Prizes for campaign cash? Bill would OK candidate fundraising raffles

Rep. Jim Newberger (R-Becker) first heard about candidate campaign raffles at a conference in Washington, D.C., shortly after Election Day last year.

“I’m sitting there thinking, ‘Really?’” he recalled Thursday before the House Government Operations and Elections Policy Committee.

The raffles sounded more fun to him than campaign fundraising events back home, where “the same eight people” show up and stand around nibbling so-so food.

Newberger said a bill he sponsors to make candidate campaign raffles legal in Minnesota, HF111, would bring excitement and energy to the next campaign season. It would be a new way to involve people, since Minnesota suspended political contribution refunds, with prizes that might include fishing equipment or video game systems.

The bill was held over for possible omnibus bill inclusion. It has no Senate companion.

Only candidates’ campaign committees would be able to hold raffles — not other political committees, funds, parties or party units. Other “guardrails” Newberger pointed to in his bill, include:

• no raffles while the Legislature is in session or special session;
• prizes would be limited to a retail value of no more than $3,000;
• raffle ticket buyers would have to be at least 18 years old;
• candidates would not be able to buy tickets for their own campaign raffles; and
• campaign officers, their family members and lobbyists would each be allowed to buy only one ticket.

Participants would not have to be present to win, Newberger said, prompting Rep. Cheryl Youakim (DFL-Hopkins) to ask whether that defeats the purpose of livening up campaign fundraisers.

Rep. Mike Freiberg (DFL-Golden Valley) wondered if HF111 would let a candidate circumvent state law by using campaign funds to buy a game system, then running an unadvertised raffle in which only the candidate’s spouse purchases a ticket. Newberger said that requiring raffles be held before a reporting deadline with the Minnesota Campaign and Finance and Public Disclosure Board could be added to the bill.

An amendment offered by Rep. Michael Nelson (DFL-Brooklyn Park) would have made campaign raffles subject to existing state law and taxes on raffles, but it failed on an 8-7 party-line, roll-call vote. 

Tom Barrett, executive director of the Minnesota Gambling Control Board, said his agency wouldn’t regulate raffles run by campaigns, because in his view they’re not charitable purposes.

Rep. Laurie Halverson (DFL-Eagan) said she found the prospect of candidates’ raffles competing with local charitable groups, whose raffle prizes have a lower $1,500 maximum value, “absolutely distasteful.” Newberger said candidates could choose not to hold raffles, and he is open to lowering the value limit.