19881213 1988-26ORDINANCE NO. ] 988-26
AN ORDINANCE AMENDING SECTIONS 14-5.1
THROUGH 14-5.11 OF CHAPTER 14 OF THE
CODE OF THE CITY OF FAIRFAX, VIRGINIA
AND ADDING SECTIONS 14-5.12 AND 14-5.13
TO 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 through 14-5.11 of
Chapter 14 of the Code of the City of Fairfax, Virginia, be
and hereby are amended and new Sections 14-5.12 and 14-5.13
hereby are adopted to read in their entirety as follows:
Sec. 14-5.1. Binqo and raffles -- Definitions.
For the purposes of sections 14-5.2 through 14-
5.1~, the following words and phrases shall have the
meanings respectively ascribed to them by this section:
(1) ~Bingo"~means a ~ specific game of chance played
with individual cards having randomly numbered squares
ranging from one (1) 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
vertical rows headed respectively by the letters
B.I.N.G.O., with each row having five randomly numbered
squares.
(2) '!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.O. in any prescribed
order on the reverse side of such card.
(3) '!Organization'!~ means A_any one of the following:
(a) A ~e~m~&~y 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.
(b) 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.
(4) 'IRaffle"~ 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.
(5) "Jackpot" means a bingo card played as a part of a
bingo game defined in Sec. 14-5.1(1) in which all
numbers on the card are covered, each number being
selected at random, and with no free or "wild" numbers.
1988-26
Sec. 14-5.2 Same -- 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 city police department. Application
for such annual permit shall be accompanied by a fee in
the amount of twenty-five dollars ~$25.00); all checks
or money orders shall be payable to the City of
Fairfax. The application fee may be waived by the city
manager or his designee. Application for such annual
permit shall be made by completing and submitting the
form in Code of Virginia, section 18.2-340.2. However,
the form may be expanded to include any other
information desired by the city manager. The
application shall be a matter of public record.
Sec. 14-5.3.
Same -- Same -- Issuance; 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 for a
period of at least two (2) years immediately prior to
applying m&~-&~e&~em for such permit. However,
this requirement shall not apply (i) to any lodge or
chapter of a national or international fraternal order
or a national or international civic organization which
is exempt under Sec. 501(c)(3) of the United State~
Internal Revenue Code and which has a lodge or chapter
holding a bingo permit issued under the provisions of
this article anywhere within this Commonwealth, or (ii)
where the city manager provides for the issuance of ~
bingo or raffle permit to booster clubs which have been
operating for less than two (2) years, and which havo
been established solely to raise funds for school-
sponsored activities in public schools which are less
than two (2) years old.
(2) A permit shall be valid only in the city
and only at ~eh the locations &~-&~e designated in the
permit application. However, a permit may be issued to
an organization which relocates its meeting place on a
permanent basis from another jurisdiction to the city,
provided such organization has complied with the
requirements of paragraph (1) herein with respect to
such other jurisdiction, and was the holder of a valid
permit in m~eh the other jurisdiction at the time of
~h the relocation. An organization which has
obtained a permit under this section to conduct a
raffle may sell such raffle tickets both in and out of
the city.
(3) The ~eh 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 ~h ~ nonprofit organization for a period
of at least two (2) years immediately prior to seeking
a permit as hereinafter provided.
1988-26
(4) Any organization whose gross receipts
from all bingo operations exceed or can be expected to
exceed ~%~-%he~&~-~e~&~s seventy-five thousand
dollars ($75,000) in any calendar year shall have been
granted tax-exempt status pursuant to section 501c of
the United States Internal Revenue Code.
(5) An organization shall designate an
individual who shall be responsible for filing th~
annual or quarterly financial report required by
Section 14-5.6 if the organization goes out of business
or otherwise ceases to exist.
(b) Ail permits shall be issued on a calendar
basis and unless otherwise provided shall be valid for
one (1) calendar year beginning on the first day of
January.
(c) All applications for a ~eh permit shall be
acted upon by the city manager Within sixty days (60)
from the filing thereof.
(d) Upon compliance by the applicant with the
provisions of sections 14-5.2 to 14-5.~9 and at the
discretion of the city manager, the city manager may
issue an annual permit. All permits shall be subject
to reasonable regulation by the city to ensure the
public safety and welfare in the operation of bingo
games and raffles.
Sec. 14-5.4. Same -- Conduct of bingo game~.
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 will entitle 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 and which is not in
violation of chapter 26 of this Code.
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 ~eh ~ bingo game; provided~ however, that
"instant bingo" may be conducted only at ~eh the times
&s that a regular bingo game is in progress and only at
the ~eh location and at such the times a~-&~e
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 percent
(33 1/3%) of the gross receipts of an organization's
bingo operation.
1988-26
(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 years (16) of age.
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 e~%~-eem~t~e~l~-~ 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 ~-h
accountings shall be made on or before the-~t-~-e~
November ~ of each calendar year for which a permit has
been issued. The S~eh accounting shall include a
record of the gross receipts and disbursements of an
organization for the year period which commenced on the
~mt-~&~-ef--October ~ of the previous year and a
record of all money in the possession of tha--
organization that was derived from bingo or instant
bingo, regardless of when the money was received.
P~e~i~e~7 ~however, %~&~ any organization whose gross
receipts exceed fifty thousand dollars ($50.000) 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 ~eh 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 ~eh 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 ~ef~e 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 ~eh organization shall conduct any bingo game or
raffle thereafter until ~eh the report is properly
filed and a new permit is obtained.
The ~eh 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 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
~e-~4--~.-8 of this chapter.
4
1988-26
(c) Notwithstanding the provisions herein
requiring an annual audit~ the provisions of this
section shall not be construed s~-a~ to prohibit the
e~-eemp%~e~e~ director of finance or his designee
from performing unannounced audits or restrict any
right of the e~-eem~e~l~ director of finance or
his designee to secure records required to be
maintained by the provisions of sections 14-5.2 to 14-
5.~ of this chapter. The eem~e~e~ director of
finance or his designee shall have the authority to
em%~ ~o 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.~ 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 e~-eem~e~l~ director of financ~ or his
designee to enter ~e~ ~eh the premises.
(d) The organization shall maintain a written
record ~m-w~~ for three (3) year~ 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 ~eh 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 ~eh 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. 14-5.7. Same -- Same -- Audit required; fee.
(a) Ail reports filed pursuant to section 14-5.6
shall be audited under the direction of the e~%~
eem~e~e~ director of finance or his designee. All
~eh 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.
e~-~he-a~-ee~r-w~ehe~e~-~-l~s~. 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) for the designated reporting period, the audit
fee may be waived by the city council.
Sec. 14-5.8. Same -- Other prohibited practices.
In addition to those practices prohibited
el~ewhe~e in sections 14-5.2 to 14-5.7 and section 14-
5.9, the following acts or practices shall be
prohibited:
5
1988-26
(a) Except for reasonable and proper operating
costs and prizes, 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 organizedr and (ii) expenses
relating to the acquisition, construction, maintenance,
or reDair of any interest in the real property
involving the operation of the organization and used
for lawful religious, charitable, community or
9ducational purposes.
(b) No organization shall enter into a contract
with, or otherwise employ for compensation, any persona
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 met 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~r-~e~
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 (1)
calendar week. One building or premises owned by tho
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:
1988-26
(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.
(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); and
(2) No regular bingo or special bingo game
prize shall exceed one hundred dollars ($100); and
(3) No bingo jackpot of any nature
whatsoever shall exceed one thousand dollars ($1.000),
nor shall the total amount of bingo jackpot prizes
awarded in any one calendar day exceed one thousand
dollars ($1,000)~; 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) during any calendar year. The one hundred
thousand dollars ($100,000) 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
percent (100%) 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.
~e-~h~-m~m~em&mee-e~-&m~-~a~%~. The award of any
~eh binqo or raffle prize money shall not be deemed to
be part of &~y ~ gaming contract within the purview of
section 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 (100) yards of the exterior of the
premises where such bingo game is to be played.
7
1988-26
(i) Any binqo qame in which all the gross
receipts from players for that game are paid as prizn
money back to the players shall not be subject to tho
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).
Sec. 14-5.9 Joint operations of bingo games
(a) Two (2) qualified organizations as defined in
sections 14-5.1 of this chapter may jointly organiz~
and conduct bingo games provided both have been issued
a permit under the provisions of section 14-5.3 and
provided both fully comply with all other provisions in
this chapter.
(b) Any ¢2) two qualified organizations jointly
conducting bingo qames shall be subject to the same
restrictions and prohibitions contained in this article
that would apply to a single organization conducting
bingo games. Organizations jointly conducting bingo
games shall not circumvent any restrictions and
prohibitions which would otherwise apply if a singl~
organization were conducting such games. These
restrictions and prohibitions shall include, but not be
limited to, the frequency with which bingo games may b~
held, the value of merchandise or money awarded as
prizes, and other practices prohibited under 14-5.8.
(c) Any two (2) qualified orqanizations
which wish to jointly conduct one (1) or more bingo
games shall furnish the city council a written report
setting forth the division of manpower, costs, and
proceeds for each game to be jointly conducted. Upon a
finding that the division of manpower and costs for
each game bears a reasonable relationship to the
division of proceeds, the city council shall issue a
special permit for the joint conduct of all approved
bingo games. No bingo game may be jointly conducted
until this special permit is obtained by thm
organization involved for that bingo game.
Sec. 14-5.~10. Same -- Violations and 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 sections 14-5.2 to
14-5.~.
Any person violating the provisions of sections
14-5.2 to 14-5.~, except as noted in the following
sentence, shall be guilty of a class 1 misdemeanor.
Any person violating the provisions of section 14-
5.8(a) shall be guilty of a class 6 felony.
8
1988-26 '
Sec. 14-5. lqBll.
Same -- Enforcement; iniunctive
relief.
In the event that an organization violates any
provision of sections 14-5.2 to 14-5.~_9, then the city
attorney may, in addition to the foregoing criminal
penalties, apply to the circuit court of the city for
an injunction restraining the continued operation of
bingo games or raffles or any aspect thereof.
Sec. 14-5.1-}1--2.
Same -- Hearings and appeals.
No permit to conduct bingo games or raffles shall
be denied, suspended or revoked except upon notice
stating the 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 sections 14-5.2 to 14-5.~. Any organization
aggrieved by the decision of the city council may
appeal such decision to the county circuit court.
Sec. 14-5.13.
Only raffles, bingo and instant bingo
games permitted.
Sections 14-5.1 through 14-5.13 permit
organizations to conduct raffles, bingo and instant
bingo games. All games not explicitly authorized by
these sections are prohibited.
This ordinance shall become effective immediately upon
its execution by the Mayor.
INTRODUCED:
PUBLIC HEARING:
ADOPTED:
ATTEST:
November 29, 1988
December 13, 1988
December 13, 1988
C~erk
9
1988-26
APPLICATION FOR PERMIT
TO HOLD BINGO GAMES AND RAFFLES
Name of Organization:
Address or Headquarters:
Address where bingo games will be held or raffle drawing
will be conducted:
NOTE: This permit is valid only at the above location.
Days and times on which games are to be held:
When was your organization founded?__ Has your
organization been in existence in this city for two
continuous years?
Is it a nonprofit organization?__ Tax Exempt Status
No. (if applicable)
Gross receipts from all sources related to the operation
of bingo games or instant bingo by calendar quarter for
12-month period immediately prior to date of this
application.
1st Quarter 2nd Quarter
3rd Quarter 4th Quarter
State the specific type and purpose of your
organization:
Officers of the organization:
President:
Address:
Secretary:
Address:
Treasurer:
Address:
Type of permit applied for: Bingo Games__
Raffles
Member authorized by your organization who will be
responsible for bingo or raffle operation:
Name:
Address:
Phone: Home: Business:
Individual responsible for filing the financial report
required by the article if your organization ceases to
exist.
Name:
Address:
Phone: Home: Business:
Does your organization understand that it is a violation
of law to enter into a contract with any person or firm,
association, organization (other than another qualified
organization pursuant to Sec. 18.2-340.13 of the Code of
Virginia), partnership or corporation of any
classification whatsoever, for the purpose of
organizing, managing or conducting bingo games or
raffles?
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1988-26
Does your organization understand that it must maintain
and file complete records of receipts and disbursements
pertaining to bingo games and raffles and that such
records are subject to audit by the Director of Finance
or his designee of the City of Fairfax?
Has your organization attached a check for the annual
permit fee payable to the City of Fairfax?
10.
11.
12.
Does your organization understand that any organization
found in violation of Sec. 18.2-340.10 of the Code of
Virginia authorizing this permit is subject to having
such permit revoked and any organization or person,
shareholder, agent, member or employee of such
organization who violated Sec. 18.2-340.10 or Article
1.1 (Sec. 18.2-340.a et seq.) of Chapter 8 of Title 18.2
of the Code of Virginia may be guilty of a
felony?
Does your organization understand that it will be
required to furnish a complete list of its membership
upon the request of the local governing body?
I hereby swear or affirm under the penalties of perjury
as set forth in Sec. 18.2-434 of the Code of Virginia,
that all of the above statements are true to the best of
my knowledge, information and beliefs. All questions
have been answered.
(Name)
Title:
Address:
COMMONWEALTH OF VIRGINIA, AT LARGE,
CITY/COUNTY OF , to-wit:
SUBSCRIBED and SWORN TO before me this
, 19__, by
My Commission expires:
day of
Notary Public
11
1988-26
BINGO GAMES - RAFFLES
FINANCIAL REPORT
All holders of a Bingo Game - Raffle Permit, issued pursuant
to Sec. 18.2-340.3, must file a record of all receipts and
disbursements in accordance with the provisions of this
article. FAILURE TO FILE A REPORT OF SUCH RECORDS WHEN DUE
SHALL CAUSE THE AUTOMATIC REVOCATION OF PERMIT.
Name of
Organization:
Type of
Organization:
Phone:
Address:
Address Where Bingo/Raffle is
Conducted:
Indicate Period for Which This Report is
Filed
Beginning Bank Balance
from Bingo/Raffle
Cash on Hand
TOTAL
$
$
(A) $
Receipts:
Admission (Regular & Extra Cards) $
Instant Bingo Sales $
Misc. Sales (Excluding Bev. and Food) $
Raffles $
Other $
TOTAL (B) $
TOTAL CASH AVAILABLE (A&B)$
Operating Cost:
(Excluding Bev. and Food)
Bingo Supplies $
Instant Bingo Supplies $
Other Supplies and Equipment $
Permit Fee $
Prizes Awarded $
Jackpot Award $
Instant Bingo $
Rent $
Audit Fee $
Other (Attach detailed explanation) $
TOTAL (C) $
Use of Proceeds (Attach Detailed Schedule
Indicating Payment, Date Check or Invoice
Numbers and Amounts)
TOTAL
Ending Bank Balance from Bingo/Raffle
Cash on Hand
TOTAL CASH ACCOUNTED FOR (C + D + E + F)
(D) $
(C&D) $
(E)$
(F)$
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1988-26
OATH -- I, the undersigned applicant, do swear (or affirm)
that the foregoing figures and statements are true, full and
correct to the best of my knowledge and belief.
Date
Authorized Agent for
COMMONWEALTH OF VIRGINIA, AT LARGE,
CITY/COUNTY OF , to-wit:
SUBSCRIBED AND SWORN TO BEFORE ME THIS
, 19_,, , by
authorized agent for
DAY OF
, the
Notary Public
My Commission Expires:
13