2005 Legislation
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HOUSE BILL NO. 269 – Holiday Christmas tree fundraiser

HOUSE BILL NO. 269

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Bill Status



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

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   First Regular Session - 2005
                                                                        
                                                                        
                              IN 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 -- AND DUCK 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 / Fiscal Impact


                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