319-329
PENAL CODE
SECTION 319-329
319. A lottery is any scheme for the disposal or distribution of
property by chance, among persons who have paid or promised to pay
any valuable consideration for the chance of obtaining such property
or a portion of it, or for any share or any interest in such
property, upon any agreement, understanding, or expectation that it
is to be distributed or disposed of by lot or chance, whether called
a lottery, raffle, or gift enterprise, or by whatever name the same
may be known.
319.3. (a) In addition to Section 319, a lottery also shall include
a grab bag game which is a scheme whereby, for the disposal or
distribution of sports trading cards by chance, a person pays
valuable consideration to purchase a sports trading card grab bag
with the understanding that the purchaser has a chance to win a
designated prize or prizes listed by the seller as being contained in
one or more, but not all, of the grab bags.
(b) For purposes of this section, the following definitions shall
apply:
(1) "Sports trading card grab bag" means a sealed package which
contains one or more sports trading cards that have been removed from
the manufacturer's original packaging. A "sports trading card grab
bag" does not include a sweepstakes, or procedure for the
distribution of any sports trading card of value by lot or by chance,
which is not unlawful under other provisions of law.
(2) "Sports trading card" means any card produced for use in
commerce that contains a company name or logo, or both, and an image,
representation, or facsimile of one or more players or other team
member or members in any pose, and that is produced pursuant to an
appropriate licensing agreement.
319.5. Neither this chapter nor Chapter 10 (commencing with Section
330) applies to the possession or operation of a reverse vending
machine. As used in this section a reverse vending machine is a
machine in which empty beverage containers are deposited for
recycling and which provides a payment of money, merchandise,
vouchers, or other incentives at a frequency less than upon each
deposit. The pay out of a reverse vending machine is made on a
deposit selected at random within the designated number of required
deposits.
The deposit of an empty beverage container in a reverse vending
machine does not constitute consideration within the definition of
lottery in Section 319.
320. Every person who contrives, prepares, sets up, proposes, or
draws any lottery, is guilty of a misdemeanor.
320.5. (a) Nothing in this chapter applies to any raffle conducted
by an eligible organization as defined in subdivision (c) for the
purpose of directly supporting beneficial or charitable purposes or
financially supporting another private, nonprofit, eligible
organization that performs beneficial or charitable purposes if the
raffle is conducted in accordance with this section.
(b) For purposes of this section, "raffle" means a scheme for the
distribution of prizes by chance among persons who have paid money
for paper tickets that provide the opportunity to win these prizes,
where all of the following are true:
(1) Each ticket is sold with a detachable coupon or stub, and both
the ticket and its associated coupon or stub are marked with a
unique and matching identifier.
(2) Winners of the prizes are determined by draw from among the
coupons or stubs described in paragraph (1) that have been detached
from all tickets sold for entry in the draw.
(3) The draw is conducted in California under the supervision of a
natural person who is 18 years of age or older.
(4) (A) At least 90 percent of the gross receipts generated from
the sale of raffle tickets for any given draw are used by the
eligible organization conducting the raffle to benefit or provide
support for beneficial or charitable purposes, or it may use those
revenues to benefit another private, nonprofit organization, provided
that an organization receiving these funds is itself an eligible
organization as defined in subdivision (c). As used in this section,
"beneficial purposes" excludes purposes that are intended to benefit
officers, directors, or members, as defined by Section 5056 of the
Corporations Code, of the eligible organization. In no event shall
funds raised by raffles conducted pursuant to this section be used to
fund any beneficial, charitable, or other purpose outside of
California. This section does not preclude an eligible organization
from using funds from sources other than the sale of raffle tickets
to pay for the administration or other costs of conducting a raffle.
(B) An employee of an eligible organization who is a direct seller
of raffle tickets shall not be treated as an employee for purposes
of workers' compensation under Section 3351 of the Labor Code if the
following conditions are satisfied:
(i) Substantially all of the remuneration (whether or not paid in
cash) for the performance of the service of selling raffle tickets is
directly related to sales rather than to the number of hours worked.
(ii) The services performed by the person are performed pursuant
to a written contract between the seller and the eligible
organization and the contract provides that the person will not be
treated as an employee with respect to the selling of raffle tickets
for workers' compensation purposes.
(C) For purposes of this section, employees selling raffle tickets
shall be deemed to be direct sellers as described in Section 650 of
the Unemployment Insurance Code as long as they meet the requirements
of that section.
(c) For purposes of this section, "eligible organization" means a
private, nonprofit organization that has been qualified to conduct
business in California for at least one year prior to conducting a
raffle and is exempt from taxation pursuant to Sections 23701a,
23701b, 23701d, 23701e, 23701f, 23701g, 23701k, 23701l, 23701t, or
23701w of the Revenue and Taxation Code.
(d) Any person who receives compensation in connection with the
operation of the raffle shall be an employee of the eligible
organization that is conducting the raffle, and in no event may
compensation be paid from revenues required to be dedicated to
beneficial or charitable purposes.
(e) No raffle otherwise permitted under this section may be
conducted by means of, or otherwise utilize, any gaming machine,
apparatus, or device, whether or not that machine, apparatus, or
device meets the definition of slot machine contained in Section
330a, 330b, or 330.1.
(f) (1) No raffle otherwise permitted under this section may be
conducted, nor may tickets for a raffle be sold, within an operating
satellite wagering facility or racetrack inclosure licensed pursuant
to the Horse Racing Law (Chapter 4 (commencing with Section 19400) of
Division 8 of the Business and Professions Code) or within a
gambling establishment licensed pursuant to the Gambling Control Act
(Chapter 5 (commencing with Section 19800) of Division 8 of the
Business and Professions Code).
(2) A raffle may not be operated or conducted in any manner over
the Internet, nor may raffle tickets be sold, traded, or redeemed
over the Internet. For purposes of this paragraph, an eligible
organization shall not be deemed to operate or conduct a raffle over
the Internet, or sell raffle tickets over the Internet, if the
eligible organization advertises its raffle on the Internet or
permits others to do so. Information that may be conveyed on an
Internet Web site pursuant to this paragraph includes, but is not
limited to, all of the following:
(A) Lists, descriptions, photographs, or videos of the raffle
prizes.
(B) Lists of the prize winners.
(C) The rules of the raffle.
(D) Frequently asked questions and their answers.
(E) Raffle entry forms, which may be downloaded from the Internet
Web site for manual completion by raffle ticket purchasers, but shall
not be submitted to the eligible organization through the Internet.
(F) Raffle contact information, including the eligible
organization's name, address, telephone number, facsimile number, or
e-mail address.
(g) No individual, corporation, partnership, or other legal entity
shall hold a financial interest in the conduct of a raffle, except
the eligible organization that is itself authorized to conduct that
raffle, and any private, nonprofit, eligible organizations receiving
financial support from that charitable organization pursuant to
subdivisions (a) and (b).
(h) (1) An eligible organization may not conduct a raffle
authorized under this section, unless it registers annually with the
Department of Justice. The department shall furnish a registration
form via the Internet or upon request to eligible nonprofit
organizations. The department shall, by regulation, collect only the
information necessary to carry out the provisions of this section on
this form. This information shall include, but is not limited to, the
following:
(A) The name and address of the eligible organization.
(B) The federal tax identification number, the corporate number
issued by the Secretary of State, the organization number issued by
the Franchise Tax Board, or the California charitable trust
identification number of the eligible organization.
(C) The name and title of a responsible fiduciary of the
organization.
(2) The department may require an eligible organization to pay an
annual registration fee of ten dollars ($10) to cover the actual
costs of the department to administer and enforce this section. The
department may, by regulation, adjust the annual registration fee as
needed to ensure that revenues willfully offset, but do not exceed,
the actual costs incurred by the department pursuant to this section.
The fee shall be deposited by the department into the General Fund.
(3) The department shall receive General Fund moneys for the costs
incurred pursuant to this section subject to an appropriation by the
Legislature.
(4) The department shall adopt regulations necessary to effectuate
this section, including emergency regulations, pursuant to the
Administrative Procedure Act (Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code).
(5) The department shall maintain an automated database of all
registrants. Each local law enforcement agency shall notify the
department of any arrests or investigation that may result in an
administrative or criminal action against a registrant. The
department may audit the records and other documents of a registrant
to ensure compliance with this section.
(6) Once registered, an eligible organization must file annually
thereafter with the department a report that includes the following:
(A) The aggregate gross receipts from the operation of raffles.
(B) The aggregate direct costs incurred by the eligible
organization from the operation of raffles.
(C) The charitable or beneficial purposes for which proceeds of
the raffles were used, or identify the eligible recipient
organization to which proceeds were directed, and the amount of those
proceeds.
(7) The department shall annually furnish to registrants a form to
collect this information.
(8) The registration and reporting provisions of this section do
not apply to any religious corporation sole or other religious
corporation or organization that holds property for religious
purposes, to a cemetery corporation regulated under Chapter 19 of
Division 3 of the Business and Professions Code, or to any committee
as defined in Section 82013 that is required to and does file any
statement pursuant to the provisions of Article 2 (commencing with
Section 84200) of Chapter 4 of Title 9, or to a charitable
corporation organized and operated primarily as a religious
organization, educational institution, hospital, or a health care
service plan licensed pursuant to Section 1349 of the Health and
Safety Code.
(i) The department may take legal action against a registrant if
it determines that the registrant has violated this section or any
regulation adopted pursuant to this section, or that the registrant
has engaged in any conduct that is not in the best interests of the
public's health, safety, or general welfare. Any action taken
pursuant to this subdivision does not prohibit the commencement of an
administrative or criminal action by the Attorney General, a
district attorney, city attorney, or county counsel.
(j) Each action and hearing conducted to deny, revoke, or suspend
a registry, or other administrative action taken against a registrant
shall be conducted pursuant to the Administrative Procedure Act
(Chapters 4.5 (commencing with Section 11400) and 5 (commencing with
Section 11500) of Part 1 of Division 3 of Title 2 of the Government
Code). The department may seek recovery of the costs incurred in
investigating or prosecuting an action against a registrant or
applicant in accordance with those procedures specified in Section
125.3 of the Business and Professions Code. A proceeding conducted
under this subdivision is subject to judicial review pursuant to
Section 1094.5 of the Code of Civil Procedure.
(k) The Department of Justice shall conduct a study and report to
the Legislature by December 31, 2003, on the impact of this section
on raffle practices in California. Specifically, the study shall
include, but not be limited to, information on whether the number of
raffles has increased, the amount of money raised through raffles and
whether this amount has increased, whether there are consumer
complaints, and whether there is increased fraud in the operation of
raffles.
(l) This section shall become operative on July 1, 2001.
(m) A raffle shall be exempt from this section if it satisfies all
of the following requirements:
(1) It involves a general and indiscriminate distribution of the
tickets.
(2) The tickets are offered on the same terms and conditions as
the tickets for which a donation is given.
(3) The scheme does not require any of the participants to pay for
a chance to win.
321. Every person who sells, gives, or in any manner whatever,
furnishes or transfers to or for any other person any ticket, chance,
share, or interest, or any paper, certificate, or instrument
purporting or understood to be or to represent any ticket, chance,
share, or interest in, or depending upon the event of any lottery, is
guilty of a misdemeanor.
322. Every person who aids or assists, either by printing, writing,
advertising, publishing, or otherwise in setting up, managing, or
drawing any lottery, or in selling or disposing of any ticket,
chance, or share therein, is guilty of a misdemeanor.
323. Every person who opens, sets up, or keeps, by himself or by
any other person, any office or other place for the sale of, or for
registering the number of any ticket in any lottery, or who, by
printing, writing, or otherwise, advertises or publishes the setting
up, opening, or using of any such office, is guilty of a misdemeanor.
324. Every person who insures or receives any consideration for
insuring for or against the drawing of any ticket in any lottery
whatever, whether drawn or to be drawn within this State or not, or
who receives any valuable consideration upon any agreement to repay
any sum, or deliver the same, or any other property, if any lottery
ticket or number of any ticket in any lottery shall prove fortunate
or unfortunate, or shall be drawn or not be drawn, at any particular
time or in any particular order, or who promises or agrees to pay any
sum of money, or to deliver any goods, things in action, or
property, or to forbear to do anything for the benefit of any person,
with or without consideration, upon any event or contingency
dependent on the drawing of any ticket in any lottery, or who
publishes any notice or proposal of any of the purposes aforesaid, is
guilty of a misdemeanor.
325. All moneys and property offered for sale or distribution in
violation of any of the provisions of this chapter are forfeited to
the state, and may be recovered by information filed, or by an action
brought by the Attorney General, or by any district attorney, in the
name of the state. Upon the filing of the information or complaint,
the clerk of the court must issue an attachment against the property
mentioned in the complaint or information, which attachment has the
same force and effect against such property, and is issued in the
same manner as attachments issued from the superior courts in civil
cases.
326. Every person who lets, or permits to be used, any building or
vessel, or any portion thereof, knowing that it is to be used for
setting up, managing, or drawing any lottery, or for the purpose of
selling or disposing of lottery tickets, is guilty of a misdemeanor.
326.3. (a) The Legislature finds and declares all of the following:
(1) Nonprofit organizations provide important and essential
educational, philanthropic, and social services to the people of the
State of California.
(2) One of the great strengths of California is a vibrant
nonprofit sector.
(3) Nonprofit and philanthropic organizations touch the lives of
every Californian through service and employment.
(4) Many of these services would not be available if nonprofit
organizations did not provide them.
(5) There is a need to provide methods of fundraising to nonprofit
organizations to enable them to provide these essential services.
(6) Historically, many nonprofit organizations have used
charitable bingo as one of their key fundraising strategies to
promote the mission of the charity.
(7) Legislation is needed to provide greater revenues for
nonprofit organizations to enable them to fulfill their charitable
purposes, and especially to meet their increasing social service
obligations.
(8) Legislation is also needed to clarify that existing law
requires that all charitable bingo must be played using a tangible
card and that the only permissible electronic devices to be used by
charitable bingo players are card-minding devices.
(b) Neither the prohibition on gambling in this chapter nor in
Chapter 10 (commencing with Section 330) applies to any remote caller
bingo game that is played or conducted in a city, county, or city
and county pursuant to an ordinance enacted under Section 19 of
Article IV of the California Constitution, if the ordinance allows a
remote caller bingo game to be played or conducted only in accordance
with the requirements of this section, including the following
requirements:
(1) The game may be conducted only by the following organizations:
(A) An organization that is exempted from the payment of the taxes
imposed under the Corporation Tax Law by Section 23701a, 23701b,
23701d, 23701e, 23701f, 23701g, 23701k, 23701w, or 23701l of the
Revenue and Taxation Code.
(B) A mobilehome park association.
(C) A senior citizens organization.
(D) Charitable organizations affiliated with a school district.
(2) The organization conducting the game shall have been
incorporated or in existence for three years or more.
(3) The organization conducting the game shall be licensed
pursuant to subdivision (l) of Section 326.5.
(4) The receipts of the game shall be used only for charitable
purposes. The organization conducting the game shall determine the
disbursement of the net receipts of the game.
(5) The operation of bingo may not be the primary purpose for
which the organization is organized.
(c) (1) A city, county, or city and county may adopt an ordinance
in substantially the following form to authorize remote caller bingo
in accordance with the requirements of subdivision (b):
Sec. _.01. Legislative Authorization.
This chapter is adopted pursuant to Section 19 of Article IV of
the California Constitution, as implemented by Sections 326.3 and
326.4 of the Penal Code.
Sec. _.02. Remote Caller Bingo Authorized.
Remote Caller Bingo may be lawfully played in the