Eastvale Municipal Code Ch. 6.04 Bingo

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State Law reference— Legislature by statute may authorize cities and counties to provide for bingo games for charitable purposes, Cal. Const. art. IV, § 19; municipalities not prohibited from licensing and regulating by ordinance bingo games for charitable purposes, Penal Code § 326.5; municipalities that adhere to procedural requirements of The Gambling Control Act authorized to enact ordinances permitting and regulating controlled gambling, Government Code § 19960 et seq.

This chapter is intended to authorize, license and regulate traditional and remote caller bingo games in the incorporated area of the city.

(Ord. No. 2011-04, §§ 1, 2, 1-26-2011)

This chapter is adopted pursuant to article IV, section 19(c) of the state constitution and Penal Code §§ 326.3 and 326.4, remote caller bingo, and 326.5, traditional bingo. All references to Penal Code sections set forth in this chapter include those sections as may be amended from time to time.

(Ord. No. 2011-04, §§ 1, 2, 1-26-2011)

(a) Traditional bingo games, as defined in Penal Code §§ 326.3, 326.4 and 326.5(o), may lawfully be played within the incorporated areas of the city pursuant to provisions of Penal Code § 326.5 and this chapter, and not otherwise.

(b) Remote caller bingo, as defined in Penal Code § 326.3(u)(1), may be lawfully played in the incorporated areas of the city pursuant to the provisions of Penal Code §§ 326.3 and 326.4 and this chapter, and not otherwise.

(Ord. No. 2011-04, §§ 1, 2, 1-26-2011)

(a) License obtained from city.

(1) A traditional bingo license must first be obtained from the city before conducting a traditional bingo game.

(2) Before conducting a remote caller bingo game, a traditional bingo license and a remote caller bingo license must first be obtained from the city.

(b) It shall be unlawful for:

(1) Any organization to conduct traditional or remote caller bingo game in the incorporated area of the city unless such organization is a qualified organization as set forth in section 6.04.050 and has first obtained a license as required by subsection (a) of this section;

(2) Any person to conduct traditional or remote caller bingo in the incorporated area of the city unless such person is a member of a qualified organization as set forth in section 6.04.050 and is acting on behalf of such qualified organization that has been issued a license as provided by subsection (a) of this section; or

(3) Any person leasing, owning or in possession of real property to permit or allow their property to be used to conduct traditional or remote caller bingo games in the incorporated area of the city unless the bingo games are being conducted by a qualified organization pursuant to a license in accordance with this chapter.

(c) For the purpose of this chapter, the term "person" means any natural person, firm, association, club, organization, corporation, partnership, business trust, company or other entity which is recognized by law as the subject of rights or duties.

(Ord. No. 2011-04, §§ 1, 2, 1-26-2011)

(a) The following are qualified organizations which may apply to the chief of police for a license to conduct traditional bingo games:

(1) An organization exempt from the payment of the bank and corporation tax by Revenue and Tax Code §§ 23701 and 23701(a), (b), (d), (e), (f), (g), (k), (l) or (w);

(2) A mobilehome park association;

(3) A senior citizens organization; and

(4) Charitable organizations affiliated with a school district.

(b) Any organization qualified to receive a traditional bingo license issued pursuant to section 6.04.040(a) may also apply for a license to conduct remote caller bingo games if the organization:

(1) Possesses a valid traditional bingo license; and

(2) Has been incorporated or in existence for three years or more.

(Ord. No. 2011-04, §§ 1, 2, 1-26-2011)

State Law reference— Qualifications for organization to receive license to conduct remote caller bingo, Penal Code § 326.3(b)(4), (5).

(a) Applications for a traditional bingo license and for a remote caller bingo license or a renewal thereof shall be filed with the office of the chief of police on forms prescribed by the chief of police and shall be signed under penalty of perjury.

(b) A separate application must be completed for a traditional bingo license and for a remote caller bingo license. A traditional bingo license is required for a remote caller bingo license, and can be applied for at the same time.

(c) A separate application must be completed for each property location where bingo will be conducted. For remote caller bingo, a separate application is required for both the location where the bingo game is called or broadcast, and each location receiving the broadcast.

(d) The qualified organization shall designate a person as having fiduciary responsibility for the game.

(e) An application shall not be filed unless the applicant is a qualified organization which has owned or leased property, or has property whose use is donated to it, within the incorporated area of the city that:

(1) Was used by the applicant for the performance of the purposes for which it is organized, for at least 12 months immediately preceding the filing of such application; and

(2) The property upon which the bingo game is to be conducted is property so owned or leased by, or whose use is donated to, the applicant.

(f) An application shall be filed:

(1) Not less than 30 days prior to the proposed date of the bingo game; and

(2) Not later than 30 days after obtaining written verification from the city planning department confirming that:

a. There is improved vehicular access to the premises where the bingo game is to be conducted; and

b. Such premises contain off-street vehicle parking facilities at a minimum ratio of not less than one parking space for each two seats (one seat is defined as an area of 7½ square feet); and

(3) Not later than 30 days after obtaining written verification from the county building and safety department that the bingo operation complies with county Ordinance Nos. 457 and 546.

(g) The application shall be accompanied by any information reasonably necessary to permit the chief of police or designee to determine that the bingo operations and games will be conducted in compliance with this chapter and all applicable state laws, city ordinances and regulations, including the following, as applicable:

(1) A certificate issued by the state franchise tax board certifying that the applicant is exempted from the payment of the bank and corporation tax as set forth in section 6.04.050(a)(1); and

(2) Any additional evidence as the chief of police or designee determines is necessary to verify that the applicant is a duly organized mobilehome park association of a mobilehome park situated in the incorporated area of the city.

(h) The chief of police may investigate the truth of the matters set forth in the application and submittals and the character of the applicant and may inspect the premises to be used for the bingo operations and games. The chief of police may make inquiries to any office or department of the city and to any state or federal agencies in the chief's discretion in order to carry out a proper investigation of applicant and the organization.

(i) A license shall not be granted until the chief of police or designee has verified the facts stated in the application and determined that the applicant is qualified

(Ord. No. 2011-04, §§ 1, 2, 1-26-2011)

A separate application and fee is required for each property location where a traditional or remote caller bingo game will be conducted. For remote caller bingo, a separate application and fee is required for the location where the bingo will be called or broadcasted and each location receiving the broadcast.

(1) Traditional bingo license.

a. The application fee for a traditional bingo license shall be $50.00 and shall accompany the filing of each application.

b. If the application for a license is denied, one-half of the application fee shall be refunded to the applicant.

c. An additional fee for law enforcement and public safety costs incurred by the city that are directly related to bingo activities may be imposed by resolution of the city council and shall be collected monthly by the city. The fee shall not exceed the actual costs incurred in providing the service.

(2) Remote caller bingo license.

a. Each application for a remote caller bingo license shall be accompanied by a nonrefundable filing fee in an amount determined by resolution of city council, from time to time.

b. The application fee for a remote caller bingo license shall be in addition to the application fee for a traditional bingo license set forth in subsection (1) of this section.

(Ord. No. 2011-04, §§ 1, 2, 1-26-2011)

(a) A traditional bingo license shall expire 12 months after the date of issuance. A remote caller bingo license shall expire at the end of the calendar year after the date of issuance or upon expiration of the traditional bingo license, whichever is earlier.

(b) A new license or renewal shall only be granted on the filing of a new application and the deposit of the required application fees.

(Ord. No. 2011-04, §§ 1, 2, 1-26-2011)

The issuance of a license to an applicant creates no vested right on the part of the licensee to continue to offer bingo for play. The city council expressly reserves the right to amend or repeal the ordinance from which this chapter is derived, or any provision thereof, at any time. If this chapter or any provision thereof is repealed, all licenses issued pursuant to this chapter or provision thereof shall cease to be effective for any purpose on the effective date of the repealing legislation.

(Ord. No. 2011-04, §§ 1, 2, 1-26-2011)

Each license issued hereunder shall be issued to a specified qualified organization to conduct a bingo game at a specified location and shall in no event be transferable from one organization to another or from one location to another.

(Ord. No. 2011-04, §§ 1, 2, 1-26-2011)

(a) Any approval granted pursuant to this chapter shall be subject to the conditions contained in Penal Code §§ 326.3 and 326.4, remote caller bingo, and 326.5, traditional bingo, and each licensee shall comply with all applicable state and local laws and regulations.

(b) The licensed qualified organization is responsible for ensuring that the conditions of this chapter and Penal Code §§ 326.3 and 326.4, remote caller bingo, and 326.5, traditional bingo, are complied with by the organization and its officers and members. A violation of any one or more of those conditions or provisions shall constitute cause for the revocation of the license to conduct traditional or remote caller bingo games.

(c) A qualified organization shall conduct bingo games only on property owned or leased by it, or on property whose use is donated to such 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 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, such organization.

(d) All bingo games shall be open to the public, not just to the members of the qualified organization.

(e) No person shall be allowed to participate in bingo games unless the person is physically present at the time and place where the bingo game is being conducted. A person shall be deemed to be physically present at the place where the remote caller bingo game is being conducted if he is present at any of the licensed locations participating in the remote caller bingo game in accordance with this chapter and Penal Code § 326.3(n).

(f) No minors shall be allowed to participate in any bingo game.

(g) Bingo games shall be operated and staffed only by members of the licensed qualified organization. Only the licensed qualified organization shall operate the bingo game or participate in the promotion, supervision or any other phase of such game. Such organization shall have written policies incorporated in its constitution, articles, by-laws or other regulations setting forth the manner in which a person may become a member of the organization, and absent any such written policies, it shall be presumed that the organization has no members who may operate and staff a bingo game. This subdivision does not preclude the employment of security personnel, who are not members of the qualified organization, at a bingo game by the organization conducting the game.

(h) The receipts from the bingo games shall only be used for charitable purposes as set forth in Penal Code § 326.5, traditional bingo, and Penal Code § 326.3, remote caller bingo, and this chapter.

(i) No person shall receive or pay a profit, wage, salary or percentage from any bingo game authorized by this chapter.

(j) No individual, corporation, partnership or other legal entity, except the licensed qualified organization, shall hold a financial interest in the conduct of bingo games.

(k) The total value of prizes available to be awarded during the conduct of any traditional bingo game, not including remote caller bingo games, shall not exceed $500.00 in cash or kind, or both, for each separate game which is held.

(l) With respect to organizations exempt from payment of the bank and corporation tax by Revenue and Taxation Code § 23701(d), 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 profits shall be used only for charitable purposes; that is, for the purposes for which such organizations are organized pursuant to their articles of incorporation or for purposes clearly incidental thereto. With respect to other organizations authorized to conduct bingo games pursuant to the provisions of this chapter, all proceeds derived from a bingo game shall be kept in a special fund and account and shall not be commingled with any other fund or account. Such proceeds shall be distributed to organizations that are tax exempt under Revenue and Taxation Code § 23701(d) to be used for charitable purposes as defined in this section and subsection (h) of this section, except as follows:

(1) Such proceeds may be used for prizes.

(2) A portion of such proceeds, not to exceed 20 percent of the proceeds before the deduction for prizes, or $2,000.00 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.

The licensee shall keep full and complete accounting records supported by properly executed contracts, leases, receipts, and other related documents which pertain to all monies, or other forms of income, collected in connection with the conduct of any of its bingo games, disbursed for expenditures in connection therewith and remaining or distributed for charitable purposes. Such records shall be clearly identified and readily accessible. Officials of the city shall have the right to examine and audit such records at any reasonable time, and the licensee shall fully cooperate with such officials by making such records available. At the end of any month during which any bingo game is conducted, the licensee shall file with the chief of police a full and complete financial statement of all monies collected and disbursed and the amount remaining or distributed for charitable purposes.

(m) Remote caller bingo games. The following additional provisions and limitations apply to remote caller bingo games:

(1) Remote caller bingo games shall not be conducted by any licensee on more than two days during any week, except that a licensee may hold one additional game, at its election, in each calendar quarter.

(2) Remote caller bingo shall not include any site not located within this state.

(3) No more than 750 players may participate in a remote caller bingo game in a single location unless the governor of the state has declared a state of emergency and the conditions of Penal Code § 326.3(j)(3) have been and will be satisfied.

(4) The remote caller bingo licensee shall also maintain a valid traditional bingo license issued pursuant to this chapter.

(5) Notwithstanding subsection (g) of this section, and subject to the provisions of subsections (m)(6) and (7) of this section, administrative, managerial, technical, financial or security personnel who are not members of the licensed qualified organization may be employed by the licensed qualified organization conducting the remote caller bingo game.

(6) Notwithstanding any other provisions of law, exclusive, or other agreements between the licensed qualified organization and other entities or persons to provide services in the administration, management or conduct of the remote caller bingo game shall not be considered a violation of the prohibition against holding a legally cognizable financial interest in the conduct of the remote caller bingo game by persons or entities other than the licensed qualified organization, provided that those persons or entities obtain the gambling licenses, the key employee licenses, or the work permits required by, and otherwise comply with, chapter 5 (commencing with section 19800) of division 8 of the Business and Professions Code. Fees to be paid under any such agreements shall be reasonable and shall not be determined as a percentage of the receipts or other revenues from, or be dependent on the outcome of, the game.

(7) A qualified organization authorized to conduct a remote caller bingo game pursuant to this chapter shall not have overhead costs exceeding 20 percent of the gross sales, except that the limitations of this section shall not apply to one-time, nonrecurring capital acquisitions. For purposes of this subsection, the term "overhead costs" includes, but is not limited to, amounts paid for rent and equipment leasing and the reasonable fees authorized to be paid to administrative, managerial, technical, financial, and security personnel employed by the organization pursuant to this subsection and subsection (m)(6) of this section.

(8) For the purpose of keeping its overhead costs below 20 percent of the gross sales, an authorized organization may elect to deduct all or a portion of the fees paid to financial institutions for the use and processing of credit card sales from the amount of gross revenues awarded for prizes. In that case, the redirected fees for the use and processing of credit card sales shall not be included in "overhead costs" as defined in the California Remote Caller Bingo Act (Penal Code § 326.3 et seq.). Additionally, fees paid to financial institutions for the use and processing of credit card sales shall not be deducted from the proceeds retained by the charitable organization.

(9) The value of the prizes awarded during the conduct of any remote caller bingo game shall not exceed 37 percent of the gross receipts for that game. When an authorized organization elects to deduct fees paid for the use and processing of credit card sales from the amount of the gross revenues for that game awarded for prizes, the maximum amount of gross revenues that may be awarded for prizes shall not exceed 37 percent of the gross receipts for that game, less the amount of redirected fees paid for the use and processing of credit card sales.

(10) Every remote caller bingo game shall be played until a winner is declared.

(11) Progressive prizes are prohibited.

(12) The declared winner of a remote caller bingo game shall provide his identifying information and a mailing address to the onsite manager of the remote caller bingo game.

(13) Prizes shall be paid only by check; no cash prizes shall be paid. The organization conducting the remote caller bingo game may issue a check to the winner at the time of the game, or may send a check to the declared winner by United States Postal Service certified mail, return receipt requested.

(14) All prize money exceeding state and federal exemption limits on prize money shall be subject to income tax reporting and withholding requirements under applicable state and federal laws and regulations, and any reports and withholding shall be forwarded within ten business days to the appropriate state or federal agency on behalf of the winner. A report shall accompany the amount withheld identifying the person on whose behalf the money is being sent.

(15) Any game interrupted by a transmission failure, electrical outage, or act of God shall be considered void in the location that was affected. A refund for a cancelled game or games shall be provided to the purchasers.

(Ord. No. 2011-04, §§ 1, 2, 1-26-2011)

Any peace officer of the city shall have free access to any bingo game licensed under this chapter. The licensee shall have the bingo license, lists of approved staff and accounting documents relating to all monies collected, disbursed and distributed available to such peace officer for inspection at all times during any bingo game or during licensee's normal business hours.

(Ord. No. 2011-04, §§ 1, 2, 1-26-2011)

(a) The chief of police or designee may deny an application for a bingo license upon a finding that:

(1) The applicant does not fulfill the specific requirements for such license as set forth in this chapter;

(2) The applicant, or any agent or representative thereof, has knowingly made any false, misleading or fraudulent statement of a material fact in the application or any document in connection therewith;

(3) The applicant, or any of its members, is not of good moral character. If the applicant has, or any of its members have, been convicted of any felony under the laws of this state or has been previously convicted of an offense under the laws of any other state of the United States which offense if committed in this state would have been punishable as a felony, it shall be presumed that the applicant is not of good moral character; or

(4) The applicant is unfit to conduct bingo games.

(b) The chief of police or designee may suspend or revoke a license upon a finding that:

(1) The licensee has, or any of its members have, violated any of the provisions of this chapter; or

(2) The bingo game does not or will not comport with the public welfare for any reason or that the bingo game has been conducted in an illegal, improper or disorderly manner, or in a manner substantially different from that described in the application, or for any reason for which the license application could have been denied.

(c) If, after an investigation, the chief of police or designee determines that a bingo license should be suspended or revoked or that an application for such license be denied, he shall prepare a notice of suspension or revocation or denial of application setting forth the reasons for such suspension, revocation or denial. Such notice shall be served personally on the licensee or applicant, or sent by registered or certified mail, postage prepaid, return receipt requested to the licensee's or applicant's last address as provided in the application.

(d) Any organization whose bingo license has been denied or revoked may not apply for a license to conduct any bingo games for a period of one year from the date notice of such denial or revocation was mailed to it, or if affirmed on appeal by the city council as provided in section 6.04.140, from the date of such affirmation; provided, however, if the reason for revocation is cancellation of the exemption granted under Revenue and Taxation Code § 23701(a), (b), (e), (f), (g) and (l), such organization may again apply for a bingo license upon proof of reinstatement of such exemption.

(Ord. No. 2011-04, §§ 1, 2, 1-26-2011)

(a) Any person who has had an application for a bingo license denied by the chief of police, or who has had a bingo license suspended or revoked by the chief of police, may appeal the decision by filing with the city clerk, within 15 days after the date of such decision, a written notice of appeal briefly setting forth the reasons why such denial, suspension or revocation is not proper. Failure to timely file a written notice of appeal shall be deemed a waiver of the right to appeal the decision of the chief of police. The city clerk shall give written notice of the time and place of the hearing to the appellant.

(b) Such appeal shall be heard by the city council which may affirm, amend or reverse the decision or take such other action as it deems appropriate. In conducting the hearing, the city council shall not be limited by the technical rules of evidence.

(Ord. No. 2011-04, §§ 1, 2, 1-26-2011)

(a) It is a misdemeanor for any person to receive or pay a profit, wage or salary from any remote caller bingo game. A violation of this subdivision shall be punishable by a fine not to exceed $10,000.00, which fine is deposited in the general fund of the city pursuant to Penal Code §§ 326.3(d) and 326.5(c). Notwithstanding this subsection, administrative, managerial, technical, financial and security personnel employed by the licensed qualified organization conducting the bingo game may be paid reasonable fees for services rendered from the revenues of remote caller bingo games, as provided for in section 6.04.110(m)(6) and (7), except that fees paid under those agreements shall not be determined as a percentage of receipts or other revenues from, or be dependant on, the outcome of the game.

(b) A violation of any provision of this chapter is a misdemeanor. However, any misdemeanor violation of this chapter may also be prosecuted as an infraction. Except as provided in subsection (a) of this section, any person convicted of a misdemeanor for violation of this chapter is punishable by a fine of not more than $1,000.00 or by imprisonment not to exceed six months, or both fine and imprisonment. Any person convicted of an infraction for violation of this chapter is punishable by a fine of not more than $250.00.

(c) Any infraction violation of this chapter may be enforced by the administrative citation procedure set forth in this Code.

(d) The city may also bring an action to enjoin or abate any violation of any provision of this chapter. Violations of this chapter are hereby declared to be a public nuisance. The prevailing party in such an action shall be authorized to recover their attorney fees and costs in accordance with Government Code § 25845. In no action, administrative proceeding, or special proceeding shall an award of attorneys' fees to a prevailing party exceed the amount of reasonable attorneys' fees incurred by the city in the action or proceeding.

(e) All penalties and remedies provided for herein shall be cumulative and not exclusive. The conviction and punishment of any person hereunder shall not relieve such person from the responsibility of correcting or abating the violation, nor prevent the enforced correction or abatement thereof. Each and every day during any portion of which any violation of any provision of this chapter or the license, authorization or conditions of approval is committed, continued, or permitted by such person, shall be deemed a separate and distinct offense.

(Ord. No. 2011-04, §§ 1, 2, 1-26-2011)

The provisions of section 6.04.150 are to be construed as added remedies and not in conflict or derogation of any other actions or proceedings or remedies otherwise provided by law.

(Ord. No. 2011-04, §§ 1, 2, 1-26-2011)