HB4283sam003 93RD GENERAL ASSEMBLY

Sen. George P. Shadid

Filed: 5/6/2004

09300HB4283sam003 LRB093 18614 LRD 50655 a

AMENDMENT TO HOUSE BILL 4283

AMENDMENT NO. ______. Amend House Bill 4283, AS AMENDED, by replacing everything after the enacting clause with the following:

"Section 5. The Raffles Act is amended by adding Section 8.2 as follows:

(230 ILCS 15/8.2 new)

Sec. 8.2. Exemption for certain charitable institutions.

(a) A charitable institution is not subject to the licensing provisions of subsection (a) of Section 2, items (1), (2), (3), (4), and (5) of Section 3, and the restrictions on the conduct of raffles imposed under item (5) of Section 4 if (i) the charitable institution is organized and conducted on a not-for-profit basis with no personal profit inuring to anyone as a result of the operation of the institution and is exempt from federal income taxation under Section 501(c)(3), 501(c)(4), 501(c)(5), 501(c)(8), 501(c)(10), or 501(c)(19) of the Internal Revenue Code, (ii) the net proceeds from raffles conducted by the charitable institution under this Act are used by the organization for charitable, scientific, or educational purposes related to the charitable institution, and (iii) the charitable institution obtains a license from the Department of Revenue under subsection (b).

(b) The Department of Revenue shall, upon application therefor on forms prescribed by that Department, and upon the receipt of an annual license fee of $300, which shall be collected by the host county and from which $200 shall be retained by the host county and $100 shall be paid by the host county to the Department of Revenue, and upon receipt by the Department of Revenue of a written finding from the host county that the applicant is a charitable institution that meets the qualifications in items (i) and (ii) of subsection (a), issue a license authorizing the charitable institution to conduct raffles as provided in this Section. The Department of Revenue shall act on a license application within 30 days after the Department receives the application, fee, and written determination from the host county required under this subsection. A license issued under this subsection (b) shall be valid for one year. The Department of Revenue shall deposit the portion of the fees paid to it under this Section into the General Revenue Fund.

(c) All raffle tickets sold by a licensee under this Section must have the name of the host county, the name of the licensee, and the license number of the licensee printed on the ticket. A licensee under this Section may sell raffle tickets under this Section in any part of this State except (i) in any municipality that has adopted an ordinance prohibiting the conduct of raffles or the sale of raffle tickets within its boundaries or (ii) in any unincorporated portion of a county that has adopted an ordinance prohibiting the conduct of raffles or the sale of raffle tickets within the unincorporated portions within its boundaries. The Department of Revenue shall provide by rule for limitations upon (1) the aggregate retail value of all prizes or merchandise awarded by a licensee under this Section in a single raffle, (2) the maximum retail value of each prize awarded by a licensee under this Section in a single raffle, (3) the maximum price that may be charged for each raffle chance issued or sold under this Section, and (4) the maximum number of days during which chances may be issued or sold under this Section.

(d) Upon notification from the host county of a violation of this Act, the Department of Revenue may suspend or revoke licenses issued under this Section for any violation of this Act. The Department of Revenue shall adopt rules concerning the proper form and manner of the notification required under this subsection.

(e) For a charitable organization that conducts raffles under this Section, all references in Sections 5 and 6 of this Act to a licensing authority or a licensing unit of local government mean the host county.

(f) In addition to the requirements set forth in this Section, a charitable institution licensed by the Department of Revenue under this Section must meet all other requirements established by the Department by rule.

(g) A host county shall provide all information requested by the Department of Revenue concerning the conduct of raffles under this Section to the Department upon request by the Department.

(h) For the purpose of this Section, the term "host county" means the county in which the winning chance for a raffle conducted under a license issued under this Section is determined and the term "Department" means the Department of Revenue.

Section 99. Effective date. This Act takes effect upon becoming law.".