Revision: March 15, 2013, midnight
SB 75 – AS AMENDED BY THE SENATE
03/14/13 0793s
2013 SESSION
08/09
SENATE BILL 75
AN ACT relative to games of chance.
This bill makes various changes to the statutes governing games of chance.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
03/14/13 0793s
13-0987
08/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Thirteen
AN ACT relative to games of chance.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Compensation Paid to Game Operators. Amend RSA 287-D:2-b, II to read as follows:
II. No compensation shall be paid to [operators] an operator of a game of chance under RSA 287-D:2-b, I(b), unless agreed to in advance in writing by the charity. Compensation shall include, but is not necessarily limited to, money or any other thing of value. If the paid game operator’s compensation is contingent upon the amount of revenue received from a game of chance, the compensation shall be a fixed percentage of the gross revenue from the game of chance excluding the paid game operator's expenses. [If the compensation of a paid game operator is not contingent upon the amount of revenue received, the compensation shall be a reasonable estimate, expressed as a percentage of the gross revenue. The contract shall clearly disclose the assumptions upon which the estimate is based. The stated assumptions shall be based upon all of the relevant facts known to the paid game operator regarding the services to be provided and the past performance of games of chance operated by the paid game operator.]
2 Number of Games of Chance on a Licensed Game Date. Amend RSA 287-D:2-d, V to read as follows:
V. No more than [2] one licensed charitable organizations may conduct games of chance at any one location on any specified licensed game date.
3 License Issued. Amend RSA 287-D:2-d, II to read as follows:
II. An applicant for a game of chance facility license under RSA 287-D:2-a, VI shall apply to the racing and charitable gaming commission, and upon payment of a fee of $250 per year and if the applicant meets all other requirements of this chapter, a license shall be issued. Only one license shall be issued to each applicant per year. A license issued under RSA 287-D:2-a, VI shall expire on June 30. The license issued shall include all square footage and contiguous areas within the licensed premises.
4 Pari-Mutuel Commission; Reference Changed. Amend RSA 287-D:3, II to read as follows:
II. All devices and equipment used to conduct said games of chance shall be subject to inspection by duly authorized law enforcement or [pari-mutuel] racing and charitable gaming officials.
5 Fees. Amend RSA 287-D:3, VI-VIII to read as follows:
VI. Any contract for the rental of a licensed facility for a game of chance shall be independent of any contract for the rental of equipment. If a charitable organization hires a game operator employer or primary game operator to conduct games of chance on its behalf then the charitable organization shall not pay any fees, including but not limited to fees for the rental, lease, use or otherwise to the facility license holder or facility owner. Any fees, including but not limited to fees for the rental, lease, use or otherwise shall be paid by the game operator employer or the primary game operator retained by the charitable organization to conduct games of chance. Those contracts shall not be contingent upon the charitable organization's agreement that it will contract with a particular business for a particular facility or equipment and any contracts between a charitable organization and the facility license holder or facility owner shall specifically state that the rental, lease or, use fee is “zero dollars”.
VII. [Unless a charitable organization rents a facility from a game operator employer or a primary game operator licensed under RSA 287-D:2-c, the charitable organization shall only rent a facility by means of a fixed rental payment. The fixed rental payment shall not be based on a percentage of what the charitable organization receives from the game of chance and it shall reflect fair rental value of the property for any use not just as a place to hold a game of chance.] If a charitable organization rents, leases, or uses a licensed facility [from a licensed game operator under RSA 287-D:2-c], the charitable organization shall retain no less than 35 percent of the gross revenues from any games of chance minus any prizes paid in accordance with RSA 287-D:3, VIII. Any rental, lease, or use agreement entered into by the charitable organization shall be submitted with the charitable organization's license application for review by the racing and charitable gaming commission. Under no circumstances shall a charitable organization sustain any loss from games of chance, such that its share of the gross revenues minus any prizes paid is less than zero dollars, during a license period with a single game operator. All contracts between a game operator employer and a charitable organization to conduct games of chance, and any contracts between a charitable organization and a licensed facility holder or licensed facility owner under this chapter shall contain the following language: “This agreement represents the entire agreement between the parties hereto. No charge or fee of any kind that is not contained in this agreement shall be paid by the charity.”
VIII. The charitable organization shall retain no less than 35 percent of the gross revenues from any game of chance minus any prizes paid on any game date in which game operators licensed under RSA 287-D:2-c are involved in any capacity. Such revenues shall be used by the organization to advance its charitable purpose. No fee for any service which is required by or provided by the game operator employer or primary game operator shall be allowed unless such fee is agreed to in writing and [disclosed to] approved by the commission as part of the agreement between the game operator employer or primary game operator and the charity. A game operator employer or primary game operator, hired by a charitable organization to conduct games of chance on its behalf, shall not charge or assess any fees, to the charitable organization for the providing of any services or the collection of any reimbursements including but not limited to any accounting fees, any administrative fees, any advertising fees, any financial paperwork fees, any marketing fees, or any law enforcement or security fees.
6 Financial Report and Audit. Amend RSA 287-D:5, VI to read as follows:
VI. All financial records pertaining to the games of chance shall be maintained by the treasurer of the charitable organization or other duly authorized director, officer, or official of the charitable organization and shall be made available to the racing and charitable gaming commission, the attorney general or the chief of police of any city or town where games of chance are held upon request. The racing and charitable gaming commission may audit [such financial records] review or inspect any and all financial records, books, documentation, and bank accounts in the name of the charitable organization, whether or not such accounts pertain to games of chance.
7 New Paragraph; Criminal Records Check. Amend RSA 287-D:8 by inserting after paragraph VI the following new paragraph:
VII. For purposes of a games of chance facility license, under RSA 287-D:2-d, each owner, partner, trustee or otherwise of the underlying property, or in the case of a corporation, each officer, director, or shareholder, or in the case of a limited liability company, each manager or member, shall submit to and comply with all of the requirements of RSA 287-D:8. This section shall not apply to publicly traded companies registered with the stock exchange.
8 License Fees and Specifications. Amend RSA 287-D:2-d, II to read as follows:
II. An applicant for a game of chance facility license under RSA 287-D:2-a, VI shall apply to the racing and charitable gaming commission, and upon payment of a fee of $250 per year and if the applicant meets all other requirements of this chapter, a license shall be issued. Only one license shall be issued to each applicant per year. A license issued under RSA 287-D:2-a, VI shall expire on June 30. Any owner or entity of the underlying property encompassing the facility license, as well as any facility license holder or licensee, shall not lease, rent, enter into any agreements or allow any use of any unauthorized device in any manner.
9 Transfer to Special Fund. Amend RSA 287-D:3, IX-X to read as follows:
IX. In games where chips have no monetary value, 3 percent of all funds collected from players, less moneys used by the racing and charitable gaming commission to fund authorized personnel expenses and related costs, shall be paid to the state treasurer to be deposited into the [general] special fund established in RSA 284:21-j. Such payments shall be made within 5 business days of the game date on which the funds were collected.
X. In games where chips have monetary value, 10 percent of the rake or house winnings and other moneys collected by the game operator that are not paid out as prizes to players, less moneys used by the racing and charitable gaming commission to fund authorized personnel expenses and related costs, shall be paid to the state treasurer for deposit into the [general] special fund established in RSA 284:21-j. Such payments shall be made within 5 business days of the game date on which the funds were collected.
10 Transfer to Special Fund. Amend RSA 284:12-a, II to read as follows:
II. Investigation fees shall be collected by the commission and shall be continually appropriated to the commission and used by the commission to offset the costs of conducting background checks and monitoring of license applicants and licensees as required under this section, RSA 284:16, RSA 284:16-a, RSA 284:18-a, RSA 284:19, RSA 284:20, RSA 284:20-b, RSA 284:22, and RSA 284:22-a. Funds received hereunder and not expended for such investigations shall lapse to the [general] special fund established in RSA 284:21-j 2 years after receipt of such funds.
11 Transfer to Special Fund. Amend RSA 284:31 to read as follows:
284:31 Unclaimed Ticket Money. On or before January 31 of each year every person, association, or corporation conducting a race or race meet, whether live racing or simulcast racing, hereunder shall pay to the state treasurer all moneys collected during the previous year of pari-mutuel pool tickets and vouchers which have not been redeemed. The books or records of said person, association, or corporation, which clearly show the tickets entitled to reimbursement in any given race, live or simulcast, shall be forwarded to the commission. Such moneys shall become a part of the [general funds of the state] special fund established in RSA 284:21-j. The state treasurer shall pay the amount due on any ticket or voucher to the holder thereof from funds not otherwise appropriated upon an order from the commission. Pari-mutuel tickets and vouchers which remain unclaimed after 11 months shall not be paid. Vouchers shall be remitted to the state treasurer on January 31 of the calendar year, 24 months after the year of the unclaimed voucher.
12 Transfer to Special Fund. Amend RSA 284:32-b, I to read as follows:
I. Every person, association or corporation required to submit an annual statement pursuant to RSA 284:15-b or an annual financial report pursuant to RSA 284:32-a who fails to submit such statement or report within the required time period shall be subject to a civil forfeiture of up to $500 for each day of a continuing violation. Civil forfeitures shall be levied under this section by the state racing and charitable gaming commission, shall be collected by the attorney general, and shall be deposited in the [general fund as unrestricted revenue] special fund established in RSA 284:21-j. Such civil penalty shall be in addition to and not a substitute for any other civil or criminal penalty provided by law, including RSA 284:21.
13 Repeal. RSA 287-D:2-b, II-a, relative to reimbursement of game operator’s out-of-pocket expenses, is repealed.
14 Effective Date. This act shall take effect January 1, 2014.