HOUSE BILL REPORT

                 SHB 1931

                       As Passed House

                       March 19, 1991

Title:  An act relating to limits on raffles conducted by nonprofit organizations.

Brief Description:  Raising the limit on nonprofit raffles.

Sponsor(s):  By House Committee on Commerce & Labor (originally sponsored by Representatives Brough, Grant, Brumsickle, Broback, Neher, Morris, Mielke, Cantwell, Chandler, Van Luven, D. Sommers, Holland, Wilson, Bowman, Mitchell, Ferguson, Wynne and Forner).

Brief History:

  Reported by House Committee on:

Commerce & Labor, March 5, 1991, DPS;

Revenue, March 9, 1991, DPS(CL);

Passed House, March 19, 1991, 98-0.

HOUSE COMMITTEE ON

COMMERCE & LABOR

Majority Report: That Substitute House Bill No. 1931 be substituted therefor, and the substitute bill do pass.  Signed by 11 members:  Representatives Heavey, Chair; Cole, Vice Chair; Fuhrman, Ranking Minority Member; Lisk, Assistant Ranking Minority Member; Franklin; Jones; R. King; O'Brien; Prentice; Vance; and Wilson.

Staff:  Jim Kelley  (786-7166).

HOUSE COMMITTEE ON

REVENUE

Majority Report: The substitute bill by Committee on Commerce & Labor be substituted therefor, and the substitute bill do pass.  Signed by 14 members:  Representatives Wang, Chair; Fraser, Vice Chair; Holland, Ranking Minority Member; Wynne, Assistant Ranking Minority Member; Appelwick; Belcher; Brumsickle; Day; Leonard; Morris; Morton; Phillips; Rust; and Silver.

Staff:  Greg Pierce (786-7102).

Background:  Bona fide charitable or nonprofit organizations organized primarily for purposes other than the conduct of such activities are authorized to conduct bingo, raffles, and amusement games, subject to certain restrictions, without obtaining a license from the commission.  The limit on gross revenues from all of the activities is $5,000 during any calendar year.

No taxes may be imposed on charitable or nonprofit bingo games, raffles, or amusement games when the gross income from all of these games does not exceed $5,000 per year.

Summary of Bill:  Taxes may be imposed on raffles only on net receipts exceeding $10,000 dollars.

Fiscal Note:  Available.

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

Testimony For:  (Commerce & Labor): Sometimes nonprofit and charitable organizations do not make much money at raffles because they bring in over $5,000 and then have to pay a 10 percent tax.  These organizations are doing good work in the community.  We should encourage this kind of activity.

(Revenue): Same as Committee on Commerce & Labor.

Testimony Against:  (Commerce & Labor): None.

(Revenue): None.

Witnesses:  (Commerce & Labor): Representative Jean Marie Brough, Prime Sponsor; and Kenneth Brossel, Federal Way Rotary Club (in favor).

(Revenue): Representative Brough, prime sponsor.