| (a) Definitions. The following words or terms, when
used in this chapter, shall have the following meanings, unless the
context clearly indicates otherwise.
(1) Force majeure--Some unforeseen event beyond the
control of the licensed authorized organization or unit that results
in non-compliance with specific sections of the Act or Rules.
(2) Request to exceed the operating capital limit--An
application to the Bingo Operations Director in accordance with §2001.451(h)(2)(B)
and (j) of the Act to increase the retained operating capital limit
for one organization or unit.
(3) Retained operating capital--The amount of operating
capital the licensed authorized organization or unit retains in the
organization's or unit's bingo account.
(b) Applying for a Request to Exceed Operating Capital
Limit.
(1) A licensed authorized organization or unit requesting
to increase its operating capital limit must submit a written request
prior to the end of the quarter for which the increase in its retained
operating capital limit is being requested.
(2) The retained operating capital limit may not be
increased for the purpose of decreasing a licensed authorized organization's
or unit's disbursement of net proceeds for charitable purposes.
(3) A request to exceed the operating capital limit
must include the following:
(A) the total amount of retained operating capital
requested;
(B) the reason for the request;
(C) the period for the increase; and
(D) either of the following:
(i) a credible business plan; or
(ii) if the request is due to force majeure, documentation
from outside sources supporting force majeure or evidence of circumstances
beyond the control of the organization. Examples of acceptable documents
include newspaper articles, copies of local ordinance changes, police
or fire department reports, notification of road construction, or
photographs.
(4) A credible business plan for the organization's
bingo operation may include the following:
(A) the stated project goal of the organization as
it applies to the request;
(B) a detailed description of the charitable activities
of the organization for the four quarters immediately preceding the
request;
(C) a detailed description of the proposed charitable
activities for the time period of the request;
(D) a cost for the project goal; and
(E) the period of time required to accomplish the project
goal.
(c) An organization that has been licensed to conduct
bingo for less than one year may provide a detailed explanation of
why the increase in the operating capital limit is necessary in lieu
of a credible business plan.
(d) The Commission may request additional information
or documentation as needed to consider the request to exceed the operating
capital limit.
(e) 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 request.
(f) Criteria for Approval. The Commission shall consider
the following in the approval of requests to exceed the operating
capital limit:
(1) the reason or circumstances beyond the control
of the organization, including force majeure, that necessitates the
increase in retained operating capital;
(2) the project goal and eventual charitable use of
bingo proceeds applicable to the organization's charitable purposes
as defined in §2001.454 of the Act;
(3) the necessity of the project goal;
(4) the amount of net proceeds from the licensed authorized
organization's or unit's bingo operations during the past one or more
years; and
(5) the length of time the organization has conducted
bingo and compliance history.
(g) Within 21 calendar days of receipt of the written
request to exceed the operating capital limit and all required attachments
and documentation, the Commission will notify the organization or
unit in writing of the decision to approve or disapprove the request.
(h) An organization or unit may not increase its retained
operating capital until it is notified by the Commission of the approval
of the request.
(i) An organization or unit whose circumstances or
credible business plan changes may submit a new request.
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