SENATE STATE GOVERNMENT COMMITTEE

 

STATEMENT TO

 

SENATE, No. 1762

 

with committee amendments

 

STATE OF NEW JERSEY

 

DATED: MARCH 3, 1997

 

      The Senate State Government Committee reports favorably and with committee amendments Senate, No. 1762.

      The purpose of this bill is to assist charitable, civic and service organizations, including volunteer fire companies, first-aid squads, church organizations, school groups, veterans' organizations and senior citizen clubs, in conducting raffles to raise funds for educational, charitable, patriotic, religious and public-spirited purposes.

      The bill would allow a qualified organization to conduct a Penny auction. A Penny auction is an event at which multiple items of merchandise are raffled by drawing a winning ticket from a container designated for each item. Players purchase tickets and place one or more tickets in the container designated for each item they wish to win.

      In addition, the bill directs the Legalized Games of Chance Commission to promulgate regulations allowing qualified organizations to: (1) offer as a raffle prize certain personal or professional services (or a gift certificate therefor) and gift certificates redeemable for live edible seafood; (2) offer a discount to any person purchasing two or more tickets for a draw raffle; and (3) use a big six wheel, a big eight wheel, or other wheel to determine the winner of a non-draw raffle. The bill would also allow persons under the age of 18 to: (1) play a non-draw raffle awarding a cash prize not in excess of $20; and (2) play an on-premises draw raffle, including a Penny auction, when any prize offered and awarded consists of merchandise only.

      Finally, the bill provides that the commission shall: (1) prepare, publish and make available to any qualified organization, upon request, a pamphlet which describes in plain and simple language the rights, duties and responsibilities of organizations conducting raffles and the exact manner in which games of chance are to be conducted; and (2) prior to initiating administrative action or bringing charges for a violation which relates to the conduct of games or the awarding of prizes, issue a verbal or written warning and offer the organization the opportunity to cease the conduct which constitutes a violation.

 

COMMITTEE AMENDMENTS

 

      The committee amended the bill to:

(1) substitute the term "Penny auction" for "Chinese auction;"

(2) eliminate a provision which would have allowed certain live animals to be offered as raffle prizes and provide, instead, that a gift certificate redeemable for live, edible seafood may be raffled;

(3) require the commission to allow use of a big six or any other wheel, in addition to a big eight wheel, to determine the winner of a non-draw raffle; and

(4) provide that the value of personal or professional services or of a gift certificate for live, edible seafood offered as a raffle prize shall be within the limits set by the commission for raffle prizes.