2026 -- H 8059

========

LC005754

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2026

____________

A N   A C T

RELATING TO CRIMINAL OFFENSES -- GAMBLING AND LOTTERIES

     Introduced By: Representatives Casey, Phillips, Hopkins, O'Brien, Dawson, Read,
Corvese, Biah, Azzinaro, and Place

     Date Introduced: February 27, 2026

     Referred To: House Judiciary

     It is enacted by the General Assembly as follows:

     SECTION 1. Sections 11-19-30 and 11-19-31 of the General Laws in Chapter 11-19

entitled "Gambling and Lotteries" are hereby amended to read as follows:

     11-19-30. Definitions.

     The following definitions apply within this chapter:

     (a) “Charitable organization” means any benevolent, educational, philanthropic, humane,

patriotic, social service, civic, fraternal, police, labor, religious, eleemosynary person, and/or

persons holding themselves out to be a charitable organization.

     (b) “Charitable purpose” means any benevolent, educational, humane, patriotic, social

service, civic, fraternal, police, labor, religious, or eleemosynary purpose, provided that no part of

the net earnings inures to the benefit of any private shareholder or individual.

     (c) “Department” means the division of state police unless otherwise described.

     (d) “Director” means the superintendent of state police or the director’s designee.

     (e) “Nonprofit organization” means an organization that operates for a purpose other than

generating a profit and no part of the organization income is distributed to its members, directors

or officers. Nonprofit organizations include churches, charities, clinics, hospitals, sports

organizations, condominium associations, political organizations, labor organizations, museums

and research facilities.

     (e)(f) “Permitted game of chance” means the game commonly known as “Bingo” or

“Beano” or substantially the same game under any other name, or a raffle or lottery or that lottery

commonly known as a “twenty (20) week club”.

     11-19-31. Registration of charitable organizations Registration of charitable and non-

profit organizations.

     (a) No charitable or non-profit organization which intends to conduct a permitted game of

chance within the state of Rhode Island shall conduct a game unless it shall file a registration

statement with the department upon prescribed forms and receives a certificate of approval.

     (b) In addition, in order to obtain a renewal of registration, charitable organizations shall

file the statements required by this chapter prior to June 1st of each year.

     (c) It shall be the duty of the president, chair, or principal officer of a charitable

organization to file the statements required under this chapter. These statements shall be sworn to

and shall contain the following information:

     (1) The name of the organization and the purpose for which it was organized.

     (2) The principal address of the organization and the address of any offices in this state. If

the organization does not maintain an office, the name and address of the person having custody of

its financial records.

     (3) The place where and the date when the organization was legally established and the

form of its organization.

     (4) The names and addresses of the officers, directors, and/or trustees of the organization

and the names and addresses of officers, staff, and/or members who receive a salary or any other

form of compensation, the source of which is the proceeds from the permitted games of chance

subject to subdivision (9) of this subsection.

     (5) A copy of the annual financial statement of the organization audited by an independent

public accountant licensed by the state of Rhode Island for the organization’s immediately

preceding fiscal year, or a copy of a financial statement covering, in a consolidated report, complete

information as to all the preceding year’s fund-raising from the above-mentioned games showing

kind and amount of funds raised, costs and expenses incidental to it, and allocation or disbursements

of funds raised.

     (6) The general purpose or purposes for which the proceeds from the game shall be used.

     (7) The name or names under which it intends to conduct the game.

     (8) The names of the individuals or officers of the organization who will have final

responsibility for the custody of the proceeds from the game.

     (9) A listing of the names, addresses and the compensation of all individuals, directors,

officers, agents, servants, and/or employees of the organization who receive compensation,

commission, or other remuneration, directly or indirectly, from the gross receipts of such games in

LC005754 - Page 2 of 4

excess of seven hundred fifty dollars ($750) annually.

     (10) The names of the individuals or officers of the organization responsible for the final

distribution of the proceeds. The director or the director’s designee shall examine each initial

application of charitable organizations for the right to conduct the above-mentioned games and

each renewal application of charitable organizations for the right to conduct such games and if

found to be in conformity with the requirements of this chapter and all relevant rules and regulations

it shall be approved for registration.

     (d) The registration forms and any other documents prescribed by the department shall be

signed by an authorized officer, an independent public accountant, and by the chief fiscal officer

of the charitable organization and shall be verified under oath.

     (e) The department shall make or cause to be made any investigation of any applicant that

it shall deem necessary. No approval shall be required by any local law enforcement agency. As a

result of its investigation and action, the department shall certify to the local police department or

local licensing authority its approval or disapproval of the application. No applicant shall be

approved if one or more of the following facts is found to exist:

     (1) That one or more of the statements in the application are not true;

     (2) That the applicant is or has engaged in a fraudulent transaction or enterprise;

     (3) That the game would be a fraud upon the public;

     (4) That game expenses during any of the three (3) years immediately preceding the date

of application have exceeded twenty-five percent (25%) of the total gross money or gross receipts

raised or received by reason of the games. In the event special facts or circumstances are presented

showing that expenses higher than twenty-five percent (25%) were not unreasonable, the

department, pursuant to rule and regulation, has the discretion to allow the higher expenses;

     (5) That the expected cost of conducting the games for the specific year for which the

application will exceed twenty-five percent (25%) of the total gross money or receipts to be raised

or received by reason of the games; or

     (6) That the activities to be financed will be incompatible with the health, safety, or welfare

of the state of Rhode Island.

     SECTION 2. This act shall take effect upon passage.

========

LC005754

========

LC005754 - Page 3 of 4

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO CRIMINAL OFFENSES -- GAMBLING AND LOTTERIES

***

     This act would allow nonprofit organizations to participate in permitted games of chance

upon registering with the state police on an annual basis. The nonprofit would be exempt from any

required background checks by local law enforcement.

     This act would take effect upon passage.

========

LC005754

========

LC005754 - Page 4 of 4