SB138 (2011) Detail

Eliminating the lottery commission and establishing the education lottery authority.


SB 138-FN-A – AS INTRODUCED

2011 SESSION

11-1034

08/04

SENATE BILL 138-FN-A

AN ACT eliminating the lottery commission and establishing the education lottery authority.

SPONSORS: Sen. D'Allesandro, Dist 20; Sen. Gallus, Dist 1

COMMITTEE: Ways and Means

ANALYSIS

This bill:

I. Eliminates the lottery commission.

II. Establishes the education lottery authority.

III. Allows the education lottery authority to hire and employ individuals and compensate them based on their performance.

This bill is a request of the lottery commission.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

11-1034

08/04

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Eleven

AN ACT eliminating the lottery commission and establishing the education lottery authority.

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

1 New Chapter; Education Lottery Authority. Amend RSA by inserting after chapter 284-A the following new chapter:

CHAPTER 284-B

EDUCATION LOTTERY AUTHORITY

284-B:1 Education Lottery Authority Established. There is hereby established a body politic and corporate of the state to be known as the education lottery authority (“authority”). The main purpose of the education lottery authority shall be to generate revenue for the benefit of the state and for the provision of public education. The authority shall consist of 3 directors who shall be appointed and may be removed for cause by the governor with the advice and consent of the council. One director shall be appointed for one year, one for 2 years and one for 3 years, and upon the expiration of their terms of office, their successors shall be appointed for a term of 3 years. Any vacancy shall be filled by appointment by the governor with the advice and consent of council for the unexpired term. No director of the authority shall have any pecuniary or other interest in any supplier or agent to the authority or in any licensee licensed under the provisions of this chapter.

284-B:2 Organization. The board of directors of the authority shall select one from their number to be chairperson and another to be secretary of the board. Two of the members of the board shall constitute a quorum to do business. It shall be the duty of the secretary to keep a record of all proceedings of the board and to preserve all books, documents, papers, and records addressed to its care.

284-B:3 Bond. Members of the board of directors shall give bond to the state in such amount as shall be determined under the provisions of RSA 93-B.

284-B:4 Compensation. Each director of the authority shall receive a salary as established by a review conducted initially by the department of administrative services and then conducted biannually by an independent review and shall be allowed reasonable expenses, including transportation, incurred in the performance of the director’s duties.

284-B:5 Office. The authority shall have an office in Concord or in a municipality that borders Concord.

284-B:6 Powers and Duties of the Board of Directors. The board of directors shall have management and control of all the property and affairs of the authority. In addition, the directors are authorized to:

I. Develop and adopt bylaws for the regulation of its affairs and the conduct of business and to adopt an official seal and alter it as necessary or convenient.

II. Oversee the administration of the education lottery authority and to determine the organizational structure and operational policies and procedures for the authority.

III. Appoint and fix the compensation of an executive officer who shall be qualified by education and experience and shall serve at the pleasure of the board.

IV. Employ and prescribe the duties of personnel as may be necessary to carry out the purposes for which the education lottery authority has been created.

V. Accept legacies and other gifts to or for the benefit of the education lottery authority.

VI. Prepare and adopt a biennial operating budget for presentation to the governor and the general court.

VII. Receive, expend, allocate, and transfer funds within the education lottery authority as necessary to fulfill the purposes of the education lottery authority.

VIII. Invest any funds not needed for immediate use, including any funds held in reserve, in property and securities in which fiduciaries in the state may legally invest funds.

IX. Enter into any contracts, leases, and any other instruments or arrangements that are necessary, incidental, or convenient to the performance of its duties and responsibilities.

X. Acquire consumable supplies, materials, and services through cash purchases, sole-source purchase orders, bids, or contracts as necessary to fulfill the purposes of this chapter.

XI. Acquire by purchase, gift, lease, or rent any property, lands, buildings, structures, facilities, or equipment necessary to fulfill the purposes of this chapter.

XII. Authorize and enter any contracts, leases, and any other instruments or arrangements that are necessary, incidental, or related to the construction, maintenance, renovation, reconstruction, or other necessary improvements of education lottery authority buildings, structures, and facilities.

XIII. Develop and adopt personnel policies and procedures for the education lottery authority. The board of directors shall determine the qualifications, duties, and compensation of its employees and shall allocate and transfer personnel within the education lottery authority as necessary to fulfill the purposes of this chapter.

XIV. Delegate duties and responsibilities as necessary for the efficient operation of the education lottery authority and to do other acts or things necessary or convenient to carry out the powers and duties set forth in this chapter.

XV. Enter into program and service relationships with state departments, divisions, and other state entities through memoranda of understanding.

284-B:7 Employees. The authority may employ such assistants and employees to carry out the provisions of this chapter who shall receive compensation at rates to be established by the board of directors. Compensation shall include performance based compensation. No employee of the authority shall have any pecuniary or other interest in any supplier or agent to the authority or in any licensee licensed under this chapter.

284-B:8 Employment; Benefits; Retirement Authority Status.

I. The education lottery authority shall, as of the effective date of this section, be considered an employer for the purposes of RSA 100-A:1, IV. Full-time employees of the education lottery authority as of the effective date of this section shall be considered employees for the purposes of RSA 100-A:1, V.

II. Service as an employee of the education lottery authority shall be creditable service for purposes of RSA 100-A, RSA 21-I:29, RSA 21-I:30, RSA 21-I:30-a, RSA 21-I:30-b, and RSA 21-I:30-c. Any education lottery authority employee who transfers, without a break in service, to a state classified, unclassified, or nonclassified service position shall retain and transfer all leave accruals and seniority and be entitled to all the rights and benefits of a permanent employee in the classified or unclassified service of the state based on the years of creditable state service. At the time of such a transfer, the employee shall immediately begin to accrue annual and sick leave as granted at the time of the transfer by the receiving agency according to the employee’s continuous years worked. Any state employee in a classified, unclassified, or nonclassified service position who transfers, without a break in service, to the education lottery authority shall retain and transfer all leave accruals and seniority and be entitled to all the rights and benefits of a permanent employee in the classified or unclassified service of the state based on the years of creditable state service. At the time of such a transfer, the employee shall immediately begin to accrue annual and sick leave as granted at the time of the transfer by the receiving agency according to the employee’s continuous years worked.

III. Membership in the retirement system shall be optional for positions within the education lottery authority for which participation was optional as of June 30, 2011, and for such other positions within the education lottery authority as may be designated by the board of directors.

284-B:9 Prohibition on Future Employment.

I. No director, executive officer, or games manager of the education lottery authority shall accept any employment, including work as a consultant or lobbyist, with any ticket or on-line vendor holding a valid contract with the education lottery authority or any such vendor bidding on a contract with the education lottery authority until 2 years after such person shall become separated from the authority.

II. No ticket or on-line vendor holding a void contract with the education lottery authority or bidding on a contract with the education lottery authority shall employ any director, executive officer, or games manager from the education lottery authority until 2 years after such employee has become separated from the education lottery authority. Any such vendor who violates the provisions of this paragraph shall be barred from bidding on any future contract with the education lottery authority for 5 years after such violation.

284-B:10 Education Lottery Fund.

I. The state treasurer shall credit all moneys received from the authority, and interest received on such moneys, to a special fund that shall be known as the education lottery administration fund from which the treasurer shall pay all expenses of the authority incident to the administration of this chapter and all administration and enforcement expenses. Any balance left in the education lottery fund after such expenses are paid shall be deposited into an education lottery fund established by the state treasurer for the purpose of distributing adequate education grants to municipalities’ school districts and to approved charter schools pursuant to RSA 198:42, to provide low and moderate income homeowners property tax relief under RSA 198:56-198:61, and to fund kindergarten programs as may be determined by the general court.

II. Notwithstanding any other provision of law, if the expenditure of additional funds over budget estimates is necessary for the proper functioning of the authority, the authority may request, with prior approval of the fiscal committee of the general court, that the governor and council authorize the transfer of funds from the sweepstakes fund for expenses related to retirement and health benefits.

III. Notwithstanding any provision of law to the contrary, in order to allow the authority to efficiently handle its funds, the authority is authorized to have service fees paid to banks and sales outlets deducted from lottery receipts and, with the approval of governor and council, to have prizes paid by sales outlets from lottery receipts so long as full accountability is assured. The authority is authorized to enter into agreements with banks as to the charges for services rendered. Lottery funds shall be deposited in commercial banks throughout the state. These funds shall be transferred on a weekly basis to the state treasurer.

IV. Notwithstanding any provision of law to the contrary, in order to allow the authority to efficiently distribute instant tickets, the authority may have instant ticket delivery fees deducted from lottery receipts. The authority is authorized to enter into agreements or contracts with third parties for instant ticket delivery service. Such agreements or contracts shall have the prior approval of governor and council.

284-B:11 Disbursements. The compensation of the trustees, expenses of the trustees, compensation of assistants and other necessary expenses of the authority, including suitable furniture, equipment, supplies and office expense shall be charged to and paid out of the funds received under the provisions of this chapter, provided that no payment shall be made until sufficient money has been received under the provisions of this chapter to cover said payments.

284-B:12 Tax Exemption. Property of the education lottery authority is exempt from taxation as provided in RSA 72:23.

284-B:13 Report of the Authority. The authority shall make an annual report to the governor in accordance with RSA 20:7 and to the legislature, including therein an account of its actions, receipts derived under the provisions of this recommendation for legislation which the authority deems advisable.

284-B:14 Prizes; Games.

I. In establishing the money or prizes to be awarded the holders of winning tickets, the education lottery authority shall be governed by the primary purpose of the lottery and sweepstakes, to raise revenue for the benefit of public education. They shall conduct such studies and make such investigations, either directly or through their agents, as will apprise them of prizes and money awarded to the holders of winning tickets in similar drawings wherever held. They shall fix the prizes and amounts of money to be awarded winners in such manner as will yield the largest net revenue for the benefit of public education, bearing in mind the expenses to be incurred, and all other factors which tend to influence net revenue.

II. The education lottery authority shall adopt a uniform set of rules under RSA 541-A and after public hearing applicable to all instant sweeps games, including, but not limited to, how prizes are claimed and how tickets are validated. The education lottery authority may establish the following requirements without adopting rules under RSA 541-A, provided such requirements are printed clearly on the tickets issued by the education lottery authority:

(a) The name of the game;

(b) The cost of the ticket;

(c) The amount of instant prizes; and

(d) The method for determining winning tickets which is unique to that particular game.

III.(a) The education lottery authority shall adopt rules under RSA 541-A and after public hearing relative to daily numbers games, including:

(1) Rules of the game.

(2) Types of bets.

(3) Prize payments for each type of bet.

(4) Ticket validity, including the appeal process to the education lottery authority for decisions made by representatives of the education lottery authority appointed by the education lottery authority to carry out its rules.

(5) Requirements of ticket agents.

(b) The education lottery authority or its designee may establish the following requirements relative to daily numbers games without adopting rules under RSA 541-A, provided that the education lottery authority or its designee gives notice of said requirements in a newspaper or daily statewide publication at least 24 hours in advance of taking any action:

(1) Limitation on the number of bets.

(2) Conduct of drawings, including cancellation and rescheduling of drawings.

(3) Cost of tickets.

IV. The education lottery authority shall adopt a uniform set of rules under RSA 541-A and after public hearing applicable to all games administered by the Multi-State Lottery Association, including, but not limited to, how prizes are claimed and how tickets are validated. The education lottery authority may establish the following characteristics without adopting rules under RSA 541-A, provided that the education lottery authority or its designee gives notice of said characteristics in a public announcement at least 10 business days in advance of taking any action:

(a) Conduct of drawings.

(b) The numbers and or symbols chosen from a set or sets of designated numbers or symbols to determine prize winners.

(c) Prize value of each prize category for standard or promotional drawings.

(d) The price of each bet.

(e) The frequency of the drawings.

284-B:15 Authorization; Sale of Tickets; Advertising.

I. The education lottery authority is hereby authorized:

(a) To conduct public drawings at such intervals and in such places within the state as the education lottery authority may determine.

(b) To conduct pure lotteries if the education lottery authority determines that such program will best accomplish the purposes of this subdivision.

(c) To participate in any international, national, or multistate pure lotteries.

II. Tickets for such pure lotteries:

(a) Shall be sold by the education lottery authority in state liquor stores, and the state liquor commission is hereby directed to cooperate with the education lottery authority in the sale of such tickets, and within the enclosure of any track where a race or race meet is conducted by license issued under this chapter, and the education lottery authority is authorized to request and accept cooperation of the licensee in the sale of such tickets therein.

(b) May be sold by the education lottery authority in the following locations: branch offices of the education lottery authority, to be established at the information area adjacent to the Hampton toll station and the Hooksett toll station, and education lottery authority’s office in Concord. Each branch office at the Hooksett and Hampton toll stations will be in a new building to be constructed by the department of transportation in accordance with their design and specifications. The education lottery authority is hereby authorized to contract with the department of transportation for the construction of these buildings, the cost of which will be a charge against lottery revenue. Tickets sold at any of the locations provided for by this subparagraph shall be sold only by education lottery authority employees or through automatic ticket dispensing machines.

(c) May be sold by the education lottery authority in the following locations:

(1) At, within, or upon the following premises owned or controlled by the state: Franconia State Park, Hampton Beach State Park, Mount Sunapee State Park, and Crawford Notch State Park. The state agency responsible for the operation of these locations shall have regulatory powers over the sales and advertising of lottery tickets at the above locations.

(2) At, within, or upon the following premises owned or controlled by a political subdivision of the state: Weirs Beach, provided, however, that the voters of the city of Laconia have signified their approval of the sale of lottery tickets in said city pursuant to the provisions of RSA 284-B:17 at the biennial election of November, 1966 and so signify biennially thereafter. The education lottery authority shall obtain prior permission from the administrative authorities for this location before selling tickets at, within, or upon these premises.

(d) May be sold by or for the education lottery authority at designated locations, other than grounds and campuses of public and private schools, colleges, and universities, by persons, whether natural, associate, or corporate, authorized to sell such tickets on a minimum 5 percent education lottery authority basis for services rendered. The education lottery authority may establish higher sales education lottery authority rates no greater than 6 percent and other sales incentives deemed necessary to increase lottery sales. All sales shall be subject to the rules and regulations of the education lottery authority provided that voters of the towns and cities in which sales outlets are located, have signified approval of lottery ticket sales pursuant to RSA 284-B:17.

(e) Owners of retail establishments who have been convicted of a felony within the previous 10 years which has not been annulled by a court, or a misdemeanor involving falsehood or dishonesty within the previous 5 years which has not been annulled by a court, shall not be allowed to sell lottery tickets in their retail establishment.

III. No tickets shall be sold at any locations to minors.

IV. The education lottery authority is authorized to advertise the sale of tickets at each sales location and through other advertising media as the education lottery authority deems necessary to increase lottery sales.

284-B:16 Insurance Authorized. The authority is hereby authorized to purchase such insurance as it may deem necessary or desirable to insure itself, the state of New Hampshire and its ticket sales agents against any claims which may arise out of the acts or omission of any such agent in connection with or in any way related to the sale of tickets.

284-B:17 Sale; Local Option.

I. Whether or not the education lottery authority may continue to sell tickets in a city or town shall be determined as provided in RSA 663:7 and 8.

II. Recounts of any votes taken pursuant to RSA 663:7 shall be subject to RSA 660:13 through 15.

284-B:18 Special Taxes. If the governor and council so authorize, the education lottery authority may add to the selling price authorized under RSA 284-B:6 an amount not in excess of the amount of any tax levied against the proceeds in the hands of said education lottery authority, and the education lottery authority shall pay such taxes out of such proceeds, but only under protest. In paying any such tax the education lottery authority is instructed to assert with its protest, in addition to such other reasons as it may deem appropriate, the contention of the state of New Hampshire that taxes may not lawfully be imposed upon the type of state revenue raising measures for educational purposes as is represented by the provisions of this subdivision.

284-B:19 Purchase of Tickets for a Fee Prohibited. No person shall engage in the business of purchasing or offering to purchase a sweepstakes or lottery ticket or tickets for, in behalf of, or in the name of another for a fee or service charge which shall make the ultimate cost of such ticket or tickets to the registered owner thereof greater than the legal price of such ticket or tickets as established by the education lottery authority under the authority of this subdivision. Whoever violates the provisions of this section shall be guilty of a misdemeanor if a natural person, or guilty of a felony if any other person.

284-B:20 Unclaimed Prize Money. The education lottery authority shall hold unclaimed prize money on a winning ticket for one year after the prize money is awarded. If there is no claim to the money during the one year, or if the education lottery authority is unable to locate the holder of a winning ticket during the one year, the education lottery authority shall pay the money to the state treasurer at the end of the one year. The state treasurer shall deposit the money into the special fund set up under RSA 284:21-j. A person who has a claim on the prize money after the money has been paid to the treasurer shall make a claim to the legislature for payment.

284-B:21 Incentive Awards for Ticket Sellers. The education lottery authority is authorized to pay cash incentives, at a rate established by the education lottery authority but not to exceed $30,000 for a jackpot winning ticket, or not to exceed $500 for each incidence of meeting or exceeding education lottery authority established sales goals, as an inducement to servants and agents authorized to sell tickets pursuant to RSA 284-B:15, II(d).

284-B:22 Child Support Intercept. The education lottery authority and the department of health and human services shall initiate an on-line data system to effect the withholding of child support arrearages from all lottery prizes subject to Federal Tax Form W-2g reporting requirements. The full cost of such on-line data system shall be borne by the department of health and human services. Upon notice from the department of health and human services that an arrearage amount exists, the education lottery authority shall withhold such amount from any lottery prize payments and redirect such payments to the department of health and human services in full or partial satisfaction of the arrearage. The education lottery authority and the department of health and human services shall adopt rules under RSA 541-A after public hearing relative to withholding prize money from lottery claimants having child support arrearages. The education lottery authority shall also provide, by rule, safeguards against the disclosure or inappropriate use of any personally identifiable information regarding any person obtained pursuant to this section.

2 Lottery Special Fund. Amend RSA 6:12,I(b)(1) to read as follows:

(1) Moneys received by the [state lottery commission] education lottery authority established in RSA 284-B:1, which shall be credited to the sweepstakes special fund.

3 Reports; Education Lottery Authority. Amend RSA 20:7 to read as follows:

20:7 Issuance of Reports. The following agency reports shall be issued annually: secretary of state, state treasurer, bank commissioner, insurance commissioner, division of personnel, commissioner of revenue administration, [lottery commission] education lottery authority, racing and charitable gaming commission, liquor commission, department of transportation, department of environmental services, department of safety, adult parole board, and the board of trustees of the state colleges and university. All other reports shall be issued biennially. All reports shall cover periods ending on June 30, and be submitted to the governor and council, the speaker of the house of representatives, and the senate president by October 1. Biennial reports shall cover periods ending in odd-numbered years.

4 Terms of Appointment. Amend RSA 21:33-a, III(a) to read as follows:

(a) That any commissioner or agency head of a department, as defined in RSA 21-G:5, VI, who is an unclassified employee of the state, and appointed to such position, shall serve for the appropriate term or unexpired portion thereof. The commissioner or agency head may serve beyond the appointed term or unexpired portion thereof with the written authorization of the governor. This subparagraph shall also apply to the adjutant general and the attorney general, and to appointees to the liquor commission, the [lottery commission] education lottery authority, the racing and charitable gaming commission, and the public utilities commission.

5 Exemptions. Amend RSA 21-I:18, I(g) to read as follows:

(g) The purchase of gaming tickets and their dispensing equipment by the [lottery commission] education lottery authority. The commission shall make such purchases under competitive bidding requirements, except when waived by the commission or its authorized agent with written justification.

6 Taxation of Income; New Hampshire Entities. Amend RSA 77:38, IV to read as follows:

IV. “New Hampshire entities” means establishments the purpose of which is to engage in any gaming regulated by the racing and charitable gaming commission and the sale of lottery tickets as permitted by the [lottery commission] education lottery authority.

7 Taxation of Income; Lottery Winnings. Amend RSA 77:39, II to read as follows:

II. The [lottery commission] education lottery authority and the charitable gaming and racing commission shall withhold all tax due and payable to the state from any payout of gambling winnings.

8 Taxation of Income; Lottery Winnings. Amend RSA 77:42, II to read as follows:

II. The taxes collected by the [lottery commission] education lottery authority and the racing and charitable gaming commission shall be paid over to the state treasurer on or before the fifteenth day of the month following collection of said tax.

9 Salary. Amend RSA 94:1-a, I(b) to read as follows:

Delete

HH Lottery commission executive director

Insert

HH Education lottery authority executive officer

10 Police Training. Amend RSA 188-F:27, VI to read as follows:

VI. Any investigator who has the power to enforce the criminal laws under RSA 106-A and RSA 287-E and rules of the [lottery commission] education lottery authority, the department of safety, or the racing and charitable gaming commission and who was serving under a permanent appointment prior to July 1, 1986, shall not be required to meet the requirements of paragraphs I and III; however, any investigator referred to in this paragraph shall complete such limited programs as may be prescribed by the police standards and training council under this section within one year of the date the programs are required. Should any investigator exempted from the requirements of paragraphs I and III of this section by this paragraph terminate employment with the department of safety and be hired as a police officer by another police department of the state or a political subdivision thereof, the inspector’s certification shall lapse and may be reinstated upon completion of such necessary additional training courses as the police standards and training council may prescribe.

11 Restriction on Gambling. Amend RSA 284:17-c to read as follows:

284:17-c Restriction on Gambling. Notwithstanding any other provision of law, except as provided in RSA 284:22-a and in the introductory paragraph of RSA 284:22, 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 [lottery commission] education lottery authority or the racing and charitable gaming commission.

12 Gaming Regulatory Oversight Authority. Amend RSA 284-A:1, III to read as follows:

III. The executive director of the [lottery commission] education lottery authority, or designee.

13 Duties of the Gaming Regulatory Oversight Authority. Amend RSA 284-A:2, I(e) to read as follows:

(e) Identify, review, and propose necessary changes in the policies and practices of the [lottery commission] education lottery authority and the racing and charitable gaming commission to ensure the independence, integrity, and public accountability of the regulation of gaming in New Hampshire, including insulating the regulators from conflicts of interest.

14 Certification of Prize Winners. Amend RSA 287-F:10, I-j to read as follows:

I-j. The tri-state lotto compact recognizes that each party state has enacted laws authorizing a party state agency to collect child support debts and arrearages. Upon receipt of notice from a party state agency, the commission shall suspend payment of winnings in the amount of the child support debt or arrearage and notify the winner. Child support debts and arrearages of a winner shall be offset by the commission in the manner in which the education lottery authority or state lottery commission of a party state is required by law to offset such debts and arrearages.

15 Question to Voters; Sale of Lottery Tickets. Amend RSA 663:8 to read as follows:

663:8 Application. Unless and until changed pursuant to RSA 663:7, the sales of lottery tickets by the [lottery commission] education lottery authority under [RSA 284] RSA 284-B in cities and towns shall be in accordance with the approval or disapproval of such operation as signified by the vote taken at the state general election held in November, 1970.

16 New Section; Indemnification. Amend RSA 99-D by inserting after section 2-b the following new section:

99-D:2-c Education Lottery Authority. The provisions of RSA 99-D:2 shall apply to the trustees, officials, statutory committees, or employees of the education lottery authority established in RSA 284-B.

17 Definition of Agency; Claims Against the State. Amend RSA 541-B:1, I to read as follows:

I. “Agency” means all departments, boards, offices, commissions, institutions, other instrumentalities of state government, including but not limited to the Pease development authority, division of ports and harbors, the New Hampshire housing finance authority, the New Hampshire energy authority, the community college system of New Hampshire, [and] the Pease development authority, the education lottery authority and the general court, including any official or employee of same when acting in the scope of his or her elected or appointed capacity, but excluding political subdivisions of the state.

18 Governmental Use; Education Lottery Authority Included. Amend RSA 674:54, I-II to read as follows:

I. In this section, “governmental use” means a use, construction, or development of land owned or occupied, or proposed to be owned or occupied, by the state, university system, the community college system of New Hampshire, the education lottery authority or by a county, town, city, school district, or village district, or any of their agents, for any public purpose which is statutorily or traditionally governmental in nature.

II. The state, university system, community college system of New Hampshire, education lottery authority county, town, city, school district, or village district shall give written notification to the governing body and planning board, if such exists, of a municipality of any proposed governmental use of property within its jurisdiction, which constitutes a substantial change in use or a substantial new use. Written notification shall contain plans, specifications, explanations of proposed changes available at the time, a statement of the governmental nature of the use as set forth in paragraph I, and a proposed construction schedule. Such notification shall be provided at least 60 days prior to the beginning of construction. Either the governing body or planning board of the municipality may conduct a public hearing relative to the proposed governmental use. Any such hearing shall be held within 30 days after receipt of notice by the governing body or planning board. A representative of the governmental entity which provided notice shall be available to present the plans, specifications, and construction schedule, and to provide explanations. The governing body or planning board may issue nonbinding written comments relative to conformity or nonconformity of the proposal with normally applicable land use regulations to the sponsor of the governmental use within 30 days after the hearing.

19 Definition of Employer; Education Lottery Authority Included. Amend RSA 100-A:1, IV to read as follows:

IV. “Employer” shall mean (a) the state or any department, commission, institution, or agency of the state government by which an employee is paid through the office of the state treasurer with respect to their employees, (b) the state, the local school district, or other employers of teachers eligible for membership in the system with respect to the teachers in their employ, (c) any police department or police force of the state, or of any county, city, town, village, or precinct in the state with respect to the permanent policemen in their employ, (d) any fire department of the state, or of any county, city, town, village, or precinct in the state with respect to the permanent firemen in their employ, (e) any political subdivision that has elected to participate under RSA 100-A:20, [and] (f) the community college system of New Hampshire, and (g) the education lottery authority; provided, however, that in no instance shall any employer contribute or participate in the retirement system unless by a reasonable determination of the board of trustees such employer qualifies as a governmental entity, political subdivision, agency, or instrumentality eligible to participate in the retirement system as a governmental plan within the meaning of section 414(d) of the United States Internal Revenue Code of 1986, as amended.

20 Compensation for State Officials. Amend RSA 94:1-a, III to read as follows:

III. Officials named in this section shall be placed in the corresponding steps in the new salary ranges as their length of service justifies and in accordance with RSA 94:3. [Lottery commissioners] Directors of the education lottery authority who are members of a multi-state lottery commission and who are authorized to be compensated for such services shall be compensated in addition to their salary under RSA 94:1-a, II, provided, that such additional salary equals no more than $50 per actual day worked plus reasonable expenses for duties performed as a multi-state lottery commissioner. Racing commissioners, [lottery commissioners] directors of the education lottery authority, and the state entomologist only excepted, any official whose salary upon placement in the new salary range is less than that of a subordinate classified employee shall be placed at the next higher step in range above said classified employee and shall be entitled to any increase provided for herein until the maximum provided herein is reached. However, in the event that the maximum of the unclassified position is less than the salary of said subordinate classified employee, the governor and council is authorized to increase the maximum of the unclassified position in an amount to provide a differential of not more than $1,000.

21 Repeal. The following are repealed:

I. RSA 284:21-a through RSA 284:21-i, relative to the lottery commission.

II. RSA 284:21-jj through RSA 284:21-k, relative to the lottery commission.

III. RSA 284:21-l through RSA 284:21-q, relative to the lottery commission.

IV. RSA 284:21-s, relative to the lottery commission.

V. RSA 284:21-u through RSA 284:21-v relative to the lottery commission.

22 Exemptions. Notwithstanding any provision of law to the contrary, the purchases of the education lottery authority established in RSA 284-B shall not be subject to the provisions of RSA 21-R:8-a or RSA 21-I.

23 Transition. The powers, functions, duties, and responsibilities of the members of the lottery commission are hereby transferred to the education lottery authority created pursuant to this act. Lottery commissioners serving as such at the effective date of this act shall continue to serve as lottery directors until such time as their terms expire.

24 Transfers. All transfers necessary to effectuate the provisions of this act shall be authorized including transfer of positions, equipment, funds, and other items at the time of the passage of this act shall be transferred from the lottery commission to the education lottery authority established in RSA 284-B.

25 Effective Date. This act shall take effect upon its passage.

LBAO

11-1034

Revised 02/17/11

SB 138 FISCAL NOTE

AN ACT eliminating the lottery commission and establishing the education lottery authority.

FISCAL IMPACT:

      The Lottery Commission and the Department of Administrative Services state this bill will increase state restricted revenue, and increase state general fund expenditures by an indeterminable amount in FY 2012 and each year thereafter. There will be no fiscal impact on county and local revenue or expenditures.

METHODOLOGY:

    This bill eliminates the Lottery Commission and establishes the Education Lottery Authority as a body politic and corporate of the state. The Commission states the distribution of their products through retail channels requires them to compete for point of sale real estate with other products such as beverages, snack foods, and other miscellaneous merchandise, as it is in the retailer’s best interest to place their most profitable items in their most visible point of sale locations. The Commission states the proposed legislation allows the newly created Education Lottery Authority to operate in a manner more comparable to the businesses it has to compete with in the retail channel and to react more efficiently and responsively to changes in the marketplace and changes in consumer demand. The Commission states the most notable effect of the proposed legislation would be the ability of the newly created authority to compensate lottery retailers and sales representatives based upon performance and achievement of sales goals in a manner that would assure an increase in revenues to the newly created education lottery fund. The Commission states to the extent these compensation incentives increase lottery sales in FY 2012 and each year thereafter, state restricted revenue will increase.

    The Department of Administrative Services states the removal of the Lottery Commission’s net revenue from the existing education trust fund and the creation of a new special fund to be known as the education lottery administration fund for distribution through adequate education grants, low and moderate income homeowner’s property tax relief, and to fund public kindergarten will result in dual adequate education funding streams. The Department states the creation and maintenance of dual funding streams will increase state expenditures by an indeterminable amount in FY 2012 and each year thereafter. The Department of Administrative Services also notes the process of transitioning the Lottery Commission into the Education Lottery Authority will eliminate the Lottery’s use of centralized states services thereby decreasing state expenditures. However, the Department notes there would be a corresponding increase in Lottery expenditures as the services formerly provided through the Department would need to be assumed by the Lottery. Additionally, the Department states if the three directors established in the proposed legislation are full time employees, state expenditures will increase by the difference between the current salaries of the three part time commissioners and the full time salaries and enhanced benefits of the newly established directors.