HB1223: (New Title) creating local options for games of chance.

HB 1223 - AS AMENDED BY THE SENATE

28Mar2024... 1218h

05/15/2024 2007s

2024 SESSION

24-2620

11/10

HOUSE BILL 1223

AN ACT creating local options for games of chance.

SPONSORS: Rep. Roy, Rock. 31

COMMITTEE: Municipal and County Government

AMENDED ANALYSIS

This bill gives municipalities a local option for games of chance.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

28Mar2024... 1218h

05/15/2024 2007s 24-2620

11/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twenty Four

AN ACT creating local options for games of chance.

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

1 New Section; Local Option; Games of Chance. Amend RSA 287-D by inserting after section 287-D:31 the following new section:

287-D:32 Local Option; Games of Chance.

I. The lottery commission shall not grant a game operator employer license to operate games of chance in a municipality if that municipality has voted to prohibit games of chance to be held within its boundaries, such vote to be held in the following manner:

(a) In a town, the question shall be placed on the warrant of an annual town meeting upon receipt of a petition signed by at least 25 registered voters. If a city, the question shall be placed on the official ballot for the next regular municipal election upon submission to the city clerk of a petition signed by at least 5 percent of registered voters.

(b) The selectmen, aldermen, or city council shall hold a public hearing on the question at least 15 days, but not more than 30 days before the question is to be voted on. Notice of the hearing shall be posted in at least 2 public places in the municipality, on the website of the municipality, and by publication in a newspaper of general circulation at least 14 days before the hearing.

(c) The wording of the question shall be substantially as follows: "Shall we prohibit the operation of games of chance within the town or city?"

II. If a majority of those voting on the question vote "Yes," games of chance may not be operated within the town or city.

III. If the question is not approved, the question may later be voted upon according to the provisions of paragraph I as early as the next annual town meeting or regular municipal election. Notwithstanding any other provision of law, including RSA 287:D:32, I, and II, any vote by a municipality to prohibit games of chance within its boundaries shall not apply to any operator licensed by the lottery or any applicant who has applied for a license as of the effective date of this act, except that any operator who ceases operation for a period exceeding two years, or an applicant who fails to commence operation within four years of application approval, shall be subject to any intervening vote by the municipality.

IV. A city or town may rescind its disapproval for operation of games of chance under RSA 287-D by following procedures in paragraph I in this section.

V. An unincorporated place may disallow the operation of games of chance by majority vote of the county delegation, after a public hearing is held, and may be rescinded in a similar fashion.

VI. The lottery commission shall maintain a list of municipalities where games of chance are available.

VII. If the town, city, or unincorporated place has voted within this section to prohibit games of chance, that municipality may pass an ordinance allowing only a specified number of charitable gaming events per year, or certain number of dates per year to be determined by the town, hosted by local charitable organizations pursuant to RSA 287-D:4, and specifying how the municipality shall determine how charitable organizations register for a gaming event.

2 Effective Date. This act shall take effect July 1, 2024.

LBA

24-2620

Amended 5/29/24

HB 1223-FN- FISCAL NOTE

AS AMENDED BY THE SENATE (AMENDMENT #2024-2007s)

AN ACT creating local options for games of chance.

FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None

Estimated State Impact - Increase / (Decrease)

FY 2024

FY 2025

FY 2026

FY 2027

Revenue

$0

Indeterminable Decrease

Revenue Fund(s)

Lottery Fund / Education Trust Fund - Lottery revenue is credited to the lottery fund, with net revenues after expenditures being credited to the state education trust fund.

Expenditures

$0

$0

$0

$0

Funding Source(s)

None

Appropriations

$0

$0

$0

$0

Funding Source(s)

None

• Does this bill provide sufficient funding to cover estimated expenditures? [X] N/A

• Does this bill authorize new positions to implement this bill? [X] N/A

METHODOLOGY:

This bill prohibits the Lottery Commission from granting a game operator employer license to an applicant who intends to operate in a municipality that has voted to prohibit games of chance within its boundaries. The Commission understands that this restriction does not apply to game operator employers who are currently licensed or to applicants who applied for a license on or before the effective date of the bill, unless the licensee ceases operating for a period of more than two (2) years, or the applicants fails to commence operation within four (4) years of application approval. The Commission further understands that, if the question to prohibit games of chance is not approved, the question can be raised again at the next annual town meeting or regular municipal elections. The municipality may also rescind its disapproval in a similar manner. The Commission states that a municipality that has prohibited games of chance may pass a local ordinance allowing local charitable organizations to “host” a specified number of gaming events per year. The Commission assumes that the proposed legislation will decrease the number of games of chance facilities that may be opened in the future as it creates an additional barrier to entry to the market, however, it cannot determine how many games of chance facilities will be impacted by this requirement. The Commission anticipates that the revenue impact from this legislation would be negative to the State, however, the exact impact cannot be determined. The Commission assumes that the fiscal impact is limited as the proposed legislation still allows for approximately 19 games of chance facilities with the potential to open more with municipal approval. Any additional facilities that may have been added but for this legislation would be anticipated to have a minor impact on the overall gaming market.

AGENCIES CONTACTED:

Lottery Commission