19910625 1991-21ORDINANCE NO. 1991-
AN ORDINANCE AMENDING SECTIONS 14-5.3
AND 14-5.6 OF CHAPTER 14 OF THE CODE OF
THE CITY OF FAIRFAX, VIRGINIA CONCERNING
REQUIREMENTS FOR THE ISSUANCE OF BINGO
AND RAFFLE PERMITS AND REPORTS OF GROSS
RECEIPTS FROM BINGO GAMES OR RAFFLES.
BE IT ORDAINED by the City Council for the City of
Fairfax, Virginia, that Sections 14-5.3 and 14-5.6 of
Chapter 14 of the Code of the City of Fairfax, Virginia,
are hereby amended to read in their entirety as follows:
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 either in the city
or Fairfax County for a period of at least two (2)
years immediately prior to applying 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 Section 501(c)(3) of
the United States 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 a bingo or raffle permit to booster
clubs which have been operating for less than two (2)
years, and which have 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 the locations 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 the other jurisdiction at the time of 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 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 a nonprofit organization for a period of
at least two (2) 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 seventy-five thousand dollars ($75,000) in any
calendar year shall have been granted tax-exempt status
pursuant to section 501c 501 C of the United States
Internal Revenue Code.
1991-21
(5) An organization shall designate an
individual who shall be responsible for filing the
annual or quarterly financial report required by
Section 14-5.6 if the organization goes out of business
or otherwise ceases to exist.
(b) All 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) Ail applications for a 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. 14-5.6.
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 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) 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 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
1991-21
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 an annual gross
receipts from bingo games or raffles in excess of ~we
~ ..... ~ ~ ~ ...... ~ ~ii~- '~^ ~ two hundred fifty
thousand dollars ($250,000), as shown on its annual
financial report, shall attach to such report an
opinion executed by a licensed certified public
accountant that:
(1)
The 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
properly 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 so 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 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
3
1991-21
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.
This ordinance shall become effective on and after July
1, 1991.
INTRODUCED :
PUBLIC HEARING:
ADOPTED :
June ll, 1991
June 25, 199l
June 25, 1991
ATTEST:
Acting City e -