Chapter 5.16 BINGO GAMES

A. This chapter is adopted pursuant to the authority granted to the city under Section 19, Article IV of the California Constitution and Section 326.5 of the Penal Code to allow bingo games to be conducted for charitable purposes.

B. For the purposes of this chapter, “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. The game of bingo shall include cards having numbers or symbols which are concealed and preprinted in a manner providing for 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 such preprinted cards shall bear the legend “for sale or use only in a bingo game authorized under California law and pursuant to local ordinance.”

C. For the purposes of this chapter, “security” means the person(s) who protects bingo players, bingo licenses and volunteers from exposure to danger. The security persons shall be prohibited from engaging in selling or the distribution of bingo materials or otherwise participating in nonsecurity activities before, during and after the bingo session. This provision, however, does not preclude security from accompanying the licensee with the session’s net proceeds to a night depository immediately after the session. (Ord. 93-20 § 1: Ord. 84-13 § 1 (part))

5.16.020 License required.

No person, firm, corporation, organization or association shall engage in, carry on, maintain, conduct or cause to be engaged in, carried on, maintained or conducted a bingo game in the city without first having secured a license from the city manager in accordance with the requirements of this chapter, nor without complying with the regulations contained in this chapter pertaining to the operation of bingo games.

(Ord. 84-13 § 1 (part))

5.16.030 Organizations eligible.

Organizations which are exempted from the payment of the bank and corporations tax by Sections 23701(a), 23701(b), 23701(d), 23701(e), 23701(f), 23701(g) and 23701(l) of the Revenue and Taxation Code, mobilehome park associations and senior citizens’ organizations are eligible to apply for a license to conduct bingo games in the city.

(Ord. 84-13 § 1 (part))

5.16.040 Application for license.

The licensing authority shall be the city manager or his designee. An eligible organization seeking a license to conduct bingo games shall file a written application with the city manager on a form to be provided by the city manager. An applicant basing eligibility for a bingo license on an exemption from payment of the bank and corporate tax shall also submit with its application 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 in Sacramento showing such exemption.

(Ord. 84-13 § 1 (part))

5.16.050 Contents of application.

The application for a license shall contain the following:

A. The name of the applicant organization and written proof that the applicant is an eligible organization under Section 5.16.030;

B. The names and addresses of members of the applicant organization who will operate and staff the bingo games and the name of the member of the organization who will be primarily responsible for conducting the bingo games;

C. The description and street address of the property on which the bingo games will be conducted, together with the occupancy capacity of such place. Bingo games may be conducted only on qualified property as defined in Section 5.16.220;

D. Proposed days of the week and hours of the day for conduct of bingo games;

E. A statement that the applicant agrees to conduct bingo games in strict compliance with the provisions of Section 326.5 of the Penal Code and this chapter, as they may be amended from time to time;

F. The agreement by the applicant that upon issuance of a license, it will maintain adequate records and accounts which will be available for inspection by the city manager or his designee following written demand for inspection.

The application shall be executed by the presiding officer and one other office of the applicant organization and shall be made under penalty of perjury.

(Ord. 84-13 § 1(part))

5.16.060 License fee.

There is imposed an annual license fee of fifty dollars to be paid upon application for a license, one-half of which shall be refunded if the application is denied. Additionally, the city may collect such additional amounts as permitted by Penal Code Section 326.5. (Ord. 97-03 § 1: Ord. 93-20 § 3: Ord. 84-13 § 1 (part))

5.16.066 Records - audit.

A. Each 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 by this chapter. The records shall be of such types and maintained in such manner as may be prescribed by the finance director. The finance director or any other authorized representative of the city shall have the right to examine and audit such records at any reasonable time and the license holder shall fully cooperate by making such records available. Such audit may be conducted annually, for each twelve months of each licensee’s operation.

B. It shall be the duty of every licensee to keep and preserve, for a period of three years, all records, ledgers and accounts relating to inventory, proceeds and expenditures, and the distribution of all profits, derived from bingo games as are necessary to determine or establish compliance with the provisions of this chapter, which records, ledgers and actions shall be made available by the licensee to the finance director, or his or her designee, at all reasonable times upon demand. (Ord. 97-03 § 2: Ord. 93-20 § 4)

5.16.070 Investigations of application.

Upon receipt of the completed application and fee, the city manager shall make an investigation to determine if all of the statements in the application are true and shall refer the application to other interested departments of the city, including but not limited to the director of public works, chief of police, fire chief and the director of planning, to determine if the appropriate zoning ordinances and regulations, building code ordinances and regulations, and the provisions of the Uniform Fire Code have been or will be complied with. The chief of police may require the driver’s license number and take the fingerprints of any person whose name is included in the application where he determines it to be necessary in order to carry out his duties under this chapter.

(Ord. 84-13 § 1 (part))

5.16.080 Term of license.

The license shall be for a term of one year from the date of issuance and may be renewed upon application and payment of the fee.(Ord.84-13 § 1 (part))

5.16.090 Contents of license.

Upon being satisfied that the applicant is fully qualified under the law to conduct bingo games in the city, the city manager shall issue a license to the applicant, which shall contain the following information:

A. The name and nature of the organization to whom the license is issued;

B. The address where bingo games are authorized to be conducted and a statement that the property is either owned or leased by the organization or is property whose use is donated to the organization, and is property which is used by such organization for an office or the performance of the purposes for which the organization is organized;

C. Date of expiration of license.(Ord.84-13 § 1 (part))

5.16.100 Denial of license.

If the city manager determines that the applicant does not qualify for the issuance of a license, the application shall be denied and written notice of denial given to the applicant. The city manager shall not issue a license if it appears:

A. That any material statements made in the application are false;

B. That any person whose name is required to be contained in the license application has been convicted of any felony or misdemeanor involving moral turpitude, or any provision of this chapter within a period of five years;

C. That the applicant has engaged in any fraudulent transactions or enterprises which the city manager deems relevant to the application;

D. That the bingo games will be a fraud on the public;

E. That the bingo games will be conducted for private profit;

F. That the proposed method or methods of conducting bingo games will be contrary to the provisions of this chapter;

G. That the conduct of bingo games on the premises will not be compatible with the existing zoning and land uses in the neighborhood.

(Ord. 84-13 § 1 (part))

5.16.110 Posting license.

An organization licensed pursuant to this chapter shall not conduct or permit to be conducted a bingo game, unless the license is posted in a conspicuous place during the conduct of any bingo game. The licensee shall produce and exhibit the same, when applying for renewal thereof, and whenever requested to do so by any peace officer or officer authorized to issue, inspect or collect licenses.

(Ord. 84-13 § 1 (part))

5.16.120 Revocation of license.

A. Any license issued under the terms of this chapter may be revoked by the city manager if he determines that the activity authorized by the license has been or is being conducted, maintained or carried out in a manner contrary to or in violation of any law of the state, city or federal government, or any provision of this chapter. The city manager may also revoke the license upon any grounds which would justify a denial of a license.

B. Written notice of the license revocation shall be served upon the licensee within seven (7) days of the city manager’s decision. Such notice shall contain a brief statement of the grounds relied upon for revoking the license. Notice may be served either by personal delivery or by depositing the notice in the U.S. mail in a sealed envelope, postage prepaid, addressed to the organization to be notified at its address as it appears on its application for the license. (Ord. 2006-07, Amended, 06/06/2006; Ord. 84-13 § 1(part))

5.16.130 Appeal.

A. Within ten (10) days after receiving written notice, any licensee whose license has been revoked or applicant whose application for a license has been denied may request an appeal hearing by filing a written notice of appeal with the City Clerk. During the pendency of an appeal of a revocation, the license shall remain in effect.

B. If an appeal is not requested within ten (10) days, the decision of the City Manager shall be final. If a timely appeal is filed, a hearing on the appeal shall be set and conducted pursuant to section 21.03.060. The hearing officer’s decision shall be final.

C. Judicial review may be had by filing a petition pursuant to section 21.03.070. (Ord. 2006-07, Amended, 06/06/2006; Ord. 84-13 § 1(part))

5.16.140 Effect of denial or revocation.

When the City Manager has denied or revoked any license as provided for in this Chapter and the time for appeal has elapsed, or if the decision of the City Manager has been affirmed on appeal, no application for the same type of license at the same location shall be accepted from the applicant or license holder and no such license shall be issued to such organization for a period of one year after the action by the City Manager in denying or revoking the license. (Ord. 2006-07, Amended, 06/06/2006; Ord. 84-13 § 1 (part))

5.16.150 Transferability of license.

Any license issued under this chapter shall be nontransferable and shall be returned to the city manager within seven days of its expiration. (Ord. 84-13 § 1 (part))

5.16.160 Maximum prize.

The total value of prizes awarded during the conduct of any bingo game shall not exceed two hundred fifty dollars in cash or kind, or both, for each separate game which is held. (Ord. 84-13 § 1 (part))

5.16.170 Use of profits or proceeds.

A. 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 used only for charitable purposes.

B. With respect to other organizations authorized to conduct bingo games pursuant to this chapter, all proceeds derived from bingo games shall be kept in a special fund or account and shall not be commingled with any other fund or account. “Proceeds” are the receipt of bingo games conducted by organizations other than those which are exempt from payment of the bank and corporation tax of Section 23701(d) of the Revenue and Taxation Code. Such proceeds shall be used only for charitable purposes except as follows:

1. Such proceeds may be used for prizes;

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. (Ord. 84-13 § 1 (part))

5.16.180 Financial interest in licensee.

No individual, corporation, partnership or other legal entity, except the licensee, shall hold a financial interest in the conduct of such bingo games. (Ord. 84-13 § 1(part))

5.16.190 Operation and staffing.

A bingo game shall be operated and staffed only by members of the licensed organization. Any person participating in the operation, conduct or staffing of bingo games, 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 inches in size and specifying the full name and title of such person and the name of the licensee organization. (Ord. 93-20 § 5: Ord. 84-13 § 1 (part))

5.16.200 Open to public.

All bingo games shall be open to the public, not just to the members of the licensee organization.

(Ord. 84-13 § 1 (part))

5.16.210 Occupancy capacity.

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 as determined by the fire department and building inspection department of the city in accordance with applicable laws and regulations. The licensee shall not reserve seats or space for any person. (Ord. 84-13 § 1 (part))

5.16.220 Qualified property.

A. A licensee shall conduct a bingo game only on property owned or leased by it or property whose use is donated to the organization for an office or for performance of the purposes for which the organization is organized. 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 ceased to be owned, leased or used by the licensee, the license shall have no further force or effect. A new license may be obtained by an eligible organization, upon application under this chapter, when it again owns, leases or receives the use of qualified property.

B. 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. (Ord. 84-13 § 1(part))

5.16.230 Minors prohibited.

No person under the age of eighteen years of age shall be allowed to participate in any bingo game. (Ord. 84-13 § 1(part))

5.16.240 No use of credit.

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. 84-13 § 1 (part))

5.16.250 Intoxication of participant.

No person who is obviously intoxicated shall be allowed to participate in a bingo game. (Ord.84-13 § 1 (part))

5.16.260 Hours of operation.

No bingo game shall be conducted between the hours of two a.m. and nine a.m. of any day. (Ord. 84-13 § (part))

5.16.270 Posting rules and regulations.

The licensee shall post in a conspicuous place during the conduct of any bingo game the rules and regulations of the game. (Ord. 84-13 § 1 (part))

5.16.280 Participant’s presence.

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.(Ord.84-13 § 1 (part))

5.16.290 Penalty.

A. Except for security personnel employed by the licensee pursuant to Section 5.16.090, any person who receives or pays any profit, wage or salary from any bingo game conducted pursuant to this chapter is guilty of an offense, and is punishable in accordance with Chapter 21.01 of Title 21.

B. A violation of any other provision of this chapter is unlawful and is an offense. (Ord. 2006-07, Amended, 06/06/2006; Ord.92-04 § 10: Ord.84-13 § 1 (part))

5.16.300 Injunction.

The conduct of bingo games in violation of penal code section 326.5 or this chapter is declared to be a public nuisance and the City Attorney is authorized to bring an action in a court of competent jurisdiction to enjoin the same pursuant to sections 21.01.060 and 21.01.080. (Ord. 2006-07, Amended, 06/06/2006) (Ord.84-13 § 1 (part))