Chapter 5.20 — BINGO

As used in this Chapter, "bingo" means a game 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. The game of "bingo" shall also include "break-open" or "pull-tab" type cards having numbers or symbols that are concealed and preprinted in a manner providing for distribution of prizes.

(Ord. C-7423 § 16, 1996: Ord. C-7217 § 1, 1994: Ord. C-6260 § 1 (part), 1986)

The game of bingo shall not be allowed, played, or conducted except pursuant to a permit obtained from the Chief of Police in the manner as provided in this Chapter. The permit shall be posted in a conspicuous place on the premises where bingo games are conducted so as to be easily seen. No more than three (3) separate eligible organizations, as that term is defined in Section 5.20.030 of this Chapter, may apply for and be issued a permit to operate from the same location provided that each organization conduct its bingo game on different days of the week.

(Ord. C-7423 § 16, 1996: Ord. C-7231 § 1, 1994: Ord. C-6260 § 1 (part), 1986)

Organizations exempted from the payment of the bank and corporation tax, by Sections 23701a, 23701b, 23701d, 23701e, 23701f, 23701g, and 23701l of the Revenue and Taxation Code of the State and mobile home park associations and senior citizen associations, provided that the proceeds of such games are used only for charitable purposes, are eligible to apply to the City for a permit to conduct bingo games in the City under the provisions of Section 326.5 of the Penal Code and the provisions of this Chapter; provided, however, that such organizations and associations shall have been organized, established and operating in the City for a minimum of one (1) year continuously preceding the filing of an application for a bingo permit.

(Ord. C-7423 § 16, 1996: Ord. C-6260 § 1 (part), 1986)

Eligible organizations desiring to obtain a permit to conduct bingo games in the City shall file an application in writing therefor in the office of the Director of Financial Management. The application shall be accompanied by a fee determined by the City Council by resolution, one-half (½) of which is refundable if the application is denied. The issuing authority shall be the Chief of Police. The permit issued shall be for a

term of one (1) year from the date of issuance, subject to renewal and an annual fee determined by the City Council by resolution.

(ORD-10-0014, § 6, 2010; Ord. C-7423 § 16, 1996: Ord. C-6260 § 1 (part), 1986)

No permit shall be issued to any organization unless the applicant is an eligible organization under Section 5.20.030 and its application conforms to the requirements, terms and conditions of this Chapter.

(Ord. C-7423 § 16, 1996: Ord. C-6260 § 1 (part), 1986)

The application for a permit shall contain the following:

A.

The name of the applicant organization and a statement that applicant is an eligible organization under Section 5.20.030;

B.

The name and address of all officers and directors of the organization;

C.

The particular property within the City, including the street number: (1) owned or leased by the applicant; or (2) owned or completely controlled by a public school district and whose use has been leased or donated to the applicant by formal specific action of the board of said public school district, on which property bingo games will be conducted, together with the occupancy capacity of such place. In the case of property whose use has been leased or donated by the formal specific action of a public school district board, the applicant shall submit with its application a certified copy of the resolution or minute order of said school board which specifically authorizes and approves the lease or donation of the use of the particular property to the applicant, and shall set forth any and all conditions and requirements imposed by the school board, not inconsistent with the provisions of this Chapter, for the use of said property by the applicant relating to the conduct of bingo games;

D.

A description of the security procedures, methods and measures that the applicant will follow and utilize in connection with the conduct of bingo games;

E.

The proposed day of the week and hours of the day during which bingo games are proposed to be conducted;

F.

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 permit to conduct bingo games may be revoked by the Chief of Police upon violation of any of such provisions;

G.

The application shall be signed under penalty of perjury by at least two (2) officers of the applicant, including the presiding officer;

H.

An applicant exempted from the payment of the bank and corporation tax by Sections 23701a, 23701b, 23701d, 23701e, 23701f, 23701g and 23701l of the Revenue and Taxation Code shall submit, with its application, a certificate or determination of exemption under said sections of the Revenue and Taxation Code and a letter of good standing from the Exemption Division of the Franchise Tax Board in Sacramento, showing exemption under one (1) or more of said sections;

I.

The application shall contain a statement of any convictions for any offenses by the applicant or any of the applicant's proposed officers, directors or employees;

J.

The applicant shall furnish the location of all bingo games conducted by the applicant, including those outside the City, as well as a list of suppliers of bingo related materials used by the applicant.

(Ord. C-7423 § 16, 1996: Ord. C-6757 § 1, 1990: Ord. C-6260 § 1 (part), 1986)

A.

Upon receipt of the completed application and the application fee, the Director of Financial Management shall refer the same to interested departments of the City, including, but not limited to, the Chief of Police, Building and Planning Department, and the Fire Department 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 property on which bingo games may lawfully be conducted, as to fire, occupancy, and other applicable restrictions. Each department to which a completed application is referred shall complete its investigation and file a report with the Director of Financial Management within one (1) year of the date of the application. Any department to which an application is referred that does not file its report with the Director of Financial Management as provided herein, shall be deemed to have recommended approval of the application. Upon either the receipt of completed reports from all of the departments to which an application has been referred or the expiration of one (1) year from the date of the application, whichever event occurs first, the Director of Financial Management shall forward the application together with all completed reports to the Chief of Police.

B.

No permit shall be issued if any officer or director of the applicant has been convicted of a crime involving moral turpitude.

(Ord. C-7423 § 16, 1996: Ord. C-6260 § 1 (part), 1986)

Upon being satisfied that the applicant is fully qualified under the law to conduct bingo games in the City, the Chief of Police shall issue a permit to the applicant which shall contain the following information:

A.

The name and nature of the organization to whom the permit is issued;

B.

The address and description of the property where bingo games are authorized to be conducted;

C.

The occupancy capacity of the room in which bingo games may be conducted;

D.

The day of the week and the hours of the day during which bingo games may be conducted pursuant to the permit;

E.

The security procedures, methods and measures that will be followed and utilized by the permittee in connection with the conduct of its bingo games;

F.

The date of the expiration of the permit;

G.

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

(Ord. C-7423 § 16, 1996: Ord. C-6757 § 2, 1990: Ord. C-6260 § 1 (part), 1986)

A.

Any person permitted under this Chapter shall have thirty (30) days from the date of expiration to renew their permit.

B.

On a biennial basis, permit renewal will be contingent upon each executive officer and the executive director of the organization submitting to a background examination subsequent to fingerprint examination. If, upon the thirty-first day after permit expiration the renewal process has not been completed, the permit shall be deemed suspended until such time as each specified member of the permittee organization has complied with the renewal requirements.

(Ord. C-7423 § 16, 1996)

A.

Whenever it appears to the Chief of Police that the permittee is conducting a bingo game in violation of any of the provisions of this Chapter, the Chief of Police shall have the authority to summarily suspend the permit and order the permittee to immediately cease and desist any further operation of any bingo game.

B.

Any person who continues to conduct a bingo game after any summary suspension thereof under Subsection 5.20.090.A, shall be guilty of a misdemeanor and upon conviction thereof shall be punishable by a fine not exceeding five hundred dollars ($500.00) or by imprisonment for a period not exceeding six (6) months, or by both such fine and imprisonment.

C.

The order issued under Subsection 5.20.090.A, shall also notify the permittee that it shall have five (5) days from the date of such order to request a hearing to determine whether such permit shall be revoked. Failure to request, in writing, the hearing before the Chief of Police within the five (5) day period shall result in a revocation of the permit.

D.

If the permittee whose permit has been suspended under Subsection 5.20.090.A, requests a hearing to determine whether the permit shall be revoked, the Chief of Police shall provide such hearing within ten (10) days after receipt of such request at which hearing the suspended permittee may appear before the Chief of Police or his/her designee for the purpose of presenting evidence why the permit should not be revoked. No permit shall be revoked under this Section unless notice of the time and place of the hearing has first been given at least five (5) days before the hearing thereof by depositing in the United States mail, a notice directed to the suspended permittee at the address given in the application. The notice shall set forth a summary of the grounds for suspension and revocation.

E.

Any organization whose permit is revoked under this Section shall not conduct any bingo game in the City until such time as the City Council, on appeal, determines to overrule the decision of the Chief of Police.

(Ord. C-7423 § 16, 1996: Ord. C-6260 § 1 (part), 1986)

A.

Whenever it appears to the Chief of Police that the permittee is conducting bingo games in violation of any of the provisions of this Chapter, or that the permit was obtained by fraudulent representation and no summary suspension is ordered under Section 5.20.090, the permit may be revoked; provided, however, the permittee may appear before the Chief of Police at the time fixed by the Chief of Police for the purpose of presenting evidence why the permit should not be revoked. No permit shall be revoked under this Section unless written notice has first been given at least five (5) days before the hearing thereof by depositing in the United States mail, a notice directed to the permittee at the address given in the application. The notice shall set forth a summary of the grounds for revocation.

B.

Any organization whose permit is revoked under this Section shall not conduct any bingo game in the City until such time as the City Council, on appeal, determines to overrule the decision of the Chief of Police.

(Ord. C-7423 § 16, 1996: Ord. C-6260 § 1 (part), 1986)

A.

Any holder of a permit whose permit is revoked under this Chapter shall have the right, within ten (10) days after the date of mailing of the written notice of revocation, to file a written appeal to the City Council. Such appeal shall set forth the specific ground or grounds on which it is based. The City Council shall hold a hearing on the appeal within thirty (30) days after its receipt by the City, or at a time thereafter agreed upon, and shall cause the appellant to be given at least ten (10) days' written notice of such hearing. At the hearing, the appellant or its authorized representative shall have the right to present evidence and a written or oral argument, or both, in support of his/her appeal. The determination of the City Council on the appeal shall be final.

B.

Any organization whose permit is finally revoked may not again apply for a permit to conduct games in the City for a period of one (1) year from the date of such revocation; provided, however, if the ground for revocation is cancellation of the exemption granted under Section 23701 of the Revenue and Taxation Code or Section 501 of the Internal Revenue Code, the organization may again apply for a permit upon proof of reinstatement of the exemption.

(Ord. C-7423 § 16, 1996: Ord. C-6260 § 1 (part), 1986)

The total value of prizes awarded during the conduct of any bingo game shall not exceed five hundred dollars ($500.00) in cash or kind, or both, for each separate game which is held, nor shall the awarding of tickets, bonuses, premiums or any other thing of value, however characterized, be permitted that will or may increase the value of the prize over five hundred dollars ($500.00).

(ORD-10-0003, § 1, 2010; Ord. C-7423 § 16, 1996: Ord. C-6260 § 1 (part), 1986)

With respect to organizations exempt from payment of the bank and corporation tax by Section 23701d of the Revenue and Taxation Code, 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. 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 and shall not be commingled with any other fund or account. Such proceeds shall be used only for charitable purposes, except as follows:

A.

Such proceeds may be used for prizes;

B.

A portion of such proceeds, not to exceed twenty percent (20%) of the proceeds before the deduction for prizes or two thousand dollars ($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;

C.

All permittees shall report on forms prescribed by the Director of Financial Management an accounting of all receipts and expenditures for each calendar month. Accounting of all receipts and expenditures for "break-open" or "pull-tab" bingo games shall be maintained separate and apart from the accounting for all other bingo games. At a minimum such accounting shall include the serial number of each "break-open" or "pull-tab" type game purchased by the permittee organization, the name of the game purchased, the number and denomination of cash prizes available for a particular game, the date that the particular game is first put in play and the date the game is discontinued, the total tickets available for purchase in the game, the total number of tickets sold in any particular game, the cost per play of the game, the total number of tickets remaining when a particular game is discontinued, the total amount of cash received as a result of a particular game, the amount of cash prizes paid out for a particular game and the net profit to the organization as a result of the tickets sold for a particular game. Any permittee operating or conducting bingo games in the City shall pay a fee of one percent (1%) of the monthly gross receipts in excess of five thousand dollars ($5,000.00) derived from bingo games which sum shall be reported and paid to the Director of Financial Management. Permittees with gross receipts of five thousand dollars ($5,000.00) or more for any calendar month shall file the report for that month on or before the fifteenth day of the following month, and shall pay any sums due pursuant to Section 5.20.040. Permittees with gross receipts of less than five thousand dollars ($5,000.00) for any calendar month shall file said report on or before the fifteenth day of the month following the close of each calendar quarter. If payment is not made within the time specified in this Section, the permittee shall pay a penalty of twenty-five percent (25%) of the amount due in addition to the amount due. If the amount due plus penalty remains unpaid on the first day of the following month, such noncompliance shall constitute grounds for revocation of the permit. All required reports shall clearly distinguish between receipts and expenditures generated by "break-open" or "pull-tab" type games and receipts and expenditures generated by all other bingo games. Said reports shall bear the

signatures of two (2) officers of the permittee organization signifying, under penalty of perjury, to the accuracy and veracity of the reported information;

D.

On or before January 31st of each year the permittee shall report on forms prescribed by the Director of Financial Management an accounting of all receipts and expenditures for the prior calendar year; said report shall be certified by two (2) officers of the permittee organization signifying, under penalty of perjury, to the accuracy and veracity of the report information;

E.

Bingo financial records of the permittee shall at all times be available to the Chief of Police and the City Auditor or their authorized designees;

F.

In addition, each permittee with gross receipts that average five thousand dollars ($5,000.00) or more per month for a calendar year shall within ninety (90) days after the close of the calendar year file with the Chief of Police and Director of Financial Management an independent audit report covering permittees operations for the calendar year prepared by either a certified public accountant or a public accountant. Each permittee with gross receipts that average less than five thousand dollars ($5,000.00) per month for a calendar year shall within ninety (90) days after the close of the calendar year file a letter prepared by a certified public accountant or a public accountant stating that a review of the permittee's internal operations and controls for the calendar year has been made and that no unsatisfactory conditions were found. Each permittee shall cause the reports and letters required in this Section to be prepared at his/her sole cost and expense.

(Ord. C-7423 § 16, 1996: Ord. C-7217 § 2, 1994; Ord. C-6260 § 1 (part), 1986)

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

(Ord. C-7423 § 16, 1996: Ord. C-6260 § 1 (part), 1986)

A.

A bingo game shall be operated and staffed only by members of the permittee organization. Such members shall not receive a profit, wage, salary or other economic gain from any bingo game. Only the permittee shall operate such game, or participate in the promotion, supervision, or any other phase of such game.

B.

A member of the authorized organization whose name appears on the application for a permit shall be designated as the bingo manager. The bingo manager shall be responsible for the conduct and operation of

the bingo games and for compliance with all applicable laws, rules and regulations promulgated thereunder.

C.

All staff members of a bingo game shall wear on their outside clothing an identification insignia or badge, no less than two and one-half (2½) by three and one-half inches (3½") in dimension, or in the alternative, eight and three-quarters (8¾) square inches in overall dimension indicating the name of the organization and the name and title of the staff member.

D.

All bingo equipment shall be maintained in proper working order to assure that all players have an equal opportunity to win each game. Prior to the commencement of each game, the prize shall be clearly announced. A facsimile of each game to be played shall be displayed and available to all players.

(Ord. C-7423 § 16, 1996: Ord. C-6260 § 1 (part), 1986)

A.

In "break-open" or "pull-tab" type bingo the winning cards shall not be known prior to the game by any person participating in the playing or operation of the bingo game. "Break-open" or "pull-tab" cards must be completely made of paper or paper products which conceal numbers or symbols that must be exposed by the player in order to determine wins or losses. Each card shall be designed, constructed, glued and assembled in such a manner as to prevent determination of a winning or losing ticket without removing the tabs or otherwise uncovering the numbers or symbols as intended.

B.

During the conduct of any authorized bingo game no member of the organization's staff or any organization volunteer or any bingo supplier or employee or agent of any bingo supplier shall purchase or otherwise be supplied with any "break-open" or "pull-tab" cards for the purpose of playing bingo.

C.

All winning "break-open" or "pull-tab" type tickets equal to or in excess of fifty dollars ($50.00) shall be signed on the reverse side by the winner and shall bear the winner's Social Security Number, home address and telephone number. Such winning tickets shall be maintained by the permittee organization for a period of one (1) year and shall at all times be available to the Chief of Police and the City Auditor or their authorized designees.

D.

"Break-open" or "pull-tab" type cards shall only be sold or distributed during the permittee organization's normal hours of bingo operation and only at the site or property designated in the organization's permit.

E.

"Break-open" or "pull-tab" type games shall be received by the permittee organization from a bingo supplier permitted to do business in the City in boxes or containers that are factory sealed by the manufacturer. Each "break-open" or "pull-tab" type card must contain, at a minimum, the following information: 1) the name of the manufacturer or its distinctive logo; 2) name of the game to be played; 3) manufacturer's serial number; and 4) price per individual card. No box or container shall be opened by the permittee organization unless during the regular hours of bingo operation and in the presence of at least two (2) bingo patrons not in any way affiliated with the permittee organization.

F.

The Chief of Police shall at all times retain the right to prohibit a particular "break-open" or "pull-tab" type game if the Chief of Police determines that such game is conducive to fraud or other malfeasance.

G.

All preprinted cards shall bear the legend "for sale or use only in a bingo game authorized under California law and pursuant to local ordinance".

(Ord. C-7423 § 16, 1996)

All bingo games shall be open to the public, not just to the members of the permittee organization.

(Ord. C-7423 § 16, 1996: Ord. C-6260 § 1 (part), 1986)

Notwithstanding that bingo games are open to the public, attendance at any bingo game shall not exceed three hundred fifty (350) participants and in no case shall exceed the occupant load of the room in which such game is conducted as determined by the Fire Department and Building Department of the City in accordance with applicable laws and regulations. Permittee shall not reserve seats or space for any person.

(Ord. C-7423 § 16, 1996: Ord. C-6260 § 1 (part), 1986)

A permittee shall conduct a bingo game only: (1) on property owned or leased by it and which property is used by such organization for an office or for performance of the purposes for which the organization is organized; or (2) on property which is owned or completely controlled by a public school district, and which has been leased or donated for use by the permittee on either an exclusive or a nonexclusive basis for the performance of the purpose for which the organization is organized, by specific formal action of the school board of said public school district which expressly authorizes and approves the use of the particular property for the conduct of bingo games. The permit issued under this Chapter shall authorize the holder thereof to conduct bingo games only on such property, the address and description of which is stated in the application. In the event the described property ceases to be used as an office or as a place for performance of the purposes for which the permittee is organized, the permit shall have no further force or effect. A new permit may be obtained by an eligible organization, upon application under this Chapter, when the organization again owns or leases property or has school district property donated for its use and

which property is used by it for an office or for performance of the purposes for which the organization is organized.

(Ord. C-7423 § 16, 1996: Ord. C-7231 § 2, 1994: Ord. C-6757 § 3, 1990: Ord. C-6260 § 1 (part), 1986)

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

(Ord. C-7423 § 16, 1996: Ord. C-6260 § 1 (part), 1986)

No person who is obviously intoxicated shall be allowed to participate in a bingo game. No person as a manager, employee or otherwise representing any organization having a permit and conducting bingo shall sell, distribute or allow alcoholic beverages in any room or rooms where bingo is being conducted during such times as bingo is in progress.

(Ord. C-7423 § 16, 1996: Ord. C-6260 § 1 (part), 1986)

Each permit granted pursuant to this Chapter shall be valid for only one (1) day during each week, and bingo games shall not be conducted for more than six (6) hours which shall run consecutively within the twenty-four (24) hour period of said day. No bingo game shall be conducted before ten o'clock (10:00) a.m., nor after twelve (12:00) midnight any day.

(Ord. C-7423 § 16, 1996: Ord. C-6260 § 1 (part), 1986)

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

(Ord. C-7423 § 16, 1996: Ord. C-6260 § 1 (part), 1986)

It is a misdemeanor under Section 326.5(b) of the Penal Code for any person to receive a profit, wage, salary or other economic gain from any bingo game authorized under this Chapter, a violation of which is punishable by a fine not to exceed ten thousand dollars ($10,000.00), which fine shall be deposited in the general purpose fund of the City.

(Ord. C-7423 § 16, 1996: Ord. C-6260 § 1 (part), 1986)

The City may bring an action in a court of competent jurisdiction to enjoin a violation of Section 326.5 of the Penal Code and of this Chapter.

(Ord. C-7423 § 16, 1996: Ord. C-6260 § 1 (part), 1986)