19890912 1989-41ORDINANCE NO. 1989-41
AN ORDINANCE AMENDING SECTIONS 14-5.4
THROUGH 14-5.6 AND SECTION 14-5.8 OF
CHAPTER 14 OF THE CODE OF THE CITY OF
FAIRFAX, VIRGINIA CONCERNING BINGO AND
RAFFLES.
BE IT ORDAINED by the City Council for the City of
Fairfax, Virginia, that Sections 14-5.4 through 14-5.6 and
Section 14-5.8 of Chapter 14 of the Code of the City of
Fairfax, Virginia, be and hereby are amended to read in
their entirety as follows:
Sec. 14-5.4. Same -- Conduct of bingo games.
No organization may hold bingo games more frequently
than two (2) calendar days in any one (1) calendar week;
except, that a special permit may be granted an organization
which w~-em~e-~ entitles the organization 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 and which is not in violation of chapter 26 of this
Code. The organization shall accept only cash in payment of
any charges or assessments for players to participate in
bingo games.
Sec. 14-5.5. Same -- Same -- Instant bingo.
(a) Any organization qualified to conduct bingo games
pursuant to the provisions of sections 14-5.2 through 14-5.3
is authorized to play "instant bingo" as a part of a bingo
game~-~i~e~r-h~e~e~r-~-~&~-b~3~-m&~-~e
~e~-&~-only at the location and at the times specified
in the approved bingo permit for regular bingo games as
defined in section 14-5.1 of this chapter.
1989-41
(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 percent (33 1/3%) of the gross
receipts of an organization's bingo operation.
(c) Any organization playing "instant bingo" shall
maintain 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 non-member of the organization verifying any
information required by this section.
(d) No organization shall sell an "instant bingo" card
to any individual below sixteen (16) years of age.
Sec. 14-5.6. Same -- Reports of qross receipts and
disbursements required.
(a) Complete records of all receipts and disbursements
shall be kept and shall be filed annually under oath with
the city's director of finance. The annual or quarterly
financial report and other items required to be filed under
this section shall be a matter of public record. All
accountings shall be made on or before November 1 of each
calendar year for which a permit has been issued. The
accounting shall include a record of the gross receipts and
disbursements of an organization for the year period which
commenced on October 1 of the previous year and a record of
all money in the possession of the organization that was
derived from bingo or instant bingo, regardless of when the
money was received.
1989-41
However, any organization whose gross receipts exceed
fifty thousand dollars ($50,000.00) during any calendar
quarter shall be required to file an additional accounting
of its receipts and disbursements during each quarter, no
later than sixty (60) days following the last day of the
quarter. #Gross receipts,# as used in this section, shall
mean the total amount of money received from bingo and
"instant bingo" operations and raffles before the deduction
of expenses or prizes.
(b) Ail reports of receipts and disbursements shall be
made on the form provided in the Code of Virginia, Section
18.2-340.6 and shall be acknowledged in the presence of a
duly authorized notary public. This form may be expanded to
include any other information desired by the director of
finance. The failure to file such reports when due shall
cause the automatic revocation of the permit and no
organization shall conduct any bingo game or raffle
thereafter until the report is properly filed and a new
permit is obtained.
The 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 those 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
provisions of article 1.1 of chapter 8 of title 18.2
(Section 18.2-340.1 et seq.) of the Code of Virginia and in
accordance with the provisions of this chapter.
3
1989-41
(c) Any organization having annual gross receipts from
bingo games or raffles in excess of $200,000.00, as shown on
its annual financial report, shall attach to such report an
opinion executed by a licensed certified public accountant
that
(1) the statement of receipts and disbursements
is true and correct;
(2) the proceeds of any bingo games or raffles
have been used for those lawful, religious, charitable,
community or educational purposes for which the organization
is specifically chartered or organized; and
(3) the gross receipts have been used in all
respects in accordance with the provisions of this article.
The failure to file the opinion of a licensed certified
public accountant, when required, shall cause the automatic
revocation of the permit and no organization shall conduct
any bingo game or raffle thereafter until the opinion is
properly filed with the report and a new permit is obtained.
~(d) Notwithstanding the provisions herein
requiring an annual audit, the provisions of this section
shall not be construed so as to prohibit the director of
finance or his designee from performing unannounced audits
or restrict any right of the director of finance or his
designee to secure records required to be maintained by the
provisions of sections 14-5.2 to 14-5.9 of this chapter.
The director of finance or his designee shall have the
authority to go upon the premises on which any organization
is conducting a bingo game for the purpose of carrying out
the duties imposed by sections 14-5.2 to 14-5.9 of this
1989-41
chapter. The application for the bingo permit shall
constitute permission from, and authority granted by, such
organization to any law-enforcement officer or to the
director of finance or his designee to enter the premises.
~e~(e) The organization shall maintain a written
record for three (3) years 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 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 the award. The
organization playing bingo shall also maintain an itemized
record of all receipts and disbursements, including
operating costs incurred and the use of proceeds incurred in
operating bingo games.
Sec. 14-5.8. Same -- Other prohibited practices.
In addition to those practices prohibited in sections
14-5.2 to 14-5.7 and section 14-5.9, the following acts or
practices shall be prohibited:
(a) Except for reasonable and proper operating
costs and prizes, includinq costs associated with
publicizinq the time and place of binqo games and raffles,
no part of the gross receipts derived by an organization
permitted to conduct bingo games or raffles may be used for
any purpose other than (i) those lawful religious,
charitable, community or educational purposes for which the
organization is specifically chartered or organized and (ii)
expenses relating to the acquisition, construction,
maintenance, or repair of any interest in the real property
5
1989-41
involving the operation of the organization and used for
lawful religious, charitable, community or educational
purposes.
(b) No organization shall enter into a contract with,
or otherwise employ for compensation, any person, firm,
association, organization, partnership, or corporation of
any classification whatsoever for the purpose of organizing,
managing or conducting bingo games or raffles. However,
this subsection shall not prohibit the joint operation of
bingo games under section 14-5.9.
(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 subsection, no fair market rental value
shall be based upon or 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 violation of such subsection shall constitute a
separate class 1 misdemeanor as set forth in section 14-
5.10.
(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, the provisions of this subsection
shall not apply to the playing of bingo pursuant to a
special permit issued in accordance with section 14-5.4. No
building or other premises owned by an organization as
defined in Section 14-5.1 and qualified as a tax exempt
1989-41
organization pursuant to section 501c of the Internal
Revenue Code shall be utilized in whole or in part for the
purpose of conducting bingo games more frequently than four
(4) calendar days in any one (1) calendar week. One
building or premises owned by the city shall be exempt from
the provisions of this subsection.
(e) No person, except a bona fide member of any such
organization who has been such a member for at least ninety
(90) 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
participate 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 employed by the city and
associated with a volunteer fire department or rescue squad
meeting the requirements of section 14-5.1.
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.
7
1989-41
(g) No organization shall award any bingo prize money
or any merchandise valued in excess of the following
amounts:
(1) No bingo door prize shall exceed twenty-five
dollars ($25.00); and
(2) No regular bingo or special bingo game prize
shall exceed one hundred dollars ($100.00); and
(3) No bingo jackpot of any nature whatsoever
shall exceed one thousand dollars ($1,000.00), nor shall the
total amount of bingo jackpot prizes awarded in any one
calendar day exceed one thousand dollars ($1,000.00); and
(4) Except as provided herein, no organization
shall award any raffle prize or prizes valued at more than
one hundred thousand dollars ($100,000.00) during any
calendar year. The one hundred thousand dollars
($100,000.00) limitation shall not apply to a raffle
conducted no more than once per calendar year by an
organization qualified as a tax-exempt organization pursuant
to section 501(c) (3) of the Internal Revenue Code for a
prize consisting of a lot improved by a residential dwelling
where one hundred (100) percent of the moneys received from
such a raffle, less deductions for the fair market value for
the cost of acquisition of the land and materials, are
donated to lawful religious, charitable, community, or
educational organizations specifically chartered or
organized under the laws of the Commonwealth and qualified
as a section 501(c) (3) tax-exempt organization.
The award of any bingo or raffle prize money shall not
be deemed to be part of a gaming contract within the purview
of section 11-14 of the Code of Virginia.
1989-41
(h)~ Any bingo game in which all the gross receipts
from players for that game are paid as prize money back to
the players shall not be subject to the limitations of
subsection (g) of this section, but there shall not be more
than one such game per calendar day of play and the prize
money from any such game shall not exceed one thousand
dollars ($1,000.00).
This ordinance shall become effective as provided by
law.
INTRODUCED :
PUBLIC HEARING :
ADOPTED :
August 29, 1989
September 12, 1989
September 12, 1989
ATTEST:
~ ~ity Clerk
9