§ 11-19-31. Registration of charitable organizations.
(a) No charitable organization which intends to conduct a permitted game of chance within
the state of Rhode Island shall conduct a game unless it shall file a registration
statement with the department upon prescribed forms and receives a certificate of
approval.
(b) In addition, in order to obtain a renewal of registration, charitable organizations
shall file the statements required by this chapter prior to June 1st of each year.
(c) It shall be the duty of the president, chair, or principal officer of a charitable
organization to file the statements required under this chapter. These statements
shall be sworn to and shall contain the following information:
(1) The name of the organization and the purpose for which it was organized.
(2) The principal address of the organization and the address of any offices in this state.
If the organization does not maintain an office, the name and address of the person
having custody of its financial records.
(3) The place where and the date when the organization was legally established and the
form of its organization.
(4) The names and addresses of the officers, directors, and/or trustees of the organization
and the names and addresses of officers, staff, and/or members who receive a salary
or any other form of compensation, the source of which is the proceeds from the permitted
games of chance subject to subdivision (9) of this subsection.
(5) A copy of the annual financial statement of the organization audited by an independent
public accountant licensed by the state of Rhode Island for the organization's immediately
preceding fiscal year, or a copy of a financial statement covering, in a consolidated
report, complete information as to all the preceding year's fund-raising from the
above-mentioned games showing kind and amount of funds raised, costs and expenses
incidental to it, and allocation or disbursements of funds raised.
(6) The general purpose or purposes for which the proceeds from the game shall be used.
(7) The name or names under which it intends to conduct the game.
(8) The names of the individuals or officers of the organization who will have final responsibility
for the custody of the proceeds from the game.
(9) A listing of the names, addresses and the compensation of all individuals, directors,
officers, agents, servants, and/or employees of the organization who receive compensation,
commission, or other remuneration, directly or indirectly, from the gross receipts
of such games in excess of seven hundred fifty dollars ($750) annually.
(10) The names of the individuals or officers of the organization responsible for the final
distribution of the proceeds. The director or the director's designee shall examine
each initial application of charitable organizations for the right to conduct the
above-mentioned games and each renewal application of charitable organizations for
the right to conduct such games and if found to be in conformity with the requirements
of this chapter and all relevant rules and regulations it shall be approved for registration.
(d) The registration forms and any other documents prescribed by the department shall
be signed by an authorized officer, an independent public accountant, and by the chief
fiscal officer of the charitable organization and shall be verified under oath.
(e) The department shall make or cause to be made any investigation of any applicant that
it shall deem necessary. As a result of its investigation and action, the department
shall certify to the local police department or local licensing authority its approval
or disapproval of the application. No applicant shall be approved if one or more of
the following facts is found to exist:
(1) That one or more of the statements in the application are not true;
(2) That the applicant is or has engaged in a fraudulent transaction or enterprise;
(3) That the game would be a fraud upon the public;
(4) That game expenses during any of the three (3) years immediately preceding the date
of application have exceeded twenty-five percent (25%) of the total gross money or
gross receipts raised or received by reason of the games. In the event special facts
or circumstances are presented showing that expenses higher than twenty-five percent
(25%) were not unreasonable, the department, pursuant to rule and regulation, has
the discretion to allow the higher expenses;
(5) That the expected cost of conducting the games for the specific year for which the
application will exceed twenty-five percent (25%) of the total gross money or receipts
to be raised or received by reason of the games; or
(6) That the activities to be financed will be incompatible with the health, safety, or
welfare of the state of Rhode Island.