In this subtitle, “county commissioners” means the Board of County Commissioners of Washington County.

This subtitle applies only in Washington County.

Except as otherwise provided in this subtitle, Subtitle 2 of this title applies in Washington County.

A volunteer rescue company shall be treated as a volunteer fire company for purposes of Subtitle 2 of this title. A person may not operate a chance book, paddle wheel, tip jar, wheel of fortune, or other gaming device, other than a bingo game, on premises that are owned by, leased to, or used as a place of business by a person that conducts a bingo game for purposes of making a profit. Subtitle 2 of this title does not apply to the operation of tip jars. Tip jars are regulated under Part III of this subtitle.

Bingo may be conducted in accordance with Part II of this subtitle.

Before a person may conduct bingo, the person shall obtain a bingo permit from the county commissioners. Before issuing a bingo permit, the county commissioners shall ascertain: the purpose of the bingo game; and the intended use of receipts from bingo. The county commissioners may not issue a new bingo permit for bingo that is to be conducted for profit.

This section does not apply to a nonprofit organization seeking a bingo permit. The county commissioners may charge an annual fee not exceeding $5,000 for a bingo permit.

A person may not give or offer in a single bingo game: a money prize exceeding $1,000; a merchandise prize exceeding a value of $1,000; or a prize of money and merchandise with a combined value exceeding $1,000.

A person may not conduct bingo in violation of Part II of this subtitle. A person who violates this section is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 1 year or a fine not exceeding $1,000 or both. Each day that a violation occurs is a separate violation.

In Part III of this subtitle the following words have the meanings indicated. “Agency” means the county agency that the county commissioners designate to administer Part III of this subtitle. “Fund” means the Washington County Gaming Fund. “Gaming commission” means the Washington County Gaming Commission. “Tip jar” means: a gaming device from which for consideration a number, series of numbers, or other symbol is obtained by selection of a sealed piece of paper that may entitle the purchaser to a payoff in money or otherwise, either on receipt or as the result of a subsequent announcement of a winning number, series of numbers, or other symbol; or any other device commonly recognized as a tip jar. “Tip jar license” means a license that the agency issues to operate a tip jar. “Tip jar packet” means a package of numbers, series of numbers, or symbols on folded or sealed pieces of paper that is designed to be sold through a tip jar and that is sufficient for a single tip jar game. “Wholesaler’s license” means a license that the agency issues to sell or wholesale tip jar packets for profit.

There is a Washington County Gaming Commission.

The gaming commission consists of seven members. Of the seven members of the gaming commission: three shall be appointed by the county commissioners; one shall be appointed by the State Senators whose districts are in or include part of the county; one shall be appointed by the chairperson of the county delegation to the House of Delegates, with the concurrence of that delegation; one shall be from the Washington County Clubs Association, appointed by the county Senate and House delegations; and one shall be a representative of the alcoholic beverages, restaurant, and tavern industries in the county, appointed by the county Senate and House delegations. Each member of the gaming commission shall be a resident of the county. A member appointed to the gaming commission under subsection (a)(2)(i), (ii), or (iii) of this section may not: hold a tip jar license or wholesaler’s license or be employed by a person who holds a tip jar license or wholesaler’s license; or hold an ownership interest in or receive a direct benefit from a person who holds a tip jar license or wholesaler’s license. The term of a member of the gaming commission is 2 years and begins on March 1 or October 1, according to the staggered schedule required by the terms provided for members of the gaming commission on October 1, 2002. At the end of a term, a member continues to serve until a successor is appointed. A member who is appointed after a term has begun serves only for the rest of the term and until a successor is appointed. A member who completes two full terms on the gaming commission may not be reappointed within the 5 years after the end of the second term. The gaming commission shall adopt conflict of interest regulations applicable to members of the gaming commission.

Each year the gaming commission shall elect a chairperson from among its members. The manner of election of a chairperson shall be as the gaming commission determines.

A member of the gaming commission: may not receive compensation; but is entitled to reimbursement for expenses, in accordance with a policy of the county commissioners. The county commissioners shall assign appropriate professional staff to the gaming commission for the gaming commission’s meetings.

The county commissioners shall adopt regulations to carry out Part III of this subtitle. The agency may recommend to the county commissioners regulations or guidelines concerning the administration of Part III of this subtitle. The county commissioners shall make available for public inspection: audit reports completed under § 13-2432(a) of this subtitle; and in accordance with regulations of the county commissioners, tip jar reports submitted under § 13-2424 of this subtitle. By regulation, the county commissioners may require: an applicant for a tip jar license or wholesaler’s license or an individual involved in the operation of a tip jar to be fingerprinted for purposes of a criminal history records check; and the agency to obtain a criminal history records check in accordance with subsection (d) of this section. If the county commissioners direct the agency to obtain criminal history records checks, the agency shall apply to the Criminal Justice Information System Central Repository of the Department of Public Safety and Correctional Services for a State criminal history records check for each: applicant for a tip jar license or wholesaler’s license; and individual involved in the operation of a tip jar. As part of the application for a criminal history records check, the agency shall submit to the Criminal Justice Information System Central Repository: a complete set of the applicant’s or individual’s legible fingerprints on forms approved by the director of the Criminal Justice Information System Central Repository; and the fee authorized under § 10-221(b)(7) of the Criminal Procedure Article. The Criminal Justice Information System Central Repository shall provide the requested information in accordance with Title 10, Subtitle 2 of the Criminal Procedure Article.

A person shall be licensed by the agency before operating a tip jar. To be eligible for a license to operate a tip jar, an applicant shall be a: religious organization; civic organization; fraternal organization; veterans’ organization; bona fide charitable organization; sportsmen’s association that is tax exempt under § 501(c) of the Internal Revenue Code and that is approved by the county commissioners; holder of a Class A beer, wine and liquor license; restaurant with an alcoholic beverages license; tavern with an alcoholic beverages license; volunteer fire company; or volunteer rescue company. A person may not receive a tip jar license if the person: owes taxes to the State, the county, or a municipal corporation in the county; unless authorized under paragraph (2) of this subsection, holds a wholesaler’s license; or has been convicted of a: felony; or misdemeanor involving a violation of a gambling or gaming law of the State. A volunteer fire company or volunteer rescue company may hold both a tip jar license and wholesaler’s license.

An applicant for a tip jar license shall: submit to the agency an application on the form that the agency provides; and subject to paragraph (2) of this subsection, pay an annual fee of $250 to the county. The county commissioners may waive or reduce the annual fee for an organization that qualifies for a license under § 13-2420(b)(1) through (6), (10), or (11) of this subtitle. The county shall credit license fees collected under subsection (a)(1)(ii) of this section to the general fund of the county.

The agency may issue a tip jar license to each applicant that meets the requirements of Part III of this subtitle.

Unless otherwise authorized by the county commissioners, a tip jar licensee may operate a tip jar game only: during normal business hours; and on the tip jar licensee’s premises. A tip jar licensee may award prizes in money or merchandise for a tip jar game. The agency periodically shall send an agent to inspect the premises of each tip jar licensee to ensure compliance with Part III of this subtitle.

At least three times a year, a tip jar licensee shall submit to the county commissioners a report concerning the tip jars the person operates. Each report shall: identify gaming stickers used; indicate the number of tip jars in operation; indicate the number of tip jar packets purchased; and include any additional information that the county commissioners require. This subsection only applies to a person who qualifies for a tip jar license under § 13-2420(b)(7), (8), or (9) of this subtitle. In accordance with regulations of the county commissioners, a person subject to this subsection shall include in each report an accounting of receipts and disbursements made in connection with tip jars for the reporting period. Each report shall include a written statement, signed by the individual making the report, in which the individual affirms under the penalties of Part III of this subtitle and under the penalty of perjury that the contents of the report are true to the best of the individual’s knowledge, information, and belief. This subsection only applies to an organization that qualifies for a tip jar license under § 13-2420(b)(1) through (6) of this subtitle. Each report for an organization that is subject to this subsection: shall be filed by an officer of the organization; and in accordance with regulations of the county commissioners, shall include for the reporting period an accounting of: all receipts in connection with the operation of a tip jar; and the disbursements made in compliance with § 13-2435(e) of this subtitle. In filing a report under this subsection, the officer of the organization may not: fraudulently use a false or fictitious name; knowingly conceal a material fact; knowingly make a false statement; or otherwise commit fraud. A person who violates paragraph (3) of this subsection is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 90 days or a fine not exceeding $1,000 or both.

A tip jar license expires on the first July 1 after its effective date. A tip jar license is not transferable.

By regulation, the county commissioners may establish a temporary tip jar license for a nonprofit organization that desires to raise money solely for an athletic, charitable, or educational purpose that: meets the requirements for a charitable contribution under § 170(c) of the Internal Revenue Code; and does not benefit a: law enforcement agency; law enforcement fraternal organization; political club, political committee, or political party; or unit of the State government or of a political subdivision of the State other than: an ambulance, fire fighting, or rescue squad; or a primary or secondary school or an institution of higher education. If the county commissioners establish a temporary tip jar license, by regulation, the county commissioners shall: set the fee for a temporary tip jar license; set the term of a temporary tip jar license; prescribe which provisions of Part III of this subtitle apply to the issuance of a temporary tip jar license and the operation of a tip jar under a temporary tip jar license; and establish any additional requirements that the county commissioners consider appropriate concerning operation of a tip jar under a temporary tip jar license. An organization that receives a temporary tip jar license is subject to audit by the gaming commission. An individual involved in the operation of a tip jar under a temporary tip jar license may not personally benefit financially from the operation of the tip jar. If an organization that has operated a tip jar under a temporary tip jar license disbands, the organization shall transfer any remaining proceeds from the operation of a tip jar to the fund.

A person shall be licensed by the agency as a wholesaler before the person may sell a tip jar packet for profit. A person is eligible for a license under this section to sell or wholesale for profit a tip jar packet if the person: is of good moral character; except for a volunteer fire company or volunteer rescue company, has had an established place of business in the county for at least 3 years, as evidenced by the filing of personal property tax returns; in the case of a volunteer fire company or volunteer rescue company, has been established in the county for at least 1 year; does not owe taxes to the State, the county, or a municipal corporation in the county; unless authorized under paragraph (2) of this subsection, does not hold a tip jar license; has not been convicted of a: felony; or misdemeanor involving a violation of a gambling or gaming law of the State; except for a volunteer fire company or volunteer rescue company, does not hold a tip jar license or own or have in any way an interest in an entity that holds a tip jar license; except for a volunteer fire company or volunteer rescue company, is not an immediate family member of a person who holds a tip jar license or owns or has in any way an interest in an entity that holds a tip jar license; and is not a corporation, limited liability company, or unincorporated association in which at least one stockholder or member is a holder of a tip jar license. A volunteer fire company or volunteer rescue company may hold both a tip jar license and a wholesaler’s license.

An applicant for a wholesaler’s license shall: submit to the agency an application on the form that the agency provides; and subject to paragraph (2) of this subsection, pay to the agency an annual fee of $500. The county commissioners shall waive the annual fee for a volunteer fire company or a volunteer rescue company. The agency shall credit license fees collected under subsection (a)(1)(ii) of this section to the general fund of the county.

The agency may issue a wholesaler’s license to each applicant that meets the requirements of Part III of this subtitle.

A holder of a wholesaler’s license may not sell a tip jar packet to a person who does not have a tip jar license. Before selling a tip jar packet, a holder of a wholesaler’s license shall: obtain a gaming sticker from the agency; and affix the gaming sticker to the tip jar packet in the manner the county commissioners require.

A wholesaler’s license expires on the first July 1 after its effective date. A wholesaler’s license is not transferable.

The county commissioners may audit records relating to tip jars of a holder of a tip jar license or wholesaler’s license. In accordance with regulations of the county commissioners, a holder of a tip jar license or a wholesaler’s license shall make available to an auditor designated by the county commissioners the records that are required for an audit. A holder of a tip jar license or a wholesaler’s license shall retain for at least 5 years the records that are required by the county commissioners by regulation.

Subject to the hearing provisions of § 13-2434 of this subtitle, the agency may: deny a tip jar license or a wholesaler’s license to an applicant; or in accordance with § 13-2437 of this subtitle, discipline a holder of a tip jar license or wholesaler’s license. The agency shall deny a license to an applicant whose tip jar license or wholesaler’s license has been revoked. If the license of a holder of a tip jar license or wholesaler’s license is revoked for two separate civil violations under § 13-2437 of this subtitle or a criminal violation under § 13-2424(e) or § 13-2438(a) of this subtitle, the agency may deny a tip jar license or wholesaler’s license to: a corporate or limited liability entity applicant if 50% or more of the capital stock is owned by an individual, or an immediate family member of an individual, whose license was revoked; or a partnership applicant if the partnership includes as a partner an individual whose license was revoked.

Before the agency takes action under § 13-2433(a) of this subtitle, it shall give the person against whom the action is contemplated the opportunity for a hearing. If a hearing is requested, the county commissioners shall: give notice and hold the hearing in accordance with Title 10, Subtitle 2 of the State Government Article; or delegate to the Office of Administrative Hearings the authority to hold the hearing. If the county commissioners hold the hearing, the county commissioners may administer oaths in connection with the hearing. If the Office of Administrative Hearings holds the hearing: the administrative law judge shall state on the record the conclusions of law and findings of fact; and subject to paragraph (2) of this subsection, the determination of the administrative law judge is a final decision for purposes of judicial review in the same manner as a final decision in a contested case under § 10-222 of the State Government Article. In an appeal of a decision of the administrative law judge: if the civil penalty is less than $5,000, judicial review of disputed issues of fact shall be confined to the record; or if the civil penalty is $5,000 or more, judicial review shall be de novo. After notice, if the person against whom the action is contemplated: fails or refuses to appear, nevertheless the county commissioners may hear and determine the matter; or does not request a hearing, the county commissioners may impose a civil penalty without a hearing.

In this section, “gross profits” means the total proceeds from the operation of a tip jar less: the amount of money winnings or value of prizes distributed; and the cost of a gaming sticker. There is a Washington County Gaming Fund. The county commissioners shall establish: the method and time of deposits to the fund; and other procedures necessary to carry out subsections (d), (e), and (f) of this section. In accordance with a written agreement between the county commissioners and the gaming commission, the gaming commission may use money from the fund to reimburse the county commissioners for the costs to the county for administering Part III of this subtitle. The county commissioners may require the Washington County Volunteer Fire and Rescue Association to submit financial reports of the Association. The county commissioners may adopt regulations specifying the time frames for submission of the reports, but the regulations shall be limited in scope to the timing of submission of the reports only. The financial reports of the Washington County Volunteer Fire and Rescue Association may include an annual budget as approved under paragraph (4) of this subsection, budget reports, and related documentation that shows how money has been spent by the Washington County Volunteer Fire and Rescue Association during the previous fiscal year. If the financial reports are not submitted within the time required under the regulations, the county commissioners may withhold funds that would otherwise be distributed under subsection (f)(1) of this section until the reports are submitted. Each year the Washington County Volunteer Fire and Rescue Association shall submit its budget to the county commissioners. The county commissioners shall accept or reject the budget by a majority vote. The acceptance or rejection of the budget may not be delegated to any designee. The county commissioners may withhold funds that would otherwise be distributed under subsection (f)(1) of this section until the budget of the Washington County Volunteer Fire and Rescue Association is accepted by the county commissioners. This subsection applies only to a person who holds a tip jar license under § 13–2420(b)(7), (8), or (9) of this subtitle. Subject to paragraph (3) of this subsection, a person subject to this subsection shall deposit with a financial institution designated by the gaming commission, to the credit of the fund, the gross profits from each tip jar that the person operates. To offset the costs of operating a tip jar, a person with a tip jar license may retain 50% of the gross profits from each tip jar game. This subsection applies only to a person who holds a tip jar license under § 13–2420(b)(1) through (6) of this subtitle. A person subject to this subsection shall deposit with a financial institution designated by the gaming commission, to the credit of the fund, 15% of the gross profits earned through the operation of tip jars during the 12–month period ending June 30. If a person fails to contribute the full amount required under paragraph (2) of this subsection, the person shall deposit the balance required during the next year. After the reimbursement under subsection (c)(2) of this section, each year the gaming commission shall distribute: 50% of the money deposited in the fund to the Washington County Volunteer Fire and Rescue Association; and subject to any restriction that the county commissioners adopt by regulation, 50% of the money deposited in the fund to bona fide charitable organizations in the county. The county commissioners may not require that funds distributed under (f)(1) of this section be used for fire and rescue services for which funds previously have been appropriated in the county operating budget.

Unless licensed to operate a tip jar by the agency, a person may not offer to another a chance from a tip jar or otherwise operate a tip jar. A holder of a tip jar license may not: allow a minor to play a tip jar; or operate a tip jar on property owned by the Board of Education of Washington County. Unless licensed as a wholesaler to sell tip jar packets by the agency, a person may not sell or wholesale a tip jar packet for profit.

If a person violates Part III of this subtitle, the person is subject to: for a first violation, suspension of the person’s tip jar license or wholesaler’s license and a civil penalty not exceeding $1,500; or for each subsequent violation, revocation of the person’s tip jar license or wholesaler’s license and a civil penalty not exceeding $5,000. In addition to the penalties under subsection (a)(2) of this section, if the person has a liquor license, the agency may recommend to the Board of License Commissioners for Washington County that the Board suspend the person’s liquor license for not less than 15 days for a subsequent violation. Civil penalties collected under subsection (a) of this section shall be credited to the general fund of the county.

A person who violates § 13-2436 of this subtitle is guilty of a misdemeanor and on conviction is subject to a fine not exceeding: for a first violation, $5,000; or for each subsequent violation, $10,000. Each sale or offer of a chance from a tip jar is a separate violation. If a person convicted under this section has a liquor license, the agency shall recommend to the Board of License Commissioners for Washington County that the Board suspend the person’s liquor license for not less than 15 days.

On or before February 1 of each year, the gaming commission shall submit a report to the Comptroller that includes: the total amount of revenue received by the gaming commission for the previous calendar year as a result of the operation of tip jars in Washington County; a detailed listing of the total distributions made by the gaming commission during the previous calendar year with regard to revenue received from the operation of tip jars in Washington County; and any additional information that the Comptroller may require.