SB 136-FN – AS AMENDED BY THE SENATE

03/16/11 0687s

03/23/11 0999s

03/23/11 1147s

2011 SESSION

11-1032

08/03

SENATE BILL 136-FN

AN ACT relative to games of chance.

SPONSORS: Sen. Odell, Dist 8

COMMITTEE: Ways and Means

AMENDED ANALYSIS

This bill:

I. Defines game operator employers.

II. Requires that game operators pay charities participating in charitable gaming no later than 15 business days following a game date.

III. Raises the amount of bond required for conducting games of chance.

IV. Requires charitable organizations to collect certain fees on lucky 7 deals and pay them to the racing and charitable gaming commission.

V. Allows private campgrounds and hotels to conduct certain bingo games without a license.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

03/16/11 0687s

03/23/11 0999s

03/23/11 1147s

11-1032

08/03

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Eleven

AN ACT relative to games of chance.

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

1 Unclaimed Ticket Vouchers. 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. 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.

2 Definitions; Game Operator. Amend RSA 287-D:1, V to read as follows:

V. “Game operator” means:

(a) “Primary game operator” which means any consultant or any person other than a bona fide member of the charitable organization, involved in conducting, managing, supervising, directing, or running the games of chance; or

(b) “Secondary game operator” which means any person other than a bona fide member of the charitable organization, involved in dealing, running a roulette wheel, [or] handling chips, or providing accounting services or security functions.

(c) “Game operator employer” means a primary game operator or a business entity who employs, supervises, and controls game operators and who is hired by a charitable organization to operate games of chance on its behalf. The owner, partner, managing member, or chief executive of a business entity who servers as a game operator employer must be licensed as a primary game operator.

3 Operation of Games of Chance; Game Operators. Amend RSA 287-D:2-b, I(d) to read as follows:

(d) Notwithstanding subparagraph (a), all charitable organizations that conduct games of chance for charitable purposes may employ, by means of a written agreement, a [primary] game operator employer or a primary game operator licensed under RSA 287-D:2-c to operate games of chance on their behalf.

4 Operation of Games of Chance; Game Operators. Amend RSA 287-D:2-d, III to read as follows:

III. An applicant for a primary game operator license under RSA 287-D:2-c shall apply to the racing and charitable gaming commission, and if the applicant meets all other requirements of this chapter and pays the fee established by the racing and charitable gaming commission in rules adopted pursuant to RSA 541-A, a license shall be issued. A primary game operator license issued under RSA 287-D:2-c shall expire on December 31. The racing and charitable gaming commission shall notify the attorney general and police chief of any city or town where games of chance are held of any applications approved. RSA 7:28-c shall not apply to game operator licensees subject to this chapter. An applicant for a secondary game operator license under RSA 287-D:2-c shall apply to the racing and charitable gaming commission, and if the applicant meets all other requirements of this chapter and pays the fee established by the racing and charitable gaming commission in rules adopted pursuant to RSA 541-A, which shall not exceed $45, a license shall be issued. A secondary game operator license issued under RSA 284-D:2-c shall expire on the last day of the month of the licensee’s birthday.

5 Operation of Games of Chance; Game Operators. Amend RSA 287-D:2-d, VI to read as follows:

VI. Any license issued under RSA 287-D:2-a or RSA 287-D:2-c shall not be transferable and the fees for the license shall not be refunded except for good cause shown as specified in rules adopted by the racing and charitable gaming commission. Nothing in this section shall prevent a licensee from working for different licensed entities. A licensee who works for more than one game operator employer during the licensed period shall have a separate badge for each game operator employer and pay a separate fee for each badge.

6 Bond; Game Operators. Amend RSA 287-D:2-b, VIII to read as follows:

VIII.(a) On game dates where the charitable organization operates the games, the charitable organization shall deposit cash and proceeds from a game of chance into the account required by RSA 287-D:2-a, VII(e). All expenses, including [prizes of more than $500] prizes of $500 or more and equipment and hall rental fees shall be paid by check from the account required by RSA 287-D:2-a, VII(e). The treasurer of the charitable organization shall document all prizes awarded as prescribed in rules adopted by the racing and charitable gaming commission.

(b) On game dates where the licensed game operator operates the games, the licensed game operator shall deposit cash and proceeds from a game of chance into the account required by RSA 287-D:2-c, VI. All expenses, including [prizes of more than $500 and] equipment and hall rental fees shall be paid by check or electronic fund transfers from the account established in RSA 287-D:2-c, VI. The licensed game operator shall document all prizes awarded as prescribed in rules adopted by the racing and charitable gaming commission. Prizes of $500 or more shall be paid by check from the account established in RSA 287-D:2-c, VI.

7 Bond; Game Operators. Amend RSA 287-D:2-c, V to read as follows:

V. Prior to conducting any games of chance, the game operator or the game operator’s employer shall submit a bond for each location where the game operator is conducting games of chance, conditioned upon the game operator running games of chance in conformity with this chapter and with the rules and regulations prescribed by the racing and charitable gaming commission, in the amount of up to [$300,000] $500,000 but not less than $25,000 to the racing and charitable gaming commission with the application form. The amount of the bond in excess of $25,000 established for each licensee shall be based on that licensee’s normal outstanding obligations of charity payments and state taxes.

8 New Paragraph; Licensing of Game Operators. Amend RSA 287-D:2-c by inserting after paragraph VII the following new paragraph:

VIII. Unless a provision to the contrary is part of a written agreement in place prior to the commencement of a game date between the charitable organization and the game operator or game operator employer, all moneys due to the charitable organization shall be paid over to the organization no later than 5 business days following the date on which a game was conducted. Notwithstanding the provisions of any agreement with the charitable organization, the game operator or game operator employer shall pay over all moneys due to the charitable organization no later than 15 business days following a game date.

9 Wagering; Game Operators. Amend RSA 287-D:3, VII to read as follows:

VII. Unless a charitable organization rents a facility from a [primary] 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 a 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 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.

10 Wagering; Game Operators. Amend RSA 287-D:5, I to read as follows:

I. A charitable organization [or], a licensed [primary] game operator employer, or a primary game operator under contract to conduct games of chance on behalf of a charitable organization and designated by the charitable organization to be responsible for submitting financial reports shall submit a complete financial report for all game dates licensed under RSA 287-D:2 and RSA 287-D:2-a to the racing and charitable gaming commission on forms approved by the racing and charitable gaming commission within 15 days of the end of each month during which a game of chance was held.

11 Operation of Bingo Games; Penalty Added. Amend RSA 287-E:7, XVI to read as follows:

XVI. In not more than one game conducted in accordance with [RSA 287-E:7,] paragraph XIII, a carry-over, cover-all game may be run with the prize money rolled over to the successive game dates in the event that there is no winner on the original or preceding game dates. Notwithstanding any provision of law to the contrary, the prize money may accumulate until there is a winner. The prize shall be awarded to any winner covering all 24 numbers on the card in less than 50 numbers, or a greater number if so designated prior to the game. If there is no winner on a given game date, a pre-designated consolation prize shall be awarded to the game winner who first achieves cover-all. The balance of the [monies] moneys collected shall be carried over to subsequent game dates until there is a winner. Any person who purposely, knowingly, or recklessly deprives a charitable organization of any of its moneys collected from bingo or lucky 7 or any person who purposely, knowingly, or recklessly deprives players of any prizes collected from bingo or lucky 7, shall be guilty of a class A felony.

12 Reference Change; Financial Reports and Inspection Required. Amend RSA 287-E:9, I to read as follows:

I. A charitable organization which has been licensed to conduct bingo games shall submit a complete financial report to the commission for each license issued under RSA 287-E:6 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 287-E:6, I-a] RSA 287-E:6, II.

13 Reference Change; Financial Reports and Inspection Required. Amend RSA 287-E:9, IV to read as follows:

IV. All charitable organizations licensed under this chapter shall maintain a separate checking account for the deposit and disbursement of all income relating to bingo and lucky 7, 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] or electronic funds transfers. All prizes of $500 or more shall be paid by check. There shall be no commingling of bingo and lucky 7 funds with other funds of the charitable organization. The organization shall retain all cancelled checks for the payment of expenses and prizes for at least 2 years. The organization may cash checks which it issues.

14 Campground Bingo. Amend RSA 287-E:12 to read as follows:

287-E:12 Bingo [License] for Private Campgrounds and Hotels. Any private campground or hotel may [apply to the commission for a special campground or hotel bingo license. Licenses may be granted under the following conditions] conduct bingo games provided:

[I. The bingo license application fee shall be $25 per year and shall be nonrefundable.

II. The provisions of RSA 287-E:6, IV and RSA 287-E:7, IV and VI relating to bingo licenses and the operation of games for charitable organizations shall also apply to licenses issued under this section.

III.] I. The price to be paid for a single card or play under the license shall be $.10.

[IV. A license shall permit no more than 2 game dates of bingo in any one calendar week and shall be issued on an annual basis.

V.] II. All revenues received from the sale of bingo cards in any game or series of games on any one calendar day shall be paid out to the players. The total value of all prizes, tokens, or awards used, given, offered, or awarded in connection with any game or series of games in any calendar day shall not exceed $500.

[VI.] III. Games shall be operated only by persons on the staff of the campground or hotel [holding the license under this section]. Such staff shall operate the games without compensation from the bingo revenues.

[VII.] IV. The games of bingo shall be open only to persons 18 years of age or older who are bona fide guests at the campground or hotel.

[VIII. Licenses shall be granted only to campgrounds or hotels in cities or towns which have approved bingo under RSA 287-E.

IX.] V. No campground or hotel shall act as an agent for operating games of bingo when it is unlawful for such campground’s or hotel’s principal to operate bingo games.

[X. The campground or hotel holding the license issued under this section shall keep records and submit a report as required for agricultural fairs under RSA 287-E:10, VIII, except that the report shall be submitted to the commission within 15 days of the expiration of the bingo license. The report shall include the names and addresses of persons from whom bingo equipment was rented or leased.

XI.] VI. The campground or hotel shall have been in existence for at least 2 years in the city or town in which the bingo games are to be conducted.

[XII. The campground or hotel shall be in compliance at the time of application with all applicable state and local requirements for the operation of private campgrounds or hotels.

XIII.] VII. The campground or hotel shall maintain a current list of bona fide guests.

[XIV.] VIII. The campground or hotel shall not have been established solely for the purpose of operating bingo games.

15 Campground Bingo. Amend the introductory paragraph RSA 287-E:13 to read as follows:

Any campground or hotel [holding a license under RSA 287-E:12] may conduct special bingo games for children under the conditions specified in RSA 287-E:12, except:

16 Payment to Distributor. Amend RSA 287-E:23-a to read as follows:

287-E:23-a Payment to Distributor. Licensees shall pay for purchased tickets no later than 30 calendar days after delivery. Unless a waiver is given by the commission for good cause shown, no charitable organization may purchase tickets from a different distributor when that charitable organization has failed to comply with the provisions of this section.

17 Financial Reports and Inspection Required. Amend RSA 287-E:24, IV to read as follows:

IV. All expenses shall be paid by check, or electronic funds transfers, and all cash prizes [over] of $500 or more shall be paid by check, and the charitable organization shall retain cancelled checks or bank produced facsimiles of cancelled checks for the payment of expenses and checks or bank produced facsimiles of checks and receipts for the payment of prizes for a period of 2 years.

18 Pari-Mutuel Breakage; Cross Reference. Amend RSA 284:22-a, VII to read as follows:

VIII. RSA 284:22, I, II, and III, [and IV] shall apply according to the type of race on which the simulcast wagers are made, excepting, however, interstate common pools as provided in RSA 284:22-a, V(b) and that the provisions made for purses made in RSA 284:22, I shall not apply to simulcast races. The commission on simulcast race pools shall be available to the simulcasting licensee to satisfy obligations to the racing association originating or transmitting such simulcast races or to the horsemen’s group of such association.

19 Campground Bingo. Amend RSA 287-E:4, II to read as follows:

II. Such fee shall be submitted to the commission at the time the application for a bingo license is filed and[, except as provided in RSA 287-E:12], shall be refunded if the application is denied.

20 Games of Chance. Amend RSA 287-D:2-b, II-a to read as follows:

II-a. Unless otherwise agreed to in advance, pursuant to paragraph II, in writing by the charitable organization, [operators of games of chance] game operators may be reimbursed for their out-of-pocket expenses in an amount not to exceed $25 per game date, provided that such expenses are itemized and submitted in writing to the charitable organization.

21 Games of Chance. Amend RSA 287-D:2-b, VII-a to read as follows:

VII-a. Notwithstanding any other provision of law, a member of the sponsoring charitable organization shall be present and on site at least once per day during the operation of any game of chance and shall file with the racing and charitable gaming commission an affidavit attesting to the member’s presence at the site during the operation of any games of chance. The sponsoring charitable organization member shall not be employed by the game operator [or the employer of the game operator].

22 Licensing of Game Operators. Amend RSA 287-D:2-c, II(a)-(c) to read as follows:

(a) The name and social security number of the primary or secondary game operator, or for [an organization] a game operator employer the name and federal tax identification number. The racing and charitable gaming commission shall not disclose any social security number submitted;

(b) The name, [of the game operator’s employer and the employer’s] address, and telephone number of the game operator employer;

(c) A list of the known [games of chance] game dates in which the game operator will participate including the [date] name of the game, the location of the game, and the charitable organization holding the game;

23 Licensing of Game Operators. Amend RSA 287-D:2-c, VI to read as follows:

VI. To be eligible for licensure under this chapter, a licensed game operator employer or primary game operator shall maintain an account at a financial institution with at least one branch

24 Repeal. RSA 284:22, IV relative to breakage on pari-mutuel pools, is repealed.

25 Effective Date. This act shall take effect 60 days after its passage.

LBAO

11-1032

Amended 04/11/11

SB 136-FN - FISCAL NOTE

AN ACT relative to games of chance.

FISCAL IMPACT:

METHODOLOGY: