§ 10203 - Distribution; retail purchase and sale
§ 10203. Distribution; retail purchase and sale
(a) Only nonprofit organizations may purchase break-open tickets from distributors licensed under this chapter.
(b) A nonprofit organization may purchase break-open tickets only from a distributor licensed under this chapter.
(c) No person, other than a licensed distributor, shall distribute a box of break-open tickets, and no person shall distribute a box of break-open tickets, unless the box bears indicia as required by the commissioner. No person shall distribute or sell a break-open ticket at retail unless the ticket bears a unique serial number.
(d) A distributor licensed under this chapter may sell break-open tickets only to nonprofit organizations as defined in subdivision 10201(5) of this title, except that a person other than a licensed distributor may sell such tickets to a licensed distributor upon written approval of the commissioner.
(e) Only nonprofit organizations may sell break-open tickets at retail.
(f) Break-open tickets shall not be sold at premises licensed to sell alcoholic beverages except at clubs as defined in subdivision 2(7) of Title 7. However, a nonprofit organization may sell break-open tickets at premises licensed to sell alcoholic beverages if, notwithstanding 13 V.S.A. § 2143(e), all proceeds from the sale of break-open tickets are used by the nonprofit organization exclusively for charitable, religious, educational and civic undertakings, with only the following costs deducted from the proceeds:
(1) actual cost of the break-open tickets;
(2) the prizes awarded;
(3) reasonable legal fees necessary to organize the nonprofit organization and to assure compliance with all legal requirements; and
(4) reasonable accounting fees necessary to account for the proceeds from the sale of break-open tickets.
(g) The provisions of this chapter regarding sales and purchases of break-open tickets also apply to transfers of break-open tickets for no charge. (Added 1991, No. 267 (Adj. Sess.), § 2, eff. Oct. 1, 1992; amended 1993, No. 183 (Adj. Sess.), § 9; 2003, No. 70 (Adj. Sess.), § 61, eff. March 1, 2004.)