HB163: relative to allowing cities and towns to permit slot machines and other games of chance.

HB 163-FN-A-LOCAL - AS INTRODUCED

2003 SESSION

03-0458

08/09

HOUSE BILL 163-FN-A-LOCAL

AN ACT relative to allowing cities and towns to permit slot machines and other games of chance.

SPONSORS: Rep. DiFruscia, Rock 76; Rep. Weyler, Rock 79; Rep. Bishop, Rock 74; Rep. Corbin, Rock 79; Rep. Belanger, Rock 76; Sen. Gallus, Dist 1

COMMITTEE: Ways and Means

ANALYSIS

This bill allows cities and towns to permit the operation of games of chance. The conduct of gaming would be allowed only in those cities and towns that have approved such by a 2/3 referendum vote. An application procedure is provided, including application to local authorities and the sweepstakes commission. Application fees are required, as well as a bond by the applicant in the amount of $1,000,000.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

03-0458

08/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Three

AN ACT relative to allowing cities and towns to permit slot machines and other games of chance.

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

1 Purpose. The general court finds that:

I. The people of New Hampshire are in need of additional funds.

II. The raising of such revenue should be accomplished without undue hardship to the people of the state.

III. The people of the state have the final determination of the method of raising funds.

IV. For the above stated reasons, the people of New Hampshire's cities and towns shall be authorized to permit gambling under the provisions contained in this act.

2 New Chapter; Games of Chance. Amend RSA by inserting after chapter 287-F the following new chapter:

CHAPTER 287-G

GAMES OF CHANCE

287-G:1 Definitions. In this chapter:

I. "Applicant" means a person who has applied to a city or town to conduct licensed gaming and the sweepstakes commission for a license to operate games of chance pursuant to this chapter.

II. "Commission" means the state sweepstakes commission.

III. "Game of chance" means any banking or percentage game located exclusively within a given location played with cards, dice, or any mechanical device or machine for money. For the purposes of this chapter, "games of chance" shall not include the game of bingo, any derivative of bingo such as keno, or betting of any sort upon a sports event.

IV. "Gaming" means the licensed operation of any games of chance by a licensee, pursuant to this chapter.

V. "Person" means any corporation, association, operation, firm, partnership, trust or other form of business association, as well as a natural person.

VI. "Licensee" means any person who holds a license to conduct gaming pursuant to this chapter.

287-G:2 Local Approval Required.

I. No games of chance may be lawfully operated under the provisions of this chapter unless the municipality in which it is to be operated has first approved the conduct of licensed gaming, as provided in paragraph II.

II.(a) Any city or town may adopt the provisions of RSA 287-G by presenting the following question to the voters: "Shall we adopt the provisions of RSA 287-G relative to the conduct of licensed gaming?"

(b) The ballot containing the question shall include 2 squares next to the question allowing the voters to vote "Yes" or "No". If no mark is made in either of the squares, the ballot shall not be counted on the question.

(c) If 2/3 of those voting on the question vote "Yes", RSA 287-G shall apply within the city or town.

III. In a town, other than a town that has adopted a charter pursuant to RSA 49-D, the question shall be listed in the warrant and placed on the official ballot, or a special ballot prepared by the clerk, upon a vote of the selectmen or upon submission to the selectmen of a petition signed by 25 or more registered voters.

IV. In a city or a town that has adopted a charter pursuant to RSA 49-D, the question shall be placed on the official ballot for any regular municipal election upon a vote of the city or town council or upon submission to the city or town council of a petition signed by 25 or more registered voters.

V. After such popular referendum, the aforementioned question shall not be voted on by the voters of the city or town for a minimum period of 4 years from the date of the last popular referendum and only upon petition of the required number of registered voters or upon vote of the selectmen or city or town council as provided in paragraph III or IV.

VI. Any city or town which has adopted RSA 287-G shall put to the voters the question of whether to rescind its action upon the vote of the selectmen or city or town council or upon the petition of voters as provided in paragraph III or IV. The question shall be as provided in paragraph II, except the word "adopt" shall be changed to "rescind".

287-G:3 Committee of Licensure; Application Procedure.

I. A town or city that has approved licensed gaming by referendum as provided in RSA 287-G:2 shall form a committee of licensure, composed of the town selectmen or city or town council, as the case may be. The committee shall receive applications for the conduct of licensed gaming; such application forms shall be provided by the commission. An applicant shall prove, to the satisfaction of the committee, that the conduct of licensed gaming by the applicant at a given location within the city or town will not negatively affect public safety and the local environment. The applicant shall submit a plan to the committee that projects probable impacts to the local community in the vicinity of the location where the applicant seeks approval for licensed gaming. Approval by the local land use board of licensed gaming at the location sought by the applicant shall be required. In addition, the committee may require a cost analysis of additional needs, including but not limited to required road work and public safety.

II. The applicant shall accompany the application with a non-refundable application fee of $100,000, payable to the city or town. Once the application and fee have been submitted to the committee, a public hearing shall be held. Notice of the public hearing shall be provided at least 10 days before the date set for the hearing. Notice of the public hearing shall be published in a paper of general circulation in the municipality and shall be posted in at least 2 public places.

III. The applicant shall submit to a criminal history check by the department of safety. A record of criminal activity may be grounds for disqualification of consideration to conduct licensed gaming in the city or town.

287-G:4 Sweepstakes Commission; Application Procedure; Renewal of License.

I. Once a city or town has approved an application, the application shall be submitted by the city or town to the sweepstakes commission for approval, along with a non-refundable application fee of $50,000, payable by the applicant. The applicant or licensee shall, at the time of making application for licensure or renewal of licensure, file with and have approved by the commission a bond, in which the applicant or licensee shall be principal obligor in the sum of $1,000,000, with one or more responsible sureties whose liability in the aggregate as such sureties shall at least equal that sum. The applicant or licensee shall maintain the bond in effect as long as the license is in effect. The bond shall be with a surety company authorized to do business in this state, and shall run to the state in the case of the applicant failing to comply with or violating any provision of this chapter..

II. Before approving an application, the commission shall require that an impact study, including a traffic study for the area of the proposed location for licensed gaming and any other study deemed necessary by the commission, be completed by the department of transportation or department of safety, or both. The commission shall review and consider such impact study before determining whether to issue a gaming license under this chapter.

III. Before issuance of a gaming license, the applicant shall provide the commission with a detailed list of the games of chance the applicant shall operate at the specified location. Each game of chance shall be required to display a non-removable sticker provided by the commission. A fee of $50,000 per sticker shall be assessed and made payable annually to the commission by the licensee. Each sticker shall be valid for a 2-year period, after which time the licensee shall be required to obtain a new sticker for operation of a particular game of chance. If the licensee fails to have such stickers for every game of chance conducted by the licensee at a given gaming location, the licensee shall become ineligible for license renewal and shall forfeit the bond required under paragraph I.

IV. In order to retain a valid license to conduct gaming under this chapter, a licensee shall file an annual report, on a form provided by the sweepstakes commission, relative to the conduct of licensed gaming conducted by the licensee.

287-G:5 Moneys Received by the Sweepstakes Commission. All fees received by the sweepstakes commission under this chapter shall be deposited in the general fund.

287-G:6 Rulemaking. The sweepstakes commission is authorized to adopt rules, pursuant to RSA 541-A, necessary to implement the provisions of this chapter.

3 Effective Date. This act shall take effect July 1, 2003.

LBAO

03-0458

1/6/03

HB 163-FN-A-LOCAL - FISCAL NOTE

AN ACT relative to allowing cities and towns to permit slot machines and other games of chance.

FISCAL IMPACT:

The Sweepstakes Commission indicates this bill may increase state restricted revenue and expenditures and local revenue and expenditures by an indeterminable amount in FY 2004 and each year thereafter. There will be no fiscal impact on county revenue or expenditures.

METHODOLOGY:

The Commission states it does not have sufficient data to estimate the fiscal impact of this bill on state and local revenue and expenditures. In addition, the Commission states it cannot estimate the number of cities and towns that may adopt games of chance.