CHAPTER 371
SB 310-FN – FINAL VERSION
03/06/08 0839s
16Apr2008… 1277h
15May2008… 1774h
06/04/08 2088CofC
06/05/08 2180eba
2008 SESSION
08/09
SENATE BILL 310-FN
AN ACT relative to changes to games of chance.
SPONSORS: Sen. D'Allesandro, Dist 20; Rep. F. Sullivan, Hills 12
I. Makes certain changes to the application and licensing process for game operators.
II. Creates new penalties for deviations from the pari-mutuel commission’s requirements.
III. Establishes the position of internal auditor III in the pari-mutuel commission.
IV. Gives rulemaking authority to the pari-mutuel commission regarding game operator fees and administrative orders and fines.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
03/06/08 0839s
16Apr2008… 1277h
15May2008… 1774h
06/04/08 2088CofC
06/05/08 2180eba
08-2643
08/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eight
AN ACT relative to changes to games of chance.
Be it Enacted by the Senate and House of Representatives in General Court convened:
371:1 New Paragraph; License Applications. Amend RSA 287-D:2-a by inserting after paragraph IX the following new paragraph:
X. At least 45 days prior to each game date, the charitable organization shall submit the date and location of the game of chance, if this information has not already been submitted to the pari-mutuel commission pursuant to subparagraph II(a).
371:2 New Paragraph; Games of Chance; Operation. Amend RSA 287-D:2-b by inserting after paragraph VII the following new paragraph:
VII-a. Notwithstanding any other provision of law, a member of the sponsoring charitable organization shall be present and on site at least once per day during the operation of any game of chance and shall file with the pari-mutuel commission an affidavit attesting to the member’s presence at the site during the operation of any games of chance. The sponsoring charitable organization member shall not be employed by the game operator or the employer of the game operator.
371:3 Operation of Games of Chance. Amend RSA 287-D:2-b, III-IV to read as follows:
III. No one under the age of 18 years shall be admitted to the premises on which games of chance are being conducted, except when the games are being conducted at a carnival. Proof of age shall be produced upon request of the [lottery] pari-mutuel commission. When games of chance are conducted at a carnival, persons under the age of 18 years may be admitted to the premises on which the games are being conducted when accompanied and supervised by a parent or legal guardian; but persons under the age of 18 shall not be permitted to play games of chance at a carnival.
IV. No games of chance shall be conducted prior to 11:00 a.m. on a weekday or Saturday, prior to noon on a Sunday, or after 1:00 a.m. on any day.
371:4 Licensing of Game Operators. RSA 287-D:2-c, V is repealed and reenacted to read as follows:
V. The game operator or the game operators employer shall submit a bond for each location where the game operator is conducting games of chance, conditioned upon the game operator running games of chance in conformity with this chapter and with the rules and regulations prescribed by the pari-mutuel commission, in the amount of up to $300,000 to the pari-mutuel commission with the application form.
371:5 New Paragraph; Licensing of Game Operators. Amend RSA 287-D:2-c by inserting after paragraph V the following new paragraph:
VI. In addition to the charitable organization, game operators who operate games of chance on behalf of a charitable organization shall also be held responsible for all requirements that the charitable organization is responsible for when they operate the games of chance themselves.
371:6 New Paragraphs; Games of Chance; Penalty. Amend RSA 287-D:6 by inserting after paragraph III the following new paragraphs:
IV. In addition to the provisions of paragraph I:
(a) Any person who purposely or knowingly makes a false entry in any report required under this chapter which results in a reduction of revenues due to a charitable organization shall be guilty of a class A felony.
(b) Any person who recklessly or negligently makes a false entry on any report required under this chapter which results in a reduction of revenues due to a charitable organization shall be guilty of a class A misdemeanor.
(c) Any game operator employer or game operator who fails to remit to a charitable organization all revenues due under this chapter shall be guilty of a class A felony.
V. Any game operator employer or game operator who fails to pay the charitable organization all moneys required by this chapter shall be guilty of a class B felony for any amount less than $500, and a class A felony for any amount equal to or greater than $500.
VI. Any person who violates any provision of RSA 637 in a manner that deprives the charitable organization of any moneys required by this chapter, not withstanding the penalties set forth in RSA 637:11, shall be guilty of a class B felony for any amount less than $500, and a class A felony for any amount equal to or greater than $500.
VII. In addition to any other penalty imposed under this chapter, a charitable organization which suffers a loss caused by the violation of any provision of this chapter may bring a civil action for actual damages suffered. If the court finds that the violation was committed purposefully or knowingly, it shall award enhanced compensatory damages of not less than 2 times the amount of actual damages suffered, and may award up to 3 times the amount of actual damages suffered. In any civil action, the prevailing party shall be awarded court costs and reasonable attorney’s fees. No waiver of the provisions of this paragraph shall be enforceable.
VIII. The pari-mutuel commission may issue an order requiring any person or organization to comply with this subdivision or any rule adopted hereunder, and may require such remedial measures as may be necessary.
IX. The pari-mutuel commission may impose an administrative fine scaled to reflect a violator’s prior history and the scope and severity of the violation, after notice and hearing, pursuant to rules adopted under RSA 541-A, for any violation of this subdivision, any rule adopted under this subdivision, any license issued pursuant to this chapter, or any order issued pursuant to this subdivision, or upon any person who makes or certifies to a material false statement relative to any application or report required by this subdivision. In determining the amount of a fine, the pari-mutuel commission may take into consideration all relevant circumstances, including: the degree of noncompliance, the extent of harm caused by the violation, the nature and persistence of the violation, the time and cost associated with the investigation by the state, and the economic impact of the violation on the state or the charity conducting or sponsoring the game. Any administrative fine imposed under this paragraph shall not preclude the imposition of other penalties as provided by law. Rehearings and appeals from a decision of the commission under this paragraph shall comply with RSA 541. Fines imposed by the pari-mutuel commission shall be as follows:
(a) The fine for a minor violation shall be not less than $25 and not more than $500 per violation. A minor violation shall be one where the pari-mutuel commission determines that the potential for harm to the interests of the state and the charity, as well as the integrity of charitable gaming is minor and may include, but is not limited to, a game operator, a game operator employer, charitable organization, or charitable organization member not:
(1) Wearing a properly issued badge;
(2) Posting 2 copies of the laws and rules;
(3) Having a diagram available for each table where games of chance are being played indicating the type of game being played, the bet amount, the buy-in amount, and the re-buy amounts as applicable; or
(4) Publicly displaying the name of the charitable organization.
(b) The fine for a moderate violation shall be not less than $250 and not more than $1,500 per violation. A moderate violation shall be one where the pari-mutuel commission determines that the potential for harm to the interests of the state and the charity, as well as the integrity of charitable gaming is moderate and may include, but is not limited to, a game operator, game operator employer, charitable organization, or charitable organization member:
(1) Filing a late financial report;
(2) Operating a game not specifically listed on the game schedule;
(3) Operating a game on a different date than licensed without approval of the pari-mutuel commission;
(4) Committing 3 or more minor violations within 2 years; or
(5) Knowingly operating a game of chance without a representative of the charitable organization present as specified in RSA 287-D:2-b, VII-a.
(c) The fine for a major violation shall be not less than $1,000 and not more than $5,000 per violation. A major violation shall be one where the pari-mutuel commission determines that the potential for harm to the interests of the state and the charity, as well as the integrity of charitable gaming is major and shall include, but is not limited to, a game operator, game operator employer, charitable organization, or charitable organization member:
(1) Operating a game of chance without a license;
(2) Operating a game of chance without having the personnel or officials required;
(3) Purposely operating a game of chance without a representative of the charitable organization present as specified in RSA 287-D:2-b, VII-a;
(4) Operating a game of chance with game operators who are not licensed;
(5) Failing to establish or maintain a New Hampshire bank account; or
(6) Committing 5 or more minor violations or 3 or more moderate violations within 2 years.
(d) The pari-mutuel commission may suspend any part of a fine for just cause.
X. All fines imposed by the pari-mutuel commission shall be deposited in the special fund established pursuant to RSA 284:21-j.
371:7 New Paragraph; Game Operator; Definition. Amend RSA 287-D:1 by inserting after paragraph IV the following new paragraph:
V. “Game operator” means:
(a) “Primary game operator” which means any consultant or any person other than a bona fide member of the charitable organization, involved in conducting, managing, supervising, directing, or running the games of chance; or
(b) “Secondary game operator” which means any person other than a bona fide member of the charitable organization, involved in dealing, running a roulette wheel, or handling chips.
371:8 License Fees and Specifications. RSA 287-D:2-d, III is repealed and reenacted to read as follows:
III. An applicant for a primary game operator license under RSA 287-D:2-c shall apply to the pari-mutuel commission, and if the applicant meets all other requirements of this chapter and pays the fee established by the pari-mutuel commission in rules adopted pursuant to RSA 541-A, a license shall be issued. A license issued under RSA 287-D:2-c shall expire on December 31. The pari-mutuel commission shall notify the attorney general and police chief of any city or town where games of chance are held of any applications approved. RSA 7:28-c shall not apply to game operator licensees subject to this chapter. An applicant for a secondary game operator license under RSA 287-D:2-c shall apply to the pari-mutuel commission, and if the applicant meets all other requirements of this chapter and pays the fee established by the pari-mutuel commission in rules adopted pursuant to RSA 541-A, which shall not exceed $45, a license shall be issued.
371:9 New Paragraphs; Rulemaking; Game Operator Fees. Amend RSA 287-D:1-b by inserting after paragraph XII the following new paragraphs:
XII-a. Administrative orders and fines pursuant to RSA 287-D:6.
XII-b. Badge specifications, requirements, and fees pursuant to RSA 287-D:2-d, VII.
XII-c. Game operator fees pursuant to RSA 287-D:2-d, III.
371:10 Pari-Mutuel Commission; Position Established. The following position is hereby established in the pari-mutuel commission. This position and costs associated with this position, including current expense, equipment, in-state travel, and out-of-state travel, shall be funded from fees collected pursuant to RSA 287-D:2-d, III:
One internal auditor III, labor grade 23.
371:11 Repeal. The following are repealed:
I. RSA 287-D:2-b, XIII, relative to submission of information to the pari-mutuel commission.
II. RSA 287-D:2-c, I, definition of game operator.
III. RSA 287-D:2-d, IV, relative to authorization of specific games.
IV. RSA 284:23, V, relative to tax rates for Rockingham Park.
371:12 Licensing of Game Operators; Contingent Version. RSA 287-D:2-c, VII is repealed and reenacted to read as follows:
VII. In addition to the charitable organization, game operators who operate games of chance on behalf of a charitable organization shall also be held responsible for all requirements that the charitable organization is responsible for when they operate the games of chance themselves.
371:13 Games of Chance; Penalty; Contingent Version. RSA 287-D:6, IV-VI are repealed and reenacted to read as follows:
IV. In addition to the provisions of paragraph I:
(a) Any person who purposely or knowingly makes a false entry in any report required under this chapter which results in a reduction of revenues due to a charitable organization shall be guilty of a class A felony.
(b) Any person who recklessly or negligently makes a false entry on any report required under this chapter which results in a reduction of revenues due to a charitable organization shall be guilty of a class A misdemeanor.
(c) Any game operator employer or game operator who fails to remit to a charitable organization all revenues due under this chapter shall be guilty of a class A felony.
V. Any game operator employer or game operator who fails to pay the charitable organization all moneys required by this chapter shall be guilty of a class B felony for any amount less than $500, and a class A felony for any amount equal to or greater than $500.
VI. Any person who violates any provision of RSA 637 in a manner that deprives the charitable organization of any moneys required by this chapter, not withstanding the penalties set forth in RSA 637:11, shall be guilty of a class B felony for any amount less than $500, and a class A felony for any amount equal to or greater than $500.
VII. In addition to any other penalty imposed under this chapter, a charitable organization which suffers a loss caused by the violation of any provision of this chapter may bring a civil action for actual damages suffered. If the court finds that the violation was committed purposefully or knowingly, it shall award enhanced compensatory damages of not less than 2 times the amount of actual damages suffered, and may award up to 3 times the amount of actual damages suffered. In any civil action, the prevailing party shall be awarded court costs and reasonable attorney’s fees. No waiver of the provisions of this paragraph shall be enforceable.
VIII. The pari-mutuel commission may issue an order requiring any person or organization to comply with this subdivision or any rule adopted hereunder, and may require such remedial measures as may be necessary.
IX. The pari-mutuel commission may impose an administrative fine scaled to reflect a violator’s prior history and the scope and severity of the violation, after notice and hearing, pursuant to rules adopted under RSA 541-A, for any violation of this subdivision, any rule adopted under this subdivision, any license issued pursuant to this chapter, or any order issued pursuant to this subdivision, or upon any person who makes or certifies to a material false statement relative to any application or report required by this subdivision. In determining the amount of a fine, the pari-mutuel commission may take into consideration all relevant circumstances, including: the degree of noncompliance, the extent of harm caused by the violation, the nature and persistence of the violation, the time and cost associated with the investigation by the state, and the economic impact of the violation on the state or the charity conducting or sponsoring the game. Any administrative fine imposed under this paragraph shall not preclude the imposition of other penalties as provided by law. Rehearings and appeals from a decision of the commission under this paragraph shall comply with RSA 541. Fines imposed by the pari-mutuel commission shall be as follows:
(a) The fine for a minor violation shall be not less than $25 and not more than $500 per violation. A minor violation shall be one where the pari-mutuel commission determines that the potential for harm to the interests of the state and the charity, as well as the integrity of charitable gaming is minor and may include, but is not limited to, a game operator, a game operator employer, charitable organization, or charitable organization member not:
(1) Wearing a properly issued badge;
(2) Posting 2 copies of the laws and rules;
(3) Having a diagram available for each table where games of chance are being played indicating the type of game being played, the bet amount, the buy-in amount, and the re-buy amounts as applicable; or
(4) Publicly displaying the name of the charitable organization.
(b) The fine for a moderate violation shall be not less than $250 and not more than $1,500 per violation. A moderate violation shall be one where the pari-mutuel commission determines that the potential for harm to the interests of the state and the charity, as well as the integrity of charitable gaming is moderate and may include, but is not limited to, a game operator, game operator employer, charitable organization, or charitable organization member:
(1) Filing a late financial report;
(2) Operating a game not specifically listed on the game schedule;
(3) Operating a game on a different date than licensed without approval of the pari-mutuel commission;
(4) Committing 3 or more minor violations within 2 years; or
(5) Knowingly operating a game of chance without a representative of the charitable organization present as specified in RSA 287-D:2-b, VII-a.
(c) The fine for a major violation shall be not less than $1,000 and not more than $5,000 per violation. A major violation shall be one where the pari-mutuel commission determines that the potential for harm to the interests of the state and the charity, as well as the integrity of charitable gaming is major and shall include, but is not limited to, a game operator, game operator employer, charitable organization, or charitable organization member:
(1) Operating a game of chance without a license;
(2) Operating a game of chance without having the personnel or officials required;
(3) Purposely operating a game of chance without a representative of the charitable organization present as specified in RSA 287-D:2-b, VII-a;
(4) Operating a game of chance with game operators who are not licensed;
(5) Failing to establish or maintain a New Hampshire bank account; or
(6) Committing 5 or more minor violations or 3 or more moderate violations within 2 years.
(d) The pari-mutuel commission may suspend any part of a fine for just cause.
X. All fines imposed by the pari-mutuel commission shall be deposited in the special fund established pursuant to RSA 284:21-j.
371:14 Contingency. If HB 1509-FN-A of the 2008 regular legislative session becomes law, section 10 of this act shall not take effect. If HB 1509-FN-A does not become law, section 10 of this act shall take effect July 1, 2008.
371:15 Contingency. If HB 1302-FN of the 2008 regular legislative session becomes law, sections 1, 3, 5, 6, 7, 9, and 11 of this act shall not take effect, and sections 12 and 13 of this act shall take effect on July 1, 2008. If HB 1302-FN does not become law sections 1, 3, 5, 6, 7, 9, and 11 of this act shall take effect July 1, 2008, and sections 12 and 13 of this act shall not take effect.
371:16 Name Change; Pari-Mutuel Commission to Racing and Charitable Gaming Commission. Amend RSA 287-D:6 by replacing “pari-mutuel commission” with “racing and charitable gaming commission, wherever it occurs.
371:17 Effective Date.
I. Sections 1, 3, 5, 6, 7, 9, 11, 12,and 13 of this act shall take effect as provided in section 15 of this act.
II. Section 10 of this act shall take effect as provided in section 14 of this act.
III. Sections 14 and 15 of this act shall take effect upon its passage.
IV. Section 8 of this act shall take effect July 1, 2008 at 12:01 am.
V. Section 16 of this act shall take effect July 11, 2008.
VI. The remainder of this act shall take effect July 1, 2008.
Approved: July 11, 2008
Effective Date: I. Sections 1,3,5,6,7,9,11,12 and 13 shall take effect as provided in section 15
II. Section 10 shall take effect as provided in section 14.
III. Sections 14 and 15 shall take effect July 11, 2008.
IV. Section 8 shall take effect July 1, 2008 at 12:01 a.m.
V. Section 16 shall take effect July 11, 2008.
VI. Remainder shall take effect July 1, 2008.