Chapter 5.26
BINGO GAMES FOR CHARITABLE PURPOSES
Sections:
5.26.010 Bingo games for charitable purposes.
5.26.020 Organizations eligible for license to conduct bingo games.
5.26.030 Bingo game license required.
5.26.050 Filing of application for license.
5.26.060 Processing of application.
5.26.080 Amending the original application.
5.26.090 Requirement for bingo manager.
5.26.100 Manager to be noncompensated.
5.26.110 Bingo manager license.
5.26.140 Savings and loan certificates.
5.26.150 Issuance of bingo manager license.
5.26.160 Conduct of bingo games.
5.26.170 Location of bingo games.
5.26.180 Accounting procedures.
5.26.200 Financial interest and operation by licensee only.
5.26.210 Cooperation with city personnel.
5.26.010 Bingo games for charitable purposes.
Bingo games for charitable purposes are authorized pursuant to Section 19, Article IV, of the California Constitution, and Section 326.5 of the Penal Code, in accordance with the provisions of this chapter. (Ord. 619 § 1 (part), 1983)
5.26.020 Organizations eligible for license to conduct bingo games.
Eligible organizations may apply to the city for a license to conduct bingo games in the city under the provisions of Section 326.5 of the California Penal Code and the provisions of this chapter. (Ord. 619 § 1 (part), 1983)
5.26.030 Bingo game license required.
No person or organization shall engage in, carry on, maintain, or conduct, or cause to be engaged in, carried on, maintained, or conducted a bingo game in the city without first having secured a bingo license in accordance with the requirements of this chapter, nor without complying with the regulations contained in this chapter and in Section 326.5 of the California Penal Code pertaining to the operation of bingo games. (Ord. 619 § 1 (part), 1983)
5.26.040 Definitions.
As used in this chapter:
(a) “Eligible organization” means:
(1) Labor, agricultural, or horticultural organizations, other than cooperative organizations described in Revenue and Taxation Code Sections 24404 or 24405 (unless the cooperative organization is determined by the United States Internal Revenue Service to be an organization described in Section 501 of the Internal Revenue Code of 1954 (26 U.S.C. Section 501(c) (5));
(2) Fraternal beneficiary societies, orders, or organizations (i) operating under the lodge system or for the exclusive benefit of the members of a fraternity itself operating under the lodge system; and (ii) providing for the payment of life, sick, accident, or other benefits to the members of such society, order, or organization or their dependents;
(3) Corporations, community chests, or trusts, organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or to foster national or international amateur sports competition (but only if no part of its activities involve the provision of athletic facilities or equipment), or for the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private shareholder or individual, no substantial part of the activities of which is carrying on propaganda, or otherwise attempting to influence legislation (except as provided in California Revenue and Taxation Code Section 23704.5), and which does not participate in, or intervene in (including the publishing or distribution of statements), any political campaign on behalf of any candidate for public office. An organization is not organized exclusively for exempt purposes listed above unless its assets are irrevocably dedicated to one or more purposes listed in this subsection. Dedication of assets requires that in the event of dissolution of an organization or the impossibility of performing the specific organizational purposes the assets would continue to be devoted to such purposes. Assets shall be deemed irrevocably dedicated to exempt purposes if the articles of organization provide that upon dissolution the assets will be distributed to an organization which is exempt under Section 23701d of the California Revenue and Taxation Code or Section 502(c) (3) of the Internal Revenue Code (26 U.S.C.S. Section 501(c) (3)), or to the federal government, or to a state or local government for public purposes; or by a provision in the articles of organization, satisfactory to the State Franchise Board that the property will be distributed in trust for exempt purposes; or by establishing that the assets are irrevocably dedicated to exempt purposes by operation of law;
(4) Business leagues, chambers of commerce, real estate boards, or boards of trade, not organized for profit and no part of the net earning of which inures to the benefit of any private shareholder or individual;
(5) Civic leagues or organizations not organized for profit but operated exclusively for the promotion of social welfare, or local organizations of employees, the membership of which is limited to the employees of a designated person or persons in a particular municipality, and the net earnings of which are devoted exclusively to charitable, educational, or recreational purposes. An organization is not organized exclusively for exempt purposes listed above unless its assets are irrevocably dedicated to one or more purposes listed in this subsection;
(6) Clubs organized and operated exclusively for pleasure, recreation, and other nonprofit purposes, no part of the net earnings of which inures to the benefit of any private shareholder;
(7) Domestic fraternal societies, orders or associations, operating under the lodge system, the net earnings of which are devoted exclusively to religious, charitable, scientific, literary, educational, and fraternal purposes and which do not provide for the payment of life, sick, accident, or other benefits. For the purposes of this subsection, the term “domestic” means created or organized in the United States or under the law of the United States or of any state or territory;
(8) Mobile home park associations and senior citizens organizations.
(b) “Bingo” means a game of chance in which prizes are awarded on the basis of designated numbers or symbols on a card which conform to numbers or symbols selected at random. Bingo includes cards having numbers or symbols which are concealed and preprinted in a manner providing for the distribution of prizes; provided, that the winning card(s) shall not be known prior to the game by any person participating in the playing or operation of the bingo game, and all such cards bear the legend, “for sale or use only in a bingo game authorized under California law and pursuant to local ordinance.” (Ord. 619 § 1 (part), 1983)
5.26.050 Filing of application for license.
Every organization desiring a license pursuant to this chapter shall file an application upon a form to be provided by the city business licensing section of the department of administrative services, and at such time pay the required fee. The application shall be filed at least sixty days prior to the conduct of any bingo game(s), and shall specify:
(a) The name, address, and telephone number of the applicant organization, the nature of the organization, and a statement that the applicant is an eligible organization as defined by Section 5.26.040;
(b) The names and addresses of all officers and directors of the applicant;
(c) A list of the names of all members of the applicant organization who will operate and staff bingo games and the date they became members;
(d) A detailed description of the record system to account for the receipts, prizes, expenses, and profits of each bingo game;
(e) The location and signatures of the special bank account(s) required by Section 5.26.180;
(f) The specific charitable purpose(s) which the bingo proceeds will benefit;
(g) A detailed schedule of the date(s) and hours, and a detailed description, including, but not limited to occupancy capacity and parking availability, of the location of the proposed bingo game(s);
(h) A statement that the applicant agrees to conduct bingo games in strict accordance with the provisions of Section 326.5 of the Penal Code and this chapter, as they may be amended from time to time, and agrees that the license to conduct bingo games may be revoked upon violation of any such provisions;
(i) The address to which notice, when required, is to be sent or mailed, and the names of any individual or individuals, in addition to those set forth elsewhere in the application, who are authorized to accept service of process on behalf of the applicant;
(j) Whether the application is for a new license or a renewal of an existing license;
(k) The application shall be signed by at least two officers, including the presiding officer of the local organization, and shall be verified as provided in the Code of Civil Procedure for the verification of pleadings. (Ord. 770 § 1 (part), 1996; Ord. 619 § 1 (part), 1983)
5.26.060 Processing of application.
The application for a bingo license shall be filed with the business licensing section of the department of administrative services. Upon receipt, the business licensing section shall refer the application to the department of community development and the community safety division of the department of community and cultural services for review and report as to whether the appropriate provisions of this chapter and Section 326.5 of the California Penal Code have been or will be complied with. The applicant shall provide any additional information which may be requested during the review period, and as may be necessary to make a licensing determination. (Ord. 770 § 1 (part), 1996; Ord. 619 § 1 (part), 1983)
5.26.070 Issuance of license.
A bingo license shall be issued by the business license section if the department of community development and community safety division find that the bingo application meets all requirements of this chapter and Section 326.5 of the California Penal Code and that it will have no substantial adverse impact on the neighboring area. If the department of community development or the community safety division finds that the bingo game as proposed does not comply with all the requirements of this chapter and of Section 326.5 of the California Penal Code, or that it will have a substantial adverse impact on the neighboring area, but that conditions can be imposed which will eliminate such problem, the bingo license may be issued subject to such conditions. Bingo licenses shall be issued for a period of one year. (Ord. 770 § 1 (part), 1996; Ord. 619 § 1 (part), 1983)
5.26.080 Amending the original application.
(a) Every organization having a license issued pursuant to this chapter shall notify the city in writing of any requested change(s) in the facts required to be stated by Section 5.26.050.
(b) Any requested change as to the location, date(s), and/or time(s) for proposed bingo game(s) must be submitted to the business license section not less than forty-five days prior to the date when the change, if approved, would become effective. All other changes shall require written notification only, to be provided to the business license section in writing not later than five days following the date when such changes become effective. All such written notifications of change or the intent to change shall be signed by at least two officers, including the presiding officer of the organization.
(c) Requests for change(s) to the original application shall be forwarded to the department of community development and the community safety division for review and to assure that the proposed amendment complies with the provisions of this chapter and Section 326.5 of the Penal Code.
(d) The licensee shall notify the city of any changes in the list of members who will operate and staff bingo games. Said notification shall be made in writing and served upon the city by one of the following methods:
(1) Personal delivery of a revised list and the obtaining of a receipt therefor at least three days prior to the operation of any game; or
(2) Transmittal of a revised list by certified mail bearing a post date at least five days prior to the operation of any game.
(e) The licensee shall retain in his records proof of service of the modifications required by subsections (a) through (d) of this section. (Ord. 770 § 1 (part), 1996; Ord. 619 § 1 (part), 1983)
5.26.090 Requirement for bingo manager.
No organization shall engage in, conduct, or carry on, or permit to be engaged in, conducted, or carried on, in or upon any premises within the city, the operation of a bingo game unless such game is conducted under the personal direction of a bingo manager. The bingo manager shall be present on the premises during the operation of all bingo games. (Ord. 619 § 1 (part), 1983)
5.26.100 Manager to be noncompensated.
No person may be licensed as a bingo manager unless he is a nonsalaried, noncompensated member of the organization licensed to conduct bingo games and has been a member for at least six months. (Ord. 619 § 1 (part), 1983)
5.26.110 Bingo manager license.
To obtain a bingo manager license, the applicant shall file a written application which shall set forth, in addition to such information as may be required by the city:
(a) A statement that neither the bingo manager nor the members of the organization which operate any bingo game organized by such organization, will receive any profit, wage, or salary, or any other direct or indirect consideration from any bingo game;
(b) A statement that the bingo manager applicant has read and understands all requirements of the law in regard to conducting bingo games in the city, and that such bingo manager will accept full responsibility for the conduct of such bingo games and all members who will operate and staff the bingo games. (Ord. 619 § 1 (part), 1983)
5.26.120 Bond requirements.
(a) Prior to the granting of any bingo manager license, the applicant organization whose games are to be directed by said bingo manager shall file and thereafter maintain with the city a good and sufficient bond in the aggregate sum of five thousand dollars running to the city for the use and benefit of interested persons and parties, and executed by the applicant organization and two or more responsible sureties, or a surety company authorized to do business in the state of California. The bond shall be conditioned upon the strict compliance, by the principal, with the provisions of this chapter, and the payment of any direct pecuniary loss sustained, through any act of grand or petty theft or other wrongful act on the part of the principal, his agent(s) or employee(s). The bond shall specify each individual who is licensed as bingo manager of the principal.
(b) The bond shall remain in force and effect for the entire period of the bingo manager license. The sureties may cancel the bond and be relieved of further liability thereunder by delivering thirty days’ written notice to the city. Such cancellation shall not affect any liability incurred or accrued thereunder prior to the termination of the thirty-day period. If a bond is cancelled, the bingo manager license shall be deemed suspended until such time as a new bond is provided. (Ord. 619 § 1 (part), 1983)
5.26.130 Action on bond.
Any person who sustains any injury covered by the bond posted pursuant to Section 5.26.120 may, in addition to any other remedy which he may have, bring an action in his own name upon the bond for the recovery of any damage sustained by him. Such bond shall not be void upon first recovery thereon but may be sued upon from time to time until the whole of the penalty shall be exhausted. Upon such action being commenced, the city may require the filing of a new bond, and immediately upon the recovery in any action on such bond, the licensee shall file a new bond or assign savings and loan certificates to the city as provided for in Section 5.26.140. Upon failure to file a new bond or to assign savings and loan certificates within ten days, the bingo manager license shall be deemed suspended. (Ord. 619 § 1 (part), 1983)
5.26.140 Savings and loan certificates.
In lieu of a bond, an applicant may assign to the city savings and loan certificates in the sum of five thousand dollars, together with an agreement in writing that if the city council finds after a noticed hearing that any person sustained any pecuniary loss through any act of grand theft or petty theft or other wrongful act on the part of the principal, his agent(s) or employees(s), the city may redeem a sufficient number of such certificates and from the proceeds reimburse such person for the loss sustained. (Ord. 619 § 1 (part), 1983)
5.26.150 Issuance of bingo manager license.
A bingo manager license shall be issued if the required security is posted and the community safety division finds that each statement made in the application is true and not deceptive or misleading, and that the proposed bingo manager has not been convicted of any felony or misdemeanor related to gambling, fraud, theft, or similar circumstances. (Ord. 619 § 1 (part), 1983)
5.26.160 Conduct of bingo games.
(a) Each licensed eligible organization may hold a maximum of one bingo game per week.
(b) Bingo games may be held only between noon and midnight of any one day, not to exceed any six continuous hours.
(c) All bingo games shall be open to the public, not just to the members of the eligible organization.
(d) The posting of any sign or device at the location at which a bingo game is being, or will be, held for the specific purpose of advertising the existence, location, date, or time of a bingo game is strictly prohibited.
(e) Notwithstanding that bingo games are open to the public, attendance at any bingo game shall be limited to the occupancy capacity of the room in which such game is conducted or the limit stated in the bingo license, whichever is less. Neither seats nor space may be reserved for any person.
(f) The total value of prizes awarded during the conduct of any bingo games shall not exceed two hundred fifty dollars in cash or kind, or both, for each separate game which is held.
(g) All staff members of a bingo game shall wear on the outside of their clothing an identification insignia or badge not less than two inches by three inches in dimension, indicating the name and titles of the staff member.
(h) No person under the age of eighteen years of age shall be allowed to participate in any bingo game.
(i) No alcoholic beverages shall be served or consumed during the hours of operation of a bingo game.
(j) No person who is intoxicated shall be allowed to participate in a bingo game.
(k) The bingo license shall be posted at all times in a conspicuous place at the public entrance to a bingo game while such game is being conducted.
(l) The licensee shall have available on the premises at all times during the conduct of games the list of members operating the staffing games which has been filed pursuant to Section 5.26.050 of this chapter. In the event the list is different from the list originally submitted with the application for a bingo license, proof of service of the revised list, as required by Section 5.26.080 of this chapter, shall be attached to the current list.
(m) The licensee shall post the costs, prizes, and rules of each game to be played. Such signs shall be posted adjacent to the license and permit during the conduct of the bingo game.
(n) No admission fee, purchase or donation shall be required for entry onto the bingo premises.
(o) No licensee shall issue chips or money to a patron on credit or loan (including but not limited to IOU’s and checks to be held) or allow any patron to play on credit. (Ord. 696 § 1, 1990; Ord. 619 § 1 (part), 1983)
5.26.170 Location of bingo games.
A licensee shall conduct a bingo game only on property owned or leased by it, or property whose use is donated to the organization, and which property is used by such organization for an office or for performance of the purpose for which the organization is organized; provided, however, that no bingo games may be conducted at any city-owned facility or at any residence. Nothing in this section shall be construed to require that the property owned or leased by or whose use is donated to the organization be used or leased exclusively by or donated exclusively to such organization. The license and permit issued under this chapter shall authorize the holder thereof to conduct a bingo game only on such property, the address of which is stated in the application. (Ord. 619 § 1 (part), 1983)
5.26.180 Accounting procedures.
(a) At least two members of the licensed organization shall jointly count all bingo proceeds.
(b) A record shall be kept, on forms approved by the city, by the licensee showing the name and the written signature, the address, and the telephone number of the winner, and the consecutive serial number on the receipt for the prize.
(c) All proceeds derived from a bingo game shall, within twenty-four hours, be deposited in a special account in any financial institution and shall not be commingled with any other account or funds.
(d) The licensee shall keep full and accurate records of the income and expenses received and disbursed in connection with its operation, conduct, promotion, supervision and any other phase of bingo games which are authorized in this chapter. The city, by and through its authorized officers, shall have the right to examine and audit such records at any reasonable time and the licensee shall fully cooperate with the city by making such records available. Such examination may consist of but is not limited to the actual counting or examination of players, bingo cards, equipment, records, and funds.
(e) The city may demand a complete detailed accounting of all income and expenses at any time. If the licensee fails to render such an accounting within the time limit set by the city, the license shall be temporarily suspended until such accounting is rendered. (Ord. 619 § 1 (part), 1983)
5.26.190 Bingo proceeds.
(a) Eligible organizations defined in Section 5.26.040(a) (3) shall keep bingo profits in the special account required by Section 5.26.180, and such funds shall not be commingled with any other fund or account. Such profits shall be used only for charitable purposes.
(b) Eligible organizations defined other than by Section 5.26.040 (a) (3) shall keep all proceeds derived from bingo games in the special account required by Section 5.26.180 and such proceeds shall be used only for charitable purposes, except as follows:
(1) Such proceeds may be used for prizes at authorized bingo games.
(2) A portion of such proceeds, not to exceed twenty percent of the proceeds before the deduction for prizes, or one thousand dollars per month, whichever is less, may be used for rental of property, overhead, including the purchase of bingo equipment, administrative expenses, security equipment, and security personnel.
(3) Such proceeds may be used to pay license fees.
(c) The bingo game profits or proceeds shall be disbursed by check at least quarterly for a charitable purpose.
(d) It is a misdemeanor under Section 326.5(b) of the Penal Code of the state of California for any person to receive a profit, wage, or salary from any bingo game authorized under this chapter, a violation of which is punishable by a fine not to exceed ten thousand dollars, which fine shall be deposited in the general fund of the city. Notwithstanding the foregoing sentence, security personnel employed by the organization conducting the bingo game may be paid from the revenues of the bingo game as provided in subsections (a) and (b) of this section. (Ord. 619 § 1 (part), 1983)
5.26.200 Financial interest and operation by licensee only.
(a) No individual, corporation, partnership, or other legal entity except the licensee shall hold a financial interest in the conduct of any bingo game.
(b) A bingo game shall be operated, managed, and staffed only by members of the licensee organization. Such members shall not receive a profit, wage, or salary, or any other direct or indirect consideration from any bingo game. Only the licensee shall operate such game, or participate in the promotion, supervision, or any other phase of such game; provided, however, that this subdivision shall not preclude the employment by the licensee of security personnel who are not members of the licensee at a bingo game. (Ord. 619 § 1 (part), 1983)
5.26.210 Cooperation with city personnel.
(a) No person shall interfere with, prevent, or refuse to permit a sheriff or other peace officer, or other officer or employee of the city to make an examination or inspection of any premises, whether the premises is open to the public or not, or of any record kept by the applicant organization, or by any agent or employee thereof, for the purpose of determining whether the applicant organization and/or bingo manager are complying with all of the provisions of this chapter.
(b) A licensee shall produce and exhibit the bingo license and bingo manager license, whenever requested to do so by any peace officer or city officer authorized to issue, inspect, or collect licenses. (Ord. 619 § 1 (part), 1983)
5.26.220 Fees.
The fees for the bingo license and bingo manager license shall be the amount set forth in Section 5.04.260. If any application for a license is denied, one half of any license fee paid shall be refunded to the applicant. (Ord. 619 § 1 (part), 1983)