SENATE BILL REPORT

                   HB 1562

                     As of March 20, 1995

Title:  An act relating to a fund raising event.

Brief Description:  Modifying the requirements for fund raising events.

Sponsors:  Representatives Huff, Chappell, Chandler, Carrell and Costa.

Brief History:

Committee Activity:  Labor, Commerce & Trade:  3/23/95.

SENATE COMMITTEE ON LABOR, COMMERCE & TRADE

Staff:  Traci Ratzliff (786-7452)

Background:  Nonprofit or charitable organizations, except agricultural fairs,  may conduct fund raising events that involve gambling activities such as bingo, amusement games, contests of chance, lotteries and raffles.

These organizations may hold an extended event once a year lasting more than one day and no more than three days, or a one-day event twice a year.

The total annual profit from fund raising events may not exceed $10,000 for any individual organization.  Organizations may join together to sponsor an event.  The total profit from a joint event may not exceed $10,000.

Only members of the nonprofit or charitable organization may participate in the management or operation of the fund raising events.  Certain mechanical gambling or lottery devices are prohibited.  All income less prizes and expenses must be devoted solely to the lawful purposes of the organization, and local law enforcement must be notified of the time and place of the event.

Summary of Bill:  A fund raising event may be a consecutive three-day event or a one-day event where no gambling takes place between the hours of 2:00 a.m. and 6:00 a.m.  A nonprofit or charitable organization may hold two three-day events or four one day events each year, or a combination of one three-day event and two one-day events.

The total profit allowed for a single event is increased to $15,000 with a total annual profit limit of $30,000 for all events.  Total profit from a joint event is increased to $15,000.

Members and spouses may operate and manage events.  An organization may use up to five people who are not members or their spouses and who are approved by the Gambling Commission to operate gambling activities.  They may not participate in managing the event or be involved in any financial aspect of the event.  The commission determines what payment they may receive.

Those who rent equipment to the organization may receive an amount determined by the commission to train and provide "advisory services" connected with the event.

Appropriation:  None.

Fiscal Note:  Requested on February 6, 1995.

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