Senate Bill 6190 — Fund-Raising Activities of Bona Fide Charitable Nonprofit Organizations (Washington, 2024)

Summary

Washington Senate Bill 6190 of the 2024 Regular Session (68th Legislature), by Senators Rivers and Schoesler and another senator, relating to requirements for fund-raising activities of bona fide charitable nonprofit organizations. The bill amends RCW 9.46.0311 and 9.46.070 and adds a new section to chapter 9.46 RCW. Section 1 amends the authorization for bona fide charitable or nonprofit organizations to conduct bingo games, raffles, sweepstakes and amusement games. Its last pages define specially selected and sweepstakes and require that the official rules for a sweepstakes disclose information. It was read the first time on 01/11/24 and referred to the Committee on Business, Financial Services, Gaming & Trade.

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Full text

     S-3626.2

                               SENATE BILL 6190


     State of Washington       68th Legislature         2024 Regular Session

     By Senators Rivers, Schoesler, and L. Wilson

     Read first time 01/11/24.       Referred   to   Committee   on   Business,
     Financial Services, Gaming & Trade.




 1       AN ACT Relating to requirements for fund-raising activities of
 2   bona fide charitable nonprofit organizations; amending RCW 9.46.0311
 3   and 9.46.070; and adding a new section to chapter 9.46 RCW.


 4   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:


 5       Sec. 1. RCW 9.46.0311 and 1987 c 4 s 26 are each amended to read
 6   as follows:
 7       The legislature hereby authorizes bona fide charitable or
 8   nonprofit organizations to conduct bingo games, raffles, sweepstakes,
 9   amusement games, and fund-raising events, and to utilize punchboards
10   and pull-tabs and to allow their premises and facilities to be used
11   by only members, their guests, and members of a chapter or unit
12   organized under the same state, regional, or national charter or
13   constitution, to play social card games authorized by the commission,
14   when licensed, conducted, or operated ((pursuant to the provisions
15   of)) under this chapter and rules ((and regulations)) adopted
16   ((pursuant thereto)) under this chapter.


17       Sec. 2. RCW 9.46.070 and 2020 c 127 s 3 are each amended to read
18   as follows:
19       The commission shall have the following powers and duties:


                                     p. 1                               SB 6190
 1       (1) To authorize and issue licenses for a period not to exceed
 2   one year to bona fide charitable or nonprofit organizations approved
 3   by the commission meeting the requirements of this chapter and any
 4   rules ((and regulations)) adopted ((pursuant thereto)) under this
 5   chapter permitting said organizations to conduct bingo games,
 6   raffles, sweepstakes, amusement games, and social card games, to
 7   utilize punchboards and pull-tabs in accordance with ((the provisions
 8   of)) this chapter and any rules ((and regulations)) adopted
 9   ((pursuant thereto)) under this chapter, and to revoke or suspend
10   said licenses for violation of ((any provisions of)) this chapter or
11   any rules ((and regulations)) adopted ((pursuant thereto: PROVIDED,
12   That)) under this chapter. However, the commission shall not deny a
13   license to an otherwise qualified applicant in an effort to limit the
14   number of licenses to be issued((: PROVIDED FURTHER, That the)). The
15   commission or director shall not issue, deny, suspend, or revoke any
16   license because of considerations of race, sex, creed, color, or
17   national origin((: AND PROVIDED FURTHER, That the commission)) and
18   may authorize the director to temporarily issue or suspend licenses
19   subject to final action by the commission;
20       (2) To authorize and issue licenses for a period not to exceed
21   one year to any person, association, or organization operating a
22   business primarily engaged in the selling of items of food or drink
23   for consumption on the premises, approved by the commission meeting
24   the requirements of this chapter and any rules ((and regulations))
25   adopted ((pursuant thereto)) under this chapter permitting said
26   person, association, or organization to utilize punchboards and pull-
27   tabs and to conduct social card games as a commercial stimulant in
28   accordance with ((the provisions of)) this chapter and any rules
29   ((and regulations)) adopted ((pursuant thereto)) under this chapter
30   and to revoke or suspend said licenses for violation of any
31   provisions of this chapter and any rules ((and regulations)) adopted
32   ((pursuant thereto: PROVIDED, That)) under this chapter. However, the
33   commission shall not deny a license to an otherwise qualified
34   applicant in an effort to limit the number of licenses to be
35   issued((: PROVIDED FURTHER, That the)). The commission may authorize
36   the director to temporarily issue or suspend licenses subject to
37   final action by the commission;
38       (3) To authorize and issue licenses for a period not to exceed
39   one year to any person, association, or organization approved by the
40   commission meeting the requirements of this chapter and meeting the
                                     p. 2                          SB 6190
 1   requirements of any rules ((and regulations)) adopted by the
 2   commission pursuant to this chapter ((as now or hereafter amended)),
 3   permitting said person, association, or organization to conduct or
 4   operate amusement games in such manner and at such locations as the
 5   commission may determine. The commission may authorize the director
 6   to temporarily issue or suspend licenses subject to final action by
 7   the commission;
 8       (4) To authorize, require, and issue, for a period not to exceed
 9   one year, such licenses as the commission may by rule provide, to any
10   person, association, or organization to engage in the manufacturing,
11   selling, distributing, or otherwise supplying of devices, equipment,
12   software, hardware, or any gambling-related services for use within
13   this state for those activities authorized by this chapter. The
14   commission may authorize the director to temporarily issue or suspend
15   licenses subject to final action by the commission;
16       (5) To establish a schedule of annual license fees for carrying
17   on specific gambling activities upon the premises, and for such other
18   activities as may be licensed by the commission, which fees shall
19   provide to the commission not less than an amount of money adequate
20   to cover all costs incurred by the commission relative to licensing
21   under this chapter and the enforcement by the commission of ((the
22   provisions of)) this chapter and rules ((and regulations)) adopted
23   ((pursuant thereto: PROVIDED, That)) under this chapter. However, all
24   licensing fees shall be submitted with an application therefor and
25   such portion of said fee as the commission may determine, based upon
26   its cost of processing and investigation, shall be retained by the
27   commission upon the withdrawal or denial of any such license
28   application as its reasonable expense for processing the application
29   and investigation into the granting thereof((: PROVIDED FURTHER, That
30   if)). If, in a particular case, the basic license fee established by
31   the commission for a particular class of license is less than the
32   commission's   actual  expenses   to   investigate  that   particular
33   application, the commission may at any time charge to that applicant
34   such additional fees as are necessary to pay the commission for those
35   costs. The commission may decline to proceed with its investigation
36   and no license shall be issued until the commission has been fully
37   paid therefor by the applicant((: AND PROVIDED FURTHER, That the)).
38   The commission may establish fees for the furnishing by it to
39   licensees of identification stamps to be affixed to such devices and
40   equipment as required by the commission and for such other special
                                     p. 3                          SB 6190
 1   services or programs required or offered by the commission, the
 2   amount of each of these fees to be not less than is adequate to
 3   offset the cost to the commission of the stamps and of administering
 4   their dispersal to licensees or the cost of administering such other
 5   special services, requirements or programs;
 6       (6) To prescribe the manner and method of payment of taxes, fees,
 7   and penalties to be paid to or collected by the commission;
 8       (7) To require that applications for all licenses contain such
 9   information as may be required by the commission((: PROVIDED, That)).
10   However, all persons (a) having a managerial or ownership interest in
11   any gambling activity, or the building in which any gambling activity
12   occurs, or the equipment to be used for any gambling activity, (b)
13   participating as an employee in the operation of any gambling
14   activity, or (c) participating as an employee in the operation,
15   management, or providing of gambling-related services for sports
16   wagering, shall be listed on the application for the license and the
17   applicant shall certify on the application, under oath, that the
18   persons named on the application are all of the persons known to have
19   an interest in any gambling activity, building, or equipment by the
20   person making such application((: PROVIDED FURTHER, That the)). The
21   commission shall require fingerprinting and national criminal history
22   background checks on any persons seeking licenses, certifications, or
23   permits under this chapter or of any person holding an interest in
24   any gambling activity, building, or equipment to be used therefor, or
25   of any person participating as an employee in the operation of any
26   gambling activity. All national criminal history background checks
27   shall be conducted using fingerprints submitted to the United States
28   department of justice-federal bureau of investigation. The commission
29   must establish rules to delineate which persons named on the
30   application are subject to national criminal history background
31   checks. In identifying these persons, the commission must take into
32   consideration the nature, character, size, and scope of the gambling
33   activities requested by the persons making such applications;
34       (8) To require that any license holder maintain records as
35   directed by the commission and submit such reports as the commission
36   may deem necessary;
37       (9) To require that all income from bingo games, raffles, and
38   amusement games be recorded and reported as established by rule ((or
39   regulation)) of the commission to the extent deemed necessary by
40   considering the scope and character of the gambling activity in such
                                     p. 4                          SB 6190
 1   a manner that will disclose gross income from any gambling activity,
 2   amounts received from each player, the nature and value of prizes,
 3   and the fact of distributions of such prizes to the winners thereof;
 4       (10) To regulate and establish maximum limitations on income
 5   derived from bingo. In establishing limitations pursuant to this
 6   subsection the commission shall take into account: (a) ((the)) The
 7   nature, character, and scope of the activities of the licensee; (b)
 8   the source of all other income of the licensee; and (c) the
 9   percentage or extent to which income derived from bingo is used for
10   charitable, as distinguished from nonprofit, purposes. However, the
11   commission's powers and duties granted by this subsection are
12   discretionary and not mandatory;
13       (11) To regulate and establish the type and scope of and manner
14   of conducting the gambling activities authorized by this chapter,
15   including but not limited to, the extent of wager, money, or other
16   thing of value which may be wagered or contributed or won by a player
17   in any such activities;
18       (12) To regulate the collection of and the accounting for the fee
19   which may be imposed by an organization, corporation, or person
20   licensed to conduct a social card game on a person desiring to become
21   a player in a social card game in accordance with RCW 9.46.0282;
22       (13) To cooperate with and secure the cooperation of county,
23   city, and other local or state agencies in investigating any matter
24   within the scope of its duties and responsibilities;
25       (14) In accordance with RCW 9.46.080, to adopt ((such)) rules
26   ((and regulations as are deemed)) necessary to carry out ((the
27   purposes and provisions of)) this chapter. All rules ((and
28   regulations)) shall be adopted pursuant to the administrative
29   procedure act, chapter 34.05 RCW;
30       (15) To set forth for the perusal of counties, city-counties,
31   cities and towns, model ordinances by which any legislative authority
32   thereof may enter into the taxing of any gambling activity authorized
33   by this chapter;
34       (16)(a) To establish and regulate a maximum limit on salaries or
35   wages which may be paid to persons employed in connection with
36   activities   conducted   by   bona  fide   charitable   or   nonprofit
37   organizations and authorized by this chapter, where payment of such
38   persons is allowed, and to regulate and establish maximum limits for
39   other expenses in connection with such authorized activities,
40   including but not limited to rent or lease payments. However, the
                                     p. 5                          SB 6190
 1   commissioner's powers and duties granted by this subsection are
 2   discretionary and not mandatory.
 3       (b) In establishing these maximum limits the commission shall
 4   take into account the amount of income received, or expected to be
 5   received, from the class of activities to which the limits will apply
 6   and the amount of money the games could generate for authorized
 7   charitable or nonprofit purposes absent such expenses. The commission
 8   may also take into account, in its discretion, other factors,
 9   including but not limited to, the local prevailing wage scale and
10   whether charitable purposes are benefited by the activities;
11       (17) To authorize, require, and issue for a period not to exceed
12   one year such licenses or permits, for which the commission may by
13   rule provide, to any person to work for any operator of any gambling
14   activity authorized by this chapter in connection with that activity,
15   or any manufacturer, supplier, or distributor of devices for those
16   activities in connection with such business. The commission may
17   authorize the director to temporarily issue or suspend licenses
18   subject to final action by the commission. The commission shall not
19   require that persons working solely as volunteers in an authorized
20   activity conducted by a bona fide charitable or bona fide nonprofit
21   organization, who receive no compensation of any kind for any purpose
22   from that organization, and who have no managerial or supervisory
23   responsibility in connection with that activity, be licensed to do
24   such work. The commission may require that licensees employing such
25   unlicensed volunteers submit to the commission periodically a list of
26   the names, addresses, and dates of birth of the volunteers. If any
27   volunteer is not approved by the commission, the commission may
28   require that the licensee not allow that person to work in connection
29   with the licensed activity;
30       (18) To publish and make available at the office of the
31   commission or elsewhere to anyone requesting it a list of the
32   commission licensees, including the name, address, type of license,
33   and license number of each licensee;
34       (19) To establish guidelines for determining what constitutes
35   active membership in bona fide nonprofit or charitable organizations
36   for the purposes of this chapter;
37       (20) To renew the license of every person who applies for renewal
38   within six months after being honorably discharged, removed, or
39   released from active military service in the armed forces of the
40   United States upon payment of the renewal fee applicable to the
                                     p. 6                          SB 6190
 1   license period, if there is no cause for denial, suspension, or
 2   revocation of the license;
 3       (21) To authorize, require, and issue, for a period not to exceed
 4   one year, such licenses as the commission may by rule provide, to any
 5   person, association, or organization that engages in any sports
 6   wagering-related services for use within this state for sports
 7   wagering activities authorized by this chapter. The commission may
 8   authorize the director to temporarily issue or suspend licenses
 9   subject to final action by the commission;
10       (22) To issue licenses under subsections (1) through (4) of this
11   section that are valid for a period of up to ((eighteen)) 18 months,
12   if it chooses to do so, in order to transition to the use of the
13   business licensing services program through the department of
14   revenue; and
15       (23) To perform all other matters and things necessary to carry
16   out ((the purposes and provisions of)) this chapter.


17       NEW SECTION. Sec. 3. A new section is added to chapter 9.46 RCW
18   to read as follows:
19       (1) Bona fide charitable or nonprofit organizations authorized to
20   conduct activities under this chapter may sponsor or conduct
21   sweepstakes, subject to the following conditions:
22       (a) No entry fee may be charged to participate in a sweepstakes
23   authorized by this subsection.
24       (b) A bona fide charitable or nonprofit organization may ask for
25   a donation on the same sweepstakes entry form if the donation does
26   not increase the chances of winning and this is clearly stated next
27   to the donation request.
28       (c) Entry into or participation in a sweepstakes must be limited
29   to persons 18 years of age or older.
30       (d) Any sweepstakes offered in Washington must be open to all
31   residents of Washington.
32       (e) All permitted means of entry, including the use of electronic
33   or scanner codes, must clearly indicate that no purchase is required
34   to enter.
35       (f) All sweepstakes entries must provide the entrant with equal
36   odds of winning.
37       (g) Advertising of a sweepstakes must comply with the signage and
38   advertising restrictions contained in this chapter and any rules
39   adopted by the commission.
                                     p. 7                          SB 6190
 1       (h) This section does not authorize sweepstakes where consumers
 2   are entitled to an allotment or accumulation of points based on
 3   purchases made over a period of time that can be redeemed for prizes,
 4   things of value, or additional sweepstakes entries.
 5       (2) The following unfair acts or practices undertaken by, or
 6   omissions of, any bona fide charitable or nonprofit organization in
 7   the operation of any sweepstakes are prohibited and punishable under
 8   this chapter or under rules adopted by the commission:
 9       (a) Misrepresenting in any manner the odds of winning a prize;
10       (b) Misrepresenting in any manner the rules, terms, or conditions
11   of participation in a contest;
12       (c) Failing to clearly and conspicuously disclose with all
13   contest sweepstakes and with all promotional sweepstakes all of the
14   following:
15       (i) The maximum cost of any postage and handling fees that a
16   participant may be asked to pay to enter the sweepstakes;
17       (ii) The date or dates on or before which the contest will
18   terminate and upon which all prizes will be awarded; and
19       (iii) All rules, terms, and conditions of the contest;
20       (d) Failing to clearly and conspicuously disclose the exact
21   nature and approximate value of the prizes when offered;
22       (e) Failing to award and distribute all prizes of the value and
23   type represented;
24       (f) Falsely representing, directly or by implication, that the
25   number of participants has been significantly limited, or that a
26   particular person has been selected to win a prize;
27       (g) Representing, directly or by implication, that a particular
28   person has won any money, prize, thing, or other value in a contest
29   unless there has been a real contest in which at least a majority of
30   the participants have failed to win a prize, money, thing, or other
31   value;
32       (h) Representing, directly or by implication, that a particular
33   person has won any money, prize, thing, or other value without
34   disclosing the exact nature and approximate value of the item; or
35       (i) Failing to obtain the express written or oral consent of
36   individuals before their names are used for a promotional purpose in
37   connection with a mailing to a third person.
38       (3) Contestants must, clearly and conspicuously, be given the
39   opportunity to indicate if they wish to enter a phase of the contest
40   for free, except for reasonable postage and handling fees of up to
                                     p. 8                          SB 6190
 1   $1.50 plus the actual cost of postage. This must be clearly and
 2   conspicuously disclosed at the time of the initial contest
 3   solicitation and each time that the fee payment is required.
 4       (4) This section does not restrict lawful games licensed under
 5   this chapter or operations of the state lottery commission under
 6   chapter 67.70 RCW.
 7       (5)(a)   Solicitation  materials   containing  sweepstakes   entry
 8   materials must include a clear and conspicuous statement of the no
 9   purchase or payment necessary message, in readily understandable
10   terms, in the official rules included in those solicitation
11   materials. If the official rules do not appear on the solicitation
12   materials, they must appear on the entry-order device included in
13   those solicitation materials. The no purchase or payment necessary
14   message included in the official rules must be set out in a separate
15   paragraph and be printed in capital letters in contrasting typeface
16   that is the same size as the largest typeface used in the text of the
17   official rules.
18       (b) Sweepstakes entries not accompanied by a donation to a bona
19   fide charitable or nonprofit organization must be treated in the same
20   manner as entries that are accompanied by a request for a donation.
21       (c) Solicitation materials containing sweepstakes entry materials
22   or solicitation materials providing information regarding sweepstakes
23   may not represent that an entry in the promotional sweepstakes
24   accompanied by a donation to a bona fide charitable or bona fide
25   nonprofit organization will be eligible to receive additional prizes
26   or be more likely to win than an entry not accompanied by a request
27   for donation or that an entry not accompanied by a request for
28   donation will have a reduced chance of winning a prize in the
29   promotional sweepstakes.
30       (d) Solicitation materials containing sweepstakes entry materials
31   may not falsely represent that a person has been specially selected
32   in connection with a sweepstakes.
33       (e) Solicitation materials containing sweepstakes entry materials
34   or solicitation materials providing information regarding sweepstakes
35   may not falsely represent that the person receiving the solicitation
36   has received any special treatment or personal attention from the
37   bona fide charitable or nonprofit organization or any officer,
38   employee, or agent of the bona fide charitable or nonprofit
39   organization.


                                     p. 9                          SB 6190
 1       (f) Solicitation materials containing sweepstakes entry materials
 2   or solicitation materials providing information regarding sweepstakes
 3   shall not represent that a prize notice is urgent or otherwise convey
 4   an impression of urgency by use of description, phrasing on a mailing
 5   envelope, or similar method, unless there is a limited time period in
 6   which the recipient must take some action to claim, or be eligible to
 7   receive, a prize, and the date by which that action is required is
 8   clearly and conspicuously disclosed in the body of the solicitation
 9   materials.
10       (g) Solicitation materials containing sweepstakes entry materials
11   or solicitation materials providing information regarding sweepstakes
12   may not:
13       (i) Simulate or falsely represent that it is a document
14   authorized, issued, or approved by any court, official, or agency of
15   the United States or any state, or by any lawyer, law firm, or
16   insurance or brokerage company; or
17       (ii) Create a false impression as to its source, authorization,
18   or approval.
19       (6) The official rules for a sweepstakes must disclose
20   information about the date or dates the final winner or winners will
21   be determined.
22       (7) The definitions in this subsection apply throughout this
23   section unless the context clearly requires otherwise.
24       (a) "No purchase or payment necessary message" means the
25   following statement or a statement substantially similar to the
26   following statement: "No purchase or payment of any kind is necessary
27   to enter or win this sweepstakes."
28       (b) "Official rules" means the formal printed statement of the
29   rules for the promotional sweepstakes appearing in the solicitation
30   materials. The official rules must be prominently identified and all
31   references to the official rules in any solicitation materials must
32   use the designation for the official rules that appears in those
33   materials. Each sweepstakes solicitation must contain a copy of the
34   official rules.
35       (c) "Specially selected" means a representation that a person is
36   a winner, a finalist, in first place or tied for first place, or
37   otherwise among a limited group of persons with an enhanced
38   likelihood of receiving a prize.
39       (d) "Sweepstakes" means a procedure, activity, or event for the
40   distribution of anything of value by lot, chance, or random
                                     p. 10                         SB 6190
1   selection, where the odds for winning a prize are equal for each
2   entry.

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