Maryland 2025 Regular Session

Maryland House Bill HB328 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2	2
3	3		EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4		[Brackets] indicate matter deleted from existing law.
5	5		Underlining indicates amendments to bill.
6	6		Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7	7		amendment.
8		-	Italics indicate opposite chamber/conference committee amendments.
9	8		hb0328
10	9
11	10		HOUSE BILL 328
12		-	C7 (5lr1242)
13		-	ENROLLED BILL
14		-	— Ways and Means/Budget and Taxation —
15		-	Introduced by Delegate Ebersole Delegates Ebersole, Griffith, and Vogel
16		-
17		-	Read and Examined by Proofreaders:
18		-
19		-	_______________________________________________
20		-	Proofreader.
21		-	_______________________________________________
22		-	Proofreader.
23		-
24		-	Sealed with the Great Seal and presented to the Governor, for his approval this
25		-
26		-	_______ day of _______________ at ________________________ o’clock, ________M.
27		-
28		-	______________________________________________
29		-	Speaker.
	11	+	C7 5lr1242
	12	+	CF SB 541
	13	+	By: Delegate Ebersole Delegates Ebersole, Griffith, and Vogel
	14	+	Introduced and read first time: January 10, 2025
	15	+	Assigned to: Ways and Means
	16	+	Committee Report: Favorable with amendments
	17	+	House action: Adopted
	18	+	Read second time: March 4, 2025
30	19
31	20		CHAPTER ______
32	21
33	22		AN ACT concerning 1
34	23
35	24		State Lottery – Instant Ticket Lottery Machines – Veterans’ and Fraternal 2
36	25		Organizations 3
37	26
38	27		FOR the purpose of authorizing the Director of the State Lottery and Gaming Control 4
39	28		Agency to issue certain fraternal organizations a license for not more than a certain 5
40	29		number of instant ticket lottery machines; altering the distribution of proceeds from 6
41	30		certain instant ticket lottery machine sales by veterans’ organizations; providing for 7
42	31		the distribution of proceeds from certain instant ticket lottery machine sales by 8
43	32		fraternal organizations; authorizing, instead of requiring, the Director to consider 9
44	33		certain information before issuing certain licenses; repealing a requirement that 10
45	34		certain veterans’ organizations purchase or lease certain instant ticket lottery 11
46	35		machines; prohibiting certain fraternal organizations from operating an instant 12
47	36		ticket lottery machine in certain locations; altering certain requirements concerning 13
48	37		the conduct of gaming through instant ticket lottery machines; and generally 14
49		-	relating to the operation of instant ticket lottery machines in the State. 15 2 HOUSE BILL 328
	38	+	relating to the operation of instant ticket lottery machines in the State. 15
	39	+
	40	+	BY repealing and reenacting, with amendments, 16
	41	+	Article – State Government 17
	42	+	Section 9–112 18
	43	+	Annotated Code of Maryland 19
	44	+	(2021 Replacement Volume and 2024 Supplement) 20
	45	+
	46	+	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21
	47	+	That the Laws of Maryland read as follows: 22
	48	+	2 HOUSE BILL 328
	49	+
	50	+
	51	+	Article – State Government 1
	52	+
	53	+	9–112. 2
	54	+
	55	+	(a) (1) In this section[, “veterans’] THE FOLLOWING WORDS HAVE THE 3
	56	+	MEANINGS INDICATED . 4
	57	+
	58	+	(2) “ACTIVE MEMBERS ” MEANS INDIVIDUALS WH O ARE RECOGNIZED 5
	59	+	BY A FRATERNAL ORGAN IZATION AS DUES –PAYING MEMBERS OR LI FETIME 6
	60	+	MEMBERS. 7
	61	+
	62	+	(3) (I) “FRATERNAL ORGANIZATIO N” MEANS A NONPROFIT 8
	63	+	ORGANIZATION THAT : 9
	64	+
	65	+	1. A. IS TAX EXEMPT AND OR GANIZED AS A 10
	66	+	FRATERNAL OR SORORAL ORGANIZATION UNDER § 501(C)(7) OR § 501(C)(8) OF THE 11
	67	+	INTERNAL REVENUE CODE; 12
	68	+
	69	+	B. OWNS OR LEASES A PRO PERTY; AND 13
	70	+
	71	+	C. HAS A BONA FIDE MEMB ERSHIP OF AT LEAST 300 14
	72	+	ACTIVE MEMBERS OR HA S BEEN LOCATED IN A COUNTY IN WHICH SUBS ECTION (D) 15
	73	+	OF THIS SECTION APPL IES FOR AT LEAST 5 YEARS BEFORE THE ORG ANIZATION 16
	74	+	APPLIES FOR A LICENS E UNDER SUBSECTION (D) OF THIS SECTION; OR 17
	75	+
	76	+	2. IS INDEPENDENT AND T HE MEMBERSHIP OF WHI CH 18
	77	+	COMPRISES SOLELY GRA DUATE MEMBERS OF A N ATIONWIDE FRATERNITY OR 19
	78	+	SORORITY THAT IS TAX EXEMPT UNDER § 501(C)(7) OR § 501(C)(8) OF THE 20
	79	+	INTERNAL REVENUE CODE. 21
	80	+
	81	+	(II) “FRATERNAL ORGANIZATIO N” DOES NOT INCLUDE : 22
	82	+
	83	+	1. ANY COLLEGE OR HIGH SCHOOL FRATERNITY OR 23
	84	+	SORORITY; OR 24
	85	+
	86	+	2. ANY OTHER FRATERNITY OR SORORITY THE 25
	87	+	MEMBERSHIP OF WHICH IS RESTRICTED IN WHO LE OR IN PART TO STU DENTS OR 26
	88	+	GRADUATES OF AN EDUC ATIONAL INSTITUTION OR A PROFESSIONAL SC HOOL. 27
	89	+
	90	+	(4) “VETERANS’ organization” means an organization that is tax exempt 28
	91	+	and organized as a veterans’ organization under § 501(c)(19) or § 501(c)(4) of the Internal 29
	92	+	Revenue Code. 30
	93	+
	94	+	(b) Except as provided in subsection (d) of this section, in accordance with the 31
	95	+	regulations of the Agency and this subtitle, the Director shall issue licenses to the persons 32 HOUSE BILL 328 3
	96	+
	97	+
	98	+	and governmental units that will best serve the public convenience and promote the sale of 1
	99	+	State lottery tickets or shares. 2
	100	+
	101	+	(c) Before issuing a license to an applicant, the Director [shall] MAY consider 3
	102	+	such factors as: 4
	103	+
	104	+	(1) the financial responsibility and security of the applicant and the 5
	105	+	business or activity of the applicant; 6
	106	+
	107	+	(2) the accessibility of the place of business or activity to the public; 7
	108	+
	109	+	(3) the sufficiency of existing licenses to serve the public convenience; and 8
	110	+
	111	+	(4) the volume of expected sales. 9
	112	+
	113	+	(d) (1) This subsection does not apply in: 10
	114	+
	115	+	(i) Caroline County; 11
	116	+
	117	+	(ii) Cecil County; 12
	118	+
	119	+	(iii) Dorchester County; 13
	120	+
	121	+	(iv) Kent County; 14
	122	+
	123	+	(v) Queen Anne’s County; 15
	124	+
	125	+	(vi) Somerset County; 16
	126	+
	127	+	(vii) Talbot County; 17
	128	+
	129	+	(viii) Wicomico County; and 18
	130	+
	131	+	(ix) Worcester County. 19
	132	+
	133	+	(2) (i) Subject to subparagraph (ii) of this paragraph, the Director may 20
	134	+	issue a license under this subtitle for not more than five instant ticket lottery machines to 21
	135	+	an applicant that is a veterans’ organization OR FRATERNAL ORGANIZ ATION. 22
	136	+
	137	+	(ii) A veterans’ organization OR FRATERNAL ORGANIZ ATION that 23
	138	+	is issued a license under this subsection shall locate and operate its instant ticket lottery 24
	139	+	machines at its principal meeting hall in the county in which the veterans’ organization OR 25
	140	+	FRATERNAL ORGANIZATI ON is located. 26
	141	+	4 HOUSE BILL 328
	142	+
	143	+
	144	+	(III) AS A RETAILER UNDER T HE INSTANT TICKET LO TTERY 1
	145	+	MACHINE PROGRAM , A VETERANS’ ORGANIZATION OR FRATERNAL ORGANIZATI ON 2
	146	+	SHALL BE COMPENSATED BASED ON A PERCENTAG E OF PROCEEDS . 3
	147	+
	148	+	(3) (I) After deduction of any [commission and] validation prize payout 4
	149	+	as provided under § 9–117 of this subtitle, a veterans’ organization issued a license under 5
	150	+	this subsection shall RETAIN 50% OF THE NET PROCEEDS AND credit the remaining 6
	151	+	receipts NET PROCEEDS from the sale of tickets from instant ticket lottery machines to 7
	152	+	the State Lottery Fund established under § 9–118 of this subtitle. 8
	153	+
	154	+	(II) ON A PROPERLY APPROVE D TRANSMITTAL, THE AGENCY 9
	155	+	SHALL PAY THE FOLLOW ING AMOUNTS FROM THE NET PROCEEDS OF SALE S OF 10
	156	+	TICKETS FROM INSTANT TICKET LOTTERY MACHI NES OPERATED BY A VE TERANS’ 11
	157	+	ORGANIZATION : 12
	158	+
	159	+	1. 50% TO VETERANS ’ ORGANIZATIONS 5% TO THE 13
	160	+	MARYLAND VETERANS TRUST FUND ESTABL ISHED UNDER § 9–913 OF THIS TITLE; 14
	161	+
	162	+	2. TO THE AGENCY, AN AMOUNT NECESSARY TO PAY FOR 15
	163	+	THE PURCHASE OR LEAS E OF THE INSTANT TIC KET LOTTERY MACHINES AND 16
	164	+	AGENCY ADMINISTRATION FEES FOR THE PROGRAM ; AND 17
	165	+
	166	+	3. ANY REMAINING AMOUNT TO THE EDUCATION TRUST 18
	167	+	FUND ESTABLISHED UNDE R § 9–1A–30 OF THIS TITLE. 19
	168	+
	169	+	(III) AFTER DEDUCTION OF A VALIDATION PRIZE PAY OUT, A 20
	170	+	FRATERNAL ORGANIZATI ON ISSUED A LICENSE UNDER THIS SUBSECTIO N SHALL 21
	171	+	REMIT THE PROCEEDS F ROM THE SALE OF TICK ETS FROM INSTANT TIC KET LOTTERY 22
	172	+	MACHINES: 23
	173	+
	174	+	1. RETAIN 25% OF THE NET PROCEEDS FOR 24
	175	+	UNDERGRADUATE , GRADUATE, OR TRADE SCHOOL SCHO LARSHIPS OR CAPITAL 25
	176	+	IMPROVEMENTS , CAPITAL OUTLAYS , ACQUISITIONS, OR EXISTING COMMUNIT Y 26
	177	+	OUTREACH PROGRAMS AN D RESOURCES ; AND 27
	178	+
	179	+	2. REMIT THE REMAINDER TO THE AGENCY TO BE 28
	180	+	DISTRIBUTED AS PROVI DED IN SUBPARAGRAPH (IV) OF THIS PARAGRAPH . 29
	181	+
	182	+	(IV) ON A PROPERLY APPROVE D TRANSMITTAL , THE AGENCY 30
	183	+	SHALL PAY THE FOLLOW ING AMOUNTS FROM THE NET PROCEEDS OF SALE S OF 31
	184	+	TICKETS FROM INSTANT TICKET LOTTERY MACHI NES OPERATED BY A FR ATERNAL 32
	185	+	ORGANIZATION : 33
	186	+	HOUSE BILL 328 5
	187	+
	188	+
	189	+	1. 20% TO THE HOMELESSNESS SOLUTIONS PROGRAM 1
	190	+	IN THE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT , TO BE USED, 2
	191	+	IN CONSULTATION WITH THE DEPARTMENT OF VETERANS AND MILITARY 3
	192	+	FAMILIES, TO ASSIST VETERANS A ND FAMILIES OF VETER ANS, WITH PRIORITY 4
	193	+	GIVEN TO: 5
	194	+
	195	+	A. WOMEN VETERANS WHO A RE HOMELESS OR AT RI SK 6
	196	+	OF HOMELESSNESS ; 7
	197	+
	198	+	B. SINGLE–PARENT VETERAN FAMIL IES; AND 8
	199	+
	200	+	C. VETERANS WHO ARE VIC TIMS OF DOMESTIC 9
	201	+	VIOLENCE; AND 10
	202	+
	203	+	2. FROM THE REMAINING P ROCEEDS OF SALES OF 11
	204	+	TICKETS FROM INSTANT TICKET LOTTE RY MACHINES OPERATED BY A FRATERNAL 12
	205	+	ORGANIZATION : 13
	206	+
	207	+	A. 25% TO THE FRATERNAL ORG ANIZATION TO BE USED 14
	208	+	FOR UNDERGRADUATE , GRADUATE, OR TRADE SCHOOL SCHO LARSHIPS OR CAPITAL 15
	209	+	IMPROVEMENTS , CAPITAL OUTLAY , ACQUISITIONS, OR EXISTING COMMUNIT Y 16
	210	+	OUTREACH PROGRAMS AN D RESOURCES ; 17
	211	+
	212	+	2. 5% TO THE MARYLAND VETERANS TRUST FUND 18
	213	+	ESTABLISHED UNDER § 9–913 OF THIS TITLE; 19
	214	+
	215	+	B. 3. TO THE AGENCY, AN AMOUNT NECESSARY TO PAY FOR 20
	216	+	THE PURCHASE OR LEAS E OF THE INSTANT TIC KET LOTTERY MACHINES AND 21
	217	+	AGENCY ADMINISTRATION FEES FOR THE PROGRAM ; AND 22
	218	+
	219	+	C. 4. ANY REMAINING AMOUNT TO THE EDUCATION TRUST 23
	220	+	FUND ESTABLISHED UNDE R § 9–1A–30 OF THIS TITLE. 24
	221	+
	222	+	(4) [(i) Subject to subparagraph (ii) of this paragraph, a veterans’ 25
	223	+	organization issued a license under this subsection shall purchase or lease the instant 26
	224	+	ticket lottery machines to be used by the veterans’ organization. 27
	225	+
	226	+	(ii)] An organization may not use receipts NET PROCEEDS from the 28
	227	+	sale of tickets from instant ticket lottery machines that would otherwise be [credited to the 29
	228	+	State Lottery Fund] DISTRIBUTED AS REQUI RED UNDER PARAGRAPH (3) OF THIS 30
	229	+	SUBSECTION for the costs of purchasing or leasing instant ticket lottery machines. 31
	230	+
	231	+	(5) (I) The Director may adopt regulations to implement the provisions 32
	232	+	of this subsection that include restricting the location of instant ticket lottery machines in 33 6 HOUSE BILL 328
	233	+
	234	+
	235	+	areas of a veterans’ organization’s OR A FRATERNAL ORGAN IZATION’S public meeting 1
	236	+	hall that is accessible to the public. 2
	237	+
	238	+	(II) A FRATERNAL ORGANIZATI ON MAY NOT LOCATE OR 3
	239	+	OPERATE ITS INSTANT TICKET LOTTERY MACHI NES IN A MEETING HAL L THAT IS: 4
	240	+
	241	+	1. LOCATED ON OR AFFILI ATED WITH THE CAMPUS OF 5
	242	+	AN INSTITUTION OF HI GHER EDUCATION ; OR 6
	243	+
	244	+	2. LOCATED IN A BUILDIN G WHERE STUDENTS OF AN 7
	245	+	INSTITUTION OF HIGHE R EDUCATION RESIDE . 8
	246	+
	247	+	(6) The Agency shall ensure that the element of chance in the conduct of 9
	248	+	the gaming through the instant ticket lottery machines established under this subsection 10
	249	+	is consistent with the holding in the case of Chesapeake Amusements Inc. v. Riddle, 363 11
	250	+	Md. 16 (2001), in that the element of chance must be CONTAINED wholly within the 12
	251	+	pre–printed PREDETERMINED instant lottery ticket, and that player enhancements in an 13
	252	+	instant ticket lottery machine may not affect the element of chance being wholly within the 14
	253	+	pre–printed instant lottery ticket. 15
	254	+
	255	+	(e) The Director may not issue a license to: 16
	256	+
	257	+	(1) a person or governmental unit to engage in business primarily as a 17
	258	+	licensed agent; or 18
	259	+
	260	+	(2) an individual who is under the age of 21 years. 19
	261	+
	262	+	(f) The Commission may hear and decide an appeal of a denial of a license. 20
	263	+
	264	+	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 21
	265	+	1, 2025. 22
50	266
51	267
52	268
53		-	BY repealing and reenacting, with amendments, 1
54		-	Article – State Government 2
55		-	Section 9–112 3
56		-	Annotated Code of Maryland 4
57		-	(2021 Replacement Volume and 2024 Supplement) 5
58	269
59		-	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 6
60		-	That the Laws of Maryland read as follows: 7
61		-
62		-	Article – State Government 8
63		-
64		-	9–112. 9
65		-
66		-	(a) (1) In this section[, “veterans’] THE FOLLOWING WORDS HAVE THE 10
67		-	MEANINGS INDICATED . 11
68		-
69		-	(2) “ACTIVE MEMBERS ” MEANS INDIVIDUALS WH O ARE RECOGNIZED 12
70		-	BY A FRATERNAL ORGAN IZATION AS DUES –PAYING MEMBERS OR LI FETIME 13
71		-	MEMBERS. 14
72		-
73		-	(3) (I) “FRATERNAL ORGANIZATIO N” MEANS A NONPROFIT 15
74		-	ORGANIZATION THAT : 16
75		-
76		-	1. A. IS TAX EXEMPT AND OR GANIZED AS A 17
77		-	FRATERNAL OR SORORAL ORGANIZATION UNDER § 501(C)(7) OR § 501(C)(8) OF THE 18
78		-	INTERNAL REVENUE CODE; 19
79		-
80		-	B. OWNS OR LEASES A PRO PERTY; AND 20
81		-
82		-	C. HAS A BONA FIDE MEMBERSHIP OF AT LEAST 300 21
83		-	ACTIVE MEMBERS OR HA S BEEN LOCATED IN A COUNTY IN WHICH SUBS ECTION (D) 22
84		-	OF THIS SECTION APPL IES FOR AT LEAST 5 YEARS BEFORE THE ORG ANIZATION 23
85		-	APPLIES FOR A LICENS E UNDER SUBSECTION (D) OF THIS SECTION; OR 24
86		-
87		-	2. IS INDEPENDENT AND THE MEMBE RSHIP OF WHICH 25
88		-	COMPRISES SOLELY GRA DUATE MEMBERS OF A N ATIONWIDE FRATERNITY OR 26
89		-	SORORITY THAT IS TAX EXEMPT UNDER § 501(C)(7) OR § 501(C)(8) OF THE 27
90		-	INTERNAL REVENUE CODE. 28
91		-
92		-	(II) “FRATERNAL ORGANIZATIO N” DOES NOT INCLUDE : 29
93		-
94		-	1. ANY COLLEGE OR HIGH SCHOOL FRATERNITY OR 30
95		-	SORORITY; OR 31
96		-	HOUSE BILL 328 3
97		-
98		-
99		-	2. ANY OTHER FRATERNITY OR SORORITY THE 1
100		-	MEMBERSHIP OF WHICH IS RESTRICTED IN WHO LE OR IN PART TO STU DENTS OR 2
101		-	GRADUATES OF AN EDUC ATIONAL INSTITUTION OR A PROFESSIONAL SC HOOL. 3
102		-
103		-	(4) “VETERANS’ organization” means an organization that is tax exempt 4
104		-	and organized as a veterans’ organization under § 501(c)(19) or § 501(c)(4) of the Internal 5
105		-	Revenue Code. 6
106		-
107		-	(b) Except as provided in subsection (d) of this section, in accordance with the 7
108		-	regulations of the Agency and this subtitle, the Director shall issue licenses to the persons 8
109		-	and governmental units that will best serve the public convenience and promote the sale of 9
110		-	State lottery tickets or shares. 10
111		-
112		-	(c) Before issuing a license to an applicant, the Director [shall] MAY consider 11
113		-	such factors as: 12
114		-
115		-	(1) the financial responsibility and security of the applicant and the 13
116		-	business or activity of the applicant; 14
117		-
118		-	(2) the accessibility of the place of business or activity to the public; 15
119		-
120		-	(3) the sufficiency of existing licenses to serve the public convenience; and 16
121		-
122		-	(4) the volume of expected sales. 17
123		-
124		-	(d) (1) This subsection does not apply in: 18
125		-
126		-	(i) Caroline County; 19
127		-
128		-	(ii) Cecil County; 20
129		-
130		-	(iii) Dorchester County; 21
131		-
132		-	(iv) Kent County; 22
133		-
134		-	(v) Queen Anne’s County; 23
135		-
136		-	(vi) Somerset County; 24
137		-
138		-	(vii) Talbot County; 25
139		-
140		-	(viii) Wicomico County; and 26
141		-
142		-	(ix) Worcester County. 27
143		-	4 HOUSE BILL 328
144		-
145		-
146		-	(2) (i) Subject to subparagraph (ii) of this paragraph, the Director may 1
147		-	issue a license under this subtitle for: 2
148		-
149		-	1. not more than five instant ticket lottery machines to an 3
150		-	applicant that is a veterans’ organization OR FRATERNAL ORGANIZ ATION; AND 4
151		-
152		-	2. NOT MORE THAN THREE INSTANT TICKET LOTTE RY 5
153		-	MACHINES TO AN APPLI CANT THAT IS A FRATE RNAL ORGANIZATION . 6
154		-
155		-	(ii) A veterans’ organization OR FRATERNAL ORGANIZ ATION that 7
156		-	is issued a license under this subsection shall locate and operate its instant ticket lottery 8
157		-	machines at its principal meeting hall in the county in which the veterans’ organization OR 9
158		-	FRATERNAL ORGA NIZATION is located. 10
159		-
160		-	(III) AS A RETAILER UNDER T HE INSTANT TICKET LO TTERY 11
161		-	MACHINE PROGRAM , A VETERANS’ ORGANIZATION OR FRAT ERNAL ORGANIZATION 12
162		-	SHALL BE COMPENSATED BASED ON A PERCENTAG E OF PROCEEDS . 13
163		-
164		-	(3) (I) After deduction of any [commission and] validation prize payout 14
165		-	as provided under § 9–117 of this subtitle, a veterans’ organization issued a license under 15
166		-	this subsection shall RETAIN 50% OF THE NET PROCEEDS AND credit the remaining 16
167		-	receipts NET PROCEEDS from the sale of tickets from instant ticket lottery machines to 17
168		-	the State Lottery Fund established under § 9–118 of this subtitle. 18
169		-
170		-	(II) ON A PROPERLY APPROVE D TRANSMITTAL , THE AGENCY 19
171		-	SHALL PAY THE FOLLOW ING AMOUNTS FROM THE NET PROCEEDS OF SALE S OF 20
172		-	TICKETS FROM INSTANT TICKET LOTTERY MACHI NES OPERATED BY A VE TERANS’ 21
173		-	ORGANIZATION : 22
174		-
175		-	1. 50% TO VETERANS ’ ORGANIZATIONS 5% TO THE 23
176		-	MARYLAND VETERANS TRUST FUND ESTABLISHED UNDE R § 9–913 OF THIS TITLE; 24
177		-
178		-	2. TO THE AGENCY, AN AMOUNT NECESSARY TO PAY FOR 25
179		-	THE PURCHASE OR LEASE OF THE INSTANT TICKE T LOTTERY MACHINES A ND 26
180		-	AGENCY ADMINISTRATION FEES FOR THE PROGRAM ; AND 27
181		-
182		-	3. ANY REMAINING AMOUNT TO THE EDUCATION TRUST 28
183		-	FUND ESTABLISHED UNDE R § 9–1A–30 OF THIS TITLE. 29
184		-
185		-	(III) AFTER DEDUCTION OF A VALIDATION PR IZE PAYOUT, A 30
186		-	FRATERNAL ORGANIZATI ON ISSUED A LICENSE UNDER THIS SUBSECTIO N SHALL 31
187		-	REMIT THE PROCEEDS F ROM THE SALE OF TICK ETS FROM INSTANT TIC KET LOTTERY 32
188		-	MACHINES: 33 HOUSE BILL 328 5
189		-
190		-
191		-	1. RETAIN 25% OF THE NET PROCEEDS FOR 1
192		-	UNDERGRADUATE , GRADUATE, OR TRADE SCHOOL SCHOLARSHIPS OR CAPI TAL 2
193		-	IMPROVEMENTS , CAPITAL OUTLAYS , ACQUISITIONS, OR EXISTING COMMUNIT Y 3
194		-	OUTREACH PROGRAMS AN D RESOURCES ; AND 4
195		-
196		-	2. REMIT THE REMAINDER TO THE AGENCY TO BE 5
197		-	DISTRIBUTED AS PROVI DED IN SUBPARAGRAPH (IV) OF THIS PARAGRAPH . 6
198		-
199		-	(IV) ON A PROPERLY APPROVED TRAN SMITTAL, THE AGENCY 7
200		-	SHALL PAY THE FOLLOW ING AMOUNTS FROM THE NET PROCEEDS OF SALE S OF 8
201		-	TICKETS FROM INSTANT TICKET LOTTERY MACHI NES OPERATED BY A FR ATERNAL 9
202		-	ORGANIZATION : 10
203		-
204		-	1. 20% TO THE HOMELESSNESS SOLUTIONS PROGRAM 11
205		-	IN THE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT , TO BE USED, 12
206		-	IN CONSULTATION WITH THE DEPARTMENT OF VETERANS AND MILITARY 13
207		-	FAMILIES, TO ASSIST VETERANS A ND FAMILIES OF VETER ANS, WITH PRIORITY 14
208		-	GIVEN TO: 15
209		-
210		-	A. WOMEN VETERANS WHO A RE HOMELESS OR AT RI SK 16
211		-	OF HOMELESSNESS ; 17
212		-
213		-	B. SINGLE–PARENT VETERAN FAMIL IES; AND 18
214		-
215		-	C. VETERANS WHO ARE VIC TIMS OF DOMESTIC 19
216		-	VIOLENCE; AND 20
217		-
218		-	2. FROM THE REMAINING P ROCEEDS OF SALES OF 21
219		-	TICKETS FROM INSTANT TICKET LOTTERY MACHI NES OPERATED BY A FR ATERNAL 22
220		-	ORGANIZATION : 23
221		-
222		-	A. 25% TO THE FRATERNAL ORG ANIZATION TO BE USED 24
223		-	FOR UNDERGRADUATE , GRADUATE, OR TRADE SCHOOL SCHO LARSHIPS OR CAPITAL 25
224		-	IMPROVEMENTS , CAPITAL OUTLAY , ACQUISITIONS, OR EXISTING COMMUNIT Y 26
225		-	OUTREACH PROGRAMS AN D RESOURCES ; 27
226		-
227		-	2. 5% TO THE MARYLAND VETERANS TRUST FUND 28
228		-	ESTABLISHED UNDER § 9–913 OF THIS TITLE; 29
229		-
230		-	B. 3. TO THE AGENCY, AN AMOUNT NECESSARY TO PAY FOR 30
231		-	THE PURCHASE OR LEAS E OF THE INSTANT TIC KET LOTTERY MACHINES AND 31
232		-	AGENCY ADMINISTRATION FEES FOR THE PROGRAM ; AND 32
233		-	6 HOUSE BILL 328
234		-
235		-
236		-	C. 4. ANY REMAINING AMOUNT TO THE EDUCATION TRUST 1
237		-	FUND ESTABLISHED UNDE R § 9–1A–30 OF THIS TITLE. 2
238		-
239		-	(4) [(i) Subject to subparagraph (ii) of this paragraph, a veterans’ 3
240		-	organization issued a license under this subsection shall purchase or lease the instant 4
241		-	ticket lottery machines to be used by the veterans’ organization. 5
242		-
243		-	(ii)] An organization may not use receipts NET PROCEEDS from the 6
244		-	sale of tickets from instant ticket lottery machines that would otherwise be [credited to the 7
245		-	State Lottery Fund] DISTRIBUTED AS REQUI RED UNDER PARAGRAPH (3) OF THIS 8
246		-	SUBSECTION for the costs of purchasing or leasing instant ticket lottery machines. 9
247		-
248		-	(5) (I) The Director may adopt regulations to implement the provisions 10
249		-	of this subsection that include restricting the location of instant ticket lottery machines in 11
250		-	areas of a veterans’ organization’s OR A FRATERNAL ORGAN IZATION’S public meeting 12
251		-	hall that is accessible to the public. 13
252		-
253		-	(II) A FRATERNAL ORGANIZATI ON MAY NOT LOCATE OR 14
254		-	OPERATE ITS INSTANT TICKET LOTTERY MACHI NES IN A MEETING HAL L THAT IS: 15
255		-
256		-	1. LOCATED ON OR AFFILI ATED WITH THE CAMPUS OF 16
257		-	AN INSTITUTION OF HI GHER EDUCATION ; OR 17
258		-
259		-	2. LOCATED IN A BUILDIN G WHERE STUDENTS OF AN 18
260		-	INSTITUTION OF HIGHE R EDUCATION RESIDE . 19
261		-
262		-	(6) The Agency shall ensure that the element of chance in the conduct of 20
263		-	the gaming through the instant ticket lottery machines established under this subsection 21
264		-	is consistent with the holding in the case of Chesapeake Amusements Inc. v. Riddle, 363 22
265		-	Md. 16 (2001), in that the element of chance must be CONTAINED wholly within the 23
266		-	pre–printed PREDETERMINED instant lottery ticket, and that player enhancements in an 24
267		-	instant ticket lottery machine may not affect the element of chance being wholly within the 25
268		-	pre–printed instant lottery ticket. 26
269		-
270		-	(e) The Director may not issue a license to: 27
271		-
272		-	(1) a person or governmental unit to engage in business primarily as a 28
273		-	licensed agent; or 29
274		-
275		-	(2) an individual who is under the age of 21 years. 30
276		-
277		-	(f) The Commission may hear and decide an appeal of a denial of a license. 31
278		-
279		-	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 32
280		-	1, 2025. 33
	270	+	Approved:
	271	+	________________________________________________________________________________
	272	+	Governor.
	273	+	________________________________________________________________________________
	274	+	Speaker of the House of Delegates.
	275	+	________________________________________________________________________________
	276	+	President of the Senate.