SLS 22RS-265 ENGROSSED 2022 Regular Session SENATE BILL NO. 386 BY SENATOR MILLIGAN CHARITABLE GAMING. Exempts certain charitable organizations conducting raffles from certain licensing and reporting requirements. (gov sig) 1 AN ACT 2 To amend and reenact R.S. 4:707(A)(1), (2) and (3), (B), (C), (E)(1), (2), (4) and (5), (F), 3 (G)(1), (H), and (I), and to repeal R.S. 4:707(J), relative to charitable raffles, bingo 4 and keno licensing; to provide for authorization to license certain organizations; to 5 provide for requirements for a state license; to provide for types of licenses; and to 6 provide for related matters. 7 Be it enacted by the Legislature of Louisiana: 8 Section 1. R.S. 4:707(A)(1), (2) and (3), (B), (C), (E)(1), (2), (4) and (5), (F), (G)(1), 9 (H), and (I) are hereby amended and reenacted to read as follows: 10 ยง707. Authorization to license certain organizations; exemption; requirement for 11 state license 12 A. The office may, consistent with the provisions of this Chapter, license 13 charitable organizations, as defined in R.S. 4:703(1), to hold and operate the 14 following specific games of chance: 15 (1) The game of chance commonly known as raffle or raffles, and as defined 16 by rules of the office, played by drawing for prizes or the allotment of prizes by 17 chance, by the selling of shares, tickets, or rights to participate in such game or Page 1 of 8 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 386 SLS 22RS-265 ENGROSSED 1 games, and by conducting the game or games accordingly. 2 (2) The game of chance commonly known as bingo or keno, and as defined 3 by rules of the office, played for prizes with cards bearing numbers or other 4 designations, five or more in one line, the holder covering numbers, as objects, 5 similarly numbered, are drawn from a receptacle, and the game being won by the 6 person who first covers a previously designated arrangement of numbers on such a 7 card. 8 (3) The game of chance commonly known as pull-tabs, and as defined by 9 rules of the office, played for prizes with cards or tickets and as defined in R.S. 10 4:725 or played as electronic pull-tabs as provided in R.S. 4:733. 11 * * * 12 B. In addition to the licensing required in Subsection A of this Section, the 13 governing authority of any municipality or parish may, consistent with the provisions 14 of this Chapter, license charitable organizations as defined in R.S. 4:703(1) to hold 15 and operate the following specific games of chance: 16 (1) The game of chance commonly known as raffle or raffles played by 17 drawing for prizes or the allotment of prizes by chance, by the selling of shares, 18 tickets, or rights to participate in such game or games, and by conducting the game 19 or games accordingly. 20 (2) The game of chance commonly known as bingo or keno played for prizes 21 with cards bearing numbers or other designations, five or more in one line, the holder 22 covering numbers, as objects, similarly numbered, are drawn from a receptacle, and 23 the game being won by the person who first covers a previously designated 24 arrangement of numbers on such a card. 25 (3) The game of chance commonly known as pull-tabs played for prizes with 26 cards or tickets, as defined in R.S. 4:725, or played as electronic pull-tabs as 27 provided in R.S. 4:733. 28 (4) Electronic video bingo as provided for in R.S. 4:724 and as defined by 29 rules of the office. Page 2 of 8 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 386 SLS 22RS-265 ENGROSSED 1 (5) Fund-raising events generally known as "Las Vegas Nights" or "Casino 2 Nights" as provided for in R.S. 4:729 and as defined by rules of the office. No 3 municipal or parish governing authority shall license any organization as 4 authorized in this Chapter until the organization has first obtained a charitable 5 gaming license from the office. If the organization has obtained a charitable 6 gaming license from the office as required by Subsection A of this Section and 7 R.S. 4:705, then the municipal or parish governing authority may license the 8 charitable organization to hold and operate only the specific games enumerated 9 in Subsection A of this Section. 10 C. Any such organization so licensed may sell shares, tickets, or rights to 11 participate in such games and may conduct the games accordingly when the entire 12 net proceeds of such games of chance are to be devoted to educational, charitable, 13 patriotic, religious, or public spirited uses, and when so licensed, may hold, operate, 14 and conduct such games of chance exclusively by its members pursuant to this 15 Chapter, except to the extent that the services of members of other bona fide licensed 16 organizations as enumerated in this Section are volunteered by their organization for 17 the sole purpose of selling shares, tickets, or rights in such games. Any such 18 organization so licensed may sell shares, tickets, or rights to participate in such game 19 or games of chance pursuant to rules and regulations for the supervision and conduct 20 thereof, as prescribed by the office and, when applicable, by the governing authority 21 of the municipality or parish not inconsistent with the provisions of this Chapter. 22 Further, any person or persons not currently working or scheduled to work a shift 23 for the organization sponsoring a game may participate in and play such games 24 of chance conducted under any license, except where prohibited by rule. 25 * * * 26 E. In addition to the provisions of R.S. 4:703, the following definitions shall 27 apply for the purposes of this Section: 28 (1) "Booster club" shall mean an organization which promotes and supports 29 the activities, functions, or programs of a public or a private nonprofit elementary or Page 3 of 8 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 386 SLS 22RS-265 ENGROSSED 1 secondary school in this state and which has been designated by the school board of 2 the parish or city in which such school is located its local governing authority to 3 collect funds in the name of that school with the entire net proceeds being devoted 4 to support the school's activities, functions, or programs. 5 (2) "Civic or service association" shall mean an organization domiciled in 6 this state which is operated for the purpose of promoting the social welfare or 7 providing service to the community and which has derived five thousand dollars or 8 less in gross receipts from its charitable games of chance during the prior calendar 9 year with the entire net proceeds being devoted to the stated charitable purpose 10 of the organization. 11 * * * 12 (4) "Parent-teacher association" shall mean an organization which is 13 comprised of teachers and parents of children enrolled in a public or a private 14 nonprofit elementary or secondary school in this state and which has been designated 15 by the school board of the parish or city in which such school is located its local 16 governing authority to collect funds in the name of that school with the entire net 17 proceeds being devoted to support the school's activities, functions, or 18 programs. 19 (5) "Public institution of higher education" includes every in-state public 20 graduate and undergraduate institution, public junior and community college, public 21 technical institute, and each separate school or department of the institution, college, 22 or institute when the entire net proceeds are devoted to support the institution 23 institution's activities, functions, or programs. 24 * * * 25 F.(1)(a) A bona fide senior citizen recreation club, upon application to the 26 municipality or parish, shall be exempt The following specific clubs, organizations, 27 groups, or associations may be eligible for a limited license that results in an 28 exemption from the licensing and reporting procedure enumerated in R.S. 4:708 29 through 716 of this Chapter in a municipality or parish whose governing authority Page 4 of 8 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 386 SLS 22RS-265 ENGROSSED 1 has decided to permit raffles, bingo, and keno within its limits as provided in R.S. 2 4:706.: 3 (b)(a) A "senior citizen recreation club" for the purpose of this Chapter shall 4 be defined as an organization which is sanctioned by the local council on aging and 5 composed of a group of persons sixty years of age or older whose only function is 6 to provide amusement and diversion for its members. 7 (2)(b) Any club, organization, group, or association which has a membership 8 comprised exclusively of children enrolled in a public or private nonprofit 9 elementary or secondary school in this state and which is approved to conduct 10 activities in such school by the principal of such school in accordance with school 11 board policy shall be exempt from the licensing and reporting procedures 12 enumerated in R.S. 4:708 through 716 of this Chapter in a municipality or parish 13 whose governing authority has decided to permit raffles, bingo, and keno within its 14 limits as provided in R.S. 4:706. Such club, organization, group, or association shall 15 be exempted from licensing and reporting procedures only for the conducting of 16 raffles as a means of fund-raising. has been designated by the local governing 17 authority of the school to collect funds in the name of the school with the entire 18 net proceeds being devoted to support the school's activities, functions, or 19 programs. 20 (3)(a)(c) A charitable organization, upon application to the municipality or 21 parish, shall be exempt from the licensing and reporting requirements provided in 22 R.S. 4:708 through 716 of this Chapter for the purpose of conducting a raffle as 23 defined in Paragraph (A)(1) of this Section in any municipality or parish the 24 governing authority of which has decided to permit raffles, bingo, and keno within 25 its limits as provided in R.S. 4:706, provided the municipality or parish finds, upon 26 such application, that the charitable organization is conducting such raffle for the 27 purpose of providing that provides support to any public or private nonprofit 28 elementary or secondary school in the municipality or parish or for other purposes 29 of community support with the entire net proceeds being devoted to support the Page 5 of 8 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 386 SLS 22RS-265 ENGROSSED 1 school's activities, functions, or programs. 2 (b)(d) A public institution of higher education licensed pursuant to this 3 Section shall be exempt from the licensing and reporting requirements provided in 4 R.S. 4:708 through 716 of this Chapter in any municipality or parish the governing 5 authority of which has decided to permit raffles, bingo, and keno within its limits and 6 may sell shares, tickets, or rights to participate in the authorized game known as 7 raffle and may conduct the game of raffle when the entire net proceeds of the games 8 of chance are devoted to supporting the institution. 9 (4)(e) Any bona fide conservation organization, which is recognized by the 10 Internal Revenue Service as 501(c)(3) corporation, dedicated principally to the 11 conservation of a specific species, genus, or family of game animal, including but 12 not limited to the conservation of ducks, waterfowl generally, quail, and turkeys 13 which is otherwise permitted by law to conduct charitable gaming shall be exempted 14 from the licensing and reporting procedures enumerated in R.S. 4:708 through 716 15 of this Chapter solely for conducting raffles as a means of fund-raising in a 16 municipality or parish whose governing authority has decided to permit raffles, 17 bingo, and keno within its limits as provided in R.S. 4:706 a body of water, area of 18 land, or environment. 19 (2) The limited license only authorizes the conducting of raffles. The 20 inclusion of any other charitable fundraising activities in addition to raffles will 21 require full licensing pursuant to this Chapter. 22 G. Notwithstanding any other provision of this Chapter to the contrary, no 23 municipal or parish governing authority shall license any organization as authorized 24 in this Chapter unless that organization has first obtained a charitable gaming license 25 from the office, as further provided in R.S. 4:705. 26 H.(1) No person or organization shall hold, operate, or conduct any game of 27 chance enumerated in Subsection A of this Section without obtaining a charitable 28 gaming license, a limited license, or a special charitable gaming license from the 29 office, as further provided in R.S. 4:718. Page 6 of 8 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 386 SLS 22RS-265 ENGROSSED 1 * * * 2 I.H. Nothing in this Chapter shall prohibit a charitable organization from 3 contributing to a qualified association of licensed charitable organizations as defined 4 by R.S. 4:703(10). Such an association shall not be subject to audit by the office 5 except as otherwise provided by law. 6 J. I. The governing authority of a municipality or parish may, by ordinance, 7 transfer regulatory authority over charitable gaming in that municipality or parish to 8 the office of charitable gaming. 9 Section 2. R.S. 4:707(J) is hereby repealed. 10 Section 3. This Act shall become effective upon signature by the governor or, if not 11 signed by the governor, upon expiration of the time for bills to become law without signature 12 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If 13 vetoed by the governor and subsequently approved by the legislature, this Act shall become 14 effective on the day following such approval. The original instrument was prepared by Alan Miller. The following digest, which does not constitute a part of the legislative instrument, was prepared by Dawn Romero Watson. DIGEST SB 386 Engrossed 2022 Regular Session Milligan Present law provides that in addition to the licensing required with office of charitable gaming (OCG), the local governing authority may license certain charitable organizations to hold and operate the following specific games of chance: (1)Raffles. (2)Bingo or Keno. (3)Pull-tabs. (4)Electronic video bingo. (5)Fundraising events generally known as "Las Vegas Nights" or "Casino Nights". Proposed law retains present law, but clarifies that the local governing authority license may be granted after the organization has first obtained a charitable gaming license from OCG, and only for the specific games enumerated in present law. Present law authorizes any persons to participate in and play such charitable games of chance conducted under any license. Proposed law limits present law to participation of any persons not currently working or Page 7 of 8 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 386 SLS 22RS-265 ENGROSSED scheduled to work a shift for the organization sponsoring a game, except where prohibited by OCG rule. Present law provides for definitions of charitable organizations eligible to participate and limits the type of organization to: (1)Booster clubs. (2)Civic or service associations. (3)Mardi Gras carnival associations. (4)Parent-teacher associations (PTAs). (5)Public institutions of higher education. (6)Volunteer fire companies. Proposed law retains present law, but adds the requirement that booster clubs, civic or service associations, PTAs, and public institutions that raise funds dedicate the entire net proceeds to support the school's activities, functions, or programs, or the organization's stated charitable purpose. Present law provides for an exemption from certain licensing and reporting procedures after the charitable organization has met all the criteria set forth in present law when holding a raffle. Proposed law retains the same exemptions for charitable organizations after meeting all the criteria set forth in present law, buts grants the organization a limited license solely for the purpose of conducting raffles. Present law provides for the definition of "bona fide conservation organization". Proposed law retains present law, but eliminates illustrative list of specific examples of bona fide conservation organizations. Proposed law authorizes the limited license only to authorization for the conducting of raffles. Effective upon signature of the governor or lapse of time for gubernatorial action. (Amends R.S. 4:707(A)(1), (2) and (3), (B), (C), (E)(1), (2), (4) and (5), (F), (G)(1), (H), and (I); repeals R.S. 4:707(J)) Summary of Amendments Adopted by Senate Committee Amendments Proposed by Senate Committee on Judiciary B to the original bill 1. Makes technical correction. Page 8 of 8 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions.