75 Op. Att'y Gen. 273, 279 (1986)
Our supreme court has stated this principle in the following manner: "'[t]he plain, obvious and rational meaning of a statute is always to be preferred to any curious, narrow, or hidden sense....'" A.O. Smith Corp. v. Department of Revenue
, 43 Wis. 2d 420, 429, 168 N.W.2d 887 (1969), quoting from State Bank of Drummond v. Nuesse
, 13 Wis. 2d 74, 78, 108 N.W.2d 283 (1961).
75 Op. Att'y Gen. 273, 279 (1986)
I, therefore, conclude that the common sense, plain, obvious and rational meaning of the statute involved prohibits any such payments. Also, the words utilized by the Legislature in section 163.94 have recognized meanings in the law.
75 Op. Att'y Gen. 273, 279 (1986)
The word profit is defined as meaning "[m]ost commonly, the gross proceeds of a business transaction less the costs of the transaction; i.e.
, net proceeds. Excess of revenues over expenses for a transaction; sometimes used synonymously with net income for the period. Gain realized from business or investment over and above expenditures." Black's Law Dictionary
1090 (5th ed. 1979).
75 Op. Att'y Gen. 273, 279 (1986)
Were this the only word used and referred to in the statute under consideration, and the words "fees" and "salaries" were not present, the argument could be advanced that the payments about which you inquire are prohibited only if made from the net proceeds or "profits" from raffle activity.
75 Op. Att'y Gen. 273, 279 (1986)
They are present in the statute, however, and to construe them as being equivalent to the meaning of "profit" so as to prohibit such payments only
if made out of profits would result in rendering the words fees and salaries surplusage. Those words do, in fact, have meanings separate and distinct from the word profit.
75 Op. Att'y Gen. 273, 279 (1986)
Black's Law Dictionary defines fees in part as a reward, wage or compensation given to a person for performance of services or something done and defines salaries in part as reward or recompense for services performed. Clearly, they are not analogous or equivalent to the word profit.
75 Op. Att'y Gen. 273, 279 (1986)
Therefore, I conclude all such payments to be prohibited regardless of source.
75 Op. Att'y Gen. 273, 280 (1986)
IV.
75 Op. Att'y Gen. 273, 280 (1986)
ORGANIZATION-IMPOSED LIMITATION ON DISTRIBUTION OF RAFFLE TICKETS
75 Op. Att'y Gen. 273, 280 (1986)
You next ask whether a licensed organization may: (a) require ticket purchasers to become a member of the licensed organization or pay a separate fee in order to buy raffle tickets, or (b) require ticket purchasers to buy more than one ticket as a condition to participating in the raffle.
75 Op. Att'y Gen. 273, 280 (1986)
Answering subquestion (a), I find nothing in the statutues or relevant court decisions regarding lotteries which prohibits an organization from restricting raffle ticket sales to members. However, an organization which charges prospective raffle ticket purchasers a separate fee in order to purchase tickets is in fact violating section 163.93(2) if the stated ticket cost plus the fee combine to exceed $5.00 per ticket. I believe this conclusion to be further required by the expressed legislative policy of discouraging all types of commercialization.
75 Op. Att'y Gen. 273, 280 (1986)
In response to subquestion (b), the requirement that a prospective purchaser must buy multiple tickets flies straight in the face of the already mentioned and explicitly stated policy of the Legislature. In addition, there is implicit in your question another issue.
75 Op. Att'y Gen. 273, 280 (1986)
I am advised that some organizations have utilized a method of selling tickets wherein prospective purchasers are required to buy a sheet or block of tickets. Each "ticket" in the block or sheet is stated to cost $5.00, and there are usually twenty "tickets" to a sheet or in a block, thereby costing the buyer $100.00. However, for each sheet or block purchased the buyer receives only one
entry for the eventual drawing for prizes.
75 Op. Att'y Gen. 273, 280 (1986)
If this method is utilized, such scheme clearly violates section 163.93(2) in that it is in actuality the sheet or block of tickets which comprises "a ticket" whose cost is therefore clearly in excess of $5.00.
75 Op. Att'y Gen. 273, 280 (1986)
V.
75 Op. Att'y Gen. 273, 280 (1986)
DEFINITION OF "SERVICE ORGANIZATION"
75 Op. Att'y Gen. 273, 280-281 (1986)
You next ask me to define "service organization" as that phrase is used in section 163.90. You indicate in your request that the department has apparently adopted as a criterion for eligibility under that section that an applicant organization must have as one of its principle purposes the benefit of the public. I agree with that conclusion.
75 Op. Att'y Gen. 273, 281 (1986)
Section 990.01(1) establishes a general rule in construction of statutes that nontechnical words and phrases and those to which the law has attributed no peculiar meaning shall be construed according to common and approved usage.
75 Op. Att'y Gen. 273, 281 (1986)
The Random House Dictionary of the English Language, unabridged edition, defines service club to mean "any of several organizations maintained to contribute to the growth and general welfare of its members and the community." And See
73 Op. Att'y Gen. 114 (1984).
75 Op. Att'y Gen. 273, 281 (1986)
Therefore, I conclude that an organization, in order to qualify as a "service organization," must as a minimum have as one of its principle purposes the benefit, the growth and the general welfare of the community.
75 Op. Att'y Gen. 273, 281 (1986)
VI.
75 Op. Att'y Gen. 273, 281 (1986)
AMENDMENTS TO RAFFLE LICENSES
75 Op. Att'y Gen. 273, 281 (1986)
Finally, you ask if a licensed organization may amend its raffle license, together with its articles of incorporation, constitution or bylaws, to change the organization's purpose for existence.
75 Op. Att'y Gen. 273, 281 (1986)
Section 163.92(2) provides in pertinent part that "[u]pon application by an organization licensed under this subchapter a license may be amended if the subject matter of the amendment properly and lawfully could have been included in the original license" and that "[a]n amendment may revise any
of the information on the original license."
75 Op. Att'y Gen. 273, 281 (1986)
I conclude that so long as the organization remains fully eligible for a raffle license after
the amendments, there is no question that the statute specifically allows such an amendment.
75 Op. Att'y Gen. 273, 281 (1986)
You also ask whether an organization that amends its raffle license to reflect a change in stated purpose during the course of selling raffle tickets is obligated to notify ticket purchasers of the change in stated purpose.
75 Op. Att'y Gen. 273, 281-282 (1986)
Section 100.18(1) prohibits untrue, deceptive or misleading statements in advertising. If the promotional materials for the raffle state that the proceeds are going to be used for a certain purpose and that stated purpose is later changed by an amendment to the raffle license and the advertising for the sale of the raffle tickets remains unchanged, such advertising could then potentially violate the relevant provisions of section 100.18. Therefore, promoters of raffles should notify purchasers and prospective purchasers of raffle tickets of the change in use to which the proceeds would be put.
75 Op. Att'y Gen. 273, 282 (1986)
JDJ:JCM
75 Op. Att'y Gen. 273, 273 (1986) - Footnote
Destination-119 Although it is unnecessary to resort to legislative history because the statute is clear and unambiguous on its face, it is noteworthy that the Legislature, in inserting the word "local" into the state raffle law, appears to have intended the word to have its ordinary and common meaning rather than the peculiar meaning adopted by the board. The specific language of section 163.90 is taken directly from the constitutional amendment which modified Wisconsin's strict constitutional prohibition against lotteries. See
Wis. Const. art. IV, 24. The drafting records show that the word local was not contained in the first draft of the amendment. The word was added by special request of State Representative Gunderson, the legislator who had requested the original draft. This drafting request expressly states that "local" was added because Representative Gunderson did not
"want statewide or national organizations to be able to hold raffles or receive profits from them."
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oag/Destination-119
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