Chapter 5.15 BINGO GAMES FOR CHARITY

The regulations following related to the conduct of bingo games for charity are enacted pursuant to the authority contained in California Constitution Article IV, Section 19, and Cal. Penal Code § 326.5. (Ord. 1713 § 1, 2-4-86. 1990 Code § 3-8800.)

5.15.020 Definitions.

For the purpose of this chapter, unless the context clearly requires a different meaning, the words, terms and phrases hereinafter set forth shall have the meanings given them in this section.

(a) “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.

(b) “Bingo manager” means a member of the “permittee” organization designated as being responsible for the conduct and operation of that organization’s bingo game(s) and for the compliance with all applicable laws, rules, and regulations promulgated thereunder.

(d) “License authority” means the revenue collection supervisor of the city or any other person designated by the city manager to be the license authority charged by the city manager to carry out the duties of license authority pursuant to this chapter.

(e) “Member” means an individual who is an officer or has meaningful membership (not a member for bingo purposes only) in the nonprofit organization whether pursuant to its articles of incorporation, constitution, charter or other instrument of formation or association, its bylaws or other written instrument formally adopted pursuant thereto.

(f) “Nonprofit, charitable organization” means an organization exempted from the payment of the bank and corporation tax by Cal. Rev. & Tax. Code § 23701a, 23701b, 23701d, 23701e, 23701f, 23701g, or 23701l, or a mobile home park association, or a senior citizens organization.

(g) Recreational Bingo. (Reserved.)

(h) “Senior citizens organization” means an organization whose members are at least 50 years of age.

(i) “Unrelated members” means persons who are not related by birth, marriage, adoption or other legally binding arrangement. (Ord. 1713 § 1, 2-4-86; Ord. 1770 § 1, 4-21-87. 1990 Code § 3-8801.)

5.15.030 Organizations eligible for permit.

Nonprofit, charitable and senior citizens organizations and mobile home park associations are eligible to apply to the license authority for a permit to conduct bingo games in the city in the manner permitted by Cal. Penal Code § 326.5 and by these regulations. (Ord. 1713 § 1, 2-4-86. 1990 Code § 3-8802.)

5.15.040 Application for permit.

(a) Eligible organizations desiring to obtain a permit to conduct bingo games in the city shall file an application in writing therefor with the license authority upon forms to be provided by the license authority. Applicants shall also file with said license authority a certificate from the state of California franchise tax board that will show that the organization is currently exempt from payment of the bank and corporation tax by Cal. Rev. & Tax. Code § 23701a, 23701b, 23701d, 23701e, 23701f, 23701g or 23701l, or proof the organization is a senior citizens organization or a mobile home park association.

(b) Applications shall be filed not less than 60 days before the date on which the game is to be played or the series of games is to commence. When leased, rented or donated facilities are to be utilized, the applicant must provide a valid agreement document, signed by both parties to the agreement, outlining the conditions under which the facility is to be utilized, cost considerations, conditions for revocation or cancellation, liabilities assumed by the lessee/renter or recipient of donated facilities and use to which the facility will be put, including frequency and duration of uses. The owner of rented, leased or donated facilities where bingo games are conducted shall have no financial interest in the permittee organization.

(c) Initial applications and annual renewal applications shall list the name (business/individual) and address of the applicant’s supplier of bingo/pull-tab supplies and related materials. (Ord. 1713 § 1, 2-4-86. 1990 Code § 3-8803.)

5.15.050 Applicant must be qualified.

(a) No permit shall be issued to any organization unless such applicant is a nonprofit, charitable, senior citizens organization or mobile home park association as defined by Section 5.15.020(f) and its application conforms to the requirements, terms and conditions of Cal. Penal Code § 326.5, as amended, and these regulations.

(b) If a member of an eligible organization applying for a permit has been convicted of violating Cal. Penal Code § 326.5 or the provisions of these regulations or has been convicted of any crime involving the theft of money and/or property, said member shall have no control over the operation or participate in the staffing of the authorized bingo game(s) or the disposition of proceeds derived therefrom. (Ord. 1713 § 1, 2-4-86. 1990 Code § 3-8804.)

5.15.060 Contents of application.

Application for a bingo permit shall contain the following:

(a) The name of the applicant organization and a statement that applicant is a nonprofit, charitable, senior citizens organization or mobile home park association as defined by Section 5.15.020(f).

(b) The names (printed/typed) and signatures of at least two officers, including the presiding officer, of the organization. Said application shall be signed under penalty of perjury.

(c) A list of all members of the organization who will operate the bingo games, including full names, addresses and dates of birth.

(d) The particular property within the city, including the street number, owned or leased by the applicant, used by such applicant for the performance of the purposes for which the applicant is organized, on which property bingo games will be conducted, together with the occupancy capacity of such place.

(e) Proposed days of week and hours of day for conduct of bingo games.

(f) Certification that the applicant agrees to conduct bingo games in strict accordance with the provisions of Cal. Penal Code § 326.5 and these regulations, as they may be amended from time to time, and agrees and understands that the permit to conduct bingo games is subject to suspension or revocation pursuant to this chapter upon violation of any such provisions.

(g) The initial or renewal permit application fee as fixed by the city council by resolution shall accompany the application. No fee shall be assessed against a senior citizens organization or for the playing of recreational bingo. (Ord. 1713 § 1, 2-4-86. 1990 Code § 3-8805.)

5.15.070 Application processing/investigation of applicant.

(a) Upon receipt of the completed application and the required fee, the license authority shall refer the application to interested officials of the city, including, but not limited to, the city manager, city attorney, chief building official, chief of police, planning manager and fire chief, for investigation as to whether or not all the statements in the application are true and whether or not the property of the applicant qualifies as property on which bingo games may lawfully be conducted, as to fire, occupancy and other applicable restrictions.

(b) A bingo application may be denied if:

(1) All requirements of Cal. Penal Code § 326.5 are not met.

(2) All requirements of these regulations are not met.

(3) The use of the premises, as applied for, violates zoning, building and safety, fire, health or other regulations contained in the municipal code.

(c) The license authority shall approve or deny the application for a permit within a reasonable time after receipt of said application.

(d) Upon being satisfied that the applicant is fully qualified, under the law, to conduct bingo games in the city, the license authority shall issue a permit to said applicant, which shall contain the following information:

(1) The name and nature of the organization to whom/which the permit is issued.

(2) The address where bingo games are authorized to be conducted.

(3) The occupancy capacity of the room(s) in which bingo games are to be conducted.

(4) The date of expiration of such permit.

(5) Such other information as may be necessary or desirable for the enforcement of the provisions of these regulations.

(e) The permit issued shall be for a term of one year from the date of issuance, subject to an initial fee and an annual renewal fee, as established by resolution of the city council.

(f) An applicant organization denied the issuance of an initial or renewal bingo permit may file a notice of appeal with the city manager within 10 days after the notification of said denial. The notice of appeal shall set forth in detail the grounds upon which the appeal is based.

(g) Within 15 days after receipt of the notice of appeal, the city manager or a hearing officer designated by the city manager shall conduct a hearing to receive testimony and evidence regarding the appeal. At the appeal hearing the applicant organization may present testimony and examine witnesses in support of its contention that said application should not be denied.

(h) The city manager or designated hearing officer shall render a report and final determination within 30 days after conclusion of the hearing.

(i) The appellant shall be notified of the final determination within 10 days after said final determination is rendered. (Ord. 1713 § 1, 2-4-86; amended during 2012 reformat. 1990 Code § 3-8806.)

5.15.080 Exclusive use of permit.

A permit shall not be transferable from one organization to another, nor from one location to another, nor shall a permittee organization hold bingo games jointly with and for the announced benefit of a nonpermittee organization. (Ord. 1713 § 1, 2-4-86. 1990 Code § 3-8807.)

5.15.090 Inspection.

Any peace officer of the city shall have free access to any bingo game authorized under these regulations. The permittee shall have the bingo permit, the list of approved staff, and proof of ownership of the bingo equipment available for inspection at all times during any bingo game. It shall be unlawful for any person to interfere, block doorways, or otherwise impede the efforts of a peace officer to make such inspections. (Ord. 1713 § 1, 2-4-86. 1990 Code § 3-8808.)

5.15.100 Equipment.

The permittee shall own the gaming equipment necessary to conduct the bingo games. No gaming equipment shall be rented, nor shall any fee be paid to anyone for such gaming equipment used in bingo games. Proof of ownership shall be displayed to any peace officer of the city upon request. Bingo equipment owned by a permittee organization shall not be rented, leased or loaned to another organization for use in conducting bingo games. (Ord. 1713 § 1, 2-4-86. 1990 Code § 3-8809.)

5.15.110 Maximum amount of prizes.

Prize limits are established as follows:

(a) The total value of prizes awarded during the conduct of any bingo game shall not exceed $250.00 in cash or kind, or both, for each separate game which is held.

(b) Prizes given in promotional type games or drawings shall not exceed $250.00 in cash or kind, or combination of both, for each separate prize given. As relates to promotional games, drawings and door prizes, permittee organizations must advertise “No Purchase Necessary” to be eligible for prizes. An admission charge requirement would be deemed a “consideration” of fees paid to be eligible to participate and thus would be a violation of Cal. Penal Code § 319, “Lottery.” Each person participating in promotional drawings or games shall have an equal chance to win irrespective of whether any bingo cards or pull-tabs have been purchased or the numbers of either purchased. (Ord. 1713 § 1, 2-4-86. 1990 Code § 3-8810.)

5.15.120 Display of permit, ordinance and permittee rules.

The bingo permit, a copy of these regulations and the permittee’s rules of bingo operation shall, at all times, be posted conspicuously at the public entrance to the room(s) in which bingo is played. The posted documents shall be readable, legible and accessible to all participants and others. (Ord. 1713 § 1, 2-4-86. 1990 Code § 3-8811.)

5.15.130 Profits and proceeds, separate fund or account – Use.

(a) All funds from bingo game(s), to include funds from pull-tabs, shall be deposited into a special bingo bank account identified on the permittee’s application and shall not be commingled with any other funds.

(b) Funds deposited in such special bank account may, however, be transferred subsequently to another account or fund of the permittee organization or to another account or fund of any other organization or entity associated or affiliated therewith for purposes of implementing charitable expenditure of bingo proceeds, provided: (1) no moneys from any source other than bingo and/or pull-tabs are placed in such fund; (2) the purpose of such fund is already designated as a part of the title or subtitle of the fund and in the books and records of the organization; (3) expenditures therefrom for such purpose are permitted under the provisions of Cal. Penal Code § 326.5. No person shall play the game(s) of bingo on credit. All participants must have purchased their bingo cards.

(c) Permittee organizations exempt from payment of the bank and corporation tax by Cal. Rev. & Tax. Code § 23701d shall use profits from bingo games only for charitable purposes.

(d) Permittee organizations exempt from payment of bank and corporation taxes by code sections other than Cal. Rev. & Tax. Code § 23701d shall use proceeds of bingo games only for charitable purposes, except as follows:

(1) Such proceeds may be used for prizes.

(2) A portion of such proceeds, not to exceed 20 percent of the proceeds after the deduction for prizes or $1,000 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.

(e) The permittee 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 by these regulations. The permittee shall maintain all documents, receipts, bank statements (including canceled checks), bingo session tally sheets, etc., for a minimum of three years for audit purposes. The city, by and through its authorized officers/staff, shall have the right to examine and audit such records at any reasonable time, and the permittee shall fully cooperate with the city by making such records available. (Ord. 1713 § 1, 2-4-86. 1990 Code § 3-8812.)

5.15.140 Financial interest, permittee only.

No individual, corporation, partnership, or other legal entity except the permittee shall hold a financial interest in the conduct of such bingo game. (Ord. 1713 § 1, 2-4-86. 1990 Code § 3-8813.)

5.15.150 Exclusive operation by permittee.

(a) A bingo game shall be operated and staffed only by members of the permittee organization. No member shall receive a profit, wage or salary from any bingo game. Workers, to include callers, shall be bona fide active members of the permittee organization, as defined in Section 5.15.020(e). No member shall receive anything of value from any bingo game other than the actual winnings/prizes to which such person, playing such game or participating in drawings in good faith for himself alone, may be entitled as the result of such a game/drawing. Only the permittee organization and its bona fide volunteer members shall operate such game/drawing, or participate in the promotion, supervision or any other phase of such game. Salaried employees of the permittee organization shall not be involved with or participate in the operation or conduct of bingo games for charity. An exception would be clergy who are not paid with funds of the permittee organization. This subsection does not preclude the permittee organization employing security personnel who are not members of the authorized organization to provide surveillance and protection before, after and during bingo games conducted by the permittee organization.

(b) It is a misdemeanor under Cal. Penal Code § 326.5(b) for any person to receive or pay a profit, wage or salary from any bingo game authorized hereunder, a violation of which is punishable by a fine not to exceed $10,000, which fine will be deposited in the general fund of the city. Security personnel employed by the permittee organization may be paid from bingo proceeds.

(c) As used herein, “anything of value” has the same meaning as is provided for such phrase in Section 9.05.010. (Ord. 1713 § 1, 2-4-86. 1990 Code § 3-8814.)

5.15.160 Bingo games to be conducted on property utilized by permittee for its charitable purposes.

(a) A permittee 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 for an office or for the performance of the purposes for which the organization is organized; provided, however, that nothing in this section shall be construed to require that the property owned or leased or whose use is donated to the organization be used or leased exclusively by or donated exclusively to such organization. The permit issued hereunder 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 as an office or as a place for the performance of the purposes for which the permittee is organized, the permit shall have no further force or effect. A new permit may be obtained by an eligible organization upon application under these regulations when it again owns or leases property for an office or for the performance of the purposes for which the organization is organized.

(b) No permittee organization shall conduct more than two bingo sessions per week nor shall any facility be utilized for more than two bingo sessions per week. (Ord. 1713 § 1, 2-4-86. 1990 Code § 3-8815.)

5.15.170 Special event bingo.

Notwithstanding other provisions of this chapter to the contrary, a nonprofit, charitable organization applying for and receiving a permit authorizing no more than two series of bingo sessions (for a special event such as a neighborhood or community celebration), each series not exceeding two consecutive days (a maximum total of four days in the calendar year):

(a) May rent, lease or borrow gaming equipment to be used in the special event bingo sessions.

(b) May conduct the special event bingo sessions outdoors.

(c) May permit the consumption of beer or wine by adults who are participants in or observers of the special event bingo sessions.

(d) May permit persons under 18 to accompany parents or another supervisory adult who is participating in the special event bingo sessions.

(e) Shall, if the property being used for the conduct of the special event bingo is not used as a regular office or for the performance of the purposes for which the organization is originated, maintain on the property being used for the special event bingo sessions a prominently visible and accessible temporary office or activity such as a table or booth for the distribution of pamphlets or displays, providing an organization member to answer questions, performing services or giving demonstrations related to the nonprofit charitable purposes for which the organization is organized.

(f) Shall limit the prizes awarded to the winners of bingo board games, and promotional prizes. No pull-tabs shall be permitted.

In all other respects the permittee organization shall comply with all other provisions of this chapter and Cal. Penal Code § 326.5. (Ord. 1770 § 2, 4-21-87. 1990 Code § 3-8815.5.)

5.15.180 Summary suspension of permit.

(a) Whenever it appears to the chief of police or his/her designee that the permittee is conducting a bingo game in violation of any provision of this chapter, or any provision of Cal. Penal Code § 326.5, the chief of police or his/her designee shall have the authority to summarily suspend the permit for the day in question and order the permittee to immediately cease and desist any further operation of a bingo game on said day.

(b) It shall be unlawful for any person to conduct a bingo game after any summary suspension thereof under subsection (a) of this section. (Ord. 1713 § 1, 2-4-86; amended during 2012 reformat. 1990 Code § 3-8816.)

5.15.190 Revocation or suspension of permit hearing.

(a) The city manager may suspend a permit to conduct bingo games for a specific time period, or may revoke such permit, if he/she finds after having conducted a hearing on the matter that the permittee has been or is conducting bingo games in violation of Cal. Penal Code § 326.5 or in violation of any of the provisions of this chapter, or that the permit was obtained by fraudulent representation.

(b) No permit shall be revoked or suspended unless written notice of the alleged grounds for revocation or suspension and of the time, date and place when and at which a hearing on the matter shall be conducted shall have first been given at least 10 days before the date of the hearing by depositing in the United States mail such notice directed to the permittee at the address given in the application.

(c) At the hearing before the city manager the permittee or its authorized representative shall have the right to present evidence and a written or oral argument, or both, in response to any evidence presented in support of revocation or suspension of the permit.

(d) The city manager shall not be bound in the conduct of such hearing by the common law or statutory rules of evidence and procedure, but inquiry shall be made in such a manner as to ascertain the substantial rights of the public and the permittee. No decision shall be invalidated because of the admission into the record and the use as proof of any fact in dispute of any evidence not admissible under the common law or statutory rules of evidence.

(e) The city manager shall consider all evidence at the hearing. The hearing may, after being commenced within the time specified pursuant to subsection (b) of this section, be continued for good cause by the city manager from time to time.

(f) The city manager shall, after the conclusion of the hearing, make findings of fact based upon the evidence presented, and shall decide whether or not the permit shall be revoked or suspended. Within 20 days after the conclusion of the hearing the city manager shall notify the permittee in writing of such decision.

(g) An organization which has had a permit revoked shall not be eligible to receive another permit until the expiration of 12 months following the date of revocation, and/or denial of appeal if that right is exercised. (Ord. 1713 § 1, 2-4-86; amended during 2012 reformat. 1990 Code § 3-8817.)

5.15.200 Right of appeal.

Any person aggrieved by the action of the city manager or other officials of the city acting pursuant to this chapter may appeal such decision to the city council pursuant to Chapter 1.25. (Ord. 1713 § 1, 2-4-86. 1990 Code § 3-8818.)

5.15.210 Duty of city attorney.

The city attorney of the city may bring an action in a court of competent jurisdiction for the enjoinment of any violation of Cal. Penal Code § 326.5 or of any provision of this chapter. (Ord. 1713 § 1, 2-4-86. 1990 Code § 3-8819.)

5.15.220 Rules and regulations.

Following are rules and regulations relating to the conduct of bingo games in the city not otherwise covered elsewhere in these regulations and all bingo permittee organizations shall adhere thereto:

(a) A member of the permittee organization shall be designated as “bingo manager.” The bingo manager shall be responsible for the conduct and operation of the bingo game(s) and for the compliance with all applicable laws, rules and regulations promulgated. The bingo manager, or a designated alternate, shall be present at all times during the playing of any bingo game. The bingo manager shall not be a salaried (paid) officer or employee of the permittee organization.

(b) Any advertising or publicity for bingo shall include reference to the valid bingo permit number issued by the license authority.

(c) Bingo financial records, including all books and records of the permittee or any other organization or entity associated or affiliated with the permittee for purposes of disbursing charitable expenditures of bingo proceeds, shall at all times be available for inspection by the license authority, business tax auditor or a peace officer.

(d) No bingo game shall be conducted between the hours of 12:00 midnight and the following 10:00 a.m. No bingo session shall exceed six continuous hours and not more than one bingo session shall be permitted in one day.

(e) No person shall either serve or consume alcoholic beverages within the room(s) where bingo is being played during the hours of operation of any bingo game(s).

(f) No person under the age of 18 years of age shall participate or be permitted to participate directly or indirectly in any bingo game conducted or being played in any place where bingo games are authorized. No person under the age of 18 years of age shall enter or remain or be permitted to enter or remain in any place where bingo games are being played.

(g) At least two unrelated members, defined by Section 5.15.020(i), of the permittee organization shall jointly count all bingo and pull-tab proceeds. Such proceeds shall be deposited in the special bingo account in accordance with the provisions of Section 5.15.130. Members responsible for handling bingo funds in the conduct of bingo games for charity shall also not be responsible for administering funds of the permittee organization acting as treasurer or in like position.

(h) Equipment used and the method of playing bingo shall be such that each card shall have an equal opportunity to win each game.

(i) Bingo numbers selected in each game shall be announced simultaneously to all players and be displayed in full view of all players. An adequate public address system shall be utilized.

(j) Prior to commencing each game, the prize shall be announced and a facsimile of the type of game to be played shall be clearly displayed to all participants.

(k) All prizes shall be awarded immediately following each bingo game.

(l) All games shall be completed during each session.

(m) All bingo games shall be open to the public, not just to the members of the permittee organization. Notwithstanding, attendance at any bingo game shall be limited to the occupancy capacity of the room in which such game is conducted as determined by the fire chief of the city in accordance with applicable laws and regulations. A permittee shall not reserve or allow to be reserved seats or space for any person after 6:00 p.m. or within one-half hour before the start of the bingo session.

(n) No person shall be allowed to participate in a bingo game unless the person is physically present at the time and place in which the bingo game is being conducted.

(o) All disbursements from the special bingo bank account shall be by consecutively numbered checks signed by two authorized officers of the permittee and shall be payable to a specific individual or organization. There shall be written on each check the nature of the expenditure for which the check is drawn. No check shall be drawn to “cash” other than for the purpose of depositing such cash in a petty cash fund established and maintained for the payment of incidental bingo expenses. Such checks shall in that event be marked “for deposit to the petty cash fund.” Such petty cash fund shall not at any time contain more than $25.00 and a receipt shall be obtained for each disbursement, indicating the amount of cash disbursed, the individual or organization receiving the cash disbursement and the purpose for which the disbursement is made. (Ord. 1713 § 1, 2-4-86. 1990 Code § 3-8820.)