Bill Text: GA HB51 | 2009-2010 | Regular Session | Comm Sub

Georgia House Bill 51 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Georgia Bureau of Investigation; bingo games; Department of Revenue; provisions

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2010-03-11 - House Committee Favorably Reported [HB51 Detail]

Download: Georgia-2009-HB51-Comm_Sub.html

09 LC 35 1234S

The House Committee on Public Safety and Homeland Security offers the following

substitute to HB 51:

A BILL TO BE ENTITLED
AN ACT

To amend Article 2 of Chapter 12 of Title 16 of the Official Code of Georgia Annotated, relating to gambling and related offenses, so as to transfer the responsibility for regulation of bingo games and issuance of bingo licenses from the Georgia Bureau of Investigation to the Department of Revenue; to provide for related matters; to provide an effective date; to provide for applicability; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.

Article 2 of Chapter 12 of Title 16 of the Official Code of Georgia Annotated, relating to gambling and related offenses, is amended by revising Part 2, relating to bingo, as follows:

"Part 2

16-12-50.

It is the intention of the General Assembly that, except for recreational bingo by an employer, only nonprofit, tax-exempt organizations which are properly licensed pursuant to this part shall be allowed to operate bingo games.

16-12-51.

As used in this part, the term:

(1) 'Bingo game' or 'nonprofit bingo game' means a game of chance played on cards with numbered squares in which counters or indicators are placed on numbers chosen by lot and won by covering a previously specified number or order of numbered squares. A bingo game may be played manually or with an electronic or computer device that stores the numbers from a player's card or cards, tracks the numbers chosen by lot when such numbers are entered by the player, and notifies the player of a winning combination. Such words, terms, or phrases, as used in this paragraph, shall be strictly construed to include only the series of acts generally defined as bingo and shall exclude all other activity.

(2) 'Bingo session' means a time period during which bingo games are played.

(3) 'Commissioner' 'Director' means the director of the Georgia Bureau of Investigation state revenue commissioner of the Department of Revenue.

(3.1) 'Nonprofit, tax-exempt organization' means an organization, association, corporation, or other legal entity which has been determined by the federal Internal Revenue Service to be exempt from taxation under federal tax law and which is exempt from taxation under the income tax laws of this state under Code Section 48-7-25; which is organized or incorporated in this state or authorized to do business in this state; and which uses the proceeds from any bingo games conducted by such organization solely within this state.

(4) 'Nonrecreational bingo session' means any bingo session operated by a licensed nonprofit tax exempt organization that:

(A) Awards cash prizes greater than five dollars;

(B) Charges participants;

(D) Does not qualify as a recreational bingo session.

(4)(5) 'Operate,' 'operated,' or 'operating' means the direction, supervision, management, operation, control, or guidance of activity.

(5)(6) 'Recreational bingo session' means a bingo session operated by any person or entity at no charge to participants in which the prizes for each bingo game during the bingo session shall be noncash prizes and the total of such prizes for each such game shall not exceed the amount established pursuant to regulations established by the director. No such noncash prize awarded in recreational bingo shall be exchanged or redeemed for money or for any other prize with a value in excess of the amount established pursuant to regulations established by the director. Recreational bingo shall also include a bingo session operated by a nonprofit, tax-exempt licensed operator of bingo games at no charge to participants in which the participants are senior citizens attending a function at a facility of the tax-exempt licensed organization or are residents of nursing homes, retirement homes, senior centers, or hospitals and in which the prizes for each bingo game during the bingo session shall be nominal cash prizes not to exceed $5.00 for any single prize and the total of such prizes for each such game shall not exceed the amount established pursuant to regulations established by the director. Recreational bingo shall also include a bingo session operated by an employer with ten or more full-time employees for the purposes of providing a safe workplace incentive and in which the prizes are determined by the employer; provided, however, that no monetary consideration is required by any participant other than the employer and the employer expressly prohibits any monetary consideration from any employee. Recreational bingo shall not be considered a lottery as defined in paragraph (4) of Code Section 16-12-20 or a form of gambling as defined in Code Section 16-12-21. a person or entity at no charge to participants and is a bingo session:

(A) In which the prizes for each bingo game during the bingo session shall be noncash prizes, and the total value of the prize for each bingo game shall not exceed the monetary value established by the commissioner or be exchanged or redeemed for money or other prize with a value in excess of the total value established by the commissioner;

(B) Operated by a nonprofit, tax-exempt licensed operator of bingo games in which the participants are seniors citizens or disabled persons and are residents of a nursing home, retirement home, senior center, or hospital attending a function at a facility of the tax-exempt licensed organization, and the prize value for each bingo game during a bingo session shall not exceed $5.00 for any single prize or the prize value established by the commissioner for the total prizes; or

(C) Operated by an employer with ten or more full-time employees for the purposes of providing a workplace incentive and where the prizes are determined by the employer, no consideration is required to participate, and the employer notifies the employees that consideration is not required to participate; provided, however, that no monetary consideration is required by any participant other than the employer, and the employer expressly prohibits any monetary consideration from any employee.

Recreational bingo session shall not be considered a lottery as defined in paragraph (4) of Code Section 16-12-20 or a form of gambling as defined in Code Section 16-12-21.

16-12-52.

(a) Any other law to the contrary notwithstanding except for subsection (b) of this Code section, no nonprofit, tax-exempt organization shall be permitted to operate a bingo game until the director commissioner issues a license to the organization authorizing it to do so. In the event of any controversy concerning whether or not certain activity constitutes bingo for which a license may be issued, the decision of the director commissioner shall control. The license described in this Code section is in addition to and not in lieu of any other licenses which may be required by this state or any political subdivision thereof, and no. No bingo game shall be operated until such time as all requisite licenses have been obtained.

(b) A recreational bingo session as defined by subparagraph (C) of paragraph (6) of Code Section 16-12-51 shall not be subject to the licensing requirements of this Code section. Recreational bingo is a nonprofit bingo game or a bingo game operated by an employer with ten or more full-time employees for the purpose of providing a safe workplace incentive and shall not be subject to the licensing requirements and regulations provided in this part applicable to bingo games not considered recreational bingo and operated by nonprofit, tax-exempt organizations.

16-12-53.

(a) Any nonprofit, tax-exempt organization desiring to obtain a license to operate bingo games shall make application to the director commissioner on forms prescribed by the Georgia Bureau of Investigation commissioner and shall pay an annual fee of $100.00. No license shall be issued to any nonprofit, tax-exempt organization unless the organization has been in existence for 12 months immediately prior to the issuance of the license. The license will shall expire at 12:00 Midnight on December 31 following the granting of the license. Renewal applications for each calendar year shall be filed with the director commissioner prior to January November 1 of each year and shall be on a form prescribed by the Georgia Bureau of Investigation commissioner.

(b) Each application for a license and each application for renewal of a license shall contain the following information:

(1) The name and home address of the applicant and, if the applicant is a corporation, association, or other similar legal entity, the names and home addresses of each of the officers of the organization as well as the names and addresses of the directors, or other persons similarly situated of like position or authority, of the organization;

(2) The names and home addresses of each of the persons who will be operating, advertising, or promoting the bingo game;

(3) The names, business addresses, and home addresses of any persons, organizations, or other legal entities that will act as surety for the applicant or to which the applicant is financially indebted or to which any financial obligation is owed by the applicant and the type of indebtedness;

(4) A determination letter from the Internal Revenue Service certifying that the applicant is an organization exempt under federal tax law;

(5) A statement affirming that the applicant is exempt under the income tax laws of this state under Code Section 48-7-25;

(6) The location at which the applicant will conduct the bingo games and, if the premises on which the games are to be conducted is to be leased, a copy of the lease or rental agreement;

(7) A statement showing the convictions, if any, for criminal offenses other than minor traffic offenses of each of the persons listed in paragraphs (1), (2), and (3) of this subsection; and

(8) Any other necessary and reasonable information which the director commissioner may require.

(c) The director commissioner shall refuse to grant a bingo license to any applicant who fails to provide fully the information required by this Code section or who has failed to file a state tax return or pay all state taxes that are due and owing.

(d) When a nonprofit, tax-exempt organization which operates or intends to operate bingo games for residents and patients of a retirement home, nursing home, or hospital operated by that organization at which, and during each bingo session, the gross receipts to the nonprofit, tax-exempt organization are or will be limited to $100.00 or less during each such bingo session, and the nonprofit, tax-exempt organization pays or will pay prizes having a total value of $100.00 or less during each bingo session, then, notwithstanding any other provision of this part or any rule or regulation promulgated by the director commissioner pursuant to the provisions of Code Section 16-12-61, neither the applicant nor any of the persons whose names and addresses are required under paragraphs (1) and (2) of subsection (b) of this Code section shall be required to submit or provide fingerprints or photographs as a condition of being granted a license.

(e) If the director commissioner determines that an organization has one or more auxiliaries, the members of any such auxiliary may assist in such organization's bingo operations, even if such auxiliary holds a license under this part, and the members of the main organization may assist in the bingo operations of any such licensed auxiliary.

16-12-54.

(a) The director commissioner shall have the specific authority to suspend or revoke any license for any violation of this part or for any violation of any rule or regulation promulgated under this part. Any licensee accused of violating any provision of this part or of any rule or regulation promulgated hereunder shall be entitled, unless waived, to a hearing on the matter of the alleged violation conducted in accordance with Chapter 13 of Title 50, the 'Georgia Administrative Procedure Act.'

(b) By making application for a license under this part, every applicant consents that the director commissioner, as well as any of his or her agents, together with any prosecuting attorney, as well as any of his or her agents, may come upon enter the premises of any licensee or upon any premises on which any licensee is conducting a bingo game for the purpose of examining the accounts and records of the licensee to determine if a violation of this part has occurred.

(c) The failure to fully cooperate during an inspection or hindering or interfering with an agent in the performance of his or her duties by any licensee or an employee or other person acting on behalf of or with the approval of a licensee, regardless of whether such person is receiving compensation from the licensee, shall be a violation of this part. Interference or hindrance of an agent shall include, but shall not be limited to, disorderly conduct and threatening or appearing to threaten an agent or member of the public.

16-12-55.

The director commissioner shall upon the request of any prosecuting attorney or his or her designee certify the status of any organization as to that organization's exemption from payment of state income taxes as a nonprofit organization. The director commissioner shall also upon request issue a certificate indicating whether any particular organization holds a currently valid license to operate a bingo game. Such certificates properly executed shall be admissible in evidence in any prosecution, and Code Section 48-7-60, relative to the disclosure of income tax information, shall not apply to the furnishing of such certificate.

16-12-56.

Notwithstanding the other provisions of this part, the director commissioner, upon receiving written application therefor and determining the applicant eligible, shall be authorized to issue a one-time temporary license to a nonprofit, tax-exempt school which will allow it to operate a bingo game session for one day annually for each calendar year. In such cases, the director commissioner shall have the power to waive the license fee provided for in Code Section 16-12-53, to waive the annual report provided for in Code Section 16-12-59, and otherwise promulgate rules and regulations to carry out this Code section.

16-12-57.

Bingo games shall be operated only on premises owned:

(1) Owned by the nonprofit, tax-exempt organization operating the bingo game, on property leased;

(2) Leased by the nonprofit, tax-exempt organization operating the bingo game and used regularly by that organization for purposes other than the operation of a bingo game,; or on property leased

(3) Leased by the nonprofit, tax-exempt organization operating the bingo game from another nonprofit, tax-exempt organization.

16-12-58.

No person under the age of 18 years shall be permitted to play any game or games of bingo conducted pursuant to any license issued under this part unless accompanied by an adult a person 18 years of age or older. No person under the age of 18 years shall be permitted to conduct or assist in the conducting of any game of bingo conducted pursuant to any license issued under this part.

16-12-59.

On or before April 15 of each year, every nonprofit, tax-exempt organization engaged in operating bingo games shall file with the director commissioner a report disclosing all receipts and expenditures relating to the operation of bingo games in the previous year. The report shall be in addition to all other reports required by law. The report shall be prepared and signed by a certified public accountant competent to prepare such a report and shall be deemed a public record subject to public inspection.

16-12-60.

(a) A licensee that conducts or operates a bingo session shall maintain the following records for at least three years from the date on which the bingo session is conducted:

(1) An itemized list of the gross receipts for each bingo session;

(2) An itemized list of all expenses other than prizes that are incurred in the conducting of the each bingo session as well as the name of each person to whom the expenses are paid and a copy of the receipt for all of the expenses;

(3) A list of all prizes awarded during the each bingo session and the name and address of all persons who are winners of prizes of $50.00 or more in value;

(4) An itemized list of the recipients other than the licensee of the proceeds of the bingo game, including the name and address of each recipient to whom such funds are distributed; and

(5) A record of the number of persons who participate participated in any bingo session conducted by the licensee.

(b) A licensee shall:

(1) Own all the equipment used to conduct a bingo game or lease such equipment;

(2) Display its bingo license conspicuously at the location where the bingo game is conducted;

(3) Conduct bingo games only at the single location specified in the licensee's application; and

(4) Not conduct more than one bingo session during any one calendar day, which session shall not exceed five hours.

(c) No nonprofit, tax-exempt organization shall enter into any contract with any individual, firm, association, or corporation to have such individual, firm, association, or corporation operate bingo games or concessions on behalf of the nonprofit, tax-exempt organization.

(d) A nonprofit, tax-exempt organization shall not lend its name nor allow its identity to be used by any individual, firm, association, or corporation in the operating or advertising of a bingo game in which said nonprofit, tax-exempt organization is not directly and solely operating the bingo game.

(e) It shall be unlawful for two or more nonprofit, tax-exempt organizations which are properly licensed pursuant to this part to operate bingo games jointly or to operate bingo games upon the same premises during any 18 hour period at the same time.

(f) It shall be unlawful:

(1) To to award prizes in excess of $1,500.00 in cash or gifts of equivalent value during any calendar day or $3,000.00 in cash or gifts of equivalent value during any calendar week.;

(2) To It shall be unlawful to exceed such limits at any combination of locations operated by a single licensee or such licensee's agents or employees.; and

(3) For It shall be unlawful for two or more licensees to pyramid the valuation of prizes in such manner as to exceed the limits contained in this Code section.

For purposes of this subsection, the The term 'equivalent value' shall mean means the fair market value of the gift on the date the gift is given as the prize in a bingo game.

(g) No person or organization by whatever name or composition thereof shall take any salary, expense money, or fees for the operation of any bingo game, except that not more than $30.00 per day may be paid to one or more individuals for assisting in the conduct of such bingo games on such day.

(h) No person or organization shall pay consulting fees to any person for any services performed in relation to the operation or conduct of a bingo game.

(i) A person who is a member of more than one nonprofit, tax-exempt organization shall be permitted to participate in the bingo operations of only two organizations of which such person is a member; provided, however, that such person shall not receive more than $30.00 per day for assisting in the conduct of bingo games regardless of whether such person assists both organizations in the same day.

16-12-61.

(a) The director commissioner is authorized to promulgate rules and regulations which he or she deems necessary for the proper administration and enforcement of this part.

(b) The commissioner may prescribe forms as he or she deems necessary for the administration and enforcement of this part or any law which it is his or her duty to administer.

(c) Rules and regulations previously adopted by the Georgia Bureau of Investigation which relate to functions performed by the Georgia Department of Revenue under this part shall remain of full force and effect as rules and regulations of the Department of Revenue until amended, repealed, or superseded by rules or regulations adopted by the commissioner.

(d) All valid licenses, permits, certificates, and similar authorizations previously issued by the Georgia Bureau of Investigation with respect to any function transferred to the Georgia Department of Revenue as provided in this part shall continue in effect until the same expire by their terms unless they are suspended, revoked, or otherwise made ineffective as provided by law.

16-12-62.

Any person who operates a bingo game for which a license is required without a valid license issued by the director commissioner as provided in this part commits the offense of commercial gambling as defined in Code Section 16-12-22 and, upon conviction thereof, shall be punished accordingly. Any person who knowingly aids, abets, or otherwise assists in the operation of a bingo game for which a license is required and has not been obtained as provided in this part similarly commits the offense of commercial gambling. Any person who violates any other provision of this part, including the provisions relating to recreational bingo, shall be guilty of a misdemeanor of a high and aggravated nature. Any person who commits any such violation after having previously been convicted of any violations of this part shall be guilty of a felony and, upon conviction thereof, shall be punished by imprisonment for not less than one nor more than five years or by a fine not to exceed $10,000.00, or both."

SECTION 2.

This Act shall become effective upon its approval by the Governor or upon its becoming law without such approval.

SECTION 3.

All laws and parts of laws in conflict with this Act are repealed.