hb259_LC_29_3087S_hs_6.html
08 LC 29 3087S

The House committee on Judiciary Non-civil offers the following substitute to HB 259:

A BILL TO BE ENTITLED
AN ACT


To amend Article 2 of Chapter 12 of Title 16 of the Official Code of Georgia Annotated, relating to gambling and related offenses, so as to provide that certain nonprofit organizations may give away certain noncash prizes to advance the purposes of such nonprofit organization; to provide conditions for the giving of such prizes by nonprofit organizations and businesses; to provide for related matters; to provide for an effective date and applicability; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.
Article 2 of Chapter 12 of Title 16 of the Official Code of Georgia Annotated, relating to gambling and related offenses, is amended by revising paragraph (4) of Code Section 16-12-20, relating to definitions, as follows:
"(4) 'Lottery' means any scheme or procedure whereby one or more prizes are distributed by chance among persons who have paid or promised consideration for a chance to win such prize, whether such scheme or procedure is called a pool, lottery, raffle, gift, gift enterprise, sale, policy game, or by some other name. A lottery shall also include the organization of chain letter or pyramid clubs as provided in Code Section 16-12-38. A lottery shall not mean a:
(A) Promotional giveaway or contest which conforms with the qualifications of a lawful promotion specified in paragraph (16) of subsection (b) of Code Section 10-1-393;
(B) Scheme whereby a business or a nonprofit organization qualified under Section 501(c) of the federal Internal Revenue Code, as amended, gives away noncash prizes that cannot be exchanged or redeemed for cash to persons selected by lot if such prizes are made on the following conditions:
(i) Such prizes are conducted as advertising and promotional undertakings in good faith solely for the purpose of advertising the goods, wares, and merchandise of such business or solely to advance the purposes of such nonprofit organization; provided, however, that a business may participate in a promotion to advance the purposes of a nonprofit organization; and
(ii) No A person to be eligible to receive such prize may, but shall not be required to:
(I) Pay any tangible consideration to the operator of such business or to such nonprofit organization in the form of money or other property or thing of value;
(II) Purchase any goods, wares, merchandise, or anything of value from such business or such nonprofit organization; or
(III) Be present or be asked to participate in a seminar, sales presentation, or any other presentation, by whatever name denominated, in order to win such prizes; or
(iii) A business or nonprofit organization that offers promotional prizes to the public by means of a mechanical or electronic device shall not offer more than two such promotions using such devices in any location at any given time;
(iv) The rules or procedures for eligibility for such prizes must clearly and conspicuously allow a person to become eligible without paying any tangible consideration to the operator of such business or to such nonprofit organization in the form of money or other property or thing of value; purchasing any goods, wares, merchandise, or anything of value from such business or nonprofit organization; or being present or participating in a seminar, sales presentation, or any other presentation by whatever name denominated; and
(v) The method actually used to select winners of such prizes shall not discriminate against persons who have followed eligibility procedures described in division (iv) of this subparagraph; or
(C) Raffle authorized under Code Section 16-12-22.1."

SECTION 2.
This Act shall become effective on July 1, 2008, and shall apply to the award of prizes and related conduct that occurs on or after such date. Any offense committed before July 1, 2008, shall be punishable as provided by the statute in effect at the time the offense was committed.

SECTION 3.
All laws and parts of laws in conflict with this Act are repealed.