HB2516 H JUD AM 2-21 #1
The Committee on the Judiciary moves to amend the bill on page one, following the enacting clause, by striking out the remainder of the bill and inserting in lieu thereof the following language:
That §47-21-2 of the Code of West Virginia, 1931, as amended, be amended and reenacted; and said code be further amended by adding thereto a new section, designated §47-21-19a, all to read as follows:
ARTICLE 21. CHARITABLE RAFFLES.
§ 47-21-2. Definitions.
For purposes of this article, unless specified otherwise:
(a) "Charitable or public service activity or endeavor" means any bona fide activity or endeavor which directly benefits a number of people by:
(1) Contributing to educational or religious purposes; or
(2) Relieving them from disease, distress, suffering, constraint or the effects of poverty; or
(3) Increasing their comprehension of and devotion to the principles upon which this nation was founded and to the principles of good citizenship; or
(4) Making them aware of or educating them about issues of public concern so long as the activity or endeavor is not aimed at supporting or participating in the campaign of any candidate for public office; or
(5) By lessening the burdens borne by government or voluntarily supporting, augmenting or supplementing services which government would normally render to the people; or
(6) Providing or supporting nonprofit community activities for youth, senior citizens or the disabled; or
(7) Providing or supporting nonprofit cultural or artistic activities; or
(8) Providing or supporting any political party executive committee.
(b) "Charitable or public service organization" means a bona fide, not for profit, tax-exempt, benevolent, educational, philanthropic, humane, patriotic, civic, religious, fraternal or eleemosynary incorporated or unincorporated association or organization; or a volunteer fire department, rescue unit or other similar volunteer community service organization or association; but does not include any nonprofit association or organization, whether incorporated or not, which is organized primarily for the purposes of influencing legislation or supporting or promoting the campaign of any single candidate for public office.
(c) "Commissioner" means the State Tax Commissioner.
(d) "Concession" means any stand, booth, cart, counter or other facility, whether stationary or movable, where beverages, both alcoholic and nonalcoholic, food, snacks, cigarettes or other tobacco products, newspapers, souvenirs or any other items are sold to patrons by an individual operating the facility. Notwithstanding anything contained in subdivision (2), subsection (a), section twelve, article seven, chapter sixty of this code to the contrary, "concession" includes beverages which are regulated by and shall be subject to the provisions of chapter sixty of this code.
(e) "Conduct" means to direct the actual holding of a raffle by activities including, but not limited to, handing out tickets, collecting money, drawing the winning numbers or names, announcing the winning numbers or names, posting the winning numbers or names, verifying winners and awarding prizes.
(f) "Expend net proceeds for charitable or public service purposes" means to devote the net proceeds of a raffle occasion or occasions to a qualified recipient organization or as otherwise provided by this article and approved by the commissioner pursuant to section fifteen of this article.
(g) "Gross proceeds" means all moneys collected or received from the conduct of a raffle or raffles at all raffle occasions held by a licensee during a license period; this term shall not be deemed to include any moneys collected or received from the sale of concessions at raffle occasions.
(h) "Joint raffle occasion" means a single gathering or session at which a series of one or more successive raffles is conducted by two or more licensees.
(i) "Licensee" means any organization or association granted an annual or limited occasion license pursuant to the provisions of this article.
(j) "Net proceeds" means all moneys collected or received from the conduct of raffle or raffles at occasions held by a licensee during a license period after payment of the raffle expenses authorized by sections eleven, thirteen and fifteen of this article; this term shall not be deemed to include moneys collected or received from the sale of concessions at raffle occasions.
(k) "Person" means any individual, association, society, incorporated or unincorporated organization, firm, partnership or other nongovernmental entity or institution.
(l) "Patron" means any individual who attends a raffle occasion other than an individual who is participating in the conduct of the occasion or in the operation of any concession, whether or not the individual is charged an entrance fee or participates in any raffle.
(m) "Qualified recipient organization" means any bona fide, not for profit, tax-exempt, as defined in subdivision (p) of this section, incorporated or unincorporated association or organization which is organized and functions exclusively to directly benefit a number of people as provided in subparagraphs (1) through (7), subdivision (a) of this section. "Qualified recipient organization" includes, without limitation, any licensee which is organized and functions exclusively as provided in this subdivision.
(n) "Raffle" means a game involving the selling or distribution of paper tickets, not enhanced or aided by the use of any electronic or mechanical raffle ticket dispenser, raffle ticket reader or other electronic or mechanical device of whatever design or function, entitling the holder or holders to participate in a raffle game for a chance on a prize or prizes. This subsection shall not be interpreted to prevent the use of:
(1) Hand cranked or motorized drum mixers which randomly mix tickets or other indicia together for the purpose of allowing the hand drawing of a ticket or winning indicia.
(2) A cash register for handling proceeds of sales and other ordinary cash handling and record keeping functions of a raffle licensee.
(3) Accounting and recordkeeping software for the purpose of maintaining accounting and reporting records of the licensee, and the computer for running those applications, not used in the play of any game.
(4) Those electronic machines or mechanical machines authorized under section nineteen-a of this article.
(o) "Raffle occasion" or "occasion" means a single gathering or session at which a series of one or more successive raffles is conducted by a single licensee.
(p) "Tax-exempt association or organization" means an association or organization which is, and has received from the "Internal Revenue Service" a determination letter that is currently in effect stating that the organization is exempt from federal income taxation under subsection 501(a) and described in subsection 501(c)(3), 501(c)(4), 501(c)(8), 501(c)(10), 501(c)(19) or 501(d) of the Internal Revenue Code of 1986, as amended; or is exempt from income taxes under subsection 527(a) of said code.
§47-21-19a. Use of electronic or mechanical raffle devices prohibited; exceptions.
(a) Except as specifically authorized in this section, neither a person licensed under this article, nor a person who operates a raffle without a license under section three of this article, may conduct a raffle enhanced or aided by the use of any electronic or mechanical raffle ticket dispenser, raffle ticket reader or other electronic or mechanical device of whatever design or function.
(b) A person licensed under this article may own and operate not more than five qualified charitable raffle ticket dispensing machines. No two or more licensees shall operate charitable raffle ticket dispensing machines in such a manner that more than five machines are located. Charitable raffle ticket dispensing machines authorized under this section may be operated only in a restricted access adult-only facility, as defined in section three-hundred twenty-eight, article twenty-two-B, chapter twenty-nine of this code, or, in a facility where licensed bingo occasions are conducted, when such machines are operated in conjunction with a licensed charitable bingo occasion, and the play of such machines is restricted to persons eighteen years of age or older. With the exception of the limited operation permitted in conjuction with a licensed charitable bingo occasion, possession of a machine operated in any place, location or venue other than a restricted access adult-only facility is not authorized under this section or subsection (n) of section two of this article. Notwithstanding the provisions of section twenty of this article, any person who operates a qualified charitable raffle ticket dispensing machine in a location or in a manner which is not authorized by this section is guilty of a misdemeanor, and upon conviction thereof, shall be fined not less than $100 nor more than $1000, and upon a second or subsequent conviction thereof, shall be fined not less than $100 nor more than $100,000, or confined in jail not more than one year or both fined and confined.
(c) For purposes of this section a qualified charitable raffle ticket dispensing machine is an electronic or mechanical charitable raffle ticket dispensing machine which meets all of the following requirements:
(1) The charitable raffle ticket dispensing machine has been registered with the Tax Commissioner and has received the certification of the Tax Commissioner as a qualified charitable raffle ticket dispensing machine in accordance with this section.
(2) The charitable raffle ticket dispensing machine dispenses traditional paper charitable raffle tickets preexisting at the time play is initiated on the machine. The machine and paper tickets shall be configured and designed to conform to the following criteria:
(A) The charitable raffle ticket dispensed by the machine may not be a printed verification or “print out” of an electronically determined outcome of a win or loss on the play. The machine may not manufacture or print the ticket dispensed.
(B) The result of the play must be determined by the information printed on the preexisting paper charitable raffle ticket. The determination of whether any particular charitable raffle play is a winner or loser must be determined by the contents of a printed paper charitable raffle ticket preexisting at the time the play is initiated by the player, and not by the operation of electronic processors, either alone or in conjunction with an electronic data cartridge or other data source.
(3) If the charitable raffle ticket dispensing machine has a video display, the charitable raffle ticket dispensing machine dispenses the preexisting traditional paper charitable raffle ticket prior to or simultaneously with the video activity, thereby making the video activity irrelevant to the game.
(4) The charitable raffle ticket dispensing machine shall not pay money or tokens directly to the player.
(5) The charitable raffle ticket dispensing machine shall not accumulate wins or game credits which allow the player to play more charitable raffle games on the machine, or which may be redeemed in, or exchanged for, either money, prizes or more charitable raffle plays or games.
(6) Use of the charitable raffle ticket dispensing machine requires redemption of winning paper tickets with a cashier or raffle worker.
(d) Any electronic or mechanical raffle ticket dispenser, raffle ticket reader or other electronic or mechanical device or apparatus of whatever design or function which is designed, or used or intended to be used to enhance or aid the play of charitable raffle games or the operation of a charitable raffle shall be subject to registration with the Tax Commissioner and subject to certification by the Tax Commissioner as a qualified charitable raffle ticket dispensing machine before it may be used in any charitable raffle gaming activity in this State. Use, possession or operation in this State of any electronic or mechanical raffle ticket dispenser, raffle ticket reader or other electronic or mechanical device or apparatus of whatever design or function which is designed, or used or intended to be used to enhance or aid the play of charitable raffle games or the operation of a charitable raffle that has not been registered and certified in accordance with this section, other than those devices and apparatus allowed under subsection (n) of section two of this article, is a violation of section twenty of this article.
(e) Only charitable raffle tickets on which the retail value fee imposed under article twenty-three of this chapter has been paid by the licensee may be dispensed from a charitable raffle ticket dispensing machine authorized for operation in this state in accordance with this section.
(f) No person under the age of eighteen years may play charitable raffle games with, or by means of, a charitable raffle ticket dispensing machine authorized under this section.
(g) No person licensed under this chapter may possess, operate or maintain on any part of its premises any bank, ATM or similar cash dispensing banking device.
(h) No person licensed under this chapter may give any marker, monetary advance, credit or other loan in any form to any patron, employee or other individual for use in play of any machines or other devices authorized therein.