Bill Text: VA HB1092 | 2016 | Regular Session | Prefiled
Bill Title: Charitable Gaming Board; powers and duties.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2016-01-28 - Stricken from docket by General Laws by voice vote [HB1092 Detail]
Download: Virginia-2016-HB1092-Prefiled.html
|
16103554D
Be it enacted by the General Assembly of Virginia: 1. That §§2.2-2456, 18.2-340.15, 18.2-340.16, 18.2-340.18, 18.2-340.20, 18.2-340.23, 18.2-340.24, 18.2-340.25, 18.2-340.26:2, 18.2-340.27, 18.2-340.29, 18.2-340.30, 18.2-340.31, 18.2-340.33, 18.2-340.34, 18.2-340.35, 18.2-340.36, 18.2-340.37, and 58.1-3, as it is currently effective and as it shall become effective, of the Code of Virginia are amended and reenacted and that the Code of Virginia is amended by adding in Article 19 of Chapter 24 of Title 2.2 sections numbered 2.2-2456.1 and 2.2-2456.2 as follows: §2.2-2456. Duties of the Charitable Gaming Board. A. The Board shall: 1. Promulgate regulations in accordance with the Administrative Process Act (§2.2-4000 et seq.) not inconsistent with the laws of Virginia necessary to carry out the provisions of this chapter and the provisions of Article 1.1:1 (§18.2-340.15 et seq.) of Chapter 8 of Title 18.2. Such regulations may include penalties for violations; 2.
3. Hold and conduct hearings; issue subpoenas requiring the attendance of witnesses and the production of records, memoranda, papers, and other documents before the Board or any agent of the Board; and administer oaths and take testimony thereunder; 4. Grant, suspend, and revoke permits for the conduct of charitable gaming in accordance with Article 1.1:1 (§18.2-340.15 et seq.) of Chapter 8 of Title 18.2; and 5. Do all acts necessary or advisable to carry out the purposes of this article and Article 1.1:1 (§ 18.2-340.15 et seq.) of Chapter 8 of Title 18.2. B. The Board may expend funds (i) to provide for educating charitable organizations and players; (ii) for programs of market development, education, publicity, research, and the promotion of charitable gaming in Virginia; and (iii) to contract for market development, publicity, research, advertising, and other promotional services. §2.2-2456.1. Charitable Gaming Fund. There is hereby created in the state treasury a special nonreverting fund to be known as the Charitable Gaming Fund, referred to in this section as "the Fund." The Fund shall be established on the books of the Comptroller. Moneys appropriated to the Fund by the General Assembly, all permit and registration fees, and all audit and administration fees collected by the Board in accordance with Article 1.1:1 (§18.2-340.15 et seq.) of Chapter 8 of Title 18.2 shall be paid into the state treasury and credited to the Fund. Interest earned on moneys in the Fund shall remain in the Fund and be credited to it. Any moneys remaining in the Fund, including interest thereon, at the end of each fiscal year shall not revert to the general fund but shall remain in the Fund. Moneys in the Fund shall be used solely for (i) administering and enforcing charitable gaming laws and Board regulations in accordance with Article 1.1:1 (§18.2-340.15 et seq.) of Chapter 8 of Title 18.2, (ii) educating charitable organizations and players, and (iii) promoting charitable gaming in Virginia. Expenditures and disbursements from the Fund shall be made by the State Treasurer on warrants issued by the Comptroller upon written request signed by the chairman or vice-chairman of the Board. §2.2-2456.2. Board to adjust fees. Following the close of any biennium, when the account for the Board shows expenses allocated to it for the past biennium to be more than 10 percent greater or less than moneys collected by the Board, the Board shall revise the fees levied by it for issuing charitable gaming permits and supplier registrations, or renewal thereof, so that the fees are sufficient but not excessive to cover expenses. §18.2-340.15. State control of charitable gaming. A. Charitable gaming as authorized herein shall be permitted
in the Commonwealth as a means of funding qualified organizations but shall be
conducted only in strict compliance with the provisions of this article. The B. The conduct of any charitable gaming is a privilege that
may be granted or denied by the §18.2-340.16. Definitions. As used in this article, unless the context requires a different meaning: "Bingo" means a specific game of chance played with
(i) individual cards having randomly numbered squares ranging from one to 75,
(ii) "Board" means the Charitable Gaming Board created pursuant to §2.2-2455. "Bona fide member" means an individual who participates in activities of a qualified organization other than such organization's charitable gaming activities. "Charitable gaming" or "charitable games" means those raffles and games of chance explicitly authorized by this article. "Charitable gaming supplies" includes bingo cards or sheets, devices for selecting bingo numbers, instant bingo cards, pull-tab cards and seal cards, and any other equipment or product manufactured for or intended to be used in the conduct of charitable games. However, for the purposes of this article, charitable gaming supplies shall not include items incidental to the conduct of charitable gaming such as markers, wands, or tape. "Commissioner" means the Commissioner of the Department of Agriculture and Consumer Services. "Conduct" means the actions associated with the provision of a gaming operation during and immediately before or after the permitted activity, which may include, but not be limited to, (i) selling bingo cards or packs, electronic devices, instant bingo or pull-tab cards, or raffle tickets, (ii) calling bingo games, (iii) distributing prizes, and (iv) any other services provided by volunteer workers. "Department" means the Department of Agriculture and Consumer Services. "Fair market rental value" means the rent that a rental property will bring when offered for lease by a lessor who desires to lease the property but is not obligated to do so and leased by a lessee under no necessity of leasing. "Gaming expenses" means prizes, supplies, costs of publicizing gaming activities, audit and administration or permit fees, and a portion of the rent, utilities, accounting and legal fees and such other reasonable and proper expenses as are directly incurred for the conduct of charitable gaming. "Gross receipts" means the total amount of money generated by an organization from charitable gaming before the deduction of expenses, including prizes. "Instant bingo,""pull tabs," or "seal
cards" means specific games of chance played by the random selection of
one or more individually prepacked cards, including "Jackpot" means a bingo game that the organization has designated on its game program as a jackpot game in which the prize amount is greater than $100. "Landlord" means any person or his agent, firm, association, organization, partnership, or corporation, employee, or immediate family member thereof, which owns and leases, or leases any premises devoted in whole or in part to the conduct of bingo games, and any person residing in the same household as a landlord. "Management" means the provision of oversight of a gaming operation, which may include, but is not limited to, the responsibilities of applying for and maintaining a permit or authorization, compiling, submitting and maintaining required records and financial reports, and ensuring that all aspects of the operation are in compliance with all applicable statutes and regulations. "Network bingo" means a specific bingo game in which pari-mutuel play is permitted. "Network bingo provider" means a person licensed by
the "Operation" means the activities associated with production of a charitable gaming activity, which may include, but not be limited to (i) the direct on-site supervision of the conduct of charitable gaming; (ii) coordination of volunteers; and (iii) all responsibilities of charitable gaming designated by the organization's management. "Organization" means any one of the following: 1. A volunteer fire department or volunteer emergency medical services agency or auxiliary unit thereof that has been recognized in accordance with §15.2-955 by an ordinance or resolution of the political subdivision where the volunteer fire department or volunteer emergency medical services agency is located as being a part of the safety program of such political subdivision; 2. An organization operated exclusively for religious, charitable, community or educational purposes; 3. An athletic association or booster club or a band booster club established solely to raise funds for school-sponsored athletic or band activities for a public school or private school accredited pursuant to § 22.1-19 or to provide scholarships to students attending such school; 4. An association of war veterans or auxiliary units thereof organized in the United States; 5. A fraternal association or corporation operating under the lodge system; 6. A local chamber of commerce; or 7. Any other nonprofit organization that raises funds by conducting raffles that generate annual gross receipts of $40,000 or less, provided such gross receipts from the raffle, less expenses and prizes, are used exclusively for charitable, educational, religious or community purposes. "Pari-mutuel play" means an integrated network
operated by a licensee of the "Qualified organization" means any organization to
which a valid permit has been issued by the "Raffle" means a lottery in which the prize is won by (i) a random drawing of the name or prearranged number of one or more persons purchasing chances or (ii) a random contest in which the winning name or preassigned number of one or more persons purchasing chances is determined by a race involving inanimate objects floating on a body of water, commonly referred to as a "duck race." "Reasonable and proper business expenses" means business expenses actually incurred by a qualified organization in the conduct of charitable gaming and not otherwise allowed under this article or under Board regulations on real estate and personal property tax payments, travel expenses, payments of utilities and trash collection services, legal and accounting fees, costs of business furniture, fixtures and office equipment and costs of acquisition, maintenance, repair or construction of an organization's real property. For the purpose of this definition, salaries and wages of employees whose primary responsibility is to provide services for the principal benefit of an organization's members shall not qualify as a business expense. However, payments made pursuant to §51.1-1204 to the Volunteer Firefighters' and Rescue Squad Workers' Service Award Fund shall be deemed a reasonable and proper business expense. "Supplier" means any person who offers to sell, sells or otherwise provides charitable gaming supplies to any qualified organization. §18.2-340.18. Powers and duties of the Board. The 1. The 2. The 3. The 4. The 5. The 6. The 7. The 8. The 9. The 10. The 11. The §18.2-340.20. Denial, suspension or revocation of permit; hearings and appeals. A. The B. Except as provided in §§18.2-340.25, 18.2-340.30 and
18.2-340.36, no permit to conduct charitable gaming shall be denied, suspended
or revoked except upon notice stating the proposed basis for such action and
the time and place for the hearing. At the discretion of the C. Any person aggrieved by a refusal of the §18.2-340.23. Organizations exempt from certain permits and fees. A. No organization that reasonably expects, based on prior
charitable gaming annual results or any other quantifiable method, to realize
gross receipts of $40,000 or less in any 12-month period shall be required to
(i) notify the B. Any volunteer fire department or volunteer emergency medical services agency or auxiliary unit thereof that has been recognized in accordance with §15.2-955 by an ordinance or resolution of the political subdivision where the volunteer fire department or volunteer emergency medical services agency is located as being part of the safety program of such political subdivision shall be exempt from the payment of application fees required by § 18.2-340.25 and the payment of audit fees required by §18.2-340.31. Nothing in this subsection shall be construed as exempting volunteer fire departments and volunteer emergency medical services agencies from any other provisions of this article or other Board regulations. C. Nothing in this section shall prevent the §18.2-340.24. Eligibility for permit; exceptions; where valid. A. To be eligible for a permit to conduct charitable gaming, an organization shall: 1. Have been in existence and met on a regular basis in the Commonwealth for a period of at least three years immediately prior to applying for a permit. The three-year residency requirement shall not apply (i) to any lodge or chapter of a national or international fraternal order or of a national or international civic organization which is exempt under §501(c) of the United States Internal Revenue Code and which has a lodge or chapter holding a charitable gaming permit issued under the provisions of this article anywhere within the Commonwealth; (ii) to booster clubs which have been operating for less than three years and which have been established solely to raise funds for school-sponsored activities in public schools or private schools accredited pursuant to §22.1-19; (iii) to recently established volunteer fire and rescue companies or departments, after county, city or town approval; or (iv) to an organization which relocates its meeting place on a permanent basis from one jurisdiction to another, complies with the requirements of subdivision 2 of this section, and was the holder of a valid permit at the time of its relocation. 2. Be operating currently and have always been operated as a nonprofit organization. 3. Have at least 50 percent of its membership consist of residents of the Commonwealth; however, if an organization (i) does not consist of bona fide members and (ii) is exempt under §501(c)(3) of the United States Internal Revenue Code, the Board shall exempt such organizations from the requirements of this subdivision. B. Any organization whose gross receipts from all charitable
gaming exceeds or can be expected to exceed $40,000 in any calendar year shall
have been granted tax-exempt status pursuant to §501(c) of the United States
Internal Revenue Code . At the same time tax-exempt status is sought from the
Internal Revenue Service, the same documentation may be filed with the C. A permit shall be valid only for the locations, dates, and times designated in the permit. §18.2-340.25. Permit required; application fee; form of application. A. Except as provided for in §18.2-340.23, prior to the
commencement of any charitable game, an organization shall obtain a permit from
the B. All complete applications for a permit shall be acted upon
by the All permits shall be subject to regulation by the C. In no case shall an organization receive more than one permit allowing it to conduct charitable gaming; however, nothing in this section shall be construed to prohibit granting special permits pursuant to § 18.2-340.27. D. Application for a charitable gaming permit shall be made on forms prescribed by the Department and shall be accompanied by payment of the fee for processing the application. E. Applications for renewal of permits shall be made in
accordance with Board F. The failure to meet any of the requirements of § 18.2-340.24 shall cause the automatic denial of the permit, and no organization shall conduct any charitable gaming until the requirements are met and a permit is obtained. §18.2-340.26:2. Sale of instant bingo, pull tabs, or seal cards by certain booster clubs. As a part of its annual fund-raising event, any qualified
organization that is an athletic association or booster club or a band booster
club may sell instant bingo, pull tabs, or seal cards provided that (i) the
sale is limited to a single event in a calendar year and (ii) the event is open
to the public. The Nothing in this section shall be construed as exempting organizations authorized to sell instant bingo, pull tabs, or seal cards under this section from any other provisions of this article or other Board regulations. §18.2-340.27. Conduct of bingo games; special permits. A. A qualified organization shall accept only cash or, at its option, checks or debit cards in payment of any charges or assessments for players to participate in bingo games. However, no such organization shall accept postdated checks in payment of any charges or assessments for players to participate in bingo games. B. No qualified organization or any person on the premises shall extend lines of credit or accept any credit or other electronic fund transfer other than debit cards in payment of any charges or assessments for players to participate in bingo games. C. Bingo games may be held by qualified organizations no more frequently than two calendar days in any calendar week, except in accordance with subsection E. D. No more than two sessions of bingo games may be held by qualified organizations in any calendar day, nor shall there be more than 55 bingo games per session. E. A special permit may be granted a qualified organization which entitles it to conduct more frequent operations of bingo games during carnivals, fairs and state, federal or religious holidays, which shall be designated in the permit. F. Any organization may conduct bingo games only in the
county, city or town or in any adjoining county, city or town in which they
regularly have been in existence or met. The §18.2-340.29. Joint operation of bingo games; written reports; joint permit required. A. Any two or more qualified organizations may jointly organize and conduct bingo games provided both have fully complied with all other provisions of this article. B. Any two or more qualified organizations jointly conducting
such games shall be (i) subject to the same restrictions and prohibitions
contained in this article that would apply to a single organization conducting
bingo games and (ii) required to furnish to the Upon a finding that the division of manpower and costs for
each game bears a reasonable relationship to the division of proceeds, the C. No bingo game shall be jointly conducted until the joint permit issued pursuant to subsection B is obtained by the organizations. §18.2-340.30. Reports of gross receipts and disbursements required; form of reports; failure to file. A. Each qualified organization shall keep a complete record of
all inventory of charitable gaming supplies purchased, all receipts from its
charitable gaming operation, and all disbursements related to such operation.
Except as provided in §18.2-340.23, each qualified organization shall file at
least annually, on a form prescribed by the B. All reports required by this section shall be filed on or
before the date prescribed by the C. Except as provided in §18.2-340.23, each qualified
organization shall designate or compensate an outside individual or group who
shall be responsible for filing an annual, and, if required, quarterly,
financial report if the organization goes out of business or otherwise ceases
to conduct charitable gaming activities. The D. Each qualified organization shall maintain for three years
a complete written record of (i) all charitable gaming sessions using E. The failure to file reports within 30 days of the time such
reports are 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. However, the §18.2-340.31. Audit of reports; exemption; audit and administration fee. A. All reports filed pursuant to §18.2-340.30 shall be
subject to audit B. The C. The audit and administration fee shall be payable to the Treasurer
of Virginia. All such fees received by the Treasurer of Virginia shall be
separately accounted for and shall be used only by the §18.2-340.33. Prohibited practices. In addition to those other practices prohibited by this article, the following acts or practices are prohibited: 1. No part of the gross receipts derived by a qualified organization may be used for any purpose other than (i) reasonable and proper gaming expenses, (ii) reasonable and proper business expenses, (iii) those lawful religious, charitable, community or educational purposes for which the organization is specifically chartered or organized, and (iv) expenses relating to the acquisition, construction, maintenance, or repair of any interest in the real property involved in the operation of the organization and used for lawful religious, charitable, community or educational purposes. For the purposes of clause (iv), such expenses may include the expenses of a corporation formed for the purpose of serving as the real estate holding entity of a qualified organization, provided (a) such holding entity is qualified as a tax exempt organization under §501(c) of the Internal Revenue Code and (b) the membership of the qualified organization is identical to such holding entity. 2. Except as provided in §18.2-340.34:1, no qualified organization shall enter into a contract with or otherwise employ for compensation any person for the purpose of organizing, managing, or conducting any charitable games. However, organizations composed of or for deaf or blind persons may use a part of their gross receipts for costs associated with providing clerical assistance in the management and operation but not the conduct of charitable gaming. The provisions of this subdivision shall not prohibit the joint operation of bingo games held in accordance with §18.2-340.29. 3. No person shall pay or receive for use of any premises devoted, in whole or in part, to the conduct of any charitable games, any consideration in excess of the current fair market rental value of such property. Fair market rental value consideration shall not be based upon or determined by reference to a percentage of the proceeds derived from the operation of any charitable games or to the number of people in attendance at such charitable games. 4. No building or other premises shall be utilized in whole or in part for the purpose of conducting charitable gaming more frequently than two calendar days in any one calendar week. However, no building or other premises owned by (i) a qualified organization which is exempt from taxation pursuant to §501(c) of the Internal Revenue Code or (ii) any county, city or town shall be utilized in whole or in part for the purpose of conducting bingo games more frequently than four calendar days in any one calendar week. The provisions of this subdivision shall not apply to the playing of bingo games pursuant to a special permit issued in accordance with § 18.2-340.27. 5. No person shall participate in the management or operation of any charitable game unless such person is and, for a period of at least 30 days immediately preceding such participation, has been a bona fide member of the organization. For any organization that is not composed of members, a person who is not a bona fide member may volunteer in the conduct of a charitable game as long as that person is directly supervised by a bona fide official member of the organization. The provisions of this subdivision shall not apply to (i) persons employed as clerical assistants by qualified organizations composed of or for deaf or blind persons; (ii) employees of a corporate sponsor of a qualified organization, provided such employees' participation is limited to the management, operation or conduct of no more than one raffle per year; (iii) the spouse or family member of any such bona fide member of a qualified organization provided at least one bona fide member is present; or (iv) persons employed by a qualified organization authorized to sell pull tabs or seal cards in accordance with §18.2-340.16, provided (a) such sales are conducted by no more than two on-duty employees, (b) such employees receive no compensation for or based on the sale of the pull tabs or seal cards, and (c) such sales are conducted in the private social quarters of the organization. 6. No person shall receive any remuneration for participating in the management, operation or conduct of any charitable game, except that: a. Persons employed by organizations composed of or for deaf or blind persons may receive remuneration not to exceed $30 per event for providing clerical assistance in the management and operation but not the conduct of charitable games only for such organizations; b. Persons under the age of 19 who sell raffle tickets for a qualified organization to raise funds for youth activities in which they participate may receive nonmonetary incentive awards or prizes from the organization; c. Remuneration may be paid to off-duty law-enforcement officers from the jurisdiction in which such bingo games are played for providing uniformed security for such bingo games even if such officer is a member of the sponsoring organization, provided the remuneration paid to such member is in accordance with off-duty law-enforcement personnel work policies approved by the local law-enforcement official and further provided that such member is not otherwise engaged in the management, operation or conduct of the bingo games of that organization, or to private security services businesses licensed pursuant to §9.1-139 providing uniformed security for such bingo games, provided that employees of such businesses shall not otherwise be involved in the management, operation, or conduct of the bingo games of that organization; d. A member of a qualified organization lawfully participating in the management, operation or conduct of a bingo game may be provided food and nonalcoholic beverages by such organization for on-premises consumption during the bingo game provided the food and beverages are provided in accordance with Board regulations; and e. Remuneration may be paid to bingo managers or callers who
have a current registration certificate issued by the 7. No landlord shall, at bingo games conducted on the landlord's premises, (i) participate in the conduct, management, or operation of any bingo games; (ii) sell, lease or otherwise provide for consideration any bingo supplies, including, but not limited to, bingo cards, instant bingo cards, or other game pieces; or (iii) require as a condition of the lease or by contract that a particular manufacturer, distributor or supplier of bingo supplies or equipment be used by the organization. The provisions of this subdivision shall not apply to any qualified organization conducting bingo games on its own behalf at premises owned by it. 8. No qualified organization shall enter into any contract with or otherwise employ or compensate any member of the organization on account of the sale of bingo supplies or equipment. 9. No organization shall award any bingo prize money or any merchandise valued in excess of the following amounts: a. No bingo door prize shall exceed $50 for a single door prize or $250 in cumulative door prizes in any one session; b. No regular bingo or special bingo game prize shall exceed $100; c. No instant bingo, pull tab, or seal card prize for a single card shall exceed $1,000; d. Except as provided in subdivision 9, no bingo jackpot of any nature whatsoever shall exceed $1,000, nor shall the total amount of bingo jackpot prizes awarded in any one session exceed $1,000. Proceeds from the sale of bingo cards and the sheets used for bingo jackpot games shall be accounted for separately from the bingo cards or sheets used for any other bingo games; and e. No single network bingo prize shall exceed $25,000. Proceeds from the sale of network bingo cards shall be accounted for separately from bingo cards and sheets used for any other bingo game. 10. The provisions of subdivision 9 shall not apply to: Any progressive bingo game, in which (a) a regular or special
prize, not to exceed $100, is awarded on the basis of predetermined numbers or
patterns selected at random and (b) a progressive prize, not to exceed $500 for
the initial progressive prize and $5,000 for the maximum progressive prize, is
awarded if the predetermined numbers or patterns are covered when a certain
number of numbers is called, provided (i) there are no more than six such games
per session per organization, (ii) the amount of increase of the progressive
prize per session is no more than $100, (iii) the bingo cards or sheets used in
such games are sold separately from the bingo cards or sheets used for any
other bingo games, (iv) the organization separately accounts for the proceeds
from such sale, and (v) such games are otherwise operated in accordance with
the 11. No organization shall award any raffle prize valued at more than $100,000. The provisions of this subdivision shall not apply to a raffle conducted no more than once per calendar year by a qualified organization qualified as a tax-exempt organization pursuant to §501(c) of the Internal Revenue Code for a prize consisting of a lot improved by a residential dwelling where 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 §501(c) tax-exempt organization. 12. No qualified organization composed of or for deaf or blind persons which employs a person not a member to provide clerical assistance in the management and operation but not the conduct of any charitable games shall conduct such games unless it has in force fidelity insurance, as defined in § 38.2-120, written by an insurer licensed to do business in the Commonwealth. 13. No person shall participate in the management or operation
of any charitable game if he has ever been convicted of any felony or if he has
been convicted of any misdemeanor involving fraud, theft, or financial crimes
within the preceding five years. No person shall participate in the conduct of
any charitable game if, within the preceding 10 years, he has been convicted of
any felony or if, within the preceding five years he has been convicted of any
misdemeanor involving fraud, theft, or financial crimes. In addition, no person
shall participate in the management, operation or conduct of any charitable
game if that person, within the preceding five years, has participated in the
management, operation, or conduct of any charitable game which was found by the 14. Qualified organizations jointly conducting bingo games pursuant to §18.2-340.29 shall not circumvent any restrictions and prohibitions which would otherwise apply if a single organization were conducting such games. These restrictions and prohibitions shall include, but not be limited to, the frequency with which bingo games may be held, the value of merchandise or money awarded as prizes, or any other practice prohibited under this section. 15. A qualified organization shall not purchase any charitable
gaming supplies for use in the Commonwealth from any person who is not
currently registered with the 16. Unless otherwise permitted in this article, no part of an organization's charitable gaming gross receipts shall be used for an organization's social or recreational activities. §18.2-340.34. Suppliers of charitable gaming supplies; manufacturers of electronic games of chance systems; permit; qualification; suspension, revocation or refusal to renew certificate; maintenance, production, and release of records. A. No person shall offer to sell, sell or otherwise provide
charitable gaming supplies to any qualified organization and no manufacturer
shall distribute electronic games of chance systems for charitable gaming in
the Commonwealth unless and until such person has made application for and has
been issued a permit by the B. The Board shall have authority to prescribe by regulation
reasonable criteria consistent with the provisions of this article for the
registration of suppliers and manufacturers of electronic games of chance
systems for charitable gaming. The C. The D. Each supplier shall document each sale of charitable gaming supplies, including electronic games of chance systems, and other items incidental to the conduct of charitable gaming, such as markers, wands or tape, to a qualified organization on an invoice which clearly shows (i) the name and address of the qualified organization to which such supplies or items were sold; (ii) the date of the sale; (iii) the name or form and serial number of each deal of instant bingo cards and pull-tab raffle cards, the quantity of deals sold and the price per deal paid by the qualified organization; (iv) the serial number of the top sheet in each packet of bingo paper, the serial number for each series of uncollated bingo paper, and the cut, color and quantity of bingo paper sold; and (v) any other information with respect to charitable gaming supplies, including electronic games of chance systems, or other items incidental to the conduct of charitable gaming as the Board may prescribe by regulation. A legible copy of the invoice shall accompany the charitable gaming supplies when delivered to the qualified organization. Each manufacturer of electronic games of chance systems shall document each distribution of such systems to a qualified organization or supplier on an invoice which clearly shows (i) the name and address of the qualified organization or supplier to which such systems were distributed; (ii) the date of distribution; (iii) the serial number of each such system; and (iv) any other information with respect to electronic games of chance systems as the Board may prescribe by regulation. A legible copy of the invoice shall accompany the electronic games of chance systems when delivered to the qualified organization or supplier. E. Each supplier and manufacturer shall maintain a legible
copy of each invoice required by subsection D for a period of three years from
the date of sale. Each supplier and manufacturer shall make such documents
immediately available for inspection and copying to any agent or employee of
the §18.2-340.35. Assistance from Department of State Police and Attorney General. A. The Department of the State
Police, upon request of the B. The Attorney General shall, upon request, bring an action for an injunction or other appropriate legal action on behalf of the Board to enforce the provisions of this article. §18.2-340.36. Suspension of permit. A. When any officer charged with the enforcement of the charitable gaming laws of the Commonwealth has reasonable cause to believe that the conduct of charitable gaming is being conducted by an organization in violation of this article or the regulations of the Board, he may apply to any judge, magistrate, or other person having authority to issue criminal warrants for the immediate suspension of the permit of the organization conducting the bingo game or raffle. If the judge, magistrate, or person to whom such application is presented is satisfied that probable cause exists to suspend the permit, he shall suspend the permit. Immediately upon such suspension, the officer shall notify the organization in writing of such suspension. B. Written notice specifying the particular basis for the
immediate suspension shall be provided by the officer to the organization
within one business day of the suspension and a hearing held thereon by the §18.2-340.37. Criminal penalties. A. Any person who violates the provisions of this article or
who willfully and knowingly files, or causes to be filed, a false application,
report or other document or who willfully and knowingly makes a false
statement, or causes a false statement to be made, on any application, report
or other document required to be filed with or made to the B. Each day in violation shall constitute a separate offense. C. Any person who converts funds derived from any charitable gaming to his own or another's use, when the amount of funds is less than $200, shall be guilty of petit larceny and, when the amount of funds is $200 or more, shall be guilty of grand larceny. The provisions of this section shall not preclude the applicability of any other provision of the criminal law of the Commonwealth that may apply to any course of conduct that violates this section. §58.1-3. (Effective until July 1, 2018) Secrecy of information; penalties. A. Except in accordance with a proper judicial order or as otherwise provided by law, the Tax Commissioner or agent, clerk, commissioner of the revenue, treasurer, or any other state or local tax or revenue officer or employee, or any person to whom tax information is divulged pursuant to § 58.1-512 or 58.1-2712.2, or any former officer or employee of any of the aforementioned offices shall not divulge any information acquired by him in the performance of his duties with respect to the transactions, property, including personal property, income or business of any person, firm or corporation. Such prohibition specifically includes any copy of a federal return or federal return information required by Virginia law to be attached to or included in the Virginia return. This prohibition shall apply to any reports, returns, financial documents or other information filed with the Attorney General pursuant to the provisions of Article 3 (§3.2-4204 et seq.) of Chapter 42 of Title 3.2. Any person violating the provisions of this section is guilty of a Class 1 misdemeanor. The provisions of this subsection shall not be applicable, however, to: 1. Matters required by law to be entered on any public assessment roll or book; 2. Acts performed or words spoken, published, or shared with another agency or subdivision of the Commonwealth in the line of duty under state law; 3. Inquiries and investigations to obtain information as to the process of real estate assessments by a duly constituted committee of the General Assembly, or when such inquiry or investigation is relevant to its study, provided that any such information obtained shall be privileged; 4. The sales price, date of construction, physical dimensions or characteristics of real property, or any information required for building permits; 5. Copies of or information contained in an estate's probate tax return, filed with the clerk of court pursuant to §58.1-1714, when requested by a beneficiary of the estate or an heir at law of the decedent; 6. Information regarding nonprofit entities exempt from sales and use tax under §58.1-609.11, when requested by the General Assembly or any duly constituted committee of the General Assembly; 7. Reports or information filed with the Attorney General by a Stamping Agent pursuant to the provisions of Article 3 (§3.2-4204 et seq.), when such reports or information are provided by the Attorney General to a tobacco products manufacturer who is required to establish a qualified escrow fund pursuant to §3.2-4201 and are limited to the brand families of that manufacturer as listed in the Tobacco Directory established pursuant to § 3.2-4206 and are limited to the current or previous two calendar years or in any year in which the Attorney General receives Stamping Agent information that potentially alters the required escrow deposit of the manufacturer. The information shall only be provided in the following manner: the manufacturer may make a written request, on a quarterly or yearly basis or when the manufacturer is notified by the Attorney General of a potential change in the amount of a required escrow deposit, to the Attorney General for a list of the Stamping Agents who reported stamping or selling its products and the amount reported. The Attorney General shall provide the list within 15 days of receipt of the request. If the manufacturer wishes to obtain actual copies of the reports the Stamping Agents filed with the Attorney General, it must first request them from the Stamping Agents pursuant to subsection C of §3.2-4209. If the manufacturer does not receive the reports pursuant to subsection C of § 3.2-4209, the manufacturer may make a written request to the Attorney General, including a copy of the prior written request to the Stamping Agent and any response received, for copies of any reports not received. The Attorney General shall provide copies of the reports within 45 days of receipt of the request. B. 1. Nothing contained in this section shall be construed to prohibit the publication of statistics so classified as to prevent the identification of particular reports or returns and the items thereof or the publication of delinquent lists showing the names of taxpayers who are currently delinquent, together with any relevant information which in the opinion of the Department may assist in the collection of such delinquent taxes. Notwithstanding any other provision of this section or other law, the Department, upon request by the General Assembly or any duly constituted committee of the General Assembly, shall disclose the total aggregate amount of an income tax deduction or credit taken by all taxpayers, regardless of (i) how few taxpayers took the deduction or credit or (ii) any other circumstances. This section shall not be construed to prohibit a local tax official from disclosing whether a person, firm or corporation is licensed to do business in that locality and divulging, upon written request, the name and address of any person, firm or corporation transacting business under a fictitious name. Additionally, notwithstanding any other provision of law, the commissioner of revenue is authorized to provide, upon written request stating the reason for such request, the Tax Commissioner with information obtained from local tax returns and other information pertaining to the income, sales and property of any person, firm or corporation licensed to do business in that locality. 2. This section shall not prohibit the Department from disclosing whether a person, firm, or corporation is registered as a retail sales and use tax dealer pursuant to Chapter 6 (§58.1-600 et seq.) or whether a certificate of registration number relating to such tax is valid. Additionally, notwithstanding any other provision of law, the Department is hereby authorized to make available the names and certificate of registration numbers of dealers who are currently registered for retail sales and use tax. 3. This section shall not prohibit the Department from disclosing information to nongovernmental entities with which the Department has entered into a contract to provide services that assist it in the administration of refund processing or other services related to its administration of taxes. C. Notwithstanding the provisions of subsection A or B or any
other provision of this title, the Tax Commissioner is authorized to: (i)
divulge tax information to any commissioner of the revenue, director of finance
or other similar collector of county, city or town taxes who, for the
performance of his official duties, requests the same in writing setting forth
the reasons for such request; (ii) provide to the Commissioner of the
Department of Social Services, upon written request, information on the amount
of income, filing status, number and type of dependents, and whether a federal
earned income tax credit has been claimed as reported by persons on their state
income tax returns who have applied for public assistance or social services
benefits as defined in §63.2-100; (iii) provide to the chief executive officer
of the designated student loan guarantor for the Commonwealth of Virginia, upon
written request, the names and home addresses of those persons identified by
the designated guarantor as having delinquent loans guaranteed by the
designated guarantor; (iv) provide current address information upon request to
state agencies and institutions for their confidential use in facilitating the
collection of accounts receivable, and to the clerk of a circuit or district
court for their confidential use in facilitating the collection of fines,
penalties and costs imposed in a proceeding in that court; (v) provide to the
Commissioner of the Virginia Employment Commission, after entering into a
written agreement, such tax information as may be necessary to facilitate the
collection of unemployment taxes and overpaid benefits; (vi) provide to the
Alcoholic Beverage Control Board, upon entering into a written agreement, such
tax information as may be necessary to facilitate the collection of state and
local taxes and the administration of the alcoholic beverage control laws;
(vii) provide to the Director of the Virginia Lottery such tax information as
may be necessary to identify those lottery ticket retailers who owe delinquent
taxes; (viii) provide to the Department of the Treasury for its confidential
use such tax information as may be necessary to facilitate the location of
owners and holders of unclaimed property, as defined in §55-210.2; (ix)
provide to the State Corporation Commission, upon entering into a written
agreement, such tax information as may be necessary to facilitate the
collection of taxes and fees administered by the Commission; (x) provide to the
Executive Director of the Potomac and Rappahannock Transportation Commission
for his confidential use such tax information as may be necessary to facilitate
the collection of the motor vehicle fuel sales tax; (xi) provide to the D. Notwithstanding the provisions of subsection A or B or any other provision of this title, the commissioner of revenue or other assessing official is authorized to (i) provide, upon written request stating the reason for such request, the chief executive officer of any county or city with information furnished to the commissioner of revenue by the Tax Commissioner relating to the name and address of any dealer located within the county or city who paid sales and use tax, for the purpose of verifying the local sales and use tax revenues payable to the county or city; (ii) provide to the Department of Professional and Occupational Regulation for its confidential use the name, address, and amount of gross receipts of any person, firm or entity subject to a criminal investigation of an unlawful practice of a profession or occupation administered by the Department of Professional and Occupational Regulation, only after the Department of Professional and Occupational Regulation exhausts all other means of obtaining such information; and (iii) provide to any representative of a condominium unit owners' association, property owners' association or real estate cooperative association, or to the owner of property governed by any such association, the names and addresses of parties having a security interest in real property governed by any such association; however, such information shall be released only upon written request stating the reason for such request, which reason shall be limited to proposing or opposing changes to the governing documents of the association, and any information received by any person under this subsection shall be used only for the reason stated in the written request. The treasurer or other local assessing official may require any person requesting information pursuant to clause (iii) of this subsection to pay the reasonable cost of providing such information. Any person to whom tax information is divulged pursuant to this subsection shall be subject to the prohibitions and penalties prescribed herein as though he were a tax official. Notwithstanding the provisions of subsection A or B or any other provisions of this title, the treasurer or other collector of taxes for a county, city or town is authorized to provide information relating to any motor vehicle, trailer or semitrailer obtained by such treasurer or collector in the course of performing his duties to the commissioner of the revenue or other assessing official for such jurisdiction for use by such commissioner or other official in performing assessments. This section shall not be construed to prohibit a local tax official from imprinting or displaying on a motor vehicle local license decal the year, make, and model and any other legal identification information about the particular motor vehicle for which that local license decal is assigned. E. Notwithstanding any other provisions of law, state agencies and any other administrative or regulatory unit of state government shall divulge to the Tax Commissioner or his authorized agent, upon written request, the name, address, and social security number of a taxpayer, necessary for the performance of the Commissioner's official duties regarding the administration and enforcement of laws within the jurisdiction of the Department of Taxation. The receipt of information by the Tax Commissioner or his agent which may be deemed taxpayer information shall not relieve the Commissioner of the obligations under this section. F. Additionally, it shall be unlawful for any person to disseminate, publish, or cause to be published any confidential tax document which he knows or has reason to know is a confidential tax document. A confidential tax document is any correspondence, document, or tax return that is prohibited from being divulged by subsection A, B, C, or D and includes any document containing information on the transactions, property, income, or business of any person, firm, or corporation that is required to be filed with any state official by §58.1-512. This prohibition shall not apply if such confidential tax document has been divulged or disseminated pursuant to a provision of law authorizing disclosure. Any person violating the provisions of this subsection is guilty of a Class 1 misdemeanor. §58.1-3. (Effective July 1, 2018) Secrecy of information; penalties. A. Except in accordance with a proper judicial order or as otherwise provided by law, the Tax Commissioner or agent, clerk, commissioner of the revenue, treasurer, or any other state or local tax or revenue officer or employee, or any person to whom tax information is divulged pursuant to § 58.1-512 or 58.1-2712.2, or any former officer or employee of any of the aforementioned offices shall not divulge any information acquired by him in the performance of his duties with respect to the transactions, property, including personal property, income or business of any person, firm or corporation. Such prohibition specifically includes any copy of a federal return or federal return information required by Virginia law to be attached to or included in the Virginia return. This prohibition shall apply to any reports, returns, financial documents or other information filed with the Attorney General pursuant to the provisions of Article 3 (§3.2-4204 et seq.) of Chapter 42 of Title 3.2. Any person violating the provisions of this section is guilty of a Class 1 misdemeanor. The provisions of this subsection shall not be applicable, however, to: 1. Matters required by law to be entered on any public assessment roll or book; 2. Acts performed or words spoken, published, or shared with another agency or subdivision of the Commonwealth in the line of duty under state law; 3. Inquiries and investigations to obtain information as to the process of real estate assessments by a duly constituted committee of the General Assembly, or when such inquiry or investigation is relevant to its study, provided that any such information obtained shall be privileged; 4. The sales price, date of construction, physical dimensions or characteristics of real property, or any information required for building permits; 5. Copies of or information contained in an estate's probate tax return, filed with the clerk of court pursuant to §58.1-1714, when requested by a beneficiary of the estate or an heir at law of the decedent; 6. Information regarding nonprofit entities exempt from sales and use tax under §58.1-609.11, when requested by the General Assembly or any duly constituted committee of the General Assembly; 7. Reports or information filed with the Attorney General by a Stamping Agent pursuant to the provisions of Article 3 (§3.2-4204 et seq.), when such reports or information are provided by the Attorney General to a tobacco products manufacturer who is required to establish a qualified escrow fund pursuant to §3.2-4201 and are limited to the brand families of that manufacturer as listed in the Tobacco Directory established pursuant to § 3.2-4206 and are limited to the current or previous two calendar years or in any year in which the Attorney General receives Stamping Agent information that potentially alters the required escrow deposit of the manufacturer. The information shall only be provided in the following manner: the manufacturer may make a written request, on a quarterly or yearly basis or when the manufacturer is notified by the Attorney General of a potential change in the amount of a required escrow deposit, to the Attorney General for a list of the Stamping Agents who reported stamping or selling its products and the amount reported. The Attorney General shall provide the list within 15 days of receipt of the request. If the manufacturer wishes to obtain actual copies of the reports the Stamping Agents filed with the Attorney General, it must first request them from the Stamping Agents pursuant to subsection C of §3.2-4209. If the manufacturer does not receive the reports pursuant to subsection C of § 3.2-4209, the manufacturer may make a written request to the Attorney General, including a copy of the prior written request to the Stamping Agent and any response received, for copies of any reports not received. The Attorney General shall provide copies of the reports within 45 days of receipt of the request. B. 1. Nothing contained in this section shall be construed to prohibit the publication of statistics so classified as to prevent the identification of particular reports or returns and the items thereof or the publication of delinquent lists showing the names of taxpayers who are currently delinquent, together with any relevant information which in the opinion of the Department may assist in the collection of such delinquent taxes. Notwithstanding any other provision of this section or other law, the Department, upon request by the General Assembly or any duly constituted committee of the General Assembly, shall disclose the total aggregate amount of an income tax deduction or credit taken by all taxpayers, regardless of (i) how few taxpayers took the deduction or credit or (ii) any other circumstances. This section shall not be construed to prohibit a local tax official from disclosing whether a person, firm or corporation is licensed to do business in that locality and divulging, upon written request, the name and address of any person, firm or corporation transacting business under a fictitious name. Additionally, notwithstanding any other provision of law, the commissioner of revenue is authorized to provide, upon written request stating the reason for such request, the Tax Commissioner with information obtained from local tax returns and other information pertaining to the income, sales and property of any person, firm or corporation licensed to do business in that locality. 2. This section shall not prohibit the Department from disclosing whether a person, firm, or corporation is registered as a retail sales and use tax dealer pursuant to Chapter 6 (§58.1-600 et seq.) or whether a certificate of registration number relating to such tax is valid. Additionally, notwithstanding any other provision of law, the Department is hereby authorized to make available the names and certificate of registration numbers of dealers who are currently registered for retail sales and use tax. 3. This section shall not prohibit the Department from disclosing information to nongovernmental entities with which the Department has entered into a contract to provide services that assist it in the administration of refund processing or other services related to its administration of taxes. C. Notwithstanding the provisions of subsection A or B or any
other provision of this title, the Tax Commissioner is authorized to: (i)
divulge tax information to any commissioner of the revenue, director of finance
or other similar collector of county, city or town taxes who, for the
performance of his official duties, requests the same in writing setting forth
the reasons for such request; (ii) provide to the Commissioner of the
Department of Social Services, upon written request, information on the amount
of income, filing status, number and type of dependents, and whether a federal
earned income tax credit has been claimed as reported by persons on their state
income tax returns who have applied for public assistance or social services
benefits as defined in §63.2-100; (iii) provide to the chief executive officer
of the designated student loan guarantor for the Commonwealth of Virginia, upon
written request, the names and home addresses of those persons identified by
the designated guarantor as having delinquent loans guaranteed by the
designated guarantor; (iv) provide current address information upon request to
state agencies and institutions for their confidential use in facilitating the
collection of accounts receivable, and to the clerk of a circuit or district
court for their confidential use in facilitating the collection of fines,
penalties and costs imposed in a proceeding in that court; (v) provide to the Commissioner
of the Virginia Employment Commission, after entering into a written agreement,
such tax information as may be necessary to facilitate the collection of
unemployment taxes and overpaid benefits; (vi) provide to the Virginia
Alcoholic Beverage Control Authority, upon entering into a written agreement,
such tax information as may be necessary to facilitate the collection of state
and local taxes and the administration of the alcoholic beverage control laws;
(vii) provide to the Director of the Virginia Lottery such tax information as
may be necessary to identify those lottery ticket retailers who owe delinquent
taxes; (viii) provide to the Department of the Treasury for its confidential
use such tax information as may be necessary to facilitate the location of
owners and holders of unclaimed property, as defined in §55-210.2; (ix)
provide to the State Corporation Commission, upon entering into a written
agreement, such tax information as may be necessary to facilitate the
collection of taxes and fees administered by the Commission; (x) provide to the
Executive Director of the Potomac and Rappahannock Transportation Commission
for his confidential use such tax information as may be necessary to facilitate
the collection of the motor vehicle fuel sales tax; (xi) provide to the D. Notwithstanding the provisions of subsection A or B or any other provision of this title, the commissioner of revenue or other assessing official is authorized to (i) provide, upon written request stating the reason for such request, the chief executive officer of any county or city with information furnished to the commissioner of revenue by the Tax Commissioner relating to the name and address of any dealer located within the county or city who paid sales and use tax, for the purpose of verifying the local sales and use tax revenues payable to the county or city; (ii) provide to the Department of Professional and Occupational Regulation for its confidential use the name, address, and amount of gross receipts of any person, firm or entity subject to a criminal investigation of an unlawful practice of a profession or occupation administered by the Department of Professional and Occupational Regulation, only after the Department of Professional and Occupational Regulation exhausts all other means of obtaining such information; and (iii) provide to any representative of a condominium unit owners' association, property owners' association or real estate cooperative association, or to the owner of property governed by any such association, the names and addresses of parties having a security interest in real property governed by any such association; however, such information shall be released only upon written request stating the reason for such request, which reason shall be limited to proposing or opposing changes to the governing documents of the association, and any information received by any person under this subsection shall be used only for the reason stated in the written request. The treasurer or other local assessing official may require any person requesting information pursuant to clause (iii) of this subsection to pay the reasonable cost of providing such information. Any person to whom tax information is divulged pursuant to this subsection shall be subject to the prohibitions and penalties prescribed herein as though he were a tax official. Notwithstanding the provisions of subsection A or B or any other provisions of this title, the treasurer or other collector of taxes for a county, city or town is authorized to provide information relating to any motor vehicle, trailer or semitrailer obtained by such treasurer or collector in the course of performing his duties to the commissioner of the revenue or other assessing official for such jurisdiction for use by such commissioner or other official in performing assessments. This section shall not be construed to prohibit a local tax official from imprinting or displaying on a motor vehicle local license decal the year, make, and model and any other legal identification information about the particular motor vehicle for which that local license decal is assigned. E. Notwithstanding any other provisions of law, state agencies and any other administrative or regulatory unit of state government shall divulge to the Tax Commissioner or his authorized agent, upon written request, the name, address, and social security number of a taxpayer, necessary for the performance of the Commissioner's official duties regarding the administration and enforcement of laws within the jurisdiction of the Department of Taxation. The receipt of information by the Tax Commissioner or his agent which may be deemed taxpayer information shall not relieve the Commissioner of the obligations under this section. F. Additionally, it shall be unlawful for any person to disseminate, publish, or cause to be published any confidential tax document which he knows or has reason to know is a confidential tax document. A confidential tax document is any correspondence, document, or tax return that is prohibited from being divulged by subsection A, B, C, or D and includes any document containing information on the transactions, property, income, or business of any person, firm, or corporation that is required to be filed with any state official by § 58.1-512. This prohibition shall not apply if such confidential tax document has been divulged or disseminated pursuant to a provision of law authorizing disclosure. Any person violating the provisions of this subsection is guilty of a Class 1 misdemeanor. |
