Compton Municipal Code § 9-23 Bingo Games for Charitable Purposes

[1]

Editor's Note: Prior ordinances codified herein include portions of Ordinance No. 1879.

[Ord. #1891, § 1]

As used in this section, the words and phrases hereinafter set forth shall have the following meanings ascribed to them unless the context clearly requires to the contrary:

BINGO; BINGO GAMES

Shall mean games 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 and shall include cards having numbers or symbols which are concealed and preprinted in a manner providing for distribution of prizes.

CITY

Shall mean the City of Compton.

COUNCIL

Shall mean the City Council of the City of Compton.

MOBILE HOME PARK ASSOCIATION

Shall mean any group or organization of 10 or more members, each of whom owns or leases a mobile home as defined in Health and Safety Code Section 18008, which organization was organized for some civil, recreational, charitable or cultural purpose.

PROCEEDS

Shall mean the receipts from bingo games conducted by organizations not exempt from payment of the bank and corporation tax under Section 23701d of the Revenue and Taxation Code.

PROFITS

Shall mean the excess of receipts over expenditures (including expenditures for security personnel who are not members of the organization) in connection with bingo games conducted by organizations exempt from payment of the bank and corporation tax under Section 23701d of the Revenue and Taxation Code.

SENIOR CITIZENS' ORGANIZATION

Shall mean any group or organization of 10 or more members, the age of each member being not less than 60 years, which organization was organized for some civil, recreational, charitable or cultural purpose.

[Ord. #1891, § 1]

Organizations which maintain their principle office within the City limits of the City of Compton and are exempt from the payment of the bank and corporation tax by Sections 23701a, 23701b, 23701d, 23701e, 23701f, 23701g, and 23701(1) of the Revenue and Taxation Code, mobile home park associations and senior citizens' organizations are eligible to apply to the City for a license to conduct bingo games in the City under the provisions of Section 326.5 of the Penal Code and the provisions of this section.

[Ord. #1891, § 1; Ord. #2193, §§ 1, 2]

Any eligible organization desiring to obtain a license to conduct bingo games in the City shall file an application in writing therefor with the Planning Department on a form to be provided by the Planning Department.

a. Types of Licenses. The City will permit two types of bingo licenses:

1. Accessory Bingo License. Eligible organizations may apply to conduct bingo games as an accessory to their existing program.

2. Special Bingo License. Eligible organizations may apply for a "special" license to conduct bingo as a primary activity for the organization. In order to prevent over concentration, there shall be a maximum of one special license approved for each 100,000 residents located within the City.

b. Application and Licensing Fees. The following fees shall be paid by eligible organizations applying for or holding bingo licenses:

1. All eligible organizations shall submit at time of application a licensing fee of $50. If the application for a license is denied, the City shall retain 1/2 of the license fee to pay the costs of the review of the application. An additional fee for law enforcement and public safety costs incurred by the City that are directly related to bingo activities may be imposed and shall be collected monthly by the City issuing the license; however, the fee shall not exceed the actual costs incurred in providing the service. The City Council may from time to time establish a schedule of fees for the costs incurred by the City for law enforcement and public safety by Resolution.

2. All eligible organizations shall submit at time of application the fee required by § 30-42 of the Zoning Ordinance for processing of a Certificate of Occupancy application.

3. All bingo licensees shall pay, on the anniversary of the issuance of the original license, an annual licensing fee of $50.

[Ord. #1891, § 1]

No license shall be issued unless the applicant is an eligible organization under Subsection 9-23.2 and its application conforms to the requirements, terms and conditions of this section.

[Ord. #1891, § 1]

a. All applications for a license shall be signed under penalty of perjury and shall contain the following information:

1. The name and address of the applicant;

2. A statement that the applicant is an eligible organization under Subsection 9-23.2. The application shall include, as attachments, certificates of the Franchise Tax Board and the U.S. Internal Revenue Service establishing that the organization is currently exempted from the payment of the bank and corporation tax under the Revenue and Taxation Code and that a contribution or gift to the organization would be a charitable contribution under the Internal Revenue Code, deed, lease agreement, permit or other documents that clearly demonstrate the applicant is eligible pursuant to Section 326.5 of the Penal Code.

3. A statement that the applicant occupies a facility within the City which has met the Zoning Ordinance and Municipal Code requirements for public assembly and may legally be used for this purpose for the conduct of bingo;

4. The names, addresses and signatures of at least two officers of the applicant (should two or more officers exist);

5. The names, addresses and signatures of the members of the applicant who will be primarily responsible for the operation, conduct, promotion and supervision of bingo games and a list of other members who will be involved;

6. The address of the property within the City used by the applicant for an office or for performance of the purposes for which the applicant was organized, together with the occupancy capacity of such place at which the bingo games will be conducted;

7. Proposed days and time for the operation of bingo games;

8. A description of the system to be used to account for the receipts, prizes and expenses of the bingo games;

9. The specific charitable purposes which the bingo receipts will benefit;

10. The maximum number of players that will be permitted in the facility at any time;

11. A copy of the Certificate of Occupancy for the premises at which the bingo games will be conducted;

12. A site plan for the premises at which the bingo games will be conducted, including parking;

13. A floor plan for the premises at which the bingo games will be conducted, including rest rooms, entrances and exits;

14. A statement that the applicant agrees to conduct bingo games in strict accordance with the provisions of Section 326.5 of the Penal Code, this section and all other applicable statutes and regulations as they may be amended from time to time, and an agreement that the license to conduct bingo games may be revoked upon violation of any of such provisions;

15. A Certificate of Occupancy application for the operation of bingo; and

16. Such other information as the Planning Department shall reasonably require.

b. An application for a special license shall contain the following supplemental information:

1. A copy of the applicant's articles of incorporation;

2. The name and address of each partner, shareholder, officer and director of the applicant;

3. A one year, detailed cash flow projection, a pro forma financial statement, a statement of preopening cash, a financing plan and copies of all loan agreements of the applicant;

4. A statement that the applicant understands and agrees that the application shall be considered by the Council as set forth in this section only after full investigations and reports have been made in a timely manner by all applicable City staff;

5. A complete listing of all criminal arrests and convictions of the applicant and each partner, shareholder, officer and director of the applicant, if any, not including minor traffic offenses, with explanations therefor; and

6. Such other information as City staff may deem necessary to adequately process the application.

[Ord. #1891, § 1]

Upon receipt of an application to operate any bingo game, the Planning Department shall refer the application to interested departments of the City, including, but not limited to, the Treasurer's Department, the Fire Department and the Department of Building and Safety, for investigation as to whether or not all the statements in the application are true and whether or not the property of the applicant qualifies and the extent to which it qualifies as to fire, occupancy and other applicable restrictions as property on which bingo games may lawfully be conducted.

a. Accessory Bingo License. Upon being satisfied that an applicant for an accessory license is fully qualified under the law to conduct bingo games in the City, the Planning Department shall approve the Certificate of Occupancy for the use and direct the City License Collector to issue a license to the organization (the "licensee") for a term of one year from the date of issuance. The licensee may apply to the Planning Department for issuance of a new license each year, upon payment of the annual license fee.

b. Special Bingo License. Upon being satisfied that an applicant for a special license is fully qualified under the law for consideration for a special license, the Planning Department shall notify the Council that it has received and investigated said application.

1. Within 30 days after receipt of the application notice, the Council shall schedule a public hearing on the application.

2. Not less than 10 days prior to the hearing date, the Planning Department shall mail notice of the hearing to the applicant and all owners of property within a 300-foot radius of the exterior boundaries of the proposed bingo site, using for that purpose the last known name and address of such owners as shown upon the Assessment Roll of the County of Los Angeles, and shall cause notice of the hearing to be published once in a newspaper of general circulation in the City. Such notices shall contain a description of the proposed bingo site, the nature of the license applied for and the time and place of the public hearing. The failure of any owner to receive any notice duly mailed shall not affect, in any way, the validity of any of the proceedings undertaken by the Council pursuant to this section.

[Ord. #1891, § 1]

The City may, at its discretion, deny any application if it finds that the applicant has not complied with any requirement of this section, or for any of the following grounds or reasons:

a. Indictment or conviction of any crime of violence, any crime involving fraud, gambling, thievery, bunco, moral turpitude or evasion of taxes, or any other offense indicating a lack of business integrity or business honesty, whether committed in the State of California or elsewhere, whether denominated a felony or a misdemeanor, and notwithstanding the passage of time since the conviction;

b. Failure to satisfy the City as to the applicant's good character, honesty or integrity, either through the applicant's actions or through association with others;

c. Failure to satisfy the City as to the source and adequacy of funds to be invested in the proposed venture;

d. Prior unsuitable operation as a bingo licensee in another jurisdiction without regard to whether disciplinary action was taken at that time or whether the acts were sufficient to justify revocation of a license;

e. Making or causing to be made any statement in an application or document or orally in connection with an application, which statement was at the time and in the light of the circumstances under which it was made false or misleading;

f. Lack of a satisfactory record of business competence and business ethics and integrity;

g. Failure of any person named in an application when summoned by the Council to appear and testify before it or its agent at the designated time and place;

h. Deficient security and law enforcement accommodations and facilities; or

i. Failure to satisfy the City that approval of the license is in the best interests of the City.

[Ord. #1891, § 1; Ord. #2266 § 1]

In approving an application for a special license, the Council may impose conditions upon such license in addition to the requirements contained herein. The Planning Department shall provide to the applicant a copy of the City's acceptance form, which shall state that the applicant is aware of and will abide by all conditions imposed by the Council. Upon receipt of the acceptance form signed by the applicant, the City License Collector shall thereupon issue the license, which shall be for a term of one year from the date on which it was issued, unless revoked by the Council pursuant to the provisions hereof or surrendered by the licensee. In the event of the surrender, suspension, revocation or expiration of the license, no portion of any license fee or deposit shall be refunded. Not less than two months prior to the expiration of a license, the licensee shall file a request for renewal with the City Clerk to extend the special license for another term of one year. Such request shall be placed before the City Council for consideration by resolution.

[Ord. #1891, § 1]

a. All bingo licenses shall contain the following information:

1. The name of the organization to which the license is issued;

2. The address where bingo games are authorized to be conducted, which must be a facility on the premises used by the applicant for an office or for performance of the purposes for which the applicant was organized;

3. The occupancy capacity of the room in which bingo games are to be conducted;

4. The date of expiration of such license; and

5. Such other information as may be necessary or desirable for the enforcement of the provisions of this section.

b. The licensee shall post the license in a conspicuous place upon the premises at which the bingo games are conducted and shall immediately produce such license for inspection upon demand of any police officer or authorized City employee.

[Ord. #1891, § 1]

a. Whenever it appears to the Chief of Police that the licensee is conducting a bingo game in violation of any of the provisions of this section, the Chief of Police shall have the authority to summarily suspend the license and terminate the operation of any bingo game. Any person who continues to conduct a bingo game after such suspension shall be deemed guilty of a misdemeanor and, upon conviction thereof, shall be punishable by a fine not exceeding $1,000 per day or by imprisonment for a period not exceeding six months, or both.

b. The Chief of Police shall notify the licensee that it has 10 days from the date of the suspension to request in writing a hearing before the Council to determine whether the license should be revoked. Failure to request a hearing or cure the violation within the ten-day period shall result in a revocation of the license.

c. If the licensee requests a hearing, the Council shall conduct such hearing within 30 days after receipt of the request for a hearing. The City Manager shall give notice of the hearing to the licensee at least 10 days before the hearing by depositing in the United States mail a notice to the licensee at the address given in the application. The notice shall set forth a summary of the basis for the suspension and proposed revocation. The licensee may appear before the Council to present evidence against the proposed revocation.

d. Any organization whose license is revoked shall not conduct any bingo game in the City until such time as the license is reinstated. The determination of the Council shall be final.

[Ord. #1891, § 1]

a. Whenever it appears to the City Manager that the licensee is conducting bingo games in violation of any of the provisions of this section, or that the license was obtained by fraudulent representation, the City Manager may ask the Council to revoke the license. The matter shall be set for hearing, and the City Manager shall give notice of the hearing to the licensee at least 10 days before the hearing by depositing in the United States mail a notice to the licensee at the address given in the application. The notice shall set forth a summary of the basis for the proposed revocation. The licensee may appear before the Council to present evidence against the proposed revocation.

b. Any organization whose license is revoked shall not conduct any bingo game in the City until such time as the license is reinstated. The determination of the Council shall be final.

[Ord. #1891, § 1]

The licensee shall at all times conduct the bingo games in strict accordance with the provisions of Section 326.5 of the Penal Code, this section and all other applicable statutes and regulations as they may be amended from time to time. The license to conduct bingo games may be revoked upon violation of any of such provisions.

[Ord. #1891, § 1; Ord. #2193, § 3]

The total value of prizes awarded during the conduct of any bingo game shall not exceed $500 in cash or kind, or both, for each separate bingo game. The licensee shall require that each prize winner sign a receipt, on a form approved by the City Controller, which shall contain the name, address, telephone number and signature of the prize winner. Receipts shall be consecutively numbered and shall be made available to the City Manager for review upon request.

[Ord. #1891, § 1; Ord. #2266 § 2]

All profits derived from bingo games operated by an organization exempt from payment of the bank and corporation tax under Section 23701d of the Revenue and Taxation Code shall be deposited into and retained in a special fund or account, which shall not be commingled with any other fund or account of the licensee. Such profits shall be deposited into such account within 24 hours after completion of the bingo game and shall be used only for local charitable purposes within the City of Compton. The holder of any special license shall provide the office of the City Manager with a list of all charities and non-profit organizations receiving such bingo funds and shall be notified of all charities no longer receiving such funds or of any changes. The City Manager may designate or approve new charities or non-profit organizations to receive bingo funds.

[Ord. #1891, § 1; Ord. #2266 § 3]

All proceeds derived from bingo games operated by an organization other than one exempt from payment of the bank and corporation tax under Section 23701d of the Revenue and Taxation Code shall be deposited into and retained in a special fund or account, which shall not be commingled with any other fund or account of the licensee. Such proceeds shall be deposited into such account within 24 hours after completion of the bingo games and shall be used only for charitable purposes, except as follows:

a. Such proceeds may be used for prizes;

b. A portion of such proceeds may be used for rental of property, overhead, including the purchase of bingo equipment, administrative expenses, security equipment and security personnel;

c. Such proceeds may be used for license fees; and

d. All net proceeds (minus prizes, rent, security, and bingo supplies) shall remain in the City of Compton and shall be given to local charities or non-profit organizations. The holder of any special license shall provide the office of the City Manager with a list of all charities and non-profit organizations receiving such bingo funds and shall be notified of all charities no longer receiving such funds or of any changes. The City Manager may designate or approve new charities or non-profit organizations to receive bingo funds.

[Ord. #1891, § 1; Ord. #2266 § 4]

a. Each licensee shall keep full and accurate records of all receipts and disbursements in connection with its operation, conduct, promotion, and supervision of bingo games. The City shall have the right to examine and audit such records at any reasonable time, and the licensee shall fully cooperate with the City by making such records available upon request.

b. At least two members of the licensed organization shall jointly count all bingo proceeds. Such proceeds shall be deposited in a special bingo bank account the next banking day.

c. All funds from bingo games shall be deposited into a special bingo bank account identified on the licensee's application and shall not be commingled with any other funds. Funds deposited in such special bank account may, however, be transferred to another account or fund of the licensee organization or to another account or fund of any other organization or entity associated or affiliated therewith for purposes of implementing charitable expenditures of bingo proceeds, provided: (1) no monies from any source other than bingo proceeds are placed in such fund; (2) the purpose of such fund is clearly designated as part of the title or subtitle of the fund and in the books and records of the organization; and (3) expenditures therefrom for such purpose are permitted under the provisions of Section 326.5 of the Penal Code.

d. All disbursements from the special bingo bank account shall be by consecutively numbered checks signed by two authorized officers of the licensee and shall be payable to a specific individual or organization. There shall be written on each check the nature of the expenditure for which the check is drawn. No check shall be drawn to "cash" other than for the purpose of depositing such cash in a petty cash fund established and maintained for the payment of incidental bingo expenses. Such checks shall in that event be marked "for deposit to the petty cash fund." Such petty cash fund shall not at any time contain more than $25 and a receipt shall be obtained for each disbursement, indicating the amount of cash disbursed, the individual or organization receiving the cash disbursement and the purpose for which the disbursement is made.

e. The City Manager may at any time require any licensee to prepare and file with the City a copy of an audit prepared by a certified public accountant, showing the gross revenue received from the bingo games, the costs incurred and disbursements made, the deposits into the special fund or account and all withdrawals therefrom. Special licensees shall, in any case, submit such an audit every six months from the date of issuance of the license.

f. All licensees shall file with the City Controller a financial report, showing the gross revenue received from the bingo games, the costs incurred and disbursements made, the deposits into the special fund or account and all withdrawals therefrom. Accessory bingo licensees shall file the report six months after the date of issuance of the license and annually thereafter. Special bingo licensees shall file said report on or before the first of each month for the life of the license. A copy of said report shall be submitted to the City Treasurer in conjunction with the monthly licensing fee. Failure to file such report within 10 days after the date due shall be grounds for suspension or revocation of the license or, if applicable, for denial of a new license.

g. All bingo sales resulting from operation of a special license shall be recorded on a cash register that features a nonresettable grand total. The cash register tape shall be kept for not less than three years.

h. Bingo financial records, including all books and records of the licensee or any other organization or entity associated or affiliated with the licensee for purposes of disbursing charitable expenditures of bingo proceeds, shall at all times be available for inspection by the City.

[Ord. #1891, § 1]

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

[Ord. #1891, § 1]

With the exception of security personnel, only the members of the licensee shall operate bingo games or participate in the operation, conduct, promotion and supervision of bingo games. Each such member shall wear an identification badge containing his or her name and title. Such members shall not receive a profit, wage or salary from any bingo game; however, security personnel who are not members of the licensee organization may be paid from the receipts of a bingo game.

[Ord. #1891, § 1]

All bingo games shall be open to all members of the public, whether or not members of the licensee organization. No admission fee shall be charged for entry onto the premises where the bingo games are conducted.

[Ord. #1891, § 1]

a. Accessory Bingo License. Each license shall authorize the licensee to operate a bingo game for only one day in each week and for no more than six hours on any day. No bingo game shall be conducted before noon nor after midnight on any day. No more than two licensees shall use the same premises for bingo games during any week.

b. Special Bingo License. A special license shall authorize the licensee to conduct bingo games daily on the licensee's premises between the hours of noon and midnight on Fridays, Saturdays and Sundays and for up to six hours between the hours of 4:00 p.m. and midnight on Mondays, Tuesdays, Wednesdays and Thursdays.

[Ord. #1891, § 1]

At least one security guard from a licensed security company must be present on the premises on which the bingo games are conducted beginning no less than 30 minutes prior to the commencement of the bingo games and continuing until no less than 30 minutes after the conclusion of the bingo games. If there are more than 100 customers at an accessory bingo game, two security guards from a licensed security company must be present on the premises at such times. The security and staffing plan for special bingo games must be submitted to and approved by the Police Department prior to issuance of the special license and shall be revised and amended thereafter as required by the Department.

[Ord. #1891, § 1]

The winning card(s) used in a bingo game shall not be known prior to the bingo game by any person participating in the playing or operation of the bingo game. All preprinted cards used in bingo games shall bear the legend "for sale or use only in a bingo game authorized under California law and pursuant to local ordinance."

[Ord. #1891, § 1]

Bingo games shall be conducted only within structures approved for public assembly as evidenced by a valid Certificate of Occupancy issued by the City. Attendance shall be limited to the occupancy capacity of the room in which bingo games are conducted, but in no event shall attendance exceed for accessory bingo games the lesser of 200 persons or three persons for each available parking space on the premises. Attendance limits for special bingo games shall be determined by the Council in accordance with the physical occupancy capacity of the room in which the bingo games are conducted. Rooms with a capacity of less than 300 persons shall not be eligible for a special license. Bingo games shall be permitted only in the interior of such structures, and the licensee shall not reserve seats or space for any person.

[Ord. #1891, § 1]

A licensee shall conduct a bingo game only on property owned or leased by it, or property whose use has been donated to the organization, prior to the date of the application and which property is used by such organization for an office or for performance of the purposes for which the organization was organized. The license shall state the address of such property and shall authorize the licensee to conduct bingo games only on such property. In the event the described property ceases to be used as an office or a place for performance of the purposes for which the licensee was organized, the license shall terminate immediately and shall have no further force or effect. The organization may apply for a new license when it again owns or leases property used by it for an office or for performance of the purposes for which the organization was organized.

[Ord. #1891, § 1]

a. The bingo license, the City's rules and regulations and the licensee's rules of bingo operation shall at all times be posted conspicuously at the public entrance to the room in which bingo is played. The posted rules shall be readable, legible and accessible to all participants.

b. A member of the licensee organization shall be designated as "Bingo Manager." A second member of the organization may be designated "Assistant Bingo Manager." The Bingo Manager shall be ultimately responsible for the conduct and operation of the bingo games and for the compliance with all applicable laws, rules and regulations promulgated thereunder. The Bingo Manager or the Assistant Bingo Manager shall be present at all times during the playing of any bingo game.

c. All staff members of a licensee shall wear on their outside clothing an identification insignia or badge, no less than 2 1/2 inches by 3 1/2 inches in dimension, indicating the name of the organization and the name and title of the staff member.

d. Prior to commencing each bingo game the prize shall be announced and a facsimile of the type of bingo games to be played shall be clearly displayed to all participants.

e. All prizes shall be awarded immediately following each bingo game.

f. All bingo games shall be completed during each session.

g. Bingo numbers selected in each bingo game shall be announced to all players and be displayed in full view of all players. An adequate public address system shall be utilized.

h. Equipment used and the method of playing bingo shall be such that each card shall have an equal opportunity to win each game.

[Ord. #1891, § 1]

At all times during the conduct of bingo games, the licensee shall have available on the premises a list of the members operating the bingo games.

[Ord. #1891, § 1]

No licensee shall issue chips or money to any person on credit nor allow any person to play on credit.

[Ord. #1891, § 1]

The serving and consumption of alcoholic beverages is prohibited in any room where bingo games are being conducted.

[Ord. #1891, § 1]

No person under 18 years of age shall be allowed to participate in or operate any bingo game.

[Ord. #1891, § 1]

No person who is obviously intoxicated shall be allowed to participate in any bingo game.

[Ord. #1891, § 1]

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

[Ord. #1891, § 1]

No person shall interfere with, prevent or refuse to permit a police officer to make an inspection or examination of any premises where bingo games are conducted for the purpose of determining whether the licensee is complying with the provisions of Section 326.5 of the Penal Code and this section.

[Ord. #1891, § 1]

It is a misdemeanor under Section 326.5(b) of the Penal Code for any person to receive or pay a profit, wage or salary from any bingo game authorized under this section. Any violation 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.