75th OREGON LEGISLATIVE ASSEMBLY--2009 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 874
 
                         Senate Bill 216
 
Printed pursuant to Senate Interim Rule 213.28 by order of the
  President of the Senate in conformance with presession filing
  rules, indicating neither advocacy nor opposition on the part
  of the President (at the request of Attorney General Hardy
  Myers for Department of Justice)
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
 
  Authorizes tax-exempt organizations licensed to conduct raffle
games to contract with licensed raffle coordinators under certain
circumstances. Increases percentage of funds that tax-exempt
organizations may expend on operating expenses of bingo, lotto or
raffle games or Monte Carlo events.
 
                        A BILL FOR AN ACT
Relating to gaming events conducted by tax-exempt organizations;
  creating new provisions; and amending ORS 167.118 and 464.510.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 167.118 is amended to read:
  167.118. (1) When a charitable, fraternal or religious
organization is licensed by the Department of Justice to conduct
bingo, lotto or raffle games or Monte Carlo events, only the
organization itself or an employee thereof authorized by the
department shall receive money or property or otherwise directly
profit from the operation of the games, except that:
  (a) The organization operating the games may present a prize of
money or other property to any player not involved in the
administration or management of the games.
  (b) An organization licensed to conduct Monte Carlo events may
contract with a licensed supplier of Monte Carlo event equipment
to operate the event, including the provision of equipment,
supplies and personnel, provided that the licensed supplier is
paid a fixed fee to conduct the event and the imitation money is
sold to players by employees or volunteers of the licensed
charitable, fraternal or religious organization.
  (c) A person may sell, rent or lease equipment, including
electronic equipment, proprietary computer software and real
property to a licensed charitable, fraternal or religious
organization. Rent or lease payments must be made in compliance
with the provisions of ORS 464.510.
  (d) An organization licensed by the department may act as an
escrow agent to receive money or property to be awarded as
prizes.
   { +  (e) An organization licensed to conduct raffle games may
contract with a licensed raffle coordinator to arrange and
operate a duck race raffle or other alternate drawing format
raffle, provided that:
  (A) The department has approved the raffle and the terms of the
contract;
  (B) The organization or its volunteers directly supervise the
issuance and sale of chances and the selection of winners;
  (C) All raffle ticket proceeds are deposited into an account
under the exclusive control of the organization; and
  (D) The raffle coordinator's compensation is included in the
calculation of the organization's raffle operating expenses. + }
  (2) A charitable, fraternal or religious organization may not
operate bingo, lotto or raffle games or Monte Carlo events except
at such locations and upon such days and for such periods of time
as the department authorizes pursuant to this section and ORS
464.250 to 464.380, 464.420 and 464.450 to 464.530.
  (3)(a) An organization licensed by the department to operate
bingo or lotto games may not award a prize exceeding $2,500 in
value in any one game. An organization licensed by the department
to operate a Monte Carlo event may not present any prize of
money, or a cash equivalent, to any player.
  (b) Notwithstanding any provision of this chapter to the
contrary, a bingo licensee may operate two games per year with a
prize not to exceed $10,000 per game and, if approved by the
department, may also participate in a linked progressive game
involving only Oregon licensees, without regard to the number of
games or the size of the prize awarded.
  (4) Each charitable, fraternal or religious organization that
maintains, conducts or operates any bingo, lotto or raffle game
or Monte Carlo event under license of the department must operate
such games in accordance with rules adopted by the department.
  (5) It is unlawful for a licensee to permit the operating
expenses of the games to exceed   { - 18 - }  { +  21 + } percent
of the annual handle of its bingo, lotto and raffle operation.
  (6) It is unlawful for a charitable, fraternal or religious
organization licensed by the department to operate bingo, lotto
or raffle games if:
  (a) The handle of the games and events exceeds $250,000 in a
year; and
  (b) The games and events do not generate for the organization's
purposes, after the cost of prizes and operating expenses are
deducted from the handle, an amount that equals or exceeds five
percent of the handle.
  SECTION 2. ORS 464.510 is amended to read:
  464.510. (1) The Department of Justice may prohibit the
operation of a licensed bingo, lotto, raffle or Monte Carlo event
operation if, in the determination of the department, the rent
for the premises on which the operation is conducted, or the fees
for Monte Carlo event services { + , raffle coordinator
services + } or equipment by a supplier of gaming equipment, are
unreasonably high. Rent may not be paid, either in whole or in
part on the basis of a percentage of the receipts or profits
derived from the bingo, lotto, raffle or Monte Carlo event
operation. The department may by rule establish additional
standards of suitability for premises used in the conduct of
bingo, lotto, raffles or Monte Carlo events.
  (2) As used in subsection (1) of this section, 'unreasonably
high' means that the price charged for the space, equipment or
services is significantly above the fair market value for the
space, equipment or services and the amount charged for the
space, equipment or services will result in a comparatively small
profit for the licensee.
  (3) Rent may not be paid to a related taxpayer, as that term is
defined in Section 1239 of the Internal Revenue Code as amended
and in effect on December 31, 1996.
 
 
  (4) An organization conducting a bingo, lotto, raffle or Monte
Carlo event operation shall keep such records of the operation as
required by the Department of Justice.
  (5) The premises on which the operation is conducted and all
records required by the department shall be subject to inspection
and audit at any reasonable time, with or without notice, upon
demand by the department or its designee or the district attorney
for the county in which the operation is conducted or the
district attorney's designee. The records shall be subject to
inspection and audit also by the Superintendent of State Police
or the superintendent's designee and by the sheriff of the county
in which the operation is conducted or the chief of police of the
city in which the operation is conducted, or the designee of
either, for the purpose of determining compliance or
noncompliance with state law and the rules of the department.
  (6) As used in this section, 'reasonable time' for inspection
of records includes but is not limited to:
  (a) If the records are located anywhere upon premises, a
portion of which are regularly open to the public or to members
and guests, anytime that the premises are open for business,
whether or not bingo, lotto, raffles or Monte Carlo events are
being conducted at that time; and
  (b) If the records are not located upon premises described in
paragraph (a) of this subsection, then anytime between the hours
of 8 a.m. and 9 p.m., Monday through Friday.
  (7) The operator of a bingo, lotto, raffle or Monte Carlo event
operation shall provide to the department, at such reasonable
intervals as the department may determine, reports detailing all
receipts and disbursements in connection with the bingo, lotto,
raffle or Monte Carlo event operation, together with such other
reasonable information as the department may require in order to
determine whether the operation complies with the provisions of
state law and rules of the department relating to the operation
of bingo, lotto, raffles or Monte Carlo events.
  SECTION 3.  { + The amendments to ORS 167.118 and 464.510 by
sections 1 and 2 of this 2009 Act apply to raffle games conducted
on or after the effective date of this 2009 Act. + }
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