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, - Virginia Statutes

§ 18.2-340.34. Suppliers of charitable gaming supplies; manufacturers ofelectronic games of chance systems; permit; qualification; suspension,revocation or refusal to renew certificate; maintenance, production, andrelease of records.

A. No person shall offer to sell, sell or otherwise provide charitable gamingsupplies to any qualified organization and no manufacturer shall distributeelectronic games of chance systems for charitable gaming in the Commonwealthunless and until such person has made application for and has been issued apermit by the Department. An application for permit shall be made on formsprescribed by the Department and shall be accompanied by a fee in the amountof $1,000. Each permit shall remain valid for a period of one year from thedate of issuance. Application for renewal of a permit shall be accompanied bya fee in the amount of $1,000 and shall be made on forms prescribed by theDepartment.

B. The Board shall have authority to prescribe by regulation reasonablecriteria consistent with the provisions of this article for the registrationof suppliers and manufacturers of electronic games of chance systems forcharitable gaming. The Department may refuse to issue a permit to anysupplier or manufacturer who has, or which has any officer, director,partner, or owner who has (i) been convicted of or pleaded nolo contendere toa felony in any state or federal court or has been convicted of any offensewhich, if committed in the Commonwealth, would be a felony; (ii) beenconvicted of or pleaded nolo contendere to a crime involving gambling; (iii)had any license, permit, certificate or other authority related to activitiesdefined as charitable gaming in the Commonwealth suspended or revoked in theCommonwealth or in any other jurisdiction; (iv) failed to file or has beendelinquent in excess of one year in the filing of any tax returns or thepayment of any taxes due the Commonwealth; or (v) failed to establish aregistered office or registered agent in the Commonwealth if so required by §13.1-634 or 13.1-763.

C. The Department may suspend, revoke or refuse to renew the permit of anysupplier or manufacturer for any conduct described in subsection B or for anyviolation of this article or regulation of the Board. Before taking any suchaction, the Department shall give the supplier or manufacturer a writtenstatement of the grounds upon which it proposes to take such action and anopportunity to be heard. Every hearing in a contested case shall be conductedin accordance with the Administrative Process Act (§ 2.2-4000 et seq.).

D. Each supplier shall document each sale of charitable gaming supplies,including electronic games of chance systems, and other items incidental tothe conduct of charitable gaming, such as markers, wands or tape, to aqualified organization on an invoice which clearly shows (i) the name andaddress of the qualified organization to which such supplies or items weresold; (ii) the date of the sale; (iii) the name or form and serial number ofeach deal of instant bingo cards and pull-tab raffle cards, the quantity ofdeals 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 serialnumber for each series of uncollated bingo paper, and the cut, color andquantity of bingo paper sold; and (v) any other information with respect tocharitable gaming supplies, including electronic games of chance systems, orother items incidental to the conduct of charitable gaming as the Board mayprescribe by regulation. A legible copy of the invoice shall accompany thecharitable gaming supplies when delivered to the qualified organization.

Each manufacturer of electronic games of chance systems shall document eachdistribution of such systems to a qualified organization or supplier on aninvoice which clearly shows (i) the name and address of the qualifiedorganization or supplier to which such systems were distributed; (ii) thedate of distribution; (iii) the serial number of each such system; and (iv)any other information with respect to electronic games of chance systems asthe Board may prescribe by regulation. A legible copy of the invoice shallaccompany the electronic games of chance systems when delivered to thequalified organization or supplier.

E. Each supplier and manufacturer shall maintain a legible copy of eachinvoice required by subsection D for a period of three years from the date ofsale. Each supplier and manufacturer shall make such documents immediatelyavailable for inspection and copying to any agent or employee of theDepartment upon request made during normal business hours. This subsectionshall not limit the right of the Department to require the production of anyother documents in the possession of the supplier or manufacturer whichrelate to its transactions with qualified organizations. All documents andother information of a proprietary nature furnished to the Department inaccordance with this subsection shall not be a matter of public record andshall be exempt from disclosure under the provisions of the Freedom ofInformation Act (§ 2.2-3700 et seq.).

(1995, c. 837; 1996, c. 919; 1997, cc. 777, 838; 1999, c. 534; 2003, c. 884;2006, c. 644; 2007, c. 264.)