A BILL TO BE ENTITLED
AN ACT TO INCREASE THE ABILITY OF NONPROFIT ORGANIZATIONS TO HOLD FUNDRAISING RAFFLES and to authorize reissuance of certain one‑time alcoholic beverage control commission permits.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 14‑309.6 is amended by adding a new subdivision to read:
"(8)	"Nonprofit organization" means an organization or association recognized by the Department of Revenue as tax‑exempt pursuant to G.S. 105‑130.11(a), or any bona fide branch, chapter, or affiliate of that organization."
SECTION 2.  G.S. 14‑309.15 reads as rewritten:
"§ 14‑309.15.  Raffles.
(a)	It is lawful for any nonprofitorganization, candidate, political committee, or any government entity within the State, to conduct raffles in accordance with this section. Each regional or county chapter of a nonprofit organization shall be eligible to conduct raffles in accordance with this section independently of its parent organization. Any person who conducts a raffle in violation of any provision of this section shall be guilty of a Class 2 misdemeanor. Upon conviction that person shall not conduct a raffle for a period of one year. It is lawful to participate in a raffle conducted pursuant to this section. It shall not constitute a violation of State law to advertise a raffle conducted in accordance with this section. A raffle conducted pursuant to this section is not "gambling". For the purpose of this section, "candidate" and "political committee" have the meaning provided by Article 22A of Chapter 163A of the General Statutes, who have filed organization reports under that Article, and who are in good standing with the appropriate board of elections. Receipts and expenditures of a raffle by a candidate or political committee shall be reported in accordance with Article 22A of Chapter 163A of the General Statutes, and ticket purchases are contributions within the meaning of that Article.
(b)	For purposes of this section "raffle" means a game in which the prize is won by random drawing of the name or number of one or more persons purchasing chances.
(c)	A candidate, political committee, or government entity within the State may hold no more than two raffles per year. A nonprofit organization may hold no more than four raffles per year, with no more than one raffle occurring per quarter.
(d)	Except as provided in subsection (g) of this section, the maximum cash prize that may be offered or paid for any one raffle is one hundred twenty‑five thousand dollars ($125,000) and if merchandise is used as a prize, and it is not redeemable for cash, the maximum fair market value of that prize may be one hundred twenty‑five thousand dollars ($125,000). The total cash prizes offered or paid by any nonprofit organization may not exceed two hundred fifty thousand dollars ($250,000) in any calendar year. The total fair market value of all prizes offered by any nonprofit organization, either in cash or in merchandise that is not redeemable for cash, may not exceed two hundred fifty thousand dollars ($250,000) in any calendar year. The total cash prizes offered or paid by any candidate, political committee, or government entity within the State may not exceed one hundred twenty‑five thousand dollars ($125,000) in any calendar year. The total fair market value of all prizes offered by any candidate, political committee, or government entity within the State, either in cash or in merchandise that is not redeemable for cash, may not exceed one hundred twenty‑five thousand dollars ($125,000) in any calendar year.
(e)	Raffles shall not be conducted in conjunction with bingo.
(f)	As used in this subsection, "net proceeds of a raffle" means the receipts less the cost of prizes awarded. No less than ninety percent (90%) of the net proceeds of a raffle shall be used by the nonprofit organization for charitable, religious, educational, civic, or other nonprofit purposes. None of the net proceeds of the raffle may be used to pay any person to conduct the raffle, or to rent a building where the tickets are received or sold or the drawing is conducted.
(g)	Real property may be offered as a prize in a raffle. The maximum appraised value of real property that may be offered for any one raffle is five hundred thousand dollars ($500,000). The total appraised value of all real estate prizes offered by any nonprofit organization may not exceed five hundred thousand dollars ($500,000) in any calendar year.
(h)	Notwithstanding any other subsection of this section, it is lawful for a credit union to conduct a savings promotion raffle under G.S. 54‑109.64."
SECTION 3.  G.S. 18B‑308 reads as rewritten:
"§ 18B‑308.  Sale and consumption at bingo games.
It shall be unlawful to sell or consume, or for the owner or other person in charge of the premises to allow the sale or consumption of, any alcoholic beverage in any room while a bingo game is being conducted in that room under Part 2 of Article 37 of Chapter 14 of the General Statutes."
SECTION 4.  Article 9 of Chapter 18B of the General Statutes is amended by adding a new section to read:
"§ 18B‑903A.  Reissuance of certain permits.
(a)	Reissuance. – Notwithstanding G.S. 18B‑902(b) or G.S. 18B‑903, if a nonprofit organization has received a limited special occasion permit pursuant to G.S. 18B‑1001(9) or a special one‑time permit pursuant to G.S. 18B‑1002(a)(2) or (a)(5) within the previous 18 months, the Commission shall reissue the permit to the nonprofit organization if the same individual representing the organization requests reissuance of the permit for the same location. The Commission shall require only the following information in order to reissue the permit:
(1)	The street address of the location where the event will take place.
(2)	The county in which the event will take place.
(3)	The date of the event.
(4)	A description of the event.
(5)	The name, address, date of birth, and contact information of the individual representing the nonprofit organization.
(b)	Duration. – Once issued, a reissued limited special occasion permit shall be valid for 48 hours before and after the occasion for which the permit was issued and a reissued special one‑time permit shall be valid only for the period stated on the permit.
(c)	Reissuance Fee. – Application for reissuance of a limited special occasion permit or a special one‑time permit shall be on a form provided by the Commission. The application fee shall be the same as the initial fee set in G.S. 18B‑902. A reissuance fee shall not be refundable.
(d)	Investigation. – The Commission, with the assistance of the ALE Branch, shall not investigate the applicant and the premises for which the reissuance is requested more than once every three years. The Commission may request the assistance of local ABC officers in investigating applications. An applicant shall cooperate fully with the investigation.
(e)	False Information. – Knowingly making a false statement in an application for a permit reissuance pursuant to this section shall be grounds for denying, suspending, revoking, or taking other action against the permit as provided in G.S. 18B‑104 and shall also be a Class 1 misdemeanor."
SECTION 5.  G.S. 18B‑1002(a)(5) reads as rewritten:
"§ 18B‑1002.  Special one‑time permits.
(a)	Kinds of Permits. – In addition to the other permits authorized by this Chapter, the Commission may issue permits for the following activities:
...
(5)	A permit may be issued to a unit of local government, or to a nonprofit organization or a political organization to serve wine, malt beverages, and spirituous liquor at a ticketed event held to allow the unit of local government or organization to raise funds. For purposes of this subdivision "nonprofit organization" means an organization that is exempt from taxation under Section 501(c)(3), 501(c)(4), 501(c)(6), 501(c)(8), 501(c)(10), 501(c)(19), or 501(d) of the Internal Revenue Code or is exempt under similar provisions of the General Statutes as a bona fide nonprofit charitable, civic, religious, fraternal, patriotic, or veterans' organization or as a nonprofit volunteer fire department, or as a nonprofit volunteer rescue squad or a bona fide homeowners' or property owners' association. For purposes of this subdivision "political organization" means an organization covered by the provisions of G.S. 163‑96(a)(1) or (2) or a campaign organization established by or for a person who is a candidate who has filed a notice of candidacy, paid the filing fees or filed the required petition, and been certified as a candidate. The issuance of this permit shall also allow the issuance of a purchase‑transportation permit under G.S. 18B‑403 and 18B‑404 and the use for culinary purposes of spirituous liquor lawfully purchased for use in mixed beverages. The issuance of this permit shall also allow a nonprofit organization to offer alcoholic beverages in the manufacturer's original closed container as a prize in a raffle, or sell alcoholic beverages in the manufacturer's original closed container at auction at the ticketed event to allow the nonprofit organization to raise funds."
SECTION 6.  Section 4 of this act becomes effective December 1, 2017, and applies to offenses committed on or after that date. The remainder of this act becomes effective October 1, 2017.