Charitable gaming; electronic gaming is restricted to social organizations, etc.
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SB 403 — Charitable gaming; electronic gaming is restricted to social organizations, etc.
Last action — Enacted, Chapter 722 (effective 7/1/22)
No card. One bill, free forever — alerts when it moves.
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✓Introduced
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✓In Committee
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✓Passed Senate
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✓Passed House of Delegates
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✓To Executive
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6Enacted
This bill has been enacted into law. Introduced January 11, 2022. Enacted.
Signed by Governor Glenn Youngkin (Republican) on April 27, 2022.
Prognosis
Where this bill stands today.
Odds of enactment
HighHow often bills like it became law.
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Enacted
Current position in the legislative process.
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4 sponsors
1 primary, 3 co-sponsors signed on.
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Mixed recorded votes
11 passed, 1 failed in recorded votes so far.
Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.
Summary
Charitable gaming; social organizations and social quarters; electronic gaming. Provides that the conduct of electronic gaming, defined in the bill, is restricted to qualified social organizations on their premises or other qualified organizations that lease the premises of a qualified social organization pursuant to the guidelines set out in the bill. The bill eliminates the exceptions related to the sale of instant bingo, pull tabs, or seal cards or the conduct of bingo games in current law for veterans and fraternal organizations. The bill provides that such qualified organizations shall be subject to two prohibitions that, under current law, apply to all other organizations, as defined in relevant law: (i) they are prohibited from selling instant bingo, pull tabs, or seal cards or conducting bingo games outside of their home locality and (ii) they are prohibited from offering such games at an establishment that has been granted a license by the Alcoholic Beverage Control Authority unless they hold such license. The bill provides that, with the exception of social organizations qualified under § 501(c)(7) of the Internal Revenue Code, all gross receipts attributable to electronic gaming shall be reported to the Department of Agriculture and Consumer Services (the Department) and shall be subject to application, audit, and administration fees. Under the provisions of the bill, social organizations that are exempt from taxation pursuant to § 501(c)(7) of the Internal Revenue Code are permitted to conduct electronic gaming until such organizations reach $200,000 in electronic gaming adjusted gross receipts, defined in the bill, during any 12-month period. Such organizations are required to report their adjusted gross receipts to the Department and are subject to application, audit, and administration fees based on their adjusted gross receipts. The bill provides that application fees shall be paid to the Department by the qualified organization and that audit fees may be paid to the Department either by the qualified organization or the electronic gaming manufacturer that provides electronic gaming devices to such organization. The bill imposes on any person or organization conducting charitable gaming without a permit a civil penalty of not less than $25,000 and not more than $50,000 per incident. Finally, the bill sets out via a second enactment provisions that require qualified organizations permitted to conduct electronic gaming to report and pay all required fees to the Department based on such organization's electronic gaming adjusted gross receipts. The provisions of the first enactment of the bill requiring the use of a qualified organization's electronic gaming gross receipts for the purpose of reporting and payment of required fees has an expiration date of July 1, 2024. The provisions of the second enactment of the bill requiring the use of a qualified organization's electronic gaming adjusted gross receipts for the purpose of reporting and payment of required fees has a delayed effective date of July 1, 2024. This bill is identical to HB 763.
Bill Text
What changed in the latest version
778 added · 828 removedPlain-language change summary
The updated bill, SB 403, adds and clarifies several definitions related to bingo and charitable gaming, including what qualifies as a "bingo" game and the role of the Charitable Gaming Board. It now explicitly allows the use of Department-approved electronic devices in bingo games. These changes matter because they modernize the regulations surrounding charitable gaming, ensuring they reflect current practices and technologies, which could potentially help organizations raise more funds for their charitable causes.
RECONVENED SESSION REENROLLED VIRGINIA ACTS OF ASSEMBLY --–– 2022 RECONVENED SESSION CHAPTER 722R An Act to amend and reenact §§ 18.2-340.16, 18.2-340.18, 18.2-340.19, 18.2-340.20, 18.2-340.22,18.2-340.22,E 18.2-340.23, 18.2-340.26:1, 18.2-340.27, 18.2-340.28, 18.2-340.28:1, 18.2-340.30, 18.2-340.31, 18.2-340.33, and 18.2-340.34 of the Code of Virginia and to amend the Code of Virginia by adding sections numbered 18.2-340.25:1, 18.2-340.26:3, 18.2-340.30:2, and 18.2-340.36:1, relating totN charitable gaming;
[SR 403]O Approved April[S 27,403] 2022L Be it enacted by the General Assembly of Virginia:
L 1.
That §§ 18.2-340.16, 18.2-340.18, 18.2-340.19, 18.2-340.20, 18.2-340.22, 18.2-340.23, 18.2-340.26:1,18.2-3E0.26:1, 18.2-340.27, 18.2-340.28, 18.2-340.28:1, 18.2-340.30, 18.2-340.31, 18.2-340.33, and 18.2-340.34 of the Code of Virginia are amended and reenacted and that the Code of Virginia is amended by adding sec§D 18.2-340.16.sections numbered 18.2-340.25:1, 18.2-340.26:3, 18.2-340.30:2, and 18.2-340.36:1 as follows:
Definitions.1, 18.2-340.26:3, 18.2-340.30:2, and 18.2-340.36:1 as follows:
S "Board" means the Charitable Gaming Board created pursuant to § 2.2-2455.
"Bona4 fideother member"than meanssuch anorganization's individualcharitable whogaming participatesactivities.n in activities of a qualified organizationorganiz3tion other"Charitable thangaming" suchor organization's"charitable charitablegames" gamingmeans activities.those raffles, Texas Hold'em poker tournaments, and games of chance explicitly authorized by this article.
"Charitable gaming" or "charitable games" means those raffles, Texas Hold'em poker tournaments, and games of chance explicitly authorized by this article.
"Charitable gaming supplies" includes bingo cards or sheets, devices for selecting bingo numbers, instant bingo cards, pull-tab cards and seal cards, playing cards for Texas Hold'em poker, poker chips, and any other equipment or product manufactured for or intended to be used in the conduct of charitable games.
"Conduct" means the actions associated with the provision of a gaming operation during and immediately before or after the permitted activity, which may include, but not be limited to, (i) selling bingo cards or packs, electronic devices, instant bingo or pull-tab cards, or raffle tickets, (ii) calling bingo games, (iii) distributing prizes, and (iv) any other services provided by volunteer workers.
calling "Department" means the Department of Agriculture and Consumer Services.
"Electronicelectronic gaminggaming.ing manufacturer" means a manufacturer of electronic devices used to conduct electronic"Fair gaming.market rental value" means the rent that a rental property will bring when offered for lease by a lessor who desires to lease the property but is not obligated to do so and leased by a lessee under no necessity of leasing.
"Fair market rental value" means the rent that a rental property will bring when offered for lease by a lessor who desires to lease the property but is not obligated to do so and leased by a lessee under no necessity of leasing.
"Grossgaming receipts"before means the totaldeduction amount of moneyexpenses, generatedincluding prizes.ted by an organization from charitable gaming"Instant beforebingo," "pull tabs," or "seal cards" means specific games of chance played by the deductionrandom of expenses,14 selection of one or more individually prepacked cards, including prizes.Department-approved electronic versions thereof, with winners being determined by the preprinted or predetermined appearance of concealed letters, numbers, or symbols that must be exposed by the player to determine wins and losses and may include the use of a seal card which that conceals one or more numbers or symbols that have been designated in advance as prize winners.
"Instant bingo," "pull tabs," or "seal cards" means specific games of chance played by the random selection of one or more individually prepacked cards, including Department-approved electronic versions thereof, with winners being determined by the preprinted or predetermined appearance of of 14 concealed letters, numbers, or symbols that must be exposed by the player to determine wins and losses and may include the use of a seal card which that conceals one or more numbers or symbols that have been designated in advance as prize winners.
(ii) raise funds for the National Law Enforcement of 14 Officers Memorial and Museum;
R 13.
An organization that is exempt from income tax pursuant to § 501(c)(3) of the Internal RevenueREvenue Code and is operated, and has always been operated, exclusively to (i) promote the conservation of the environment, caves, or other natural resources;
(ii) promote or develop opportunities for the use ofofhe of 14 science and technology to advance the conservation of the environment, caves, or other natural E resources;
and (iii) raise funds for the conservation of the environment, caves, or other naturalnaturNl resources or provide grant opportunities to other nonprofit organizations that are devoted to such conservation efforts;
R 14.
or O 15.
Any other nonprofit organization that is exempt from income tax pursuant to § 501(c) of the Internal Revenue Code and that raises funds by conducting raffles, bingo, instant bingo, pull tabs, or seal cards that generate annual gross receipts of $40,000 or less, provided that such gross receipts, less expenses and prizes, are used exclusively for charitable, educational, religious, or community purposes.
Notwithstanding § 18.2-340.26:1, proceeds from instant bingo, pull tabs, and seal cards shall bebE included when calculating an organization's annual gross receipts for the purposes of this subdivision.
"Pari-mutuel play" means an integrated network operated by a licensee of the Department comprised of participating charitable organizations for the conduct of network bingo games in which the purchase of a network bingo card by a player automatically includes the player in a pool with all other players in theamount network,of andnetwork wherebingo thecards prizesold toin thea winningparticular playernetwork.warded is awarded based on a percentage of the total amount"Qualified oforganization" networkmeans bingoany cardsorganization soldto inwhich a particularvalid network.permit has been issued by the Department to conduct charitable gaming or any organization that is exempt pursuant to § 18.2-340.23.
"Qualified"Raffle" organization" means anya organizationlottery toin which the prize is won by (i) a validrandom permitdrawing hasof beenthe issuedname or prearranged number of one or more persons purchasing chances or (ii) a random contest in which She winning name or preassigned number of one or more persons purchasing chances is determined by thea4 Departmentrace involving inanimate objects floating on a body of water, commonly referred to as a "duck r3ce." organization in the conduct of charitable gaming and not otherwise allowed under this article or anyunder organizationBoard thatregulations ison exemptreal pursuantestate toand §personal 18.2-340.23.property tax payments, travel expenses, payments of utilities and trash collection services, legal and accounting fees, costs of business furniture, fixtures and office equipment and costs of acquisition, maintenance, repair, or construction of an organization's real property.
"Raffle" means a lottery in which the prize is won by (i) a random drawing of the name or prearranged number of one or more persons purchasing chances or (ii) a random contest in which the winning name or preassigned number of one or more persons purchasing chances is determined by a race involving inanimate objects floating on a body of water, commonly referred to as a "duck race." "Reasonable and proper business expenses" means business expenses actually incurred by a qualified organization in the conduct of charitable gaming and not otherwise allowed under this article or under Board regulations on real estate and personal property tax payments, travel expenses, payments of utilities and trash collection services, legal and accounting fees, costs of business furniture, fixtures and office equipment and costs of acquisition, maintenance, repair, or construction of an organization's real property.
However, payments made pursuant to §deemed 51.1-1204a toreasonable theand Volunteerproper Firefighters'business andexpense.escue Rescue Squad Workers' Service Award Fund shall be deemed"Social aorganization" reasonablemeans andany properqualified businessorganization expense.that provides certification to the Department that it is:
"Social organization" means any qualified organization that provides certification to the Department that it is:
A fraternal beneficiary society, order, or association qualified under § 501(c)(8) of the Internal RevenueRev3. Code;
3.
"Social quarters" means, in addition to any specifications prescribed by the Department, an area at a social organization's primary location that (i) such organization designates to be used predominantly by its members for social and recreational activities, (ii) is accessible exclusively to members of the social organization and their guests, and (iii) is not advertised or open to the general public.
"Supplier"supplies meansto any personqualified whoorganization.rs offers to sell, sells, or otherwise provides charitable gaming suppliesof to14 "Texas Hold'em poker game" means a variation of poker in which (i) players receive two cards facedown that may be used individually, (ii) five cards shown face up are shared among all players in the game, (iii) players combine any qualifiednumber organization.of their individual cards with the shared cards to make the highest five-card hand to win the value wagered during the game, and (iv) the ranking of hands and the rules of the game are governed by the official rules of the Poker Tournament Directors Association.
"Texas Hold'em poker game" means a variation of poker in which (i) players receive two cards facedown that may be used individually, (ii) five cards shown face up are shared among all players in the game, (iii) players combine any number of their individual cards with the shared cards to make the highest five-card hand to win the value wagered during the game, and (iv) the ranking of hands and the rules of the game are governed by the official rules of the Poker Tournament Directors Association.
(ii) who may be allowed to pay an additional fee, during set preannounced times of the of 14 competition, to receive additional poker chips for use in the competition;
of 14 A.
Require, as a condition of receiving a charitable gaming permit or authorization to conductconduRt electronic gaming, that the applicant use a predetermined percentage of its gross receipts for (i)Ei) those lawful religious, charitable, community, or educational purposes for which the organization is specifically chartered or organized or (ii) those expenses relating to the acquisition, construction, maintenance, or repair of any interest in real property involved in the operation of the organization and used for lawful religious, charitable, community, or educational purposes, as follows:
N a.
R b.
With respect to electronic gaming, a predetermined percentage of its electronic gaming adjustedadOusted gross receipts.
Show all 148 changed lines (108 more)
in the management, operation, or conduct of 14charitable 2.gaming may be required in order for the Boardte to ascertain the percentage of Virginia residents in accordance with subdivision A 3 of § 18.2-340.24.
SpecifyMembership thelists conditionsfurnished underto whichthe aBoard completeor listDepartment ofin theaccordance organization'swith membersthis whosubdivision participateshEll innot thebe management,a operation,matter or conduct of charitablepublic gamingrecord mayand shall be requiredexempt infrom orderdisclosure forunder the Boardprovisions toof ascertain the percentageFreedom of VirginiaInformation residentsAct in(§ accordance2.2-3700 withet subdivisionseq.). A 3 of § 18.2-340.24.
MembershipD lists3. furnished to the Board or Department in accordance with this subdivision shall not be a matter of public record and shall be exempt from disclosure under the provisions of the Freedom of Information Act (§ 2.2-3700 et seq.).
3.
Such fees may reflect the nature and extent of the charitable gaminggam4. activity proposed to be conducted.
4.
For the purposes of this subdivision, electronic or mechanical equipment for instant bingo,biSgo, pull tabs, or seal cards shall include such equipment that displays facsimiles of instant bingo, pullpul4 tabs, or seal cards and are used solely for the purpose of dispensing or opening such paper or electronicelectroni3 cards, and pulling a handle or both;pushing a button or touchpoint on a touchscreen to activate one to three or more reels marked into horizontal segments by varying symbols, where the predetermined prize amount 2 depends on how and how many of the symbols line up when the rotating reels come to rest, or (ii) other similar devices that display flashing lights or illuminations, or bells, whistles, or other sounds, solely intended to entice players to play.
but shall not include (i) devices operated by dropping one or more coins or tokens into a slot and pulling a handle or pushing a button or touchpoint on a touchscreen to activate one to three or more reels marked into horizontal segments by varying symbols, where the predetermined prize amount depends on how and how many of the symbols line up when the rotating reels come to rest, or (ii) other similar devices that display flashing lights or illuminations, or bells, whistles, or other sounds, solely intended to entice players to play.
Prescribe the conditions under which a qualified organization may (i) provide food and nonalcoholic beverages to its members who participate in the management, operation, or conduct of bingo;
Prescribe the conditions under which persons who are bona fide members of a qualified organizationparticipate orin a child, above the ageconduct ofor 13operation years, of abingo games.a bona fide member of such organization may participate9. in the conduct or operation of bingo games.
9.
11.accordance with § 18.2-340.28:1 and establish a percentage of proceeds derived from network bingo in sales to be allocated to (i) prize pools, (ii) the organization conducting the network bingo, and (iii) the network bingo provider.
Prescribe the conditions under which a qualified organization may sell network bingo cards in accordance with § 18.2-340.28:1 and establish a percentage of proceeds derived from network bingo sales to be allocated to (i) prize pools, (ii) the organization conducting the network bingo, and (iii) the network bingo provider.
Prescribe the conditions under which a qualified organization may lease the premises of a permitted social organization for the purpose of conducting bingo, network bingo, instant bingo, pull tabs, seal cards, and electronic gaming permitted under this article and establish requirements forforll of 14 proper financial reporting of all disbursements, gross receipts, and electronic gaming adjusted gross receipts and payment of all fees required under this article.
Except as provided in §§ 18.2-340.25, 18.2-340.30, 18.2-340.30:2, and 18.2-340.36, no permit to of 14 conduct charitable gaming or authorization to conduct electronic gaming shall be denied, suspended, or revoked except upon notice stating the proposed basis for such action and the time and place for the hearing.
of 14 A.
In addition to a charitable gaming permit, a social organization shall receive authorization from the Department prior to conducting any electronic gaming pursuant to the provisions of § 18.2-340.26:3.18.2-3R0.26:3.
A social organization may request such authorization from the Department by providing certain information,E asinfB. determined by the Department on a form prescribed by the Department.
B.
A social organization that meets the necessary requirements pursuant to this article may be, at the discretion of the Department, authorized to conduct electroniceleNtronic gaming pursuant to the provisions of § 18.2-340.26:3.
No authorization to conductOonduct electronic gaming shall be valid for longer than two years.
All requests received by the Department shaAll authorizations to conduct electronic gaming shall be asubject matterto ofregulation by the Department to ensure the public record.safety and welfare in the operation of electronic games.
All authorizations to conduct electronic gaming shall be subject to regulation by the Department to ensure the public safety and welfare in the operation of electronic games.
E C.
ofD 14 D.
E.
Requests for renewal of such authorizations shall be made in accordance with Board regulations.
Instant bingo, pull tabs, or seal cards may be sold only (i) by a qualified organization,organization,Sas as defined in § 18.2-340.16, (ii) upon premises that are owned or exclusively and entirely leased by the qualifiedq4alified organization or leased by the qualified organization pursuant to subsection C, and (iii) at suchsuc3 times that the premises in which the instant bingo, pull tabs, or seal cards are sold is open only to members and their guests via controlled access.
No Except as provided in subsection C, no organization, exceptexcepts for an association of war veterans or auxiliary units thereof organized in the United States or a fraternal association or corporation operating under the lodge system, may sell instant bingo, pull tabs, or seal cards (a) at a location outside of the county, city, or town in which the organization's principal office, as registered with the State Corporation Commission, is located or in an adjoining county, city, or town or (b) at an establishment that has been granted a license pursuant to Chapter 2 (§ 4.1-200 et seq.) of Title 4.1 unless such license is held by the organization.
Nothing in this article shall be construed to prohibit the conduct of games of chance involving the sale of pull tabs, or seal cards, commonly known as last sale games, conducted in accordance with this section or, if such games are electronic games, in last accordance with § 18.2-340.26:3.
Except as otherwise provided in subdivision 15 of the definition of "organization" in § 18.2-340.16, the proceeds from instant bingo, pull tabs, or seal cards shall not be included in determining the gross receipts for a qualified organization provided the gaming (i) is limited exclusively to members of the organization and their guests, (ii) is not open to the general public, and (iii) there is no public solicitation or advertisement made regarding such gaming It is prohibited to use an electronic devicedevC. to conduct instant bingo, pull tabs, or seal cards except as permitted under § 18.2-340.26:3.
C.
§ 18.2-340.26:3.
Electronic gaming;
penalty.
Any person who conducts or participates in electronic gaming that is not authorized under this section shall be subject to the penalties specified in § 18.2-340.37.1B.
B.A social organization may request authorization from the Department to conduct electronic of 14 gaming pursuant to this section in accordance with the procedures established under §§ 18.2-340.20 and 18.2-340.25.
A social organization may request authorization from the Department to conduct electronic gaming pursuant to this section in accordance with the procedures established under §§ 18.2-340.20 and 18.2-340.25.
No social organization or any qualified organization leasing the premises of a social organization of 14 shall extend lines of credit or accept any credit or other electronic fund transfer other than debit cards in payment of any charges or assessments for players to participate in electronic gaming.
The use of electronic pull tab devices utilizing multiple video monitors or touchscreens shall be of 14 limited to one player at a time.
No qualified organization or any person on the premises shall extend lines of credit or accept any credit or other electronic fund transfer other than debit cards iniR payment of any charges or assessments for players to participate in instant bingo, network bingo, pull tabs,Eabs, or sealsea§ cards.18.2-340.28:1.
§ 18.2-340.28:1.
however, network bingo shall be sold only at such times designateddesignatNd in the permit for regular bingo games and only at locations at which the organization is authorized to conduct regular bingo games pursuant to subsection subsections E and F of § 18.2-340.27.
R B.
Any organization selling network bingo cards shall maintain a record of the date and quantityquanOity of network bingo cards purchased from a licensed network bingo provider.
The organization shall also maintain a written invoice or receipt from a licensed supplier verifying any information required by this subsection.
Such supplies shall be paid for only by check drawn on the gaming account of thetheuirLd by this organization or by electronic fund transfer.
E C.
However, no such organization shall accept postdated checks in payment of any charges or assessments for players to participate in network bingo games.
checks in payment of any charges or assessments for players to E.
No qualified organization or any person on the premises shall extend lines of credit or accept any credit or other electronic fund transfer other than debit cards in payment of any charges or assessments of 14 for players to participate in network bingo games.
No qualified organization shall conduct network bingo more frequently than one day in anyanyS calendar week, which shall not be the same day of each week.
4 G.
No network bingo games shall be permitted in the social quarters of an organization that are3re open onlyonlH. to the organization's members and their guests.
H.
however, no singlesinJ. network bingo prize shall exceed $25,000.
J.
Receipts from its charitable gaming operation, and all disbursements including a breakdown of receiptsrecc. attributable to each type of game offered.
c.Electronic gaming adjusted gross receipts.ed.
Electronic gaming adjusted gross receipts.
Except as provided in § §§ 18.2-340.23 and 18.2-340.30:2, each qualified organization shall file at least annually, on a form prescribed by the Department, a report of all such receipts and disbursements specified in subdivision 1, the amount of money on hand attributable to charitable gaming as of the end of the period covered by the report, and any other information related to its charitable gaming operation thatorganization thewhose Departmentnet mayreceipts require.exceed a specified amount during any three-month period to file a report of its receipts and disbursements for such period.
In addition, the Board, by regulation, may require any qualified organization whose net receipts exceed a specified amount during any three-month period to file a report of its receipts and disbursements for such period.
Except as provided in § 18.2-340.23, each qualified organization shall designate or compensate an outside individual or group who shall be responsible for filing an annual, and, if required, quarterly, financial report if the organization goes out of business or otherwise ceases to conduct charitable gaming of 14 activities.
Each electronic gaming manufacturer that holds a permit issued by the Department pursuant to § 18.2-340.34 shall keep a complete record of all electronic gaming adjusted gross receipts and shall file at least annually, on a form prescribed by the Department, a report of all such receipts and any other information related to the manufacture of electronic gaming devices that the Department may of 14 require.
In addition to the fee imposed under subsection B, an additional fee of (i) one-quarter of one of 14 percent of the gross receipts that an organization reports pursuant to § 18.2-340.30 shall be paid by the organization or (ii) one-quarter of one percent of the electronic gaming adjusted gross receiptsreceiptR that an electronic gaming manufacturer reports pursuant to § 18.2-340.30:2 shall be paid by the electronicelectroEic gamingthe manufacturersame tomanner as prescribed in subsections B and C and shall be used for the Treasurersame ofpurposes.osited Virginia.in § 18.2-340.33.
All such amounts shall be collected and deposited in the same manner as prescribed in subsections B and C and shall be used for the same purposes.
§ 18.2-340.33.
E In addition to those other practices prohibited by this article, the following acts or practicespractNces are prohibited:
No part of the gross receipts or electronic gaming adjusted gross receipts derived by a qualified organization may be used for any purpose other than (i) reasonable and proper gaming expenses,;O(ii) reasonable and proper business expenses,;
(ii)(iii) reasonablethose lawful religious, charitable, community, or relating to the acquisition, construction, maintenance, or repair of any interest in the real propertynses involved in the operation of the organization and properused businessfor expenses,;lawful religious, charitable, community or educational purposes.
(iii)For thosethe lawfulpurposes religious,of charitable,clause community,(iv), orsuch educationalexpenses purposesmay include the expenses oE a corporation formed for whichthe purpose of serving as the real estate holding entity of a qualified organization, provided (a) such holding entity is qualified as a tax exempt organization under § 501(c) of the Internal Revenue Code and (b) the membership of the qualified organization is specificallyidentical charteredto orsuch organized,;holding entity.
andotherwise (iv)employ expensesfor relatingcompensation to the acquisition, construction, maintenance, or repair of any interestperson infor the realpurpose property involved in the operation of theorganizing, organizationmanaging, andor usedconductingwith for lawful religious, charitable, community or educationalany purposes.charitable games.
For the purposes of clause (iv), such expenses may include the expenses of a corporation formed for the purpose of serving as the real estate holding entity of a qualified organization, provided (a) such holding entity is qualified as a tax exempt organization under § 501(c) of the Internal Revenue Code and (b) the membership of the qualified organization is identical to such holding entity.
2.
Except as provided in § 18.2-340.34:1, no qualified organization shall enter into a contract with or otherwise employ for compensation any person for the purpose of organizing, managing, or conducting any charitable games.
The provisions of this subdivision shall not prohibit the joint operation of bingo games heldhelS in accordance with § 18.2-340.29.
4 3.
No person shall pay or receive for use of any premises devoted, in whole or in part, to thet3e conduct of any charitable games, any consideration in excess of the current fair market rental value of such property.
Fair market rental value consideration shall not be based upon or determined by reference of 14 to a percentage of the proceeds derived from the operation of any charitable games or to the number of people in attendance at such charitable games.
For any organization that is not composed of members, a person who is not a bona fide member may volunteer in the conduct of a charitable game as long as that person is directlydirThe supervisedprovisions byof athis bonasubdivision fideshall officialnot memberapply to (i) persons employed as clerical assistants by qualified organizations composed of theor organization.for deaf or blind persons;
The provisions of this subdivision shall not apply to (i) persons employed as clerical assistants by qualified organizations composed of or for deaf or blind persons;
or (iv) persons employed by a qualified organization authorized to sell pull tabs or seal cards in accordance with § 18.2-340.16, provided (a) such sales are conducted by no more than two on-duty employees, (b) such employeessales receiveare noconducted compensationin forthe orprivate basedsocial onquarters the sale of the pullorganization.tabs tabs or seal cards, and (c) such5. sales are conducted in the private social quarters of the organization.
5.
Persons under the age of 19 who sell raffle tickets for a qualified organization to raise funds for youthorganization;ies activities in which they participate may receive nonmonetary incentive awards or prizes from the organization;c.
c.Remuneration may be paid to off-duty law-enforcement officers from the jurisdiction in which such bingo games are played for providing uniformed security for such bingo games even if such officer is a member of the sponsoring organization, provided the remuneration paid to such member is in accordance with off-duty law-enforcement personnel work policies approved by the local law-enforcement official and further provided that such member is not otherwise engaged in the management, operation, or conduct of the bingo games of that organization, or to private security provided that employees of such businesses shall not otherwise be involved in the management,o games, of 14 operation, or conduct of the bingo games of that organization;
Remuneration may be paid to off-duty law-enforcement officers from the jurisdiction in which such bingo games are played for providing uniformed security for such bingo games even if such officer is a member of the sponsoring organization, provided the remuneration paid to such member is in accordance with off-duty law-enforcement personnel work policies approved by the local law-enforcement official and further provided that such member is not otherwise engaged in the management, operation, or conduct of the bingo games of that organization, or to private security services businesses licensed pursuant to § 9.1-139 providing uniformed security for such bingo games, provided that employees of such businesses shall not otherwise be involved in the management, operation, or conduct of the bingo games of that organization;
of 14 9.
In addition, no person shall participate in the management, operation or conduct of any of 14 charitable game if that person, within the preceding five years, has participated in the management, operation, or conduct of any charitable game which was found by the Department or a court of R competent jurisdiction to have been operated in violation of state law, local ordinance, or BoardBoaEd regulation.reg13.
13.
These restrictions and prohibitions shall include, but not be limited to,toN the frequency with which bingo games may be held, the value of merchandise or money awarded as prizes, or any other practice prohibited under this section.
R 14.
A qualified organization shall not purchase any charitable gaming supplies for use in thethO Commonwealth from any person who is not currently registered with the Department as a supplier pursuantpur15. to § 18.2-340.34.
15.
L § 18.2-340.34.
manufacturers of electronic gaming E devices;
D A.
No person shall offer to sell, sell, or otherwise provide charitable gaming supplies to any qualified organization and no manufacturer shall distribute electronic games of chance systems gaming devices for charitable gaming in the Commonwealth unless and until such person has made application for and has been issued a permit by the Department.
S B.
The Board shall have authority to prescribe by regulation reasonable criteria consistent with4ith the provisions of this article for the registration of suppliers and manufacturers of electronic gamesga3es of chanceany systemssupplier gamingor devicesmanufacturer forwho charitablehas, gaming.or which has any officer, director, partner, or owner who has, (i) been convicted of or pleaded nolo contendere to a felony in any state or federal court or has been convicted of any offense that, if committed in the Commonwealth, would be a felony;
The Department shall refuse to issue a permit to any supplier or manufacturer who has, or which has any officer, director, partner, or owner who has, (i) been convicted of or pleaded nolo contendere to a felony in any state or federal court or has been convicted of any offense that, if committed in the Commonwealth, would be a felony;
The Department may refuse to of 14 issue a permit to any supplier or manufacturer who has, or which has any officer, director, partner, or owner who has, (a) failed to file or has been delinquent in excess of one year in the filing of any tax returns or the payment of any taxes due the Commonwealth or (b) failed to establish a registered office or registered agent in the Commonwealth if so required by § 13.1-634 or 13.1-763.
The Department may suspend, revoke, or refuse to renew the permit of any supplier or manufacturer for any conduct described in clause (a) or (b) of subsection B or for any violation of this article or regulation of the Board.statement of the grounds upon which it proposes to take such action and an opportunity to be heard.ten Every hearing in a contested case shall be conducted in accordance with the Administrative Process Act (§ 2.2-4000 et seq.).
Before taking any such action, the Department shall give the supplier or manufacturer a written statement of the grounds upon which it proposes to take such action and an opportunity to be heard.
Every hearing in a contested case shall be conducted in accordance with the Administrative Process Act (§ 2.2-4000 et seq.).
(ii) the date of the sale;cards, the quantity of deals sold, and the price per deal paid by the qualified organization;
(iii) the name or form and serial number of each deal of instant bingo cards and pull-tab raffle cards, the quantity of deals sold, and the price per deal paid by the qualified organization;
Each manufacturer of electronic games of chance systems gaming devices shall document each distribution of such systems devices to a qualified organization or supplier on an invoice which clearly of 14 shows (a) the name and address of the qualified organization or supplier to which such systems were distributed;
Pursuant to § 30-19.1:4 of the Code of Virginia, the estimated amount of the necessary of 14 appropriation cannot be determined for periods of commitment to the custody of the Department of Juvenile Justice.
Show all 148 changed rows (108 more)
View plain text versions (6)
- SB403ER2 View text pdf April 27, 2022
- CHAP0722 View text Current pdf April 27, 2022
- Substitute Governor's substitute printed 22108178D-S3 pdf April 11, 2022
- SB403ER View text pdf March 21, 2022
- Conference Substitute Conference substitute printed 22107787D-S2 pdf March 11, 2022
- Committee Substitute Committee substitute printed 22107012D-H1 pdf February 24, 2022
Action History
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Enacted, Chapter 722 (effective 7/1/22)
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Signed by Speaker as reenrolled
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Signed by President as reenrolled
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Reenrolled bill text (SB403ER2)
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Reenrolled
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Governor's recommendation adopted
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VOTE: Adoption (55-Y 45-N)
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House concurred in Governor's recommendation (55-Y 45-N)
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Senate concurred in Governor's recommendation (37-Y 0-N 3-A)
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Governor's substitute printed 22108178D-S3
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Governor's recommendation received by Senate
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Impact statement from DPB (SB403ER)
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Governor's Action Deadline 11:59 p.m., April 11, 2022
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Enrolled Bill Communicated to Governor on March 22, 2022
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Signed by Speaker
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Signed by President
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Enrolled
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VOTE: Adoption (56-Y 39-N)
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Conference report agreed to by House (56-Y 39-N)
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Conference report agreed to by Senate (36-Y 1-N 3-A)
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Impact statement from VCSC (SB403S2)
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Conference substitute printed 22107787D-S2
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Amended by conference committee
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Conferees appointed by House
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Conferees appointed by Senate
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Senate acceded to request (37-Y 0-N 3-A)
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House requested conference committee
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House insisted on substitute
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House substitute rejected by Senate (0-Y 37-N 3-A)
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Impact statement from DPB (SB403H1)
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VOTE: Passage (51-Y 48-N)
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Passed House with substitute (51-Y 48-N)
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Engrossed by House - committee substitute SB403H1
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Committee substitute agreed to 22107012D-H1
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Read third time
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Read second time
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Impact statement from VCSC (SB403H1)
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Committee substitute printed 22107012D-H1
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Reported from General Laws with substitute (17-Y 5-N)
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House committee, floor amendments and substitutes offered
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Referred to Committee on General Laws
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Read first time
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Placed on Calendar
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Impact statement from DPB (SB403ES1)
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Read third time and passed Senate (35-Y 2-N 3-A)
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Printed as engrossed 22105808D-ES1
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Engrossed by Senate - committee substitute with amendment SB403ES1
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Committee amendment agreed to
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Reading of amendment waived
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Committee substitute agreed to 22105808D-S1
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Reading of substitute waived
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Read second time
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Constitutional reading dispensed (40-Y 0-N)
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Reported from Finance and Appropriations with amendment (15-Y 0-N 1-A)
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Impact statement from VCSC (SB403S1)
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Rereferred to Finance and Appropriations
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Committee substitute printed 22105808D-S1
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Reported from General Laws and Technology with substitute (15-Y 0-N)
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Impact statement from DPB (SB403)
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Senate subcommittee amendments and substitutes offered
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Assigned GL&T sub: Gaming
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Referred to Committee on General Laws and Technology
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Prefiled and ordered printed; offered 01/12/22 22104080D
Sponsors
- Bryce E. Reeves · Primary
- Paul E. Krizek · Cosponsor
- Adam P. Ebbin · Cosponsor
- John J. Bell · Cosponsor
Sponsorship breakdown
Export CSV (upgrade) →1 sponsors · 3 co-sponsors · 144 not signed on · 86 voted No
Sponsors (1)
- Bryce E. Reeves Voted No
Co-sponsors (3)
- Paul E. Krizek
- Adam P. Ebbin
- Bell, John J. Voted No
Not signed on (144)
144 members have not signed on to this bill.
Show all 144 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Votes
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 37 | 0 | 0 | 3 |
| Total | 37 | 0 | 0 | 3 |
| % of votes cast | 93% | 0% | 0% | 8% |
How each member voted (40)
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 55 | 44 | 0 | 0 |
| Total | 55 | 44 | 0 | 0 |
| % of votes cast | 56% | 44% | 0% | 0% |
How each member voted (99)
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 56 | 38 | 0 | 5 |
| Total | 56 | 38 | 0 | 5 |
| % of votes cast | 57% | 38% | 0% | 5% |
How each member voted (99)
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 36 | 1 | 0 | 3 |
| Total | 36 | 1 | 0 | 3 |
| % of votes cast | 90% | 3% | 0% | 8% |
How each member voted (40)
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 0 | 37 | 0 | 3 |
| Total | 0 | 37 | 0 | 3 |
| % of votes cast | 0% | 93% | 0% | 8% |
How each member voted (40)
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 37 | 0 | 0 | 3 |
| Total | 37 | 0 | 0 | 3 |
| % of votes cast | 93% | 0% | 0% | 8% |
How each member voted (40)
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 51 | 47 | 0 | 1 |
| Total | 51 | 47 | 0 | 1 |
| % of votes cast | 52% | 47% | 0% | 1% |
How each member voted (99)
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 17 | 5 | 0 | 0 |
| Total | 17 | 5 | 0 | 0 |
| % of votes cast | 77% | 23% | 0% | 0% |
How each member voted (22)
| Member | Party | Vote |
|---|---|---|
| Adams, Dawn M. | — | Yea |
| Betsy B. Carr | — | Yea |
| Bulova, David L. | — | Yea |
| Campbell, Jeffrey L. | — | Yea |
| Chris S. Runion | — | Nay |
| Coyner, Carrie E. | — | Yea |
| Danica A. Roem | — | Yea |
| Emily M. Jordan | — | Yea |
| Fowler, Hyland F."Buddy," Jr. | — | Yea |
| James A. "Jay" Leftwich | — | Yea |
| James W. Morefield | — | Yea |
| Jenkins, Clinton L. | — | Yea |
| Knight, Barry D. | — | Yea |
| Luke E. Torian | — | Yea |
| Marcia S. "Cia" Price | — | Nay |
| Murphy, Kathleen | — | Yea |
| Paul E. Krizek | — | Yea |
| Robinson, Roxann L. | — | Yea |
| Schuyler T. VanValkenburg | — | Yea |
| Thomas C. Wright, Jr. | — | Nay |
| Wampler, William C., III | — | Nay |
| Wendell S. Walker | — | Nay |
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 35 | 2 | 0 | 3 |
| Total | 35 | 2 | 0 | 3 |
| % of votes cast | 88% | 5% | 0% | 8% |
How each member voted (40)
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 40 | 0 | 0 | 0 |
| Total | 40 | 0 | 0 | 0 |
| % of votes cast | 100% | 0% | 0% | 0% |
How each member voted (40)
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 15 | 0 | 0 | 1 |
| Total | 15 | 0 | 0 | 1 |
| % of votes cast | 94% | 0% | 0% | 6% |
How each member voted (16)
| Member | Party | Vote |
|---|---|---|
| McClellan, Jennifer L. | — | Yea |
| Barker, George L. | — | Yea |
| David W. Marsden | — | Yea |
| Ebbin, Adam P. | — | Yea |
| Edwards, John S. | — | Yea |
| Hanger, Emmett W., Jr. | — | Yea |
| Howell, Janet D. | — | Yea |
| L. Louise Lucas | — | Yea |
| Mamie E. Locke | — | Yea |
| Newman, Stephen D. | — | Yea |
| Norment, Thomas K., Jr. | — | Yea |
| Petersen, J. Chapman | — | Not Voting |
| R. Creigh Deeds | — | Yea |
| Ruff, Frank M., Jr. | — | Yea |
| Saslaw, Richard L. | — | Yea |
| Vogel, Jill Holtzman | — | Yea |
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 15 | 0 | 0 | 0 |
| Total | 15 | 0 | 0 | 0 |
| % of votes cast | 100% | 0% | 0% | 0% |
How each member voted (15)
| Member | Party | Vote |
|---|---|---|
| Barker, George L. | — | Yea |
| Bell, John J. | — | Yea |
| Bryce E. Reeves | — | Yea |
| Dunnavant, Siobhan S. | — | Yea |
| Ebbin, Adam P. | — | Yea |
| Hashmi, Ghazala F. | — | Yea |
| Jennifer B. Boysko | — | Yea |
| Jeremy S. McPike | — | Yea |
| Kiggans, Jennifer A. | — | Yea |
| Mamie E. Locke | — | Yea |
| Mason, T. Montgomery "Monty" | — | Yea |
| Richard H. Stuart | — | Yea |
| Ruff, Frank M., Jr. | — | Yea |
| Todd E. Pillion | — | Yea |
| Vogel, Jill Holtzman | — | Yea |
Subjects
Frequently asked questions
- What does SB 403 do?
- Charitable gaming; social organizations and social quarters; electronic gaming. Provides that the conduct of electronic gaming, defined in the bill, is restricted to qualified social organizations on their premises or other qualified organizations that lease the premises of a qualified social organization pursuant to the guidelines set out in the bill. The bill eliminates the exceptions related to the sale of instant bingo, pull tabs, or seal cards or the conduct of bingo games in current law for veterans and fraternal organizations. The bill provides that such qualified organizations shall be subject to two prohibitions that, under current law, apply to all other organizations, as defined in relevant law: (i) they are prohibited from selling instant bingo, pull tabs, or seal cards or conducting bingo games outside of their home locality and (ii) they are prohibited from offering such games at an establishment that has been granted a license by the Alcoholic Beverage Control Authority unless they hold such license. The bill provides that, with the exception of social organizations qualified under § 501(c)(7) of the Internal Revenue Code, all gross receipts attributable to electronic gaming shall be reported to the Department of Agriculture and Consumer Services (the Department) and shall be subject to application, audit, and administration fees. Under the provisions of the bill, social organizations that are exempt from taxation pursuant to § 501(c)(7) of the Internal Revenue Code are permitted to conduct electronic gaming until such organizations reach $200,000 in electronic gaming adjusted gross receipts, defined in the bill, during any 12-month period. Such organizations are required to report their adjusted gross receipts to the Department and are subject to application, audit, and administration fees based on their adjusted gross receipts. The bill provides that application fees shall be paid to the Department by the qualified organization and that audit fees may be paid to the Department either by the qualified organization or the electronic gaming manufacturer that provides electronic gaming devices to such organization. The bill imposes on any person or organization conducting charitable gaming without a permit a civil penalty of not less than $25,000 and not more than $50,000 per incident. Finally, the bill sets out via a second enactment provisions that require qualified organizations permitted to conduct electronic gaming to report and pay all required fees to the Department based on such organization's electronic gaming adjusted gross receipts. The provisions of the first enactment of the bill requiring the use of a qualified organization's electronic gaming gross receipts for the purpose of reporting and payment of required fees has an expiration date of July 1, 2024. The provisions of the second enactment of the bill requiring the use of a qualified organization's electronic gaming adjusted gross receipts for the purpose of reporting and payment of required fees has a delayed effective date of July 1, 2024. This bill is identical to HB 763.
- Who sponsors SB 403?
- SB 403 is sponsored by Bryce E. Reeves, Paul E. Krizek, Adam P. Ebbin, and Bell, John J..
- What is the current status of SB 403?
- This bill has been enacted into law. Introduced January 11, 2022. Enacted.
- Where can I track SB 403?
- Track SB 403 free on One Click Politics — get push/email alerts when it moves.
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