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

Judge TAUBMAN

dissenting.

Because I believe that Ginny's Kids International, Inc., (GKI) properly qualifies as a "successor" to the Kiwanis Club of Arvada Foundation (Foundation) pursuant to § 12-9-104(1), C.R.S.2000, I respectfully dissent. Specifically, I disagree with the majority's narrow interpretation of the word "successor," which I believe is at odds with the plain meaning of that word.

Here, there is no dispute as to the relevant facts as found by the Administrative Law Judge (ALJ) and set forth as follows. In 1988, the Kiwanis Club of Arvada formed the Foundation so that individuals who contributed to the Kiwanis Club activities for Ginny's Kids could deduct their contributions from their income tax. The articles of incorporation and bylaws of the Foundation specifically provided that it was authorized to raise and expend funds in the name of Ginny's Kids International, and that Ginny's Kids' money was to be kept in a separate account to be used solely for the Ginny's Kids' purpose of making gifts to terminally ill children.

In October 1996, GKI was formed as a separate charitable organization. Its purpose was the same as it was when it was part of the Foundation, i.e., to assist terminally ill children or their families. On April 2, 1997, *338the Kiwanis Club of Arvada transferred to GKI all of the funds in the separate bank account which the Foundation had maintained for Ginny's Kids' purposes.

Both the Kiwanis Club of Arvada and the Foundation continue to exist, but neither conducts activities related to Ginny's Kids.

The dispositive issue here is the interpretation of § 12-9-104(1), particularly the definition of the word "successor" in that statute. That statute provides that a bingo-raffle license may be issued to a variety of non-profit organizations:

or any association, successor, or combination of association and successor of any of the said organizations that operates without profit ... 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....

Thus, as the majority notes, a bona fide charitable organization, successor, or combination of association and successor may qualify for a bingo-raffle license.

Applying the plain meaning of the word "successor," the majority concludes that the statute's reference to a successor organization means an organization that either completely takes the place of another already qualified organization or comes into being through a consolidation or through combining multiple qualified organizations.

As noted, I believe that this is an overly narrow interpretation of the plain meaning of the word "successor." According to Black's Law Dictionary 1446 (7th Ed.1999), the word "successor" means "a person who succeeds to the office, rights, responsibilities or a place of another; one who replaces or follows another." (emphasis added) It also means "a corporation that, through amalgamation, consolidation, or other assumption of interests, is vested with the rights and duties of an earlier corporation." (emphasis added) Further, Webster's Third New International Dictionary 2282 (1986) defines "successor" as "one that follows; especially, a person who succeeds to a throne, title, or a state or is elected or is appointed to an office, dignity, or other position vacated by amother." (emphasis added)

In my view, these definitions do not require that, to be a successor, a new organization must completely replace a prior organization. Indeed, according to Black's Law Dictionary, a successor may be one "who replaces or follows another." The quoted Webster's definition is of similar import.

Here, GKI is without question an organization that replaces or follows the Foundation with respect to the activities of Ginny's Kids. It is also an organization that has fulfilled the function of the Foundation which has vacated its responsibilities with respect to Ginny's Kids.

Nothing in the plain meaning of the statute provides that a successor organization must completely replace its predecessor.

To so hold has unduly restrictive consequences. For example, if Mile High United Way, which has been in existence a substantial period, were to spin off some of its activities into a new organization, that new organization would not be able to obtain a bingo-raffle license until that new organization itself had been in existence for five years. Such interpretation would ignore the apparent legislative purpose of ensuring that bingo-raffle licenses be issued to non-profit organizations with a record of stability and probity.

More significantly, such a construction of the term "successor" is inconsistent with the plain language of § 12-9-104(1), which specifically contemplates that the five-year requirement apply not only to organizations but to their successors or combinations of associations and successors. As interpreted by the majority, the statute is robbed of a significant core of its plain meaning.

Accordingly, because it is clear beyond peradventure that GKI and the Foundation have been in existence continuously for a period of more than five years immediately preceding GKI's application for a bingo-raffle license, I would hold that such license should have been granted. Thus, I would reverse the order and remand with directions to issue the requested license.