The way it was explained to me is burning candles are not allowed in the houses, rooms, dorms, or whatever sort of property owned/controlled by the sorority. This was not a policy handed down by ADPi, rather it came from MJ Insurance because of the liability. Since this is the insurance provider for all NPC organizations it should be for everyone, not just ADPi.
If an alum group wants to do a candlepass and it is not on ADPi property, then I don't see any reason why there would be a problem. At least not with our International organization or the insurance company.
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