THE QUESTIONShould the California Constitution be amended to permit legislative authorization of raffles conducted by private nonprofit organizations for beneficial and charitable purposes? THE SITUATIONThe State Lottery has been established and authorized by the California Constitution since 1985. Also, the legislature may authorize cities and counties to allow bingo games as a legal activity for charitable fundraising purposes. However, the legislature may not authorize any other lotteries. Existing law defines a lottery as any scheme among persons who pay for a chance to win a prize. In addition, the law says that anyone who assists in printing or advertising, sets up, manages, draws, or in any way sells or gives away a lottery ticket is guilty of a misdemeanor, punishable by up to six months in jail. Under present law, charitable raffles are legal so long as the tickets are given away for a donation rather than being sold. Some organizations, however, are not aware that only a donation for tickets is legal; therefore, they may unknowingly conduct illegal raffles. Using current practices, law enforcement may be in a position of either ignoring an illegal raffle, or shutting down the raffle even if it is for a charitable cause. THE PROPOSALProposition 17 would allow raffles to be conducted by nonprofit organizations to raise funds for charitable purposes with these provisions: · at least 90% of the gross receipts from the raffle must go directly to beneficial or charitable purposes in California · any person who receives compensation in connection with the operation of a raffle must be an employee of the private nonprofit organization that is conducting the raffle · a 2/3 super-majority vote of each house may amend, by a statute signed by the governor, the percentage of gross receipts that must go to beneficial or charitable purposes. FISCAL EFFECTThe Legislative Analyst estimates there would not be significant state or local impacts on government revenues. Other types of gambling might be reduced if there is a significant increase of gambling on raffles. For example, the State Lottery and horse racing are taxed by the state, and revenues from these activities might decline somewhat. SUPPORTERS SAY· Proposition 17 would legalize legitimate raffles as fundraising mechanisms for charitable purposes, while requiring oversight and regulation to prohibit abuse. · This measure would correct a presently awkward situation in which police and prosecutors must either shut down worthy fundraisers, or look the other way and not enforce the law. OPPONENTS SAY· Proposition 17 is not needed since existing charitable raffles are legal as long as tickets are not sold, but are given away with a request for a donation. · This measure does not include protections or controls, such as regulating the buying and selling of tickets by minors, criminal background checks on professional raffle operators, or audits to ensure that funds go to charities. For more information: Supporters: (916) 447-8186, email mta@mcnallytemple.com (Analysis prepared by the League of Women Voters of California Education Fund  
On Propositions:
About our Analysis -
List of Props -
Election '00 -
Smart Voter
LWVC Home -
Voting Q&As -
State Props -
About Us
Last updated: January 18, 2000 Send comments and suggestions concerning the content of this page to lwvcprocon@hotmail.com. Send comments concerning the format or usability of this page to cmwatts@ibm.net Copyright 2000 League of Women Voters of California Education Fund. This page may be linked to or printed in its entirety. |
