§ 25-3. Bingo regulation.

(a)

Title. This section shall be known and may be cited as the "Orange County Bingo Ordinance."

(b)

Legislative findings. Based on evidence and testimony presented at the public hearing before the board of county commissioners on August 6, 1996, the evidence provided by the Metropolitan Bureau of Investigation of the Ninth Judicial Circuit in Florida, the "Report of the Twelfth Statewide Grand Jury Regarding the Operation of Commercial Bingo Halls in the State of Florida," and the findings incorporated in Hernando County Ordinance No. 93-18, section 1, Pasco County Ordinance No. 92-15, section 1, and Lake County Ordinance No. 94-4, section 1, the board of county commissioners finds and determines that:

(1)

F.S. § 849.0931, was enacted by the state legislature as an exception to the gambling and lottery laws. It authorizes charitable, non-profit and veterans' organizations engaged in charitable, civic, community, benevolent, religious or scholastic works and other similar activities to conduct bingo games provided the entire proceeds derived from the conduct of the bingo games, less actual business expenses for articles designed for and essential to the operation, conduct, and playing of bingo, are donated to such endeavors.

(2)

F.S. § 849.0931(2)(a), prohibits the net proceeds from bingo games from being used for any purpose other than charitable, non-profit and veterans' organizations engaged in charitable, civic, community, benevolent, religious or scholastic works and other similar activities.

(3)

F.S. § 849.0931(2)(b) provides that it is the express intent of the legislature that no charitable, non-profit or veterans' organization serves as a sponsor of a bingo game conducted by another, but such organization may only be directly involved in the conduct of such a game as provided in the statute.

(4)

F.S. § 849.0931 contains various other provisions intended to assure that only the groups, associations, and organizations authorized by the statute are involved in the operating of, or receive and/or distribute the proceeds of bingo games, but the present law is inadequate to fully achieve this objective because of a lack of regulatory authority as suggested by the Twelfth Statewide Grand Jury.

(5)

F.S. § 849.0931 contains various other provisions intended to assure that the primary benefactor of the authorized bingo games is actually the charitable, non-profit and veterans' organizations, and not private persons, but the present law has proved too inadequate to fully achieve that objective.

(6)

Investigations by law enforcement agencies in the county and other state jurisdictions have demonstrated that a high degree of commercialization existed in bingo halls where bingo games were conducted seven (7) days a week and that the bingo halls operated, in effect, as mini-casinos where only a small amount of the proceeds of the bingo games were eventually distributed for charitable purposes. Those investigations revealed that in those commercial bingo halls the particular charitable organizations whose names were used as the alleged operators of the bingo games did not actually control the conduct of their own bingo games in an "arms-length" relationship with the commercial operator. It was discovered, rather, that the commercial operator usually controlled the games through paid employees that were "enrolled" in the charity whose names were being used as supposed "volunteers."

(7)

Law enforcement investigations in the county and other jurisdictions revealed that the commercial operators controlled all the monies and proceeds of the bingo games and only forwarded very small percentages of the proceeds to the charitable organizations. Repeated instances were uncovered of monies and proceeds from bingo games being retained or used illegally or being diverted from the authorized charitable operator deducting extremely high rental rates from the proceeds to the charitable organizations or the commercial operator deducting a variety of "expenses" from the charitable proceeds for services allegedly performed by the commercial operator.

(8)

The arrangements between and among lessors of places where bingo games are conducted, actual or putative non-profit organizations whose names are used, and concessionaires at such games have become commercialized to an extent not contemplated or intended by the legislature. This defeats the legislative goal of reserving bingo as an activity permitted only for recreation and charitable fund raising rather than as a private venture for profit.

(9)

The commercialization of bingo and the resulting diversion of bingo proceeds to private persons and commercial operators results in a reduction of bingo proceeds which are actually donated to benefit the charitable, civic, community, benevolent, religious or scholastic works and other similar activities in the community.

(10)

The Twelfth Statewide Grand Jury reported in October of 1995 after investigating the bingo industry that effective enforcement of the laws regarding bingo games can only be brought about by local regulation of these games to ensure that the proceeds from the games pass into the hands of the groups, organizations or associations identified in F.S. § 849.0931, in the manner and for the purposes set forth in the statute. The Twelfth Statewide Grand Jury has recommended that use of any location for bingo be limited to two (2) days a week and that all bingo proceeds be deposited in separate accounts from which all prizes and expenses are paid.

(11)

F.S. § 849.09331 does not contain any language preempting a local government from adopting regulations relating to the conduct of bingo games.

(12)

Orange County, a charter county, possesses the power pursuant to Florida Constitution, Article VIII, Section 1g and F.S. § 125.01(1), to exercise its police power to promote the health, safety and welfare of the people of the county.

(13)

The county has a large population, some of whom play bingo, and many nonprofit, charitable and veterans organizations which rely on legally obtained bingo proceeds.

(14)

A need exists in the county to provide for local regulation of bingo.

(c)

Legislative intent.

(1)

It is the intent of the board of county commissioners that all phases and aspects of the regulation of bingo be closely controlled and the law pertaining thereto be rigidly and strictly enforced, and that the diversion of proceeds from bingo games from the purposes authorized by F.S. § 849.0931 be eliminated.

(2)

It is the intent of the board that this section be supplementary to F.S. § 849.0931, as it may be amended, and that any conflict be resolved in favor of the statute.

(3)

It is the intent of the board that any violation of F.S. § 849.0931 result in the penalties as set forth in F.S. § 849.0931(13), as it may be amended, but not exclusively.

(d)

Applicability. This section shall apply to the unincorporated areas of Orange County, and to the incorporated areas of Orange County to the extent consistent with section 704 of the County Charter.

(e)

Definitions. In this section, the following terms, phrases, words and their derivations shall have the meanings given herein, unless the context otherwise requires:

(1)

Bingo game. This term shall be defined as set forth in F.S. § 849.0931(1)(a), as it may be amended or renumbered.

(2)

Person. This term shall be defined as an individual, partnership, general partner of a partnership, corporation, officer or director of a corporation, subchapter S corporation, officer or director of a subchapter S corporation, limited partnership, general partner of a limited partnership, organization, chief operating officer of an organization, trust, trustee of a trust, foundation, trustee of a foundation, group, chief operating officer of a group, association, chief operating officer of an association, society, chief operating officer of a society, or any combination thereof.

(3)

Structure. This term shall be defined as set forth in F.S. § 380.031, as it may be amended or renumbered.

(f)

Limitations on bingo games. A structure may be used for the conduct of bingo games not more than two (2) days per week. This prohibition shall not extend to or affect the leasing, rental or use of a structure for any purpose other than the conduct of bingo games.

(g)

Prohibited conduct. No person shall lease, sublease, assign or rent all or part of any structure for the conduct of bingo games, or conduct, or permit the conduct of, bingo games in a structure, more than two (2) days per any seven-day period.

(h)

Penalties. Whoever violates subsection (g) may be punished as provided in section 1-9 of this Code.

(i)

Enforcement. Responsibility for enforcement of this section is vested in the county sheriff's office and the Metropolitan Bureau of Investigation.

(j)

Injunctive relief. It is hereby found and declared that a violation of the provisions of this section constitutes an irreparable injury to the people of the county. Accordingly, the county may additionally or alternatively institute a civil action in a court of competent jurisdiction to seek injunctive relief to enforce compliance with this section and to enjoin any violation of this section to prevent injury to the health, safety and general welfare caused or threatened by any violation.

(k)

Effective date. This section shall become effective on August 15, 1996.

(Ord. No. 96-22, §§ 1—11, 8-6-96)