§ 1-2-107. TIP JARS AND PUNCHBOARDS.
   (A)   In Frederick County, a tip jar or punchboard may be operated for the benefit of an organization only by:
      (1)   Uncompensated members of an organization located within the county; or
      (2)   An establishment or proprietor licensed to serve food and alcoholic beverages for consumption on the premises.
   (B)   Before a tip jar or punchboard is operated, the operator and the organization must jointly apply for and obtain a permit as described in § 1-2-104.
   (C)   The issuance fee for a tip jar and punchboard permit shall be:
      (1)   $165 for a 1-year permit if the tip jar or punchboard will be operated solely by the organization for its own behalf on its own premises or premises owned by another organization;
      (2)   According to the following schedule if § 1-2-107(C)(1) does not apply:
         (a)   $750 for a 1-year permit;
         (b)   $175 for a 3 month permit;
         (c)   $110 for a carnival permit, event not to exceed 10 days;
         (d)   $75 for a single-occurrence permit, event not to exceed 3 days.
   (D)   An issuance fee also shall be due on each bag sold for tip jar use and on each punchboard.
      (1)   The fee shall be as follows:
         (a)   $2 per bag or punchboard if the projected profit from the tip jar or punchboard is from $0 to $100;
         (b)   If the projected profit from the tip jar or punchboard is over $100, the fee shall be $2 per bag or punchboard for each $100 (or fraction thereof) of projected profit from the tip jar or punchboard.
      (2)   The distributor shall pay the county the fee for each sale of a tip jar bag or punchboard to operators or organizations for use within Frederick County during a calendar month.
      (3)   Each distributor shall submit the appropriate fee to the Department of Permits and Inspections along with the monthly reports required in § 1-2-110(F).
      (4)   The fee shall be submitted by check or money order identifying the distributor by name and license number.
      (5)   A distributor’s failure to timely pay this fee shall constitute a violation of the gaming laws subjecting the distributor to each of the penalties provided in § 1-2-111.
   (E)   (1)   The organization must receive a minimum of 70% of the proceeds from a tip jar or punchboard. The operator may receive from the proceeds its expenses, but only up to 30% of the proceeds.
      (2)   Permissible expenses for which the operator may be reimbursed are:
         (a)   Permit fee;
         (b)   Wages of the person conducting the tip jar or punchboard;
         (c)   Cost of producing the required monthly reports;
         (d)   Cost of purchasing the tip jar/punchboard.
   (F)   The operator must submit monthly reports to the Director of Permits and Inspections within 45 days after the end of each month detailing the number of bags purchased during that calendar month, the number of bags used, proceeds, payouts, expenses, and amounts paid to the organization in the format required by the Director of Permits and Inspections.
   (G)   If the organization is not the operator, the organization shall submit an annual report detailing the funds received from the operator on a monthly basis from tip jars and punchboards. The report shall be submitted to the Director of Permits and Inspections by February 15 for the preceding calendar year in the form required by the Director of Permits and Inspections.
   (H)   All tip jars and punchboards must be obtained only from a distributor licensed by the county to distribute gaming devices.
   (I)   The permit must be displayed conspicuously with the tip jar or punchboard.
   (J)   An organization may not have or be a signatory on more than 3 permits to operate tip jars or punchboards off its premises.
   (K)   A tip jar or punchboard may not be played by anyone under 18 years of age. Operators are responsible for ensuring that all players meet the minimum age requirement.
   (L)   All records regarding punchboards or tip jars must be made available for inspection by the Director of Permits and Inspections and by law enforcement agents.
   (M)   More than 1 tip jar or punchboard may be operated at the same location, but a separate permit is required for each different location at which a punchboard or tip jar is operated.
   (N)   The cost of the tip jar or punchboard itself may be paid either by the operator or the organization.
(Ord. 92-21-056, 9-22-1992; Ord. 93-02-066, 1-19-1993; Ord. 03-15-338, 10-7-2003; Ord. 14-23-678, 11-13-2014)