GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1991

H	1 

HOUSE BILL 471

Short Title:  Bingo Amendments.	(Public)
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Sponsors: Representative Privette.
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Referred to:  Judiciary III.
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April 1, 1991

A BILL TO BE ENTITLED
AN ACT TO AMEND VARIOUS STATUTES GOVERNING BINGO.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 14-309.7 reads as rewritten:
"§ 14-309.7.  Licensing procedure.
(a)	An exempt organization may not operate a bingo game at a location without a license.  Application for a bingo license shall be made to the Department of Human Resources on a form prescribed by the Department.  The Department shall charge an annual application fee of two hundred dollars ($200.00) to defray the cost of issuing bingo licenses and handling bingo audit reports.  The fees collected shall be deposited in the General Fund of the State.  This license shall expire one year after the granting of the license.  This license may be renewed yearly, if the applicant pays the application fee and files an audit with the Department pursuant to G.S. 14-309.11.  A copy of the application and license shall be furnished to the local law-enforcement agency in the county or municipality in which the licensee intends to operate before bingo is conducted by the licensee.
(b)	Each application and renewal application shall contain the following information:
(1)	The name and address of the applicant and if the applicant is a corporation, association or other similar legal entity, the name and home address of each of the officers of the organization as well as the name and address of the directors, or other persons similarly situated, of the organization.
(2)	The name and home address of each of the members of the special committee.
(3)	A copy of the application for recognition of exemptions and a determination letter from the Internal Revenue Service and the Department of Revenue that indicates that the organization is an exempt organization and stating the section under which that exemption is granted; except that if the organization is a State or local branch, lodge, post, or chapter of a national organization, a copy of the determination letter of the national organization satisfies this requirement.
(4)	The location at which the applicant will conduct the bingo games. If the premises are leased, a copy of the lease or rental agreement.
(c)	In order for an exempt organization to have a member familiar with the operation of bingo present on the premises at all times when bingo is being played and for this member to be responsible for the receiving, reporting and depositing of all revenues received:
(1)	The exempt organization may pay one member for conducting a bingo game. 
(2)	Such pay shall be on an hourly basis only for the time bingo is actually being played and shall not exceed one and one-half times the existing minimum wage in North Carolina. 
(3)	The member paid under this provision shall be a member in good standing of the exempt organization for at least one year and shall not be the lessor or an employee or agent of the lessor. 
(4)	No other person may be compensated for conducting a bingo game from funds derived from any activities occurring in, or simultaneously with, the playing of bingo, including funds derived from concessions.
(5)	An exempt organization shall not contract with any person for the purpose of conducting a bingo game.
(d)	Except as provided in subsection (h) of this section, an exempt organization may hold a bingo game in or on property which is owned or leased by the exempt organization. 
(1)	If the bingo game is held in or on property owned, legally or equitably, by the exempt organization:
a.	The property must be exempt from property taxes levied under Subchapter II of Chapter 105 of the General Statutes or must be classified and not subject to any property taxes levied under Subchapter II of Chapter 105 of the General Statutes.
b.	The buildings shall be of a permanent nature with approved plumbing for bathrooms and shall not be movable or of a temporary nature such as a tent or lean-to.
(2)	If the bingo game is held in or on leased property:
a.	The lessor shall be the owner of the property or a bona fide property management agent.
b.	Subleasing shall not be permitted.
c.	The total monthly rental shall not exceed one and one-quarter percent (1 1/4%) of the total assessed ad valorem value of the portion of the building actually used for the bingo games and the land on which the building is located.  The total acreage of the land upon which the maximum amount of rent is calculated shall not exceed two acres.
d.	The total monthly rental described in sub-subdivision c. of this subdivision shall include the rental for all activities conducted by the exempt organization on that property, including the playing of bingo.
e.	The lease shall be for a period of not less than one year.
f.	The leased premises shall have been actually occupied and used by the exempt organization on a regular basis for purposes other than bingo for six months before bingo is offered on the leased premises.
(e)	All equipment used by the exempt organization in conducting the bingo game must be owned by the organization. 
(f)	It shall be unlawful for any person to operate beach bingo games at a location which is being used by any licensed exempt organization for the purpose of conducting bingo games.
	(g)	Conduct of a bingo game or raffle under this Part on such property shall not operate to defeat an exemption or classification under Subchapter II of Chapter 105 of the General Statutes.
	(h)	An exempt organization desiring to conduct only an annual or  semiannual bingo game may apply to the Department of Human Resources for a limited occasion permit as follows:
(1)	The Department of Human Resources shall charge a limited occasion permit fee of one hundred dollars ($100.00) to defray the cost of issuing limited occasion permits and handling bingo audit reports.  The fees shall be deposited in the General Fund.
(2)	The Department of Human Resources may require such information as is reasonable and necessary to determine that the bingo game is conducted in accordance with the provisions of this Part but may not require more information than previously specified in this section for application of a regular license. 
(3)	The application shall be made to the Department on prescribed forms at least 30 days prior to the scheduled date of the bingo game. 
(4)	In lieu of the reporting requirements of G.S. 14-309.11(b) the exempt organization shall file with the licensing agency and local law-enforcement a report on prescribed forms no later than 30 days following the conduct of the bingo game for which the permit was obtained.   Such report may require such information as is reasonable and necessary to determine that the bingo game was conducted in accordance with the provisions of this Part but may not require more information than specified in G.S. 14-309.11(b). 
(5)	Any licensed exempt organization may donate or loan its equipment or use of its premises to an exempt organization which has secured a limited occasion permit provided such arrangement is disclosed in the limited occasion permit application and is approved by the Department of Human Resources. If the bingo game is not conducted on premises donated or loaned by a licensed exempt organization, it shall be conducted only on the premises described in subsection (d) of this section, pursuant to the terms of that subsection.
(6)	Except as stated above, all provisions of this Part shall apply to any exempt organization operating a bingo game under this provision.
(i)	The bingo license of any organization which has been determined by the Department of Human Resources to be in violation of any of the provisions of this Article may be revoked or suspended by the Department.  If a license is revoked by the Department, the licensee shall not be eligible to reapply for a bingo license for a period of one year.  A license may be suspended by the Department for up to 12 months if the Department determines that the license holder is in violation of any of the provisions of this Article."
Sec. 2.  This act is effective upon ratification.