Maryland 2025 Regular Session

Maryland Senate Bill SB541 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		-	Underlining indicates amendments to bill.
6		-	Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7		-	amendment.
8	5		sb0541
9	6
10	7		SENATE BILL 541
11	8		C7 5lr1241
12	9		HB 1159/24 – W&M CF HB 328
13		-	By: Senators Charles, Muse, and Ellis ~~Ellis, M. Jackson, Lewis Young, and Salling~~
	10	+	By: Senators Charles, Muse, and Ellis
14	11		Introduced and read first time: January 23, 2025
15	12		Assigned to: Budget and Taxation
16		-	Committee Report: Favorable with amendments
17		-	Senate action: Adopted
18		-	Read second time: March 18, 2025
19	13
20		-	~~CHAPTER ______~~
	14	+	A BILL ENTITLED
21	15
22	16		AN ACT concerning 1
23	17
24	18		State Lottery – Instant Ticket Lottery Machines – Veterans’ and Fraternal 2
25	19		Organizations 3
26	20
27	21		FOR the purpose of authorizing the Director of the State Lottery and Gaming Control 4
28	22		Agency to issue certain fraternal organizations a license for not more than a certain 5
29	23		number of instant ticket lottery machines; altering the distribution of proceeds from 6
30	24		certain instant ticket lottery machine sales by veterans’ organizations; providing for 7
31	25		the distribution of proceeds from certain instant ticket lottery machine sales by 8
32	26		fraternal organizations; authorizing, instead of requiring, the Director to consider 9
33	27		certain information before issuing certain licenses; repealing a requirement that 10
34	28		certain veterans’ organizations purchase or lease certain instant ticket lottery 11
35	29		machines; prohibiting certain fraternal organizations from operating an instant 12
36		-	ticket lottery machine in certain locations; altering certain requirements concerning 13
37		-	the conduct of gaming through instant ticket lottery machines; and generally 14
38		-	relating to the operation of instant ticket lottery machines in the State. 15
	30	+	ticket lottery machine in certain locations; and generally relating to the operation of 13
	31	+	instant ticket lottery machines in the State. 14
39	32
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
	33	+	BY repealing and reenacting, with amendments, 15
	34	+	Article – State Government 16
	35	+	Section 9–112 17
	36	+	Annotated Code of Maryland 18
	37	+	(2021 Replacement Volume and 2024 Supplement) 19
45	38
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 SENATE BILL 541
	39	+	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20
	40	+	That the Laws of Maryland read as follows: 21
49	41
	42	+	Article – State Government 22
50	43
51		-	~~Article – State Government 1~~
	44	+	9–112. 23
52	45
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 LIFETIME 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 PROPERTY ; 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 ORGANIZATION ” 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 SCHOOL . 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 SENATE BILL 541 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: 21
135		-
136		-	1. not more than five instant ticket lottery machines to an 22
137		-	applicant that is a veterans’ organization OR FRATERNAL ORGANIZ ATION; AND 23
138		-
139		-	2. NOT MORE THAN THREE INSTANT TICKET LOTTE RY 24
140		-	MACHINES TO AN APPLI CANT THAT IS A FRATERNAL ORGANIZA TION. 25
141		-
142		-	(ii) A veterans’ organization OR FRATERNAL ORGANIZ ATION that 26
143		-	is issued a license under this subsection shall locate and operate its instant ticket lottery 27 4 SENATE BILL 541
144		-
145		-
146		-	machines at its principal meeting hall in the county in which the veterans’ organization OR 1
147		-	FRATERNAL ORGANIZATI ON is located. 2
148		-
149		-	(III) AS A RETAILER UNDER T HE INSTANT TICKET LO TTERY 3
150		-	MACHINE PROGRAM , A VETERANS’ ORGANIZATION OR FRAT ERNAL ORGANIZATION 4
151		-	SHALL BE COMPENSATED BASED ON A PERCENTAG E OF PROCEEDS . 5
152		-
153		-	(3) (I) After deduction of any [commission and] validation prize payout 6
154		-	as provided under § 9–117 of this subtitle, a veterans’ organization issued a license under 7
155		-	this subsection shall RETAIN 50% OF THE NET PROCEEDS AND credit the remaining 8
156		-	receipts NET PROCEEDS from the sale of tickets from instant ticket lottery machines to 9
157		-	the State Lottery Fund established under § 9–118 of this subtitle. 10
158		-
159		-	(II) ON A PROPERLY APPROVE D TRANSMITTAL , THE AGENCY 11
160		-	SHALL PAY THE FOLLOW ING AMOUNTS FROM THE NET PROCEEDS OF SALE S OF 12
161		-	TICKETS FROM INSTANT TICKET LOTTERY MACHI NES OPERATED BY A VE TERANS’ 13
162		-	ORGANIZATION : 14
163		-
164		-	1. 50% TO VETERANS ’ ORGANIZATIONS 5% TO THE 15
165		-	MARYLAND VETERANS TRUST FUND ESTABLISHED UNDE R § 9–913 OF THIS TITLE; 16
166		-
167		-	2. TO THE AGENCY, AN AMOUNT NECESSARY TO PAY FOR 17
168		-	THE PURCHASE OR LEASE OF THE INSTANT TICKE T LOTTERY MACHINES A ND 18
169		-	AGENCY ADMINISTRATION FEES FOR THE PROGRAM ; AND 19
170		-
171		-	3. ANY REMAINING AMOUNT TO THE EDUCATION TRUST 20
172		-	FUND ESTABLISHED UNDE R § 9–1A–30 OF THIS TITLE. 21
173		-
174		-	(III) AFTER DEDUCTION OF A VALIDATION PR IZE PAYOUT, A 22
175		-	FRATERNAL ORGANIZATI ON ISSUED A LICENSE UNDER THIS SUBSECTIO N SHALL 23
176		-	REMIT THE PROCEEDS F ROM THE SALE OF TICK ETS FROM INSTANT TIC KET LOTTERY 24
177		-	MACHINES: 25
178		-
179		-	1. RETAIN 25% OF THE NET PROCEEDS FOR 26
180		-	UNDERGRADUATE , GRADUATE, OR TRADE SCHOOL SCHO LARSHIPS OR CAPITAL 27
181		-	IMPROVEMENTS , CAPITAL OUTLAYS , ACQUISITIONS, OR EXISTING COMMUNIT Y 28
182		-	OUTREACH PROGRAMS AN D RESOURCES ; AND 29
183		-
184		-	2. REMIT THE REMAINDER TO THE AGENCY TO BE 30
185		-	DISTRIBUTED AS PROVIDED IN SUBPARAGRAPH (IV) OF THIS PARAGRAPH . 31
186		-
187		-	(IV) ON A PROPERLY APPROVE D TRANSMITTAL , THE AGENCY 32
188		-	SHALL PAY THE FOLLOW ING AMOUNTS FROM THE NET PROCEEDS OF SALE S OF 33 SENATE BILL 541 5
189		-
190		-
191		-	TICKETS FROM INSTANT TICKET LOTTERY MACHI NES OPERATED BY A FR ATERNAL 1
192		-	ORGANIZATION: 2
193		-
194		-	1. 20% TO THE HOMELESSNESS SOLUTIONS PROGRAM 3
195		-	IN THE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT , TO BE USED, 4
196		-	IN CONSULTATION WITH THE DEPARTMENT OF VETERANS AND MILITARY 5
197		-	FAMILIES, TO ASSIST VETERANS A ND FAMILIES OF VETER ANS, WITH PRIORITY 6
198		-	GIVEN TO: 7
199		-
200		-	A. WOMEN VETERANS WHO A RE HOMELESS OR AT RI SK 8
201		-	OF HOMELESSNESS ; 9
202		-
203		-	B. SINGLE–PARENT VETERAN FAMIL IES; AND 10
204		-
205		-	C. VETERANS WHO ARE VIC TIMS OF DOMESTIC 11
206		-	VIOLENCE; AND 12
207		-
208		-	2. FROM THE REMAINING P ROCEEDS OF SALES OF 13
209		-	TICKETS FROM INSTANT TICKET LOTTERY MACHI NES OPERATED BY A FR ATERNAL 14
210		-	ORGANIZATION : 15
211		-
212		-	A. 25% TO THE FRATERNAL ORG ANIZATION TO BE USED 16
213		-	FOR UNDERGRADUATE , GRADUATE, OR TRADE SCHOOL SCHO LARSHIPS OR CAPITAL 17
214		-	IMPROVEMENTS , CAPITAL OUTLAY , ACQUISITIONS, OR EXISTING COMMUNIT Y 18
215		-	OUTREACH PROGRAMS AND RESO URCES; 19
216		-
217		-	2. 5% TO THE MARYLAND VETERANS TRUST FUND 20
218		-	ESTABLISHED UNDER § 9–913 OF THIS TITLE; 21
219		-
220		-	B. 3. TO THE AGENCY, AN AMOUNT NECESSARY TO PAY FOR 22
221		-	THE PURCHASE OR LEAS E OF THE INSTANT TIC KET LOTTERY MACHINES AND 23
222		-	AGENCY ADMINISTRATION FEES FOR THE PROGRAM ; AND 24
223		-
224		-	C. 4. ANY REMAINING AMOUNT TO THE EDUCATION TRUST 25
225		-	FUND ESTABLISHED UNDE R § 9–1A–30 OF THIS TITLE. 26
226		-
227		-	(4) [(i) Subject to subparagraph (ii) of this paragraph, a veterans’ 27
228		-	organization issued a license under this subsection shall purchase or lease the instant 28
229		-	ticket lottery machines to be used by the veterans’ organization. 29
230		-
231		-	(ii)] An organization may not use receipts NET PROCEEDS from the 30
232		-	sale of tickets from instant ticket lottery machines that would otherwise be [credited to the 31
233		-	State Lottery Fund] DISTRIBUTED AS REQUI RED UNDER PARAGRAPH (3) OF THIS 32
234		-	SUBSECTION for the costs of purchasing or leasing instant ticket lottery machines. 33 6 SENATE BILL 541
	46	+	(a) (1) In this section[, “veterans’] THE FOLLOWING WORDS HAVE THE 24
	47	+	MEANINGS INDICATED . 25 2 SENATE BILL 541
235	48
236	49
237	50
238		-	(5) (I) The Director may adopt regulations to implement the provisions 1
239		-	of this subsection that include restricting the location of instant ticket lottery machines in 2
240		-	areas of a veterans’ organization’s OR A FRATERNAL ORGAN IZATION’S public meeting 3
241		-	hall that is accessible to the public. 4
	51	+	(2) “ACTIVE MEMBERS ” MEANS INDIVIDUALS WH O ARE RECOGNIZED 1
	52	+	BY A FRATERNAL ORGAN IZATION AS DUES–PAYING MEMBERS OR LI FETIME 2
	53	+	MEMBERS. 3
242	54
243		-	(II) A ~~FRATERNAL ORGANIZATI ON MAY NOT LOCATE OR 5~~
244		-	~~OPERATE ITS INSTANT TICKET LOTTERY MACHI NES IN A MEETING HAL L~~ THAT IS: 6
	55	+	(3) (I) “FRATERNAL ORGANIZATIO N” MEANS A NONPROFIT 4
	56	+	ORGANIZATION THAT : 5
245	57
246		-	1. LOCATED ON OR AFFILI ATED WITH THE CAMPUS OF 7
247		-	AN INSTITUTION OF HI GHER EDUCATION ; OR 8
	58	+	1. A. IS TAX EXEMPT AND OR GANIZED AS A 6
	59	+	FRATERNAL OR SORORAL ORGANIZATION UNDER § 501(C)(7) OR § 501(C)(8) OF THE 7
	60	+	INTERNAL REVENUE CODE; 8
248	61
249		-	2. LOCATED IN A BUILDIN G WHERE STUDENTS OF AN 9
250		-	INSTITUTION OF HIGHE R EDUCATION RESIDE. 10
	62	+	B. OWNS OR LEASES A PRO PERTY; AND 9
251	63
252		-	(6) The Agency shall ensure that the element of chance in the conduct of 11
253		-	the gaming through the instant ticket lottery machines established under this subsection 12
254		-	is consistent with the holding in the case of Chesapeake Amusements Inc. v. Riddle, 363 13
255		-	Md. 16 (2001), in that the element of chance must be CONTAINED wholly within the 14
256		-	pre–printed PREDETERMINED instant lottery ticket, and that player enhancements in an 15
257		-	instant ticket lottery machine may not affect the element of chance being wholly within the 16
258		-	pre–printed instant lottery ticket. 17
	64	+	C. HAS A BONA FIDE MEMB ERSHIP OF AT LEAST 300 10
	65	+	ACTIVE MEMBERS OR HA S BEEN LOCATED IN A COUNTY IN WHICH SUBS ECTION (D) 11
	66	+	OF THIS SECTION APPL IES FOR AT LEAST 5 YEARS BEFORE THE ORG ANIZATION 12
	67	+	APPLIES FOR A LICENS E UNDER SUBSECTION (D) OF THIS SECTION; OR 13
259	68
260		-	(e) The Director may not issue a license to: 18
	69	+	2. IS INDEPENDENT AND T HE MEMBERSHIP OF WHI CH 14
	70	+	COMPRISES SOLELY GRA DUATE MEMBERS OF A N ATIONWIDE FRATERNITY OR 15
	71	+	SORORITY THAT IS TAX EXEMPT UNDER § 501(C)(7) OR § 501(C)(8) OF THE 16
	72	+	INTERNAL REVENUE CODE. 17
261	73
262		-	(1) a person or governmental unit to engage in business primarily as a 19
263		-	licensed agent; or 20
	74	+	(II) “FRATERNAL ORGANIZATION ” DOES NOT INCLUDE : 18
264	75
265		-	(2) an individual who is under the age of 21 years. 21
	76	+	1. ANY COLLEGE OR HIGH SCHOOL FRATERNITY OR 19
	77	+	SORORITY; OR 20
266	78
267		-	(f) The Commission may hear and decide an appeal of a denial of a license. 22
	79	+	2. ANY OTHER FRATERNITY OR SORORITY THE 21
	80	+	MEMBERSHIP OF WHICH IS RESTRICTED IN WHO LE OR IN PART TO STU DENTS OR 22
	81	+	GRADUATES OF AN EDUC ATIONAL INSTITUTION OR A PROFESSIONAL SC HOOL. 23
268	82
269		-	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 23
270		-	1, 2025. 24
	83	+	(4) “VETERANS’ organization” means an organization that is tax exempt 24
	84	+	and organized as a veterans’ organization under § 501(c)(19) or § 501(c)(4) of the Internal 25
	85	+	Revenue Code. 26
	86	+
	87	+	(b) Except as provided in subsection (d) of this section, in accordance with the 27
	88	+	regulations of the Agency and this subtitle, the Director shall issue licenses to the persons 28
	89	+	and governmental units that will best serve the public convenience and promote the sale of 29
	90	+	State lottery tickets or shares. 30
	91	+
	92	+	(c) Before issuing a license to an applicant, the Director [shall] MAY consider 31
	93	+	such factors as: 32 SENATE BILL 541 3
271	94
272	95
273	96
	97	+	(1) the financial responsibility and security of the applicant and the 1
	98	+	business or activity of the applicant; 2
274	99
275		-	Approved:
276		-	________________________________________________________________________________
277		-	Governor.
278		-	________________________________________________________________________________
279		-	President of the Senate.
280		-	________________________________________________________________________________
281		-	Speaker of the House of Delegates.
	100	+	(2) the accessibility of the place of business or activity to the public; 3
	101	+
	102	+	(3) the sufficiency of existing licenses to serve the public convenience; and 4
	103	+
	104	+	(4) the volume of expected sales. 5
	105	+
	106	+	(d) (1) This subsection does not apply in: 6
	107	+
	108	+	(i) Caroline County; 7
	109	+
	110	+	(ii) Cecil County; 8
	111	+
	112	+	(iii) Dorchester County; 9
	113	+
	114	+	(iv) Kent County; 10
	115	+
	116	+	(v) Queen Anne’s County; 11
	117	+
	118	+	(vi) Somerset County; 12
	119	+
	120	+	(vii) Talbot County; 13
	121	+
	122	+	(viii) Wicomico County; and 14
	123	+
	124	+	(ix) Worcester County. 15
	125	+
	126	+	(2) (i) Subject to subparagraph (ii) of this paragraph, the Director may 16
	127	+	issue a license under this subtitle for not more than five instant ticket lottery machines to 17
	128	+	an applicant that is a veterans’ organization OR FRATERNAL ORGANIZ ATION. 18
	129	+
	130	+	(ii) A veterans’ organization OR FRATERNAL ORGANIZ ATION that 19
	131	+	is issued a license under this subsection shall locate and operate its instant ticket lottery 20
	132	+	machines at its principal meeting hall in the county in which the veterans’ organization OR 21
	133	+	FRATERNAL ORGANIZATI ON is located. 22
	134	+
	135	+	(3) (I) After deduction of any [commission and] validation prize payout 23
	136	+	as provided under § 9–117 of this subtitle, a veterans’ organization issued a license under 24
	137	+	this subsection shall credit the remaining receipts from the sale of tickets from instant 25
	138	+	ticket lottery machines to the State Lottery Fund established under § 9–118 of this subtitle. 26
	139	+
	140	+	(II) ON A PROPERLY APPROVE D TRANSMITTAL , THE AGENCY 27
	141	+	SHALL PAY THE FOLLOW ING AMOUNTS FROM THE NET PROCEEDS OF SALE S OF 28 4 SENATE BILL 541
	142	+
	143	+
	144	+	TICKETS FROM INSTANT TICKET LOTTERY MACHI NES OPERATED BY A VE TERANS’ 1
	145	+	ORGANIZATION : 2
	146	+
	147	+	1. 50% TO VETERANS’ ORGANIZATIONS ; 3
	148	+
	149	+	2. TO THE AGENCY, AN AMOUNT NECESSARY TO PAY FOR 4
	150	+	THE PURCHASE OR LEAS E OF THE INSTANT TIC KET LOTTERY MACHINES AND 5
	151	+	AGENCY ADMINISTRATION FEES FOR THE PROGRAM ; AND 6
	152	+
	153	+	3. ANY REMAINING AMOUNT TO THE EDUCATION TRUST 7
	154	+	FUND ESTABLISHED UNDER § 9–1A–30 OF THIS TITLE. 8
	155	+
	156	+	(III) AFTER DEDUCTION OF A VALIDATION PRIZE PAY OUT, A 9
	157	+	FRATERNAL ORGANIZATI ON ISSUED A LICENSE UNDER THIS SUBSECTIO N SHALL 10
	158	+	REMIT THE PROCEEDS F ROM THE SALE OF TICK ETS FROM INSTANT TIC KET LOTTERY 11
	159	+	MACHINES TO THE AGENCY TO BE DISTRIBU TED AS PROVIDED IN S UBPARAGRAPH 12
	160	+	(IV) OF THIS PARAGRAPH . 13
	161	+
	162	+	(IV) ON A PROPERLY APPROVE D TRANSMITTAL , THE AGENCY 14
	163	+	SHALL PAY THE FOLLOW ING AMOUNTS FROM THE NET PROCEEDS OF SALE S OF 15
	164	+	TICKETS FROM INSTANT TICKET LOTTERY MACHI NES OPERATED BY A FR ATERNAL 16
	165	+	ORGANIZATION : 17
	166	+
	167	+	1. 20% TO THE HOMELESSNESS SOLUTIONS PROGRAM 18
	168	+	IN THE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT , TO BE USED, 19
	169	+	IN CONSULTATION WITH THE DEPARTMENT OF VETERANS AND MILITARY 20
	170	+	FAMILIES, TO ASSIST VETERANS A ND FAMILIES OF VETER ANS, WITH PRIORITY 21
	171	+	GIVEN TO: 22
	172	+
	173	+	A. WOMEN VETERANS W HO ARE HOMELESS OR A T RISK 23
	174	+	OF HOMELESSNESS ; 24
	175	+
	176	+	B. SINGLE–PARENT VETERAN FAMIL IES; AND 25
	177	+
	178	+	C. VETERANS WHO ARE VIC TIMS OF DOMESTIC 26
	179	+	VIOLENCE; AND 27
	180	+
	181	+	2. FROM THE REMAINING P ROCEEDS OF SALES OF 28
	182	+	TICKETS FROM INSTANT TICKET LOTTERY MACHI NES OPERATED BY A FR ATERNAL 29
	183	+	ORGANIZATION : 30
	184	+
	185	+	A. 25% TO THE FRATERNAL ORG ANIZATION TO BE USED 31
	186	+	FOR UNDERGRADUATE , GRADUATE, OR TRADE SCHOOL SCHOLARSHIPS OR CAPITAL 32 SENATE BILL 541 5
	187	+
	188	+
	189	+	IMPROVEMENTS , CAPITAL OUTLAY , ACQUISITIONS, OR EXISTING COMMUNIT Y 1
	190	+	OUTREACH PROGRAMS AN D RESOURCES ; 2
	191	+
	192	+	B. TO THE AGENCY, AN AMOUNT NECESSARY TO PAY FOR 3
	193	+	THE PURCHASE OR LEAS E OF THE INSTANT TIC KET LOTTERY MACHINES AND 4
	194	+	AGENCY ADMINISTRATION FEES FOR THE PROGRAM ; AND 5
	195	+
	196	+	C. ANY REMAINING AMOUNT TO THE EDUCATION TRUST 6
	197	+	FUND ESTABLISHED UNDE R § 9–1A–30 OF THIS TITLE. 7
	198	+
	199	+	(4) [(i) Subject to subparagraph (ii) of this paragraph, a veterans’ 8
	200	+	organization issued a license under this subsection shall purchase or lease the instant 9
	201	+	ticket lottery machines to be used by the veterans’ organization. 10
	202	+
	203	+	(ii)] An organization may not use receipts from the sale of tickets 11
	204	+	from instant ticket lottery machines that would otherwise be [credited to the State Lottery 12
	205	+	Fund] DISTRIBUTED AS REQUI RED UNDER PARAGRAPH (3) OF THIS SUBSECTION for 13
	206	+	the costs of purchasing or leasing instant ticket lottery machines. 14
	207	+
	208	+	(5) (I) The Director may adopt regulations to implement the provisions 15
	209	+	of this subsection that include restricting the location of instant ticket lottery machines in 16
	210	+	areas of a veterans’ organization’s OR A FRATERNAL ORGAN IZATION’S public meeting 17
	211	+	hall that is accessible to the public. 18
	212	+
	213	+	(II) A FRATERNAL ORGANIZATI ON MAY NOT LOCATE OR 19
	214	+	OPERATE ITS INSTANT TICKET LOTTERY MACHI NES IN A MEETING HAL L THAT IS: 20
	215	+
	216	+	1. LOCATED ON OR AFFILIATED WITH THE CAMPUS OF 21
	217	+	AN INSTITUTION OF HI GHER EDUCATION ; OR 22
	218	+
	219	+	2. LOCATED IN A BUILDIN G WHERE STUDENTS OF AN 23
	220	+	INSTITUTION OF HIGHE R EDUCATION RESIDE . 24
	221	+
	222	+	(6) The Agency shall ensure that the element of chance in the conduct of 25
	223	+	the gaming through the instant ticket lottery machines established under this subsection 26
	224	+	is consistent with the holding in the case of Chesapeake Amusements Inc. v. Riddle, 363 27
	225	+	Md. 16 (2001), in that the element of chance must be wholly within the pre–printed instant 28
	226	+	lottery ticket, and that player enhancements in an instant ticket lottery machine may not 29
	227	+	affect the element of chance being wholly within the pre–printed instant lottery ticket. 30
	228	+
	229	+	(e) The Director may not issue a license to: 31
	230	+
	231	+	(1) a person or governmental unit to engage in business primarily as a 32
	232	+	licensed agent; or 33
	233	+	6 SENATE BILL 541
	234	+
	235	+
	236	+	(2) an individual who is under the age of 21 years. 1
	237	+
	238	+	(f) The Commission may hear and decide an appeal of a denial of a license. 2
	239	+
	240	+	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effe ct July 3
	241	+	1, 2025. 4
	242	+