2003 Legislation
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HOUSE BILL NO. 392 – Bingo games, paper requirements


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Daily Data Tracking History

H0392.....................................................by WAYS AND MEANS
BINGO GAMES - PAPER - Amends existing law to require additional
requirements for statements prepared by charitable or nonprofit
organizations conducting bingo games; to require the use of nonreusable
colored bingo paper so that all sales may be tracked; to provide
requirements for the paper; and to provide requirements for organizations
using nonreusable bingo paper.
03/25    House intro - 1st rdg - to printing
03/26    Rpt prt - to St Aff
04/01    Rpt out - rec d/p - to 2nd rdg
04/02    2nd rdg - to 3rd rdg
04/03    3rd rdg - PASSED - 64-6-0
      AYES -- Andersen, Barraclough, Barrett, Bedke, Bell, 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, Jaquet,
      Jones, Kellogg, Lake, Langford, Langhorst, Martinez, McGeachin,
      Meyer, Miller, Mitchell, Moyle, Naccarato, Nielsen, Raybould,
      Ridinger, Ring, Ringo, Roberts, Robison, Rydalch, Sali, Sayler,
      Shepherd, Shirley, Skippen, Smith(30), Smith(24), Smylie, Snodgrass,
      Stevenson, Tilman, Trail(Young), Wills, Mr. Speaker
      NAYS -- Bauer, Bieter, Kulczyk, McKague, Schaefer, Wood
      Absent and excused -- None
    Floor Sponsor - Wills
    Title apvd - to Senate
04/04    Senate intro - 1st rdg - to St Aff
04/08    Rpt out - rec d/p - to 2nd rdg
04/09    2nd rdg - to 3rd rdg
04/10    3rd rdg - PASSED - 26-7-2
      AYES -- Andreason, Brandt, Bunderson, Burtenshaw, Calabretta,
      Cameron, Darrington, Davis, Gannon, Geddes, Goedde, Hill, Ingram,
      Kennedy, Little, Malepeai(Kumm), Marley, McWilliams, Noh, Richardson,
      Schroeder, Sorensen, Stegner, Stennett, Werk, Williams
      NAYS -- Bailey, Compton, Keough, Lodge, McKenzie, Pearce, Sweet
      Absent and excused -- Burkett, Noble
    Floor Sponsor - Calabretta
    Title apvd - to House
04/14    To enrol
04/15    Rpt enrol - Sp signed
04/16    Pres signed
04/17    To Governor
04/23    Governor signed
         Session Law Chapter 314
         Effective: 07/01/03

Bill Text

  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-seventh Legislature                 First Regular Session - 2003
                              IN THE HOUSE OF REPRESENTATIVES
                                     HOUSE BILL NO. 392
                                BY WAYS AND MEANS COMMITTEE
  1                                        AN ACT
  7        BINGO PAPER.
  8    Be It Enacted by the Legislature of the State of Idaho:
  9        SECTION 1.  That Section 67-7709, Idaho Code, be, and the same  is  hereby
 10    amended to read as follows:
 11        67-7709.  ACCOUNTING  AND USE OF BINGO PROCEEDS. (1) All funds received in
 12    connection with a bingo game required to be licensed pursuant to this  chapter
 13    and  the  rules  of the state lottery commission shall be placed in a separate
 14    bank account. No funds may be disbursed from this account except the  charita-
 15    ble  or  nonprofit  organization  may expend proceeds for prizes, advertising,
 16    utilities and the purchase of supplies and equipment in playing  bingo,  taxes
 17    and  license  fees  related to bingo, the payment of compensation, and for the
 18    purposes set forth below for the remaining proceeds. Any proceeds available in
 19    the account after payment of the above expenses shall inure to the  charitable
 20    or  nonprofit organization to be used for religious, charitable, civic, scien-
 21    tific testing, public safety, literary or educational purposes or for purchas-
 22    ing, constructing, maintaining, operating or using equipment  or  land,  or  a
 23    building or improvements thereto, owned, leased or rented by and for the char-
 24    itable or nonprofit organization and used for civic purposes or made available
 25    by the charitable or nonprofit organization for use by the general public from
 26    time  to  time, or to foster amateur sports competition, or for the prevention
 27    of cruelty to children or animals, provided that no proceeds shall be used  or
 28    expended  directly  or  indirectly  to  compensate  officers  or directors. No
 29    employees of the charitable organization may be compensated  from  bingo  pro-
 30    ceeds  except as provided in this subsection. All gross revenues received from
 31    bingo games by a charitable or nonprofit organization must be disbursed in the
 32    following manner, unless otherwise provided in section  67-7708,  Idaho  Code:
 33    not more than sixty-five percent (65%) of the gross revenues shall be utilized
 34    for prizes in the charitable bingo game, not less than twenty percent (20%) of
 35    gross  revenues  shall be used for charitable purposes enumerated in this sub-
 36    section and not more than fifteen percent (15%) of the gross revenues shall be
 37    used for administrative expenses associated with the charitable bingo game. If
 38    agreed upon by its board of directors, a charitable organization may  decrease
 39    gross  revenues  spent  on administrative expenses associated with bingo games
 40    and allocate those revenues to prizes so long as no more than seventy  percent
 41    (70%) of the gross revenues is utilized for prizes on the bingo game. Two hun-
 42    dred  fifty  dollars  ($250) or one-tenth of one percent (.1%) of annual gross
 43    revenues, as per the previous year's annual bingo report whichever is  greater
  1    may  be  paid  as wages for the conduct of any one (1) bingo session. Such pay
  2    shall be on an hourly basis and shall be directly related to the  preparation,
  3    conduct  of  and cleaning following a bingo session.  Such wages shall be part
  4    of the fifteen percent (15%) gross revenues used for administrative  expenses.
  5    An organization requesting an exemption from the disbursement percentages pro-
  6    vided  in  this  subsection  for administrative costs may request an exemption
  7    from the state lottery commission.
  8        (2)  Any charitable or nonprofit organization conducting bingo games  pur-
  9    suant  to  this  chapter shall prepare a statement at the close of its license
 10    year and shall file such statement with the state lottery. The statement shall
 11    be prepared on a form prescribed by the lottery commission and shall  include,
 12    at a minimum, the following information:
 13        (a)  The  number  of bingo sessions conducted or sponsored by the licensed
 14        organization;
 15        (b)  The location and date at which each bingo session was conducted;
 16        (c)  The gross revenues of each bingo session;
 17        (d)  The fair market value of any prize given at each bingo session;
 18        (e)  The number of individual players participating in each session;
 19        (f)  The number of cards played in each session;
 20        (g)  The amount paid in prizes at each session;
 21        (fh)  The amount paid to the charitable organization;
 22        (gi)  All disbursements from bingo revenue and the purpose of  those  dis-
 23        bursements  must  be documented on a general ledger and submitted with the
 24        annual bingo report to the Idaho lottery commission; and
 25        (hj)  An accounting of all gross revenues and the  disbursements  required
 26        by  statute  and  rule of the state lottery commission must be retained in
 27        permanent records with the organization, including the date of each trans-
 28        action and the name and address of each payee for all  prize  payments  in
 29        excess of one hundred dollars ($100).
 30        (3)  Any  organization required to be licensed to conduct bingo operations
 31    under the provisions of this chapter shall use only nonreusable colored  bingo
 32    paper  so  that  all  sales may be tracked. The nonreusable colored paper must
 33    have a series and serial number on each card. At the conclusion of  each  ses-
 34    sion,  all  organizations using nonreusable bingo paper must track their bingo
 35    sales per session by recording the series and  serial  numbers  of  all  paper
 36    sold,  damaged, donated or used for promotion in that session. Each such orga-
 37    nization shall keep a ledger of the numbers of all  such  papers  used  during
 38    each session. All paper must be tracked as either sold, damaged, donated, used
 39    for promotion, or omitted from the original distributor or manufacturer. Paper
 40    tracking  ledgers and invoices from the distributor or manufacturer for nonre-
 41    fundable colored bingo paper must be kept with the permanent records for  that
 42    bingo operation.
 43        (4)  Any person who shall willfully or knowingly furnish, supply or other-
 44    wise  give  false  information in any statement filed pursuant to this section
 45    shall be guilty of a misdemeanor.
 46        (45)  All financial books, papers, records and documents of  an  organiza-
 47    tion  shall  be  kept  as determined by rule of the state lottery and shall be
 48    open to inspection by the county sheriff of the county, or the chief of police
 49    of the city, or the prosecuting attorney of the county where  the  bingo  game
 50    was held, or the attorney general or the state lottery at reasonable times and
 51    during reasonable hours.
 52        (56)  Every  charitable or nonprofit organization whose annual gross reve-
 53    nues exceed two hundred thousand dollars  ($200,000)  from  the  operation  of
 54    bingo  games shall provide the state lottery with a copy of an annual audit of
 55    the bingo operation. The audit shall be performed  by  an  independent  public
  1    accountant  and submitted within ninety (90) days after the end of the license
  2    year.

Statement of Purpose / Fiscal Impact

                       STATEMENT OF PURPOSE
                             RS 13228
Confusion has arisen concerning rules promulgated by the Idaho
State Lottery Commission requiring the tracking of bingo sales. 
This amendment clarifies that bingo operations must track
participation by players and the inventory and use of bingo paper
on a per session basis.
                          FISCAL IMPACT
There is no fiscal impact to the general fund.

Name: Roger Simmons, Director, Idaho State Lottery 
Phone: (208) 334-2600