Revision: Jan. 11, 2023, 10:49 a.m.
2023 SESSION
23-0790.1
02/04
SENATE BILL [bill number]
SPONSORS: [sponsors]
COMMITTEE: [committee]
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ANALYSIS
This bill regulates online gambling and directs the net proceeds to a newly established community college education scholarship 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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
23-0790.1
02/04
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Three
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Subparagraph; Online Gambling. Amend RSA 647:2, V by inserting after subparagraph (f) the following new subparagraph:
(e) Gambling done over an internet connection on a website on the internet.
2 New Subdivision; Community College Scholarship Program and Fund. Amend RSA 195-H by inserting after section 14 the following new subdivision:
Community College Scholarship Program and Fund
195-H:15 Definitions. In this subdivision:
I. "Eligible institution" means a postsecondary educational institution within the community college system of New Hampshire as defined in RSA 188-F.
II. "Eligible student" means a first-year, full-time, Pell Grant-eligible student who meets the eligibility and residency requirements of RSA 195-H:17. "First-year" means a student who has never enrolled in an eligible institution.
III. "Full-time" means an enrolled student who is carrying an academic course load that is determined to be full-time by the eligible institution based on a standard applicable to all students enrolled in a particular educational program. The student's course load may include any combination of courses, work, research, or special studies that the eligible institution considers sufficient to classify the student as full-time.
195-H:16 Community College Scholarship Program and Fund Established.
I. There is hereby established the community college scholarship program and the community college scholarship fund. The program and fund shall be administered by the community college system of New Hampshire board of trustees. The fund shall be kept distinct and separate from all other funds and shall be used to provide scholarships which a recipient shall apply to the costs of an education at an eligible institution. The funds shall be distributed to an eligible institution based on the number of eligible students awarded a scholarship and upon receipt of a request for reimbursement for such scholarship funds accompanied by appropriate documentation.
II. The state treasurer shall credit to the fund any appropriation relating to the community college scholarship fund made in each fiscal year to the board. The state treasurer shall invest the fund in accordance with RSA 6:8. Any earnings shall be added to the fund.
III. All moneys in the fund shall be nonlapsing and continually appropriated to the board for the purposes of this subdivision.
IV. The board may institute promotional programs and solicit and receive cash gifts or other donations for the purpose of supporting educational scholarships from the fund. The board shall not solicit or accept real property.
V. All gifts, grants, and donations of any kind shall be credited to the fund.
195-H:17 Eligibility.
I. Any person who meets the following requirements shall be an eligible student:
(a) A person shall meet the residency requirements of RSA 193:12; be a graduate of a New Hampshire high school, public academy, chartered public school, New Hampshire private preparatory high school, or a high school-level home education program as defined in RSA 193-A; have received a New Hampshire high school equivalency certificate; have completed at least 3 years of high school in this state; be pursuing a certificate, or associate degree at an eligible institution in this state; and be eligible to receive a Pell grant; or
(b) A person shall be a graduate of a preparatory high school outside of this state while a dependent of a parent or legal guardian who is a legal resident of this state and who has custody of the dependent; or
(c) A person shall have a parent or guardian who has served in or has retired from the United States Army, Navy, Air Force, Marine Corps, or Coast Guard within the last 4 years and is a resident of this state; or
(d) A person shall be a graduate of a high school, public academy, chartered public high school, or a high school-level home education program outside of this state but have maintained his or her primary residence in this state for not less than 5 years preceding the date of application for a scholarship.
II. A person shall meet the qualifications for academic performance or work experience as established by the board of trustees.
III. A person shall not have been adjudicated delinquent or convicted or pled guilty or nolo contendere to any felonies or any second or subsequent alcohol or drug-related offenses under the laws of this or any other state, or under the laws of the United States, except that an otherwise eligible person who has been adjudicated delinquent or has been convicted or pled guilty or nolo contendere to a second or subsequent alcohol or drug-related misdemeanor offense shall be eligible or continue to be eligible for a scholarship after the expiration of one academic year from the date of adjudication, conviction, or plea.
IV. A person shall have an annual household income at the time the student applies for the program of less than or equal to 300 percent of the federal poverty guidelines as updated annually in the Federal Register by the United States Department of Health and Human Services under 42 U.S.C. section 9902(2). No income threshold need be met in subsequent years, provided the student otherwise qualifies.
195-H:18 Procedures.
I. All scholarship funds shall be distributed to the eligible student by the eligible institution. The institution shall include the scholarship in the student's financial aid package and may seek subsequent reimbursement. The state shall provide the reimbursements twice per year to each eligible institution for the number of eligible students enrolled in the current semester or term who are receiving a scholarship. The institution shall submit the list of scholarship recipients to the board of trustees or its designee no later than November 30 and April 30 of each academic year, and shall be reimbursed within 30 days of submission.
II. An eligible student may receive a scholarship in the amount of half the cost of tuition per year provided he or she maintains at least a 2.0 grade point average. An eligible student may receive a scholarship in the amount of the full cost of tuition per year provided he or she maintains at least a 2.5 grade point average. The eligible institution shall not reduce any merit or need-based grant aid that would have otherwise been provided to the eligible student. An eligible student may receive an annual scholarship for a maximum of 2 years.
III. In the event the state does not reimburse the eligible institution for scholarship amounts paid to an eligible student receiving an award, the eligible institution shall agree not to seek additional payments from the eligible student and to absorb the loss of funds without any consequence to the eligible student.
IV. The board of trustees shall adopt rules, pursuant to RSA 541-A, relative to awarding and disbursing scholarship funds to an eligible student enrolled in an eligible institution.
V. The board of trustees may hire staff or enter into a contract for services or personnel necessary to administer the program.
3 New Chapter; Online Gaming. Amend RSA by inserting after chapter 287-I the following new chapter:
CHAPTER 287-J
Online Gaming
287-J:1 Definitions. In this chapter:
I. "Agent" means a party who is authorized by contract or agreement with the commission to conduct online gaming.
II. "Authorized online gaming bettor" means an individual 18 years of age or older who is physically present in the state of New Hampshire when placing an online gaming wager with the commission or an authorized agent of the commission and is not a prohibited online gaming bettor.
III. "Commission" means the lottery commission.
IV. "Director" means the executive director of the lottery commission or designee.
V. "Online gaming wagering platform" means the combination of hardware, software, and data networks used to manage, administer, record, and/or control online gaming wagers.
VI. "Online gaming wager" means cash or cash equivalent paid by an individual to participate in online gaming wagering.
VII. "Online gaming" means games of chance as defined by RSA 287-D:1, III and electronic gaming devices as defined by RSA 284:6-a, VI, offered on a website, mobile platform, or online gaming wagering platform.
VIII. "Prohibited online gaming bettor" means:
(a) Any member or employee of the commission and any spouse, child, sibling, or parent residing in the same household as a member or employee of the commission.
(b) Any principal or employee of any agent.
(c) Any contractor of the commission or its agents when such contract relates to the conduct of online gaming wagering.
(d) Any contractor or employee of an entity that conducts online gaming wagering in another jurisdiction when the bettor possesses confidential nonpublic information as a result of his or her contract or employment relating to the wager being placed.
(e) Any individual placing a wager as an agent of or proxy for a prohibited online gaming bettor.
(f) Any person under the age of 18.
287-J:2 Online Gaming Wagering Authorized. The commission and its agents are authorized to operate an online game wagering platform by mobile devices or over the Internet. With respect to online gaming wagers, the commission, either independently, or through its agent, shall provide:
I. Age verification measures to be undertaken to block access to and prevent online gaming wagers by persons under the age of 18 years.
II. Identity verification through secure online databases or by examination of photo identification.
III. That online gaming wagers must be initiated and received within the geographic borders of the state of New Hampshire and shall not be intentionally routed outside of the state. The incidental intermediate routing of a mobile online gaming wager shall not determine the location or locations in which such a wager is initiated, received, or otherwise made.
IV. Wager limits for daily, weekly, and monthly amounts consistent with the best practices in addressing problem gambling.
V. A voluntary self-exclusion program for players to self-exclude themselves from wagering for set periods of time.
VI. Security mechanisms to ensure the confidentiality of wagering and personal and financial information except as otherwise authorized by this chapter.
287-J:3 Online Gaming Wagering Supervision. The commission shall create a division of online gaming wagering which shall be responsible for ensuring compliance with the requirements of this chapter and any rules adopted by the commission in accordance with the authorities granted under this chapter. In addition, the division, under the direction of the director and commission, shall ensure that the commission's agents and vendors comply with the following obligations:
I. Each agent or vendor engaged in online gaming wagering shall submit a security and internal control report for the division's review and approval prior to conducting any online gaming wagering within the state and every year thereafter. This report shall address all aspects of security and controls including physical security, personnel security, and computer systems security including:
(a) Employment background checks and policies.
(b) Automated and manual risk management procedures.
(c) Procedures for identifying and reporting fraud and suspicious conduct.
(d) Procedures to establish connectivity with monitoring services or online gaming governing bodies relating to suspicious activity.
(e) Any and all monitoring systems utilized by the agents or vendor to report and receive information on suspicious betting activities.
(f) Systems and procedures to prevent prohibited online gaming bettors from placing wagers.
(g) Description of anti-money laundering compliance standards.
(h) Descriptions of all integrated third-party systems or components and the security procedures relating to those systems.
II. For each wagering computer system used to conduct online gaming wagering, including all mobile online gaming wagering platforms within the state, the agent or vendor providing such system shall provide a detailed computer system security report to be approved by the commission prior to the acceptance of wagers and each year thereafter. The report shall address the issues set forth in the security and internal control report along with the following:
(a) Documented system security testing performed by a licensed third-party contractor approved by the commission.
(b) A description of all software applications that comprise the system.
(c) A procedure for third-party auditing of financial transactions received by the system.
(d) A description of all types of wagers supported by the system.
(e) Unique identification and verification systems for wagers.
(f) Procedures to prevent past posting of wagers.
(g) A list of data recorded relating to each wager.
(h) System redundancy to ensure recording of wagers during a system outage.
(i) A mechanism to provide read only access to the commission to the back office system for the purposes of reviewing and auditing wagering activities.
(j) Integration with an independent control system to ensure integrity of system wagering information.
(k) Capabilities for canceling existing wagers, freezing or suspending wagering across the platform, or for specific events.
(l) Any other issue identified by the division upon review of the proposed gaming system.
III. Each agent engaged in online gaming wagering shall submit house rules for the division's review and approval prior to conducting any online gaming wagering within the state and every year thereafter. These house rules shall include at a minimum:
(a) The method for calculation and payment of winning wagers.
(b) The method of notifying bettors of odds or proposition changes.
(c) Acceptance of wagers at terms other than those posted.
(d) Expiration dates for winning tickets.
(e) Circumstances under which the agent will void a bet.
(f) Treatment of errors, late bets, and related contingencies.
(g) Method of contacting the agents or vendor for questions or complaints.
(h) Description of those persons who are prohibited from wagering with the agents or contractor if broader than the prohibited bettors list set forth in this section.
(i) The method and location for posting and publishing the approved house rules.
IV. Each agent or vendor engaged in online gaming wagering shall submit accounting controls for the division's review and approval prior to conducting any online gaming wagering within the state and every year thereafter. These accounting controls shall include at a minimum:
(a) A process for documenting and verifying beginning of day cash balance.
(b) Processes for recording collection of wagers, payment of wagers, and cancellation of wagers issued.
(c) The establishment of a segregated account related to New Hampshire online gaming wagering activities.
V. The commission's agents shall submit a responsible gaming plan for the division's review and approval prior to conducting any online gaming wagering within the state and every year thereafter. This plan should include identification of posting and materials related to problem gaming, resources to be made available to bettors expressing concerns about problem gaming, house imposed player limits, and self-exclusion programs.
VI. The commission's agents shall maintain a cash reserve available to pay wagers as determined by the commission.
VII. The commission's agents or vendor shall not accept any wager unless it has received approval from the commission to conduct that type or category of wager. A type of wager refers to the method of determining the outcome of the wager. The category refers to the kind of event being wagered on. The commission shall approve wager categories and types in a reasonable time frame. Once a particular category or wager type is approved for its first use it may be used on multiple events without further approval.
VIII. The commission shall only approve wagers on categories of events where:
(a) The outcome can be verified.
(b) The outcome can be generated by a reliable and independent process.
(c) The event is conducted in conformity with applicable laws.
IX. Wagers made under this section shall be made with:
(a) Cash.
(b) Cash equivalent.
(c) PayPal.
(d) Debit card.
(e) ACH.
(f) Promotional funds.
(g) Any other means approved by the executive director.
X. Any agent or contractor who sends or receives online gaming wagers is responsible to ensure that any transfer of that wager is initiated and received and completed within the state of New Hampshire and that only incidental intermediate routing of the wager occurs outside of the state. The agent and contractor shall be responsible for periodically reviewing their information technology systems and networks to ensure compliance with this section.
287-J:4 Proceeds to Education Fund. The proceeds received by the commission from online gaming wagering, less the administrative costs of the commission, prizes paid, and payments for problem gambling services, shall be deposited in the community college scholarship fund established in RSA 195-H:16.
287-J:5 Limitations on Online Gaming Wagers. The commission and its agents are prohibited from the following activities:
I. Accepting or making payment relating to online gaming wagers made by prohibited online gaming bettors.
II. Accepting online gaming wagers from persons who are physically outside of the state of New Hampshire at the time of the online gaming wager.
287-J:6 Risk Management. The commission's agents may take any risk management strategies as authorized by the director.
287-J:7 Financial Reports. The commission may seek financial and compliance reports from its agents periodically and may conduct audits of these reports to ensure that the state receives the agreed upon revenue sharing proceeds.
287-J:8 Compliance Reviews. The commission shall retain oversight of its agents to ensure that all online gaming wagering activities are conducted in accordance with this chapter and any rules adopted by the commission.
287-J:9 Rulemaking. The commission shall adopt rules, pursuant to RSA 541-A, relative to the operation, conduct, location, and oversight of online gaming wagering. The commission may enact emergency rules, which will take effect upon approval.
287-J:10 Prohibition on Authorization of Online Gaming Agents Operating in Terror States and Illegal Markets.
I. Prior to the authorization of an agent under this section, the commission shall conduct a comprehensive investigation of the prospective agent to determine whether the agent or any of its affiliates, including entities under common control, is knowingly:
(a) Accepting revenue, directly or indirectly, derived from any jurisdiction sanctioned by the Office of Foreign Assets Control (OFAC) of the United States Treasury; or
(b) Accepting or assisting, directly or indirectly, in the acceptance of online wagers or consideration related to online wagering from any country in which such online gaming is prohibited or illegal.
II. The commission shall not authorize an agent under this section if the commission determines that the agent or any of its affiliates, including entities under common control, is knowingly:
(a) Accepting revenue, directly or indirectly, derived from any jurisdiction sanctioned by the Office of Foreign Assets Control (OFAC) of the United States Treasury Department; or
(b) Accepting or assisting, directly or indirectly, in the acceptance of online wagers or other consideration related to online wagering from any country in which such online gaming is prohibited or illegal.
III. If at any time during authorization the commission determines that the agent or any of its affiliates, including entities under common control, is knowingly:
(a) Accepting revenue, directly or indirectly, derived from any jurisdiction sanctioned by the Office of Foreign Assets Control (OFAC) of the United States Treasury Department; or
(b) Accepting or assisting, directly or indirectly, in the acceptance of online wagers or other consideration related to online wagering from any country in which such online gaming is prohibited or illegal, the commission shall impose discipline up to and including revocation of the license held by the agent.
4 Effective Date. This act shall take effect January 1, 2024.