Chapter 218 Oregon Laws 1999
Session Law
AN ACT
HB 2558
Relating to gambling;
amending ORS 167.118, 464.250 and 464.390.
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 [in any manner] 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; and
(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.
(2) A charitable, fraternal or religious organization shall 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) An organization licensed by the department to operate bingo
or lotto games shall not award a prize exceeding $1,500 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.
(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 percent of the annual handle of its bingo,
lotto and raffle operation.
[(6) No person or player
may wager, in aggregate, more than $200 at any single Monte Carlo event.]
[(7)] (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 464.250 is amended to read:
464.250. (1) The
Department of Justice shall have the following powers and duties relating to
the regulation of bingo, lotto or raffle games or Monte Carlo events:
[(1)] (a) To authorize and regulate the
operation of bingo, lotto and raffle games and Monte Carlo events permitted
under ORS 167.117 and to adopt rules in accordance with applicable provisions
of ORS 183.310 to 183.550 for the performance of the department's duties.
[(2)] (b) To issue and renew licenses and
permits for operation of bingo, lotto and raffle games and Monte Carlo events,
including the suppliers of equipment and supplies necessary for the operation
of such activities, and to adopt license and permit fees. Licenses and permits
shall be valid for a period of one year unless renewed. The department shall
set fees at an amount sufficient to cover all costs incurred by the department
in its activities. License fees shall consist of an initial payment, which
shall be in an amount established by rule, prior to issuance or renewal of the
license, together with a monthly payment constituting a percentage of the
licensee's monthly gross income from the operation each month thereafter. An
applicant for a license or a permit shall submit with the application a sum
adequate to pay the required initial fee payment. If the application is later
withdrawn by the applicant or if it is denied by the department, the department
shall retain such portion of the amount submitted to it as will pay the
reasonable costs expended for processing and investigating the application. In
a particular case, if the fee adopted by the department is less than the actual
expenses of the department to investigate that particular application, the
department may charge to that particular applicant an additional fee to repay
the department for those costs. The department may refuse to proceed with its
investigation or to issue a license until the department has been fully paid
for those costs. The department shall create at least two classes of licenses
for each activity regulated under this section. The licensing and operational
requirements for licensees and the extent to which background checks are
conducted under paragraph (d)(B) of this
subsection [(4)(b) of this section]
shall be commensurate with the size of the licensee's bingo, lotto, raffle or
Monte Carlo event operations. The department shall adopt rules exempting from
licensing any organization that would otherwise qualify for a license and that
is engaged in minimal bingo, lotto, raffle or Monte Carlo event activity.
[(3)] (c) To prescribe the manner and method
of payment of all moneys to be paid to or collected by the department.
[(4)] (d) To adopt requirements as to what
information an applicant must provide to the department. However, each license
applicant must provide, and the department shall require, the names and
addresses of all persons having a management or ownership interest in the
bingo, lotto, raffle or Monte Carlo event operation or in the premises on which
the operation is conducted and the names and addresses of all officers and
directors of the applicant organization. The department shall also require the
names and addresses of all persons employed in bingo, lotto, raffle or Monte
Carlo event operations. The following apply to applications under this [subsection] paragraph:
[(a)] (A) An applicant shall certify, under
oath, that the persons named on the application are all of the persons known by
the applicant to have an interest in the bingo, lotto, raffle or Monte Carlo
event operation or the premises on which the operation is conducted including
all officers and directors of the applicant organization.
[(b)] (B) The department may require
fingerprints, a photograph, a handwriting sample and background checks on any
person seeking a license from it or any person holding an interest in any
bingo, lotto, raffle or Monte Carlo event operation or in the premises on which
it is conducted. The department may also require fingerprints or background
checks of any manager or other employee of such a bingo, lotto, raffle or Monte
Carlo event operation.
[(5)] (e) To adopt record keeping
requirements for licensees of the department and the submission of reports to
the department as the department determines necessary. The department may
require licensees to record and report income from bingo, lotto, raffle, Monte
Carlo events, concessions and other related operations, the amounts received
from each player, the costs and expenses of operations, the nature and value of
prizes and the fact of distribution of such prizes to the winners thereof. The
department may adopt internal financial and inventory control requirements
under this [subsection] paragraph that are based on and
commensurate with the size of a licensee's bingo, lotto, raffle or Monte Carlo
event operations.
[(6)] (f) To regulate and establish maximum
limits on income derived by licensees from bingo, lotto, raffles or Monte Carlo
events. However, in establishing limits, the department shall take into
account:
[(a)] (A) The nature, character and scope of
the activities of the licensee;
[(b)] (B) The sources of other income to the
licensee; and
[(c)] (C) The percentage or extent to which
income derived from bingo, lotto, raffles or Monte Carlo events is used for
charitable purposes, as distinguished from nonprofit purposes other than
charity.
[(7)] (g) To regulate the manner of
operation of bingo, lotto and raffle games and Monte Carlo events conducted by
licensees, including the approval of which games may be played and the
equipment to be used. The department shall regulate the types of equipment,
rules and methods of play to ensure the integrity and fairness of the games.
[(8)] (h) To cooperate with state and local
law enforcement agencies in investigating matters within the scope of the
department's duties and responsibilities.
[(9)] (i) To establish maximum limits on
compensation paid to persons employed by charitable, fraternal or religious
licensees, for the purpose of conducting licensed games, not to exceed 200
percent of the federal minimum wage standard, or in the case of a person who
supervises a bingo, lotto, raffle or Monte Carlo event operation for a
charitable, fraternal or religious organization and is subject to the
limitations of ORS 464.340, 300 percent of the federal minimum wage standard,
and to establish maximum limits for other expenses connected with such
operations. In establishing these limits, the department shall consider the
amount of income received, or expected to be received, by the organization from
the bingo, lotto, raffle, Monte Carlo events, concessions and other related
operations and the amount of money the operation could generate for the
organization's purposes absent such expenses. The department may also take into
account other factors, including but not limited to whether charitable purposes
are benefited by the activities.
[(10)] (2) The department shall not require
persons working as volunteers in a bingo, lotto, raffle or Monte Carlo event
operation conducted by a bona fide charitable, fraternal or religious
organization to obtain permits for such work if the persons do not receive
compensation of any kind from the organization other than reimbursement for
actual or reasonable expenses, or have any managerial or supervisory
responsibility in connection with it. The department may require that bingo,
lotto, raffle and Monte Carlo event operators employing unlicensed volunteers
submit to the department periodically the names, addresses and dates of birth
of the volunteers. The department may adopt reasonable character standards for
volunteers, and if a volunteer does not meet the standards, the department may
require that the licensee not allow the volunteer to work for the licensee.
[(11)] (3) Subject to ORS 167.118, the
department [of Justice] by rule may
establish value limits for prizes awarded at bingo, lotto or raffle games or
Monte Carlo events and may regulate or prohibit the giving to patrons any other
thing of value to promote attendance at the games.
(4) The department by
rule may establish a maximum amount that a person may wager at a Monte Carlo
event.
SECTION 3.
ORS 464.390 is amended to read:
464.390. (1) When the Department of Justice determines that
there is a compelling community need for the charitable activities funded by a
bingo operation, and that funding will be seriously reduced by the operation of
ORS 167.117 and 167.118 and this chapter, then the department may grant
exceptions to ORS 464.250 [(9)] (1)(i), 464.340 and 464.350 for any
bingo licensee that was operating a bingo game in January 1987.
(2) The department shall review the exceptions granted under
this section not less than once per year, unless the department determines that
there has been a material change of circumstances since the time the exceptions
were granted to the licensee, in which case the department shall initiate an
immediate review of the license.
(3) The department may not continue an exception to a licensee
that otherwise meets the requirements of this section if there has been a
material change of circumstances since the time when the licensee was granted
the exception.
(4) For purposes of this section, "a material change of
circumstances" includes:
(a) Failure of the licensee to conduct a bingo game for six
consecutive months in accordance with the exceptions previously granted by the
department; or
(b) Operation by the licensee of its bingo game in a county
other than the county in which it operated its bingo game in January 1987.
(5)(a) Subject to this section, a bingo licensee may continue
to operate a bingo game under the terms of an exception that was granted under
this section prior to October 4, 1997, including but not limited to any
limitation on the annual handle imposed or applicable under the terms of the
exception.
(b) On written notice to the department, a licensee may elect
to operate a bingo game under ORS 167.118 without a limitation on the annual
handle of the licensee.
(c) A licensee that elects to operate a bingo game without a
limitation on the annual handle of the licensee shall comply with ORS 464.350.
Approved by the Governor
June 3, 1999
Filed in the office of
Secretary of State June 3, 1999
Effective date October 23,
1999
__________