§ 10-65. Lessors.

(a)

License required. It shall be unlawful for a person to lease, sublease, assign or rent any premises for the conduct of bingo or instant bingo or agree to the use of any premises for the conduct of bingo or instant bingo, unless that person shall have a current and valid class B license under this article, which license shall not be under suspension or permanently or conditionally revoked. The holder of a class B license may not lease or otherwise permit his premises to be used for the conduct of bingo more than two times in one week. This requirement for a class B license shall not apply when a licensed organization holding a class A license is the owner of the premises upon which it conducts bingo or instant bingo games only and solely for its own benefit.

(b)

Interest in bingo prohibited. No lessor and no officer, director, stockholder, employee or any other person having an interest in the lessor shall conduct, assist or participate in the conduct of bingo or instant bingo or render any service or offer, distribute or give anything of value to anyone conducting, assisting or participating in the conduct of bingo or instant bingo or to any member of a licensed charitable organization, authorized organization or associational group or organization.

(c)

Separate bank account. The entire proceeds derived by a lessor from the leasing of premises upon which bingo or instant bingo is conducted shall be deposited in a checking account in a bank located within the county, which shall be maintained separate and apart from all other amounts of the lessor and shall not be used for the deposit of funds received from any other activity than the leasing of premises for the conduct of bingo or instant bingo. If the lessor is other than an individual, two of the required principal officers or partners shall be required to sign all checks, drafts and other instruments withdrawing or transferring funds from the checking account, without exception. This subsection shall not preclude the periodic withdrawal or transfer of the net proceeds, after payment of the actual business expenses related to the premises from which the funds were derived, for the use of the lessor.

(d)

Maintenance of records. A lessor shall maintain adequate records according to generally accepted accounting practices and in a form prescribed by the sheriff, which records shall show all gross proceeds, actual business expenses and the entire or net proceeds from leases or rentals of premises for the conduct of bingo and/or instant bingo and which shall also include copies of the executed leases or agreements, if any, for such premises. These records shall be made available on demand for immediate inspection by the sheriff or his authorized representative at reasonable times during normal business hours. All records shall be maintained by the lessor for a minimum of three years or for such longer period as may be required by the sheriff.

(e)

Financial statement; other reports. Annually or more frequently if the sheriff requires, each lessor shall file with the sheriff a financial statement, in the form prescribed by the sheriff, containing the sources and the amount of the gross revenue derived by the lessor from the leasing of premises for the conduct of bingo and/or instant bingo during the 12-month or other period for which the statement is being filed and stating the actual business expenses related to the premises. The financial statement shall be certified as correct by a principal officer, one of the partners or one who controls the lessor, but need not be audited, provided that this shall not prohibit a lessor from filing an audited financial statement or the sheriff from requiring the filing of an audited financial statement whenever he determines that an audited financial statement is necessary to enable him to ascertain whether the lessor is obeying the law and the rules promulgated under the authority of section 10-54. The sheriff may also require a lessor to submit other reports, on a periodic basis or upon demand by the sheriff, concerning the activities connected with or related to the leasing of premises for the conduct of bingo or instant bingo, which reports shall be certified as prescribed for financial statements, but need not be audited; however, as in the case of financial statements, the sheriff shall have the right to require such reports to be audited.

(Code 1970, § 16½-102; Ord. No. 92-15, § 22, 10-27-92; Ord. No. 08-40, § 1, 9-23-08)