AB 888: Charitable raffles.
- Session Year: 2017-2018
- House: Assembly
- Latest Version Date: 2018-09-20
The California Constitution authorizes the Legislature to permit private, nonprofit organizations to conduct raffles as a funding mechanism to support beneficial and charitable works, if, among other conditions, at least 90% of the gross receipts from the raffle go directly to beneficial or charitable purposes in California. The California Constitution further authorizes the Legislature to amend the percentage of gross receipts required to be dedicated to beneficial or charitable purposes by a statute passed by a 2/3 vote of each house of the Legislature. Existing statutory law implements those provisions and requires the Department of Justice to administer and enforce those provisions.
Existing statutory law, until December 31, 2018, authorizes a major league sports raffle at a home game conducted by an eligible organization, as defined, for the purpose of directly supporting specified beneficial or charitable purposes in California, or financially supporting another private, nonprofit, eligible organization, as defined, that performs those purposes if, among other requirements, 50% of the gross receipts generated from the sale of raffle tickets are used to benefit or provide support for beneficial or charitable purposes, as defined, the other 50% is paid to the winner, and the winners of the prizes are determined by a manual draw, as specified. Existing law authorizes a loan from the General Fund to the Major League Sporting Event Raffle Fund to address departmental workload related to the Department of Justices initial implementation of enforcement activities relating to these provisions and requires the loan to be repaid to the General Fund by no later than December 31, 2018.
This bill would extend the operation of those provisions until January 1, 2024. The bill would also extend the date by which the loan from the General Fund to the Major League Sporting Event Raffle Fund must be repaid to the General Fund to no later than December 31, 2023. By extending the operation of provisions that revise the percentage of gross receipts required to go to beneficial or charitable purposes pursuant to the California Constitution, this bill would require a 2/3 vote of each house.
Existing law requires an eligible organization to annually file a report for each of the eligible organizations last 3 fiscal years that includes specified information, including, among other things, the aggregate gross receipts from the operation of raffles and the charitable or beneficial purposes for which proceeds of the raffles were used. Existing law requires the department to make these reports available to the public pursuant to the online search portal of the Attorney Generals Registry of Charitable Trusts. Under existing law, the failure to submit these reports is grounds for denial of an annual registration.
This bill would instead require an eligible organization to file with the department and post on a specified Internet Web site, each season or year, a report that includes, among other things, the total number of raffles conducted for the season or year, the gross receipts generated from the sale of raffle tickets for the season or year, and for each raffle, each eligible recipient organization, and the amount each eligible recipient organization received. The bill would instead require the department to post the reports on its Internet Web site, but not on the online search portal of the Attorney Generals Registry of Charitable Trusts. The bill would further authorize the imposition of penalties for the failure to submit these reports, as specified.
Existing law authorizes the department to require the payment of fees to cover the reasonable costs of the department in administering and enforcing the above-described provisions, including a minimum annual registration fee of $5,000 to be paid by an eligible organization and a fee of $100 for every individual raffle conducted by the eligible organization at an eligible location, a minimum annual registration fee of $10 to be paid by a person affiliated with the eligible organization who conducts the manual raffle draw, and a minimum annual registration fee of $5,000 to be paid by a manufacturer or distributor of raffle-related products or services. Existing law authorizes the department to audit the records and other documents of a registrant to ensure compliance and authorizes the department to charge a registrant the direct costs associated with that audit.
This bill would increase the departments authority to assess fees for those purposes by doubling the amounts specified above. The bill would provide that the department is entitled to reimbursement from a registrant for all actual, reasonable, and direct costs of an audit, as specified.
This bill would declare that it is to take effect immediately as an urgency statute.
The California Constitution authorizes the Legislature to permit private, nonprofit organizations to conduct raffles as a funding mechanism to support beneficial and charitable works, if, among other conditions, at least 90% of the gross receipts from the raffle go directly to beneficial or charitable purposes in California. The California Constitution further authorizes the Legislature to amend the percentage of gross receipts required to be dedicated to beneficial or charitable purposes by a statute passed by a 2/3 vote of each house of the Legislature. Existing statutory law implements those provisions and requires the Department of Justice to administer and enforce those provisions.
Existing statutory law, until December 31, 2018, authorizes a major league sports raffle at a home game conducted by an eligible organization, as defined, for the purpose of directly supporting specified beneficial or charitable purposes in California, or financially supporting another private, nonprofit, eligible organization, as defined, that performs those purposes if, among other requirements, 50% of the gross receipts generated from the sale of raffle tickets are used to benefit or provide support for beneficial or charitable purposes, as defined, the other 50% is paid to the winner, and the winners of the prizes are determined by a manual draw, as specified. Existing law authorizes a loan from the General Fund to the Major League Sporting Event Raffle Fund to address departmental workload related to the Department of Justices initial implementation of enforcement activities relating to these provisions and requires the loan to be repaid to the General Fund by no later than December 31, 2018.
This bill would extend the operation of those provisions until January 1, 2024. The bill would also extend the date by which the loan from the General Fund to the Major League Sporting Event Raffle Fund must be repaid to the General Fund to no later than December 31, 2023. By extending the operation of provisions that revise the percentage of gross receipts required to go to beneficial or charitable purposes pursuant to the California Constitution, this bill would require a 2/3 vote of each house.
Existing law requires an eligible organization to annually file a report for each of the eligible organizations last 3 fiscal years that includes specified information, including, among other things, the aggregate gross receipts from the operation of raffles and the charitable or beneficial purposes for which proceeds of the raffles were used. Existing law requires the department to make these reports available to the public pursuant to the online search portal of the Attorney Generals Registry of Charitable Trusts. Under existing law, the failure to submit these reports is grounds for denial of an annual registration.
This bill would instead require an eligible organization to file with the department and post on a specified Internet Web site, each season or year, a report that includes, among other things, the total number of raffles conducted for the season or year, the gross receipts generated from the sale of raffle tickets for the season or year, and for each raffle, each eligible recipient organization, and the amount each eligible recipient organization received. The bill would instead require the department to post the reports on its Internet Web site, but not on the online search portal of the Attorney Generals Registry of Charitable Trusts. The bill would further authorize the imposition of penalties for the failure to submit these reports, as specified.
Existing law authorizes the department to require the payment of fees to cover the reasonable costs of the department in administering and enforcing the above-described provisions, including a minimum annual registration fee of $5,000 to be paid by an eligible organization and a fee of $100 for every individual raffle conducted by the eligible organization at an eligible location, a minimum annual registration fee of $10 to be paid by a person affiliated with the eligible organization who conducts the manual raffle draw, and a minimum annual registration fee of $5,000 to be paid by a manufacturer or distributor of raffle-related products or services. Existing law authorizes the department to audit the records and other documents of a registrant to ensure compliance and authorizes the department to charge a registrant the direct costs associated with that audit.
This bill would increase the departments authority to assess fees for those purposes by doubling the amounts specified above. The bill would provide that the department is entitled to reimbursement from a registrant for all actual, reasonable, and direct costs of an audit, as specified.
This bill would declare that it is to take effect immediately as an urgency statute.
The California Constitution authorizes the Legislature to permit private, nonprofit organizations to conduct raffles as a funding mechanism to support beneficial and charitable works, if, among other conditions, at least 90% of the gross receipts from the raffle go directly to beneficial or charitable purposes in California. The California Constitution further authorizes the Legislature to amend the percentage of gross receipts required to be dedicated to beneficial or charitable purposes by a statute passed by a 2/3 vote of each house of the Legislature. Existing statutory law implements those provisions and requires the Department of Justice to administer and enforce those provisions.
Existing statutory law, until December 31, 2018, authorizes a major league sports raffle at a home game conducted by an eligible organization, as defined, for the purpose of directly supporting specified beneficial or charitable purposes in California, or financially supporting another private, nonprofit, eligible organization, as defined, that performs those purposes if, among other requirements, 50% of the gross receipts generated from the sale of raffle tickets are used to benefit or provide support for beneficial or charitable purposes, as defined, the other 50% is paid to the winner, and the winners of the prizes are determined by a manual draw, as specified. Existing law authorizes a loan from the General Fund to the Major League Sporting Event Raffle Fund to address departmental workload related to the Department of Justices initial implementation of enforcement activities relating to these provisions and requires the loan to be repaid to the General Fund by no later than December 31, 2018.
This bill would extend the operation of those provisions until January 1, 2024. The bill would also extend the date by which the loan from the General Fund to the Major League Sporting Event Raffle Fund must be repaid to the General Fund to no later than December 31, 2023. By extending the operation of provisions that revise the percentage of gross receipts required to go to beneficial or charitable purposes pursuant to the California Constitution, this bill would require a 2/3 vote of each house.
Existing law requires an eligible organization to annually file a report for each of the eligible organizations last 3 fiscal years that includes specified information, including, among other things, the aggregate gross receipts from the operation of raffles and the charitable or beneficial purposes for which proceeds of the raffles were used. Existing law requires the department to make these reports available to the public via pursuant to the online search portal of the Attorney Generals Registry of Charitable Trusts. Under existing law, the failure to submit these reports is grounds for denial of an annual registration.
This bill would instead require an eligible organization to file with the department and post on a specified Internet Web site, each season or year, a report that includes, among other things, the total number of raffles conducted for the season or year, the gross receipts generated from the sale of raffle tickets for the season or year, and for each raffle, each eligible recipient organization organization, and the amount each eligible recipient organization received. The bill would also instead require the department to post the reports on its Internet Web site, but not on the online search portal of the Attorney Generals Registry of Charitable Trusts. The bill would further authorize the imposition of penalties for the failure to submit these reports, as specified.
Existing law authorizes the department to require the payment of fees to cover the reasonable costs of the department in administering and enforcing the above-described provisions, including a minimum annual registration fee of $5,000 to be paid by an eligible organization and a fee of $100 for every individual raffle conducted by the eligible organization at an eligible location, a minimum annual registration fee of $10 to be paid by a person affiliated with the eligible organization who conducts the manual raffle draw, and a minimum annual registration fee of $5,000 to be paid by a manufacturer or distributor of raffle-related products or services. Existing law authorizes the department to audit the records and other documents of a registrant to ensure compliance and authorizes the department to charge a registrant the direct costs associated with that audit.
This bill would increase the departments authority to assess fees for those purposes by doubling the amounts specified above. The bill would provide that the department is entitled to reimbursement from a registrant for all actual, reasonable, and direct costs of an audit unless the fees to cover the departments reasonable costs to administer and enforce these provisions are sufficient to fund an auditor. audit, as specified.
This bill would declare that it is to take effect immediately as an urgency statute.
The California Constitution authorizes the Legislature to permit private, nonprofit organizations to conduct raffles as a funding mechanism to support beneficial and charitable works, if, among other conditions, at least 90% of the gross receipts from the raffle go directly to beneficial or charitable purposes in California. The California Constitution further authorizes the Legislature to amend the percentage of gross receipts required to be dedicated to beneficial or charitable purposes by a statute passed by a 2/3 vote of each house of the Legislature. Existing statutory law implements those provisions and requires the Department of Justice to administer and enforce those provisions.
Existing statutory law, until December 31, 2018, authorizes a major league sports raffle at a home game conducted by an eligible organization, as defined, for the purpose of directly supporting specified beneficial or charitable purposes in California, or financially supporting another private, nonprofit, eligible organization, as defined, that performs those purposes if, among other requirements, 50% of the gross receipts generated from the sale of raffle tickets are used to benefit or provide support for beneficial or charitable purposes, as defined, the other 50% is paid to the winner, and the winners of the prizes are determined by a manual draw, as specified. Existing law authorizes a loan from the General Fund to the Major League Sporting Event Raffle Fund to address departmental workload related to the Department of Justices initial implementation of enforcement activities relating to these provisions and requires the loan to be repaid to the General Fund by no later than December 31, 2018.
This bill would delete the December 31, 2018, date of repeal and thereby extend the operation of those provisions indefinitely. extend the operation of those provisions until January 1, 2024. The bill would also extend the date by which the loan from the General Fund to the Major League Sporting Event Raffle Fund must be repaid to the General Fund to no later than December 31, 2023. By extending the operation of provisions that revise the percentage of gross receipts required to go to beneficial or charitable purposes pursuant to the California Constitution, this bill would require a 2/3 vote of each house.
Existing law requires an eligible organization to annually file a report for each of the eligible organizations last 3 fiscal years that includes specified information, including, among other things, the aggregate gross receipts from the operation of raffles and the charitable or beneficial purposes for which proceeds of the raffles were used. Existing law requires the department to make these reports available to the public via the online search portal of the Attorney Generals Registry of Charitable Trusts.
This bill would instead require an eligible organization to file with the department and post on a specified Internet Web site, each season or year, a report that includes, among other things, the total number of raffles conducted for the season or year, the gross receipts generated from the sale of raffle tickets for the season or year, and for each raffle, each eligible recipient organization and the amount each eligible recipient organization received. The bill would also instead require the department to post the reports on its Internet Web site, but not on the online search portal of the Attorney Generals Registry of Charitable Trusts.
Existing law authorizes the department to require the payment of fees to cover the reasonable costs of the department in administering and enforcing the above-described provisions, including a minimum annual registration fee of $5,000 to be paid by an eligible organization and a fee of $100 for every individual raffle conducted by the eligible organization at an eligible location, a minimum annual registration fee of $10 to be paid by a person affiliated with the eligible organization who conducts the manual raffle draw, and a minimum annual registration fee of $5,000 to be paid by a manufacturer or distributor of raffle-related products or services. Existing law authorizes the department to audit the records and other documents of a registrant to ensure compliance and authorizes the department to charge a registrant the direct costs associated with that audit.
This bill would increase the departments authority to assess fees for those purposes by doubling the amounts specified above. The bill would provide that the department is entitled to reimbursement from a registrant for all actual, reasonable, and direct costs of an audit unless the fees to cover the departments reasonable costs to administer and enforce these provisions are sufficient to fund an auditor.
The California Constitution authorizes the Legislature to permit private, nonprofit organizations to conduct raffles as a funding mechanism to support beneficial and charitable works, if, among other conditions, at least 90% of the gross receipts from the raffle go directly to beneficial or charitable purposes in California. The California Constitution further authorizes the Legislature to amend the percentage of gross receipts required to be dedicated to beneficial or charitable purposes by a statute passed by a 2/3 vote of each house of the Legislature. Existing statutory law implements those provisions and requires the Department of Justice to administer and enforce those provisions.
Existing statutory law, until December 31, 2018, authorizes a major league sports raffle at a home game conducted by an eligible organization, as defined, for the purpose of directly supporting specified beneficial or charitable purposes in California, or financially supporting another private, nonprofit, eligible organization, as defined, that performs those purposes if, among other requirements, 50% of the gross receipts generated from the sale of raffle tickets are used to benefit or provide support for beneficial or charitable purposes, as defined, the other 50% is paid to the winner, and the winners of the prizes are determined by a manual draw, as specified.
This bill would delete the December 31, 2018, date of repeal and thereby extend the operation of those provisions indefinitely. By extending the operation of provisions that revise the percentage of gross receipts required to go to beneficial or charitable purposes pursuant to the California Constitution, this bill would require a 2/3 vote of each house.
Existing law requires an eligible organization to annually file a report for each of the eligible organizations last 3 fiscal years that includes specified information, including, among other things, the aggregate gross receipts from the operation of raffles and the charitable or beneficial purposes for which proceeds of the raffles were used. Existing law requires the department to make these reports available to the public via the online search portal of the Attorney Generals Registry of Charitable Trusts.
This bill would instead require an eligible organization to file with the department and post on a specified Internet Web site, each season or year, a report that includes, among other things, the total number of raffles conducted for the season or year, the gross receipts generated from the sale of raffle tickets for the season or year, and for each raffle, each eligible recipient organization and the amount each eligible recipient organization received. The bill would also instead require the department to post the reports on its Internet Web site, but not on the online search portal of the Attorney Generals Registry of Charitable Trusts.
The California Constitution authorizes the Legislature to permit private, nonprofit organizations to conduct raffles as a funding mechanism to support beneficial and charitable works, if, among other conditions, at least 90% of the gross receipts from the raffle go directly to beneficial or charitable purposes in California. The California Constitution further authorizes the Legislature to amend the percentage of gross receipts required to be dedicated to beneficial or charitable purposes by a statute passed by a 2/3 vote of each house of the Legislature. Existing statutory law implements those provisions and requires the Department of Justice to administer and enforce those provisions.
Existing statutory law, until December 31, 2018, authorizes a major league sports raffle at a home game conducted by an eligible organization, as defined, for the purpose of directly supporting specified beneficial or charitable purposes in California, or financially supporting another private, nonprofit, eligible organization, as defined, that performs those purposes if, among other requirements, 50% of the gross receipts generated from the sale of raffle tickets are used to benefit or provide support for beneficial or charitable purposes, as defined, the other 50% is paid to the winner, and the winners of the prizes are determined by a manual draw, as specified.
This bill would delete the December 31, 2018, date of repeal and thereby extend the operation of those provisions indefinitely. By extending the operation of provisions that revise the percentage of gross receipts required to go to beneficial or charitable purposes pursuant to the California Constitution, this bill would require a 2/3 vote of each house.
Existing law establishes the Board of Vocational Nursing and Psychiatric Technicians of the State of California within the Department of Consumer Affairs and sets forth its powers and duties relating to the licensure and regulation of vocational nurses and psychiatric technicians. Existing law requires the Board of Vocational Nursing and Psychiatric Technicians of the State of California to discipline the holder of any license whose default has been entered or who has been heard by the board and found guilty. Existing law requires the Governor to appoint an executive officer to perform duties as delegated by the board.This bill would require the board to delegate to the executive officer the authority to adopt a decision entered by default and to adopt a stipulation for surrender of a license. The bill would also correct an erroneous cross-reference.Existing law establishes the Board of Vocational Nursing and Psychiatric Technicians of the State of California within the Department of Consumer Affairs and sets forth its powers and duties relating to the licensure and regulation of vocational nurses and psychiatric technicians. Existing law requires the Board of Vocational Nursing and Psychiatric Technicians of the State of California to discipline the holder of any license whose default has been entered or who has been heard by the board and found guilty. Existing law requires the Governor to appoint an executive officer to perform duties as delegated by the board.
This bill would require the board to delegate to the executive officer the authority to adopt a decision entered by default and to adopt a stipulation for surrender of a license. The bill would also correct an erroneous cross-reference.
The Cal Grant Program establishes the Cal Grant A and B Entitlement Awards, the California Community College Transfer Cal Grant Entitlement Awards, the Competitive Cal Grant A and B Awards, the Cal Grant C Awards, and the Cal Grant T Awards under the administration of the Student Aid Commission, and establishes eligibility requirements for awards under these programs for participating students attending qualifying institutions.Existing federal law, known as Title IX of the Education Amendments of 1972, prohibits a person, on the basis of sex, from being excluded from participation in, being denied the benefits of, or being subject to discrimination under, any education program or activity receiving federal financial assistance.This bill would require, commencing in 2018, every private postsecondary educational institution that receives Cal Grant funding to annually report, on or before July 1 of each year, to the Legislative Analysts Office its student disciplinary actions, including, but not limited to, its rate of expulsion, for the previous academic year, aggregated by the institutional policy violated, and disaggregated, for each policy violated, by the type of disciplinary action taken, whether the disciplined students were Cal Grant recipients, whether the disciplinary action was taken in connection with students who fit one or more of a list of specified categories, and whether the institution has ever applied for, or is in receipt of, an exemption from Title IX. The bill would require, commencing in 2019, the Legislative Analysts Office to annually report, on or before January 1 of each year, to the appropriate policy committees of the Legislature the data submitted by these institutions for the previous year, aggregated by faith-based private postsecondary educational institutions and nonfaith-based private postsecondary educational institutions, not including the names of these institutions. The bill would specify that each report submitted pursuant to the bills provisions shall not include personally identifiable information about the disciplined students.The Cal Grant Program establishes the Cal Grant A and B Entitlement Awards, the California Community College Transfer Cal Grant Entitlement Awards, the Competitive Cal Grant A and B Awards, the Cal Grant C Awards, and the Cal Grant T Awards under the administration of the Student Aid Commission, and establishes eligibility requirements for awards under these programs for participating students attending qualifying institutions.
Existing federal law, known as Title IX of the Education Amendments of 1972, prohibits a person, on the basis of sex, from being excluded from participation in, being denied the benefits of, or being subject to discrimination under, any education program or activity receiving federal financial assistance.
This bill would require, commencing in 2018, every private postsecondary educational institution that receives Cal Grant funding to annually report, by on or before July 1 of each year, to the Legislature Legislative Analysts Office its student disciplinary actions, including, but not limited to, its rate of expulsion, for the previous academic year, aggregated by the institutional policy violated, and disaggregated, for each policy violated, by the type of disciplinary action taken, whether the disciplined students were Cal Grant recipients, whether the disciplinary action was taken in connection with students who fit one or more of a list of specified categories, and whether the institution has ever applied for, or is in receipt of, an exemption from Title IX. The bill would require, commencing in 2019, the Legislative Analysts Office to annually report, on or before January 1 of each year, to the appropriate policy committees of the Legislature the data submitted by these institutions for the previous year, aggregated by faith-based private postsecondary educational institutions and nonfaith-based private postsecondary educational institutions, not including the names of these institutions. The bill would specify that each report submitted pursuant to the bills provisions shall not include personally identifiable information about the disciplined students.
The Cal Grant Program establishes the Cal Grant A and B Entitlement Awards, the California Community College Transfer Cal Grant Entitlement Awards, the Competitive Cal Grant A and B Awards, the Cal Grant C Awards, and the Cal Grant T Awards under the administration of the Student Aid Commission, and establishes eligibility requirements for awards under these programs for participating students attending qualifying institutions.
Existing federal law, known as Title IX of the Education Amendments of 1972, prohibits a person, on the basis of sex, from being excluded from participation in, being denied the benefits of, or being subject to discrimination under, any education program or activity receiving federal financial assistance.
This bill would require, commencing in 2018, every private postsecondary educational institution that receives Cal Grant funding to annually report, by July 1 of each year, to the Legislature its rate of expulsion for the previous academic year disaggregated by the gender and ethnicity of the expelled students and whether they were Cal Grant recipients. its student disciplinary actions, including, but not limited to, its rate of expulsion, for the previous academic year, aggregated by the institutional policy violated, and disaggregated, for each policy violated, by the type of disciplinary action taken, whether the disciplined students were Cal Grant recipients, whether the disciplinary action was taken in connection with students who fit one or more of a list of specified categories, and whether the institution has ever applied for, or is in receipt of, an exemption from Title IX. The bill would specify that each report shall not include personally identifiable information about the disciplined students.
The Cal Grant Program establishes the Cal Grant A and B Entitlement Awards, the California Community College Transfer Cal Grant Entitlement Awards, the Competitive Cal Grant A and B Awards, the Cal Grant C Awards, and the Cal Grant T Awards under the administration of the Student Aid Commission, and establishes eligibility requirements for awards under these programs for participating students attending qualifying institutions.
This bill would require, commencing in 2018, every private postsecondary educational institution that receives Cal Grant funding to annually report, by July 1 of each year, to the Legislature its rate of expulsion for the previous academic year disaggregated by the gender and ethnicity of the expelled students and whether they were Cal Grant recipients.
(a)Notwithstanding Section 320.5, this section applies to an eligible organization, as defined in subdivision (c).
(b)A raffle that is conducted by an eligible organization, as defined in subdivision (c), for the purpose of directly supporting beneficial or charitable purposes or financially supporting another private, nonprofit eligible organization, as defined in subdivision (c) of Section 320.5, that performs beneficial or charitable purposes may be conducted in accordance with this section.
(c)For purposes of this section, eligible organization means a private, nonprofit organization established by, or affiliated with, a team from the Major League Baseball, National Hockey League, National Basketball Association, National Football League, Womens National Basketball Association, or Major League Soccer, or a private, nonprofit organization established by the Professional Golfers Association of America, Ladies Professional Golf Association, or National Association for Stock Car Auto Racing that has been qualified to conduct business in California for at least one year before conducting a raffle, is qualified for an exemption under Section 501(c)(3) of the Internal Revenue Code, and is exempt from taxation pursuant to Section 23701a, 23701b, 23701d, 23701e, 23701f, 23701g, 23701k, 23701l, 23701t, or 23701w of the Revenue and Taxation Code.
(d)For purposes of this section, raffle means a scheme for the distribution of prizes by chance among persons who have paid money for paper tickets that provide the opportunity to win these prizes, in which all of the following are true:
(1)Each ticket sold contains a unique and matching identifier.
(2)(A)Winners of the prizes are determined by a manual draw from tickets described in paragraph (1) that have been sold for entry in the manual draw.
(B)An electronic device may be used to sell tickets. The ticket receipt issued by the electronic device to the purchaser may include more than one unique and matching identifier, representative of and matched to the number of tickets purchased in a single transaction.
(C)A random number generator is not used for the manual draw or to sell tickets.
(D)The prize paid to the winner is comprised of one-half or 50 percent of the gross receipts generated from the sale of raffle tickets for a raffle.
(3)The manual draw is conducted in California under the supervision of a natural person who meets all of the following requirements:
(A)The person is 18 years of age or older.
(B)The person is affiliated with the eligible organization conducting the raffle.
(C)The person is registered with the Department of Justice pursuant to paragraph (4) of subdivision (o).
(4)(A)Fifty percent of the gross receipts generated from the sale of raffle tickets for any given manual draw are used by the eligible organization conducting the raffle solely for charitable purposes, or used to benefit another private, nonprofit organization, provided that an organization receiving these funds is itself an eligible organization as defined in subdivision (c) of Section 320.5. As used in this section, charitable purposes excludes purposes that are intended to benefit officers, directors, or members, as defined by Section 5056 of the Corporations Code, of the eligible organization. Funds raised by raffles conducted pursuant to this section shall not be used to fund any beneficial, charitable, or other purpose outside of California. This section does not preclude an eligible organization from using funds from sources other than the sale of raffle tickets to pay for the administration or other costs of conducting a raffle if these expenses comply with legal standard of care requirements described in Sections 5231, 7231, and 9241 of the Corporations Code.
(B)An employee of an eligible organization who is a direct seller of raffle tickets shall not be treated as an employee for purposes of workers compensation under Section 3351 of the Labor Code if both of the following conditions are satisfied:
(i)Substantially all of the remuneration, whether or not paid in cash, for the performance of the service of selling raffle tickets is directly related to sales rather than to the number of hours worked.
(ii)The services performed by the person are performed pursuant to a written contract between the seller and the eligible organization and the contract provides that the person will not be treated as an employee with respect to the selling of raffle tickets for workers compensation purposes.
(C)For purposes of this section, an employee selling raffle tickets shall be deemed to be a direct seller, as described in Section 650 of the Unemployment Insurance Code, as long as he or she meets the requirements of that section.
(e)A person who receives compensation in connection with the operation of the raffle shall be an employee of the eligible organization that is conducting the raffle, and in no event may compensation be paid from revenues required to be dedicated to beneficial or charitable purposes.
(f)A raffle ticket shall not be sold in exchange for Bitcoin or any other cryptocurrency.
(g)A raffle that is otherwise permitted under this section shall not be conducted by means of, or otherwise utilize, any gaming machine that meets the definition of slot machine contained in Section 330a, 330b, or 330.1.
(h)(1)A raffle otherwise permitted under this section shall not be conducted, nor may tickets for a raffle be sold, within an operating satellite wagering facility or racetrack inclosure licensed pursuant to the Horse Racing Law (Chapter 4 (commencing with Section 19400) of Division 8 of the Business and Professions Code) or within a gambling establishment licensed pursuant to the Gambling Control Act (Chapter 5 (commencing with Section 19800) of Division 8 of the Business and Professions Code).
(2)A raffle shall not be operated or conducted in any manner over the Internet, nor may raffle tickets be sold, traded, or redeemed over the Internet. For purposes of this paragraph, an eligible organization shall not be deemed to operate or conduct a raffle over the Internet, or sell raffle tickets over the Internet, if the eligible organization advertises its raffle on the Internet or permits others to do so. Information that may be conveyed on an Internet Web site pursuant to this paragraph includes, but is not limited to, all of the following:
(A)Lists, descriptions, photographs, or videos of the raffle prizes.
(B)Lists of the prize winners.
(C)The rules of the raffle.
(D)Frequently asked questions and their answers.
(E)Raffle entry forms, which may be downloaded from the Internet Web site for manual completion by raffle ticket purchasers, but shall not be submitted to the eligible organization through the Internet.
(F)Raffle contact information, including the eligible organizations name, address, telephone number, facsimile number, or email address.
(i)An individual, corporation, partnership, or other legal entity shall not hold a financial interest in the conduct of a raffle, except the eligible organization that is itself authorized to conduct that raffle, and any private, nonprofit, eligible organizations receiving financial support from that charitable organization pursuant to subdivisions (b) and (d).
(j)(1)An eligible organization may conduct a major league sports raffle only at a home game.
(2)An eligible organization shall not conduct more than one major league sports raffle per home game.
(k)An employee shall not sell raffle tickets in any seating area designated as a family section.
(l)An eligible organization shall disclose to all ticket purchasers the designated private, nonprofit, eligible organization for which the raffle is being conducted.
(m)An eligible organization that conducts a raffle to financially support another private, nonprofit eligible organization, as defined in subdivision (c) of Section 320.5, shall distribute all proceeds not paid out to the winners of the prizes to the private, nonprofit organization within 15 days of conducting the raffle, in accordance with this section.
(n)Any raffle prize remaining unclaimed by a winner at the end of the season for a team with an affiliated eligible organization that conducted a raffle to financially support another private, nonprofit eligible organization, as defined in subdivision (c) of Section 320.5, shall be donated within 30 days from the end of the season by the eligible organization to the designated private, nonprofit organization for which the raffle was conducted.
(o)(1)(A)An eligible organization shall not conduct a raffle authorized under this section, unless it has a valid registration issued by the Department of Justice. The department shall furnish a registration form via the Internet or upon request to eligible nonprofit organizations. The department shall, by regulation, collect only the information necessary to carry out the provisions of this section on this form. This information shall include, but is not limited to, all of the following:
(i)The name and address of the eligible organization.
(ii)The federal tax identification number, the corporate number issued by the Secretary of State, the organization number issued by the Franchise Tax Board, or the California charitable trust identification number of the eligible organization.
(iii)The name and title of a responsible fiduciary of the organization.
(B)(i)The department may require an eligible organization to pay a minimum annual registration fee of ten thousand dollars ($10,000) to cover the reasonable costs of the department to administer and enforce this section.
(ii)An eligible organization shall pay, in addition to the annual registration application fee, two hundred dollars ($200) for every individual raffle conducted at an eligible location to cover the reasonable costs of the department to administer and enforce this section. This fee shall be submitted in conjunction with the annual registration form.
(2)(A)A manufacturer or distributor of raffle-related products or services shall not conduct business with an eligible organization for purposes of conducting a raffle pursuant to this section unless the manufacturer or distributor has a valid annual registration issued by the department.
(B)The department may require a manufacturer or distributor of raffle-related products or services to pay a minimum annual registration fee of ten thousand dollars ($10,000) to cover the reasonable costs of the department to administer and enforce this section.
(3)An eligible organization shall register the equipment used in the sale and distribution of raffle tickets, and shall have the equipment tested by an independent gaming testing lab.
(4)(A)A person affiliated with an eligible organization who conducts the manual draw shall annually register with the department.
(B)The department may require a person affiliated with an eligible organization who conducts the manual draw to pay a minimum annual registration fee of twenty dollars ($20) to cover the reasonable costs of the department to administer and enforce this section.
(5)(A)The department may, by regulation, adjust the annual registration fees described in this section as needed to ensure that revenues will fully offset, but not exceed, the reasonable costs incurred by the department pursuant to this section. The fees shall be deposited by the department into the Major League Sporting Event Raffle Fund, which is hereby created in the State Treasury.
(B)A loan is hereby authorized from the General Fund to the Major League Sporting Event Raffle Fund on or after July 1, 2016, in an amount of up to one million five thousand dollars ($1,005,000) to address department workload related to the initial implementation activities relating to this section by the departments Indian and Gaming Law Section. The terms and conditions of the loan shall first be approved by the Department of Finance pursuant to appropriate fiscal standards. The loan shall be subject to all of the following conditions:
(i)Of the total amount loaned, no more than three hundred thirty-five thousand dollars ($335,000) shall be provided annually to the department.
(ii)The loan shall be repaid to the General Fund as soon as there is sufficient money in the Major League Sporting Event Raffle Fund to repay the loan, but no later than December 31, 2023.
(iii)Interest on the loan shall be paid from the Major League Sporting Event Raffle Fund at the rate accruing to moneys in the Pooled Money Investment Account.
(6)The department shall receive moneys for the costs incurred pursuant to this section subject to an appropriation by the Legislature.
(7)The department shall adopt regulations necessary to effectuate this section, including emergency regulations, pursuant to the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).
(8)The department shall maintain an automated database of all registrants.
(9)A local law enforcement agency shall notify the department of any arrests or investigation that may result in an administrative or criminal action against a registrant.
(10)The department may, to the extent the Legislature appropriates funds for this purpose, investigate all suspected violations of this section or any regulation adopted pursuant to this section, or any activity that the registrant has engaged in that is not in the best interests of the publics health, safety, or general welfare as it pertains to charitable raffles.
(11)(A)The department may, to the extent the Legislature appropriates funds for this purpose, audit the records and other documents of a registrant to ensure compliance with this section.
(B)The department is entitled to reimbursement from the registrant for all actual, reasonable, and direct costs incurred in auditing, reviewing, and evaluating the raffle reports being audited. The registrant shall promptly pay the department, upon request, for all of those costs.
(12)Once registered, an eligible organization shall post all of the following information on either its Internet Web site or the affiliated sport teams Internet Web site for each raffle:
(A)The gross receipts generated from the sale of raffle tickets.
(B)Each eligible recipient organization and the amount each eligible recipient organization received.
(C)The prize total.
(D)The winning ticket number and whether the prize was claimed.
(13)(A)Once registered, an eligible organization shall file with the department, each season or year thereafter, a report that includes all of the following information:
(i)For each raffle, all of the following information:
(I)The gross receipts generated from the sale of raffle tickets.
(II)Each eligible recipient organization and the amount each eligible recipient organization received.
(III)The prize total.
(IV)The winning ticket number and whether the prize was claimed.
(ii)The total number of raffles conducted for the season or year.
(iii)The gross receipts generated from the sale of raffle tickets for the season or year.
(iv)The average per raffle gross receipts generated from the sale of raffle tickets for the season or year.
(v)The prize total for the season or year, including any prize that was not claimed.
(vi)The average per raffle prize total for the season or year, including any prize that was not claimed.
(vii)The prize total that was not claimed, if any, during the season or year. For each raffle in which the prize was not claimed, the name of the eligible recipient organization who received the prize.
(viii)A schedule of all vendors used to operate the raffles and total payments made to each vendor.
(ix)An itemization of the direct costs of conducting the raffles, including labor, raffle equipment, software, marketing, and consulting costs.
(B)Failure to timely submit the seasonal or annual report to the department, as required in this paragraph, shall be grounds for denial of an annual registration and for the imposition of penalties under Section 12591.1 of the Government Code.
(C)Failure to submit a complete financial report shall be grounds for the denial of an annual registration and for the imposition of penalties under Section 12591.1 of the Government Code if the filer does not resubmit a complete form within 30 days of receiving a notice of incomplete filing.
(D)(i)An eligible organization shall file with the department and post on either its Internet Web site or the affiliated sport teams Internet Web site the report required by this paragraph no later than 60 days after the end of the league season or year.
(ii)The department shall post the reports required by this paragraph on its Internet Web site, but shall not post the report on the online search portal of the Attorney Generals Registry of Charitable Trusts maintained pursuant to Section 12584 of the Government Code.
(14)The department shall annually furnish to registrants a form to collect this information.
(p)The department may take legal action against a registrant if it determines that the registrant has violated this section or a regulation adopted pursuant to this section, or that the registrant has engaged in any conduct that is not in the best interests of the publics health, safety, or general welfare. An action taken pursuant to this subdivision does not prohibit the commencement of an administrative or criminal action by the Attorney General, a district attorney, city attorney, or county counsel.
(q)An action and hearing conducted to deny, revoke, or suspend a registry, or other administrative action taken against a registrant, shall be conducted pursuant to the Administrative Procedure Act (Chapters 4.5 (commencing with Section 11400) and 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code). The department may seek civil remedies, including imposing fines, for violations of this section, and may seek recovery of the costs incurred in investigating or prosecuting an action against a registrant or applicant in accordance with those procedures specified in Section 125.3 of the Business and Professions Code. A proceeding conducted under this subdivision is subject to judicial review pursuant to Section 1094.5 of the Code of Civil Procedure. A violation of this section shall not constitute a crime.
(r)This section shall remain in effect only until January 1, 2024, and as of that date is repealed, unless a later enacted statute that is enacted before January 1, 2024, deletes or extends that date.
SEC. 2.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:
To enable private, nonprofit organizations to benefit from coordinated, uninterrupted provisions authorizing raffles as a funding mechanism to support beneficial and charitable works as soon as possible, it is necessary that this act take effect immediately.
(a)Notwithstanding Section 320.5, this section applies to an eligible organization, as defined in subdivision (c).
(b)A raffle that is conducted by an eligible organization, as defined in subdivision (c), for the purpose of directly supporting beneficial or charitable purposes or financially supporting another private, nonprofit eligible organization, as defined in subdivision (c) of Section 320.5, that performs beneficial or charitable purposes may be conducted in accordance with this section.
(c)For purposes of this section, eligible organization means a private, nonprofit organization established by, or affiliated with, a team from the Major League Baseball, National Hockey League, National Basketball Association, National Football League, Womens National Basketball Association, or Major League Soccer, or a private, nonprofit organization established by the Professional Golfers Association of America, Ladies Professional Golf Association, or National Association for Stock Car Auto Racing that has been qualified to conduct business in California for at least one year before conducting a raffle, is qualified for an exemption under Section 501(c)(3) of the Internal Revenue Code, and is exempt from taxation pursuant to Section 23701a, 23701b, 23701d, 23701e, 23701f, 23701g, 23701k, 23701l, 23701t, or 23701w of the Revenue and Taxation Code.
(d)For purposes of this section, raffle means a scheme for the distribution of prizes by chance among persons who have paid money for paper tickets that provide the opportunity to win these prizes, in which all of the following are true:
(1)Each ticket sold contains a unique and matching identifier.
(2)(A)Winners of the prizes are determined by a manual draw from tickets described in paragraph (1) that have been sold for entry in the manual draw.
(B)An electronic device may be used to sell tickets. The ticket receipt issued by the electronic device to the purchaser may include more than one unique and matching identifier, representative of and matched to the number of tickets purchased in a single transaction.
(C)A random number generator is not used for the manual draw or to sell tickets.
(D)The prize paid to the winner is comprised of one-half or 50 percent of the gross receipts generated from the sale of raffle tickets for a raffle.
(3)The manual draw is conducted in California under the supervision of a natural person who meets all of the following requirements:
(A)The person is 18 years of age or older.
(B)The person is affiliated with the eligible organization conducting the raffle.
(C)The person is registered with the Department of Justice pursuant to paragraph (4) of subdivision (o).
(4)(A)Fifty percent of the gross receipts generated from the sale of raffle tickets for any given manual draw are used by the eligible organization conducting the raffle solely for charitable purposes, or used to benefit another private, nonprofit organization, provided that an organization receiving these funds is itself an eligible organization as defined in subdivision (c) of Section 320.5. As used in this section, charitable purposes excludes purposes that are intended to benefit officers, directors, or members, as defined by Section 5056 of the Corporations Code, of the eligible organization. Funds raised by raffles conducted pursuant to this section shall not be used to fund any beneficial, charitable, or other purpose outside of California. This section does not preclude an eligible organization from using funds from sources other than the sale of raffle tickets to pay for the administration or other costs of conducting a raffle if these expenses comply with legal standard of care requirements described in Sections 5231, 7231, and 9241 of the Corporations Code.
(B)An employee of an eligible organization who is a direct seller of raffle tickets shall not be treated as an employee for purposes of workers compensation under Section 3351 of the Labor Code if both of the following conditions are satisfied:
(i)Substantially all of the remuneration, whether or not paid in cash, for the performance of the service of selling raffle tickets is directly related to sales rather than to the number of hours worked.
(ii)The services performed by the person are performed pursuant to a written contract between the seller and the eligible organization and the contract provides that the person will not be treated as an employee with respect to the selling of raffle tickets for workers compensation purposes.
(C)For purposes of this section, an employee selling raffle tickets shall be deemed to be a direct seller, as described in Section 650 of the Unemployment Insurance Code, as long as he or she meets the requirements of that section.
(e)A person who receives compensation in connection with the operation of the raffle shall be an employee of the eligible organization that is conducting the raffle, and in no event may compensation be paid from revenues required to be dedicated to beneficial or charitable purposes.
(f)A raffle ticket shall not be sold in exchange for Bitcoin or any other cryptocurrency.
(g)A raffle that is otherwise permitted under this section shall not be conducted by means of, or otherwise utilize, any gaming machine that meets the definition of slot machine contained in Section 330a, 330b, or 330.1.
(h)(1)A raffle otherwise permitted under this section shall not be conducted, nor may tickets for a raffle be sold, within an operating satellite wagering facility or racetrack inclosure licensed pursuant to the Horse Racing Law (Chapter 4 (commencing with Section 19400) of Division 8 of the Business and Professions Code) or within a gambling establishment licensed pursuant to the Gambling Control Act (Chapter 5 (commencing with Section 19800) of Division 8 of the Business and Professions Code).
(2)A raffle shall not be operated or conducted in any manner over the Internet, nor may raffle tickets be sold, traded, or redeemed over the Internet. For purposes of this paragraph, an eligible organization shall not be deemed to operate or conduct a raffle over the Internet, or sell raffle tickets over the Internet, if the eligible organization advertises its raffle on the Internet or permits others to do so. Information that may be conveyed on an Internet Web site pursuant to this paragraph includes, but is not limited to, all of the following:
(A)Lists, descriptions, photographs, or videos of the raffle prizes.
(B)Lists of the prize winners.
(C)The rules of the raffle.
(D)Frequently asked questions and their answers.
(E)Raffle entry forms, which may be downloaded from the Internet Web site for manual completion by raffle ticket purchasers, but shall not be submitted to the eligible organization through the Internet.
(F)Raffle contact information, including the eligible organizations name, address, telephone number, facsimile number, or email address.
(i)An individual, corporation, partnership, or other legal entity shall not hold a financial interest in the conduct of a raffle, except the eligible organization that is itself authorized to conduct that raffle, and any private, nonprofit, eligible organizations receiving financial support from that charitable organization pursuant to subdivisions (b) and (d).
(j)(1)An eligible organization may conduct a major league sports raffle only at a home game.
(2)An eligible organization shall not conduct more than one major league sports raffle per home game.
(k)An employee shall not sell raffle tickets in any seating area designated as a family section.
(l)An eligible organization shall disclose to all ticket purchasers the designated private, nonprofit, eligible organization for which the raffle is being conducted.
(m)An eligible organization that conducts a raffle to financially support another private, nonprofit eligible organization, as defined in subdivision (c) of Section 320.5, shall distribute all proceeds not paid out to the winners of the prizes to the private, nonprofit organization within 15 days of conducting the raffle, in accordance with this section.
(n)Any raffle prize remaining unclaimed by a winner at the end of the season for a team with an affiliated eligible organization that conducted a raffle to financially support another private, nonprofit eligible organization, as defined in subdivision (c) of Section 320.5, shall be donated within 30 days from the end of the season by the eligible organization to the designated private, nonprofit organization for which the raffle was conducted.
(o)(1)(A)An eligible organization shall not conduct a raffle authorized under this section, unless it has a valid registration issued by the Department of Justice. The department shall furnish a registration form via the Internet or upon request to eligible nonprofit organizations. The department shall, by regulation, collect only the information necessary to carry out the provisions of this section on this form. This information shall include, but is not limited to, all of the following:
(i)The name and address of the eligible organization.
(ii)The federal tax identification number, the corporate number issued by the Secretary of State, the organization number issued by the Franchise Tax Board, or the California charitable trust identification number of the eligible organization.
(iii)The name and title of a responsible fiduciary of the organization.
(B)(i)The department may require an eligible organization to pay a minimum annual registration fee of ten thousand dollars ($10,000) to cover the reasonable costs of the department to administer and enforce this section.
(ii)An eligible organization shall pay, in addition to the annual registration application fee, two hundred dollars ($200) for every individual raffle conducted at an eligible location to cover the reasonable costs of the department to administer and enforce this section. This fee shall be submitted in conjunction with the annual registration form.
(2)(A)A manufacturer or distributor of raffle-related products or services shall not conduct business with an eligible organization for purposes of conducting a raffle pursuant to this section unless the manufacturer or distributor has a valid annual registration issued by the department.
(B)The department may require a manufacturer or distributor of raffle-related products or services to pay a minimum annual registration fee of ten thousand dollars ($10,000) to cover the reasonable costs of the department to administer and enforce this section.
(3)An eligible organization shall register the equipment used in the sale and distribution of raffle tickets, and shall have the equipment tested by an independent gaming testing lab.
(4)(A)A person affiliated with an eligible organization who conducts the manual draw shall annually register with the department.
(B)The department may require a person affiliated with an eligible organization who conducts the manual draw to pay a minimum annual registration fee of twenty dollars ($20) to cover the reasonable costs of the department to administer and enforce this section.
(5)(A)The department may, by regulation, adjust the annual registration fees described in this section as needed to ensure that revenues will fully offset, but not exceed, the reasonable costs incurred by the department pursuant to this section. The fees shall be deposited by the department into the Major League Sporting Event Raffle Fund, which is hereby created in the State Treasury.
(B)A loan is hereby authorized from the General Fund to the Major League Sporting Event Raffle Fund on or after July 1, 2016, in an amount of up to one million five thousand dollars ($1,005,000) to address department workload related to the initial implementation activities relating to this section by the departments Indian and Gaming Law Section. The terms and conditions of the loan shall first be approved by the Department of Finance pursuant to appropriate fiscal standards. The loan shall be subject to all of the following conditions:
(i)Of the total amount loaned, no more than three hundred thirty-five thousand dollars ($335,000) shall be provided annually to the department.
(ii)The loan shall be repaid to the General Fund as soon as there is sufficient money in the Major League Sporting Event Raffle Fund to repay the loan, but no later than December 31, 2023.
(iii)Interest on the loan shall be paid from the Major League Sporting Event Raffle Fund at the rate accruing to moneys in the Pooled Money Investment Account.
(6)The department shall receive moneys for the costs incurred pursuant to this section subject to an appropriation by the Legislature.
(7)The department shall adopt regulations necessary to effectuate this section, including emergency regulations, pursuant to the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).
(8)The department shall maintain an automated database of all registrants.
(9)A local law enforcement agency shall notify the department of any arrests or investigation that may result in an administrative or criminal action against a registrant.
(10)The department may, to the extent the Legislature appropriates funds for this purpose, investigate all suspected violations of this section or any regulation adopted pursuant to this section, or any activity that the registrant has engaged in that is not in the best interests of the publics health, safety, or general welfare as it pertains to charitable raffles.
(11)(A)The department may, to the extent the Legislature appropriates funds for this purpose, audit the records and other documents of a registrant to ensure compliance with this section.
(B)The department is entitled to reimbursement from the registrant for all actual, reasonable, and direct costs incurred in auditing, reviewing, and evaluating the raffle reports being audited. The registrant shall promptly pay the department, upon request, for all of those costs.
(12)Once registered, an eligible organization shall post all of the following information on either its Internet Web site or the affiliated sport teams Internet Web site for each raffle:
(A)The gross receipts generated from the sale of raffle tickets.
(B)Each eligible recipient organization and the amount each eligible recipient organization received.
(C)The prize total.
(D)The winning ticket number and whether the prize was claimed.
(13)(A)Once registered, an eligible organization shall file with the department, each season or year thereafter, a report that includes all of the following information:
(i)For each raffle, all of the following information:
(I)The gross receipts generated from the sale of raffle tickets.
(II)Each eligible recipient organization and the amount each eligible recipient organization received.
(III)The prize total.
(IV)The winning ticket number and whether the prize was claimed.
(ii)The total number of raffles conducted for the season or year.
(iii)The gross receipts generated from the sale of raffle tickets for the season or year.
(iv)The average per raffle gross receipts generated from the sale of raffle tickets for the season or year.
(v)The prize total for the season or year, including any prize that was not claimed.
(vi)The average per raffle prize total for the season or year, including any prize that was not claimed.
(vii)The prize total that was not claimed, if any, during the season or year. For each raffle in which the prize was not claimed, the name of the eligible recipient organization who received the prize.
(viii)A schedule of all vendors used to operate the raffles and total payments made to each vendor.
(ix)An itemization of the direct costs of conducting the raffles, including labor, raffle equipment, software, marketing, and consulting costs.
(B)Failure to timely submit the seasonal or annual report to the department, as required in this paragraph, shall be grounds for denial of an annual registration and for the imposition of penalties under Section 12591.1 of the Government Code.
(C)Failure to submit a complete financial report shall be grounds for the denial of an annual registration and for the imposition of penalties under Section 12591.1 of the Government Code if the filer does not resubmit a complete form within 30 days of receiving a notice of incomplete filing.
(D)(i)An eligible organization shall file with the department and post on either its Internet Web site or the affiliated sport teams Internet Web site the report required by this paragraph no later than 60 days after the end of the league season or year.
(ii)The department shall post the reports required by this paragraph on its Internet Web site, but shall not post the report on the online search portal of the Attorney Generals Registry of Charitable Trusts maintained pursuant to Section 12584 of the Government Code.
(14)The department shall annually furnish to registrants a form to collect this information.
(p)The department may take legal action against a registrant if it determines that the registrant has violated this section or a regulation adopted pursuant to this section, or that the registrant has engaged in any conduct that is not in the best interests of the publics health, safety, or general welfare. An action taken pursuant to this subdivision does not prohibit the commencement of an administrative or criminal action by the Attorney General, a district attorney, city attorney, or county counsel.
(q)An action and hearing conducted to deny, revoke, or suspend a registry, or other administrative action taken against a registrant, shall be conducted pursuant to the Administrative Procedure Act (Chapters 4.5 (commencing with Section 11400) and 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code). The department may seek civil remedies, including imposing fines, for violations of this section, and may seek recovery of the costs incurred in investigating or prosecuting an action against a registrant or applicant in accordance with those procedures specified in Section 125.3 of the Business and Professions Code. A proceeding conducted under this subdivision is subject to judicial review pursuant to Section 1094.5 of the Code of Civil Procedure. A violation of this section shall not constitute a crime.
(r)This section shall remain in effect only until January 1, 2024, and as of that date is repealed, unless a later enacted statute that is enacted before January 1, 2024, deletes or extends that date.
SEC. 2.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:
To enable private, nonprofit organizations to benefit from coordinated, uninterrupted provisions authorizing raffles as a funding mechanism to support beneficial and charitable works as soon as possible, it is necessary that this act take effect immediately.
(a)Notwithstanding Section 320.5, this section applies to an eligible organization, as defined in subdivision (c).
(b)A raffle that is conducted by an eligible organization, as defined in subdivision (c), for the purpose of directly supporting beneficial or charitable purposes or financially supporting another private, nonprofit eligible organization, as defined in subdivision (c) of Section 320.5, that performs beneficial or charitable purposes may be conducted in accordance with this section.
(c)For purposes of this section, eligible organization means a private, nonprofit organization established by, or affiliated with, a team from the Major League Baseball, National Hockey League, National Basketball Association, National Football League, Womens National Basketball Association, or Major League Soccer, or a private, nonprofit organization established by the Professional Golfers Association of America, Ladies Professional Golf Association, or National Association for Stock Car Auto Racing that has been qualified to conduct business in California for at least one year before conducting a raffle, is qualified for an exemption under Section 501(c)(3) of the Internal Revenue Code, and is exempt from taxation pursuant to Section 23701a, 23701b, 23701d, 23701e, 23701f, 23701g, 23701k, 23701l, 23701t, or 23701w of the Revenue and Taxation Code.
(d)For purposes of this section, raffle means a scheme for the distribution of prizes by chance among persons who have paid money for paper tickets that provide the opportunity to win these prizes, in which all of the following are true:
(1)Each ticket sold contains a unique and matching identifier.
(2)(A)Winners of the prizes are determined by a manual draw from tickets described in paragraph (1) that have been sold for entry in the manual draw.
(B)An electronic device may be used to sell tickets. The ticket receipt issued by the electronic device to the purchaser may include more than one unique and matching identifier, representative of and matched to the number of tickets purchased in a single transaction.
(C)A random number generator is not used for the manual draw or to sell tickets.
(D)The prize paid to the winner is comprised of one-half or 50 percent of the gross receipts generated from the sale of raffle tickets for a raffle.
(3)The manual draw is conducted in California under the supervision of a natural person who meets all of the following requirements:
(A)The person is 18 years of age or older.
(B)The person is affiliated with the eligible organization conducting the raffle.
(C)The person is registered with the Department of Justice pursuant to paragraph (4) of subdivision (o).
(4)(A)Fifty percent of the gross receipts generated from the sale of raffle tickets for any given manual draw are used by the eligible organization conducting the raffle solely for charitable purposes, or used to benefit another private, nonprofit organization, provided that an organization receiving these funds is itself an eligible organization as defined in subdivision (c) of Section 320.5. As used in this section, charitable purposes excludes purposes that are intended to benefit officers, directors, or members, as defined by Section 5056 of the Corporations Code, of the eligible organization. Funds raised by raffles conducted pursuant to this section shall not be used to fund any beneficial, charitable, or other purpose outside of California. This section does not preclude an eligible organization from using funds from sources other than the sale of raffle tickets to pay for the administration or other costs of conducting a raffle if these expenses comply with legal standard of care requirements described in Sections 5231, 7231, and 9241 of the Corporations Code.
(B)An employee of an eligible organization who is a direct seller of raffle tickets shall not be treated as an employee for purposes of workers compensation under Section 3351 of the Labor Code if both of the following conditions are satisfied:
(i)Substantially all of the remuneration, whether or not paid in cash, for the performance of the service of selling raffle tickets is directly related to sales rather than to the number of hours worked.
(ii)The services performed by the person are performed pursuant to a written contract between the seller and the eligible organization and the contract provides that the person will not be treated as an employee with respect to the selling of raffle tickets for workers compensation purposes.
(C)For purposes of this section, an employee selling raffle tickets shall be deemed to be a direct seller, as described in Section 650 of the Unemployment Insurance Code, as long as he or she meets the requirements of that section.
(e)A person who receives compensation in connection with the operation of the raffle shall be an employee of the eligible organization that is conducting the raffle, and in no event may compensation be paid from revenues required to be dedicated to beneficial or charitable purposes.
(f)A raffle ticket shall not be sold in exchange for Bitcoin or any other cryptocurrency.
(g)A raffle that is otherwise permitted under this section shall not be conducted by means of, or otherwise utilize, any gaming machine that meets the definition of slot machine contained in Section 330a, 330b, or 330.1.
(h)(1)A raffle otherwise permitted under this section shall not be conducted, nor may tickets for a raffle be sold, within an operating satellite wagering facility or racetrack inclosure licensed pursuant to the Horse Racing Law (Chapter 4 (commencing with Section 19400) of Division 8 of the Business and Professions Code) or within a gambling establishment licensed pursuant to the Gambling Control Act (Chapter 5 (commencing with Section 19800) of Division 8 of the Business and Professions Code).
(2)A raffle shall not be operated or conducted in any manner over the Internet, nor may raffle tickets be sold, traded, or redeemed over the Internet. For purposes of this paragraph, an eligible organization shall not be deemed to operate or conduct a raffle over the Internet, or sell raffle tickets over the Internet, if the eligible organization advertises its raffle on the Internet or permits others to do so. Information that may be conveyed on an Internet Web site pursuant to this paragraph includes, but is not limited to, all of the following:
(A)Lists, descriptions, photographs, or videos of the raffle prizes.
(B)Lists of the prize winners.
(C)The rules of the raffle.
(D)Frequently asked questions and their answers.
(E)Raffle entry forms, which may be downloaded from the Internet Web site for manual completion by raffle ticket purchasers, but shall not be submitted to the eligible organization through the Internet.
(F)Raffle contact information, including the eligible organizations name, address, telephone number, facsimile number, or email address.
(i)An individual, corporation, partnership, or other legal entity shall not hold a financial interest in the conduct of a raffle, except the eligible organization that is itself authorized to conduct that raffle, and any private, nonprofit, eligible organizations receiving financial support from that charitable organization pursuant to subdivisions (b) and (d).
(j)(1)An eligible organization may conduct a major league sports raffle only at a home game.
(2)An eligible organization shall not conduct more than one major league sports raffle per home game.
(k)An employee shall not sell raffle tickets in any seating area designated as a family section.
(l)An eligible organization shall disclose to all ticket purchasers the designated private, nonprofit, eligible organization for which the raffle is being conducted.
(m)An eligible organization that conducts a raffle to financially support another private, nonprofit eligible organization, as defined in subdivision (c) of Section 320.5, shall distribute all proceeds not paid out to the winners of the prizes to the private, nonprofit organization within 15 days of conducting the raffle, in accordance with this section.
(n)Any raffle prize remaining unclaimed by a winner at the end of the season for a team with an affiliated eligible organization that conducted a raffle to financially support another private, nonprofit eligible organization, as defined in subdivision (c) of Section 320.5, shall be donated within 30 days from the end of the season by the eligible organization to the designated private, nonprofit organization for which the raffle was conducted.
(o)(1)(A)An eligible organization shall not conduct a raffle authorized under this section, unless it has a valid registration issued by the Department of Justice. The department shall furnish a registration form via the Internet or upon request to eligible nonprofit organizations. The department shall, by regulation, collect only the information necessary to carry out the provisions of this section on this form. This information shall include, but is not limited to, all of the following:
(i)The name and address of the eligible organization.
(ii)The federal tax identification number, the corporate number issued by the Secretary of State, the organization number issued by the Franchise Tax Board, or the California charitable trust identification number of the eligible organization.
(iii)The name and title of a responsible fiduciary of the organization.
(B)(i)The department may require an eligible organization to pay a minimum annual registration fee of ten thousand dollars ($10,000) to cover the reasonable costs of the department to administer and enforce this section.
(ii)An eligible organization shall pay, in addition to the annual registration application fee, two hundred dollars ($200) for every individual raffle conducted at an eligible location to cover the reasonable costs of the department to administer and enforce this section. This fee shall be submitted in conjunction with the annual registration form.
(2)(A)A manufacturer or distributor of raffle-related products or services shall not conduct business with an eligible organization for purposes of conducting a raffle pursuant to this section unless the manufacturer or distributor has a valid annual registration issued by the department.
(B)The department may require a manufacturer or distributor of raffle-related products or services to pay a minimum annual registration fee of ten thousand dollars ($10,000) to cover the reasonable costs of the department to administer and enforce this section.
(3)An eligible organization shall register the equipment used in the sale and distribution of raffle tickets, and shall have the equipment tested by an independent gaming testing lab.
(4)(A)A person affiliated with an eligible organization who conducts the manual draw shall annually register with the department.
(B)The department may require a person affiliated with an eligible organization who conducts the manual draw to pay a minimum annual registration fee of twenty dollars ($20) to cover the reasonable costs of the department to administer and enforce this section.
(5)(A)The department may, by regulation, adjust the annual registration fees described in this section as needed to ensure that revenues will fully offset, but not exceed, the reasonable costs incurred by the department pursuant to this section. The fees shall be deposited by the department into the Major League Sporting Event Raffle Fund, which is hereby created in the State Treasury.
(B)A loan is hereby authorized from the General Fund to the Major League Sporting Event Raffle Fund on or after July 1, 2016, in an amount of up to one million five thousand dollars ($1,005,000) to address department workload related to the initial implementation activities relating to this section by the departments Indian and Gaming Law Section. The terms and conditions of the loan shall first be approved by the Department of Finance pursuant to appropriate fiscal standards. The loan shall be subject to all of the following conditions:
(i)Of the total amount loaned, no more than three hundred thirty-five thousand dollars ($335,000) shall be provided annually to the department.
(ii)The loan shall be repaid to the General Fund as soon as there is sufficient money in the Major League Sporting Event Raffle Fund to repay the loan, but no later than December 31, 2023.
(iii)Interest on the loan shall be paid from the Major League Sporting Event Raffle Fund at the rate accruing to moneys in the Pooled Money Investment Account.
(6)The department shall receive moneys for the costs incurred pursuant to this section subject to an appropriation by the Legislature.
(7)The department shall adopt, on or before June 1, 2016, adopt regulations necessary to effectuate this section, including emergency regulations, pursuant to the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).
(8)The department shall maintain an automated database of all registrants.
(9)A local law enforcement agency shall notify the department of any arrests or investigation that may result in an administrative or criminal action against a registrant.
(10)The department may, to the extent the Legislature appropriates funds for this purpose, investigate all suspected violations of this section or any regulation adopted pursuant to this section, or any activity that the registrant has engaged in that is not in the best interests of the publics health, safety, or general welfare as it pertains to charitable raffles.
(11)(A)The department may, to the extent the Legislature appropriates funds for this purpose, audit the records and other documents of a registrant to ensure compliance with this section.
(B)The department is entitled to reimbursement from the registrant for all actual, reasonable, and direct costs incurred in auditing, reviewing, and evaluating the raffle reports being audited. The registrant shall promptly pay the department, upon request, for all of those costs.
(C)The department shall not require a registrant to reimburse the costs described in subparagraph (B) if the fees to cover the reasonable costs of the department to administer and enforce this section are sufficient to fund an auditor.(12)Once registered, an eligible organization shall post all of the following information on either its Internet Web site or the affiliated sport teams Internet Web site for each raffle:
(A)The gross receipts generated from the sale of raffle tickets.
(B)Each eligible recipient organization and the amount each eligible recipient organization received.
(C)The prize total.
(D)The winning ticket number and whether the prize was claimed.
(13)(A)Once registered, an eligible organization shall file with the department, each season or year thereafter, a report that includes all of the following information:
(i)For each raffle, all of the following information:
(I)The gross receipts generated from the sale of raffle tickets.
(II)Each eligible recipient organization and the amount each eligible recipient organization received.
(III)The prize total.
(IV)The winning ticket number and whether the prize was claimed.
(ii)The total number of raffles conducted for the season or year.
(iii)The gross receipts generated from the sale of raffle tickets for the season or year.
(iv)The average per raffle gross receipts generated from the sale of raffle tickets for the season or year.
(v)The prize total for the season or year, including any prize that was not claimed.
(vi)The average per raffle prize total for the season or year, including any prize that was not claimed.
(vii)The prize total that was not claimed, if any, during the season or year. For each raffle in which the prize was not claimed, the name of the eligible recipient organization who received the prize.
(viii)A schedule of all vendors used to operate the raffles and total payments made to each vendor.
(ix)An itemization of the direct costs of conducting the raffles, including labor, raffle equipment, software, marketing, and consulting costs.
(B)Failure to timely submit the seasonal or annual report to the department, or the filing of an incomplete financial report as required in this paragraph, shall be grounds for denial of an annual registration and for the imposition of penalties under Section 12591.1 of the Government Code if the filer does not resubmit a complete form within 30 days of receiving a notice of incomplete filing or failure to timely submit from the department. Code.
(C)Failure to submit a complete financial report shall be grounds for the denial of an annual registration and for the imposition of penalties under Section 12591.1 of the Government Code if the filer does not resubmit a complete form within 30 days of receiving a notice of incomplete filing.
(C)
(D)(i)An eligible organization shall file with the department and post on either its Internet Web site or the affiliated sport teams Internet Web site the report required by this paragraph no later than 60 days after the end of the league season or year.
(ii)The department shall post the reports required by this paragraph on its Internet Web site, but shall not post the report on the online search portal of the Attorney Generals Registry of Charitable Trusts maintained pursuant to Section 12584 of the Government Code.
(14)The department shall annually furnish to registrants a form to collect this information.
(p)The department may take legal action against a registrant if it determines that the registrant has violated this section or a regulation adopted pursuant to this section, or that the registrant has engaged in any conduct that is not in the best interests of the publics health, safety, or general welfare. An action taken pursuant to this subdivision does not prohibit the commencement of an administrative or criminal action by the Attorney General, a district attorney, city attorney, or county counsel.
(q)An action and hearing conducted to deny, revoke, or suspend a registry, or other administrative action taken against a registrant, shall be conducted pursuant to the Administrative Procedure Act (Chapters 4.5 (commencing with Section 11400) and 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code). The department may seek civil remedies, including imposing fines, for violations of this section, and may seek recovery of the costs incurred in investigating or prosecuting an action against a registrant or applicant in accordance with those procedures specified in Section 125.3 of the Business and Professions Code. A proceeding conducted under this subdivision is subject to judicial review pursuant to Section 1094.5 of the Code of Civil Procedure. A violation of this section shall not constitute a crime.
(r)This section shall remain in effect only until January 1, 2024, and as of that date is repealed, unless a later enacted statute that is enacted before January 1, 2024, deletes or extends that date.
SEC. 2.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:
To enable private, nonprofit organizations to benefit from coordinated, uninterrupted provisions authorizing raffles as a funding mechanism to support beneficial and charitable works as soon as possible, it is necessary that this act take effect immediately.
(a)Notwithstanding Section 320.5, this section applies to an eligible organization, as defined in subdivision (c).
(b)A raffle that is conducted by an eligible organization, as defined in subdivision (c), for the purpose of directly supporting beneficial or charitable purposes or financially supporting another private, nonprofit eligible organization, as defined in subdivision (c) of Section 320.5, that performs beneficial or charitable purposes may be conducted in accordance with this section.
(c)For purposes of this section, eligible organization means a private, nonprofit organization established by, or affiliated with, a team from the Major League Baseball, National Hockey League, National Basketball Association, National Football League, Womens National Basketball Association, or Major League Soccer, or a private, nonprofit organization established by the Professional Golfers Association of America, Ladies Professional Golf Association, or National Association for Stock Car Auto Racing that has been qualified to conduct business in California for at least one year before conducting a raffle, is qualified for an exemption under Section 501(c)(3) of the Internal Revenue Code, and is exempt from taxation pursuant to Section 23701a, 23701b, 23701d, 23701e, 23701f, 23701g, 23701k, 23701l, 23701t, or 23701w of the Revenue and Taxation Code.
(d)For purposes of this section, raffle means a scheme for the distribution of prizes by chance among persons who have paid money for paper tickets that provide the opportunity to win these prizes, in which all of the following are true:
(1)Each ticket sold contains a unique and matching identifier.
(2)(A)Winners of the prizes are determined by a manual draw from tickets described in paragraph (1) that have been sold for entry in the manual draw.
(B)An electronic device may be used to sell tickets. The ticket receipt issued by the electronic device to the purchaser may include more than one unique and matching identifier, representative of and matched to the number of tickets purchased in a single transaction.
(C)A random number generator is not used for the manual draw or to sell tickets.
(D)The prize paid to the winner is comprised of one-half or 50 percent of the gross receipts generated from the sale of raffle tickets for a raffle.
(3)The manual draw is conducted in California under the supervision of a natural person who meets all of the following requirements:
(A)The person is 18 years of age or older.
(B)The person is affiliated with the eligible organization conducting the raffle.
(C)The person is registered with the Department of Justice pursuant to paragraph (4) of subdivision (o).
(4)(A)Fifty percent of the gross receipts generated from the sale of raffle tickets for any given manual draw are used by the eligible organization conducting the raffle to benefit or provide support for beneficial or solely for charitable purposes, or used to benefit another private, nonprofit organization, provided that an organization receiving these funds is itself an eligible organization as defined in subdivision (c) of Section 320.5. As used in this section, beneficial charitable purposes excludes purposes that are intended to benefit officers, directors, or members, as defined by Section 5056 of the Corporations Code, of the eligible organization. Funds raised by raffles conducted pursuant to this section shall not be used to fund any beneficial, charitable, or other purpose outside of California. This section does not preclude an eligible organization from using funds from sources other than the sale of raffle tickets to pay for the administration or other costs of conducting a raffle. raffle if these expenses comply with legal standard of care requirements described in Sections 5231, 7231, and 9241 of the Corporations Code.
(B)An employee of an eligible organization who is a direct seller of raffle tickets shall not be treated as an employee for purposes of workers compensation under Section 3351 of the Labor Code if both of the following conditions are satisfied:
(i)Substantially all of the remuneration, whether or not paid in cash, for the performance of the service of selling raffle tickets is directly related to sales rather than to the number of hours worked.
(ii)The services performed by the person are performed pursuant to a written contract between the seller and the eligible organization and the contract provides that the person will not be treated as an employee with respect to the selling of raffle tickets for workers compensation purposes.
(C)For purposes of this section, an employee selling raffle tickets shall be deemed to be a direct seller, as described in Section 650 of the Unemployment Insurance Code, as long as he or she meets the requirements of that section.
(e)A person who receives compensation in connection with the operation of the raffle shall be an employee of the eligible organization that is conducting the raffle, and in no event may compensation be paid from revenues required to be dedicated to beneficial or charitable purposes.
(f)A raffle ticket shall not be sold in exchange for Bitcoin or any other cryptocurrency.
(g)A raffle that is otherwise permitted under this section shall not be conducted by means of, or otherwise utilize, any gaming machine that meets the definition of slot machine contained in Section 330a, 330b, or 330.1.
(h)(1)A raffle otherwise permitted under this section shall not be conducted, nor may tickets for a raffle be sold, within an operating satellite wagering facility or racetrack inclosure licensed pursuant to the Horse Racing Law (Chapter 4 (commencing with Section 19400) of Division 8 of the Business and Professions Code) or within a gambling establishment licensed pursuant to the Gambling Control Act (Chapter 5 (commencing with Section 19800) of Division 8 of the Business and Professions Code).
(2)A raffle shall not be operated or conducted in any manner over the Internet, nor may raffle tickets be sold, traded, or redeemed over the Internet. For purposes of this paragraph, an eligible organization shall not be deemed to operate or conduct a raffle over the Internet, or sell raffle tickets over the Internet, if the eligible organization advertises its raffle on the Internet or permits others to do so. Information that may be conveyed on an Internet Web site pursuant to this paragraph includes, but is not limited to, all of the following:
(A)Lists, descriptions, photographs, or videos of the raffle prizes.
(B)Lists of the prize winners.
(C)The rules of the raffle.
(D)Frequently asked questions and their answers.
(E)Raffle entry forms, which may be downloaded from the Internet Web site for manual completion by raffle ticket purchasers, but shall not be submitted to the eligible organization through the Internet.
(F)Raffle contact information, including the eligible organizations name, address, telephone number, facsimile number, or email address.
(i)An individual, corporation, partnership, or other legal entity shall not hold a financial interest in the conduct of a raffle, except the eligible organization that is itself authorized to conduct that raffle, and any private, nonprofit, eligible organizations receiving financial support from that charitable organization pursuant to subdivisions (b) and (d).
(j)(1)An eligible organization may conduct a major league sports raffle only at a home game.
(2)An eligible organization shall not conduct more than one major league sports raffle per home game.
(k)An employee shall not sell raffle tickets in any seating area designated as a family section.
(l)An eligible organization shall disclose to all ticket purchasers the designated private, nonprofit, eligible organization for which the raffle is being conducted.
(m)An eligible organization that conducts a raffle to financially support another private, nonprofit eligible organization, as defined in subdivision (c) of Section 320.5, shall distribute all proceeds not paid out to the winners of the prizes to the private, nonprofit organization within 15 days of conducting the raffle, in accordance with this section.
(n)Any raffle prize remaining unclaimed by a winner at the end of the season for a team with an affiliated eligible organization that conducted a raffle to financially support another private, nonprofit eligible organization, as defined in subdivision (c) of Section 320.5, shall be donated within 30 days from the end of the season by the eligible organization to the designated private, nonprofit organization for which the raffle was conducted.
(o)(1)(A)An eligible organization shall not conduct a raffle authorized under this section, unless it has a valid registration issued by the Department of Justice. The department shall furnish a registration form via the Internet or upon request to eligible nonprofit organizations. The department shall, by regulation, collect only the information necessary to carry out the provisions of this section on this form. This information shall include, but is not limited to, all of the following:
(i)The name and address of the eligible organization.
(ii)The federal tax identification number, the corporate number issued by the Secretary of State, the organization number issued by the Franchise Tax Board, or the California charitable trust identification number of the eligible organization.
(iii)The name and title of a responsible fiduciary of the organization.
(B)(i)The department may require an eligible organization to pay a minimum annual registration fee of five ten thousand dollars ($5,000) ($10,000) to cover the reasonable costs of the department to administer and enforce this section.
(ii)An eligible organization shall pay, in addition to the annual registration application fee, one two hundred dollars ($100) ($200) for every individual raffle conducted at an eligible location to cover the reasonable costs of the department to administer and enforce this section. This fee shall be submitted in conjunction with the annual registration form.
(2)(A)A manufacturer or distributor of raffle-related products or services shall not conduct business with an eligible organization for purposes of conducting a raffle pursuant to this section unless the manufacturer or distributor has a valid annual registration issued by the department.
(B)The department may require a manufacturer or distributor of raffle-related products or services to pay a minimum annual registration fee of five ten thousand dollars ($5,000) ($10,000) to cover the reasonable costs of the department to administer and enforce this section.
(3)An eligible organization shall register the equipment used in the sale and distribution of raffle tickets, and shall have the equipment tested by an independent gaming testing lab.
(4)(A)A person affiliated with an eligible organization who conducts the manual draw shall annually register with the department.
(B)The department may require a person affiliated with an eligible organization who conducts the manual draw to pay a minimum annual registration fee of ten twenty dollars ($10) ($20) to cover the reasonable costs of the department to administer and enforce this section.
(5)(A)The department may, by regulation, adjust the annual registration fees described in this section as needed to ensure that revenues will fully offset, but not exceed, the reasonable costs incurred by the department pursuant to this section. The fees shall be deposited by the department into the Major League Sporting Event Raffle Fund, which is hereby created in the State Treasury.
(B)A loan is hereby authorized from the General Fund to the Major League Sporting Event Raffle Fund on or after July 1, 2016, in an amount of up to one million five thousand dollars ($1,005,000) to address department workload related to the initial implementation activities relating to this section by the departments Indian and Gaming Law Section. The terms and conditions of the loan shall first be approved by the Department of Finance pursuant to appropriate fiscal standards. The loan shall be subject to all of the following conditions:
(i)Of the total amount loaned, no more than three hundred thirty-five thousand dollars ($335,000) shall be provided annually to the department.
(ii)The loan shall be repaid to the General Fund as soon as there is sufficient money in the Major League Sporting Event Raffle Fund to repay the loan, but no later than December 31, 2018. 2023.
(iii)Interest on the loan shall be paid from the Major League Sporting Event Raffle Fund at the rate accruing to moneys in the Pooled Money Investment Account.
(6)The department shall receive moneys for the costs incurred pursuant to this section subject to an appropriation by the Legislature.
(7)The department shall adopt, on or before June 1, 2016, regulations necessary to effectuate this section, including emergency regulations, pursuant to the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).
(8)The department shall maintain an automated database of all registrants.
(9)A local law enforcement agency shall notify the department of any arrests or investigation that may result in an administrative or criminal action against a registrant.
(10)The department may may, to the extent the Legislature appropriates funds for this purpose, investigate all suspected violations of this section or any regulation adopted pursuant to this section, or any activity that the registrant has engaged in that is not in the best interests of the publics health, safety, or general welfare as it pertains to charitable raffles.
(11)(A)The department may may, to the extent the Legislature appropriates funds for this purpose, audit the records and other documents of a registrant to ensure compliance with this section, and may charge a registrant the direct costs associated with an audit conducted pursuant to this paragraph. section.
(B)The department is entitled to reimbursement from the registrant for all actual, reasonable, and direct costs incurred in auditing, reviewing, and evaluating the raffle reports being audited. The registrant shall promptly pay the department, upon request, for all of those costs.
(C)The department shall not require a registrant to reimburse the costs described in subparagraph (B) if the fees to cover the reasonable costs of the department to administer and enforce this section are sufficient to fund an auditor.
(12)Once registered, an eligible organization shall post all of the following information on either its Internet Web site or the affiliated sport teams Internet Web site for each raffle:
(A)The gross receipts generated from the sale of raffle tickets.
(B)Each eligible recipient organization and the amount each eligible recipient organization received.
(C)The prize total.
(D)The winning ticket number and whether the prize was claimed.
(13)(A)Once registered, an eligible organization shall file with the department, each season or year thereafter, a report that includes all of the following information:
(i)For each raffle, all of the following information:
(I)The gross receipts generated from the sale of raffle tickets.
(II)Each eligible recipient organization and the amount each eligible recipient organization received.
(III)The prize total.
(IV)The winning ticket number and whether the prize was claimed.
(ii)The total number of raffles conducted for the season or year.
(iii)The gross receipts generated from the sale of raffle tickets for the season or year.
(iv)The average per raffle gross receipts generated from the sale of raffle tickets for the season or year.
(v)The prize total for the season or year, including any prize that was not claimed.
(vi)The average per raffle prize total for the season or year, including any prize that was not claimed.
(vii)The prize total that was not claimed, if any, during the season or year. For each raffle in which the prize was not claimed, the name of the eligible recipient organization who received the prize.
(B)Failure to timely submit the seasonal or annual report to the department, department, or the filing of an incomplete financial report as required in this paragraph, shall be grounds for denial of an annual registration. registration and for the imposition of penalties under Section 12591.1 of the Government Code if the filer does not resubmit a complete form within 30 days of receiving a notice of incomplete filing or failure to timely submit from the department.
(C)(i)An eligible organization shall file with the department and post on either its Internet Web site or the affiliated sport teams Internet Web site the report required by this paragraph no later than 60 days after the end of the league season or year.
(ii)The department shall post the reports required by this paragraph on its Internet Web site, but shall not post the report on the online search portal of the Attorney Generals Registry of Charitable Trusts maintained pursuant to Section 12584 of the Government Code.
(14)The department shall annually furnish to registrants a form to collect this information.
(p)The department may take legal action against a registrant if it determines that the registrant has violated this section or a regulation adopted pursuant to this section, or that the registrant has engaged in any conduct that is not in the best interests of the publics health, safety, or general welfare. An action taken pursuant to this subdivision does not prohibit the commencement of an administrative or criminal action by the Attorney General, a district attorney, city attorney, or county counsel.
(q)An action and hearing conducted to deny, revoke, or suspend a registry, or other administrative action taken against a registrant, shall be conducted pursuant to the Administrative Procedure Act (Chapters 4.5 (commencing with Section 11400) and 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code). The department may seek civil remedies, including imposing fines, for violations of this section, and may seek recovery of the costs incurred in investigating or prosecuting an action against a registrant or applicant in accordance with those procedures specified in Section 125.3 of the Business and Professions Code. A proceeding conducted under this subdivision is subject to judicial review pursuant to Section 1094.5 of the Code of Civil Procedure. A violation of this section shall not constitute a crime.
(r)This section shall remain in effect only until January 1, 2024, and as of that date is repealed, unless a later enacted statute that is enacted before January 1, 2024, deletes or extends that date.
(a)Notwithstanding Section 320.5, this section applies to an eligible organization, as defined in subdivision (c).
(b)A raffle that is conducted by an eligible organization, as defined in subdivision (c), for the purpose of directly supporting beneficial or charitable purposes or financially supporting another private, nonprofit eligible organization, as defined in subdivision (c) of Section 320.5, that performs beneficial or charitable purposes may be conducted in accordance with this section.
(c)For purposes of this section, eligible organization means a private, nonprofit organization established by, or affiliated with, a team from the Major League Baseball, National Hockey League, National Basketball Association, National Football League, Womens National Basketball Association, or Major League Soccer, or a private, nonprofit organization established by the Professional Golfers Association of America, Ladies Professional Golf Association, or National Association for Stock Car Auto Racing that has been qualified to conduct business in California for at least one year before conducting a raffle, is qualified for an exemption under Section 501(c)(3) of the Internal Revenue Code, and is exempt from taxation pursuant to Section 23701a, 23701b, 23701d, 23701e, 23701f, 23701g, 23701k, 23701l, 23701t, or 23701w of the Revenue and Taxation Code.
(d)For purposes of this section, raffle means a scheme for the distribution of prizes by chance among persons who have paid money for paper tickets that provide the opportunity to win these prizes, in which all of the following are true:
(1)Each ticket sold contains a unique and matching identifier.
(2)(A)Winners of the prizes are determined by a manual draw from tickets described in paragraph (1) that have been sold for entry in the manual draw.
(B)An electronic device may be used to sell tickets. The ticket receipt issued by the electronic device to the purchaser may include more than one unique and matching identifier, representative of and matched to the number of tickets purchased in a single transaction.
(C)A random number generator is not used for the manual draw or to sell tickets.
(D)The prize paid to the winner is comprised of one-half or 50 percent of the gross receipts generated from the sale of raffle tickets for a raffle.
(3)The manual draw is conducted in California under the supervision of a natural person who meets all of the following requirements:
(A)The person is 18 years of age or older.
(B)The person is affiliated with the eligible organization conducting the raffle.
(C)The person is registered with the Department of Justice pursuant to paragraph (4) of subdivision (o).
(4)(A)Fifty percent of the gross receipts generated from the sale of raffle tickets for any given manual draw are used by the eligible organization conducting the raffle to benefit or provide support for beneficial or charitable purposes, or used to benefit another private, nonprofit organization, provided that an organization receiving these funds is itself an eligible organization as defined in subdivision (c) of Section 320.5. As used in this section, beneficial purposes excludes purposes that are intended to benefit officers, directors, or members, as defined by Section 5056 of the Corporations Code, of the eligible organization. Funds raised by raffles conducted pursuant to this section shall not be used to fund any beneficial, charitable, or other purpose outside of California. This section does not preclude an eligible organization from using funds from sources other than the sale of raffle tickets to pay for the administration or other costs of conducting a raffle.
(B)An employee of an eligible organization who is a direct seller of raffle tickets shall not be treated as an employee for purposes of workers compensation under Section 3351 of the Labor Code if both of the following conditions are satisfied:
(i)Substantially all of the remuneration, whether or not paid in cash, for the performance of the service of selling raffle tickets is directly related to sales rather than to the number of hours worked.
(ii)The services performed by the person are performed pursuant to a written contract between the seller and the eligible organization and the contract provides that the person will not be treated as an employee with respect to the selling of raffle tickets for workers compensation purposes.
(C)For purposes of this section, an employee selling raffle tickets shall be deemed to be a direct seller, as described in Section 650 of the Unemployment Insurance Code, as long as he or she meets the requirements of that section.
(e)A person who receives compensation in connection with the operation of the raffle shall be an employee of the eligible organization that is conducting the raffle, and in no event may compensation be paid from revenues required to be dedicated to beneficial or charitable purposes.
(f)A raffle ticket shall not be sold in exchange for Bitcoin or any other cryptocurrency.
(g)A raffle that is otherwise permitted under this section shall not be conducted by means of, or otherwise utilize, any gaming machine that meets the definition of slot machine contained in Section 330a, 330b, or 330.1.
(h)(1)A raffle otherwise permitted under this section shall not be conducted, nor may tickets for a raffle be sold, within an operating satellite wagering facility or racetrack inclosure licensed pursuant to the Horse Racing Law (Chapter 4 (commencing with Section 19400) of Division 8 of the Business and Professions Code) or within a gambling establishment licensed pursuant to the Gambling Control Act (Chapter 5 (commencing with Section 19800) of Division 8 of the Business and Professions Code).
(2)A raffle shall not be operated or conducted in any manner over the Internet, nor may raffle tickets be sold, traded, or redeemed over the Internet. For purposes of this paragraph, an eligible organization shall not be deemed to operate or conduct a raffle over the Internet, or sell raffle tickets over the Internet, if the eligible organization advertises its raffle on the Internet or permits others to do so. Information that may be conveyed on an Internet Web site pursuant to this paragraph includes, but is not limited to, all of the following:
(A)Lists, descriptions, photographs, or videos of the raffle prizes.
(B)Lists of the prize winners.
(C)The rules of the raffle.
(D)Frequently asked questions and their answers.
(E)Raffle entry forms, which may be downloaded from the Internet Web site for manual completion by raffle ticket purchasers, but shall not be submitted to the eligible organization through the Internet.
(F)Raffle contact information, including the eligible organizations name, address, telephone number, facsimile number, or email address.
(i)An individual, corporation, partnership, or other legal entity shall not hold a financial interest in the conduct of a raffle, except the eligible organization that is itself authorized to conduct that raffle, and any private, nonprofit, eligible organizations receiving financial support from that charitable organization pursuant to subdivisions (b) and (d).
(j)(1)An eligible organization may conduct a major league sports raffle only at a home game.
(2)An eligible organization shall not conduct more than one major league sports raffle per home game.
(k)An employee shall not sell raffle tickets in any seating area designated as a family section.
(l)An eligible organization shall disclose to all ticket purchasers the designated private, nonprofit, eligible organization for which the raffle is being conducted.
(m)An eligible organization that conducts a raffle to financially support another private, nonprofit eligible organization, as defined in subdivision (c) of Section 320.5, shall distribute all proceeds not paid out to the winners of the prizes to the private, nonprofit organization within 15 days of conducting the raffle, in accordance with this section.
(n)Any raffle prize remaining unclaimed by a winner at the end of the season for a team with an affiliated eligible organization that conducted a raffle to financially support another private, nonprofit eligible organization, as defined in subdivision (c) of Section 320.5, shall be donated within 30 days from the end of the season by the eligible organization to the designated private, nonprofit organization for which the raffle was conducted.
(o)(1)(A)An eligible organization shall not conduct a raffle authorized under this section, unless it has a valid registration issued by the Department of Justice. The department shall furnish a registration form via the Internet or upon request to eligible nonprofit organizations. The department shall, by regulation, collect only the information necessary to carry out the provisions of this section on this form. This information shall include, but is not limited to, all of the following:
(i)The name and address of the eligible organization.
(ii)The federal tax identification number, the corporate number issued by the Secretary of State, the organization number issued by the Franchise Tax Board, or the California charitable trust identification number of the eligible organization.
(iii)The name and title of a responsible fiduciary of the organization.
(B)(i)The department may require an eligible organization to pay a minimum annual registration fee of five thousand dollars ($5,000) to cover the reasonable costs of the department to administer and enforce this section.
(ii)An eligible organization shall pay, in addition to the annual registration application fee, one hundred dollars ($100) for every individual raffle conducted at an eligible location to cover the reasonable costs of the department to administer and enforce this section. This fee shall be submitted in conjunction with the annual registration form.
(2)(A)A manufacturer or distributor of raffle-related products or services shall not conduct business with an eligible organization for purposes of conducting a raffle pursuant to this section unless the manufacturer or distributor has a valid annual registration issued by the department.
(B)The department may require a manufacturer or distributor of raffle-related products or services to pay a minimum annual registration fee of five thousand dollars ($5,000) to cover the reasonable costs of the department to administer and enforce this section.
(3)An eligible organization shall register the equipment used in the sale and distribution of raffle tickets, and shall have the equipment tested by an independent gaming testing lab.
(4)(A)A person affiliated with an eligible organization who conducts the manual draw shall annually register with the department.
(B)The department may require a person affiliated with an eligible organization who conducts the manual draw to pay a minimum annual registration fee of ten dollars ($10) to cover the reasonable costs of the department to administer and enforce this section.
(5)(A)The department may, by regulation, adjust the annual registration fees described in this section as needed to ensure that revenues will fully offset, but not exceed, the reasonable costs incurred by the department pursuant to this section. The fees shall be deposited by the department into the Major League Sporting Event Raffle Fund, which is hereby created in the State Treasury.
(B)A loan is hereby authorized from the General Fund to the Major League Sporting Event Raffle Fund on or after July 1, 2016, in an amount of up to one million five thousand dollars ($1,005,000) to address department workload related to the initial implementation activities relating to this section by the departments Indian and Gaming Law Section. The terms and conditions of the loan shall first be approved by the Department of Finance pursuant to appropriate fiscal standards. The loan shall be subject to all of the following conditions:
(i)Of the total amount loaned, no more than three hundred thirty-five thousand dollars ($335,000) shall be provided annually to the department.
(ii)The loan shall be repaid to the General Fund as soon as there is sufficient money in the Major League Sporting Event Raffle Fund to repay the loan, but no later than December 31, 2018.
(iii)Interest on the loan shall be paid from the Major League Sporting Event Raffle Fund at the rate accruing to moneys in the Pooled Money Investment Account.
(6)The department shall receive moneys for the costs incurred pursuant to this section subject to an appropriation by the Legislature.
(7)The department shall adopt, on or before June 1, 2016, regulations necessary to effectuate this section, including emergency regulations, pursuant to the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).
(8)The department shall maintain an automated database of all registrants.
(9)A local law enforcement agency shall notify the department of any arrests or investigation that may result in an administrative or criminal action against a registrant.
(10)The department may investigate all suspected violations of this section or any regulation adopted pursuant to this section, or any activity that the registrant has engaged in that is not in the best interests of the publics health, safety, or general welfare as it pertains to charitable raffles.
(11)The department may audit the records and other documents of a registrant to ensure compliance with this section, and may charge a registrant the direct costs associated with an audit conducted pursuant to this paragraph.
(12)(A)Once registered, an eligible organization shall file annually thereafter with the department a report that includes all of the following information for each of the eligible organizations last three fiscal years:(i)The aggregate gross receipts from the operation of raffles.(ii)The aggregate direct costs incurred by the eligible organization from the operation of raffles.(iii)The charitable or beneficial purposes for which proceeds of the raffles were used.(iv)The aggregate distributions of proceeds from the operation of raffles made to directly support beneficial or charitable purposes, other than beneficial or charitable purposes undertaken by the eligible organization, or eligible recipient organizations, under subdivision (c) of Section 320.5.(v)The aggregate distributions of proceeds from the operation of raffles made to raffle winners.(vi)The aggregate distributions of proceeds from the operation of raffles made to any other organizations, or for any other purposes, other than those included in clauses (ii), (iv), and (v).(vii)A schedule of distributions of proceeds from the operation of raffles, by individual raffle, made to eligible recipient organizations under subdivision (c) of Section 320.5 that are not affiliated with the eligible organization.(viii)A schedule of distributions of proceeds from the operation of raffles, by individual raffle, made to eligible recipient organizations under subdivision (c) of Section 320.5 that are affiliated with the eligible organization.(ix)A schedule of distributions of proceeds from the operation of raffles, by individual raffle, made to any other organization not included under clause (vii) or (viii), or for beneficial or charitable purposes undertaken by the eligible organization.(x)The aggregate gross receipts from activities other than the operation of raffles.(xi)The aggregate costs incurred by the eligible organization from activities other than the operation of raffles.(xii)The aggregate distributions of funds other than proceeds from the operation of raffles made to directly support beneficial or charitable purposes or eligible recipient organizations under subdivision (c) of Section 320.5.(xiii)The aggregate distributions of funds other than proceeds from the operation of raffles for purposes other than those listed in clauses (xi) and (xii).(xiv)A schedule of distributions of funds other than proceeds from the operation of raffles made to eligible recipient organizations under subdivision (c) of Section 320.5 that are not affiliated with the eligible organization.(xv)A schedule of distributions of funds other than proceeds from the operation of raffles made to any other organization not included under clause (xiv), or for beneficial or charitable purposes undertaken by the eligible organization.(12)Once registered, an eligible organization shall post all of the following information on either its Internet Web site or the affiliated sport teams Internet Web site for each raffle:
(A)The gross receipts generated from the sale of raffle tickets.
(B)Each eligible recipient organization and the amount each eligible recipient organization received.
(C)The prize total.
(D)The winning ticket number and whether the prize was claimed.
(13)(A)Once registered, an eligible organization shall file with the department, each season or year thereafter, a report that includes all of the following information:
(i)For each raffle, all of the following information:
(I)The gross receipts generated from the sale of raffle tickets.
(II)Each eligible recipient organization and the amount each eligible recipient organization received.
(III)The prize total.
(IV)The winning ticket number and whether the prize was claimed.
(ii)The total number of raffles conducted for the season or year.
(iii)The gross receipts generated from the sale of raffle tickets for the season or year.
(iv)The average per raffle gross receipts generated from the sale of raffle tickets for the season or year.
(v)The prize total for the season or year, including any prize that was not claimed.
(vi)The average per raffle prize total for the season or year, including any prize that was not claimed.
(vii)The prize total that was not claimed, if any, during the season or year. For each raffle in which the prize was not claimed, the name of the eligible recipient organization who received the prize.
(B)Failure to submit the seasonal or annual report to the department department, as required in this paragraph paragraph, shall be grounds for denial of an annual registration.
(C)(i)An eligible organization shall file with the department and post on either its Internet Web site or the affiliated sport teams Internet Web site the report required by this paragraph no later than 60 days after the end of the league season or year.
(C)(ii)The department shall make post the reports required by this paragraph available to the public via on its Internet Web site, but shall not post the report on the online search portal of the Attorney Generals Registry of Charitable Trusts maintained pursuant to Section 12584 of the Government Code.
(13)(14)The department shall annually furnish to registrants a form to collect this information.
(p)The department may take legal action against a registrant if it determines that the registrant has violated this section or a regulation adopted pursuant to this section, or that the registrant has engaged in any conduct that is not in the best interests of the publics health, safety, or general welfare. An action taken pursuant to this subdivision does not prohibit the commencement of an administrative or criminal action by the Attorney General, a district attorney, city attorney, or county counsel.
(q)An action and hearing conducted to deny, revoke, or suspend a registry, or other administrative action taken against a registrant, shall be conducted pursuant to the Administrative Procedure Act (Chapters 4.5 (commencing with Section 11400) and 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code). The department may seek civil remedies, including imposing fines, for violations of this section, and may seek recovery of the costs incurred in investigating or prosecuting an action against a registrant or applicant in accordance with those procedures specified in Section 125.3 of the Business and Professions Code. A proceeding conducted under this subdivision is subject to judicial review pursuant to Section 1094.5 of the Code of Civil Procedure. A violation of this section shall not constitute a crime.
(a)Notwithstanding Section 320.5, this section shall apply applies to an eligible organization, as defined in subdivision (c).
(b)A raffle that is conducted by an eligible organization, as defined in subdivision (c), for the purpose of directly supporting beneficial or charitable purposes or financially supporting another private, nonprofit eligible organization, as defined in subdivision (c) of Section 320.5, that performs beneficial or charitable purposes may be conducted in accordance with this section.
(c)For purposes of this section, eligible organization means a private, nonprofit organization established by, or affiliated with, a team from the Major League Baseball, National Hockey League, National Basketball Association, National Football League, Womens National Basketball Association, or Major League Soccer, or a private, nonprofit organization established by the Professional Golfers Association of America, Ladies Professional Golf Association, or National Association for Stock Car Auto Racing that has been qualified to conduct business in California for at least one year before conducting a raffle, is qualified for an exemption under Section 501(c)(3) of the Internal Revenue Code, and is exempt from taxation pursuant to Section 23701a, 23701b, 23701d, 23701e, 23701f, 23701g, 23701k, 23701l, 23701t, or 23701w of the Revenue and Taxation Code.
(d)For purposes of this section, raffle means a scheme for the distribution of prizes by chance among persons who have paid money for paper tickets that provide the opportunity to win these prizes, in which all of the following are true:
(1)Each ticket sold contains a unique and matching identifier.
(2)(A)Winners of the prizes are determined by a manual draw from tickets described in paragraph (1) that have been sold for entry in the manual draw.
(B)An electronic device may be used to sell tickets. The ticket receipt issued by the electronic device to the purchaser may include more than one unique and matching identifier, representative of and matched to the number of tickets purchased in a single transaction.
(C)A random number generator is not used for the manual draw or to sell tickets.
(D)The prize paid to the winner is comprised of one-half or 50 percent of the gross receipts generated from the sale of raffle tickets for a raffle.
(3)The manual draw is conducted in California under the supervision of a natural person who meets all of the following requirements:
(A)The person is 18 years of age or older.
(B)The person is affiliated with the eligible organization conducting the raffle.
(C)The person is registered with the Department of Justice pursuant to paragraph (4) of subdivision (o).
(4)(A)Fifty percent of the gross receipts generated from the sale of raffle tickets for any given manual draw are used by the eligible organization conducting the raffle to benefit or provide support for beneficial or charitable purposes, or used to benefit another private, nonprofit organization, provided that an organization receiving these funds is itself an eligible organization as defined in subdivision (c) of Section 320.5. As used in this section, beneficial purposes excludes purposes that are intended to benefit officers, directors, or members, as defined by Section 5056 of the Corporations Code, of the eligible organization. Funds raised by raffles conducted pursuant to this section shall not be used to fund any beneficial, charitable, or other purpose outside of California. This section does not preclude an eligible organization from using funds from sources other than the sale of raffle tickets to pay for the administration or other costs of conducting a raffle.
(B)An employee of an eligible organization who is a direct seller of raffle tickets shall not be treated as an employee for purposes of workers compensation under Section 3351 of the Labor Code if both of the following conditions are satisfied:
(i)Substantially all of the remuneration, whether or not paid in cash, for the performance of the service of selling raffle tickets is directly related to sales rather than to the number of hours worked.
(ii)The services performed by the person are performed pursuant to a written contract between the seller and the eligible organization and the contract provides that the person will not be treated as an employee with respect to the selling of raffle tickets for workers compensation purposes.
(C)For purposes of this section, an employee selling raffle tickets shall be deemed to be a direct seller seller, as described in Section 650 of the Unemployment Insurance Code Code, as long as he or she meets the requirements of that section.
(e)A person who receives compensation in connection with the operation of the raffle shall be an employee of the eligible organization that is conducting the raffle, and in no event may compensation be paid from revenues required to be dedicated to beneficial or charitable purposes.
(f)A raffle ticket shall not be sold in exchange for Bitcoin or any other cryptocurrency.
(g)A raffle that is otherwise permitted under this section shall not be conducted by means of, or otherwise utilize, any gaming machine that meets the definition of slot machine contained in Section 330a, 330b, or 330.1.
(h)(1)A raffle otherwise permitted under this section shall not be conducted, nor may tickets for a raffle be sold, within an operating satellite wagering facility or racetrack inclosure licensed pursuant to the Horse Racing Law (Chapter 4 (commencing with Section 19400) of Division 8 of the Business and Professions Code) or within a gambling establishment licensed pursuant to the Gambling Control Act (Chapter 5 (commencing with Section 19800) of Division 8 of the Business and Professions Code).
(2)A raffle shall not be operated or conducted in any manner over the Internet, nor may raffle tickets be sold, traded, or redeemed over the Internet. For purposes of this paragraph, an eligible organization shall not be deemed to operate or conduct a raffle over the Internet, or sell raffle tickets over the Internet, if the eligible organization advertises its raffle on the Internet or permits others to do so. Information that may be conveyed on an Internet Web site pursuant to this paragraph includes, but is not limited to, all of the following:
(A)Lists, descriptions, photographs, or videos of the raffle prizes.
(B)Lists of the prize winners.
(C)The rules of the raffle.
(D)Frequently asked questions and their answers.
(E)Raffle entry forms, which may be downloaded from the Internet Web site for manual completion by raffle ticket purchasers, but shall not be submitted to the eligible organization through the Internet.
(F)Raffle contact information, including the eligible organizations name, address, telephone number, facsimile number, or email address.
(i)An individual, corporation, partnership, or other legal entity shall not hold a financial interest in the conduct of a raffle, except the eligible organization that is itself authorized to conduct that raffle, and any private, nonprofit, eligible organizations receiving financial support from that charitable organization pursuant to subdivisions (b) and (d).
(j)(1)An eligible organization may conduct a major league sports raffle only at a home game.
(2)An eligible organization shall not conduct more than one major league sports raffle per home game.
(k)An employee shall not sell raffle tickets in any seating area designated as a family section.
(l)An eligible organization shall disclose to all ticket purchasers the designated private, nonprofit, eligible organization for which the raffle is being conducted.
(m)An eligible organization that conducts a raffle to financially support another private, nonprofit eligible organization, as defined in subdivision (c) of Section 320.5, shall distribute all proceeds not paid out to the winners of the prizes to the private, nonprofit organization within 15 days of conducting the raffle, in accordance with this section.
(n)Any raffle prize remaining unclaimed by a winner at the end of the season for a team with an affiliated eligible organization that conducted a raffle to financially support another private, nonprofit eligible organization, as defined in subdivision (c) of Section 320.5, shall be donated within 30 days from the end of the season by the eligible organization to the designated private, nonprofit organization for which the raffle was conducted.
(o)(1)(A)An eligible organization shall not conduct a raffle authorized under this section, unless it has a valid registration issued by the Department of Justice. The department shall furnish a registration form via the Internet or upon request to eligible nonprofit organizations. The department shall, by regulation, collect only the information necessary to carry out the provisions of this section on this form. This information shall include, but is not limited to, all of the following:
(i)The name and address of the eligible organization.
(ii)The federal tax identification number, the corporate number issued by the Secretary of State, the organization number issued by the Franchise Tax Board, or the California charitable trust identification number of the eligible organization.
(iii)The name and title of a responsible fiduciary of the organization.
(B)(i)The department may require an eligible organization to pay a minimum annual registration fee of five thousand dollars ($5,000) to cover the reasonable costs of the department to administer and enforce this section.
(ii)An eligible organization shall pay, in addition to the annual registration application fee, one hundred dollars ($100) for every individual raffle conducted at an eligible location to cover the reasonable costs of the department to administer and enforce this section. This fee shall be submitted in conjunction with the annual registration form.
(2)(A)A manufacturer or distributor of raffle-related products or services shall not conduct business with an eligible organization for purposes of conducting a raffle pursuant to this section unless the manufacturer or distributor has a valid annual registration issued by the department.
(B)The department may require a manufacturer or distributor of raffle-related products or services to pay a minimum annual registration fee of five thousand dollars ($5,000) to cover the reasonable costs of the department to administer and enforce this section.
(3)An eligible organization shall register the equipment used in the sale and distribution of raffle tickets, and shall have the equipment tested by an independent gaming testing lab.
(4)(A)A person affiliated with an eligible organization who conducts the manual draw shall annually register with the department.
(B)The department may require a person affiliated with an eligible organization who conducts the manual draw to pay a minimum annual registration fee of ten dollars ($10) to cover the reasonable costs of the department to administer and enforce this section.
(5)(A)The department may, by regulation, adjust the annual registration fees described in this section as needed to ensure that revenues will fully offset, but not exceed, the reasonable costs incurred by the department pursuant to this section. The fees shall be deposited by the department into the Major League Sporting Event Raffle Fund, which is hereby created in the State Treasury.
(B)A loan is hereby authorized from the General Fund to the Major League Sporting Event Raffle Fund on or after July 1, 2016, in an amount of up to one million five thousand dollars ($1,005,000) to address department workload related to the initial implementation activities relating to this section by the departments Indian and Gaming Law Section. The terms and conditions of the loan shall first be approved by the Department of Finance pursuant to appropriate fiscal standards. The loan shall be subject to all of the following conditions:
(i)Of the total amount loaned, no more than three hundred thirty-five thousand dollars ($335,000) shall be provided annually to the department.
(ii)The loan shall be repaid to the General Fund as soon as there is sufficient money in the Major League Sporting Event Raffle Fund to repay the loan, but no later than December 31, 2018.
(iii)Interest on the loan shall be paid from the Major League Sporting Event Raffle Fund at the rate accruing to moneys in the Pooled Money Investment Account.
(6)The department shall receive moneys for the costs incurred pursuant to this section subject to an appropriation by the Legislature.
(7)The department shall adopt, on or before June 1, 2016, regulations necessary to effectuate this section, including emergency regulations, pursuant to the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).
(8)The department shall maintain an automated database of all registrants.
(9)A local law enforcement agency shall notify the department of any arrests or investigation that may result in an administrative or criminal action against a registrant.
(10)The department may investigate all suspected violations of this section or any regulation adopted pursuant to this section, or any activity that the registrant has engaged in that is not in the best interests of the publics health, safety, or general welfare as it pertains to charitable raffles.
(11)The department may audit the records and other documents of a registrant to ensure compliance with this section, and may charge a registrant the direct costs associated with an audit conducted pursuant to this paragraph.
(12)(A)Once registered, an eligible organization shall file annually thereafter with the department a report that includes all of the following information for each of the eligible organizations last three fiscal years:
(i)The aggregate gross receipts from the operation of raffles.
(ii)The aggregate direct costs incurred by the eligible organization from the operation of raffles.
(iii)The charitable or beneficial purposes for which proceeds of the raffles were used.
(iv)The aggregate distributions of proceeds from the operation of raffles made to directly support beneficial or charitable purposes, other than beneficial or charitable purposes undertaken by the eligible organization, or eligible recipient organizations, under subdivision (c) of Section 320.5.
(v)The aggregate distributions of proceeds from the operation of raffles made to raffle winners.
(vi)The aggregate distributions of proceeds from the operation of raffles made to any other organizations, or for any other purposes, other than those included in clauses (ii), (iv), and (v).
(vii)A schedule of distributions of proceeds from the operation of raffles, by individual raffle, made to eligible recipient organizations under subdivision (c) of Section 320.5 that are not affiliated with the eligible organization.
(viii)A schedule of distributions of proceeds from the operation of raffles, by individual raffle, made to eligible recipient organizations under subdivision (c) of Section 320.5 that are affiliated with the eligible organization.
(ix)A schedule of distributions of proceeds from the operation of raffles, by individual raffle, made to any other organization not included under clause (vii) or (viii), or for beneficial or charitable purposes undertaken by the eligible organization.
(x)The aggregate gross receipts from activities other than the operation of raffles.
(xi)The aggregate costs incurred by the eligible organization from activities other than the operation of raffles.
(xii)The aggregate distributions of funds other than proceeds from the operation of raffles made to directly support beneficial or charitable purposes or eligible recipient organizations under subdivision (c) of Section 320.5.
(xiii)The aggregate distributions of funds other than proceeds from the operation of raffles for purposes other than those listed in clauses (xi) and (xii).
(xiv)A schedule of distributions of funds other than proceeds from the operation of raffles made to eligible recipient organizations under subdivision (c) of Section 320.5 that are not affiliated with the eligible organization.
(xv)A schedule of distributions of funds other than proceeds from the operation of raffles made to any other organization not included under clause (xiv), or for beneficial or charitable purposes undertaken by the eligible organization.
(B)Failure to submit the annual report to the department as required in this paragraph shall be grounds for denial of an annual registration.
(C)The department shall make the reports required by this paragraph available to the public via the online search portal of the Attorney Generals Registry of Charitable Trusts maintained pursuant to Section 12584 of the Government Code.
(13)The department shall annually furnish to registrants a form to collect this information.
(p)The department may take legal action against a registrant if it determines that the registrant has violated this section or a regulation adopted pursuant to this section, or that the registrant has engaged in any conduct that is not in the best interests of the publics health, safety, or general welfare. An action taken pursuant to this subdivision does not prohibit the commencement of an administrative or criminal action by the Attorney General, a district attorney, city attorney, or county counsel.
(q)An action and hearing conducted to deny, revoke, or suspend a registry, or other administrative action taken against a registrant, shall be conducted pursuant to the Administrative Procedure Act (Chapters 4.5 (commencing with Section 11400) and 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code). The department may seek civil remedies, including imposing fines, for violations of this section, and may seek recovery of the costs incurred in investigating or prosecuting an action against a registrant or applicant in accordance with those procedures specified in Section 125.3 of the Business and Professions Code. A proceeding conducted under this subdivision is subject to judicial review pursuant to Section 1094.5 of the Code of Civil Procedure. A violation of this section shall not constitute a crime.
(r)This section shall remain in effect only until December 31, 2018, and as of that date is repealed, unless a later enacted statute, that is enacted before December 31, 2018, deletes or extends that date.SECTION 1.Section 2847.3 of the Business and Professions Code is amended to read:2847.3.(a)Commencing January 1, 2018, the executive officer position established pursuant to subdivision (a) of Section 2847.1 is temporarily abolished. Commencing January 1, 2018, the Governor shall appoint an executive officer who shall perform duties as are delegated by the board and who shall be responsible for the accomplishment of those duties. The executive officer shall exercise all powers, discharge all responsibilities, and administer and enforce all laws pursuant to this chapter and Chapter 10 (commencing with Section 4500) of Division 2 that are necessary to perform the duties delegated by the board.(b)The executive officer shall serve at the pleasure of the Governor and the Governor shall fix the salary of the executive officer. The executive officer shall not be a member of the board.(c)The executive officer shall be entitled to traveling and other necessary expenses in the performance of his or her duties.(d)This section shall become operative on January 1, 2018, and shall remain in effect only until January 1, 2020, and as of that date is repealed.SEC. 2.Section 2876 of the Business and Professions Code is amended to read:2876.(a)The board shall discipline the holder of any license, whose default has been entered or who has been heard by the board and found guilty, by any of the following methods:(1)Suspending judgment.(2)Placing him or her upon probation.(3)Suspending his or her right to practice vocational nursing for a period not exceeding one year.(4)Revoking his or her license.(5)Taking such other action in relation to disciplining him or her as the board in its discretion may deem proper.(b)The board shall delegate to its executive office the authority to adopt a decision entered by default and a stipulation for surrender of a license.(a)Commencing January 1, 2018, the executive officer position established pursuant to subdivision (d) (a) of Section 2847.1 is temporarily abolished. Commencing January 1, 2018, the Governor shall appoint an executive officer who shall perform duties as are delegated by the board and who shall be responsible for the accomplishment of those duties. The executive officer shall exercise all powers, discharge all responsibilities, and administer and enforce all laws pursuant to this chapter and Chapter 10 (commencing with Section 4500) of Division 2 that are necessary to perform the duties delegated by the board.
(b)The executive officer shall serve at the pleasure of the Governor and the Governor shall fix the salary of the executive officer. The executive officer shall not be a member of the board.
(c)The executive officer shall be entitled to traveling and other necessary expenses in the performance of his or her duties.
(d)This section shall become operative on January 1, 2018, and shall remain in effect only until January 1, 2020, and as of that date is repealed.
SEC. 2.Section 2876 of the Business and Professions Code is amended to read:2876.(a)The board shall discipline the holder of any license, whose default has been entered or who has been heard by the board and found guilty, by any of the following methods:
(a)(1)Suspending judgment.
(b)(2)Placing him or her upon probation.
(c)(3)Suspending his or her right to practice vocational nursing for a period not exceeding one year.
(d)(4)Revoking his or her license.
(e)(5)Taking such other action in relation to disciplining him or her as the board in its discretion may deem proper.
(b)The board shall delegate to its executive office the authority to adopt a decision entered by default and a stipulation for surrender of a license.
SECTION 1.Section 69433.91 is added to the Education Code, to read:69433.91.(a)Commencing in 2018, every private postsecondary educational institution that receives Cal Grant funding pursuant to this article shall annually report, on or before July 1 of each year, to the Legislative Analysts Office all of its student disciplinary actions, including, but not limited to, its rate of expulsion, for the previous academic year. This information shall be aggregated by the institutional policy violated and disaggregated, for each policy violated, by the type of disciplinary action taken, whether the disciplined students were Cal Grant recipients, whether the disciplinary action was taken in connection with students who fit one or more of the categories enumerated in Section 11135 of the Government Code, and whether the institution has ever applied for, or is in receipt of, an exemption from Title IX of the federal Education Amendments of 1972 (20 U.S.C. Sec. 1681, et seq.).(b)Commencing in 2019, the Legislative Analysts Office shall annually report, on or before January 1 of each year, to the appropriate policy committees of the Legislature the data submitted pursuant to subdivision (a) for the previous year, aggregated by faith-based private postsecondary educational institutions and nonfaith-based private postsecondary educational institutions, not including the names of these institutions.(c)A report submitted pursuant to this section shall be submitted in compliance with Section 9795 of the Government Code.(d)A report submitted pursuant to this section shall not include personally identifiable information about the disciplined students.(a)Commencing in 2018, every private postsecondary educational institution that receives Cal Grant funding pursuant to this article shall annually report, by on or before July 1 of each year, to the Legislature Legislative Analysts Office all of its student disciplinary actions, including, but not limited to, its rate of expulsion, for the previous academic year. This information shall be aggregated by the institutional policy violated and disaggregated, for each policy violated, by the type of disciplinary action taken, whether the disciplined students were Cal Grant recipients, whether the disciplinary action was taken in connection with students who fit one or more of the categories enumerated in Section 11135 of the Government Code, and whether the institution has ever applied for, or is in receipt of, an exemption from Title IX of the federal Education Amendments of 1972 (20 U.S.C. Sec. 1681, et seq.).
(b)Commencing in 2019, the Legislative Analysts Office shall annually report, on or before January 1 of each year, to the appropriate policy committees of the Legislature the data submitted pursuant to subdivision (a) for the previous year, aggregated by faith-based private postsecondary educational institutions and nonfaith-based private postsecondary educational institutions, not including the names of these institutions.
(b)(c)A report submitted pursuant to this section shall be submitted in compliance with Section 9795 of the Government Code.
(c)(d)A report submitted pursuant to this section shall not include personally identifiable information about the disciplined students.
(a)Commencing in 2018, every private postsecondary educational institution that receives Cal Grant funding pursuant to this article shall annually report, by July 1 of each year, to the Legislature its rate of expulsion for the previous academic year disaggregated by the gender and ethnicity of the expelled students and whether they were Cal Grant recipients. all of its student disciplinary actions, including, but not limited to, its rate of expulsion, for the previous academic year. This information shall be aggregated by the institutional policy violated and disaggregated, for each policy violated, by the type of disciplinary action taken, whether the disciplined students were Cal Grant recipients, whether the disciplinary action was taken in connection with students who fit one or more of the categories enumerated in Section 11135 of the Government Code, and whether the institution has ever applied for, or is in receipt of, an exemption from Title IX of the federal Education Amendments of 1972 (20 U.S.C. Sec. 1681, et seq.).
(b)A report submitted pursuant to this section shall be submitted in compliance with Section 9795 of the Government Code.
(c)A report submitted pursuant to this section shall not include personally identifiable information about the disciplined students.
(a)Commencing in 2018, every private postsecondary educational institution that receives Cal Grant funding pursuant to this article shall annually report, by July 1 of each year, to the Legislature its rate of expulsion for the previous academic year disaggregated by the gender and ethnicity of the expelled students and whether they were Cal Grant recipients.
(b)A report submitted pursuant to this section shall be submitted in compliance with Section 9795 of the Government Code.
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Date
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Status
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|---|---|
| Sep 20, 2018 | Chaptered by Secretary of State - Chapter 575, Statutes of 2018. |
| Sep 20, 2018 | Approved by the Governor. |
| Sep 11, 2018 | Enrolled and presented to the Governor at 4:30 p.m. |
| Aug 31, 2018 | In Assembly. Concurrence in Senate amendments pending. |
| Aug 31, 2018 | Read third time. Urgency clause adopted. Passed. Ordered to the Assembly. |
| Aug 27, 2018 | Read second time. Ordered to third reading. |
| Aug 24, 2018 | Read third time and amended. Ordered to second reading. |
| Aug 20, 2018 | Read second time. Ordered to third reading. |
| Aug 17, 2018 | From committee: Amend, and do pass as amended. (Ayes 7. Noes 0.) (August 16). |
| Aug 6, 2018 | In committee: Referred to APPR. suspense file. |
| Jul 2, 2018 | Read second time and amended. Re-referred to Com. on APPR. |
| Jun 28, 2018 | From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 13. Noes 0.) (June 26). |
| Jun 13, 2018 | Re-referred to Com. on G.O. |
| Jun 6, 2018 | Withdrawn from committee. |
| May 31, 2018 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B., P. & E.D. |
| Apr 19, 2018 | Referred to Com. on B., P. & E.D. |
| Jan 29, 2018 | In Senate. Read first time. To Com. on RLS. for assignment. |
| Jan 29, 2018 | Read third time. Passed. Ordered to the Senate. |
| Jan 22, 2018 | Read second time. Ordered to Consent Calendar. |
| Jan 18, 2018 | From committee: Do pass. To Consent Calendar. (Ayes 17. Noes 0.) (January 18). |
| Jan 11, 2018 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 15. Noes 0.) (January 9). Re-referred to Com. on APPR. |
| Jan 4, 2018 | From committee: Be re-referred to Com. on B. & P. Re-referred. (Ayes 9. Noes 0.) (January 4). Re-referred to Com. on B. & P. |
| Jan 3, 2018 | From committee chair, with author's amendments: Amend, and re-refer to Com. on HIGHER ED. Read second time and amended. |
| Apr 25, 2017 | In committee: Set, second hearing. Hearing canceled at the request of author. |
| Apr 18, 2017 | In committee: Set, first hearing. Hearing canceled at the request of author. |
| Apr 18, 2017 | Re-referred to Com. on HIGHER ED. |
| Apr 17, 2017 | From committee chair, with author's amendments: Amend, and re-refer to Com. on HIGHER ED. Read second time and amended. |
| Mar 15, 2017 | Re-referred to Com. on HIGHER ED. |
| Mar 14, 2017 | From committee chair, with author's amendments: Amend, and re-refer to Com. on HIGHER ED. Read second time and amended. |
| Mar 2, 2017 | Referred to Com. on HIGHER ED. |
| Feb 17, 2017 | From printer. May be heard in committee March 19. |
| Feb 16, 2017 | Read first time. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Aug 31, 2018 | AB 888 Low Concurrence - Urgency Added | Assembly Floor |
Passed |
|
| Aug 31, 2018 | Assembly 3rd Reading AB888 Low et al. By Wiener Urgency Clause | Senate Floor |
Passed |
|
| Aug 31, 2018 | With recommendation: That Senate amendments be concurred in. | Assembly Standing Committee on Governmental Organization |
Passed |
|
| Aug 16, 2018 | Do pass as amended | Senate Standing Committee on Appropriations |
Passed |
|
| Aug 6, 2018 | Placed on suspense file | Senate Standing Committee on Appropriations |
Passed |
|
| Jun 26, 2018 | Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations] | Senate Standing Committee on Governmental Organization |
Passed |
|
| Jan 29, 2018 | AB 888 LOW Consent Calendar Second Day Regular Session | Assembly Floor |
Passed |
|
| Jan 18, 2018 | Do pass. To Consent Calendar. | Assembly Standing Committee on Appropriations |
Passed |
|
| Jan 9, 2018 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Business and Professions |
Passed |
|
| Jan 4, 2018 | Be re-referred to the Committee on [Business and Professions] | Assembly Standing Committee on Rules |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| 18 20:35:50 | ** Against | Aug 27, 2018 |
| 651-1530 | ** Against | Aug 27, 2018 |
| American GI Forum of California | ** Against | Aug 27, 2018 |
| American Legion-Department of California | ** Against | Aug 27, 2018 |
| AMVETS-Department of California | ** Against | Aug 27, 2018 |
| Anaheim Ducks Foundation | ** Support | Aug 27, 2018 |
| Anaheim Ducks Hockey Club | ** Support | Aug 27, 2018 |
| Anaheim Ducks Learn to Play | ** Support | Aug 27, 2018 |
| Anaheim Ducks S.C.O.R.E. | ** Support | Aug 27, 2018 |
| Bay Area Outreach & Recreation Program | ** Support | Aug 27, 2018 |
| Bill Wilson Center | ** Against | Aug 27, 2018 |
| Building Bridges Delegation | ** Against | Aug 27, 2018 |
| California Association for Micro Enterprise Opportunity | ** Against | Aug 27, 2018 |
| California Association Of County Veterans Service Officers | ** Against | Aug 27, 2018 |
| California Association Of Food Banks | ** Against | Aug 27, 2018 |
| California Association Of Nonprofits | ** Against | Aug 27, 2018 |
| California State Commanders Veterans Council | ** Against | Aug 27, 2018 |
| California Tribal Business Alliance | ** Against | Aug 27, 2018 |
| Cancer Cure Network Foundation | ** Against | Aug 27, 2018 |
| Ccnf | ** Against | Aug 27, 2018 |
| Center for Human Services | ** Against | Aug 27, 2018 |
| Center For Youth Wellness | ** Support | Aug 27, 2018 |
| CHOC at Mission | ** Support | Aug 27, 2018 |
| CHOC Children's Hospital | ** Support | Aug 27, 2018 |
| Concord Junior Giants | ** Support | Aug 27, 2018 |
| Concord Pal Group | ** Support | Aug 27, 2018 |
| Cope Family Center | ** Against | Aug 27, 2018 |
| Counseling And Support Services For Youth | ** Support | Aug 27, 2018 |
| Courage Campaign | ** Against | Aug 27, 2018 |
| El Sereno Bicentennial Committee | ** Against | Aug 27, 2018 |
| Family Service Agency Of Santa Barbara County | ** Against | Aug 27, 2018 |
| G.O. | ** Against | Aug 27, 2018 |
| Golden State Warriors | * Support | Jun 26, 2018 |
| Good Tidings Foundation | ** Support | Aug 27, 2018 |
| Healthy Adventures Foundation | ** Against | Aug 27, 2018 |
| Imperial Valley Food Bank | ** Against | Aug 27, 2018 |
| Irtpj | ** Against | Aug 27, 2018 |
| Jacob's Heart Children's Cancer Support Services | ** Support | Aug 27, 2018 |
| Kcbx, Inc. | ** Against | Aug 27, 2018 |
| La Casa De Las Madres | ** Support | Aug 27, 2018 |
| Lafc Foundation | ** Support | Aug 27, 2018 |
| Lodi Junior Giants | ** Support | Aug 27, 2018 |
| Los Angeles Aging Advocacy Coalition | ** Against | Aug 27, 2018 |
| Los Angeles Dodgers | ** Support | Aug 27, 2018 |
| Los Angeles Football Club | ** Support | Aug 27, 2018 |
| Los Angeles Rams | ** Support | Aug 27, 2018 |
| Los Molinos Junior Giants | ** Support | Aug 27, 2018 |
| Loved Twice | ** Support | Aug 27, 2018 |
| Meals On Wheels Sf | ** Against | Aug 27, 2018 |
| Military Officers Association of America-California Council of Chapters | ** Against | Aug 27, 2018 |
| Napa Valley Community Housing | ** Against | Aug 27, 2018 |
| North Valley Services | ** Against | Aug 27, 2018 |
| O'Neill Sea Odyssey | ** Support | Aug 27, 2018 |
| Oakland Athletics | ** Support | Aug 27, 2018 |
| Oakland Athletics Community Fund | ** Support | Aug 27, 2018 |
| Okizu | ** Support | Aug 27, 2018 |
| Padres Foundation | ** Support | Aug 27, 2018 |
| Pechanga Band of Luiseno Indians | ** Against | Aug 27, 2018 |
| Pocketful Of Hearts | ** Against | Aug 27, 2018 |
| Police Activities League | ** Support | Aug 27, 2018 |
| Porterville Salvation Army Service Extension | ** Against | Aug 27, 2018 |
| Prepared By: Felipe Lopez | ** Against | Aug 27, 2018 |
| Project Grad Los Angeles | ** Support | Aug 27, 2018 |
| Rincon Tribe | * Against | Jun 26, 2018 |
| Sacramento Kings | ** Support | Aug 27, 2018 |
| Sacramento Kings Foundation | ** Support | Aug 27, 2018 |
| Salinas Police Activities League | ** Support | Aug 27, 2018 |
| San Diego Gulls Hockey Club | ** Support | Aug 27, 2018 |
| San Diego Gulls Hockey Gulls Foundation | ** Support | Aug 27, 2018 |
| San Diego Padres | ** Support | Aug 27, 2018 |
| San Diego Padres Foundation | ** Support | Aug 27, 2018 |
| San Francisco 49ers | ** Support | Aug 27, 2018 |
| San Francisco 49Ers Foundation | ** Support | Aug 27, 2018 |
| San Francisco Giants | * Support | Jun 26, 2018 |
| San Francisco Police Activities League | ** Support | Aug 27, 2018 |
| San Jose Sharks | ** Support | Aug 27, 2018 |
| San Jose Sharks Foundation | ** Support | Aug 27, 2018 |
| San Manuel Band Of Mission Indians | * Against | Jun 26, 2018 |
| Santa Ynez Band Of Chumash Indians | ** Against | Aug 27, 2018 |
| Sierra Hope | ** Against | Aug 27, 2018 |
| Silicon Valley Council of Nonprofits | ** Against | Aug 27, 2018 |
| Southern California Center For Nonprofit Management | ** Against | Aug 27, 2018 |
| St. Barnabas Senior Services | ** Against | Aug 27, 2018 |
| Sunny Hills Services | ** Against | Aug 27, 2018 |
| Tarzana | ** Against | Aug 27, 2018 |
| Team Impact | ** Support | Aug 27, 2018 |
| Tehama County Police Activities League | ** Support | Aug 27, 2018 |
| There With Care Of The Bay Area | ** Support | Aug 27, 2018 |
| Tribal Alliance of Sovereign Indian Nations | ** Against | Aug 27, 2018 |
| Unicef | ** Support | Aug 27, 2018 |
| Until There'S A Cure Foundation | ** Support | Aug 27, 2018 |
| Valley Medical Center Foundation | ** Support | Aug 27, 2018 |
| Viejas Band Of Kumeyaay Indians | * Against | Jun 26, 2018 |
| Walnut Ave Family & Women'S Center | ** Against | Aug 27, 2018 |
| West Fresno Family Resource Center | ** Against | Aug 27, 2018 |
| Work Training Center | ** Against | Aug 27, 2018 |
| Wounded Warrior Homes | ** Against | Aug 27, 2018 |
| Yocha Dehe Wintun Nation | ** Against | Aug 27, 2018 |
CONCURRENCE IN SENATE AMENDMENTS
CSA2 Bill Id:AB 888
Author:(Low)
As Amended Ver:August 24, 2018
2/3 vote. Urgency
ASSEMBLY: |
| (January 29, 2018) | SENATE: | 31-3 | (August 31, 2018) |
(vote not relevant)
COMMITTEE VOTE: | 14-2 | (August 31, 2018) | RECOMMENDATION: | concur |
(G.O.)
Original Committee Reference: HIGHER ED.
SUMMARY: This bill extends the sunset date from December 31, 2018, to January 1, 2024, that allows eligible nonprofit organizations that are established or affiliated with various professional sports teams to conduct 50/50 raffles, as specified.
The Senate amendments delete the Assembly version of this bill, and instead:
- Extends the sunset date from December 31, 2018, to January 1, 2024, that allows eligible nonprofit organizations that are established or affiliated with various professional sports teams to conduct 50/50 raffles, as specified.
- Doubles the annual registration fee from $5,000 to $10,000, the per raffle fee from $100 to $200, the manufacturer fee from $5,000 to $10,000, and the registration fee from $10 to $20.
- Requires eligible information to post specified raffle information on either the affiliated sports team's Web site or the eligible organization's Web site as well as report that information to Department of Justice (DOJ), as specified. This bill requires DOJ to post those reports on their Web site.
- Requires an eligible organization to file with the DOJ a schedule of all vendors used to operate the raffles and total payments made to each other.
- Specifies that failure to submit a complete financial report shall be grounds for the denial of annual registration and for the imposition of penalties, as specified, if the filer does not resubmit a complete form within 20 days of receiving a notice of incomplete filing.
- Add an urgency clause.
EXISTING LAW:
- The California Constitution Article IV, Section 19, allows the Legislature to authorize eligible organizations as defined by the Legislature, to conduct raffles as a funding mechanism to provide support for their own or another private, nonprofit, eligible organization's beneficial and charitable works, provided that a) at least 90% of the gross receipts from the raffle go directly to beneficial or charitable purposes in California, and b) any person who receives compensation in connection with the operation of a raffle is an employee of the private nonprofit organization that is conducting the raffle. The Legislature, two-thirds of the membership of each house concurring, may amend the percentage of gross receipts required by this subdivision to be dedicated to beneficial or charitable purposes by means of a statute that is signed by the Governor.
- Authorizes an eligible organization, as defined, to conduct a 50/50 raffle for the purpose of directly supporting specified beneficial or charitable purposes in California, or financially supporting another private, nonprofit, eligible organization.
- Defines an "eligible organization" as a private, nonprofit organization established by, or affiliated with, a team from the Major League Baseball, National Hockey League, National Basketball Association, National Football League, Women's National Basketball Association, or Major League Soccer; or a private, nonprofit organization established by the Professional Golfers' Association of America, Ladies Professional Golf Association; or National Association for Stock Car Auto Racing that has been qualified to conduct business in California for at least one year prior to conducting a raffle, is qualified for an exemption under Internal Revenue Code Section 501(c)(3), and is exempt from taxation as specified.
- Specifies that a beneficial purpose excludes purposes that are intended to benefit officers, directors, or members and specifies that funds raised by 50/50 raffles shall not be used to fund any beneficial, charitable, or other purpose outside of California.
- Specifies that a raffle otherwise permitted under this section shall not be conducted by means of, or otherwise utilize, any gaming machine that meets the definition of a slot machine, as defined.
- Specifies that a raffle shall not be operated or conducted in any manner over the Internet, nor may raffle tickets be sold, traded, or redeemed over the Internet. An eligible organization shall not be deemed to operate or conduct a raffle over the Internet, or sell raffle tickets over the Internet, if the eligible organization advertises its raffle on the Internet or permits others to do so.
- Prohibits an eligible organization from conducting more than one raffle per home game.
- Requires the eligible organization to disclose to all ticket purchasers the designated private, nonprofit, eligible organization for which the raffle is being conducted.
- Specifies that any raffle prize remaining unclaimed by a winner at the end of the season for a team with an affiliated eligible organization that conducted a raffle to financially support another private, nonprofit eligible organization shall be donated within 30 days from the end of the season by the eligible organization to the designated private, nonprofit organization for which the raffle was conducted.
- Provides that an eligible organization shall not conduct a raffle unless it has a valid registration issued by the Bureau of Gambling Control, under the California Department of Justice (DOJ). The DOJ shall furnish a registration form via the Internet or upon request to eligible nonprofit organizations. The DOJ shall, by regulation, collect only the information necessary to carry out the provisions of this bill.
- Specifies that an eligible organization shall pay, in addition to the annual registration fee, $100 for every individual raffle conducted at an eligible location to cover the reasonable costs of DOJ to administer and enforce the provisions of this bill. This fee shall be submitted in conjunction with the annual registration form.
- Specifies that DOJ may require a person affiliated with an eligible organization who conducts the manual draw to pay a minimum annual registration fee of $10 to cover the reasonable costs of DOJ to administer and enforce the provisions of this bill.
- Specifies that DOJ may, by regulation, adjust the annual registration fees as needed to ensure that revenues will fully offset, but not exceed, the reasonable costs incurred by DOJ pursuant to the provisions of this bill. The fees shall be deposited by DOJ into the General Fund.
- Requires an eligible organization, once registered, to annually file with the DOJ a report that includes specified information for each of the eligible organization's last three fiscal years and requires the DOJ to make those reports available online, as provided. Failure to submit the annual report to DOJ shall be grounds for denial of an annual registration.
- Includes a sunset date of December 31, 2018, and as of that date is repealed, unless a later enacted statute, that is enacted before December 31, 2018, deletes or extends that date.
FISCAL EFFECT: According to Senate Appropriations Committee, this bill contains:
- Ongoing costs to DOJ, likely in the low hundreds of thousands of dollars for increased workload and additional personnel to review and post reports to the website and to initiate the rulemaking process to update existing regulations. (GF and special funds)
- Increase in revenue due to doubling of fees for organizations participating in the raffles.
COMMENTS:
Purpose of the bill: According to the author, "since the passage of the original bill, millions of dollars have been raised for a diverse group of local charitable organizations throughout the state. For example, the Sacramento Kings dedicate every single 50/50 raffle to a different charity, raising both money and awareness for the particular charity. The Sacramento Kings now support 43 additional charities through their 50/50 program, and it is growing every year."
Background: Charitable raffles have been legal in the State of California since July 1, 2001, with the successful passage of SB 639 (McPherson), Chapter 778, Statutes of 2000, and voter approval of Proposition 17.
Despite their previous illegality, raffles had long been a popular fundraising tool used by various nonprofit organizations. Thus in 2000, local law enforcement authorities and members of the nonprofit community decided to sponsor legislation to legalize some raffles and provide for regulation.
Because a constitutional amendment was needed, Proposition 17 in 2000 was approved by California voters with 59% of the vote to exempt charitable raffles from the prohibition against lotteries provided that the Legislature established reasonable statutory regulations and that 90% of the gross receipts from raffles go directly to beneficial or charitable purposes. Proposition 17 also authorized the Legislature to change the percentages of gross receipts that must go directly to charitable purposes with a two-thirds vote of the Legislature and approval by the Governor.
In 2015, SB 549 (Hall), Chapter 509, Statutes of 2015, authorized nonprofit organizations established by professional sports leagues to conduct 50/50 raffles. In these types of raffles 50% of the money goes to the charity and 50% of the money goes to the winner of the raffle. Even though a smaller percentage is going to the charity, supporters of 50/50 raffles argue that the overall amount is greater, since individuals are more inclined to participate; which in turn increases the overall total of funds going to charity.
SB 549: As previously stated, in 2015 California authorized nonprofit organizations that were established or affiliated with various professional sports leagues to conduct 50/50 raffles for a period of three years.
Under the bill, eligible organizations were authorized to conduct one raffle per home game/event and required to pay a minimum annual registration fee of $5,000 and $100 per individual raffle to cover the reasonable costs of DOJ to administer and enforce the provisions of the bill. DOJ was also authorized to adjust the annual registration fees needed to ensure that revenues fully offset the reasonable costs incurred by DOJ.
The bill also included a prohibition on the use of a random number generator after tribal concerns were raised that the device resembled a gaming device. As such, the bill requires a manual draw which must be recorded for possible inspection by DOJ. SB 549 also included a sunset date of December 31, 2018, to allow the legislature the opportunity to review the program.
This bill extends the sunset established by SB 549 to January 1, 2024; doubles all the fees for associated with administering a raffle; and places additional reporting requirements in eligible organizations (see below).
Current 50/50 Reporting and Oversight Requirements: SB 549 required each eligible organization to annually file with DOJ a report that included information such as; the aggregate gross receipts from the operation of raffles, the charitable or beneficial purposes for which proceeds of the raffles were used, the aggregate distributions of proceeds from the operation of raffles made directly to support charitable purposes, and much more specified information.
Current law also requires DOJ to make the reports available to the public via the online search portal of the Attorney General's Registry of Charitable Trusts and states that failure to submit the report should be grounds of denial of their annual registration.
Aside from the reports that eligible organizations are required to be submitted to DOJ, each eligible organization must comply with other accounting and reporting requirements which DOJ may audit at any time. For instance, within five calendar days of a registered event, the eligible organization is required to generate a report containing specified information that includes, the sales totals for the raffle, including the number of raffle tickets sold and the total money generated, the total prize amount, and identification of the prize winner.
In addition, at DOJ's request and within 72 hours, every eligible organization is required to provide the following reports, among others: a report that includes a list of all electronic raffle tickets sold, including all associated raffle draw numbers, the selling price and raffle sales unit identifies, and a detailed description of all raffle tickets sold at each price point; a report that includes a breakdown of each raffle sales unit's total ticket sales and any voided or misprinted tickets; a report that lists the total raffle tickets sold, the amount of money collected, any overages or shortages in money collected, and the actions taken to correct those overages/shortages.
Every eligible organization must retain raffle tickets for one month after awarding the prize or until alternative distribution has been made if no raffle player claims the prize. They must also retain server date, any electronic reports or records, and any records stored externally from the server on durable electronic media for five years. Reports and all documents required by DOJ's regulations are required to be available to DOJ on site at the venue for inspection. These retention requirements are similar to how the state regulates cardroom establishments in California.
AB 888 places additional reporting requirements on eligible organizations that must be posted on either the affiliated sports team's website or the eligible organization's website for each raffle: 1) The total raffle ticket sales; 2) The eligible recipient organization (If more than one eligible recipient organization was chosen for that raffle, the names of all the eligible recipient organizations and how much each eligible recipient organization received from that raffle); 3) The prize total; and 4) The winning number and whether the prize was claimed.
AS PASSED BY THE ASSEMBLY, this bill required the Board of Vocational Nursing and Psychiatric Technicians (BVNPT) to delegate the authority to issue default decisions and stipulated surrenders of licenses to its executive officer and corrects an erroneous cross reference.
Prior/Related Legislation: AB 2075 (Quirk-Silva) of 2017. Would have authorized a private, nonprofit organization to conduct a raffle if the raffle is conducted at a fair, exposition, or exposition. (Never heard in the Assembly Governmental Organization Committee)
AB 2347 (Gloria) of 2017. Would have decreased the percentage of gross receipts from charitable raffles required to go to beneficial or charitable purposes form 90% to 50% for a raffle that generates gross ticket sale receipts less than $1000, conducted by an eligible organization whose gross ticket sale receipts do not exceed $5000 for all raffles in a calendar year. The bill would also have exempted from certain registration and reporting requirements any organization that has not conducted a single raffle that generates gross ticket sale receipts exceeding $1000 and annual gross ticket sale receipts not exceeding $5000 for all raffles in a calendar year. (Never heard in the Assembly Governmental Organization Committee)
SB 549 (Hall), Chapter 509, Statutes of 2015. Authorized, until December 31, 2018, eligible organizations, as defined, to conduct a 50/50 raffle for the purpose of directly supporting a specified beneficial or charitable purpose in California, or financially supporting another private, nonprofit, eligible organization.
AB 1691 (Jones-Sawyer) of 2014. Would have authorized an eligible organization to conduct a 50/50 raffle for the purpose of directly supporting specified beneficial or charitable purposes in California, or financially supporting another private, nonprofit, eligible organization. (Held in the Assembly Appropriations Committee)
SB 200 (Correa), Chapter 38, Statutes of 2009. Authorized eligible organizations to advertise raffles over the Internet.
AB 1588 (Soto) of 2007. Would have decreased the percentage of gross receipts from the sale of raffle tickets required to go to beneficial or charitable purposes form 90% to 50% for a 50/50 raffle and from 90% to 60% for a dream home raffle, as defined. (Never Heard in the Assembly Governmental Organization Committee)
SB 1369 (Cedillo), Chapter 748, Statutes of 2008. Authorized remote caller bingo as a game in which specific tax-exempt organizations, as defined, may use audio or video technology to link designated in-state facilities for playing bingo pursuant to a local ordinance and state regulation and oversight. The bill provided that remote caller bingo could only be played using traditional paper or other tangible bingo cards and daubers, and shall not be played using electronic devices. In addition, the bill provided that prizes for remote caller bingo could not exceed 37% of the gross receipts of the game and overhead may not exceed 20%, as defined.
AB 423 (Longville) of 2003. Would have decreased the percentage of gross receipts from the sale of raffle tickets required to go to beneficial or charitable purposes from 90% to 50% for a 50/50 raffle. (Never heard in the Assembly Governmental Organization Committee)
SB 639 (McPherson), Chapter 778, Statutes of 2000. Permitted raffles to be conducted by private, nonprofit organizations, for the purposes of providing financial support for beneficial charitable works if, among other criteria, at least 90% of the gross receipts from the sale of raffle tickets are used to benefit or provide support for the charitable or beneficial purposes of the conducting nonprofit.
SCA 4 (McPherson), Resolution Chapter 123, Statutes of 1999. Placed Proposition 17 on the March 2000 ballot, which was approved by the voters to authorize charitable raffles in California, provided that at least 90% of the gross receipts from the raffle go directly to beneficial or charitable purposes, as defined.
Analysis Prepared by: Kenton Stanhope / G.O. / (916) 319-2531 FN: 0005225
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB |
THIRD READING
Bill No: AB 888
:
SENATE GOVERNMENTAL ORG. COMMITTEE: 13-0, 6/26/18
AYES: Dodd, Wilk, Bradford, Cannella, Gaines, Galgiani, Glazer, Hill, Hueso, Lara, Portantino, Vidak, Wiener
SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/16/18
AYES: Portantino, Bates, Beall, Bradford, Hill, Nielsen, Wiener
ASSEMBLY FLOOR: Not relevant
DIGEST: This bill extends the sunset date from December 31, 2018, to January 1, 2024, that allows eligible nonprofit organizations that are established or affiliated with various professional sports teams to conduct 50/50 raffles, as specified.
Senate Floor Amendments of 8/24/18 (1) require an eligible organization to submit a schedule of vendors used to operate the raffles and total payments made to each vendor to the California Department of Justice (DOJ), (2) delete a provision that would have prohibited DOJ from requiring an eligible organization to reimburse cost for an audit/review if DOJ had sufficient funds under the program, (3) specify that failure to submit a complete financial report shall be grounds for the denial of an annual registration, as specified, (4) make technical changes, and (5) add an urgency clause.
ANALYSIS:
Existing law:
- Authorizes an eligible organization, as defined, to conduct a 50/50 raffle for the purpose of directly supporting specified beneficial or charitable purposes in California, or financially supporting another private, nonprofit, eligible organization.
- Defines an “eligible organization” as a private, nonprofit organization established by, or affiliated with, a team from the Major League Baseball, National Hockey League, National Basketball Association, National Football League, Women’s National Basketball Association, or Major League Soccer; or a private, nonprofit organization established by the Professional Golfers’ Association of America, Ladies Professional Golf Association; or National Association for Stock Car Auto Racing that has been qualified to conduct business in California for at least one year prior to conducting a raffle, is qualified for an exemption under Section 501 (c)(3) of the Internal Revenue Code, and is exempt from taxation as specified.
- Specifies that a beneficial purpose excludes purposes that are intended to benefit officers, directors, or members and specifies that funds raised by 50/50 raffles shall not be used to fund any beneficial, charitable, or other purpose outside of California.
- Specifies that a raffle otherwise permitted under this section shall not be conducted by means of, or otherwise utilize, any gaming machine that meets the definition of a slot machine, as defined.
- Specifies that a raffle shall not be operated or conducted in any manner over the Internet, nor may raffle tickets be sold, traded, or redeemed over the Internet. An eligible organization shall not be deemed to operate or conduct a raffle over the Internet, or sell raffle tickets over the Internet, if the eligible organization advertises its raffle on the Internet or permits others to do so.
- Prohibits an eligible organization from conducting more than one raffle per home game.
- Requires the eligible organization to disclose to all ticket purchasers the designated private, nonprofit, eligible organization for which the raffle is being conducted.
- Specifies that any raffle prize remaining unclaimed by a winner at the end of the season for a team with an affiliated eligible organization that conducted a raffle to financially support another private, nonprofit eligible organization shall be donated within 30 days from the end of the season by the eligible organization to the designated private, nonprofit organization for which the raffle was conducted.
- Provides that an eligible organization shall not conduct a raffle unless it has a valid registration issued by the Bureau of Gambling Control, under the DOJ. The DOJ shall furnish a registration form via the Internet or upon request to eligible nonprofit organizations. The DOJ shall, by regulation, collect only the information necessary to carry out the provisions of this bill.
- Specifies that an eligible organization shall pay, in addition to the annual registration fee, $100 for every individual raffle conducted at an eligible location to cover the reasonable costs of DOJ to administer and enforce the provisions of this bill. This fee shall be submitted in conjunction with the annual registration form.
- Specifies that DOJ may require a person affiliated with an eligible organization who conducts the manual draw to pay a minimum annual registration fee of $10 to cover the reasonable costs of DOJ to administer and enforce the provisions of this bill.
- Specifies that DOJ may, by regulation, adjust the annual registration fees as needed to ensure that revenues will fully offset, but not exceed, the reasonable costs incurred by DOJ pursuant to the provisions of this bill. The fees shall be deposited by DOJ into the General Fund.
- Requires an eligible organization, once registered, to annually file with the DOJ a report that includes specified information for each of the eligible organization’s last three fiscal years and requires the DOJ to make those reports available online, as provided. Failure to submit the annual report to DOJ shall be grounds for denial of an annual registration.
- Includes a sunset date of December 31, 2018, and as of that date is repealed, unless a later enacted statute, that is enacted before December 31, 2018, deletes or extends that date.
This bill:
- Extends the sunset date from December 31, 2018, to January 1, 2024, that allows eligible nonprofit organizations that are established or affiliated with various professional sports teams to conduct 50/50 raffles, as specified.
- Doubles the annual registration fee from $5,000 to $10,000, the per raffle fee from $100 to $200, the manufacturer fee from $5,000 to $10,000, and the registration fee from $10 to $20.
- Requires an eligible organization to post specified raffle information on either the affiliated sports team’s Web site or the eligible organization’s Web site as well as report that information to DOJ, as specified. This bill requires DOJ to post those reports on their Web site.
- Requires an eligible organization to file with the DOJ a schedule of all vendors used to operate the raffles and total payments made to each other.
- Specifies that failure to submit a complete financial report shall be grounds for the denial of annual registration and for the imposition of penalties, as specified, if the filer does not resubmit a complete form within 20 days of receiving a notice of incomplete filing.
Comments
Purpose of the bill. According to the author’s office, “since the passage of the original bill, millions of dollars have been raised for a diverse group of local charitable organizations throughout the state. For example, the Sacramento Kings dedicate every single 50/50 raffle to a different charity, raising both money and awareness for the particular charity. The Sacramento Kings now support 43 additional charities through their 50/50 program, and it is growing every year.”
History. Charitable raffles have been legal in the State of California since July 1, 2001, with the successful passage of SB 639 (McPherson, Chapter 778, Statutes of 2000) and voter approval of Proposition 17.
Despite their previous illegality, raffles had long been a popular fundraising tool used by various nonprofit organizations. Thus in 2000, local law enforcement authorities and members of the nonprofit community decided to sponsor legislation to legalize some raffles and provide for regulation.
Because a constitutional amendment was needed, Proposition 17 in 2000 was approved by California voters with 59% of the vote to exempt charitable raffles from the prohibition against lotteries provided that the Legislature established reasonable statutory regulations and that 90% of the gross receipts from raffles go directly to beneficial or charitable purposes.
Proposition 17 also authorized the Legislature to change the percentages of gross receipts that must go directly to charitable purposes with a two-thirds vote of the Legislature and approval by the Governor.
In 2015, SB 549 (Hall, Chapter 509, Statutes of 2015) authorized nonprofit organizations established by professional sports leagues to conduct 50/50 raffles. In these types of raffles 50% of the money goes to the charity and 50% of the money goes to the winner of the raffle. Even though a smaller percentage is going to the charity, supporters of 50/50 raffles argue that the overall amount is greater, since individuals are more inclined to participate; which in turn increases the overall total of funds going to charity.
SB 549. As previously stated, in 2015 California authorized nonprofit organizations that were established or affiliated with various professional sports leagues to conduct 50/50 raffles for a period of three years.
Under the bill, eligible organizations were authorized to conduct one raffle per home game/event and required to pay a minimum annual registration fee of $5,000 and $100 per individual raffle to cover the reasonable costs of DOJ to administer and enforce the provisions of the bill. DOJ was also authorized to adjust the annual registration fees needed to ensure that revenues fully offset the reasonable costs incurred by DOJ.
The bill also included a prohibition on the use of a random number generator after tribal concerns were raised that the device resembled a gaming device. As such, the bill requires a manual draw which must be recorded for possible inspection by DOJ. SB 549 also included a sunset date of December 31, 2018, to allow the legislature the opportunity to review the program.
(NOTE: Refer to the Senate Governmental Organization Committee analysis for detailed background.)
Related/Prior Legislation
AB 2075 (Quirk-Silva, 2018) would have authorize a private, nonprofit organization to conduct a raffle if the raffle is conducted at a fair, exposition, or exposition. (Never heard in the Assembly Governmental Organization Committee)
AB 2347 (Gloria, 2018) would have decreased the percentage of gross receipts from charitable raffles required to go to beneficial or charitable purposes form 90% to 50% for a raffle that generates gross ticket sale receipts less than $1,000, conducted by an eligible organization whose gross ticket sale receipts do not exceed $5,000 for all raffles in a calendar year. The bill would also have exempted from certain registration and reporting requirements any organization that has not conducted a single raffle that generates gross ticket sale receipts exceeding $1000 and annual gross ticket sale receipts not exceeding $5000 for all raffles in a calendar year. (Never heard in the Assembly Governmental Organization Committee)
SB 549 (Hall, Chapter 509, Statutes of 2015) authorized, until December 31, 2018, eligible organizations, as defined, to conduct a 50/50 raffle for the purpose of directly supporting a specified beneficial or charitable purpose in California, or financially supporting another private, nonprofit, eligible organization.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
According to the Senate Appropriations Committee, ongoing costs to DOJ, likely in the low hundreds of thousands of dollars for increased workload and additional personnel to review and post reports to the Web site and to initiate the rulemaking process to update existing regulations. Increase in revenue due to doubling of fees for organizations participating in the raffles.
Anaheim Ducks Foundation
Anaheim Ducks Hockey Club
Anaheim Ducks Learn to Play
Anaheim Ducks S.C.O.R.E.
Bay Area Outreach & Recreation Program
Center for Youth Wellness
CHOC at Mission
CHOC Children’s Hospital
Concord Junior Giants
Concord PAL group
Counseling and Support Services for Youth
Good Tidings Foundation
Jacob’s Heart Children’s Cancer Support Services
La Casa de las Madres
LAFC Foundation
Lodi Junior Giants
Los Angeles Dodgers
Los Angeles Football Club
Los Angeles Rams
Los Molinos Junior Giants
Loved Twice
O’Neill Sea Odyssey
Oakland Athletics
Oakland Athletics Community Fund
Okizu
Padres Foundation
Police Activities League
Project GRAD Los Angeles
Sacramento Kings
Sacramento Kings Foundation
Salinas Police Activities League
San Diego Gulls Hockey Club
San Diego Gulls Hockey Gulls Foundation
San Diego Padres
San Diego Padres Foundation
San Francisco 49ers
San Francisco 49ers Foundation
San Francisco Police Activities League
San Jose Sharks
San Jose Sharks Foundation
Team Impact
Tehama County Police Activities League
There With Care of the Bay Area
UNICEF
Until There’s a Cure Foundation
Valley Medical Center Foundation
OPPOSITION: (Verified 8/24/18)
American GI Forum of California
American Legion-Department of California
AMVETS-Department of California
Bill Wilson Center
Building Bridges Delegation
California Association for Micro Enterprise Opportunity
California Association of County Veterans Service Officers
California Association of Food Banks
California Association of Nonprofits
California State Commanders Veterans Council
California Tribal Business Alliance
Cancer Cure Network Foundation
Center for Human Services
Cope Family Center
Courage Campaign
El Sereno Bicentennial Committee
Family Service Agency of Santa Barbara County
Healthy Adventures Foundation
Imperial Valley Food Bank
IRTPJ/CCNF
KCBX, Inc.
Long Term Care Ombudsman Services of San Luis Obispo
Los Angeles Aging Advocacy Coalition
Meals on Wheels SF
Military Officers Association of America-California Council of Chapters
Napa Valley Community Housing
North Valley Services
Pechanga Band of Luiseno Indians
Pocketful of Hearts
Porterville Salvation Army Service Extension
Santa Ynez Band of Chumash Indians
Sierra HOPE
Silicon Valley Council of Nonprofits
Southern California Center for Nonprofit Management
St. Barnabas Senior Services
Sunny Hills Services
Tarzana
Tribal Alliance of Sovereign Indian Nations
Walnut Ave Family & Women’s Center
West Fresno Family Resource Center
Work Training Center
Wounded Warrior Homes
Yocha Dehe Wintun Nation
ARGUMENTS IN SUPPORT: According to Counseling and Support Services for Youth (CASSY), “our organization has found that 50/50 raffles have enabled us to broaden our reach in the Bay Area community and provided crucial funding for our program. CASSY provides mental health services to more than 4,000 at-risk youth in Santa Clara and San Mateo Counties. Our recent 50/50 grant allowed us to expand our services in East Palo Alto, providing an additional 500 youth with the security of comprehensive mental health services on their school campus.”
ARGUMENTS IN OPPOSITION: According to the California Association of Nonprofits, “as we testified during legislative hearings in 2015, large-scale 50/50 raffles run a significant risk of eroding the public’s trust in nonprofit organizations. The 90/10 provisions that all other charities in California are governed by ensure that the primary purpose of any raffle is to provide benefit to nonprofit organizations. Large scale raffles with a 50/50 split move away from that primary purpose and put more of a focus on gambling to win a cash prize rather than on a benefit and donation to a nonprofit.”
8/27/18 20:35:50
**** END ****
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB |
THIRD READING
Bill No: AB 888
:
SENATE GOVERNMENTAL ORG. COMMITTEE: 13-0, 6/26/18
AYES: Dodd, Wilk, Bradford, Cannella, Gaines, Galgiani, Glazer, Hill, Hueso, Lara, Portantino, Vidak, Wiener
SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/16/18
AYES: Portantino, Bates, Beall, Bradford, Hill, Nielsen, Wiener
ASSEMBLY FLOOR: 75-0, 1/29/18 (Consent) – Not relevant
DIGEST: This bill extends the sunset date from December 31, 2018, to January 1, 2024, that allows eligible nonprofit organizations that are established or affiliated with various professional sports teams to conduct 50/50 raffles, as specified.
ANALYSIS:
Existing law:
- Authorizes an eligible organization, as defined, to conduct a 50/50 raffle for the purpose of directly supporting specified beneficial or charitable purposes in California, or financially supporting another private, nonprofit, eligible organization.
- Defines an “eligible organization” as a private, nonprofit organization established by, or affiliated with, a team from the Major League Baseball, National Hockey League, National Basketball Association, National Football League, Women’s National Basketball Association, or Major League Soccer; or a private, nonprofit organization established by the Professional Golfers’ Association of America, Ladies Professional Golf Association; or National Association for Stock Car Auto Racing that has been qualified to conduct business in California for at least one year prior to conducting a raffle, is qualified for an exemption under Section 501 (c)(3) of the Internal Revenue Code, and is exempt from taxation as specified.
- Specifies that a beneficial purpose excludes purposes that are intended to benefit officers, directors, or members and specifies that funds raised by 50/50 raffles shall not be used to fund any beneficial, charitable, or other purpose outside of California.
- Specifies that a raffle otherwise permitted under this section shall not be conducted by means of, or otherwise utilize, any gaming machine that meets the definition of a slot machine, as defined.
- Specifies that a raffle shall not be operated or conducted in any manner over the Internet, nor may raffle tickets be sold, traded, or redeemed over the Internet. An eligible organization shall not be deemed to operate or conduct a raffle over the Internet, or sell raffle tickets over the Internet, if the eligible organization advertises its raffle on the Internet or permits others to do so.
- Prohibits an eligible organization from conducting more than one raffle per home game.
- Requires the eligible organization to disclose to all ticket purchasers the designated private, nonprofit, eligible organization for which the raffle is being conducted.
- Specifies that any raffle prize remaining unclaimed by a winner at the end of the season for a team with an affiliated eligible organization that conducted a raffle to financially support another private, nonprofit eligible organization shall be donated within 30 days from the end of the season by the eligible organization to the designated private, nonprofit organization for which the raffle was conducted.
- Provides that an eligible organization shall not conduct a raffle unless it has a valid registration issued by the Bureau of Gambling Control, under the California Department of Justice (DOJ). The DOJ shall furnish a registration form via the Internet or upon request to eligible nonprofit organizations. The DOJ shall, by regulation, collect only the information necessary to carry out the provisions of this bill.
- Specifies that an eligible organization shall pay, in addition to the annual registration fee, $100 for every individual raffle conducted at an eligible location to cover the reasonable costs of DOJ to administer and enforce the provisions of this bill. This fee shall be submitted in conjunction with the annual registration form.
- Specifies that DOJ may require a person affiliated with an eligible organization who conducts the manual draw to pay a minimum annual registration fee of $10 to cover the reasonable costs of DOJ to administer and enforce the provisions of this bill.
- Specifies that DOJ may, by regulation, adjust the annual registration fees as needed to ensure that revenues will fully offset, but not exceed, the reasonable costs incurred by DOJ pursuant to the provisions of this bill. The fees shall be deposited by DOJ into the General Fund.
- Requires an eligible organization, once registered, to annually file with the DOJ a report that includes specified information for each of the eligible organization’s last three fiscal years and requires the DOJ to make those reports available online, as provided. Failure to submit the annual report to DOJ shall be grounds for denial of an annual registration.
- Includes a sunset date of December 31, 2018, and as of that date is repealed, unless a later enacted statute, that is enacted before December 31, 2018, deletes or extends that date.
This bill:
- Extends the sunset date from December 31, 2018, to January 1, 2024, that allows eligible nonprofit organizations that are established or affiliated with various professional sports teams to conduct 50/50 raffles, as specified.
- Doubles the annual registration fee from $5,000 to $10,000, the per raffle fee from $100 to $200, the manufacturer fee from $5,000 to $10,000, and the registration fee from $10 to $20.
- Requires eligible information to post specified raffle information on either the affiliated sports team’s Web site or the eligible organization’s Web site as well as report that information to DOJ, as specified. This bill requires DOJ to post those reports on their Web site.
- Provides that DOJ is entitled to reimbursement from a registrant for all actual, reasonable, and direct costs of an audit unless the fees to cover DOJ’s reasonable costs to administer and enforce these provisions are sufficient to fund an auditor.
Comments
Purpose of the bill. According to the author’s office, “since the passage of the original bill, millions of dollars have been raised for a diverse group of local charitable organizations throughout the state. For example, the Sacramento Kings dedicate every single 50/50 raffle to a different charity, raising both money and awareness for the particular charity. The Sacramento Kings now support 43 additional charities through their 50/50 program, and it is growing every year.”
History. Charitable raffles have been legal in the State of California since July 1, 2001, with the successful passage of SB 639 (McPherson, Chapter 778, Statutes of 2000) and voter approval of Proposition 17.
Despite their previous illegality, raffles had long been a popular fundraising tool used by various nonprofit organizations. Thus in 2000, local law enforcement authorities and members of the nonprofit community decided to sponsor legislation to legalize some raffles and provide for regulation.
Because a constitutional amendment was needed, Proposition 17 in 2000 was approved by California voters with 59% of the vote to exempt charitable raffles from the prohibition against lotteries provided that the Legislature established reasonable statutory regulations and that 90% of the gross receipts from raffles go directly to beneficial or charitable purposes.
Proposition 17 also authorized the Legislature to change the percentages of gross receipts that must go directly to charitable purposes with a two-thirds vote of the Legislature and approval by the Governor.
In 2015, SB 549 (Hall, Chapter 509, Statutes of 2015) authorized nonprofit organizations established by professional sports leagues to conduct 50/50 raffles. In these types of raffles 50% of the money goes to the charity and 50% of the money goes to the winner of the raffle. Even though a smaller percentage is going to the charity, supporters of 50/50 raffles argue that the overall amount is greater, since individuals are more inclined to participate; which in turn increases the overall total of funds going to charity.
SB 549. As previously stated, in 2015 California authorized nonprofit organizations that were established or affiliated with various professional sports leagues to conduct 50/50 raffles for a period of three years.
Under the bill, eligible organizations were authorized to conduct one raffle per home game/event and required to pay a minimum annual registration fee of $5,000 and $100 per individual raffle to cover the reasonable costs of DOJ to administer and enforce the provisions of the bill. DOJ was also authorized to adjust the annual registration fees needed to ensure that revenues fully offset the reasonable costs incurred by DOJ.
The bill also included a prohibition on the use of a random number generator after tribal concerns were raised that the device resembled a gaming device. As such, the bill requires a manual draw which must be recorded for possible inspection by DOJ. SB 549 also included a sunset date of December 31, 2018, to allow the legislature the opportunity to review the program.
(NOTE: Refer to the Senate Governmental Organization Committee analysis for detailed background.)
Related/Prior Legislation
AB 2075 (Quirk-Silva, 2018) would have authorize a private, nonprofit organization to conduct a raffle if the raffle is conducted at a fair, exposition, or exposition. (Never heard in the Assembly Governmental Organization Committee)
AB 2347 (Gloria, 2018) would have decreased the percentage of gross receipts from charitable raffles required to go to beneficial or charitable purposes form 90% to 50% for a raffle that generates gross ticket sale receipts less than $1,000, conducted by an eligible organization whose gross ticket sale receipts do not exceed $5,000 for all raffles in a calendar year. The bill would also have exempted from certain registration and reporting requirements any organization that has not conducted a single raffle that generates gross ticket sale receipts exceeding $1000 and annual gross ticket sale receipts not exceeding $5000 for all raffles in a calendar year. (Never heard in the Assembly Governmental Organization Committee)
SB 549 (Hall, Chapter 509, Statutes of 2015) authorized, until December 31, 2018, eligible organizations, as defined, to conduct a 50/50 raffle for the purpose of directly supporting a specified beneficial or charitable purpose in California, or financially supporting another private, nonprofit, eligible organization.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
According to the Senate Appropriations Committee, ongoing costs to DOJ, likely in the low hundreds of thousands of dollars for increased workload and additional personnel to review and post reports to the Web site and to initiate the rulemaking process to update existing regulations. Increase in revenue due to doubling of fees for organizations participating in the raffles.
Anaheim Ducks Foundation
Anaheim Ducks Hockey Club
Anaheim Ducks Learn to Play
Anaheim Ducks S.C.O.R.E.
Bay Area Outreach & Recreation Program
Center for Youth Wellness
CHOC at Mission
CHOC Children’s Hospital
Concord Junior Giants
Concord PAL group
Counseling and Support Services for Youth
Good Tidings Foundation
Jacob’s Heart Children’s Cancer Support Services
La Casa de las Madres
LAFC Foundation
Lodi Junior Giants
Los Angeles Dodgers
Los Angeles Football Club
Los Angeles Rams
Los Molinos Junior Giants
Loved Twice
O’Neill Sea Odyssey
Oakland Athletics
Oakland Athletics Community Fund
Okizu
Padres Foundation
Police Activities League
Project GRAD Los Angeles
Sacramento Kings
Sacramento Kings Foundation
Salinas Police Activities League
San Diego Gulls Hockey Club
San Diego Gulls Hockey Gulls Foundation
San Diego Padres
San Diego Padres Foundation
San Francisco 49ers
San Francisco 49ers Foundation
San Francisco Police Activities League
San Jose Sharks
San Jose Sharks Foundation
Team Impact
Tehama County Police Activities League
There With Care of the Bay Area
UNICEF
Until There’s a Cure Foundation
Valley Medical Center Foundation
OPPOSITION: (Verified 8/17/18)
American GI Forum of California
American Legion-Department of California
AMVETS-Department of California
Bill Wilson Center
Building Bridges Delegation
California Association for Micro Enterprise Opportunity
California Association of County Veterans Service Officers
California Association of Food Banks
California Association of Nonprofits
California State Commanders Veterans Council
California Tribal Business Alliance
Cancer Cure Network Foundation
Center for Human Services
Cope Family Center
Courage Campaign
El Sereno Bicentennial Committee
Family Service Agency of Santa Barbara County
Healthy Adventures Foundation
Imperial Valley Food Bank
IRTPJ/CCNF
KCBX, Inc.
Long Term Care Ombudsman Services of San Luis Obispo
Los Angeles Aging Advocacy Coalition
Meals on Wheels SF
Military Officers Association of America-California Council of Chapters
Napa Valley Community Housing
North Valley Services
Pechanga Band of Luiseno Indians
Pocketful of Hearts
Porterville Salvation Army Service Extension
Santa Ynez Band of Chumash Indians
Sierra HOPE
Silicon Valley Council of Nonprofits
Southern California Center for Nonprofit Management
St. Barnabas Senior Services
Sunny Hills Services
Tarzana
Tribal Alliance of Sovereign Indian Nations
Walnut Ave Family & Women’s Center
West Fresno Family Resource Center
Work Training Center
Wounded Warrior Homes
Yocha Dehe Wintun Nation
ARGUMENTS IN SUPPORT: According to Counseling and Support Services for Youth (CASSY), “our organization has found that 50/50 raffles have enabled us to broaden our reach in the Bay Area community and provided crucial funding for our program. CASSY provides mental health services to more than 4,000 at-risk youth in Santa Clara and San Mateo Counties. Our recent 50/50 grant allowed us to expand our services in East Palo Alto, providing an additional 500 youth with the security of comprehensive mental health services on their school campus.”
ARGUMENTS IN OPPOSITION: According to the California Association of Nonprofits, “as we testified during legislative hearings in 2015, large-scale 50/50 raffles run a significant risk of eroding the public’s trust in nonprofit organizations. The 90/10 provisions that all other charities in California are governed by ensure that the primary purpose of any raffle is to provide benefit to nonprofit organizations. Large scale raffles with a 50/50 split move away from that primary purpose and put more of a focus on gambling to win a cash prize rather than on a benefit and donation to a nonprofit.”
ASSEMBLY FLOOR: 75-0, 1/29/18
AYES: Acosta, Aguiar-Curry, Travis Allen, Arambula, Baker, Berman, Bigelow, Bloom, Bonta, Brough, Burke, Caballero, Calderon, Carrillo, Cervantes, Chau, Chávez, Chen, Chiu, Choi, Chu, Cooley, Cooper, Cunningham, Dahle, Daly, Eggman, Flora, Fong, Frazier, Friedman, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gonzalez Fletcher, Gray, Grayson, Harper, Holden, Irwin, Jones-Sawyer, Kalra, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, Medina, Melendez, Mullin, Muratsuchi, Nazarian, Obernolte, O'Donnell, Patterson, Quirk, Quirk-Silva, Reyes, Rodriguez, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Voepel, Waldron, Weber, Wood, Rendon
NO VOTE RECORDED: Gallagher, McCarty
8/23/18 10:47:32
**** END ****
SENATE COMMITTEE ON
Senator Anthony Portantino, Chair
2017 - 2018 Regular Session
AB 888 (Low) - Charitable raffles
Version: | Policy Vote: |
Urgency: | Mandate: |
Hearing Date: | Consultant: |
Bill Summary:
AB 888 would delete the December 31, 2018, sunset date that allows eligible nonprofit organizations that are established or affiliated with various professional sports teams to conduct 50/50 raffles and would require an eligible organization to file with the Department of Justice (DOJ) and post on a specified Internet Web site, each season or year, a report, as specified, and require DOJ to post the reports on its Internet Web site.
*********** ANALYSIS ADDENDUM – SUSPENSE FILE ***********
The following information is revised to reflect amendments
adopted by the committee on August 16, 2018
Fiscal Impact:
- Ongoing costs to DOJ, likely in the low hundreds of thousands of dollars for increased workload and additional personnel to review and post reports to the website and to initiate the rulemaking process to update existing regulations. (GF and special funds)
- Increase in revenue due to doubling of fees for organizations participating in the raffles.
Author Amendments:
Double the fees for participating in the raffle and extend the deadline to repay the loan.
Committee Amendments:
Reinstate a sunset date of January 1, 2024.
-- END --
SENATE COMMITTEE ON
Senator Anthony Portantino, Chair
2017 - 2018 Regular Session
AB 888 (Low) - Charitable raffles
Version: | Policy Vote: |
Urgency: | Mandate: |
Hearing Date: | Consultant: |
This bill meets the criteria for referral to the Suspense File.
Bill Summary:
This bill would delete the December 31, 2018, sunset date that allows eligible nonprofit organizations that are established or affiliated with various professional sports teams to conduct 50/50 raffles and would require an eligible organization to file with the Department of Justice (DOJ) and post on a specified Internet Web site, each season or year, a report, as specified, and require DOJ to post the reports on its Internet Web site.
Fiscal Impact:
- Ongoing costs to DOJ, likely in the low hundreds of thousands of dollars for increased workload and additional personnel to review and post reports to the website and to initiate the rulemaking process to update existing regulations. (GF and special funds)
Background:
Charitable raffles have been legal in California since 2001. With voter approval of Proposition 17 in 2000, charitable raffles were exempted from the prohibition against lotteries provided that the Legislature established reasonable statutory regulations and that 90% of the gross receipts from raffles go directly to beneficial or charitable purposes. Proposition 17 also authorized the Legislature to change the percentages of gross receipts that must go directly to charitable purposes with a two-thirds vote of the Legislature and approval of the Governor.
In 2015, SB 549 (Hall, Chapter 509, Statutes of 2015) authorized nonprofit organizations established by professional sports leagues to conduct 50/50 raffles (50% of the proceeds goes to the charity and 50% of the proceeds goes to the winner of the raffle). Under SB 549, eligible organizations are authorized to conduct one raffle per home game/event and are required to pay a minimum annual registration fee of $5,000 and $100 per individual raffle to cover the reasonable costs of DOJ to administer and enforce the provisions of the bill. DOJ is authorized to adjust the annual registration fees as needed and is authorized to inspect the record of the manual draw for any raffle. The provisions of SB 549 are set to sunset on December 31, 2018.
Proposed Law:
This bill would delete the December 31, 2018, sunset date that allows eligible organizations that are established or affiliated with various professional sports leagues to conduct 50/50 raffles thereby extending the provisions indefinitely. This bill would also recast the reporting requirements on an eligible organization, both on its Internet Web site and with DOJ, as specified. Lastly, this bill would require DOJ to post on its Internet Web site the reports from the eligible organizations, but would prohibit DOJ from posting the report on the online search portal of the Attorney General’s Registry of Charitable Trusts.
Related Legislation:
AB 2347 (Gloria, 2018), AB 1688 (Soto, 2008), and AB 423 (Longville, 2003) among other things, would have decreased the percentage of gross receipts from charitable raffles required to go to beneficial or charitable purposes from 90% to 50%, as specified. None of these bills were heard in the Assembly Governmental Organization Committee.
SB 549 (Hall, Chapter 509, Statutes of 2015) authorized, until December 31, 2018, a 50/50 raffle to be conducted by a major league sports raffle at a home game by an eligible organization, as defined, for the purpose of directly supporting a specified beneficial or charitable purpose in California, or financially supporting another private, nonprofit, eligible organization.
AB 1691 (Jones-Sawyer, 2014) would have authorized an eligible organization to conduct a 50/50 raffle for the purpose of directly supporting specified beneficial or charitable purposes in California or financially supporting another private nonprofit eligible organization. This bill was held in the Assembly Appropriations Committee.
SB 639 (McPherson, Chapter 778, Statutes of 2000) authorized raffles to be conducted by private, nonprofit organizations, for the purposes of providing financial support for beneficial charitable works if, among other criteria, at least 90% of the gross receipts from the sale of the raffle tickets are used to benefit or provide support for the charitable or beneficial purposes of the conducting nonprofit.
Staff Comments:
The current reporting requirements are not only difficult to understand, but difficult to obtain for members of the public and other stakeholders. This bill would add new reporting language intended to make the reporting more accessible and easier to understand.
-- END --
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Bill Dodd
Chair
2017 - 2018 Regular
Bill No: AB Hearing Date: 6/26/2018
Author: | Low, et al. | ||
Version: | Amended | ||
Urgency: | Fiscal: | ||
Consultant: | |||
SUBJECT:
DIGEST: This bill deletes the December 31, 2018 sunset date that allows eligible nonprofit organizations that are established or affiliated with various professional sports teams to conduct 50/50 raffles, as specified.
ANALYSIS:
Existing law:
- Authorizes an eligible organization, as defined, to conduct a 50/50 raffle for the purpose of directly supporting specified beneficial or charitable purposes in California, or financially supporting another private, nonprofit, eligible organization.
- Defines an “eligible organization” as a private, nonprofit organization established by, or affiliated with, a team from the Major League Baseball, National Hockey League, National Basketball Association, National Football League, Women’s National Basketball Association, or Major League Soccer; or a private, nonprofit organization established by the Professional Golfers’ Association of America, Ladies Professional Golf Association; or National Association for Stock Car Auto Racing that has been qualified to conduct business in California for at least one year prior to conducting a raffle, is qualified for an exemption under section 501 (c)(3) of the Internal Revenue Code, and is exempt from taxation as specified.
- Defines “raffle” as a scheme for the distribution of prizes by chance among persons who have paid money for paper tickets that provide the opportunity to win these prizes, as specified.
- Specifies that a beneficial purpose excludes purposes that are intended to benefit officers, directors, or members and specifies that funds raised by 50/50 raffles shall not be used to fund any beneficial, charitable, or other purpose outside of California. An eligible organization is allowed to use funds from sources other than the sale of raffle tickets to pay for the administration or other costs of conducting a raffle.
- Specifies that a person who receives compensation in connection with the operation of the raffle shall be an employee of the eligible organization that is conducting the raffle, and in no event may compensation be paid from revenues required to be dedicated to beneficial or charitable purposes.
- Specifies that a raffle ticket shall not be sold in exchange for Bitcoin or any other cryptocurrency.
- Specifies that a raffle otherwise permitted under this section shall not be conducted by means of, or otherwise utilize, any gaming machine that meets the definition of a slot machine, as defined.
- Specifies that a raffle otherwise permitted under this section shall not be conducted, nor may tickets for a raffle be sold, within an operating satellite wagering facility or racetrack enclosure.
- Specifies that a raffle shall not be operated or conducted in any manner over the Internet, nor may raffle tickets be sold, traded, or redeemed over the Internet. An eligible organization shall not be deemed to operate or conduct a raffle over the Internet, or sell raffle tickets over the Internet, if the eligible organization advertises its raffle on the Internet or permits others to do so.
- Prohibits an eligible organization from conducting more than one raffle per home game.
- Prohibits the sale of raffle tickets in any seating area designated as a family section.
- Requires the eligible organization to disclose to all ticket purchasers the designated private, nonprofit, eligible organization for which the raffle is being conducted.
- Specifies that an eligible organization that conducts a raffle to financially support another private, nonprofit eligible organization shall distribute all proceeds not paid out to the winners of the prizes to the private, nonprofit organization within 15 days of conducting the raffle.
- Specifies that any raffle prize remaining unclaimed by a winner at the end of the season for a team with an affiliated eligible organization that conducted a raffle to financially support another private, nonprofit eligible organization shall be donated within 30 days from the end of the season by the eligible organization to the designated private, nonprofit organization for which the raffle was conducted.
- Provides that an eligible organization shall not conduct a raffle unless it has a valid registration issued by the Bureau of Gambling Control (Bureau), under the California Department of Justice (DOJ). The DOJ shall furnish a registration form via the Internet or upon request to eligible nonprofit organizations. The DOJ shall, by regulation, collect only the information necessary to carry out the provisions of this bill.
- Specifies that DOJ may require an eligible organization to pay a minimum annual registration fee of $5,000 to cover the reasonable costs of DOJ to administer and enforce the provisions of this bill.
- Specifies that an eligible organization shall pay, in addition to the annual registration fee, $100 for every individual raffle conducted at an eligible location to cover the reasonable costs of DOJ to administer and enforce the provisions of this bill. This fee shall be submitted in conjunction with the annual registration form.
- Specifies that DOJ may require a manufacturer or distributor of raffle-related products or services to pay a minimum annual registration fee of $5,000 to cover the reasonable costs of DOJ to administer and enforce the provisions of this bill.
- Requires an eligible organization to register the equipment used in the sale and distribution of raffle tickets, and shall have the equipment tested by an independent gaming tested lab.
- Requires a person affiliated with an eligible organization who conducts the manual draw to annually register with DOJ.
- Specifies that DOJ may require a person affiliated with an eligible organization who conducts the manual draw to pay a minimum annual registration fee of $10 to cover the reasonable costs of DOJ to administer and enforce the provisions of this bill.
- Specifies that DOJ may, by regulation, adjust the annual registration fees as needed to ensure that revenues will fully offset, but not exceed, the reasonable costs incurred by DOJ pursuant to the provisions of this bill. The fees shall be deposited by DOJ into the General Fund.
- Specifies that DOJ shall receive the moneys for the costs incurred by the provisions of this bill by an appropriation by the Legislature.
- Requires DOJ to maintain an automated database of all registrants. Each local law enforcement agency shall notify DOJ of any arrests or investigation that may result in an administrative or criminal action against a registrant. DOJ may audit the records and other documents of a registrant to ensure compliance with the provisions of this bill and may charge a registrant the direct costs associated with an audit.
- Specifies that DOJ may investigate all suspected violations or any activity that the registrant has engaged in that is not in the best interests of the public’s health, safety, or general welfare as it pertains to charitable raffles.
- Requires an eligible organization, once registered, to annually file with the DOJ a report that includes specified information for each of the eligible organization’s last three fiscal years and requires the DOJ to make those reports available online, as provided. Failure to submit the annual report to DOJ shall be grounds for denial of an annual registration.
- Specifies that DOJ may take legal action against a registrant if it determines that the registrant has violated provisions of this bill or a regulation adopted, or that the registrant has engaged in any conduct that is not in the best interests of the public’s health, safety, or general welfare. An action taken by DOJ does not prohibit the commencement of an administrative or criminal action by the Attorney General, or district attorney, city attorney, or county counsel.
- Specifies that an action and hearing conducted to deny, revoke, or suspend a registry, or other administrative action taken against a registrant shall be conducted pursuant to the Administrative Procedure Act. The DOJ may seek civil remedies, including imposing fines and may seek recovery of the costs incurred in investigating or prosecuting an action against a registrant or applicant.
- Includes a sunset date of December 31, 2018, and as of that date is repealed, unless a later enacted statute, that is enacted before December 31, 2018, deletes or extends that date.
This bill deletes the December 31, 2018, sunset date that allows eligible organizations that are established or affiliated with various professional sports league to conduct 50/50 raffles, as specified.
Background
Purpose of the bill. According to the author’s office, “since the passage of the original bill, millions of dollars have been raised for a diverse group of local charitable organizations throughout the state. For example, the Sacramento Kings dedicate every single 50/50 raffle to a different charity, raising both money and awareness for the particular charity. The Sacramento Kings now support 43 additional charities through their 50/50 program, and it is growing every year.”
History. Charitable raffles have been legal in the State of California since July 1, 2001, with the successful passage of SB 639 (McPherson, Chapter 778, Statutes of 2000) and voter approval of Proposition 17.
Despite their previous illegality, raffles had long been a popular fundraising tool used by various nonprofit organizations. Thus in 2000, local law enforcement authorities and members of the nonprofit community decided to sponsor legislation to legalize some raffles and provide for regulation.
Because a constitutional amendment was needed, Proposition 17 in 2000 was approved by California voters with 59% of the vote to exempt charitable raffles from the prohibition against lotteries provided that the Legislature established reasonable statutory regulations and that 90% of the gross receipts from raffles go directly to beneficial or charitable purposes.
Proposition 17 also authorized the Legislature to change the percentages of gross receipts that must go directly to charitable purposes with a two-thirds vote of the Legislature and approval by the Governor.
In 2015, SB 549 (Hall, Chapter 509, Statutes of 2015) authorized nonprofit organizations established by professional sports leagues to conduct 50/50 raffles. In these types of raffles 50% of the money goes to the charity and 50% of the money goes to the winner of the raffle. Even though a smaller percentage is going to the charity, supporters of 50/50 raffles argue that the overall amount is greater, since individuals are more inclined to participate; which in turn increases the overall total of funds going to charity.
SB 549 (Hall, Chapter 509, Statutes of 2015). As previously stated, in 2015 California authorized nonprofit organizations that were established or affiliated with various professional sports leagues to conduct 50/50 raffles for a period of three years.
Under the bill, eligible organizations were authorized to conduct one raffle per home game/event and required to pay a minimum annual registration fee of $5,000 and $100 per individual raffle to cover the reasonable costs of DOJ to administer and enforce the provisions of the bill. DOJ was also authorized to adjust the annual registration fees needed to ensure that revenues fully offset the reasonable costs incurred by DOJ.
The bill also included a prohibition on the use of a random number generator after tribal concerns were raised that the device resembled a gaming device. As such, the bill requires a manual draw which must be recorded for possible inspection by DOJ. SB 549 also included a sunset date of December 31, 2018 to allow the legislature the opportunity to review the program.
San Jose Sharks 50/50 raffle program. During the 2016/17 NHL season, the San Jose Sharks conducted approximately 47 raffles. Approximately 17 of those were for the benefit of the San Jose Sharks Foundation. Beneficiaries, among others, included the Silicon Valley Community Foundation which raised over $31,000 dollars over three raffles, the American Red Cross (Oakland Fires) which raised over $23,000, and the Pancreatic Cancer Center Action Network which raised $10,647.50 during an October 29, 2016 raffle.
The largest raffle was conducted during the final game of the season which raised more than $33,000 for the Sharks Foundation. During the three playoff games, over $65,000 was raised, all for the benefit of Habitat for Humanity.
In all, the San Jose Sharks were able to raise over half a million dollars during the 2016/17 season. The total of sales of most raffles was somewhere around $20,000, raising about $10,000 for nonprofits per raffle.
San Francisco 49ers 50/50 raffle program. During the 2017 season, including the preseason, the San Francisco 49ers conducted a total of 10 raffles, benefitting 12 different organizations. The biggest beneficiary was the American Cancer Society which raised $31,685 during a December 17 game against the Tennessee Titans. Beneficiaries, among others, included STEAM Education, Golden Heart Fund, and Home for our Troops.
The sales of total tickets were in the range of $14,268 to $65,410. Interestingly enough, sales increased dramatically after the team acquired starting quarterback, Jimmy Garoppolo.
Reporting requirement for 501 c3’s. Only those nonprofits that are classified as 501c3’s are allowed to conduct 50/50 raffles under the provisions set forth by SB 549. As part of that classification, they are required to maintain books and records to prove to the Internal Revenue Service (IRS) that it complies with various tax rules. Those books and records must be available for inspection by the IRS.
Except in a few cases, the law does not require a special kind of record. Rather the IRS recommends that a nonprofit set up a recordkeeping system that uses an accounting method that is appropriate for proper monitoring and reporting of its financial activities for the year. The IRS requires that records appropriately identify the income and expense items that are attributable to each program, if the nonprofit has more than one. In addition to keeping various records each organization is required to annually file a form 990 with the IRS to provide the public with the nonprofits’ financial information.
At the state level, charities are required to annually register and report to the Attorney General a copy of their form 990, 990-PF, or 990-EZ, together with Form RRF-1 and pay a fee. In addition, charities are required to submit their California return of tax-exempt organizations. Additionally, they are required to make its three most recent federal tax returns, its status application, and its determination letter available for public inspection.
Reporting requirements for 50/50 raffles. SB 549 required each eligible organization to annually file with DOJ a report that included information such as; the aggregate gross receipts from the operation of raffles, the charitable or beneficial purposes for which proceeds of the raffles were used, the aggregate distributions of proceeds from the operation of raffles made directly to support charitable purposes, and much more specified information.
The bill also requires DOJ to make the reports available to the public via the online search portal of the Attorney General’s Registry of Charitable Trusts and states that failure to submit the report should be grounds of denial of their annual registration.
There’s been some confusion over this specific requirement, as some falsely believed that DOJ was required to submit a report to the Legislature. This was never the case. As previously stated, these reports were required to be submitted to DOJ who are required to make the reports available to the public via DOJ’s online search portal.
The reporting requirement, alongside the sunset date, was included in the bill because of concerns that all the teams were simply going to use 50/50 raffle funds to replace their previous charitable contributions. Based on an overview of the reports from the Sacramento Kings, Los Angeles Kings, San Francisco Giants, Anaheim Ducks, San Jose Sharks, and Los Angeles Rams, it appears that most of the teams have either maintained, or exceeded, the same approximate level of charitable giving from non-raffle proceeds prior to being authorized to conduct 50/50 raffles.
Additional accounting and reporting. Aside from the reports that eligible organizations are required to be submitted to DOJ, each eligible organization must comply with other accounting and reporting requirements which DOJ may audit at any time.
For instance, within five calendar days of a registered event, the eligible organization is required to generate a report containing specified information that includes, the sales totals for the raffle, including the number of raffle tickets sold and the total money generated, the total prize amount, and identification of the prize winner.
In addition, at DOJ’s request and within 72 hours, every eligible organization is required to provide the following reports, among others: a report that includes a list of all electronic raffle tickets sold, including all associated raffle draw numbers, the selling price and raffle sales unit identifies, and a detailed description of all raffle tickets sold at each price point; a report that includes a breakdown of each raffle sales unit’s total ticket sales and any voided or misprinted tickets; a report that lists the total raffle tickets sold, the amount of money collected, any overages or shortages in money collected, and the actions taken to correct those overages/shortages.
Every eligible organization must retain raffle tickets for one month after awarding the prize or until alternative distribution has been made if no raffle player claims the prize. They must also retain server date, any electronic reports or records, and any records stored externally from the server on durable electronic media for five years. Reports and all documents required by DOJ’s regulations are required to be available to DOJ on site at the venue for inspection. These retention requirements are similar to how the state regulates cardroom establishments in California.
Audit provisions. Much of the opposition to this bill focuses on the argument that since there’s been no audit conducted by DOJ, or any other entity, the program should not be renewed. While it is true that an audit has not been conducted, SB 549 did authorize DOJ to audit the records and other documents of a registrant to ensure compliance with the provisions of the bill and authorized DOJ to charge a registrant the direct costs associated with that audit. This is similar to how the State of California oversees other gaming interest in the state.
Furthermore, DOJ’s regulations on the program allow DOJ to audit an eligible organization at any time contingent upon the appropriation of sufficient funds. In addition, the regulations require each eligible organization to “make true and complete disclosures of all information, documents and other records requested by the Bureau…to enable the Bureau and other law enforcement agencies to ascertain compliance.” Bureau personnel, under DOJ, are also authorized to have access to all raffle records and equipment.
Bureau/DOJ regulations. While many of DOJ’s regulation pertaining to SB 549 have already been discussed, DOJ established various other requirements and prohibitions to ensure the integrity of 50/50 raffles.
For instance, every manual draw conducted under SB 549 is required to be video recorded and must be maintained as part of the records required to be maintained.
Every eligible organization must also comply with any tax withholding requirements established by the Department of the Treasure, the Internal Revenue Service or the State of California, Franchise Tax Board, and any reporting requirements on monetary transactions imposed by state or federal laws.
An eligible organization is prohibited from printing any word or phrase on promotional material or advertising that implies or expressed that a purchase of a raffle ticket is a charitable donation. Regulations also prohibit the use of any revenues generated from the sale of raffle tickets to be used to defray costs incurred by eligible organizations for the conduct of the raffle. In fact, regulations clearly state that payments and distributions for the lawful purposes of the eligible organization or eligible recipient organization are the only allowable expenditures from the proceeds of the raffles
Prior to the sale of any raffle tickets, the eligible organization is responsible for ensuring that every affiliated person participating in the sale of raffle tickets possess the training knowledge, and experience necessary to carry out their assigned duties as well as understand current law and any regulations established by DOJ. An eligible organization, affiliated person, and any other person or entity that is required by SB 549 to be registered with DOJ is required to notify DOJ immediately about any conduct activity, or incident that may affect the integrity of any registered event. The Bureau has indicated that they have received no such complaints.
Policy considerations. The current reporting requirements are not only difficult to understand but difficult to obtain for members of the public and other stakeholders. In addition, much of the opposition focuses on the perceived lack of data on a per raffle basis. As such, the author may wish to amend the bill to delete the current reporting requirements in law and instead include the following reporting requirements:
Amendment 1. Each eligible organization shall post the following information on either the affiliated sports team’s website or the eligible organization’s website for each raffle:
- The total raffle ticket sales.
- The eligible recipient organization. If more than one eligible recipient organization was chosen for that raffle, the names of all the eligible recipient organizations and how much each eligible recipient organization received from that raffle.
- The prize total.
- The winning number and whether the prize was claimed.
Amendment 2. Once registered, an eligible organization shall file, every season or annually thereafter with DOJ a report that includes all of the following information:
- For each raffle:
- The total raffle ticket sales.
- The eligible recipient organization. If more than one eligible recipient organization was chosen for that raffle, the names of all the eligible recipient organizations and how much each eligible recipient organization received from that raffle.
- The prize total.
- The winning number and whether the prize was claimed.
- The total number of raffles conducted that season or year.
- The total raffle ticket sales for the entire season or year.
- The average per raffle ticket sales for the entire season or year.
- The prize total for the entire season or year, including any prize that was not claimed.
- The average per raffle prize total for the entire season or year, including any prize that was not claimed.
- The total prize money that was not claimed, if any, during the entire season or year. For each raffle where the prize was not claimed, the name of the eligible recipient organization who received the prize.
Amendment 3. Require that the reports be posted on DOJ’s website, which does not include the departments online search portal of the Attorney General’s Registry of Charitable Trusts, and on either the affiliated sports team’s website or the eligible organization’s website.
Amendments 4. Require the report to be submitted and posted no later than 60 days after the end of the season or the end of the year.
Prior/Related Legislation
AB 2075 (Quirk-Silva, 2018) would have authorize a private, nonprofit organization to conduct a raffle if the raffle is conducted at a fair, exposition, or exposition. (Never heard in the Assembly Governmental Organization Committee)
AB 2347 (Gloria, 2018) would have decreased the percentage of gross receipts from charitable raffles required to go to beneficial or charitable purposes form 90% to 50% for a raffle that generates gross ticket sale receipts less than $1000, conducted by an eligible organization whose gross ticket sale receipts do not exceed $5000 for all raffles in a calendar year. The bill would also have exempted from certain registration and reporting requirements any organization that has not conducted a single raffle that generates gross ticket sale receipts exceeding $1000 and annual gross ticket sale receipts not exceeding $5000 for all raffles in a calendar year. (Never heard in the Assembly Governmental Organization Committee)
SB 549 (Hall, Chapter 509, Statutes of 2015) authorizes, until December 31, 2018, eligible organizations, as defined, to conduct a 50/50 raffle for the purpose of directly supporting a specified beneficial or charitable purpose in California, or financially supporting another private, nonprofit, eligible organization.
AB 1691 (Jones-Sawyer, 2014) would have authorized an eligible organization to conduct a 50/50 raffle for the purpose of directly supporting specified beneficial or charitable purposes in California, or financially supporting another private, nonprofit, eligible organization. (Held in the Assembly Appropriations Committee)
SB 200 (Correa, Chapter 38, Statutes of 2009) authorized eligible organizations to advertise raffles over the Internet.
AB 1588 (Soto, 2008) would have decreased the percentage of gross receipts from the sale of raffle tickets required to go to beneficial or charitable purposes form 90% to 50% for a 50/50 raffle and from 90% to 60% for a dream home raffle, as defined. (Never Heard in the Assembly Governmental Organization Committee)
SB 1369 (Cedillo, Chapter 748, Statutes of 2008) authorized remote caller bingo as a game in which specific tax-exempt organizations, as defined, may use audio or video technology to link designated in-state facilities for playing bingo pursuant to a local ordinance and state regulation and oversight. The bill provided that remote caller bingo could only be played using traditional paper or other tangible bingo cards and daubers, and shall not be played using electronic devices. In addition, the bill provided that prizes for remote caller bingo could not exceed 37% of the gross receipts of the game and overhead may not exceed 20%, as defined.
AB 423 (Longville, 2003) would have decreased the percentage of gross receipts from the sale of raffle tickets required to go to beneficial or charitable purposes from 90% to 50% for a 50/50 raffle. (Never heard in the Assembly Governmental Organization Committee)
SB 639 (McPherson, Chapter 778, Statutes of 2000) permitted raffles to be conducted by private, nonprofit organizations, for the purposes of providing financial support for beneficial charitable works if, among other criteria, at least 90% of the gross receipts from the sale of raffle tickets are used to benefit or provide support for the charitable or beneficial purposes of the conducting nonprofit.
SCA 4 (McPherson, Resolution Chapter 123, Statutes of 1999) placed Proposition 17 on the March 2000 ballot, which was approved by the voters to authorize charitable raffles in California, provided that at least 90% of the gross receipts from the raffle go directly to beneficial or charitable purposes, as defined.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
SUPPORT:
Anaheim Ducks Foundation
Anaheim Ducks Hockey Club
Anaheim Ducks Learn to Play
Anaheim Ducks S.C.O.R.E.
Bay Area Outreach & Recreation Program
Center for Youth Wellness
CHOC Children’s Hospital
CHOC at Mission
Concord Junior Giants
Concord PAL group
Counseling and Support Services for Youth
Good Tidings Foundation
Jacob’s Heart Children’s Cancer Support Services
La Casa de las Madres
LAFC Foundation
Lodi Junior Giants
Los Angeles Dodgers
Los Angeles Football Club
Los Angeles Rams
Los Molinos Junior Giants
Loved Twice
Okizu
Oakland Athletics
Oakland Athletics Community Fund
O’Neill Sea Odyssey
Padres Foundation
Police Activities League
Project GRAD Los Angeles
Sacramento Kings
Sacramento Kings Foundation
Salinas Police Activities League
San Diego Gulls Hockey Club
San Diego Gulls Hockey Gulls Foundation
San Diego Padres
San Diego Padres Foundation
San Francisco 49ers
San Francisco 49ers Foundation
San Francisco Police Activities League
San Jose Sharks
San Jose Sharks Foundation
Team Impact
Tehama County Police Activities League
There With Care of the Bay Area
UNICEF
Until There’s a Cure Foundation
Valley Medical Center Foundation
OPPOSITION:
American GI Forum of California
AMVETS-Department of California
American Legion-Department of California
California Association of County Veterans Service Officers
California Tribal Business Alliance
California State Commanders Veterans Council
California Association of Nonprofits
Military Officers Association of America-California Council of Chapters
Pechanga Band of Luiseno Indians
Santa Ynez Band of Chumash Indians
Tribal Alliance of Sovereign Indian Nations
Yocha Dehe Wintun Nation
ARGUMENTS IN SUPPORT: According to Counseling and Support Services for Youth (CASSY), “our organization has found that 50/50 raffles have enabled us to broaden our reach in the Bay Area community and provided crucial funding for our program. CASSY provides mental health services to more than 4,000 at-risk youth in Santa Clara and San Mateo Counties. Our recent 50/50 grant allowed us to expand our services in East Palo Alto, providing an additional 500 youth with the security of comprehensive mental health services on their school campus.”
According to the 49ers Foundation, “these raffles, which have been successfully operating in California for the past three years, have raised millions of additional dollars for local charities. Our team has found that 50/50 raffles have enabled us to broaden our reach in the community and expand our partnerships with local charities and causes.”
ARGUMENTS IN OPPOSITION: According to the California Association of Nonprofits, “as we testified during legislative hearings in 2015, large-scale 50/50 raffles run a significant risk of eroding the public’s trust in nonprofit organizations. The 90/10 provisions that all other charities in California are governed by ensure that the primary purpose of any raffle is to provide benefit to nonprofit organizations. Large scale raffles with a 50/50 split move away from that primary purpose and put more of a focus on gambling to win a cash prize rather than on a benefit and donation to a nonprofit.”
The California Association of Nonprofits also argues that, “we have attempted to review the two sets of annual reports filed by the participating teams’ foundations. But many of the required annual reports appear to be incomplete, inaccurate, or missing altogether. As such, the public has no idea how much of the money is really going to charities, nor if communities received a benefit beyond the financial support that these foundations provided prior to implementing 50/50 raffle programs.”
Date of Hearing: January 18, 2018
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez Fletcher, Chair
ABPCA Bill Id:AB 888
Author:(Low) – As Amended Ver:January 3, 2018
Policy Committee: | Business and Professions | Vote: | 15 - 0 |
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Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill enacts minor changes to statutes governing the Board of Vocational Nursing and Psychiatric Technicians (BVNPT), including requiring the board to delegate authority to issue default decisions and stipulated surrenders of licenses to its executive officer.
FISCAL EFFECT:
Negligible fiscal effect; this bill may result in minor administrative cost savings.
COMMENTS:
- Purpose. This bill is sponsored by the author and is intended to build upon last year’s Sunset Review bill for the BVNPT. It implements a recommendation from the board's administrative and enforcement program monitor to handle certain administrative issues in a more streamlined way.
- Background. The BVNPT is responsible for administering the laws related to the education, practice and discipline of over 120,000 Licensed Vocational Nurses (LVNs) and 11,000 Psychiatric Technicians (PTs). Persistent administrative and enforcement performance issues have been noted, and subsequent to the 2015 sunset review, a program monitor was placed at the board.
Default decisions are straightforward cases in which a licensee or respondent does not respond to a disciplinary notice or action within the required timeframe. Board members are currently required to review and approve staff recommendations related to these cases, even though the recommendation and the approval are purely ministerial functions requiring no true discretion. However, the BVNPT notes it does not currently have statutory authority to delegate the approval—this bill grants that authority. The board already delegates the approval of stipulated surrenders of licenses, via regulation; this bill specifies as much in statute.
Analysis Prepared by: Lisa Murawski / APPR. / (916) 319-2081
Date of Hearing:
ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS
Evan Low, Chair
ABPCA Bill Id:AB 888
Author:(Low) – As Amended Ver:January 3, 2018
SUBJECT: Board of Vocational Nursing and Psychiatric Technicians of the State of California.
SUMMARY: Requires the Board of Vocational Nursing and Psychiatric Technicians (BVNPT) to delegate the authority to issue default decisions and stipulated surrenders of licenses to its executive officer and corrects an erroneous cross reference.
EXISTING LAW:
- Establishes the BVNPT within the Department of Consumer Affairs (DCA) until January 1, 2018, to license and regulate licensed vocational nurses (LVNs) and psychiatic technicians (PTs) and administer the Vocational Nursing Practice Act and the Psychiatric Technicians Law. (Business and Professions Code (BPC) §§ 2840-2895.5 and §§ 4500-4548)
- Requires the BVNPT to discipline a licensee whose default has been entered or whose case has been heard by the BVNPT and was found guilty. (BPC § 2876)
- Requires the DCA Director to appoint an administrative and enforcement program monitor to the BVNPT no later than March 1, 2016, and until March 1, 2018. (BPC § 2847.5)
FISCAL EFFECT: Unknown. This bill is keyed fiscal by the Legislative Counsel.
COMMENTS:
Purpose. This bill is sponsored by the author and is intended to build upon last year’s Sunset Review bill for the BVNPT. Default decisions are straightforward cases in which a licensee or respondent does not respond to a disciplinary notice or action within the required timeframe. Currently, the BVNPT staff reviews these cases to determine whether they meet the criteria for a default and then mail them to the BVNPT members. The BVNPT members then approve the recommendation and mail them back. Because the BVNPT staff do not exercise discretion when deciding whether to submit a default decision to the BVNPT members (the respondent is either in default or is not), the BVNPT members never disapprove them. The BVNPT notes that it does not currently have statutory authority to delegate the approval—this bill grants that authority.
Background. The BVNPT is responsible for administering the laws related to the education, practice and discipline of Licensed Vocational Nurses (LVNs) and Psychiatric Technicians (PTs). The BVNPT regulates over 120,000 LVNs and 11,000 PTs, the largest groups of LVNs and PTs in the nation.
Sunset Review 2015-2017. Each year, the Assembly Business and Professions Committee and Senate Business, Professions and Economic Development Committee (Committees) conduct joint oversight hearings of various licensing entities under the DCA. Primary concerns for the 2017 Joint Sunrise Review Hearing for the BVNPT were related to poor enforcement timelines and administrative inefficiencies. Due to these issues, which have persisted since the BVNPT’s 2015 Sunset Review, an administrative and enforcement program monitor was placed at the BVNPT in 2016.
In 2017, the monitor noted that one of the improvements that could be made is to delegate the authority to approve default decisions and stipulated settlements to the BVNPT’s executive officer. Currently, there are five other healing arts boards that delegate the authority to approve default decisions to the executive officer (the Medical Board of California, the Osteopathic Medical Board, the Naturopathic Medicine Committee, the Board of Podiatric Medicine, and the Speech Language Pathology and Audiology and Hearing Aid Dispensers Board).
Using language consistent with the Medical Practice Act, this bill requires the BVNPT to delegate the authority to approve of default decisions and stipulated surrenders to its executive officer. While the BVNPT already delegates the authority to adopt stipulated surrender of licenses in regulation, this bill clarifies that authority, consistent with the Medical Board.
Prior Related Legislation. AB 1229 (Low), Chapter 586, Statutes of 2017 extended the operation of the BVNPT until January 1, 2021; authorized the Governor to appoint an executive officer until January 1, 2020; specified that, if the BVNPT becomes inoperative or is repealed, the director of the DCA is authorized to assume the duties of the BVNPT; required the BVNPT to submit specified reports to the Legislature until 2020; authorized the DCA director to evaluate the BVNPT’s licensing program; required BVNPT staff to meet periodically with the DCA’s Division of Investigation; and authorized the DCA director to determine the need for and to implement necessary changes to the BVNPT’s enforcement program.
SB 797 (Hill), Chapter 653, Statutes of 2017 would have required the BVNPT to delegate the authority to issue default decisions and stipulated surrenders of licenses to its executive officer allowed the BVNPT to sunset as of January 1, 2018. NOTE: SB 797 was substantially amended to address a different topic.
REGISTERED SUPPORT:
None on file.
REGISTERED OPPOSITION:
None on file.
Analysis Prepared by: Vincent Chee / B. & P. / (916) 319-3301
Discussed in Hearing
2MIN
Senate Floor
55SEC
Assembly Floor
1H
Senate Standing Committee on Appropriations
23MIN
Senate Standing Committee on Governmental Organization
21MIN
Assembly Standing Committee on Appropriations
Bill Author
