1999 Legislation
Print Friendly

SENATE BILL NO. 1155 – Bingo Raffle Advisory Bd

SENATE BILL NO. 1155

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



S1155......................................................by STATE AFFAIRS
BINGO RAFFLE ADVISORY BOARD - Amends existing law relating to bingo and
raffles to provide definitions; to provide references to the Bingo Raffle
Advisory Board; to provide references to raffle events; to provide for an
annual report; to delete a requirement for recording payees of prizes over
$100; to increase the threshold for reporting for certain bingo operations
to $200,000 in annual gross revenues; to delete a limit of twelve raffles
per year for charitable organizations; to increase the threshold for
reporting for certain raffle events to $200,000 in annual gross revenues;
to provide for a license fee of $50.00 plus a percentage of the previous
year's gross sales; to provide that qualified unlicensed organizations may
apply for a special permit at county fairs; to provide that charitable or
nonprofit organizations conducting bingo or raffles shall be required to
register with the State Lottery but shall not be required to obtain a
license, file reports or pay certain fees, if the organization's gross
annual sales are less than $10,000; and to provide references to bingo
devices.

02/11    Senate intro - 1st rdg - to printing
02/12    Rpt prt - to St Aff
02/23    Rpt out - rec d/p - to 2nd rdg
02/24    2nd rdg - to 3rd rdg
03/01    3rd rdg - PASSED - 24-9-2
      AYES--Andreason, Boatright, Branch, Burtenshaw, Cameron, Danielson,
      Darrington, Davis, Deide, Dunklin, Geddes, Keough, King, McLaughlin,
      Richardson, Riggs, Risch, Sandy, Schroeder, Sorensen, Stegner,
      Stennett, Wheeler, Whitworth
      NAYS--Bunderson, Frasure, Hawkins, Ingram, Ipsen, Lee, Noh, Thorne,
      Twiggs
      Absent and excused--Crow, Parry
    Floor Sponsor - King
    Title apvd - to House
03/02    House intro - 1st rdg - to St Aff
03/18    Rpt out - rec d/p - to 2nd rdg
03/19    2nd rdg - to 3rd rdg
    Rules susp - PASSED - 33-26-11
      AYES -- Bieter, Bruneel, Chase, Clark, Cuddy, Deal, Gagner,
      Hansen(29), Henbest, Hornbeck, Jaquet, Jones, Judd, Kellogg, Kempton,
      Kunz, Limbaugh, Mader, McKague, Meyer(Duncan), Pischner, Pomeroy,
      Reynolds, Ridinger, Ringo, Robison, Sellman, Smith, Smylie, Stone,
      Watson, Zimmermann, Mr Speaker
      NAYS -- Barraclough, Bell, Black, Boe, Callister, Crow, Denney,
      Ellsworth, Field(13), Field(20), Geddes, Hadley, Hammond, Hansen(23),
      Kendell, Lake, Marley, Montgomery, Moyle, Sali, Schaefer, Stevenson,
      Stoicheff, Tippets, Wheeler, Wood
      Absent and excused -- Alltus, Barrett, Campbell, Gould, Linford,
      Loertscher, Mortensen, Taylor, Tilman, Trail, Williams
    Title apvd - to Senate
03/22    To enrol - rpt enrol - Pres signed - Sp signed
03/23    To Governor
03/29    Governor VETOED

Bill Text


S1155


                                                                        
 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fifth Legislature                 First Regular Session - 1999
                                                                        

                                      IN THE SENATE

                                   SENATE BILL NO. 1155

                                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 PROVIDE REFER-
 4        ENCES TO THE BINGO AND RAFFLE ADVISORY BOARD;  AMENDING  SECTION  67-7704,
 5        IDAHO  CODE, TO PROVIDE REFERENCES TO THE BINGO AND RAFFLE ADVISORY BOARD;
 6        AMENDING SECTION 67-7705, IDAHO CODE, TO PROVIDE REFERENCES TO  THE  BINGO
 7        AND  RAFFLE  ADVISORY BOARD; AMENDING SECTION 67-7706, IDAHO CODE, TO PRO-
 8        VIDE REFERENCES TO THE BINGO AND RAFFLE ADVISORY BOARD, TO PROVIDE  REFER-
 9        ENCES  TO RAFFLE EVENTS AND TO PROVIDE FOR AN ANNUAL REPORT; AMENDING SEC-
10        TION 67-7709, IDAHO CODE, TO DELETE A REQUIREMENT FOR RECORDING OF  PAYEES
11        OF  PRIZES OVER ONE HUNDRED DOLLARS, TO INCREASE THE THRESHOLD FOR REPORT-
12        ING FOR CERTAIN BINGO OPERATIONS TO TWO HUNDRED THOUSAND DOLLARS IN ANNUAL
13        GROSS REVENUES AND  TO  MAKE  A  TECHNICAL  CORRECTION;  AMENDING  SECTION
14        67-7710,  IDAHO  CODE,  TO  DELETE  A LIMIT OF TWELVE RAFFLES PER YEAR FOR
15        CHARITABLE ORGANIZATIONS AND TO INCREASE THE THRESHOLD FOR  REPORTING  FOR
16        CERTAIN RAFFLE EVENTS TO TWO HUNDRED THOUSAND DOLLARS IN ANNUAL GROSS REV-
17        ENUES;  AMENDING SECTION 67-7712, IDAHO CODE, TO PROVIDE FOR A LICENSE FEE
18        OF FIFTY DOLLARS PLUS A PERCENTAGE OF THE PREVIOUS YEAR'S GROSS SALES  AND
19        TO PROVIDE THAT QUALIFIED UNLICENSED ORGANIZATIONS MAY APPLY FOR A SPECIAL
20        PERMIT  AT COUNTY FAIRS FOR A FEE OF TWENTY-FIVE DOLLARS; AMENDING SECTION
21        67-7713, IDAHO CODE, TO PROVIDE THAT CHARITABLE OR NONPROFIT ORGANIZATIONS
22        CONDUCTING BINGO OR RAFFLES SHALL BE REQUIRED TO REGISTER WITH  THE  STATE
23        LOTTERY  BUT  SHALL NOT BE REQUIRED TO OBTAIN A LICENSE OR FILE REPORTS OR
24        PAY CERTAIN FEES IF THE ORGANIZATION'S GROSS ANNUAL SALES  ARE  LESS  THAN
25        TEN  THOUSAND  DOLLARS;  AMENDING  SECTION 67-7715, IDAHO CODE, TO PROVIDE
26        REFERENCES TO BINGO DEVICES; AND DECLARING AN EMERGENCY.

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

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

30        67-7702.  DEFINITIONS. As used in this chapter:
31        (1)  "Bingo"  means  the  traditional  game  of  chance played for a prize
32    determined prior to the start of the game.
33        (a)  Upon approval by the bingo    raffle    advisory  board  a
34        licensee  may  offer  bingo  games  in which players are allowed to select
35        their own numbers if the cards used to conduct  the  games  have  controls
36        that  provide an audit trail adequate to determine all winning number com-
37        binations.
38        (b)   Two-part disposable cards may be used if the  following  condi-
39        tions are met:
40     
41              (i)   The cards are printed on two-part, self-duplicating paper
42             that provides for an original and a duplicate copy;
43     


                                         2

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


                                         3

 1    in any one (1) day in which players are allowed to participate in bingo  games
 2    operated by a charitable or nonprofit organization.
 3        (11) "Special  permit"  means  a permit that can be obtained by charitable
 4    organizations who are not licensed but qualify to operate exempt bingo  opera-
 5    tions.   This  permit  allows  organizations  to operate bingo games at county
 6    fairs for the duration of the fair.
 7        (12) "Vendor" means an applicant, licensee, manufacturer,  distributor  or
 8    supplier  licensed  or  unlicensed  that furnishes or supplies bingo or raffle
 9    equipment, disposable or nondisposable cards and all related equipment for the
10    bingo or raffle function. 

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

13        67-7703.  BINGO    RAFFLE  ADVISORY BOARD ESTABLISHED. There is
14    established the bingo  raffle  advisory board, which is responsible
15    for making recommendations for the  improvement  of  bingo    and  raffle
16     operations and regulation to the state lottery commission, the governor
17    and the legislature, including recommendations for administrative rules.

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

20        67-7704.  BINGO  RAFFLE  ADVISORY BOARD -- MEMBERS --  APPOINT-
21    MENT  --  QUALIFICATIONS.  The  bingo  raffle  advisory board shall
22    consist of six (6) members appointed by the governor and confirmed by the sen-
23    ate. Members shall be selected and appointed because of their ability and dis-
24    position to serve the state's interest and for knowledge of  bingo    and
25    raffle  operations. Members appointed by the governor shall serve at the
26    pleasure of the governor, and must be residents over twenty-five (25) years of
27    age  who  have  experience  in  administrating, conducting or regulating bingo
28     and raffle  operations. There shall be one (1) member from each of
29    the following 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 shall be filled  in  the  same
48    manner  as  regular appointments are made, and the term shall be for the unex-
49    pired portion of the regular term. No member of the board shall have a  direct
50    or  indirect  pecuniary  interest in any contract or agreement entered into by
51    the board. No more than three (3) members of the board  shall  belong  to  the


                                         4

 1    same political party.

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

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

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

21        67-7706.  BINGO    RAFFLE   ADVISORY BOARD -- POWERS -- DUTIES.
22    The bingo  raffle  advisory board shall review  the  operation  and
23    regulation  of  bingo    games     and raffle events  in
24    Idaho, and shall make recommendations to the state lottery commission  regard-
25    ing, but not limited to, the following issues:
26        (1)  The  issuances  of  licenses  for the operation of bingo sessions and
27     games   raffle events , including the  denial,  suspen-
28    sion or revocation of licenses;
29        (2)  The  collection of fees, penalties, fines and other moneys from orga-
30    nizations conducting or applying to conduct  bingo  sessions  or    games
31      raffle events ;
32        (3)  The maintenance by bingo operators of records and the efficacy of the
33    statutes and rules requiring maintenance of records;
34        (4)  The recordation and reporting of income from bingo  games 
35      and raffle events  to the state lottery commission, and the effi-
36    cacy of the statutes and rules governing recordation and reporting;
37        (5)  The efficacy and  profitability  of  income  and  expenditure  limits
38    placed  on  organizations,  by  statute  or  rule,  operating  bingo  sessions
39    or  games   raffle events  in the state;
40        (6)  The type, scope, manner, and frequency of  bingo  sessions  or  
41    games     raffle events  conducted in Idaho, and the efficacy
42    of the statutes or rules governing those considerations;
43        (7)  Possible cooperative agreements with county, city,  and  other  local
44    and  state  agencies  that would enhance the safety and profitability of bingo
45    sessions and  games   raffle events ;
46        (8)  Possible written agreements or contracts with  other  states  or  any
47    agency or contractor of another state for the operation and promotion of joint
48    bingo   games   or raffle events  that would enhance the
49    safety and profitability of bingo  and raffle  operations in Idaho;
50        (9)  What rules should be promulgated by the state lottery  commission  to
51    ensure the safe, orderly and trustworthy operation of bingo  games 


                                         5

 1     and raffle events  in Idaho.
 2         The bingo advisory board shall, at least twice a year, report to the
 3    state lottery commission addressing the operations and activities of the advi-
 4    sory  board and the major issues facing bingo operators in the state.  A
 5    final annual report shall be provided to the governor, the lottery commission,
 6    the president pro tempore of the senate and the speaker of the house of repre-
 7    sentatives of the Idaho legislature.

 8        SECTION 6.  That Section 67-7709, Idaho Code, be, and the same  is  hereby
 9    amended to read as follows:

10        67-7709.  ACCOUNTING  AND USE OF BINGO PROCEEDS. (1) All funds received in
11    connection with a bingo game required to be licensed pursuant to this  chapter
12    and  the  rules  of the state lottery commission shall be placed in a separate
13    bank account. No funds may be disbursed from this account except the  charita-
14    ble  or  nonprofit  organization  may expend proceeds for prizes, advertising,
15    utilities and the purchase of supplies and equipment in playing  bingo,  taxes
16    and  license  fees  related to bingo, the payment of compensation, and for the
17    purposes set forth below for the remaining proceeds. Any proceeds available in
18    the account after payment of the above expenses shall inure to the  charitable
19    or  nonprofit organization to be used for religious, charitable, civic, scien-
20    tific testing, public safety, literary or educational purposes or for purchas-
21    ing, constructing, maintaining, operating or using equipment  or  land,  or  a
22    building or improvements thereto, owned, leased or rented by and for the char-
23    itable or nonprofit organization and used for civic purposes or made available
24    by the charitable or nonprofit organization for use by the general public from
25    time  to  time, or to foster amateur sports competition, or for the prevention
26    of cruelty to children or animals, provided that no proceeds shall be used  or
27    expended  directly  or  indirectly  to  compensate  officers  or directors. No
28    employees of the charitable organization may be compensated  from  bingo  pro-
29    ceeds  except as provided in this subsection. All gross revenues received from
30    bingo games by a charitable or nonprofit organization must be disbursed in the
31    following manner, unless otherwise provided in section  67-7708,  Idaho  Code:
32    not more than sixty-five percent (65%) of the gross revenues shall be utilized
33    for prizes in the charitable bingo game, not less than twenty percent (20%) of
34    gross  revenues  shall be used for charitable purposes enumerated in this sub-
35    section and not more than fifteen percent (15%) of the gross revenues shall be
36    used for administrative expenses associated with the charitable bingo game. If
37    agreed upon by its board of directors, a charitable organization may  decrease
38    gross  revenues  spent  on administrative expenses associated with bingo games
39    and allocate those revenues to prizes so long as no more than seventy  percent
40    (70%) of the gross revenues is utilized for prizes on the bingo game. Two hun-
41    dred  fifty dollars ($250) or one-tenth of one percent (. 00 1%) of
42    annual gross revenues, as per the previous year's annual bingo  report  which-
43    ever is greater may be paid as wages for the conduct of any one (1) bingo ses-
44    sion.  Such  pay  shall be on an hourly basis and shall be directly related to
45    the preparation, conduct of and cleaning  following  a  bingo  session.   Such
46    wages  shall  be  part  of  the  fifteen percent (15%) gross revenues used for
47    administrative expenses. An organization requesting an exemption from the dis-
48    bursement percentages provided in this subsection for administrative costs may
49    request an exemption from the state lottery commission.
50        (2)  Any charitable or nonprofit organization conducting bingo games  pur-
51    suant  to  this  chapter shall prepare a statement at the close of its license
52    year and shall file such statement with the state lottery. The statement shall
53    be prepared on a form prescribed by the lottery commission and shall  include,


                                         6

 1    at a minimum, the following information:
 2        (a)  The  number  of bingo sessions conducted or sponsored by the licensed
 3        organization;
 4        (b)  The location and date at which each bingo session was conducted;
 5        (c)  The gross revenues of each bingo session;
 6        (d)  The fair market value of any prize given at each bingo session;
 7        (e)  The amount paid in prizes at each session;
 8        (f)  The amount paid to the charitable organization;
 9        (g)  All disbursements from bingo revenue and the purpose  of  those  dis-
10        bursements  must  be documented on a general ledger and submitted with the
11        annual bingo report to the Idaho lottery commission; and
12        (h)  An accounting of all gross revenues and the disbursements required by
13        statute and rule of the state lottery commission must be retained in  per-
14        manent  records  with  the  organization , including the date of each
15        transaction and the name and address of each payee for all prize  payments
16        in excess of one hundred dollars ($100) .
17        (3)  Any person who shall willfully or knowingly furnish, supply or other-
18    wise  give  false  information in any statement filed pursuant to this section
19    shall be guilty of a misdemeanor.
20        (4)  All financial books, papers, records and documents of an organization
21    shall be kept as determined by rule of the state lottery and shall be open  to
22    inspection  by the county sheriff of the county, or the chief of police of the
23    city, or the prosecuting attorney of the county where the bingo game was held,
24    or the attorney general or the state lottery at reasonable  times  and  during
25    reasonable hours.
26        (5)  Every  charitable  or nonprofit organization whose annual gross reve-
27    nues exceed  one   two  hundred  fifty  thou-
28    sand dollars ($ 15  20  0,000)  from  the  operation  of
29    bingo  games shall provide the state lottery with a copy of an annual audit of
30    the bingo operation. The audit shall be performed  by  an  independent  public
31    accountant  and submitted within ninety (90) days after the end of the license
32    year.

33        SECTION 7.  That Section 67-7710, Idaho Code, be, and the same  is  hereby
34    amended to read as follows:

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


                                         7

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

28        SECTION  8.  That  Section 67-7712, Idaho Code, be, and the same is hereby
29    amended to read as follows:

30        67-7712.  LICENSE FEES -- SUSPENSION OR REVOCATION. (1) Each  organization
31    that applies to the state lottery for a license pursuant to this chapter shall
32    pay  annually  to the state lottery a nonrefundable license fee which shall be
33    due upon submission of the application. License fees shall  be  based  on  the
34    organization's  gross  revenues from bingo or raffle operations as required to
35    be reported by statute or rule of the  commission.  Organizations    with
36    gross  revenues  of twenty-five thousand dollars ($25,000) or less shall pay a
37    fee of one hundred  dollars  ($100).  Organizations  with  gross  revenues  of
38    twenty-five  thousand  dollars  ($25,000)  to  seventy-five  thousand  dollars
39    ($75,000)  shall  pay  a fee of two hundred dollars ($200). Organizations with
40    gross revenues exceeding seventy-five thousand dollars ($75,000) shall  pay  a
41    fee of three hundred dollars ($300)   shall pay a fee of fifty dol-
42    lars  ($50.00) plus .002 percent of the previous year's gross sales from bingo
43    and/or raffles . New organizations with no  history  of  gross  revenues
44    shall   pay   a   fee  of   one hundred   fifty  dollars
45    ($ 1  50. 00), and the gross revenues indicated  in  the
46    organization's  first  annual  report shall determine the license renewal fee.
47     Qualifying unlicensed organizations may apply for a  special  permit  at
48    county fairs for an annual fee of twenty-five dollars ($25.00). 
49        (2)  Any  license  issued  pursuant  to this chapter shall be suspended or
50    revoked by the state lottery if it is found that the licensee  or  any  person
51    connected  with the licensee has violated any provision of this chapter or any
52    rule of the lottery commission or ordinance of a county  adopted  pursuant  to
53    this chapter or:


                                         8

 1        (a)  Has continued to operate bingo sessions or games after losing its tax
 2        exempt  or nonprofit status or ceases to exercise independent control over
 3        its activities or budget as required under the provisions of this chapter;
 4        (b)  Has violated or has failed or refused to comply with  the  provisions
 5        of  this  chapter, or has violated the provisions of a rule of the lottery
 6        commission or has allowed such a violation to  occur  upon  premises  over
 7        which the licensee has substantial control;
 8        (c)  Has  knowingly caused, aided or abetted, or conspired with another to
 9        cause, any person to  fail  or  refuse  to  comply  with  the  provisions,
10        requirements, conditions, limitation or duties imposed in this chapter, or
11        to  fail or refuse to comply with a rule adopted by the state lottery com-
12        mission;
13        (d)  Has obtained a license or permit by fraud, misrepresentation or  con-
14        cealment, or through inadvertence or mistake;
15        (e)  Has  been  convicted,  forfeited bond, or has been granted a withheld
16        judgment, upon a charge involving forgery, theft, willful failure to  make
17        required  payments  or  reports  to a governmental agency at any level, or
18        filing false reports to a governmental agency, or any similar  offense  or
19        offenses, or of bribing or otherwise unlawfully influencing a public offi-
20        cial  or  employee  of  any  state  or the United States, or of any crime,
21        whether a felony or misdemeanor,  involving  gambling  activity,  physical
22        injury to individuals or moral turpitude;
23        (f)  Denies the state lottery access to any place where a licensed game is
24        conducted, denies access to any law enforcement officer, or fails promptly
25        to  produce  for  inspection  or audit any records or items as required by
26        law;
27        (g)  Fails to have  the  license  available  for  verification  where  the
28        licensed game is conducted;
29        (h)  Misrepresents or fails to disclose to the state lottery or any inves-
30        tigating law enforcement officer any material fact;
31        (i)  Fails  to  demonstrate  to  the state lottery by clear and convincing
32        evidence, qualifications for the license according to state  law  and  the
33        rules of the state lottery establishing such qualifications;
34        (j)  Is subject to current prosecution or pending charges, or to a convic-
35        tion regardless of whether it has been appealed, for any offense described
36        in paragraph (e) of this subsection. At the request of an applicant for an
37        original  license,  the state lottery may defer decision upon the applica-
38        tion during the pendency of the prosecution or appeal;
39        (k)  Has pursued or is pursuing economic gain in a manner or context which
40        violates criminal or civil public policy of this state and creates a  rea-
41        sonable  belief  that the participation of the person in gaming operations
42        by charitable or nonprofit organizations would be harmful  to  the  proper
43        operation of a lawful bingo or raffle.
44        (3)  The state lottery may, upon its own motion or upon a written verified
45    complaint  of  any  other  person,  investigate  the  operation  of any gaming
46    purportedly authorized in this chapter. If the state  lottery  has  reasonable
47    cause  to believe that any gaming as described in this chapter violates any of
48    the provisions of this chapter or rules promulgated pursuant to this  chapter,
49    it may, in its discretion revoke, cancel, rescind or suspend any license for a
50    period  not to exceed one (1) year, or it may refuse to grant a renewal of the
51    license or it may take other action as may be appropriate under this  act  and
52    any  rules promulgated pursuant to this act. If the state lottery shall refuse
53    to grant a license or refuse to grant a renewal of a license or  revoke,  can-
54    cel,  rescind  or  suspend  a license, it shall give the applicant or licensee
55    fifteen (15) calendar days' written notice of its intended action stating gen-


                                         9

 1    erally the basis for its action. Within the fifteen (15) calendar  day  notice
 2    period,  the  applicant or licensee shall indicate its acceptance of the deci-
 3    sion of the state lottery or shall request a hearing to be held  in  the  same
 4    manner  as hearings in contested cases pursuant to chapter 52, title 67, Idaho
 5    Code. The hearing shall be  conducted  within  twenty-one  (21)  days  of  the
 6    request.  The  applicant or licensee may appeal the decision of the state lot-
 7    tery after the hearing within the same time and manner as provided  for  judi-
 8    cial  review  of actions pursuant to chapter 52, title 67, Idaho Code. Failure
 9    to make the request for a hearing as provided herein, shall render  the  deci-
10    sion of the state lottery final and not subject to further appeal.

11        SECTION  9.  That  Section 67-7713, Idaho Code, be, and the same is hereby
12    amended to read as follows:

13        67-7713.  EXEMPTION FROM LICENSURE REQUIREMENTS. A charitable or nonprofit
14    organization conducting a bingo  game    and/or  raffle  event  shall  be
15    required  to register with the state lottery, but  shall not be required
16    to obtain a license, file reports or pay fees pursuant to this chapter if  the
17    organization   conducts   conducting  a bingo game 
18    and the maximum prize offered or paid for any one (1) game of bingo  does  not
19    exceed  two  hundred fifty dollars ($250) and the maximum amount of prizes, in
20    cash and/or merchandise at fair market value offered during any one  (1)  ses-
21    sion  of  bingo does not exceed one thousand dollars ($1,000). A charitable or
22    nonprofit organization conducting a raffle shall not be required to  obtain  a
23    license, file reports or pay fees pursuant to this chapter if the organization
24    conducts  a raffle in which the aggregate amount of prizes does not exceed one
25    thousand dollars ($1,000) in cash or if merchandise used as a prize or  prizes
26    does  not  have a maximum fair market value in excess of five thousand dollars
27    ($5,000)   and/or raffle event has gross annual sales of less  than
28    ten thousand dollars ($10,000) .

29        SECTION  10.  That Section 67-7715, Idaho Code, be, and the same is hereby
30    amended to read as follows:

31        67-7715.  VENDORS -- LICENSING -- FEES. (1) No person or entity shall man-
32    ufacture, sell, distribute, furnish or supply to  any  person  or  entity  any
33      gaming   bingo  device, equipment or material, in this
34    state or for use in this state, without first  obtaining  a  vendor's  license
35    from  the state lottery commission. Vendor licenses shall not be issued by the
36    state lottery except respecting  bingo  devices, equipment or mate-
37    rial designed and permitted to be used in connection  with  activities  autho-
38    rized  under  this  chapter. Provided however, that this licensing requirement
39    shall apply only insofar as the state lottery  commission  has  adopted  rules
40    implementing it as to particular categories of  gaming   bingo
41     devices and related material and equipment.
42        (2)  Any person or entity that manufactures, sells, distributes, furnishes
43    or  supplies  any   gaming   bingo  device, equipment or
44    material, in this state or for use in this state shall make application for  a
45    vendor  license  to  the  state  lottery.  The  state lottery shall review the
46    license application and shall approve or deny the issuing of a license  within
47    fifteen  (15)  calendar  days of receipt of the license application. The state
48    lottery may deny the application if it determines that the applicant  has  not
49    met  the  requirements  imposed  in this act and rules promulgated pursuant to
50    this act. Whenever an application is denied,  it  shall  be  returned  to  the
51    applicant  by the state lottery with specific reasons for the denial. When the


                                         10

 1    license application is approved by the state lottery, the state lottery  shall
 2    issue a license to the applicant.
 3        (3)  Each  application and renewal application shall contain the following
 4    information:
 5        (a)  The name, address, date of birth, driver's license number and  social
 6        security  number  of  the applicant and if the applicant is a corporation,
 7        proprietorship, association, partnership or other  similar  legal  entity,
 8        the  name, home address, date of birth, driver's license number and social
 9        security number of each of the  officers  of  the  corporation  and  their
10        spouses,  as  well  as  the  name  and  address of the directors and their
11        spouses, or other persons similarly situated.
12        (b)  The locations or persons with which the applicant  will  provide  any
13          gaming     bingo  device, equipment or material in
14        this state or for use in this state.
15        (4)  Any licensee under this section shall submit an annual revenue report
16    to the Idaho lottery commission within thirty (30) days  of  the  end  of  the
17    licensed  year  on  the prescribed forms provided by the Idaho lottery commis-
18    sion.
19        (5)  Each applicant shall pay annually to the state lottery  a  nonrefund-
20    able license fee of two hundred dollars ($200) which shall be due upon submis-
21    sion of the application.
22        (6)  Any  license  issued  pursuant  to this chapter shall be suspended or
23    revoked by the state lottery if it is found that the licensee  or  any  person
24    connected  with  the licensee has violated any provision of this chapter, par-
25    ticularly those in section 67-7712, Idaho Code, or any  rule  of  the  lottery
26    commission.

27        SECTION  11.  An  emergency  existing  therefor, which emergency is hereby
28    declared to exist, this act shall be in full force and effect on and after its
29    passage and approval.

Statement of Purpose / Fiscal Impact


                      STATEMENT OF PURPOSE

                            RS08783C1

Amends the statute to change the name to Bingo Raffle Advisory
Board; to include the overseeing of raffles organizations in
eliminating some infractions now being done outside the
provisions of the Idaho Code; to provide for all games to
register with Idaho lottery to enable the operators/managers
to receive guidance, current Gaming Rules; changes in
legislation and newsletters at no charge until their annual
gross revenue reaches $10,000.00 or more; organizations over
that amount would have their license fees computed by simple
equation that all can follow; $50.00, plus .002% of the
previous year's income. New licenses would be $50.00 until
they get a history. License fees at present are unequitable.

Provides for special permits for county fairs at $25.00 for
the run of the fair.

Removes the limit on raffles - as many scholarships are
provided for in this manner.

Amends the requirement for a copy of an annual audit on bingo
operations to Idaho lottery from $150,000 to $200,000.00 by an
independent public accountant.





                           FISCAL NOTE


NONE




CONTACT: Senator Robbi King 332-1339






STATEMENT OF PURPOSE/ FISCAL NOTE     Sll55