H-1313              _______________________________________________

                                                   HOUSE BILL NO. 1682

                        _______________________________________________

State of Washington                               51st Legislature                              1989 Regular Session

By Representatives Brough, Vekich, Patrick, Jacobsen, Cole, Leonard, Todd, O'Brien and Schoon

Read first time 2/1/89 and referred to Committee on Commerce & Labor.

AN ACT Relating to fund raising events by bona fide charitable or nonprofit corporations; and amending RCW 9.46.0233.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

        Sec. 1.  Section 24, chapter 4, Laws of 1987 and RCW 9.46.0233 are each amended to read as follows:

          (1) "Fund raising event," as used in this chapter, means a fund raising event conducted during any seventy-two consecutive hours but exceeding twenty-four consecutive hours and not more than once in any calendar year or a fund raising event conducted not more than twice each calendar year for not more than twenty-four consecutive hours each time by a bona fide charitable or nonprofit organization as defined in RCW 9.46.0209 other than any agricultural fair referred to thereunder, upon authorization therefor by the commission, which the legislature hereby authorizes to issue a license therefor, with or without fee, permitting the following activities, or any of them, during such event:  Bingo, amusement games, contests of chance, lotteries and raffles:  PROVIDED, That (a) gross wagers and bets received by the organization less the amount of money paid by the organization as winnings and for the purchase cost of prizes given as winnings do not exceed ((ten)) twenty-five thousand dollars during the total calendar days of such fund raising event in the calendar year; (b) such activities shall not include any mechanical gambling or lottery device activated by the insertion of a coin or by the insertion of any object purchased by any person taking a chance by gambling in respect to the device; (c) only bona fide members of the organization who are not paid for such service shall participate in the management or operation of the activities, and all income therefrom, after deducting the cost of prizes and other expenses, shall be devoted solely to the lawful purposes of the organization; and (d) such organization shall notify the appropriate local law enforcement agency of the time and place where such activities shall be conducted.  The commission shall require an annual information report setting forth in detail the expenses incurred and the revenue received relative to the activities permitted.

          (2) Bona fide charitable or nonprofit organizations holding a license to conduct a fund raising event may join together to jointly conduct a fund raising event if:

          (a) Approval to do so is received from the commission; and

          (b) The method of dividing the income and expenditures and the method of recording and handling of funds are disclosed to the commission in the application for approval of the joint fund raising event and are approved by the commission.

          The gross wagers and bets received by the organizations less the amount of money paid by the organizations as winnings and for the purchase costs of prizes given as winnings may not exceed ((ten)) twenty-five thousand dollars during the total calendar days of such event.  The net receipts each organization receives shall count against the organization's annual limit stated in this subsection.

          A joint fund raising event shall count against only the lead organization or organizations receiving fifty percent or more of the net receipts for the purposes of the number of such events an organization may conduct each year.

          The commission may issue a joint license for a joint fund raising event and charge a license fee for such license according to a schedule of fees adopted by the commission which reflects the added cost to the commission of licensing more than one licensee for the event.