Chapter 11.27 — BINGO LICENSING

Pursuant to the provisions of Cal. Penal Code § 326.5, as adopted by the Legislature of the state of California, as amended, bingo games will be permitted within the City under the terms and conditions specified in this Chapter. (Ord. 88, passed 6-2-2004)

"Bingo" as defined in this Chapter, applies exclusively to this Chapter and shall not be applied in the construction or enforcement of any other provision of law.

(Ord. 88, passed 6-2-2004)

(a) Grant of license. An annual bingo license may be granted to the following type of organization that wishes to conduct bingo games within the City for the sole benefit of such organization: an organization exempted from the payment of the Bank and Corporation Tax by Cal. Rev. & Tax. Code §§23701(a), 23701(b), 23701(d), 23701(e), 23701(f), 23701(g) and 23701(1), and by mobile home park associations and senior citizens organizations and provided that the receipts of such games are used only for charitable purposes. Such applications shall be in writing to the City on a form set out by the City and shall be accompanied by the documents listed in divisions (a) through (d) below. At such time as the applicant organization submits to the City Clerk a complete application, with the applicable fee, and the City departments approve the grant of the bingo license, the City Clerk may issue the license subject to the requirements of this Chapter.

(1) An annual bingo license fee in the amount of $50. One-half of which license fee paid shall be refunded to the organization if the application for license is denied. In addition, a fee of 1% of the monthly gross receipts over $5,000 shall be an additional fee and shall be collected monthly.

(2) A statement indicating the purpose and uses for which the proceeds of such bingo games are to be used.

(3) A report from the City departments (Building, Planning, Police and Fire) stating that the property to be used for the bingo game meets applicable Codes and has the necessary parking and that the applicant has not held a bingo license which was revoked for noncompliance in the City or other jurisdictions.

(b) A statement that the applicant organization shall comply with all of the rules and regulations set out in Section 11.27.040 and that the organization agrees that if it fails to do so, its bingo license may be summarily revoked by the City.

(Ord. 88, passed 6-2-2004)

Licenses for bingo games which have been issued by the City may be renewed annually, upon the following conditions:

(a) Payment of the annual bingo license fee in the amount of $50. One-half of such license fee paid is to be refunded to the organization if an application for a license renewal is denied. In addition, a fee of 1% of the monthly gross receipts over $5,000 shall be an additional fee and shall be collected monthly;

(b) Submission by the licensee of a verified statement on a form provided by the City, indicating the use of the funds which were derived from the games held in the previous year.

(c) Submission of a certified statement signed by the officers of the organization holding such license for the previous year, stating that the bingo games which have been held were operated in conformance with the provisions of this Chapter.

(Ord. 88, passed 6-2-2004)

All bingo games operated under licensing by the City, as provided in this Chapter, shall be held in strict compliance with the following restrictions (as provided in state law):

• (a) No minors shall be allowed to participate in any bingo games;

(b) An organization authorized to conduct bingo games pursuant to this section 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 by such organization for an office or for the performance of the purposes for which the organization is organized. Nothing in this division 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;

(c) All bingo games shall be open to the public, not just to the members of the authorized organization;

(d) All bingo games shall be operated and staffed only by members of the authorized organization which organized them. Such members shall not receive a profit, wage or salary from any bingo game. Only the organization authorized to conduct a bingo game shall operate such game or participate in the promotion, supervision or any other phase of such game. This section does not preclude the employment of security personnel who are not members of the authorized organization at such bingo game by the organization conducting the game;

(e) No individual, corporation, partnership or other legal entity, except the organization authorized to conduct a bingo game, shall hold a financial interest in the conduct of such bingo game:

(f) With respect to organizations exempt from payment of the Bank and Corporation Tax by Cal. Rev. & Tax. Code § 23701(d), all profits derived from bingo games shall be held in a special fund or account and shall not be commingled with any other funds or accounts. Such profits shall be used only for charitable purposes.

(g) With respect to other organizations authorized to conduct bingo games pursuant to this Chapter, 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. Proceeds are the receipts of bingo games conducted by organizations not within division (f) of this section. 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 20% of the proceeds before 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.

• (3) Such proceeds may be used to pay license fees.

• (4) No person shall be allowed to participate in a bingo game unless such person is physically present at the time and place the bingo game is being conducted;

(5) The total value of prizes awarded during the conduct of any bingo game shall not exceed $250 in cash or in kind, or both, for each separate game which is held;

(6) As used in this section, "bingo" means a game of chance in which prizes are awarded on the basis of designated numbers or symbols on a card which conforms to numbers or symbols selected at random. Notwithstanding 330c of the Penal Code, as used in this Chapter, 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."

(Ord. 88, passed 6-2-2004)