The Senate met at 10:00 a.m.

A quorum was present.

The prayer was offered by Rev. David P. Jones, Senate Chaplain.

Divine Maestro, come out of the audience and be the conductor of this symphony today. May these political musicians play their instruments carefully, well and together – so that what comes forth from them may not hurt our ears or break our hearts – but rather may be a melody that is clearly recognizable as music that comes off of your score. Amen

Senator Squires led the Pledge of Allegiance.

SB 27, relative to assessment fee schedules for trust companies and banks. Banks Committee. Vote 4-0. Ought to Pass, Senator Fraser for the committee.

SB 18, relative to the rulemaking authority of the state board of education regarding certain educational personnel. Education Committee. Vote 6-0. Ought to pass with amendment, Senator Disnard for the committee.

1999-0599s

04/10

Amend RSA 21-N:9, II (s) as inserted by section 1 of the bill by replacing it with the following:

(s) Certification standards for educational personnel, and educator certification fees for granting credentials to educational personnel, including teachers, paraprofessionals, superintendents, assistant superintendents, special education administrators, business administrators, principals, vocational directors, coordinators of comprehensive health education and services, directors of pupil personnel services, guidance directors, guidance counselors, school psychologists, associate school psychologists, speech-language specialists, social workers, health educators, physical education teachers, [home economics teachers], consumer and family science teachers, elementary teachers, specialists in assessment of intellectual functioning, media supervisors, [and] media generalists, and master teachers as authorized by RSA 186:8 and RSA 186:11, X, [and] professional credentials including beginning educator credentials, experienced educator credentials, and intern licenses, and other classifications of educators, administrators, specialists, and paraprofessionals necessary to address educational needs as determined by the state board upon the recommendation of the professional standards board pursuant to RSA 186:60.

1999-0599s

AMENDED ANALYSIS

This bill revises the rulemaking authority of the state board of education to include master teachers, and other educators, administrators, and paraprofessionals necessary to address certain educational needs.

SB 77, relative to authorized regional enrollment area schools. Education Committee. Vote 5-1. Ought to pass with amendment, Senator McCarley for the committee.

1999-0598s

04/10

Amend RSA 195-A:3, V as inserted by section 1 of the bill by replacing it with the following:

V. An area school planning board may recommend that there be established an authorized regional enrollment area plan for elementary or secondary schools, or both, or any other reasonable combination of grades, composed of all the school districts represented by its membership or any specified combination thereof. The planning board shall prepare a written plan for the proposed regional enrollment area, which shall be signed by at least a majority of the membership of such board, which shall set forth the following: (a) the name or names of each area school or schools proposed, and the receiving district in which such schools shall be located; (b) the sending districts or portions thereof which, together with the receiving district, shall form the region which each area school or schools shall serve; (c) the grades for which each area school or schools shall be responsible (which may include a combination of elementary and secondary grades or any other reasonable classification); (d) the formula for calculation of tuition; (e) the manner in which any form of state aid shall be credited, unless otherwise expressly provided by law; (f) the existing school buildings in the several school districts which shall be discontinued; (g) the existing school buildings in the receiving district which shall be designated as an area school or schools including any existing buildings to be initially enlarged; (h) the proposed new area school building or buildings to be initially constructed in the receiving district and the initial location of same; (i) the estimated initial enrollment in each area school from each of the sending districts and from the receiving district; (j) the proposed date or dates of operating responsibility of each planned area school, which date may be subsequently postponed by the state board upon petition of a receiving or sending district, in the event of unforeseen circumstances or for good cause shown; (k) the scheduled date or dates during each year upon which tuition payments shall be made by the sending districts to the receiving districts and whether the tuition shall be payable in installments, or in a lump sum; (1) procedure for improvement or changes in curriculum and other school programs and services; (m) the method, time, and manner in which the plan may be amended, subject to state board approval, where not incompatible with law; (n) the term of the agreement shall be for a minimum of 10 years unless otherwise provided by mutual agreement of the school districts consistent with the provisions of RSA 195-A:3, IX; (o) the manner in which the interests of the school boards of the sending districts will be addressed; (p) any other matters, not incompatible with law, which the area school planning board may consider appropriate to include in such written plan.

Amend RSA 195-A:14, IX as inserted by section 2 of the bill by replacing it with the following:

IX. The vote to withdraw from an AREA agreement shall take effect on July 1 of the calendar year which shall be at least 2 years after the date on which the withdrawal vote is adopted. The plan may provide for an earlier date subject to the mutual agreement of the districts involved.

1999-0598s

AMENDED ANALYSIS

This bill provides for certain changes in the current area school law with regard to the length of an area agreement, the withdrawal of a district from an area agreement, the representation of the sending district on the receiving district’s school board, and the manner in which the interests of the school boards of the sending districts will be addressed within the area plan.

SB 152-L, relative to the procedures for establishing a charter school. Education Committee. Vote 5-1. Ought to Pass, Senator D'Allesandro for the committee.

SB 170-FN-A, establishing a parents as teachers pilot program in Sullivan county and making an appropriation therefor. Education Committee. Vote 6-0. Ought to pass with amendment, Senator Disnard for the committee.

1999-0669s

04/09

Amend the bill by replacing all after the enacting clause with the following:

1 New Subdivision; Parents as Teachers Program. Amend RSA 193 by inserting after section 33 the following new subdivision:

Parents as Teachers Program

193:34 Policy and Purposes.

I. This act recognizes the importance of the early childhood years upon children’s brain development. Given appropriate stimulation, babies develop critical cognitive and social skills from birth to age 3. These early years provide a window of opportunity to enrich a child’s cognitive and social development. The least intrusive and most successful way to impact early childhood experiences is to educate parents as to how they can best teach their children. Studies have shown that parents who are trained as to how to interact with their children can help their children enter school ready to learn and are more likely to stay involved with their child’s educational process throughout the school years of the child. Without such training, parents may not develop the skills necessary to help stimulate for their children and a critical opportunity for parent involvement may be lost.

II. An established program, known as "parents as teachers," creates a partnership between parents and early childhood development professionals. Early childhood development professionals conduct regular home visits and group meetings to help parents understand what to expect from their children in each stage of development and to teach parents how to encourage learning, manage challenging behavior and promote stronger parent-child relationships. The "Parents as Teachers Program" has existed in the United States since 1981, and now has a presence in 49 states across the United States, including some sites in New Hampshire administered by the Parent Information Center, as well a presence in 6 foreign countries.

III. The purpose of this act is to expand the "parents as teachers" program in New Hampshire by developing a school district based site in Sullivan county to operate for 4 years. The program may also be made available in urban areas. Sullivan county has been chosen because of its unique demographic profile, including: the high number of risk factors affecting its children and the children and the existence of a good referral source for the parents as teachers program through the "Good Beginnings" program at the county’s major hospital, the Valley Region Hospital. This act will create an oversight committee to monitor the implementation of the school district based site program during the 4 year period and to make recommendations concerning the replication of the parents as teachers program in other school districts in New Hampshire.

193:35 Parents as Teachers Program Established.

I. There is hereby established a parents as teachers program in Sullivan county to be administered statewide by the Parent Information Center, in cooperation with local school administrative unit 6 and the department of education. The program shall be made available to parents of children born and residing in Sullivan county during the effective period of the program. The program shall offer specific components recommended by the Parents as Teachers Program National Center which may include home visits to each family by a certified parent educator, group meetings for participating families, child development screenings, and a resource network to help families access other early childhood development programs in the county.

II. School administrative unit 6, in cooperation with the Parent Information Center, shall develop specific guidelines and procedures for implementing the parents as teachers program.

III. The parents as teachers program shall allow for the participation of 180 families over the 4-year period in accordance with a schedule to be determined by the parents as teachers oversight committee established in RSA 193:36. The commissioner of the department of education shall ensure that funds appropriated for the purposes of the parents as teachers program are distributed for the purposes established in this subdivision.

193:36 Parents as Teachers Oversight Committee Established; Membership; Duties.

I. There is hereby established a parents as teachers oversight committee to assess the effectiveness of the parents as teachers program in Sullivan county and to make recommendations concerning the replication of the program in other school districts in the state.

II. The committee shall be comprised of 14 members as follows:

(a) One member of the senate, appointed by the president of the senate.

(b) One member of the house of representatives, appointed by the speaker of the house of representatives.

(c) One member appointed by the governor.

(d) The commissioner of education, or designee.

(e) The commissioner of health and human services, or designee.

(f) One member from the Parent Information Center, appointed by said organization.

(g) One member from school administrative unit 6, appointed by the superintendent of that organization.

(h) One member from school administrative unit 43, appointed by the superintendent of that organization.

(i) Two members who are parents participating in the program, appointed by the superintendents of school administrative units 6 and 43.

(j) One member from the Children’s Alliance of New Hampshire, appointed by said organization.

(k) One member from New Hampshire Head Start, appointed by the Head Start Directors Association.

(l) One member from the university of New Hampshire, appointed by the president of said organization.

(m) One member from the business community, appointed by the superintendents of school administrative units 6 and 43.

III. Legislative members of the committee shall receive mileage at the legislative rate when attending to the duties of the committee.

IV. The committee shall perform the following duties:

(a) Examine the effectiveness of a school based site for the parents as teachers program.

(b) Identify early childhood care and education collaboration partners.

(c) Involve parental input in the evaluation of the school based program.

(d) Recommend whether appropriations should be sought to replicate the parents as teachers programs in other school districts in New Hampshire, including a recommendation, during the second year of operation of the program, as to whether appropriations should be sought to begin a second school district based site in another county in New Hampshire. For purposes of choosing a second school district based site, preference shall be given to a county with an urban population so that the demographics of New Hampshire are reflected.

V. The members of the oversight committee shall elect a chairperson from among the members. The first meeting of the committee shall be called by the senate member of the committee. The first meeting shall be held within 45 days of the effective date of this section. Six members of the committee shall constitute a quorum.

VI. The committee shall issue an initial report on its findings and any recommendations for any proposed legislation to the senate president, the speaker of the house of representatives, the senate clerk, the house clerk, the governor, and the state library on or before November 1, 2000. A final report of findings and recommendations shall issue within 90 days of the end of the final fiscal year for which funding for the parents as teachers program in Sullivan county is appropriated.

VII. The department of education shall provide administrative support to the committee as may be necessary to implement the parents as teachers program.

2 Appropriation. There is hereby appropriated the sum of $54,000 for the fiscal year ending June 30, 2000, $66,000 for the fiscal year ending June 30, 2001, $79,000 for the fiscal year ending June 30, 2002, and $84,000 for the fiscal year ending June 30, 2003, to the department of education to implement and administer the provisions of this act. The governor is authorized to draw a warrant for said sums out of any money in the treasury not otherwise appropriated.

3 Prospective Repeal. Section 1 of this act, relative to the Parents as Teacher Program is repealed.

4 Effective Date.

I. Section 3 of this act shall take effect July 1, 2003.

II. The remainder of this act shall take effect 60 days after its passage.

SB 204, establishing the New Hampshire excellence in higher education endowment trust fund. Education Committee. Vote 6-0. Ought to Pass, Senator Larsen for the committee.

SB 207-FN, relative to authorizing bonds for the construction and renovation of regional vocational education centers. Education Committee. Vote 7-0. Ought to pass with amendment, Senator Larsen for the committee.

1999-0672s

04/01

Amend the bill by replacing section 1 with the following:

1 Regional Vocational Education Centers; Bonding Authority Amended. RSA 188-E:10 is repealed and reenacted to read as follows:

188-E:10 Renovation and Construction of Regional Vocational Education Centers; Bonds Authorized. To provide funds for the renovation and construction of regional vocational education centers, the state treasurer, as may be requested by the department of education, is authorized to borrow upon the credit of the state such amounts so that the total state obligation shall at no time exceed $85,000,000 and for said purposes may issue bonds and notes in the name of and on behalf of the state of New Hampshire in accordance with RSA 6-A. The department of education shall request and the treasurer shall issue bonds only for such amounts as are required for the purposes of this section, provided, however, the department shall request and the treasurer shall issue no more than $10,000,000 per biennium.

1999-0672s

AMENDED ANALYSIS

This bill authorizes the state treasurer, as requested by the department of education to issue bonds in such amounts not to exceed $85,000,000 for the purpose of construction and renovation of regional vocational education centers, provided that no more than $10,000,000 in such bonds shall be issued per biennium.

HB 249, relative to the membership of the rivers management advisory committee. Environment Committee. Vote 6-0. Ought to pass with amendment, Senator Cohen for the committee.

1999-0470s

03/01

Amend RSA 483:8, I(j) as inserted by section 1 of the bill by replacing it with the following:

(j) A representative of the agricultural community chosen from a list of 3 nominees submitted by the New Hampshire Farm Bureau Federation, the Northeast Organic Farming Association, and the New Hampshire Association of Conservation Districts.

1999-0470s

AMENDED ANALYSIS

This bill adds a member to the rivers management advisory committee to be nominated by the New Hampshire Farm Bureau Federation, the Northeast Organic Farming Association, and the New Hampshire Association of Conservation Districts.

SB 178-FN-A, appropriating funds for mitigation relative to the dredging of Little Harbor. Environment Committee. Vote 7-0. Ought to pass with amendment, Senator Cohen for the committee.

1999-0538s

03/01

Amend the title of the bill by replacing it with the following:

AN ACT relative to appropriations to the port authority for dredging projects.

Amend the bill by replacing section 1 with the following:

1 1991 Appropriation; Port Authority; Dredging Projects Added. Amend 1991, 351:5, as amended by 1992, 260:20 and 1994, 204:1 to read as follows:

351:5 Appropriation; Port Authority. The expansion of the Port of Portsmouth funded in this section shall include an 11-acre expansion of the north yard of the port, [and] the construction of a 750-foot pier, and dredging projects including associated mitigation to maintain channels and harbors. The sums hereinafter detailed are hereby appropriated for the project specified:

A. Port of Portsmouth Expansion $18,300,000

Total state appropriation section 5 $18,300,000

(The funds appropriated in subparagraph A for the Port of Portsmouth expansion shall not be expended, encumbered, or obligated in any way unless an action plan, which shall include construction documents, prepared by the New Hampshire Port Authority shall be approved by the capital budget overview committee, the fiscal committee, and the governor and council. $1,500,000 of the total amount appropriated herein is hereby released for the purpose of final design and bid documents. $1,800,000 of the total amount appropriated is designated for wetland mitigation. The remaining $15,000,000 is designated for construction and dredging projects including associated mitigation. This appropriation shall be nonlapsing until the project is completed. The New Hampshire Port Authority shall not encumber, obligate, or expend any funds from this appropriation for dredging projects without the prior approval of the capital budget overview committee. The total amount that may be expended for dredging projects including associated mitigation shall not exceed a total of $1,000,000.)

1999-0538s

AMENDED ANALYSIS

This bill makes certain money appropriated to the New Hampshire port authority available for dredging projects including associated mitigation.

SB 195-FN-A, appropriating funds for sludge testing. Environment Committee. Vote 6-0. Ought to pass with amendment, Senator Russman for the committee.

1999-0466s

08/01

Amend the bill by replacing section 1 with the following:

1 Transfer of Appropriation. The amount of $500,000, appropriated for state aid grants by 1997, 350:1 PAU 03, 04, 02, 01, 04 for fiscal year 1999, shall be transferred as income to the sampling and analysis of sludge or biosolids samples fund under RSA 485-A:4, XVI-c.

1999-0466s

AMENDED ANALYSIS

This bill transfers $500,000 appropriated for state aid grants to the sampling and analysis of sludge or biosolids samples fund.

This bill is a request of the department of environmental services.

SB 202-FN, relative to collective bargaining rights of public employees. Executive Departments and Administration Committee. Vote 7-0. Rereferred to Committee, Senator D'Allesandro for the committee.

SB 212-FN, requiring the insurance department to develop a plan to address the needs of persons with chronic illnesses and disabilities. Insurance Committee. Vote 5-0. Ought to Pass, Senator Squires for the committee.

SB 25, expanding the waiver of administration under the law regarding decedents' estates. Judiciary Committee. Vote 7-0. Ought to pass with amendment, Senator Gordon for the committee.

1999-0618s

08/01

Amend the bill by replacing section 1 with the following:

1 Decedents' Estates; Waiver of Full Administration. Amend RSA 554:1-a to read as follows:

554:1-a Waiver of Full Administration.

I. As used in this section, "fiduciary" shall mean any executor or administrator, including voluntary administrator, special administrator, administrator with will annexed (hereafter administrator w.w.a.), and administrator de bonis non.

II. Notwithstanding any provision of law, whenever a deceased dies testate and the surviving spouse or, if no spouse, an only child is named in the will as the sole beneficiary of the deceased's estate and [has also been] is appointed to serve as [executor or administrator with will annexed, hereafter administrator w.w.a.] fiduciary; or whenever a deceased dies intestate and the surviving spouse or, if no spouse, an only child is the sole heir of the deceased’s estate and is appointed to serve as fiduciary, there shall be no requirement for an inventory of the estate, no requirement for a bond, and no requirement for an accounting for assets. [Any interested person may petition for a full administration of the estate within 6 months after the original grant of administration, and such petition may be granted by the probate court for good cause shown.] Administration of the [will] estate shall be completed upon the fiduciary’s filing, and the probate court’s approval of an affidavit of administration [with the probate court]. Such filing shall occur not less than 6 months nor more than one year after the date of appointment of the [executor or administrator w.w.a] fiduciary. The affidavit of administration shall state that to the best of the knowledge and belief of the [executor or administrator w.w.a.] fiduciary there are no outstanding debts or obligations attributable to the deceased's estate and shall list all real estate owned by the decedent at the time of death, including the location, book and page. If the [executor or administrator w.w.a.] fiduciary fails to file the affidavit of administration within the time prescribed above, the [executor or administrator w.w.a.] fiduciary is in default. The register of probate shall give notice of the default to the [executor or administrator w.w.a.] fiduciary by first class mail within 10 days after the default. The register of probate shall issue a citation notice in accordance with RSA 548:5-a. [If the executor or administrator w.w.a. is unable to complete the administration of the estate, administration may be completed pursuant to RSA 553:7.]

III. Any interested person may petition for a full administration of the estate at any time from the original grant of administration to the filing of the affidavit of administration, and such petition may be granted by the probate court for good cause shown.

SB 44-FN, relative to physician aid-in-dying for certain persons suffering from a terminal condition. Judiciary Committee. Vote 6-1. Rereferred to Committee, Senator Wheeler for the committee.

SB 56, amending the law relative to who may adopt. Judiciary Committee. Vote 7-0. Ought to pass with amendment, Senator Squires for the committee.

1999-0617s

04/09

Amend the bill by replacing all after the enacting clause with the following:

1 Adoption; Who May Adopt Amended. Amend RSA 170-B:4, V to read as follows:

V. A married individual without the other spouse joining as a petitioner, if the individual to be adopted is not such married individual's spouse; and if:

(a) The other spouse is a parent of the individual to be adopted and consents

to the adoption;

(b) The petitioner and the other spouse are legally separated; [or]

(c) The failure of the other spouse to join in the petition is excused by the court by reason of prolonged unexplained absence, unavailability, or circumstances constituting an unreasonable withholding of consent[.]; or

(d) The other spouse consents to the adoption and the person to be adopted is over the age of 18.

2 New Paragraph; Adoption; Effect of Petition and Decree of Adoption Amended. Amend RSA 170-B:20 by inserting after paragraph II the following new paragraph:

II-a. Notwithstanding any provision of law to the contrary, upon the issuance of a final decree of adoption in which only one spouse is petitioner, the adopted child shall be considered the child of the adopting spouse. Such child’s relationship to the birth parent of the same sex as the non-adopting spouse shall not be altered if the child and the birth parent so agree. Such child shall no longer be deemed to be the child of such child’s natural parent of the same sex as the adopting spouse.

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

1999-0617s

AMENDED ANALYSIS

This bill revises the current adoption law to allow a married individual to adopt another person provided that such other person is not the married individual’s spouse.

SB 93, relative to self-service storage facility liens. Judiciary Committee. Vote 6-0. Ought to pass with amendment, Senator Trombly for the committee.

1999-0620s

05/09

Amend the bill by replacing all after the enacting clause with the following:

1 New Chapter; Self-Service Storage Facility Liens. Amend RSA by inserting after chapter 451-B the following new chapter:

CHAPTER 451-C

Self-Service Storage Facility Liens

451-C:1 Definitions. In this chapter:

I. "Lienholder" means a person entitled to enforce a lien or security interest legally acquired and properly recorded in accordance with RSA 382-A or RSA 261.

II. "Motor vehicle" means a motor vehicle as defined in RSA 259:60, a motorcycle as defined in RSA 259:63, and any boat, watercraft or motorized vehicle including any "off highway recreational vehicle" as defined in RSA 215-A:1, VI.

III. "Occupant" means a person, or any agent or representative of the person, entitled to the use of storage space at a self-storage facility under a rental agreement, to the exclusion of others.

IV. "Owner" means the owner, operator, lessor or sublessor of a self-service storage facility, the owner’s agent, or any other person authorized by the owner to manage the facility, or to receive rent from an occupant.

V. "Personal property" means moveable property not affixed to land, and includes, but is not limited to goods, merchandise, motor vehicles, and household items.

VI. "Self-service storage facility" means any real property designed and used for the purpose of renting or leasing individual storage space to occupants who are to have access to such space for the purpose of storing and removing personal property. A self-service storage facility is not a warehouse as the term "warehouse" is used in RSA 382-A:7.

451-C:2 Storage Lien. Any owner of a self-service storage facility shall have a lien upon all personal property located at the self storage facility so long as the personal property shall remain in the possession of the owner, or, in accordance with any rental agreement or lease, shall have a lien for unpaid rent, charges, fees or expenses due for storage, care, or sale of the personal property. The lien attaches as of the date the personal property is brought to the self-service storage facility.

451-C:3 Removal and Disposal of Personal Property. If any of the rent, charges, fees or expenses referred to in this chapter shall remain unpaid for 5 days, the owner may place a lock on the storage unit, in addition to any lock placed thereon by the occupant. The owner may deny access to the unit until the unpaid rent, charges, fees or expenses are paid in full by the occupant. On or after the tenth day of nonpayment, the owner may remove the occupant’s lock as well as the owner’s lock, remove any personal property from the unit, and retain such personal property for a total of 30 days from the date payment was due. If after 30 days, any of the rent, charges, fees or expenses shall remain unpaid, the owner may, after first satisfying the notice provisions of RSA 451-C:5 and RSA 451-C:6, unless exempted by RSA 451-C:7, proceed to sell such personal property to satisfy the lien. Proceeds from the sale shall be distributed pursuant to RSA 451-C:4.6

451-C:4 Notice to Lienholder.

I. An owner shall inquire in writing, by certified mail return receipt requested, to determine from the division of motor vehicles, the secretary of state and the town clerk with regard to a motor vehicle, and from the secretary of state and town clerk with regard to other personal property, whether a lien exists upon the title to said motor vehicle or other personal property. If no lien is found, or in the case where the inquiry had been made in writing and no response is received from the division of motor vehicles, the secretary of state, or the town hall within 14 days after such inquiry is mailed, the owner may proceed to sell or otherwise dispose of such personal property as prescribed by this chapter.

II. If determination is made under the procedure described in paragraph 1 that a lien exists, a notice of sale under this chapter shall be sent by registered or certified mail to the last known address of each holder of a security interest or lienholder in accordance with RSA 382-A:9. The notice shall state the time and place of the sale, the property to be sold, and the amount of the rent, charges, fees or expenses owed. The notice shall be sent at least 20 days prior to the date of the sale, except that in the case of a motor vehicle, notice shall be sent at least 30 days prior to the date of the sale. Notwithstanding any other provision of this chapter, any lienholder having a properly perfected lien or security interest shall be entitled to remove such personal property from the owner’s possession or from the occupant’s self-storage unit within 20 days of the date of mailing of the notice of the sale, without attachment of the lien established under RSA 451-C:2 or any further obligation to the owner of the self-service storage facility. The lienholder’s right to possession of the personal property is established under this chapter notwithstanding the lack of breach by the owner of such personal property under the debt instrument or security agreement creating the lien or security interest on such property. The owner shall not be responsible for determining priority as between any competing lienholders. If the owner and the lienholder who has received the notice agree to store the personal property at the facility, the lienholder shall pay the amount of the rent, charges, fees or expenses due from and after the date of the notice to the lienholder, and pay the monthly rental fee until such personal property is removed from the facility.

451-C:5 Notice of Sale. A notice of the sale shall be served upon the occupant in person or by registered or certified mail at the last known address, no less than 14 days before the sale, stating the time and place of sale, the property to be sold and the amount of the rent, charges, fees or expenses owed.

451-C:6 Sale. If any of the rent, charges, fees or expenses referred to in this chapter shall remain unpaid for 30 days, and after complying with the provisions of RSA 451-C:4 and RSA 451-C:5, the owner may sell such personal property at a private or public sale, and the proceeds shall first be applied to satisfy such rent, charges, fees or expenses. Proceeds remaining after the sale and payment of rent, charges, fees or expenses to the owner shall then be paid to any lienholders of record, as their interests may appear, with any remaining proceeds to be paid to the occupant.

451-C:7 Abandoned Personal Property. Any occupant whose rent is past due or who has left the self-storage unit unlocked, shall be presumed to have abandoned any and all personal property with a value under $500 left in such unit. The owner may remove such personal property from the self storage unit and shall retain such personal property for a period of 30 days. If after the 30 days, the occupant does not claim such personal property and any of the rent, charges, fees or expenses shall remain unpaid, it shall be conclusively presumed that the property is abandoned. If there is no lienholder of record, the owner may dispose of the personal property without notice to the occupant.

451-C:8 Liability. An owner acting in accordance with the provisions of this chapter shall not be liable to the occupant or lienholder for personal property disposed of under the provisions of this chapter.

451-C:9 Purchaser. Provided that the provisions of this chapter are complied with by an owner conducting a sale of personal property, a purchaser in good faith of personal property under the provisions of this chapter shall take the personal property free and clear of any rights of an occupant against whom the liens were placed by a lienholder.

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

SB 121, requiring reports to the department of justice following certain DWI arrests and refusals to take alcohol concentration tests. Judiciary Committee. Vote 5-2. Ought to pass with amendment, Senator Fernald for the committee.

1999-0621s

09/10

Amend the bill by replacing section 1 with the following:

1 Reports to Attorney General Required. Amend RSA 265:82-c, II to read as follows:

II.(a)(1) Notwithstanding any other provision of law to the contrary, in any case in which a person is arrested for and charged with the offense of driving or attempting to drive a vehicle on any way while under the influence of intoxicating liquor or drugs or while having an alcohol concentration of 0.08 or more and that charge is reduced from a second or subsequent offense to a first offense or in which the original charge is reduced to or in any manner substituted with another charge or a nolle prosequi entered in exchange for an agreement to plead guilty or nolo contendere to another charge, the prosecutor shall submit to the attorney general a written report describing such agreement.

(2) Whenever a person refuses a test as provided in RSA 265:92 or submits to a test described in RSA 265:84 which discloses an alcohol concentration which is above the legal limit for such person, a written report shall be filed by the law enforcement officer with the attorney general if:

(b) All such written reports shall be submitted to the attorney general on a monthly basis. The report shall contain such information as the attorney general shall prescribe; provided, however, that [he] the attorney general shall not be subject to the provisions of RSA 541-A in prescribing such information. The report required by this paragraph shall be a public record and shall be available for public inspection as provided in RSA 91-A:4.

1999-0621s

AMENDED ANALYSIS

This bill requires law enforcement officers to make reports to the attorney general following certain DWI arrests and refusals to take alcohol concentration tests.

SB 138, relative to joint tenancy with rights of survivorship. Judiciary Committee. Vote 5-0. Ought to Pass, Senator Gordon for the committee.

SB 146, granting district courts exclusive jurisdiction over actions involving real estate purchase deposits held in escrow accounts. Judiciary Committee. Vote 5-0. Ought to pass with amendment, Senator Fernald for the committee.

1999-0657s

05/10

Amend the title of the bill by replacing it with the following:

AN ACT granting district courts exclusive jurisdiction over actions involving certain real estate purchase deposits held in escrow accounts.

Amend the bill by replacing section 2 with the following:

2 New Paragraph; Actions Involving Real Estate Purchase Deposits of $5,000 or Less Held in Escrow. Amend RSA 502-A:14 by inserting after paragraph III the following new paragraph:

IV. In actions involving ownership of money deposited in escrow accounts pursuant to RSA 356-A:9-a, district and superior courts shall have concurrent jurisdiction, except that in actions originally filed in district court where the amount in controversy is $5,000 or less, the district court shall have exclusive jurisdiction.

1999-0657s

AMENDED ANALYSIS

This bill grants district courts exclusive jurisdiction over actions filed there involving certain real estate purchase deposits held in escrow accounts.

SB 189-FN, relative to the establishment of a civil rights act. Judiciary Committee. Vote 6-1. Ought to pass with amendment, Senator Pignatelli for the committee.

1999-0622s

01/03

Amend RSA 354-B:2, I as inserted by section 1 of the bill by replacing it with the following:

I. Whenever the attorney general has reasonable belief that any person has violated any provision of this chapter, the attorney general may bring a civil action for injunctive or other appropriate equitable relief.

Senator Fraser in favor of SB 189-FN.

Senator McCarley moved that the Rules of the Senate be so far suspended as to allow a committee report not advertised in the Senate Calendar and to further suspend the rule requiring a five day hearing notice.

HB 734, relative to state guarantees of tax anticipation issued by municipalities; and relative to teacher non-renewals for the 1999-2000 school year. Finance Committee. Ought to pass with amendment.

1999-0688s

04/10

Amendment to HB 734-FN-LOCAL

Amend the title of the bill by replacing it with the following:

Amend the bill by inserting after section 2 the following and renumbering the original section 3 to read as section 4:

3 Transfer of Tax Liens; Exemption of Voting Requirement for 1999. Notwithstanding the provisions of RSA 80:80, the selectmen or mayor is authorized to transfer tax liens upon real estate in accordance with RSA 80:80, II-a without a vote of the legislative body for the 1999 calendar year only.

1999-0688s

AMENDED ANALYSIS

This bill:

I. Allows municipalities to petition the legislative fiscal committee and the governor and council, based upon a compelling need, for state guarantees on tax anticipation notes.

II. Specifies that the provisions of RSA 189:14-a relative to notice of teacher non-renewals resulting from uncertainty as to the level of state funding for education shall be temporarily suspended.

III. Allows for a transfer of tax liens during the 1999 calendar year only without a vote of the legislative body.

SB 80, relative to adding the name of Martin Luther King, Jr. to Civil Rights Day. Public Affairs Committee. Vote 5-2. Ought to Pass, Senator Russman for the committee.

SB 116, eliminating straight ticket voting. Public Affairs Committee. Vote 5-0. Ought to Pass, Senator Krueger for the committee.

SB 22, relative to the pilot program relative to the administration of medication in residential care facilities. Public Institutions, Health and Human Services Committee. Vote 3-1. Ought to pass with amendment, Senator Wheeler for the committee.

1999-0650s

01/09

Amend the bill by replacing section 3 with the following:

3 Resident Assessments. Amend 1998, 269:2, I(c)(4)(E) to read as follows:

(E) The resident shall be assessed utilizing the state's needs assessment no more than 30 days prior to request. A full resident needs assessment shall be done quarterly, or immediately if the physical condition or the medication of the resident has changed, and sent to the bureau of health facilities within 7 days of completion.

1999-0650s

AMENDED ANALYSIS

This bill includes supported residential care facilities in the pilot program established in 1998, 269. The bill also clarifies the assessment of residents.

SB 28, relative to food production and distribution and food service licensure. Public Institutions, Health and Human Services Committee. Vote 4-0. Ought to pass with amendment, Senator Wheeler for the committee.

1999-0654s

01/09

Amend the bill by replacing section 5 with the following:

5 Sale of Beverages. Amend RSA 143:11, I(a) and (b) to read as follows:

I.(a) Upon receipt of an application in writing from a new beverage manufacturer, or from a beverage manufacturer that has changed ownership, or from a beverage manufacturer which has had its previous license revoked, the commissioner of the department of health and human services shall issue a provisional license, valid for up to 90 days, if the commissioner determines that the applicant's plant is properly equipped and in a sanitary condition and that the products manufactured there are not adulterated or misbranded. Any beverage manufacturer which has had its license revoked shall not be eligible to reapply for a period of 3 years from the date of revocation. Notwithstanding RSA 541-A, any individual denied a full license at the end of the 90-day period shall immediately shut down his or her establishment, unless otherwise ordered by a court of competent jurisdiction.

(b) Within 45 days of issuance of a provisional license under this section, the commissioner shall conduct an inspection. If, following inspection, the commissioner determines that the applicant's plant is properly equipped and in a sanitary condition and that the products manufactured there are not adulterated or misbranded, the commissioner shall issue a license valid until the January 1 next following the date of issuance of the provisional license. Notwithstanding RSA 541-A, any individual denied a full license at the end of the 90-day period shall immediately shut down his or her establishment, unless otherwise ordered by a court of competent jurisdiction.

Amend the bill by replacing section 8 with the following:

8 Food Service Licensure. Amend RSA 143-A:6, I and II to read as follows:

I. Upon receipt of an application in writing from a new food service establishment or retail food store, or a food service establishment or retail food store which has changed ownership or a food service establishment or retail food store which has had its previous license revoked, the commissioner shall issue a provisional license, valid for up to 90 days, if the commissioner determines that the applicant's plan for operation and facilities are sufficient under rules adopted under RSA 143-A:9. If any food service establishment or retail food store has had its license revoked, it shall not be eligible to reapply for a period of 3 years from the date of revocation. Notwithstanding RSA 541-A, any individual denied a full license at the end of the 90-day period shall immediately shut down his or her establishment, unless otherwise ordered by a court of competent jurisdiction.

II. Within 45 days of issuance of a provisional license issued under this section, the commissioner shall conduct an inspection. If following such inspection the commissioner determines that the applicant's operation and facilities are sufficient under rules adopted under RSA 143-A:9, the commissioner shall issue to the applicant a license valid for a time period of one year following the date of issuance of the provisional license. Notwithstanding RSA 541-A, any individual denied a full license at the end of the 90-day period shall immediately shut down his or her establishment, unless otherwise ordered by a court of competent jurisdiction.

1999-0654s

AMENDED ANALYSIS

This bill clarifies procedures relative to sanitary production and distribution of food and food service licensure. The bill establishes a 3-year period for a facility which has had its license revoked before such facility may reapply for a license.

SB 53-FN, relative to licensure of physicians providing teleradiology services in this state. Public Institutions, Health and Human Services Committee. Vote 2-2, OTP/ITL. Ought to Pass, Senator Squires for the committee.

SB 100-FN-A-L, establishing a pilot program to provide homeless people with free meals in exchange for volunteer work and continually appropriating certain funds for this purpose. Public Institutions, Health and Human Services Committee. Vote 4-0. Inexpedient to Legislate, Senator Gordon for the committee.

SB 134-FN, relative to medicaid reimbursement rates and dental care. Public Institutions, Health and Human Services Committee. Vote 4-0. Ought to Pass, Senator Wheeler for the committee.

SB 137-FN, relative to use of social security numbers in child support enforcement and in the issuance of driver's licenses. Public Institutions, Health and Human Services Committee.

MINORITY REPORT: Inexpedient to Legislate, Senator Krueger for the committee. Vote 1-3

MAJORITY REPORT: Ought to pass with amendment, Senator Squires for the committee. Vote 3-1

1999-0659s

05/09

Amend the bill by replacing section 1 with the following:

1 Revocation and Denial of Licenses; Child Support Enforcement. Amend RSA 161-B:11, VI-a to read as follows:

VI-a. The social security number of any applicant for a professional license, [commercial] driver's license, occupational license, recreational license, or marriage license shall be recorded on the application, provided that if the use of a number other than the social security number is allowed, [the applicant shall be so advised. Any application required by this section to contain a] to be used on the face of the document, the social security number shall be kept on file at the agency. The social security number shall be confidential and not subject to the right to know law. Unless otherwise authorized by law, the use of such number shall be limited to proceedings or actions to establish paternity or to establish or enforce support and shall only be provided to or entered in any out-of-state or federal data base for those cases for which the department is providing services.

SB 225-FN, relative to a pharmaceutical program for low income individuals. Public Institutions, Health and Human Services Committee. Vote 4-0. Rereferred to Committee, Senator Squires for the committee.

Senator D’Allesandro moved to have HB 112-FN-A, increasing the tobacco tax and imposing the tax on all types of tobacco products, taken off the table.

Recess.

Senator Wheeler in the Chair.

HB 112-FN-A, increasing the tobacco tax and imposing the tax on all types of tobacco products.

Senator D’Allesandro offered a floor amendment.

Sen. D’Allesandro, Dist. 20

Sen. Trombly, Dist. 7

1999-0681s

09/01

Floor Amendment to HB 112-FN-A

Amend the title of the bill by replacing it with the following:

Amend the bill by replacing all after the enacting clause with the following:

1 Purpose; Intent.

I. In December 1997, the New Hampshire supreme court in the Claremont II decision ruled that it is the state’s duty to define and provide all New Hampshire’s public school students with an adequate education, and further that the manner of raising revenue to pay for an adequate education be through a system of taxation that is proportional in substance and just and reasonable in application.

II. Through the passage of House Bill 1075, the general court defined an adequate education. The definition grew out of work undertaken in the early 1990’s to develop curriculum frameworks which specifically address the importance of establishing and measuring what all New Hampshire students should know and be able to do. The curriculum frameworks were developed with the widespread participation of educators, business people, government officials, community representatives, and parents. They have evolved into a critical component of providing a quality public education to New Hampshire students.

III. The New Hampshire educational improvement and assessment program ("NHEIAP") tests were developed in conjunction with the curriculum frameworks as a measure of student performance. The general court therefore finds that the NHEIAP tests are a measure of student performance and can be used to develop and implement effective methods for assessing learning and its application. The general court further finds that in determining the cost of a constitutionally adequate education, performance based outcome criteria, specifically the NHEIAP test scores, can be used to identify school districts that are delivering such a constitutionally adequate education. The NHEIAP tests are comprehensive and difficult. Students taking these tests in the third, sixth, and tenth grades are scored on 4 levels of performance: novice, basic, proficient, and advanced. The general court finds that students who score in the basic, proficient, and advanced levels on these state tests are making progress toward achieving the goals set forth in House Bill 1075.

IV. The general court recognizes the inherent imprecision, subjectivity, and difficulty in determining the cost of an adequate education. Numerous complex financial, budgetary, administrative, and educational elements must be in place in order for the state to fully meet the mandates of Claremont II. Those mandates coupled with the policy of the state recognize that an adequate public education is not a static concept removed from the demands of an evolving world. An adequate education transcends mere competence in the reading, writing and arithmetic. Such an education shall provide all students with a meaningful opportunity to acquire the knowledge and skills necessary to prepare them for successful participation in the social, economic, scientific, technological, and civic realities of society, now and in the years to come. To ensure these fundamental rights, as recognized by the court, thoughtful and deliberate planning with the involvement of many sources of expertise as well as phased-in implementation of the major elements over time is required. Concomitantly, such planning and implementation is required in order to ensure:

(a) That the educational needs of all children are met, including regular education students, students with special needs such as students with disabilities, students who are economically disadvantaged or are otherwise educationally at risk, or those who are intellectually gifted;

(b) That the needed changes are long-term in nature, truly embedded on the local and state level, gain acceptance and are both cost and educationally effective, and to those ends address underlying or systemic issues; and

(c) That compliance with all applicable federal laws occurs.

V. Under Claremont II, and as recently reaffirmed by the court in its November 1998 opinion, a funding system for a constitutionally adequate education must be put in place. This bill provides for a constitutionally adequate education that is reasonably and proportionally funded through a combination of revenue sources.

VI. However, in order to meet the aforementioned competing requirements of a long-range, carefully planned, and phased-in solution and to address the need to have an acceptable system in place, this act establishes a special commission to develop long-term plans and solutions to comprehensively and permanently meet constitutional mandates.

2 Cigarette Tax. Amend RSA 78:7 to read as follows:

78:7 Tax Imposed. A tax upon the retail consumer is hereby imposed at the rate of [37] 42 cents for each package containing 20 cigarettes or at a rate proportional to such rate for packages containing more or less than 20 cigarettes, on all tobacco products sold at retail in this state. The payment of the tax shall be evidenced by affixing stamps to the smallest packages containing the tobacco products in which such products usually are sold at retail. The word "package" as used in this section shall not include individual cigarettes. No tax is imposed on any transactions, the taxation of which by this state is prohibited by the Constitution of the United States.

3 New Subdivision; Disposition of Tobacco Tax Revenues; Special Fund. Amend RSA 78 by inserting after section 31 the following new subdivision:

Disposition of Revenues

78:32 Disposition of Revenues. Three million dollars of the gross revenues collected under this chapter shall be deposited at the end of each fiscal year beginning June 30, 2000 in the tobacco use prevention and cessation fund established in RSA 78:33.

78:33 Tobacco Use Prevention and Cessation Fund. There is established within the office of the state treasurer a tobacco use prevention and cessation fund. Money from this fund shall be continually appropriated to the department of health and human services for tobacco use prevention and cessation programs and shall be allocated as follows:

Percentage Amount

I. Tobacco use prevention community programs and grants 25 $750,000

II. Tobacco use prevention school programs and grants 18 $540,000

III. Tobacco use prevention state-wide programs and grants 15 $450,000

IV. Tobacco use cessation programs 15 $450,000

V. Tobacco use prevention and cessation counter marketing 18 $540,000

VI. Evaluation 5 $150,000

VII. Administration and enforcement 4 $120,000

4 New Subparagraph; Special Fund. Amend RSA 6:12, I by inserting after subparagraph (vvv) the following new subparagraph:

(www) Three million dollars of the annual gross revenues of the tobacco tax collected under RSA 78, which shall be credited as provided in RSA 78:32 to the tobacco use prevention and cessation fund established under RSA 78:33.

5 Applicability. Section 2 of this act shall apply to all persons licensed under RSA 78:2. Such persons shall inventory all taxable tobacco products in their possession and file a report of such inventory with the department of revenue administration on a form prescribed by the commissioner within 20 days after the effective date of this act. The tax rate effective on the effective date of section 2 of this act, shall apply to such inventory and the difference, if any, in the amount paid previously on such inventory and the current effective rate of tax shall be paid with the inventory form. The inventory form shall be treated as a tax return for the purpose of computing penalties under RSA 21-J.

6 Gender Reference Change. Amend the introductory paragraph of RSA 21-J:3 to read as follows:

In addition to the powers, duties, and functions otherwise vested by law, including RSA 21-G, in the commissioner of the department of revenue administration, [he] the commissioner shall:

7 Duties of Commissioner. Amend RSA 21-J:3, XIII to read as follows:

XIII. Equalize annually the valuation of the property in the several towns, cities, and unincorporated places in the state, including the value of property exempt pursuant to RSA 72:36-b, 72:37-b, 72:39-a, 72:62, 72:66, and 72:70, by adding to or deducting from the aggregate valuation of the property in towns, cities, and unincorporated places such sums as will bring such valuations to the true and market value of the property, including the equalized value of property formerly taxed pursuant to the provisions of RSA 72:7; 72:15, I, V, VII, VIII, IX, X, and XI; 72:16; 72:17; 73:26; 73:27; and 73:11 through 16 inclusive, which were relieved from taxation by the laws of 1970, 5:3; 5:8; 57:12; and 57:15, the equalized valuation of which is to be determined by the amount of revenue returned in such year in accordance with RSA 31-A, and by making such adjustments in the value of other property from which the towns, cities, and unincorporated places receive taxes or payments in lieu of taxes as may be equitable and just, so that any public taxes that may be apportioned among them shall be equal and just. In carrying out the duty to equalize the valuation of property, the commissioner shall follow the procedures set forth in RSA 21-J:9-a.

8 Duties of the Commissioner. Amend RSA 21-J:3, XV to read as follows:

XV. Establish and approve tax rates as required by law including the uniform education tax rate.

9 New Paragraph; Duties of Commissioner. Amend RSA 21-J:3 by inserting after paragraph XXIV the following new paragraph:

XXV. Petition the board of tax and land appeals to issue an order for reassessment of property pursuant to the board's powers under RSA 71-B:16-19 whenever the valuation of property for equalization purposes in a particular city, town, or unincorporated place is disproportional to the valuation for equalization purposes in other cities, towns, or unincorporated places in the state.

10 Division of Property Appraisal; Department of Revenue Administration. RSA 21-J:9 is repealed and reenacted to read as follows:

21-J:9 Division of Property Appraisal. There is established within the department the division of property appraisal, under the supervision of a classified director of property appraisal who shall be responsible for the following functions, in accordance with applicable laws:

I. Assisting and supervising municipalities and appraisers in appraisals and valuations as provided in RSA 21-J:10 and RSA 21-J:11.

II. Appraising state-owned forest and recreation land under RSA 227-H and RSA 216-A.

III. Annually determining the total equalized valuation of properties in the cities and towns and unincorporated places according to the requirements of RSA 21-J:9-a.

IV. Preparing a standard appraisal manual which may be used by assessing officials, and holding meetings throughout the state with such officials to instruct them in appraising property.

11 New Section; Equalization Procedure. Amend RSA 21-J by inserting after section 9 the following new section:

21-J:9-a Equalization Procedure. The following procedures shall apply in determining the equalization of property within the cities, towns, and unincorporated places as required by RSA 21-J:3, XIII:

I. The commissioner shall annually conduct a sales-assessment ratio study which shall include arm’s length sales or transfers of property that occurred 6 months prior to and 6 months following April 1 of the tax year for which such equalization is made.

II. In determining the arm's length sales or transfers that are included in the sales-assessment ratio study, the commissioner may use a randomly selected sample of such sales and transfers the size of which shall be determined by the total taxable parcels in the city, town, or unincorporated place.

III. If less than 2 percent of the total taxable parcels in a city, town, or unincorporated place has been transferred by an arm's length sale or transfer during the 6 months prior to and 6 months following April 1 of the tax year for which such equalization is made or the commissioner determines the sales are not representative of the property within the municipality, the commissioner may choose one or more of the following options:

(a) Include appraisals of any of the taxable property of such city, town, or unincorporated place in the sales-assessment ratio study. Such appraisals shall be based on full and true market value pursuant to RSA 75:1 and shall be performed by department appraisers. The property to be appraised shall be selected by the commissioner.

(b) Consider recent equalization ratio activity in adjoining cities, towns, or unincorporated places.

(c) Include arm's length sales or transfers in the city, town, or unincorporated place, within 2-1/2 years preceding April 1 of the year preceding the tax year for which such equalization is made.

IV. The commissioner shall use the inventory of property transfers authorized by RSA 74:18 in determining the equalized value of property and may consider such other evidence as may be available to the commissioner on or before the time the final equalized value is determined.

12 Appraisals of Property for Ad Valorem Tax Purposes. RSA 21-J:11 is repealed and reenacted to read as follows:

21-J:11 Appraisals of Property For Ad Valorem Tax Purposes.

I. Every person, firm, or corporation intending to engage in the business of making appraisals on behalf of a municipality for tax assessment purposes in this state shall notify the commissioner of that intent in writing. No person, firm, or corporation engaged in the business of making appraisals of taxable property for municipalities and taxing districts shall enter into any contract or agreement with any town, city, or other governmental division without first submitting the proposed contract or agreement to the commissioner for examination and approval and submitting to the commissioner evidence of financial responsibility and professional capability of personnel to be employed under the contract.

II. The commissioner, at no expense to the municipality, shall monitor appraisals of property and supervise appraisers as follows:

(a) Assure that appraisals comply with all applicable statutes and rules;

(b) Assure that appraisers are complying with the terms of any appraisal contract;

(c) Review the accuracy of appraisals by inspection, evaluation, and testing, in whole or in part, of data collected by the appraisers; and

(d) Report to the governing body on the progress and quality of the municipality’s appraisal process.

III. The commissioner shall adopt rules under RSA 541-A relative to the provisions required of all contracts for appraisal services and the methodology for inspection, evaluation, and testing of data for the purposes of appraisal monitoring.

13 Reports Required. Amend the introductory paragraph of RSA 21-J:34 to read as follows:

The governing body of each city, town, unincorporated [town, unorganized] place, school district, and village district, and the clerk of each county convention shall submit to the commissioner of revenue administration the following reports necessary to compute and establish the uniform education property tax rate and the tax rate for each city, town, unincorporated [town, unorganized] place, school district, village district, and county. The commissioner shall adopt rules under RSA 541-A establishing the form and content of these reports:

14 New Paragraph; Reports Required. Amend RSA 21-J:34 by inserting after paragraph XIV the following new paragraph:

XV. A report filed by the assessing officials of each city, town, and unincorporated place shall certify sales-assessment information necessary for the department to conduct the annual sales-assessment ratio study required by RSA 21-J:9-a. This report shall be filed within 45 days after receipt from the department.

15 New Paragraph; Setting of Tax Rates by Commissioner. Amend RSA 21-J:35 by inserting after paragraph I the following new paragraph:

I-a. The commissioner shall set the uniform education property tax rate at $5.75 on each $1,000 of total equalized value of all property in the municipality as determined under RSA 21-J:3, XIII.

16 Revenue Sharing. Amend RSA 31-A:4, I to read as follows:

17 Board of Tax and Land Appeals; Authority. Amend RSA 71-B:5, II to read as follows:

II.(a) To hear and determine [any] appeals by municipalities relating to the [equalization of valuation performed] equalized valuation of property determined by the commissioner of revenue administration pursuant to RSA 21-J:3, XIII. Any [town] municipality aggrieved by [an] its equalized valuation as determined by the commissioner of revenue administration must appeal to the board in writing within 30 days of [the town's notification] notice of [the] its final equalized valuation by the commissioner. The board shall hear and make a final ruling on such appeal within 45 days of its receipt by the board. The board’s decision on such appeal shall be final pending a decision by the supreme court of any appeal by any municipality of a board’s decision. The supreme court shall give any appeal under this section priority in the court calendar.

18 New Paragraph; Order for Reassessment. Amend RSA 71-B:16, IV to read as follows:

IV. When a complaint is filed with the board alleging that all of the taxable real estate or taxable property in a taxing district should be reassessed or newly assessed for any reason, provided that such complaint must be signed by at least 50 property taxpayers or 1/3 of the property taxpayers in the taxing district, whichever is less[.]; or

V. When the commissioner of revenue administration files a petition with it pursuant to RSA 21-J:3, XXV.

19 New Section; Inventory of Property Transfers. Amend RSA 74 by inserting after section 17 the following new section:

74:18 Inventory of Property Transfers.

I. In order to properly equalize the value of property under RSA 21-J:3, XIII, an inventory of property transfers shall be filed with the department of revenue administration and with the municipality where the property is located for each transfer of real estate or interest in real estate. Each form may include the following information:

(a) The buyer and seller's names and post transaction addresses and the name and address of a contact person if the buyer or seller is a trust or corporation.

(b) A description of the exact location of the property by town, street, and the assessor’s map, lot, and block number.

(c) The acreage included in the sale.

(d) An accurate description of the property included in the sale, the neighborhood where the property is located, and the type and style of the property sold.

(e) The buyer's ownership interest in the property.

(f) The sale price, date of transfer, and the amount mortgaged.

(g) The description of the type of transfer that has taken place.

(h) The amount of personal property included in the sale price.

(i) Whether the property was previously occupied and whether the property will serve as the buyer's primary residence.

(j) The financing arrangements made to purchase the property to be answered at the option of the buyer.

(k) Whether any concessions were made in the sale.

(l) Whether the property was in current use.

(m) Whether land use taxes were considered in the sale.

(n) The buyer’s dated signature certifying that the information indicated on the form is true.

II. The inventory of property transfers required by this section shall be filed with the department of revenue administration and with the municipality where the property is located by the purchaser, grantee, assignee, or transferee, no later than 30 days from the recording of the deed at the register of deeds or transfer of real estate, whichever is later. Persons required to file the inventory of property transfers who willfully fail to file or willfully make false statements on the forms shall be guilty of a violation.

III. No deed, recording a transfer of real estate or any interest in real estate, executed before October 1, 1995, shall be required to comply with this section.

IV. Failure to comply with this section shall not be construed to cloud title.

V. Any information provided to the department or the municipality pursuant to this section shall be exempt from the right-to-know law, RSA 91-A.

20 Education Property Tax. RSA 76:3 is repealed and reenacted to read as follows:

76:3 Education Property Tax. An annual education property tax at the uniform rate calculated by the commissioner of revenue administration pursuant to the authority granted in RSA 21-J:35, I-a is hereby imposed on all persons and property taxable pursuant to RSA 72 and RSA 73, except such property subject to tax under RSA 82.

21 What Taxes Assessed. Amend RSA 76:5 to read as follows:

76:5 What Taxes Assessed. The selectmen shall seasonably assess all state and county taxes for which they have the warrants of the [state] commissioner of revenue administration and county treasurers respectively; all taxes duly voted in their towns; and all school[, schoolhouse,] and village district taxes authorized by law or by vote of any school or village district duly certified to them; and all sums required to be assessed by RSA 33.

22 Commissioner’s Warrant. RSA 76:8 is repealed and reenacted to read as follows:

76:8 Commissioner’s Warrant.

I. The commissioner of revenue administration shall annually calculate the proportion of the education property tax to be raised by each municipality by multiplying the uniform education property tax rate by the total equalized value of all property in the municipality as determined under RSA 21-J:3, XIII.

II. The commissioner shall issue a warrant under the commissioner’s hand and official seal for the amount computed in paragraph I to the selectmen or assessors of each municipality at the time of the setting of the tax rate directing them to assess such sum and pay it to the municipality for the use of the school district or districts and, if there is an excess education tax payment due under RSA 198:47, I, directing them to assess the amount of that excess education tax payment and pay it to the department of revenue administration for deposit in the education trust fund. The commissioner shall also issue a warrant under the commissioner’s hand and official seal for such sums and at such times as may be prescribed for other taxes assessed by such selectmen or assessors of the municipality.

III. Municipalities are authorized to assess and collect property taxes locally to meet budgeted expenses of education not funded through distributions from the education trust fund under RSA 198:39.

23 Commissioner’s Report. RSA 76:9 is repealed and reenacted to read as follows:

76:9 Commissioner’s Report. The commissioner of revenue administration shall report to the governor, the speaker of the house of representatives, the president of the senate, and the commissioner of education each year on or before October 1, a statement of the education property tax warrants to be issued for the tax year commencing April 1 of the succeeding year.

24 Information Required. Amend RSA 76:11-a, I to read as follows:

I. The tax bill which is sent to every person taxed, as provided in RSA 76:11, shall show the rate for municipal, [school] local education, state education, and county taxes separately, the assessed valuation of all lands and buildings for which said person is being taxed, and the right to apply in writing to the selectmen or assessors for an abatement of the tax assessed as provided under RSA 76:16. The department of revenue administration shall compute for each town and city the rates which are to appear on the tax bills and shall furnish the required information to the appropriate town or city.

25 Extent. Amend RSA 85:1 to read as follows:

85:1 Who May Issue. The state treasurer or the commissioner of revenue administration, and each county and town treasurer, may issue extents under their hands and seals respectively, in cases authorized by law, and such extents shall be deemed to be executions against the person and property.

26 New Subdivisions; State Aid for Educational Adequacy; Education Trust Fund; Excess Education Property Tax Payment; Commission. Amend RSA 198 by inserting after section 37 the following new subdivisions:

State Aid for Educational Adequacy; Education Trust Fund

198:38 Definitions. In this subdivision:

I. "Municipality" means a city, town, or unincorporated place.

II. "School district" means school district as defined in RSA 194:1 or RSA 195:1.

III. "Elementary school" means a school with any of the grades kindergarten through 8.

IV. "High school" means a school with any of the grades 9 through 12.

V. "Average base per pupil cost of an elementary school pupil" means the amount as determined in accordance with RSA 198:40.

VI. "Weighted pupils" means resident pupils who have been assigned to one or more of the following classifications:

(a) An elementary pupil, which shall include kindergarten pupils, 1.0.

(b) A high school pupil, 1.2.

(c) An elementary pupil who is eligible to receive a free or reduced-priced meal shall receive an additional weight of .14.

VII. "Educationally disabled child" means an educationally disabled child as defined in RSA 186-C:2, I.

VIII. "Consumer price index" means the consumer price index for all items for urban consumers for the Northeast published by the United States Department of Labor.

IX. "Special education costs" means the cost of special education and educationally related services provided to educationally disabled children reported by school districts on the MS-25 form less any federal IDEA funds, state special education catastrophic aid, and special education medicaid reimbursement received by the districts.

X. "Average daily membership in attendance" means average daily membership in attendance as defined in RSA 189:1-d, III.

XI. "Average daily membership in residence" and "resident pupils" mean the average daily membership in residence as defined in RSA 189:1-d, IV.

XII. "Transportation costs" means the costs of transporting pupils to and from school and other school activities reported by school districts on the MS-25 form.

198:39 Education Trust Fund Created and Invested.

I. The state treasurer shall establish an education trust fund in the treasury. Moneys in such fund shall not be used for any purpose other than to distribute adequate education grants to municipalities’ school districts pursuant to RSA 198:42 and make catastrophic aid payments under RSA 186-C:18, III(d). The state treasurer shall deposit into this fund immediately upon receipt:

(a) The full amount of excess property tax payments from the department of revenue administration pursuant to RSA 198:47.

(b) The total amount of hardship claims reported by the commissioner of revenue administration under RSA 198:48, VII.

(c) All moneys due the fund in accordance with RSA 284:21-j.

(d) The school portion of any revenue sharing funds distributed pursuant to RSA 31-A which were apportioned to school districts in the property tax rate calculations in 1998.

(e) Tobacco settlement funds in the amount of $20,000,000 annually.

(f) Any other moneys appropriated from the general fund.

II. The education trust fund shall be nonlapsing. The state treasurer shall invest that part of the fund which is not needed for immediate distribution in short-term interest-bearing investments. The income from these investments shall be returned to the fund.

198:40 Methodology for Calculating the Cost of an Adequate Education.

I. For the fiscal year beginning July 1, 1999, the average base per pupil cost of an elementary school pupil shall be $2,879.

II. For the fiscal year beginning July 1, 2000, the average base per pupil cost of an elementary school pupil shall be $2,922.

III. For the biennium beginning July 1, 2001, and every biennium thereafter, the average base per pupil cost of an elementary school pupil shall be established by the general court.

IV. If the general court makes no change in the average base per pupil cost of an elementary school pupil, the average base per pupil cost for the previous fiscal year shall be adjusted by the change in the consumer price index between the January immediately preceeding the beginning of the fiscal year of distribution and the second preceding January. In making the calculations required by this subdivision in subsequent fiscal years, the department of education shall use the average daily membership in residence, special education costs, and transportation costs for the second preceding school year and the district percentage of pupils eligible to receive a free or reduced-priced meal reported to the department of education on October 1 of the second preceding calendar year.

V. The weighted average daily membership in residence for each district shall be calculated by combining the district’s elementary average daily membership in residence with its weighted high school average daily membership in residence and the district’s additional average daily membership in residence resulting from elementary pupils eligible to receive a free or reduced-priced meal. The statewide weighted average daily membership in residence of pupils shall be calculated by combining the weighted average daily membership in residence of each school district in the state.

VI. For each fiscal year, the statewide cost of an adequate education for all pupils shall be calculated by multiplying the average base per pupil cost of an adequate education by the statewide weighted average daily membership in residence of pupils and then adding 99.5 percent of total statewide special education costs plus 70 percent of total statewide district transportation costs.

198:41 Determination of Adequate Education Grants.

I. Except for municipalities where all school districts therein provide education to all of their pupils by paying tuition to other institutions, the department of revenue administration shall determine the amount of the adequate education grant for the municipality as follows:

(a) Multiply the average base per pupil cost of an adequate education by the weighted average daily membership in residence for the municipality;

(b) Add to the product of subparagraph (a), 70 percent of the municipality’s apportioned transportation cost;

(c) Add to the sum of subparagraph (b), 99.5 percent of the municipality’s apportioned special education cost;

(d) Subtract from the sum of subparagraph (c) the amount of the education property tax warrant to be issued by the commissioner of revenue administration for such municipality reported pursuant to RSA 76:9 for the next tax year.

II. For municipalities where all school districts therein provide education to all of their pupils by paying tuition to other institutions, the department of revenue administration shall determine the amount of the adequate education grant for each municipality as the lesser of the following 2 calculations:

(a) The amount calculated in accordance with paragraph I of this section; or

(b) The total amount paid for items of current education expense as determined by the department of education minus the amount of the education property tax warrant to be issued by the commissioner of revenue administration for such municipality reported pursuant to RSA 76:9 for the next tax year.

198:42 Distribution Schedule of Adequate Education Grant.

I. The adequate education grant determined in RSA 198:41 shall be distributed to each municipality’s school district or districts from the education trust fund in 4 payments of 20 percent on July 1, 20 percent on September 1, 30 percent on January 1, and 30 percent on April 1 of each school year.

II. For the fiscal year ending June 30, 2000, an amount calculated by the commissioner of revenue administration necessary to fund the grants under RSA 198:41 is hereby appropriated from the education trust fund created under RSA 198:39 to the department of revenue administration.

III. The general court is constitutionally obligated to fund the cost of an adequate education, and there are hereby appropriated the funds necessary to make the payments required under RSA 198:41. The governor is authorized to draw a warrant for such sums out of any money in the treasury not otherwise appropriated.

IV. The department of revenue administration shall certify the amount of each grant to the state treasurer and direct the payment thereof to the school district. When a payment of a grant is made to a school district, the municipality on whose behalf the payment is made, shall receive notification from the state treasurer of the amount of the payment made to its school district or districts.

198:43 Additional Education Expenditures. School districts are authorized to dedicate additional resources to schools and to develop educational programs beyond those required for an adequate education. School districts shall raise and appropriate funds to meet budgeted expenses of education not funded through distributions from the education trust fund under RSA 198:39.

198:44 Use of Funds for Education Purposes.

I. Annually, each school district shall appropriate an amount that equals or exceeds the amount necessary to fund an adequate education for the pupils in that district. Notwithstanding any other provision of law, in the event a school district fails to appropriate at least the required amount, that amount shall be assessed and collected by the municipality, appropriated to the school district, and expended for educational purposes in accordance with paragraph IV without a vote of the school district.

II. On or before June 30 of each year, the individual with fiscal responsibility in each municipality shall submit a statement to the commissioner of revenue administration and the commissioner of education that the funds collected by the municipality pursuant to RSA 76:8 have been paid over to the school district or districts to be expended for educational purposes in accordance with paragraph IV. The statement shall include the following: "I certify, under the pains and penalties of perjury, that all of the information contained in this document is true, accurate, and complete."

III. If a municipality uses any part of the funds collected pursuant to RSA 76:8 for non-educational purposes, the municipality shall pay to the school district an amount equal to the portion of funds used for such non-educational purposes.

IV. The funds collected by municipalities pursuant to RSA 76:8 and the funds received from the state pursuant to RSA 198:42 shall be appropriated by a school district only for current education expenses or transfers to reserves or trusts funds and shall not be used for any other purpose.

V. On or before June 30 of each year, the individual with fiscal responsibility in each school district shall submit a statement to the commissioner of revenue administration and the commissioner of education that an amount of money that equals the amount necessary to fund an adequate education for the pupils in that district was used in accordance with paragraph IV. The statement shall include the following: "I certify, under the pains and penalties of perjury, that all of the information contained in this document is true, accurate, and complete."

198:45 Duties of the Department of Education and the Board of Education.

I. The department of education shall, on or before September 30 of each year, collect from the school districts final data concerning all aspects of student attendance for the school year ending June 30 of that year necessary to establish the average daily membership, average daily membership in residence, and weighted average daily membership in residence, including the municipality of residence for each pupil for that year. The department of education shall submit a report by December 31 to the speaker of the house of representatives and the senate president to be used for purposes of determination by the legislature of the appropriation to the education trust fund. A copy of such report shall, at the same time, be given to the department of revenue administration.

II. The board of education shall adopt rules pursuant to RSA 541-A necessary to the proper administration of this subdivision.

198:46 Submission of Data by School Districts. Each school district shall submit all attendance information required by the department of education under this subdivision on or before September 30 of each year.

Excess Education Property Tax Payment; Hardship Relief

198:47 Excess Education Property Tax Payment.

I. Except as provided in paragraph IV and RSA 198:48, VI, municipalities for which the education property tax exceeds the amount necessary to fund an adequate education determined by RSA 198:40 shall collect and remit such excess amount to the department of revenue administration on or before March 15 of the tax year in which the excess occurs.

II. The amount of such excess to be remitted shall not include any income derived from the investment of funds by the town treasurer under RSA 41:29. Any funds remaining after full payment of the excess tax required in paragraph I shall become available for unrestricted use by the municipality.

III. The commissioner of the department of revenue administration shall collect from the selectmen the excess tax and pay the excess tax over to the state treasurer for deposit in the education trust fund established by RSA 198:39.

IV. The commissioner of the department of revenue administration shall calculate the excess amount owed by each municipality pursuant to paragraph I for the tax year 1999. Notwithstanding any other provision of this section, the warrant issued pursuant to RSA 76:8 shall direct municipalities to only collect and remit to the department of revenue administration not more than the following percentages of excess amounts during the tax years 1999-2001:

(a) In tax year 1999, 25 percent;

(b) In tax year 2000, 50 percent; and

(c) In tax year 2001, 75 percent.

198:48 Education Property Tax Hardship Relief.

I. As provided in this section, eligible claimants shall be granted hardship relief from the state education property tax due on their homesteads under RSA 76:3 for 4 tax years following the enactment of RSA 76:3.

II. The following definitions apply to this section:

(a) "Homestead" means the dwelling owned by a claimant or in the case of a multi-unit dwelling, the portion of the dwelling which is used as the claimant’s principal residence. "Homestead" shall not include land and buildings taxed under RSA 79-A or land and buildings or the portion of land and buildings rented or used for commercial or industrial purposes. In this paragraph, a dwelling is "owned" by a claimant if the claimant is in possession of the dwelling as a vendee under a land contract. A dwelling may be "owned" by more than one person if they hold the property as joint tenants or tenants in common.

(b) "Household income" means the sum of the adjusted gross incomes for federal income tax purposes of the claimant and any member of the claimant’s household who resides in the homestead for which a claim is made.

III. An eligible hardship relief claimant is a person who:

(a) Resides in a taxing jurisdiction that realizes in the first year after the effective date of the state education property tax in RSA 76:3 a net increase in education property taxes of greater than 20 percent, comparing the amount calculated for education property taxes for the property tax year ending March 31, 2000, to the amount of the school portion of the claimant’s local property tax on the same property for the tax year ending March 31, 1999;

(b) Pays school property taxes on homestead property; and

(c) Has total household income of less than 75 percent of the median total household income of all New Hampshire residents in the year in which the claim for relief is made.

IV. The amount of hardship relief shall be calculated as follows:

(a) Start with the amount of education property taxes due on the claimant’s homestead property for the tax year ending March 31, 2000;

(b) Subtract the amount of the school portion of the local property tax due on the same property for the tax year ending March 31, 1999; and

(c) Apply the appropriate percentage to the difference computed in subparagraph (b) as follows:

(1) For the tax year ending March 31, 2000, the percentage is 50:

(2) For the tax year ending March 31, 200l, the percentage is 25;

(3) For the tax year ending March 31, 2002, the percentage is 10;

(4) For the tax year ending March 31, 2003, the percentage is 10;

V. To receive hardship relief under this section, a claimant shall file a form with the claimant’s final property tax payment and shall deduct the hardship amount calculated on the form from the amount due. The commissioner shall develop a form for taxpayers to claim hardship relief under the authority of RSA 198:49.

VI. The total amount of hardship claims received by a municipality shall be deducted from the amount collected and remitted to the department of revenue administration under RSA 198:47, I, and each municipality shall send to the department of revenue administration the claim forms it receives from claimants along with the excess property tax it remits under that section.

VII. On or before May 1 of each year, the commissioner of the department of revenue administration shall report to the governor, the treasurer, the speaker of the house of representatives, and the president of the senate the total amount of hardship claims. The treasurer shall deposit into the education trust fund established in RSA 198:39 the total amount of hardship claims reported by the commissioner of the department of revenue administration. The funds necessary for the deposit required by this paragraph are hereby appropriated and the governor is authorized to draw a warrant for such sums out of any money in the treasury not otherwise appropriated.

198:49 Form. The commissioner shall approve and provide forms relative to the reporting and remitting of excess education property tax by the municipalities and relative to hardship claims.

Adequate Education and

Education Financing Reform Commission

198:50 Adequate Education and Education Financing Reform Commission Established; Membership.

I. There is hereby established an adequate education and education financing reform commission which shall be composed of 19 members as follows:

(a) The chairpersons of the house education and house finance committees, appointed by the speaker of the house.

(b) The chairpersons of the senate education and senate finance committees, appointed by the president of the senate.

(c) Four members appointed by the governor, one of whom shall be an elementary or secondary special education teacher, one of whom shall be a primary teacher who does not teach special education, and one of whom shall be a member of the business community.

(d) The chancellor of the university system of New Hampshire or designee.

(e) The commissioner of the regional community-technical college system.

(f) One member from the state board of education, appointed by the chairperson of the state board of education.

(g) One member from a special education advocacy organization, appointed by such organization; and

(h) Seven members who shall be agreed to and jointly appointed by the governor, the president of the senate, and the speaker of the house consisting of the following:

(1) One local school board member, recommended by the New Hampshire School Boards Association.

(2) One school administrator, recommended by the New Hampshire School Administrators Association.

(3) One special education administrator at the elementary or secondary school level, recommended by the New Hampshire Association of Special Education Administrators.

(4) Two parents of school-age children, one of whom shall be the parent of a child with an educational disability.

(5) One member from the business community, who shall be associated with the School to Work Initiative.

(6) One school business official, recommended by the New Hampshire Association of School Business Officials.

II. The commission shall elect a chairperson from among its membership and shall form subcommittees necessary to perform its duties. The chairperson shall determine the frequency of meetings at its first meeting.

III. The members of the commission shall serve without compensation, provided that legislative members of the commission shall receive mileage at the legislative rate while attending to the duties of the commission, and provided that the parent members of the commission shall be reimbursed for travel expenses associated with their duties on the commission.

IV. In order to ensure that all students are provided an adequate education, the duties of the commission shall be as follows:

(a) Determine and recommend the costs of an adequate education for all students in New Hampshire by determining and calculating adjustments for individual school districts based on yearly inflation, cost of living variances, diseconomies of scale, transportation variability, demographics, including for school districts with a disproportionate number of students who are economically disadvantaged or have educational disabilities, and such other factors as deemed relevant.

(b) Determine and recommend the amount of state aid, including building aid, to be distributed to cities and towns based upon the cost of an adequate education as set forth in subparagraph (a) and the method for distributing the state aid.

(c) Recommend changes in policy and procedure in the areas of educational improvement and accountability.

(d) Recommend interim and permanent processes to ensure adequate planning and implementation at the local and state level of special education and educationally related services, including planning for and development, on an interagency basis, of local school based options for pupils who have been placed in alternative or separate schools who could be placed in appropriate less restrictive options if available.

V. The commission shall be divided into the following policy subcommittees: adequacy and cost, educational improvement and accountability, and special education funding.

VI. The commission shall report its findings and recommendations no later than December 1, 2000. The report shall include, for each recommendation, proposed implementation schedules with timelines, specific steps, agencies and persons responsible, and resources needed. Where feasible, all plans, measures and initiatives shall be proposed as legislation or regulation so that they will have the force of law. All recommendations and plans shall be designed to be fully implemented no later than September 1, 2004.

VII. The department of justice, department of revenue administration, department of education, and department of health and human services shall provide the commission with assistance.

27 Appropriation. The sum of $150,000 for the fiscal year ending June 30, 2000, is hereby appropriated for the purposes of the commission established in RSA 198:50 as inserted by section 26 of this act. This sum shall be nonlapsing until June 30, 2001. The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated.

28 New Subparagraph; Special Education; Catastrophic Aid Payments. Amend RSA 186-C:18, III by inserting after subparagraph (c) the following new subparagraph:

(d) For each fiscal year beginning with the fiscal year ending June 30, 2000, 0.5 percent of the total statewide special education costs as defined in RSA 198:38, IX shall be appropriated from the education trust fund established in RSA 198:39 to the department of education to assist those school districts which, under rules adopted by the state board of education, qualify for emergency assistance in meeting special education catastrophic costs pursuant to this section.

29 Cooperative School Districts; Adequate Education Grants. Amend RSA 195:7, I to read as follows:

I. If a cooperative school district was organized prior to July 1, 1963, during the first 5 years after the formation of a cooperative school district each preexisting district shall pay its share of all capital outlay costs and all operational costs in excess of the amount determined necessary to provide an adequate education under RSA 198:40 in accordance with either one of the following formulas as determined by a majority vote of the cooperative district meeting:

30 Cooperative School Districts; Adequate Education Grants. Amend RSA 195:14, I(b) to read as follow:

(b) The commissioner of revenue administration shall examine such certificates and delete any appropriations which appear not made in accordance with the law, and adjust any sum, in accordance with RSA 21-J:35, which may be used as a setoff against the amount appropriated when it appears to the commissioner of revenue administration such adjustment is in the best public interest. The commissioner of revenue administration shall apply the total amount of all adequate education grants received pursuant to RSA 198:42.

31 Cooperative School Districts; Adequate Education Grants. Amend RSA 195:18, III(e) to read as follows:

(e) The method of apportioning [the] all operating expenses in excess of the amount determined necessary to provide an adequate education under RSA 198:40, of the cooperative school district among the several preexisting districts and the time and manner of payment of such shares. Home education pupils who do not receive services from the cooperative school district, except an evaluation pursuant to RSA 193-A:6, II, shall not be included in the average daily membership relative to apportionment formulas.

32 Cooperative School Districts; Adequate Education Grants. Amend RSA 195:18, IX to read as follows:

IX. The organization meeting of a cooperative school district shall be called to order by the chairperson of the cooperative school district planning board, or by the clerk-treasurer thereof, who shall serve as temporary chairperson for the first order of business which shall be the election of a moderator and of a temporary clerk, by ballot, who shall be qualified voters of the district. From and after the issuance of the certificate of formation by the board to the date of operating responsibility of the cooperative school district, such district shall have all the authority and powers of a regular school district for the purposes of incurring indebtedness, for the construction of school facilities and for such other functions as are necessary to obtain proper facilities for a complete program of education. When necessary in such interim, the school board of the cooperative school district is authorized to prepare a budget and call a special meeting of the voters of the district, which meeting shall have the same authority as an annual meeting, for the purpose of adopting the budget, making necessary appropriations, and borrowing money. Whenever the organization meeting is held on or before April 20 in any calendar year, no annual meeting need be held in such calendar year. Sums of money raised and appropriated at the organization meeting or any interim meeting prior to the first annual meeting shall be forthwith certified to the commissioner of revenue administration and the state department of education upon blanks prescribed and provided by the commissioner of revenue administration for the purpose, together with a certificate of estimated revenues, so far as known, and such other information as the commissioner of revenue administration may require. The commissioner of revenue administration shall examine such certificates and delete any appropriations which appear not made in accordance with the law, and adjust any sum which may be used as a setoff against the amount appropriated when it appears to the commissioner such adjustment is in the best public interest. The commissioner of revenue administration shall apply the total amount of all adequate education grants received pursuant to RSA 198:40 as a setoff against the amount appropriated. The commissioner of revenue administration shall certify to the state department of education the total amount of taxes to be raised for said cooperative school district and the state department of education shall determine the proportional share of said taxes to be borne by each preexisting school district and notify the commissioner of revenue administration of its determination. Upon certification by the commissioner of revenue administration the selectmen of each town shall seasonably assess the taxes as provided by law. The selectmen shall pay over to the treasurer of the cooperative district such portion of the sums so raised as may reasonably be required according to a schedule of payments needed for the year as prepared by the treasurer and approved by the cooperative school board, but no such payment shall be greater in percentage to the total sum to be raised by one local district than that of any other local district comprising such cooperative school district.

33 Reference Change. Amend RSA 193:1, I(c) to read as follows:

(c) The relevant school district superintendent has excused a child from attendance because the child is physically or mentally unable to attend school, or has been temporarily excused upon the request of the parent for purposes agreed upon by the school authorities and the parent. Such excused absences shall not be permitted if they cause a serious adverse effect upon the student's educational progress. Students excused for such temporary absences may be claimed as full-time pupils for purposes of calculating state aid under RSA 186-C:18 and [RSA 198:27-37] adequate education grants under RSA 198:41.

34 Reimbursement Anticipation Notes; Version Effective Until July 1, 1999. Amend RSA 198:20-d to read as follows:

198:20-d Reimbursement Anticipation Notes. Notwithstanding any other provision of law to the contrary, a school district may incur debt in anticipation of reimbursement under RSA 186-C:18 and under RSA 198:42. The governing body, after receiving authorization for borrowing from the legislative body, may elect to recognize the proceeds of the borrowing as revenue for property tax rate setting purposes by providing written notification, prior to September 1, to the commissioner of the department of revenue administration stating the specific amount of borrowing to be recognized as revenue.

35 Reimbursement Anticipation Notes; July 1, 1999 Version. Amend RSA 198:20-d to read as follows:

198:20-d Reimbursement Anticipation Notes. Notwithstanding any other provision of law to the contrary, a school district may incur debt in anticipation of reimbursement under RSA 186-C:18 and under RSA 198:42. The governing body, after notice and public hearing, may elect to borrow such funds and to recognize the proceeds of the borrowing as revenue for property tax rate setting purposes by providing written notification to the commissioner of the department of revenue administration stating the specific amount of borrowing to be recognized as revenue. Any borrowing under this section shall be exempt from the provisions of RSA 33, relative to debt limits.

36 Sweepstakes. RSA 284:21-j is repealed and reenacted to read as follows:

284:21-j Establishment. The state treasurer shall credit all moneys received from the sweepstakes commission, and interest received on such moneys, to a special fund from which the treasurer shall pay all expenses of the commission incident to the administration of this subdivision and RSA 287-E. Any balance left in such fund after such expenses are paid shall be deposited in the education trust fund established under RSA 198:39.

37 Transition. As of July 1, 1999, all funds, from any source derived, which would be distributed as foundation aid shall be deposited in the education trust fund under RSA 198:39, including the $62,000,000 appropriated under 1998, 389:16, II.

38 Removing Reference to Foundation Aid. Amend RSA 198:21, V to read as follows:

V. No pupil counted by any school district for the purpose of calculating the amount of a grant to be paid pursuant to this section shall for the same school year by the same district be [included in average daily membership for the purposes of foundation aid or] counted for the purposes of grants pursuant to RSA 198:22.

39 Removing Reference to Foundation Aid. Amend RSA 198:22, V to read as follows:

V. No pupil counted by any school for the purpose of calculating the amount of a grant to be paid pursuant to this section shall for the same school year by the same district be [included in average daily membership for the purposes of foundation aid or] counted for the purpose of grants pursuant to RSA 198:21.

40 Payment in Lieu of Taxes. Amend RSA 227-H:17 to read as follows:

227-H:17 Payment in Lieu of Taxes. The commissioner of revenue administration shall adopt rules, pursuant to RSA 541-A, relative to forms for application to the commissioner of revenue administration for payment for lost taxes. [In any year in which no state tax is levied,] Any town in which national forest lands and land held by the state for operation and development as state forestland, as defined by the department for the purposes of this section, are situated, whether acquired by gift, devise, purchase, or in any other manner, may apply, by its selectmen, to the commissioner of revenue administration on forms provided by the commissioner, annually before September 1, for the payment of an amount not exceeding the taxes for all purposes which such town might have received from taxes on such lands in such year had such lands been taxable. In the event that the amount appropriated in any biennium shall be insufficient for the purposes under this section, then the towns entitled to benefits under this section shall be reimbursed proportionately, unless otherwise subsequently ordered by the legislature.

41 Special Transition Rules. The following special transition rules shall apply to the implementation of the uniform education property tax established by sections 6-44 of this act in the first fiscal year following enactment:

I. "Total equalized value" as defined in RSA 21-J:3, XIII shall be based upon the amounts reported for the 1997 tax year as determined by the commissioner of revenue administration pursuant to RSA 21-J:3, XIII.

II. For the school year 1999/2000, the adequate education grant determined in RSA 198:41 shall be distributed to each municipality’s school district or districts from the education trust fund in 4 payments as follows:

(a) On July 1, 1999, and September 1, 1999, 1/8 the total adequate education grant;

(b) On January 1, 2000, and April 1, 2000, 3/8 the total adequate education grant. The commissioner of revenue administration shall certify the amount of each grant to the state treasurer and direct the payment thereof to the municipality’s school district or districts. When a payment of a grant is made to a school district, the municipality on whose behalf the payment is made, shall receive notification from the state treasurer of the amount of the payment made to its school district or districts..

III. Notwithstanding any other provision of law, the commissioner of revenue administration, for the April 1, 1999 tax year, shall issue the warrants required by RSA 76:8 on or before 30 days after the effective date of this act.

IV. Notwithstanding any other provision of law, the commissioner of revenue administration shall determine the amount of the adequate education grant for each municipality pursuant to RSA 198:41 for the 1999/2000 school year on or before 30 days after the effective date of this act.

42 Special Provision for Foundation Aid. Notwithstanding the repeal pursuant to section 44 of this act of RSA 198:27-37, relative to foundation aid and alternative foundation aid, the payment of foundation aid to be made in April 1999 pursuant to RSA 198:31 before such section is repealed, shall be calculated by the department of education and distributed to the recipients as if such repeal had not occurred.

43 Severability. If any provision of this uniform education property tax enacted in sections 6-44 of this act or the application thereof to any person or circumstance is deemed invalid, the invalidity does not affect the other provisions or applications of this act which can be given effect without the invalid provisions or applications and to this end the provisions of this act are severable.

44 Repeal. The following are repealed:

I. RSA 78:20, relative to the applicability of the tobacco tax.

II. RSA 78-B:10-a, relative to the real estate transfer questionnaire.

III. RSA 83-D, relative to the tax on nuclear station property.

IV. RSA 21-J:3, XXIII, relative to the commissioner of revenue administration's duty to determine local per capita income for purposes of foundation aid.

V. RSA 21-J:13, XI, relative to the form and content of the real estate transfer questionnaire.

VI. RSA 194-B:11, VIII, relative to foundation aid in relation to charter and open enrollment schools.

VII. RSA 198:1-3, relative to required annual district property taxes.

VIII. RSA 198:15-i-RSA 198:15-q, relative to kindergarten incentive program, kindergarten aid and alternative kindergarten programs.

IX. RSA 198:21, V, relative to the applicability of foundation aid and child benefit service grant recipients in the calculation of average daily membership.

X. RSA 198:22, V, relative to the applicability of foundation aid and dual enrollment grant recipients in the calculation of average daily membership.

XI. RSA 198:27-37, relative to foundation aid and alternative foundation aid.

45 Business Profits Tax; Rate Increased. Amend RSA 77-A:2 to read as follows:

77-A:2 Imposition of Tax. A tax is imposed at the rate of [7] 8 percent upon the taxable business profits of every business organization.

46 Business Enterprise Tax; Rate Increased; Super Majority to Increase Tax Deleted. Amend RSA 77-E:2 to read as follows:

77-E:2 Imposition of Tax. A tax is imposed at the rate of [1/4] 1/2 of one percent upon the taxable enterprise value tax base of every business enterprise. [A 2/3 majority of those present and voting of each house of the general court shall be necessary to increase the tax rate under this section.]

47 Definitions; Meals and Rooms Tax; Operator. RSA 78-A:3, IV is repealed and reenacted to read as follows:

IV. "Operator" means any person operating a hotel, charging for a taxable meal, receiving gross rental receipts, or receiving admission charges or dues, whether as owner or proprietor or lessee, sublessee, mortgagee, licensee, or otherwise.

48 New Paragraphs; Meals and Rooms Tax; Motor Vehicle Rental; Definitions. Amend RSA 78-A:3 by inserting after paragraph XIII the following new paragraphs:

XIV. "Motor vehicle" means a self-propelled vehicle designed to transport persons or property on a public highway, including a van or jeep. The term does not include the following:

(a) A device moved only by human power;

(b) A device used exclusively on stationary rails or tracks;

(c) Road-building machinery; or

(d) A mobile office.

XV. "Rental agreement" means an agreement by the owner of a motor vehicle to provide, for not longer than 180 days, the exclusive use of that motor vehicle to another for consideration.

XVI. "Gross rental receipts" means value received or promised as consideration to the owner of a motor vehicle for rental of the vehicle, but does not include:

(a) Separately stated charges for insurance;

(b) Charges for damages to the motor vehicle occurring during the rental agreement period;

(c) Separately stated charges for motor fuel sold by the owner of the motor vehicle.

XVII. "Owner of a motor vehicle" means a person named in the certificate of title as the owner of the vehicle or a person who has the exclusive use of a motor vehicle by reason of rental and holds the vehicle for re-rental.

XVIII. "Department" means the department of revenue administration.

XIX. "Renter" means any person who, for consideration paid to another, is provided a vehicle under a rental agreement.

XX. "Admission charge" means the amount paid for the right or privilege to have access to a place or location where amusement, entertainment or recreation is provided, exclusive of any charges for instruction. Places of amusement, entertainment or recreation include, but are not limited to, theaters, motion picture shows, auditoriums where lectures and concerts are given, amusement parks, race tracks, ski resorts, zoos, dance halls, ball parks, golf courses, tennis courts, gymnasiums, health and fitness clubs, skating rinks, auto shows, boat shows, camping shows, home shows, dog shows and antique shows.

XXI. "Dues" shall include assessment charges to members of athletic clubs irrespective of the purpose for which such charges are made and any charges for sporting privileges for any period of more than 6 days but not including charges made for instruction.

XXII. "Athletic club" means any golf course, gymnasium, health or fitness club, tennis club, racquet club, or country club for which members are assessed dues, and members of such club enjoy the right or privilege to have access to club sporting or recreational facilities, whether or not additional charges are assessed for such access.

XXIII. "Participant" means any person who, for consideration paid to another, is provided access to a place or location where amusement, entertainment, or recreation is provided including, but not limited to, members of athletic clubs.

49 Meals and Rooms Tax; Licenses Required; Penalty. Amend RSA 78-A:4 to read as follows:

78-A:4 Licenses Required; Penalty.

I. Each operator shall register with the department the name and address of each place of business within the state where [he] it operates a hotel [or], sells taxable meals, charges dues or admission charges, or rents motor vehicles. The operator shall pay $5 for each registration, upon receipt of which the department shall issue a license for each place in such form as it determines, attesting that the registration has been made. The license expires on June 30 in each odd-numbered year unless sooner revoked or suspended by the department. The license shall be conspicuously posted in a public area upon the premises to which it relates.

II. No person shall engage in serving taxable meals [or], renting rooms, charging admission charges or dues, or renting motor vehicles without first obtaining the license required by this section. The license is nonassignable and cannot be transferred. Any person who fails to register or obtain a license as provided in this section shall be subject to the penalty provisions of RSA 21-J:39.

50 New Paragraphs; Tax Imposed on Motor Vehicle Rentals; Admission Charges and Dues. Amend RSA 78-A:6 by inserting after paragraph II the following new paragraphs:

II-a. A tax of 8 percent is imposed upon the gross rental receipts of each rental.

II-b. A tax of 8 percent is imposed on dues and admission charges.

51 Meals and Rooms Tax; Collection of Tax. Amend RSA 78-A:7, I to read as follows:

I. The operator shall either state the amount of the tax to each occupant [or], purchaser of a meal, renter, or participant, or state that the tax is included in the price of the occupancy [or], meal gross rental receipts received, or admission charges or dues. The operator shall demand and collect the tax from the occupant [or], purchaser, renter, or participant. The occupant [or], purchaser, renter, or participant shall pay the tax to the operator. If the tax is included in the price of the meal [or] occupancy, gross rental receipts received, or admission charges or dues, upon request the operator shall state to the purchaser [or], occupant, renter, or participant the amount of the tax.

52 Meals and Rooms Tax; Collection of Tax. Amend RSA 78-A:7, IV to read as follows:

IV. In lieu of keeping detailed records of taxes collected, and in lieu of payment of the taxes collected under this chapter, an operator may, in writing, elect to compute the amount of taxes due at [7] 8 percent of the total taxable rent [or], charge for meals, gross rental receipts, or admission charges or dues received by [him] it, or both, exclusive of the taxes collected on such rents [and], charges, gross rental receipts, and admission charges and dues. If this election is made, the operator may not change the method of computing taxes without the written consent of the department. Any balance of the tax remaining in possession of the operator may be retained by [him] it.

53 Tobacco Settlement Funds. Beginning with the fiscal year ending June 30, 1999, $20,000,000 of funds received each fiscal year by the state of New Hampshire as a result of the settlement in 1998 of litigation against tobacco companies shall be deposited in the education trust fund established in RSA 198:39. The governor is authorized to draw a warrant for said sums out of funds received by the state from settlement of the tobacco litigation.

54 Statement of Purpose. In adopting sections 55-61 of this act, the general court finds that:

I. The economic vitality of New Hampshire’s grand hotels is threatened by the creation of large gaming and resort complexes in southern New England and Canada. The grand hotels will be further impacted if the proposed expansion of gaming occurs in the southern part of the state. New Hampshire’s grand hotels are an inherent part of our state’s traditions, character and quality of life. Their preservation and continued existence is of fundamental importance to the economic vitality, tourism trade, hospitality, and educational opportunities of the state and to the preservation and enhancement of employment in the communities in which they exist. Therefore, the grand hotels must be given an opportunity to position themselves in a changing and increasingly competitive environment.

II. New Hampshire’s grand hotels provide substantial and positive impacts on the economies of the local communities in which they are located, as well as on that of the state of New Hampshire. The grand hotels pay substantial local property taxes, fees, and rooms and meals taxes and provide jobs to thousands of New Hampshire residents. The grand hotels are an important part of the tourism industry.

III. The pari-mutuel industry provides substantial and positive impacts on the economies of the local communities in which racetracks are located, as well as that of the state of New Hampshire. The pari-mutuel facilities pay substantial local property taxes and fees and provide jobs to thousands of New Hampshire residents. The pari-mutuel industry is also a significant part of tourism in the state.

IV. The pari-mutuel industry and the grand hotels face substantial competition from various sources. Racetracks in other jurisdictions are assessed lower taxes and receive substantial incentives to support this industry. Large resort hotels in other states have access to state-created amenities to attract year-round guests.

55 New Chapter; Electronic Games of Chance. Amend RSA by inserting after chapter 284 the following new chapter:

CHAPTER 284-A

Electronic Games of Chance

284-A:1 Definitions. In this chapter:

I. "Electronic games of chance machine" means an electronic, mechanical, or computerized machine licensed by the gaming oversight authority which, upon the insertion of cash, tokens or the payment of any consideration whatsoever, is available to be played where, by chance or skill, or both, the player may receive cash, tokens or any consideration whatsoever. Electronic games of chance machines include, but are not limited to, slot machines, video poker machines, and video lottery machines. Electronic games of chance machines do not include any redemption slot machines and redemption poker machines as defined in RSA 647 or video poker machines or other similar machines used for amusement purposes only and which do not disburse cash or tokens.

II. "Gaming oversight authority" means the authority established by RSA 284-A:2.

III. "Grand hotel" means a facility which operated with a minimum of 195 rental units in a single structure available to the public as of July 1, 1998, has restaurant facilities, restrooms, bathing facilities, public telephones, an attached 18-hole golf course in common ownership with the grand hotel facility and adequate parking for patrons.

IV. "Grand hotel applicant" means a person who owns and operates a grand hotel.

V. "Grand hotel licensee location" means the sole location within the grand hotel where electronic games of chance machines are located, which location must have existed as of January 1, 1998.

VI. "Net machine income" means all cash or other consideration utilized to play an electronic games of chance machine, less all cash or other consideration paid to players of electronic games of chance machines as winnings.

VII. "Operator applicant" means the entity in which a pari-mutuel licensee, grand hotel or resort hotel applicant will participate and apply for an operator’s license to operate electronic games of chance machines at the pari-mutuel, grand hotel, or resort hotel licensee location, as applicable.

VIII. "Operator’s license" means the license issued by the gaming oversight authority to an operator licensee which allows the operator licensee to possess, conduct and operate electronic games of chance machines in accordance with this chapter.

IX. "Operator licensee" means a pari-mutuel licensee, grand hotel applicant, resort hotel applicant or the operator applicant who is issued a license by the gaming oversight authority to operate electronic games of chance machines pursuant to this chapter.

X. "Pari-mutuel commission" means the New Hampshire pari-mutuel commission as established in RSA 284:6-a.

XI. "Pari-mutuel licensee" means an entity licensed and authorized to conduct either:

(a) Live horse racing as provided in RSA 284:16 for at least the number of days as required in RSA 284:22-a, II(a)(3) as determined by the pari-mutuel commission; or

(b) Live dog racing as provided in RSA 284:16-a for at least the number of days as required in RSA 284:22-a, II(a)(3) as determined by the pari-mutuel commission.

XII. "Pari-mutuel licensee location" means the facility at which the pari-mutuel licensee is located and where the pari-mutuel licensee conducts live thoroughbred horse racing or live dog racing as of January 1, 1998 and any real estate in which the pari-mutuel licensee has an interest as of January 1, 1998 which is adjacent to the real estate on which the pari-mutuel licensee conducts live thoroughbred horse racing or live dog racing; provided that the pari-mutuel licensee location shall include any structures that may be constructed at such location after January 1, 1998.

XIII. "Resort hotel" means a facility which operated with a minimum of 150 rental units in a single structure available to the public as of July 1, 1998, has restaurant facilities, restrooms, bathing facilities, public telephones and adequate parking for patrons in compliance with local zoning ordinances.

XIV. "Resort hotel applicant" means a person who owns and operates a resort hotel.

XV. "Resort hotel licensee location" means the sole location within the resort hotel where electronic games of chance machines are located, which location must have existed as of January 1, 1998.

XVI. "Sweepstakes commission" means the New Hampshire sweepstakes commission as established by RSA 284:21-a.

XVII. "Technology provider" means any person or entity which designs, manufactures, installs, distributes, or supplies electronic games of chance machines for sale or lease to the sweepstakes commission, and which are for use by an operator licensee for conducting electronic games of chance in accordance with this chapter.

XVIII. "Token" means the coin, which is not legal tender, sold by a cashier in a face amount equal to the cash paid by a player for the sole purpose of playing an electronic games of chance machine at a pari-mutuel licensee location or paid to a player of an electronic games of chance machine, which can be exchanged for cash at the pari-mutuel licensee location where the electronic games of chance machine is located.

284-A:2 Gaming Oversight Authority.

I. There is hereby established the New Hampshire gaming oversight authority. The gaming oversight authority shall consist of the attorney general, the commissioner of safety, and the commissioner of revenue administration or their respective designees. The attorney general or the designee of the attorney general shall serve as the chairperson of the gaming oversight authority.

II. The gaming oversight authority shall not grant a license to an eligible grand hotel applicant or resort hotel applicant that does not agree to provide the minimum distribution of net machine income as provided in RSA 284-A:12. A grand hotel applicant or resort hotel applicant may increase its distribution of net machine income as part of the application to the gaming oversight authority.

III. No license shall be issued to any person under this chapter without the prior approval of the gaming oversight authority. The gaming oversight authority shall issue licenses only after completion of the investigations set forth in this chapter and the recommendation to issue such license from the pari-mutuel commission or the sweepstakes commission, as the case may be. If the pari-mutuel commission or the sweepstakes commission does not recommend that a license be issued to an applicant, such applicant may apply to the gaming oversight authority for such license.

IV. A grand hotel applicant or a resort hotel applicant shall apply directly to the gaming oversight authority.

V. In addition to the responsibilities set forth in RSA 284-A:2, II, the gaming oversight authority shall have general responsibility for the implementation of this chapter and shall adopt rules under RSA 541-A relative to:

(a) Hearing and deciding promptly and in reasonable order all license applications or recommendations for the suspension or revocation of any license issued under this chapter.

(b) Conducting all investigations required under this chapter with regard to the application of any applicant for a license.

(c) Notifying the pari-mutuel commission that it has received an application by a pari-mutuel licensee or an operator applicant for issuance of an operator license at a pari-mutuel licensee location and requiring the pari-mutuel commission to provide the gaming oversight authority with all records of the pari-mutuel commission regarding the licensing of the pari-mutuel licensee.

(d) Conducting hearings pertaining to civil violations of this chapter or rules under the provisions of this chapter and collecting all penalties under the provisions of this chapter.

(e) Establishing standards and a reasonable fee structure for the licensing and renewal of licenses for operators.

(f) Establishing standards and a reasonable fee structure for the licensing and renewal of licenses for technology providers.

(g) Establishing standards and a reasonable fee structure for the licensing and renewal of licenses for electronic games of chance employees.

(h) Establishing technical standards for approval of electronic games of chance machines, including mechanical and electrical reliability and security against tampering, as it may deem necessary to protect the public from fraud or deception and to ensure the integrity of their operation.

(i) Establishing criteria for licensing under RSA 284-A:8.

(j) Establishing standards for reviewing, altering, removing, constructing or enlarging any structure at the pari-mutuel licensee location, grand hotel licensee location, or resort hotel licensee location.

(k) Such other rules as may be necessary to implement this chapter.

VI. The gaming oversight authority shall have the authority to issue subpoenas and compel the attendance of witnesses, to administer oaths, and require testimony of witnesses under oath.

VII. Pending the adoption of rules under RSA 541-A, and notwithstanding RSA 541-A:18, the gaming oversight authority shall adopt interim rules after public hearing and within 30 days after enactment of this chapter. Such interim rules shall automatically expire upon the adoption of rules under RSA 541-A.

VIII. No later than March 31 in each calendar year, the gaming oversight authority shall provide a report to the fiscal committee of the general court, regarding the operation of electronic games of chance machines. Such report shall include any recommendations for legislation.

IX. With regard to minutes and records of the gaming oversight authority:

(a) The gaming oversight authority shall cause to be made and kept a record of all proceedings of public meetings of the gaming oversight authority. A verbatim transcript of those proceedings shall be prepared by the gaming oversight authority upon the request of any member of the authority or upon the request of any other person and the payment by that person of the costs of preparation. A copy of a transcript shall be made available to any person upon request and payment of the costs of preparing the copy.

(b) The gaming oversight authority shall keep and maintain a list of all applicants for licenses it receives under this chapter together with a record of all actions taken with respect to such applicants. A file and record of the actions by the gaming oversight authority shall be open to public inspection provided, however, that the information regarding any applicant whose license or registration has been denied, revoked, or not renewed shall be removed from such list after 5 years from the date of such action.

(c) The gaming oversight authority shall maintain such other files and records as the gaming oversight authority determines is necessary.

(d) All information and data required by the gaming oversight authority to be furnished to it, or which may otherwise be obtained, shall be considered to be confidential and shall not be revealed in whole or in part except in the course of the necessary administration of this chapter, or upon the lawful order of a court of competent jurisdiction, or, with the approval of the attorney general, to a duly authorized law enforcement agency.

(e) All information and data pertaining to an applicant's criminal record, family, and background furnished to or obtained by the gaming oversight authority from any source shall be considered confidential and shall be withheld in whole or in part. Such information shall be released upon the lawful order of a court of competent jurisdiction or to a duly authorized law enforcement agency.

(f) Notice of the contents of any information or data released, except to a duly authorized law enforcement agency pursuant to subparagraphs (d) or (e) of this paragraph, shall be given to any applicant, registrant, or licensee in a manner prescribed by the rules adopted by the gaming oversight authority.

X. The gaming oversight authority may from time to time contract for and procure on a fee or independent contracting basis such financial, economic, or security consultants and any other technical and professional services as the authority deems necessary for the discharge of its duties. The cost shall be a charge against the general fund.

284-A:3 Duties of the Pari-mutuel Commission.

I. The pari-mutuel commission shall:

(a) Provide to the gaming oversight authority all records pertaining to the licensing of a pari-mutuel licensee under RSA 284 within 30 days after the pari-mutuel commission receives notice from the gaming oversight authority pursuant to RSA 284-A:2, V(c).

(b) Hear and make recommendations promptly but no later than 60 days after receipt of notice from the gaming oversight authority pursuant to RSA 284-A:2, V(c) to the gaming oversight authority and in reasonable order all license applications for a license under RSA 284-A:8, II.

II. The pari-mutuel commission shall make its recommendation to the gaming oversight authority in writing and after hearing. All hearings shall be conducted in accordance with the rules adopted by the pari-mutuel commission under RSA 284 and subject to RSA 284-A:3, III.

III. With regard to minutes and records of the pari-mutuel commission:

(a) The pari-mutuel commission shall cause to be made and kept a record of all proceedings of public meetings of the pari-mutuel commission pursuant to this chapter. A verbatim transcript of those proceedings shall be prepared by the pari-mutuel commission upon the request of any commissioner or upon the request of any other person and the payment by that person of the costs of preparation. A copy of a transcript shall be made available to any person upon request and payment of the costs of preparing the copy.

(b) The pari-mutuel commission shall keep and maintain a list of all notices it receives under RSA 284-A, together with a record of all actions taken with respect to such notices. A file and record of the pari-mutuel commission’s actions shall be open to public inspection provided, however, that the information regarding any applicant whose license or registration has been denied, revoked, or not renewed shall be removed from such list after 5 years from the date of such action.

(c) The pari-mutuel commission shall maintain such other files and records as the pari-mutuel commission determines is necessary.

(d) All information and data required by the pari-mutuel commission to be furnished to it, or which may otherwise be obtained, shall be considered to be confidential and shall not be revealed in whole or in part except in the course of the necessary administration of this chapter, or upon the lawful order of a court of competent jurisdiction, or with the approval of the attorney general, to a duly authorized law enforcement agency.

(e) All information and data pertaining to an applicant's criminal record, family, and background furnished to or obtained by the pari-mutuel commission from any source shall be considered confidential and shall be withheld in whole or in part. Such information shall be released upon the lawful order of a court of competent jurisdiction or to a duly authorized law enforcement agency.

(f) Notice of the contents of any information or data released, except to a duly authorized law enforcement agency pursuant to subparagraphs (d) or (e) of this paragraph, shall be given to any applicant, registrant, or licensee in a manner prescribed by the rules and regulations adopted by the pari-mutuel commission.

284-A:4 Duties of the Sweepstakes Commission.

I. The sweepstakes commission shall:

(a) Hear and make recommendations promptly to the gaming oversight authority and in reasonable order all license applications for technology providers.

(b) Collect all license fees imposed upon any applicant and all taxes imposed by this chapter.

(c) Adopt, pursuant to RSA 541-A, such rules as may be necessary to implement this chapter.

(d) Certify net machine income by inspecting records, conducting audits, having its agents on site, or by any other reasonable means.

(e) Establish a central computer system located at the office of the sweepstakes commission linking all electronic games of chance machines to a central mainframe located at the office of the sweepstakes commission to insure control over electronic games of chance. The sweepstakes commission shall establish a bid procedure for such contracts.

(f) Enter into lease agreements with technology providers to provide electronic games of chance machines to operator licensees. These lease agreements shall provide that each technology provider shall supply the quantity and quality of electronic games of chance machines as determined by an operator licensee in a timely and efficient manner. Each agreement shall also provide that the technology provider shall provide all maintenance and service of its electronic games of chance machines at no additional charge or fee to the state or the operator licensees.

(g) Establish technical standards for approval of electronic games of chance machines, including mechanical and electrical reliability and security against tampering, as it may deem necessary to protect the public from fraud or deception and to ensure the integrity of their operation.

(h) Subject to the provisions of RSA 284-A:8, IX, determine from time to time the number of electronic games of chance machines that any operator licensee may operate.

II. The sweepstakes commission shall have the authority to issue subpoenas and compel the attendance of witnesses, to administer oaths and to require testimony under oath.

III. No later than March 1 in each calendar year, the sweepstakes commission shall provide a report to the gaming oversight authority regarding the generation of revenues of electronic games of chance machines by pari-mutuel licensees.

IV. With regard to minutes and records of the sweepstakes commission:

(a) The sweepstakes commission shall cause to be made and kept a record of all proceedings held at public meetings of the sweepstakes commission. A verbatim transcript of those proceedings shall be prepared by the sweepstakes commission upon the request of any commissioner or upon the request of any other person and the payment by that person of the costs of preparation. A copy of the transcript shall be made available to any person upon request and payment of the costs of preparing the copy.

(b) The sweepstakes commission shall keep and maintain a list of all notices for licenses as technology providers under RSA 284-A, together with a record of all actions taken with respect to such applicants. A file and record of the actions by the sweepstakes commission shall be open to public inspection provided, however, that the information regarding any applicant whose license or registration has been denied, revoked, or not renewed shall be removed from such list after 5 years from the date of such action.

(c) The sweepstakes commission shall maintain such other files and records as the sweepstakes commission determines is necessary.

(d) All information and data required by the commission to be furnished to it, or which may otherwise be obtained, shall be considered to be confidential and shall not be revealed in whole or in part except in the course of the necessary administration of this chapter, or upon the lawful order of a court of competent jurisdiction, or with the approval of the attorney general, to a duly authorized law enforcement agency.

(e) All information and data pertaining to an applicant’s criminal record, family, and background furnished to or obtained by the sweepstakes commission from any source shall be considered confidential and shall be withheld in whole or in part. Such information shall be released upon the lawful order of a court of competent jurisdiction, or with the approval of the attorney general, to a duly authorized law enforcement agency.

(f) Notice of the contents of any information or data released, except to a duly authorized law enforcement agency pursuant to subparagraphs (d) or (e) of this paragraph, shall be given to any applicant, registrant, or licensee in a manner prescribed by the rules adopted by the sweepstakes commission.

V. Pending the adoption of rules under RSA 541-A, and notwithstanding RSA 541-A:18, the sweepstakes commission shall adopt interim rules after public hearing and within 30 days after enactment of this chapter. Such interim rules shall automatically expire in accordance with RSA 541-A:19.

284-A:5 Restrictions on Employment.

I. No person who has held an interest in or been employed by the holder of a pari-mutuel license or an operator's license or has held an interest in or been employed by a grand hotel or resort hotel shall be employed by the gaming oversight authority, the pari-mutuel commission, the sweepstakes commission, or gaming enforcement division for 2 years from the expiration of such interest or employment. Excluded from this prohibition shall be employees of a pari-mutuel licensee who are employed on an emergency or temporary basis by the pari-mutuel commission for services in connection with a live race or live race meet.

II. No person who holds an interest in or is employed by the holder of a pari-mutuel license or an operator's license, or holds an interest in or is employed by a grand hotel or resort hotel, shall be employed by the gaming oversight authority, the pari-mutuel commission, the sweepstakes commission, or gaming enforcement division.

III. No employee of the gaming oversight authority, the pari-mutuel commission, the sweepstakes commission, or gaming enforcement division shall play an electronic games of chance machine.

IV. No employee of the gaming oversight authority, the pari-mutuel commission, the sweepstakes commission, or gaming enforcement division shall directly or indirectly pay or contribute money or things of value to:

(a) Any candidate for nomination or election to any public office in this state.

(b) Any political party or any committee of any political party in this state.

(c) Any group, committee or association organized in support of any such candidate or political party.

V. No person who was employed by the gaming oversight authority, the pari-mutuel commission, the sweepstakes commission, or gaming enforcement division shall hold an interest in or be employed by the holder of a pari-mutuel license or an operator's license, or hold an interest in or be employed by a grand hotel or resort hotel, for a period of 2 years from the termination of employment by the gaming oversight authority, pari-mutuel commission, the sweepstakes commission, or gaming enforcement division.

284-A:6 Authorization for Electronic Games of Chance.

I. A pari-mutuel licensee, grand hotel applicant, or resort hotel applicant shall be authorized to install, operate and conduct electronic games of chance at its pari-mutuel licensee location, grand hotel licensee location, or resort hotel licensee location, subject to the provisions of this chapter.

II. A pari-mutuel licensee, grant hotel applicant, or resort hotel applicant may enter into one or more agreements to manage or participate in the operation of electronic games of chance at its pari-mutuel licensee location, grant hotel licensee location, or resort hotel licensee location; such operator applicant must be licensed under this chapter.

284-A:7 New Hampshire Electronic Gaming Areas.

I. There are established 2 New Hampshire electronic gaming areas as follows:

(a) The "White Mountain Tourist Gaming Area" which shall include those Carroll County municipalities and unincorporated towns of Chatham, Jackson, Hart’s Location, Bartlett, Hale’s Location, Conway, Albany and the Grafton County municipalities and unincorporated towns of Littleton, Bethlehem, Monroe, Lyman, Lisbon, Sugar Hill, Franconia, Bath, Landaff, Easton, Lincoln, Livermore, Haverhill, Benton, Woodstock, Thornton, Waterville, Campton, Ellsworth, Warren and Piermont.

(b) The "North Country Tourist Gaming Area" shall include all of the municipalities and unincorporated towns of Coos County.

II. The gaming oversight authority shall issue 2 operator’s licenses for each of the New Hampshire electronic gaming areas established in paragraph I, provided there are eligible applicants for such licenses.

284-A:8 Licenses, Number of Electronic Games of Chance Machines.

I. No person shall engage in the ownership, possession, transfer, maintenance, repair or operation of an electronic games of chance machine unless such person is licensed in accordance with the provisions of this chapter, local approval as provided in RSA 284-A:13 has been obtained, the gaming oversight authority has adopted temporary rules pursuant to RSA 284-A:2, VII, and the sweepstakes commission has adopted temporary rules as provided in RSA 284-A:4, V.

II. Any pari-mutuel license issued by the pari-mutuel commission following the effective date of this chapter shall not authorize the pari-mutuel licensee to install, operate or conduct electronic games of chance machines until the pari-mutuel licensee is issued an operator's license pursuant to the provisions of this chapter.

III. Any operator applicant shall be licensed as an operator licensee in accordance with the provisions of this chapter prior to engaging in any activity authorized by this chapter.

IV. Any employee of an operator licensee who is directly engaged in the installation or operation of electronic games of chance machines or in any moneys associated with the playing of electronic games of chance machines and all supervisory and managerial personnel, shall be licensed as an electronic games of chance employee in accordance with this chapter prior to engaging in any activity authorized by this chapter.

V. Any technology provider engaged in the business of providing, installing, maintaining or repairing electronic games of chance machines shall be licensed by the gaming oversight authority in accordance with the provisions of this chapter prior to engaging in any activity authorized by this chapter. No technology provider shall be entitled to operate electronic games of chance machines.

VI.(a)(1) On or prior to June 30, 2001, each operator licensee at a pari-mutuel licensee location at which live dog racing is conducted shall be limited to 750 electronic games of chance machines in operation at each such pari-mutuel licensee location.

(2) On or prior to June 30, 2001, the operator licensee at the pari-mutuel licensee location at which live thoroughbred horse racing is conducted shall be limited to 1500 electronic games of chance machines in operation at such pari-mutuel licensee location.

VII. On or prior to June 30, 2001, each operator licensee at a grand hotel licensee location or a resort hotel licensee location shall be limited to 500 electronic games of chance machines.

VIII. The gaming oversight authority shall consider the following factors prior to issuing an operator’s license to a grand hotel applicant, resort hotel applicant or applicable operator applicant:

(a) Total distribution of net machine income.

(b) A detailed economic plan for the municipality and the surrounding region where the grand hotel or resort hotel is located with supporting documentation to explain the following:

(1) Quality of jobs including, but not limited to, wages and fringe benefits.

(2) Historical unemployment in the area.

(3) Direct and indirect employment gain.

(4) Impact on the tourism-based economy.

(5) Impact on regional economic development.

(6) Historical and projected household income.

(7) Tourist trends.

(c) A business plan to support the request for electronic games of chance machines.

(d) Market demand for the electronic games of chance machines.

(e) Qualifications of those persons who own or manage the grand hotel applicant or resort hotel applicant.

(f) Regional population.

(g) Vehicle traffic.

(h) Total square footage of the grand hotel or resort hotel facility and the total land acreage of such facility.

(i) Housing availability for employees.

(j) Availability of suitable infrastructure.

(k) Evidence provided by the applicant that the applicant has received local approval as required.

(l) Other information that the authority may require.

IX. Commencing as of July 1, 2001 and thereafter, but no more frequently than at 6-month intervals thereafter, the sweepstakes commission may increase the number of electronic games of chance machines in operation by an operator licensee, subject to approval of such recommendation by the gaming oversight authority. The determination by the sweepstakes commission shall be made after due consideration of the economic conditions present at the time of the determination, including without limitation, the performance of the operator licensee in operating the then existing electronic games of chance machines, the present market conditions and market forecasts and projections, and the financial ability of the operator licensee. Prior to any determination hereunder, the sweepstakes commission shall notify each operator licensee in writing that the sweepstakes commission intends to consider an adjustment in the number of electronic games of chance machines. No such determination shall be made until after notice and a hearing by the sweepstakes commission and specific findings and rulings are made by the sweepstakes commission. The sweepstakes commission shall adopt rules under RSA 541-A, regarding the procedures under this paragraph.

X. In addition to all other enforcement powers it has, the sweepstakes commission may, after notice and hearing, reduce the number of electronic games of chance machines at a pari-mutuel licensee location, grand hotel licensee location or resort hotel licensee location for cause, including the failure to comply with the rules and regulations of the gaming oversight authority, the pari-mutuel commission or the sweepstakes commission.

XI. No pari-mutuel licensee, grand hotel applicant, resort hotel applicant or operator licensee shall alter, construct, remove, or enlarge any structure at the pari-mutuel licensee location, grand hotel licensee location or resort hotel licensee location, as applicable, without the prior approval of the gaming oversight authority, except for the winterization of structures existing as of January 1, 1998.

284-A:9 Application and License Requirement for State License for Electronic Games of Chance.

I. An applicant who has been authorized for an electronic games of chance license shall secure a state license from the gaming oversight authority. An applicant must complete and sign an application on the forms prescribed by the gaming oversight authority. The application shall include the full name, residence, date of birth, and other personal identifying information of the applicant, and if a corporation or other form of business enterprise, the same information shall be provided with respect to each partner, trustee, officer, director, and any shareholder or other holder who owns more than 10 percent of the legal or beneficial interests of such entity.

II. Whenever the gaming oversight authority shall receive an application, including any application under RSA 284-A:10, it shall refer the same to the attorney general who shall conduct an investigation. The investigation may be conducted through any appropriate state or federal law enforcement system and may seek information as to the subject's financial, criminal or business background, or any other information which the attorney general, in his or her sole discretion, may find to bear on the subject's fitness to be associated with the ownership or management of the operation of electronic games of chance machines in New Hampshire, including, but not limited to, the subject's character, personal associations, and the extent to which the subject is properly doing business in the manner in which it purports to operate. When the gaming oversight authority requests such an investigation, the attorney general shall report the results of his or her investigation to the gaming oversight authority within 90 days after the receipt of said request. Notwithstanding any other law to the contrary, the results of any such investigation shall be confidential and shall not be subject to disclosure or to public inspection, except that the attorney general, in the attorney general’s sole discretion, shall determine the extent to which and the manner in which said results may be reported to the gaming oversight authority or other state agency or official and, if reported, whether such results are to retain their confidential character; provided, however, that whenever the attorney general conducts such an investigation, the attorney general shall notify the gaming oversight authority whether or not in his or her opinion such person is fit to be associated with participation in the ownership or management of the operation of electronic games of chance machines in this state. The attorney general shall have the authority to conduct an investigation on the attorney general’s motion into the background of the license applicant or holder, or any person or entity upon whom the license applicant or holder relies for financial support.

III. In any investigation conducted pursuant to paragraph II, the attorney general or any duly authorized member of the attorney general’s staff may require by subpoena or otherwise the attendance of witnesses and the production of such correspondence, documents, books and papers as he deems advisable, and for purposes of this section, may administer oaths and take the testimony of witnesses. No person shall be excused from testifying or from producing any book or paper in any investigation conducted pursuant to paragraph II upon the ground that such testimony or documentary evidence might tend to incriminate such person; provided that if, after a claim of privilege, the attorney general, in writing, orders such person to testify or produce documentary evidence, he or she shall not be prosecuted, punished or subjected to any penalty or forfeiture for or on account of any act, transaction, matter or thing which he or she, under oath, disclosed or produced. No person so testifying shall be exempt from prosecution or punishment for any perjury committed by the person in his or her testimony.

IV. The gaming oversight authority shall charge the applicant an application fee of $100,000 which shall be used to defray the cost of processing the application. If the cost of processing the application exceeds $100,000, the applicant shall pay the difference. The attorney general shall charge the applicant an investigation fee of $50,000 which shall be used to defray the cost of the background investigation. If the cost of the background investigation exceeds $50,000, the applicant shall pay the difference.

284-A:10 Licensure Requirements.

I. No operator's license shall be issued by the gaming oversight authority unless the applicant has proven to the satisfaction of the gaming oversight authority by clear and convincing evidence:

(a) Its financial stability, integrity and responsibility, considering, without limitation, bank references, business and personal income and disbursement schedules, tax returns and other reports filed with governmental agencies, and business and personal accounting and check records and ledgers.

(b) The integrity of all financial backers, investors, mortgagees, bondholders, and holders of indentures, notes and other evidences of indebtedness of the applicant.

(c) Its good character, honesty and integrity, considering, without limitation, information pertaining to family, habits, character, reputation, criminal and arrest record, business activities, financial affairs, and business, professional and personal associates, covering at least the 10-year period immediately preceding the filing of the application.

(d) Its business ability and experience in the manufacture, installation, repair, maintenance or operation of electronic games of chance machines, as appropriate, so as to establish the likelihood of a successful and efficient operation.

II.(a) In addition, no operator's license shall be issued by the gaming oversight authority to any applicant unless the applicant has proven to the satisfaction of the gaming oversight authority by clear and convincing evidence that each director, officer or similar principal employee and each direct or indirect owner satisfies the standards for licensure contained in RSA 284-A:10, I.

(b) The gaming oversight authority may, in its discretion, waive the qualification requirement for any such person who is not significantly involved in the activities of the applicant, does not have the ability to significantly influence or control the applicant, or for other good cause.

(c) Except as provided in RSA 284-A:10, II(d), no person who owns, directly or indirectly, legally or beneficially, 10 percent or less of the equity securities or 20 percent or less of the outstanding debt securities of a publicly traded holding company of an applicant for an operator's license shall be required to be qualified pursuant to the provisions of this section prior to the issuance of such a license to the applicant.

(d) If an operator licensee has 25 or fewer holders of its equity securities, either directly or indirectly, legally or beneficially, then each such holder shall satisfy the standards of RSA 284-A:10, II(a).

III. No technology provider's license shall be issued by the gaming oversight authority after recommendation by the sweepstakes commission unless the applicant has demonstrated to the satisfaction of the gaming oversight authority by clear and convincing evidence that it satisfies the standards contained in paragraphs I and II of this section. The sweepstakes commission shall establish the form of application which must be completed by each applicant for a technology provider’s license. Each technology provider license applicant shall be subject to the investigation set forth in RSA 284-A:9 except that all investigatory reports shall be provided to the sweepstakes commission and the gaming oversight authority.

IV. No electronic games of chance employee license shall be issued by the gaming oversight authority unless the applicant has proven to the satisfaction of the gaming oversight authority by clear and convincing evidence that such person satisfies the standards contained in paragraph I of this section.

V. All information and data required by the gaming oversight authority, the pari-mutuel commission, the sweepstakes commission, or gaming enforcement division to be furnished pursuant to this chapter, or which may otherwise be obtained by the gaming oversight authority, the pari-mutuel commission, the sweepstakes commission, or gaming enforcement division in the performance of their duties under this chapter, except information regarding net machine income, shall be considered to be confidential and shall not be revealed in whole or in part except in the course of the necessary administration of this chapter, upon lawful order of a court of competent jurisdiction, or with the approval of the commissioner of safety, to a duly authorized law enforcement agency.

VI. The gaming oversight authority shall charge an application fee of $50,000 which shall be used to defray the cost of processing the electronic games of chance employee licensing. If the cost of processing the application exceeds $50,000 for the electronic games of chance employee licensing, the applicant shall pay the difference.

VII. The sweepstakes commission shall charge an application fee of $50,000 which shall be used to defray the cost of processing the technology provider’s license. If the cost of processing the application exceeds $50,000 for the technology provider’s license, the applicant shall pay the difference.

VIII. In addition to all other fees, the sweepstakes commission shall collect from each pari-mutuel licensee, grand hotel applicant, resort hotel applicant, or operator licensee the annual fee of $50 for each electronic game of chance machine located at the pari-mutuel licensee location, grand hotel licensee location, or resort hotel licensee location and the annual fee of $10,000 from each technology provider.

284-A:11 Exclusion of Minors.

I. No person under the age of majority shall play an electronic games of chance machine authorized by this chapter.

II. No pari-mutuel licensee or operator's licensee shall knowingly permit a minor to play or participate in any aspect of the play of an electronic games of chance machine.

III. Each violation of RSA 284-A:11, I shall be punishable by a fine of no more than $1,000 and shall be payable by such person who violates such paragraph.

IV. Each violation of RSA 284-A:11, II shall be punishable by a fine of no more than $1,000 and shall be payable by the pari-mutuel licensee or operator licensee that is found to have violated such paragraph.

284-A:12 Minimum Distribution of Net Machine Income.

I. The operator licensee at a grand hotel licensee location or a resort hotel licensee location shall, at a minimum, distribute net machine income generated by such operator licensee at a grand hotel licensee location or resort hotel licensee location as provided in paragraph II of this section excluding the payment set forth in RSA 284-A:12, II(c). All other operator licensees shall distribute net machine income as set forth in paragraph II of this section excluding the payment set forth in RSA 284-A:12, II(d).

II. Subject to the provisions of RSA 284-A:12, I, net machine income generated by an operator licensee shall be distributed and paid as follows:

(a) Sixty-two percent of net machine income shall be paid to the state from which the state shall pay for its costs of regulation and administration; the acquisition and operation of the central computer system; the lease payments due to technology providers; and the balance shall be deposited with the treasurer for funding public education.

(b) Two percent of net machine income shall be paid to the municipality in which an operator licensee operates electronic games of chance machines.

(c) Three and two tenths percent of net machine income generated by an operator licensee at a pari-mutuel licensee location shall be paid to the pari-mutuel commission which will establish a horse racing purse fund for live horse racing and the horse racing purse fund shall be disbursed as follows:

(1) The sum of $257,000 each year and adjusted annually for inflation to the Jockeys Guild Health and Welfare Trust maintained by Jockeys Guild, Inc. for the sole purpose of providing health and welfare benefits to active, disabled, and retired jockeys in accordance with eligibility criteria established by the Guild; and

(2) The balance of such fund toward purses for live horse racing conducted by the pari-mutuel licensee at such pari-mutuel licensee location.

(d) Three and two-tenths percent of net machine income generated by an operator licensee at a grand hotel licensee location or a resort hotel licensee location shall be paid and disbursed as follows:

(1) One and six-tenths percent of net machine income shall be paid to the travel and tourism joint promotional advertising fund hereby established in the office of the state treasurer, to be used by the office of travel and tourism, division of economic development, department of resources and economic development to promote travel and tourism in the state; and

(2) One and six-tenths percent shall be paid to the pari-mutuel commission which will establish a live racing purse fund for live dog racing purses for live dog racing conducted by a pari-mutuel licensee at its pari-mutuel licensee location.

(e) Thirty-two and eight-tenths percent of net machine income shall be retained by the operator licensee.

III.(a) The pari-mutuel commission shall adopt rules and regulations regarding the disbursement of moneys collected in the horse racing purse fund created in RSA 284-A:12, II(c) to the pari-mutuel licensee which conducts live horse racing for live horse racing purses.

(b) The pari-mutuel commission shall adopt rules and regulations regarding the disbursement of moneys collected in the live racing purse fund created in RSA 284-A:12, II(d)(2) to a pari-mutuel licensee which conducts live horse racing or live dog racing at its pari-mutuel licensee location for purses for such live racing.

IV. All distributions to the state, the pari-mutuel commission, the state treasurer, and the municipality shall be made by the operator licensee within 5 business days after the end of each week in which net machine income is generated. The operator licensee shall pay a fine equal to the greater of $50 for each day in which such payments are overdue in whole or in part or interest on the unpaid amount with interest calculated at the annual rate of 10 percent for each day for which the payment due is late. The late payment penalty shall be paid by the operator licensee to the sweepstakes commission. Notwithstanding the foregoing, the fine imposed in this paragraph shall not limit the gaming oversight authority from imposing further sanctions if the sweepstakes commission determines that an operator licensee habitually violates this section.

284-A:13 Procedures for Adoption by Local Community.

I. Any town or city in which a pari-mutuel licensee location, grand hotel licensee location, or resort hotel licensee location is situated may adopt the provisions of RSA 284-A, to allow the operation of electronic games of chance, in the following manner:

(a) In a town, the question shall be placed on the warrant of a special or annual town meeting under the procedures set out in RSA 39:3, and shall be voted on a ballot; provided, however, if the question is placed on the warrant at a special town meeting, it shall be the only question at such special town meeting. In a city, the legislative body may vote to place the question on the official ballot for any regular municipal election, or, in the alternative, shall place the question on the official ballot for any regular municipal election upon submission to the legislative body of a petition signed by 5 percent of the registered voters.

(b) The selectmen or city council shall hold a public hearing on the question at least 15 days but not more than 30 days before the question is to be voted on. Notice of the hearing shall be posted in at least 2 public places in the municipality and published in a newspaper of general circulation at least 7 days before the hearing.

(c) The wording of the question shall be substantially as follows: "Shall we adopt the provisions of RSA 284-A, allowing the operation of electronic games of chance at the licensed pari-mutuel, grand hotel, or resort hotel facility located within the town?"

II. If a majority of those voting on the question vote "Yes," RSA 284-A shall apply within the city or town and may not be rescinded by the city or town.

III. If the question is not approved, the question may later be voted upon according to the provisions of paragraph I, provided, however, that the town may consider the question at no more than one special town meeting and the annual town meeting in the same calendar year.

284-A:14 Inspection of Machines; Penalty for Tampering or Manipulating.

I. The sweepstakes commission shall, from time to time, test electronic games of chance machines installed at a pari-mutuel licensee location, grand hotel licensee location, or resort hotel licensee location. In conducting such tests, the sweepstakes commission shall use the services of an independent laboratory, the cost of which independent laboratory shall be paid by the technology provider.

II. Any person who, with the intent to manipulate the outcome, payoff or operation of an electronic games of chance machine, manipulates the outcome, payoff or operation of any electronic games of chance machine by physical, electronic or mechanical means, shall be guilty of a felony.

284-A:15 Electronic Games of Chance Machines.

I.(a) An operator licensee shall provide to the gaming oversight authority, the sweepstakes commission and, if regulated by the pari-mutual commission, to the pari-mutuel commission, by diagram a description of:

(1) The location of each electronic games of chance machine available for play by the public.

(2) The location of all areas for the storage, maintenance or repair of such machines.

(3) A description of all security measures to be taken for the safeguarding of such machines.

(4) The location and security measures taken for the safeguarding of all moneys, tokens, or other items of value utilized in the use of electronic games of chance machines.

(5) All procedures for the operation, maintenance, repair and inserting or removing of moneys, tokens, or other items of value from electronic games of chance machines.

(b) All of the above shall be approved by the gaming oversight authority prior to commencing the operation of any electronic games of chance machines.

II. No electronic games of chance machine shall be possessed, maintained, exhibited, brought into or removed from a pari-mutuel licensee location, a grand hotel licensee location, or a resort hotel location by any person unless such machine has permanently affixed to it an identification number or symbol authorized by the gaming oversight authority and prior notice of any such movement has been given to the sweepstakes commission.

III.(a) Each operator licensee shall maintain secure facilities for the counting and storage of all moneys, tokens, or other items of value utilized in the conduct of electronic games of chance machines.

(b) All drop boxes and other devices where moneys, tokens, or other items of value are deposited in electronic games of chance machines and all areas wherein such boxes and devices are kept while in use shall be equipped with 2 locking devices, one key which shall be under the exclusive control of the sweepstakes commission and the other under the exclusive control of the operator licensee. Said drop boxes and other devices shall not be brought into the pari-mutuel licensee location, grand hotel licensee location, or resort hotel licensee location or removed from an electronic games of chance machine, locked or unlocked, except at such times and such places and according to such procedures as the sweepstakes commission may require to safeguard such boxes and devices and their contents.

IV.(a) No electronic games of chance machine shall be used to conduct gaming unless it is identical in all electrical, mechanical and other aspects to a model which has been specifically tested by the sweepstakes commission and licensed for use by the sweepstakes commission.

(b) The sweepstakes commission shall, by rule, establish technical standards for approval of electronic games of chance machines, including mechanical and electrical reliability and security against tampering, as it may deem necessary to protect the public from fraud or deception and to ensure the integrity of their operation.

(c) All electronic games of chance machines in operation at a pari-mutuel licensee location shall provide a pay off of at least 87 percent on an average annual basis.

(d) All tickets given as prizes or winnings from electronic games of chance machines must be redeemed for cash within one year after the date of winning. After the expiration of that one year, all such unredeemed tickets shall become property of the state of New Hampshire, notwithstanding any other law to the contrary.

V. An operator licensee who operates electronic games of chance machines shall not be restricted in the days of operation of such machines, so long as the pari-mutuel licensee has scheduled at least the number of days of racing as required by RSA 284:22-a, II(a)(3). The hours of operation on each day shall be determined by the gaming oversight authority.

VI. The sweepstakes commission shall negotiate and execute agreements with at least 3 technology providers in accordance with reasonable business terms subject to the provisions of RSA 284-A:4, (I)(f). Each operator licensee shall obtain electronic games of chance machines from such technology providers and no others, provided, that no operator licensee shall obtain more than 50 percent of its electronic games of chance machines from any one such technology provider.

VII. The operation of electronic games of chance machines at a grand hotel licensee location or resort hotel licensee location shall not be restricted in the days of operation of such machines. The hours of operation on each day shall be determined by the gaming oversight authority.

VIII. Electronic games of chance machines shall be operated only at times when the public is allowed access to the locations. They shall not be operated during private functions.

284-A:16 Term of License.

I. Any operator’s license or technology provider’s license issued pursuant to this chapter and any renewal thereof shall be valid for 2 years unless earlier suspended or revoked by the gaming oversight authority.

II. Any electronic games of chance employee license or renewal thereof issued pursuant to this chapter shall be valid for 3 years unless earlier suspended or revoked by the gaming oversight authority.

284-A:17 Presence of the Gaming Oversight Authority and Sweepstakes Commission.

I.(a) The gaming oversight authority may be present at any pari-mutuel licensee location, grand hotel licensee location, or resort hotel licensee location at which electronic games of chance machines are operated at all times when the facility is open to the public.

(b) The operator licensee may be required by the gaming oversight authority or gaming enforcement division to provide such office space and equipment which the commission shall by rule determine is reasonably necessary or proper for them to fulfill their responsibilities.

II. The sweepstakes commission may be present at any time an electronic games of chance machine is opened to remove or insert any drop box, hopper, or other mechanism containing money, tokens, or other items of value. The sweepstakes commission may be present in the count room at any time money, tokens or other items of value utilized in electronic games of chance machines are counted.

284-A:18 Sanction Powers of the Gaming Oversight Authority.

I. The gaming oversight authority shall have the sole and exclusive authority, following appropriate hearings and factual determinations, to impose sanctions against any person for any violation of this chapter or any rule of the gaming oversight authority, the sweepstakes commission, or the pari-mutuel commission adopted under the provisions of this chapter.

II. The gaming oversight authority shall have the authority to impose sanctions upon any person for any violation of this chapter or the rules of the gaming oversight authority, the pari-mutuel commission or the sweepstakes commission as follows:

(a) Revocation or suspension of a license.

(b) Civil penalties as may be necessary to punish misconduct and to deter future violations, which penalties may not exceed $20,000 for each violation.

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

(d) Issue a cease and desist order which specifies the conduct which is to be discontinued, altered, or implemented by the person.

(e) Issue letters of reprimand or censure, which letters shall be made a permanent part of the file of each person so sanctioned.

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

III. In determining appropriate sanctions in a particular case, the gaming oversight authority shall consider:

(a) The risk to the public and to the integrity of electronic games of chance machine operations created by the conduct of the person.

(b) The seriousness of the conduct of the person and whether the conduct was purposeful or with knowledge that it was in contravention of the provisions of this chapter or the rules of the gaming oversight authority, the pari-mutuel commission or the sweepstakes commission.

(c) Any justification or excuse for such conduct.

(d) The prior history of the person involved.

(e) The corrective action taken by the person to prevent future misconduct of a like nature from occurring.

(f) In the case of a monetary penalty, the amount of the penalty in relation to the severity of the misconduct and the financial means of the person.

(g) Notwithstanding the foregoing, in the event that a person receives 3 civil penalties each in the amount of $20,000 during the term of such person's license, the gaming oversight authority shall either revoke the license for the balance of the term of the license or suspend such license for a period of 60 days, as determined by the gaming oversight authority.

284-A:19 Declaration of Limited Exemption from Operation of Provisions of 15 U.S.C. section 1172. Pursuant to section 2 of an act of Congress of the United States entitled "An act to prohibit transportation of gambling devices in interstate and foreign commerce," approved January 2, 1951, being Chapter 1194, 64 Stat. 1134, and also designated as 15 U.S.C. sections 1171-1177, the state of New Hampshire, acting by and through the duly elected and qualified members of its legislature, does hereby, in accordance with and in compliance with the provisions of that section 2 of that act of Congress, declare and proclaim that section 2 of that act of Congress shall not apply to any gambling device in this state where the transportation of such a device is specifically authorized by and done in compliance with the provisions of this chapter and any rules adopted pursuant to it, and that any such gambling device transported in compliance with state law and rules shall be exempt from the provisions of that act of Congress.

284-A:20 Legal Shipment of Gaming Devices into New Hampshire. All shipments into this state of gaming devices, the registering, recording and labeling of which has been duly had by the manufacturer or dealer in accordance with sections 3 and 4 of an act of Congress of the United States entitled "An act to prohibit transportation of gambling devices in interstate and foreign commerce," approved January 2, 1951, being chapter 1194, 64 Stat. 1134, and also designated as 15 U.S.C. sections 1171-1172, shall be deemed legal shipments into this state.

284-A:21 Effect on Other Laws. This chapter shall take precedence over any other law, rule, ordinance or regulation of the state or its political subdivisions to the contrary.

56 New Sections; Department of Safety Gaming Enforcement Division Established. Amend RSA 21-P by inserting after section 11 the following new sections:

21-P:11-a Department of Safety Gaming Enforcement Division.

I. There is established within the department a division of gaming enforcement under the supervision of the commissioner of safety. The division shall be authorized to:

(a) Investigate violations of RSA 284 or RSA 284-A and the rules adopted under the provisions of RSA 284 or RSA 284-A and initiate proceedings before the gaming oversight authority for such violations.

(b) Report the results of any investigation conducted to the pari-mutuel commission, the sweepstakes commission or the gaming oversight authority, as appropriate.

(c) Participate in any hearing conducted by the pari-mutuel commission or the sweepstakes commission.

II. The commissioner of safety shall organize the division into such units as the commissioner deems necessary. The commissioner of safety may employ such personnel as the commissioner deems necessary to fulfill the responsibilities of the division.

21-P:11-b Enforcement Expenditures. Notwithstanding any other provisions of law, the governor and council with the prior approval of the fiscal committee of the general court, upon request from the commissioner of safety may authorize the transfer of general funds to the department of safety to implement and enforce this chapter.

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

284:16-c License Restricted.

I. Notwithstanding any other provision of law, the pari-mutuel commission shall not issue a license to conduct live thoroughbred horse racing or live harness horse racing pursuant to RSA 284:16 to any applicant if the place where such races or race meets are to be held is within a radius of 40 miles of the place where live thoroughbred horse races or race meets have already been licensed pursuant to RSA 284:16; provided, however, that the pari-mutuel commission may issue a license to conduct live harness racing to the holder of a license to conduct live thoroughbred racing if the live harness racing is conducted at the same place where the live thoroughbred racing is being conducted.

II. Notwithstanding any other provision of law, the pari-mutuel commission shall not issue a license to conduct live dog racing pursuant to RSA 284:16-a to any applicant if the place where the races or race meets are to be held is within a radius of 40 miles of the place where such races or race meets have already been licensed pursuant to RSA 284:16-a

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

284:17-c Restriction on Gambling. Except as provided in the introductory paragraph of RSA 284:22, RSA 284:22-a, and RSA 284-A, no licensee who holds running horse races shall at the same facility hold any other kinds of races or permit any other type of gambling except harness horse races and activities licensed by the gaming oversight authority, pari-mutuel commission, or the sweepstakes commission.

59 New Subparagraphs; Grand Hotel Licensee; On-Sale Special License. Amend RSA 178:20, V by inserting after subparagraph (u) the following new subparagraphs:

(v) Grand Hotel. The commission may issue a special license to any person holding an operator’s license with respect to a grand hotel licensee location under the provisions of RSA 284-A provided the grand hotel has an existing liquor license. Such special license shall allow the sale of liquor, wine and beverages in a dining room, function room, gaming room, lounge or any other area designated by the commission, without regard to whether meals are served therein, but only during the time gaming is being conducted under RSA 284-A.

(w) Pari-Mutuel Licensee or Operator Licensee. The commission may issue a special license to a person holding a pari-mutuel license or an operator’s license at a pari-mutuel licensee location under the provisions of RSA 284-A provided the pari-mutuel licensee location has an existing liquor license. Such special license shall allow the sale of liquor, wine, and beverages within the pari-mutuel licensee location, including dining room, function room, gaming room, lounge, or any other area designated by the commission, without regard to whether meals are served therein, but only during the time gaming is being conducted under RSA 284-A.

60 New Subparagraph; Travel and Tourism Joint Promotional Advertising Fund Created. Amend RSA 6:12, I by inserting after subparagraph (www) the following new subparagraph:

(xxx) Moneys received under RSA 284-A:12, II(d), which shall be credited to the travel and tourism joint promotional advertising fund established in 284-A:12, II(d).

61 New Subparagraph; Authorized Electronic Games of Chance Machines Not Prohibited. Amend RSA 647:2, V by inserting after subparagraph (c) the following new subparagraph:

(d) Electronic games of chance machines authorized pursuant to RSA 284-A.

62 Position Established; Appropriations.

I. To carry out the financial and educational reporting requirements of this act, there are hereby established within the department of education 6 full-time permanent positions as follows:

(a) One systems development specialist IV, labor grade 25.

(b) One audit administrator, unclassified group L.

(c) Three auditors, labor grade 23.

(d) One administrative assistant, labor grade 15.

II. The sum of $600,000 is hereby appropriated to the department of education for the biennium ending June 30, 2001, to fund the positions created in paragraph I, including salary, benefits, rent, supplies, and travel. The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated.

III. To carry out the administrative requirements of this act, there is hereby established within the department of revenue administration 2 full-time permanent positions of systems development specialist IV, labor grade 25, and a systems development specialist III, labor grade 22.

IV. The sum of $2,700,000 for the biennium ending June 30, 2001, is hereby appropriated to the department of revenue administration to fund the costs necessary to implement this act. The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated.

V. The sum of $100,000 for the biennium ending June 30, 2001, is hereby appropriated to the department of education to fund the costs necessary to upgrade school districts' computer systems to carry out the reporting responsibilities of this act. The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated.

63 Severability. If any provision of this act or the application thereof to any person or circumstance is deemed invalid, the invalidity does not affect the other provisions or applications of the act which can be given effect without the invalid provisions or applications and to this end the provisions of this act are severable.

64 Effective Date.

I. Sections 45-46 of this act shall take effect upon its passage, and shall apply to returns and taxes and reports due on account of taxable periods beginning on or after January 1, 1999.

II. Sections 47-52 and 54-61 of this act shall take effect July 1, 1999.

III. Section 35 of this act shall take effect July 1, 1999 at 12:01 a.m.

IV. The remainder of this act shall take effect upon its passage.

1999-0681s

AMENDED ANALYSIS

I. This bill:

(a) Increases the rate of the tobacco tax and dedicates $3,000,000 of annual tobacco tax gross revenues to a tobacco use prevention and cessation fund.

(b) Establishes a uniform education property tax to provide funding for an adequate education.

(c) Increases the rate of the business profits tax and the business enterprise tax.

(d) Adds a tax on rental of motor vehicles and a tax on admission charges and dues to the meals and rooms tax.

(e) Designates $20,000,000 annually of tobacco settlement funds received by the state for education funding.

(f) Makes appropriations to the department of education and the department of revenue administration for the purposes of the bill.

II. This bill:

(a) Establishes an educational adequacy and education financing reform commission.

(b) Establishes a system for calculating and disbursing state grants for educational adequacy.

(c) Appropriates funds to the commission for the purposes of this bill.

(d) Provides for certain catastrophic special education payments.

III. This bill:

(a) Authorizes electronic games of chance at racetracks, grand hotels and resort hotels upon certain conditions and sets forth criteria for establishing and conducting such games of chance.

(b) Establishes requirements and guidelines for the distribution of net machine income.

(c) Establishes a gaming oversight authority and its authority and duties.

(d) Establishes a division of gaming enforcement within the department of safety.

(e) Establishes gaming areas.

(f) Establishes fee amounts for license applicants.

AMENDED ANALYSIS

(g) Authorizes the issuance of special liquor licenses to electronic games of chance locations within grand hotels and pari-mutuel locations that have liquor licenses.

(h) Creates a special fund to be used by the office of travel and tourism for the promotion of travel and tourism in the state.

(i) Establishes live dog racing and horse racing purse funds administered by the pari-mutuel commission.

Senator Johnson offered a floor amendment.

1999-0695s

09/01

Floor Amendment to HB 112-FN-A

mend RSA 284-A:8 as inserted by section 55 of the bill by deleting paragraph IX and renumbering the original paragraphs X and XI to read as IX and X, respectively.

Senator Johnson offered a floor amendment.

1999-0690s

09/01

Floor Amendment to HB 112-FN-A

Amend RSA 78-A:3, XX as inserted by section 48 of the bill by replacing it with the following:

XX. "Admission charge" means the amount paid for the right or privilege to have access to a place or location where amusement, entertainment or recreation is provided, exclusive of any charges for instruction. Places of amusement, entertainment or recreation include, but are not limited to, theaters, motion picture shows, auditoriums where lectures and concerts are given, amusement parks, race tracks, zoos, dance halls, ball parks, golf courses, tennis courts, gymnasiums, health and fitness clubs, skating rinks, auto shows, boat shows, camping shows, home shows, dog shows and antique shows. Places of amusement, entertainment or recreation shall not include ski areas.

The House of Representatives concurs with the Senate in its amendment to the following entitled House Bill sent down from the Senate:

HB 734-FN-L, relative to state guarantees of tax anticipation notes issued by municipalities; relative to teacher non-renewals for the 1999-2000 school year; and relative to the transfer of tax liens for the 1999 calendar year only.

Senator Cohen moved that the Senate now adjourn from the early session, that the business of the late session be in order and that the bills ordered to third reading be read a third time by this resolution and all titles be the same as adopted and that they be passed at the present time and that when we adjourn, we adjourn until Thursday, April 8, 1999 at 10:00 a.m.

SB 18, relative to the rulemaking authority of the state board of education regarding certain educational personnel.

SB 22, relative to the pilot program relative to the administration of medication in residential care facilities.

SB 25, expanding the waiver of administration under the law regarding decedents' estates.

SB 27, relative to assessment fee schedules for trust companies and banks.2002

SB 28, relative to food production and distribution and food service licensure.

SB 53-FN, relative to licensure of physicians providing teleradiology services in this state.

SB 56, amending the law relative to who may adopt.

SB 77, relative to authorized regional enrollment area schools.

SB 93, relative to self-service storage facility liens.

HB 112-FN-A, increasing the tobacco tax and imposing the tax on all types of tobacco products.

SB 116, eliminating straight ticket voting.

SB 121, requiring reports to the department of justice following certain DWI arrests and refusals to take alcohol concentration tests.

SB 137-FN, relative to use of social security numbers in child support enforcement and in the issuance of driver's licenses.

SB 138, relative to joint tenancy with rights of survivorship.

SB 146, granting district courts exclusive jurisdiction over actions involving certain real estate purchase deposits held in escrow accounts.

SB 152-L, relative to the procedures for establishing a charter school.

SB 204, establishing the New Hampshire excellence in higher education endowment trust fund.

HB 249, relative to the membership of the rivers management advisory committee.

HB 734, relative to state guarantees of tax anticipation issued by municipalities; and relative to teacher non-renewals for the 1999-2000 school year.

Senator Johnson moved that the business of the day being completed that the Senate now adjourn until Thursday, April 8, 1999 at 10:00 a.m.