19790904 1979-15ORDINANCE NO. 1979-15
AN ORDINANCE AMENDING SECTION 14-10
AND ENACTING SECTIONS 14-10.1 THROUGH 14-10.12
OF THE FAIRFAX CITY CODE
BE IT ORDAINED by the City Council of the City of Fairfax,
Virginia that Section 14-10 of the Code of the City of Fairfax
be, and hereby is, amended and reenacted, and that Sections
14-10.1 through 14-10.12 of the Code of the City of Fairfax be,
and hereby are, enacted, all to read in their entirety as
follows:
"Sec. 14-10. Gambling.
'Any person who maintains or operates within the City a
house, room or other place for the purpose of a gambling opera-
tion shall be guilty of a class 1 misdemeanor.
Any person who frequents or visits any such house, room,
or other place for the purpose of gambling shall be guilty of a
class 3 misdemeanor.
'This Section shall not apply to any bingo game or raffle
conducted solely by an organization as defined in Section
14-10.1(1) (a) and (b) which has met the requirements set forth
in Section 14-10.3 and has received a permit as set forth in
Section 14-10.2.
Sec. 14-10.1 Bingo and Raffles: Definitions.
The following words 'shall have the following meanings:
1. "Organization" means any one of the following:
(a) A voluntary fire department or rescue squad or auxil-
iary Rnit thereof which has been recognized by an ordinance or
by resolution of the City Council as being a part of the safety
program of the City of Fairfax.
(b) An organization operated exclusively for religious,
charitable, community or educational pruposes; an association
of war veterans or auxiliary units thereof organized in the
United States, or a fraternal association operating under the
lodge system.
1979-15
-2-
2. "Bingo" means a specific game of chance played with
individual cards having randomly numbered squares ranging from
one to seventy-five, in which prizes are awarded on the basis
of designated numbers on such cards conforming to a predeter-
mined pattern of numbers selected at random. Such cards shall
have five vertical rows headed respectively by the letters
B.I.N.G.O., with each row having five randomly numbered squares.
3. "Raffle" means a lottery in which the prize is won by
a random drawing of the name or prearranged number of one or
more persons purchasing chances.
4. "Instant bingo" means a specific game of chance
played by the random selection of one or more individually
prepacked cards, tickets or other pieces of paper, with winners
being determined by the preprinted appearance of the letters
B.I.N.G.O. in any prescribed order on the reverse side of such
card.
· Sec. 14-10.2 Permit required.
Prior to the commencement of any bingo game or raffle by a
qualified organization as defined herein such organization
shall be required to obtain an annual permit from the City
Manager. Such permit shall be granted only after a reasonable
investigation has been conducted by the Fairfax City Police
Department. Application for such annual permit shall be accom-
panied by a fee in the amount of twenty-five dollars; all
checks or money orders shall be payable to: City of Fairfax.
Application for such annual permit shall be made by completing
and submitting the form in Code of Virginia Section 18.2-340.2.
The application shall be a matter of public record.
Sec. 14-10.3 Issuance of permit; requirements~ duration,
waiver, where valid.
A. Prior to the issuance of any permit the organization
must meet the following requirements:
1. Such organization shall have been in existence and
met on a regular basis in the City of Fairfax for a period of
at least two years immediately prior to making application for
such permit.
1979-15
-3-
2. A permit shall be valid only in the City of Fairfax
and only at such locations as are designated in the permit
application. However, a permit may be issued to an organiza-
tion which relocates its meeting place on a permanent basis
from another jurisdiction to the City of Fairfax, provided such
organization has complied with the requirements of subsection
1. herein with respect to such other jurisdiction, and was the
holder of a valid permit in such other jurisdiction at the time
of such relocation. An organization which has obtained a
permit under this ordinance to conduct a raffle may sell such
raffle tickets both in and out of the City of Fairfax.
3. Such organization shall be operated currently and
shall have always been operated in the past as a nonprofit
organization and shall have been in existence as such nonprofit
organization for a period of at least two years immediately
prior to seeking a permit as hereinafter provided.
4. Any organization whose gross receipts from all bingo
operations exceed or can be expected to exceed fifty thousand
dollars in any calendar year shall have been granted tax-exempt
status pursuant to § 501 C of the United States Internal Revenue
Code.
B. All permits shall be issued on a calendar basis and
unless otherwise provided shall be valid for one calendar year
beginning on the first day of January.
C. Ail applications for such permit shall be acted upon
by the City Manager within sixty days from the filing thereof.
D. Upon compliance by the applicant with the provisions
of this ordinance, the City Manager may issue an annual permit.
All permits shall be subject to reasonable regulation by the
City of Fairfax to ensure the public safety in the operation of
bingo games.
~Sec. 14-10.4 Conduct of bingo games.
No organization may hold bingo games more frequently than
two calendar days in any one calendar week, except that a
special permit may be granted an organization which will entitle
1979-15
-4-
it to conduct more frequent operations during carnivals, fairs
and other similar events at its principal meeting place or any
other site selected by such organization which is located in
the City of Fairfax and which is not in violation of the Zoning
Ordinance.
Sec. 14-10.5 Instant bin~0.
(a) Any organization qualified to conduct bingo games
pursuant to the provisions of this Chapter is authorized to
play "instant bingo" as a part of such bingo game; provided
however, that "instant bingo" may be conducted only at such
times as a regular bingo game is in progress and only at such
location and at such times as are specified in the approved
bingo permit.
(b) The gross receipts in the course of a reporting year
from the playing of "instant bingo" shall not exceed thirty-
three and one-third per cent (33 1/3%) of the gross receipts of
an organization's bingo operation.
(c) Any organization playing "instant bingo" shall main-
tain a record of the date, quantity and card value of instant
bingo supplies purchased as well as the name and address of the
supplier of such instant bingo supplies. The organization
shall also maintain a written invoice or receipt from a nonmember
of the organization verifying any information required by this
section.
(d) No organization shall sell an "instant bingo" card to
any individual below sixteen years of age.
Sec. 14-10.6 Reports of ~ross receipts and disbursements required.
A. Complete records of all receipts and disbursements
shall be filed annually under oath with the Comptroller of the
City of Fairfax. The annual or quarterly financial report and
other items required to be filed under this section shall be a
matter of public record. All such accountings shall be made on
or before the first day of November of each calendar year for
which a permit has been issued. Such accounting shall include
a record of the gross receipts and disbursements of an organiza-
1979-15
-5-
tion for the year period which commenced on the first day of
October of the previous year. Provided, however, any organiza-
tion whose gross receipts exceed fifty thousand dollars during
any calendar quarter shall be required to file an additional
accounting of its receipts and disbursements during each quarter,
no later than sixty days following the last day of such quarter.
"Gross receipts", as used in this Section, shall mean the total
amount of money received from bingo operations and raffles
before the deduction of expenses or prizes.
B. 1. All such reports of receipts and disbursements
shall be made on the form provided in Code of Virginia Section
18.2-340.6 and shall be acknowledged before a duly authorized
notary public. The failure to file such reports when due shall
cause the automatic revocation of the permit and no such organiza-
tion shall conduct any bingo game or raffle thereafter until
such report is properly filed and a new permit is obtained.
2. Such financial report shall be accompanied by a
certificate, verified under oath, by the Board of Directors
that the proceeds of bingo games or raffles have been used for
the lawful, religious, charitable, community or educational
purposes for which the organization is specifically chartered
or organized and that the operation of bingo games or raffles
has been in accordance with the provisioD~ of Article 1.1 of
Chapter 8 of Title 18.2 (§ 18.2-340.1 et seq.) of the Code of
Virginia and in accordance with this Ordinance.
C. Notwithstanding the provisions herein requiring an
annual audit, the provisions of this section shall not be
construed so as to prohibit the Comptroller of the City of
Fairfax or his designee from performing unannounced audits or
restrict any right of the Comptroller or his designee to secure
records required to be maintained by the provisions of this
Ordinance. The Comptroller or his designee shall have the
authority to enter upon the premises upon which any organiza-
tion is conducting a bingo game for the purpose of carrying out
the duties imposed by this Ordinance. The application for the
1979-15
-6-
bingo permit shall constitute permission from, and authority
granted by, such organization to any law-enforcement officer or
to the Comptroller or his designee to enter upon such premises.
D. The organization shall maintain a record in writing
of the dates on which bingo is played, the number of people in
attendance on each date and the amount of the receipts and
prizes paid on each such day. The organization shall also
maintain a record of the name and address of each individual to
whom a door prize, regular or special bingo game prize or
jackpot from the playing of bingo is awarded, as well as the
amount of such award. The organization playing bingo shall
also maintain an itemized record of all receipts and disburse-
ments, including operating costs incurred and the use of proceeds.
'Sec. 14-10.7 Audit required, fee.
A. All reports filed pursuant to Section 14-10.6 shall be
audited under the direction of the Comptroller of the City of
Fairfax or his designee. All such reports shall be a matter of
public record.
B. An audit fee shall be payable in the amount of 1% of
the gross receipts reported pursuant to Section 14-10.6 or of
the actual cost, whichever is less. All such fees shall be
made payable to the City of Fairfax, and shall accompany each
such annual report.
'Sec. 14-10.8 Other prohibited practices.
In addition to those practices prohibited elsewhere in
this Ordinance, the following acts or practices shall be pro-
hibited:
A. Except for reasonable and proper operating costs and
prizes, no part of the gross receipts derived by an organization,
as herein defined, permitted to conduct bingo games or raffles,
may be used for any purpose other than those lawful religious,
charitable, community or educational purposes for which the
organization is specifically chartered or organized.
B. No organization shall enter into a contract with, or
otherwise employ for compensation, any person, firm, association,
1979-15
-7-
organization, partnership, or corporation of any classification
whatsoever, for the purpose of organizing, managing or conducting
bingo games or raffles.
C. No person, firm, association, organization, partnership,
or corporation shall pay or receive for the use of any premises,
devoted in whole or in part to the conduct of bingo games or
raffles, any consideration in excess of the current fair market
rental value of such property. For purposes of this Ordinance,
fair market rental value shall not be determined by reference
to a percentage of the proceeds derived from the operation of
bingo games or raffles, nor shall such consideration be based
upon or determined by any reference to the number of people in
attendance at such bingo games or raffles. Each day in viola-
tion of this subsection shall constitute a separate Class 1
misdemeanor as set forth in ~ 14-10.9.
D. No building or other premises shall be utilized in
whole or in part for the purpose of conducting bingo games more
frequently than two calendar days in any one calendar week;
provided, however, that the provisions of this subsection shall
not apply to the playing of bingo pursuant to a special permit
issued in accordance with ~ 14-10.4. Nor shall the provisions
of this subsection apply to any building or premises owned by
an organization as defined in ~ 14-10.1 and qualified as a tax
exempt organization pursuant to ~ 501C of the Internal Revenue
Code.
E. No person, except a bona fide member of any such
organization who has been such a member for at least ninety
days prior to such participation, shall participate in the
management, operation or conduct of any bingo game or raffle,
provided, however, that the following persons may so partic-
ipate if a bona fide member is present:
(1) the spouse of any bona fide member, or
(2) a salaried or compensated fire fighter or rescue
squad member who is both (a) employed by the City of Fairfax,
and (b) associated with a volunteer fire department or rescue
squad meeting the requirements of Section 14-10.1(1)(a).
1979-15
-8-
No person shall receive any remuneration for participating
in the management, operation or conduct of any such game or
raffle.
F. No organization shall enter into any contract with or
otherwise employ or compensate any member of that organization
regarding the sale of bingo supplies or equipment.
G. No organization shall award any prize money or any
merchandise valued in excess of the following amounts: (i) no
door prize shall exceed twenty-five dollars, (ii) no regular
bingo or special bingo game prize shall exceed one hundred
dollars, and (iii) no jackpot of any nature whatsoever shall
exceed one thousand dollars. In no event shall any organiza-
tion join with any other organization in establishing or con-
tributing to the maintenance of any jackpot. The award of any
such prize money shall not be deemed to be part of any gaming
contract within the purview of ~ 11-14 of the Code of Virginia.
H. No organization shall place or cause to be placed any
sign or signs advertising any bingo game within one hundred
yards of the exterior of the premises where such bingo game is
to be played.
~Sec. 14-10.9 Same; penalties.
The City Council may deny, suspend or revoke the permit of
any organization found not to be in strict compliance with the
provisions of this article.
Any person violating the provisions of Sections 14-10.1
through 14-10.8 shall be guilty of a Class 1 misdemeanor.
Sec. 14-10.10 Enforcement; injunctive relief.
In the event that an organization violates the provisions
of this Ordinance, then the City Attorney may, in addition to
the foregoing criminal penalties, apply to the Circuit Court
for an injunction restraining the continued operation of bingo
games or raffles or any aspect thereof.
~'Sec. 14-10.11 Hearings and appeals.
No permit to conduct bingo games or raffles shall be
denied, suspended or revoked except upon notice stating the
1979-15
-9-
proposed basis for such action and the time and place for a
hearing thereon. After a hearing on the issues, the City
Council may refuse to issue or may suspend or revoke any such
permit if it determines that the organization has not complied
with the provisions of this Ordinance. Any organization
aggrieved by the decision of the City Council may appeal such
decision to the Circuit Court.
Sec. 14-10.12 Severability.
All individual provisions of Sections 14-10 through
14-10.12 of this ordinance shall be severable and if any single
provision or portion thereof be found by a court of competent
jurisdiction to be unconstitutional or in any other way in
violation of or in conflict with any superior law, such finding
shall have no effect on the remainder of this Ordinance."
This ordinance shall become effective immediately upon its
adoption. ·
Introduced: ... July 10, 1979
Adopted:
September 4, 1979
Attest:
Cit~ (Ylerk' ' '
Mayor