Report I2017-2 Recommendation 7 Responses

Report I2017-2: Investigations of Improper Activities by State Agencies and Employees: Inaccurate Attendance Records, Violation of State Laws, and Misuse of State Resources (Release Date: October 2017)

Case Number I2016-1360

Recommendation #7 To: Corrections and Rehabilitation, Department of

The Department of Corrections and Rehabilitation should issue a memo to all staff no later than November 2017, and annually thereafter, regarding the prohibition of raffles and the unauthorized sale of alcohol and ammunition.

Agency Response From November 2017

In November 2017, Corrections issued a memo to all of its employees regarding the prohibition of raffles and the unauthorized sale of alcohol and ammunition.

California State Auditor's Assessment of Status: Fully Implemented

Agency Response From August 2017

In August 2017, Corrections stated that it agreed with our findings related to the illegal raffle and that it intended to educate its staff regarding the problems associated with holding the type of raffle discussed in this report. It plans to issue guidance to employees by November 2017 about the appropriate ways to hold workplace events involving prizes, donations, or fundraising.

However, Corrections did not agree that an illegal sale of alcohol occurred. Corrections asserted that a true sale, as a matter of law, would not include an element of chance. We disagree with Corrections' assertion and reaffirm that Business and Professions Code section 23025 specifies that a sale of alcohol occurs every time the ownership of alcohol transfers from one party to another for any consideration. Since participants purchased tickets to participate in the raffle, consideration was given that resulted in the illegal sale of alcohol each time the alcohol transferred ownership to the respective winner.