§ 5-3

For the purposes of this article, unless otherwise apparent from the context, certain words and phrases used in this article are defined as follows:

"Charitable bingo" 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. The game of bingo shall not include tangible cards having numbers or symbols that are concealed and preprinted in a manner providing for distribution of prizes, otherwise known as "break open" or "pull-tab" bingo.

"Charitable" means a benevolent purpose.

"City manager" means the City Manager of the City of Artesia, or the designee thereof. (Ord. 18-861, § 2)

Charitable bingo may be lawfully played in the City of Artesia upon the receipt of a valid bingo license from the City Manager. Charitable bingo shall be conducted in accordance with the provisions of California Penal Code Section 326.5 and this article, and not otherwise. (Ord. 18-861, § 2)

The following organizations are authorized to obtain a charitable bingo license, provided that the receipts of such charitable bingo games are used only for charitable purposes:

• (a) Organizations exempted from the payment of the bank and corporation tax by Section 23701a (labor, agricultural, or horticultural organizations) of the California Revenue and Taxation Code;

• (b) Organizations exempted from the payment of the bank and corporation tax by Section 23701b (fraternal orders) of the California Revenue and Taxation Code;

• (c) Organizations exempted from the payment of the bank and corporation tax by Section 23701d (religious, charitable, scientific, public safety testing, literary, educational, amateur sports or humanitarian corporations) of the California Revenue and Taxation Code;

• (d) Organizations exempted from the payment of the bank and corporation tax by Section 23701e (business leagues, chambers of commerce, real estate boards, or boards of trade) of the California Revenue and Taxation Code;

• (e) Organizations exempted from the payment of the bank and corporation tax by Section 23701f (civic leagues, social welfare organizations, or local employees' organizations) of the California Revenue and Taxation Code;

• (f) Organizations exempted from the payment of the bank and corporation tax by Section 23701g (social organizations) of the California Revenue and Taxation Code;

• (g) Organizations exempted from the payment of the bank and corporation tax by Section 23701k (religious or apostolic corporations) of the California Revenue and Taxation Code;

• (h) Organizations exempted from the payment of the bank and corporation tax by Section 23701w (veteran's organization) of the California Revenue and Taxation Code; and

• (i) Organizations exempted from the payment of the bank and corporation tax by Section 23701l (domestic fraternal societies) of the California Revenue and Taxation Code.

• (Ord. 18-861, § 2)

• (a) Authorized organizations exempt from payment of the bank and corporation tax by Section 23701d of the California Revenue and Taxation Code (e.g., corporations or organizations operating exclusively for religious, charitable, scientific, public safety testing, literary, educational, amateur sports competition, or cruelty prevention purposes) shall keep all profits derived from a charitable bingo game in a special account required by Section 5-3.118 of this article and shall not commingle the profits with any other fund or account. Such profits shall be used only for charitable purposes.

• (b) Bingo game profits and proceeds shall be disbursed by check at least quarterly for a charitable purpose.

• (Ord. 18-861, § 2)

• (a) Players who are physically present at a charitable bingo game may use hand-held, portable card-minding devices, as described in this section, to assist in monitoring the numbers or symbols announced by a live caller as those numbers or symbols are called in a live game. Card-minding devices may not be used in connection with any game where a bingo card may be sold or distributed after the start of the ball draw for that game. A card-minding device shall do all of the following:

  • (1) Be capable of storing in the memory of the device bingo faces of tangible cards purchased by a player.

  • (2) Provide a means for bingo players to input manually each individual number or symbol announced by a live caller.

  • (3) Compare the numbers or symbols entered by the player to the bingo faces previously stored in the memory of the device.

  • (4) Identify winning bingo patterns that exist on the stored bingo faces.

• (b) A card-minding device shall perform no functions involving the play of the game other than those described in Subsection (a) of this section. Card-minding devices shall not do any of the following:

  • (1) Be capable of accepting or dispensing any coins, currency, or other representative of value or on which value has been encoded.

  • (2) Be capable of monitoring any bingo card face other than the faces of the tangible bingo card or cards purchased by the player for that game.

  • (3) Display or represent the game result through any means, including, but not limited to, video or mechanical reels or other slot machine or casino game themes, other than highlighting the winning numbers or symbols marked or covered on the tangible bingo cards or giving an audio alert that the player's card has a prize-winning pattern.

  • (4) Determine the outcome of any game or be physically or electronically connected to any component that determines the outcome of a game or to any other bingo equipment, including, but not limited to, the ball call station, or to any other cardminding device. No other player-operated or player-activated electronic or electromechanical device or equipment is permitted to be used in connection with a bingo game.

• (c) A card-minding device shall be approved in advance by the California Department of Justice as meeting the requirements of Section 326.5 of the California Penal Code and any additional requirements stated in regulations adopted by the California Gambling Control Commission.

• (Ord. 18-861, § 2)

The application for a charitable bingo license shall be on a form prescribed by the City Manager and filed at least 60 days prior to the conduct of a bingo game. The charitable bingo license application shall be signed by at least two officers of the authorized organization, including the presiding officer, and shall be verified as provided in Section 446 of the California Code of Civil Procedure for the verification of pleadings. Charitable bingo license applications shall specify the following information and be accompanied by the following applicable documentation:

• (a) The name, address, and telephone number of the applicant organization, the nature of the organization, and a statement that the organization is an authorized organization as defined by Section 5-3.103 of this article;

• (b) The names and addresses of all officers and directors of the applicant organization;

• (c) A list of the names of all members of the applicant organization who will operate and staff charitable bingo games and the date they became members;

• (d) A detailed description of the applicant organization's record system to account for the receipts, prizes, expenses, and profits or proceeds of each bingo game;

• (e) The location and signatures of the special bank account(s) required by Section 5-3.118 of this article;

• (f) The specific charitable purpose(s) that the bingo profits or proceeds will benefit;

• (g) A detailed schedule of the date(s) and hours, and a detailed description, including, but not limited to, occupancy capacity and parking availability, of the location of the proposed charitable bingo game(s);

• (h) A report signed by City officials from the Planning Department and the Los Angeles County Fire Department stating that inspection of any property proposed as a site for charitable bingo games has been made, and that such property meets with the fire, building and safety regulations, and further has adequate off-street parking for each two potential participants in a charitable bingo game to be held per the license in question;

• (i) A statement that the applicant organization agrees to conduct charitable bingo games in strict accordance with the provisions of Section 326.5 of the California Penal Code and this article, as they may be amended from time to time, and agrees that the license to conduct charitable bingo games may be revoked upon violation of any such provisions;

• (j) The address to which notice, when required, is to be sent or mailed, and the names of any individual or individuals, in addition to those set forth elsewhere in the application, who are authorized to accept service of process on behalf of the applicant organization;

• (k) A certificate issued by the Franchise Tax Board certifying that the applicant is exempt from the payment of the taxes imposed under the Corporation Tax Law pursuant to Section 23701a, 23701b, 23701d, 23701e, 23701f, 23701g, 23701k, 23701w, or 23701l of the Revenue and Taxation Code.

• (Ord. 18-861, § 2)

The application for a license to conduct charitable bingo games shall be accompanied by a license fee in the amount of $50. If the application is denied, one-half (½) of the license fee shall be refunded to the applicant organization.

(Ord. 18-861, § 2)

The application for a charitable bingo license shall be filed with the City Manager. Upon receipt, the City Manager shall refer the application to the Planning Department for review and report as to whether the appropriate provisions of this article and Section 326.5 of the California Penal Code have been or will be complied with. The applicant organization shall provide any additional information that may be requested during the review period, and as may be necessary to make a licensing determination. (Ord. 18-861, § 2)

A charitable bingo license shall not be issued until the City Manager has verified the facts stated in the application and determined that the application meets all requirements of this article and Section 326.5 of the California Penal Code and that it will have no substantial adverse impact on the neighboring area. If the City Manager, in conjunction with the Planning Department, finds that a proposed bingo game does not comply with all the requirements of this article and of Section 326.5 of the California Penal Code, and/or that it will have a substantial adverse impact on the neighboring area, but that conditions can be imposed that will eliminate such problem(s), the City Manager shall issue the bingo license subject to such conditions and the conditions specified in Section 5-3.111 of this article. (Ord. 18-861, § 2)

The City Manager shall deny a charitable bingo license if:

• (a) The applicant organization is not an authorized organization pursuant to Section 5-3.103 of this article;

• (b) The applicant organization has not filed the license fee;

• (c) The City Manager has knowledge from the applicant organization that the receipts from the bingo game will not be used for charitable purposes;

• (d) The City Manager has knowledge from the applicant organization that the charitable bingo game will not be conducted in accordance with Penal Code Section 326.5 and/or this article; or

• (e) A proposed charitable bingo game will have a substantial adverse impact on the neighboring area and there are no conditions that may be imposed to eliminate the impact.

• (Ord. 18-861, § 2)

Each charitable bingo license issued pursuant to this article shall be subject to the following conditions:

• (a) The charitable bingo licensee shall conduct a maximum of two charitable bingo games per calendar week.

• (b) Charitable bingo games may be held only between noon and midnight of any one day, not to exceed any six continuous hours.

• (c) A charitable bingo game shall only be conducted on the property listed in the charitable bingo license application that is owned or leased by the licensee, or whose use is donated to the charitable bingo licensee, and which property is used by the charitable bingo licensee for an office or for performance of the purposes for which the licensee is organized; provided, however, that charitable bingo games may not be conducted at any residence. Nothing in this paragraph shall be construed to require that the property owned or leased by, or whose use is donated to, the charitable bingo licensee be used or leased exclusively by, or donated exclusively to, the licensee.

• (d) The posting of any sign or device at the location at which a charitable bingo game is being, or will be, held for the specific purpose of advertising the existence, location, date, or time of a charitable bingo game shall comply with this Code.

• (e) All charitable bingo games shall be open to the public and not just to the members of the licensee. Neither seats nor space may be reserved for any person.

• (f) Notwithstanding that charitable bingo games are open to the public, attendance at any charitable bingo game shall be limited to the occupancy capacity of the room in which such game is conducted or the limit stated in the charitable bingo license, whichever is less.

• (g) No minors shall be allowed to participate in any charitable bingo game.

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

• (i) No person who is intoxicated shall be allowed to participate in a charitable bingo game.

• (j) A charitable bingo game shall be operated and staffed only by members of the charitable bingo licensee that organized it. Those members shall not receive a profit, wage or salary from any charitable bingo game. Only the charitable bingo licensee shall operate a charitable bingo game, or participate in the promotion, supervision or any other phase of a charitable bingo game. This paragraph does not preclude the employment of security personnel who are not members of the charitable bingo licensee at a charitable bingo game by the charitable bingo licensee conducting the game.

• (k) All staff members of a charitable bingo game shall wear on the outside of their clothing an identification insignia or badge not less than two inches by three inches in dimension, indicating the name and titles of the staff member.

• (l) No admission fee, purchase or donation shall be required for entry onto the charitable bingo premises.

• (m) No alcoholic beverages shall be served or consumed during the hours of operation of a charitable bingo game.

• (n) No charitable bingo licensee shall issue chips or money to a patron on credit or loan (including, but not limited to, IOUs and checks to be held) or allow any patron to play on credit.

• (o) No individual corporation, partnership, or other legal entity, except the charitable bingo licensee, shall hold a financial interest in the conduct of a charitable bingo game.

• (p) The charitable bingo licensee shall, as required by applicable law, offer assistance to a player with disabilities in order to enable that player to participate in a charitable bingo game, provided that the means of providing that assistance shall not be through any electronic, electromechanical, or other device or equipment that accepts the insertion of any coin, currency, token, credit card, or other means of transmitting value, and does not constitute or is not a part of a system that constitutes a video lottery terminal, slot machine, or device prohibited by Chapter 10 of Title 9 of the California Penal Code.

• (q) The charitable bingo license shall be posted at all times in a conspicuous place at the public entrance to a bingo game while such game is being conducted.

• (r) The charitable bingo licensee shall have available on the premises at all times during the conduct of games the list of members operating and staffing the charitable bingo games that has been filed pursuant to Section 5-3.106 of this article. In the event the list is different from the list submitted with the charitable bingo license application, proof of service of the revised list, as required by Section 5-3.119 of this article, shall be attached to the current list.

• (s) The charitable bingo licensee shall post the costs, prizes and rules of each game to be played. Such signs shall be posted adjacent to the charitable bingo license during the conduct of the charitable bingo game.

• (t) The total value of prizes awarded during the conduct of any charitable bingo game shall not exceed $500 in cash or kind, or both, for each separate game which is held.

• (u) The charitable bingo licensee shall ensure that the conditions of Article 1 of this chapter and Section 326.5 of the California Penal Code are complied with by the charitable bingo licensee and its officers and members. A violation of any one or more of those conditions or provisions shall constitute cause for revocation of the licensee's license pursuant to Section 5-3.120 of this article.

• (Ord. 18-861, § 2)

• (a) No charitable bingo licensee shall engage in, conduct, or carry on, or permit to be engaged in, conducted, or carried on, in or upon any premises within the City, the operation of a bingo game unless such game is conducted under the personal direction of a bingo manager licensed pursuant to Section 5-3.113 of this article. The bingo manager shall be present on the premises during the operation of all bingo games.

• (b) A bingo manager application shall be filed concurrently with an application for a charitable bingo license.

• (Ord. 18-861, § 2)

To obtain a bingo manager license, the charitable bingo licensee shall file a written application with the City Manager that shall set forth, in addition to such information as may be required by the City:

• (a) A statement that the bingo manager applicant is a non-salaried, uncompensated member of the charitable bingo licensee;

• (b) A statement that the bingo manager applicant has been a member of the charitable bingo licensee for at least six months;

• (c) A statement that neither the bingo manager applicant nor the members of the charitable bingo licensee that operate any charitable bingo game organized by the charitable bingo licensee, will receive any profit, wage, or salary, or any other direct or indirect consideration from any charitable bingo game;

• (d) A statement that the bingo manager applicant has read and understands all requirements of the law in regard to conducting charitable bingo games in the City, and that such bingo manager will accept full responsibility for the conduct of such charitable bingo games and all members who will operate and staff the charitable bingo games.

• (Ord. 18-861, § 2)

• (a) Prior to the granting of any bingo manager license, the charitable bingo licensee whose games are to be directed by the bingo manager shall file and thereafter maintain with the City a good and sufficient bond in the aggregate sum of $5,000 running to the City for the use and benefit of interested persons and parties, and executed by the applicant organization and two or more responsible sureties, or a surety company authorized to do business in the state of California. The bond shall be conditioned upon the strict compliance, by the principal, with the provisions of this article, and the payment of any direct pecuniary loss sustained, through any act of grand or petty theft or other wrongful act on the part of the principal, agent(s) or employee(s). The bond shall specify each individual who is licensed as bingo manager of the principal.

• (b) The bond shall remain in force and effect for the entire period of the bingo manager license. The sureties may cancel the bond and be relieved of further liability thereunder by delivering 30 days' written notice to the City. Such cancellation shall not affect any liability incurred or accrued thereunder prior to the termination of the 30 day period. If a bond is cancelled, the bingo manager license shall be deemed suspended until such time as a new bond is provided.

(Ord. 18-861, § 2)

Any person who sustains any injury covered by the bond posted pursuant to Section 5-3.114 may, in addition to any other remedy which he or she may have, bring an action in his or her own name upon the bond for the recovery of any damage sustained by him or her. Such bond shall not be void upon first recovery thereon but may be sued upon from time to time until the whole of the penalty shall be exhausted. Upon such action being commenced, the City may require the filing of a new bond, and immediately upon the recovery in any action on such bond, the charitable bingo licensee shall file a new bond or assign savings and loan certificates to the City as provided for in Section 5-3.116. Upon failure to file a new bond or to assign savings and loan certificates within 10 days, the bingo manager license shall be deemed suspended. (Ord. 18-861, § 2)

In lieu of a bond, a licensee may assign to the City savings and loan certificates in the sum of $5,000, together with an agreement in writing that if the City Council finds after a noticed hearing that any person sustained any pecuniary loss through any act of grand theft or petty theft or other wrongful act on the part of the principal, agent(s) or employee(s), the City may redeem a sufficient number of such certificates and from the proceeds reimburse such person for the loss sustained.

(Ord. 18-861, § 2)

The City Manager shall issue a bingo manager license if the required security is posted and the Planning Department finds that each statement made in the application is true and not deceptive or misleading, and that the bingo manager applicant has not been convicted of any felony or misdemeanor related to gambling, fraud, theft, or similar circumstances involving moral turpitude.

(Ord. 18-861, § 2)

• (a) At least two members of the charitable bingo licensee shall jointly count all charitable bingo proceeds.

• (b) A record shall be kept, on forms approved by the City, by the charitable bingo licensee showing the name and the written signature, address, and telephone number of the winner, and the consecutive serial number on the receipt for the prize.

• (c) All profits or proceeds derived from a charitable bingo game shall, within 24 hours, be deposited in a special account in any financial institution and shall not be commingled with any other account or funds.

• (d) The charitable bingo 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 charitable bingo games that are authorized in this article. The City, by and through its authorized officers, shall have the right to examine and audit such records at any reasonable time and the charitable bingo licensee shall fully cooperate with the City by making such records available. Such examination may consist of, without limitation, to the actual counting or examination of players, bingo cards, equipment, records, and funds.

• (e) The City may demand a complete detailed accounting of all income and expenses at any time. If the charitable bingo licensee fails to render such an accounting within the time limit set by the City, the charitable bingo license shall be temporarily suspended until such accounting is rendered.

• (Ord. 18-861, § 2)

• (a) Every charitable bingo licensee shall notify the City in writing of any change(s) in the facts required to be stated by Section 5-3.106 of this article.

• (b) Any change as to the location, date(s), and/or time(s) for proposed charitable bingo game(s) must be submitted to the City Manager not less than 45 days prior to the date when the change, if approved, would become effective. All other changes shall require written notification only, to be provided to the City Manager in writing not later than five days following the date when such changes become effective. All such written notifications of change or the intent to change shall be signed by at least two officers of the charitable bingo licensee, including the presiding officer.

• (c) Requests for change(s) to the application shall be forwarded to the Planning Department for review and to assure that the proposed amendment complies with the provisions of this article and Section 326.5 of the Penal Code.

• (d) The charitable bingo licensee shall notify the City in writing of any changes in the list of members who will operate and staff charitable bingo games and serve the notice upon the City by one of the following methods:

  • (1) Personal delivery of a revised list and the obtaining of a receipt therefor at least three days prior to the operation of any charitable bingo game; or

  • (2) Transmittal of a revised list by certified mail bearing a post date at least five days prior to the operation of any charitable bingo game.

• (e) The charitable bingo licensee shall retain in its records proof of service of the modifications required by Subsections (a) through (d) of this section.

• (Ord. 18-861, § 2)

• (a) The City Council may revoke any charitable bingo license issued pursuant to this article for the following reasons:

  • (1) The charitable bingo licensee has violated any provision of this article or Section

326.5 of the California Penal Code; or

• (2) A charitable bingo license has been granted on false or fraudulent evidence, testimony, or application.

• (b) No charitable bingo license issued pursuant to this article shall be revoked until the charitable bingo licensee has had a public hearing before the City Council and has had opportunity, either personally or by counsel or both, to present a defense and evidence on the charitable bingo licensee's behalf. Such public hearing shall be proceeded by not less than 10 days' advance written notice. The City Council shall issue findings of fact in conjunction with a decision to revoke a license.

• (Ord. 18-861, § 2)

• (a) No person shall interfere with, prevent, or refuse to permit a sheriff or other peace officer, or other officer or employee of the City to make an examination or inspection of any premises, whether the premises is open to the public or not, or of any record kept by the charitable bingo licensee, or by any agent or employee thereof, for the purpose of determining whether the charitable bingo licensee and/or bingo manager licensee are complying with all of the provisions of this article and/or Section 326.5 of the California Penal Code.

• (b) A charitable bingo licensee shall produce and exhibit the charitable bingo license and bingo manager license, whenever requested to do so by any peace officer or City officer authorized to issue, inspect, or collect licenses.

• (Ord. 18-861, § 2)

A charitable bingo license issued pursuant to this article shall be valid until the end of the calendar year during which it was issued, at which time the license shall expire. A new license shall only be obtained upon filing a new application and payment of the license fee. The fact that a license has been issued to an applicant during a particular year creates no vested right on the part of the licensee to continue to offer bingo for play. The City Council expressly reserves the right to amend or repeal this article at any time. If this article is repealed, all licenses issued pursuant to this article shall cease to be effective for any purpose on the effective date of the repealing ordinance.

(Ord. 18-861, § 2)

Each charitable bingo license issued hereunder shall be issued to a specified authorized organization to conduct charitable bingo games and shall in no event be transferable from one organization to another. Any attempt to transfer a license from one organization to another shall constitute cause for revocation of the charitable bingo licensee's license pursuant to Section 5-3.120 of this article.

(Ord. 18-861, § 2)

• (a) Pursuant to Section 326.5(b) of the California Penal Code, it is a misdemeanor for any person to receive or pay a profit, wage, or salary from any charitable bingo game authorized by this article. Security personnel employed by a charitable bingo licensee conducting a charitable bingo game may be paid from the revenues of charitable bingo games, as provided in Section 5-3.104 of this article.

• (b) A violation of Subsection (a) of this section shall be punishable by a fine not to exceed $10,000, which fine shall be deposited in the general fund of the City. A violation of any provision of this article, other than Subsection (a) of this section, is a misdemeanor.

• (c) The City may bring an action to enjoin a violation of this article.

• (d) This section is intended to be cumulative to, and not in place of, other rights and remedies available to the City. Above and beyond the violations and penalties specified herein, the City Attorney and/or the City Manager, in order to enforce this chapter, may pursue any other right or remedy permitted by this Code or other applicable authority, including, but not limited to, the commencement of a civil action, or an administrative action based upon a citation issued pursuant to Title 1, Chapter 7 of this Code.

• (Ord. 18-861, § 2)