Introduced Version
House Bill 2759 History
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Key: Green = existing Code. Red = new code to be enacted
H. B. 2759
(By Delegates Perry, Shaver,
Tucker and Paxton)
[Introduced March 6, 2001; referred to the
Committee on the Judiciary then Finance.]
A BILL to amend and reenact section fifteen, article twenty,
chapter forty-seven of the code of West Virginia, one thousand
nine hundred thirty-one, as amended, relating to allowing
organizations who conduct bingo games to retain fifty percent
of the proceeds as operating expenses.
Be it enacted by the Legislature of West Virginia:
That section fifteen, article twenty, chapter forty-seven of
the code of West Virginia, one thousand nine hundred thirty-one, as
amended, be amended and reenacted to read as follows:
ARTICLE 20. CHARITABLE BINGO.
§47-20-15. Payment of reasonable expenses from proceeds; net
proceeds disbursement.
(a) The reasonable, necessary and actual expenses incurred in connection with the conduct of bingo occasions, not to exceed
twenty-five fifty percent of the gross proceeds collected during a
license period, may be paid out of the gross proceeds of the
conduct of bingo, including, but not limited to:
(1) Rent paid for the use of the premises: Provided, That a
copy of the rental agreement was filed with the bingo license
application and any changes to the rental agreement were filed
within ten days of being made: Provided, however, That in no event
may the rent paid for the use of any premises exceed the fair
market value of rent for the premises;
(2) The cost of custodial services;
(3) The cost to the licensee organization for equipment and
supplies used to conduct the bingo occasion;
(4) The cost to the licensee organization for advertising the
bingo occasion;
(5) The cost of hiring security personnel, licensed pursuant
to the provisions of article eighteen, chapter thirty of this code;
and
(6) The cost of providing child care services to the raffle
patrons: Provided, That any proceeds received from the provision
of child care services shall be handled the same as raffle proceeds.
(b) The actual cost to the licensee for prizes, not to exceed
the amounts as specified in section ten of this article, may be
paid out of the gross proceeds of the conduct of bingo.
(c) The cost of any refreshments, souvenirs or any other item
sold or otherwise provided through any concession to the patrons
may not be paid for out of the gross proceeds from the bingo
occasion. The licensee shall expend all net bingo proceeds and any
interest earned on the proceeds for the charitable or public
service purposes stated in the application within one year after
the expiration of the license under which the bingo occasions were
conducted. A licensee which does not qualify as a qualified
recipient organization may apply to the commissioner at the time it
applies for a bingo license or as provided in subsection (e) of
this section for permission to apply any or all of its net proceeds
to directly support a charitable or public service activity or
endeavor which it sponsors.
(d) No gross proceeds from any bingo operation may be devoted
or in any manner used by any licensee or qualified recipient
organization for the construction or acquisition of real or
personal property except that which is used exclusively for one or more charitable or public service purposes or as provided in
subdivision (3), subsection (a) of this section.
(e) The tax commissioner has the authority to disapprove any
contract for sale of goods or services to any charitable bingo
licensee for use in or with relation to any charitable bingo
operation or occasion, or any lease of real or tangible personal
property to any charitable bingo licensee for use in or with
relation to any charitable bingo operation or occasion, if the
contract or lease is unreasonable or not representative of fair
market value. Contracts or leases which are disapproved shall be
considered to be in contravention of this article, and are void.
Any attempt by any charitable bingo licensee to engage in
transactions under the terms of any lease or contract that has been
disapproved is grounds for revocation or suspension of the
charitable bingo license and for refusal by the tax commissioner to
renew the charitable bingo license.
(f) If a property owner or lessee, including his or her agent,
has entered into a rental contract to hold super bingo occasions on
his or her premises, the premises shall be rented, for super bingo
occasions, to not more than four super bingo licensees during any
period of four consecutive calendar weeks: Provided, That each of the charitable or public service organizations desiring to hold a
super bingo occasion must possess its own super bingo license.
Subject to this limitation, the premises may be used for super
bingo occasions during two consecutive days during a conventional
weekend. For purposes of this subsection, the term "conventional
weekend" means Saturday and Sunday: Provided, however, That the
super bingo occasions may occur at the same facility no more often
than alternating weekends during a calendar month.
(g) Any licensee which, in good faith, finds itself unable to
comply with the requirements of this provision shall apply to the
commissioner for permission to expend its net proceeds for one or
more charitable or public service purposes other than that stated
in its license application or for permission to expend its net
proceeds later than the one-year time period specified in this
section. The application shall be on a form furnished by the
commissioner and shall include the particulars of the requested
changes and the reasons for the changes. The application shall be
filed no later than sixty days before the end of the one-year
period specified in this section. In the case of an application to
extend the time in which the net proceeds are to be expended for a
charitable or public service purpose, the licensee shall file such periodic reports with the commissioner as the commissioner directs
until the proceeds are expended.
NOTE: The purpose of this bill is to
allow organizations who
conduct bingo games to retain fifty percent of the proceeds as
operating expenses.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.