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H0650aa,aaS................................................by STATE AFFAIRS
BINGO-RAFFLE ADVISORY BOARD - Amends existing law to provide for a
Bingo-Raffle Advisory Board; and to revise and update procedures and the
statute regarding the Bingo-Raffle Advisory Board.
02/21 House intro - 1st rdg - to printing
02/22 Rpt prt - to St Aff
03/01 Rpt out - to Gen Ord
03/03 Rpt out amen - to engros
03/06 Rpt engros - 1st rdg - to 2nd rdg as amen
03/07 2nd rdg - to 3rd rdg as amen
03/13 3rd rdg as amen - PASSED - 63--6-1
AYES -- Alltus, Barraclough, Bell, Bieter, Black, Boe, Bruneel,
Callister, Campbell, Chase, Cheirrett, Clark, Crow, Cuddy, Deal,
Denney, Ellsworth, Field(13), Field(20), Gagner, Geddes, Gould,
Hadley, Hammond, Hansen(23), Henbest, Hornbeck, Jaquet, Jones, Judd,
Kellogg, Kempton, Kendell, Kunz, Lake, Linford, Loertscher, Mader,
Marley, McKague, Meyer, Montgomery, Mortensen, Moss, Moyle, Pearce,
Pischner, Pomeroy, Reynolds, Ridinger, Ringo, Robison, Schaefer,
Sellman, Shepherd, Smith, Smylie, Stevenson, Stoicheff, Stone,
Tilman, Trail, Zimmermann
NAYS -- Barrett, Sali, Taylor, Wheeler, Wood, Mr Speaker
Absent and excused -- Hansen(29)
Floor Sponsor - Meyer
Title apvd - to Senate
03/14 Senate intro - 1st rdg as amen - to St Aff
03/20 Rpt out - rec d/p - to 2nd rdg as amen
03/21 2nd rdg - to 3rd rdg as amen
03/31 3rd rdg as amen - to 14th Ord
04/04 Rpt out amen - to 1st rdg as amen
Rls susp - PASSED - 35-0-0
AYES--Andreason, Boatright, Bunderson, Burtenshaw, Cameron, Crow,
Danielson, Darrington, Davis, Deide, Dunklin, Frasure, Geddes,
Hawkins, Ingram, Ipsen, Keough, King-Barrutia, Lee, McLaughlin, Noh,
Parry, Richardson, Riggs, Risch, Sandy, Schroeder, Sorensen, Stegner,
Stennett, Thorne, Walton, Wheeler, Whitworth, Williams
NAYS--None
Absent and excused--None
Floor Sponsor - Boatright
Title apvd - to House
04/05 House concur in Senate amen - to engros
1st rdg - to 2nd rdg as amen
Rls susp - PASSED - 49-6-15
AYES -- Barraclough(Barraclough), Bell, Bieter, Black, Boe, Bruneel,
Campbell, Cheirrett, Crow, Cuddy, Deal, Denney, Ellsworth, Field(13),
Field(20), Hadley, Hammond, Henbest, Hornbeck, Jaquet, Judd, Kellogg,
Kempton, Kunz, Linford, Mader, Marley, McKague, Meyer, Montgomery,
Mortensen, Moyle, Pearce, Pischner, Pomeroy, Reynolds, Ridinger,
Ringo, Robison, Sellman, Shepherd, Smylie, Stevenson, Stoicheff,
Stone, Taylor, Tilman, Trail, Zimmermann
NAYS -- Barrett, Geddes, Kendell, Sali, Schaefer, Wood
Absent and excused -- Alltus, Callister, Chase, Clark, Gagner, Gould,
Hansen(23), Hansen(29), Jones, Lake, Loertscher(Loertscher), Moss,
Smith, Wheeler, Mr Speaker
Floor Sponsor - Meyer
Title apvd - to enrol - rpt enrol - Sp signed
04/06 Pres signed
04/07 To Governor
04/14 Governor signed
Session Law Chapter 340
Effective: 07/01/00
H0650
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fifth Legislature Second Regular Session - 2000
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 650, As Amended, As Amended in the Senate
BY STATE AFFAIRS COMMITTEE
1 AN ACT
2 RELATING TO BINGO; AMENDING SECTION 67-7702, IDAHO CODE, TO REVISE DEFINI-
3 TIONS; AMENDING SECTION 67-7703, IDAHO CODE, TO PROVIDE FOR A BINGO-RAFFLE
4 ADVISORY BOARD; AMENDING SECTION 67-7704, IDAHO CODE, TO PROVIDE FOR
5 APPOINTMENT AND QUALIFICATIONS OF MEMBERS OF THE BINGO-RAFFLE ADVISORY
6 BOARD; AMENDING SECTION 67-7705, IDAHO CODE, TO PROVIDE FOR A QUORUM,
7 MEETINGS, MINUTES AND COMPENSATION OF THE BINGO-RAFFLE ADVISORY BOARD;
8 AMENDING SECTION 67-7706, IDAHO CODE, TO PROVIDE POWERS AND DUTIES OF THE
9 BINGO-RAFFLE ADVISORY BOARD; AMENDING SECTION 67-7707, IDAHO CODE, TO PRO-
10 VIDE THAT NO PERSON UNDER THE AGE OF EIGHTEEN MAY PLAY BINGO IN GAMES
11 WHERE A CASH PRIZE IS OFFERED OR IN GAMES WHERE THE PRIZE EXCEEDS TWENTY-
12 FIVE DOLLARS IN VALUE FOR MERCHANDISE; AMENDING SECTION 67-7709, IDAHO
13 CODE, TO MAKE AN ARITHMETIC CORRECTION AND TO INCREASE THE AMOUNT OF GROSS
14 REVENUES RECEIVED BY A CHARITABLE ORGANIZATION FROM BINGO BEFORE A CHARI-
15 TABLE ORGANIZATION NEEDS TO PROVIDE THE STATE LOTTERY WITH AN AUDIT;
16 AMENDING SECTION 67-7710, IDAHO CODE, TO PROVIDE THAT A PUBLIC OR PRIVATE
17 ELEMENTARY OR SECONDARY SCHOOL LOCATED IN THIS STATE MAY HAVE UNLIMITED
18 RAFFLES IN A YEAR, TO REVISE THE MAXIMUM AGGREGATE VALUE OF A CASH PRIZE
19 FOR A DUCK RACE AND TO INCREASE THE AMOUNT OF GROSS REVENUES RECEIVED BY A
20 CHARITABLE ORGANIZATION FROM THE OPERATION OF RAFFLE EVENTS BEFORE IT
21 NEEDS TO PROVIDE AN AUDIT TO THE STATE LOTTERY; AMENDING SECTION 67-7711,
22 IDAHO CODE, TO PROVIDE A CORRECT STATUTORY CITATION AND TO CLARIFY THAT
23 EXEMPT PERSONS, CHARITABLE OR NONPROFIT ORGANIZATIONS DO NOT RECEIVE A
24 LICENSE FROM THE STATE LOTTERY; AMENDING SECTION 67-7713, IDAHO CODE, TO
25 PROVIDE WHEN A CHARITABLE OR NONPROFIT ORGANIZATION OPERATING A BINGO GAME
26 OR RAFFLE SHALL BE REQUIRED TO OBTAIN A LICENSE; AND AMENDING SECTION
27 67-7715, IDAHO CODE, TO PROVIDE FOR A FIVE HUNDRED DOLLAR LICENSE FEE.
28 Be It Enacted by the Legislature of the State of Idaho:
29 SECTION 1. That Section 67-7702, Idaho Code, be, and the same is hereby
30 amended to read as follows:
31 67-7702. DEFINITIONS. As used in this chapter:
32 (1) "Bingo" means the traditional game of chance played for a prize
33 determined prior to the start of the game.
34 (a) Upon approval by the bingo-raffle advisory board a licensee may offer
35 bingo games in which players are allowed to select their own numbers if
36 the cards used to conduct the games have controls that provide an audit
37 trail adequate to determine all winning number combinations.
38 (b) Two-part disposable cards may be used if the following conditions are
39 met:
40 (i) The cards are printed on two-part, self-duplicating paper that
41 provides for an original and a duplicate copy;
42 (ii) Players shall mark their numbers on each card in a distinct,
43 clear, and legible manner prior to separation of the duplicate and
2
1 original cards. Operators shall establish and set forth in plain view
2 house rules setting out any conditions by which an entry may be
3 added, deleted or changed prior to separation. Any changes must be
4 verified by a worker authorized by the bingo manager.
5 (iii) The player retains and plays the duplicate copy. All winning
6 cards and their duplicate copies shall be retained by the operator as
7 a part of its daily bingo records.
8 (c) Upon approval by the bingo advisory board, bingo games may also
9 include bonanzas and other approved blackout games Card-minding devices
10 are prohibited. Autodaubing features are prohibited.
11 (dc) Bingo shall not include "instant bingo" which is a game of chance
12 played by the selection of one (1) or more prepackaged bingo cards, with
13 the winner determined by the appearance of a preprinted winning designa-
14 tion on the bingo card.
15 (2) "Bingo-raffle advisory board" means a board of six (6) persons chosen
16 by the governor to make advisory recommendations regarding bingo and raffle
17 operations and regulation in Idaho.
18 (3) "Charitable organization" means an organization that has been in con-
19 tinuous existence in the county of operation of the charitable bingo game or
20 raffle for at least one (1) year and that is exempt from taxation under sec-
21 tion 501(c)(3), 501(c)(4), 501(c)(6), 501(c)(8), 501(c)(10), 501(c)(19) or
22 501(d) of the Internal Revenue Code and is exempt from income taxation under
23 title 63, Idaho Code, as a bona fide nonprofit charitable, civic, religious,
24 fraternal, patriotic or veterans organization or as a nonprofit volunteer fire
25 department, or as a nonprofit volunteer rescue squad, or as a nonprofit volun-
26 teer educational booster group, parent-teacher organization or association. If
27 the organization has local branches or chapters, the term "charitable organi-
28 zation" means the local branch or chapter operating the bingo or raffle game.
29 (4) "Commission" means the Idaho state lottery commission as defined in
30 section 67-7404, Idaho Code.
31 (5) "Duck race" means a charitable raffle played by releasing numbered,
32 inanimate toys (ducks) into a body of moving water. A person who has been
33 assigned the same number as the first duck to cross a predetermined point in
34 the water (the finish line) is the winner. Other prizes may be awarded on the
35 basis of the order in which the ducks cross the finish line. With the excep-
36 tion of determining "net proceeds," all restrictions and requirements applica-
37 ble to the conduct of charitable raffles in this chapter shall also apply to
38 the conduct of duck races.
39 (6) "Gross revenues" shall mean all moneys paid by players during a bingo
40 game or session for the playing of bingo or raffle event and shall not include
41 money paid for concessions.
42 (7) "Nonprofit organization" means an organization incorporated under
43 chapter 3, title 30, Idaho Code, or an unincorporated association recognized
44 under chapter 7, title 53, Idaho Code.
45 (8) "Organization" means a charitable organization or a nonprofit organi-
46 zation.
47 (9) "Raffle" means a game in which the prize is won by random drawing of
48 the name or number of one (1) or more persons purchasing chances.
49 (10) "Session" means a period of time not to exceed eight (8) hours in any
50 one (1) day in which players are allowed to participate in bingo games oper-
51 ated by a charitable or nonprofit organization.
52 (11) "Special permit" means a permit that can be obtained by a charitable
53 organization that is not licensed but qualifies to operate an exempt bingo
54 operation. This permit allows a qualifying organization to operate bingo games
55 at a county fair for the duration of the fair.
3
1 (12) "Vendor" means an applicant, licensee or manufacturer, distributor or
2 supplier licensed or unlicensed that furnishes or supplies bingo or raffle
3 equipment, disposable or nondisposable cards and any and all related gaming
4 equipment.
5 SECTION 2. That Section 67-7703, Idaho Code, be, and the same is hereby
6 amended to read as follows:
7 67-7703. BINGO-RAFFLE ADVISORY BOARD ESTABLISHED. There is established
8 the bingo-raffle advisory board, which is responsible for making recommenda-
9 tions for the improvement of bingo and raffle operations and regulation to the
10 state lottery commission, the governor and the legislature, including recom-
11 mendations for administrative rules.
12 SECTION 3. That Section 67-7704, Idaho Code, be, and the same is hereby
13 amended to read as follows:
14 67-7704. BINGO-RAFFLE ADVISORY BOARD -- MEMBERS -- APPOINTMENT -- QUALI-
15 FICATIONS. The bingo-raffle advisory board shall consist of six (6) members
16 appointed by the governor and confirmed by the senate. Members shall be
17 selected and appointed because of their ability and disposition to serve the
18 state's interest and for knowledge of bingo and raffle operations. Members
19 appointed by the governor shall serve at the pleasure of the governor, and
20 must be residents over twenty-five (25) years of age who have experience in
21 administrating, conducting or regulating bingo operations. There shall be one
22 (1) member from each of the following six (6) districts initially established
23 as follows:
24 District No. 1. The counties of Benewah, Bonner, Boundary, Kootenai and
25 Shoshone.
26 District No. 2. The counties of Clearwater, Idaho, Latah, Lewis and Nez
27 Perce.
28 District No. 3. The counties of Ada, Adams, Boise, Canyon, Elmore, Gem,
29 Payette, Owyhee, Valley and Washington.
30 District No. 4. The counties of Blaine, Camas, Cassia, Gooding, Jerome,
31 Lincoln, Minidoka and Twin Falls.
32 District No. 5. The counties of Bannock, Bear Lake, Bingham, Caribou,
33 Franklin, Oneida and Power.
34 District No. 6. The counties of Bonneville, Butte, Clark, Custer, Fremont,
35 Jefferson, Lemhi, Madison and Teton.
36 The terms of appointed members of the bingo-raffle advisory board shall
37 expire as designated by the governor at the time of appointment. The first six
38 (6) members shall be appointed for staggered terms. be three (3) years, except
39 that the members first appointed shall be those serving as members of the
40 bingo advisory board on July 1, 2000, each to hold office for the balance of
41 his or her term for which appointed which shall be as follows:
42 The terms of the members from District No. 1 and District No. 4 shall
43 expire the first Monday of January 2001.
44 The terms of the members from District No. 2 and District No. 5 shall
45 expire the first Monday of January 2002.
46 The terms of the members from District No. 3 and District No. 6 shall
47 expire the first Monday of January 2003. At the end of a term, a member
48 continues to serve until a successor is appointed and qualifies. A member
49 who is appointed after a term has begun serves only for the rest of the
50 term and until a successor is appointed and qualifies. A vacancy of the
51 board shall be filled in the same manner as regular appointments are made,
4
1 and the term shall be for the unexpired portion of the regular term. No
2 member of the board shall have a direct or indirect pecuniary interest in
3 any contract or agreement entered into by the board. No more than three
4 (3) members of the board shall belong to the same political party.
5 SECTION 4. That Section 67-7705, Idaho Code, be, and the same is hereby
6 amended to read as follows:
7 67-7705. QUORUM -- MEETINGS -- MINUTES -- COMPENSATION. A majority of the
8 qualified membership of the bingo-raffle advisory board is a quorum. The advi-
9 sory board may not act unless at least four (4) members agree. The advisory
10 board shall meet at least three (3) times per year, and may meet more often as
11 it deems necessary. Written notice of the time and place of each meeting shall
12 be given to each board member. The advisory board shall select or elect one
13 (1) of its members to be chairman, one (1) of its members to be vice-chairman
14 and one (1) of its members to be secretary. The secretary of the advisory
15 board shall promptly send the lottery commission a certified copy of the min-
16 utes of each meeting of the advisory board. The minutes shall include a copy
17 of the current recommendations of the board, including recommended administra-
18 tive rules. Members of the bingo-raffle advisory board shall receive compensa-
19 tion as provided in section 59-509(b), Idaho Code. Members are entitled to
20 reimbursement for reasonable travel expenses incurred in the performance of
21 their duties as a member, as provided by law.
22 SECTION 5. That Section 67-7706, Idaho Code, be, and the same is hereby
23 amended to read as follows:
24 67-7706. BINGO-RAFFLE ADVISORY BOARD -- POWERS -- DUTIES. The
25 bingo-raffle advisory board shall review the operation and regulation of bingo
26 games and raffle events in Idaho, and shall make recommendations to the state
27 lottery commission regarding, but not limited to, the following issues:
28 (1) The issuances of licenses for the operation of bingo sessions and
29 games and raffle events, including the denial, suspension or revocation of
30 licenses;
31 (2) The collection of fees, penalties, fines and other moneys from orga-
32 nizations conducting or applying to conduct bingo sessions or games and/or
33 raffle events;
34 (3) The maintenance by bingo operators of records and the efficacy of the
35 statutes and rules requiring maintenance of records;
36 (4) The recordation and reporting of income from bingo games and raffle
37 events to the state lottery commission, and the efficacy of the statutes and
38 rules governing recordation and reporting;
39 (5) The efficacy and profitability of income and expenditure limits
40 placed on organizations, by statute or rule, operating bingo sessions or games
41 and/or raffle events in the state;
42 (6) The type, scope, manner, and frequency of bingo sessions or games
43 and/or raffle events conducted in Idaho, and the efficacy of the statutes or
44 rules governing those considerations;
45 (7) Possible cooperative agreements with county, city, and other local
46 and state agencies that would enhance the safety and profitability of bingo
47 sessions and games and/or raffle events;
48 (8) Possible written agreements or contracts with other states or any
49 agency or contractor of another state for the operation and promotion of joint
50 bingo games and/or raffle events that would enhance the safety and
51 profitability of bingo and raffle operations in Idaho;
5
1 (9) What rules should be promulgated by the state lottery commission to
2 ensure the safe, orderly and trustworthy operation of bingo games and/or raf-
3 fle events in Idaho.
4 The bingo-raffle advisory board shall, at least twice a year, report to
5 the state lottery commission addressing the operations and activities of the
6 advisory board and the major issues facing bingo operators in the state. A
7 final annual report shall be provided to the governor, the lottery commission,
8 the president pro tempore of the senate and the speaker of the house of repre-
9 sentatives of the Idaho legislature.
10 SECTION 6. That Section 67-7707, Idaho Code, be, and the same is hereby
11 amended to read as follows:
12 67-7707. BINGO BY CHARITABLE OR NONPROFIT ORGANIZATIONS. (1) It is lawful
13 for a charitable or nonprofit organization to conduct bingo sessions or games
14 in accordance with the provisions of this chapter and the rules of the state
15 lottery commission. Any charitable or nonprofit organization, any member of a
16 charitable or nonprofit organization, or any person that conducts a bingo ses-
17 sion or game in violation of any provision of this chapter or the rules of the
18 state lottery commission may be assessed a civil penalty not in excess of ten
19 thousand dollars ($10,000). Additionally, any person knowingly conducting a
20 bingo session or game in violation of the provisions of this chapter or the
21 rules of the state lottery commission may be charged under the gambling laws
22 contained in chapter 38, title 18, Idaho Code. Violations will be prosecuted
23 by the county prosecuting attorney.
24 (2) No person under the age of eighteen (18) may play bingo for a cash
25 prize or in games where a cash prize is offered or where the prize exceeds
26 twenty-five dollars ($25.00) in value for merchandise. No person under the age
27 of eighteen (18) may play bingo in any game operated by a licensed charitable
28 or nonprofit organization.
29 SECTION 7. That Section 67-7709, Idaho Code, be, and the same is hereby
30 amended to read as follows:
31 67-7709. ACCOUNTING AND USE OF BINGO PROCEEDS. (1) All funds received in
32 connection with a bingo game required to be licensed pursuant to this chapter
33 and the rules of the state lottery commission shall be placed in a separate
34 bank account. No funds may be disbursed from this account except the charita-
35 ble or nonprofit organization may expend proceeds for prizes, advertising,
36 utilities and the purchase of supplies and equipment in playing bingo, taxes
37 and license fees related to bingo, the payment of compensation, and for the
38 purposes set forth below for the remaining proceeds. Any proceeds available in
39 the account after payment of the above expenses shall inure to the charitable
40 or nonprofit organization to be used for religious, charitable, civic, scien-
41 tific testing, public safety, literary or educational purposes or for purchas-
42 ing, constructing, maintaining, operating or using equipment or land, or a
43 building or improvements thereto, owned, leased or rented by and for the char-
44 itable or nonprofit organization and used for civic purposes or made available
45 by the charitable or nonprofit organization for use by the general public from
46 time to time, or to foster amateur sports competition, or for the prevention
47 of cruelty to children or animals, provided that no proceeds shall be used or
48 expended directly or indirectly to compensate officers or directors. No
49 employees of the charitable organization may be compensated from bingo pro-
50 ceeds except as provided in this subsection. All gross revenues received from
51 bingo games by a charitable or nonprofit organization must be disbursed in the
6
1 following manner, unless otherwise provided in section 67-7708, Idaho Code:
2 not more than sixty-five percent (65%) of the gross revenues shall be utilized
3 for prizes in the charitable bingo game, not less than twenty percent (20%) of
4 gross revenues shall be used for charitable purposes enumerated in this sub-
5 section and not more than fifteen percent (15%) of the gross revenues shall be
6 used for administrative expenses associated with the charitable bingo game. If
7 agreed upon by its board of directors, a charitable organization may decrease
8 gross revenues spent on administrative expenses associated with bingo games
9 and allocate those revenues to prizes so long as no more than seventy percent
10 (70%) of the gross revenues is utilized for prizes on the bingo game. Two hun-
11 dred fifty dollars ($250) or one-tenth of one percent (.001%) of annual gross
12 revenues, as per the previous year's annual bingo report whichever is greater
13 may be paid as wages for the conduct of any one (1) bingo session. Such pay
14 shall be on an hourly basis and shall be directly related to the preparation,
15 conduct of and cleaning following a bingo session. Such wages shall be part
16 of the fifteen percent (15%) gross revenues used for administrative expenses.
17 An organization requesting an exemption from the disbursement percentages pro-
18 vided in this subsection for administrative costs may request an exemption
19 from the state lottery commission.
20 (2) Any charitable or nonprofit organization conducting bingo games pur-
21 suant to this chapter shall prepare a statement at the close of its license
22 year and shall file such statement with the state lottery. The statement shall
23 be prepared on a form prescribed by the lottery commission and shall include,
24 at a minimum, the following information:
25 (a) The number of bingo sessions conducted or sponsored by the licensed
26 organization;
27 (b) The location and date at which each bingo session was conducted;
28 (c) The gross revenues of each bingo session;
29 (d) The fair market value of any prize given at each bingo session;
30 (e) The amount paid in prizes at each session;
31 (f) The amount paid to the charitable organization;
32 (g) All disbursements from bingo revenue and the purpose of those dis-
33 bursements must be documented on a general ledger and submitted with the
34 annual bingo report to the Idaho lottery commission; and
35 (h) An accounting of all gross revenues and the disbursements required by
36 statute and rule of the state lottery commission must be retained in per-
37 manent records with the organization, including the date of each transac-
38 tion and the name and address of each payee for all prize payments in
39 excess of one hundred dollars ($100).
40 (3) Any person who shall willfully or knowingly furnish, supply or other-
41 wise give false information in any statement filed pursuant to this section
42 shall be guilty of a misdemeanor.
43 (4) All financial books, papers, records and documents of an organization
44 shall be kept as determined by rule of the state lottery and shall be open to
45 inspection by the county sheriff of the county, or the chief of police of the
46 city, or the prosecuting attorney of the county where the bingo game was held,
47 or the attorney general or the state lottery at reasonable times and during
48 reasonable hours.
49 (5) Every charitable or nonprofit organization whose annual gross reve-
50 nues exceed one two hundred fifty thousand dollars ($15200,000) from the oper-
51 ation of bingo games shall provide the state lottery with a copy of an annual
52 audit of the bingo operation. The audit shall be performed by an independent
53 public accountant and submitted within ninety (90) days after the end of the
54 license year.
7
1 SECTION 8. That Section 67-7710, Idaho Code, be, and the same is hereby
2 amended to read as follows:
3 67-7710. RAFFLES AND DUCK RACES. (1) It is lawful for any charitable
4 organization to conduct raffles in accordance with the provisions of this
5 chapter. Any charitable or nonprofit organization who conducts a raffle in
6 violation of any provision of this chapter may be assessed a civil penalty not
7 in excess of ten thousand dollars ($10,000). Additionally, any person know-
8 ingly conducting a raffle in violation of any provision of this chapter may be
9 charged under the gambling laws of the state contained in chapter 38, title
10 18, Idaho Code. It shall not constitute a violation of state law to advertise
11 a charitable raffle conducted pursuant to this section. It is lawful to par-
12 ticipate in a charitable raffle conducted pursuant to this chapter. A charita-
13 ble raffle conducted lawfully pursuant to this chapter is not gambling for
14 purposes of chapter 38, title 18, Idaho Code.
15 (2) Raffles shall be limited to twelve (12) per charitable organization
16 per year, provided that this limitation shall not apply to public or private
17 elementary or secondary schools located in this state.
18 (3) The maximum aggregate value of cash prize(s) that may be offered or
19 paid for any one (1) raffle, which is not a duck race, is one thousand dollars
20 ($1,000) and if merchandise is used as a prize and it is not redeemable for
21 cash, there shall be no limit on the maximum amount of value for the merchan-
22 dise. For duck races, there shall be no limit on the maximum amount of the
23 value of a cash prize if the cash prize is underwritten by insurance. If a
24 duck race offers a cash prize that is not underwritten by insurance, the maxi-
25 mum aggregate value of the cash prize(s) is one thousand dollars ($1,000).
26 There shall be no limit on the maximum of value for merchandise used as a
27 prize in a duck race if the merchandise is not redeemable for cash.
28 (43) As used in this subsection, "net proceeds of a charitable raffle"
29 means the gross receipts less the cost of prizes awarded. "Net proceeds of a
30 duck race" shall mean gross receipts, less the cost of prizes awarded and the
31 rental cost of the ducks used in the race. No less than ninety percent (90%)
32 of the net proceeds of a raffle shall be used by the charitable organization
33 for charitable, religious, educational, civic or other nonprofit purposes.
34 (54) Any licensed charitable or nonprofit organization conducting raffles
35 pursuant to this chapter shall prepare a statement at the close of its license
36 year and shall file such statement with the state lottery. The statement shall
37 be prepared on a form prescribed by the lottery commission and shall include,
38 at a minimum, the following information:
39 (a) The number of raffles conducted or sponsored by the charitable or
40 nonprofit organization;
41 (b) The location and date at which each raffle was conducted;
42 (c) The gross revenues of each raffle;
43 (d) The fair market value of any prize given at each raffle;
44 (e) The amount paid in prizes at each raffle;
45 (f) The amount paid to the charitable organization;
46 (g) An accounting of all gross revenues and the disbursements required by
47 statute and rule of the state lottery commission.
48 (65) Every charitable or nonprofit organization whose annual gross reve-
49 nues exceed one two hundred fifty thousand dollars ($15200,000) from the oper-
50 ation of raffle events shall provide the state lottery with a copy of an
51 annual report audit of the raffle events. The audit shall be performed by an
52 independent public accountant and submitted within ninety (90) days after the
53 end of the license year.
8
1 SECTION 9. That Section 67-7711, Idaho Code, be, and the same is hereby
2 amended to read as follows:
3 67-7711. LICENSING PROCEDURE. (1) Any charitable or nonprofit organiza-
4 tion not exempt pursuant to section 67-77143, Idaho Code, desiring to operate
5 bingo sessions or games or charitable raffles shall make application for a
6 license to the state lottery. The state lottery shall review the license
7 application and shall approve or deny the issuing of a license within fifteen
8 (15) calendar days of receipt of the license application. The state lottery
9 may deny the application if it determines that the applicant has not met
10 requirements imposed in this act and rules promulgated pursuant to this act.
11 Whenever an application is denied, it shall be returned to the applicant by
12 the state lottery with specific reasons for the denial. When a license appli-
13 cation is approved by the state lottery, the state lottery shall issue a
14 license to the applicant. No person or charitable or nonprofit organization,
15 except those exempt pursuant to section 67-7713, Idaho Code, shall operate or
16 conduct a bingo session or game or charitable raffle until it has received a
17 license from the state lottery. The license shall expire one (1) year after
18 the date it was issued. A copy of the license shall be furnished to the county
19 sheriff of the county or the chief of police of the city in which the licensee
20 intends to operate a bingo session or game or sell charitable raffle tickets
21 before a bingo session or game or a charitable raffle is conducted by the
22 licensee.
23 (2) Each application and renewal application shall contain the following
24 information:
25 (a) The name, address, date of birth, driver's license number and social
26 security number of the applicant and if the applicant is a corporation,
27 association or other similar legal entity, the name, home address, date of
28 birth, driver's license number and social security number of each of the
29 officers of the organization as well as the name and address of the direc-
30 tors, or other persons similarly situated, of the organization;
31 (b) The name, home address, date of birth, driver's license number and
32 social security number of each of the person or persons responsible for
33 managing the bingo session or game or raffle;
34 (c) (i) In the case of charitable organizations, a copy of the applica-
35 tion for recognition of exemptions and a determination letter from
36 the internal revenue service and the state tax commission that indi-
37 cates that the organization is a charitable organization and stating
38 the section under which that exemption is granted, except that if the
39 organization is a state or local branch, lodge, post or chapter of a
40 national organization, a copy of the determination letter of the
41 national organization shall satisfy this requirement;
42 (ii) In the case of incorporated nonprofit organizations, a copy of a
43 certificate of existence issued by the secretary of state pursuant to
44 chapter 3, title 30, Idaho Code, establishing the organization's good
45 standing in the state; and
46 (iii) In the case of unincorporated nonprofit associations operating
47 pursuant to chapter 7, title 53, Idaho Code, a statement meeting the
48 requirements of section 53-710, Idaho Code, for appointing an agent
49 for service of process.
50 (d) The location at which the applicant will conduct the bingo session or
51 games or drawings for the raffles.
52 (3) The operation of bingo sessions or games or charitable raffles shall
53 be the direct responsibility of, and controlled by, a special committee
54 selected by the governing body of the organization. If the governing body has
9
1 not appointed a special committee, the members of the governing body shall be
2 held responsible for the conduct of the bingo sessions or games or raffles. No
3 directors or officers of an organization or persons related to them either by
4 marriage or blood within the second degree shall receive any compensation
5 derived from the proceeds of a bingo session or raffle regulated under the
6 provisions of this chapter. An organization shall not contract with any person
7 not employed by, or a volunteer for, the organization for the purpose of con-
8 ducting a bingo session or raffle on the organization's behalf. However, if
9 the state lottery commission has entered into an agreement or contract with
10 another state for the operation or promotion of joint bingo sessions, the
11 charitable or nonprofit organization may participate in that contract or
12 agreement.
13 (4) Different chapters of an organization may apply for and share one (1)
14 license to conduct raffles so long as the information required in subsection
15 (2) of this section is provided to the lottery prior to the issuance of the
16 license.
17 (5) The organization may apply for the license to coincide with the
18 organization's fiscal year.
19 SECTION 10. That Section 67-7713, Idaho Code, be, and the same is hereby
20 amended to read as follows:
21 67-7713. EXEMPTION FROM LICENSURE REQUIREMENTS. A charitable or nonprofit
22 organization conducting a bingo game shall not be required to obtain a
23 license, file reports or pay fees pursuant to this chapter if the organization
24 conducts a bingo game and the maximum prize offered or paid for any one (1)
25 game of bingo does not exceed two hundred fifty dollars ($250) and the maximum
26 amount of prizes, in cash and/or merchandise at fair market value offered
27 during any one (1) session of bingo does not exceed if the gross annual bingo
28 sales are less than ten thousand dollars ($10,000) and/or if the aggregate
29 total amount for prize(s) offered, in cash or merchandise, for any one (1)
30 session, is less than one thousand dollars ($1,000). A charitable or nonprofit
31 organization conducting a raffle shall not be required to obtain a license,
32 file reports or pay fees pursuant to this chapter if the organization conducts
33 a raffle in which if the gross annual raffle sales are less than ten thousand
34 dollars ($10,000) and/or if the maximum aggregate amount value of prizes does
35 not merchandise does not exceed one thousand dollars ($1,000). in cash or if
36 merchandise used as a prize or prizes does not have a maximum fair market
37 value in excess of five thousand dollars ($5,000).
38 SECTION 11. That Section 67-7715, Idaho Code, be, and the same is hereby
39 amended to read as follows:
40 67-7715. VENDORS -- LICENSING -- FEES. (1) No person or entity shall man-
41 ufacture, sell, distribute, furnish or supply to any person or entity any gam-
42 ing device, equipment or material, in this state or for use in this state,
43 without first obtaining a vendor's license from the state lottery commission.
44 Vendor licenses shall not be issued by the state lottery except respecting
45 devices, equipment or material designed and permitted to be used in connection
46 with activities authorized under this chapter. Provided however, that this
47 licensing requirement shall apply only insofar as the state lottery commission
48 has adopted rules implementing it as to particular categories of gaming
49 devices and related material and equipment.
50 (2) Any person or entity that manufactures, sells, distributes, furnishes
51 or supplies any gaming device, equipment or material, in this state or for use
10
1 in this state shall make application for a vendor license to the state lot-
2 tery. The state lottery shall review the license application and shall approve
3 or deny the issuing of a license within fifteen (15) calendar days of receipt
4 of the license application. The state lottery may deny the application if it
5 determines that the applicant has not met the requirements imposed in this act
6 and rules promulgated pursuant to this act. Whenever an application is denied,
7 it shall be returned to the applicant by the state lottery with specific rea-
8 sons for the denial. When the license application is approved by the state
9 lottery, the state lottery shall issue a license to the applicant.
10 (3) Each application and renewal application shall contain the following
11 information:
12 (a) The name, address, date of birth, driver's license number and social
13 security number of the applicant and if the applicant is a corporation,
14 proprietorship, association, partnership or other similar legal entity,
15 the name, home address, date of birth, driver's license number and social
16 security number of each of the officers of the corporation and their
17 spouses, as well as the name and address of the directors and their
18 spouses, or other persons similarly situated.
19 (b) The locations or persons with which the applicant will provide any
20 gaming device, equipment or material in this state or for use in this
21 state.
22 (4) Any licensee under this section shall submit an annual revenue report
23 to the Idaho lottery commission within thirty (30) days of the end of the
24 licensed year on the prescribed forms provided by the Idaho lottery commis-
25 sion.
26 (5) Each applicant shall pay annually to the state lottery a nonrefund-
27 able license fee of two five hundred dollars ($2500) which shall be due upon
28 submission of the application.
29 (6) Any license issued pursuant to this chapter shall be suspended or
30 revoked by the state lottery if it is found that the licensee or any person
31 connected with the licensee has violated any provision of this chapter, par-
32 ticularly those in section 67-7712, Idaho Code, or any rule of the lottery
33 commission.
AH0650
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fifth Legislature Second Regular Session - 2000
Moved by Callister
Seconded by Deal
IN THE HOUSE OF REPRESENTATIVES
HOUSE AMENDMENTS TO H.B. NO. 650
1 AMENDMENTS TO SECTION 7
2 On page 6 of the printed bill, in line 13, delete "(.001%)" and insert:
3 "(.001%)"; and delete lines 39 through 41, and insert: "manent records with
4 the organization, including the date of each transaction and the name and
5 address of each payee for all prize payments in excess of one hundred dollars
6 ($100).".
7 AMENDMENT TO SECTION 8
8 On page 7, delete lines 16 and 17 and insert:
9 "(2) Raffles shall be limited to twelve (12) per charitable organization
10 per year, provided that this limitation shall not apply to public or private
11 elementary or secondary schools located in this state.".
12 CORRECTIONS TO TITLE
13 On page 1, delete line 13 and insert: "CODE, TO MAKE AN ARITHMETIC CORREC-
14 TION"; delete lines 17 and 18, and insert: "PROVIDE THAT A PUBLIC OR PRIVATE
15 ELEMENTARY OR SECONDARY SCHOOL LOCATED IN THIS STATE MAY HAVE UNLIMITED
16 RAFFLES IN A YEAR, TO REVISE THE MAXIMUM AGGREGATE VALUE OF A CASH PRIZE FOR".
Moved by King-Barrutia
Seconded by Stennett
IN THE SENATE
SENATE AMENDMENT TO H.B. NO. 650, As Amended
17 AMENDMENTS TO THE BILL
18 On page 9 of the engrossed bill, delete lines 21 through 53; delete page
19 10, and on page 11, delete lines 1 through 4; and renumber subsequent sections
20 accordingly.
21 CORRECTION TO TITLE
22 On page 1, in line 24, delete "AMENDING SECTION 67-7712, IDAHO CODE, TO",
23 and in line 25, delete "REVISE LICENSE FEES AND TO REVISE PROCEDURES;".
REPRINT REPRINT REPRINT REPRINT REPRINT STATEMENT
OF PURPOSE
RS09761
This legislation amends the existing law to include the following changes:
(1) Broadens the scope and authority of the new-Bingo-Advisory Board to also include
raffles.
(2) Establishes term limits for the members of the Bingo- Raffle advisory Board.
(3) Clarifies the fact that a person under the age of 18 may only play in a bingo game that
offers merchandise prizes with a value less than $25.00 (primarily for the benefit of
school
carnivals).
(4) Simplifies the record-keeping requirements of the nonprofit organizations covered by
the act.
(5) Increases from $150,000 to $200,000, the annual gross revenue threshold under
which charitable or nonprofit organizations are required to have an annual independent
audit of bingo and raffle events.
(6) Clarifies the existing limit of $1000 on a single cash prize to include an aggregate
limit of $1000 on multiple prizes.
(7) Clarifies exemptions from the licensing requirements and decreased limits which
allow exemption from licensing.
(8) Restructures and increases the existing licensing fee structure.
FISCAL NOTE
No impact on the General Fund. The new bingo and raffle license fee structure would
increase annual revenues from $18,000 to approximately $52,000.
The Staff of the Idaho Lottery provides administrative support to the Bingo Advisory
Board. The cost of providing this support has exceeded annual bingo and raffle license
fees since the creation of the board resulting, in effect, in a
subsidation of the Board by the Idaho Lottery. The fee increase would correct that
situation.
CONTACT: Rep. Wayne Meyer (208) 332-1000
Steve Woodall, Idaho State Lottery (208) 334-2600
STATEMENT OF PURPOSE/ FISCAL NOTE H650