HB 1697-FN-A – AS INTRODUCED
2012 SESSION
08/10
HOUSE BILL 1697-FN-A
AN ACT establishing keno in New Hampshire.
SPONSORS: Rep. Sapareto, Rock 5; Rep. Weyler, Rock 8; Rep. Abrami, Rock 13; Rep. Azarian, Rock 4; Rep. Daugherty, Coos 1
COMMITTEE: Commerce and Consumer Affairs
This bill allows the organization and play of keno games in New Hampshire.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
12-2133
08/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twelve
AN ACT establishing keno in New Hampshire.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Subdivision; Bingo and Lucky 7; Keno. Amend RSA 287-E by inserting after section 29 the following new subdivision:
287-E:30 Definition. In this subdivision, “keno” means any game where a player purchases a ticket of 80 numbers and selects 1 to 20 numbers by marking selections on the purchased ticket. The game operator chooses 20 numbers at random, and the player is paid out against his or her original wager based upon how many numbers match the numbers they have marked on their ticket.
287-E:31 Administration and Enforcement. The racing and charitable gaming commission shall administer and enforce this subdivision.
287-E:32 Rulemaking. The racing and charitable gaming commission shall adopt rules, pursuant to RSA 541-A, relative to:
I. The application procedure for keno licenses.
II. Information to be required on license applications.
III. The application procedure for distributor and manufacturer licenses under RSA 287-E:40.
IV. Procedures for a hearing following the revocation of a license.
V. The operation of keno games.
VI. The price for a single card or play in keno games.
VII. The rental of facilities and the leasing of equipment for use in keno games.
VIII. Accountability controls to ensure game integrity, including, but not limited to, cash, attendance, prizes, income, expense and financial reporting, and record-keeping to be implemented by licensed charitable organizations in addition to the requirements set forth in RSA 287-E:37.
287-E:33 Copies of Records. The racing and charitable gaming commission shall forward copies of all records relating to keno licensing, taxes, and financial reports to the commissioner of the department of safety.
287-E:34 License Fees.
I. The keno license application fee shall be $25 per day.
II. Such fee shall be submitted to the racing and charitable gaming commission at the time the application for a keno license is filed and shall be refunded if the application is denied.
III. The license fee for a commercial premises keno license under RSA 287-E:35, VI shall be $250 per year. Such fee shall be submitted to the commission at the time the application is made and shall be refunded if the application is denied.
287-E:35 License Applications.
I. Applications shall be submitted to the commission by an officer, director, or duly authorized official of any charitable or business organization. Proof of authority to submit the application on behalf of the organization may be required.
II. Applications shall be made only on the forms supplied to the organization by the commission.
III. The application form shall be fully completed by the duly authorized officer, director, or official of the organization.
IV. Applications shall be submitted at least 15 days prior to the first game date of each month. This requirement may be waived by the commission for good cause shown.
V. The applicant shall certify under oath that:
(a) The information provided on the application is accurate.
(b) Only bona fide members of the charitable organization or employees of the applicant will operate the keno games.
(c) Neither the applicant nor his or her employees nor any member of the charitable organization who will operate the keno games has 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, or has violated the statutes or rules governing charitable gambling.
(d) The applicant and any employee or member of the charitable organization who will be participating in the operation of the keno games is aware of all statutes and rules applicable to the operation of keno games.
VI. If an applicant intends to lease or rent premises for the conduct of keno from an entity other than a charitable organization or governmental subdivision, the entity leasing or renting out the premises shall be licensed by the commission. The license shall be applied for by filing an application supplied by the commission. The commission may issue a license for a period of one year which shall expire on June 30 of each year unless sooner revoked or suspended for just cause by the commission.
VII. To be eligible for licensure under this subdivision a charitable organization shall:
(a) Document that it is exempt from federal income tax.
(b) Establish that the religious, civic, fraternal, veterans, or charitable purposes for which it was organized, other than charitable gambling, are furthered through activities conducted in the town or city in which the charitable organization is organized.
(c) Register, if required under RSA 7:19-32, with the director of charitable trusts.
(d) Maintain a current list of bona fide members.
287-E:36 Operation of Keno Games.
I.(a) Only bona fide members of the charitable organization or employees of the applicant shall operate keno games, except that, if all bona fide members of a charitable organization are under 18 years of age, adult officers or directors of the charitable organization or parents or legal guardians of bona fide minor members, who have been authorized by the officers or directors of the charitable organization, shall operate the games. Proof of bona fide membership shall be required.
(b) Notwithstanding subparagraph I(a), if, by reason of the established criteria for membership, all bona fide members of the charitable organization are physically or mentally disabled, or both, the officers, directors, or authorized officials of the charitable organization may designate individuals to conduct the operation of keno games on behalf of the charitable organization. Individuals so designated are subject to all applicable provisions of this subdivision, and the designation of such individuals is subject to the approval of the commission.
(c) Notwithstanding subparagraph I(a), all charitable organizations that conduct keno games for charitable purposes may allow spouses, sons, and daughters of bona fide members who are at least 18 years of age to assist with the operation of the keno games. A list of the names of the persons assisting shall be submitted to the department of safety prior to the scheduled keno event.
II. No compensation shall be paid to operators of a keno game solely for operating the game. Compensation shall include money or any other thing of value.
III. No person who has been convicted of a felony or class A misdemeanor within the previous 10 years which has not been annulled by a court, or a class B misdemeanor within the past 5 years which has not been annulled by a court, or who has violated any of the statutes or rules governing charitable gambling in the past in this or any other state shall operate a keno game licensed under this subdivision, or rent, lease, sublease, or otherwise provide any hall or keno paraphernalia for the conduct of keno licensed under this subdivision.
IV. No charitable organization shall act as an agent for operating keno games when it is unlawful for the charitable organization’s principal to conduct keno games.
V. The price to be paid for a single keno game shall be established by rules adopted by the commission.
VI. No fee shall be charged for admission to keno games.
VII. Raffles permitted under RSA 287-A and RSA 287-D may be conducted at the same time and in the same place as a keno game licensed under this subdivision.
VIII. All prizes, tokens, or awards used, given, offered or awarded in connection with any game or series of games conducted on one game date shall not exceed the total value of $3,500.
IX. All keno game paraphernalia or related equipment used in conducting keno games shall be subject to inspection and approval by the commission.
287-E:37 Financial Reports and Inspection Required.
I. An organization which has been licensed to conduct keno games shall submit a complete financial report to the racing and charitable gaming commission for each license issued under RSA 287-E:35 within 15 days after the expiration of each license, provided, however, a complete monthly financial report shall be submitted in a timely fashion to the racing and charitable gaming commission for each month covered by a license issued under RSA 287-E:35.
II. The financial report shall be completed by the treasurer of the charitable organization or a duly authorized officer, director, or official of the charitable organization or employee of the organization who shall certify such accounting under oath.
III. The financial report shall include:
(a) A complete statement of revenues and expenses.
(b) A record of the amount of prizes awarded.
(c) The names and addresses of the members of the organization who operated the licensed games.
(d) The name and address of any person, partnership, corporation or other entity from whom equipment used at the licensed games was rented or leased.
(e) The name and address of any person, partnership, corporation or other entity from whom premises were leased or rented to conduct the licensed games.
(f) The name and address of, and the fee paid to, any person, or business entity, who provided consulting, accounting, management, or other similar services to the organization for the operation of keno.
IV. All organizations licensed under this subdivision shall maintain a separate checking account for the deposit and disbursement of all income relating to keno, except cash prizes awarded at the games. All expenses shall be paid by check, and all prizes of $500 or more shall be paid by check. No keno funds shall be commingled with other funds of the organization. The organization shall retain all cancelled checks for the payment of expenses and prizes for at least 2 years from the date of the check. The organization shall not cash checks which it issues.
V. All financial reports filed by organizations shall be maintained by the racing and charitable gaming commission for a period of one year from the date of filing and shall be open to public inspection.
VI. All financial records pertaining to the operation of keno games shall be maintained by the treasurer of the charitable organization or other duly authorized director, officer or official of the charitable organization or employee of the business organization and shall be made available to representatives of the commission or of the commissioner of the department of safety upon request.
VII. An organization which has been licensed to conduct keno games shall maintain complete and accurate documentation of all revenues and expenses contained in the financial reports for at least 2 years from the date the financial report is filed.
287-E:38 Suspension; Revocation. The racing and charitable gaming commission may suspend or revoke the license of any licensee who violates any provision of this subdivision. Any licensee whose license is revoked shall not be eligible for licensure for a period of up to one year from the date of revocation.
287-E:39 Rehearing and Appeal. Any person aggrieved by a decision of the racing and charitable gaming commission to deny or revoke a keno license may apply to the racing and charitable gaming commission for a rehearing within 15 business days of the decision. Rehearings and appeals shall be governed by RSA 541.
287-E:40 Distributors and Manufacturers of Keno Supplies and Equipment. The racing and charitable gaming commission shall license distributors and manufacturers of electronic keno player systems sold, leased, or rented in this state. A distributor with a current New Hampshire license for distribution of lucky 7 tickets shall be authorized to distribute electronic keno player systems, and shall not be required to file for licensing under this section. All electronic keno player systems shall be purchased, leased, or rented from a licensed distributor and manufactured by a licensed manufacturer. A license shall be issued to a distributor or manufacturer under the following conditions, provided that the commission may, by rule, establish the following additional qualifications for licenses:
I. The applicant for a distributor’s license shall pay to the commission an annual license or license renewal fee of $10,000. Such fee shall authorize the distribution of electronic keno player systems within the state of New Hampshire and the warehousing of electronic keno player systems for subsequent sale out of state. A distributor with a current New Hampshire license for distribution of lucky 7 tickets shall not be required to pay the additional licensing fee under this section.
II. The applicant shall certify that neither the applicant nor any partner, officer, or director has been convicted of a felony, which has not been annulled by any court, within 10 years from the date of application.
III. Each licensee shall post a bond in the amount of $50,000, conditioned upon the licensee’s compliance with the rules of the racing and charitable gaming commission. A distributor with a current New Hampshire license for distribution of lucky 7 tickets shall not be required to post the bond under this section.
IV. An applicant for a license as a distributor shall have a principal place of business located within this state.
V.(a) The racing and charitable gaming commission shall issue a special license to manufacturers of electronic keno player systems leased, rented, or sold in the state. A manufacturer with a current New Hampshire license to manufacture lucky 7 tickets shall not be required to pay the licensing fee under this paragraph.
(b) The fee for such special license shall be $5,000 per year or for any part of a year.
2 Bingo and Lucky 7; Chapter Heading. Amend the chapter heading in RSA 287-E to read as follows:
BINGO, KENO, AND LUCKY 7
3 Reference Change; Powers of the Commissioner of Safety. Amend RSA 21-P:4, VI to read as follows:
VI. Have the discretion to grant to bingo, keno, and lucky 7 inspectors within the racing and charitable gaming commission certain limited police powers as follows:
(a) Power to serve criminal process.
(b) Power to make arrests for violations of RSA 287-E or any other laws or rules governing bingo, keno, and lucky 7 and to enforce and make arrests for violations of any criminal laws which they uncover incident to their enforcement of the bingo, keno, and lucky 7 law.
(c) Power to inspect premises that conduct bingo or lucky 7 or any records pertaining to bingo, keno, or lucky 7.
4 Cross Reference Change; New Hampshire Retirement System. Amend RSA 100-A:1, VII-a(b) to read as follows:
(b) Any bingo, keno, or lucky 7 inspector, security officer appointed pursuant to RSA 21-P:7-b, any juvenile probation and parole officer, or any person employed in the bureau of trails of the department of resources and economic development; or
5 Cross Reference Change; Police Standards and Training Council. Amend RSA 188-F:23, I to read as follows:
I. “Police officer” means any appointed or elected employee of a police department or any appointed employee of a sheriff’s department, the fish and game department, the department of safety, or any special agent appointed by the state liquor commission which is administered by the state or any of its political subdivisions and who is responsible for the prevention, detection or prosecution of crime or the enforcement of the penal, traffic, highway, boating, liquor, or bingo, keno, and lucky 7 laws of this state or any of its political subdivisions.
6 Effective Date. This act shall take effect July 1, 2013.
LBAO
12-2133
01/03/12
HB 1697-FN-A - FISCAL NOTE
AN ACT establishing keno in New Hampshire.
FISCAL IMPACT:
The Racing and Charitable Gaming Commission states this bill will increase state restricted revenue by $697,500 in FY 2014 and each year thereafter, and increase state restricted expenditures by $50,252 in FY 2014, $53,288 in FY 2015 and $56,695 in FY 2016. The Judicial Branch states this bill may increase state general fund expenditures by an indeterminable amount in FY 2014 and each year thereafter. The Department of Safety states this bill will increase state revenue and expenditures by an indeterminable amount in FY 2014 and each year thereafter. There is no fiscal impact on county and local revenue or expenditures.
METHODOLOGY:
The Racing and Charitable Gaming Commission states this bill allows for keno games to be played in the State. The Commission estimates sweepstakes revenue will increase by $697,500 in FY 2014 and each year thereafter based on issuing the following types of licenses:
License Type |
License Fee |
Number of Licenses |
Number of Days |
Total |
Charities License |
$25 |
225 |
120 |
$675,000 |
Facilities License |
$250 |
10 |
N/A |
$2,500 |
Distributor License |
$10,000 |
1 |
N/A |
$10,000 |
Manufacturer License |
$5,000 |
2 |
N/A |
$10,000 |
The Commission estimates it will need a program assistant (labor grade 12) to process the licensing applications, increasing sweepstakes expenditures. The Commission estimates salary and benefit costs are as follows:
FY 2014 |
FY 2015 |
FY 2016 | |
Salary |
$26,540 |
$27,515 |
$28,646 |
Benefits |
23,712 |
25,773 |
28,049 |
Total |
$50,252 |
$53,288 |
$56,695 |
The Judicial Branch states the fiscal impact to the Branch would involve any appeals to the supreme court of decisions of the racing and charitable gaming commission. The Branch has no information to determine how many appeals might be made or how many would be accepted by the supreme court to determine any increase in expenditures. However, the Branch states one appeal would have a fiscal impact greater than $10,000.
The Department of Safety states the fiscal impact of this bill cannot be determined. The bill will result in increased revenue from license fees and increased expenditures associated with enforcement of the keno laws. The Department grants police powers to the gaming officers enforcing the keno laws.
The Department of Justice states it may need to assist with the development of rules for keno but will be able to absorb this cost within its existing personnel and budget.