Bill Summary for H 347 (2023-2024)

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Summary date: 

May 31 2023

Bill Information:

View NCGA Bill Details2023-2024 Session
House Bill 347 (Public) Filed Monday, March 13, 2023
Intro. by Saine, Bell, Hawkins, Clemmons.

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Bill summary

Senate amendment to the 5th edition makes the following changes.   

Broadens the tax-based ground for revocation or denial of a license renewal by the NC Lottery Commission (Commission) under GS 18C-908(c)(3) (pertaining to renewals of licenses) by changing the listed ground to a violation of Article 2E of Chapter 105 (was, failure to pay tax under Article 2E of GS Chapter 105).  

Amends GS 18C-909 (use of proceeds) by allowing the Commission to retain an amount of remaining proceeds reasonably necessary to cover future expenses related to administering new Articles 9 and 10 of GS Chapter 18C. Specifies that the total amount retained, including the percentage of Advance Deposit Account Wager/Wagering (ADW) licensee fees permitted to be retained under GS 18C-1010, cannot exceed the total expenses of the Commission related to administering provisions of Articles 9 and 10 during the previous quarter of the fiscal year. 

Amends the marketing duties set forth in GS 18C-910(e) to specify that the interactive sports wagering operator and their agents (was, the interactive sports wagering operator, or those acting on its behalf) must ensure all advertisements and marketing of sports wagers, the sports wagering platform, and other sports wager related commercial offerings meet the listed requirements.  

Amends GS 18C-928 by amending the conditions that must be met for a tribal gaming enterprise to be deemed a licensed interactive sports wagering operator, to include agreement to the adherence to the requirements of (was, collection and payment of all taxes imposed under) Article 2E of GS Chapter 105.

Amends GS 18C-1010 to provide that the total amount of he ADW licensing fee retained by the Commission for future administrative expenses may not exceed the total expenses of the Commission related to administering the provisions of Article 10 and 9 during the previous quarter.

Amends GS 18C-1015 by adding the requirement that an ADW licensee and their agents ensure that advertisements and marketing of advance deposit wagering: (1) does not target those under age 21; (2) discloses the identity of the ADW licensee; (3) provides information about or links to resources related to gambling addiction and prevention; (4) is not misleading to reasonable persons; and (5) satisfies the rules and requirements promulgated by the Commission.

Amends GS 105-113.126 by providing that the 18% tax is imposed on each interactive sports wagering operator for the privilege of being licensed.

Enacts new GS 105-113.126A requiring interactive sports wagering operators to register with the Secretary of Revenue and requires the Secretary of notify the Lottery Commission of failures to register. Requires an operator who changes ownership or stops engaging in the licensed activities to notify the Secretary of the change in writing. Requires the operator to maintain a bond or irrevocable letter of credit and for submitting all returns and for the payment of taxes.

Amends GS 105-113.128 to allow the Secretary of Revenue to retain the cost of administering the Article (was, cost of collection by the Department). Also requires the Lottery Commission, no later than 20 days after the end of the month, to notify the Department of Revenue of its unreimbursed expenses (was, expenses) from administering Articles 9 and 10 from the previous month.

Makes Section 5.1 of the act (changing the name of the North Carolina Outdoor Heritage Advisory Council in GS 105-113.128) effective January 8, 2024, instead of when the act becomes law.