Senate Bill No. 241
(By Senators Chafin, Plymale, Ross and Anderson)
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[Introduced February 2, 1995; referred to the Committee
on the Judiciary; and then to the Committee on Finance.]
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A BILL to amend and reenact sections eleven and fifteen, article
twenty-one, chapter forty-seven of the code of West
Virginia, one thousand nine hundred thirty-one, as amended,
relating to increasing the allowable expenses for raffles
from fifteen percent to thirty percent; and decreasing the
prize allowance from eighty-five percent to seventy percent.
Be it enacted by the Legislature of West Virginia:
That sections eleven and fifteen, article twenty-one,
chapter forty-seven of the code of West Virginia, one thousand
nine hundred thirty-one, as amended, be amended and reenacted to
read as follows:
ARTICLE 21. CHARITABLE RAFFLES.
§47-21-11. Limits on prizes awarded -- General provisions.
During the period of a license, the total value of all
prizes awarded by a licensee shall not exceed in value
eighty-five seventy percent of the gross proceeds collected
during such period: Provided, That notwithstanding the foregoing
limitation, the total prizes awarded by a licensee, or in the
aggregate by two or more limited occasion licensees holding a
joint raffle occasion, for any raffle occasion held pursuant to
a limited occasion license, may not exceed in value seven
thousand five hundred dollars.
Prizes may be money, real or personal property or
merchandise other than beer, wine, spirits or alcoholic liquor as
defined in section five, article one, chapter sixty of this code.
If the prizes are real or personal property or merchandise, the
value assigned to them is their fair market value at the time of
acquisition for the raffle or at the time of purchase.
§47-21-15. Payment of reasonable expenses from proceeds; net
proceeds disbursement.
(a) The reasonable, necessary and actual expenses incurred
in connection with the conduct of raffle occasions, not to exceed
fifteen thirty percent of the gross proceeds collected during a
license period, may be paid out of the gross proceeds of the conduct of raffle, including, but not limited to:
(1) Rent paid for the use of the premises: Provided, That
a copy of the rental agreement was filed with the raffle license
application with any modifications thereto to be filed within ten
days of being made;
(2) The cost of custodial services;
(3) The cost to the licensee organization for equipment and
supplies used to conduct the raffle occasion;
(4) The cost to the licensee organization for advertising
the raffle occasion;
(5) The cost of hiring security personnel, licensed pursuant
to the provisions of article eighteen, chapter thirty of this
code; and
(6) The cost of providing child care services to the raffle
patrons: Provided, That any proceeds received from the provision
of child care services shall be handled the same as raffle
proceeds.
(b) The actual cost to the licensee for prizes, not to
exceed the amounts as specified in section eleven of this
article, may be paid out of the gross proceeds of the conduct of
raffle.
(c) The cost of any refreshments, souvenirs or any other
item sold or otherwise provided through any concession to the
patrons may not be paid for out of the gross proceeds from the
raffle occasion. The licensee shall expend all net raffle
proceeds and any interest earned thereon for the charitable or
public service purposes stated in the application within one year
after the expiration of the license under which the raffle
occasions were conducted. A licensee which does not qualify as
a qualified recipient organization may apply to the commissioner
at the time it applies for a raffle license or as provided in
subsection (e) of this section for permission to apply any or all
of its net proceeds to directly support a charitable or public
service activity or endeavor which it sponsors.
(d) No gross proceeds from any raffle operation may be
devoted or in any manner used by any licensee or qualified
recipient organization for the construction, acquisition,
improvement, maintenance or repair of real or personal property
except that which is used exclusively for one or more charitable
or public service purposes or as provided in subdivision (3),
subsection (a) of this section.
(e) Any licensee which, in good faith, finds itself unable to comply with the requirements of the foregoing provisions of
this section shall apply to the commissioner for permission to
expend its net proceeds for one or more charitable or public
service purposes other than that stated in its license
application or for permission to expend its net proceeds later
than the one-year time period specified in this section. The
application shall be on a form furnished by the commissioner and
shall include the particulars of the requested changes and the
reasons for the changes. The application shall be filed no later
than sixty days before the end of the one-year period specified
in this section. In the case of an application to extend the
time in which the net proceeds are to be expended for a
charitable or public service purpose, the licensee shall file
such periodic reports with the commissioner as the commissioner
directs until the proceeds are so expended.
NOTE: The purpose of this bill is to increase the allowable
expenses for raffles from fifteen percent to thirty percent and
decrease the prize allowance from 85% to 70%.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.