SB 5671 — Simplifying the process for bona fide charitable and nonprofit organization to engage in activities and social pastimes, and raise funds for their authorized purposes.

S-1538.2SUBSTITUTES-0892.4SENATE SENATE BILL 5671State of Washington65th Legislature2017 Regular SessionBy Senate Commerce, Labor & Sports (originally sponsored by Senators Fortunato, Sheldon, Rivers, and Wilson)READWilsonRead FIRSTfirst TIMEtime 02/17/17.AN02/02/17. ACT Relating to simplifying the process for bona fide charitable and nonprofit organization to engage in activities and social pastimes, and raise funds for their authorized purposes;

amendingReferred RCWto 9.46.0209,Committee 9.46.0321,on 9.46.0323,Commerce, Labor & Sports.AN ACT Relating to simplifying the process for bona fide charitable and 9.46.070;nonprofit organization to engage in activities and social pastimes, and raise funds for their authorized purposes;

andamending adding a new section to chapter 9.46 RCW.BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:Sec. 1.  RCW 9.46.0209 and 2009 c 137 s 1 are each amended to read as follows:(1)(a) "Bona fide charitable or nonprofit organization," as used in this chapter, means:(i) Any organization duly existing under the provisions of chapter 24.12, 24.20, or 24.28 RCW, any agricultural fair authorized under the provisions of chapters 15.76 or 36.37 RCW, or any nonprofit corporation duly existing under the provisions of chapter 24.03 RCW for9.46.0209, charitable,9.46.0277, benevolent,9.46.0315, eleemosynary,9.46.0321, educational,9.46.0323, civic, patriotic, political, social, fraternal, athletic or agricultural purposes only, or any nonprofit organization, whether incorporated or otherwise, when found by the commission to be organized and operating9.46.070; for one or more of the aforesaid purposes only, all of which in the opinion of the commission have been organized and are operated primarily for purposes other than the operation of gambling activities authorized under this chapter;

and adding new sections to chapter 9.46 RCW.BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:Sec. 1.  RCW 9.46.0209 and 2009 c 137 s 1 are each amended to read as follows:(1)(a) "Bona fide charitable or nonprofit organization," as used in this chapter, means:(i) Any organization duly existing under the provisions of chapter 24.12, 24.20, or 24.28 RCW, any agricultural fair authorized under the provisions of chapters 15.76 or 36.37 RCW, or any nonprofit corporation duly existing under the provisions of chapter 24.03 RCW for charitable, benevolent, eleemosynary, educational, civic, patriotic, political, social, fraternal, athletic or agricultural purposes only, or any nonprofit organization, whether incorporated or otherwise, when found by the commission to be organized and operating for one or more of the aforesaid purposes only, all of which in the opinion of the commission have been organized and are operated primarily for purposes other than the operation of gambling activities authorized under this chapter;

and(iv) Limits the participation in the raffle such that raffle tickets are sold only to, and winners are determined only from, the employees of the agency.(3) For the purposes of RCW 9.46.0277, a bona fide nonprofit organization also includes a county, city, or town, provided that all revenue less prizes and expenses from raffles conducted by the county, city, or town must be used for community activities or tourism promotion activities.Sec. 2.  RCW 9.46.03219.46.0277 and 19872009 c 4133 s 281 are each amended to read as follows:Bonafollows:"Raffle," fideas charitableused orin bonathis fidechapter, nonprofitmeans organizationsa organizedgame primarilyin which tickets bearing an individual number are sold for purposesnot othermore than theone conducthundred ofdollars sucheach activitiesand arein herebywhich authorizeda toprize conductor bingo,prizes raffles,are andawarded amusementon games,the withoutbasis obtainingof a licensedrawing tofrom dothe sotickets fromby the commissionperson butor onlypersons when:(1)conducting Suchthe activitiesgame, arewhen heldthe ingame accordanceis withconducted allby othera requirementsbona offide thischaritable chapter,or nonprofit organization, no person other applicablethan laws,a andbona rulesfide member of the commission;(2)organization Saidtakes activitiesany are((,part alonein the management or inoperation anyof combination,))the conductedgame((, and no morepart thanof fourthe timesproceeds eachthereof calendarinure yearto forthe rafflesbenefit andof twiceany eachperson calendarother yearthan forthe bingoorganization andconducting amusementthe games;game)).

Members of the public may purchase tickets and overbe awarded a periodraffle ofprize.Sec. 3.  RCW no9.46.0315 moreand than2012 twelvec consecutive131 dayss 1 are each time,amended notwithstandingto read as follows:Bona fide charitable or bona fide nonprofit organizations organized primarily for purposes other than the limitationsconduct of RCWraffles, 9.46.0205:are hereby authorized to conduct raffles without obtaining a license to do so from the commission when such raffles are held in accordance with all other requirements of this chapter, other applicable laws, and rules of the commission;

PROVIDED,when Thatgross arevenues rafflefrom conductedall under this subsection may be conducted for a period longer than twelve days;(3) Only bona fide members of that organization, who are not paid for such services,raffles participateheld inby the management or operation of the activities;(4) Gross revenues to the organization fromduring ((all the activities together)) raffles do not exceed ten thousand dollars during any calendar year;(5)year Gross revenues to the organization from bingo and amusement games do not exceed five thousand dollars duringper anyauthorized calendarevent((; year;(((5))) (6) All revenue therefrom, after deducting the cost of prizes and other expenses of the activity, is devoted solely to the purposes for which the organization qualifies as a bona fide charitable or nonprofit organization;(((6))) (7) The organization gives notice at least five days in advance of the conduct of any of the activities to the local police agency of the jurisdiction within which the activities are to be conducted of the organization's intent to conduct the activities, the location of the activities, and the date or dates they will be conducted;

and(((7)))and (8)when Thetickets organizationto conductingsuch theraffles activitiesare maintainssold recordsonly forto, aand periodwinners ofare onedetermined yearonly from theamong, date of the eventregular whichmembers accurately show at a minimum the gross revenue from each activity, details of the expensesorganization of conducting the activities,raffle)). and details of the uses to which the gross revenue therefrom is put.NEW SECTION.  Sec. 3.  A new section is added to chapter 9.46 RCW to read as follows:Bona fide charitable or bona fide nonprofit organizations authorized to conduct activities under this chapter may offer raffle tickets purchased as part of a multiple ticket package to be purchased at a discount.

TheMembers organization may offer different levels of discountsthe basedpublic onand themembers volume of tickets sold in the multipleorganization packages.Sec. 4.  RCW 9.46.0323 and 2016 c 116 s 1 are each amended to read as follows:(1) A bona fide charitable or nonprofit organization, as defined in RCW 9.46.0209, whose primary purpose is serving individuals with intellectual disabilities may conductpurchase enhancedraffle rafflestickets if licensed by the commission.(2) The commission has the authority to approve two enhanced raffles per calendar year for western Washington and twobe enhancedawarded rafflesprizes. per calendar year for eastern Washington.

The organization may provide unopened containers of beverages containing alcohol as raffle prizes if the appropriate permit has been obtained from the state liquor ((control)) and cannabis board:

PROVIDED, That raffles that exceed five thousand dollars may also be conducted pursuant to the provisions of this section if the organization obtains a license from the commission:

PROVIDED FURTHER, That the term members for this purpose shall mean only those persons who have become members prior to the commencement of the raffle and whose qualification for membership was not dependent upon, or in any way related to, the purchase of a ticket, or tickets, for such raffles.Sec. 4.  RCW 9.46.0321 and 1987 c 4 s 28 are each amended to read as follows:Bona fide charitable or bona fide nonprofit organizations organized primarily for purposes other than the conduct of such activities are hereby authorized to conduct bingo, raffles, and amusement games, without obtaining a license to do so from the commission but only when:(1) Such activities are held in accordance with all other requirements of this chapter, other applicable laws, and rules of the commission;(2) Said activities are((, alone or in any combination,)) conducted no more than twice each calendar year and over a period of no more than twelve consecutive days each time, notwithstanding the limitations of RCW 9.46.0205:

PROVIDED, That a raffle conducted under this subsection may be conducted for a period longer than twelve days;(3) Only bona fide members of that organization, who are not paid for such services, participate in the management or operation of the activities.

The organization's bona fide members and members of the public are authorized to participate in the gambling activities;(4) Gross revenues to the organization ((from all the activities together)) do not exceed five thousand dollars per authorized event during any calendar year;(5) All revenue therefrom, after deducting the cost of prizes and other expenses of the activity, is devoted solely to the purposes for which the organization qualifies as a bona fide charitable or nonprofit organization;(6) The organization gives notice at least five days in advance of the conduct of any of the activities to the local police agency of the jurisdiction within which the activities are to be conducted of the organization's intent to conduct the activities, the location of the activities, and the date or dates they will be conducted;

and(7) The organization conducting the activities maintains records for a period of one year from the date of the event which accurately show at a minimum the gross revenue from each activity, details of the expenses of conducting the activities, and details of the uses to which the gross revenue therefrom is put.NEW SECTION.  Sec. 5.  A new section is added to chapter 9.46 RCW to read as follows:Bona fide charitable or bona fide nonprofit organizations authorized to conduct activities under this chapter may offer raffle tickets purchased as part of a multiple ticket package to be purchased at a discount.

The organization may offer different levels of discounts based on the volume of tickets sold in the multiple packages.NEW SECTION.  Sec. 6.  A new section is added to chapter 9.46 RCW to read as follows:Bona fide charitable or bona fide nonprofit organizations authorized to conduct activities under this chapter who are engaging in a gambling activity where the participants select their own numbered, physical item, to hold pending a random selection of winning numbers, are not required to attach an individual numbered ticket with the item.NEW SECTION.  Sec. 7.  A new section is added to chapter 9.46 RCW to read as follows:(1) Only bona fide charitable or bona fide nonprofit organizations operating a raffle may award firearms, air guns, or other mechanical devices that are capable of discharging dangerous projectiles including, but not limited to, BB or CO2 guns, rifles, shotguns, pistols or revolvers, or crossbows as a prize.(2) If the prize awarded is restricted from transfer by state or federal law, the licensee must award the winner a certificate, redeemable by a licensed firearms dealer, for the prize offered.(3) The award of a gift certificate from a business establishment, which may sell firearms, but also sells any other items that are not firearms, is not considered the awarding of a firearm to the prize winner.Sec. 8.  RCW 9.46.0323 and 2016 c 116 s 1 are each amended to read as follows:(1) A bona fide charitable or nonprofit organization, as defined in RCW 9.46.0209, whose primary purpose is serving individuals with intellectual disabilities may conduct enhanced raffles if licensed by the commission.(2) The commission has the authority to approve two enhanced raffles per calendar year for western Washington and two enhanced raffles per calendar year for eastern Washington.

The report must also make recommendations, if any, for policy changes to the enhanced raffle authority.(9) This section expires June 30, 2022.Sec. 5.  RCW2022.Sec. 9.  RCW 9.46.070 and 2012 c 116 s 1 are each amended to read as follows:The commission shall have the following powers and duties:(1) To authorize and issue licenses for a period not to exceed one year to bona fide charitable or nonprofit organizations approved by the commission meeting the requirements of this chapter and any rules and regulations adopted pursuant thereto permitting said organizations to conduct bingo games, raffles, amusement games, and social card games, to utilize punchboards and pull-tabs in accordance with the provisions of this chapter and any rules and regulations adopted pursuant thereto and to revoke or suspend said licenses for violation of any provisions of this chapter or any rules and regulations adopted pursuant thereto: