Ginny's Kids International, Inc. v. Office of the Secretary of State

29 P.3d 333, 2000 Colo. J. C.A.R. 6324, 2000 Colo. App. LEXIS 2053, 2000 WL 1732347
CourtColorado Court of Appeals
DecidedNovember 24, 2000
Docket99CA2265
StatusPublished
Cited by9 cases

This text of 29 P.3d 333 (Ginny's Kids International, Inc. v. Office of the Secretary of State) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ginny's Kids International, Inc. v. Office of the Secretary of State, 29 P.3d 333, 2000 Colo. J. C.A.R. 6324, 2000 Colo. App. LEXIS 2053, 2000 WL 1732347 (Colo. Ct. App. 2000).

Opinions

Opinion by

Judge CASEBOLT.

Plaintiff, Ginny's Kids International, Inc. (GKI), appeals the determination of an Administrative Law Judge (ALJ) that upheld the decision of the Colorado Secretary of [335]*335State, denying GKTI's application for a bingo-raffle license under § 129-104, C.R.8.2000. We affirm.

In 1982, an unincorporated group decided to create a program called "Ginny's Kids" to raise funds to send children with cancer and other life-threatening diseases on "dream vacations." Soon thereafter, Ginny's Kids became a program of the Arvada Kiwanis Club. The club raised money for the Ginny's Kids program through raffles and placed the proceeds in a separate account to be used solely for the purposes of Ginny's Kids.

In 1988, the club formed the Kiwanis Club of Arvada Foundation (Foundation) as a tax-exempt charitable organization. The creation of the Foundation allowed individuals who contributed to Kiwanis activities to deduct their contributions from their income tax returns. The articles of incorporation and by-laws of the Foundation gave it authority to raise and expend money in the name of Ginny's Kids and all money so raised was likewise kept in a separate account.

In 1996, some members of the Foundation wanted to expand the use of Ginny's Kids' funds for purposes other than "dream trips." Those that opposed such expansion formed GKI as a separate charitable organization to pursue the original objectives of the group, and the Foundation thereafter transferred to GKI all of the funds in its bank accounts that were attributable to Ginny's Kids activities. The Foundation amended its by-laws to exclude any reference to Ginny's Kids, but continued to operate as a charitable organization.

In 1998, GKI filed an application with the Secretary for a bingo-raffle license. The Secretary denied the application, asserting that GKI had not existed for five years as required by § 12-9-104, C.R.S.2000. GKI then requested a hearing before an ALJ, who upheld the Secretary's decision. This appeal followed.

GKI contends that the ALJ erred in concluding that it was not entitled to a bingo-raffle license because it had not been in existence for five years. Specifically, GKI argues that it is a successor organization to the Foundation and that, therefore, § 12-9-104 permits it to add the time its predecessor had been in existence to its own time in existence to meet the five-year requirement.

Alternatively, GKI contends that it is essentially the same organization that began in 1982, with the same people, purposes, and functions, and that during the time it was affiliated with the Kiwanis Club and the Foundation it operated independently. Therefore, it argues that the time before its incorporation should be counted toward the five-year requirement. We disagree with both contentions.

A reviewing court may reverse an administrative agency's determination if the court finds that the agency acted in an arbitrary and capricious manner, made a determination that is unsupported by the evidence in the record, erroneously interpreted the law, or exceeded its constitutional or statutory authority. Section 24-4-106(7), C.R.S. 2000; McClellan v. Meyer, 900 P.2d 24 (Colo. 1995).

When presented with an issue that involves statutory construction, our review is de movo. Fogg v. Macaluso, 892 P.2d 271 (Colo.1995). Our primary task in construing a statute is to determine and give effect to the intent of the General Assembly. Christie v. Coors Transportation Co., 988 P.2d 1330 (Colo.1997).

To discern that intent, we look first to the plain language of the statute and interpret statutory terms in accordance with their commonly accepted meanings. Sears v. Romer, 928 P.2d 745 (Colo.App.1996). A strained or foreed construction of a statutory term is to be avoided, and we must look to the context in which a statutory term is employed. Miller v. Byrne, 916 P.2d 566 (Colo.App.1995).

Further, we must construe the statute as a whole so as to give consistent, harmonious, and sensible effect to all its parts and, if possible, give effect to every word in the statute. City of Grand Junction v. Sisneros, 957 P.2d 1026 (Colo.1998).

Section 12-9-104(1), C.R.8.2000, provides that a bingo-raffle license may be issued to:

[336]*336Any bona fide chartered branch, lodge, or chapter of a national or state organization or any bona fide religious, charitable, labor, fraternal, educational, voluntary firefighters', or veterans' organization or any association, successor, or combination of association and successor of any of the said organizations that operates without profit to its members and that has been in existence continuously for a period of five years immediately prior to the making of application for a bingo-raffle license....

The statute thus limits the type of organizations to which a license may be issued. Under the statute, there are three distinct groups of organizations that can receive a license: (1) bona fide chartered branches, lodges, or chapters of national or state organizations; (2) bona fide religious, charitable, labor, fraternal, educational, voluntary firefighters) or veterans' organizations; or (8) any association, successor, or combination of association and successor, of any of the preceding types of organizations. In addition, the organization must also operate without profit to its members and have been in continuous existence for the five years immediately prior to making its application.

A.

Addressing GKI's contention that it is a "successor" organization to the Foundation, we note that the term "successor" is not defined in the statute. We interpret the statute's reference to a successor organization to mean an organization that either:; (1) completely takes the place of another already qualified organization; or (2) comes into being through a consolidation or through combining multiple qualified organizations,. We so conclude for several reasons.

Black's Law Dictionary 1446 (7th ed.1999) defines "successor" as one who "succeeds to the office, rights, responsibilities or a place of another; one who replaces or follows another," and with reference to corporations, "successor" is defined as another corporation which through amalgamation, consolidation, or other assumption of interests, is vested with the rights and duties of an earlier corporation.

These definitions speak not only to entities or persons, but also to functions or activities. However, in our view, we are required to limit the definition here to those that pertain to entities or persons. We so conclude for a number of reasons.

The statute speaks in terms of granting licenses to organizations, not to licensing their functions or activities. It describes the types of entities that may receive licenses. If the General Assembly had intended to grant licenses with reference to particular functions or activities of organizations, it would have so stated, and would have structured the statute differently.

This interpretation is confirmed by reviewing the five-year requirement contained in the statute.

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29 P.3d 333, 2000 Colo. J. C.A.R. 6324, 2000 Colo. App. LEXIS 2053, 2000 WL 1732347, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ginnys-kids-international-inc-v-office-of-the-secretary-of-state-coloctapp-2000.