MD
Maryland House Bill HB1159

Maryland 2024 Regular Session

Maryland House Bill HB1159 Compare Versions

Only one version of the bill is available at this time.
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33 EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
44 [Brackets] indicate matter deleted from existing law.
55 *hb1159*
66
77 HOUSE BILL 1159
88 C7 4lr2631
99
1010 By: Delegate Ebersole
1111 Introduced and read first time: February 7, 2024
1212 Assigned to: Ways and Means
1313
1414 A BILL ENTITLED
1515
1616 AN ACT concerning 1
1717
1818 State Lottery – Instant Ticket Lottery Machines – Veterans’ and Fraternal 2
1919 Organizations 3
2020
2121 FOR the purpose of authorizing the Director of the State Lottery and Gaming Control 4
2222 Agency to issue certain fraternal organizations a license for not more than a certain 5
2323 number of instant ticket lottery machines; altering the distribution of proceeds from 6
2424 certain instant ticket lottery machine sales by veterans’ organizations; providing for 7
2525 the distribution of proceeds from certain instant ticket lottery machine sales by 8
2626 fraternal organizations; authorizing, instead of requiring, the Director to consider 9
2727 certain information before issuing certain licenses; repealing a requirement that 10
2828 certain veterans’ organizations purchase or lease certain instant ticket lottery 11
2929 machines; prohibiting certain fraternal organizations from operating an instant 12
3030 ticket lottery machine in certain locations; and generally relating to the operation of 13
3131 instant ticket lottery machines in the State. 14
3232
3333 BY repealing and reenacting, with amendments, 15
3434 Article – State Government 16
3535 Section 9–112 17
3636 Annotated Code of Maryland 18
3737 (2021 Replacement Volume and 2023 Supplement) 19
3838
3939 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20
4040 That the Laws of Maryland read as follows: 21
4141
4242 Article – State Government 22
4343
4444 9–112. 23
4545
4646 (a) (1) In this section[, “veterans’] THE FOLLOWING WORDS HAVE THE 24
4747 MEANINGS INDICATED . 25 2 HOUSE BILL 1159
4848
4949
5050
5151 (2) “ACTIVE MEMBERS ” MEANS INDIVIDUALS WH O ARE RECOGNIZED 1
5252 BY A FRATERNAL ORGANIZATI ON AS DUES –PAYING MEMBERS OR LIFETIME 2
5353 MEMBERS. 3
5454
5555 (3) (I) “FRATERNAL ORGANIZATIO N” MEANS A NONPROFIT 4
5656 ORGANIZATION THAT : 5
5757
5858 1. A. IS TAX EXEMPT AND OR GANIZED AS A 6
5959 FRATERNAL OR SORORAL ORGANIZATION UNDER § 501(C)(7) OF THE INTERNAL 7
6060 REVENUE CODE; 8
6161
6262 B. OWNS OR LEASES A PRO PERTY; AND 9
6363
6464 C. HAS A BONA FIDE M EMBERSHIP OF AT LEAS T 300 10
6565 ACTIVE MEMBERS OR HA S BEEN LOCATED IN A CO UNTY IN WHICH SUBSECTION (D) 11
6666 OF THIS SECTION APPLIES FOR AT LEAST 5 YEARS BEFORE THE ORG ANIZATION 12
6767 APPLIES FOR A LICENS E UNDER SUBSECTION (D) OF THIS SECTION; OR 13
6868
6969 2. IS INDEPENDENT AND THE MEMBERSHIP OF WHICH 14
7070 COMPRISES SOLELY GRADUATE MEMB ERS OF A NATIONWIDE FRATERNITY OR 15
7171 SORORITY THAT IS TAX EXEMPT UNDER § 501(C)(7) OF THE INTERNAL REVENUE 16
7272 CODE. 17
7373
7474 (II) “FRATERNAL ORGANIZATIO N” DOES NOT INCLUDE : 18
7575
7676 1. ANY COLLEGE OR HIGH SCHOOL FRATERNITY OR 19
7777 SORORITY; OR 20
7878
7979 2. ANY OTHER FRATERNITY OR SORORI TY THE 21
8080 MEMBERSHIP OF WHICH IS RESTRICTED IN WHO LE OR IN PART TO STU DENTS OR 22
8181 GRADUATES OF AN EDUC ATIONAL INSTITUTION OR A PROFESSIONAL SC HOOL. 23
8282
8383 (4) “VETERANS’ organization” means an organization that is tax exempt 24
8484 and organized as a veterans’ organization under § 501(c)(19) or § 501(c)(4) of the Internal 25
8585 Revenue Code. 26
8686
8787 (b) Except as provided in subsection (d) of this section, in accordance with the 27
8888 regulations of the Agency and this subtitle, the Director shall issue licenses to the persons 28
8989 and governmental units that will best serve the public convenience and promote the sale of 29
9090 State lottery tickets or shares. 30
9191
9292 (c) Before issuing a license to an applicant, the Director [shall] MAY consider 31
9393 such factors as: 32 HOUSE BILL 1159 3
9494
9595
9696
9797 (1) the financial responsibility and security of the applicant and the 1
9898 business or activity of the applicant; 2
9999
100100 (2) the accessibility of the place of business or activity to the public; 3
101101
102102 (3) the sufficiency of existing licenses to serve the public convenience; and 4
103103
104104 (4) the volume of expected sales. 5
105105
106106 (d) (1) This subsection does not apply in: 6
107107
108108 (i) Caroline County; 7
109109
110110 (ii) Cecil County; 8
111111
112112 (iii) Dorchester County; 9
113113
114114 (iv) Kent County; 10
115115
116116 (v) Queen Anne’s County; 11
117117
118118 (vi) Somerset County; 12
119119
120120 (vii) Talbot County; 13
121121
122122 (viii) Wicomico County; and 14
123123
124124 (ix) Worcester County. 15
125125
126126 (2) (i) Subject to subparagraph (ii) of this paragraph, the Director may 16
127127 issue a license under this subtitle for not more than five instant ticket lottery machines to 17
128128 an applicant that is a veterans’ organization OR FRATERNAL ORGANIZ ATION. 18
129129
130130 (ii) A veterans’ organization OR FRATERNAL ORGANIZ ATION that 19
131131 is issued a license under this subsection shall locate and operate its instant ticket lottery 20
132132 machines at its principal meeting hall in the county in which the veterans’ organization OR 21
133133 FRATERNAL ORGANIZATI ON is located. 22
134134
135135 (3) (I) After deduction of any [commission and] validation prize payout 23
136136 as provided under § 9–117 of this subtitle, a veterans’ organization issued a license under 24
137137 this subsection shall credit the remaining receipts from the sale of tickets from instant 25
138138 ticket lottery machines to the State Lottery Fund established under § 9–118 of this subtitle. 26
139139
140140 (II) ON A PROPERLY APPROVED TR ANSMITTAL, THE AGENCY 27
141141 SHALL PAY THE FOLLOW ING AMOUNTS FROM THE NET PROCEEDS OF SALE S OF 28 4 HOUSE BILL 1159
142142
143143
144144 TICKETS FROM INSTANT TICKET LOTTERY MACHI NES OPERATED BY A VE TERANS’ 1
145145 ORGANIZATION : 2
146146
147147 1. 50% TO VETERANS’ ORGANIZATIONS ; 3
148148
149149 2. TO THE AGENCY, AN AMOUNT NECESSARY T O PAY FOR 4
150150 THE PURCHASE OR LEAS E OF THE INSTANT TIC KET LOTTERY MACHINES AND 5
151151 AGENCY ADMINISTRATION FEES FOR THE PROGRAM ; AND 6
152152
153153 3. ANY REMAINING AMOUNT TO THE EDUCATION TRUST 7
154154 FUND ESTABLISHED UNDE R § 9–1A–30 OF THIS TITLE. 8
155155
156156 (III) AFTER DEDUCTION OF A VALIDATION PRIZE PAY OUT, A 9
157157 FRATERNAL ORGANIZATI ON ISSUED A LICENSE UNDER THIS SUBSECTIO N SHALL 10
158158 REMIT THE PROCEEDS F ROM THE SALE OF TICK ETS FROM INSTANT TIC KET LOTTERY 11
159159 MACHINES TO THE AGENCY TO BE DISTRIBU TED AS PROVIDED IN S UBPARAGRAPH 12
160160 (IV) OF THIS PARAGRAPH . 13
161161
162162 (IV) ON A PROPERLY APPROVE D TRANSMITTAL , THE AGENCY 14
163163 SHALL PAY THE FOLLOW ING AMOUNTS FROM THE NET PROCEEDS OF SALE S OF 15
164164 TICKETS FROM INSTANT TICKET LOTTERY MACHINES OPE RATED BY A FRATERNAL 16
165165 ORGANIZATION : 17
166166
167167 1. 20% TO THE HOMELESSNESS SOLUTIONS PROGRAM 18
168168 IN THE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT , TO BE USED, 19
169169 IN CONSULTATION WITH THE DEPARTMENT OF VETERANS AFFAIRS, TO ASSIST 20
170170 VETERANS AND FAMILIE S OF VETERANS, WITH PRIORITY GIVEN TO: 21
171171
172172 A. WOMEN VETERANS WHO A RE HOMELES S OR AT RISK 22
173173 OF HOMELESSNESS ; 23
174174
175175 B. SINGLE–PARENT VETERAN FAMIL IES; AND 24
176176
177177 C. VETERANS WHO ARE VIC TIMS OF DOMESTIC 25
178178 VIOLENCE; AND 26
179179
180180 2. FROM THE REMAINING P ROCEEDS OF SALES OF 27
181181 TICKETS FROM INSTANT TICKET LOTTERY MACHI NES OPERATED BY A FR ATERNAL 28
182182 ORGANIZATION: 29
183183
184184 A. 25% TO THE FRATERNAL ORG ANIZATION TO BE USED 30
185185 FOR UNDERGRADUATE OR GRADUATE SCHOOL SCHO LARSHIPS; 31
186186 HOUSE BILL 1159 5
187187
188188
189189 B. TO THE AGENCY, AN AMOUNT NECESSARY TO PAY FOR 1
190190 THE PURCHASE OR LEAS E OF THE INSTANT TIC KET LOTTERY MACHINES AND 2
191191 AGENCY ADMINISTRATION FEES FOR THE PROGRAM ; AND 3
192192
193193 C. ANY REMAINING AMOUNT TO THE EDUCATION TRUST 4
194194 FUND ESTABLISHED UNDE R § 9–1A–30 OF THIS TITLE. 5
195195
196196 (4) [(i) Subject to subparagraph (ii) of this paragraph, a veterans’ 6
197197 organization issued a license under this subsection shall purchase or lease the instant 7
198198 ticket lottery machines to be used by the veterans’ organization. 8
199199
200200 (ii)] An organization may not use receipts from the sale of tickets 9
201201 from instant ticket lottery machines that would otherwise be [credited to the State Lottery 10
202202 Fund] DISTRIBUTED AS REQUI RED UNDER PARAGRAPH (3) OF THIS SUBSECTION for 11
203203 the costs of purchasing or leasing instant ticket lottery machines. 12
204204
205205 (5) (I) The Director may adopt regulations to implement the provisions 13
206206 of this subsection that include restricting the location of instant ticket lottery machines in 14
207207 areas of a veterans’ organization’s OR A FRATERNAL ORGAN IZATION’S public meeting 15
208208 hall that is accessible to the public. 16
209209
210210 (II) A FRATERNAL ORGANIZATI ON MAY NOT LOCATE OR 17
211211 OPERATE ITS INSTANT TICKET LOTTERY MACHI NES IN A MEETING HAL L THAT IS: 18
212212
213213 1. LOCATED ON OR AFFILIATED WITH THE CAMPUS OF 19
214214 AN INSTITUTION OF HI GHER EDUCATION ; OR 20
215215
216216 2. LOCATED IN A BUILDIN G WHERE STUDENTS OF AN 21
217217 INSTITUTION OF HIGHE R EDUCATION RESIDE . 22
218218
219219 (6) The Agency shall ensure that the element of chance in the conduct of 23
220220 the gaming through the instant ticket lottery machines established under this subsection 24
221221 is consistent with the holding in the case of Chesapeake Amusements Inc. v. Riddle, 363 25
222222 Md. 16 (2001), in that the element of chance must be wholly within the pre–printed instant 26
223223 lottery ticket, and that player enhancements in an instant ticket lottery machine may not 27
224224 affect the element of chance being wholly within the pre–printed instant lottery ticket. 28
225225
226226 (e) The Director may not issue a license to: 29
227227
228228 (1) a person or governmental unit to engage in business primarily as a 30
229229 licensed agent; or 31
230230
231231 (2) an individual who is under the age of 21 years. 32
232232
233233 (f) The Commission may hear and decide an appeal of a denial of a license. 33 6 HOUSE BILL 1159
234234
235235
236236
237237 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 1
238238 1, 2024. 2