Fund-raising events

AN ACT Relating to requirements for fund-raising events of bona 1
fide charitable or nonprofit organizations; amending RCW 9.46.0277, 2
9.46.0315, 9.46.0321, 9.46.0323, and 9.46.356. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
Sec. 1. RCW 9.46.0277 and 2009 c 133 s 1 are each amended to 5
read as follows: 6
"Raffle," as used in this chapter, means a game in which tickets 7
bearing an individual number are sold for not more than ((one hundred 8
dollars)) $250 each and in which a prize or prizes are awarded on the 9
basis of a drawing from the tickets by the person or persons 10
conducting the game, when the game is conducted by a bona fide 11
charitable or nonprofit organization ((, no person other than a bona 12
fide member of the organization takes any part in the management or 13
operation of the game,)) and no part of the proceeds thereof inure to 14
the benefit of any person other than the organization conducting the 15
game. 16
Sec. 2. RCW 9.46.0315 and 2012 c 131 s 1 are each amended to 17
read as follows: 18
Bona fide charitable or bona fide nonprofit organizations 19
organized primarily for purposes other than the conduct of raffles ((, 20
S-0608.1
SENATE BILL 5443
State of Washington 69th Legislature 2025 Regular Session
By Senators Cortes, Nobles, and Shewmake
Read first time 01/23/25. Referred to Committee on Business,
Financial Services & Trade.
p. 1 SB 5443
are hereby authorized to )) may conduct raffles without obtaining a 1
license to do so from the commission when such raffles are held in 2
accordance with all other requirements of this chapter, other 3
applicable laws, and rules of the commission; and when gross revenues 4
from all such raffles held by the organization during the calendar 5
year do not exceed ((five thousand dollars )) $20,000; and when 6
tickets to such raffles are sold only to, and winners are determined 7
only from among, the regular members of the organization conducting 8
the raffle. The organization may provide unopened containers of 9
beverages containing alcohol as raffle prizes if the appropriate 10
permit has been obtained from the liquor ((control)) and cannabis 11
board((: PROVIDED, That )). However, raffles that exceed ((five 12
thousand dollars )) $20,000 may also be conducted ((pursuant to the 13
provisions of )) under this section if the organization obtains a 14
license from the commission: PROVIDED FURTHER, That the term members 15
for this purpose shall mean only those persons who have become 16
members prior to the commencement of the raffle and whose 17
qualification for membership was not dependent upon, or in any way 18
related to, the purchase of a ticket, or tickets, for such raffles.19
Sec. 3. RCW 9.46.0321 and 1987 c 4 s 28 are each amended to read 20
as follows: 21
Bona fide charitable or bona fide nonprofit organizations 22
organized primarily for purposes other than the conduct of such 23
activities ((are hereby authorized to )) may conduct bingo, raffles, 24
and amusement games, without obtaining a license to do so from the 25
commission but only when: 26
(1) Such activities are held in accordance with all other 27
requirements of this chapter, other applicable laws, and rules of the 28
commission; 29
(2) Said activities are ((, alone or in any combination, )) 30
conducted no more than ((twice)) four times each calendar year and 31
over a period of no more than ((twelve)) 12 consecutive days each 32
time, notwithstanding the limitations of RCW 9.46.0205((: PROVIDED, 33
That)). However, a raffle conducted under this subsection may be 34
conducted for a period longer than ((twelve)) 12 days;35
(3) Only bona fide members of that organization, who are not paid 36
for such services, participate in the management or operation of the 37
activities; 38
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(4) Gross revenues to the organization from ((all the activities 1
together)) raffles do not exceed ((five thousand dollars )) $20,000 2
during any calendar year; 3
(5) Gross revenues to the organization from bingo and amusement 4
games do not exceed $10,000 during any calendar year;5
(6) All revenue therefrom, after deducting the cost of prizes and 6
other expenses of the activity, is devoted solely to the purposes for 7
which the organization qualifies as a bona fide charitable or 8
nonprofit organization; 9
(((6) The organization gives notice at least five days in advance 10
of the conduct of any of the activities to the local police agency of 11
the jurisdiction within which the activities are to be conducted of 12
the organization's intent to conduct the activities, the location of 13
the activities, and the date or dates they will be conducted;)) and14
(7) The organization conducting the activities maintains records 15
for a period of one year from the date of the event which accurately 16
show at a minimum the gross revenue from each activity, details of 17
the expenses of conducting the activities, and details of the uses to 18
which the gross revenue therefrom is put. 19
Sec. 4. RCW 9.46.0323 and 2021 c 81 s 1 are each amended to read 20
as follows: 21
(1) A bona fide charitable or nonprofit organization, as defined 22
in RCW 9.46.0209, ((whose primary purpose is serving individuals with 23
intellectual disabilities )) may conduct enhanced raffles if licensed 24
by the commission. 25
(2) The commission has the authority to approve ((two)) three 26
enhanced raffles per calendar year for western Washington and ((two)) 27
three enhanced raffles per calendar year for eastern Washington. 28
Whether the enhanced raffle occurs in western Washington or eastern 29
Washington will be determined by the location where the grand prize 30
winning ticket is to be drawn as stated on the organization's 31
application to the commission. An enhanced raffle is considered 32
approved when voted on by the commission. 33
(3) The commission has the authority to approve enhanced raffles 34
under the following conditions: 35
(a) The value of the grand prize must not exceed $10,000,000.36
(b) Sales may be made in person, by mail, by fax, or by telephone 37
only. Raffle ticket order forms may be printed from the bona fide 38
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charitable or nonprofit organization's website. Obtaining the form in 1
this manner does not constitute a sale. 2
(c) Tickets purchased as part of a multiple ticket package may be 3
purchased at a discount. 4
(d) Multiple smaller prizes are authorized during the course of 5
an enhanced raffle for a grand prize including, but not limited to, 6
early bird, refer a friend, and multiple ticket drawings.7
(e) A purchase contract is not necessary for smaller noncash 8
prizes, but the bona fide charitable or nonprofit organization must 9
be able to demonstrate that such a prize is available and sufficient 10
funds are held in reserve in the event that the winner chooses a 11
noncash prize. 12
(f) All enhanced raffles and associated smaller raffles must be 13
independently audited, as defined by the commission during rule 14
making. The audit results must be reported to the commission.15
(g) Call centers, when licensed by the commission, are 16
authorized. The bona fide charitable or nonprofit organization may 17
contract with a call center vendor to receive enhanced raffle ticket 18
sales. The vendor may not solicit sales. The vendor may be located 19
outside the state, but the bona fide charitable or nonprofit 20
organization must have a contractual relationship with the vendor 21
stating that the vendor must comply with all applicable Washington 22
state laws and rules. 23
(h) The bona fide charitable or nonprofit organization must be 24
the primary recipient of the funds raised. 25
(i) Sales data may be transmitted electronically from the vendor 26
to the bona fide charitable or nonprofit organization. Credit cards, 27
issued by a state regulated or federally regulated financial 28
institution, may be used for payment to participate in enhanced 29
raffles. 30
(j) Receipts including ticket confirmation numbers may be sent to 31
ticket purchasers either by mail or by email. 32
(k) In the event the bona fide charitable or nonprofit 33
organization determines ticket sales are insufficient to qualify for 34
a complete enhanced raffle to move forward, the enhanced raffle 35
winner must receive ((fifty)) 50 percent of the net proceeds in 36
excess of expenses as the grand prize. The enhanced raffle winner 37
will receive a choice between an annuity value equal to ((fifty)) 50 38
percent of the net proceeds in excess of expenses paid by annuity 39
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over ((twenty)) 20 years, or a one-time cash payment of ((seventy)) 1
70 percent of the annuity value. 2
(l) A bona fide charitable or nonprofit organization is 3
authorized to hire a consultant licensed by the commission to run an 4
enhanced raffle; in addition, the bona fide charitable or nonprofit 5
organization must have a dedicated employee who is responsible for 6
oversight of enhanced raffle operations. The bona fide charitable or 7
nonprofit organization is ultimately responsible for ensuring that an 8
enhanced raffle is conducted in accordance with all applicable state 9
laws and rules. 10
(4) The commission has the authority to set fees for bona fide 11
charitable or nonprofit organizations, call center vendors, and 12
consultants conducting enhanced raffles authorized under this 13
section. 14
(5) The commission has the authority to adopt rules governing the 15
licensing and operation of enhanced raffles. 16
(6) Except as specifically authorized in this section, enhanced 17
raffles must be held in accordance with all other requirements of 18
this chapter, other applicable laws, and rules of the commission.19
(7) For the purposes of this section: 20
(a) "Enhanced raffle" means a game in which tickets bearing an 21
individual number are sold for not more than ((two hundred fifty 22
dollars)) $500 each and in which a grand prize and smaller prizes are 23
awarded on the basis of drawings from the tickets by the person or 24
persons conducting the game. An enhanced raffle may include 25
additional related entries and drawings, such as early bird, refer a 26
friend, and multiple ticket drawings when the bona fide charitable or 27
nonprofit organization establishes the eligibility standards for such 28
entries and drawings before any enhanced raffle tickets are sold. No 29
drawing may occur by using a random number generator or similar 30
means. 31
(b) "Early bird drawing" means a separate drawing for a separate 32
prize held prior to the grand prize drawing. All tickets entered into 33
the early bird drawing, including all early bird winning tickets, are 34
entered into subsequent early bird drawings, and also entered into 35
the drawing for the grand prize. 36
(c) "Refer a friend drawing" means a completely separate drawing, 37
using tickets distinct from those for the enhanced raffle, for a 38
separate prize held at the conclusion of the enhanced raffle for all 39
enhanced raffle ticket purchasers, known as the referring friend, who 40
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refer other persons to the enhanced raffle when the other person 1
ultimately purchases an enhanced raffle ticket. The referring friend 2
will receive one ticket for each friend referred specifically for the 3
refer a friend drawing. In addition, each friend referred could also 4
become a referring friend and receive his or her own additional 5
ticket for the refer a friend drawing. 6
(d) "Multiple ticket drawing" means a completely separate 7
drawing, using tickets distinct from those for the enhanced raffle, 8
for a separate prize held at the conclusion of the enhanced raffle 9
for all enhanced raffle ticket purchasers who purchase a specified 10
number of enhanced raffle tickets. For example, a multiple ticket 11
drawing could include persons who purchase three or more enhanced 12
raffle tickets in the same order, using the same payment information, 13
with tickets in the same person's name. For each eligible enhanced 14
raffle ticket purchased, the purchaser also receives a ticket for the 15
multiple ticket drawing prize. 16
(e) "Western Washington" includes those counties west of the 17
Cascade mountains, including Clallam, Clark, Cowlitz, Grays Harbor, 18
Island, Jefferson, King, Kitsap, Lewis, Mason, Pacific, Pierce, San 19
Juan, Skagit, Skamania, Snohomish, Thurston, Wahkiakum, and Whatcom.20
(f) "Eastern Washington" includes those counties east of the 21
Cascade mountains that are not listed in (e) of this subsection.22
(8) The commission's reporting obligations under RCW 9.46.090 23
must address enhanced raffles. The report must include results of the 24
raffles, revenue generated by the raffles, and identify any state or 25
federal regulatory actions taken in relation to enhanced raffles in 26
Washington. The report must also make recommendations, if any, for 27
policy changes to the enhanced raffle authority. 28
Sec. 5. RCW 9.46.0356 and 2011 c 303 s 2 are each amended to 29
read as follows: 30
(1) The legislature authorizes: 31
(a) A business or bona fide charitable or nonprofit organization 32
to conduct a promotional contest of chance as defined in this 33
section, in this state, or partially in this state, whereby the 34
elements of prize and chance are present but in which the element of 35
consideration is not present; 36
(b) A financial institution, as defined in RCW ((30.22.040)) 37
30A.22.040, to conduct a promotional contest of chance under this 38
section in which: (i) A drawing for an annual prize is held that 39
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includes as eligible prize recipients only those persons who 1
deposited funds at the financial institution in a savings account, 2
certificate of deposit, or any other savings program and retained 3
those funds for at least twelve months in the savings account, 4
certificate of deposit, or other savings program; and (ii) drawings 5
for other prizes are held from time to time that include as eligible 6
prize recipients only those persons who deposited funds at the 7
financial institution in a savings account, certificate of deposit, 8
or other savings program. No such contest may be conducted, either 9
wholly or partially, by means of the internet. 10
(2) Promotional contests of chance under this section are not 11
gambling as defined in RCW 9.46.0237. 12
(3) Promotional contests of chance shall be conducted as 13
advertising and promotional undertakings solely for the purpose of 14
advertising or promoting the services, goods, wares, and merchandise 15
of a business or mission of the bona fide charitable or nonprofit 16
organization.17
(a) Bona fide charitable or nonprofit organizations may solicit a 18
donation in a promotional contest of chance. The donation may not 19
increase the chances of winning a prize.20
(b) Language indicating that no purchase or donation is necessary 21
for entry must be present within the promotional advertisement.22
(4) No person eligible to receive a prize in a promotional 23
contest of chance under subsection (1)(a) of this section may be 24
required to: 25
(a) Pay any consideration to the promoter or operator of the 26
business or bona fide charitable or nonprofit organization in order 27
to participate in the contest; or 28
(b) Purchase any service, goods, wares, merchandise, or anything 29
of value from the business or donate or otherwise contribute to the 30
bona fide charitable or nonprofit organization , however, for other 31
than contests entered through a direct mail solicitation, the 32
promoter or sponsor may give additional entries or chances upon 33
purchase of service, goods, wares, ((or)) merchandise, or donation if 34
the promoter or sponsor provides an alternate method of entry 35
requiring no consideration. 36
(5) No person eligible to receive a prize in a promotional 37
contest of chance under subsection (1)(b) of this section may be 38
required to pay any consideration other than the deposit of funds, or 39
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purchase any service, goods, wares, merchandise, or anything of value 1
from the financial institution. 2
(6)(a) As used in this section, "consideration" means anything of 3
pecuniary value required to be paid to the promoter or sponsor in 4
order to participate in a promotional contest. Such things as 5
visiting a business location, placing or answering a telephone call, 6
completing an entry form or customer survey, or furnishing a stamped, 7
self-addressed envelope do not constitute consideration.8
(b) Coupons or entry blanks obtained by purchase of a bona fide 9
newspaper or magazine or in a program sold in conjunction with a 10
regularly scheduled sporting event are not consideration.11
(7) Unless authorized by the commission, equipment or devices 12
made for use in a gambling activity are prohibited from use in a 13
promotional contest of chance. 14
(8) This section shall not be construed to permit noncompliance 15
with chapter 19.170 RCW, promotional advertising of prizes, and 16
chapter 19.86 RCW, unfair business practices. 17
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