H. B. 4058
(By Delegate Givens )
[Introduced January 15, 1996; referred to the
Committee on the Judiciary.]
A BILL to amend and reenact section fifteen, article twenty; and
to amend and reenact section fifteen, article twenty-one,
all of chapter forty-seven of the code of West Virginia,
one thousand nine hundred thirty-one, as amended, relating
to charitable bingo and charitable raffles; and authorizing
the payment of operating expenses and repairs and
improvements to physical facilities by a qualified nonprofit
tax-exempt organization from the proceeds from bingo or
raffle operations.
Be it enacted by the Legislature of West Virginia:
That section fifteen, article twenty, and section fifteen,
article twenty-one, all of 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 20. CHARITABLE BINGO.
§47-20-15. Payment of reasonable expenses from proceeds; net
proceeds disbursement.
(a) The reasonable, necessary and actual expenses incurred
in connection with the conduct of bingo occasions, not to exceed
twenty-five percent of the gross proceeds collected during a
license period, may be paid out of the gross proceeds of the
conduct of bingo, 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 bingo license
application and any changes thereto were filed within ten days of
being made: Provided, however, That in no event may the rent
paid for the use of any premises exceed the fair market value of
rent for such premises;
(2) The cost of custodial services;
(3) The cost to the licensee organization for equipment and
supplies used to conduct the bingo occasion;
(4) The cost to the licensee organization for advertising
the bingo 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 bingo patrons: Provided, That any proceeds received from the provision
of child care services shall be handled the same as bingo
proceeds; and
(7) All qualified nonprofit tax exempt organizations that
own and maintain physical facilities which are used for
furtherance of their tax exempt objectives, are considered to be
qualified recipient organizations and may spend the net proceeds
from conduct of bingo operations to pay their operating expenses
and any repairs and improvements to the physical facilities owned
by those organizations, as well as for charitable and public
service programs.
(b) The actual cost to the licensee for prizes, not to
exceed the amounts as specified in section ten of this article,
may be paid out of the gross proceeds of the conduct of bingo.
(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
bingo occasion. The licensee shall expend all net bingo 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 bingo 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 bingo 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 bingo operation may be
devoted or in any manner used by any licensee or qualified
recipient organization for the construction or acquisition 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 this provision 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 the periodic reports with
the commissioner as the commissioner directs until the proceeds
are so expended.
ARTICLE 21. CHARITABLE RAFFLES.
§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
twenty-five 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: Provided, however, That in no event may the
rent paid for the use of any premises exceed the fair market
value of rent for such premises;
(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 ; and
(7) All qualified nonprofit tax exempt organizations that
own and maintain physical facilities which are used for
furtherance of their tax exempt objectives, are considered to be
qualified recipient organizations and may spend the net proceeds
from conduct of raffle operations to pay their operating expenses
and any repairs and improvements to the physical facilities owned
by those organizations, as well as for charitable and public
service programs.
(b) The actual cost to the licensee for prizes, not to
exceed the amounts as specified in section ten of this article,
may be paid out of the gross proceeds of the conduct of bingo.
(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
bingo occasion. The licensee shall expend all net bingo 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 bingo 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 bingo 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 bingo operation may be
devoted or in any manner used by any licensee or qualified
recipient organization for the construction or acquisition 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 this provision 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 the periodic reports with
the commissioner as the commissioner directs until the proceeds
are so expended.
NOTE: The purpose of this bill is to permit qualified
nonprofit tax exempt organizations to spend net proceeds from the
conduct of charitable bingo and raffle operations for operating
expenses, repairs and improvements to physical facilities owned
by the organization, as well as for charitable and public service
programs.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.