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19900904 1990-24ORDINANCE NO. 1990- 24 AN ORDINANCE AMENDING SECTIONS 14-5.1, 14-5.4 AND 14-5.6 THROUGH 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 14-5.1, 14-5.4 and Sections 14-5.6 through 14-5.8 of Chapter 14 of the Code of the City of Fairfax, Virginia, are hereby amended to read as follows: Sec. 14-5.1. Binqo and raffles-Definitions For the purposes of sections 14-5.2 through 14-5.13 the following words and phrases shall have the meanings respectively ascribed to them by this section: (a) "Bingo" means a specific game of chance played with individual cards having randomly numbered squares ranging from one to seventy-five (75), in which prizes are awarded on the basis of designated numbers on such cards conforming to a predetermined pattern of numbers selected at random. Such cards shall have five (5) vertical rows headed respectively by the letters B.I.N.G.O, with each row having five (5) randomly numbered squares. (b) "Instant Bingo" means a specific game of chance played by the random selection of one or more individual prepacked cards, tickets or other pieces of paper, with winners being determined by the preprinted appearance of the letters B.I.N.G.0. in any prescribed order on the reverse side of such card. 1990-24 (C) "Organization" means any one of the following: (1) A volunteer fire department or rescue squad or auxiliary unit thereof which has been recognized by an ordinance or resolution of the city council as being a part of the safety program of the city. (2) An organization operated exclusively for religious, charitable, community or educational purposes; an association of war veterans or auxiliary units thereof organized in the United States, or a fraternal association operating under the lodge system. (d) "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. For the purpose of this definition, using the official Virqinia pick three number will not be adverse to this definition of a Raffle. (e) "Jackpot" means a bingo card played as a part of a bingo game defined in section 14-5.1(1) (a) in which all numbers on the card are covered, each number being selected at random, and with no free or "wild" numbers. 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 calendar week; except, that a special permit may be granted an organization which 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 or, at its option, checks in payment of any charges or assessments for players to participate in bingo games. 1990-24 Sec. 14-5.6 Same-Reports of gross 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 ~ December 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. 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) All 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 acknowledge 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. 1990-24 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. (c) Any organization having annual gross receipts from bingo games or raffles in excess of two hundred thousand dollars ($200,000.00) as shown on its annual financial report, shall attach to such report an opinion executed ~-- of a licensed independent certified public accountant that: (1) ~ ~..~ correct; annual financial report presents fairly, in all material respects, beginning cash, receipts, operating cost, use of proceeds, and ending cash; (2) The proceeds of any bingo games or raffles have been used, in all respects, 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 material respects in accordance with the provisions of this article. The failure to file the opinion of a licensed independent 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 required by this subsection is 1990-24 property filed with the report and a new permit is obtained. The opinion required by this section is in addition to the audit and audit fee required by section 14-5.7. (d) Notwithstanding the provisions herein requiring an annual audit, the provisions of this section shall not be construed 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 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 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) 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. 1990-24 Sec. 14-5.7 Same-Same-Audit required; fee. (a) All reports filed pursuant to section 14-5.6 shall be audited under the direction of the director of finance or his designee. All reports shall be a matter of public record. (b) An audit fee shall be payable in an amount equalling the reasonable cost of the audit, as conducted by an independent auditor or accountant retained by the city. All such fees shall be made payable to the city, and shall accompany each annual report. However, if the gross receipts of an organization are less than two thousand dollars ($2,000.00) for the designated reporting period, the audit fee may be waived by the city council. (c) All audit fees received shall be separately accounted for and shall be used only for the purposes of auditing and regulating bingo games and raffles. 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, including costs associated with providing clerical assistance in the conduct o__f bingo games or raffles for organizations composed of o__r for deaf or blind persons, publicizing the time and place of bingo 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) 1990-24 expenses relating to the acquisition, construction, maintenance, or repair of any interest in the real property 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 (2) calendar 7 1990-24 (e) 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 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 calendar week. One building or premises owned by the city shall be exempt from the provisions of this subsection. Except for persons employed as clerical assistants by orqanizations composed of or for deaf or blind persons, only nc person, ~xc~pt a bona fide ~ members of any such organization who he~ have been ~ ~ .... .LL~,~-- members 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 firefighter 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. Persons employed by orqanizations composed of or for deaf or blind persons may receiv~ remuneration not to exceed thirty dollars ¢$30.00) per event for 1990-24 (f) (g) providing clerical assistance in the conduct of bingo qames or raffles only for such organizations. 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. 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 year 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) per cent of the moneys received from such a raffle, less deductions for the fair market 9 1990-24 (h) (i) value for the cost of acquisition of the land and materials, are donated to a 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. Any bingo game in which all the gross receipts from the 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). Any organization composed of or for deaf or blind persons that employs ~ person not a member to provide clerical assistance in the conduct of bingo games or raffles shall have in force fidelity insurance, as defined i_Rn Section 38.2- 120 of the Code of Virginia, written by an insurer licensed to do business in the Commonwealth. 10 1990-24 INTRODUCED : PUBLIC HEARING : ADOPTED : This ordinance shall become effective as provided by law. July 24, 1990 September 4, 1990 ATTEST: C~ ~q~ erk 11