§ 11-19-31 - Registration of charitable organizations.
SECTION 11-19-31
§ 11-19-31 Registration of charitableorganizations. – (a) No charitable organization which intends to conduct a permitted game ofchance within the state of Rhode Island shall conduct a game unless it shallfile a registration statement with the department upon prescribed forms andreceives a certificate of approval.
(b) In addition, in order to obtain a renewal ofregistration, charitable organizations shall file the statements required bythis chapter prior to June 1st of each year.
(c) It shall be the duty of the president, chair, orprincipal officer of a charitable organization to file the statements requiredunder this chapter. These statements shall be sworn to and shall contain thefollowing information:
(1) The name of the organization and the purpose for which itwas organized.
(2) The principal address of the organization and the addressof any offices in this state. If the organization does not maintain an office,the name and address of the person having custody of its financial records.
(3) The place where and the date when the organization waslegally established and the form of its organization.
(4) The names and addresses of the officers, directors,and/or trustees of the organization and the names and addresses of officers,staff, and/or members who receive a salary or any other form of compensation,the source of which is the proceeds from the permitted games of chance subjectto subdivision (9) of this subsection.
(5) A copy of the annual financial statement of theorganization audited by an independent public accountant licensed by the stateof Rhode Island for the organization's immediately preceding fiscal year, or acopy of a financial statement covering, in a consolidated report, completeinformation as to all the preceding year's fund-raising from theabove-mentioned games showing kind and amount of funds raised, costs andexpenses incidental to it, and allocation or disbursements of funds raised.
(6) The general purpose or purposes for which the proceedsfrom the game shall be used.
(7) The name or names under which it intends to conduct thegame.
(8) The names of the individuals or officers of theorganization who will have final responsibility for the custody of the proceedsfrom the game.
(9) A listing of the names, addresses and the compensation ofall individuals, directors, officers, agents, servants, and/or employees of theorganization who receive compensation, commission, or other remuneration,directly or indirectly, from the gross receipts of such games in excess ofseven hundred fifty dollars ($750) annually.
(10) The names of the individuals or officers of theorganization responsible for the final distribution of the proceeds. Thedirector or the director's designee shall examine each initial application ofcharitable organizations for the right to conduct the above-mentioned games andeach renewal application of charitable organizations for the right to conductsuch games and if found to be in conformity with the requirements of thischapter and all relevant rules and regulations it shall be approved forregistration.
(d) The registration forms and any other documents prescribedby the department shall be signed by an authorized officer, an independentpublic accountant, and by the chief fiscal officer of the charitableorganization and shall be verified under oath.
(e) The department shall make or cause to be made anyinvestigation of any applicant that it shall deem necessary. As a result of itsinvestigation and action, the department shall certify to the local policedepartment or local licensing authority its approval or disapproval of theapplication. No applicant shall be approved if one or more of the followingfacts is found to exist:
(1) That one or more of the statements in the application arenot true;
(2) That the applicant is or has engaged in a fraudulenttransaction or enterprise;
(3) That the game would be a fraud upon the public;
(4) That game expenses during any of the three (3) yearsimmediately preceding the date of application have exceeded twenty-five percent(25%) of the total gross money or gross receipts raised or received by reasonof the games. In the event special facts or circumstances are presented showingthat expenses higher than twenty-five percent (25%) were not unreasonable, thedepartment, pursuant to rule and regulation, has the discretion to allow thehigher expenses;
(5) That the expected cost of conducting the games for thespecific year for which the application will exceed twenty-five percent (25%)of the total gross money or receipts to be raised or received by reason of thegames; or
(6) That the activities to be financed will be incompatiblewith the health, safety, or welfare of the state of Rhode Island.