Pre-filed December 1, 1999, and 1000 copies ordered printed.
ANNE C. WALKER, Chief Clerk
AN ACT
To amend chapter 313, RSMo, relating to licensed gaming activities by adding thereto six new sections relating to the regulation of raffles and sweepstakes, with penalty provisions.
Section A. Chapter 313, RSMo, is amended by adding thereto six new sections, to be known as sections 313.900, 313.903, 313.906, 313.909, 313.912 and 313.915, to read as follows:
313.900. As used in sections 313.900 to 313.915, the following terms shall mean:
(1) "Bona fide member", an individual who is eighteen years of age or older who has paid all dues required by an organization recognized as charitable or religious pursuant to section 501(c)(3) or section 501(d) of the Internal Revenue Code and who, within such organization, has equal voting rights with all other members, has an equal opportunity to be an elected officer, has equal rights and responsibilities of attendance at the regularly scheduled meetings of the organization and whose name and membership origination date appear with such individual's knowledge and consent of a list of members of the organization;
(2) "Charitable organization", a not for profit organization recognized as charitable pursuant to section 501(c)(3) of the Internal Revenue Code, and organized primarily for purposes other than the conduct of raffles and sweepstakes;
(3) "Commission", the Missouri gaming commission;
(4) "Gross receipts", all receipts from sales of raffle tickets, sweepstakes claims and any miscellaneous items associated with a raffle or a sweepstakes, excluding concessions;
(5) "Person", any individual, corporation, partnership, firm, association, limited liability company, organization or other entity;
(6) "Prize", cash, a gift certificate, or an item of property which shall be valued at its fair market value in a manner determined by the commission;
(7) "Raffle", a game conducted by a charitable or religious organization in which tickets bearing a unique individual number are sold for good and valuable consideration, in which a prize or prizes are awarded on the basis of a random drawing from the tickets by the person or persons conducting the game and in which no person other than a bona fide member of the charitable or religious organization takes part in the conduct, management or operation thereof. A raffle does not include any gambling scheme which uses any mechanical, computer, electronic or video gaming device which has the capability of awarding something of value, free games redeemable for something of value, or tickets or stubs redeemable for something of value;
(8) "Religious organization", a not for profit organization recognized as religious pursuant to section 501(c)(3) or section 501(d) of the Internal Revenue Code, organized primarily for purposes other than the conduct of raffles and sweepstakes;
(9) "Supplies", materials only used solely and directly for raffles or sweepstakes;
(10) "Sweepstakes", a legal contest or game in which a prize is distributed by lot or by chance and does not require participants to give good and valuable consideration in order to participate and win.
313.903. Charitable or religious organizations are hereby authorized to conduct raffles and sweepstakes without obtaining a license from the commission when such raffles and sweepstakes are held pursuant to sections 313.900 to 313.915, other applicable law and the rules and regulations of the commission, when the value of all prizes from all such raffles and sweepstakes held by the organization during the calendar year does not exceed fifty thousand dollars and when the organization conducts no more than four raffles and sweepstakes per calendar year; except that, the charitable or religious organization may conduct multiple raffles and sweepstakes once per calendar year in conjunction with a fair, festival, carnival or other event if the value of all prizes for all raffles and sweepstakes conducted by the organization for the calendar year does not exceed fifty thousand dollars. Charitable or religious organizations conducting raffles and sweepstakes are subject to the following restrictions:
(1) The books, paperwork, documents, rules and other materials used to conduct or related to any raffle or any sweepstakes shall be open to inspection by the commission at all times;
(2) The premises on which any raffle or sweepstakes is conducted shall be open to inspection by the commission at all times;
(3) Only bona fide members of the charitable or religious organization who are not paid for such services from proceeds from any raffle or sweepstakes may participate in the conduct, management or operation of any raffle or sweepstakes;
(4) All revenue from every raffle and sweepstakes, after deducting the cost of prizes and supplies, shall be devoted solely to the purposes of the organization which cause it to be recognized as charitable or religious pursuant to the Internal Revenue Code;
(5) The organization conducting raffles and sweepstakes shall, for a period of three years from the date each raffle and sweepstakes is conducted, maintain records which accurately indicate the gross receipts from each raffle and sweepstakes, the expenditures made with such gross receipts, the value of the prizes awarded and the names of persons to whom prizes of one hundred dollars or more were awarded;
(6) Any person responsible for managing the conduct of a raffle or sweepstakes must attest in a statement to the commission that he or she has not pled guilty to or been convicted of a felony and has not pled guilty or been convicted of any offense related to gambling; and
(7) No person who is ineligible for a license pursuant to subsection 1 of section 313.035, RSMo, may participate in the management, conduct or operation of any raffle or sweepstakes. A person who violates any provision of sections 313.903 to 313.915 is guilty of a misdemeanor and may be fined by the commission in an amount not to exceed three times the amount of the proceeds of the raffle or sweepstakes which is directly connected to the person's violation.
313.906. 1. A charitable or religious organization shall be required to obtain a license from the commission before conducting a raffle, sweepstakes or multiple raffles or sweepstakes with total annual prizes valued in excess of five thousand dollars. The commission shall issue such an organization a license upon receipt of clear and convincing evidence that the organization is qualified and suitable for licensure and a nonrefundable application fee of fifty dollars. Such evidence shall include a copy of the document from the Internal Revenue Service which grants the applicant tax-exempt status, a federal identification number, a copy of the organization's articles and certificate of incorporation, if applicable, a statement as to whether the organization has had any previous application refused or a previous license revoked or suspended, and any other evidence required by the commission. Licensees shall be subject to the following provisions:
(1) All licensees are required to keep current the application information required by sections 313.900 to 313.915. Any change in the information submitted in a licensee's application shall be reported to the commission within thirty days. Failure to report any change may be cause for discipline;
(2) Licensees shall provide to the commission, by March first of each year, a statement of revenue and expenses for each raffle and sweepstakes conducted during the previous calendar year. Such statement shall not require a listing of individuals purchasing raffle tickets;
(3) All revenue from every raffle and sweepstakes, after deducting the cost of prizes and supplies, shall be devoted solely to the purposes of the organization which cause it to be recognized as charitable or religious pursuant to the Internal Revenue Code;
(4) Licensees shall provide additional information as reasonably requested by the commission;
(5) In addition to the license and fees required by sections 313.900 to 313.915, the licensee shall notify the commission of each subsequent raffle and sweepstakes event on forms provided by the commission at least ten days before the commencement of each such event. The forms shall be accompanied by an event fee set by the commission not to exceed twenty-five dollars;
(6) Licensees shall notify the commission of the name, address and social security number or tax identification number of each supplier from whom it acquires supplies used for the conduct of any raffle or sweepstakes. The commission may disapprove the use of a supplier if evidence demonstrates that the supplier would be unsuitable to hold a bingo supplier's license pursuant to section 313.057, RSMo;
(7) No person may be involved in the management of a raffle or sweepstakes who has not been a bona fide member of the organization for at least six months.
2. A person who violates any provision of sections 313.900 to 313.915 is guilty of a misdemeanor and may be fined by the commission in an amount not to exceed three times the amount of the proceeds of the raffle or sweepstakes which is directly connected to the person's violation.
313.909. A holder of a license to conduct raffles shall be subject to imposition of penalties, exclusion from the management, conduct or operation of charity games, suspension or revocation of any license, if applicable, or other action for any act or failure to act by himself or herself or his or her agents or employees, that is injurious to the public health, safety, good order and general welfare of the people of the state of Missouri, or that would discredit or tend to discredit charitable gaming operations in the state of Missouri unless the person proves by clear and convincing evidence that he or she is not guilty of such action. The commission shall take appropriate action against any licensee or person who violates the law or the rules and regulations of the commission. Without limiting other provisions of sections 313.900 to 313.915, the following acts or omissions may be grounds for discipline:
(1) Failing to comply with or ensure compliance with sections 313.900 to 313.915, any other law, or the rules and regulations of the commission;
(2) Associating with, either socially or in business affairs, or employing persons of notorious or unsavory reputation, persons who have extensive police records or persons who have failed to cooperate with any officially constituted investigatory or administrative body and who would adversely affect public confidence and trust in charitable raffles or sweepstakes;
(3) Employing in any charitable raffles or sweepstakes operation any person known to have been found guilty of cheating or using any improper device in connection with any charity game;
(4) Using fraud, deception, misrepresentation or bribery to secure any permit or license issued pursuant to sections 313.900 to 313.915;
(5) Obtaining or attempting to obtain any fee, charge or other compensation by fraud, deception or misrepresentation;
(6) Engaging in or tolerating incompetence, misconduct, gross negligence, fraud, misrepresentation or dishonesty in the performance of any function or duty regulated by sections 313.900 to 313.915.
313.912. Any person who, with the intent to defraud another person, makes, alters, forges or counterfeits any raffle ticket, sweepstakes claim or other device used in conjunction with a raffle or sweepstakes that could affect the outcome of the raffle or sweepstakes, or, any person who, with the intent to or with the result of depriving another person of valuable consideration, possesses any altered, forged, or counterfeit raffle ticket or sweepstakes claim, is guilty of a class D felony.
313.915. No rule or portion of a rule promulgated pursuant to the authority of sections 313.900 to 313.915 shall
become effective unless it has been promulgated pursuant to the provisions of chapter 536, RSMo.
Missouri House of Representatives