HB 485-FN-A – AS AMENDED BY THE HOUSE
29Jan2014… 2393h
29Jan2014… 0153h
29Jan2014… 0227h
2013 SESSION
08/04
HOUSE BILL 485-FN-A
SPONSORS: Rep. Keith Murphy, Hills 7; Rep. Kelleigh Murphy, Hills 7; Rep. Infantine, Hills?13
This bill:
I. Allows the operation and playing of keno games.
II. Provides for licensing of keno game operators by the lottery commission.
III. Directs revenues from keno to the department of health and human services to address problem gamblers and to the education trust fund.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
29Jan2014… 2393h
29Jan2014… 0153h
29Jan2014… 0227h
13-0695
08/04
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Thirteen
AN ACT establishing keno.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Subdivision; Keno. Amend RSA 284 by inserting after section 40 the following new subdivision:
284:41 Definition. In this subdivision, “keno” means any game where a player purchases a ticket from a field of 80 numbers and selects a specific amount of numbers. A random number generator employed by the lottery commission chooses 20 numbers at random and the player is paid out against his or her original wager.
284:42 Administration and Enforcement. The lottery commission shall administer and enforce this subdivision relative to keno games operating in a town or city that has voted to allow such gaming.
284:43 Rulemaking. The 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. Procedures for a hearing following the revocation of a license.
IV. The operation of keno games, including types and amounts of wagers.
V. Information required and forms for submission of financial reports.
284:44 License Fees.
I. The license fee for a commercial premises keno license under RSA 284:45 shall be $500 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.
II. All net proceeds collected by the commission under this section and RSA 284:46 shall be deposited in the education trust fund established under RSA 198:39.
284:45 License Applications.
I. Applications shall be submitted to the commission by the licensee. Proof of authority to submit the application on behalf of the licensee may be required.
II. Applications shall be made only on the forms supplied to the licensee by the commission.
III. The application form shall be fully completed by the licensee.
IV. Applicants for commercial premises keno licenses shall be submitted at least 30 days before the first game date.
V. The applicant shall certify under oath that:
(a) The information provided on the application is accurate.
(b) Neither the applicant nor any employee will operate keno games if such person 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 gaming.
(c) The applicant and any employee 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. To be eligible for licensure under this subdivision an applicant shall:
(a) Document that it is a liquor license holder under RSA 178:10-a, RSA 178:18, RSA?178:19, or RSA 178:20, and that the keno games will only be operated in towns and cities that have voted to allow the operation of keno games pursuant to RSA 284:50.
(b) Maintain a current list of employees.
284:46 Operation of Keno Games.
I. A licensee may operate keno games at his or her business between the hours of 11 a.m. and 11 p.m.
II. A licensee may retain 8 percent of the proceeds from keno games. Of the remaining 92 percent:
(a) One percent shall be paid to the department of health and human services to support research, prevention, intervention, and treatment services for problem gamblers.
(b) The remainder, less the administrative costs of the lottery commission and prize payouts, shall be deposited in the education trust fund established under RSA?198:39.
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.
284:47 Financial Reports and Inspection Required.
I. Any person or organization which has been licensed to conduct keno games shall submit a complete financial report to the commission for each license issued under RSA 284:45 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 commission for each month covered by a license issued under RSA 284:45 on a form to be approved by the lottery commission.
II. All licensees 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 licensee. The licensee shall retain all cancelled checks for the payment of expenses and prizes for at least 2 years from the date of the check. The licensee shall not cash checks which it issues.
III. All financial reports filed by the licensee shall be maintained by the commission for a period of one year from the date of filing and shall be open to public inspection.
IV. All financial records pertaining to the operation of keno games shall be maintained by the licensee and shall be made available to representatives of the lottery commission or of the commissioner of the department of safety upon request.
V. A licensee 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.
284:48 Suspension; Revocation. The 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.
284:49 Rehearing and Appeal. Any person aggrieved by a decision of the commission to deny or revoke a keno license may apply to the commission for a rehearing within 15 business days of the decision. Rehearings and appeals shall be governed by RSA 541.
284:50 Local Option.
I. Any town or city may allow the operation of keno games according to the provisions of this subdivision, in the following manner:
(a) In a town, the question shall be placed on the warrant of a special or annual town meeting under the procedures set out in RSA 39:3, and shall be voted on a ballot; provided, however, if the question is placed on the warrant at a special town meeting, it shall be the only question at such special town meeting. In a city, the legislative body may vote to place the question on the official ballot for any regular municipal election, or, in the alternative, shall place the question on the official ballot for any regular municipal election upon submission to the legislative body of a petition signed by 5 percent of the registered voters.
(b) The selectmen, aldermen, or city council shall hold a public hearing on the question at least 15 days but not more than 30 days before the question is to be voted on. Notice of the hearing shall be posted in at least 2 public places in the municipality and published in a newspaper of general circulation at least 7 days before the hearing.
(c) The wording of the question shall be substantially as follows: “Shall we allow the operation of keno games within the town or city?”
II. If a majority of those voting on the question vote “Yes,” keno games may be operated within the town or city.
III. If the question is not approved, the question may later be voted upon according to the provisions of paragraph I, provided, however, that the town may consider the question at no more than one special town meeting and the annual town meeting in the same calendar year.
4 Application of Receipts; Education Trust Fund. Amend RSA 6:12, I(b)(65) to read as follows:
(65) Money received under RSA 77-A, RSA 77-E, RSA 78, RSA 78-A, RSA 78-B, RSA?83-F, RSA 284:46 and from the sweepstakes fund, which shall be credited to the education trust fund under RSA 198:39.
5 Effective Date. This act shall take effect January 1, 2014.
LBAO
13-0695
Amended 03/25/14
HB 485-FN-A FISCAL NOTE
AN ACT establishing keno.
FISCAL IMPACT:
The Lottery Commission, Department of Health and Human Services, and New Hampshire Municipal Association, state this bill, as amended by the House (Amendments #2013-2393h, #2014-0153h, and #2014-0227h), may increase state revenues, and state and local expenditures by an indeterminable amount in FY 2015 and each year thereafter. There will be no impact on county and local revenues, or county expenditures.
METHODOLOGY:
The Lottery Commission states this bill allows for the operation and playing of keno games in the state of New Hampshire, subject to local approval. Under the bill, the Commission would be responsible for administration and enforcement of the game and revenues would be distributed as follows:
• $500 annual license fee to state education trust fund
• 8% of keno proceeds to licensee
• 92% of keno proceeds to state
o 1% to the Department of Health and Human Services to support research, prevention, intervention, and treatment services for problem gamblers;
o Remainder, less administrative costs of the Lottery Commission and prize payouts, to the state education trust fund
The Commission is unable to estimate in which fiscal year keno would commence as this bill requires a local approval prior to licenses being issued. However, for informational purposes, the Commission has provided the following annual estimates for full implementation applying stated assumptions:
• 250 licensed locations statewide, renewed annually
• During first six months of operation a licensed location would generate $150,000 and the subsequent full-year of operation, and each year thereafter, would generate $175,000 per location
• Prize structure set at 70% of sales
• Lottery administrative costs, including payments to gaming system provider, would be 2% of total keno proceeds
• Does not include estimated impacts to lottery revenues or any state taxes
License Revenue (250 x $500) |
$125,000 |
? |
? |
Total Keno Sales (250 x $175,000) |
$43,750,000 |
? |
? |
Retained by Licensee (8% of Proceeds) |
($3,500,000) |
Department of Health and Human Services (1% of Proceeds) |
($437,500) |
Less: Lottery Commission Administrative Costs (2% of Sales) |
($875,000) |
Prize Payouts (70% of Sales) |
($30,625,000) |
Education Trust Fund Revenue From Sales |
$8,312,500 |
? |
|
Net Revenue to Education Trust Fund |
$8,437,500 |
The Department of Health and Human Services states that based on current staffing levels for prevention and treatment service programs, the Department would need to establish one new full-time position. The Department states additional funds will be used for media advertising and outreach, information development and dissemination, data collection and research to determine the scope of problem gambling and effectiveness of interventions and contracts for outpatient gambling addiction. This bill allocates 1 percent of keno proceeds to the Department to support programs to treat problem gaming. The Department projects costs as follows:
? |
FY 2015 |
FY 2016 |
FY 2017 |
FY 2018 |
Salary and Benefits for 1 Employee: |
$0 |
$0 |
$70,759 |
$74,184 |
Operating Expense |
$0 |
$0 |
$9,000 |
$9,000 |
Equipment |
$0 |
$0 |
$1,500 |
$0 |
Contract Costs |
$172,500 |
$402,500 |
$321,241 |
$319,316 |
Total Costs |
$172,500 |
$402,500 |
$402,500 |
$402,500 |
The New Hampshire Municipal Association states this bill establishes a procedure for municipal approval as a condition to the operation of keno games. The Association states the bill allows for such approval by the voters at a regular municipal election in a city or at a regular or special town, however the governing body would be required to hold a hearing before the meeting or election at which the question is considered, with notice of the meeting to be posted in two public places and published in a newspaper. The Association states a municipality may incur expenses relative to holding a hearing and publishing notices in a newspaper, however it cannot estimate how much such costs may be.