MD
Maryland Senate Bill SB1013

Maryland 2024 Regular Session

Maryland Senate Bill SB1013 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 EXISTING LAW.
44 [Brackets] indicate matter deleted from existing law.
55 *sb1013*
66
77 SENATE BILL 1013
88 C7 4lr2189
99
1010 By: Senator Charles
1111 Introduced and read first time: February 2, 2024
1212 Assigned to: Budget and Taxation
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; and generally relating to the operation of instant ticket lottery machines 12
3030 in the State. 13
3131
3232 BY repealing and reenacting, with amendments, 14
3333 Article – State Government 15
3434 Section 9–112 16
3535 Annotated Code of Maryland 17
3636 (2021 Replacement Volume and 2023 Supplement) 18
3737
3838 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 19
3939 That the Laws of Maryland read as follows: 20
4040
4141 Article – State Government 21
4242
4343 9–112. 22
4444
4545 (a) (1) In this section[, “veterans’] THE FOLLOWING WORDS HAVE THE 23
4646 MEANINGS INDICATED . 24
4747 2 SENATE BILL 1013
4848
4949
5050 (2) “ACTIVE MEMBERS ” MEANS INDIVIDUALS WH O ARE RECOGNIZED 1
5151 BY A FRATERNAL ORGANIZATION AS DUES–PAYING MEMBERS OR LIFETIME 2
5252 MEMBERS. 3
5353
5454 (3) (I) “FRATERNAL ORGANIZATIO N” MEANS A NONPROFIT 4
5555 ORGANIZATION THAT : 5
5656
5757 1. A. IS TAX EXEMPT AND ORGAN IZED AS A 6
5858 FRATERNAL OR SORORAL ORGANIZATION UNDER § 501(C)(7) OF THE INTERNAL 7
5959 REVENUE CODE; 8
6060
6161 B. OWNS OR LEASES PROPE RTY; AND 9
6262
6363 C. HAS A BONA FIDE MEMBERSH IP OF AT LEAST 300 10
6464 ACTIVE MEMBERS OR HA S BEEN LOCATED IN A CO UNTY IN WHICH SUBSECTION (D) 11
6565 OF THIS SECTION APPLIES FOR AT LEAST 5 YEARS BEFORE THE ORG ANIZATION 12
6666 APPLIES FOR A LICENS E UNDER SUBSECTION (D) OF THIS SECTION; OR 13
6767
6868 2. IS INDEPENDENT AND THE MEMBERSHIP OF WH ICH IS 14
6969 COMPOSED SOLELY OF GRADUATE M EMBERS OF A NATIONWI DE FRATERNITY OR 15
7070 SORORITY THAT IS TAX EXEMPT UNDER § 501(C)(7) OF THE INTERNAL REVENUE 16
7171 CODE. 17
7272
7373 (II) “FRATERNAL ORGANIZATIO N” DOES NOT INCLUDE : 18
7474
7575 1. ANY COLLEGE OR HIGH SCHOOL FRATERNITY OR 19
7676 SORORITY; OR 20
7777
7878 2. ANY OTHER FRATERNITY OR SORORI TY, THE 21
7979 MEMBERSHIP OF WHICH IS RESTRICTED IN WHO LE OR IN PART TO STU DENTS OR 22
8080 GRADUATES OF AN EDUC ATIONAL INSTITUTION OR A PROFESSIONAL SC HOOL. 23
8181
8282 (4) “VETERANS’ organization” means an organization that is tax exempt 24
8383 and organized as a veterans’ organization under § 501(c)(19) or § 501(c)(4) of the Internal 25
8484 Revenue Code. 26
8585
8686 (b) Except as provided in subsection (d) of this section, in accordance with the 27
8787 regulations of the Agency and this subtitle, the Director shall issue licenses to the persons 28
8888 and governmental units that will best serve the public convenience and promote the sale of 29
8989 State lottery tickets or shares. 30
9090
9191 (c) Before issuing a license to an applicant, the Director [shall] MAY consider 31
9292 such factors as: 32
9393 SENATE BILL 1013 3
9494
9595
9696 (1) the financial responsibility and security of the applicant and the 1
9797 business or activity of the applicant; 2
9898
9999 (2) the accessibility of the place of business or activity to the public; 3
100100
101101 (3) the sufficiency of existing licenses to serve the public convenience; and 4
102102
103103 (4) the volume of expected sales. 5
104104
105105 (d) (1) This subsection does not apply in: 6
106106
107107 (i) Caroline County; 7
108108
109109 (ii) Cecil County; 8
110110
111111 (iii) Dorchester County; 9
112112
113113 (iv) Kent County; 10
114114
115115 (v) Queen Anne’s County; 11
116116
117117 (vi) Somerset County; 12
118118
119119 (vii) Talbot County; 13
120120
121121 (viii) Wicomico County; and 14
122122
123123 (ix) Worcester County. 15
124124
125125 (2) (i) Subject to subparagraph (ii) of this paragraph, the Director may 16
126126 issue a license under this subtitle for not more than five instant ticket lottery machines to 17
127127 an applicant that is a veterans’ organization OR FRATER NAL ORGANIZATION . 18
128128
129129 (ii) A veterans’ organization OR FRATERNAL ORGANIZ ATION that 19
130130 is issued a license under this subsection shall locate and operate its instant ticket lottery 20
131131 machines at its principal meeting hall in the county in which the veterans’ organization OR 21
132132 FRATERNAL ORGANIZATI ON is located. 22
133133
134134 (3) (I) After deduction of any [commission and] validation prize payout 23
135135 as provided under § 9–117 of this subtitle, a veterans’ organization issued a license under 24
136136 this subsection shall credit the remaining receipts from the sale of tickets from instant 25
137137 ticket lottery machines to the State Lottery Fund established under § 9–118 of this subtitle. 26
138138
139139 (II) ON A PROPERLY APPROVE D TRANSMITTAL , THE AGENCY 27
140140 SHALL PAY THE FOLLOW ING AMOUNTS FROM THE NET PROCEEDS OF SALES OF 28
141141 TICKETS FROM INSTANT TICKET LOTTERY MACHI NES OPERATED BY A VETERANS’ 29 4 SENATE BILL 1013
142142
143143
144144 ORGANIZATION : 1
145145
146146 1. 50% TO THE VETERANS’ ORGANIZATION ; 2
147147
148148 2. TO THE AGENCY, AN AMOUNT NECESSARY TO PAY FOR 3
149149 THE PURCHASE OR LEAS E OF THE INSTANT TIC KET LOTTERY MACHINES AND 4
150150 AGENCY ADMINISTRATION FEES FOR THE PROGRAM; AND 5
151151
152152 3. ANY REMAINING AMOUNT TO THE EDUCATION TRUST 6
153153 FUND ESTABLISHED UNDE R § 9–1A–30 OF THIS TITLE. 7
154154
155155 (III) AFTER DEDUCTION OF A NY VALIDATION PRIZE PAY OUT, A 8
156156 FRATERNAL ORGANIZATI ON ISSUED A LICENSE UND ER THIS SUBSECTION S HALL 9
157157 REMIT THE PROCEEDS FROM THE SALE OF TIC KETS FROM INSTANT TI CKET LOTTERY 10
158158 MACHINES TO THE AGENCY TO BE DISTRIBU TED AS PROVIDED IN S UBPARAGRAPH 11
159159 (IV) OF THIS PARAGRAPH . 12
160160
161161 (IV) ON A PROPERLY APPROVE D TRANSMITTAL , THE AGENCY 13
162162 SHALL PAY THE FOLLOW ING AMOUNTS FROM THE NET PROCEEDS OF SALES OF 14
163163 TICKETS FROM INSTANT TICKET LOTTERY MACHINES OPE RATED BY A FRATERNAL 15
164164 ORGANIZATION : 16
165165
166166 1. 20% TO THE HOMELESSNESS SOLUTIONS PROGRAM 17
167167 IN THE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT , TO BE USED, 18
168168 IN CONSULTATION WITH THE DEPARTMENT OF VETERANS AFFAIRS, TO ASSIST 19
169169 VETERANS AND FAM ILIES OF VETERANS , WITH PRIORITY GIVEN TO: 20
170170
171171 A. WOMEN VETERANS WHO A RE HOMELESS OR AT RI SK 21
172172 OF HOMELESSNESS ; 22
173173
174174 B. SINGLE–PARENT VETERAN FAMIL IES; AND 23
175175
176176 C. VETERANS WHO ARE VIC TIMS OF DOMESTIC 24
177177 VIOLENCE; AND 25
178178
179179 2. FROM THE REMAINING P ROCEEDS OF SAL ES OF 26
180180 TICKETS FROM INSTANT TICKET LOTTERY MACHI NES OPERATED BY A FR ATERNAL 27
181181 ORGANIZATION : 28
182182
183183 A. 25% TO THE FRATERNAL ORG ANIZATION; 29
184184
185185 B. TO THE AGENCY, AN AMOUNT NECESSARY TO PAY FOR 30
186186 THE PURCHASE OR LEAS E OF THE INSTANT TIC KET LOTTERY MACHINES AND 31 SENATE BILL 1013 5
187187
188188
189189 AGENCY ADMINISTRATION FEE S FOR THE PROGRAM ; AND 1
190190
191191 C. ANY REMAINING AMOUNT TO THE EDUCATION TRUST 2
192192 FUND ESTABLISHED UNDE R § 9–1A–30 OF THIS TITLE. 3
193193
194194 (4) [(i) Subject to subparagraph (ii) of this paragraph, a veterans’ 4
195195 organization issued a license under this subsection shall purchase or lease the instant 5
196196 ticket lottery machines to be used by the veterans’ organization. 6
197197
198198 (ii)] An organization may not use receipts from the sale of tickets 7
199199 from instant ticket lottery machines that would otherwise be [credited to the State Lottery 8
200200 Fund] DISTRIBUTED AS REQUI RED UNDER PARAGRAPH (3) OF THIS SUBSECTION for 9
201201 the costs of purchasing or leasing instant ticket lottery machines. 10
202202
203203 (5) The Director may adopt regulations to implement the provisions of this 11
204204 subsection that include restricting the location of instant ticket lottery machines in areas 12
205205 of a veterans’ organization’s OR A FRATERNAL ORGANIZATI ON’S public meeting hall that 13
206206 is accessible to the public. 14
207207
208208 (6) The Agency shall ensure that the element of chance in the conduct of 15
209209 the gaming through the instant ticket lottery machines established under this subsection 16
210210 is consistent with the holding in the case of Chesapeake Amusements Inc. v. Riddle, 363 17
211211 Md. 16 (2001), in that the element of chance must be wholly within the pre–printed instant 18
212212 lottery ticket, and that player enhancements in an instant ticket lottery machine may not 19
213213 affect the element of chance being wholly within the pre–printed instant lottery ticket. 20
214214
215215 (e) The Director may not issue a license to: 21
216216
217217 (1) a person or governmental unit to engage in business primarily as a 22
218218 licensed agent; or 23
219219
220220 (2) an individual who is under the age of 21 years. 24
221221
222222 (f) The Commission may hear and decide an appeal of a denial of a license. 25
223223
224224 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 26
225225 1, 2024. 27
226226