18.2-340.24 - Eligibility for permit; exceptions; where valid. - Virginia Statutes

§ 18.2-340.24. Eligibility for permit; exceptions; where valid.

A. To be eligible for a permit to conduct charitable gaming, an organizationshall:

1. Have been in existence and met on a regular basis in the Commonwealth fora 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 orchapter of a national or international fraternal order or of a national orinternational civic organization which is exempt under § 501(c) of the UnitedStates Internal Revenue Code and which has a lodge or chapter holding acharitable gaming permit issued under the provisions of this article anywherewithin the Commonwealth; (ii) to booster clubs which have been operating forless than three years and which have been established solely to raise fundsfor school-sponsored activities in public schools or private schoolsaccredited pursuant to § 22.1-19; (iii) to recently established volunteerfire and rescue companies or departments, after county, city or townapproval; or (iv) to an organization which relocates its meeting place on apermanent basis from one jurisdiction to another, complies with therequirements of subdivision 2 of this section, and was the holder of a validpermit at the time of its relocation.

2. Be operating currently and have always been operated as a nonprofitorganization.

3. Have at least 50% of its membership consist of residents of theCommonwealth; however, if an organization (i) does not consist of bona fidemembers and (ii) is exempt under § 501(c)(3) of the United States InternalRevenue Code, the Board shall exempt such organizations from the requirementsof this subdivision.

B. Any organization whose gross receipts from all charitable gaming exceedsor can be expected to exceed $40,000 in any calendar year shall have beengranted tax-exempt status pursuant to § 501(c) of the United States InternalRevenue Code. At the same time tax-exempt status is sought from the InternalRevenue Service, the same documentation may be filed with the Department foran interim certification of tax-exempt status. If such documentation isfiled, the Department may, after reviewing such documentation it deemsnecessary, issue its determination of tax-exempt status within 60 days ofreceipt of such documentation. The Department shall charge a fee of $500 forsuch determination. This interim certification of tax-exempt status shall bevalid until the Internal Revenue Service issues its determination oftax-exempt status, or for 18 months, whichever is earlier.

C. A permit shall be valid only for the locations, dates, and timesdesignated in the permit.

(1995, c. 837; 1996, c. 919; 2003, c. 884; 2006, c. 644; 2009, c. 121.)