State v. McCleary

308 S.E.2d 883, 65 N.C. App. 174, 1983 N.C. App. LEXIS 3481
CourtCourt of Appeals of North Carolina
DecidedDecember 6, 1983
Docket8227SC1115
StatusPublished
Cited by15 cases

This text of 308 S.E.2d 883 (State v. McCleary) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State v. McCleary, 308 S.E.2d 883, 65 N.C. App. 174, 1983 N.C. App. LEXIS 3481 (N.C. Ct. App. 1983).

Opinions

JOHNSON, Judge.

This appeal involves a constitutional challenge to the statutory scheme embodied in G.S. Chapter 14, Article 37, regulating lotteries and gambling, and exempting certain types of organizations from the general prohibitions against these activities. The constitutionality of this exemption presents a question of first impression under Article 37. While the prohibition against dealing in a lottery contained in G.S. 14-290 dates back to [176]*176the early nineteenth century, the exemption for the organizations listed in G.S. 14-292.1 is of recent origin, dating back only to 1979. See Session Laws, 1979, c. 893, s. 2.1 For the reasons set forth more fully below, we conclude that the provisions of G.S. 14-292.1, with one exception, do not violate the constitutional guarantees of due process and equal protection, and that the trial court erred in dismissing the warrants against defendant pursuant to G.S. 14-289 and G.S. 14-290.

G.S. 14-289, which prohibits the advertising of lotteries, contains an exception that excludes from its terms lawful raffles conducted pursuant to G.S. 14-292.1. G.S. 14-290, which prohibits dealing in lotteries, contains identical language. G.S. 14-292.1 allows certain exempt organizations to hold, and individuals to participate in, raffles or bingo games so long as they are conducted according to its terms. The definition of an “exempt organization” in subsection (b)(1) contains the following requirements:

1. The organization has been in continuous existence in the county of operation of the raffle or bingo game for at least one year, And
2. The organization is exempt from taxation under
A. Sections 501(c)(3), 501(c)(4), 501(c)(8), 501(c)(10), 501(c)(19), or 501(d) of the Internal Revenue Code Or
B. Is exempt under similar provisions of North Carolina General Statutes [G.S. 105-130.11] as a bona fide nonprofit charitable, civic, religious, fraternal, patriotic or veterans’ organization or as a nonprofit volunteer fire department, or as a nonprofit volunteer rescue squad or a bona fide homeowners’ or property owners’ association. (If the organization has local branches or chapters, the term “exempt organization” means the local branch or chapter operating the raffle or bingo game.) (Spacing and letters added.)

[177]*177The remainder of G.S. 14-292.1 contains detailed provisions regulating the manner in which lawful bingo games and raffles must be conducted. Subsection (b)(3) defines “raffle” as a lottery in which the prize is won by random drawing of a name or number of a person purchasing chances. Subsection (c) provides that the exempt organization must display a “determination letter” from the Internal Revenue Service or the North Carolina Department of Revenue “that indicates that the organization is an exempt organization.”2

Subsection (d) details the uses for which exempt organizations may expend the bingo or raffle proceeds. “Authorized expenditures” include expenses incurred in the operation of the bingo games or raffles. Subsection (d) states further that all proceeds remaining after the authorized expenditures shall inure to the exempt organization to be used in either of two basic ways:

(1) For religious, charitable, civic, scientific, testing for public safety, literary, or educational purposes, OR
(2) For purchasing, constructing, maintaining, operating or using equipment or land or a building or improvements thereto owned by and for the exempt organization and used for civic purposes or made available by the exempt organization for use by the general public from time to time or to foster amateur sports competition or for the prevention of cruelty to children or animals, provided that no proceeds shall be used or expended for social functions for the members of the exempt organization.

The State presented no evidence during the hearing conducted in Superior Court on the defendant’s motion to dismiss the charges. The only facts of record concerning defendant are contained in the allegations in the two warrants. They are as follows: On or between 21 September and 12 October 1981, defendant Mc-CIeary published an account of a lottery by means of a printed circular and an advertisement in a local Gaston County newspap[178]*178er stating how, when and where the lottery was to be drawn. The contest was to be for a three bedroom brick home with fireplace, central air, oil heat, and two full baths. Entry into the contest required a “donation” in the amount of $25.00, to be made to “Mc-Cleary Enterprises,” Rt. 2, Box 343, Bessemer City, N.C. The contest would end at 12 midnight on 28 February 1982, with the drawing to be held on 10 March 1982 at 10:00 a.m., on the prize house premises located off 1-85 and 29, less than one mile from the Kings Mountain city limits in Gaston County. The foregoing activity was alleged to violate G.S. 14-289. The second warrant alleged that on or about 21 September 1981, defendant opened, carried on and promoted, publicly and privately, a lottery, and by advertisement attempted to sell a house by means of a lottery, the contest winner to receive a three bedroom brick home in return for a $25.00 donation, in violation of G.S. 14-290. The defendant was arrested on 17 November 1981 and subsequently convicted of these offenses in the District Court.

The charges against defendant were dismissed by the Superior Court judge on the grounds that “to prosecute this defendant while not prosecuting those persons, groups or classifications exempted in [G.S.] 14-292.1 would in effect amount to a denial of due process and equal protection in violation of Article I, Section 19 of the Constitution of North Carolina and the Fifth and Fourteenth Amendments to the Constitution of the United States.” The court ordered the warrants against the defendant dismissed, and declared G.S. 14-292.1 unconstitutional. On appeal, the State contends that General Statutes 14-289, 14-290, and 14-292.1 do not violate either the due process or equal protection provisions of the state and federal constitutions.

Prior to our discussion of the merits of the State’s appeal, we note that even if the trial court were correct in its determination that G.S. 14-292.1 was unconstitutional, it would have been error to dismiss the warrants against defendant. It is a general rule of statutory construction that whether the valid and invalid parts of a statute are separable is a question of legislative intent, and when unconstitutional excepting provisions can be removed without altering the basic prohibitions of the statute, they alone may be voided, leaving the general prohibition intact. See U.T. Inc. v. Brown, 457 F. Supp. 163, 170 (W.D.N.C. 1978). See generally 82 C.J.S., Statutes, § 93 c. The valid part of a statute will be sus[179]*179tained if the valid and invalid parts are not so intimately connected or interdependent as to raise the presumption that the legislature would not have enacted the one without the other. Id. at p. 156.

G.S. 14-292.1 constitutes a distinct exception to the general and long standing prohibitions of G.S. 14-289 and G.S. 14-290.

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State v. McCleary
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Bluebook (online)
308 S.E.2d 883, 65 N.C. App. 174, 1983 N.C. App. LEXIS 3481, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-mccleary-ncctapp-1983.