Chino Municipal Code Ch. 5.08 Bingo Games

The ordinance codified in this chapter shall be known as the bingo ordinance of the city.

(Ord. 76-15 § 1, 1976.)

Pursuant to Article 4, Section 19(c) of the California Constitution and Section 326.5 of the California Penal Code, nonprofit, charitable organizations may conduct bingo games within the city; provided, that the proceeds of such bingo games inure to the benefit of the nonprofit, charitable organization conducting the bingo games; and provided further, that any nonprofit, charitable organization authorized to conduct bingo games complies with the provisions of this chapter.

(Ord. 76-15 § 2, 1976.)

Except as specifically provided by this chapter, the provisions of Chapter 9.20 of this code shall continue in full force and effect.

(Ord. 76-15 § 4, 1976.)

For the purposes of this chapter, the following terms, phrases, words and their derivations shall have the meaning given herein.

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. "Nonprofit, charitable organization" means an organization exempted from the payment of the bank and corporation tax by Section 23701D of the Revenue and Taxation Code and a contribution or gift to which would be a charitable contribution under Section 170(c)(2) of the Internal Revenue Code of 1954.

C. As used in this section, 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 operating 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. 80-8 § 1, 1980; Ord. 76-15 § 3, 1976.)

No nonprofit, charitable organization shall conduct any bingo game by virtue of this chapter unless it has first applied for and obtained a license therefor from the city pursuant to the provisions of this chapter; provided, that no license shall be issued to any nonprofit, charitable organization who has not been in existence in the city and actively pursuing its stated charitable purposes in the city for a period of one year preceding its application for a license to conduct bingo games.

(Ord. 76-15 § 5, 1976.)

A. Any nonprofit, charitable organization who has been in existence and actively pursuing its charitable purpose in the city for at least one year may apply for a license to conduct bingo games to the office of the city manager. Such application shall be on a form provided by the city and it shall require the following information:

1. The name and address of the organization;

2. The date on which the organization was organized for the charitable purpose stated in the application, and the date on which the organization actively began to pursue the charitable purpose stated in the application;

3. The names and addresses of the directors, officers and employees of the organization together with their length of membership in the organization; and, as to each such person, any conviction of a felony or of any misdemeanor involving fraud or theft;

4. A statement of the charitable purpose for which the organization is organized; and if the charitable purpose is different from any other purpose previously stated by the organization, an explanation therefor;

5. A list of the charitable activities conducted by the organization for a period of one year preceding its application; and a list of those charitable activities being conducted and/or contemplated as of the date of the application;

6. A statement setting forth the purpose and projects for which the proceeds of the bingo games shall be committed;

7. The place where the bingo game will be conducted;

8. The bank and account number of the account into which proceeds of the bingo games shall be deposited;

9. The person who will be responsible for keeping the books relating to the proceeds from the bingo games, and the identity and location of the books;

10. Any other information reasonably required to complete the investigation on any application.

B. In addition to the foregoing information, the following documents shall be attached to the application:

1. If the organization is a corporation, certified copies of its Articles of Incorporation and bylaws. If the organization is other than a corporation, certified copies of its bylaws;

2. Certified copies of the "Certificate of Tax Exempt Status" from the California Franchise Tax Board and from the Internal Revenue Service;

3. A statement from the organization's bank to the effect that the organization has a bank account for the purpose of depositing the proceeds of its bingo games, including the account numbers and signatories thereof.

C. In addition to the information required under subsection A of this section, the application shall contain an authorization signed by the officers of the organization consenting to the following:

1. Inspection of the premises where the bingo games shall be conducted;

2. Inspection of the books pertaining to the proceeds from the bingo games and all necessary and reasonable expenses therefor;

3. Inspection of the bank accounts into which the proceeds from the bingo games have been deposited.

(Ord. 77-24 § 6, 1977: Ord. 76-15 § 6, 1976.)

The city manager shall examine all applications filed under Section 5.08.060 of this chapter and shall make, or cause to be made, such further investigation of the application and the organization as he shall deem necessary in order to perform his duties under this chapter. Upon request by the city manager, the organization shall make available for inspection by the city manager, or his authorized representative for such purposes, all of the organization's books, records and papers at any reasonable time before the license is granted, during the time a license is in effect, or after a license has expired, or after a license has been suspended or revoked.

(Ord. 76-15 § 7, 1976.)

A. The city manager shall issue the license provided for in Section 5.08.050 whenever he finds the following facts to exist:

1. That all of the statements made in the application are true;

2. That the organization has been in existence and actively pursuing, in the city, the charitable purpose(s) stated in the application for one year preceding the date of application;

3. That the organization possesses valid Certificates of Tax Exempt Status from the California Franchise Tax Board and the Internal Revenue Service;

4. That each director, officer and employee of the organization has a good character or reputation for honesty and integrity; and that each such person has been a member of the organization for one year;

5. That no director, officer, or employee of the organization has engaged in any fraudulent transaction or enterprise;

6. That the bingo games shall be controlled, supervised and conducted only by a director, officer, or employee of the organization;

7. That the application is prompted solely by a desire to finance a charitable purpose or project described in the application, and will not be conducted for private profit;

8. That the organization has consented to inspection of the premises where the bingo games shall be conducted, and the books and bank accounts relating to the proceeds from said bingo games;

9. That the organization shall designate any three directors, officers, employees or combination thereof who shall be exclusively and personally responsible for the management and supervision of the bingo games under this chapter, and each such person shall have been a resident of the city for a continuous period of one year prior to such designation;

10. That a majority of the members of the organization are residents of the city at the time of the organization's application for a permit under this chapter, and that substantially all of the organization's charitable activities are conducted within the city;

11. That the organization or local chapter thereof does not have a license to conduct bingo games in any other city in the state.

B. The city manager shall deny a license whenever he finds that any one or more of the facts in subsection A of this section do not exist.

(Ord. 79-8 §§ 1, 2, 1979; Ord. 77-24 § 8, 1977: Ord. 76-15 § 8, 1976.)

A. Application. Upon submission of an application for issuance or renewal of a license hereunder, the organization shall pay a fee of fifty dollars. If an application for a license or renewal thereof is denied, one-half of said fee shall be refunded to the organization.

B. Servicing. Prior to the issuance or renewal of a license to an organization hereunder, the organization shall deposit fifty dollars with the city manager for the purpose of servicing the license. Costs shall include the processing, compilation and investigation of the reports required by Section 5.08.130 of this chapter, and the costs of investigating any alleged violations of this chapter.

C. Appeal Costs. Upon filing a request for an appeal pursuant to Section 5.08.150 of this chapter, an organization shall deposit the sum of one hundred dollars with the city manager for the costs of the appeal; and the amount of the deposit may be increased or decreased by resolution of the city council. The costs of the appeal shall be deducted from the deposit, and any remaining portion of the deposit shall be returned to the organization at the conclusion of the appeal. However, the organization shall pay any costs in excess of the deposit upon the conclusion of the appeal and upon demand by the city manager.

(Ord. 95-25 § 3, 1996; Ord. 80-8 § 2, 1980; Ord. 77-24 § 9, 1977: Ord. 76-15 § 9, 1976.)

A. Expiration. Each license issued under this chapter shall expire on the anniversary of its issuance.

B. Contents. Each license issued under this chapter shall be signed by the city manager and it shall contain the following:

1. The organization to whom the license is issued;

2. A statement of authorization to the organization to conduct its bingo games pursuant to this chapter;

3. The location wherein the organization shall conduct its bingo games and a statement that the license shall be prominently displayed by such organization at the location;

4. The dates of issuance and expiration of the license; and

5. The dates of the reporting periods required by this chapter.

C. Receipt for Ordinance. Upon receipt of the license, a director or officer of the organization shall be given a copy of the ordinance codified in this chapter and shall sign a receipt therefor which shall become a part of the organization's application.

D. Posting. Any organization holding a license hereunder shall post it, in a prominent place, at the location wherein it shall conduct its bingo games.

E. Transferability. Any license issued under this chapter shall not be transferred, and any such transfer shall automatically void the license.

(Ord. 76-15 § 10, 1976.)

A. At least thirty days prior to the expiration of any license hereunder, any organization holding a license hereunder shall apply to the city manager for renewal of its license hereunder. The application for renewal shall be on a form provided by the city manager, and it shall determine whether the information provided on the original application is still true.

B. The city manager shall not renew a license if he finds that any of the facts listed in Section 5.04.080 no longer exists, or that the organization applying for renewal hereunder has failed to comply, in any respect, with the provisions of this chapter.

(Ord. 76-15 § 13, 1976.)

A. Whenever it shall be shown or whenever the city manager has knowledge that any organization, or agent thereof, holding a license under this chapter has violated any of the provisions of this chapter, the city manager shall immediately suspend the license and give the organization written notice by registered mail of the suspension and a brief statement of the reasons therefor.

B. Upon receipt of the "notice of suspension," the organization whose license has been suspended shall cease from conducting any bingo game, and its failure to do so shall constitute a separate and further violation of this chapter.

C. Together with the "notice of suspension" required by subsection A of this section, the city manager shall invite the organization whose license has been suspended to participate in a hearing to be held within fifteen days of the date of the suspension to show cause why the license should not be permanently revoked. At the hearing, the organization whose license was suspended shall have the right to present evidence as to the facts upon which the city manager based his suspension of this license, and any other facts which may aid the city manager in determining whether this chapter has been violated. Within fifteen days after the hearing, the city manager shall decide to reinstate, conditionally reinstate, suspend or revoke the license. The decision together with the reasons therefor shall be in writing and shall be delivered to the organization whose license has been suspended by registered mail.

(Ord. 76-15 § 14, 1976.)

A. Each organization holding a license under this chapter shall file a written report, on a form provided by the city manager, for every ninety-day period from the issuance date of its license. The dates of the reporting period shall appear on the face of each license.

B. The reports required by this section shall be filed with the city manager within ten days of expiration of each reporting period; and such reports shall contain the following information for each reporting period:

1. The dates on which the bingo games have been conducted;

2. The members of the organizations conducting the bingo games on each such date;

3. The total proceeds from the bingo games;

4. The total amount expended on equipment necessary to conducting the bingo games;

5. The total amount expended on prizes;

6. The total amount awarded in prize money;

7. The names and addresses of any new director, officer or employee of the organization.

C. Any license issued under this chapter shall be suspended for any failure to comply with the reporting provisions of this section; and notice thereof shall be given by registered mail to the address shown on the organization's application.

D. Any organization whose license has been suspended under this section shall cease to conduct any bingo games until further notice from the city manager.

(Ord. 76-15 § 11, 1976.)

Each organization holding a license under this chapter shall conduct bingo games in accordance with the following requirements:

A. No minor shall be allowed to participate in any bingo games.

B. A nonprofit, charitable organization shall conduct bingo games only on property within the city of Chino:

1. Which property is listed on the license application form; and

2. Which property shall be owned or leased by said organization, or property whose use is donated to the organization, and which property is used by that organization for an office or for performance of the purposes for which the organization is organized;

3. Nothing in this subsection 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, that organization;

4. The requirements herein shall be deemed satisfied if the organization has a lease for the use of said property for any of its organizational purposes or if the organization's bylaws require the organization to conduct its annual meetings at said property.

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

D. A bingo game shall be operated and staffed only by members of the nonprofit organization which organized it. Such members shall not receive or pay 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. Furthermore, a director, officer or employee of the organization shall be in attendance and shall supervise each and every bingo game; provided, that no employee of an organization shall be compensated therefor.

E. No individual, corporation, partnership or other entity except the organization authorized to conduct a bingo game shall hold a financial interest in the conduct of such bingo game.

F. 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 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 ten percent of the proceeds before the deduction for prizes, or five hundred dollars per month, whichever is less, may be used for rental of property, overhead, including the purchase of bingo equipment, and administrative expenses.

3. Such proceeds may be used to pay initial or renewal license fees.

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

H. 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. 95-25 § 1, 1996; Ord. 80-8 § 3, 1980; Ord. 77-24 § 12, 1977: Ord. 76-15 § 12, 1976.)

A. In the event of any finding or decision of the city manager which is adverse to the application of an organization for a license or renewal thereof under this chapter, the organization may appeal to the city council; provided, that such appeal is filed with the city clerk within fifteen days from the date of the finding or decision of the city manager. The city manager shall notify an organization of this right to appeal, and such notice shall accompany each and every finding and decision of the city manager which is adverse to any organization applying for a license or renewal thereof under this chapter. The finding or decision and the notice of this right to appeal shall be mailed, by registered mail, to the organization at the address which appears on its application for a license or renewal thereof.

B. At its first regular meeting after the filing of a notice to appeal, the city council shall set a hearing on the appeal for a date certain within the next thirty days.

(Ord. 76-15 § 15, 1976.)

A. It is a misdemeanor for any person to receive a profit, wage, or salary from any bingo game authorized by this section. A violation of this subsection shall be punished by a fine not to exceed ten thousand dollars, which fine shall be deposited in the general fund of the city.

B. Any other violation of this chapter by any person, organization, or entity shall constitute a misdemeanor and may be punished by a fine not to exceed five hundred dollars, or by imprisonment in the county jail not to exceed six months, or both.

C. Nothing contained in this section shall be construed to deny the authority of the city to bring an action to enjoin a violation of this section.

(Ord. 76-15 § 16, 1976.)

A. Notwithstanding the provisions of this chapter, nonprofit charitable organizations that have not operated within the city of Chino for one year but that are organized exclusively to support the activities of students who attend a school within the Chino Unified School District may receive a license to conduct bingo games if said organization meets all of the following criteria:

1. One or more officers of the organization is a resident of the city of Chino; and

2. The organization shall conduct the bingo game on property within the city of Chino, which property is owned or leased by said organization, or property whose use is donated to the organization, and which property is used by that organization for an office or for performance of the purposes for which the organization is organized. Nothing herein 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, that organization;

3. The requirements in subsection A(2) of this section shall be deemed satisfied if the organization has a lease for the use of said property for any of its organizational purposes or if the organization's bylaws require the organization to conduct its annual meetings at said property.

B. Any organization receiving a license to conduct bingo games pursuant to the exception herein shall comply with all other regulations of this chapter not inconsistent with the exception herein.

(Ord. 95-25 § 2, 1996.)