| (a) Definition. The following word or term, when used
in this chapter, shall have the following meaning, unless the context
clearly indicates otherwise: Detrimental charitable purpose waiver
(waiver)--A determination by the Commission authorized under §2001.451(k)
of the Act to exempt a licensed authorized organization from the requirements
of §2001.451 or §2001.457 of the Act because compliance
with the requirement(s) of these sections is detrimental to the organization's
existing or planned charitable purposes.
(b) Detrimental Charitable Purpose Waiver.
(1) A licensed authorized organization may submit to
the Commission an Application for Waiver to be exempt from the requirements
that:
(A) bingo operations must result in net proceeds over
the organization's license period; or
(B) a licensed authorized organization must disburse
the required amount of net proceeds for charitable purposes for a
specific calendar quarter.
(2) An application for a waiver must include the following:
(A) the reason for the request;
(B) an explanation of how compliance with the requirement
is detrimental to the organization's existing or planned charitable
purposes;
(C) the intended purpose of future charitable distributions;
(D) the specific calendar quarter or license year for
which the waiver is being requested, as applicable; and
(E) either of the following:
(i) a credible business plan; or
(ii) if the request is due to force majeure as defined
in §402.453 of this subchapter, documentation from outside sources
supporting force majeure. Examples of acceptable documentation include
newspaper articles, copies of local ordinance changes, police or fire
department reports, notification of road construction, or photographs.
(3) A Credible Business Plan may include the following:
(A) the stated project goal of the organization as
it applies to the application for waiver;
(B) a detailed description of the charitable activities
of the organization for the four quarters immediately preceding the
application;
(C) a detailed description of the charitable activities
of the proposed charitable activities for the time period of the request;
(D) a detailed explanation of the reason for the waiver
request; and
(E) a detailed strategy of how the organization plans
to correct its financial difficulties to ensure the bingo operations
result in positive net proceeds.
(c) The Commission may request additional information
or documentation as needed to consider the application for a waiver.
(d) The licensed authorized organization or unit must
provide all information or documentation requested by the Commission
within 21 calendar days of notice from the Commission. Failure to
provide information or documentation requested by the Commission within
the time frame indicated may result in disapproval of the application.
(e) Criteria for Approval of Waiver Applications. The
Commission may consider the following in the approval of waiver applications:
(1) the credible business plan or force majeure that
necessitates the organization's not meeting the requirements of §2001.451
or §2001.457 of the Act;
(2) the amount of net proceeds from licensed authorized
organization's or unit's bingo operations during the past two years;
and
(3) the length of time the organization has conducted
bingo and two year compliance history.
(f) Within 21 calendar days of receipt of the written
application for waiver and all required attachments and documentation,
the Commission will notify the organization or unit in writing of
its decision to approve or disapprove the application for a waiver.
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