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
|||| 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 are39 met:40 (i) The cards are printed on two-part, self-duplicating paper that41 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 and2 1 original cards. Operators shall establish and set forth in plain view2 house rules setting out any conditions by which an entry may be3 added, deleted or changed prior to separation. Any changes must be4 verified by a worker authorized by the bingo manager.5 (iii) The player retains and plays the duplicate copy. All winning6 cards and their duplicate copies shall be retained by the operator as7 a part of its daily bingo records.8 (c) Upon approval by the bingo advisory board, bingo games may also9 include bonanzas and other approved blackout gamesCard-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 six38 (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 and29 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 orgames 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 orgames 41 and/or raffle events in the state; 42 (6) The type, scope, manner, and frequency of bingo sessions orgames 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 andgames 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 cash25 prize orin 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 ($100). 40 (3) Any person who shall willfully or knowingly furnish, supply or other- 41 wise give false information in any statement filed pursuant to this section 42 shall be guilty of a misdemeanor. 43 (4) All financial books, papers, records and documents of an organization 44 shall be kept as determined by rule of the state lottery and shall be open to 45 inspection by the county sheriff of the county, or the chief of police of the 46 city, or the prosecuting attorney of the county where the bingo game was held, 47 or the attorney general or the state lottery at reasonable times and during 48 reasonable hours. 49 (5) Every charitable or nonprofit organization whose annual gross reve- 50 nues exceed onetwo hundred fiftythousand dollars ($ 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 ($1,000). 26 There shall be no limit on the maximum of value for merchandise used as a 27 prize in a duck race if the merchandise is not redeemable for cash. 28 ( 43) As used in this subsection, "net proceeds of a charitable raffle" 29 means the gross receipts less the cost of prizes awarded. "Net proceeds of a 30 duck race" shall mean gross receipts, less the cost of prizes awarded and the 31 rental cost of the ducks used in the race. No less than ninety percent (90%) 32 of the net proceeds of a raffle shall be used by the charitable organization 33 for charitable, religious, educational, civic or other nonprofit purposes. 34 ( 54) Any licensed charitable or nonprofit organization conducting raffles 35 pursuant to this chapter shall prepare a statement at the close of its license 36 year and shall file such statement with the state lottery. The statement shall 37 be prepared on a form prescribed by the lottery commission and shall include, 38 at a minimum, the following information: 39 (a) The number of raffles conducted or sponsored by the charitable or 40 nonprofit organization; 41 (b) The location and date at which each raffle was conducted; 42 (c) The gross revenues of each raffle; 43 (d) The fair market value of any prize given at each raffle; 44 (e) The amount paid in prizes at each raffle; 45 (f) The amount paid to the charitable organization; 46 (g) An accounting of all gross revenues and the disbursements required by 47 statute and rule of the state lottery commission. 48 ( 65) Every charitable or nonprofit organization whose annual gross reve- 49 nues exceed onetwo hundred fiftythousand dollars ($ 15200,000) from the oper- 50 ation of raffle events shall provide the state lottery with a copy of an 51 annual reportaudit 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 67-771 43, 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 organization24 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 maximum26 amount of prizes, in cash and/or merchandise at fair market value offered27 during any one (1) session of bingo does not exceedif 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 conducts33 a raffle in whichif the gross annual raffle sales are less than ten thousand 34 dollars ($10,000) and/or if the maximum aggregate amountvalue of prizes does35 notmerchandise does not exceed one thousand dollars ($1,000). in cash or if36 merchandise used as a prize or prizes does not have a maximum fair market37 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 twofive 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.
|||| 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