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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
S1155|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature First Regular Session - 1999IN 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-39tions are met:4041(i) The cards are printed on two-part, self-duplicating paper42that provides for an original and a duplicate copy;432 1(ii) Players shall mark their numbers on each card in a dis-2tinct, clear, and legible manner prior to separation of the duplicate3and original cards. Operators shall establish and set forth in plain4view house rules setting out any conditions by which an entry may be5added, deleted or changed prior to separation. Any changes must be6verified by a worker authorized by the bingo manager.78(iii) The player retains and plays the duplicate copy. All9winning cards and their duplicate copies shall be retained by the10operator as a part of its daily bingo records.1112(c) Upon approval by the bingo advisory board, bingo games may also13include bonanzas and other approved blackout gamesCard 14 minding devices shall conform to manufacturers' standards. Auto daubing 15 features are prohibited . 16 (dc ) 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 bingogamesand 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 27gamesraffle 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 orgames31raffle 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 bingogames35 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 orgamesraffle events in the state; 40 (6) The type, scope, manner, and frequency of bingo sessions or41gamesraffle 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 andgamesraffle 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 bingogamesor 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 bingogames5 1 and raffle events in Idaho. 2The bingo advisory board shall, at least twice a year, report to the3state lottery commission addressing the operations and activities of the advi-4sory 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 (.001%) 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 each15transaction and the name and address of each payee for all prize payments16in 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 exceedonetwo hundredfiftythou- 28 sand dollars ($1520 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-48zation 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 (43 ) 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 (54 ) 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 (65 ) Every charitable or nonprofit organization 22 whose annual gross revenues exceedonetwo hundred 23fiftythousand dollars ($1520 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. Organizationswith36gross revenues of twenty-five thousand dollars ($25,000) or less shall pay a37fee of one hundred dollars ($100). Organizations with gross revenues of38twenty-five thousand dollars ($25,000) to seventy-five thousand dollars39($75,000) shall pay a fee of two hundred dollars ($200). Organizations with40gross revenues exceeding seventy-five thousand dollars ($75,000) shall pay a41fee 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 ofone hundredfifty dollars 45 ($150. 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 organizationconductsconducting a bingo game18and the maximum prize offered or paid for any one (1) game of bingo does not19exceed two hundred fifty dollars ($250) and the maximum amount of prizes, in20cash and/or merchandise at fair market value offered during any one (1) ses-21sion of bingo does not exceed one thousand dollars ($1,000). A charitable or22nonprofit organization conducting a raffle shall not be required to obtain a23license, file reports or pay fees pursuant to this chapter if the organization24conducts a raffle in which the aggregate amount of prizes does not exceed one25thousand dollars ($1,000) in cash or if merchandise used as a prize or prizes26does not have a maximum fair market value in excess of five thousand dollars27($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 33gamingbingo 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 ofgamingbingo 41 devices and related material and equipment. 42 (2) Any person or entity that manufactures, sells, distributes, furnishes 43 or supplies anygamingbingo 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 13gamingbingo 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
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