99B.5 - RAFFLES CONDUCTED AT A FAIR.
99B.5 RAFFLES CONDUCTED AT A FAIR.
1. Raffles lawfully may be conducted at a fair, but only if all
of the following are complied with:
a. The raffle is conducted by the sponsor of the fair or a
qualified organization licensed under section 99B.7 that has received
permission from the sponsor of the fair to conduct the raffle.
b. The sponsor of the fair or the qualified organization has
submitted a license application and a fee of thirty dollars for each
raffle, has been issued a license, and prominently displays the
license at the drawing area of the raffle.
c. The raffle is posted.
d. Except with respect to an annual raffle as provided in
paragraph "g", the cost of each chance in or ticket to the raffle
does not exceed one dollar.
e. Except with respect to an annual raffle as provided in
paragraph "g", and subsection 3, cash prizes are not awarded and
merchandise prizes are not repurchased.
f. The raffle is not operated on a pyramid or build-up basis.
g. The actual retail value of any prize does not exceed one
thousand dollars. If a prize consists of more than one item, unit,
or part, the aggregate retail value of all items, units, or parts
shall not exceed one thousand dollars. However, either a fair
sponsor or a qualified organization, but not both, may hold one
raffle per calendar year at which prizes having a combined value of
more than one thousand dollars may be offered. If the prize for the
annual raffle is cash, the total cash amount awarded shall not exceed
two hundred thousand dollars. If the prize is merchandise, its value
shall be determined by the purchase price paid by the fair sponsor or
qualified organization.
h. The raffle is conducted in a fair and honest manner.
2. It is lawful for an individual other than a person conducting
the raffle to participate in a raffle conducted at a fair, whether or
not conducted in compliance with subsection 1.
3. A licensee under this section may hold one real property
raffle per calendar year in lieu of the annual raffle authorized in
subsection 1, paragraph "g", at which the value of the real
property may exceed one thousand dollars or an annual raffle of cash
as authorized in subsection 1, paragraph "g", if the total cash
amount awarded is one hundred thousand dollars or more, if all of the
following applicable requirements are met:
a. The licensee has submitted the special real property or
cash raffle license application and a fee of one hundred dollars to
the department, has been issued a license, and prominently displays
the license at the drawing area of the raffle.
b. The real property was acquired by gift or donation or has
been owned by the licensee for a period of at least five years.
c. All other requirements of this section and section 99B.2
are met, except that the cost to participate in the raffle may exceed
one dollar for each participant.
d. Receipts from the raffle are kept in a separate financial
account.
e. A cumulative report for the raffle on a form determined by
the department and one percent of the gross receipts are submitted to
the department within sixty days of the raffle drawing. The one
percent of the gross receipts shall be retained by the department to
pay for the cost of the special audit.
4. For each real property or cash raffle license issued pursuant
to subsection 3, the department shall conduct a special audit of the
raffle to verify compliance with the appropriate requirements of this
chapter. Section History: Early Form
[C75, § 99B.4; C77, 79, 81, § 99B.5; 82 Acts, ch 1189, § 1] Section History: Recent Form
85 Acts, ch 191, §1; 86 Acts, ch 1201, § 3; 87 Acts, ch 184, § 2;
96 Acts, ch 1143, § 1, 2; 2002 Acts, ch 1068, §1, 2; 2005 Acts, ch
106, §1--4
Referred to in § 99B.6, 99B.8, 99B.9, 99B.12, 423.3