H. B. 2496

(By Delegates J. Martin, Mezzatesta and Michael)


(Introduced February 15, 1995; referred to the

Committee on Finance.)




A BILL to amend and reenact section twenty-four, article twenty; section twenty-two, article twenty-one; and section two, article twenty-three, all of chapter forty-seven of the Code of West Virginia, one thousand nine hundred thirty-one, as amended, all relating to licensure and reporting requirements relating to charitable bingo, raffles, raffle boards or games; permitting nonprofit entities receiving state or federal funds to elect annual reporting periods which coincide with the licensee's fiscal year; permitting licensed public accountants to compile and review or audit records of licensed entities; deleting requirement for audited financial reports in accordance with certain standards; providing that persons donating raffle or game items or services without compensation are not required to be licensed as a wholesaler or distributor.

 Be it enacted by the Legislature of West Virginia:
That section twenty-four, article twenty; section twenty- two, article twenty-one; and section two, article twenty-three, all of chapter forty-seven of the Code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted, all to read as follows:
ARTICLE 20. CHARITABLE BINGO.

§47-20-24. Filing of reports.

Each licensee holding an annual license shall file with the tax commissioner a quarterly and an annual financial report summarizing its bingo operations for the time period covered by the report. Each quarterly report shall be filed within twenty days after the end of the quarter which it covers. The annual report shall be filed within thirty days after the expiration of the license under which the operations covered by the report were held. The time period covered by the annual report is the full license year or, at the election of a licensee receiving state or federal funding, the most recently ended state or federal fiscal year.
Each licensee holding a limited occasion license or state fair license shall file with the tax commissioner a financial report summarizing its bingo operations for the license period within thirty days after the expiration of the license under which the operations covered by the report are held. The report shall contain the name, address and social security number of any individual who receives during the course of a bingo occasion prizes the aggregate value of which exceeds one hundred dollars, and other information required by the commissioner: Provided, That any licensee failing to file such report when due shall be liable for a penalty of twenty-five dollars for each month or fraction thereof during which the failure continues, such penalty not to exceed one hundred dollars: Provided, however, That annual financial reports for license years ending after the first day of July, one thousand nine hundred ninety-three, must be audited financial reports as defined by the American institute of certified public accountants if a licensee's gross receipts exceed one hundred thousand dollars: Provided further, That annual financial reports for license years ending after the first day of July, one thousand nine hundred ninety-three, must contain a compilation and review of such financial report by a certified or licensed public accountant, or may be audited by a certified or licensed public accountant, as defined by the American institute of certified public accountants, if a licensee's gross receipts exceed fifty thousand dollars but are less than one hundred thousand dollars.
ARTICLE 21. CHARITABLE RAFFLES.


§47-21-22. Filing of reports.

Each licensee holding an annual, limited or state fair license shall file with the commissioner a financial report summarizing its raffle operations within thirty days after the expiration date of such license. The time period covered by an annual report is the full license year or, at the election of a licensee receiving state or federal funding, the most recently ended state or federal fiscal year.
The reports required by this section shall contain the name, address and social security number of any individual who received during the course of a raffle occasion prizes the aggregate value of which exceeded one hundred dollars, and other information required by the commissioner: Provided, That any licensee failing to file such report when due shall be liable for a penalty of twenty-five dollars for each month or fraction thereof during which the failure continues, such penalty not to exceed one hundred dollars: Provided, however, That annual financial reports for license years ending after the first day of July, one thousand nine hundred ninety-three, must be audited financial reports as defined by the American institute of certified public accountants if a licensee's gross receipts exceed one hundred thousand dollars: Provided further, That annual financial reports for license years ending after the first day of July, one thousand nine hundred ninety-three, must contain a compilation and review of such financial report by a certified or licensed public accountant, or may be audited by a certified or licensed public accountant, as defined by the American institute of certified public accountants, if a licensee's gross receipts exceed fifty thousand dollars but are less than one hundred thousand dollars.
ARTICLE 23. CHARITABLE RAFFLE BOARDS AND GAMES.

§47-23-2. Definitions.

For purposes of this article, unless specified otherwise:
(a) "Commissioner" means tax commissioner of the state of West Virginia, or his delegate.
(b) "Retail value" means the actual consideration paid to the wholesaler by the retailer for any raffle boards or games.
(c) "Person" means any individual, association, society, incorporated or unincorporated organization, firm partnership or other nongovernmental entity or institution.
(d) "Retailer" means every person engaged in the business of making retail sales of raffle chances except a charitable or public service organization authorized to conduct raffles pursuant to section three, article twenty-one of this chapter.
(e) "Charitable raffle board" or "charitable raffle game" means: (1) A board or other device that has many folded printed slips to be pulled from the board or otherwise distributed without a board on payment of a nominal sum in an effort to obtain a slip or chance that entitles the player to a designated prize; (2) a series of paper cards with perforated break-open tabs, a face value of which is covered or otherwise hidden from view to conceal one or more numbers, letters or symbols, which, on payment of a nominal sum, entitles the player to obtain a chance to a designated prize; or (3) such other similar game which may be defined by the state tax commissioner by legislative rule.
(f) "Sale" means the transfer of the ownership of tangible personal property for a consideration.
(g) "Verification" means a unique manufacture identifiable serial number which is required to be printed on each ticket in a charitable raffle board or charitable raffle game or such other form of identification as may be prescribed by the tax commissioner upon a showing of undue hardship by the taxpayer: Provided, That such other form of identification shall be prescribed by rule in accordance with the provisions of article three, chapter twenty-nine-a of this code.
(h) "Wholesaler" or "distributor" means any person or entity engaged in the wholesale distribution of charitable raffle boards or games or similar boards or devices, as defined by the commissioner, and licensed under the provisions of this article, to distribute said devices to charitable raffle boards or games retailers as defined in this article. It also includes anyone who is engaged in the manufacturing, packaging, preparing or repackaging of charitable raffle boards or games for distribution in this state, except for a person who is not regularly engaged in the business of manufacturing, packaging, preparing or repackaging charitable raffle boards or games and who is donating items or services to a nonprofit entity without compensation.


NOTE: The purpose of this bill is to allow nonprofit entities receiving federal or state funds to elect a fiscal year other than the license year for tax department reports on charitable bingo or raffles; to permit public accountants to compile and review records of licensed entities and to delete a requirement for audited financial reports by a certified public accountant in accordance with certain standards; and to provide that persons donating raffle or game items or services without compensation are not required to be licensed as a wholesaler or distributor.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.