HOUSE BILL ANALYSIS

                    SSB 6557

Brief Description:  Allowing credit unions to conduct raffles.

Sponsors:  Senators Prentice and Winsley

Hearing:  February 21, 2000

                 Brief Summary of Bill

CAllows credit unions to conduct raffles for members of its organization where proceeds from raffles conducted during the calendar year do not exceed $5,000.

BACKGROUND:

A bona fide charitable or nonprofit organization, as defined in the gambling act, may conduct raffles without obtaining a license if the gross revenue from the organization's raffles within the calendar year does not exceed $5,000, and the tickets are sold only to members of the organization from whom the winners are selected.  A bona fide charitable and nonprofit organization is allowed other exemptions under the gambling act including exclusion from local gambling taxation on the first $10,000 of gross receipts less prizes from raffles conducted by the organization.

A credit union is a cooperative society organized as a nonprofit corporation for the purposes of promoting thrift between its members and creating a source of credit for them at fair and reasonable rates of interest.

SUMMARY OF BILL: 

Credit unions are considered charitable or nonprofit organizations for purposes of conducting raffles involving its membership where gross revenue for the calendar year does not exceed $5,000.  The proceeds are exempt from local gambling taxation.

RULES AUTHORITY:  The bill does not contain provisions addressing the rule making powers of an agency.

FISCAL NOTE: Not requested.

EFFECTIVE DATE:  Ninety days after adjournment of a session in which bill is passed.