HB370: relative to the dispensing of lucky 7 tickets.

HB 370-FN - AS INTRODUCED

2003 SESSION

03-0139

08/10

HOUSE BILL 370-FN

AN ACT relative to the dispensing of lucky 7 tickets.

SPONSORS: Rep. Heon, Straf 67; Rep. Boyce, Belk 31; Rep. Lessard, Hills 66; Rep. C. Pappas, Hills 49; Sen. Sapareto, Dist 19; Sen. Green, Dist 6

COMMITTEE: Ways and Means

ANALYSIS

This bill allows the playing of lucky 7 style games through mechanical means.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

03-0139

08/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Three

AN ACT relative to the dispensing of lucky 7 tickets.

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

1 Administration and Enforcement. Amend RSA 287-E:16 to read as follows:

287-E:16 Administration and Enforcement. The sweepstakes commission shall administer and the commissioner of safety shall enforce this subdivision relating to the sale of lucky 7 tickets and the construction and operation of cartridge based lucky 7 tickets and lucky 7 dispensing machines.

2 Definitions. Amend RSA 287-E:16-a to read as follows:

287-E:16-a Definitions. In this subdivision:

I. "Bag tickets" means a type of lucky 7 tickets of paper composition which are joined together, or a lucky 7 cartridge, and which bear a certain combination of numbers and symbols to indicate whether or not a prize is to be given. Tickets of this type are sometimes referred to as "staple tickets."

II. "Deal" means either a box or bag of lucky 7 tickets, containing a certain count of uncirculated tickets bearing a serial number, and includes lucky 7 cartridges.

III. "Pull tab ticket" means a type of lucky 7 ticket which consists of a cardboard card with pull tabs, or a lucky 7 cartridge, bearing certain combinations of symbols or numbers which indicate whether or not a prize is to be given.

3 New Paragraphs; Definitions. Amend RSA 287-E:16-a by inserting after paragraph III the following new paragraphs:

IV. "Lucky 7 cartridge" means a cartridge containing symbol or number combinations, which indicate whether or not a prize is to be given. The lucky 7 cartridge must be encoded with the symbols or numbers in the exact position, as they will be displayed. Each lucky 7 cartridge shall contain the serial number of the deal, which is not to be duplicated in any other lucky 7 cartridge for at least 36 months. The lucky 7 cartridge contains the game name or title, deal denominations and the date and time the lucky 7 cartridge was encoded.

V. "Lucky 7 cartridge dispenser" means a system that contains a touch screen player station that displays electronic lucky 7 tickets issued from a lucky 7 cartridge, and a lucky 7 interface unit for each lucky 7 license holder separate from the player station that contains no fewer than 16 lucky 7 cartridge adapters. Each interface unit contains 2 colored light emitting diode designators that display the status of the lucky 7 cartridge. The designators shall alert the lucky 7 license holder that the lucky 7 cartridge is in play, in back-up, or is empty. A player station shall not dispense lucky 7 tickets as a stand-alone unit. All player stations shall be linked to a central computer network that distribute the lucky 7 tickets from each of the lucky 7 licensee's cartridges to all player stations within the network.

4 Licenses. Amend RSA 287-E:17 to read as follows:

287-E:17 Lucky 7 Licenses Required. No person shall sell lucky 7 tickets or allow operation of lucky 7 cartridge dispensers without a current and valid lucky 7 license issued under this chapter.

5 Rulemaking. Amend RSA 287-E:18, III to read as follows:

III. The sale of lucky 7 tickets, lucky 7 cartridges or lucky 7 cartridge dispensers.

6 New Paragraph; Rulemaking. Amend RSA 287-E:18 by inserting after paragraph V the following new paragraph:

VI. The licensing of manufacturers and distributors of lucky 7 cartridges and cartridge dispensers.

7 Lucky 7 Licenses. Amend RSA 287-E:20 to read as follows:

287-E:20 Lucky 7 Licenses. The commission may issue a lucky 7 license to a charitable organization for the sale of lucky 7 or similar tickets and operation of lucky 7 cartridge dispensers under the following conditions:

I. The license shall specify where the tickets or cartridge dispensers may be offered for sale, provided that the license shall not authorize a charitable organization to sell lucky 7 tickets or operate a lucky 7 cartridge dispensers except at a place where a bingo game has been authorized, or in a town or city which has authorized the sale of lucky 7 tickets and operation of lucky 7 cartridge dispensers under RSA 287-E:27.

II. The price of any lucky 7 ticket pack, [or] ticket card, or cartridge ticket shall not exceed $.50.

III. The license shall not be transferable, shall expire on the last day of the month for which it was issued, and shall only be valid for one location. A separate license shall be obtained for each location at which lucky 7 tickets or cartridge tickets are to be sold.

IV. At least 45 percent of the gross revenues from the sale of lucky 7 tickets shall be paid as prizes.

V. Lucky 7 licenses shall be prominently displayed in the area in which the lucky 7 tickets or cartridge tickets are sold.

VI. Only charitable organizations as defined in RSA 287-E:1, V shall be eligible for licensing.

VII. No more than 5 lucky 7 cartridge dispensing machines shall be operated under each lucky 7 license.

8 Distributors and Manufactures. Amend RSA 287-E:23 to read as follows:

287-E:23 Distributors and Manufacturers of Tickets and Lucky 7 Cartridge Tickets. The commission shall license distributors and manufacturers to supply lucky 7 tickets and lucky 7 cartridge dispensers sold or operated in this state. Every lucky 7 ticket or lucky 7 cartridge dispenser sold in this state shall be purchased from a licensed distributor and manufactured by a licensed manufacturer. A license shall be issued to a distributor or manufacturer under the following conditions; provided that the commission may, by rule, establish additional qualifications for licenses:

I. The applicant for a distributor's license shall pay to the commission an annual license or license renewal fee of $10,000. Such fee shall authorize the distribution of lucky 7 or similar break-open tickets within the state of New Hampshire and the warehousing of lucky 7 or similar break-open tickets or lucky 7 cartridge dispensers for subsequent sale out of state.

II. The applicant shall certify that neither the applicant nor any partner, officer or director has been convicted of a felony, which has not been annulled by any court, within 10 years from the date of application.

III. Each licensee shall post a bond in the amount of $50,000 conditioned upon the licensee's compliance with the rules of the commission.

IV. An applicant for a license as a distributor shall have a principal place of business located within this state.

V. No manufacturer or distributor may have in its possession or control in the state of New Hampshire, for any reason, lucky 7 or other break-open tickets which do not contain the New Hampshire state seal or other distinguishing markings approved by the commission, except in the case of a distributor warehousing lucky 7 or similar break-open tickets in the state of New Hampshire which are to be subsequently sold out of state.

VI.(a) The commission shall issue a special license to manufacturers of lucky 7 or similar break-open tickets stored in the state.

(b) All lucky 7 or similar break-open tickets distributed in this state or shipped to this state and subsequently shipped or sold out of this state shall bear a distinguishing mark as designated by the commission.

(c) The fee for such special license shall be $5,000 per year or for any part of a year.

9 Financial Reports and Inspections. Amend RSA 287-E:24 to read as follows:

287-E:24 Financial Reports and Inspections.

I. A charitable organization shall submit a complete financial report for each license issued under RSA 287-E:20 to the commission within 15 days after the expiration date of the license.

II. The financial report shall be completed by the treasurer of the charitable organization or a duly authorized officer, director, or official of the charitable organization who shall certify such accounting under oath.

III. The financial report shall include:

(a) A complete statement of all revenues and expenses.

(b) A record of the amount of prizes awarded.

(c) The names and addresses of the members who participated in the sale of lucky 7 tickets or the operation of lucky 7 cartridge dispensers.

(d) The name and address of the distributor from whom the lucky 7 tickets or lucky 7 cartridge dispensers were purchased.

IV. All expenses and all cash prizes over $500 shall be paid by check, and the charitable organization shall retain canceled checks for the payment of expenses and prizes for a period of 2 years.

V. All financial reports filed by charitable organizations shall be maintained by the commission for a period of one year from the date of filing and shall be open to public inspection.

VI. All financial records pertaining to the sale of lucky 7 tickets or operation of lucky 7 cartridge dispensers 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 representatives of the commission or the commissioner of safety upon request.

VII. A charitable organization 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.

10 Referendum. Amend RSA 287-E:27, I(a) to read as follows:

I.(a) Any city or town desiring to adopt the provisions of RSA 287-E may do so by presenting the following question to the voters: "Shall we adopt the provisions of RSA 287-E relative to the conduct of games of bingo and the sale of lucky 7 tickets and operation of lucky 7 cartridge dispensers?"

11 Application. Amend RSA 287-E:28 to read as follows:

287-E:28 Application of Chapter. The provisions of RSA 647 relative to gambling offenses shall not apply to bingo games or to the sale of lucky 7 tickets or lucky 7 cartridge dispensers if such bingo games and lucky 7 ticket sales or lucky 7 cartridge dispensers are conducted in strict compliance with the provisions of this chapter.

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

LBAO

03-0139

1/15/03

HB 370-FN - FISCAL NOTE

AN ACT relative to the dispensing of lucky 7 tickets.

FISCAL IMPACT:

The Sweepstakes Commission is unable to estimate the fiscal impact of this bill on state restricted revenue and expenditures in FY 2003 and each year thereafter. There is no fiscal impact on county and local revenue or expenditures.

METHODOLOGY:

The Commission states it cannot estimate the state restricted revenue and expenditure information necessary to determine the fiscal impact of this bill because the Lucky 7 cartridge system referred to in the bill has not been installed in any other state for charitable gaming.