Citrus Heights Municipal Code Div. 2 Suppliers

A system of regulating bingo suppliers in conjunction with the regulation of organizations authorized to conduct bingo games pursuant to Penal Code § 326.5 and of bingo parlors is necessary to ensure the maximum use of bingo proceeds and profits for charitable purposes and to limit the abuses stemming from increased commercialization of bingo in the city.

(Ord. No. 97-01, § 2(4.29.000), 1-2-1997; Ord. No. 97-13, § 2, 3-26-1997; Ord. No. 97-17, § 2, 9-24-1997)

The following words, terms and phrases, when used in this division, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

Bingo means a game of chance as specifically defined in section 10-82.

Bingo supplier means any person who, for a consideration, sells, rents, supplies, provides or furnishes equipment, products, goods, paper or other items for use in the conduct of bingo games.

(Ord. No. 97-01, § 2(4.29.010—4.29.020), 1-2-1997; Ord. No. 97-13, § 2, 3-26-1997; Ord. No. 97-17, § 2, 9-24-1997)

Cross reference— Definitions generally, § 1-2.

The chief of police shall issue a special business license required under this division unless:

(1) One or more of the grounds for denial established in chapter 22 of this Code exist;

(2) The bingo supplier sells, rents, supplies, provides or furnishes any equipment, products, goods, paper or other items for use in conjunction with or in the conduct of bingo games in a manner which violates Penal Code § 326.5; this division; administrative regulations adopted pursuant to this division; or any other applicable city, state, federal or otherwise applicable codes, rules, regulations or laws, as may be amended from time to time;

(3) The applicant has a current license under division I of this article; or

(4) The applicant has violated or is not in compliance with this division; Penal Code § 326.5; or any other applicable city, state, federal or otherwise applicable codes, rules, regulations or laws, as may be amended from time to time.

(Ord. No. 97-01, § 2(4.29.025), 1-2-1997; Ord. No. 97-13, § 2, 3-26-1997; Ord. No. 97-17, § 2, 9-24-1997)

The chief of police shall issue a special business license required under this division unless:

(1) One or more of the findings prescribed by subsection 22-159(a)(1), (2), (3) or (4) is made;

(2) The bingo supplier sells, rents, supplies, provides or furnishes any equipment, products, goods, paper or other items for use in conjunction with or in the conduct of bingo games in a manner which violates Penal Code § 326.5; this division; administrative regulations adopted pursuant to this division; or any other applicable state, city federal law, or administrative rule or regulation, as may be amended from time to time;

(3) The applicant has a current license under division 1 of this article; or

(4) The applicant has violated or is not in compliance with this division; Penal Code § 326.5; or any other applicable state, city, federal law, or administrative rule or regulation, as may be amended from time to time.

(Ord. No. 97-01, § 2(4.29.030), 1-2-1997; Ord. No. 97-13, § 2, 3-26-1997; Ord. No. 97-17, § 2, 9-24-1997; Ord. No. 2008-09, § 4, 5-8-2008)

(a) The bingo supplier licensee shall keep full and accurate records of all inventory, income received and expenses disbursed in connection with the sale, rental, supply, provision or furnishing of any equipment, products, goods, paper or other items for use in the conduct of bingo games and as necessary to determine or establish compliance with this division; administrative regulations adopted pursuant to this division; Penal Code § 326.5; or any other applicable state, city or federal law, or rule or administrative regulation, as may be amended from time to time. The records shall be of such types and maintained in such manner as may be prescribed by the chief of police and, when not so prescribed, shall be of such types and maintained according to the requirements of generally accepted principles of accounting.

(b) The chief of police or any other authorized representative of the city shall have the right to inspect, conduct a compliance examination, review, audit, or photocopy supplier licensee records as described in subsection (a) of this section at any reasonable time, and the license holder shall fully cooperate by making such records and photocopies thereof available to the chief of police upon demand. The licensee shall deliver the records for the purpose of a compliance examination, review, audit, inspection, or for photocopy to the office of the chief of police during reasonable hours upon demand of the chief of police.

(c) Compliance examinations shall be conducted by the chief of police of supplier licensee records described in subsection (a) of this section not less frequently than annually, for each 12 months of each licensee's operation.

(d) Such records shall be subject to disclosure only pursuant to the following:

(1) Any suspension, revocation or other proceeding conducted under this division or administrative regulations adopted pursuant to this division; or

(2) Any civil or criminal investigation conducted by the chief of police, the district attorney, the grand jury or the city council. For all other purposes, the records shall be kept confidential by the chief of police, as custodian of those records.

(Ord. No. 97-01, § 2(4.29.035), 1-2-1997; Ord. No. 97-13, § 2, 3-26-1997; Ord. No. 97-17, § 2, 9-24-1997)

The supplier licensee shall keep and preserve the records described in section 10-130(a) for the following periods of time, whichever occurs later:

(1) Three years;

(2) Until completion of a compliance examination; or

(3) Until the administrative or judicial appeal process, whichever is applicable, is final, if the license has been suspended, revoked, or a renewal denied.

(Ord. No. 97-01, § 2(4.29.037), 1-2-1997; Ord. No. 97-13, § 2, 3-26-1997; Ord. No. 97-17, § 2, 9-24-1997)

The licensee under this division shall not organize, manage, supervise, conduct, control or otherwise participate in or influence either the operation of any bingo game conducted in the city or the promotion thereof.

(Ord. No. 97-01, § 2(4.29.040), 1-2-1997; Ord. No. 97-13, § 2, 3-26-1997; Ord. No. 97-17, § 2, 9-24-1997)

(a) With the exception of revenue generated by any business or enterprise for which a special business license is required pursuant to this division, no bingo supplier shall have a financial interest in the conduct of a bingo game operated in the city. A licensee shall be deemed to have a financial interest in the conduct of a bingo game, including but not limited to the following situations:

(1) The price or cost of bingo supplies is adjusted by the licensee based on the profits, losses or tax-exempt status of any organization licensed under division 1 of this article;

(2) The licensee absorbs, assumes, shares or otherwise participates in the losses or profits of any bingo game conducted by any organization licensed under division 1 of this article; or

(3) The licensee maintains an accounts receivable for an organization licensed to conduct bingo games pursuant to division 1 of this article for amounts owed to the bingo supplier for a period that exceeds 30 days from the invoice date or ten days from the statement date, whichever occurs later. For purposes of this subsection, the term "invoice date" is defined as the date of delivery of such supplies, and the term "statement date" is defined as the date within 30 days of the delivery of supplies.

(b) The licensee, with knowledge that a bingo licensee licensed pursuant to division 1 of this article has not paid its supplier account to any supplier within the required period as provided in subsection (a)(3) of this section, shall not sell or rent supplies to such a bingo licensee until all the bingo licensee's accounts are brought within the time period provided for within subsection (a)(3) of this section.

(Ord. No. 97-01, § 2(4.29.045), 1-2-1997; Ord. No. 97-13, § 2, 3-26-1997; Ord. No. 97-17, § 2, 9-24-1997)

(a) Licensed bingo suppliers shall maintain a complete set of records which includes detail of all activities. These records shall include but are not be limited to the following:

(1) Preprinted sales invoices which reflect the following information:

a. Date of sale;

b. The customer's name and complete business address;

c. A description and stock number of each line item sold; and

d. Quantity and sales price of each line item.

(2) The original and two copies of the preprinted sales invoice, which shall be prepared and maintained as follows:

a. Original issued to the customer;

b. A copy retained in a file by customer name; and

c. A copy file in invoice number numerical sequence.

(b) Credit memos for returned items shall be prepared in the same detail as items described in subsection (a) of this section.

(Ord. No. 97-01, § 2(4.29.050), 1-2-1997; Ord. No. 97-13, § 2, 3-26-1997; Ord. No. 97-17, § 2, 9-24-1997)

(a) Except as provided in subsection (b) of this section, it shall be unlawful for a bingo supplier to:

(1) Sell, rent, supply, provide, or furnish any player-operated machine, device, or equipment that is computerized, electronic, or mechanical for use in a bingo game or in aid of a bingo game; or

(2) Sell, rent, supply, provide, or furnish equipment for use in a bingo game or in aid of a bingo game in which the numbers to be called are selected by electronic means rather than by random selection of numbered balls from a pool of game balls;

(b) A bingo supplier may sell, rent, supply, provide, or furnish any machine, device or equipment that may be lawfully used in a bingo game or in aid of a bingo game consistent with applicable state law.

(Ord. No. 97-01, § 2(4.29.055), 1-2-1997; Ord. No. 97-13, § 2, 3-26-1997; Ord. No. 97-17, § 2, 9-24-1997; Ord. No. 2007-06, § 2, 6-14-2007)

The chief of police shall have the authority to temporarily suspend the bingo supplier's license by ordering in writing that the licensee immediately cease and desist any further operations of the bingo supply business pending expiration of the time for appeal or exhaustion of an appeal pursuant to the provisions and notice procedure of section 22-205 if the chief of police finds that such temporary suspension is necessary in order to protect against a serious and immediate threat to the health or safety of the public caused by exercise of the license, and one of the following occurs:

(1) The supplier licensee is conducting the operation in violation of this division; Penal Code § 326.5; the administrative regulations adopted pursuant to this division; or any other applicable state, city, federal law, or administrative rule or regulation, as may be amended from time to time;

(2) The supplier licensee has not made available for the conduct of a compliance examination, audit, review, inspection, or for photocopying, at any reasonable time upon the demand of the chief of police, all records necessary to determine or establish compliance with this division; administrative regulations adopted pursuant to this division; Penal Code § 326.5; or any other applicable state, city, federal law, or administrative rule or regulation, as may be amended from time to time; or

(3) The supplier licensee has not kept records:

a. As prescribed by the chief of police; this division; Penal Code § 326.5; administrative regulations adopted pursuant to this division; or any other applicable state, city, federal law, or administrative rule or regulation, as may be amended from time to time; or

b. Necessary to determine compliance with applicable laws and administrative rules and regulations pursuant to generally accepted principles of accounting when such records are not prescribed to be kept in any specific manner or type by the chief of police; this division; administrative regulations adopted pursuant to this division; Penal Code § 326.5; or any other applicable state, city, federal law, or administrative rule or regulation, as may be amended from time to time.

(Ord. No. 97-01, § 2(4.29.060), 1-2-1997; Ord. No. 97-13, § 2, 3-26-1997; Ord. No. 97-17, § 2, 9-24-1997)

(a) The temporary license suspension as provided in this division shall be effective no sooner than 24 hours following the time and date of delivery of the notice thereof as is provided in section 22-205, and the procedures for appeal and notice of temporary suspension shall be as prescribed in section 22-205.

(b) Upon timely request by the licensee, the appeal hearing process and related procedures of the revocation or suspension of the license pursuant to section 22-203 shall proceed pursuant to sections 22-199—22-207.

(Ord. No. 97-01, § 2(4.29.065), 1-2-1997; Ord. No. 97-13, § 2, 3-26-1997; Ord. No. 97-17, § 2, 9-24-1997)

Any person who continues to operate and conduct the business of a bingo supplier after temporary suspension pursuant to section 10-137 or suspension pursuant to section 22-203 is guilty of a misdemeanor.

(Ord. No. 97-01, § 2(4.29.075), 1-2-1997; Ord. No. 97-13, § 2, 3-26-1997; Ord. No. 97-17, § 2, 9-24-1997)

(a) It is a misdemeanor under Penal Code § 326.5(b) for any person to receive or pay a profit, wage or salary from any bingo game authorized under this division. Payment received by a bingo supplier for supplies purchased by a bingo licensee licensed pursuant to division 1 of this article shall not be deemed a violation of this section. A violation of this prohibition is punishable by a fine not to exceed $10,000.00, which fine shall be deposited in the general fund.

(b) A violation of any of the sections of this division shall be a misdemeanor punishable, except as otherwise provided in subsection (a) of this section, as set forth in sections 1-21 and 22-40.

(c) A violation of any section of this division; administrative regulations adopted pursuant to this division; Penal Code § 326.5; or any other applicable state, city, federal law, or administrative rule or regulation, as may be amended from time to time, shall be grounds for the chief of police to suspend, revoke, or deny the renewal of a special business license for a bingo supplier issued pursuant to this division.

(Ord. No. 97-01, § 2(4.29.080), 1-2-1997; Ord. No. 97-13, § 2, 3-26-1997; Ord. No. 97-17, § 2, 9-24-1997)