Chapter 9.18 — BINGO

Sections: 9.18.010 Permit required--Statutory authority. 9.18.020 Definitions. 9.18.030 Reserved. 9.18.040 Bingo operators--Eligibility. 9.18.050 Permit application--Primary location. 9.18.060 Bingo operations at secondary locations--Additional application requirements. 9.18.070 One-day bingo permits at secondary locations--Additional application requirements. 9.18.080 Fire safety inspection and approval. 9.18.090 Permits.

9.18.100 Maximum amount of prize. 9.18.110 Operating requirements and permit conditions. 9.18.120 Limitation on bingo games at secondary locations. 9.18.130 Financial regulation--Proceeds--Separate fund or account--Reporting requirements. 9.18.140 Inspection. 9.18.150 Suspension or revocation of permit. 9.18.160 Appeals. 9.18.170 Violations--Penalties--Remedies.

A. No person may operate a bingo game in the City of Berkeley except pursuant to a permit under this chapter.

B. This chapter relating to bingo games for charity is enacted pursuant to Section 19 of Article 4 of the state constitution and the implementing provisions of Section 326.5 of the California Penal Code. (Ord. 7152-NS § 1 (part), 2010)

For the purposes of this chapter, words and phrases are defined as follows:

A. "Bingo" is the game of bingo as defined in Penal Code Section 326.5(o).

B. "City" is the City of Berkeley.

C. "Eligible organization" is any organization that is authorized to operate a bingo game under Penal Code Section 326.5(b) and that has owned or leased property within the City of Berkeley that it has used for the primary operation and primary activities for which it is organized, for at least twelve (12) months.

D. "Primary location" is the location where an eligible organization conducts the majority of the activities for which it exists, separate and aside from bingo.

E. "Secondary location" is any location other than a primary location. (Ord. 7152-NS § 1 (part), 2010)

A. Only eligible organizations may apply for or obtain a permit to conduct bingo games under this chapter.

B. Eligible organizations may operate bingo games solely for their charitable purposes.

C. An applicant shall immediately inform the Director of Finance of any change in its tax exempt status. (Ord. 7152-NS § 1 (part), 2010)

A. An eligible organization desiring to obtain a permit under this chapter to conduct bingo games at its primary location shall file a written application with the Director of Finance upon forms to be provided by the

Finance Department. An application for a bingo permit shall not be accepted unless the property upon which any bingo game is to be conducted is owned, leased or rented by the eligible organization.

B. An application for a bingo permit shall contain the following:

1. The applicant’s name and mailing address, a statement that it is an eligible organization, and, except as otherwise specified in this section, copies of any certificates or letters of determination from both the State Franchise Tax Board and the United States Internal Revenue Service, demonstrating that the organization is exempt from the payment of the bank and corporation tax under Section 23701d of the State Revenue and Taxation Code, and that a contribution or gift to the organization would be a charitable contribution under Section 170(c)(2) of the Internal Revenue Code. Applicants shall also file with the Department an affidavit or declaration under penalty of perjury that the state and federal exemptions referred to above are currently in effect;

2. The name and signature of at least two officers, including the presiding officer of the organization;

3. The applicant’s primary location, and its office and/or mailing address, if different;

4. How bingo games will be advertised;

5. The estimated annual expenses of such advertising, including all commissions, costs of collection, salaries and other items, if any, regardless of from what funds such expenses are payable;

6. The sources of all funds to be used for prizes, to the extent they will not be derived exclusively from payments by persons playing bingo;

7. A statement that the signers of the application have read and are familiar with the provisions of this chapter; and

8. The written policies incorporated in the applicant’s constitution, articles, bylaws or other regulations, which set forth the manner in which a person may become a 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.

C. Eligible organizations that are senior citizens organizations shall also file with the Director of Finance an affidavit or declaration under penalty of perjury that at least seventy-five percent of the membership of the applicant organization are 55 years old or older and that the primary purpose of the organization is to promote the interest of senior citizens. Such eligible organizations must also file with the Department a copy of their charter, constitution, articles of incorporation, or other written statement reflecting the organization’s purposes.

D. Eligible organizations that are charitable organizations affiliated with a school district, such as a local Parent- Teacher Association, are not required to submit copies of certificates or letters of determination from the State Franchise Tax Board and the United States Internal Revenue Service, demonstrating the organization is exempt from the payment of the Bank and Corporation Tax under Section 23701d of the State Revenue and Taxation Code, and that a contribution or gift to the organization would be a charitable contribution under Section 170(c)(2) of the Internal Revenue Code, if the applicant can establish by other means that it is a bona fide charitable organization affiliated with a school district. (Ord. 7152-NS § 1 (part), 2010)

requirements.

A. An eligible organization may apply for a permit to operate a bingo game at a secondary location.

B. An application for a permit to operate a bingo game at a secondary location shall include the following information, in addition to that required by Section 9.18.050:

1. The address where bingo games are proposed to be conducted; and

2. A copy of the lease or rental or other agreement under which the applicant will use the secondary location for bingo. (Ord. 7152-NS § 1 (part), 2010)

application requirements.

A. An eligible organization may apply for a one-day permit to operate a bingo game at a secondary location.

B. An application for a one-day permit to operate a bingo game at a secondary location shall include the following information in addition to the information required by Sections 9.18.050 and 9.18.060:

1. The date and beginning and ending times of the bingo game; and

2. A statement of all contributions associated with the proposed bingo game that have been collected or received by or on behalf of the applicant(s) within the 15 days immediately preceding the date of such filing. (Ord. 7152-NS § 1 (part), 2010)

No bingo permit may be approved under this chapter until the Berkeley Fire Department, after an inspection of the proposed location, has provided a written statement that the proposed location is acceptable. If the proposed location meets minimum fire and life safety requirements as specified in state law and local ordinances, the Fire Department shall issue a statement approving the proposed location. The statement shall specify the occupant load of the room or structure in which bingo games are to be conducted. If the occupant load of a room or structure is 50 or more persons, certain additional state and local fire and life safety regulations as mandated by state law and local ordinances may apply. This will be determined at the time of the required Fire Department inspection. (Ord. 7152-NS § 1 (part), 2010)

A. A permit may be granted only if the City determines that the applicant:

1. Has submitted a complete application;

2. Has submitted satisfactory proof that it will comply with the provisions of this chapter;

3. Has not made any omission or untrue statement, or provided any fraudulent documentation in
connection with the application;

4. Has not violated this chapter two or more times within the last three years; and

5. Is not otherwise subject to suspension or revocation under this chapter.

B. The City may deny a permit if it determines that the applicant or any of its officers or directors:

1. Has been convicted of any public offense involving violation of laws related to gambling, fraud, tax evasion or similar offenses; or

2. Has lost any governmental permit or entitlement as the result of revocation.

C. Denial of a permit may be appealed as set forth in Section 9.18.160.

D. Permits issued shall be valid for a calendar year and shall expire December 31st of each year, except that permits for one-time bingo games shall expire at the conclusion of the event or activity as stated in the application.

E. Permits under this chapter are nontransferable.

F. Nothing in this chapter creates any property interest in issuance or renewal of a permit. (Ord. 7152-NS § 1 (part), 2010)

The total value of prizes awarded during the conduct of any bingo games shall not exceed $500.00 in cash or kind, or both, for each separate game which is held. (Ord. 7152-NS § 1 (part), 2010)

A. A bingo game may be operated and staffed only by members of the eligible organization. Such members shall not receive a profit, wage, or salary from any bingo game. Only the eligible organization shall operate such game, or participate in the promotion, supervision or any other phase of such game.

B. Every member of the organization who operates or staffs a bingo game or distributes cards or prizes for bingo games shall wear a distinctive identification badge bearing the name of the member and the name of the organization. Each permittee shall keep a list of members of the organization who are authorized to staff the operation of the bingo games or distribute cards or prizes for bingo games, which shall be conspicuously posted and made available to any City representative who requests it. Members staffing bingo games or distributing cards or prizes for bingo games shall not be paid a wage, salary or profit for such duties.

C. All bingo games shall be open to the public, and may not be limited solely to the members of the permittee organization.

D. The permittee shall not reserve seats or space for any person.

E. A permittee shall not permit players in excess of the stated fire occupancy load or two hundred (200), whichever is less, to participate in any single bingo game.

F. A permittee may conduct a bingo game only at a primary or secondary location. Nothing in this section shall be construed to require that the property owned, leased or rented by the permittee, or the use of which is donated to it, be used or leased exclusively by or donated exclusively to such organization. If the permittee ceases using its primary location for the performance of the purposes for which it is organized, the permit for that location shall have no further force or effect.

G. A permit issued under this chapter shall authorize the permittee to conduct bingo games only on the property specified in the application.

H. No minors 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.

I. No alcoholic beverages may be consumed, sold, or given away, served or delivered to any person within the place where any bingo games are being conducted, nor shall any bingo game be conducted on any premises licensed to serve alcoholic beverages.

J. No bingo game at a primary location may be conducted before 10:00 a.m. or after 12:00 midnight of any day. No bingo game at a secondary location may be conducted before 12:00 noon or after 11:00 p.m. of any day.

K. 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.

L. All supplies for bingo games and bingo operations must be purchased from Berkeley licensed suppliers or businesses.

M. A permittee shall immediately inform the Director of Finance of any change in its tax exempt status. (Ord. 7152-NS § 1 (part), 2010)

No location that is used as a secondary location may be utilized for the conduct of bingo games more than one day in any 7-day period regardless of the number of eligible organizations that have permits to operate bingo at that location. (Ord. 7152-NS § 1 (part), 2010)

Reporting requirements.

A. No individual, corporation, partnership or other legal entity except the permittee shall hold a financial interest in the conduct of such bingo game.

B. 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.

C. The permittee shall keep full and complete accounting records supported by properly executed contracts, leases, receipts and other related documents which pertain to all monies, and other forms of income, collected in connection with the conduct of any of its bingo games, disbursed for expenditures in connection therewith and remaining or distributed for charitable purposes. Such records shall be clearly identified and readily accessible. The City shall have the right to examine and audit such records at any reasonable time, and the licensee shall fully cooperate with such officials by making such records available. Failure to comply with these requirements shall result in the immediate suspension of the bingo permit.

D. A permittee shall report changes of its officers to the Finance Department within 10 days of such change.

E. The permittee must provide a method approved by the Director of Finance for recording and documenting all bingo calls.

F. The permittee shall provide to the Director of Finance for each bingo game the name and signature of each winner and the name and signature of the organization member responsible for making payment to the bingo winner.

G. No more than the lesser of 20 percent of the gross proceeds of a bingo game or two one thousand dollars ($2,000) per month, whichever is less, may be used for overhead, including rental of property, the purchase of bingo equipment, administrative expenses, security equipment and security personnel. (Ord. 7152-NS § 1 (part), 2010)

The permittee shall maintain the bingo permit, lists of approved staff and accounting documents relating to all monies collected, disbursed and distributed, and shall make them available to the Finance Department for inspection at all reasonable times, including but not limited to, during any bingo game and during the permittee’s normal business hours. (Ord. 7152-NS § 1 (part), 2010)

A. Whenever it appears to the City Manager that the permittee has been or is conducting bingo games in violation of Penal Code Section 326.5 or any provision of this chapter, or that the permit was obtained by misrepresentation, the permit may be suspended or revoked.

B. No permit may be suspended or revoked unless written notice shall have first been given at least five days before the date of suspension or revocation by depositing in the United States mail a notice directed to the permittee at the address given in the application. The notice shall set forth a summary of the ground(s) advanced as the basis of the revocation.

C. Notwithstanding the notice requirements of subsection (B) of this section, any representative of the City Manager shall have the authority to suspend the permit of any bingo operator where there is a reasonable likelihood that a bingo game has been conducted in violation of Penal Code Section 326.5 or this chapter. (Ord. 7152-NS § 1 (part), 2010)

A. An applicant or permittee may appeal to the City Manager any decision to deny an application for a permit or suspending or revoking a permit.

B. The appeal shall be made in writing, specifying the grounds therefor, and filed with the City Manager, no later than 10 days after notice of said decision is provided to the appellant. The decision of the City Manager shall be final. (Ord. 7152-NS § 1 (part), 2010)

A. Violation of this chapter is a misdemeanor punishable as set forth in Chapter 1.20 of this code, but may be charged, in the discretion of the prosecutor, as an infraction.

B. In addition to any other remedy or penalty which may be available, any violation described in the preceding paragraph shall be subject to abatement by the City, as well as any other remedies that may be permitted by law for public nuisances, and may be enforced by an injunction issued by the Superior Court in a civil action, based upon a showing by the City that said violation exists. (Ord. 7152-NS § 1 (part), 2010)