2013 Vermont Statutes
Title 32 Taxation and Finance
Chapter 239 GAMES OF CHANCE
§ 10203 Distribution; retail purchase and sale

10203. Distribution; retail purchase and sale

(a) Only nonprofit organizations may purchase break-open tickets from distributors licensed under this chapter.

(b) A nonprofit organization may purchase break-open tickets only from a distributor licensed under this chapter.

(c) No person, other than a licensed distributor, shall distribute a box of break-open tickets, and no person shall distribute a box of break-open tickets, unless the box bears indicia as required by the Commissioner. No person shall distribute or sell a break-open ticket at retail unless the ticket bears a unique serial number.

(d) A distributor licensed under this chapter may sell break-open tickets only to nonprofit organizations as defined in subdivision 10201(5) of this title, except that a person other than a licensed distributor may sell such tickets to a licensed distributor upon written approval of the Commissioner.

(e) Only nonprofit organizations may sell break-open tickets at retail.

(f) Break-open tickets shall not be sold at premises licensed to sell alcoholic beverages except at clubs as defined in 7 V.S.A. 2(7). However, a nonprofit organization may sell break-open tickets at premises licensed to sell alcoholic beverages if, notwithstanding 13 V.S.A. 2143(e), all proceeds from the sale of break-open tickets are used by the nonprofit organization exclusively for charitable, religious, educational, and civic undertakings, with only the following costs deducted from the proceeds:

(1) actual cost of the break-open tickets;

(2) the prizes awarded;

(3) reasonable legal fees necessary to organize the nonprofit organization and to assure compliance with all legal requirements; and

(4) reasonable accounting fees necessary to account for the proceeds from the sale of break-open tickets.

(g) The provisions of this chapter regarding sales and purchases of break-open tickets also apply to transfers of break-open tickets for no charge. (Added 1991, No. 267 (Adj. Sess.), 2, eff. Oct. 1, 1992; amended 1993, No. 183 (Adj. Sess.), 9; 2003, No. 70 (Adj. Sess.), 61, eff. March 1, 2004.)