SENATE BILL REPORT

                            SB 6359

AS REPORTED BY COMMITTEE ON LABOR & COMMERCE, FEBRUARY 2, 1994

Brief Description:  Allowing raffles that benefit bona fide charitable or nonprofit organizations.

SPONSORS: Senators Erwin, Moore, Snyder, Winsley and McAuliffe

SENATE COMMITTEE ON LABOR & COMMERCE

Majority Report:  That Substitute Senate Bill No. 6359 be substituted therefor, and the substitute bill do pass. 

     Signed by Senators Moore, Chairman; Prentice, Vice Chairman; Amondson, Deccio, Fraser, McAuliffe, Newhouse, Pelz, Prince, Sellar, Sutherland and Vognild.

Staff:  Traci Ratzliff (786‑7452)

Hearing Dates:  February 1, 1994; February 2, 1994

BACKGROUND:

Under current law, only bona fide charitable and nonprofit organizations are allowed to operate raffles.  Only members of a bona fide charitable or nonprofit organization may take part in the management or operation of a raffle.  No proceeds from the raffle can benefit any person other than the organization conducting the game.

SUMMARY:

Individuals desiring to operate a raffle for the benefit of a bona fide charitable or nonprofit organization of which they are not members may do so by obtaining a permit from the Gambling Commission and paying a permit fee.  Individuals must submit a letter to the Gambling Commission from the organization that will benefit from the raffle stating the organization will accept responsibility for the receipt and expenditure of the raffle proceeds in a manner consistent with state law. A bona fide charitable or nonprofit organization may not benefit from the operation of such raffles more than once in a calendar year and gross revenues from such raffles may not exceed $5,000.

Tickets for the raffles may be sold to the public-at-large if the permit number issued by the Gambling Commission is printed on the face of the tickets.  All proceeds from the raffles must benefit a bona fide charitable or nonprofit organization.

The Gambling Commission has broad authority to deny the issuance of a permit and may require appropriate recordkeeping procedures to guarantee the proper receipt and use of funds generated from these raffles.

EFFECT OF PROPOSED SUBSTITUTE:

Individuals are allowed to operate raffles for the benefit of one or more bona fide charitable or nonprofit organizations.

Appropriation:  none

Revenue:  none

Fiscal Note:  requested

TESTIMONY FOR:

This bill will give individuals and families the opportunity to conduct raffles that will provide great benefits to their communities.

TESTIMONY AGAINST:  None

TESTIFIED:  PRO:  Senator Erwin, prime sponsor; Rachel and Loni Gray, citizens