its determinations.

(4) If the amount determined in subparagraph (2) for any pre-existing district is less than zero, the department shall reduce the [equitable] adequate education grant payable to the cooperative district under RSA 198:42 by the difference between the amount determined in subparagraph (1) and the pre-existing district’s [equitable] adequate education cost.

8 Charter and Open Enrollment Schools; Funding. Amend RSA 194-B:11, I(c) to read as follows:

(c) Tuition amounts shall be prorated on a per diem basis for pupils attending a school for less than a full school year. To the extent permitted by law, tuition payments shall coincide with the distribution of [equitable] adequate education grants under RSA 198:42 or on such other terms as are mutually acceptable.

9 School Money; Education Trust Fund. Amend RSA 198:39, I to read as follows:

I. The state treasurer shall establish an education trust fund in the treasury. Moneys in such fund shall not be used for any purpose other than to distribute [equitable] adequate education grants to municipalities’ school districts pursuant to RSA 198:42, and to provide low and moderate income homeowners property tax relief under RSA 198:56-198:61. The state treasurer shall deposit into this fund immediately upon receipt:

(a) Funds certified to the state treasurer by the commissioner of revenue administration pursuant to RSA 77-A:20-a, relative to business profits taxes.

(b) Funds certified to the state treasurer by the commissioner of revenue administration pursuant to RSA 77-E:14, relative to business enterprise tax.

(c) Funds collected and paid over to the state treasurer by the commissioner of revenue administration pursuant to RSA 78-A:26, III relative to the tax on motor vehicle rentals.

(d) Funds collected and paid over to the state treasurer by the department of revenue administration pursuant to RSA 78:32, relative to tobacco taxes.

(e) Funds certified to the state treasurer by the commissioner of revenue administration pursuant to RSA 78-B:13, relative to real estate transfer taxes.

(f) Funds collected and paid over to the state treasurer by the department of revenue administration pursuant to RSA 83-F:7, I, relative to the utility property tax.

[(g) The full amount of excess education property tax payments from the department of revenue administration pursuant to RSA 198:46.]

[(h)] (g) All moneys due the fund in accordance with RSA 284:21-j, relative to sweepstakes and the lottery.

[(i)] (h) Tobacco settlement funds in the amount of $40,000,000 annually.

[(j)] (i) The school portion of any revenue sharing funds distributed pursuant to RSA 31-A:4 which were apportioned to school districts in the property tax rate calculations in 1998.

[(k)] (j) Funds collected and paid over to the state treasurer by the pari-mutuel commission pursuant to RSA 284-A, relative to video lottery.

(k) Any other moneys appropriated from the general fund.

10 School Money; Determination of Grants. RSA 198:41 is repealed and reenacted to read as follows:

198:41 Determination of Grants.

I. For each municipality the department of education shall determine the total education grant as follows:

(a) For the fiscal years beginning July 1, 2005 and July 1, 2007, add the amounts determined in RSA 198:40-a, RSA 198:40-b, and RSA 198:40-c for each municipality. Such amount shall also be used to determine a municipality’s grant in the second year of such bienniums.

(b)(1) For the fiscal year beginning July 1, 2005, if a municipality’s education grant as determined in subparagraph (a) is less than 85 percent of the education grant determined for such municipality for the fiscal year beginning July 1, 2004, under the version of RSA 198:41 in effect on July 1, 2004, then the municipality shall receive a transition grant equal to the excess of 85 percent of the education grant determined for such municipality for the fiscal year beginning July 1, 2004 over the municipality’s grant determined in subparagraph (a).

(2) For the fiscal year beginning July 1, 2006, an eligible municipality shall receive the same amount as determined under subparagraph (b)(1).

(c)(1) For the fiscal year beginning July 1, 2007, if a municipality’s education grant as determined in subparagraph (a) is less than 85 percent of the municipality’s education grant determined in subparagraph (b), then the municipality shall receive a transition grant equal to the excess of 85 percent of the education grant determined for such municipality for the fiscal year beginning July 1, 2006 over the municipality’s grant determined in subparagraph (a).

(2) For the fiscal year beginning July 1, 2008, an eligible municipality shall receive the same amount as determined under subparagraph (c)(1).

(d) The total education grant shall be the sum of subparagraphs (a), (b), and (c).

(e) The department of education shall notify municipalities of the estimated amounts of grants by the November 15 which precedes the fiscal year for which aid is determined.

II. Total state aid for an equitable education shall be the sum total of grants in paragraph I; plus the sum total of the statewide enhanced education tax assessed pursuant to RSA 76:8.

11 School Money; Determination of Grants; Version Effective July 1, 2009. RSA 198:41, I is repealed and reenacted to read as follows:

I. For each municipality, the department of education shall determine the total education grant as follows:

(a) For the first year of the biennium add the amounts determined in RSA 198:40-a, RSA 198:40-b, and RSA 198:40-c.

(b) For the second year of the biennium, the total grant shall be the total grant as determined in paragraph I for the first year of the biennium.

(c) The department of education shall notify municipalities of the estimated amounts of grants by the November 15 which precedes the fiscal year for which aid is determined.

12 Excess Education Property Tax Payment; Subdivision Heading Amended. Amend the subdivision heading immediately preceding RSA 198:46 to read as follows:

[Excess Education Property Tax Payment] Miscellaneous Provisions

13 School District Reports Required. Notwithstanding the provisions of RSA 193-E and RSA 198, a school district which fails to submit its balance sheet report, known as the DOE-25 report, for the 2006 fiscal year to the department of education by July 1, 2007 shall receive no adequate education grant for the 2008 fiscal year.

14 Grant Calculations for Fiscal Year 2008. The department shall calculate the adequate education grant amounts in accordance with the provisions of RSA 193-E:2-a and RSA 198. The department of education shall issue directions, guidelines, or samples to school districts on the proper reporting of annual school expenses.

15 New Chapter; Video Lottery. Amend RSA by inserting after chapter 284 the following new chapter:

CHAPTER 284-A

VIDEO LOTTERY

284-A:1 Definitions. In this chapter:

I. “Facilities applicant” means the applicant for a facilities license.

II. “Facilities licensee” means an applicant who is issued a license by the pari-mutuel commission to provide facilities and support to video lottery locations, which facility location must have existed as of January 1, 2002, and is located within Coos county.

III. “Facilities license” means the license issued by the pari-mutuel commission to a facilities licensee under RSA 284-A:5.

IV. “Net machine income” means all cash or other consideration utilized to play a video lottery machine, less all cash or other consideration paid to players of video lottery machines as winnings.

V. “Operator applicant” means the applicant for an operator’s license.

VI. “Operator’s license” means the license issued by the pari-mutuel commission under RSA 284-A:6.

VII. “Operator licensee” means an entity in possession of an operator’s license.

VIII. “Pari-mutuel commission” means the New Hampshire pari-mutuel commission as established in RSA 284:6-a.

IX. “Pari-mutuel licensee” means an entity licensed under RSA 284:15 and authorized as of January 1, 2004.

X. “Pari-mutuel licensee location” means the facility at which the pari-mutuel licensee is located and where the pari-mutuel licensee conducts live horse racing or live dog racing as of January 1, 2005 for at least the number of days as required in RSA 284:22-a, II (a)(3) and any real estate in which the pari-mutuel licensee has an interest as of January 1, 2005 which is adjacent to the real estate on which the pari-mutuel licensee conducts live horse racing or live dog racing.

XI. “Lottery commission” means the New Hampshire lottery commission as established by RSA 284:21-a.

XII. “Technology provider” means any person or entity that designs, manufactures, installs, distributes, or supplies video lottery machines for sale or lease to the lottery commission, and which are for use by an operator licensee for conducting video lottery games in accordance with this chapter.

XIII. “Token” means the coin, which is not legal tender, sold by a cashier in a face amount equal to the cash paid by a player for the sole purpose of playing a video lottery machine at a pari-mutuel licensee location or a facilities licensee location or paid to a player of a video lottery machine, which can be exchanged for cash at the pari-mutuel licensee location, or the facilities licensee location.

XIV. “Video lottery machines” means an electronic, mechanical, or computerized machine which, upon the insertion of cash or tokens is available to be played where, by chance or skill, or both, the player may receive cash or tokens. Video lottery machines include, but are not limited to, slot machines, video poker machines, and other lottery machines. Video lottery machines do not include any redemption slot machines and redemption poker machines as defined in RSA 647 or video poker machines or other similar machines used for amusement purposes only.

284-A:2 Authorization for Video Lottery Games of Chance.

I. A pari-mutuel licensee or a facilities licensee shall be authorized to install, operate, and conduct video lottery games of chance at its pari-mutuel licensee location or facilities licensee location, in accordance with the provisions of this chapter.

II. A pari-mutuel licensee or facilities licensee may enter into one or more agreements with an operator licensee to manage or participate in the operation of video lottery games of chance at its pari-mutuel licensee location or a facilities licensee location.

III.(a) There is established a electronic gaming area known as the north country tourist gaming area which shall include all of the municipalities and unincorporated towns of Coos county.

(b) The pari-mutuel commission shall issue not more than 3 facilities licenses for the north country tourist gaming area established in paragraph I, provided there are eligible applicants for such licenses.

284-A:3 Licenses, Number of Video Lottery Machines.

I. No person shall engage in the ownership, possession, transfer, maintenance, repair, or operation of a video lottery machine unless:

(a) Such person is licensed in accordance with the provisions of this chapter.

(b) Local approval as provided in RSA 284-A:11 has been obtained.

II. Any operator, employee of an operator, or technology provider shall be licensed by the pari-mutuel commission prior to engaging in any activity authorized by this chapter.

III. Each pari-mutuel licensee at a pari-mutuel licensee location at which live dog racing is conducted shall be limited to 900 video lottery machines in operation at each such pari-mutuel licensee location.

IV. Each pari-mutuel licensee at a pari-mutuel licensee location at which live horse racing is conducted shall be limited to 1,200 video lottery machines in operation at each such pari-mutuel licensee location.

V. Each facilities licensee at a facilities licensee location shall be limited to 600 video lottery machines.

VI. The pari-mutuel commission shall consider the following factors prior to issuing a facilities license to a facilities applicant:

(a) Evidence that the applicant has received any required local approval.

(b) Regional location of the prospective facilities licensee.

(c) A detailed economic plan, filed with the pari-mutuel commission, for the municipality and the surrounding region where the prospective facilities licensee is located with supporting documentation to explain the following:

(1) Unemployment in the area.

(2) Direct and indirect employment gain.

(3) Effect on the tourism based economy.

(4) Effect on regional economic development.

(5) Tourist trends.

(d) A business plan, filed with the pari-mutuel commission, to support video lottery machines.

(e) Qualifications of those persons who own or manage the prospective facilities licensee facility.

(f) Regional population.

(g) Vehicle traffic.

(h) Total square footage of the facility and total acreage of the facility.

(i) Availability of suitable infrastructure.

(j) Availability of adequate parking.

(k) Other information that the pari-mutuel commission may require.

284-A:4 Application Procedure.

I. A pari-mutuel licensee or facilities licensee shall obtain an operator’s license from the pari-mutuel commission. In the event that a pari-mutuel licensee or a facilities licensee enters into an agreement with another entity to manage and operate video lottery machines, that entity shall make application as the operator licensee applicant. An applicant shall complete and sign an application on the forms prescribed by the pari-mutuel commission. The application shall include the full name, residence, date of birth, and other personal identifying information of the applicant, and if a corporation or other form of business entity, the same information shall be provided with respect to each partner, trustee, officer, director, and any shareholder or other holder who owns more than 10 percent of the legal or beneficial interests of such entity.

II. When the pari-mutuel commission receives an application, it shall refer it to the attorney general who shall conduct an investigation. The investigation may be conducted through any appropriate state or federal law enforcement system and may seek information as to the applicant’s financial, criminal, or business background, or any other information which the attorney general, in his or her sole discretion, may find pertinent to the applicant’s fitness to be associated with the ownership or management of the operation of video lottery machines in New Hampshire, including, but not limited to, the applicant’s character, personal associations, and the extent to which the applicant is properly doing business in the manner in which it purports to operate. The attorney general shall report the results of the investigation to the pari-mutuel commission within 90 days. Notwithstanding any other law to the contrary, the results of any such investigation shall be confidential and shall not be subject to disclosure or to public inspection, except that the attorney general, in the attorney general’s sole discretion, shall determine the extent to which and the manner in which said results may be reported to the pari-mutuel commission or other state agency or official and, if reported, whether such results are to retain their confidential character; provided, however, that whenever the attorney general conducts such an investigation, the attorney general shall notify the pari-mutuel commission whether or not in his or her opinion such person is fit to be associated with the ownership or management of the operation of video lottery machines in this state. The attorney general shall have the authority to conduct an investigation on the attorney general’s initiative into the background of the license applicant or holder, or any person or entity upon whom the license applicant or holder relies for financial support.

III. In any investigation conducted pursuant to paragraph II, the attorney general may require by subpoena or otherwise the attendance of witnesses and the production of such correspondence, documents, books, and papers as he or she deems necessary, and for purposes of this section, may administer oaths and take the testimony of witnesses.

IV.(a) The pari-mutuel commission shall charge the applicant an application fee of $100,000 which shall be used to defray the cost of processing the application. If the cost of processing the application exceeds $100,000, the applicant shall pay the additional cost. In the event that a pari-mutuel licensee or a facilities licensee makes an agreement pursuant to RSA 284-A:2, II and the operator applicant applies for the operator’s license, then the aggregate amount of the fee shall be the greater of $100,000 or the actual costs incurred by the pari-mutuel commission.

(b) The attorney general shall charge the applicant an investigation fee of $50,000 which shall be used to defray the cost of the background investigation. If the cost of the background investigation exceeds $50,000, the applicant shall pay the additional cost. In the event that a pari-mutuel licensee or a facilities licensee makes an agreement pursuant to RSA 284-A:2, II and that the operator applicant applies for the operator’s license, then the aggregate amount of the fee shall be the greater of $50,000 or the actual costs of the attorney general.

(c) The pari-mutuel commission shall charge a fee of $10,000 to renew a license to a pari-mutuel licensee, a facilities licensee, or an operator’s licensee provided, however, such person seeking renewal of its license shall pay all costs incurred by the attorney general to conduct an investigation with regard to such application to renew the operator’s license.

284-A:5 Facilities Licensure Requirements.

I. No facilities license shall be issued by the pari-mutuel commission unless the applicant has proven to the satisfaction of the pari-mutuel commission by clear and convincing evidence:

(a) Its financial stability, integrity and responsibility, considering, without limitation, bank references, business and personal income and disbursement schedules, tax returns and other reports filed with governmental agencies, and business and personal accounting and check records and ledgers.

(b) The trustworthiness of all financial backers, investors, mortgagees, bondholders, and holders of indentures, notes and other evidences of indebtedness of the applicant.

(c) Its good character, honesty and integrity, considering, without limitation, information pertaining to family, habits, character, reputation, criminal and arrest record, business activities, financial affairs, and business, professional and personal associates, covering at least the 10-year period immediately preceding the filing of the application.

(d) Its business ability and experience in the operation of video lottery machines, as appropriate, so as to establish the likelihood of a successful and efficient operation.

II.(a) No facilities license shall be issued by the pari-mutuel commission to any applicant unless the applicant has proven to the satisfaction of the pari-mutuel commission by clear and convincing evidence that each director, officer or similar principal employee and each direct or indirect owner satisfies the standards for licensure contained in this section.

(b) The pari-mutuel commission may, in its discretion, waive the qualification requirement for any such person who is not significantly involved in the activities of the applicant, does not have the ability to significantly influence or control the applicant, or for other good cause.

(c) Except as provided in subparagraph (d), no person who owns, directly or indirectly, legally or beneficially, 10 percent or less of the equity securities or 20 percent or less of the outstanding debt securities of a publicly traded holding company of an applicant for a facilities license shall be required to be qualified pursuant to the provisions of this section prior to the issuance of such a license to the applicant.

(d) If a facilities licensee has 25 or fewer holders of its equity securities, either directly or indirectly, legally or beneficially, then each such holder shall satisfy the standards of this section.

III. No facilities licensee employee license shall be issued by the pari-mutuel commission unless the applicant has proven to the satisfaction of the pari-mutuel commission by clear and convincing evidence that such person satisfies the standards contained in this section.

IV. All information and data required by the pari-mutuel commission, the lottery commission, or division of gaming enforcement to be furnished pursuant to this chapter, or which may otherwise be obtained by the pari-mutuel commission, the lottery commission, or the division of gaming enforcement in the performance of their duties under this chapter, except information regarding net machine income, shall be considered to be confidential and shall not be revealed in whole or in part except in the course of the necessary administration of this chapter, upon lawful order of a court of competent jurisdiction, or with the approval of the commissioner of safety, to a duly authorized law enforcement agency.

V. The pari-mutuel commission shall charge an application fee to the facilities applicant of $50,000 which shall be used to defray the cost of processing the video lottery games of chance employee licensing for all of the facilities applicant’s employees required to be licensed. If the cost of processing the application exceeds $50,000 for the video lottery games of chance employee licensing, the operator applicant shall pay the difference.

284-A:6 Operator’s Licensure Requirements.

I. No operator’s license shall be issued by the pari-mutuel commission unless the applicant has proven to the satisfaction of the pari-mutuel commission by clear and convincing evidence:

(a) Its financial stability, integrity and responsibility, considering, without limitation, bank references, business and personal income and disbursement schedules, tax returns and other reports filed with governmental agencies, and business and personal accounting and check records and ledgers.

(b) The trustworthiness of all financial backers, investors, mortgagees, bondholders, and holders of indentures, notes and other evidences of indebtedness of the applicant.

(c) Its good character, honesty and integrity, considering, without limitation, information pertaining to family, habits, character, reputation, criminal and arrest record, business activities, financial affairs, and business, professional and personal associates, covering at least the 10-year period immediately preceding the filing of the application.

(d) Its business ability and experience in the operation of video lottery machines, as appropriate, so as to establish the likelihood of a successful and efficient operation.

II.(a) No operator’s license shall be issued by the pari-mutuel commission to any applicant unless the applicant has proven to the satisfaction of the pari-mutuel commission by clear and convincing evidence that each director, officer or similar principal employee and each direct or indirect owner satisfies the standards for licensure contained in this section.

(b) The pari-mutuel commission may, in its discretion, waive the qualification requirement for any such person who is not significantly involved in the activities of the applicant, does not have the ability to significantly influence or control the applicant, or for other good cause.

(c) Except as provided in subparagraph (d), no person who owns, directly or indirectly, legally or beneficially, 10 percent or less of the equity securities or 20 percent or less of the outstanding debt securities of a publicly traded holding company of an applicant for an operator’s license shall be required to be qualified pursuant to the provisions of this section prior to the issuance of such a license to the applicant.

(d) If an operator licensee has 25 or fewer holders of its equity securities, either directly or indirectly, legally or beneficially, then each such holder shall satisfy the standards of this section.

III. No operator’s license shall be issued by the pari-mutuel commission unless the applicant has demonstrated to the satisfaction of the pari-mutuel commission by clear and convincing evidence that it satisfies the standards contained in this section.

IV. No operator’s licensee employee license shall be issued by the pari-mutuel commission unless the applicant has proven to the satisfaction of the pari-mutuel commission by clear and convincing evidence that such person satisfies the standards contained in this section.

V. All information and data required by the pari-mutuel commission, the lottery commission, or division of gaming enforcement to be furnished pursuant to this chapter, or which may otherwise be obtained by the pari-mutuel commission, the lottery commission, or division of gaming enforcement in the performance of their duties under this chapter, except information regarding net machine income, shall be considered to be confidential and shall not be revealed in whole or on part except in the course of the necessary administration of this chapter, upon lawful order of a court of competent jurisdiction, or with the approval of the commissioner of safety, to a duly authorized law enforcement agency.

VI. The pari-mutuel commission shall charge an application fee to the operator applicant of $50,000 which shall be used to defray the cost of processing the video lottery games of chance employee licensing for all of the operator applicant’s employees required to be licensed. If the cost of processing the application exceeds $50,000 for the video lottery games of chance employee licensing, the operator applicant shall pay the difference.

284-A:7 Technology Provider’s Licensure Requirements.

I. No technology provider’s license shall be issued by the pari-mutuel commission unless the applicant has proven to the satisfaction of the pari-mutuel commission by clear and convincing evidence:

(a) Its financial stability, integrity and responsibility, considering, without limitation, bank references, business and personal income and disbursement schedules, tax returns and other reports filed with governmental agencies, and business and personal accounting and check records and ledgers.

(b) The trustworthiness of all financial backers, investors, mortgagees, bondholders, and holders of indentures, notes and other evidences of indebtedness of the applicant.

(c) Its good character, honesty and integrity, considering, without limitation, information pertaining to family, habits, character, reputation, criminal and arrest record, business activities, financial affairs, and business, professional and personal associates, covering at least the 10-year period immediately preceding the filing of the application.

(d) Its business ability and experience in the operation of video lottery machines, as appropriate, so as to establish the likelihood of a successful and efficient operation.

II.(a) No technology provider’s license shall be issued by the pari-mutuel commission to any applicant unless the applicant has proven to the satisfaction of the pari-mutuel commission by clear and convincing evidence that each director, officer or similar principal employee and each direct or indirect owner satisfies the standards for licensure contained in this section.

(b) The pari-mutuel commission may, in its discretion, waive the qualification requirement for any such person who is not significantly involved in the activities of the applicant, does not have the ability to significantly influence or control the applicant, or for other good cause.

(c) Except as provided in subparagraph (d), no person who owns, directly or indirectly, legally or beneficially, 10 percent or less of the equity securities or 20 percent or less of the outstanding debt securities of a publicly traded holding company of an applicant for an technology provider’s license shall be required to be qualified pursuant to the provisions of this section prior to the issuance of such a license to the applicant.

(d) If an technology provider licensee has 25 or fewer holders of its equity securities, either directly or indirectly, legally or beneficially, then each such holder shall satisfy the standards of this section.

III. No technology provider’s license shall be issued by the pari-mutuel commission unless the applicant has demonstrated to the satisfaction of the pari-mutuel commission by clear and convincing evidence that it satisfies the standards contained in this section.

IV. No technology provider’s licensee employee license shall be issued by the pari-mutuel commission unless the applicant has proven to the satisfaction of the pari-mutuel commission by clear and convincing evidence that such person satisfies the standards contained in this section.

V. All information and data required by the pari-mutuel commission, the lottery commission, or division of gaming enforcement to be furnished pursuant to this chapter, or which may otherwise be obtained by the pari-mutuel commission, the lottery commission, or division of gaming enforcement in the performance of their duties under this chapter, except information regarding net machine income, shall be considered to be confidential and shall not be revealed in whole or on part except in the course of the necessary administration of this chapter, upon lawful order of a court of competent jurisdiction, or with the approval of the commissioner of safety, to a duly authorized law enforcement agency.

VI. The pari-mutuel commission shall charge an application fee to the technology provider applicant of $50,000 which shall be used to defray the cost of processing the technology provider’s employee licensing for all of the technology provider’s applicant employees required to be licensed. If the cost of processing the application exceeds $50,000 for the video lottery games of chance employee licensing, the technology provider applicant shall pay the additional cost.

284-A:8 Exclusion of Minors.

I. No person under 21 years of age shall play a video lottery machine authorized by this chapter.

II. No pari-mutuel licensee, facilities licensee, or its respective operator licensee shall knowingly permit any person less than 21 years of age to play or participate in any aspect of the play of a video lottery machine.

III. Each violation of this section shall be punishable by a fine of no more than $20,000 and shall be payable by such person who violates paragraph I.

IV. Each violation of this section shall be punishable by a fine of no more than $20,000 and shall be payable by the pari-mutuel licensee or its operator licensee that is found to have violated paragraph II. In the event that a pari-mutuel licensee, a facilities licensee, or its respective operator licensee has 3 or more violations under paragraph II within a calendar year, the license held by the pari-mutuel licensee, a facilities licensee, or its respective operator licensee shall be subject to suspension for a period to be determined by the pari-mutuel commission.

284-A:9 Distribution of Net Machine Income for Pari-Mutuel Licensees.

I. Net machine income generated by pari-mutuel licensees shall be distributed as follows:

(a) Fifty-two percent of the average daily net machine income generated by video lottery machines in each week shall be paid to the state from which the state shall pay for the costs of regulation and administration; the acquisition and operation of the central computer system; and the payments due technology providers; and the balance shall be deposited in the general fund of the state from which:

(1) The sum of $5,000,000 per fiscal year shall be deposited in the treatment and prevention fund for abusers of alcohol, drugs, and gambling under RSA 172:9-a.

(2) The sum of $400,000,000 per fiscal year shall be deposited in the education trust fund established in RSA 198:39.

(b) Two percent of the average daily net machine income from video lottery machines in each calendar month shall be paid to the municipality in which the operator licensee operates video lottery machines.

(c) Four percent of the average daily net machine income generated from video lottery machines in each calendar month shall be paid to the pari-mutuel commission and shall be disbursed as follows:

(1) A sum not to exceed 5 percent of the fund shall be distributed by the pari-mutuel commission to support a New Hampshire horse breeding fund, as established in the office of the state treasurer. The pari-mutuel commission shall adopt rules under RSA 541-A to implement this subparagraph.

(2) A sum not to exceed 3 percent shall be allocated to the county where the pari-mutuel licensee is located for the purpose of economic development.

(3) A sum not to exceed one percent of the fund shall be used by the pari-mutuel commission to establish a greyhound adoption fund administered by the pari-mutuel commission in the office of the state treasurer. The pari-mutuel commission shall adopt rules pursuant to RSA 541-A for the establishment and administration of the greyhound adoption fund.

(4) The balance of the funds shall be used by the pari-mutuel commission for the purpose of enhancing live racing purses at the pari-mutuel licensee locations. The pari-mutuel commission shall adopt rules under RSA 541-A to implement this subparagraph.

(d) Forty-two percent of the average daily net machine income from video lottery machines in each calendar month shall be retained by the pari-mutuel licensee and its operator licensee.

II. Subject to reconciliation at the end of each calendar month, all distributions to the state, the pari-mutuel commission, the state treasurer, and the municipality shall be made by the pari-mutuel licensee and its operator licensee within 5 business days after the end of each week in which net machine income is generated. The operator licensee shall pay a fine equal to the greater of $50 for each day in which such payments are overdue in whole or in part or interest on the unpaid amount with interest calculated at the annual rate of 10 percent for each day for which the payment due is late. The fine shall be paid by the operator licensee to the lottery commission. Notwithstanding the foregoing, the fine imposed in this paragraph shall not limit the pari-mutuel commission from imposing further sanctions if the lottery commission determines that an operator licensee habitually violates this section.

284-A:10 Distribution of Net Machine Income for Facilities Licensees.

I. Net machine income generated by facilities licensees shall be distributed as follows:

(a) Fifty-two percent of the average daily net machine income generated by video lottery machines in each week shall be paid to the state from which the state shall pay for the cost of regulation and administration; the acquisition and operation of the central computer system; and the payments due technology providers; and the balance shall be deposited in the general fund of the state from which:

(1) The sum of $5,000,000 per fiscal year shall be deposited in the treatment and prevention fund for abusers of alcohol, drugs, and gambling under RSA 172:9-a.

(2) The sum of $400,000,000 per fiscal year shall be deposited in the education trust fund established in RSA 198:39.

(b) Two and one-half percent of the average daily net income from video lottery machines in each calendar month shall be paid to the municipality in which the operator licensee operates video lottery machines.

(c) Two and one-half percent of the average daily net machine income generated from video lottery machines in each calendar month shall be paid to Coos county for the purpose of economic development.

(d) One and one-half percent of the average daily net machine income from video lottery machines generated in each calendar month shall be paid to the state treasurer to be used by the department of resources and economic development for purposes as determined by the commissioner of the department of resources and economic development.

(e) Forty-two percent of the average daily net machine income from video lottery machines in each calendar month shall be retained by the facilities licensee and its operator licensee.

(f) In the event of insufficient revenue from video lottery gaming, generated revenues shall be disbursed as follows, in descending order of priority:

(1) State and video lottery gaming administrative costs, including municipal payments, Coos county payment, and payments to the department of resources and economic development.

(2) Adequate education grant contributions.

(3) Department of education costs to audit annual school expenditure reports.

(4) Department of education costs to provide schools with instructional materials to assist in preparing annual school expenditure reports.

(5) The treatment and prevention fund for abusers of alcohol, drugs, and gambling established in RSA 172:9-a.

II. Subject to reconciliation at the end of each calendar month, all distributions to the state, Coos county, and the municipality shall be made by the facilities licensee and its operator licensee within 5 business days after the end of each week in which net machine income is generated. The operator licensee shall pay a fine equal to the greater of $50 for each day in which such payments are overdue in whole or in part or interest on the unpaid amount with interest calculated at the annual rate of 10 percent for each day for which the payment due is late. The late payment penalty shall be paid by the operator licensee to the lottery commission. Notwithstanding the foregoing, the fine imposed in this paragraph shall not limit the pari-mutuel commission from imposing further sanctions if the lottery commission determines that an operator licensee habitually violates this section.

284-A:11 Procedures for Adoption by Local Community.

I. Any town or city in which a pari-mutuel licensee location or facilities licensee location is situated may adopt the provisions of RSA 284-A, to allow the operation of video lottery machines, in the following manner:

(a) In a town, other than a town that has adopted a charter pursuant to RSA 49-D, the questions shall be placed on the warrant of an annual or special town meeting, by the governing body or by petition pursuant to RSA 39:3.

(b) In a city or town that has adopted a charter pursuant to RSA 49-C or RSA 49-D, the legislative body may consider an 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.

284-A:12 Inspection of Video Lottery Machines; Penalty for Tampering or Manipulating.

I. The lottery commission shall, from time to time, test video lottery machines installed at a pari-mutuel licensee location or facilities licensee location. In conducting such tests, the lottery commission shall use the services of an independent laboratory. The cost of services by the independent laboratory shall be paid by the technology provider.

II. Any person who, with the intent to manipulate the outcome, payoff, or operation of a video lottery machine, manipulates the outcome, payoff, or operation of any video lottery machine by physical, electronic, or mechanical means, shall be guilty of a felony.

284-A:13 Video Lottery Machines.

I. Each operator licensee shall provide to the pari-mutuel commission and the lottery commission by diagram, a description of:

(a) The location of each video lottery machine available for play by the public.

(b) The location of all areas for the storage, maintenance, or repair of video lottery machines.

(c) A description of all security measures to be taken for the safeguarding of video lottery machines.

(d) The location and security measures taken for the safeguarding of all moneys, tokens, or other items of value utilized in the use of video lottery machines.

(e) All procedures for the operation, maintenance, repair, and inserting or removing of moneys, tokens, or other items of value from video lottery machines.

(f) All of the above shall be approved by the pari-mutuel commission prior to commencing the operation of any video lottery machines.

II. No video lottery machine shall be possessed, maintained, exhibited, brought into, or removed from a pari-mutuel licensee location or a facilities licensee location, by any person unless such machine has permanently affixed to it an identification number or symbol authorized by the pari-mutuel commission and prior notice of any such movement has been given to the lottery commission.

III. Each operator licensee shall maintain secure facilities for the counting and storage of all moneys, tokens, or other items of value utilized in the conduct of video lottery machines.

IV. All drop boxes and other devices where moneys, tokens, or other items of value are deposited in video lottery machines and all areas in which such boxes and devices are kept while in use shall be equipped with 2 locking devices, one key which shall be under the exclusive control of the lottery commission and the other under the exclusive control of the operator licensee. The drop boxes and other devices shall not be brought into the pari-mutuel licensee location or facilities licensee location or removed from an electronic games of chance machine, locked or unlocked, except at such times and such places and according to such procedures as the lottery commission may require to safeguard such boxes and devices and their contents.

V. No video lottery machine shall be used to conduct gaming unless it is identical in all electrical, mechanical, and other aspects to a model which has been specifically tested by the lottery commission and licensed for use by the lottery commission.

VI. The lottery commission shall establish technical standards for approval of video lottery machines, including mechanical and electrical reliability and security against tampering, as it may deem necessary to protect the public from fraud or deception and to ensure the integrity of their operation.

VII. All video lottery machines in operation at a pari-mutuel licensee location or facilities licensee location shall provide a pay off of an average of at least 87 percent annually.

VIII. All tickets given as prizes or winnings from video lottery machines shall be redeemed for cash within one year after the date of winning. After the expiration of that one year, all such unredeemed tickets shall become property of the state of New Hampshire, notwithstanding any other law to the contrary.

IX. An operator licensee who operates video lottery machines shall not be restricted in the days of operation of such machines. The hours of operation on each day shall be determined by the pari-mutuel commission.

X. The lottery commission shall negotiate and execute agreements with at least 3 technology providers in accordance with reasonable business terms subject to the provisions of RSA 284:21-w, I(f). Each operator licensee shall obtain video lottery machines from such technology providers and no others, provided, that no operator licensee shall obtain more than 50 percent of its video lottery machines from any one such technology provider.

XI. Video lottery machines shall be operated only at times when the public is allowed access to the locations. They shall not be operated during private functions. No automatic teller machines shall be located within 150 feet of video lottery machines.

284-A:14 Term of License.

I. Any operator’s license, facilities licensee, or technology provider’s license issued pursuant to this chapter and any renewal thereof shall be valid for 2 years unless earlier suspended or revoked by the pari-mutuel commission.

II. Any video lottery employee licensee or renewal thereof issued pursuant to this chapter shall be valid for 3 years unless earlier suspended or revoked by the pari-mutuel commission.

284-A:15 Presence of the Pari-Mutuel Commission and Lottery Commission.

I. The pari-mutuel commission may be present at any pari-mutuel licensee location or facilities licensee location at which video lottery machines are operated at all times when the facility is open to the public. The operator licensee may be required by the pari-mutuel commission or division of gaming enforcement, department of safety to provide such office space and equipment which the pari-mutuel commission shall by rule determine is reasonably necessary or proper for them to fulfill their responsibilities.

II. The lottery commission may be present at any time a video lottery machine is opened to remove or insert any drop box, hopper, or other mechanism containing money, tokens, or other items of value. The lottery commission may be present in the count room at any time money, tokens or other items of value utilized in video lottery machines are counted.

284-A:16 Sanction Powers of the Pari-Mutuel Commission.

I. The pari-mutuel commission shall have the sole and exclusive authority, following appropriate hearings and factual determinations, to impose sanctions against any person for any violation of this chapter or any rule of the pari-mutuel commission, the lottery commission, or the pari-mutuel commission adopted under the provisions of this chapter.

II. The pari-mutuel commission shall have the authority to impose sanctions upon any person for any violation of this chapter or the rules of the pari-mutuel commission or the lottery commission as follows:

(a) Revocation or suspension of a license.

(b) Civil penalties as may be necessary to punish misconduct and to deter future violations, which penalties may not exceed $50,000 for each violation.

(c) Order restitution of any moneys or property unlawfully obtained or retained by a person.

(d) Issue a cease and desist order which specifies the conduct which is to be discontinued, altered, or implemented by the person.

(e) Issue letters of reprimand or censure, which letters shall be made a permanent part of the file of each person so sanctioned.

(f) Impose any or all of the foregoing sanctions in combination with each other.

III. In determining appropriate sanctions in a particular case, the pari-mutuel commission shall consider:

(a) The risk to the public and to the integrity of video lottery machine operations created by the conduct of the person.

(b) The seriousness of the conduct of the person and whether the conduct was purposeful or with knowledge that it was in contravention of the provisions of this chapter or the rules of the pari-mutuel commission or the lottery commission.

(c) Any justification or excuse for such conduct.

(d) The prior history of the person involved.

(e) The corrective action taken by the person to prevent future misconduct of a like nature from occurring.

(f) In the case of a monetary penalty, the amount of the penalty in relation to the of the misconduct and the financial means of the person.

(g) Notwithstanding the foregoing, in the event that a person receives 3 civil penalties during the term of such person’s license, the pari-mutuel commission shall either revoke the license for the balance of the term of the license or suspend such license for a period of time, as determined by the pari-mutuel commission.

284-A:17 Declaration of Limited Exemption from Operation of Provisions of 15 U.S.C. section 1171-1172. 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 that 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:18 Legal Shipment of Gaming Devices into New Hampshire. All shipments into this state of gaming devices, 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 1171-1172, shall be deemed legal shipments into this state.

284-A:19 Effect on Other Laws. This chapter shall take precedence over any other law, rule, ordinance, or regulation of the state or its political subdivisions to the contrary.

11 New Paragraphs; Duties; Pari-mutuel commission. Amend RSA 284:6-a by inserting after paragraph IV the following new paragraphs:

V. The pari-mutuel commission shall:

(a) Hear and decide all license applications or recommendations for the suspension or revocation of any license issued under this chapter.

(b) Conduct all investigations required under this chapter with regard to the application of any applicant for any license.

(c) Conduct hearings pertaining to civil violations of this chapter or rules under the provisions of this chapter and collecting all penalties under the provisions of this chapter.

(d) Establish standards and a reasonable fee structure for the licensing and renewal of licenses for employees and operators, technology providers, and operator licensees.

(e) Collect all license fees imposed upon any applicant and all taxes imposed by RSA 284-A.

(f) Establish standards for licensing under RSA 284-A:5

(g) Establish standards for reviewing any structure at a pari-mutuel licensee location or facilities licensee location.

(h) Maintain records and the release of records or information from those records, to persons or entities outside of the pari-mutuel commission, and the method and procedure to notify the owners of such information concerning the release.

VI. The pari-mutuel commission shall have the authority to issue subpoenas and compel the attendance of witnesses, to administer oaths, and require testimony of witnesses under oath.

VII. No later than November 1 in each calendar year, the pari-mutuel commission shall provide a report to the fiscal committee of the general court, regarding the operation of video lottery machines. Such report shall include any recommendations for legislation.

VIII. With regard to minutes and records of the pari-mutuel commission:

(a) The pari-mutuel commission shall cause to be made and kept a record of all proceedings of public meetings of the pari-mutuel commission.

(b) The pari-mutuel commission shall keep and maintain a list of all applicants for licenses it receives under RSA 284-A together with a record of all actions taken with respect to such applicants. A file and record of the actions by the pari-mutuel commission shall be open to public inspection provided, however, that the information regarding any applicant whose license or registration has been denied, revoked, or not renewed shall be removed from such list after 5 years from the date of such action.

(c) The pari-mutuel commission shall maintain such other files and records as the pari-mutuel commission determines is necessary. All records maintained by the pari-mutuel commission may be maintained in digital or other format provided that such information can be produced in written form upon the request of the pari-mutuel commission.

(d) All information and data required by the pari-mutuel commission to be furnished to it, or which may otherwise be obtained, shall be considered to be confidential and shall not be revealed in whole or in part except in the course of the necessary administration of this chapter, or upon the lawful order of a court of competent jurisdiction, or, with the approval of the attorney general, to a duly authorized law enforcement agency.

(e) All information and data pertaining to an applicant’s criminal record, family, and background furnished to or obtained by the pari-mutuel commission from any source shall be considered confidential and shall be withheld in whole or in part. Such information shall be released upon the lawful order of a court of competent jurisdiction or to a duly authorized law enforcement agency.

(f) Notice of the contents of any information or data released, except to a duly authorized law enforcement agency pursuant to subparagraph (d) or (e), shall be given to any applicant, registrant, or licensee in a manner prescribed by the rules adopted by the pari-mutuel commission.

IX. The pari-mutuel commission shall from time to time contract for and procure on a fee or independent contracting basis such financial, economic, or security consultants and any other technical and professional services as the authority deems necessary for the discharge of its duties.

16 New Paragraphs; Rulemaking; Pari-mutuel commission. Amend RSA 284:12 by inserting after paragraph IX the following new paragraphs:

X. Hearing and deciding all license applications or recommendations for the suspension or revocation of any license issued under RSA 284-A.

XI. Conducting all investigations required under RSA 284-A.

XII. Conducting hearings pertaining to civil violations and collecting all penalties under RSA 284-A.

XIII. Establishing standards and a reasonable fee structure for the licensing and renewal of licenses for employees and operators, technology providers, and operator licensees under RSA 284-A.

XIV. Collecting all license fees imposed upon any applicant and all taxes imposed by RSA 284-A.

XV. Establishing standards for licensing under RSA 284-A:5

XVI. Establishing standards for reviewing any structure at a pari-mutuel licensee location or facilities licensee location.

XVII. Maintenance of records and the release of records or information from those records, to persons or entities outside of the pari-mutuel commission, and the method and procedure to notify the owners of such information concerning the release.

XVIII. Regarding the keeping of minutes and records.

XIX. Contracting for services under RSA 284-A.

17 New Section; Lottery Commission Duties. Amend RSA 284 by inserting after section 21-v the following new section:

284:21-w Video Lottery; Duties of the Lottery Commission.

I. The lottery commission shall:

(a) Hear and make recommendations promptly to the pari-mutuel commission and in reasonable order on all license applications for technology providers.

(b) Certify net machine income by inspecting records, conducting audits, having its agents on site, or by any other reasonable means.

(c) Establish a central computer system located at the office of the lottery commission linking all video lottery machines to insure control over video lottery machines. The lottery commission shall establish a bid procedure for such contracts.

(d) Enter into purchase or lease agreements with technology providers to provide video lottery machines to operation licensees. These purchase or lease agreements shall provide that each technology provider shall supply the quantity and quality of video lottery machines as determined by an operator licensee in a timely and efficient manner. Each agreement shall also provide that the technology provider shall provide all maintenance and service of its video lottery machines at no additional charge or fee to the state or the operator licensee.

(e) Establish technical standards for approval of video lottery machines, including mechanical and electrical reliability and security against tampering, as it may deem necessary to protect the public from fraud or deception and to ensure the integrity of their operation.

II. The lottery commission shall have the authority to issue subpoenas and compel the attendance of witnesses, to administer oaths and to require testimony under oath.

III. No later than March 31 in each calendar year, the lottery commission shall provide a report to the pari-mutuel commission regarding the generation of revenues of video lottery machines by pari-mutuel licensees, facilities licensees, or operator licensees.

IV. With regard to minutes and records of the lottery commission:

(a) The lottery commission shall cause to be made and kept a record of all proceedings held at public meetings of the lottery commission. A verbatim transcript of those proceedings shall be prepared by the lottery commission upon the request of any commissioner or upon the request of any other person and the payment by that person of the costs of preparation. A copy of the transcript shall be made available to any person upon request and payment of the costs of preparing the copy.

(b) The lottery commission shall keep and maintain a list of all notices for licenses as technology providers under RSA 284-A, together with a record of all actions taken with respect to such applicants. A file and record of the actions by the lottery commission shall be open to public inspection; provided, however, that the information regarding any applicant whose license or registration has been denied, revoked, or not renewed shall be removed from such list after 5 years from the date of such action.

(c) The lottery commission shall maintain such other files and records as the lottery commission determines is necessary.

(d) All information and data required by the commission to be furnished to it, or which may otherwise be obtained, shall be considered to be confidential and shall not be revealed in whole or in part except in the course of the necessary administration of this chapter, or upon the lawful order of a court of competent jurisdiction, or with the approval of the attorney general, to a duly authorized law enforcement agency.

(e) All information and data pertaining to an applicant’s criminal record, family, and background furnished to or obtained by the lottery commission from any source shall be considered confidential and shall be withheld in whole or in part. Such information shall be released upon the lawful order of a court of competent jurisdiction, or with the approval of the attorney general, to a duly authorized law enforcement agency.

(f) Notice of the contents of any information or data released, except to a duly authorized law enforcement agency pursuant to subparagraph (d) or (e), shall be given to any applicant, registrant, or licensee in a manner prescribed by the rules adopted by the lottery commission.

(g) All records, information, or data maintained or kept by the lottery commission shall be maintained or kept at the office of the pari-mutuel commission.

18 New Paragraphs; Lottery Commission; Rulemaking. Amend RSA 284:21-i by inserting after paragraph V the following new paragraphs:

VI. The lottery commission shall adopt rules under RSA 541-A relative to RSA 284-A, including:

(a) The procedure for making recommendations to the pari-mutuel commission for technology providers applicants.

(b) Methods and procedures for certifying net machine income by inspecting records, conducting audits, having its agents on site, or by any other reasonable means.

(c) Establishing criteria linking all video lottery machines and the bid procedure for such contracts.

(d) Criteria for entering into purchase or lease agreements with technology providers to provide video lottery machines to operation licensees.

(e) Establishing technical standards for video lottery machines.

(f) Regarding the keeping of minutes and records.

19 New Sections; Department of Safety; Gaming Enforcement Division Established. Amend RSA 21-P by inserting after section 11-a the following new sections:

21-P:11-b Division of Gaming Enforcement.

I. There is established within the department a division of gaming enforcement under the supervision of the commissioner of safety. The division shall be authorized to:

(a) Investigate violations of RSA 284 or RSA 284-A and the rules adopted under the provisions of RSA 284 or RSA 284-A and initiate proceedings before the pari-mutuel commission for such violations.

(b) Report the results of any investigation conducted to the pari-mutuel commission or the lottery commission, as appropriate.

(c) Participate in any hearing conducted by the pari-mutuel commission or the lottery commission.

II. The commissioner of safety shall organize the division into such units as the commissioner deems necessary. The commissioner of safety may employ such personnel as the commissioner deems necessary to fulfill the responsibilities of the division.

21-P:11-c Enforcement Expenditures. Notwithstanding any other provisions of law, the governor and council with the prior approval of the fiscal committee of the general court, upon request from the commissioner of safety may authorize the transfer of general funds to the department of safety to implement and enforce RSA 21-P:11-b, RSA 284, and RSA 284-A.

20 Restriction on Gambling. RSA 284:17-c is repealed and reenacted to read as follows:

284:17-c Restriction on Gambling. Except as provided in the introductory paragraph of RSA 284:22, RSA 284:22-a, and RSA 284-A, no licensee who holds running horse races shall at the same facility hold any other kinds of races or permit any other type of gambling except harness horse races and activities licensed by the pari-mutuel commission or the lottery commission.

21 New Subparagraphs; Pari-Mutuel Licensee or Facilities Licensee; On-Sale Special Cocktail Lounge License. Amend RSA 178:22, V by inserting after subparagraph (u) the following new subparagraphs:

(v) Facilities Licensee or Operator Licensee. The commission may issue a special license to any person holding an operator’s license with respect to a facilities licensee location under the provisions of RSA 284-A, provided the facilities licensee has an existing liquor license. Such special license shall allow the sale of liquor, wine and beverages in a dining room, function room, gaming room, lounge or any other area designated by the commission, without regard to whether meals are served therein, but only during the time gaming is being conducted under RSA 284-A.

(w) Pari-mutuel licensee or operator licensee. The commission may issue a special license to a person holding a pari-mutuel license or an operator’s license at a pari-mutuel licensee location under the provisions of RSA 284-A provided the pari-mutuel licensee location has an existing liquor license. Such special license shall allow the sale of liquor, wine, and beverages within the pari-mutuel licensee location, including dining room, function room, gaming room, lounge, or any other area designated by the commission, without regard to whether meals are served therein, but only during the time gaming is being conducted under RSA 284-A.

22 New Subparagraphs; Application of Receipts. Amend RSA 6:12, I(b) by inserting after subparagraph (252) the following new subparagraphs:

(253) Moneys received under RSA 284-A:9, I(c)(1), which shall be credited to the New Hampshire thoroughbred and standardbred horse breeding program fund.

(254) Moneys received under RSA 284-A:9, I(c)(4), which shall be credited to the greyhound adoption program fund.

(255) Moneys received under RSA 172:9-a which shall be credited to the treatment and prevention fund for abusers of alcohol, drugs, and gambling.

23 New Subparagraph; Authorized Video Lottery Games of Chance Machines Not Prohibited. Amend RSA 647:2, V by inserting after subparagraph (c) the following new subparagraph:

(d) Video lottery machines authorized pursuant to RSA 284-A.

24 Treatment of Abusers of Alcohol, Drugs, and Gambling. Amend the chapter heading of RSA 172 to read as follows:

[STUDY,] TREATMENT [AND CARE] OF [INEBRIATES] ABUSERS

OF ALCOHOL, DRUGS, AND GAMBLING

25 Gambling Addiction Added. Amend RSA 172:2-a to read as follows:

172:2-a Program Established. The commissioner shall provide for the scientific care, treatment, and rehabilitation of gambling, alcohol and drug abusers, and work towards the prevention of, and assist in the control of, gambling, alcohol and drug abuse within the state through education, treatment, community organization, and research.

26 Gambling Addiction Added. Amend RSA 172:8 to read as follows:

172:8 Duties of Commissioner. The commissioner shall:

I. Study the problems presented by gambling, alcohol, and drug abuse, including methods and facilities available for the care, treatment, custody, employment, and rehabilitation of persons who are gambling addicts, inebriates, alcohol abusers, drug dependent, or drug abusers.

II. Promote meetings and programs for the discussion of gambling, alcohol, and drug dependency and abuse for the guidance and assistance of individuals, schools, courts, and other public and private agencies.

III. Conduct, promote and finance, in full or in part, studies, and other appropriate facilities dealing with the physical, psychological, and/or social aspects of gambling, alcohol, and drug abuse.

IV. Have the authority to accept or reject for examination, diagnosis, guidance, and treatment, insofar as funds and facilities permit, any resident of the state who comes to the commissioner voluntarily for advice and treatment.

V. [Repealed.]

VI. Render biennially to the governor and council a report of his activities including recommendations for improvements therein by legislation or otherwise.

VII. Coordinate community medical resources for the emergency medical care of persons suffering acute mental or physical reaction to gambling, alcohol, or drugs and of persons suffering from drug dependency.

VIII. Employ such assistants as may be necessary to carry out the purposes of this chapter, in accordance with state personnel regulations, and within available appropriations and funds.

IX. Disseminate information on the subjects of gambling, alcohol, and drug abuse for the guidance and assistance of individuals, schools, courts and other public and private agencies.

X. [Repealed.]

27 Gambling Addiction Added. Amend RSA 172:8-a to read as follows:

172:8-a Confidentiality of Client Records. No reports or records or the information contained therein on any client of the program or a certified gambling, alcohol, or drug abuse treatment facility or any client referred by the commissioner shall be discoverable by the state in any criminal prosecution. No such reports or records shall be used for other than rehabilitation, research, statistical or medical purpose, except upon the written consent of the person examined or treated. Confidentiality shall not be construed in such manner as to prevent recommendation by the commissioner to a referring court, nor shall it deny release of information through court order pursuant to appropriate federal regulations.

28 Gambling Addiction Added. Amend RSA 172:8-b to read as follows:

172:8-b Rulemaking. The commissioner shall adopt rules under RSA 541-A relative to the following:

I. The acceptance, care and treatment of gambling, alcohol, or drug dependent persons and alcohol or drug abusers who are clients of the program established under this chapter or a certified substance abuse treatment facility.

II. A fee schedule and collection of fees under RSA 172:14, IV.

III. Certification of substance abuse treatment facilities including, but not limited to:

(a) Program content;

(b) Qualifications of program staff; and

(c) Type of substance abuse treatment offered.

IV. Certification and recertification of gambling, alcohol, and drug abuse counselors including, but not limited to:

(a) Peer review of applicants.

(b) Minimum qualifications and competency.

(c) Education and continuing education.

(d) Experience required.

(e) Required knowledge of gambling, alcohol, and drug abuse counseling.

(f) Such other matters as the commissioner may deem necessary to carry out the purposes of this chapter.

V. Voluntary admissions under RSA 172:13.

29 New Section; Treatment of Abusers of Alcohol, Drugs, and Gambling. Amend RSA 172 by inserting after section 9 the following new section:

172:9-a Treatment and Prevention Fund Established. There is hereby established in the department of health and human services a treatment and prevention fund for abusers of alcohol, drugs, and gambling. The fund shall be nonlapsing and continually appropriated to the commissioner for the purposes set forth in this chapter.

30 State Aid for Educational Equality. Amend the subdivision heading immediately preceding RSA 198:38 to read as follows:

State Aid for [Educational Equality] an Adequate Education; Education Trust Fund

31 Interim Rules. In accordance with RSA 541-A:19, the pari-mutuel commission and the lottery commission shall adopt interim rules within 30 days after enactment of RSA 284-A. Such interim rules shall implement duties of the pari-mutuel commission and the lottery commission under RSA 284-A.

32 Repeal. RSA 198:46-47, relative to excess education property tax payments and related forms, are repealed.

33 Effective Date.

I. Section 11 of this act shall take effect July 1, 2009.

II. The remainder of this act shall take effect July 1, 2008.

LBAO

07-0728

Revised 04/11/07

HB 886 FISCAL NOTE

AN ACT relative to funding an adequate education.

FISCAL IMPACT:

      The Pari-Mutuel Commission, Lottery Commission, Liquor Commission, Department of Corrections, Judicial Branch, Judicial Council, Department of Health and Human Services, NH Municipal Association, Department of Revenue Administration, Department of Resources and Economic Development, Department of Education, Department of Justice, NH Association of Counties, and the Department of Safety have determined this bill will have an indeterminable fiscal impact on state, county, and local revenue and expenditures in FY 2009 and each fiscal year thereafter.

METHODOLOGY:

    The Pari-Mutuel Commission states pari-mutuel licensees include three greyhound tracks and one horse track. The Commission assumes each greyhound track will have the maximum number of video lottery machines (3 tracks x 900 machines = 2,700 machines), and the horse track will have the maximum of 1,200 machines, for a total of 3,900 machines at pari-mutuel licensee locations. The Commission assumes net revenue per machine per day will be $296, and the machines will be operated 365 days per year. Total annual net revenue from machines at pari-mutuel licensee locations is estimated at $421,356,000 (3,900 machines x $296 daily net revenue x 365 days).

    The Commission calculated the annual distribution of net machine income paid by pari-mutuel licensees as follows:

    General Fund [52%] - $219,105,120

    Host Municipality [2%] -$8,427,120

    Pari-Mutuel Commission [4%] - $16,854,240, to be distributed as follows:

                    Horse Breeding Fund [5%] - $842,712

                    Host County [3%] - $505,627

                    Greyhound Adoption Fund [1%] - $168,542

                    Live Racing Purse Enhancement [91%] - $15,337,359

    The Commission assumes three facilities licensees will have the maximum number of video lottery machines (3 locations x 600 machines = 1,800 machines). The Commission assumes net revenue per machine per day will be $296, and the machines will be operated 365 days per year. Total annual net revenue from machines at pari-mutuel licensee locations is estimated at $194,472,000 (1,800 machines x $296 daily net revenue x 365 days).

    The Commission calculated the annual distribution of net machine income paid by pari-mutuel licensees as follows:

            General Fund [52%] - $101,125,440

            Host Municipality [2.5%] - $4,861,800

            Coos County [2.5%] - $4,861,800

            Department of Resources & Economic Development [1.5%] - $2,917,080

    The Commission estimates licensing revenue as follows:

            Pari-mutuel licensees; initial license, – 4 tracks x $100,000 = $400,000

            Pari-mutuel licensees; renewals – 4 tracks x $10,000 - $40,000

            Facilities licensees; initial license – 3 locations x $100,000 = $300,000

            Facilities licensees; renewal – 3 locations x $10,000 = $30,000

            Technology providers – 3 (minimum) x $50,000 = $150,000

            Operator employee licensing – 4 tracks x $50,000 = $200,000

            Facilities employee licensing – 3 locations x $50,000 = $150,000

    The Commission assumes that additional personnel and administrative costs will be required to complete the new responsibilities established in this bill; however, the Commission cannot estimate that cost. This bill does not establish additional positions at the Pari-Mutuel Commission.

    The Lottery Commission states it will need additional personnel to conduct data verification, record inspections, and audits at all video lottery machine locations; however, the Commission cannot estimate the number of positions and the associated cost. This bill does not establish additional positions at the Lottery Commission.

    The Liquor Commission states this bill will have an indeterminable fiscal impact on the Bureau of Enforcement. The Commission states additional expenses related to this bill will include additional enforcement personnel, vehicles, and associated equipment in the areas of the state where video lottery gaming is permitted.

    The Department of Corrections states this bill establishes a felony. The Department cannot determine the number of individuals that would be found guilty of a felony under this law and therefore cannot determine the fiscal impact on expenditures. During FY 2006, the average annual cost of incarcerating an individual in the general population was $31,140 and the average annual cost to supervise an offender by the Department’s Division of Field Services was $1,174.

    The Judicial Branch states sections of this bill that could have a fiscal impact on the Branch include the proposed RSA 284-A:12, II which creates a new felony, various sections that indicate certain information held by the Pari-Mutuel Commission or Lottery Commission are confidential but can be made public by an order of a court of competent jurisdiction, and the possibility of appeals to the Supreme Court for sanctions imposed by the Pari-Mutuel Commission under the proposed RSA 284-A:16. The Branch states the total fiscal impact of this bill cannot be determined because the Branch cannot estimate the number of cases that could occur under it.

    The Judicial Council assumes that any cases arising from the enactment of this bill, for which the Indigent Defense Fund may be liable, will in the first instance be handled by the public defender or a contract attorney at a rate of $757 per felony charged. If an assigned counsel attorney must be used, the hourly rate of $60 with a fee cap of $3,000 per felony will apply. If a motion to exceed the fee cap is approved and/or “services other than counsel” are approved, these will also be chargeable to the Indigent Defense Fund. Any case where a defendant has been found guilty may also result in appeals to the Supreme Court which would have a cost implication for Indigent Defense expenditures made by the State. The Council is unable to predict the number of cases that may result from the passage of this bill, and is unable to determine the exact fiscal impact at this time.

    The Department of Health and Human Services states this bill requires $10,000,000 per fiscal year from machine and facilities licensing revenues to be deposited in the treatment and prevention fund for abusers of alcohol, drugs, and gambling. The Department states approximately $445,000 of those funds would be used to create new positions and fund related expenses to provide administrative oversight, program development and monitoring activities related to the introduction of gambling treatment and prevention programs. This bill does not establish any positions or programs. The remaining $9,555,000 would be expended on contracts with external community based agencies to increase the amount of treatment and prevention services available to abusers of alcohol, drugs, and gambling. The funds will be spent equally on prevention programs and treatment programs.

    The Municipal Association states this bill requires 2% of net machine income from pari-mutuel licensees and 2.5% of net machine income from facilities licensees to be paid to the city or town where each gaming facility is located. The Association is unable to predict the amount of revenue that would be generated by video lottery gaming and therefore cannot estimate the fiscal impact on local revenue. This bill requires approval by the municipality in which the licensee seeks to operate video lottery games. Therefore, any fiscal impact on municipal revenues or expenditures related to video lottery gaming will be incurred only if the municipality chooses to allow such activity.

    The Department of Revenue Administration and Department of Resources and Economic Development state they are unable to estimate the fiscal impact of this bill as the Departments do not have any data related to the establishment of video lottery gaming.

    The Department of Education states this bill requires $800,000,000 of the revenues from video lottery gaming to be deposited each fiscal year to the education trust fund but does not change the current education funding formula.

    The Department of Justice states it would be required to investigate all licensure applications under this bill. There is a $50,000 fee to be paid by the applicant for investigations as well as a requirement that the applicant pay any costs for investigations that exceed $50,000. Therefore, the fiscal impact of this bill as it relates to investigations will be an increase in expenditures by an indeterminable amount and an increase in revenue by an amount greater than or equal to expenditures. Further, the Department provides advice and council to the licensing agencies and will be called upon to advise those agencies regarding applications, investigations, testing of the video game machines, and hearings under this bill. The Department is unable to determine the fiscal impact on expenditures because it is unable to estimate the number of requests and hearings that may result from this bill. The Department may also incur additional costs representing licensing agencies in appeals to the Supreme Court. Because it is unknown how many such cases would be appealed to and accepted by the Supreme Court, the fiscal impact on expenditures can not be determined. The Department states this bill creates two new felony offenses. However, these offenses are typically prosecuted by county attorneys and therefore it is not expected that the new offenses would have a significant fiscal impact on the Department.

    The Association of Counties states this bill would have a fiscal impact on Coos County only. Such fiscal impact is dependent on facilities licenses issued in the North Country tourist gaming area as defined in the bill. It is not possible to determine the fiscal impact of such facilities on Coos county revenues and expenditures.

    The Department of Safety states this bill establishes a division of gaming. The Department is unable to determine the fiscal impact on expenditures of establishing such a division as it is not know how many new positions would be needed and at what salary grades. This bill does not establish any new positions. The division is to be funded through the transfer of general funds upon approval of the Fiscal Committee and Governor and Council.