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IN THE SENATE
SENATE BILL NO. 1254
BY STATE AFFAIRS COMMITTEE
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AN ACT
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REVISE PROVISIONS REGARDING THE BINGO-RAFFLE ADVISORY BOARD AND TO MAKE
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AND DUTIES OF THE BINGO-RAFFLE ADVISORY BOARD AND TO MAKE TECHNICAL COR-
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ING AND THE USE OF BINGO PROCEEDS AND TO REVISE TERMINOLOGY; AMENDING
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TAIN LICENSE FEE, TO REMOVE PROVISIONS REGARDING SUSPENSION AND REVOCA-
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CODE, TO REDESIGNATE THE SECTION AND TO REVISE LICENSURE REQUIREMENTS;
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A CORRECT CODE REFERENCE, AND TO MAKE TECHNICAL CORRECTIONS; AMENDING
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OGY AND TO MAKE TECHNICAL CORRECTIONS.
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amended to read as follows:
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67-7702. DEFINITIONS. As used in this chapter:
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(1) "Bingo" means the traditional game of chance played for a prize de-
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termined prior to the start of the game.
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(a) Upon approval by the bingo-raffle advisory board, a licensee may
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offer bingo games in which players are allowed to select their own num-
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bers if the cards used to conduct the games have controls that provide an
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audit trail adequate to determine all winning number combinations.
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(b) Card-minding devices are prohibited. Autodaubing features are
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prohibited.
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(c) Bingo shall not include "instant bingo," which is a game of chance
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played by the selection of one (1) or more prepackaged bingo cards, with
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the winner determined by the appearance of a preprinted winning desig-
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nation on the bingo card.
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(2) "Bingo-raffle advisory board" means a board of six five (65) per-
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sons chosen by the governor to make advisory recommendations regarding bingo
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(3) "Charitable organization" means an organization that has been in
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continuous existence in the county of operation of the charitable bingo game
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or raffle for at least one (1) year, that conducts charitable activities, and
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that is exempt from taxation under section 501(c)(3), 501(c)(4), 501(c)(6),
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501(c)(8), 501(c)(10), 501(c)(19) or 501(d) of the Internal Revenue Code
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nonprofit charitable, civic, religious, fraternal, patriotic or veterans
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organization or as a nonprofit volunteer fire department, or as a nonprofit
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volunteer rescue squad, or as a nonprofit volunteer educational booster
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group, parent-teacher organization or association. If the organization has
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local branches or chapters, the term "charitable organization" means the
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local branch or chapter operating the bingo or raffle game.
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(4) "Charitable purpose" means:
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(a) The advancement of a religious, charitable, civic, scientific
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testing, public safety, literary, or educational purpose;
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(b) The purchase, construction, maintenance, operation, or use of
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equipment or land, or a building or improvements thereto, that is owned,
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leased, or rented by and for the charitable or nonprofit organization,
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and that is used for civic purposes or made available by the charitable
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or nonprofit organization for use by the general public from time to
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time;
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(c) To foster amateur sports competition; or
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(d) The prevention of cruelty to humans or animals.
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(56) "Duck race" means a charitable raffle played by releasing num-
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bered, inanimate toys (ducks) into a body of moving water. A person who has
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been assigned the same number as the first duck to cross a predetermined
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point in the water (the finish line) is the winner. Other prizes may be
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awarded on the basis of the order in which the ducks cross the finish line.
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With the exception of determining "net proceeds," all restrictions and re-
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quirements applicable to the conduct of charitable raffles in this chapter
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shall also apply to the conduct of duck races.
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(67) "Electronic bingo card" or "face" means an electronic facsimile
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of a bingo card or face, from a permutation of bingo cards formulated by a
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card-monitoring device. An electronic bingo card or face is deemed to be a
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form of disposable paper bingo card.
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(78) (a) "Electronic bingo device" means an electronic device used by a
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bingo player to monitor bingo cards purchased at the time and place of a
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licensed organization's bingo session and that:
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(i) Provides a means for bingo players to input numbers announced
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by a bingo caller;
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(ii) Requires the player to manually enter the numbers as they are
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announced by a bingo caller;
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(iii) Compares the numbers entered by the bingo player to the num-
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bers contained on bingo cards previously stored in the electronic
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database of the device;
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(iv) Identifies winning bingo patterns; and
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(v) Signals only the bingo player when a winning bingo pattern is
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achieved.
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(b) "Electronic bingo device" does not mean or include any device into
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which coins, currency, or tokens are inserted to activate play, or any
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device that is interfaced with or connected to any host system which can
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transmit or receive any ball call information, site system or any other
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type of bingo equipment once the device has been activated for use by the
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bingo player.
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(89) "Gross revenues" means all moneys paid by players during a bingo
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game or session for the playing of bingo or raffle events and does not include
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money paid for concessions; provided that the expenses of renting electronic
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bingo devices from a licensed vendor and the fees collected from players for
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the use of electronic bingo devices must be reported separately on the organ-
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ization's annual bingo report and must be netted for purposes of determining
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gross revenues as follows: only fees collected from players in excess of the
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rental charges paid to licensed vendors will be considered to be a part of
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gross revenues; and if the costs of renting electronic bingo devices from a
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licensed vendor exceed the fees collected from players for use of electronic
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bingo devices, the difference will be considered an administrative expense
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(910) "Host system" means the computer hardware, software and pe-
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ripheral equipment of a licensed manufacturer that is used to generate and
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download electronic bingo cards to a licensed organization's site system and
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that monitors sales and other activities of a site system.
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(11) "Lottery" or "state lottery" means the state lottery established
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(102) "Nonprofit organization" means an organization incorporated un-
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in the county of operation of the charitable bingo game or raffle for at least
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one (1) year and that conducts charitable activities in advancement of a
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(113) "Organization" means a charitable organization or a nonprofit or-
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ganization.
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(124) "Person" shall be construed to mean and include an individual, as-
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sociation, corporation, club, trust, estate, society, company, joint stock
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company, receiver, trustee, assignee, referee or any other person acting
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in a fiduciary or representative capacity, whether appointed by a court or
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otherwise, and any combination of individuals. "Person" shall also be con-
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strued to mean and include departments, commissions, agencies and instru-
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agencies or instrumentalities thereof.
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(135) "Raffle" means a game in which the prize is won by random drawing
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of the name or number of one (1) or more persons purchasing chances.
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(146) "Session" means a period of time not to exceed eight (8) hours in
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any one (1) day in which players are allowed to participate in bingo games
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operated by a charitable or nonprofit organization.
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(157) "Site system" means the computer hardware, software and periph-
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eral equipment used by a licensed organization at the site of its bingo ses-
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sion that provides electronic bingo cards or bingo card monitoring devices
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to players, and that receipts the sale or rental of such cards and devices and
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generates reports relative to such sales or rentals.
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(168) "Vendor" means an applicant, licensee or manufacturer, distribu-
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tor or supplier, licensed or unlicensed, that furnishes or supplies bingo or
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raffle equipment, disposable or nondisposable cards, and any and all related
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gaming equipment.
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amended to read as follows:
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67-7703. BINGO-RAFFLE ADVISORY BOARD ESTABLISHED. There is estab-
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lished the bingo-raffle advisory board, which is responsible for making
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recommendations for the improvement of bingo and raffle operations and reg-
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ulation to the state lottery commission, the governor and the legislature,
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including recommendations for administrative rules.
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amended to read as follows:
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67-7704. BINGO-RAFFLE ADVISORY BOARD -- MEMBERS -- APPOINTMENT --
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QUALIFICATIONS. (1) The bingo-raffle advisory board shall consist of six
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five (65) members appointed by the governor and confirmed by the senate.
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Members shall be selected and appointed because of their ability and dispo-
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sition to serve the state's interest and for knowledge of bingo and or raffle
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operations. Members appointed by the governor shall serve at the pleasure of
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the governor, and shall be residents over twenty-five (25) years of age who
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have experience in administrating, conducting or regulating bingo or raffle
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operations. There shall be one (1) member from each of the following six (6)
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districts initially established as follows:
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(a) District No. 1. The counties of Benewah, Bonner, Boundary, Koote-
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nai and Shoshone.
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and Nez Perce.
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(d) District No. 4. The counties of Blaine, Camas, Cassia, Gooding,
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bou, Franklin, Oneida and Power.
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(f) District No. 6. The counties of Bonneville, Butte, Clark, Custer,
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(2) The terms of appointed members of the bingo-raffle advisory board
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shall be three (3) years. At the end of a term, a member continues to serve
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until a successor is appointed and qualifies. A member who is appointed af-
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ter a term has begun serves only for the rest of the term and until a succes-
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sor is appointed and qualifies. A vacancy of the board shall be filled in the
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same manner as regular appointments are made, and the term shall be for the
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unexpired portion of the regular term. No member of the board shall have a
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direct or indirect pecuniary interest in any contract or agreement entered
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into by the board. No more than three (3) members of the board shall belong to
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the same political party.
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amended to read as follows:
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67-7705. QUORUM -- MEETINGS -- MINUTES -- COMPENSATION. A majority of
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the qualified membership of the bingo-raffle advisory board is a quorum. The
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advisory board may not act unless at least four three (43) members agree. The
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advisory board shall meet at least three two (32) times per year, and may meet
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more often as it deems necessary. Written notice of the time and place of
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each meeting shall be given to each board member. The advisory board shall
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select or elect one (1) of its members to be chairman, one (1) of its members
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to be vice-chairman vice chairman and one (1) of its members to be secretary.
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The secretary of the advisory board shall promptly send the lottery commis-
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sion a certified copy of the minutes of each meeting of the advisory board.
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The minutes shall include a copy of the current recommendations of the board,
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including recommended administrative rules. Members of the bingo-raffle
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advisory board shall receive compensation as provided in section 59-509(b),
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expenses incurred in the performance of their duties as a member, as provided
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by law.
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amended to read as follows:
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67-7706. BINGO-RAFFLE ADVISORY BOARD -- POWERS -- DUTIES. (1) The
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bingo-raffle advisory board shall review the operation and regulation of
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the state lottery commission regarding, but not limited to, the following
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issues:
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(1a) The issuances of licenses for the operation of bingo games and raf-
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fle events, including the denial, suspension or revocation of licenses;
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(2b) The collection of fees, penalties, fines and other moneys from or-
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ganizations conducting or applying to conduct bingo games and/or raffle
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events;
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(3c) The maintenance by bingo operators of records and the efficacy of
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the statutes and rules requiring maintenance of records;
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(4d) The recordation and reporting of income from bingo games and raf-
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fle events to the state lottery commission, and the efficacy of the
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statutes and rules governing recordation and reporting;
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(5e) The efficacy and profitability of income and expenditure limits
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placed on organizations, by statute or rule, operating bingo games
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and/or raffle events in the state;
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(6f) The type, scope, manner, and frequency of bingo games and/or raf-
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governing those considerations; and
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(7) Possible cooperative agreements with county, city, and other local
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and state agencies that would enhance the safety and profitability of bingo
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games and/or raffle events;
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(8) Possible written agreements or contracts with other states or any
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agency or contractor of another state for the operation and promotion of
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joint bingo games and/or raffle events that would enhance the safety and
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(9g) What rules should be promulgated by the state lottery commission,
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if any, to ensure the safe, orderly and trustworthy operation of bingo
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(2) The bingo-raffle advisory board shall, at least twice a year, re-
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port to the state lottery commission addressing the operations and activi-
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ties of the advisory board and the major issues facing bingo charitable gam-
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ing operators in the state. The lottery security division shall provide a
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final annual report to the governor, the lottery commission, the president
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pro tempore of the senate and the speaker of the house of representatives of
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amended to read as follows:
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67-7707. BINGO BY CHARITABLE OR NONPROFIT ORGANIZATIONS. (1) It is
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lawful for a charitable or nonprofit organization to conduct bingo sessions
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or games in accordance with the provisions of this chapter and the rules of
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the state lottery commission. Any charitable or nonprofit organization, any
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member of a charitable or nonprofit organization, or any person that who con-
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ducts a bingo session or game in violation of any provision of this chapter or
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the rules of the state lottery commission may be assessed a civil penalty not
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in excess of ten thousand dollars ($10,000) per violation. Additionally,
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any person knowingly conducting a bingo session or game in violation of the
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provisions of this chapter or the rules of the state lottery commission may
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Code. Violations will be prosecuted by the county prosecuting attorney.
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(2) No person under the age of eighteen (18) years may play bingo in
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games where a cash prize is offered or where the prize exceeds twenty-five
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dollars ($25.00) in value for merchandise.
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amended to read as follows:
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67-7708. LIMIT ON SESSIONS AND BINGO PRIZES. The number of sessions or
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games of bingo conducted or sponsored by a charitable or nonprofit organiza-
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tion shall be limited to three (3) sessions per week and such sessions shall
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not exceed a period of eight (8) hours per day. The maximum prize that may
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be offered or paid for any one (1) game of bingo, and the maximum aggregate
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amount of prizes that may be offered or paid for any one (1) session of bingo,
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shall be set by rule of the state lottery commission.
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67-7709. ACCOUNTING AND USE OF BINGO PROCEEDS.
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(1) (a) All funds received in connection with a bingo game required to
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be licensed pursuant to this chapter and the rules of the state lottery
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commission shall be placed in a separate bank account that is in the
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name of and controlled by the charitable or nonprofit organization. No
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funds may be disbursed from this account except the charitable or non-
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profit organization may expend proceeds for prizes, advertising, rent
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including, but not limited to, renting space, chairs, tables, equipment
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and electronic bingo devices, utilities, the purchase of supplies and
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equipment in playing bingo, taxes and license fees related to bingo, the
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payment of compensation, and for the purposes set forth below for the
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remaining proceeds.
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(b) Funds from bingo accounts must be withdrawn by preprinted, con-
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secutively numbered checks or withdrawal slips, signed by an autho-
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rized representative of the licensed authorized organization and made
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payable to a person. A check or withdrawal slip shall not be made
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payable to "cash," "bearer" or a fictitious payee. The nature of the
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payment made shall be noted on the face of the check or withdrawal slip.
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Checks for the bingo account shall be imprinted with the words "bingo
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account" and shall contain the organization's bingo license name on the
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face of each check. A licensed authorized organization shall keep and
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account for all checks and withdrawal slips, including voided checks
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and withdrawal slips. Electronic transfers from the bingo account may
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be used for payments made to another governmental agency.
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(c) Any proceeds available in a bingo account after payment of the
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expenses set forth in paragraph (1)(a) of this subsection shall inure
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to the charitable or nonprofit organization to be used for religious,
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a charitable, civic, scientific testing, public safety, literary or
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educational purposes or for purchasing, constructing, maintaining,
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operating or using equipment or land, or a building or improvements
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thereto, owned, leased or rented by and for the charitable or nonprofit
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organization and used for civic purposes or made available by the chari-
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table or nonprofit organization for use by the general public from time
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to time, or to foster amateur sports competition, or for the prevention
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of cruelty to children or animals purpose as defined in section 67-7702,
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or indirectly to compensate officers or directors. The licensed bingo
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operation must maintain records for five (5) years on forms prescribed
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by the commission or pursuant to rules prescribed by the commission
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showing the charitable activities to which the proceeds described in
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this paragraph are applied. No employees of the charitable or nonprofit
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organization may be compensated from bingo proceeds except as provided
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in this subsection.
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(d) (i) All gross revenues received from bingo games by a charitable or
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nonprofit organization must be disbursed in the following manner,
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less than twenty percent (20%) of gross revenues shall be used for
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charitable purposes enumerated in this subsection, and a maximum
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of eighteen percent (18%) of the gross revenues may be used for ad-
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ministrative expenses associated with the charitable bingo game.
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An organization requesting an exemption from the disbursement
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percentages provided in this paragraph for administrative costs
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shall request such an exemption from the state lottery commission.
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(ii) Two hundred fifty dollars ($250) or one-tenth of one per-
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cent (.1%) of annual gross revenues, as per the previous year's
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annual bingo report, whichever is greater, may be paid as wages
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for the conduct of any one (1) bingo session. Such wages shall be
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paid on an hourly basis, shall be directly related to the prepara-
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tion, conduct of and cleaning following a bingo session, and shall
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be paid out of the organization's separate bank account unless the
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director of lottery security has given prior written permission to
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pay wages out of another account. Such wages shall be part of the
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eighteen percent (18%) gross revenues used for administrative ex-
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penses.
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(2) Any licensed charitable or nonprofit organization conducting bingo
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games pursuant to this chapter shall prepare a statement prescribed by the
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commission at the close of its license year and shall file such statement
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with the state lottery. The statement shall be prepared on a form prescribed
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by the lottery commission and shall include organization must also keep in
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its records, at a minimum, the following information:
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(a) The number of bingo sessions conducted or sponsored by the licensed
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organization;
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(b) The location and date at which each bingo session was conducted;
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(c) The gross revenues of each bingo session;
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(d) The fair market value of any prize given at each bingo session;
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(e) The number of individual players participating in each session;
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(f) The number of cards played in each session;
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(g) The amount paid in prizes at each session;
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(h) The amount paid to the charitable or nonprofit organization;
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(i) All disbursements from bingo revenue and the purpose of those dis-
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bursements must be documented on a general ledger and submitted with the
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(j) An accounting of all gross revenues and the disbursements required
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by statute and rule of the state lottery commission must be retained in
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records with the organization, including the date of each transaction
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and the The date, name, and address of each payee for all prize payments
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in excess of one hundred dollars ($100); and
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(k) Tthe disbursements of funds to charitable activities, including
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the identity of the charity and/or purpose and use of the disbursements
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by the charity. Such records shall be retained for a period of five (5)
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years.
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(3) Any organization required to be licensed to conduct bingo oper-
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ations under the provisions of this chapter shall use only nonreusable
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colored bingo paper or electronic bingo paper so that all sales may be
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tracked. The nonreusable colored paper must have a series and serial number
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on each card. At the conclusion of each session, all organizations using
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nonreusable bingo paper must track their bingo sales per session by record-
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ing the series and serial numbers of all paper sold, damaged, donated or used
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for promotion in that session. Each such organization shall keep a ledger
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of the numbers of all such papers used during each session. All paper must
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be tracked as either sold, damaged, donated, used for promotion, or omitted
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from the original distributor or manufacturer. Paper tracking ledgers and
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invoices from the distributor or manufacturer for nonrefundable colored
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bingo paper must be kept with the permanent records for that bingo operation.
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(4) Any person who shall willfully or knowingly furnish, supply or oth-
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erwise give false information in any statement filed pursuant to this sec-
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tion shall be guilty of a misdemeanor.
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(5) All financial books, papers, records and documents of an organiza-
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tion shall be kept as determined by rule of the state lottery commission and
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of police of the city, or the prosecuting attorney of the county where the
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bingo game was held, or the attorney general or the state lottery at reason-
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able times and during reasonable hours.
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(6) Every charitable or nonprofit organization whose annual gross rev-
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enues exceed two hundred thousand dollars ($200,000) from the operation of
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bingo games shall provide the state lottery with a copy of an annual audit
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of the bingo operation. The audit shall be performed by an independent cer-
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days after the end of the license year.
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(7) An accounting of all gross revenues and the disbursements required
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by statute and rule of the commission shall be retained in records of the
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organization. All bingo records shall be retained for a period of five (5)
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years.
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amended to read as follows:
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67-7710. RAFFLES -- DUCK RACES. (1) It is lawful for any charitable or
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nonprofit organization to conduct raffles in accordance with the provisions
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of this chapter. Any charitable or nonprofit organization or any person that
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conducts a raffle in violation of any provision of this chapter may be as-
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sessed a civil penalty not in excess of ten thousand dollars ($10,000) per
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violation. Additionally, any person knowingly conducting a raffle in viola-
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tion of any provision of this chapter or rule of the state lottery commission
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may be charged under the gambling laws of the state contained in chapter 38,
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tery not in excess of ten thousand dollars ($10,000) per violation. It shall
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not constitute a violation of state law to advertise a charitable raffle con-
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ducted pursuant to this section. It is lawful to participate in a charitable
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raffle conducted pursuant to this chapter. A charitable raffle conducted
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lawfully pursuant to this chapter is not gambling for purposes of chapter 38,
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(2) Before any raffle ticket sales may be legally conducted, the fol-
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lowing details shall be determined for each raffle:
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(a) The date raffle ticket sales begin;
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(b) Price of raffle ticket sales;
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(c) Prizes to be awarded for each raffle; and
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(d) A specified end date or specified number of raffle tickets to be
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sold for each raffle.
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(12) per charitable or nonprofit organization per year, provided that this
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limitation shall not apply to public or private elementary schools, sec-
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ondary schools or higher education institutions located in this state.
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(4) Licensed and unlicensed charitable or nonprofit organizations
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shall conduct and complete raffle drawings within one (1) year from the first
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day raffle chances are available for purchase. If a license expires prior to
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the raffle drawing, a licensed charitable organization must renew and hold a
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valid raffle license prior to completion of the raffle.
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(5) The maximum aggregate value of cash prize(s) that may be offered or
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paid for any one (1) raffle, which that is not a duck race is one thousand dol-
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lars ($1,000), and if merchandise is used as a prize and it is not redeemable
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for cash, there shall be no limit on the maximum amount of value for the mer-
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chandise. For duck races, there shall be no limit on the maximum amount of
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the value of a cash prize if the cash prize is underwritten by insurance. If a
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duck race offers a cash prize that is not underwritten by insurance, the max-
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imum aggregate value of the cash prize(s) is one thousand dollars ($1,000).
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There shall be no limit on the maximum of value for merchandise used as a
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prize in a duck race if the merchandise is not redeemable for cash.
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(36) As used in this subsection, "net proceeds of a charitable raffle"
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means the gross receipts, less the cost of prizes awarded. "Net proceeds of a
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duck race" shall mean gross receipts, less the cost of prizes awarded and the
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rental cost of the ducks used in the race. No less than eighty percent (80%)
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of the net proceeds of a raffle shall be used by the charitable or nonprofit
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organization for a charitable, religious, educational, civic or other char-
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(47) Any licensed charitable or nonprofit organization conducting raf-
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fles pursuant to this chapter shall prepare a statement prescribed by the
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commission at the close of its license year and shall file such statement
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with the state lottery. The statement shall be prepared on a form prescribed
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by the lottery commission and shall include organization must also keep in
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its records, at a minimum, the following information:
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(a) The number of raffles conducted or sponsored by the charitable or
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nonprofit organization;
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(b) The location and date at which each raffle was conducted;
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(c) The gross revenues of each raffle;
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(d) The fair market value of any prize given at each raffle;
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(e) The amount paid in prizes at each raffle;
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(f) The amount paid to the charitable or nonprofit organization;
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(g) The number of raffle tickets sold during each raffle; and
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(h) An accounting of all gross revenues and the disbursements required
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by statute and rule of the state lottery commission that shall be re-
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tained in the organization's records for a period of five (5) years.
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(58) Every charitable or nonprofit organization whose annual gross
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revenues exceed two hundred thousand dollars ($200,000) from the operation
46
of raffle events shall provide the state lottery with a copy of an annual au-
47
dit of the raffle events. The audit shall be performed by a certified public
48
49
11
1
2
the end of the license year.
3
(9) Any person who shall willfully or knowingly furnish, supply, or
4
otherwise give false information in any statement filed pursuant to this
5
section shall be guilty of a misdemeanor.
6
7
amended to read as follows:
8
67-7711. LICENSING PROCEDURE. (1) Any charitable or nonprofit organi-
9
10
erate bingo sessions or games or charitable raffles shall make application
11
for a license to the state lottery. The state lottery shall review the li-
12
cense application and shall approve or deny the issuing of a license within
13
fifteen (15) calendar days of receipt of the license application. The state
14
lottery may deny the application if it determines that the applicant has not
15
met requirements for an application imposed in this chapter and rules pro-
16
mulgated pursuant to this chapter or upon any ground for which an application
17
for renewal of a license could be denied or for which an existing licensee's
18
license could be revoked or suspended. Whenever an application is denied,
19
it shall be returned to the applicant by the state lottery with specific rea-
20
sons for the denial. When a license application is approved by the state lot-
21
tery, the state lottery shall issue a license to the applicant. No person or
22
charitable or nonprofit organization, except those exempt pursuant to sec-
23
24
or charitable raffle until it has received a license from the state lottery.
25
The license shall expire one (1) year after the date it was issued.
26
(2) Each application and renewal application shall contain the follow-
27
ing information:
28
(a) The name, address, date of birth, driver's license number and so-
29
cial security number of the applicant and, if the applicant is a corpo-
30
ration, association or other similar legal entity, the name, home ad-
31
dress, date of birth, driver's license number and social security num-
32
ber of each of the officers of the organization, as well as the name and
33
address of the directors, or other persons similarly situated, of the
34
organization;
35
(b) The name, home address, date of birth, driver's license number and
36
social security number of each person or persons responsible for manag-
37
ing the bingo session or game or raffle;
38
(c) (i) In the case of charitable organizations, a copy of the ap-
39
plication for recognition of exemptions and a determination let-
40
ter from the internal revenue service that indicates the organi-
41
zation is a charitable organization and states the section under
42
which that exemption is granted, except that if the organization
43
is a state or local branch, lodge, post or chapter of a national or-
44
ganization, a copy of the determination letter of the national or-
45
ganization shall satisfy this requirement; and
46
(ii) In the case of incorporated nonprofit organizations, a copy
47
of a certificate of existence issued by the secretary of state pur-
48
49
ization's good standing in the state.
12
1
(d) The location at which the applicant will conduct the bingo session
2
or games or drawings for the raffles.
3
(3) Different chapters of an organization may apply for and share one
4
(1) license to conduct raffles as long as the information required in sub-
5
section (2) of this section is provided to the state lottery prior to the is-
6
suance of the license.
7
(4) The organization may apply for the license to coincide with the or-
8
ganization's fiscal year.
9
(5) The operation of bingo sessions or games or charitable raffles
10
shall be the direct responsibility of, and controlled by, the governing body
11
of the organization and the members of the governing body shall be held re-
12
sponsible for the conduct of the bingo sessions or games or raffles.
13
(6) No directors or officers of an organization or persons related to
14
them either by marriage or blood within the second degree shall receive any
15
compensation derived from the proceeds of a bingo session or raffle regu-
16
lated under the provisions of this chapter.
17
(7) An organization shall not contract with any person for the purpose
18
of conducting a bingo session or providing bingo services or conducting a
19
raffle on the organization's behalf, provided that this prohibition does not
20
prevent a bingo an organization from hiring employees and paying wages as
21
22
lottery commission has entered into an agreement or contract with another
23
state for the operation or promotion of joint bingo sessions, the charitable
24
or nonprofit organization may participate in that contract or agreement.
25
(4) Different chapters of an organization may apply for and share one
26
(1) license to conduct raffles as long as the information required in subsec-
27
tion (2) of this section is provided to the lottery prior to the issuance of
28
the license.
29
(5) The organization may apply for the license to coincide with the or-
30
ganization's fiscal year.
31
32
amended to read as follows:
33
67-77123. LICENSE FEES -- SUSPENSION OR REVOCATION. (1) Each organ-
34
ization that applies to the state lottery for a license pursuant to this
35
chapter shall pay annually to the state lottery a nonrefundable license fee,
36
which shall be due upon submission of the application. New organizations
37
38
gross revenues shall pay a license fee of one hundred dollars ($100). Re-
39
newal lLicense fees shall be based on the organization's gross revenues from
40
bingo or raffle operations as required to be reported by statute or rule of
41
the commission. Organizations with gross revenues of twenty-five thousand
42
dollars ($25,000) or less shall pay a fee of one hundred dollars ($100). Or-
43
ganizations with gross revenues of twenty-five thousand dollars ($25,000)
44
to seventy-five thousand dollars ($75,000) shall pay a fee of two hundred
45
dollars ($200). Organizations with gross revenues exceeding seventy-five
46
thousand dollars ($75,000) shall pay a fee of three hundred dollars ($300).
47
New organizations with no history of gross revenues shall pay a fee of one
48
hundred dollars ($100), and the gross revenues indicated in the organiza-
49
tion's first annual report shall determine the license renewal fee.
13
1
(2) Any license issued pursuant to this chapter may be suspended or re-
2
voked by the state lottery if it is found that the licensee or any person con-
3
nected with the licensee has violated any provision of this chapter or any
4
rule of the lottery commission or ordinance of a county adopted pursuant to
5
this chapter or:
6
(a) Has continued to operate bingo sessions or games after losing its
7
tax exempt or nonprofit status or ceases to exercise independent con-
8
trol over its activities or budget as required under the provisions of
9
this chapter;
10
(b) Has violated or has failed or refused to comply with the provisions
11
of this chapter, or has violated the provisions of a rule of the lottery
12
commission or has allowed such a violation to occur upon premises over
13
which the licensee has substantial control;
14
(c) Has knowingly caused, aided or abetted, or conspired with another
15
to cause, any person to fail or refuse to comply with the provisions, re-
16
quirements, conditions, limitation or duties imposed in this chapter,
17
or to fail or refuse to comply with a rule adopted by the state lottery
18
commission;
19
(d) Has obtained a license or permit by fraud, misrepresentation or
20
concealment, or through inadvertence or mistake;
21
(e) Has been convicted, forfeited bond, or has been granted a withheld
22
judgment, upon a charge involving forgery, theft, willful failure to
23
make required payments or reports to a governmental agency at any level,
24
or filing false reports to a governmental agency, or any similar offense
25
or offenses, or of bribing or otherwise unlawfully influencing a public
26
27
whether a felony or misdemeanor, involving gambling activity, physical
28
injury to individuals or moral turpitude;
29
(f) Denies the state lottery access to any place where a licensed game
30
is conducted, denies access to any law enforcement officer, or fails
31
promptly to produce for inspection or audit any records or items as re-
32
quired by law;
33
(g) Fails to have the license available for verification where the li-
34
censed game is conducted;
35
(h) Misrepresents or fails to disclose to the state lottery or any in-
36
vestigating law enforcement officer any material fact;
37
(i) Fails to demonstrate to the state lottery by clear and convincing
38
evidence, qualifications for the license according to state law and the
39
rules of the state lottery establishing such qualifications;
40
(j) Is subject to current prosecution or pending charges, or to a con-
41
viction regardless of whether it has been appealed, for any offense de-
42
scribed in paragraph (e) of this subsection. At the request of an appli-
43
cant for an original license, the state lottery may defer decision upon
44
the application during the pendency of the prosecution or appeal;
45
(k) Has pursued or is pursuing economic gain in a manner or context
46
which violates criminal or civil public policy of this state and creates
47
a reasonable belief that the participation of the person in gaming oper-
48
ations by charitable or nonprofit organizations would be harmful to the
49
proper operation of a lawful bingo or raffle.
14
1
(3) The state lottery may, upon its own motion or upon a written veri-
2
fied complaint of any other person, investigate the operation of any gaming
3
purportedly authorized in this chapter. If the state lottery has reasonable
4
cause to believe that any gaming as described in this chapter violates any of
5
the provisions of this chapter or rules promulgated pursuant to this chap-
6
ter, it may, in its discretion, place in probationary status, revoke, can-
7
cel, rescind or suspend any license. The state lottery may refuse to grant a
8
renewal of the license or it may take other action as may be appropriate un-
9
der this chapter and any rules promulgated pursuant to this chapter. If the
10
state lottery shall refuse to grant a license or refuse to grant a renewal
11
of a license or revoke, cancel, rescind or suspend a license, it shall give
12
the applicant or licensee fifteen (15) calendar days' written notice of its
13
intended action stating generally the basis for its action. Within the fif-
14
teen (15) calendar day notice period, the applicant or licensee shall indi-
15
cate its acceptance of the decision of the state lottery or shall request a
16
hearing to be held in the same manner as hearings in contested cases pursuant
17
18
twenty-one (21) days of the request. The applicant or licensee may appeal
19
the decision of the state lottery after the hearing within the same time and
20
manner as provided for judicial review of actions pursuant to chapter 52, ti-
21
22
herein, shall render the decision of the state lottery final and not subject
23
to further appeal.
24
25
amended to read as follows:
26
67-77132. LICENSURE REQUIREMENTS. A charitable or nonprofit organi-
27
zation conducting a bingo game shall be required to obtain a license if the
28
gross annual bingo sales are ten thousand dollars ($10,000) or more. A char-
29
itable or nonprofit organization conducting a raffle shall be required to
30
obtain a license if the maximum aggregate fair market value of merchandise
31
prizes awarded exceeds five thousand dollars ($5,000).
32
33
hereby amended by the addition thereto of a NEW SECTION, to be known and des-
34
35
67-7713A. LICENSE SUSPENSION OR REVOCATION. (1) Any license issued
36
pursuant to this chapter may be suspended or revoked by the state lottery
37
if it is found that the licensee or any person connected with the licensee
38
has violated any provision of this chapter or any rule of the commission or
39
ordinance of a county adopted pursuant to this chapter or:
40
(a) Has continued to operate bingo sessions or games after losing its
41
tax-exempt or nonprofit status or ceases to exercise independent con-
42
trol over its activities or budget as required under the provisions of
43
this chapter;
44
(b) Has violated or has failed or refused to comply with the provisions
45
of this chapter, or has violated the provisions of a rule of the commis-
46
sion, or has allowed such a violation to occur upon premises over which
47
the licensee has substantial control;
15
1
(c) Has knowingly caused, aided or abetted, or conspired with another
2
to cause any person to fail or refuse to comply with the provisions, re-
3
quirements, conditions, limitations, or duties imposed in this chap-
4
ter, or to fail or refuse to comply with a rule adopted by the commis-
5
sion;
6
(d) Has obtained a license or permit by fraud, misrepresentation, or
7
concealment, or through inadvertence or mistake;
8
(e) Has been convicted, forfeited bond, or has been granted a withheld
9
judgment upon a charge involving forgery, theft, willful failure to
10
make required payments or reports to a governmental agency at any level,
11
or filing false reports to a governmental agency, or any similar offense
12
or offenses, or of bribing or otherwise unlawfully influencing a public
13
14
whether a felony or misdemeanor, involving gambling activity, physical
15
injury to individuals, or moral turpitude;
16
(f) Denies the state lottery access to any place where a licensed game
17
is conducted, denies access to any law enforcement officer, or fails
18
promptly to produce for inspection or audit any records or items as re-
19
quired by law;
20
(g) Fails to have the license available for verification where the li-
21
censed game is conducted;
22
(h) Misrepresents or fails to disclose to the state lottery or any in-
23
vestigating law enforcement officer any material fact;
24
(i) Fails to demonstrate to the state lottery, by clear and convincing
25
evidence, qualifications for the license according to state law and the
26
rules of the commission establishing such qualifications;
27
(j) Is subject to current prosecution or pending charges, or to a con-
28
viction regardless of whether it has been appealed, for any offense de-
29
scribed in paragraph (e) of this subsection. At the request of an appli-
30
cant for an original license, the state lottery may defer decision upon
31
the application during the pendency of the prosecution or appeal; or
32
(k) Has pursued or is pursuing economic gain in a manner or context that
33
violates criminal or civil public policy of this state and creates a
34
reasonable belief that the participation of the person in gaming opera-
35
tions by charitable or nonprofit organizations would be harmful to the
36
proper operation of a lawful bingo or raffle.
37
(2) The state lottery may, upon its own motion or upon a written veri-
38
fied complaint of any other person, investigate the operation of any gaming
39
purportedly authorized in this chapter. If the state lottery has reasonable
40
cause to believe that any gaming as described in this chapter violates any of
41
the provisions of this chapter or rules promulgated pursuant to this chap-
42
ter, it may, in its discretion, place in probationary status, revoke, or sus-
43
pend any license. The state lottery may refuse to grant a renewal of the li-
44
cense or it may take other action as may be appropriate under this chapter and
45
any rules promulgated pursuant to this chapter. If the state lottery shall
46
refuse to grant a license or refuse to grant a renewal of a license or revoke
47
or suspend a license, it shall give the applicant or licensee fifteen (15)
48
calendar days' written notice of its intended action stating generally the
49
basis for its action. Within the fifteen (15) calendar day notice period,
50
the applicant or licensee shall indicate its acceptance of the decision of
16
1
the state lottery or shall request a hearing to be held in the same manner
2
3
The hearing shall be conducted within twenty-one (21) days of the request.
4
The applicant or licensee may appeal the decision of the state lottery after
5
the hearing within the same time and manner as provided for judicial review
6
7
request for a hearing as provided in this section shall render the decision
8
of the state lottery final and not subject to further appeal.
9
10
amended to read as follows:
11
67-7714. RULES AND FORMS. The state lottery commission is authorized
12
to promulgate rules consistent with this act in compliance with chapter 52,
13
14
scribe standardized forms for implementation of this act.
15
16
amended to read as follows:
17
67-7715. VENDORS -- LICENSING -- FEES. (1) No person or entity shall
18
manufacture, sell, distribute, furnish or supply to any person or entity
19
any gaming device, equipment or material, in this state or for use in this
20
state, without first obtaining a vendor's license from the state lottery
21
commission. Vendor licenses shall not be issued by the state lottery except
22
respecting devices, equipment or material designed and permitted to be used
23
in connection with activities authorized under this chapter. Provided how-
24
ever, that this licensing requirement shall apply only insofar as the state
25
lottery commission has adopted rules implementing it as to particular cate-
26
gories of gaming devices and related material and equipment.
27
(2) Any person or entity that manufactures, sells, distributes, fur-
28
nishes or supplies any gaming device, equipment or material, in this state
29
or for use in this state, shall make application for a vendor license to the
30
state lottery. The state lottery shall review the license application and
31
shall approve or deny the issuing of a license within fifteen (15) calen-
32
dar days of receipt of the license application. The state lottery may deny
33
the application if it determines that the applicant has not met the require-
34
ments imposed in this chapter and rules promulgated pursuant to this chap-
35
ter. Whenever an application is denied, it shall be returned to the appli-
36
cant by the state lottery with specific reasons for the denial. When the li-
37
cense application is approved by the state lottery, the state lottery shall
38
issue a license to the applicant.
39
(3) Each application and renewal application shall contain the follow-
40
ing information:
41
(a) The name, address, date of birth, driver's license number and so-
42
cial security number of the applicant and, if the applicant is a corpo-
43
ration, proprietorship, association, partnership or other similar le-
44
gal entity, the name, home address, date of birth, driver's license num-
45
ber and social security number of each of the officers of the corpora-
46
tion and their spouses, as well as the name and address of the directors
47
and their spouses, or other persons similarly situated.
17
1
(b) The locations or persons with which the applicant will provide any
2
gaming device, equipment or material in this state or for use in this
3
state.
4
(4) Each applicant shall pay annually to the state lottery a nonrefund-
5
able license fee of five hundred dollars ($500), which shall be due upon sub-
6
mission of the application.
7
(5) Each licensed vendor shall maintain records of all sales to organi-
8
9
vided to the state lottery upon request.
10
(6) Any license issued pursuant to this section shall be suspended or
11
revoked by the state lottery and the licensee may be assessed a civil penalty
12
by the state lottery up to ten thousand dollars ($10,000) per violation
13
if it is found that the licensee or any person connected with the licensee
14
has violated any provision of this chapter, particularly those in section
15
16
17
amended to read as follows:
18
19
QUIRED. (1) Electronic bingo devices and site system software shall be
20
sold, rented, leased or otherwise provided in this state only by a licensed
21
manufacturer. Licensed manufacturers shall sell, rent, lease or other-
22
wise provide such equipment only to a licensed distributor. A copy of any
23
contractual agreement between a licensed manufacturer and a licensed dis-
24
tributor relative to the marketing of the manufacturer's equipment in this
25
state, shall be provided to the commission state lottery.
26
(2) No electronic bingo device or site system software may be sold,
27
rented, leased or otherwise provided to any person in this state for use in a
28
bingo game conducted pursuant to this chapter unless and until such device
29
and system software have been approved by the commission state lottery. Ap-
30
proval of the device or site system software will be based upon conformance
31
with the requirements contained in this chapter and rules established by the
32
commission for the testing and review of these types of devices and systems.
33
(3) A licensed manufacturer seeking approval of an electronic bingo
34
device or site system software may be required to submit a prototype of the
35
device or system software for testing and review, at the expense of the man-
36
ufacturer, as required by the commission state lottery. Once approved, any
37
hardware or software modifications must be preapproved by the commission
38
state lottery. A licensed manufacturer shall be responsible for the actual
39
costs of testing and examining bingo card monitoring devices, host systems
40
and site system hardware.
41
42
amended to read as follows:
43
67-7717. MANUFACTURING AND DISTRIBUTING REQUIREMENTS. (1) No elec-
44
tronic bingo device shall be able to monitor more than fifty-four (54) bingo
45
faces per game. The licensed manufacturer or distributor must restrict the
46
device to store no more than fifty-four (54) faces per bingo game in its elec-
18
1
tronic database. After July 1, 2005, the maximum amount of electronic bingo
2
cards played per game may be set by rule of the commission.
3
(2) Each electronic bingo device that requires a site system to down-
4
load electronic bingo cards to the device, shall have a unique and permanent
5
identification number hardcoded into the device's software. The identifi-
6
cation number shall be communicated from the device to the site system when-
7
ever the device is connected to the site system, and printed on all transac-
8
tion logs including the player's receipt. Manual input of a device identi-
9
fication number into the site system or on any transaction log or receipt is
10
prohibited.
11
(3) Each electronic bingo device shall be programmed to automatically
12
erase all electronic bingo cards and/or bingo card face numbers stored in the
13
device: (a) upon turning off the device after the last bingo game of the ses-
14
sion has been played, or (b) by some secondary timing method established by
15
the manufacturer and approved by the commission.
16
(4) No electronic bingo device shall be designed to allow bingo players
17
the ability to design their own bingo cards by choosing, rearranging or plac-
18
ing numbers on a card.
19
(5) A site system shall not be able to engage in any type of sale, void
20
or reload transaction unless an electronic bingo device is connected to and
21
communicating with the site system.
22
(6) A site system shall be restricted to load no more than fifty-four
23
(54) electronic bingo faces per bingo game into any one (1) electronic bingo
24
device, and the site system must be interfaced with a printer which that is
25
capable of printing, upon request, a continuous hard-copy transaction log
26
and a printout for the player showing the device identification number, and
27
all of the bingo cards and their face numbers loaded into the device. A re-
28
ceipting function for electronic bingo cards must be self-contained within
29
the site system and must record and print out on a copy, which is given to
30
the player, the device identification number, the date, number of electronic
31
bingo cards purchased or loaded, and the total amount charged for the elec-
32
tronic bingo cards.
33
(7) A site system shall be able to provide the winning game patterns re-
34
quired for the entire bingo session on a hardcopy hard-copy printout. The
35
printout must be available upon demand at the bingo session.
36
(8) If the commission state lottery detects or discovers any malfunc-
37
tion or problem with an electronic bingo device or site system that could
38
affect the security or integrity of the bingo game, the electronic bingo
39
devices, or the site system, the commission state lottery may direct the man-
40
ufacturer, distributor or licensed organization to cease providing or using
41
the electronic bingo devices or site system, as applicable. The commission
42
state lottery may require the manufacturer to correct the problem or re-
43
call the devices or system immediately upon notification by the commission
44
state lottery to the manufacturer. Failure to take the corrective action
45
requested may result in confiscation or seizure of the devices and/or site
46
system.
47
(9) If a manufacturer, distributor or licensed organization detects or
48
discovers any malfunction or problem with the electronic bingo devices or
49
site system which that could affect the security or integrity of the bingo
50
game, bingo card monitoring devices, or site system, the manufacturer, dis-
19
1
tributor or licensed organization, as applicable, shall discontinue use of
2
the devices or site system and notify the commission state lottery by tele-
3
phone by the next working day of such action and the nature of the problem
4
detected. The commission state lottery may request further explanation in
5
writing if deemed necessary.
6
7
amended to read as follows:
8
67-7718. LICENSED DISTRIBUTOR REQUIREMENTS AND DUTIES. (1) A licensed
9
distributor shall purchase, rent, lease or otherwise obtain electronic
10
bingo devices and site system software only from a manufacturer licensed
11
by the commission state lottery. A licensed distributor shall sell, rent,
12
lease or otherwise provide, only electronic bingo devices and site system
13
software that have been approved by the commission state lottery.
14
(2) A licensed distributor shall sell, rent, lease or otherwise provide
15
electronic bingo devices and site system software in this state only to an
16
organization holding a charitable gaming bingo license.
17
(3) Before the initial use by the licensed organization, the licensed
18
distributor must notify the commission state lottery in writing of the sale,
19
rental, lease, provision, and/or installation of any electronic bingo de-
20
vices or site system software. Such notification shall include:
21
(a) The complete name and address of the licensed organization and its
22
license number;
23
(b) The type of equipment, including serial numbers, sold, rented,
24
leased, provided or installed;
25
(c) The expected start-up date for use of the equipment by the licensed
26
organization; and
27
(d) A copy of any agreement between the licensed distributor and the or-
28
ganization for the use of the equipment.
29
(4) The licensed distributor shall serve as the initial contact for the
30
licensed organization with respect to requests for installation, service,
31
maintenance, or repair of electronic bingo devices and site systems, and for
32
the ordering of electronic bingo cards, if applicable. The distributor may,
33
as needed, enlist the aid of the licensed manufacturer in providing service,
34
repair or maintenance of the devices or site system. A licensed manufacturer
35
may, with commission state lottery approval, authorize or subcontract with
36
a person or company to service, maintain or repair bingo card monitoring de-
37
vices and/or site systems; however, the ultimate liability for such service,
38
maintenance or repair shall be solely that of the licensed manufacturer.
39
(5) The licensed distributor shall invoice the licensed organization
40
and collect any and all payments for the sale, rental, lease or other use
41
of the electronic bingo cards, bingo card monitoring devices and site sys-
42
tems. The distributor may, at its discretion, allow the licensed manufac-
43
turer to generate the invoice; however, all payments by the licensed organi-
44
zation must be remitted directly to the distributor. The licensed distribu-
45
tor must ensure that its name, complete address, and telephone number appear
46
on the invoice as well as the name, complete address and license number of the
47
licensed organization.
48
(6) Electronic bingo devices may be transported by a licensed distrib-
49
utor from one (1) location to another for use by more than one (1) licensed
20
1
organization, provided the distributor notifies the commission state lot-
2
tery of the rotation schedule of the devices. However, each licensed organ-
3
ization utilizing a site system must have its own site system, which cannot
4
be moved from its bingo location or be used by another organization without
5
prior approval from the commission state lottery.