Sen. D'Allesandro, Dist. 20 Sen. Gallus, Dist. 1

Sen. Sgambati, Dist. 4 Sen. Hassan, Dist. 23

May 27,2009

2009-1896s

09/04

Draft Amendment to HB 2-FN-A-LOCAL

1 1 New Chapter; Video Lottery Machines. Amend RSA by inserting after chapter 284 the

2 following new chapter:

3          CHAPTER 284-A

4          VIDEO LOTTERY MACHINES

5 284-A:l Definitions. In this chapter:

6 I. "Applicant" means any person, officer, director, or key employee, who on his or her own

7 behalf or on behalf of another, is applying for permission to engage in any act or activity which is

8 regulated under the provisions of this chapter. In cases in which the applicant is a corporation,

9 foundation, organization, business trust, estate, limited liability company, trust, partnership, limited

10                                                partnership, association, or any other form of legal business entity, the lottery commission shall

11                                                       determine the associated persons whose qualifications must be provided and reviewed as a

12         precondition to the licensing of the applicant.

13                                                              II. "Central computer system" means a central monitor and control system provided and

14                                          monitored by the lottery commission to which video lottery terminals communicate for purposes of

15                                              information retrieval, retrieval of the win and loss determination from video lottery machines, and

16         programs to activate and disable video lottery machines.

17                                                        III. "Facility location" means any north country facility location or any pari-mutuel licensee

18         location and the portion of such facility approved for video lottery machine operations.

19                                                       IV. "Key employee" means any individual who is employed in a director or department head

20                                          capacity and who is authorized to make discretionary decisions that regulate video lottery machine

21                                                       operations, including the general manager and assistant manager of the operator licensee or

22                                               technology provider, director of operations, director of cage and/or credit operations, director of

23                                                        surveillance, director of marketing, director of management information systems, director of

24                                           security, comptroller, and any employee who supervises the operations of these departments or to

25                                             whom these department directors or department heads report and such other positions which the

26                                       lottery commission shall determine based on detailed analyses of job descriptions as provided in the

27                                                      internal controls of the licensee. All other gaming employees shall be considered as non-key

28         employees.

29                                                                 V. "Net machine income" means all cash or other consideration utilized to play a video

30                                                lottery machine, less all cash or other consideration paid to players of video lottery machines as


 

Draft Amendment to HB 2-FN-A-LOCAL - Page 2-

   1        winnings. Non cashable promotional credits shall be excluded from the calculation.

   2                                                              VI. "North country facility location" means one of no more than 2 facilities selected and

   3        approved by the lottery commission pursuant to this chapter, one of which shall be located in

   4        Grafton county and one of which shall be located in Coos county.

   5                                                         VII. "Operator applicant" means the applicant applying for an operator's license to operate

   6        video lottery machines at a facility location.

   7                                                      VIII. "Operator's license" means the license issued by the lottery commission to an operator

   8        licensee which allows the operator licensee to possess, conduct, and operate video lottery machines in

   9        accordance with this chapter.

10                                                         IX. "Operator licensee" means an operator applicant who is issued a license by the lottery

11        commission to procure and operate video lottery machines pursuant to this chapter.

12                                                             X. "Pari-mutuel licensee" means an entity licensed and authorized to conduct live horse

13        racing as provided in RSA 284:16 or live dog racing as provided in RSA 284:16-a for at least the

14        number of days as required in RSA 284:22-a, II(a)(3) at a pari-mutuel licensee location.

15                                                                XI. "Pari-mutuel licensee location" means the facility at which a pari-mutuel licensee is

16        located and where a pari-mutuel licensee was authorized to conduct live horse racing or live dog

17        racing as of January 1, 2009 for at least the number of days as required in RSA 284:22-a, II(a)(3),

18        and any real estate in which a pari-mutuel licensee had an interest as of January 1, 2009 which is

19        adjacent to the real estate on which a pari-mutuel licensee is authorized to conduct live horse racing

20        or live dog racing as of January 1,2009.

21                                                                     XII. "Progressive jackpot" means a prize that increases over time or as video lottery

22        machines that are linked to a progressive system are played. Upon conditions established by the

23        lottery commission, a progressive jackpot may be paid by annuity.

24                                                      XIII. "Progressive system" means one or more video lottery machines linked to one or more

25        common progressive jackpots.

26                                                              XIV. "Technology provider" means any person or entity which designs, manufactures,

27        installs, distributes, or supplies video lottery machines for sale or lease to the operator licensees, and

28        which are for use by an operator licensee for conducting video lottery games in accordance with this

29        chapter.

30                                                      Xv. "Technology provider license" means the license issued by the lottery commission to a

31        technology provider licensee which allows the technology provider licensee to design, manufacture,

32        install, distribute, or supply video lottery machines for sale or lease to the operator licensees.

33                                                         XVI. "Technology provider licensee" means a technology provider that is licensed by the

34        lottery commission.

35                                                  XVII. "Token" means the coin or coupon, which is not legal tender, sold by a cashier in a face

36        amount equal to the cash paid by a player for the sole purpose of playing a video lottery machine at a

37        facility location or paid to a player of a video lottery machine, which can be exchanged for cash at a


 

Draft Amendment to HB 2-FN-A-LOCAL - Page 3-

  1        facility location.

   2                                                         XVIII. "Video lottery" means any lottery conducted with a video lottery machine or linked

   3        video lottery machines with an aggregate progression prize or prizes. Video lottery conducted

   4        pursuant to this chapter shall not be considered a state-run lottery.

   5                                                            XIX. "Video lottery machine" means an electronic, mechanical, or computerized machine

   6        which, upon the insertion of bills, coins, tokens, or any representative of value is available to be

   7        played where, by chance or skill, or both, the player may receive cash, cash equivalents, or tokens.

   8        Video lottery machines include, but are not limited to, slot machines, video poker machines, and

   9        other lottery machines. A machine shall be considered a video lottery machine notwithstanding the

10        use of an electronic credit system making the deposit of bills, coins, or tokens unnecessary. Video

11        lottery machines do not include any redemption slot machines or redemption poker machines as

12        defined in RSA 647:2 or video poker machines or other similar machines used for amusement

13        purposes only.

14                284-A:2 Video Lottery Oversight.

15                                                        I. No license shall be issued to any person under this chapter without prior approval of the

16        lottery commission pursuant to this chapter and RSA 284:21-w. The lottery commission shall only

17        issue licenses to persons who operate video lottery machines at a facility location after meeting the

18        requirements of RSA 284-A:6.

19                                                          II. The lottery commission shall have general responsibility for the implementation of this

20        chapter and shall adopt rules under RSA 541-A relative to:

21                                                            (a) Hearing and deciding all license applications or recommendations for the suspension

22        or revocation of any license issued under this chapter.

23                                                                            (b) Conducting all investigations required under this chapter with regard to the

24        application of any applicant for any license.

25                                                                       (c) Conducting hearings pertaining to civil violations, rules, and penalties required

26        under this chapter.

27                                                               (d) Establishing standards and a reasonable fee structure for the licensing and renewal

28        of licenses for employees and operators, technology providers, and operator licensees consistent with

29        RSA 284-A:5, I(e) and II(e).

30                                                                 (e) Establishing technical standards for approval of video lottery machines, including

31        mechanical and electrical reliability and security against tampering, as deemed necessary to protect

32        the public from fraud or deception and to insure the integrity of the operation.

33                                (f) Establishing standards for licensing under RSA 284-A:6.

34                                (g) Establishing standards for reviewing any structure at a facility location.

35                                                              (h) Ensuring that all licensees update the lottery commission with regard to any change

36        in ownership or material change in information or data regarding the licensee that the commission

37        determines is necessary and appropriate.


 

Draft Amendment to HB 2-FN-A-LOCAL

- Page 4-

   1                                                              III. Pending the adoption of rules under RSA 541-A, the lottery commission shall adopt

   2                                             interim rules pursuant to RSA 541-A:19 after public hearing and within 90 days after enactment of

   3                                          RSA 284-A. Such interim rules shall implement the provisions of RSA 284-A including an approval

   4        process for selecting the provider of the central computer system.

   5                                                           IV. The lottery commission shall provide and operate a single central monitor and control

   6        system into which all licensed video lottery machines shall be connected.

   7                                (a) The central monitor and control system shall be capable of:

   8                                                                     (1) Continuously monitoring, retrieving, and auditing the operations, financial data,

   9        and program information of all video lottery machines;

10                                                                  (2) Allowing the lottery commission to account for all money inserted in and payouts

11        made from any video lottery terminal;

12                                                                                  (3) Disabling from operation or play any video lottery machine as the lottery

13        commission deems necessary to carry out the provisions of this chapter;

14                                                                 (4) Supporting and monitoring a progressive jackpot system capable of operating one

15        or more progressive jackpots; and

16                                        (5) Providing any other function that the lottery commission considers necessary.

17                                                                      (b) The central monitor and control system shall employ a widely accepted gaming

18                                         industry communications protocol, as approved by the Gaming Standards Association, to facilitate

19        the ability of video lottery machine manufacturers to communicate with the statewide system.

20                                                                     (1) Except as provided in subparagraph (2), the lottery commission shall not allow a

21                                                 operator licensee to have access to, or obtain information from, the central monitor and control

22        system.

23                                                                         (2) If the access does not in any way affect the integrity or security of the central

24                                      monitor and control system, lottery commission may allow an operator licensee to have access to the

25                                             central monitor and control system that allows the licensee to obtain information pertinent to the

26        legitimate operation of its video lottery.

27                                                         V. The lottery commission may issue subpoenas and compel the attendance of witnesses,

28        and may administer oaths and require testimony of witnesses under oath.

29                                                           VI. No later than November 1 in each calendar year, the lottery commission shall submit a

30                                      report to the fiscal committee of the general court, regarding the operation of video lottery machines.

31        Such report may include recommendations for future legislation.

32                                                                 VII. (a) The lottery commission shall keep a written record of all proceedings of public

33        meetings of the commission.

34                                                               (b) The lottery commission shall keep and maintain a list of all applicants for licenses it

35                                                         receives under this chapter together with a record of all actions taken with respect to such

36                                                                  applicants. A file and record of the actions by the lottery commission shall be open to public

37                                                     inspection provided, however, that the information regarding any applicant whose license or


 

Draft Amendment to HB 2-FN-A-LOCAL - Page 5-

   1        registration has been denied, revoked, or not renewed shall be removed from such list after 5 years

   2        from the date of such action.

   3                                                            (c) The lottery commission shall maintain such other files and records as the commission

   4        determines is necessary. All records maintained by the lottery commission may be maintained in

   5        digital or other format provided that such information can be produced in written form upon the

   6        request of the commission.

   7                                                               (d) All information and data required by the lottery commission to be furnished to it, or

   8        which may otherwise be obtained, shall be considered to be confidential and shall not be revealed in

   9        whole or in part except in the course of the necessary administration of this chapter, or upon the

10        lawful order of a court of competent jurisdiction, or, with the approval of the attorney general, to a

11        duly authorized law enforcement agency.

12                                                                       (e) All information and data pertaining to an applicant's or key employee's criminal

13        record, finances, family, and background furnished to or obtained by the lottery commission from any

14        source shall be considered confidential and shall be withheld in whole or in part. Such information

15        shall be released upon the lawful order of a court of competent jurisdiction or to a duly authorized

16        law enforcement agency.

17                                                                     (f) Notice of the contents of any information or data to be released, except to a duly

18        authorized law enforcement agency pursuant to subparagraphs (d) or (e), shall be given to any

19        applicant, registrant, or licensee in a manner prescribed by the rules adopted by the lottery

20        commission so that the applicant, registrant, or licensee has the opportunity to object to such

21           release.

22                                       VIII. The lottery commission, the attorney general, and the state police gaming enforcement

23        unit may from time to time contract for such financial, economic, or security consultants, and any

24        other technical and professional services as the lottery commission deems necessary for the

25        discharge of its duties.

26                                                        IX. The lottery commission shall establish standards for reviewing, selecting, and granting

27        approval for no more than 2 north country facility locations. Selection standards shall specify the

28        process and fees for seeking approval and the criteria which shall be met by applicants. Applications

29        requesting review and approval of any north country facility location must be received by the lottery

30        commission by July 1, 2010 or no approval shall be granted for any north country facility location

31        under this chapter. Criteria shall include:

32                                                                  (a) The availability of local resources to support services and amenities necessary to

33        accommodate projected guest volume in the form of transportation, rooms and meals, utilities, law

34        enforcement, and mental health services.

35                                (b) The immediate and long range financial feasibility of the applicant's proposed

36          project.

37                                (c) The character and fitness of the owners of the facility.


 

Draft Amendment to HB 2-FN-A-LOCAL - Page 6-

   1                                                                  (d) Whether the applicant has obtained the approval of the municipality in which the

   2        project is proposed by local referendum.

   3                                                                    (e) A minimum capital investment of $10,000,000 in the construction or renovation of

   4        the facility location.

   5                                                                         (f) An agreement with an operator to operate video gaming at the proposed north

   6        country facility location consistent with this chapter.

   7                                                             (g) The availability of space in the facility for charitable gaming to take place under RSA

   8          287-D.

   9                                                               X. A north country facility location shall commence construction of the gaming facility

10        within 12 months of receiving approval of the facility location pursuant to paragraph IX, and a pari-

11        mutuel licensee location shall commence any necessary construction or renovation of the area

12        intended for operation of video lottery machines within 12 months of the pari-mutuel licensee or its

13        operator applicant filing an application for an operator's license pursuant to RSA 284-A:5.

14                284-A:3 Authorization for Video Lottery Machines.

15                                                      I. An operator licensee may install, operate, and conduct video lottery machines at a facility

16        location in accordance with the provisions of this chapter.

17                                                            II. A facility location may enter into one or more agreements with an operator licensee to

18        manage or participate in the operation of video lottery machines at its approved or in the case of a

19        pari-mutuel licensee its licensed facility location in accordance with the provisions of this chapter.

20                284-A:4 Licenses; Number of Video Lottery Machines.

21                                                               I. No person shall engage in the ownership, possession, or operation of a video lottery

22        machine unless:

23                                (a) Such person is licensed in accordance with the provisions of this chapter;

24                                (b) Local approval as provided in RSA 284-A:9 has been obtained; and

25                                                          (c) Such person provides adequate space to accommodate charitable gaming as permitted

26        under RSA 287-D.

27                                                      II. Any operator or technology provider shall be licensed by the lottery commission prior to

28        engaging in any operation of video lottery machines.

29                                                                   III. Each operator licensee operating video lottery machines at a pari-mutuel licensee

30        location at which live dog racing is conducted shall be limited to a maximum of 2,000 video lottery

31        machines in operation at each such pari-mutuel licensee location.

32                                                                   IV. Each operator licensee operating video lottery machines at a pari-mutuel licensee

33        location at which live horse racing is conducted shall be limited to a maximum of 5,000 video lottery

34        machines in operation at each such pari-mutuel licensee location.

35                                                                  V. Each operator licensee operating video lottery machines at a north country facility

36        location shall be limited to a maximum of 2,000 video lottery machines in operation at each such

37        approved location.


 

Draft Amendment to HB 2-FN-A-LOCAL - Page 7-

  1                284-A:5 License Requirements for Operators and Technology Vendors.

   2                                                            I. (a) A pari-mutuel licensee or other operator applicant shall obtain an operator's license

   3                                              from the lottery commission to possess, conduct and operate video lottery machines at a facility

   4                                             location. In the event that a pari-mutuel licensee enters into an agreement with another person or

   5                                       entity to manage and operate video lottery machines at its pari-mutuel licensee location, that person

   6                                               or entity shall apply as the operator licensee applicant. An applicant must complete and sign an

   7                                            application on forms prescribed by the lottery commission, and include information regarding the

   8                                          applicant's criminal history background, civil judgments, and financial affairs. The application shall

   9                                                   include the full name, address, date of birth, and other personal identifying information of the

10                                         applicant and all key employees, and if a corporation or other form of business enterprise, the same

11                                                      information shall be provided with respect to each partner, trustee, officer, director, and any

12                                               shareholder or other holder who owns more than 10 percent of the legal or beneficial interests of

13                                            such entity. The lottery commission shall not accept applications from an operator applicant after

14                                          December 31, 2010, unless the operator applicant has an agreement with a facility location that has

15        previously maintained video lottery machine operations consistent with this chapter.

16                                                                  (b) If the applicant or any owner has held or holds a gaming or video lottery machine

17                                            license in a jurisdiction where video lottery machine activities are permitted, the applicant shall so

18                                          state and may produce either a letter of reference from the gaming or lottery enforcement or control

19                                        agency which sets forth the experience of that agency with the applicant, the applicant's associates

20                                         and gaming operations, or a statement under oath that the applicant is or was during the period the

21        activities were conducted in good standing with the agency.

22                                                               (c) The attorney general shall conduct a background review of each operator applicant

23                                      and any of its owners and key employees consistent with RSA 284:A-6. The background review may

24                                          be conducted through any appropriate state or federal law enforcement system and the authorized

25                                             reviewers may seek information as to the subject's financial, criminal, or business background, or

26                                          any other information which the attorney general, in his or her sole discretion, may find relevant to

27                                           the subject's fitness to be associated with the ownership or management of the operation of video

28                                           lottery machines in New Hampshire, including, but not limited to, the subject's character, personal

29                                     associations, and the extent to which the subject is properly doing business in the manner in which it

30                                                          purports to operate. If the applicant is a pari-mutuel licensee and the attorney general has

31                                         conducted a background investigation pursuant to RSA 284:15-b, within the 12 months prior to the

32                                            application filing, the attorney general may rely on the results of the previous investigation to the

33                                             extent the applicant's circumstances have not materially changed. The attorney general shall also

34                                                   take into consideration as evidence of fitness a letter of reference or sworn statement of good

35                                             standing produced pursuant to RSA 284-A:5, I(b). The attorney general shall report the results of

 36               the background review to the lottery commission within 60 days. Notwithstanding all other law to

             37               the contrary, the information provided to the attorney general and the results of any such review


 

Draft Amendment to HB 2-FN-A-LOCAL - Page 8-

  1        shall be confidential and shall not be subject to disclosure or to public inspection, except that the

   2        attorney general, in the attorney general's sole discretion, shall determine the extent to which and

   3        the manner in which said results may be reported to the lottery commission or other state agency or

   4        official and, if reported, whether such results are to retain their confidential character; provided,

   5        however, that whenever the attorney general conducts such a review, the attorney general shall

   6        notify the lottery commission whether or not in his or her opinion such person is fit to be associated

   7        with participation in the ownership or management of the operation of video lottery machines in this

   8        state. The attorney general may conduct such review on the attorney general's motion into the

   9        background of the license applicant or holder, or any person or entity upon whom the license

10        applicant or holder relies for financial support.

11                                                               (d) In any review conducted pursuant to subparagraph (c), the attorney general or any

12        duly authorized member of the attorney general's staff may require by subpoena or otherwise the

13        attendance of witnesses and the production of such correspondence, documents, books, and papers as

14        he or she deems advisable, and for purposes of this section, may administer oaths and take the

15        testimony of witnesses.

16                                                              (e)(I) The lottery commission shall impose an application fee of $100,000 which shall be

17        used to defray the cost of processing the application. If the cost of processing the application exceeds

18        $100,000, the applicant shall pay the difference. In the event that a pari-mutuel licensee makes an

19        agreement pursuant to RSA 284-A:3, II and the operator applicant applies for the operator's license,

20        then the amount of the fee shall be the greater of $100,000 or the actual costs incurred by the lottery

21          commission.

22                                                                     (2) The attorney general shall impose an investigation fee of $50,000 which shall be

23        used to defray the cost of the background investigation. If the cost of the background investigation

24        exceeds $50,000, the applicant shall pay the difference. In the event that a pari-mutuel licensee

25        makes an agreement pursuant to RSA 284-A:3, II and that the operator applicant applies for the

26        operator's license, then the amount of the fee shall be the greater of $50,000 or the actual costs

27        incurred by the attorney general.

28                                                                                   (3) Upon approval of a pari-mutuel licensee or operator licensee, the lottery

29        commission shall charge an initial license fee of $50,000,000 for a pari-mutuel licensee or operator

30        licensee where live horse racing takes place, $20,000,000 for a pari-mutuel licensee or operator

31        licensee where live dog racing takes place, and $10,000,000 for an operator licensee at a north

32        country facility location. The lottery commission shall charge a license fee of $1,000,000 to renew a

33        license to a pari-mutuel licensee or an operator's licensee where live horse racing takes place,

34        $500,000 where live dog racing takes place, and $500,000 for an operator licensee at a north country

35        facility location, however, such person seeking renewal of his or her license shall pay all costs

             36               incurred by the attorney general to conduct an investigation with regard to such application to renew

             37               the operator's license.


 

Draft Amendment to HB 2-FN-A-LOCAL - Page 9-

   1                                                          IL(a) A technology provider licensee applicant shall secure a technology provider license

   2                                                        from the lottery commission. An applicant shall complete and sign an application on forms

   3                                               prescribed by the lottery commission, and include information regarding the applicant's criminal

   4                                                 history background, civil judgments, and financial affairs. The application shall include the full

   5                                          name, address, date of birth, and other personal identifying information of the applicant and all key

   6                                          employees, and if a corporation or other form of business enterprise, the same information shall be

   7                                         provided with respect to each partner, trustee, officer, director, and any shareholder or other holder

   8        who owns more than 10 percent of the legal or beneficial interests of such entity.

   9                                                                  (b) If the applicant or any owner has held or holds a gaming or video lottery machine

10                                            license in a jurisdiction where video lottery machine activities are permitted, the applicant shall so

11                                          state and may produce either a letter of reference from the gaming or lottery enforcement or control

12                                        agency which sets forth the experience of that agency with the applicant, the applicant's associates

13                                           and gaming operation, or a statement under oath that the applicant is or was during the period the

14        activities were conducted in good standing with the agency.

15                                                           (c) The attorney general shall conduct a background review of each technology provider

16                                               applicant and any of its owners and key employees. The review may be conducted through any

17                                             appropriate state or federal law enforcement system and may seek information as to the subject's

18                                          financial, criminal, or business background, or any other information which the attorney general, in

19                                                     his or her sole discretion, may find relevant to the subject's fitness to be associated with the

20                                         distribution of video lottery machines in New Hampshire, including, but not limited to, the subject's

21                                           character, personal associations, and the extent to which the subject is properly doing business in

22                                               the manner in which it purports to operate. The attorney general shall take into consideration as

23                                         evidence of fitness a letter of reference or sworn statement of good standing produced pursuant to

24                                                          subparagraph (b). The attorney general shall report the results of the review to the lottery

25                                                       commission within 60 days. Notwithstanding any other law to the contrary, the information

26                                           provided to the attorney general and the results of any such review shall be confidential and shall

27                                        not be subject to disclosure or to public inspection, except that the attorney general, in the attorney

28                                            general's sole discretion, shall determine the extent to which and the manner in which said results

29                                         may be reported to the lottery commission or other state agency or official and, if reported, whether

30                                                      such results are to retain their confidential character; provided, however, that whenever the

31                                            attorney general conducts such a review, the attorney general shall notify the lottery commission

32                                       whether or not in his or her opinion such person is fit to be associated with the distribution of video

33                                                    lottery machines in this state. The attorney general may conduct a background review on the

34                                            attorney general's motion into the background of the license applicant or holder, or any person or

35        entity upon whom the license applicant or holder relies for financial support.

36                                                                 (d) In any review conducted pursuant to subparagraph (b), the attorney general or any

37                                             duly authorized member of the attorney general's staff may require by subpoena or otherwise the


 

Draft Amendment to HB 2-FN-A-LOCAL - Page 10-

  1        attendance of witnesses and the production of such correspondence, documents, books, and papers as

   2        he or she deems advisable, and for purposes of this section, may administer oaths and take the

   3        testimony of witnesses.

   4                                                                            (e)(l) The lottery commission shall charge the technology provider applicant an

   5        application fee of $100,000 which shall be used to defray the cost of processing the application. If the

   6        cost of processing the application exceeds $100,000, the applicant shall pay the difference.

   7                                                                                    (2) The attorney general shall charge the technology provider applicant an

   8        investigation fee of $25,000 which shall be used to defray the cost of the background investigation. If

   9        the cost of the background investigation exceeds $25,000, the applicant shall pay the difference.

10                                                                        (3) Upon approval of a technology provider licensee, the lottery commission shall

11        charge an initial license fee of $50,000. The lottery commission shall charge a fee of $50,000 to

12        renew a license to a technology provider licensee provided, however, such person seeking renewal of

13        its license shall pay all costs incurred by the attorney general to conduct an investigation with

14        regard to such application to renew the operator's license.

15                284-A:6 Licensure Requirements.

16                                                                                   I. No license shall be issued by the lottery commission unless the applicant

17        demonstrates it complies with the provisions of this section. The lottery commission shall

18        consider as evidence any letter of reference or sworn statement of good standing submitted

19        pursuant to RSA 284-A:5, I(b) or RSA 284-A:5, II(b):

20                                                              (a) The applicant's financial stability, integrity, and responsibility, considering, without

21        limitation, bank references, business and personal income and disbursement schedules, tax returns,

22        and other reports filed with governmental agencies, business and personal accounting records, check

23        records, and ledgers.

24                                                           (b) The trustworthiness of all financial backers, investors, mortgagees, bondholders, and

25        holders of indentures, notes, and other evidences of indebtedness of the applicant.

26                                                                            (c) The applicant's good character, honesty, and integrity, considering, without

27        limitation, information pertaining to family, habits, character, reputation, criminal and arrest

28        record, business activities, financial affairs, and business, professional, and personal associates,

29        covering at least the 10-year period immediately preceding the filing of the application.

30                                                                     (d) The applicant's business ability and experience in the operation of video lottery

31        machines, as appropriate, so as to establish the likelihood of a successful and efficient operation.

32                                                    II. No license shall be issued by the lottery commission to any applicant unless the applicant

33        proves that each director, officer, or key employee and each direct or indirect owner complies with

34        the criteria for licensure contained in this section.

35                                                               III. No license shall be issued by the lottery commission to any operator or technology

30        provider applicant if the applicant, any key employee, or any individual who has an ownership or

37        financial interest in or with the applicant or its facility location is an elected official of the general


 

Draft Amendment to HB 2-FN-A-LOCAL - Page 11-

  1                                            court or executive branch of the state of New Hampshire or the attorney general's office or lottery

  2                                                 commission on a full or part-time or contractual basis at any time during the previous 2 years. If

  3                                            any such applicant, key employee, or any individual who has an ownership or financial interest in

  4                                     the applicant becomes such an elected official, the applicant shall be subject to sanctions pursuant to

  5        RSA 284-A:14.

   6                                                     IV.(a) No license shall be issued by the lottery commission to an operator applicant at a pari-

   7                                              mutuel license location unless the operator applicant is a pari-mutuel licensee seeking to operate

   8                                                     video lottery machines at a pari-mutuel licensee location, or, if not a pari-mutuel licensee, the

   9                                       operator applicant submits proof of an agreement to manage and operate video lottery machines at a

10        pari-mutuel licensee location.

11                                                                  (b) No license shall be issued by the lottery commission to an operator applicant at a

12                                      north country facility location unless the operator applicant is the owner of the north country facility

13                                      location seeking to operate video lottery machines at the north country facility location, or, if not the

14                                       owner of the north country facility location, the operator applicant submits proof of an agreement to

15        manage and operate video lottery machines at the north country facility location.

16                     V. No licensee or any individual or entity that is an owner of, or has a financial interest in or

17     with the licensee or facility location shall be permitted to make a political contribution as defined by

 18               RSA 664:2, VIII.                                                                                                                                                                                                                   

19   VI. The lottery commission shall grant or deny a license under this chapter within 180 days

20               of receiving a completed application, notwithstanding the adoption of interim or final rules.

                                                                                                                                                                                                                        

21   VII. The lottery commission may determine whether the licensing standards of another

                                                                                                                                                                                                                        

22   jurisdiction within the United States or Canada in which an applicant, its affiliate, intermediary

                                                                                                                                                                                                                        

23   subsidiary, or holding company for an operator or technology vendor license is similarly licensed are

                                                                                                                                                                                                                        

24   comprehensive and thorough and provide similar adequate safeguards as those required by this

                                                                                                                                                                                                                        

25   chapter. If the lottery commission makes that determination, it may issue an operator or technology

                                                                                                                                                                                                                        

26   vendor license to an applicant who holds a similar license in such other jurisdiction after conducting

                                                                                                                                                                                                                        

27   an evaluation of the information relating to the applicant from such other jurisdictions, as updated

                                                                                                                                                                                                                        

28   by the lottery commission, and evaluating other information related to the applicant received from

                                                                                                                                                                                                                        

29   that jurisdiction and other jurisdictions where the applicant may be licensed, the lottery commission

                                                                                                                                                                                                                        

30   may incorporate such information, in whole or in part, into its or the attorney general's evaluation of

31               the applicant.

32       284-A:7 Exclusion of Minors.

                                                                                                                                                                                                                        

33   I. No person under 21 years of age shall playa video lottery machine authorized by this

                                                                                                                                                                                                                        

34   chapter. Each violation of this section shall be punishable by a fine of no more than $20,000 and

35               shall be payable by such person who violates this section.

                                                                                                                                                                                                                        

36   II. No operator licensee shall knowingly permit any person under 21 years of age to play or

                                                                                                                                                                                                                 

37   participate in any aspect of the play of a video lottery machine. Each violation of this section shall be


 

Draft Amendment to HB 2-FN-A-LOCAL - Page 12-

  1        punishable by a fine of no more than $20,000 and shall be payable by the operator licensee.

   2                284-A:8 Distribution of Net Machine Income.

   3                                                    I. Forty-nine percent of the net machine income generated by video lottery machines shall be

   4        paid as follows:

   5                                                           (a) Forty percent of the net machine income generated by video lottery machines shall be

   6        paid to the state from which the state shall pay for the costs of regulation, administration, and

   7        enforcement of this chapter under RSA 21-P:11-b, the operation of the central computer system, and

   8        the balance shall be deposited in the general fund of the state.

   9                                                                        (b) Three percent of the net machine income generated by video lottery machines

10        operated by an operator licensee in any specific municipality shall be paid to the municipality in

11        which the operator licensee operates video lottery machines.

12                                                           (c) One percent of the net machine income generated by video lottery machines operated

13        by an operator licensee in any specific county shall be paid to the county in which the operator

14        licensee operates video lottery machines.

15                                                             (d) Two percent of the net machine income generated by all video lottery machines shall

16        be paid to the state treasurer and credited to the commissioner of the department of health and

17        human services to support programs established by RSA 172 to treat problem gambling.

18                                                             (e) One percent of the net machine income generated by video lottery machines shall be

19        paid to the state treasurer and credited to the division of travel and tourism development, department

20        of resources and economic development for the purpose of promoting tourism in the state.

21                                                                (f) One percent of the net income generated by all video lottery machines shall be paid

22        equally to the police standards and training council training fund established in RSA 188-F:30 and

23        the fire standards and training and emergency medical services fund established RSA 21-P:12-d to be

24        used for reimbursement of expenses incurred for certification training and salaries.

25                                                             (g) One percent of the net machine income generated by all video lottery machines shall

26        be paid to the state treasurer and credited to the racing and charitable gaming commission for the

27        purpose of enhancing live racing purses at pari-mutuel licensees. The racing and charitable gaming

28        commission shall adopt rules under RSA 541-A to implement this subparagraph.

29                                                        II. The balance of the funds from the net machine income from video lottery machines shall

30        be retained by the operator licensee that operates such video lottery machines.

31                                                          III. The operator licensee shall deliver the amounts payable to the state or municipality as

32        provided in paragraph I in immediately available funds of the United States on a weekly basis on the

33        first business day of each week. At the time payment is delivered, the operator licensee shall provide

34        a written accounting of net machine income generated from the video lottery machines by the

35        operator licensee on an aggregate basis and the calculation of amounts due to the state separately

36        for distribution pursuant to subparagraphs lea), (d), (e), (f) and (g), the amount due the municipality

37        pursuant to subparagraph I(b), the amount due to the county pursuant to subparagraph I(c), and the


 

Draft Amendment to HB 2-FN-A-LOCAL - Page 13-

  1        balance of net machine income retained by the operator licensee. The operator licensee shall pay a

  2        penalty of $1,000 for each day that payment or the accounting is not delivered on time to the state, a

   3        penalty of $1,000 for each day that payment or the accounting is not delivered to the municipality on

   4        time, and a penalty of $1,000 for each day that payment or the accounting is not delivered to the

   5        county on time.

   6                284-A:9 Procedures for Adoption by Local Community.

   7                                                       I. Any municipality in which a facility location is situated may adopt the provisions of RSA

   8        284-A, to allow the operation of video lottery machines, in the following manner:

   9                                                                 (a) In a town, other than a town that has adopted a charter pursuant to RSA 49-D, the

10        questions shall be placed on the warrant of an annual or special town meeting, by the governing body

11        or by petition pursuant to RSA 39:3.

12                                                           (b) In a city or town that has adopted a charter pursuant to RSA 49-C or RSA 49-D, upon

13        request of a facility location to authorize the operation of video lottery machines within the

14        municipality in accordance with the provisions of RSA 284-A, the governing body shall place the

15        question on the ballot to be voted upon at the next regularly scheduled municipal or biennial election

16        unless such election is more than 90 days from the request. In such circumstance, the governing

17        body shall place the question on the ballot for a special election called for the purpose of voting on

18        said question and which special election shall occur within 75 days after the request is made. Such

19        special election shall be held at the usual ward polling places by the regular election officials.

20                                                        (c) If a majority of those voting on the question vote ''Yes'', RSA 284-A shall apply in such

21        town or city and the operation of video lottery machines shall be permitted within such town or city in

22        accordance with RSA 284-A. If a majority of those voting on the question vote "No" the question may

23        be voted on at a subsequent time in accordance with RSA 284-A:9, I and II provided, however, the

24        town may consider the question at no more than one special meeting and the annual town meeting in

25        the same calendar year after a "No" vote. A city or town subject to RSA 284-A:9, II may consider the

26        question at no more than one special election and a regular municipal or biennial election in the

27        same calendar year after a "No" vote.

28                                                                 (d) The wording of the question shall be substantially as follows: "Shall we adopt the

29        provisions of RSA 284-A allowing the operation of video lottery machines at [insert the name of the

30        facility location] located within the town?"

31                                                         II. When a facility location requests a town or city to act under RSA 284-A:9, I, the facility

32        location shall pay all costs associated with carrying out the actions under this section.

33                284-A:I0 Inspection of Video Lottery Machines; Penalty for Tampering or Manipulating.

34                                                                   I. The lottery commission shall, periodically test video lottery machines installed at a

35        facility location. In conducting such tests, the lottery commission shall use the services of an

36        independent laboratory, and the cost of such independent laboratory shall be paid by the

37        technology provider.


 

Draft Amendment to HB 2-FN-A-LOCAL - Page 14-

  1                                                         II. Any person who purposely manipulates the outcome, payoff, or operation of any video

   2        lottery machine by physical, electronic, or mechanical means, shall be guilty of a felony.

   3                284-A: 11 Video Lottery Machines.

   4                                                     I. An operator licensee shall provide to the lottery commission and the racing and charitable

   5        gaming commission, by diagram or narrative, a description of:

   6                                (a) The location of each video lottery machine available for play by the public.

   7                                (b) The location of all areas for the storage, maintenance, or repair of video lottery

   8           machines.

   9                                (c) A description of all security measures to be taken for the safeguarding of video lottery

10           machines.

11                                (d) The location and security measures taken for the safeguarding of all moneys, tokens,

12        or other items of value utilized in the use of video lottery machines.

13                                                                 (e) All procedures for the operation, maintenance, repair, and inserting or removing of

14        moneys, tokens, or other items of value from video lottery machines.

15                                (f) All internal control systems as required by RSA 284:21-w.

16                                                          (g) All of the above shall be approved by the lottery commission prior to commencing the

17        operation of any video lottery machines.

18                                                               II. No video lottery machine shall be possessed, maintained, exhibited, brought into, or

19        removed from a facility location by any person unless such machine has permanently affixed to it an

20        identification number or symbol authorized by the lottery commission and prior notice of any such

21        movement has been given to the lottery commission.

22                                                     III. Each operator licensee shall maintain secure facilities for the counting and storage of all

23        moneys, tokens, or other items of value utilized in the conduct of video lottery machines.

24                                                    IV. The drop boxes and other devices shall not be brought into a facility location or removed

25        from an video lottery machine, locked or unlocked, except at such specific times and such places and

26        according to such procedures as the lottery commission may require to safeguard such boxes and

27        devices and their contents.

28                                                               V. No video lottery machine shall be used to conduct gaming unless it is identical in all

29        electrical, mechanical, and other aspects to a model which has been specifically tested by the lottery

30        commission and licensed for use by the lottery commission.

31                                                        VI. All video lottery machines in operation at a facility location shall provide a payoff of an

32        average of at least 87 percent.

33                                                           VII. All tickets given as prizes or winnings from video lottery machines shall be redeemed

34        for cash within one year after the date of winning. Upon the expiration of such one-year period, the

35        value of such unredeemed tickets shall be considered net machine income of the issuing operator

36        licensee.

                            37                VIII. (a) An operator licensee who operates video lottery machines at a pari-mutuel licensee


 

Draft Amendment to HB 2-FN-A-LOCAL - Page 15-

1 location shall not be restricted in the days of operation of such machines, provided the pari-mutuel

2 licensee has scheduled at least the number of days of racing as required by RSA 284:22-a, II(a)(3).

3 (b) An operator licensee who operates video lottery machines at a north country facility

4 location shall not be restricted in the days of operation of such machines.

5 IX. Video lottery machines shall be operated only at times when the public is allowed access

6 to the locations. No automatic teller machines shall be located within 50 feet of video lottery

7 machines.

8 284-A:12 Term of License. Any operator's license or technology provider's license issued

9 pursuant to this chapter and any renewal thereof shall be valid for 5 years unless earlier suspended

10                                              or revoked by the lottery commission. The lottery commission shall adopt procedures for license

11                                               renewal that take into consideration whether the applicant has been previously licensed in good

12         standing under this chapter.

13                                              284-A:13 Presence of the Lottery Commission. The lottery commission and the division of state

14                                                     police gaming enforcement unit may be present at any facility location at which video lottery

15                                         machines are operated at all times when the facility is open to the public. The operator licensee may

16                                       be required by the lottery commission or gaming enforcement division of the department of safety to

17                                                   provide such office space and equipment which the commission shall determine is reasonably

18         necessary or proper.

19                 284-A:14 Sanction Powers of the Lottery Commission.

20                                                        I. The lottery commission shall have the sole and exclusive authority following appropriate

21                                      hearings and factual determinations, to impose sanctions against any person for any violation of this

22                                   chapter or any rule of the lottery commission adopted under the provisions of this chapter as follows:

23                                (a) Revocation or suspension of a license.

24                                                                          (b) Civil penalties as may be necessary to punish misconduct and to deter future

25        violations, which penalties may not exceed $50,000 for each violation.

26                                (c) Order restitution of any moneys or property unlawfully obtained or retained by a person.

27                                                       (d) Issue a cease and desist order which specifies the conduct which is to be discontinued,

28        altered, or implemented by the person.

29                                                                  (e) Issue letters of reprimand or censure, which shall be made a permanent part of the

30        file of each person so sanctioned.

31                                (f) Impose any or all of the foregoing sanctions in combination with each other.

32                                                            II. In determining appropriate sanctions in a particular case, the lottery commission shall

33          consider:

34                                                            (a) The risk to the public and to the integrity of video lottery machine operations created

35        by the conduct of the person.

36                                                       (b) The seriousness of the conduct of the person and whether the conduct was purposeful

37                                           or with knowledge that it was in contravention of the provisions of this chapter or the rules of the


 

Draft Amendment to HB 2-FN-A-LOCAL - Page 16-

   1        racing and charitable gaming commission or the lottery commission.

   2                                (c) Any justification or excuse for such conduct.

   3                                (d) The prior history of the person involved.

   4                                                                     (e) The corrective action taken by the person to prevent future misconduct of a like

   5        nature from occurring.

   6                                                                          (f) In the case of a monetary penalty, the amount of the penalty in relation to the

   7        misconduct and the financial means of the person.

   8                                                              (g) In the event that a person receives 3 civil penalties during the term of such person's

   9        license, the lottery commission may subject such person to enhanced fines or other disciplinary

10        action.

11                                                                   284-A:15 Declaration of Limited Exemption from Operation of Provisions of 15 U.S.C.

12        section 1171-1172. Pursuant to section 2 of an act of Congress of the United States entitled "An

13        act to prohibit transportation of gambling devices in interstate and foreign commerce," approved

14        January 2, 1951, being Chapter 1194, 64 Stat 1134, and also designated as 15 U.S.C. sections 1171-1177,

15        the state of New Hampshire, acting by and through the duly elected and qualified members of its

16        legislature, does hereby, in accordance with and in compliance with the provisions of that section 2 of

17        that act of Congress, declare and proclaim that it is in the state's best interest to benefit from limiting

18        gambling device revenues but prevent the proliferation of gambling devices by limiting approved facility

19        locations and therefore that section 2 of that act of Congress shall not apply to any gambling device in

20        this state where the transportation of such a device is specifically authorized by and done in

21        compliance with the provisions of this chapter and any rules adopted pursuant to it, and that any

22        such gambling device transported in compliance with state law and rules shall be exempt from the

23        provisions of that act of Congress.

24                                                 284-A:16 Legal Shipment of Gaming Devices into New Hampshire. All shipments into this state

25        of gaming devices, the registering, recording, and labeling of which has been duly made by the

26        manufacturer or dealer in accordance with sections 3 and 4 of an act of Congress of the United States

27        entitled "An Act to Prohibit Transportation of Gambling Devices in Interstate and Foreign

28        Commerce, approved January 2, 1951, being chapter 1194, 64 Stat. 1134, and also designated as 15

29        U.S.C. sections 1171-1172, shall be deemed legal shipments into this state.

30                                                         2 New Section; Lottery Commission; Administration of Video Lottery. Amend RSA 284 by

31        inserting after section 21-v the following new section:

32                284:21-w Video Lottery; Duties of the Lottery Commission; Administration of Video Lottery.

33                        1. The lottery commission shall:

34                                                      (a) Collect all license fees imposed upon any applicant and all taxes imposed by

35           RSA 284-A.

36                                                   (b) Certify net machine income by inspecting records, conducting audits, having its

37        agents on site, or by any other reasonable means.


 

Draft Amendment to HB 2-FN-A-LOCAL

- Page 17-

   1                                                                 (c) Establish a central computer system located at the office of the lottery commission

   2        linking all video lottery machines to insure control over video lottery machines. The lottery

   3        commission shall establish a selection procedure for such contracts and ensure that the central

   4        computer system uses a widely adopted communications protocol approved by the Gaming Standards

   5        Association.

   6        (d) Require all holders of an operator's license issued by the lottery commission pursuant

   7        to RSA 284-A to maintain a system of internal control. At a minimum, the operator licensee's

   8        proposed system of internal controls shall:

   9                                                                      (1) Safeguard its assets and revenues, including, but not limited to the recording of

10        cash and evidences of indebtedness related to the video lottery machines.

11                                                                           (2) Provide for reliable records, accounts, and reports of any financial event that

12        occurs in the operation of a video lottery machine.

13                                                                           (3) Ensure that each video lottery machine directly provides or communicates all

14        required activities and financial details to the central computer system.

15                                        (4) Provide for accurate and reliable financial records.

16                                                                  (5) Ensure any financial event that occurs in the operation of a video lottery machine

17        is performed only in accordance with the management's general or specific authorization.

18                                                                          (6) Ensure that any financial event that occurs in the operation of a video lottery

19        machine is recorded adequately to permit proper and timely reporting of net machine income and the

20        calculation thereof and the related fees and taxes.

21                                                                     (7) Ensure that access to assets is permitted only in accordance with management's

22        specific authorization.

23                                                                     (8) Ensure that recorded accountability for assets is compared with actual assets at

24        reasonable intervals and appropriate action is taken with respect to any discrepancies.

25                                        (9)        Ensure that all functions, duties, and responsibilities are appropriately

26        segregated and performed in accordance with sound financial practices by qualified personnel.

27                                                                       (e) Establish technical standards for approval of video lottery machines, including

28        mechanical and electrical reliability and security against tampering, as it may deem necessary to

29        protect the public from fraud or deception and to ensure the integrity of their operation.

30                                                     II. The lottery commission may employ certain assistants to carry out the provisions of this

31        section and RSA 284-A, and may employ such additional assistants and employees as the governor

32        and council shall authorize. Such assistants and employees shall receive compensation at rates to be

33        established by the department of administrative services, division of personnel, however, such

34        compensation shall be funded by proceeds paid to or received by the lottery commission pursuant to

35        RSA 284-A. No employee of the lottery commission shall have any pecuniary or other interest in any

36        supplier or agent to the commission 01· in any facility location or licensee licensed under RSA 284-A.

37

III. The lottery commission shall have the authority to issue subpoenas and compel the


 

Draft Amendment to HB 2-FN-A-LOCAL - Page 18-

  1        attendance of witnesses, to administer oaths, and to require testimony under oath.

  2                                                              IV. No later than March 31 in each calendar year, the lottery commission shall provide a

  3        report to the fiscal committee of the general court regarding the generation of revenues of video

   4        lottery machines by pari-mutuel licensees or operator licensees.

  5                        V. With regard to meetings, minutes, and records of the lottery commission:

   6                                                            (a) The lottery commission shall notice all proceedings and shall make and keep a record

   7        of all proceedings held at public meetings of the lottery commission. A verbatim transcript of those

   8        proceedings shall be prepared by the lottery commission upon the request of any commissioner or

   9        upon the request of any other person and the payment by that person of the costs of preparation. A

10        copy of the transcript shall be made available to any person upon request and payment of the costs of

11        preparing the copy.

12                                                                    (b) The lottery commission shall maintain such other files and records as the lottery

13        commission determines is necessary.

14                                                                             (c) All information and data required by the commission, to be furnished to the

15        commission, or which may otherwise be obtained, shall be confidential and shall not be revealed in

16        whole or in part except in the course of the necessary administration of this chapter, or upon the

17        lawful order of a court of competent jurisdiction, or with the approval of the attorney general, to a

18        duly authorized law enforcement agency.

19                                                                      (d) All information and data pertaining to an applicant's criminal record, family, and

20        background furnished to or obtained by the lottery commission from any source shall be confidential

21        and shall be withheld in whole or in part. Such information shall be released only upon the lawful

22        order of a court of competent jurisdiction, or with the approval of the attorney general, to a duly

23        authorized law enforcement agency.

24                                                          (e) Notice of the contents of any information or data released, except to a duly authorized

25        law enforcement agency pursuant to subparagraphs (c) or (d), shall be given to any applicant,

26        registrant, or licensee in a manner prescribed by the rules adopted by the lottery commission.

27                                                           (f) All records, information, or data maintained or kept by the lottery commission shall be

28        maintained or kept at the office of the gaming enforcement unit.

29                                                                3 New Sections; Department of Safety; Gaming Enforcement Unit Established. Amend

30        RSA 21-P by inserting after section 11-a the following new sections:

31                21-P:11-b Division of State Police; Gaming Enforcement Unit.

32                                                            1. There is established within the department of safety, division of state police, a gaming  

33       enforcement unit under the supervision of the commissioner of the department of safety.

34        Notwithstanding RSA 106-B:15, the unit shall:

35                                                                   (a) Investigate violations of RSA 284 or RSA 284-A and the rules adopted under the

36        provisions of RSA 284 or RSA 284-A and initiate proceedings before the lottery commission for

37        such violations.


 

Draft Amendment to HB 2-FN-A-LOCAL - Page 19-

    1                                (b) Report the results of any investigation conducted to the lottery commission.

    2                                (c) Participate in any hearing conducted by the lottery commission.

    3                                (d) Investigate crimes that occur on the premises of a facility location.

    4                                                                              II. The commissioner of the department of safety shall organize the unit as the

    5                                     commissioner deems necessary. The commissioner of safety may employ such state police personnel

    6        as the commissioner deems necessary to fulfill the responsibilities of the gaming enforcement unit.

    7                                                    21-P:11-c Enforcement Expenditures. The governor and council with the prior approval of the

    8                                                 fiscal committee of the general court, upon request from the commissioner of the department of

    9                                                      safety may authorize the transfer of general funds as authorized in RSA 284-A:8, ICa) to the

  10        department of safety to implement and enforce RSA 21-P:ll-b, RSA 284, and RSA 284-A.

11                                                             4 New Section; Racing and Charitable Gaming Commission; Duties. Amend RSA 284 by

  12        inserting after section 6-a the following new section:

  13                284:6-b Duties of the Racing and Charitable Gaming Commission.

  14                        I. The racing and charitable gaming commission shall:

  15                                                                   (a) Provide to the lottery commission all records pertaining to the licensing of a pari-

  16                                        mutuel licensee under RSA 284-A within 30 days after the racing and charitable gaming commission

  17        receives a request.

  18                                                                 (b) Hear and make recommendations to the lottery commission in reasonable order on

  19        all license applications for a license under RSA 284-A:6.

  20                                                            II. The racing and charitable gaming commission shall make its recommendations to the

  21        lottery commission in writing.

  22                        III. With regard to minutes and records of the racing and charitable gaming commission:

  23                                                                         (a) The racing and charitable gaming commission shall keep a written record of all

  24                                       proceedings of public meetings of the commission pursuant to this chapter. A verbatim transcript of

  25                                                those proceedings shall be prepared by the racing and charitable gaming commission upon the

  26                                   request of any commissioner or upon the request of any other person and the payment by that person

  27                                    of the costs of preparation. A copy of a transcript shall be made available to any person upon request

  28        and payment of the costs of preparing the copy.

  29                                                                    (b) The racing and charitable gaming commission shall keep and maintain a list of all

  30                                        notices it receives under RSA 284-A, together with a record of all actions taken with respect to such

  31                                        notices. A file and record of the racing and charitable gaming commission's actions shall be open to

  32                                         public inspection provided, however, that the information regarding any applicant whose license or

  33                                          registration has been denied, revoked, or not renewed shall be removed from such list after 5 years

  34        from the date of such action.

  35                                                                    (c) The racing and charitable gaming commission shall maintain such other files and

  36       records as the commission determines is necessary .

. 37                                (d) All information and data required by the racing and charitable gaming commission to


 

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   1        be furnished to it, or which may otherwise be obtained, shall be considered to be confidential and

   2        shall not be revealed in whole or in part except in the course of the necessary administration of this

   3        chapter, or upon the lawful order of a court of competent jurisdiction, or with the approval of the

   4        attorney general, to a duly authorized law enforcement agency.

   5                                                                      (e) All information and data pertaining to an applicant's criminal record, family, and

   6        background furnished to or obtained by the racing and charitable gaming commission from any source

   7        shall be considered confidential and shall be withheld in whole or in part. Such information shall be

   8        released upon the lawful order of a court of competent jurisdiction or to a duly authorized law

   9        enforcement agency.

10                                                           (f) Notice of the contents of any information or data released, except to a duly authorized

11        law enforcement agency pursuant to subparagraphs (d) or (e), shall be given to any applicant,

12        registrant, or licensee in a manner prescribed by the rules and regulations adopted by the racing and

13        charitable gaming commission.

14                                                                      (g) All records, information or data maintained or kept by the racing and charitable

15        gaming commission shall be maintained or kept at the office of the lottery commission.

16                5 License Restricted. RSA 284:16-c is repealed and reenacted to read as follows:

17                284: 16-c License Restricted.

18                                                      I. Notwithstanding any other provision of law, the racing and charitable gaming commission

19        shall not issue a license to conduct live thoroughbred horse racing or live harness horse racing

20        pursuant to RSA 284:16 to any applicant if the place where such races or race meets are to be held is

21        within a radius of 40 miles of the place where live horse races or race meets for at least the number

22        of days as required in RSA 284:22-a, II(a)(3) have already been licensed pursuant to RSA 284:16,

23        provided however, that the racing and charitable gaming commission may issue a license to conduct

24        live harness racing to the holder of a license to conduct live thoroughbred racing if the live harness

25        racing is conducted at the same place where the live thoroughbred racing is being conducted.

26                                                                          II. Notwithstanding any other provision of law, the racing and charitable gaming

27        commission shall not issue a license to conduct live dog racing pursuant to RSA 284:16-a to any

28        applicant if the place where the races or race meets are to be held is within a radius of 40 miles of

29        the place where such races or race meets have already been licensed pursuant to RSA 284:16-a.

30                6 Restriction on Gambling. RSA 284:17-c is repealed and reenacted to read as follows:

31                                                                 284:17-c Restriction on Gambling. Except as provided in the introductory paragraph of

32        RSA 284:22, RSA 284:22-a, and RSA 284-A, no licensee who holds running horse races shall at the

33        same facility hold any other kinds of races or permit any other type of gambling except harness horse

34        races and activities licensed by the lottery commission or the racing and charitable gaming

35        commission.

                     36       7 New Paragraph; Pari-Mutuel Licensee; Cocktail Lounge License. Amend RSA 178:20, by

             37               inserting after paragraph V the following new paragraph:


 

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  1                                                       VI. The commission may issue a special license to a person holding a pari-mutuel license or

   2                                        an operator's license at a pari-mutuel licensee location under the provisions of RSA 284-A provided

   3                                           the pari-mutuel licensee location has an existing liquor license. Such special license shall allow the

   4                                          sale of liquor, wine, and beverages within the pari-mutuel licensee location, including dining room,

   5                                     function room, gaming room, lounge, or any other area designated by the commission, without regard

   6                                                 to whether meals are served therein, but only during the time gaming is being conducted under

   7                                              RSA 284-A. A person licensed under this section shall comply with RSA 179:44, which prohibits

   8        providing free alcoholic beverages to members, patrons, or guests.

   9                                                    8 New Subparagraph; Authorized Video Lottery Machines. Amend RSA 647:2, V by inserting

10        after subparagraph (c) the following new subparagraph:

11                                (d) Video lottery machines authorized pursuant to RSA 284-A.

12                9 Rehabilitation of Problem Gaming. Amend RSA 172:2-a to read as follows:

13                                                  172:2-a Program Established. The commissioner shall provide for the scientific care, treatment,

14                                        and rehabilitation of gambling, alcohol, and drug abusers, and work towards the prevention of, and

15                                                 assist in the control of, gambling, alcohol, and drug abuse within the state through education,

16        treatment, community organization, and research.

17                10 Rehabilitation of Problem Gaming. Amend RSA 172:8 to read as follows:

18                172:8 Duties of Commissioner. The commissioner shall:

19                                                        I. Study the problems presented by gambling, alcohol, and drug abuse, including methods

20                                            and facilities available for the care, treatment, custody, employment, and rehabilitation of persons

21        who are problem gamers, inebriates, alcohol abusers, drug dependent, or drug abusers.

22                                                                 II. Promote meetings and programs for the discussion of gambling, alcohol, and drug

23                                            dependency and abuse for the guidance and assistance of individuals, schools, courts, and other

24        public and private agencies.

25                                                        III. Conduct, promote and finance, in full or in part, studies, and other appropriate facilities

26        dealing with the physical, psychological, and/or social aspects of gambling, alcohol, and drug abuse.

27                                                                      IV. Have the authority to accept or reject for examination, diagnosis, guidance, and

28                                                        treatment, insofar as funds and facilities permit, any resident of the state who comes to the

29        commissioner voluntarily for advice and treatment.

30                        V. [Repealed.]

31                                                                     VI. Render biennially to the governor and council a report of his activities including

32        recommendations for improvements therein by legislation or otherwise.

33                                                            VII. Coordinate community medical resources for the emergency medical care of persons

34                                         suffering acute mental or physical reaction to gambling, alcohol, or drugs and of persons suffering

35        from drug dependency.

                             36               VIII. Employ such assistants as may be necessary to carry out the purposes of this chapter,

             37               in accordance with state personnel regulations, and within available appropriations and funds.


 

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   1                                                          IX. Disseminate information on the subjects of gambling, alcohol, and drug abuse for the

   2        guidance and assistance of individuals, schools, courts and other public and private agencies.

   3                        X. [Repealed.]

   4                11 Problem Gaming Added. Amend RSA 172:8-a to read as follows:

   5                                                     172:8-a Confidentiality of Client Records. No reports or records or the information contained

   6                                                    therein on any client of the program or a certified gambling, alcohol, or drug abuse treatment

   7                                          facility or any client referred by the commissioner shall be discoverable by the state in any criminal

   8                                                     prosecution. No such reports or records shall be used for other than rehabilitation, research,

   9                                            statistical or medical purpose, except upon the written consent of the person examined or treated.

10                                                      Confidentiality shall not be construed in such manner as to prevent recommendation by the

11                                                    commissioner to a referring court, nor shall it deny release of information through court order

12        pursuant to appropriate federal regulations.

13                 12 Problem Gaming Added. Amend RSA 172:8-b to read as follows:

14                                                           172:8-b Rulemaking. The commissioner shall adopt rules under RSA 541-A relative to the

15        following:

16                                                     1. The acceptance, care and treatment of gambling, alcohol, or drug dependent persons and

17                                          alcohol or drug abusers who are clients of the program established under this chapter or a certified

18        substance abuse treatment facility.

19                        II. A fee schedule and collection of fees under RSA 172: 14, IV.

20                        III. Certification of substance abuse treatment facilities including, but not limited to:

21                                (a) Program content;

22                                (b) Qualifications of program staff; and

23                                (c) Type of substance abuse treatment offered.

24                                                                   IV. Certification and recertification of gambling, alcohol, and drug abuse counselors

25        including, but not limited to:

26                                (a) Peer review of applicants.

27                                (b) Minimum qualifications and competency.

28                                (c) Education and continuing education.

29                                (d) Experience required.

30                                (e) Required knowledge of gambling, alcohol, and drug abuse counseling.

31                                                                           (f) Such other matters as the commissioner may deem necessary to carry out the

32        purposes of this chapter.

33                        V. Voluntary admissions under RSA 172:13.

34                13 Acceptance of Grants; Treatment of Problem Gamers. Amend RSA 172:9 to read as follows:

35                                                    172:9 Acceptance of [Grants] Funds. The commissioner is authorized to accept in the name of

36        the state special grants or money or services from the federal or state governments or any of their

37        agencies and may accept funds from the operation of video lottery pursuant to RSA 284-A:8,


 

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1       I(d) and gifts to carryon the functions provided for in this chapter.

2                14 Effective Date. This act shall take effect upon its passage.