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H0269......................................................by STATE AFFAIRS HOLIDAY CHRISTMAS TREE FUNDRAISER - Amends existing law to provide regulation of and limitations on holiday Christmas tree fundraisers by the Lottery Commission. 02/25 House intro - 1st rdg - to printing 02/28 Rpt prt - to St Aff 03/14 Rpt out - rec d/p - to 2nd rdg 03/15 2nd rdg - to 3rd rdg 03/16 3rd rdg - PASSED - 68-0-2 AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer, Bedke, Bell, Bilbao, Black, Block, Boe, Bolz, Bradford, Cannon, Chadderdon, Clark, Collins, Deal, Denney, Edmunson, Ellsworth, Eskridge, Field(18), Field(23), Garrett, Hart(Jacobson), Harwood, Henbest, Henderson, Jaquet, Jones, Kemp, Lake, LeFavour, Loertscher, Martinez, Mathews, McGeachin, McKague, Miller, Mitchell, Nielsen, Nonini, Pasley-Stuart, Pence, Raybould, Ring, Ringo, Roberts, Rusche, Rydalch, Sali, Sayler, Schaefer, Shepherd(2), Shepherd(8), Shirley, Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Trail, Wills, Wood, Mr. Speaker NAYS -- None Absent and excused -- Crow, Moyle Floor Sponsor - Jaquet Title apvd - to Senate 03/17 Senate intro - 1st rdg - to St Aff 03/25 Rpt out - rec d/p - to 2nd rdg 03/29 2nd rdg - to 3rd rdg Rls susp - PASSED - 18-17-0 AYES -- Andreason, Bunderson, Burkett, Coiner, Darrington, Davis, Gannon, Kelly, Langhorst, Little, Lodge, Malepeai, Marley, McKenzie, Schroeder, Stegner, Stennett, Werk NAYS -- Brandt, Broadsword, Burtenshaw, Cameron, Compton, Corder, Fulcher, Geddes, Goedde, Hill, Jorgenson, Keough, McGee, Pearce, Richardson, Sweet, Williams Absent and excused -- None Floor Sponsor - Stennett Title apvd - to House 03/30 To enrol 03/31 Rpt enrol - Sp signed - Pres signed 04/04 To Governor 04/12 Governor signed Session Law Chapter 356 Effective: 07/01/05
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-eighth Legislature First Regular Session - 2005IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 269 BY STATE AFFAIRS COMMITTEE 1 AN ACT 2 RELATING TO CHARITABLE RAFFLES; AMENDING SECTION 67-7702, IDAHO CODE, TO FUR- 3 THER DEFINE TERMS; AND AMENDING SECTION 67-7710, IDAHO CODE, TO PROVIDE 4 REGULATION OF AND LIMITATIONS ON HOLIDAY CHRISTMAS TREE FUNDRAISERS BY THE 5 LOTTERY COMMISSION. 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) "Holiday Christmas tree fundraiser" means a charitable raffle played 7 by persons bidding on decorated holiday trees with the proceeds being utilized 8 for senior citizen centers or hospitals or hospital auxiliaries. With the 9 exception of determining "net proceeds," all restrictions and requirements 10 applicable to the conduct of charitable raffles in this chapter shall also 11 apply to the conduct of holiday Christmas tree fundraisers. 12 (8) "Nonprofit organization" means an organization incorporated under 13 chapter 3, title 30, Idaho Code, or an unincorporated association recognized 14 under chapter 7, title 53, Idaho Code. 15 (89) "Organization" means a charitable organization or a nonprofit orga- 16 nization. 17 (910) "Person" shall be construed to mean and include an individual, asso- 18 ciation, corporation, club, trust, estate, society, company, joint stock com- 19 pany, receiver, trustee, assignee, referee or any other person acting in a 20 fiduciary or representative capacity, whether appointed by a court or other- 21 wise, and any combination of individuals. "Person" shall also be construed to 22 mean and include departments, commissions, agencies and instrumentalities of 23 the state of Idaho, including counties and municipalities and agencies or 24 instrumentalities thereof. 25 (101) "Raffle" means a game in which the prize is won by random drawing of 26 the name or number of one (1) or more persons purchasing chances. 27 (112) "Session" means a period of time not to exceed eight (8) hours in 28 any one (1) day in which players are allowed to participate in bingo games 29 operated by a charitable or nonprofit organization. 30 (123) "Special permit" means a permit that can be obtained by a charitable 31 organization that is not licensed but qualifies to operate an exempt bingo 32 operation. This permit allows a qualifying organization to operate bingo games 33 at a county fair for the duration of the fair. 34 (134) "Vendor" means an applicant, licensee or manufacturer, distributor 35 or supplier licensed or unlicensed that furnishes or supplies bingo or raffle 36 equipment, disposable or nondisposable cards and any and all related gaming 37 equipment. 38 SECTION 2. That Section 67-7710, Idaho Code, be, and the same is hereby 39 amended to read as follows: 40 67-7710. RAFFLES --ANDDUCK RACES -- HOLIDAY CHRISTMAS TREE FUNDRAISERS. 41 (1) It is lawful for any charitable organization to conduct raffles in accor- 42 dance with the provisions of this chapter. Any charitable or nonprofit organi- 43 zation who conducts a raffle in violation of any provision of this chapter may 44 be assessed a civil penalty not in excess of ten thousand dollars ($10,000). 45 Additionally, any person knowingly conducting a raffle in violation of any 46 provision of this chapter may be charged under the gambling laws of the state 47 contained in chapter 38, title 18, Idaho Code. It shall not constitute a 48 violation of state law to advertise a charitable raffle conducted pursuant to 49 this section. It is lawful to participate in a charitable raffle conducted 50 pursuant to this chapter. A charitable raffle conducted lawfully pursuant to 51 this chapter is not gambling for purposes of chapter 38, title 18, Idaho Code. 52 (2) Raffles shall be limited to twelve (12) per charitable organization 53 per year, provided that this limitation shall not apply to public or private 3 1 elementary or secondary schools located in this state. The maximum aggregate 2 value of cash prize(s) that may be offered or paid for any one (1) raffle, 3 which is not a duck race or a holiday Christmas tree fundraiser, is one thou- 4 sand dollars ($1,000) and if merchandise is used as a prize and it is not 5 redeemable for cash, there shall be no limit on the maximum amount of value 6 for the merchandise. For duck races, there shall be no limit on the maximum 7 amount of the value of a cash prize if the cash prize is underwritten by 8 insurance. If a duck race offers a cash prize that is not underwritten by 9 insurance, the maximum aggregate value of the cash prize(s) is one thousand 10 dollars ($1,000). There shall be no maximum value on the amount that a tree 11 may be raffled for in a holiday Christmas tree fundraiser. There shall be no 12 limit on the maximum of value for merchandise used as a prize in a duck race 13 or a holiday Christmas tree fundraiser if the merchandise is not redeemable 14 for cash. 15 (3) As used in this subsection, "net proceeds of a charitable raffle" 16 means the gross receipts less the cost of prizes awarded. "Net proceeds of a 17 duck race" shall mean gross receipts, less the cost of prizes awarded and the 18 rental cost of the ducks used in the race. "Net proceeds of a holiday Christ- 19 mas tree fundraiser" shall mean the gross receipts less the cost of procuring 20 the trees or other prizes. No less than ninety percent (90%) of the net pro- 21 ceeds of a raffle shall be used by the charitable organization for charitable, 22 religious, educational, civic or other nonprofit purposes. 23 (4) Any licensed charitable or nonprofit organization conducting raffles 24 pursuant to this chapter shall prepare a statement at the close of its license 25 year and shall file such statement with the state lottery. The statement shall 26 be prepared on a form prescribed by the lottery commission and shall include, 27 at a minimum, the following information: 28 (a) The number of raffles conducted or sponsored by the charitable or 29 nonprofit organization; 30 (b) The location and date at which each raffle was conducted; 31 (c) The gross revenues of each raffle; 32 (d) The fair market value of any prize given at each raffle; 33 (e) The amount paid in prizes at each raffle; 34 (f) The amount paid to the charitable organization; 35 (g) An accounting of all gross revenues and the disbursements required by 36 statute and rule of the state lottery commission. 37 (5) Every charitable or nonprofit organization whose annual gross reve- 38 nues exceed two hundred thousand dollars ($200,000) from the operation of raf- 39 fle events shall provide the state lottery with a copy of an annual audit of 40 the raffle events. The audit shall be performed by an independent public 41 accountant and submitted within ninety (90) days after the end of the license 42 year.
STATEMENT OF PURPOSE RS 15023 This legislation amends Idaho Code to further define terms and to provide regulation of and limitations on holiday Christmas tree fundraisers by the Lottery Commission. FISCAL IMPACT There is no cost incurred. Contact Name: Representative Wendy Jaquet Phone: 332-1130 Name: Representative Donna Pence Phone: 332-1203 STATEMENT OF PURPOSE/FISCAL NOTE H 269