820 Kar 1:050. Raffle Standards

Link to law: http://www.lrc.ky.gov/kar/820/001/050reg.htm
Published: 2015

PUBLIC PROTECTION CABINET

Department of Charitable Gaming

(Amendment)

 

      820 KAR 1:050. Raffle standards.

 

      RELATES

TO: KRS 238.545(3), 238.550(5)

      STATUTORY

AUTHORITY: KRS 238.515(2), (4), (9).

      NECESSITY,

FUNCTION, AND CONFORMITY: KRS 238.515(2) authorizes the Department[Office]

of Charitable Gaming to establish reasonable standards for the conduct of

charitable gaming and KRS 238.515(9) authorizes the department[office]

to promulgate administrative regulations necessary to implement KRS Chapter

238. This administrative regulation establishes standards for the construction

and distribution of raffle materials and for the conduct of raffles.

 

      Section

1. Raffle Ticket Construction. (1) Raffle tickets shall have a detachable

section or duplicate ticket and shall be consecutively numbered.

      (2)

The detachable section or duplicate of the ticket shall bear a duplicate

number corresponding to the number on the ticket and shall provide space for

the purchaser's name, complete address, and telephone number.

      (3)

The following information shall be printed on each ticket:

      (a)

The date and time for each drawing;

      (b)

The location of each drawing;

      (c)

The name of the charitable organization conducting the raffle;

      (d)

The charitable organization’s license number or exemption number, if any;

      (e)

The price of the ticket; and

      (f)

Each prize to be awarded with a fair market value over $500.

      (4)

The requirements of subsections (2) and (3) of this section shall be waived if:

      (a)

The raffle tickets sell for one (1) dollar[$1] or less;

      (b)

The raffle sales are initiated and concluded and all winners are selected at a

special charity fundraising event; or

      (c)

The raffle sales are initiated and concluded and all winners are selected at

licensed special limited charity games.

 

      Section

2. Raffle Prizes. (1) A charitable organization conducting a raffle in which

real or personal property prizes are to be awarded shall be responsible for the

transfer and delivery of the prize without lien or interest of others.

      (2)

All raffle prizes shall be awarded as indicated on the raffle ticket unless the

event at which the raffle was to be conducted is postponed. If the raffle is

postponed, all reasonable efforts shall be made to notify ticket holders of the

new drawing date.

 

      Section

3. Conduct of Raffles. (1) Any person holding a raffle ticket shall be

permitted to observe the raffle drawing.

      (2)

A person shall not be required to be present at a raffle drawing in order to be

eligible for the prize drawing.

      (3)

Each ticket seller shall return to the charitable organization the stubs or

other detachable sections or duplicates of all tickets sold prior to the

drawing, and all tickets that were not sold. If all sold tickets are not

returned or accounted for, the organization shall not conduct the raffle and

shall refund all raffle ticket purchases.

      (4)

Before drawing, the charitable organization shall place each stub or other

detachable section or duplicate of each ticket sold into a receptacle

from which the winning tickets are to be drawn. The receptacle shall be

designed so that each ticket placed in it has an equal chance to be drawn.

      (5)

If the winner is not present at the drawing, the organization shall notify the

winner by certified mail within seven (7) days of the drawing that the winner

shall claim the prize within thirty (30) days.

      (6)

If a winner does not wish to claim the prize but wishes to donate it to the

organization, the winner shall provide the organization a written statement

within the thirty (30) day period stating that the winner wishes to donate the

prize to the organization. A prize winner shall not donate the prize back to

the organization if to do so would violate KRS 238.540(7).

      (7)

If a raffle winner does not claim the prize or donate it to the organization

within thirty (30) days after having been contacted, the organization shall

notify the Department[Office] of Charitable Gaming and draw

another ticket in the presence of department[office] personnel.

      (8)

The requirements of subsections (5), (6), and (7) of this section shall be

waived, and the organization shall be allowed to draw tickets until a winner is

present if:

      (a)

The raffle tickets sell for one (1) dollar[$1] or less;

      (b)

The raffle sales are initiated and concluded and all winners are selected at a

licensed charity fundraising event; or

      (c)

The raffle sales are initiated and concluded and all winners are selected at a

licensed special limited charity fundraising event.

 

SCOTT

JONES, Commissioner

AMBROSE

WILSON IV, Secretary

      APPROVED

BY AGENCY: August12, 2015

      FILED

WITH LRC: August 14, 2015 at 11 a.m.

      PUBLIC

HEARING AND PUBLIC COMMENT PERIOD: A public hearing on this administrative

regulation shall be held on September 25, 2015 at 10:30 a.m., Eastern Time at

the Department of Charitable Gaming, 132 Brighton Park Boulevard, Frankfort,

Kentucky 40601. Individuals interested in being heard at this hearing shall notify

this agency in writing by five (5) workdays prior to the hearing of their

intent to attend. If no notification of intent to attend the hearing is

received by that date, the hearing may be canceled. This hearing is open to the

public. Any person who wishes to be heard will be given an opportunity to

comment on the proposed administrative regulation. A transcript of the public

hearing will not be made unless a written request for a transcript is made. If

you do not wish to be heard at the public hearing, you may submit written

comments on the proposed administrative regulation. Written comments shall be

accepted until the end of the calendar day on September 30, 2015. Send written

notification of intent to be heard at the public hearing or written comments on

the proposed administrative regulation to the contact person.

      CONTACT

PERSON: Noelle J. Bailey, General Counsel, Department of Charitable Gaming, 132

Brighton Park Boulevard, Frankfort, Kentucky 40601, phone (502) 573-5528, fax

(502) 573-6625.

 

REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT

 

Contact

person: Noelle J. Bailey

      (1)

Provide a brief summary of:

      (a)

What this administrative regulation does: This administrative regulation establishes standards for

the construction and distribution of raffle materials and for the conduct of

raffles.

      (b)

The necessity of this administrative regulation: This regulation is necessary

to establish a standardized procedure for conducting raffles.

      (c)

How this administrative regulation conforms to the content of the authorizing

statutes: The statutory authorities for this regulation are KRS 238.515(2),

(4), (9). KRS 238.515 (2), (4), and (9) set forth the powers of the department

to establish and enforce reasonable standards for the conduct of charitable

gaming and the operation of charitable gaming facilities; to establish

standards of accounting, recordkeeping, and reporting to insure charitable gaming

receipts are properly accounted for; and, to "promulgate administrative

regulations which are necessary to carry out the purposes and intent of [KRS

Chapter 238]." This regulation conforms as it establishes and enforces reasonable

standards for the conduct of a raffle.

      (d)

How this administrative regulation currently assists or will assist in the

effective administration of the statutes: This administrative regulation

facilitates effective administration of the statutes by providing standards for

the conduct of a raffle.

      (2)

If this is an amendment to an existing administrative regulation, provide a

brief summary of:

      (a)

How the amendment will change this existing administrative regulation: This amendment

allows for duplicate tickets instead of just detachable sections. It also

clarifies that all tickets must be accounted for before the raffle drawing can

take place. Finally, it corrects the improper use of "Office of Charitable

Gaming" by changing the language to "Department of Charitable Gaming."

Similarly the amendment corrects the improper labeling of the "Public

Protection Cabinet" as the "Environmental and Public Protection

Cabinet."

      (b)

The necessity of the amendment to this administrative regulation: This

amendment is necessary to account for a variety of ticket styles and to ensure

the integrity of a raffle by mandating the accounting of all raffle tickets and

requiring the return of all sold raffle tickets before a raffle drawing can

occur.

      (c)

How the amendment conforms to the content of the authorizing statutes: The statutory

authorities for this regulation are KRS 238.515(2), (4), (9). KRS 238.515 (2),

(4), and (9) set forth the powers of the department to establish and enforce

reasonable standards for the conduct of charitable gaming and the operation of

charitable gaming facilities; to establish standards of accounting, recordkeeping,

and reporting to insure charitable gaming receipts are properly accounted for;

and, to "promulgate administrative regulations which are necessary to

carry out the purposes and intent of [KRS Chapter 238]." This regulation

amendment clarifies and enforces the reasonable standards for the conduct of a

raffle.

      (d)

How the amendment will assist in the effective administration of the statutes: The

amendment ensures integrity of the raffle and allows more flexibility in ticket

style.

      (3)

List the type and number of individuals, businesses, organizations, or state

and local governments affected by this administrative regulation: This

amendment will only impact charitable organizations conducting raffles. There

are currently 603 licensed charitable organizations.

      (4)

Provide an analysis of how the entities identified in Question (3) above will

be impacted by either the implementation of this administrative regulation, if

new, or by the change, if it is an amendment, including:

      (a)

List the actions that each of the regulated entities identified in Question (3)

will have to take to comply with this administrative regulation or amendment:

The organizations will be required to account for all raffle tickets prior to a

raffle drawing. It also allows them more flexibility in ticket style.

      (b)

In complying with this administrative regulation or amendment, how much will it

cost each of the entities identified in Question (3): There should be not cost

associated with this amendment.

      (c)

As a result of compliance, what benefits will accrue to the entities identified

in Question (3): The charitable organizations will benefit by having more

flexibility in ticket style and increasing the integrity of their raffles.

      (5)

Provide an estimate of how much it will cost to implement this administrative

regulation:

      (a)

Initially: There will be no cost to implement this amendment to the

administrative regulation.

      (b)

On a continuing basis: There should be no additional cost on a continuing

basis.

      (6)

What is the source of the funding to be used in the implementation and

enforcement of this administrative regulation: There is no additional funding

necessary to implement this amendment to the administrative regulation. There

will be no additional funding necessary to enforce the provisions of the

amended regulation.

      (7)

Provide an assessment of whether an increase in fees or funding will be

necessary to implement this administrative regulation, if new, or by change, if

it is an amendment: There will be no increase in fees or funding necessary to

implement this amendment to the administrative regulation.

      (8)

State whether or not this administrative regulation establishes any fees or

directly or indirectly increases any fees: This amendment to the regulation

does not establish any new fees or directly or indirectly increase any fees.

      (9)

TIERING: Is tiering applied? No. Only licensed charitable organizations are

affected by this regulation and it applies equally to all.

 

FISCAL NOTE ON STATE AND LOCAL GOVERNMENT

 

      1.

What units, parts, or divisions of state or local government (including cities,

counties, fire departments, or school districts) will be impacted by this

administrative regulation? The Kentucky Department of Charitable Gaming as

implementer of this regulation.

      2.

Identify each state or federal statute or regulation that requires or

authorizes the action taken by the administrative regulation. KRS 238.515. KRS

238.505 also defines charitable gaming to include raffles.

      3.

Estimate the effect of this administrative regulation on the expenditures and

revenues of a state or local government agency (including cities, counties,

fire departments, or school districts) for the first full year the

administrative regulation is to be in effect. There should be no effect on the

expenditures or revenues of any government agency.

      (a)

How much revenue will this administrative regulation generate for the state or

local government (including cities, counties, fire departments, or school

districts) for the first year? The amendment to the regulation will not

generate revenue in the first year or in subsequent years.

      (b)

How much revenue will this administrative regulation generate for the state or

local government (including cities, counties, fire departments, or school

districts) for subsequent years? See response to (a) above.

      (c)

How much will it cost to administer this program this program for the first

year? It is not anticipated that that there will be any cost in administering

this regulation.

      (d)

How much will it cost to administer this program in subsequent years? See

response to (c) above.

      Note: If specific

dollar estimates cannot be determined, provide a brief narrative to explain the

fiscal impact of this administrative regulation.

      Revenues

(+/-): Not applicable; see response to (c) above.

      Expenditures

(+/-): Not applicable; see response to (c) above.

      Other

explanation: There should be no fiscal impact.
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