§ 14-46. Legislative findings.

Based on evidence and testimony presented at the public hearing before the board of county commissioners on July 29, 1996, the evidence provided by the Metropolitan Bureau of Investigation of the Ninth Judicial Circuit in Florida, and the findings incorporated in Hernando County Ordinance No. 93-18, Section 1, and Pasco County Ordinance No. 92-15, Section 1, and the Lake County Ordinance, the board of county commissioners finds and determines that:

(1)

Section 849.0931, Florida Statutes, was enacted by the state legislature as an exception to the gambling and lottery laws. It authorizes charitable, non-profit and veteran's 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 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)

Section 849.0931(2)(a), Florida Statutes, 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)

Section 849.0931(2)(b), Florida Statutes, provides that it is the express intent of the legislature that no charitable, non-profit or veterans' organization serve 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)

Section 849.0931, Florida Statutes, 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)

Section 849.0931, Florida Statutes 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 to inadequate to fully achieve that objective.

(6)

Investigations by law enforcement agencies in Osceola County and other Florida 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 Osceola County and other jurisdictions revealed that the commercial operators controlled all 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 Section 849.0931, Florida Statutes, 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)

Section 849.0931, Florida Statutes, does not contain any language preempting a local government from adopting regulations relating to the conduct of bingo games.

(12)

Osceola County, a Charter County, possesses the power pursuant to Article VIII, Section 1g, Florida Constitution, and Section 125.01(1), Florida Statutes, to exercise its police power to promote the health, safety and welfare of the people of Osceola County.

(13)

Osceola County has a large population, some of whom play bingo, and many non-profit, charitable and veterans organizations which rely on legally obtained bingo proceeds.

(14)

A need exists in Osceola County to provide for local regulation of bingo.

(Ord. No. 96-12, § 2, 7-29-96)