Bill Text: IN SB0252 | 2012 | Regular Session | Introduced
Bill Title: Charity gaming.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-01-04 - First reading: referred to Committee on Public Policy [SB0252 Detail]
Download: Indiana-2012-SB0252-Introduced.html
Citations Affected: IC 4-32.2.
Synopsis: Charity gaming. Adds a bona fide national foundation to the
types of organizations that may become qualified organizations for
purposes of the charity gaming laws. Defines a member of a bona fide
national foundation. Reduces the number of years that an organization
must exist in Indiana to become a qualified organization from five
years to three years. Provides that: (1) qualified organizations may
conduct raffles without obtaining a license; (2) unlicensed charity
gaming events are not considered allowable events; removing such
events from the application of the regulatory statutes governing
allowable events; and (3) the criminal laws concerning gambling do not
apply to participants in an unlicensed charity gaming event. Repeals
the single event raffle license and the annual raffle license. Makes
conforming changes.
Effective: July 1, 2012.
January 4, 2012, read first time and referred to Committee on Public Policy.
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or
A BILL FOR AN ACT to amend the Indiana Code concerning
gaming.
(1) to conduct unlicensed charity gaming events described in IC 4-32.2-4-3 and licensed allowable events; and
(2) to sell pull tabs, punchboards, and tip boards;
as a fundraising activity for lawful purposes of the organization.
any of the following events conducted under a license issued under IC 4-32.2-4 and by a qualified organization in accordance with this article and rules adopted by the commission under this article:
(1) A bingo event.
(2) A charity game night.
(3) A door prize drawing.
(4) A festival.
(5) A sale of pull tabs, punchboards, or tip boards.
(6) A gambling event licensed by the commission under IC 4-32.2-4-16.
(1) was founded before 1995;
(2) does not own real property in Indiana that is used to conduct charity gaming events;
(3) operates without profit to the organization's members;
(4) is exempt from taxation under Section 501 of the Internal Revenue Code;
(5) is related in both its mission and organization to a national organization founded before 1995 that is exempt from taxation under Section 501 of the Internal Revenue Code; and
(6) has provided grants to Indiana organizations in aggregate amounts that annually exceed fifty thousand dollars ($50,000) in each of the three (3) calendar years preceding the calendar year in which the organization submits a qualification application to become eligible to conduct charity gaming events under this article.
(b) Except as provided in subsection (c), the term does not include a candidate's committee (as defined in IC 3-5-2-7).
(c) For purposes of
(1) An individual entitled to membership in a qualified organization under the bylaws, articles of incorporation, charter, or rules of the qualified organization.
(2) A member of the qualified organization's auxiliary.
(3) In the case of a qualified organization that is a public or nonpublic school (as defined in IC 20-18-2-12), any of the following:
(A) A parent of a child enrolled in the school.
(B) A member of the school's parent organization.
(C) A member of the school's alumni association.
(D) An employee of the school.
(E) An officer of the school.
(F) A student enrolled in the school.
(4) A member of a qualified organization's board of directors or board of trustees.
(5) In the case of a qualified organization that is a bona fide national foundation, any of the following:
(A) An employee of the foundation.
(B) An employee of a related national organization.
(C) An Indiana resident who is:
(i) a member of a related national organization; and
(ii) designated as a member by the bona fide national foundation.
(D) An Indiana resident who is:
(i) a donor to the bona fide national foundation or a sponsor of a fundraising event conducted by the bona fide national foundation; and
(ii) designated as a member by the bona fide national foundation.
(1) A bona fide religious, educational, senior citizens, veterans, or civic organization operating in Indiana that:
(A) operates without profit to the organization's members;
(B) is exempt from taxation under Section 501 of the Internal
Revenue Code; and
(C) satisfies at least one (1) of the following requirements:
(i) The organization has been continuously in existence in
Indiana for at least five (5) three (3) years.
(ii) The organization is affiliated with a parent organization
that has been in existence in Indiana for at least five (5)
three (3) years.
(iii) The organization has reorganized and is continuing its
mission under a new name on file with the Indiana secretary
of state and with a new tax identification number after
having satisfied the requirements set forth in either item (i)
or (ii).
(2) A bona fide political organization operating in Indiana that
produces exempt function income (as defined in Section 527 of
the Internal Revenue Code).
(3) A state educational institution (as defined in IC 21-7-13-32).
(4) A bona fide national foundation.
(b) For purposes of IC 4-32.2-4-3, a "qualified organization"
includes the following:
(1) A hospital licensed under IC 16-21.
(2) A health facility licensed under IC 16-28.
(3) A psychiatric facility licensed under IC 12-25.
(4) An organization defined in subsection (a).
(c) For purposes of IC 4-32.2-4-10, a "qualified organization"
includes a bona fide business organization.
(d) Evidence that an organization satisfies subsection (a)(1)(C)(iii)
includes:
(1) evidence of the organization's continued use of a service mark
or trademarked logo associated with the organization's former
name;
(2) evidence of the continuity of the organization's activities as
shown in the federal income tax returns filed for the organization's
five (5) three (3) most recent taxable years;
(3) evidence of the continuity of the organization's activities as
shown by the five (5) three (3) most recent annual external
financial reviews of the organization prepared by a certified
public accountant; or
(4) any other information considered sufficient by the
commission.
acting on behalf of a qualified organization that:
(1) receives no compensation from the qualified organization;
(2) sells tickets to an allowable event held under a license issued
under IC 4-32.2-4-8, IC 4-32.2-10, IC 4-32.2-4-10 or
IC 4-32.2-4-12 or a single event license issued under
IC 4-32.2-4-16; and
(3) does not assist the qualified organization in conducting the
allowable event in any other way.
(1) The estimated frequency of the planned
(2) The location or locations where the qualified organization plans to hold the
(3) The estimated value of all prizes awarded at each
(1) March 1 of each year.
(2) One (1) week before the qualified organization holds the first allowable event of the year.
records kept in compliance with this section.
(f) A qualified organization is not required to obtain a license to
conduct a raffle. The prize limits set forth in subsection (b) do not
apply to a raffle.
(b) Except as provided in subsection (c), the application must include the information that the commission requires, including the following:
(1) The name and address of the organization.
(2) The names and addresses of the officers of the organization.
(3) The type of event the organization proposes to conduct.
(4) The location where the organization will conduct the allowable event.
(5) The dates and times for the proposed allowable event.
(6) Sufficient facts relating to the organization or the organization's incorporation or founding to enable the commission to determine whether the organization is a qualified organization.
(7) The name of each proposed operator and sufficient facts relating to the proposed operator to enable the commission to determine whether the proposed operator is qualified to serve as an operator.
(8) A sworn statement signed by the presiding officer and secretary of the organization attesting to the eligibility of the organization for a license, including the nonprofit character of the organization.
(9) Any other information considered necessary by the commission.
(c) This subsection applies only to a qualified organization that conducts only one (1) allowable event in a calendar year. The commission may not require the inclusion in the qualified organization's application of the Social Security numbers of the workers who will participate in the qualified organization's proposed allowable event. A qualified organization that files an application described in this subsection must attach to the application a sworn statement signed by the presiding officer and secretary of the
organization attesting that:
(1) the workers who will participate in the qualified organization's
proposed allowable event are eligible to participate under this
article; and
(2) the organization has not conducted any other allowable events
in the calendar year.
SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 13. (a) A bingo license or special bingo license
may also authorize a qualified organization to conduct raffle events and
door prize drawings and sell pull tabs, punchboards, and tip boards at
the bingo event.
(b) A charity game night license may also authorize a qualified
organization to:
(1) conduct raffle events and door prize drawings; and
(2) sell pull tabs, punchboards, and tip boards;
at the charity game night.
(c) A raffle license or an annual raffle license may also authorize a
qualified organization to conduct door prize drawings and sell pull
tabs, punchboards, and tip boards at the raffle event.
(d) (c) A door prize license or an annual door prize license may also
authorize a qualified organization to conduct a raffle event and to sell
pull tabs, punchboards, and tip boards at the door prize event.
(e) (d) A PPT license may also authorize a qualified organization to
conduct on the premises described in section 16.5(b) of this chapter
winner take all drawings and other qualified drawings in the manner
required by IC 4-32.2-5-26.
(b) A candidate's committee may
(c) The following are subject to this chapter:
(1) A candidate's committee.
(2) A raffle event or door prize drawing conducted by a candidate's committee.
(d) The members of a candidate's committee may conduct an event under this section without meeting the requirements of this article concerning the membership of a qualified organization. A candidate's committee licensed under this section must remain in good standing with the election division or the county election board having jurisdiction over the committee.
JULY 1, 2012]: Sec. 1. IC 35-45-5 does not apply to a person who
conducts, participates in, or receives a prize in:
(1) a charity gaming event held under IC 4-32.2-4-3; or
(2) an allowable event.
(b) Except as provided in
(c) A qualified organization may conduct one (1) additional festival event during each six (6) months of a calendar year.
(1) the qualified organization's total gross revenue from allowable events in the preceding year; minus
(2) the sum of any amounts deducted under IC 4-32.2-5-3(b)(5) in the preceding year.
(b) This subsection applies only to the renewal of a license issued under IC 4-32.2-4-6, IC 4-32.2-4-7,
(1) the qualified organization's total gross revenue from the preceding event; minus
(2) any amount deducted under IC 4-32.2-5-3(b)(5) for the preceding event.
(c) The license fee that is charged to a qualified organization that renews a license is equal to the amount determined according to the following schedule using the adjusted gross revenue of the qualified organization as specified by subsection (a) or (b), as applicable:
Class Adjusted Gross Revenues Fee
At Least But Less Than
A $ 0 $ 15,000 $ 50
B $ 15,000 $ 25,000 $ 100
C $ 25,000 $ 50,000 $ 300
D $ 50,000 $ 75,000 $ 400
E $ 75,000 $ 100,000 $ 700
F $ 100,000 $ 150,000 $ 1,000
G $ 150,000 $ 200,000 $ 1,500
H $ 200,000 $ 250,000 $ 1,800
I $ 250,000 $ 300,000 $ 2,500
J $ 300,000 $ 400,000 $ 3,250
K $ 400,000 $ 500,000 $ 5,000
L $ 500,000 $ 750,000 $ 6,750
M $ 750,000 $ 1,000,000 $ 9,000
N $ 1,000,000 $ 1,250,000 $ 11,000
O $ 1,250,000 $ 1,500,000 $ 13,000
P $ 1,500,000 $ 1,750,000 $ 15,000
Q $ 1,750,000 $ 2,000,000 $ 17,000
R $ 2,000,000 $ 2,250,000 $ 19,000
S $ 2,250,000 $ 2,500,000 $ 21,000
T $ 2,500,000 $ 3,000,000 $ 24,000
U $ 3,000,000 $ 26,000
