Print Friendly

SENATE BILL NO. 1383

View Daily Data Tracking History

View Bill Text

View Statement of Purpose / Fiscal Impact

---

Text to be added within a bill has been marked with Bold and
Underline. Text to be removed has been marked with
Strikethrough and Italic. How these codes are actually displayed will
vary based on the browser software you are using.

This sentence is marked with bold and underline to show added text.

This sentence is marked with strikethrough and italic, indicating
text to be removed.

Daily Data Tracking History

---

S1383......................................................by STATE AFFAIRS
BINGO AND RAFFLE COMMISSION - Amends existing law to change the Bingo
Advisory Board to the Bingo and Raffle Commission.

02/03    Senate intro - 1st rdg - to printing
02/04    Rpt prt - to St Aff

Bill Text

S1383


                                                                        
 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fourth Legislature                 Second Regular Session - 1998
                                                                        

                                      IN THE SENATE

                                   SENATE BILL NO. 1383

                                BY STATE AFFAIRS COMMITTEE

 1                                        AN ACT
 2    RELATING TO BINGO AND RAFFLES; AMENDING SECTION 67-7702, IDAHO CODE,  TO  PRO-
 3        VIDE  DEFINITIONS;  AMENDING SECTION 67-7703, IDAHO CODE, TO ESTABLISH THE
 4        BINGO AND RAFFLE COMMISSION; AMENDING SECTION 67-7704, IDAHO CODE, TO PRO-
 5        VIDE FOR MEMBERSHIP OF THE BINGO AND RAFFLE COMMISSION;  AMENDING  SECTION
 6        67-7705,  IDAHO  CODE, TO PROVIDE FOR A QUORUM, MEETINGS, MINUTES AND COM-
 7        PENSATION OF THE COMMISSION; AMENDING SECTION 67-7706, IDAHO CODE, TO PRO-
 8        VIDE THE POWERS AND DUTIES OF THE BINGO AND  RAFFLE  COMMISSION;  AMENDING
 9        SECTION  67-7707,  IDAHO  CODE,  TO  PROVIDE REFERENCES TO THE COMMISSION;
10        AMENDING SECTION 67-7708, IDAHO CODE, TO PROVIDE LIMITS  ON  SESSIONS  AND
11        PRIZES  FOR  BINGO;  AMENDING  SECTION 67-7709, IDAHO CODE, TO PROVIDE FOR
12        ACCOUNTING AND USE OF BINGO PROCEEDS AND  TO  INCREASE  MONEYS  NEEDED  TO
13        TRIGGER  ACCOUNTINGS  AND AUDITS; AMENDING SECTION 67-7710, IDAHO CODE, TO
14        PROVIDE FOR THE CONDUCT OF RAFFLE EVENTS; AMENDING SECTION 67-7711,  IDAHO
15        CODE,  TO  PROVIDE REFERENCES TO THE COMMISSION; AMENDING SECTION 67-7712,
16        IDAHO CODE, TO PROVIDE LICENSE FEES AND TO PROVIDE REFERENCES TO THE  COM-
17        MISSION;  AMENDING  SECTION  67-7713,  IDAHO  CODE, TO PROVIDE THAT EXEMPT
18        ORGANIZATIONS MUST REGISTER WITH THE COMMISSION; AMENDING SECTION 67-7714,
19        IDAHO CODE, TO PROVIDE A REFERENCE TO  THE  COMMISSION;  AMENDING  SECTION
20        67-7715,  IDAHO  CODE,  TO  PROVIDE REFERENCES TO THE COMMISSION AND BINGO
21        DEVICES; AND AMENDING CHAPTER 77, TITLE 67, IDAHO CODE, BY THE ADDITION OF
22        A NEW SECTION 67-7716, IDAHO CODE, TO ESTABLISH THE BINGO AND RAFFLE  COM-
23        MISSION FUND.

24    Be It Enacted by the Legislature of the State of Idaho:

25        SECTION  1.  That  Section 67-7702, Idaho Code, be, and the same is hereby
26    amended to read as follows:

27        67-7702.  DEFINITIONS. As used in this chapter:
28        (1)  "Bingo" means the traditional game  of  chance  played  for  a  prize
29    determined prior to the start of the game.
30        (a)  Upon approval by the bingo  advisory board   and raf-
31        fle  commission    a licensee may offer bingo games in which players
32        are allowed to select their own numbers if the cards used to  conduct  the
33        games  have controls that provide an audit trail adequate to determine all
34        winning number combinations.
35        (b)   Two-part disposable cards may be used if the  following  condi-
36        tions are met:
37             (i)   The  cards are printed on two-part, self-duplicating paper that
38             provides for an original and a duplicate copy;
39             (ii)  Players shall mark their numbers on each card  in  a  distinct,
40             clear,  and  legible  manner prior to separation of the duplicate and
41             original cards. Operators shall establish and set forth in plain view
42             house rules setting out any conditions  by  which  an  entry  may  be
43             added,  deleted  or  changed prior to separation. Any changes must be


                                          2

 1             verified by a worker authorized by the bingo manager.
 2             (iii) The player retains and plays the duplicate  copy.  All  winning
 3             cards and their duplicate copies shall be retained by the operator as
 4             a part of its daily bingo records.
 5        (c)  Upon  approval  by  the  bingo  advisory  board, bingo games may also
 6        include bonanzas and other  approved  blackout  games      Card
 7        minding  devices  shall  conform  to manufacturers standards. Auto daubing
 8        features are prohibited .
 9        ( d  c )  Bingo shall not  include  "instant  bingo"
10        which  is a game of chance played by the selection of one (1) or more pre-
11        packaged  bingo  cards,  with  the  winner  determined  by  the
12        appearance  of  a preprinted winning designation on the  bingo 
13        card.
14        (2)  "Bingo   advisory  board      and  raffle  commission
15    "  means a  board   commission  of six (6) persons
16    chosen by the governor to make  advisory  recommendations   to
17    the  legislature  regarding bingo  and raffle  operations and
18    regulation in Idaho.
19        (3)  "Charitable organization" means an organization that has been in con-
20    tinuous existence in the county of operation of the charitable bingo  game  or
21    raffle  for  at least one (1) year and that is exempt from taxation under sec-
22    tion 501(c)(3), 501(c)(4), 501(c)(6),  501(c)(8),  501(c)(10),  501(c)(19)  or
23    501(d)  of  the Internal Revenue Code and is exempt from income taxation under
24    title 63, Idaho Code, as a bona fide nonprofit charitable,  civic,  religious,
25    fraternal, patriotic or veterans organization or as a nonprofit volunteer fire
26    department, or as a nonprofit volunteer rescue squad, or as a nonprofit volun-
27    teer educational booster group, parent-teacher organization or association. If
28    the  organization has local branches or chapters, the term "charitable organi-
29    zation" means the local branch or chapter operating the bingo game.
30        (4)  "Commission" means the  Idaho state lottery     bingo
31    and  raffle  commission as  defined   established 
32    in  section 67-7404, Idaho Code   this chapter .
33        (5)  "Duck race" means a charitable raffle played by  releasing  numbered,
34    inanimate  toys  (ducks)  into  a  body of moving water. A person who has been
35    assigned the same number as the first duck to cross a predetermined  point  in
36    the  water (the finish line) is the winner. Other prizes may be awarded on the
37    basis of the order in which the ducks cross the finish line. With  the  excep-
38    tion of determining "net proceeds," all restrictions and requirements applica-
39    ble  to  the conduct of charitable raffles in this chapter shall also apply to
40    the conduct of duck races.
41        (6)  "Gross revenues" shall mean all moneys paid by players during a bingo
42    game or session for the playing of bingo or raffle event and shall not include
43    money paid for concessions.
44        (7)  "Nonprofit organization" means  an  organization  incorporated  under
45    chapter  3,  title 30, Idaho Code, or an unincorporated association recognized
46    under chapter 7, title 53, Idaho Code.
47        (8)  "Organization" means a charitable organization or a nonprofit organi-
48    zation.
49        (9)  "Raffle" means a game in which the prize is won by random drawing  of
50    the name or number of one (1) or more persons purchasing chances.
51          (10) "Session" means a period of time not to exceed eight (8) hours
52    in any one (1) day in which players are allowed to participate in bingo  games
53    operated by the charitable or nonprofit organization.
54        (11) "Special  permit"  means  a permit that can be obtained by charitable
55    organizations who are not licensed but qualify to operate exempt bingo  opera-


                                          3

 1    tions. This permit allows organizations to operate bingo games at county fairs
 2    for the duration of the fair.
 3        (12) "Vendor" means an applicant, licensee or manufacturer, distributor or
 4    supplier  licensed  or  unlicensed  that furnishes or supplies bingo or raffle
 5    equipment, disposable or nondisposable cards and all related equipment for the
 6    function. 

 7        SECTION 2.  That Section 67-7703, Idaho Code, be, and the same  is  hereby
 8    amended to read as follows:

 9        67-7703.  BINGO    ADVISORY  BOARD   AND RAFFLE COMMISSION
10     ESTABLISHED. There is established  in the department of  self-gov-
11    erning  agencies  the bingo  advisory board   and raffle
12    commission , which is responsible for  making  recommendations  for
13    the   recommending  improvement s   of 
14     to  bingo  and raffle  operations and regulation to the
15      state  lottery  commission,  the    governor and the legislature,
16    including  recommendations for  administrative rules.

17        SECTION 3.  That Section 67-7704, Idaho Code, be, and the same  is  hereby
18    amended to read as follows:

19        67-7704.  BINGO    ADVISORY  BOARD   AND RAFFLE COMMISSION
20     -- MEMBERS -- APPOINTMENT -- QUALIFICATIONS. The bingo    advisory
21    board    and raffle commission  shall consist of six (6) mem-
22    bers appointed by the governor and confirmed by the senate. Members  shall  be
23    selected  and  appointed because of their ability and disposition to serve the
24    state's interest and for knowledge of bingo   and  raffle    opera-
25    tions.  Members  appointed  by the governor shall serve at the pleasure of the
26    governor, and must be residents over twenty-five (25) years of  age  who  have
27    experience  in administrating, conducting or regulating bingo  and raffle
28     operations.  There shall be one (1) member from each of  the  following
29    six (6) districts initially established as follows:
30        District  No.  1.  The counties of Benewah, Bonner, Boundary, Kootenai and
31        Shoshone.
32        District No. 2. The counties of Clearwater, Idaho, Latah,  Lewis  and  Nez
33        Perce.
34        District  No.  3.  The counties of Ada, Adams, Boise, Canyon, Elmore, Gem,
35        Payette, Owyhee, Valley and Washington.
36        District No. 4. The counties of Blaine, Camas,  Cassia,  Gooding,  Jerome,
37        Lincoln, Minidoka and Twin Falls.
38        District  No.  5.  The  counties  of Bannock, Bear Lake, Bingham, Caribou,
39        Franklin, Oneida and Power.
40        District No. 6. The counties of Bonneville, Butte, Clark, Custer, Fremont,
41        Jefferson, Lemhi, Madison and Teton.
42        The terms of appointed members shall expire as designated by the  governor
43    at  the  time of appointment. The first six (6) members shall be appointed for
44    staggered terms. At the end of a term, a member continues  to  serve  until  a
45    successor  is  appointed and qualifies. A member who is appointed after a term
46    has begun serves only for the rest of  the  term  and  until  a  successor  is
47    appointed  and qualifies. A vacancy of the  board   commission
48     shall be filled in the same manner as regular  appointments  are  made,
49    and the term shall be for the unexpired portion of the regular term. No member
50    of the  board   commission  shall have a direct or indi-
51    rect pecuniary interest in any contract or agreement entered into by the 


                                          4

 1    board      commission . No more than three (3) members of the
 2     board   commission  shall belong to the same  political
 3    party.

 4        SECTION  4.  That  Section 67-7705, Idaho Code, be, and the same is hereby
 5    amended to read as follows:

 6        67-7705.  QUORUM -- MEETINGS -- MINUTES -- COMPENSATION. A majority of the
 7    qualified membership of the bingo  advisory board   and raffle
 8    commission  is a quorum. The  advisory board     commis-
 9    sion    may  not  act  unless at least four (4) members agree. The 
10    advisory board   commission  shall meet at  least  three  (3)
11    times  per year, and may meet more often as it deems necessary. Written notice
12    of the time and place of each meeting shall  be  given  to  each    board
13        commission  member. The  advisory board  
14    commission  shall select or elect one  (1) of its members to  be  chair-
15    man,  one (1) of its members to be vice-chairman and one (1) of its members to
16    be secretary. The secretary of the  advisory board     commis-
17    sion   shall  promptly send the lottery commission a certified copy
18    of the minutes of each meeting of the advisory board. The      take
19    and  retain the  minutes  of each meeting of the commission in per-
20    manent records.  The minutes  shall include a copy of the current recom-
21    mendations of the  board   commission , including recom-
22    mended administrative rules. Members of the  bingo advisory board  
23      commission    shall  receive  compensation as provided in section
24    59-509(b), Idaho Code. Members are entitled to  reimbursement  for  reasonable
25    travel  expenses  incurred  in the performance of their duties as a member, as
26    provided by law.

27        SECTION 5.  That Section 67-7706, Idaho Code, be, and the same  is  hereby
28    amended to read as follows:

29        67-7706.  BINGO    ADVISORY  BOARD   AND RAFFLE COMMISSION
30     -- POWERS -- DUTIES. The bingo  advisory board      and
31    raffle  commission    shall review the operation and regulation of bingo
32    games  and raffle events  in Idaho, and shall make  recommendations
33    to  the    state  lottery commission   appropriate legislative
34    committee  regarding, but not limited to, the following issues:
35        (1)  The issuances of licenses for the operation  of  bingo  sessions  and
36      games    raffle events , including the denial, suspen-
37    sion or revocation of licenses;
38        (2)  The collection of fees, penalties, fines and other moneys from  orga-
39    nizations  conducting  or  applying  to  conduct bingo sessions or  games
40      raffle events ;
41        (3)  The maintenance by bingo  and raffle  operators of records
42    and the efficacy of the statutes and rules requiring maintenance of records;
43        (4)  The recordation and reporting of income from bingo  games     to
44    the  state  lottery  commission,   and raffle events  and the
45    efficacy of the statutes and rules governing recordation and reporting;
46        (5)  The efficacy and  profitability  of  income  and  expenditure  limits
47    placed on organizations, by statute or rule, operating bingo sessions or 
48    games   raffle events  in the state;
49        (6)  The  type,  scope,  manner,  and frequency of bingo sessions or 
50    games   raffle events  conducted in Idaho, and  the  efficacy
51    of the statutes or rules governing those considerations;


                                          5

 1        (7)  Possible  cooperative  agreements  with county, city, and other local
 2    and state agencies that would enhance the safety and  profitability  of  bingo
 3    sessions and  games   raffle events ;
 4        (8)  Possible  written  agreements  or  contracts with other states or any
 5    agency or contractor of another state for the operation and promotion of joint
 6    bingo games  or raffle events  that would enhance  the  safety  and
 7    profitability of bingo  and raffle  operations in Idaho;
 8        (9)  What  rules  should be promulgated  by the state lottery commis-
 9    sion  to ensure the safe, orderly and  trustworthy  operation  of  bingo
10     and raffle  games in Idaho.
11         The bingo advisory board shall, at least twice a year, report to the
12    state lottery commission addressing the operations and activities of the advi-
13    sory  board and the major issues facing bingo operators in the state.  A
14    final annual report shall be provided to the governor,  the lottery  com-
15    mission,  the president pro tempore of the senate and the speaker of the
16    house of representatives of the Idaho legislature.

17        SECTION  6.  That  Section 67-7707, Idaho Code, be, and the same is hereby
18    amended to read as follows:

19        67-7707.  BINGO BY CHARITABLE OR NONPROFIT ORGANIZATIONS. (1) It is lawful
20    for a charitable or nonprofit organization to conduct bingo sessions or  games
21    in  accordance  with the provisions of this chapter and the rules of the 
22    state lottery  commission. Any charitable or nonprofit organization, any
23    member of a charitable or nonprofit organization, or any person that  conducts
24    a  bingo  session or game in violation of any provision of this chapter or the
25    rules of the  state lottery  commission may  be  assessed  a  civil
26    penalty  not  in  excess  of ten thousand dollars ($10,000). Additionally, any
27    person knowingly conducting a bingo session or game in violation of the provi-
28    sions of this chapter or the rules of the  state lottery    commis-
29    sion may be charged under the gambling laws contained in chapter 38, title 18,
30    Idaho  Code.  Violations  will  be  prosecuted by the  county prosecuting
31    attorney   office of the state attorney general .
32        (2)  No person under the age of eighteen (18) may play bingo  for  a  cash
33    prize  or  in  games  where  the prize exceeds twenty-five dollars ($25.00) in
34    value for merchandise. No person under the age of eighteen (18) may play bingo
35    in any game operated by a licensed charitable or nonprofit organization.

36        SECTION 7.  That Section 67-7708, Idaho Code, be, and the same  is  hereby
37    amended to read as follows:

38        67-7708.  LIMIT  ON  SESSIONS  AND BINGO PRIZES. The number of sessions or
39    games of bingo conducted or sponsored by a charitable or  nonprofit  organiza-
40    tion  shall  be limited to three (3) sessions per week and such sessions shall
41    not exceed a period of eight (8) hours per day.  Until July  1,  1997,  t
42      T  he  maximum  prize in cash or merchandise at fair market
43    value that may be offered or paid for any one (1) game of bingo is  one  thou-
44    sand  five  hundred  dollars  ($1,500)  and,  the  maximum aggregate amount of
45    prizes, in cash or merchandise at fair market value that  may  be  offered  or
46    paid  at any one (1) session of bingo is ten thousand dollars ($10,000). 
47    After July 1, 1997, the maximum prize that may be offered or paid for any  one
48    (1)  game  of  bingo,  and  the maximum aggregate amount of prizes that may be
49    offered or paid for any one (1) session of bingo, shall be set by rule of  the
50    state lottery commission. Provided however, that the maximums to be set by the
51    state  lottery  commission  shall  not  be below the amounts described in this


                                          6

 1    statute. 

 2        SECTION 8.  That Section 67-7709, Idaho Code, be, and the same  is  hereby
 3    amended to read as follows:

 4        67-7709.  ACCOUNTING  AND USE OF BINGO PROCEEDS. (1) All funds received in
 5    connection with a bingo game required to be licensed pursuant to this  chapter
 6    and  the rules of the  state lottery  commission shall be placed in
 7    a separate bank account. No funds may be disbursed from  this  account  except
 8    the  charitable  or  nonprofit  organization  may  expend proceeds for prizes,
 9    advertising,  rent,  utilities and the  purchase  of  supplies  and
10    equipment  in playing bingo, taxes and license fees related to bingo, the pay-
11    ment of compensation, and for the purposes set forth below for  the  remaining
12    proceeds.  Any  proceeds  available  in the account after payment of the above
13    expenses shall inure to the charitable or nonprofit organization  to  be  used
14    for  religious, charitable, civic, scientific testing, public safety, literary
15    or educational purposes or for purchasing, constructing, maintaining,  operat-
16    ing  or using equipment or land, or a building or improvements thereto, owned,
17    leased or rented by and for the charitable or nonprofit organization and  used
18    for civic purposes or made available by the charitable or nonprofit  organiza-
19    tion  for  use  by  the general public from time to time, or to foster amateur
20    sports competition, or for the prevention of cruelty to children  or  animals,
21    provided  that no proceeds shall be used or expended directly or indirectly to
22    compensate officers or directors. No employees of the charitable  organization
23    may  be compensated from bingo proceeds except as provided in this subsection.
24    All gross revenues received from bingo games  by  a  charitable  or  nonprofit
25    organization  must be disbursed in the following manner, unless otherwise pro-
26    vided in section 67-7708, Idaho Code: not more than sixty-five  percent  (65%)
27    of  the  gross  revenues  shall be utilized for prizes in the charitable bingo
28    game, not less than twenty percent (20%) of gross revenues shall be  used  for
29    charitable  purposes  enumerated  in this subsection and not more than fifteen
30    percent (15%) of the gross revenues shall be used for administrative  expenses
31    associated  with  the  charitable  bingo  game. If agreed upon by its board of
32    directors, a charitable organization may  decrease  gross  revenues  spent  on
33    administrative  expenses  associated with bingo games and allocate those reve-
34    nues to prizes so long as no more than seventy percent (70%) of the gross rev-
35    enues is utilized for prizes on the bingo  game.  Two  hundred  fifty  dollars
36    ($250)  or  one-tenth  of one percent (.001%) of annual gross revenues, as per
37    the previous year's annual bingo report whichever is greater may  be  paid  as
38    wages  for  the  conduct of any one (1) bingo session. Such pay shall be on an
39    hourly basis and shall be directly related to the preparation, conduct of  and
40    cleaning  following  a bingo session.  Such wages shall be part of the fifteen
41    percent (15%) gross revenues used for administrative expenses. An organization
42    requesting an exemption from the disbursement  percentages  provided  in  this
43    subsection  for  administrative  costs may request an exemption from the 
44    state lottery  commission.
45        (2)  Any charitable or nonprofit organization conducting bingo games  pur-
46    suant  to  this  chapter shall prepare a statement at the close of its license
47    year and shall file such statement with the  state lottery    
48    commission . The statement shall be prepared on a form prescribed by the
49     lottery  commission and shall include, at a minimum, the following
50    information:
51        (a)  The  number  of bingo sessions conducted or sponsored by the licensed
52        organization;
53        (b)  The location and date at which each bingo session was conducted;


                                          7

 1        (c)  The gross revenues of each bingo session;
 2        (d)  The fair market value of any prize given at each bingo session;
 3        (e)  The amount paid in prizes at each session;
 4        (f)  The amount paid to the charitable organization;
 5        (g)  All disbursements from bingo revenue and the purpose  of  those  dis-
 6        bursements  must  be documented on a general ledger and submitted with the
 7        annual bingo report to the  Idaho lottery  commission; and
 8        (h)  An accounting of all gross revenues and the disbursements required by
 9        statute and rule of the  state  lottery    commission  must  be
10        retained in permanent records with the organization, including the date of
11        each transaction and the name and address of each payee for all prize pay-
12        ments  in  excess of  one   two  hundred  fifty
13         dollars ($ 10  25 0).
14        (3)  Any person who shall willfully or knowingly furnish, supply or other-
15    wise give false information in any statement filed pursuant  to  this  section
16    shall be guilty of a misdemeanor.
17        (4)  All financial books, papers, records and documents of an organization
18    shall  be  kept  as determined by rule of the  state lottery  
19    commission  and shall be open to inspection by the county sheriff of the
20    county, or the chief of police of the city, or the prosecuting attorney of the
21    county where the bingo game was held, or the attorney  general  or  the  
22    state  lottery     commission  at reasonable times and during
23    reasonable hours.
24        (5)  Every charitable or nonprofit organization whose annual  gross  reve-
25    nues exceed  one   two  hundred  fifty  thou-
26    sand  dollars  ($  15    20 0,000) from the operation of
27    bingo games shall provide the   state  lottery      commission
28      with a copy of an annual audit of the bingo operation. The audit shall
29    be performed by an  independent  public  accountant  and  submitted
30    within ninety (90) days after the end of the license year.

31        SECTION  9.  That  Section 67-7710, Idaho Code, be, and the same is hereby
32    amended to read as follows:

33        67-7710.  RAFFLES. (1) It is lawful for  any  charitable  organization  to
34    conduct raffles in accordance with the provisions of this chapter.  Any chari-
35    table or nonprofit organization who conducts a raffle in violation of any pro-
36    vision  of  this  chapter may be assessed a civil penalty not in excess of ten
37    thousand dollars ($10,000). Additionally, any person  knowingly  conducting  a
38    raffle  in violation of any provision of this chapter may be charged under the
39    gambling laws of the state contained in chapter 38, title 18, Idaho  Code.  It
40    shall not constitute a violation of state law to advertise a charitable raffle
41    conducted  pursuant to this section. It is lawful to participate in a charita-
42    ble raffle conducted pursuant to this chapter. A charitable  raffle  conducted
43    lawfully  pursuant to this chapter is not gambling for purposes of chapter 38,
44    title 18, Idaho Code.
45        (2)   Raffles shall be limited to twelve (12) per charitable  organi-
46    zation per year.
47        (3)   The maximum cash prize that may be offered or paid for any one
48    (1)  raffle  is  one thousand dollars ($1,000) and if merchandise is used as a
49    prize and it is not redeemable for cash, there shall be no limit on the  maxi-
50    mum amount of value for the merchandise.
51        (  4  3 )  As used in this subsection, "net proceeds
52    of a charitable raffle" means the gross  receipts  less  the  cost  of  prizes
53    awarded.  "Net  proceeds  of  a duck race" shall mean gross receipts, less the


                                          8

 1    cost of prizes awarded and the rental cost of the ducks used in the  race.  No
 2    less  than  ninety percent (90%) of the net proceeds of a raffle shall be used
 3    by the charitable organization for charitable, religious,  educational,  civic
 4    or other nonprofit purposes.
 5        ( 5  4 )  Any licensed charitable or nonprofit orga-
 6    nization conducting raffles pursuant to this chapter shall prepare a statement
 7    at  the close of its license year and shall file such statement with the 
 8    state lottery   commission . The statement shall be  prepared
 9    on a form prescribed by the  lottery  commission and shall include,
10    at a minimum, the following information:
11        (a)  The  number  of  raffles  conducted or sponsored by the charitable or
12        nonprofit organization;
13        (b)  The location and date at which each raffle was conducted;
14        (c)  The gross revenues of each raffle;
15        (d)  The fair market value of any prize given at each raffle;
16        (e)  The amount paid in prizes at each raffle;
17        (f)  The amount paid to the charitable organization;
18        (g)  An accounting of all gross revenues and the disbursements required by
19        statute and rule of the  state lottery  commission.
20        (6)  Every charitable or nonprofit organization whose annual  gross  reve-
21    nues exceed  one   two  hundred  fifty  thou-
22    sand  dollars  ($  15   20 0,000)  from the operation of
23    raffle events shall provide the  state lottery      commission
24      with  a copy of an annual report of the raffle events. The audit shall
25    be performed by  an independent   a   public  accountant
26    and submitted within ninety (90) days after the end of the license year.

27        SECTION  10.  That Section 67-7711, Idaho Code, be, and the same is hereby
28    amended to read as follows:

29        67-7711.  LICENSING PROCEDURE. (1) Any charitable or  nonprofit  organiza-
30    tion  not  exempt pursuant to section 67-7714, Idaho Code, desiring to operate
31    bingo sessions or games or charitable raffles  shall    make  application
32        apply    for a license  to the  state lottery 
33     commission . The    state  lottery      commission
34      shall  review  the  license  application and shall approve or deny the
35    issuing of a license within fifteen (15)  calendar  days  of  receipt  of  the
36    license  application.  The   state lottery   commission 
37    may deny the application if it determines  that  the  applicant  has  not  met
38    requirements  imposed  in this act and rules promulgated pursuant to this act.
39    Whenever an application is denied, it shall be returned to  the  applicant  by
40    the    state lottery   commission  with specific reasons
41    for the denial. When a license application is approved by the  state lot-
42    tery   commission , the  state lottery   com-
43    mission  shall issue a license to the applicant. No person or charitable
44    or nonprofit organization shall operate or conduct a bingo session or game  or
45    charitable raffle until it has received a license from the  state lottery
46        commission  . The license shall expire one (1) year after
47    the date it was issued. A copy of the license shall be furnished to the county
48    sheriff of the county or the chief of police of the city in which the licensee
49    intends to operate a bingo session or game or sell charitable  raffle  tickets
50    before  a  bingo  session  or  game or a charitable raffle is conducted by the
51    licensee.
52        (2)  Each application and renewal application shall contain the  following
53    information:


                                          9

 1        (a)  The  name, address, date of birth, driver's license number and social
 2        security number of the applicant and if the applicant  is  a  corporation,
 3        association or other similar legal entity, the name, home address, date of
 4        birth,  driver's  license number and social security number of each of the
 5        officers of the organization as well as the name and address of the direc-
 6        tors, or other persons similarly situated, of the organization;
 7        (b)  The name, home address, date of birth, driver's  license  number  and
 8        social  security  number  of each of the person or persons responsible for
 9        managing the bingo session or game or raffle;
10        (c)  (i) In the case of charitable organizations, a copy of  the  applica-
11             tion  for  recognition  of exemptions and a determination letter from
12             the internal revenue service and the state tax commission that  indi-
13             cates  that the organization is a charitable organization and stating
14             the section under which that exemption is granted, except that if the
15             organization is a state or local branch, lodge, post or chapter of  a
16             national  organization,  a  copy  of  the determination letter of the
17             national organization shall satisfy this requirement;
18             (ii) In the case of incorporated nonprofit organizations, a copy of a
19             certificate of existence issued by the secretary of state pursuant to
20             chapter 3, title 30, Idaho Code, establishing the organization's good
21             standing in the state; and
22             (iii) In the case of unincorporated nonprofit associations  operating
23             pursuant  to chapter 7, title 53, Idaho Code, a statement meeting the
24             requirements of section 53-710, Idaho Code, for appointing  an  agent
25             for service of process.
26        (d)  The location at which the applicant will conduct the bingo session or
27        games or drawings for the raffles.
28        (3)  The  operation of bingo sessions or games or charitable raffles shall
29    be the direct responsibility  of,  and  controlled  by,  a  special  committee
30    selected by the governing  body of the organization. If the governing body has
31    not  appointed a special committee, the members of the governing body shall be
32    held responsible for the conduct of the bingo sessions or games or raffles. No
33    directors or officers of an organization or persons related to them either  by
34    marriage  or  blood  within  the  second degree shall receive any compensation
35    derived from the proceeds of a bingo session or  raffle  regulated  under  the
36    provisions of this chapter. An organization shall not contract with any person
37    not  employed by, or a volunteer for, the organization for the purpose of con-
38    ducting a bingo session or raffle on the organization's  behalf.  However,  if
39    the    state  lottery   commission has entered into an agreement or
40    contract with another state for the operation or promotion of joint bingo ses-
41    sions, the charitable or nonprofit organization may participate in  that  con-
42    tract or agreement.
43        (4)  Different chapters of an organization may apply for and share one (1)
44    license  to  conduct raffles so long as the information required in subsection
45    (2) of this section is provided to the  lottery     commission
46     prior to the issuance of the license.
47        (5)  The  organization  may  apply  for  the  license to coincide with the
48    organization's fiscal year.

49        SECTION 11.  That Section 67-7712, Idaho Code, be, and the same is  hereby
50    amended to read as follows:

51        67-7712.  LICENSE  FEES -- SUSPENSION OR REVOCATION. (1) Each organization
52    that applies to the  state lottery   commission   for  a
53    license pursuant to this chapter shall pay annually to the  state lottery


                                          10

 1       commission  a nonrefundable license fee which shall be due
 2    upon submission of the  application.  License  fees  shall  be  based  on  the
 3    organization's  gross  revenues from bingo or raffle operations as required to
 4    be reported by statute or rule of the  commission.  Organizations  with  gross
 5    revenues  of    twenty-five      forty  thousand dollars
 6    ($ 25  40 ,000) or less shall pay a fee of  one  hundred
 7    dollars  ($100). Organizations with gross revenues of  twenty-five 
 8     forty  thousand dollars ($ 25  40  ,000)  to
 9      seventy-five      eighty   thousand dollars ($ 75
10     80 ,000) shall pay a fee  of  two  hundred  dollars  ($200).
11    Organizations  with  gross  revenues exceeding  seventy-five  
12    eighty  thousand dollars ($ 75  80 ,000)   to
13    one  hundred fifty thousand dollars ($150,000)  shall pay a fee of three
14    hundred dollars ($300).  Organizations with gross revenues of one hundred
15    fifty thousand dollars ($150,000) to three hundred thousand dollars ($300,000)
16    shall pay a fee of four hundred dollars ($400).  Organizations with gross rev-
17    enues exceeding three hundred thousand dollars shall pay a fee of five hundred
18    dollars ($500).  New organizations with no  history  of  gross  revenues
19    shall  pay  a  fee of one hundred dollars ($100), and the gross revenues indi-
20    cated in the organization's first annual report shall  determine  the  license
21    renewal  fee.    Qualifying unlicensed organizations may apply for a spe-
22    cial permit at county fairs for an annual fee of twenty-five dollars ($25.00).
23    
24        (2)  Any license issued pursuant to this chapter  shall  be  suspended  or
25    revoked  by  the    state lottery   commission  if it is
26    found that the licensee or any person connected with the licensee has violated
27    any provision of this chapter or any rule of the  lottery   commis-
28    sion or ordinance of a county adopted pursuant to this chapter or:
29        (a)  Has  continued  to operate bingo sessions or  games  
30        raffle events  after losing its tax exempt or  nonprofit  status  or
31        ceases  to  exercise  independent control over its activities or budget as
32        required under the provisions of this chapter;
33        (b)  Has violated or has failed or refused to comply with  the  provisions
34        of  this  chapter, or has violated the provisions of a rule of the lottery
35        commission or has allowed  such a violation to occur  upon  premises  over
36        which the licensee has substantial control;
37        (c)  Has  knowingly caused, aided or abetted, or conspired with another to
38        cause, any person to  fail  or  refuse  to  comply  with  the  provisions,
39        requirements, conditions, limitation or duties imposed in this chapter, or
40        to fail or refuse to comply with a rule adopted by the  state lottery
41         commission;
42        (d)  Has  obtained a license or permit by fraud, misrepresentation or con-
43        cealment, or through inadvertence or mistake;
44        (e)  Has been convicted, forfeited bond, or has been  granted  a  withheld
45        judgment,  upon a charge involving forgery, theft, willful failure to make
46        required payments or reports to a governmental agency  at  any  level,  or
47        filing  false  reports to a governmental agency, or any similar offense or
48        offenses, or of bribing or otherwise unlawfully influencing a public offi-
49        cial or employee of any state or the  United  States,  or  of  any  crime,
50        whether  a  felony  or  misdemeanor, involving gambling activity, physical
51        injury to individuals or moral turpitude;
52        (f)  Denies the  state lottery   commission   access
53        to  any place where a licensed game is conducted, denies access to any law
54        enforcement officer, or fails promptly to produce for inspection or  audit
55        any records or items as required by law;


                                          11

 1        (g)  Fails  to  have  the  license  available  for  verification where the
 2        licensed game is conducted;
 3        (h)  Misrepresents or fails to disclose to the  state lottery  
 4          commission   or any investigating law enforcement officer any
 5        material fact;
 6        (i)  Fails to demonstrate to the  state lottery    commis-
 7        sion    by  clear  and  convincing  evidence, qualifications for the
 8        license according to state law and the rules of the    state  lottery
 9          commission  establishing such qualifications;
10        (j)  Is subject to current prosecution or pending charges, or to a convic-
11        tion regardless of whether it has been appealed, for any offense described
12        in paragraph (e) of this subsection. At the request of an applicant for an
13        original  license,  the  state lottery   commission 
14        may defer decision upon the application during the pendency of the  prose-
15        cution or appeal;
16        (k)  Has pursued or is pursuing economic gain in a manner or context which
17        violates  criminal or civil public policy of this state and creates a rea-
18        sonable belief that the participation of the person in  gaming  operations
19        by  charitable  or  nonprofit organizations would be harmful to the proper
20        operation of a lawful bingo or raffle.
21        (3)  The  state lottery   commission  may, upon  its
22    own  motion or upon a written verified complaint of any other person, investi-
23    gate the operation of any gaming purportedly authorized in  this  chapter.  If
24    the  state lottery   commission  has reasonable cause to
25    believe  that any gaming as described in this chapter violates any of the pro-
26    visions of this chapter or rules promulgated pursuant to this chapter, it may,
27    in its discretion revoke, cancel, rescind or suspend any license for a  period
28    not to exceed one (1) year, or it may refuse to grant a renewal of the license
29    or it may take other action as may be appropriate under this act and any rules
30    promulgated pursuant to this act. If the  state lottery   com-
31    mission  shall refuse to grant a license or refuse to grant a renewal of
32    a  license  or revoke, cancel, rescind or suspend a license, it shall give the
33    applicant or licensee fifteen  (15)  calendar  days'  written  notice  of  its
34    intended action stating generally the basis for its action. Within the fifteen
35    (15)  calendar day notice period, the applicant or licensee shall indicate its
36    acceptance of the decision of the  state lottery    commission
37     or  shall request a hearing to be held in the same manner  as  hearings
38    in  contested  cases pursuant to chapter 52, title 67, Idaho Code. The hearing
39    shall be conducted within twenty-one (21) days of the request.  The  applicant
40    or  licensee  may appeal the decision of the  state lottery   
41    commission  after the hearing within the same time and  manner  as  pro-
42    vided  for  judicial review of actions pursuant to chapter 52, title 67, Idaho
43    Code. Failure to make the request for a hearing as provided herein, shall ren-
44    der the decision of the  state lottery      commission  
45    final and not subject to further appeal.

46        SECTION  12.  That Section 67-7713, Idaho Code, be, and the same is hereby
47    amended to read as follows:

48        67-7713.  EXEMPTION FROM LICENSURE REQUIREMENTS. A charitable or nonprofit
49    organization conducting a bingo game  shall be required to register  with
50    the  commission  but    shall  not be required to obtain a license, file
51    reports or pay fees pursuant to this chapter if the  organization  conducts  a
52    bingo game and the maximum prize offered or paid for any one (1) game of bingo
53    does  not  exceed  two  hundred fifty dollars ($250) and the maximum amount of


                                          12

 1    prizes, in cash and/or merchandise at fair market value offered during any one
 2    (1) session of bingo does not exceed one thousand dollars ($1,000). A charita-
 3    ble or nonprofit organization conducting a raffle  shall be  required  to
 4    register  with  the  commission  but   shall not be required to obtain a
 5    license, file reports or pay fees pursuant to this chapter if the organization
 6    conducts a raffle in which the aggregate amount of prizes does not exceed  one
 7    thousand  dollars ($1,000) in cash or if merchandise used as a prize or prizes
 8    does not have a maximum fair market value in excess of five  thousand  dollars
 9    ($5,000).

10        SECTION  13.  That Section 67-7714, Idaho Code, be, and the same is hereby
11    amended to read as follows:

12        67-7714.  RULES AND FORMS. The  state lottery    commission  is
13    authorized  to  promulgate  rules  consistent with this act in compliance with
14    chapter 52, title 67, Idaho Code, to implement the provisions of this act  and
15    shall prescribe standardized forms for implementation of this act.

16        SECTION  14.  That Section 67-7715, Idaho Code, be, and the same is hereby
17    amended to read as follows:

18        67-7715.  VENDORS -- LICENSING -- FEES. (1) No person or entity shall man-
19    ufacture, sell, distribute, furnish or supply to any person or entity any gam-
20    ing device, equipment or material, in this state or for  use  in  this  state,
21    without first obtaining a vendor's license from the  state lottery 
22    commission.   Vendor  licenses  shall not be issued by the  state lottery
23      commission  except respecting devices, equipment  or  mate-
24    rial  designed  and  permitted to be used in connection with activities autho-
25    rized under this chapter. Provided however, that  this  licensing  requirement
26    shall  apply  only  insofar  as  the  state lottery  commission has
27    adopted rules implementing it as to  particular  categories  of    gaming
28      bingo  devices and related material and equipment.
29        (2)  Any person or entity that manufactures, sells, distributes, furnishes
30    or  supplies  any   gaming   bingo  device, equipment or
31    material, in this state or for use in this state shall  make  application
32        apply    for  a vendor license to the  state lottery
33      commission . The  state lottery     commis-
34    sion    shall  review the license application and shall approve or  deny
35    the issuing of a license within fifteen (15) calendar days of receipt  of  the
36    license  application.  The   state lottery   commission 
37    may deny the application if it determines that the applicant has not  met  the
38    requirements  imposed  in this act and rules promulgated pursuant to this act.
39    Whenever an application is denied, it shall be returned to  the  applicant  by
40    the   state lottery    commission  with specific reasons
41    for the denial. When the license application is approved by  the    state
42    lottery    commission , the  state lottery   
43    commission  shall issue a license to the applicant.
44        (3)  Each application and renewal application shall contain the  following
45    information:
46        (a)  The  name, address, date of birth, driver's license number and social
47        security number of the applicant and if the applicant  is  a  corporation,
48        proprietorship,  association,  partnership  or other similar legal entity,
49        the name, home address, date of birth, driver's license number and  social
50        security  number  of  each  of  the  officers of the corporation and their
51        spouses, as well as the name  and  address  of  the  directors  and  their


                                          13

 1        spouses, or other persons similarly situated.
 2        (b)  The  locations  or  persons with which the applicant will provide any
 3         gaming   bingo  device, equipment  or  material  in
 4        this state or for use in this state.
 5        (4)  Any licensee under this section shall submit an annual revenue report
 6    to  the    Idaho lottery  commission within thirty (30) days of the
 7    end of the licensed year on the prescribed forms provided by the    Idaho
 8    lottery  commission.
 9        (5)  Each  applicant  shall pay annually to the  state lottery 
10     commission  a nonrefundable license fee of  two   
11    three   hundred dollars ($ 2  3 00) which shall be
12    due upon submission of the application.
13        (6)  Any license issued pursuant to this chapter  shall  be  suspended  or
14    revoked  by  the   state lottery    commission  if it is
15    found that the licensee or any person connected with the licensee has violated
16    any provision of this chapter, particularly those in  section  67-7712,  Idaho
17    Code, or any rule of the  lottery  commission.

18        SECTION  15.  That  Chapter  77, Title 67, Idaho Code, be, and the same is
19    hereby amended by the addition thereto of a  NEW SECTION  ,  to  be
20    known and designated as Section 67-7716, Idaho Code, and to read as follows:

21        67-7716.  FUND  CREATED.    All funds paid to the commission for licensing
22    shall be deposited into the bingo and raffle  commission  fund  hereby  estab-
23    lished  in  the state treasurer's office.  Moneys in the fund are continuously
24    appropriated to the bingo and raffle commission for the conduct of  commission
25    activities provided in this chapter.

Statement of Purpose / Fiscal Impact

                       STATEMENT OF PURPOSE
                             RS07558

Amends the statute creating an independent Idaho Bingo and Raffle
Commission within the Department of Self-Governing Agencies, relieving
the State Lottery and restoring budgetary fiscal responsibility;
establishes a Bingo and Raffle Commission as a voluntary self-governing commission appointed by and serving at the pleasure of the
Governor; provides that the new Commission shall be totally self-sufficient supported solely from revenue derived from license fees.
                           FISCAL NOTE

Restoration of state lottery funds to schools and public buildings.

PROPOSED BUDGET GUIDELINES FOR BINGO/RAFFLE COMMISSION

Figures are based on an average of prior years records for license fees
collected by the Idaho Lottery.

         License fees generated annually have averaged approximately   $20,000
         Expenses projected:
Meeting (public; 5 ea Yr.)    $6,000
         Regional Travel Expenses       1,800
         Office Expenditures
 (postage, copies)             1,800
         Phone Expenses                 1,200
         Online and
 Printing Expense              2,000
         Administrative Travel
 Expense                         800

Total Projected Expenses     $13,600

Reserve Funds Available for Expenditure Adjustments                       $6,400

There will be no paid staff under this commission.  Volunteers will be utilized to
perform office tasks. 

NOTE:    Proposal reduces burden on state government with salaries of $58,746 and
         travel expense of criminal investigator of $2,538 charged against bingo/raffle
         by Idaho Lottery as compared to a budget of $20,000.00 proposed by commission.

CONTACT: Bruce L. Sweeney
         332-1351

S1383