Corona Municipal Code Ch. 5.13 Nonprofit Organization Controlled Game Fundraisers

Pursuant to the conditions and restrictions of California Business and Professions Code Sections 19985-19987, a nonprofit organization may conduct a fundraiser using controlled games as a funding mechanism to further the purposes and mission of the nonprofit organization. As used in this chapter, "nonprofit organization" means an organization qualified under California Business and Professions Code Sections 19985-19987, as such sections may be amended from time to time. Those sections currently require nonprofit organizations to have been qualified to conduct business in California for at least three years prior to conducting controlled games, to register annually with the Division of Gambling Control, and to fall within those types of organizations listed in the provisions of California Business and Professions Code Section 19986(h). For the purposes of this chapter, "controlled games" has the same meaning as that provided by Penal Code Section 337j(e), as that section may be amended from time to time, and includes any poker or Pai Gow game, and any other game played with cards, tiles, or both, and approved by the Division of Gambling Control. "Division of Gambling Control" means the Division of Gambling Control within the California Department of Justice.

(Ord. 2876 § 2 (part), 2007.)

No controlled game fundraiser shall be conducted without a valid and unexpired use permit. Only those nonprofit organizations described in § 5.13.010 above are eligible to apply for a controlled game fundraiser permit. Eligible organizations shall file a written application for a controlled game fundraiser permit with the Corona Police Department on a form provided by the Corona Police Department. The issuing authority shall be the Chief of Police. A permit shall authorize the holder to conduct one controlled game fundraiser per year, on the date specified in the permit.

(Ord. 2876 § 2 (part), 2007.)

The Police Department shall provide assistance to any organization wishing to submit an application for a controlled game fundraiser permit, in the form of information and guidance regarding both the city and Division of Gambling Control processes. An organization may first apply for and receive Division of Gambling Control permission and then make application to the city, or may come to the Police Department for written information and assistance regarding how best to concurrently apply for and receive Division of Gambling Control permission and a city permit.

(Ord. 2876 § 2 (part), 2007.)

(A) An application for a controlled game fundraiser permit shall contain the following:

(1) The name of the applicant nonprofit organization and a statement that the applicant organization is eligible to apply for a permit under the terms of state law and this chapter;

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

(3) The address of the particular property within the city which is owned or leased by the applicant, used by the applicant for an office or for performance of the purposes for which the applicant is organized and on which the controlled game fundraiser will be conducted, together with the occupancy capacity of such location. Should the applicant be using a facility for the fundraiser which is different from that used by the applicant for its work, then the address of the facility in which the controlled game fundraiser will be held, together with the occupancy capacity of such location, shall be supplied;

(4) Proposed hours and day of operation of the controlled game fundraiser;

(5) A statement that the applicant agrees to conduct the controlled game fundraiser in strict accordance with the provisions of California Business and Professions Code Sections 19985 - 19987 and this chapter, as either may be amended from time to time, and that the applicant agrees that the permit may be revoked by the Chief of Police upon violation of any such provisions;

(6) Proof that the applicant organization is a nonprofit organization that has been qualified to conduct business in California for at least three years prior to the filing of such application, and is exempt from taxation pursuant to one or more of those provisions of state or federal law provided for in California Business and Professions Code Sections 19985-19987 and referenced in this chapter. Currently those provisions require the organization to be exempt pursuant to California Revenue and Taxation Code Sections 23701a, 23701b, 23701d, 23701e, 23701f, 23701g, 23701k, 237011 or 23701w, most of which statutes in turn require an organization to be exempt from federal taxation under specific provisions of Section 501(c) of the Internal Revenue Code. A certificate or determination of exemption under the respective subdivision of Internal Revenue Code Section 501(c) corresponding with the type of tax exempt status required under subdivision (A)(6) of this section, or a letter of good standing from the Exemption Division of the California Franchise Tax Board showing such exemption, shall constitute acceptable proof for purposes of this subsection.

(B) The application shall be signed by the applicant under penalty of perjury.

(C) The application for a city permit must be submitted no fewer than 30 days prior to the controlled game fundraiser the applicant proposes to conduct.

(D) If any information contained within an application for a controlled game fundraiser permit becomes inaccurate or requires amendment, such as through changes in the date, time, or location of a controlled gaming fundraiser, the applicant shall immediately submit an amended application containing updated, accurate information. The amended application must be submitted no fewer than ten days prior to the controlled game fundraiser the applicant proposes to conduct.

(Ord. 2876 § 2 (part), 2007.)

Upon receipt of the completed application and exemption information, the Police Department shall, in conjunction with the Fire Department and other necessary departments, review the application and determine whether the property of the applicant qualifies as property on which a controlled game fundraiser may be lawfully conducted under existing fire, occupancy and other requirements, and whether the organization is qualified to conduct the controlled game fundraiser. Attendance at any controlled game fundraiser shall be limited to the occupancy capacity of the room in which such fundraiser is conducted, as determined by the fire and building authorities of the city under applicable laws and regulations. The Police Department shall complete its review of the applicant and application or amended application, and shall notify the applicant of the approval or disapproval of the application, no later than 15 days following its receipt of a completed application.

(Ord. 2876 § 2 (part), 2007.)

(A) If, upon satisfactory conclusion of this review, the Chief of Police determines that all conditions have been met, he or she shall issue a permit to the applicant. The permit shall contain the name and nature of the organization to whom the permit is issued, the address where the controlled game fundraiser is authorized to be conducted, the occupancy capacity of the room or rooms in which controlled games are to be conducted, the expiration date of the permit, a statement that the permittee shall comply with all provisions of this chapter and Business and Professions Code Sections 19985-19987, and such other information as may be necessary or desirable for the full enforcement of the provisions of this chapter.

(B) In addition, the Chief of Police shall impose such conditions as are necessary to ensure compliance with the provisions of this chapter and to protect the public health, safety and welfare, including the safety and security of participants and operators of the controlled game fundraiser and persons and property in the vicinity of the facility where the controlled game fundraiser will be held. Such conditions may include, but are not limited to:

(1) Rules of operation. The permittee shall be required to comply with all then applicable provisions of Business and Professions Code Sections 19985-19987 and this chapter, including § 5.13.080 below.

(2) Nontransferability of permit. Each permit issued is nontransferable, separate and distinct. No person shall exercise the privileges granted under this chapter except the person, firm, corporation, association or persons to whom the permit was issued, and the permit shall be used only at the specific place for which it was issued.

(3) Permit posting and availability. Each permit shall be posted in a conspicuous and publicly accessible place in or upon the premises for which it was issued and shall be shown to any city official upon demand.

Security Personnel. The permittee may be required to provide sufficient security personnel, as determined by the Chief of Police, before, during, and after the controlled game fundraiser in order to protect the safety and security of participants and operators of the controlled game fundraiser and persons and property in the vicinity of the venue where the controlled game fundraiser will be held.

(4) Proceeds of fundraiser. The permittee shall cause the proceeds of the controlled game fundraiser to be promptly removed from the facility where the controlled game fundraiser is held.

(5) Police response costs. The permittee shall acknowledge the applicability of Chapter 9.27 (Charge for Services Related to Police Special Response Team Incidents) and Chapter 9.29 (Charge for Police Response to Large Parties, Gatherings or Events) to its controlled game fundraising event. The inclusion of this reference in this chapter shall not be construed or applied in any manner to mean that Chapters 9.27 and 9.29 do not apply to other events, permits or permits which do not have such an express reference.

(Ord. 2876 § 2 (part), 2007.)

(A) If it appears to the Chief of Police that a permittee is conducting a controlled game fundraiser or allowing controlled game fundraisers to be conducted in violation of any provision of this chapter, or that the permit was obtained by fraudulent representations, the Chief of Police shall have the authority to revoke the permit summarily and order the permittee to cease and desist from any further operation of controlled game fundraisers within the city. Alternatively, the Chief of Police may issue a notice of intent to revoke the permit pursuant to the noticed hearing procedure provided for herein.

(B) Any notice of denial of a permit or notice of intent to revoke issued under this chapter shall also notify the permittee that it shall have five days from the date of the denial or notice of intent to revoke to request a hearing to determine whether such permit shall be denied or revoked. If no such hearing is requested within this five-day period, the permit shall be deemed denied or revoked, as applicable.

(C) Within ten days after receipt of a timely hearing request by the permittee, the Chief of Police shall provide and conduct such a hearing. At this hearing, the permittee may appear for the purpose of presenting evidence and information tending to show why the permit should not be denied or revoked.

(D) No permit shall be denied or revoked under division (C) of this section unless notice of the time and place of the hearing has first been given at least five days before the hearing by depositing in the United States mail a notice directed to the denied or revoked permittee at the address given in permittee's application. Notice shall set forth a summary of the grounds advanced as the basis for the denial or revocation.

(E) A nonprofit organization whose permit is denied or revoked under this section shall conduct no controlled game fundraiser in the city unless the appeal sets aside the permit denial or revocation, or unless a new permit is issued.

(F) Permittees should be aware that pursuant to Business and Professions Code Section 19986(i), the Division of Gambling Control may take legal action against a permittee if it determines that the permittee has violated the provisions of this chapter or those under Section 19986 of the Business and Professions Code.

(Ord. 2876 § 2 (part), 2007.)

(A) A permittee aggrieved by a decision of the Chief of Police with reference to the issuance, renewal, denial or revocation of a permit may appeal pursuant to Chapter 1.09 of this Code.

(B) A nonprofit organization whose permit is revoked by the City Council may not apply again for a permit to conduct controlled game fundraisers in the city for a period of two years from the date of such revocation; provided, however, that if the ground for revocation is cancellation of the organization's tax-exempt status under Internal Revenue Code Section 501(c), such organization may apply again for a permit upon satisfactory proof of reinstatement of this tax-exempt status.

(Ord. 2876 § 2 (part), 2007)

All fundraisers operated under this chapter shall comply with all provisions of Business and Professions Code Sections 19985 - 19987, as such provisions shall be amended from time to time, including, but not limited to, the following:

(A) A nonprofit organization holding a fundraiser pursuant to this chapter shall not conduct more than one fundraiser per calendar year. Eligible nonprofit organizations that have multiple chapters may hold one fundraiser per chapter per calendar year.

(B) Nonprofit organizations seeking to conduct fundraisers pursuant to this chapter must register annually with the Division of Gambling Control, pursuant to Business and Professions Code Sections 19986(e). Each fundraiser shall be pre-approved by the Division of Gambling Control.

(C) Each fundraiser shall not exceed five consecutive hours. No more than four fundraisers shall be conducted at the same location in any calendar year, even if sponsored by different nonprofit organizations, except in rural areas where pre-approved by the Division of Gambling Control pursuant to Business and Professions Code Section 19986(1).

(D) No person who is obviously intoxicated shall be allowed to participate in any controlled game.

(E) No person shall be permitted to participate in the fundraiser unless that person is at least 21 years of age.

(F) No cash prizes or wagers may be awarded to participants, however, the winner of each controlled game may be entitled to a prize from those donated to the fundraiser. An individual prize awarded to each winner shall not exceed a cash value of $500. For each event, the total cash value of prizes awarded shall not exceed $5,000.

(G) At least 90% of the gross revenue from the fundraiser shall go directly to a nonprofit organization.

(1) Compensation shall not be paid from revenues required to go directly to the nonprofit organization for the benefit of which the fundraiser is conducted, and no more than 10% of the gross receipts of a fundraiser may be paid as compensation to the entity or persons conducting the fundraiser for the nonprofit organization.

(2) If an eligible nonprofit organization does not own a facility in which to conduct a fundraiser and is required to pay the entity or person conducting the fundraiser a rental fee for the facility, the fair market rental value of the facility shall not be included when determining the compensation payable to the entity or person for the purposes of this section.

(3) This section does not preclude an eligible organization from using funds from sources other than the gross revenue of the fundraiser to pay for the administration or other costs of conducting the fundraiser.

(H) All permittees shall keep and maintain full and complete records for each fundraiser using controlled games, which shall include:

(1) An itemized list of gross receipts for the fundraiser.

(2) An itemized list of recipients of the net profit of the fundraiser, including the name, address, and purpose for which fundraiser proceeds are to be used.

(3) The number of persons who participated in the fundraiser.

(4) An itemized list of the direct cost incurred for each fundraiser.

(5) A list of all prizes awarded during each fundraiser.

(6) The date, hours, and location for each fundraiser held.

(7) The city shall have the right to inspect these records at any reasonable time, and the Director of Finance may request such inspection if and when the permittee applies for renewal of its annual permit.

(I) Any peace officer of the city shall have free access to any controlled game fundraiser permitted under this chapter. The permittee shall have the controlled game fundraiser permit and lists of approved staff available for inspection at all times during any fundraiser.

(J) No controlled game fundraiser permitted under this chapter may be conducted by means of, or otherwise utilize, any gaming machine, apparatus, or device that meets the definition of a slot machine contained in Penal Code Sections 330b or 330.1.

(K) No controlled game fundraiser permitted under this chapter may be operated or conducted over the Internet.

(Ord. 2876 § 2 (part), 2007.)

(A) No controlled game fundraiser permitted under this chapter may be operated or conducted, or allowed or permitted to be operated or conducted, in such a manner as to require multiple responses to the site of the controlled game fundraiser by the Police Department, such as by disturbing the peace or quiet of the vicinity of the controlled game fundraiser, creating noise in violation of § 9.24.010 of this code, causing a commotion or disturbance on the premises of the controlled fundraiser event or in the vicinity, or creating a threat to public peace, safety and welfare. Any controlled game fundraiser so operated or conducted shall constitute a public nuisance.

(B) A controlled game fundraiser violating § 9.24.010 shall be considered a "large party" for purposes of Chapter 9.29 of this code. The holder of a permit issued pursuant to § 5.13.050, or any officer, official, employee, or volunteer of such permittee responsible for operating, conducting, or allowing the operation or conduct of a controlled game fundraiser in violation of this section, shall be considered a "person responsible for the large party" for purposes of Chapter 9.29 of this code, and/or the "responsible party" for purposes of Chapter 9.27 of this code, as applicable.

(C) The police service fee described in Chapter 9.29 of this code, and/or the services fee described in Chapter 9.27, may be imposed for violations of this section, as described in this section and in Chapters 9.27 and 9.29, and may be collected through the procedures in Chapters 9.27 and/or 9.29 or by either of the following alternatives:

(1) A monetary judgment against the person responsible for the violation; or

(2) A nuisance abatement lien or assessment against the real property at which the violation occurs. If this alternative is used, the peace officer shall provide any owner, lessee, agent, occupant and person having charge or control of the controlled game fundraiser at which the violation occurs with a notice informing such person or entity of a reasonable time frame within which to abate such violation. Said notice shall further inform such person or entity that the city shall hold a hearing in accordance with the procedures set forth in Chapter 8.32 to establish the city's right to recover the police service fee as either a nuisance abatement lien or assessment.

(D) The chief of police or his or her designee shall cause appropriate billings to be sent to the person against whom a police service fee is imposed. Each person responsible for the violation for which a police service fee is imposed under this section shall be jointly and severally liable for the public safety service fee. Where there is more than one person responsible for a violation of this section, the chief of police or designee may in his or her discretion bill each such person for the portion of the public safety service fee that is attributable to such person's actions in causing the violation of this section.

(Ord. 2876 § 2 (part), 2007.)