OLR Bill Analysis

HB 6323

AN ACT PERMITTING "FIFTY-FIFTY" COUPON GAMES AT CERTAIN ORGANIZATION FUNCTIONS AND ATHLETIC EVENTS.

SUMMARY:

This bill authorizes the Division of Special Revenue (DSR) to issue a $ 50 special event, annual permit allowing qualified organizations to conduct “fifty-fifty” coupon games at organization functions and athletic events, subject to DSR regulation.   The state keeps $ 25 and the town gets $ 25 of the permit fee. A “fifty-fifty” game is one that pays cash prizes of 50% of game sales. A “qualified organization” is one authorized to conduct bazaars and raffles under existing law (see BACKGROUND).

The bill subjects the special event permit and games to the same standards governing the conduct of fifty-fifty games at bazaars under CGS § 7-185a. But it is unclear if the permit is subject to the standards governing the promotion and operation of fifty-fifty games under an existing bazaar permit under CGS § 7-172. Under this statute, only the sponsoring organization's qualified members age 18 or older may promote, operate, conduct, or work at bazaars or raffles (although centennial committees may use officially appointed volunteers age 18 or older).  And people under age 16 may not sell or promote raffle tickets (CGS § 7-172).

EFFECTIVE DATE:  Upon passage

FIFTY-FIFTY GAMES

Permit

Under existing law, which the bill does not change, qualified organizations may get up to two DSR permits per year to conduct fifty-fifty games at bazaars.  The permit is valid for 10 days and allows up to three scheduled drawings per day. It costs $ 20 for each day of the bazaar, $ 10 of which is retained by the state and $ 10 remitted to the municipality.

The bill establishes a $ 50 special event permit, which is valid for one year and allows up to three scheduled fifty-fifty drawings per day at organization functions or athletic events. The organization must apply for the permit on a DSR form.

Ticket Sales

The games must allow for the sale of fifty-fifty coupons at a predetermined uniform price. Each coupon must be consecutively numbered and have a correspondingly numbered stub. Coupons for each drawing must be a different color, and there must be only one prize for each drawing. The games are subject to DSR regulation.

Notice Requirement

The organization must post conspicuously, at each organization function or athletic event at which such games are conducted, a notice or notices which must include the dates, times, and places of any drawings, as well as the prices and colors of coupons for each drawing. The DSR executive director must prescribe the form of the notice, which must contain the following statement: “Holders of coupons must be present to claim a prize. ”

Accounting Procedures

The organization must (1) account for each coupon printed and sold for each drawing, (2) announce the amount of sales and the prize to be awarded immediately before each drawing, and (3) preserve all sold and unsold coupons or stubs for at least one year from the date of the required verified statement.

Reporting Requirement

The organization and any of its members who were in charge of such a game must furnish to the chief of police of the municipality or to the first selectman, as the case may be, a verified statement, prescribed by the DSR executive director, in duplicate, showing (1) the total number of coupons purchased and sold for each drawing, (2) the total number and amount of prizes awarded, (3) the names and addresses of prize winners, and (4) any other information that the executive director may reasonably require. The report must be certified, under penalty of false statement, by the three people designated in the permit application. It must be furnished during the month following each month that a game was conducted.

The municipal official must forward the original copy of the report to the executive director, who must keep it on file and available for public inspection for one year.

BACKGROUND

Organizations Qualified to Get Bazaar Permits

The law allows the following to conduct, operate, or sponsor bazaars or raffles if the town where they are located has adopted the Bazaar and Raffles Act: veterans, religious, civic, fraternal, educational, and charitable organizations; volunteer fire companies; political parties; and town committees. Raffles may also be promoted and conducted if they are sponsored by the town acting through a designated centennial, bicentennial, or other centennial celebration committee. To conduct a bazaar or raffle, an organization must have a local permit (CGS § 7-172).

COMMITTEE ACTION

Public Safety and Security Committee

Joint Favorable Change of Reference

Finance, Revenue and Bonding Committee

Joint Favorable