ASSEMBLY, No. 1605

STATE OF NEW JERSEY

217th LEGISLATURE

PRE-FILED FOR INTRODUCTION IN THE 2016 SESSION

 


 

Sponsored by:

Assemblyman SCOTT T. RUMANA

District 40 (Bergen, Essex, Morris and Passaic)

Assemblyman KEVIN J. ROONEY

District 40 (Bergen, Essex, Morris and Passaic)

 

 

 

 

SYNOPSIS

Makes various changes to law governing raffles; requires Legalized Games of Chance Control Commission to create online reporting system and develop single license for conducting multiple games.

 

CURRENT VERSION OF TEXT

Introduced Pending Technical Review by Legislative Counsel.


An Act concerning the conduct of certain charitable games, amending P.L.1954, c.5 and P.L.1996, c.36, and supplementing P.L.1954, c.7 (C.5:8-1 et seq.).

 

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

1. (New section) The Legalized Games of Chance Control Commission shall develop and establish through its Internet site a system for the electronic submission of application forms, registration forms, and reports required to be filed by an applicant organization and any entity licensed to conduct games of chance under the "Bingo Licensing Law," P.L.1954, c.6 (C.5:8-24 et seq.) or the "Raffles Licensing Law," P.L.1954, c.5 (C.5:8-50 et seq.). The use of the online application, registration, and reporting system required to be established pursuant to this section shall be voluntary for each applicant or licensed organization.

 

2. (New section) Notwithstanding the provisions of any other law, rule, or regulation to the contrary, the Legalized Games of Chance Control Commission shall develop a license application that would allow an eligible organization seeking to conduct multiple types of games to do so under a single license, to be valid for a number of such events. In developing the application, the commission shall solicit the input of municipalities that have adopted the provisions of the "Bingo Licensing Law," P.L.1954, c.6 (C.5:8-24 et seq.), the "Raffles Licensing Law," P.L.1954, c.5 (C.5:8-50 et seq.), or both, and shall also seek the input of organizations licensed to conduct multiple types of games.

 

3. Section 2 of P.L.1954, c.5 (C.5:8-51) is amended to read as follows:

2. a. It shall be lawful for the governing body of any municipality, at any time after this act shall become operative within such municipality and except when prohibited by this act, to license bona fide organizations or associations of veterans of any war in which the United States has been engaged, churches or religious congregations and religious organizations, charitable, educational and fraternal organizations, civic and service clubs, senior citizen associations and clubs, officially recognized volunteer fire companies, and officially recognized volunteer first aid or rescue squads, to hold and operate the specific kind of game or games of chance commonly known as a raffle or raffles played by drawing for prizes or the allotment of prizes by chance, by the selling of shares or tickets or rights to participate in such game or games and by conducting the game or games accordingly, when the entire net proceeds of such games of chance are to be devoted to educational, charitable, patriotic, religious or public-spirited uses, and in the case of organizations or associations of veterans, and senior citizen associations and clubs to the support of these organizations, and for any such organization or association, church, congregation, society, club, company or squad, when so licensed or without any license when and as hereinafter prescribed, to hold, operate and conduct such game of chance pursuant to this act and such license, in such municipality and to sell shares or tickets or rights to participate in such game or games of chance therein and in any other municipality which shall have adopted this act and under such conditions and regulations for the supervision and conduct thereof as shall be prescribed by rules and regulations duly adopted from time to time by the Legalized Games of Chance Control Commission, hereinafter designated as the control commission, not inconsistent with the provisions of this act, but only when the entire net proceeds thereof are devoted to the uses aforesaid and for any person or persons to participate in and play such games of chance conducted under any such license.

b. The control commission may adopt regulations authorizing licensees to hold events known as:

"armchair races" at which wagers are placed on the outcome of previously-filmed horse races and wagerers do not know the results in advance, when the prize awarded consists of merchandise or raffle tickets only, and not cash; and

"casino nights" at which players use chips or script purchased from the licensee to wager in games of chance known as blackjack, under/over, beat-the-dealer, chuck-a-luck, craps, roulette, bingo or similar games approved by the commission, when the chips or script are redeemable for merchandise or raffle tickets only, and not for cash.

The regulations shall establish the frequency with which these events may be held, the rules of the games, the specific type and value of prizes which may be offered, the qualifications of the individuals conducting the games and other requirements which the commission may deem pertinent.

c. No license shall be required for the holding, operating or conducting of a raffle for a door prize of donated merchandise of the value of less than [$50.00] $200 for which no extra charge is made at an assemblage at which no other game of chance is held, operated or conducted, if the proceeds of such assemblage are devoted to the uses described in this section.

d. No license shall be required for the holding, operating or conducting of a raffle for a prize of the value of less than $100 at an assemblage at which no other game of chance is held, operated or conducted, if the proceeds of such assemblage are devoted to the
uses described in this section.

(cf: P.L.2013, c.85, s.2)

 

4. Section 7 of P.L.1954, c.5 (C.5:8-56) is amended to read as follows:

7. Each license shall be in such form as shall be prescribed in the rules and regulations promulgated by the Control Commission and shall contain a description of the kind or kinds of game or games of chance authorized to be held, operated and conducted thereunder, a statement of the name and address of the licensee, of the names and addresses of the member or members of the applicant under whom such game or games of chance will be held, operated and conducted, of the number of times, or the hours during which, such game or games of chance are authorized to be conducted and the place or places where and the date or dates and time or times when, such game or games of chance are to be conducted and of the specific purposes to which the entire net proceeds of such game or games of chance are to be devoted, a statement of the value and character of the prizes authorized to be offered and given, the length of time the licensee shall retain sold and unsold raffle tickets, and any other information which may be required, by said rules and regulations, to be contained therein, and each license issued for the conduct of any game of chance shall be conspicuously displayed at the place where any game is to be conducted thereunder at all times during the conduct thereof.

(cf: P.L.1954, c.5, s.7)

 

5. Section 3 of P.L.1996, c.36 (C.5:8-63.1) is amended to read as follows:

3. The Legalized Games of Chance Control Commission shall promulgate regulations to govern the advertising of any game of chance occurring in any municipality in which the majority of voters voting therein have voted in favor of the adoption of the "Raffles Licensing Law," P.L.1954, c.5 (C.5:8-50 et seq.) and in which the game of chance is held, operated or conducted under any license issued by the control commission pursuant to the provisions of that act.

The regulations shall prohibit:

a. any advertisement from containing any false, deceptive, misleading or fraudulent statement regarding the holding, operation or conduct of a game of chance;

b. any advertisement from causing undue or unfair competition between organizations registered with the control commission that are holding competing games of chance; and

c. the use, to an extent deemed excessive, of the proceeds derived from the conduct of any individual game of chance for advertising subsequent games of chance.

The regulations promulgated by the commission pursuant to this section shall include guidelines for licensees to follow when advertising the conduct of raffle games and allowing the purchase of raffle tickets using an Internet fundraising tool. Such guidelines shall ensure that any Internet advertising and fundraising tool is in compliance with the provisions of the "Raffles Licensing Law," P.L.1954, c.5 (C.5:8-50 et seq.).

(cf: P.L.1996, c.36, s.3)

 

6. Section 15 of P.L.1954, c.5 (C.5:8-64) is amended to read as follows:

15. No later than the [15th] 60th day [of the calendar month immediately following a calendar month in which] following the date on which any such game of chance was held, operated or conducted, the organization, association, church, congregation, society, club, fire company, first-aid or rescue squad, or senior citizen association or club which held, operated or conducted the same and its member or members who were in charge thereof shall furnish to the control commission a duly verified statement showing the amount of the gross receipts derived from each such game of chance held, operated or conducted in the preceding month, which shall include receipts from the sale of shares, tickets or rights in any manner connected with participation in said game or the right to participate therein, each item of expense incurred or paid, and each item of expenditure made or to be made, name and address of each person to whom each such item has been or is to be paid, with a detailed description of the merchandise purchased or the services rendered therefor, the net profit derived from each such game of chance, and the uses to which such net profit has been or is to be applied and a list of prizes offered or given, with the respective values thereof and it shall be the duty of each licensee to maintain and keep such books and records as may be necessary to substantiate the particulars of each such report.

(cf: P.L.1994, c.63, s.20)

 

7. This act shall take effect immediately.

 

 

STATEMENT

 

This bill makes various changes to the law governing the licensing and conduct of raffles. This bill also requires the Legalized Games of Chance Control Commission to create an online application, registration, and reporting system to be used by licensed organizations that conduct bingo or raffle games, and to develop an application for a single license that would allow eligible organizations that conduct multiple games to do so under that single license.

Under the bill, the commission is directed to develop and establish through its Internet site a system for the electronic submission of application forms, registration forms, and reports required to be filed by an applicant organization and any entity licensed to conduct games of chance under the "Bingo Licensing Law" or the "Raffles Licensing Law. The use of the online application, registration, and reporting would be voluntary for each applicant or licensed organization.

The bill also directs the commission to develop a license application that would allow an eligible organization seeking to conduct multiple types of games to do so under a single license, to be valid for a number of such events. In developing the application, the commission would solicit the input of municipalities that have adopted the provisions of the "Bingo Licensing Law," the "Raffles Licensing Law," or both, and would also seek the input of organizations licensed to conduct multiple types of games.

Concerning the conduct of raffles, the bill:

(1) increases from $50 to $200 the value of the door prize of donated merchandise where no license is required;

(2) provides that no license is required for conducting an on-premise raffle for a prize of less than $100 retail value;

(3) requires that the length of time the licensee is required to retain sold and unsold raffle tickets must be specified on the license;

(4) directs the commission to promulgate guidelines for licensees to follow when advertising the conduct of raffle games and allowing the purchase of raffle tickets using an Internet fundraising tool, ensuring that any Internet advertising and fundraising tool is in compliance with the provisions of the "Raffles Licensing Law;" and

(5) extends the raffle game report due date to the 60th day following the date on which the raffle game was held.