Chapter 4.21 BINGO GAMES

A. City time, effort and expense to regulate and monitor bingo are increasing significantly. State and City laws demand a technical accounting of proceeds. As volume increases, the City’s ability to audit and enforce State and local law is compromised. Although many operators are highly efficient and reputable, others are inefficient and creative in avoiding the letter of the law.

B. If all licensees were efficient and reputable, regulatory supervision would be almost perfunctory. Such is the case with many existing licensees. Others, however, require exhaustive monitoring and enforcement. Integrity is a difficult commodity to ascertain in advance of licensure. Thorough screening of applicants prior to licensure is desirable. Pursuant to EGMC Sections 4.10.035 and 4.10.040, the Chief of Police conducts a thorough investigation into the background of applicants, and their organizations, in order to assure that licensure would not set the stage for fraud and deceit. Such investigation is particularly difficult when applicants have no local track record.

C. Both newly chartered and out-of-the-jurisdiction charities have proven to be problematic. Several have folded within months of licensure due to financial collapse. While some financial failure may be innocently explained, others are clearly bankrupted by the misappropriation of charitable proceeds. Whether innocent or criminal causes underlie these failures, short-lived charities monopolize an inordinate amount of City expense, which never ripens to benefit any charity.

A one (1) year operational prerequisite would allow City energies to be more efficiently allocated. Prelicense screening would be supplemented with the objective track record of each applicant. The number of unstable or pretextual organizations would be reduced.

Accordingly, it is the finding of the City Council that a twelve (12) month operational prerequisite would eliminate many of the above problems, without undue burden to stable and reputable charities. The purposes of this chapter are to protect the health, safety and welfare of the citizens within the City, to assure that City expenditure is efficiently allocated, and to safeguard legitimate charitable purposes.

The purpose for allowing an eligible organization to conduct bingo games in the City is to provide that organization an additional source of revenue to further the purpose for which that organization was created. A licensee organization conducting bingo games without generating a profit from those games does not fulfill the purpose for which bingo is permitted.

Organizations with a proven track record demonstrating that the game can produce a certain level of profits for charitable purposes, as opposed to proceeds going largely to overhead expenses of the game, should be allowed to conduct further games on various days of the week.

The purpose of requiring a separate license for separate functions of bingo operations, such as a bingo parlor license, a bingo supplier license, and a license for the actual conduct of the games, is to ensure that each function is conducted by a separate and independent person or entity. Such regulation aids in assuring the integrity of the game and in minimizing the problems of undue influence being used against an organization that is licensed to conduct bingo. Recent history has shown that nonprofit organizations are not beyond exercising undue influence against smaller organizations and channeling some of the monies meant for charitable purposes into the private accounts of dishonest members. Further, requiring separation of functions lessens the opportunity for fraud, collusion, and self-dealing.

The purpose of requiring those organizations licensed to conduct bingo games to pay amounts owed to the bingo parlor before the next day of bingo operation and to pay the bingo supplier within thirty (30) days of the invoice date or ten (10) days of the statement date, whichever occurs later, is a direct effort to preclude the parlor or the supplier from acquiring a financial interest in the games. The existence of a debtor-creditor relationship is inimical to the integrity of the bingo games. In the realm of gaming, and bingo is gaming, debts owed to the parlor or supplier by the organization licensed to conduct bingo can be used by the parlor or supplier to exert undue influence on the conduct of the games, and to increase the overhead expenses charged to these organizations. Organizations indebted to the parlor or supplier are thus placed in a position of sharing profits with the parlor or supplier to the detriment of the charitable purpose. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]

4.21.005 Bingo prohibition.

No person shall operate a bingo game in the City without possessing a valid, unrevoked and unexpired special business license issued pursuant to the provisions of this chapter and City regulations adopted pursuant to this chapter, and except in conformance with Section 326.5 of the California Penal Code, or any other applicable State of California, City of Elk Grove, Federal law, or administrative rule or regulation. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]

4.21.010 Definition of “bingo.”

As used in this chapter, “bingo” means a game of chance in which prizes are awarded on the basis of designated numbers or symbols on a card that conform to numbers or symbols selected at random. The game of bingo shall include cards having numbers or symbols that are concealed and preprinted in a manner providing for the distribution of prizes. The winning cards shall not be known prior to the game by any person participating in the playing or operation of the bingo game. All preprinted cards shall bear the legend as follows: “for sale or use only in a bingo game authorized under California law and pursuant to local ordinance.” Although “cards” colloquially may refer to a cardboard card, it is permissible for a “card” to be a sheet of paper with multiple card faces preprinted on it and is included herein within the definition of “card.”

The game of bingo includes the use of an electronic bingo aid in conjunction with bingo cards to assist a bingo player participating in bingo games to identify a winning card, when used under the conditions set forth in EGMC Section 4.21.167(B). The term “electronic bingo aid” is defined as any mechanical, electronic, or computerized aid (including related hardware and software) that is interfaced with or connected to equipment that allows a player to store, display, and mark bingo card faces programmed into the device. This definition of “electronic bingo aid” includes the individual handheld or tabletop unit or component used by a player, the related equipment and system with which the handheld or tabletop unit is interfaced, and all other related systems, equipment, software, hardware, and circuitry, that together comprise the electronic bingo aid.

Definitions, powers, conditions and restrictions set forth in this chapter are intended to comply with and implement applicable California Constitution and Penal Code provisions. To the extent that any provision of this chapter is substantially the same as that contained in Section 326.5 of the Penal Code, and violation thereof is a violation of that Penal Code section and punishable thereunder, such provision of this chapter is explanatory only. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]

4.21.015 Definition of “bingo game.”

A. “Bingo game” means a game of chance in which prizes are awarded on the basis of designated numbers or symbols that are marked or covered by the player on a tangible card in the player’s possession and that conform to numbers or symbols selected at random and announced by a live caller. A bingo game starts when the first (1st) ball or number symbol is called and ends when the first (1st) ball and all succeeding balls or number symbols are returned to the cage or blower. Each progressive play in a series which continues to utilize and count any number symbols called and utilized in a previous part of this progression shall be deemed part of the same bingo game, even if a separate prize is awarded for each part of the progression.

B. It shall be unlawful for any person to establish, provide or authorize the establishment or provision of a prize or prizes in violation of the provisions of this section, and a violation of the provisions of this section shall constitute grounds for revocation of a special business license authorizing the operation of bingo games issued pursuant to the provisions of this chapter and EGMC Chapter 4.10. [Ord. 17-2017 §3, eff. 8-11-2017; Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]

4.21.017 Definition of a “bingo session.”

A bingo session shall not exceed six (6) hours in duration. A session begins when the first (1st) game starts. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]

4.21.020 Definition of “security.”

“Security” shall mean the person(s) who protects bingo players, bingo licensees, and volunteers from exposure to danger. The security person(s) shall be prohibited from the sale or the distribution of bingo materials or otherwise participating in nonsecurity activities before, during, and after the bingo session. However, this provision does not preclude security from accompanying the licensee with the session’s net proceeds to a night depository immediately after the session. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]

4.21.025 Definition of “member.”

A. Each licensee shall have written policies incorporated in its constitution, articles, bylaws, or other regulations setting forth the manner in which a person may become a bona fide member of the organization. Absent any such written policies, it shall be presumed that the organization has no members who may operate or staff bingo games within the meaning of Section 326.5 of the Penal Code.

B. The licensee shall keep a full and accurate list of its members. The Chief of Police or any other authorized representative of the City is entitled to examine and investigate such list at any reasonable time, and the licensee shall cooperate in making such records available upon demand of the Chief of Police. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]

4.21.027 Prohibition of member participation in staffing bingo games.

A. A volunteer or member shall not participate in the staffing of bingo games if the Chief of Police makes a finding that such volunteer or member:

1. Has violated any applicable prohibition or requirement of this chapter or title or applicable administrative regulations adopted pursuant to this chapter or title, or has been convicted of a crime, and the time for appeal has elapsed, or when an order granting probation is made suspending the imposition of sentence, irrespective of the entry of a subsequent order under Section 1203.4 of the California Penal Code; or

2. Has done any act involving dishonesty, fraud or deceit with intent to substantially benefit him or her or another, or substantially injure another; and

3. By reason of the violation, crime, or act, there is a substantial risk the member may perform his or her duties of staffing the bingo game in an unlawful manner or in a manner which subjects patrons of the bingo game to risk of harm or criminal, deceitful or otherwise unethical practices.

B. Notwithstanding the foregoing, a member shall not be prohibited from staffing a bingo game solely on the basis that a person has been convicted of a felony if the person has obtained a certificate of rehabilitation under Section 4852.01, et seq., of the California Penal Code or that the person has been convicted of a misdemeanor if the person has met all applicable requirements of the criteria of rehabilitation developed to evaluate the rehabilitation of a person under Section 4852.05 of the California Penal Code. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]

4.21.030 Chief of Police.

The Chief of Police is charged with the responsibility of administering the regulations imposed by this chapter and exercising the authority conferred thereby. Such authority shall include the power and duty to issue special business licenses authorizing bingo games, promulgate and enforce administrative regulations, and otherwise perform the duties and exercise the authorities conferred herein. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]

4.21.035 Organizations eligible for license.

Organizations which are exempted from the payment of the bank and corporation tax by Sections 23701(a), 23701(b), 23701(d), 23701(e), 23701(f), 23701(g), and 237011 of the Revenue and Taxation Code, mobile home park associations and senior citizens organizations shall be eligible to apply for and receive a special business license to conduct bingo games in the City pursuant to the provisions of the California Constitution, Section 326.5 of the Penal Code, and the provisions of this chapter only if the proceeds of such games are used for charitable purposes and only if the applicant has owned or leased property or occupied donated property within the City that has been used by the applicant for the performance of the charitable purposes for which the applicant is organized for at least twelve (12) consecutive months immediately preceding the filing of such application. The required consecutive twelve (12) month period need not be as an organization that is exempt from the payment of bank and corporation tax. With the foregoing exceptions, no other person shall be qualified or eligible to receive such a license. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]

4.21.040 Contents of the application.

In addition to the matters prescribed by EGMC Section 4.10.030, an application for a special business license to conduct bingo games shall contain the following:

A. The names and signatures of at least two (2) officers, including the presiding officer of the organization who will be primarily responsible for conducting bingo games. In the event of any change in persons holding such offices, the licensee shall, within ten (10) days of change, notify the Chief of Police, in writing, of such change, specifying the name, address, date of birth, and telephone number of such officer(s);

B. A description of the property on which bingo games will be conducted, including the street number, whether owned or leased, applicant’s current use of the premises, and the occupancy capacity of the property;

C. A copy of the deed, lease or other written instrument by which the applicant will acquire entitlement to occupy the premises where the bingo games will be conducted, and a description of all uses which the applicant will make of the premises;

D. A statement of the specific charitable purpose(s) for which the applicant is organized;

E. Proposed day(s) of the week and hours for conduct of bingo games;

F. Such proof as may be required by the Chief of Police that the applicant is eligible and qualified to receive a special business license under EGMC Section 4.21.035. If eligibility is based on an exemption from payment of the bank and corporation tax, the application shall be accompanied by a certificate of determination of exemption under the applicable section of the Revenue and Taxation Code, or a letter of good standing from the Exemption Division of the Franchise Tax Board showing such exemption;

G. A statement that the applicant agrees to conduct bingo games in strict accordance with the provisions of Section 326.5 of the Penal Code, this chapter, City regulations adopted pursuant to this chapter, or any other applicable State of California, City of Elk Grove, Federal law, or administrative rule or regulation and agrees that the license may be revoked by the Chief of Police upon violation of any such provisions; and

H. The application shall be signed by the applicant under penalty of perjury. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]

4.21.045 Bingo manager.

Concurrently, with the filing of an application, each applicant shall file a statement specifying the name, address, e-mail address, if any, telephone number and birth date of one (1) or more persons who shall manage, supervise and be responsible for the conduct of all bingo games by the applicant. Such person(s) shall be known as the bingo manager(s), shall sign the statement accepting such responsibility and shall be present on the premises at all times during which bingo games are conducted. In the event any other person is designated as the bingo manager by any licensee, the licensee shall within ten (10) days of such designation file a new statement containing all of the data specified in this section. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]

4.21.050 License fee.

Each holder of a special business license to conduct bingo games shall, pursuant to the authority conferred by Section 326.5 of the California Penal Code, pay to the Chief of Police a fee prescribed by the City Council, paid upon application for a special business license or the application for renewal thereof. A bingo monitoring fee, prescribed by a resolution of the City Council, for law enforcement and public safety costs incurred by the City that are directly related to bingo activities shall be imposed and shall be collected monthly by the City and such additional fee shall not exceed the actual costs incurred in providing the service. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]

4.21.055 Issuance of license.

The Chief of Police shall issue a special business license for bingo games unless one (1) or more of the findings prescribed by EGMC Section 4.10.040 are made, or the Chief of Police makes one (1) or more of the following findings in writing:

A. The bingo games will be a fraud on the public;

B. The bingo games will be conducted at a location or in a manner or the proceeds thereof will be accounted for or expended in a manner which violates, or the applicant has violated, Section 326.5 of the Penal Code, this chapter, or any other applicable State of California, City of Elk Grove, Federal law, or administrative rule or regulation;

C. The identity of the applicant or proposed method or methods of conducting bingo games are contrary to the provisions of Section 326.5 of the California Penal Code, this chapter, City regulations adopted under this chapter, or any other applicable State of California, City of Elk Grove, Federal law, or administrative rule or regulation;

D. The applicant will be maintaining an inadequate system of recordkeeping and accounting relating to the conduct of the games and disposition of the proceeds therefrom;

E. The application does not conform to the requirements, terms, and conditions of this chapter, Section 326.5 of the Penal Code, or any other applicable State of California, City of Elk Grove, Federal law, or administrative rule or regulation; or

F. The applicant holds a current license under EGMC Chapter 4.22 or 4.23. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]

4.21.060 Posting of license.

The special business license shall be conspicuously posted at the location of the bingo games. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]

4.21.065 Profits – 23701(d) organizations.

With respect to organizations exempt from payment of the bank and corporation tax by Section 23701(d) of the Revenue and Taxation Code, all profits derived from a bingo game shall be kept in a special fund or account and shall not be commingled with any other fund or account. Such profits shall be expended only for the charitable purposes stated in the application for bingo license or in the articles of incorporation of such organization. These profits shall not be used for the private gain of any individual. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]

4.21.070 Proceeds – Other organizations.

A. With respect to organizations licensed under this chapter which are not exempt from payment of the bank and corporation tax by Section 23701(d) of the Revenue and Taxation Code, all proceeds derived from a bingo game shall be kept in a special fund or account and shall not be commingled with any other fund or account. These proceeds shall not be used for the private gain of any individual. The proceeds shall be expended only for the charitable purposes stated in the application for bingo license or in the articles of incorporation of such organization, except as follows:

1. Such proceeds may be used for prizes;

2. A portion of such proceeds, not to exceed twenty (20%) percent of the proceeds before the deduction for prizes, or Two Thousand and no/100ths ($2,000.00) Dollars per month, whichever is less, may be used for rental of property, overhead, the purchase of bingo equipment, administrative expenses, security equipment and security personnel; and

3. Such proceeds may be used to pay license fees.

B. A licensee shall be deemed to violate Section 326.5(k)(2) of the California Penal Code and subsection (A)(2) of this section if expenses during any particular month exceed Two Thousand and no/100ths ($2,000.00) Dollars. If expenses do not exceed Two Thousand and no/100ths ($2,000.00) Dollars per month, the twenty (20%) percent limitation shall be applied annually at the conclusion of each twelve (12) months of operation. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]

4.21.075 Records – Compliance examination and inspection.

A. The licensee shall keep full and accurate records of the income received and expenses disbursed in connection with its operation, conduct, promotion, supervision, and any other phase of bingo games. Such records are to include but are not limited to: ledgers and accounts relating to inventory, proceeds, expenditures, and the distribution of all profits derived from bingo games, and any other records as are necessary to determine or establish compliance with the provisions of this chapter, City regulations adopted pursuant to this chapter, Section 326.5 of the Penal Code, or any other applicable State of California, City of Elk Grove, Federal law, or administrative rule or regulation.

The records shall be of such types and maintained in such manner as may be prescribed by the Chief of Police, and, when not so prescribed, shall be of such types and maintained according to the requirements of generally accepted principles of accounting.

B. The Chief of Police or any other authorized representative of the City shall have the right to inspect, conduct a compliance examination, review, audit, or photocopy bingo licensee records as described in subsection (A) of this section at any reasonable time and the license holder shall fully cooperate by making such records and photocopies thereof available to the Chief of Police upon demand. The licensee shall deliver the records for the purpose of a compliance examination, review, audit, inspection, or for photocopy to the office of the Chief of Police during reasonable hours upon demand of the Chief of Police.

C. Compliance examinations shall be conducted by the Chief of Police of bingo licensee records described in subsection (A) of this section not less frequently than annually, for each twelve (12) months of each licensee’s operation.

D. If the organizational structure of the licensee is such that an umbrella organization disburses bingo proceeds to member organizations, the records described in subsection (A) of this section which are subject to examination, review, audit, inspection, or photocopy shall include both the bingo records of the umbrella organization and its member organizations. For purposes of this section, an “umbrella organization” is defined as a nonprofit, income tax exempt, charitable organization which is organized for the purpose of providing financial support to other nonprofit, income tax exempt, charitable organizations. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]

4.21.080 Retention of records.

The licensee shall keep and preserve the records described in EGMC Section 4.21.075(A) for the following period of time, whichever occurs later:

A. Three (3) years;

B. Until completion of a compliance examination; or

C. Until the administrative or judicial appeal process, whichever is applicable, is final, if the license has been suspended, revoked, or a renewal denied. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]

4.21.083 Limitation of involvement in bingo.

The bingo licensee shall not allow another person, sole proprietorship, partnership, corporation, unincorporated association, cooperative, joint venture or other individual or entity to organize, manage, supervise, conduct, control or otherwise participate in or influence either the operation of its bingo game or the promotion thereof. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]

4.21.085 Prohibition of financial interest in bingo.

A. No individual, corporation, partnership, or other entity except the bingo licensee shall hold a financial interest in the conduct of any bingo game. A financial interest includes, but is not limited to, situations in which a bingo licensee maintains accounts payable to a parlor licensee for parlor rents and other costs beyond the next day of bingo operation, or maintains accounts payable to a bingo supplier beyond thirty (30) days of the invoice date or ten (10) days of the statement date, whichever occurs later. For purposes of this subsection, “invoice date” is defined as the date of delivery of such supplies and “statement date” is defined as the date within thirty (30) days of the delivery of supplies.

B. A licensee that has not paid its supplier account(s) or parlor account(s) within the period provided in subsection (A) of this section shall not purchase additional supplies from any supplier or rent or incur other costs from any parlor until all accounts are brought into compliance with the required payment periods provided in subsection (A) of this section. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]

4.21.090 Exclusive operation by licensee.

Only the bingo licensee shall operate bingo games or participate in the promotion, supervision, or any other phase of the games. Bingo games shall be operated and staffed solely by members of the licensee; except that the licensee may retain or employ an off-duty law enforcement officer or security personnel at such bingo games. Such members shall not receive a profit, wage, salary, or compensation from bingo proceeds or bingo profits for services rendered from any bingo game. The term “compensation” as used in this section includes, but is not limited to, cash, bingo paper, pull tabs, coupons, redeemable vouchers, discounts, or payment-in-kind. Neither the provisions of Sections 326.5(b) and (h) of the Penal Code nor those of this section shall be deemed violated if a bingo licensee reimburses members staffing the games for the actual and necessary costs which they incur in providing services associated with the conduct of the games. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]

4.21.095 Staff member identification.

Any person participating in the operation, conduct or staffing of any bingo game shall wear on his or her outside clothing, in plain view, an identification insignia or badge measuring not less than two and one-half inches by three and one-half (2.5" x 3.5") inches in size and specifying the name and title of such person and the name of the licensee organization. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]

4.21.100 Attendance limited to occupancy capacity.

A. 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 the game is conducted as determined by the Cosumnes Community Services District Fire Department in accordance with applicable laws and regulations.

B. It is unlawful for a licensee to knowingly authorize or permit and unlawful for any person to reserve seats or space where bingo games are conducted. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]

4.21.105 Licensing of premises.

The license issued under this chapter shall authorize the holder thereof to conduct bingo games only on such property the address of which is stated in the application. In the event the described property ceases to be used for the conduct of bingo games by the licensee, the license shall have no further force or effect. The bingo licensee shall file a new application, and such application shall be processed pursuant to the provisions of this chapter, in order for the eligible organization to conduct bingo games at a new location or address. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]

4.21.110 Operating rules.

A. Each licensee shall formulate, publish and post in a conspicuous place at the location of the bingo games written rules by which the bingo games are conducted and which recite the prohibitions described below. It is unlawful for a licensee to knowingly authorize, permit, and unlawful for any person to do any of the following:

1. Provide or award total prizes for each separate bingo game which exceeds Five Hundred and no/100ths ($500.00) Dollars in cash or kind, or both. The cumulative prizes awarded for a “progressive” or other similar bingo game shall not exceed Five Hundred and no/100ths ($500.00) Dollars in cash or kind or both, for each separate bingo game;

2. Limit attendance or participation in such games to members of the licensee or otherwise deny attendance or participation to any member of the general public who complies with the rules of the game and conducts himself or herself in an orderly and law-abiding manner;

3. Participate in a bingo game, if the participant is under the age of eighteen (18) years old;

4. Participate in a bingo game where alcoholic beverages are consumed in the room where the bingo games are conducted or if the participant is under the influence of alcohol;

5. Participate in bingo games, unless personally present at the location of the games at the time the games are being conducted.

B. In this section “participate” is defined as including, but not limited to, the handling of bingo supplies or receipts during any bingo session. [Ord. 17-2017 §4, eff. 8-11-2017; Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]

4.21.115 Location of games.

A licensee shall conduct bingo games only on property owned or leased by it, or property whose use is donated to the licensee, and which property is used by the licensee for performance of the charitable purposes for which the organization is organized. Nothing in this section shall be construed to require that the property be owned or leased exclusively by or donated exclusively to such organization. The requirements of the provisions of Section 326.5(f) of the Penal Code and those of this section shall be deemed satisfied if the licensee conducts regular business meetings or other activities consistent with its charitable purposes, in addition to bingo games, upon the property which it owns, leases, or uses as a donee. A licensee need not use the property exclusively for activities which fulfill its charitable purposes or objectives. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]

4.21.120 Limitation of bingo hours and sessions.

A. No bingo licensee shall conduct bingo games between the hours of 2:00 a.m. and 10:00 a.m. of the same day.

B. Except as provided in this subsection, no bingo licensee shall conduct more than one (1) bingo session per week. To conduct more than one (1) bingo session per week, a licensee shall secure the permission of the Chief of Police. The licensee shall have a valid, unrevoked, and unexpired license to conduct such bingo games and shall submit a written application with information therein as required by the Chief of Police. The Chief of Police shall authorize the bingo licensee to conduct more than one (1) session per week unless the Chief of Police makes one (1) or more of the following findings in writing:

1. The bingo licensee is not an organization exempt from the payment of the bank and corporation tax as provided by Sections 23701(a), 23701(b), 23701(d), 23701(e), 23701(f), 23701(g) and 237011 of the Revenue and Taxation Code, or is not a mobile home park association, or a senior citizens organization; and, for at least two (2) continuous years immediately preceding filing of the application for additional sessions, has not existed and operated within the City. The two (2) year consecutive period of existence and operation provided for herein need not include exemption from payment of the bank and corporation tax;

2. The bingo licensee has failed, during the immediately preceding two (2) year period, to raise at least Twenty-Five Thousand and no/100ths ($25,000.00) Dollars each year through public and private solicitations (including publicly funded grants and recreational and other fund-raising activities, but exclusive of any revenue from the sponsorship of bingo games), and has failed to expend at least Sixteen Thousand and no/100ths ($16,000.00) Dollars during each of the preceding two (2) years on charitable causes; or, the bingo licensee has not conducted bingo games in the City for the preceding twelve (12) months;

3. The bingo licensee has failed to equal or exceed, and has failed to maintain for at least six (6) consecutive months, at least seventy-five (75%) percent of the average percentage net profit available from bingo in the City as determined and defined by the Chief of Police from, but not limited to, bingo records of the licensee community during the previous City fiscal year;

4. The bingo licensee does not have enough volunteers to staff the extra sessions;

5. The bingo licensee’s accounting records have never undergone a compliance examination by the Chief of Police or there exist uncorrected deficiencies from a compliance examination conducted by the Chief of Police;

6. The additional sessions will be detrimental to public safety, health or welfare; or

7. The licensee has failed to comply with other provisions of this chapter, the City regulations adopted pursuant to this chapter, Section 326.5 of the Penal Code, or any other applicable State of California, City of Elk Grove, Federal law, or administrative rule or regulation.

C. The Chief of Police shall notify the bingo licensee in writing of the denial of a licensee’s application to conduct more than one (1) bingo session per week and shall in such notice state the reason(s) for the denial and that the licensee has fifteen (15) days from the date of service of such written notice of denial to file an appeal of such denial. Upon timely request by the licensee, the appeal hearing process and related procedures shall proceed pursuant to the provisions of EGMC Sections 4.10.115 through 4.10.130. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]

4.21.125 Location restriction.

A. Notwithstanding the permission contained in a special business license pursuant to EGMC Section 4.21.105, and notwithstanding any provision of this chapter or EGMC Chapter 4.10 to the contrary, it shall be unlawful for any person who holds a special business license authorizing the operation of bingo games to conduct bingo games at a place which is or would by virtue of the conduct of such games be or become a bingo parlor, as defined by EGMC Section 4.22.010, unless the bingo parlor has been authorized by a valid unexpired, unrevoked special business license issued pursuant to the provisions of EGMC Section 4.22.030 and EGMC Chapter 4.22.

B. Notwithstanding any other provision of this chapter or EGMC Chapter 4.10 to the contrary, violation of the provisions of subsection (A) of this section shall constitute grounds for revocation of a special business license authorizing the operation of bingo games issued pursuant to the provisions of this chapter and EGMC Chapter 4.10. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]

4.21.130 Temporary suspension of license pending opportunity for hearing.

The Chief of Police shall have the authority to temporarily suspend the bingo license by ordering in writing that the licensee immediately cease and desist any further operations of any bingo game pending expiration of the time for appeal or exhaustion of an appeal pursuant to the provisions and notice procedure of EGMC Section 4.10.145 if the Chief of Police finds that such temporary suspension is necessary in order to protect against a serious and immediate threat to the health or safety of the public caused by exercise of the license, and one (1) of the following occurs:

A. The bingo licensee is conducting a bingo game in violation of any of the provisions of this chapter, Section 326.5 of the Penal Code, the City regulations adopted pursuant to this chapter, or any other applicable State of California, City of Elk Grove, Federal law, or administrative rule or regulation;

B. The bingo licensee has not made available for the conduct of a compliance examination, audit, review, inspection, or for photocopying, at any reasonable time upon the demand of the Chief of Police, all records necessary to determine or establish compliance with the provisions of this chapter, City regulations adopted pursuant to this chapter, Section 326.5 of the Penal Code, or any other applicable State of California, City of Elk Grove, Federal law, or administrative rule or regulation; or

C. The bingo licensee has not kept records as required by the Chief of Police, this chapter, Section 326.5 of the Penal Code, City regulations adopted pursuant to this chapter, or any other applicable State of California, City of Elk Grove or Federal law, administrative rule or regulation; or, has not kept records necessary to determine compliance with applicable laws and administrative rules and regulations pursuant to generally accepted principles of accounting when such records are not prescribed to be kept in any specific manner or type by the Chief of Police, this chapter, City regulations adopted pursuant to this chapter, Section 326.5 of the Penal Code, or any other applicable State of California, City of Elk Grove, Federal law, or administrative rule or regulation. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]

4.21.135 Notice of temporary suspension and appeal – Appeal of underlying suspension or revocation.

A. The temporary suspension shall be effective no sooner than twenty-four (24) hours following the time and date of delivery of the notice thereof as is provided in EGMC Section 4.10.145 and the procedures for appeal and notice of temporary suspension shall be as prescribed in EGMC Section 4.10.145.

B. Upon timely request by the licensee, the appeal hearing process and related procedures of a revocation or suspension of its license pursuant to EGMC Section 4.10.135 shall proceed pursuant to the provisions of EGMC Sections 4.10.115 through 4.10.155. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]

4.21.140 Conducting bingo games after temporary suspension or suspension.

Any person who continues to conduct a bingo game after temporary suspension pursuant to EGMC Section 4.21.130, or suspension pursuant to EGMC Section 4.10.135, is guilty of a misdemeanor. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]

4.21.150 Receiving bingo proceeds during suspension or revocation.

Notwithstanding the provisions of EGMC Section 4.10.145, an organization whose license has been temporarily suspended, suspended, or revoked cannot receive bingo proceeds from any source during the period of temporary suspension, suspension, or revocation. A violation of this section shall result in a permanent license revocation to the organization involved. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]

4.21.155 Purchases from bingo suppliers.

It is prohibited for bingo licensees to use bingo paper and pull tabs purchased from suppliers that are not licensed to conduct a bingo supply business by the City pursuant to EGMC Chapter 4.23. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]

4.21.160 Injunction.

The City may bring an action in a court of competent jurisdiction to enjoin a violation of Section 326.5 of the Penal Code, of this chapter, City regulations adopted pursuant to this chapter, or any other applicable State of California, City of Elk Grove, Federal law, or administrative rule or regulation. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]

4.21.165 Regulation of games and equipment.

The Chief of Police may prescribe such regulations with respect to the conduct of the games and the equipment used by the licensee as deemed necessary to ensure the fairness and integrity of the games, and the accountability of the funds collected. Violation of such regulations shall constitute grounds for revocation of the special business license, as set forth in this chapter and EGMC Chapter 4.10. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]

4.21.167 Computerized equipment.

A. Except as provided in subsection (B) of this section, it shall be unlawful for organizations licensed under this chapter to:

1. Permit the use of machines, devices, or equipment that is computerized, electronic, or mechanical, in a bingo game;

2. Operate, or allow to be played, any form of bingo in which the numbers to be called are selected by electronic means rather than by random selection of numbered balls from a pool of game balls.

B. Electronic Bingo Aid.

1. Purpose. The purpose of this subsection (B) is not to permit the use of all electronic bingo aids in bingo. The purpose is to permit the bingo licensee to use an electronic bingo aid on the conditions and specifications set forth in this subsection (B). It is contemplated that an electronic bingo aid will include individual units or components to be used by players and that these units or components will be activated by the organization licensed to conduct bingo for a player’s operation. These individual player units or components are handheld or desktop devices used in conjunction with bingo cards. It is contemplated that an electronic bingo aid will permit a bingo player to input into an activated individual player unit or component randomly selected numbers called by the bingo licensee in order to match such numbers against programmed information to identify a winning card. The programmed information reflects the exact configurations of the bingo cards sold to and played by the player. The electronic bingo aid is not to alter the bingo cards. The electronic bingo aid is to be used in conjunction with bingo cards in order to assist the player in identifying a winning card. The electronic bingo aid is not to be used as an electronic or computerized game of bingo, or as a substitute for required bingo cards, or as a substitute for any other requirements of bingo as provided in this chapter or Section 326.5 of the Penal Code.

2. An electronic bingo aid may be used by bingo players in conjunction with bingo cards to assist in the identification of a winning card if the bingo licensee complies with the conditions set forth in this section, and if the organization complies with all other required provisions of this chapter and Section 326.5 of the Penal Code. Violation of any or all of such provisions and conditions shall constitute grounds for revocation, suspension, or denial of the special business license to conduct bingo games, pursuant to the procedures set forth in this chapter and EGMC Chapters 4.02 and 4.10.

3. An electronic bingo aid is permitted only as a means of assisting a player to mark, otherwise register, or record numbers selected at random in order to identify a winning bingo card. An electronic bingo aid shall not replace or alter the bingo cards. An electronic bingo aid shall not interfere or interact with the element of chance in the game. The player shall have in his or her possession at all times during the game bingo cards with configurations that were sold to the player by the bingo licensee for use with the electronic bingo aid that correspond exactly to such bingo card configurations programmed into the electronic bingo aid. The bingo cards and the individual unit or component of the electronic bingo aid used by the player shall be kept separate and apart and in public view on the tabletop during the game.

4. Players shall manually input numbers called by the bingo licensee into the individual player-operated units or components of the electronic bingo aid, and automatic daubing shall not be permitted. The portion of the electronic bingo aid system in the immediate physical possession and operation of the bingo licensee, and the individual player-operated units or components of the electronic bingo aid used by a player, shall be able to identify a winning card during the game. Verification by the bingo licensee of a winning combination shall be made based on the bingo card and not solely on the electronic bingo aid. Players shall notify the game operator or caller of a winning pattern of bingo.

5. The electronic bingo aid, including the individual player-operated units or components of the electronic bingo aid, shall be enabled for play solely by the bingo licensee, and only on the premises where the games are conducted. The electronic bingo aid shall be programmed either by the bingo licensee or by a bingo supplier licensed pursuant to EGMC Chapter 4.23 at the direction and as specified by the bingo licensee. A copy of any change in the program of a programmed electronic bingo aid shall be submitted to the Chief of Police. The same card configurations shall be programmed into the electronic bingo aid as are sold to the player. All individual player-operated units or components of the electronic bingo aid shall be rented or otherwise provided to a player solely by the bingo licensee.

6. Prior to giving physical possession of the individual player-operated unit or component of the electronic bingo aid to the player, the bingo licensee shall receive payment from the player for the number of games requested by the player that are programmed into the electronic bingo aid. The bingo licensee shall at the time of payment issue to the player: an individual player-operated unit or component of the electronic bingo aid; the bingo cards sold to the player corresponding exactly to the bingo number pattern for each card face thereon that is programmed into the electronic bingo aid; and a receipt indicating the amount paid, the number of faces and games sold to the player and activated in the electronic bingo aid, and the serial number of each card face sold to the player and activated by the game.

7. The Chief of Police shall by administrative regulation determine the maximum number of bingo card faces that may be programmed into a player-operated unit or component of an electronic bingo aid during a bingo game, but such number shall in no event exceed seventy-two (72) bingo card faces.

8. Only one (1) player-operated unit or component of an electronic bingo aid may be used by a bingo player during a bingo game.

9. A particular type of electronic bingo aid shall not be used by a bingo licensee until the bingo licensee has demonstrated the electronic bingo aid to the Chief of Police, and such electronic bingo aid has been inspected and approved by the Chief of Police.

10. Each player electing to use the electronic bingo aid shall have an equal opportunity to do so. The bingo licensee shall distribute each player-operated unit or component of the electronic bingo aid for play on a random basis; first come, first served. No particular player-operated unit or component of the electronic bingo aid shall be reserved for any player. The bingo player is prohibited from selecting the player-operated unit or component of the electronic bingo aid.

11. Only a bingo supplier licensed by EGMC Chapter 4.23 may remove the electronic bingo aid from the premises where the games are conducted. Removal may be for repair or for use by another organization licensed by this chapter to conduct bingo. A record shall be maintained by the bingo licensee of: all electronic bingo aids removed from such premises; the name of the person and business, if any, who has taken the device from such premises; the site address where taken; the return date, if any; and disposition of the electronic bingo aid.

12. Accounting records pertaining to electronic bingo aids, including the internal accounting system of the electronic bingo aid, shall be retained as prescribed by EGMC Section 4.21.080. The electronic bingo aid system must have a dial-up capability so the Chief of Police may remotely monitor the operation and the internal accounting system of the electronic bingo aid at any time. The electronic bingo aid shall contain a point of sale accounting system that allows it to track all financial activity for the bingo session. The electronic bingo aid shall at a minimum contain and keep an accounting system that records the serial number of each bingo card or bingo face sold, the price of each card sold, and the total amount of the electronic bingo aid proceeds from each session. The accounting information must be secure and shall not be accessible for alteration. The electronic bingo aid’s capabilities and information must not be lost through power failure or other disruption during the session.

13. The bingo licensee shall not conduct bingo games where a player is required to use an electronic bingo aid. During all games, the use of an electronic bingo aid shall be at the option of the bingo player. The bingo licensee shall permit all players to play in all bingo games without the use of an electronic bingo aid.

14. The bingo licensee shall require a player electing to use an electronic bingo aid to purchase no less than the licensee’s minimum number buy-in of bingo cards for use without an electronic bingo aid.

15. The portion of the electronic bingo aid system in the immediate physical possession and operation of the bingo licensee shall have the capability during the game to print and may print the configurations of the bingo cards that are programmed into the electronic bingo aid. The player-operated units or components of the electronic bingo aid shall not have such capability and shall not print configurations of the bingo cards.

16. The electronic bingo aid, including related circuitry, shall be sealed and secured in order to prevent unauthorized removal, additions, changes, or other alterations to the data within such electronic bingo aid.

17. The Chief of Police may, upon demand, examine and inspect the electronic bingo aid, or any player-operated unit or component of the electronic bingo aid, during the conduct of the games if the Chief of Police detects or discovers any problem with such equipment that affects the integrity of the bingo game or such equipment. The bingo licensee shall immediately cooperate and comply upon the Chief of Police’s demand for such examination and inspection. Such examination and inspection shall include immediate access to the electronic bingo aid, player-operated units or components of the electronic bingo aid, and inspection of all associated parts and systems, as applicable, and may involve the immediate removal of the electronic bingo aid, player-operated units or components of the electronic bingo aid, or related system or parts, as applicable, from the game premises for further testing.

18. If, at any time, the Chief of Police detects or discovers any malfunction with an electronic bingo aid, or any player-operated unit or component of the electronic bingo aid, that affects the integrity of such equipment or the bingo game, the Chief of Police may order the bingo licensee to cease the use of the electronic bingo aid or a player-operated unit or component of the electronic bingo aid, as applicable, immediately. The bingo licensee shall comply immediately with such Chief of Police’s order.

19. If the bingo licensee detects or discovers any malfunction or any problem or occurrence with the electronic bingo aid, or the player-operated unit or component of the electronic bingo aid, that affects the security or the integrity of the bingo game or such equipment, the bingo licensee shall cease immediately the use of the electronic bingo aid or affected player-operated unit or component of the electronic bingo aid, as applicable. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]

4.21.170 False or misleading advertising.

It shall be unlawful for any licensee to make or disseminate or cause to be made or disseminated before the public in this City, in any newspaper or other publication, or any advertising device, or any other manner or means whatsoever, any statement concerning any such bingo game, including, but not limited to, the amount of prizes to be awarded or distributed in any game, which is untrue or misleading, and which is known or which, by the exercise of reasonable care, should be known to be untrue or misleading. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]

4.21.175 Receipt of profit by a person and penalty for violation of this chapter.

A. It is a misdemeanor under Section 326.5(b) of the Penal Code of the State of California for any person to receive or pay a profit, wage, or salary from any bingo game authorized under this chapter for activities related to bingo or the bingo operation. The expenditure of any revenues or proceeds derived from bingo to pay employees, members, or contractors of licensed organizations for services associated with the planning, organization, management, operation or staffing of bingo games, or related to bookkeeping, accounting, auditing or technical advice concerning the handling or disposition of such revenues or proceeds is prohibited. A violation of this prohibition is punishable by a fine not to exceed Ten Thousand and no/100ths ($10,000.00) Dollars payable to the general fund of the City of Elk Grove.

B. In addition to other applicable provisions of this title, a violation of any of the provisions of this chapter, City regulations adopted pursuant to this chapter, Section 326.5 of the Penal Code, or any other applicable State of California, City of Elk Grove, Federal law, or administrative rule or regulation, shall be grounds for the Chief of Police to suspend, revoke, or deny the renewal of a special business license to conduct bingo games issued pursuant to the provisions of this chapter and EGMC Chapter 4.10. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]

4.21.180 Discontinuance of bingo games.

Bingo licensees who discontinue conducting bingo games shall follow the accounting requirements prescribed by the Chief of Police in the City regulations adopted pursuant to this chapter. Their failure to do so shall result in denial of a subsequent license to conduct bingo games for two (2) years from the last day a bingo game was conducted. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]