Legislation vs. Regulation conflict

The legislation states….

CHAPTER 722, 18.2-340.16 Definitions

15. "Reasonable and proper business expenses" means business expenses actually incurred by a qualified organization in the conduct of charitable gaming … For the purpose of this definition, salaries and wages of employees whose primary responsibility is to provide services for the principal benefit of an organization's members shall not may qualify as a business expense, if so determined by the Department.

The proposed regulation states…

11VAC20-20-10 Definitions

"Reasonable and proper business expenses" means the same term as defined in § 18.2-340.16 of the Code of Virginia, except that salaries and wages of employees whose primary responsibility is to provide services for the principal benefit of an organization's members shall not qualify as a business expense.

Is this not a direct conflict between legislation and regulation? If the word “may” was included in the regulation, would it not be required for the Board/Agency to further define what “may” be a "Reasonable and proper business expenses" that would/should include the infrastructure that enables the activity associated with charitable gaming. Building maintenance including utilities, purchase of supplies, salary expenses for management and operations, etc…

THANKS in advance

Jay L. Marts

ELKS #867 Member (Trustee)

Veterans Cmte Chair