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H0387......................................................by STATE AFFAIRS
BINGO/RAFFLES - Amends existing law to provide requirements for the
withdrawal of funds from bingo accounts.
03/21 House intro - 1st rdg - to printing
03/24 Rpt prt - to St Aff
03/26 Rpt out - rec d/p - to 2nd rdg
03/27 2nd rdg - to 3rd rdg
03/28 3rd rdg - PASSED - 67-2-1
AYES -- Andersen, Barraclough, Barrett, Bauer, Bedke, Bell, Bieter,
Black, Block, Boe, Bolz, Bradford, Campbell, Cannon, Clark, Collins,
Crow, Cuddy, Deal, Denney, Douglas, Eberle, Edmunson, Ellsworth,
Eskridge, Field(18), Field(23), Gagner, Garrett, Harwood,
Henbest(Bray), Jaquet, Jones, Kellogg, Lake, Langford, Langhorst,
Martinez, McGeachin, Meyer, Miller, Mitchell, Nacarrato, Nielsen,
Raybould, Ridinger, Ring, Ringo, Roberts, Robison, Rydalch, Sali,
Sayler, Schaefer, Shepherd, Shirley, Skippen, Smith(30), Smith(24),
Smylie, Snodgrass, Stevenson, Tilman, Trail, Wills, Wood, Mr. Speaker
NAYS -- Kulczyk, McKague
Absent and excused -- Moyle
Floor Sponsor - Wills
Title apvd - to Senate
03/31 Senate intro - 1st rdg - to St Aff
04/03 Rpt out - rec d/p - to 2nd rdg
04/04 2nd rdg - to 3rd rdg
04/07 3rd rdg - PASSED - 32-1-2
AYES -- Andreason, Bailey, Brandt, Bunderson, Burkett, Burtenshaw,
Calabretta, Cameron, Compton, Darrington, Davis, Gannon, Geddes,
Goedde, Hill, Ingram, Kennedy, Keough, Little, Lodge, Malepeai(Kumm),
Marley, McKenzie, McWilliams, Noble, Noh, Richardson, Schroeder,
Stegner, Stennett, Werk, Williams
NAYS -- Sweet
Absent and excused -- Pearce, Sorensen
Floor Sponsor - Stegner
Title apvd - to House
04/08 To enrol
04/09 Rpt enrol - Sp signed - Pres signed
04/10 To Governor
04/15 Governor signed
Session Law Chapter 301
Effective: 07/01/03
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-seventh Legislature First Regular Session - 2003
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 387
BY STATE AFFAIRS COMMITTEE
1 AN ACT
2 RELATING TO BINGO PROCEEDS; AMENDING SECTION 67-7702, IDAHO CODE, TO DEFINE
3 THE TERM "PERSON"; AND AMENDING SECTION 67-7709, IDAHO CODE, TO PROVIDE
4 REQUIREMENTS FOR THE WITHDRAWAL OF FUNDS FROM BINGO ACCOUNTS AND TO MAKE
5 TECHNICAL CHANGES.
6 Be It Enacted by the Legislature of the State of Idaho:
7 SECTION 1. That Section 67-7702, Idaho Code, be, and the same is hereby
8 amended to read as follows:
9 67-7702. DEFINITIONS. As used in this chapter:
10 (1) "Bingo" means the traditional game of chance played for a prize
11 determined prior to the start of the game.
12 (a) Upon approval by the bingo-raffle advisory board a licensee may offer
13 bingo games in which players are allowed to select their own numbers if
14 the cards used to conduct the games have controls that provide an audit
15 trail adequate to determine all winning number combinations.
16 (b) Card-minding devices are prohibited. Autodaubing features are prohib-
17 ited.
18 (c) Bingo shall not include "instant bingo" which is a game of chance
19 played by the selection of one (1) or more prepackaged bingo cards, with
20 the winner determined by the appearance of a preprinted winning designa-
21 tion on the bingo card.
22 (2) "Bingo-raffle advisory board" means a board of six (6) persons chosen
23 by the governor to make advisory recommendations regarding bingo and raffle
24 operations and regulation in Idaho.
25 (3) "Charitable organization" means an organization that has been in con-
26 tinuous existence in the county of operation of the charitable bingo game or
27 raffle for at least one (1) year and that is exempt from taxation under sec-
28 tion 501(c)(3), 501(c)(4), 501(c)(6), 501(c)(8), 501(c)(10), 501(c)(19) or
29 501(d) of the Internal Revenue Code and is exempt from income taxation under
30 title 63, Idaho Code, as a bona fide nonprofit charitable, civic, religious,
31 fraternal, patriotic or veterans organization or as a nonprofit volunteer fire
32 department, or as a nonprofit volunteer rescue squad, or as a nonprofit volun-
33 teer educational booster group, parent-teacher organization or association. If
34 the organization has local branches or chapters, the term "charitable organi-
35 zation" means the local branch or chapter operating the bingo or raffle game.
36 (4) "Commission" means the Idaho state lottery commission as defined in
37 section 67-7404, Idaho Code.
38 (5) "Duck race" means a charitable raffle played by releasing numbered,
39 inanimate toys (ducks) into a body of moving water. A person who has been
40 assigned the same number as the first duck to cross a predetermined point in
41 the water (the finish line) is the winner. Other prizes may be awarded on the
42 basis of the order in which the ducks cross the finish line. With the excep-
43 tion of determining "net proceeds," all restrictions and requirements applica-
2
1 ble to the conduct of charitable raffles in this chapter shall also apply to
2 the conduct of duck races.
3 (6) "Gross revenues" shall mean all moneys paid by players during a bingo
4 game or session for the playing of bingo or raffle event and shall not include
5 money paid for concessions.
6 (7) "Nonprofit organization" means an organization incorporated under
7 chapter 3, title 30, Idaho Code, or an unincorporated association recognized
8 under chapter 7, title 53, Idaho Code.
9 (8) "Organization" means a charitable organization or a nonprofit organi-
10 zation.
11 (9) "Person" shall be construed to mean and include an individual, asso-
12 ciation, corporation, club, trust, estate, society, company, joint stock com-
13 pany, receiver, trustee, assignee, referee or any other person acting in a
14 fiduciary or representative capacity, whether appointed by a court or other-
15 wise, and any combination of individuals. "Person" shall also be construed to
16 mean and include departments, commissions, agencies and instrumentalities of
17 the state of Idaho, including counties and municipalities and agencies or
18 instrumentalities thereof.
19 (10) "Raffle" means a game in which the prize is won by random drawing of
20 the name or number of one (1) or more persons purchasing chances.
21 (101) "Session" means a period of time not to exceed eight (8) hours in
22 any one (1) day in which players are allowed to participate in bingo games
23 operated by a charitable or nonprofit organization.
24 (112) "Special permit" means a permit that can be obtained by a charitable
25 organization that is not licensed but qualifies to operate an exempt bingo
26 operation. This permit allows a qualifying organization to operate bingo games
27 at a county fair for the duration of the fair.
28 (123) "Vendor" means an applicant, licensee or manufacturer, distributor
29 or supplier licensed or unlicensed that furnishes or supplies bingo or raffle
30 equipment, disposable or nondisposable cards and any and all related gaming
31 equipment.
32 SECTION 2. That Section 67-7709, Idaho Code, be, and the same is hereby
33 amended to read as follows:
34 67-7709. ACCOUNTING AND USE OF BINGO PROCEEDS.
35 (1) (a) All funds received in connection with a bingo game required to be
36 licensed pursuant to this chapter and the rules of the state lottery com-
37 mission shall be placed in a separate bank account. No funds may be dis-
38 bursed from this account except the charitable or nonprofit organization
39 may expend proceeds for prizes, advertising, utilities and the purchase of
40 supplies and equipment in playing bingo, taxes and license fees related to
41 bingo, the payment of compensation, and for the purposes set forth below
42 for the remaining proceeds.
43 (b) Funds from bingo accounts must be withdrawn by preprinted, consecu-
44 tively numbered checks or withdrawal slips, signed by an authorized repre-
45 sentative of the licensed authorized organization and made payable to a
46 person. A check or withdrawal slip shall not be made payable to "cash,"
47 "bearer" or a fictitious payee. The nature of the payment made shall be
48 noted on the face of the check or withdrawal slip. Checks for the bingo
49 account shall be imprinted with the words "bingo account" and shall con-
50 tain the organization's bingo license name on the face of each check. A
51 licensed authorized organization shall keep and account for all checks and
52 withdrawal slips, including voided checks and withdrawal slips.
53 (c) Any proceeds available in the a bingo account after payment of the
3
1 above expenses set forth in paragraph (1)(a) of this subsection shall
2 inure to the charitable or nonprofit organization to be used for reli-
3 gious, charitable, civic, scientific testing, public safety, literary or
4 educational purposes or for purchasing, constructing, maintaining, operat-
5 ing or using equipment or land, or a building or improvements thereto,
6 owned, leased or rented by and for the charitable or nonprofit organiza-
7 tion and used for civic purposes or made available by the charitable or
8 nonprofit organization for use by the general public from time to time, or
9 to foster amateur sports competition, or for the prevention of cruelty to
10 children or animals, provided that no proceeds shall be used or expended
11 directly or indirectly to compensate officers or directors. No employees
12 of the charitable organization may be compensated from bingo proceeds
13 except as provided in this subsection.
14 (d) All gross revenues received from bingo games by a charitable or non-
15 profit organization must be disbursed in the following manner, unless
16 otherwise provided in section 67-7708, Idaho Code: not more than sixty-
17 five percent (65%) of the gross revenues shall be utilized for prizes in
18 the charitable bingo game, not less than twenty percent (20%) of gross
19 revenues shall be used for charitable purposes enumerated in this subsec-
20 tion and not more than fifteen percent (15%) of the gross revenues shall
21 be used for administrative expenses associated with the charitable bingo
22 game. If agreed upon by its board of directors, a charitable organization
23 may decrease gross revenues spent on administrative expenses associated
24 with bingo games and allocate those revenues to prizes so long as no more
25 than seventy percent (70%) of the gross revenues is utilized for prizes on
26 the bingo game. Two hundred fifty dollars ($250) or one-tenth of one per-
27 cent (.1%) of annual gross revenues, as per the previous year's annual
28 bingo report whichever is greater may be paid as wages for the conduct of
29 any one (1) bingo session. Such pay shall be on an hourly basis and shall
30 be directly related to the preparation, conduct of and cleaning following
31 a bingo session. Such wages shall be part of the fifteen percent (15%)
32 gross revenues used for administrative expenses. An organization request-
33 ing an exemption from the disbursement percentages provided in this sub-
34 section for administrative costs may request an exemption from the state
35 lottery commission.
36 (2) Any charitable or nonprofit organization conducting bingo games pur-
37 suant to this chapter shall prepare a statement at the close of its license
38 year and shall file such statement with the state lottery. The statement shall
39 be prepared on a form prescribed by the lottery commission and shall include,
40 at a minimum, the following information:
41 (a) The number of bingo sessions conducted or sponsored by the licensed
42 organization;
43 (b) The location and date at which each bingo session was conducted;
44 (c) The gross revenues of each bingo session;
45 (d) The fair market value of any prize given at each bingo session;
46 (e) The amount paid in prizes at each session;
47 (f) The amount paid to the charitable organization;
48 (g) All disbursements from bingo revenue and the purpose of those dis-
49 bursements must be documented on a general ledger and submitted with the
50 annual bingo report to the Idaho lottery commission; and
51 (h) An accounting of all gross revenues and the disbursements required by
52 statute and rule of the state lottery commission must be retained in per-
53 manent records with the organization, including the date of each transac-
54 tion and the name and address of each payee for all prize payments in
55 excess of one hundred dollars ($100).
4
1 (3) Any person who shall willfully or knowingly furnish, supply or other-
2 wise give false information in any statement filed pursuant to this section
3 shall be guilty of a misdemeanor.
4 (4) All financial books, papers, records and documents of an organization
5 shall be kept as determined by rule of the state lottery and shall be open to
6 inspection by the county sheriff of the county, or the chief of police of the
7 city, or the prosecuting attorney of the county where the bingo game was held,
8 or the attorney general or the state lottery at reasonable times and during
9 reasonable hours.
10 (5) Every charitable or nonprofit organization whose annual gross reve-
11 nues exceed two hundred thousand dollars ($200,000) from the operation of
12 bingo games shall provide the state lottery with a copy of an annual audit of
13 the bingo operation. The audit shall be performed by an independent public
14 accountant and submitted within ninety (90) days after the end of the license
15 year.
STATEMENT OF PURPOSE
RS 13182
The Idaho State Lottery Commission has the responsibility for
licensing and enforcement of bingo and raffle legislation as
provided for in Title 67, Chapter 77, Idaho Code. The State
Lottery Commission periodically audits licensed bingo facilities
to ensure compliance with the act that among other things places
restrictions on the purposes for which the licensed bingo
facilities funds may be expended.
A very small minority of licensed bingo facilities fail to follow
generally accepted business practices in the operation of their
checking account. These failures include the use of non-numbered
checks, and lack the name of a specific payee or checks made
payable to "cash," "bearer" or a fictitious payee. In addition,
many times these organizations fail to retain bank statements and
supporting documentation.
This legislation would codify minimum checking account
requirements for these licensed bingo facilities.
FISCAL IMPACT
None
Contact
Name: Roger Simmons
Amber French
Lottery Commission
Phone: 208/334-2600
STATEMENT OF PURPOSE/FISCAL H 387