SB365: relative to the lottery commission.

SB 365-FN – AS INTRODUCED

2006 SESSION

06-2667

08/09

SENATE BILL 365-FN

AN ACT relative to the lottery commission.

SPONSORS: Sen. Gallus, Dist 1; Sen. D'Allesandro, Dist 20; Sen. Green, Dist 6; Sen. Martel, Dist 18; Rep. Gionet, Graf 3; Rep. H. Richardson, Coos 2; Rep. Theberge, Coos 4

COMMITTEE: Executive Departments and Administration

ANALYSIS

This bill grants the lottery commission greater authority to operate and advertise, and eliminates certain incentive caps and payout restrictions on prizes.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

06-2667

08/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Six

AN ACT relative to the lottery commission.

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

1 Authorization; Sale of Tickets; Advertising. Amend the introductory paragraph of RSA 284:21-h, II(d) to read as follows:

(d) May be sold by or for the lottery commission at designated locations, other than grounds and campuses of public and private schools, colleges and universities, by persons, whether natural, associate or corporate, authorized to sell such tickets on a [uniform] minimum 5 percent commission basis for services rendered, [which sum shall be the sole compensation paid to the principal for such ticket selling]. The commission may establish higher sales commission rates and other sales incentives deemed necessary to increase lottery sales. All sales shall be subject to the rules and regulations of the commission provided:

2 Authorization; Sale of Tickets; Advertising. Amend RSA 284:21-h to read as follows:

IV. The lottery commission is authorized to advertise the sale of tickets at each sales location[. Any other advertising by the lottery commission of ticket sales will require prior approval of governor and council] and through other advertising media as the commission deems necessary to increase lottery sales.

3 Administrative and Rulemaking Provisions. Amend RSA 284:21-i, II-III to read as follows:

II. The lottery commission shall adopt rules under RSA 541-A after public hearing relative to:

(a) Holding and conducting drawings and [sweepstakes races] other lottery games and the sale of tickets for such drawings and races;

(b) Establishing and fixing the purses, not to exceed an aggregate sum of $325,000 for a single calendar year, to be awarded horses, or dogs, or both in sweepstakes races;

(c) Establishing:

(1) The price for which tickets for drawings and [sweepstakes races] other lottery games shall be sold; not to exceed $20 per ticket.

(2) The method by which tickets sold for drawings and sweepstakes races shall be determined to be winning tickets.

(3) The money or prizes to be awarded holders of winning tickets.

(4) The assignment ability of winning tickets, including appropriate consumer protection provisions.

III. In establishing the money or prizes to be awarded the holders of winning tickets [and] or the purses for the horses or dogs or both, the lottery commission shall be governed by the primary purpose of the lottery and sweepstakes, to raise revenue for the benefit of public education. They shall conduct such studies and make such investigations, either directly or through their agents, as will apprise them of prizes and money awarded to the holders of winning tickets in similar drawings wherever held. They shall consider the size of lottery game jackpots, or purses for the horses or dogs or both as bearing on the question of gaining public confidence in the [sweepstakes] lottery games or races. They shall fix the prizes and amounts of money to be awarded winners as well as the purses for the horses or dogs or both in such manner as will yield the largest net revenue for the benefit of public education, bearing in mind the expenses to be incurred, and all other factors which tend to influence net revenue.

4 Incentive Awards for Ticket Sellers. Amend RSA 284:21-s to read as follows:

284:21-s Incentive Awards for Ticket Sellers. The lottery commission is authorized to pay cash incentives, [not to exceed one percent of the prize awarded or a maximum of $30,000 for powerball prizes or $15,000 for other prizes,] at a rate established by the commission as an inducement to servants and agents[, excluding lottery commission employees,] authorized to sell tickets pursuant to RSA 284:21-h, II(d)[, provided such lottery ticket selling servant or agent sells the winning lottery ticket for which the commission has authorized an incentive award].

5 Collection and Disposition of Revenue. Amend RSA 287-F:9, II to read as follows:

II. Within one week after a tri-state lotto drawing has been held, the party state commission shall pay to the commission, who in turn shall promptly pay to an account known as the tri-state lotto prize account, moneys as are necessary for the payment of prizes, less actual prizes paid by the respective party state in the preceding week[, but not to exceed 50 percent of the total amount for which tickets have been sold].

6 Purpose. Amend RSA 287-F:3 to read as follows:

287-F:3 Purpose. This compact is enacted to implement the operation of tri-state lotto, for the purpose of raising additional revenue for each of the party states. Tri-state lotto is not intended to replace any existing lottery game in the party states, but, rather, to be run in addition to these games. Tri-state lotto tickets shall be sold in each of the party states and processed in a central area to be determined by the tri-state lotto commission. [Fifty] At least 50 percent of the gross sales from each state shall be aggregated in a common prize pool, and operating costs shall be charged proportionally to the party states. The remaining revenues generated within each state shall remain in that particular state.

7 Repeal. The following are repealed:

I. RSA 284:21-h, II(d)(1), relative to a requirement that sale of lottery tickets from mobile units be limited to sales by lottery commission employees.

II. RSA 284:21-h, V, relative to the sale of lottery tickets on Sundays at licensed racetracks.

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

LBAO

06-2667

11/22/05

SB 365-FN - FISCAL NOTE

AN ACT relative to the lottery commission.

FISCAL IMPACT:

The Lottery Commission has determined this bill may increase state restricted revenue by an indeterminable amount in FY 2006 and each year thereafter. There will be no fiscal impact on county and local revenue or state, county and local expenditures.

METHODOLOGY:

The Lottery Commission stated this bill intends to make the following changes to current statute:

• Allow a sales commission of 5% or higher.

• Allow sales incentive.

• Incentive awards for ticket sellers, currently $30,000 for Powerball and $15,000 for other games, are eliminated and replaced with a cap of 1% of prize awarded.

• Eliminates the requirement of a maximum 50% for the prize pool and there would not be any maximum for Tri-State games.

• Modifies language relative to advertising contracts to conform to current practice.

Advertising contracts will continue to require governor and council approval. The goal of these changes is for the Lottery Commission to be more sales goal oriented. It is anticipated the additional flexibility given to the Commission will result in increased sales, and therefore, increased restricted lottery revenue.