SB 403

Abstract

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.

Charitable gaming; electronic gaming. Provides that electronic gaming, defined in the bill as charitable gaming conducted primarily by use of an electronic device, is restricted to social organizations and is limited to such organizations' social quarters. The bill provides that all electronic gaming adjusted gross receipts, defined in the bill, shall be reported and paid by the electronic gaming manufacturer to the Department of Agriculture and Consumer Services and shall be subject to application, audit, and administration fees. The bill allows a social organization to lease its premises to another qualified charitable organization for the purposes of conducting charitable gaming and eliminates exceptions in current law for veterans and fraternal organizations. Without the exceptions, such organizations shall be subject to two prohibitions that, under current law, apply to all other organizations: (i) they are prohibited from offering bingo, instant bingo, pull tabs, or seal cards outside of their home locality and (ii) they are prohibited from offering such games at a Department of Alcoholic Beverage Control-licensed location unless they hold the license. The provisions of the bill are contingent on funding in a general appropriation act.

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 all adjusted 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. The bill reduces the allowable audit and administration fee prescribed by the Department from 1.25 percent to 0.50 percent of gross receipts or electronic gaming adjusted gross receipts, as appropriate. The bill also 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. This bill is identical to HB 763.

Charitable gaming. Provides that electronic gaming, defined in the bill as charitable gaming conducted primarily by use of an electronic device, is restricted to social organizations and is limited to such organizations' social quarters. The bill provides that all receipts attributable to electronic gaming shall be reported to the Department of Agriculture and Consumer Services and shall be subject to application, audit, and administration fees. The bill eliminates exceptions in current law for veterans and fraternal organizations. Without the exceptions, such organizations shall be subject to two prohibitions that, under current law, apply to all other organizations: (i) they are prohibited from offering bingo, instant bingo, pull tabs, or seal cards outside of their home locality and (ii) they are prohibited from offering such games at a Department of Alcoholic Beverage Control-licensed location unless they hold the license.