SENATE BILL REPORT

SB 5124

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As Reported by Senate Committee On:

Labor, Commerce & Consumer Protection, January 20, 2009

Title: An act relating to raffle ticket prices.

Brief Description: Increasing raffle ticket prices.

Sponsors: Senators Pridemore and Kohl-Welles.

Brief History:

Committee Activity: Labor, Commerce & Consumer Protection: 1/19/09, 1/20/09 [DP].

SENATE COMMITTEE ON LABOR, COMMERCE & CONSUMER PROTECTION

Majority Report: Do pass.

Signed by Senators Keiser, Vice Chair; Holmquist, Ranking Minority Member; Franklin, Honeyford, King and Kline.

Staff: Ingrid Mungia (786-7423)

Background: Washington's Gambling Act authorizes charitable and nonprofit organizations to conduct raffles to raise funds for the organizations' stated purposes. The organization must be organized for one of the purposes specified in statute, which include agricultural, charitable, educational, political, fraternal, or athletic purposes, and meet other requirements.

A raffle may be conducted as a licensed or unlicensed raffle. A license is required if (1) the gross revenue from all gambling fundraising conducted by the organization is more than $5,000 per year; (2) tickets are sold by someone other than a member of the organization; (3) tickets are sold at a discount; (4) firearms are awarded as prizes; and (5) in certain other cases. By rule, if the total value of raffle prizes offered in a year exceeds $80,000 or the retail value of a prize is $40,000 or more, Gambling Commission approval is required in addition to a license.

The maximum price of a raffle ticket is $25.

Summary of Bill: The maximum price of a raffle ticket is raised from $25 to $100. The Gambling Commission may raise the maximum amount above $100 by rule.

Appropriation: None.

Fiscal Note: Not requested.

Committee/Commission/Task Force Created: No.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Staff Summary of Public Testimony: PRO: This bill will make it easier for charitable organizations to raise money. New Mexico and Idaho have a $100 raffle price. Alaska has no limit on the price of raffle tickets. This bill will enable small charitable organizations to raise more money effectively. Having a raffle allows charitable organizations to reach their fundraising goals.

Persons Testifying: PRO: Senator Pridemore, prime sponsor; Julie Burger, Congregation Kol Ami.