HP1068, LD 1456, item 1, An Act To Amend the Laws Governing Raffles

An Act To Amend the Laws Governing Raffles

Be it enacted by the People of the State of Maine as follows:

Sec. 1. 7 MRSA §3972, sub-§4, as amended by PL 2017, c. 284, Pt. KKKKK, §1, is further amended to read:

4. Exception. Notwithstanding subsection 1, paragraph C, livestock may be raffled by charitable organizations in accordance with Title 17, section 1837-A 1837-B for fund-raising purposes. For the purposes of this section, "charitable organization" has the same meaning as defined in Title 9, section 5003, subsection 1. Proceeds from a raffle under this subsection must be used for charitable purposes.

The animal must be awarded in freezer-ready form.

Sec. 2. 17 MRSA §314-A, sub-§1, ¶B, as amended by PL 2017, c. 284, Pt. KKKKK, §2, is further amended to read:

B. In conjunction with the operation of high-stakes beano, federally recognized Indian tribes holding a license under this section may advertise and offer prizes for attendance with a value of up to $25,000 under the terms prescribed for raffles in section 1837-A 1837-B. Any prize awarded under this paragraph may be awarded only on the basis of a ticket of admission to the high-stakes beano game and may only be awarded to a person who holds an admission ticket.

Sec. 3. 17 MRSA §314-A, sub-§2-A, as amended by PL 2017, c. 284, Pt. KKKKK, §3, is further amended to read:

2-A. Attendance prizes. In conjunction with the operation of high-stakes beano, a federally recognized Indian tribe holding a license under this section may advertise and offer prizes for attendance with a value of up to $25,000 under the terms prescribed for raffles in section 1837-A 1837-B. A prize awarded under this subsection may be awarded only on the basis of a ticket of admission to the high-stakes beano game and may be awarded only to a person who holds an admission ticket.

Sec. 4. 17 MRSA §1832, sub-§2-A, as enacted by PL 2017, c. 284, Pt. KKKKK, §15, is amended to read:

2-A. Registration. The Gambling Control Unit may accept a registration from an eligible organization described in subsection 2 and other persons as specifically provided under section 1835-A , and section 1836, subsection 4-B and section 1837-A to conduct games of chance , raffles and charitable cribbage tournaments. An eligible organization or person seeking to register to conduct a game of chance , raffle or charitable cribbage tournament shall register in the manner prescribed by the Gambling Control Unit and shall maintain records and reports in the same manner as described under section 1839, except that disposition of funds reports are not required to be submitted to the Gambling Control Unit but must be maintained in the same manner as other records.

Sec. 5. 17 MRSA §1835-A, sub-§§4 and 5, as enacted by PL 2017, c. 284, Pt. KKKKK, §18, are amended to read:

4. Persons under 18 years of age; exception. Except as provided in section 1837-A, a A registrant, game owner or operator may not permit a person under 18 years of age to take part in a game of chance. Notwithstanding any rule to the contrary, upon receiving an application on a form provided by the Gambling Control Unit and a determination by the director that a game of chance licensed to be conducted at a festival-style event is designed to attract players under 18 years of age and awards a nonmonetary prize valued at less than $10 for every chance played, the Gambling Control Unit may permit:

A. Persons under 18 years of age to conduct or operate the game of chance; and

B. Persons under 18 years of age to play the game of chance without being accompanied by an adult.

Nothing in this subsection permits games of chance to be operated without being registered with the Gambling Control Unit.

5. Location. A registration for a game of chance must specify the location where the organization may operate the game. A registrant may not operate games of chance in more than one location at the same time.

A. An agricultural society or a bona fide nonprofit organization may operate a game of chance on the grounds of an agricultural society and during the annual fair of the agricultural society.

B. No more than one registrant may operate a game of chance at a time on the same premises. In any room where a registered game of chance is being conducted, there must be at least one member of the organization registered to conduct games of chance present in that room for every 2 nonmembers who are present. That member must have been a member of the registered organization for at least one year. A member of the organization registered to conduct games of chance, either directly or through another member or guest, may not stake or risk something of value in the registrant's game of chance unless the member has been a member of the organization registered to conduct games of chance for at least 14 days not including the day of admission into membership.

A bona fide nonprofit organization may operate a registered game of chance to which the general public has access once every 3 months for a period not to exceed 3 consecutive days. The game of chance may be operated at any location described in the organization's registration and may be conducted only by members of the registrant. This subsection does not apply to raffles conducted in accordance with section 1837-A 1837-B.

Sec. 6. 17 MRSA §1837-A, as amended by PL 2017, c. 365, §1, is repealed.

Sec. 7. 17 MRSA §1837-B is enacted to read:

§ 1837-B. Raffles

1. Raffles with prizes of $10,000 or less. Notwithstanding section 1832, subsection 1, a license to conduct or operate a raffle in which the holder of the winning chance does not receive something of value worth more than $10,000 is not required of the following:

A. Any agricultural society or any bona fide nonprofit organization that is charitable, educational, political, civic, recreational, fraternal, patriotic or religious or any auxiliary of such an organization;

B. Any volunteer police force, fire department or ambulance corps;

C. Any class or organization of an elementary, secondary or postsecondary educational institution operated or accredited by the State; or

D. Any state agency that conducts or operates a raffle for a donated item to benefit fish and wildlife conservation projects.

Any exempt organization, department or class or combination of these listed in paragraph A, B, C or D may sponsor, operate and conduct a raffle without a license only for the exclusive benefit of that organization, department or class or combination of these, and that raffle may be conducted only by duly authorized members of the sponsoring organization, department or class or combination of these.

A state agency may not conduct or operate more than 2 raffles per year pursuant to paragraph D.

2. Special raffles; prizes more than $10,000 but not more than $75,000. The following provisions apply to special raffles licensed under this subsection.

A. The Gambling Control Unit may issue one special raffle license per year to any organization, department or class eligible to hold a raffle under subsection 1. The special raffle license entitles the licensee to hold one raffle in which the holder of a winning chance receives something of value worth more than $10,000 but not more than $75,000. A raffle licensed under this paragraph may be structured as a progressive raffle that is divided into a maximum of 12 multiple drawings with previous entries rolled into subsequent drawing pots and with the final drawing to be held within 12 months of the first. Drawings must be used to randomly select a smaller group to be eligible for the final prize to be awarded after the final drawing.

B. The Gambling Control Unit may not issue a license under this subsection to hold a raffle in which the holder of a winning chance receives a cash prize worth more than $10,000.

C. All tickets sold pursuant to a special raffle license must be purchased from a licensed distributor or licensed printer. Tickets must be sequentially numbered and have printed on their faces the following information: the name of the special raffle licensee; a description of the prize or prizes; the price of the ticket; and the date, time and place of the drawing. Any organization, department or class listed in subsection 1 that conducts a raffle under this section shall retain all unsold raffle tickets for 6 months after the raffle drawing and make those tickets available for inspection at the request of the Gambling Control Unit.

3. Charitable organizations; livestock raffling. A license is required before a charitable organization may raffle livestock for fund-raising purposes under Title 7, section 3972, subsection 4. The Commissioner of Agriculture, Conservation and Forestry or the commissioner's designee shall make forms available for charitable organizations to apply for licenses for one-year or 3-year periods. If the commissioner or the commissioner's designee is satisfied that the charitable organization has not violated or will not violate the restrictions of Title 7, section 3972, a license must be issued.

4. Raffle tickets sold by volunteers. Tickets for raffles licensed in accordance with this section may be sold by persons other than members of the licensed organization as long as the persons selling the tickets are uncompensated volunteers for the organization and the names of the volunteers who sell the tickets are provided to the Gambling Control Unit within 10 days of issuance of the raffle license.

Sec. 8. 17 MRSA §1840, sub-§2, as amended by PL 2017, c. 284, Pt. KKKKK, §28, is further amended to read:

2. Distributors licensed. A distributor may not sell, lease, market or otherwise distribute gambling apparatus or implements unless licensed by the Gambling Control Unit, except that a license is not required for the sale, marketing or distribution of raffle tickets when the holder of the winning chance receives something of value worth less than $10,000.

A nonresident manufacturer or distributor of gambling apparatus or implements doing business in the State must have an agent in this State who is licensed as a distributor. A distributor may not sell, market or otherwise distribute gambling apparatus or implements to a person or organization, except to persons or eligible organizations described under section 1832, subsection 2 licensed or registered to operate or conduct games under this chapter or registered licensed to conduct a special raffle under section 1837-A 1837-B, subsection 2 or eligible to conduct a raffle pursuant to section 1837-B, subsection 1. A distributor may not lease or loan or otherwise distribute free of charge any gambling apparatus or implements to an organization eligible to operate a game under this chapter, except that a distributor may lease gambling apparatus or implements to an agricultural society registered to operate games of chance on the grounds of the agricultural society and during the annual fair of the agricultural society as long as the distributor does not charge the agricultural society an amount in excess of 50% of the gross revenue from any game conducted under this chapter.

A licensee or registrant shall acquire gambling apparatus and implements from a distributor licensed under this section, unless the gambling apparatus or implements are printed, manufactured or constructed by the licensed organization. At no time may any licensee print, manufacture or construct any gambling apparatus or implements for distribution to any other licensee. The applicant for a distributor's license or, if the applicant is a firm, corporation, association or other organization, its resident manager, superintendent or official representative shall file an application with the Gambling Control Unit on a form provided by the Gambling Control Unit. The Gambling Control Unit shall furnish to each applicant a current copy of this chapter and the rules adopted under section 1843 and to each licensee a copy of any changes or additions to this chapter and the rules adopted under section 1843.

Sec. 9. 17 MRSA §2306, as amended by PL 2017, c. 284, Pt. KKKKK, §31, is further amended to read:

§ 2306. Exemptions; lotteries

Any person, firm, corporation, association or organization licensed or registered by the Gambling Control Unit as provided in chapter 62 or authorized to conduct a raffle without registering a license as provided in section 1837-A 1837-B, is exempt from the application of this chapter insofar as the possession of raffle tickets, gambling apparatus and implements of gambling that are permitted within the scope of the license or registration, and all persons are exempt from this chapter insofar as gambling or possession of raffle tickets is concerned, if the gambling and possession is in connection with a game of chance operated in accordance with chapter 62 or a raffle conducted without a registration license as authorized by section 1837-A 1837-B.

Sec. 10. 17-A MRSA §951, as amended by PL 2017, c. 284, Pt. KKKKK, §32, is further amended to read:

§ 951. Inapplicability of chapter

Any person licensed or registered by the Gambling Control Unit as provided in Title 17, chapter 13-A or chapter 62, or authorized to operate or conduct a raffle pursuant to Title 17, section 1837-A 1837-B, is exempt from the application of the provisions of this chapter insofar as that person's conduct is within the scope of the license or registration.

summary

This bill repeals the current law governing raffles and enacts new law based on the former Maine Revised Statutes, Title 17, section 1837, which was enacted by Public Law 2009, chapter 487, Part A, section 2 and took effect on July 12, 2010.

HP1068 LD 1456	Session - 129th Maine Legislature		LR 1094 Item 1
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