Lancaster Municipal Code Ch. 5.08 Bingo for Charitable Purposes

Bingo games for charitable purposes are authorized pursuant to Section 19, Article IV, of the California Constitution, and Section 326.5 of the Penal Code and in accordance with the provisions of this chapter.

(Prior code § 6-6.1)

It is unlawful for any person to engage in the operation of a bingo game in the city without first having secured a license from the city to do so. Such licenses to operate a bingo game shall be issued by the city manager or his designee only after receipt of an application form properly and fully completed; after determination by the city manager or his designee that the applicant is an organization qualified to receive such a license, as hereinafter provided; and upon payment by such applicant of a license fee in an amount which shall be established by the council and which may be, from time to time, amended. If an application for a license is denied, one-half of the application fee shall be refunded to the organization. An additional fee of one percent of the monthly gross receipts over five thousand dollars ($5,000.00) derived from bingo games shall be collected monthly by the city. Each applicant shall on or before the last day of each month following the close of each calendar quarter make a report to the city manager or his designee of the monthly gross receipts derived from bingo games and remit the full amount of the additional fee with the report. In the event of any proposed change in the location of any such bingo game, or the date or dates thereof, or the party or parties responsible for the conduct of any such game, the applicant shall file an application amendment with the city manager or his designee. Any licenses issued under the provisions of this chapter shall be valid for a period of twelve (12) months.

(Prior code § 6-6.2)

Every organization desiring a license pursuant to this chapter shall file an application with the city clerk upon a form to be provided by the city clerk, and at such time pay the required fee. The application shall be filed at least sixty (60) days prior to the conduct of any bingo game(s), and shall specify:

A. The name, address and telephone number of the local applicant organization, the nature of the organization, and a statement that applicant is an eligible organization as defined by Section 5.08.040;

B. The names and addresses of all officers and directors of the eligible organization;

C. A list of the names of all members of the applicant organization who will operate and staff bingo games, and the date they became members;

D. A detailed schedule of the date(s), hours, location(s) and occupancy capacity of such location(s) of each bingo game to be held;

E. A detailed description of the record system to account for the receipts, prizes, expenses and profits of each bingo game;

F. A detailed description of the purpose and business of the organization which must be other than the conduct of bingo games;

G. The location and signatures of the special bank account(s) required by Section 5.08.110;

H. Whether the maximum number of players at any time will be less than one hundred (100);

I. The specific charitable purpose(s) which the bingo proceeds will benefit;

J. A statement that the applicant agrees to conduct bingo games in strict accordance with the provisions of Section 326.5 of the Penal Code and this chapter, as they may be amended from time to time, and agrees that the license to conduct bingo games may be revoked upon violation of any such provision;

K. The address to which notice, when required, is to be sent or mailed, and the names of any individual or individuals, in addition to those set forth elsewhere in the application, who are authorized to accept service of process on behalf of the licensee;

L. Whether the application is for a new license or a renewal of an existing license;

M. The application shall be signed by at least two officers, including the presiding officer of the local organization;

N. The application shall be verified as provided in the Code of Civil Procedure for the verification of pleadings.

(Prior code § 6-6.3)

A. Bingo games shall be operated within the city only by or for the benefit of organizations exempted from the payment of the bank and corporation tax by Revenue and Taxation Code Sections 23701(a) (labor, agricultural, or horticultural organizations); 23701(b) (fraternal beneficiary societies, orders or organizations; conditions); 23701(d) (religious, charitable, scientific, literary, educational and humanitarian corporations); 23701(e) (business leagues, chambers of commerce, real estate boards, and boards of trade; conditions); 23701(f) (civic leagues, social welfare and employees' organizations; conditions); 23701(g) (nonprofit pleasure and recreation clubs); 23701(l) (voluntary government employees' beneficiary organizations; conditions); and by mobilehome park associations and senior citizens organizations; provided that the receipts of those games are used only for charitable purposes.

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

(Ord. 695 § 1 (part), 1995: prior code § 6-6.4)

Any holder of a license whose license is revoked under this section shall have the right to file a written appeal to the city council in accordance with the uniform appeal procedure. Such appeal shall set forth the specific ground or grounds on which the appeal is based. At the appeal hearing the appellant or its authorized representative shall have the right to present evidence either written or oral in support of the appeal. The determination of the city council on the appeal shall be final.

(Prior code § 6-6.5)

It shall be a misdemeanor for any person to receive or pay a profit, wage or salary from any bingo game authorized by this chapter. A violation of any provision of this section shall be punishable by a fine not to exceed ten thousand dollars ($10,000.00) which fine shall be deposited in the general fund of the city. A violation of any other section of this chapter other than this section is a misdemeanor.

(Prior code § 6-6.6)

No person under the age of eighteen (18) years shall be allowed to participate in any bingo game, or in the operation thereof.

(Prior code § 6-6.7)

An organization authorized to conduct bingo games pursuant to this chapter shall conduct a bingo game only on property owned or leased by it, or property whose use is donated to the organization, and which property is used by that organization for an office or for performance of the purposes for which the organization is organized. Nothing herein shall be construed to require that the property owned or leased by, or whose use is donated to, the organization be used or leased exclusively by, or donated exclusively to, that organization. Said property may be used for the conduct of bingo games no more than three times per week.

(Ord. 695 § 1 (part), 1995: prior code § 6-6.8)

All bingo games authorized by this chapter shall be open to the public, and shall not be limited to members of the authorized organization conducting such bingo games.

(Prior code § 6-6.9)

A bingo game authorized by this chapter shall be operated and staffed only by members of the charitable or nonprofit organization authorized to conduct such game. Only the organization licensed to conduct a bingo game shall operate such game or participate in the promotion, supervision or any other phase of such game. In addition, no individual, corporation, partnership or other entity except the organization licensed to conduct the bingo game shall hold a financial interest in the conduct of such bingo game. At least two members of the licensed organization shall jointly count all bingo proceeds.

(Prior code § 6-6.10)

With respect to organizations authorized to conduct bingo games pursuant to this chapter, all profits and/or proceeds 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. As part of the application, the city manager shall be notified of the location of the bank account set up for the bingo proceeds, as well as the signatures required thereon. Any and all disbursements from the special fund or account shall be by check, with the exception of the award of cash prizes as provided in Section 5.08.120. The city shall have the right to examine and audit the records of an organization authorized to conduct a bingo game pursuant to this chapter, and such records shall be made available at reasonable times.

(Ord. 695 § 1 (part), 1995: prior code § 6-6.11)

With respect to organizations exempt from payment of the bank and corporation tax by Section 23701(d) of the Revenue and Taxation Code, all profits derived from a bingo game shall be kept in a special fund or account, in accordance with the provisions of Section 5.08.110. Those profits shall be used only for charitable purposes. With respect to other organizations authorized to conduct bingo games pursuant to this chapter, all proceeds derived from a bingo game shall be kept in a special fund or account in accordance with the provisions of Section 5.08.110. Proceeds are the receipts of bingo games conducted by organizations, other than those organizations which are exempt from payment of the bank and corporation tax by Section 23701(d) of the Revenue and Taxation Code. Those proceeds shall be used only for charitable purposes, except as follows:

A. The proceeds may be used for prizes.

B. A portion of the proceeds, not to exceed twenty (20) percent of the proceeds before deduction for prizes, or two thousand dollars ($2,000.00) per month, whichever is less, may be used for the rental of property and for overhead, including the purchase of bingo equipment, administrative expenses, security equipment, and security personnel.

C. The proceeds may be used to pay license fees.

D. If the monthly gross receipts from bingo games of an organization within this chapter exceed five thousand dollars ($5,000.00), no less than eighty (80) percent of the proceeds shall be used only for charitable purposes not relating to the conducting of bingo games and the balance shall be used for prizes, rental of property, overhead, administrative expenses, and payment of license fees. The amount of proceeds used for rental of property, overhead, and administrative expenses is subject to the limitations specified in subsection B of this section.

(Ord. 695 § 1 (part), 1995: prior code § 6-6.12)

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

(Prior code § 6-6.13)

A. The total value of prizes awarded during the conduct of any bingo games shall not exceed five hundred dollars ($500.00) in cash or kind, or both, for each separate game which is held. For purposes of this section, the word "kind" shall mean any prize other than cash, and shall be given a value equal to the cost to the charitable organization for the acquisition of such item.

B. A record shall be kept on forms approved by the City by the licensee showing the name and written signature of the winner and the consecutive serial number of the receipt for the prize.

(Ord. No. 929, § 1, 7-28-09; prior code § 6-6.14)

The following rules and regulations shall apply to all bingo operators:

A. No person who is intoxicated shall be allowed to participate in a bingo game.

B. No bingo game shall be conducted between the hours of twelve (12) midnight and ten (10) a.m., nor shall any licensee conduct bingo games on more than three days per week unless otherwise authorized by the city council.

C. No licensee shall issue chips or money to a patron on credit or loan or allow any patron to play on credit.

(Prior code § 6-6.15)

No organization shall engage in, conduct or carry on, or permit to be engaged in, conducted or carried on, in or upon any premises within the city the operation of a bingo game unless such game is conducted under the personal direction of a bingo manager, duly licensed pursuant to Sections 5.08.170 and 5.08.180, for each bingo game. The bingo manager shall be present on the premises during the operation of all bingo games.

(Prior code § 6-6.16)

To obtain a bingo manager license, such applicant shall file with the city clerk an application therefor in writing. The application shall set forth, in addition to such information as may be required by the city:

A. A statement that neither the bingo manager nor the members of the nonprofit organization which operate any bingo game organized by such organization, will receive any profit, wage or salary from any bingo game;

B. A statement that the bingo manager applicant has read and understands all requirements of the law in regard to conducting bingo games in the city, and that such bingo manager will accept full responsibility for the conduct of such bingo games and all members who will operate and staff the bingo games.

(Prior code § 6-6.17)

No person may be licensed as a bingo manager unless he is a nonsalaried, noncompensated member of the organization licensed to conduct bingo games, and has been a member for at least six months.

(Prior code § 6-6.18)