2003 Legislation
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HOUSE BILL NO. 42 – Bingo acct, funds withdrawal


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Daily Data Tracking History

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

Bill Text

  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-seventh Legislature                 First Regular Session - 2003
                              IN THE HOUSE OF REPRESENTATIVES
                                     HOUSE BILL NO. 42
                                       BY MR. SPEAKER
                        Requested by: Idaho State Lottery Commission
  1                                        AN ACT
  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:
  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 17        (b)  Funds  from  bingo accounts must be withdrawn by preprinted, consecu-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 in the a bingo account after  payment  of  the
 28        above  expenses  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-
  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 / Fiscal Impact

                     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.

Name:        Steve Woodall
Agency:      Lottery Commission
Phone:       334-2600

Statement of Purpose/Fiscal Impact                        H 4