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H0042...........................................................by MR. SPEAKER
Requested by: Idaho State Lottery Commission
BINGO ACCOUNTS - Amends existing law to provide requirements for the
withdrawal of funds from bingo accounts.
01/06 House intro - 1st rdg - to printing
Rpt prt - to St Aff
|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-seventh Legislature First Regular Session - 2003IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 42 BY MR. SPEAKER Requested by: Idaho State Lottery Commission 1 AN ACT 2 RELATING TO BINGO PROCEEDS; AMENDING SECTION 67-7709, IDAHO CODE, TO PROVIDE 3 REQUIREMENTS FOR THE WITHDRAWAL OF FUNDS FROM BINGO ACCOUNTS AND TO MAKE 4 TECHNICAL CHANGES. 5 Be It Enacted by the Legislature of the State of Idaho: 6 SECTION 1. That Section 67-7709, Idaho Code, be, and the same is hereby 7 amended to read as follows: 8 67-7709. ACCOUNTING AND USE OF BINGO PROCEEDS. 9 (1) (a) All funds received in connection with a bingo game required to be 10 licensed pursuant to this chapter and the rules of the state lottery com- 11 mission shall be placed in a separate bank account. No funds may be dis- 12 bursed from this account except the charitable or nonprofit organization 13 may expend proceeds for prizes, advertising, utilities and the purchase of 14 supplies and equipment in playing bingo, taxes and license fees related to 15 bingo, the payment of compensation, and for the purposes set forth below 16 for the remaining proceeds. 17 (b) Funds from bingo accounts must be withdrawn by preprinted, consecu- 18 tively numbered checks or withdrawal slips, signed by an authorized repre- 19 sentative of the licensed authorized organization and made payable to a 20 person. A check or withdrawal slip shall not be made payable to "cash," 21 "bearer" or a fictitious payee. The nature of the payment made shall be 22 noted on the face of the check or withdrawal slip. Checks for the bingo 23 account shall be imprinted with the words "bingo account" and shall con- 24 tain the organization's bingo license name on the face of each check. A 25 licensed authorized organization shall keep and account for all checks and 26 withdrawal slips, including voided checks and withdrawal slips. 27 (c) Any proceeds available inthea bingo account after payment of the 28aboveexpenses set forth in paragraph (1)(a) of this subsection shall 29 inure to the charitable or nonprofit organization to be used for reli- 30 gious, charitable, civic, scientific testing, public safety, literary or 31 educational purposes or for purchasing, constructing, maintaining, operat- 32 ing or using equipment or land, or a building or improvements thereto, 33 owned, leased or rented by and for the charitable or nonprofit organiza- 34 tion and used for civic purposes or made available by the charitable or 35 nonprofit organization for use by the general public from time to time, or 36 to foster amateur sports competition, or for the prevention of cruelty to 37 children or animals, provided that no proceeds shall be used or expended 38 directly or indirectly to compensate officers or directors. No employees 39 of the charitable organization may be compensated from bingo proceeds 40 except as provided in this subsection. 41 (d) All gross revenues received from bingo games by a charitable or non- 42 profit organization must be disbursed in the following manner, unless 43 otherwise provided in section 67-7708, Idaho Code: not more than sixty- 2 1 five percent (65%) of the gross revenues shall be utilized for prizes in 2 the charitable bingo game, not less than twenty percent (20%) of gross 3 revenues shall be used for charitable purposes enumerated in this subsec- 4 tion and not more than fifteen percent (15%) of the gross revenues shall 5 be used for administrative expenses associated with the charitable bingo 6 game. If agreed upon by its board of directors, a charitable organization 7 may decrease gross revenues spent on administrative expenses associated 8 with bingo games and allocate those revenues to prizes so long as no more 9 than seventy percent (70%) of the gross revenues is utilized for prizes on 10 the bingo game. Two hundred fifty dollars ($250) or one-tenth of one per- 11 cent (.1%) of annual gross revenues, as per the previous year's annual 12 bingo report whichever is greater may be paid as wages for the conduct of 13 any one (1) bingo session. Such pay shall be on an hourly basis and shall 14 be directly related to the preparation, conduct of and cleaning following 15 a bingo session. Such wages shall be part of the fifteen percent (15%) 16 gross revenues used for administrative expenses. An organization request- 17 ing an exemption from the disbursement percentages provided in this sub- 18 section for administrative costs may request an exemption from the state 19 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 two hundred thousand dollars ($200,000) from the operation of 51 bingo games shall provide the state lottery with a copy of an annual audit of 52 the bingo operation. The audit shall be performed by an independent public 53 accountant and submitted within ninety (90) days after the end of the license 54 year.
STATEMENT OF PURPOSE
RS 12383
The Idaho State Lottery Commission has the responsibility for
licensing and enforcement of bingo and raffle legislation as
provide for in Title 67, Chapter 77, Idaho Code. The State
Lottery Commission periodically audits licensed bingo facilities
to insure compliance with the act which 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 the 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
Minimal to none.
CONTACT
Name: Steve Woodall
Agency: Lottery Commission
Phone: 334-2600
Statement of Purpose/Fiscal Impact H 4