(b) Notwithstanding the licensing requirements set forth in this Part, an authorized organization that has met the self-determination requirements of section 4601.1(c) of this Title may conduct a raffle without complying with such licensing requirements, provided that such organization shall derive net proceeds from raffles in an amount less than $5,000 during the conduct of one raffle and shall derive net proceeds from raffles in an amount less than $20,000 during one calendar year.

1. (1) No person under the age of 18 shall be permitted to play, operate or assist in any raffle conducted pursuant to this subdivision.
2. (2) Raffles conducted pursuant to this subdivision shall be conducted only within a municipality in which the authorized organization is domiciled that has passed a local law, ordinance or resolution in accordance with sections 187 and 188 of the General Municipal Law approving the conduct of games of chance that are located within the county or contiguous to the county in which the organization is domiciled.

3. (3) The commission shall penalize a licensee found to have violated paragraph (1) of this subdivision as follows:

   1. (i) for a first violation, a written warning of such violation;
   2. (ii) for a second violation within one year of a violation, a fine of $500;
   3. (iii) for a third violation within one year of a violation, a fine of $1,000; and
   4. (iv) for a fourth or subsequent violation within one year of a violation, such further actions as the commission may deem appropriate, which may include without limitation the suspension or revocation of any license or privilege to conduct raffles in this State.