GAME NIGHTS/NONPROFIT FUND-RAISER.

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View NCGA Bill Details2017-2018 Session
House Bill 511 (Public) Filed Tuesday, March 28, 2017
AN ACT TO AUTHORIZE NONPROFIT ORGANIZATIONS TO OPERATE "GAME NIGHTS," TO PROVIDE FOR THE REGULATION OF NONPROFIT ORGANIZATIONS HOLDING "GAME NIGHTS," AND TO ALLOW THE CONSUMPTION OF ALCOHOLIC BEVERAGES AT "GAME NIGHTS," TO INCREASE THE ABILITY OF NONPROFIT ORGANIZATIONS TO HOLD FUND-RAISING RAFFLES AND TO AUTHORIZE REISSUANCE OF CERTAIN ONE-TIME ALCOHOLIC BEVERAGE CONTROL COMMISSION PERMITS.
Intro. by Boles, Lucas, Saine, Floyd.

Status: Re-ref Com On Rules, Calendar, and Operations of the House (House Action) (Oct 11 2017)

SOG comments (1):

Long Title Change

Senate committee substitute to the 3rd edition makes changes to the long title. The original is as follows:

AN ACT TO AUTHORIZE NONPROFIT ORGANIZATIONS TO OPERATE "GAME NIGHTS," TO PROVIDE FOR THE REGULATION OF NONPROFIT ORGANIZATIONS HOLDING "GAME NIGHTS," AND TO ALLOW THE CONSUMPTION OF ALCOHOLIC BEVERAGES AT "GAME NIGHTS." 

Bill History:

H 511

Bill Summaries:

  • Summary date: Jul 14 2017 - View Summary

    The Governor vetoed the act on 07/12/17. The Governor's objections and veto message are available here: http://www.ncleg.net/Sessions/2017/H511Veto/H511Veto.html


  • Summary date: Jun 29 2017 - View Summary

    Conference report makes the following changes to the 5th edition:

    The Senate recedes from Senate amendment #1, which made the following changes: Renamed proposed GS 14-309.34 as Applicability to employer paid events. Established that it is lawful for an employer to hold a game night event for employees and guests or a trade association to hold a game night event for its members and guests, so long as (1) there is no cost or charge to attendees; (2) the employer or trade association obtains a permit and pays the required fee set out in new GS 14-309.27; and (3) the game night event is held at a qualified facility, as defined in new GS 14-309.25(4). Added that verification of tax-exempt status and licensure or exemption under GS Chapter 131F required by GS 14-309.27(b)(3) and (4) are not required from an applicant for a permit if the applicant is required to obtain the permit pursuant to the provisions of GS 14-309.34 as amended and the applicant is not an exempt organization as defined in GS 14-309.25.

    Amends proposed GS 14-309.25 (Definitions), to amend the definition ofgame night to include events sponsored by an employer or trade association under GS 14-309.34.

    Amends proposed GS 14-309.34. Amends caption to read Applicability to employer paid events. Authorizes employers or trade associations with 25 or more employees or members, respectively, to hold a game night for their employees or members and guests, and for such persons to participate in the game night, so long as there is no cost or charge to the attendees, the employer or trade association obtains a permit and pays the required fee, and the game night is held at a qualified facility. Subjects game nights under this statute to the limitations of GS 14-309.28 (Limits on game night events) and GS 14-309.30 (Operation of game night events). Includes employers and trade associations under this statute within the definition ofexempt organizationfor GS 14-309.27 (Permit procedure), except that certain verification requirements do not apply to such applicants for a permit under this statute. Makes conducting a game night in violation of this statute a Class 2 misdemeanor, with an additional punishment that the employer or trade association may not conduct a game night for one year from the date of conviction.

    Enacts new GS 14-309.35 (Possession and transportation of gaming equipment). Declares possession and transportation of gaming equipment to be lawful, if possessed or transported solely for use in game night events conducted under this Part. Gaming equipment is not subject to seizure under GS 14-298 (Seizure of illegal gaming items).


  • Summary date: Jun 28 2017 - View Summary

    Senate amendment #1 makes the following changes to the 5th edition.

    Renames proposed GS 14-309.34 as Applicability to employer paid events. Deletes the proposed language and now provides the following. Establishes that it is lawful for an employer to hold a game night event for employees and guests or a trade association to hold a game night event for its members and guests, so long as (1) there is no cost or charge to attendees; (2) the employer or trade association obtains a permits and pays the required fee set out in new GS 14-309.27; and (3) the game night event is held at a qualified facility, as defined in new GS 14-309.25(4). Adds that verification of tax-exempt status and licensure or exemption under GS Chapter 131F required by GS 14-309.27(b)(3) and (4) are not required from an applicant for a permit if the applicant is required to obtain the permit pursuant to the provisions of GS 14-309.34 as amended and the applicant is not an exempt organization as defined in GS 14-309.25.


  • Summary date: Jun 26 2017 - View Summary

    Senate committee substitute makes the following changes to the 4th edition.

    More specifically provides that if any portion of Sections 1 through 4 of the act is held unconstitutional, or if the passage of Sections 1 through 4 of this act would cause the State to forfeit payments due under a compact entered into between the State and a federally recognized Indian tribe, then Sections 1 through 4 of the act are void (previously, generally provided any portion of the act being held unconstitutional or causing the State to forfeit payments under a compact are void). Sections 1 through 4 amend GS 14-292, enacts new Part 4 to Article 37 of GS Chapter 14, amend GS 18B-1000, and directs the Department of Public Safety to report to the 2019 Regular Session of the General Assembly on the administration of and related data pertaining to game night event permits. 


  • Summary date: Jun 21 2017 - View Summary

    Senate committee substitute makes the following changes to the 3rd edition.

    Changes the act's long title.

    Amends GS 14-309.6 to define a nonprofit organization to mean an organization or association recognized by the Department of Revenue as tax-exempt pursuant to GS 105-130.11(a) or any bona fide branch, chapter, or affiliate of that organization. Makes conforming changes to GS 14-309.15.

    Modifies and adds to GS 14-309.15 (Raffles). Adds new provision requiring that each regional or county chapter of a nonprofit organization be eligible to conduct raffles in accordance with the statute independently of its parent organization. Authorizes a nonprofit organization to hold no more than four raffles per year (was, limits nonprofit organizations to two raffles per year). Increases the maximum total cash prize that can be offered or paid by any nonprofit organization to $250,000 from $125,000. Makes conforming changes. 

    Amends GS 18B-308 (Sale and consumption at bingo games), removing raffles from the scope of the prohibition on the sale and consumption of alcohol under the statute. 

    Enacts GS 18B-903A, providing for reissuance of permits to a nonprofit organization that has received a limited special occasion permit pursuant to GS 18B-1001(9), or a special one-time permit pursuant to GS 18B-1002(a)(2) or (a)(5) within the preceding 18 months so long as the same individual representing the organization requests the reissuance of the permit for the same location. Details information required for reissuance, including the location and description of the event. Makes a reissued limited special occasion permit valid for 48 hours before and after the occasion for which the permit was issued and a reissued special one-time permit valid only for the period stated on the permit. Provides that the reissuance application fee is the same as the initial fee set out in GS 18B-902 and nonrefundable. Prohibits the Commission from investigating the applicant and the premises for which the reissuance is requested more than once every three years. Permits the Commission to request the assistance of local ABC officers in investigating applications. Makes it a Class 1 misdemeanor to knowingly make a false statement in the application for a permit reissuance. Also makes knowingly making a false statement on the reissuance application grounds for denying, suspending, revoking, or taking other action against the permit provided in GS 18B-104. Effective December 1, 2017, and applies to offenses committed on or after that date.

    Amends GS 18B-1002(a)(5), concerning special permits for local governments and nonprofit or political organizations to serve wine, malt beverages, and spirits at a ticketed fundraiser event. Adds a provision providing that the issuance of this permit allows nonprofit organizations 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. 


  • Summary date: May 23 2017 - View Summary

    House committee substitute makes the following changes to the 2nd edition.

    Amends proposed GS 14-309.26 (Game nights). Deletes provision stating that it is lawful for an exempt organization to conduct a game night at a qualified facility in accordance with GS 18B-1010 if applicable.


  • Summary date: Apr 19 2017 - View Summary

    House committee substitute makes the following changes to the 1st edition.

    Makes changes to new Part 4, Game Nights, of Article 37 of GS Chapter 37 as follows.

    Makes clarification to the definition of game night in GS 14-309.25 to specify that games of chance are played and prizes are awarded by raffle at the event.

    Makes clarification in GS 14-306.26 to provide that it is lawful for persons to participate in a game night conducted pursuant to new Part 4. Further specifies that the person applying on behalf of the exempt organization and who is responsible for the event, as indicated in GS 14-309.27(b)(2), is guilty of a Class 2 misdemeanor if the exempt organization conducts a game night in violation of any provision of new Part 4.

    Reduces the proposed permit fee set out in GS 14-309.27 from $250 to $100. Adds a new requirement that the permit must be displayed at the event, and establishes that a qualified facility is not subject to civil or criminal liability for violating Part 4 if the exempt organization provides the facility with a permit for the game night event.

    Amends the limitations provided for game night events in GS 14-309.28, prohibiting the operation of game night events on Sunday during the hours of 2:00AM and 2:00PM. Modifies GS 14-309.29 to increase the allowed cost of prizes and expenses to operate the game night event from no more than 50% of the proceeds derived from the event to no more than the proceeds derived from the event. Adds that if an exempt organization hires a game night vendor for the event, the fee must be fixed.

    Adds to the authorized games that can be played at a game night event set forth in GS 14-309.30, also allowing any other games specified in the permit application and approved by ALE.

    Adds to GS 14-309.34 to provide that the statute does not prohibit a private individual from holding a game night event at a private residence, as long as there is no cost or charge to the attendees. Provides that the event, and the other previously specified events in proposed GS 14-309.34, can be held in venues without licenses to serve alcohol. 

    Makes clarifying changes to proposed GS 18B-1000(5a), defining qualified facility

    Deletes proposed GS 18B-1010 (Simulated game night allowed at qualified facilities).


  • Summary date: Mar 28 2017 - View Summary

    Enacts Part 4 in Article 37 of GS Chapter 14 authorizing and regulating "game nights" held by nonprofit organizations. A nonprofit organization operating a game night must first obtain a permit by submitting an application with complete information including a $250 fee to either the central office or district office of the Alcohol Law Enforcement Section of the Department of Public Safety. Nonprofit organizations are prohibited from operating more than four game night events per year and each event must not exceed 5 hours. Regulates the timing of the events and sets out other limitations on the games. Limits the costs of prizes and expenses to 50% of the event proceeds. Cash prizes are prohibited and prizes are required to be awarded by raffles. Games are limited to roulette, blackjack, poker, craps, simulated horse racing, and merchandise wheel of fortune. Violations of game night regulations constitute gambling. Limits the applicability of the Part to areas of the state located east of I-26 as it was located on November 28, 2011. Does not prohibit an employer from holding an annual game night event for employees and guests or a trade association from holding an annual game night for its members and guests, so long as there is no charge to the attendees. Makes conforming changes.

    Effective October 1, 2017. If any portion of new Part 4 is held unconstitutional, or if the passage of new Part 4 would cause the State to forfeit payments due under a compact entered into between the State and a federally recognized Indian tribe, then new Part 4 is void.