Milpitas Municipal Code Ch. 7 Bingo Games

Pursuant to the authority provided in section 19(c) of Article IV of the California State Constitution and section 326.5 of the California Penal Code, the City of Milpitas establishes the following requirements for the conduct of bingo games by organizations permitted to conduct bingo games pursuant to III-7-3.00 in the City of Milpitas.

(Ord. No. 198.5, § 2, 6/5/18; Ord. 198.3 (part), 1/21/86)

As used in this Chapter, the following words shall have the following meanings.

2.01 "Bingo" means a game of chance in which prizes are awarded on the basis of designated numbers or symbols that are marked or covered by the player on a tangible card in the player's possession and that conform to the numbers or symbols, selected at random and announced by a live caller.

2.02 "Licensee" means any individual, partnership, corporation, association, trust or other legal entity authorized under this Chapter to operate a bingo game.

2.03 "Organization" means any individual, partnership, corporation, association, trust or other legal entity.

2.04 "Person" means any individual, partner, director, officer, manager, trustee, agent or employee of any of the foregoing or of any organization.

(Ord. No. 198.5, § 2, 6/5/18; Ord. 198.3 (part), 1/21/86)

No organization shall be permitted to conduct bingo games in the City of Milpitas unless possessing a valid certificate or letter from the Franchise Tax Board evidencing exemption from the payment of the bank and corporation tax by sections 23701-a (labor, agricultural, or horticulture organizations), 23701-b (fraternal orders), 23701-d (religious, charitable, scientific, testing for public safety, literary, educational, amateur sports or humanitarian corporations), 23701-e (business leagues, chambers of commerce, real estate boards, and boards of trade), 23701-f (civic leagues, social welfare organizations, and local employees' organizations), 23701-g (social organizations), 23701-k (religious or apostolic corporations having common or community treasury), 23701-w (veteran's organizations), and 23701l (domestic fraternal societies) of the Revenue and Taxation Code or is a mobile home park association, or senior citizens organization, or and charitable organizations affiliated with a school district; and provided that the proceeds of such games are used only for charitable purposes and provided that the organization possesses a valid license issued pursuant to the provisions of this Chapter.

(Ord. No. 198.5, § 2, 6/5/18; Ord. 198.3 (part), 1/21/86)

No minors, or persons under the age of 18, shall be allowed to participate in any bingo game.

(Ord. No. 198.5, § 2, 6/5/18; Ord. 198.3 (part), 1/21/86)

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

(Ord. No. 198.5, § 2, 6/5/18; Ord. 198.3 (part), 1/21/86)

6.01 A bingo game shall be operated and staffed only by members of the licensee. Such members shall not receive a profit, wage, or salary from any bingo game. Only a licensee shall operate such a game, or participate in the promotion, supervision, or any other phase of a bingo game. This subsection 6.01 does not preclude the employment of security personnel who are not members of the licensee at a bingo game by the organization conducting the game.

6.02 Each person who purchases a bingo card shall receive the appropriate receipt, and such purchase and receipt shall be subject to audit and verification.

6.03 Alcohol shall not be served or stored on the premises. There shall be no consumption or possession of alcohol, cannabis, or illicit substances on the premises, including the parking lots. Any person under the influence of alcohol, cannabis, or illicit substance shall not be permitted on the premises, including the parking lots.

(Ord. No. 198.5, § 2, 6/5/18; Ord. 198.3 (part), 1/21/86)

No person or member of a licensee shall receive or pay a profit, wage, salary, or other income from any bingo game authorized by this Chapter except as a bona fide prize received as a lawful participant in such bingo game.

(Ord. No. 198.5, § 2, 6/5/18; Ord. 198.3 (part), 1/21/86)

Any licensee shall conduct bingo games only on property owned or leased by it, or on property whose use is donated to the licensee, and which property is used by that licensee for an office or for the performance of the purposes for which the licensee is organized. Nothing in this Section 8 shall be construed to require that the property owned or leased by, or whose use it donated to, the licensee be used or leased exclusively by, or donated exclusively to, such licensee.

(Ord. No. 198.5, § 2, 6/5/18; Ord. 198.3 (part), 1/21/86)

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

(Ord. No. 198.5, § 2, 6/5/18; Ord. 198.3 (part), 1/21/86)

11.01 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.

11.02 All proceeds and receipts derived from a bingo game shall be used only for charitable purposes, unless otherwise authorized in subsection 11.03.

11.03 Except for organizations exempt from payment of the bank and corporation tax by Section 23701d of the Revenue and Taxation Code (religious, charitable, scientific, testing for public safety, literary, educational, amateur sports or humanitarian corporations), proceeds and receipts derived from a bingo game, may be used as follows:

a) The proceeds may be used for prizes;

b) A portion of the 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 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 required by this Chapter.

(Ord. No. 198.5, § 2, 6/5/18; Ord. 198.3 (part), 1/21/86)

Each licensee shall maintain detailed records of all proceeds, receipts, profits, expenditures, prizes, and other expenses associated with the operation of bingo games. Said records shall be retained for such period of time as required by state and federal law and for a period of three years for purposes of this Chapter and shall be presented to the City of Milpitas upon request in a timely manner.

(Ord. No. 198.5, § 2, 6/5/18; Ord. 198.3 (part), 1/21/86)

13.01 The total value of prizes awarded during the conduct of any bingo game by licensees shall not exceed $500.00 in the form of a check, cash, electronic deposit, or in kind, for each separate game that is held.

13.02 There shall be no free games, free door prizes, and/or free gifts. Provisions of free water, coffee, tea, hot cocoa, soda, or other nonalcoholic beverages are permissible.

(Ord. No. 198.5, § 2, 6/5/18; Ord. No. 198.4, § 2, 9/17/13; Ord. 198.3 (part), 1/21/86)

A person shall not be allowed to participate in a bingo game, unless the person is physically present at the time and place where the bingo game is being conducted.

(Ord. No. 198.5, § 2, 6/5/18; Ord. 198.3 (part), 1/21/86)

All bingo games shall be conducted only during the hours of noon to 10:30 p.m.

(Ord. No. 198.5, § 2, 6/5/18; Ord. 198.3 (part), 1/21/86)

16.01 The Chief of Police or his/her designee shall have the authority to inspect the premises in order to insure that the operation of bingo games at the premises does not constitute a violation of any state law, federal law, or provision of this Chapter.

16.02 The Chief of Police or his/her designee may inspect the records, funds, and/or accounts containing proceeds, receipts, profits, expenditures, prizes, and other expenses derived from bingo games of any licensee conducting bingo games whenever deemed reasonable and appropriate to ensure compliance with the provisions of this Chapter as well as state law and federal law. The inspection may occur on the premises or at a location determined by the Chief of Police or his/her designee and the inspection may include a request for supporting documents and/or for bona fide copies of supporting documents.

(Ord. No. 198.5, § 2, 6/5/18; Ord. 198.3 (part), 1/21/86)

No person or organization shall conduct a bingo game without first obtaining a license from the City of Milpitas to do so.

(Ord. No. 198.5, § 2, 6/5/18; Ord. 198.3 (part), 1/21/86)

Written application for a license required by this Chapter shall be made by affidavit under penalty of perjury and filed with the City Clerk. Such application shall include, but not be limited to the below:

18.01 Name of applicant; full names, signatures, dates of birth, home addresses, work addresses , telephone numbers, and bona fide copies of valid government issued identification documents of all partners, directors, officers, managers, and trustees of the organization and the members of the organization operating or assisting in the operation of the bingo games.

18.02 Days and hours of operation of bingo games.

18.03 Attached copies of certificates or letters evidencing exempt status from the franchise tax board and a financial statement of the organization, signed by a licensed certified public accountant, for a period of at least one year immediately preceding the application.

18.04 Address of premises where bingo games will be conducted and the security plan for the premise and the operation of the bingo games, which includes the money handling procedures and regulation of electronic bingo aids.

18.05 Statement of ownership or lease of premises.

18.06 Purposes(s) for which such premises are used by the organization.

18.07 Statement of ownership of bingo equipment used in the operation of the bingo games.

18.08 Statement of consent for Chief of Police, or his or her designee, to enter premises and/or to inspect any records, funds and/or accounts containing proceeds, receipts, profits, expenditures, prizes, and other expenses derived from bingo games whenever deemed reasonable and appropriate to ensure compliance with the provisions of this Chapter as well as state law and federal law.

18.09 Name of person responsible for the operation of the bingo games.

18.10 Such further information as may be required by the City Council and/or the City departments reviewing the application.

(Ord. No. 198.5, § 2, 6/5/18; Ord. 198.3 (part), 1/21/86)

19.01 The application shall be submitted to the City Clerk for further investigation and recommendation by the appropriate City departments.

19.02 The Chief of Police or his/her designee shall have the authority to obtain criminal history information for each person operating or assisting in the operation of a bingo game in order to determine if such operators or persons assisting in the operation of a bingo game have been convicted within the past five years of crimes involving lotteries, gambling, larceny, perjury, bribery, extortion, fraud, or similar crimes involving moral turpitude. The Chief of Police or his/her designee shall have the authority to investigate and make recommendations regarding appropriate security measures, including but not limited to, on-site security personnel.

(Ord. No. 198.5, § 2, 6/5/18; Ord. 198.3 (part), 1/21/86)

The application shall be submitted to the following City departments, at a minimum, for investigation and recommendation, with other City departments reviewing if needed as solely determined by the City:

20.01 Fire Marshal as to any fire hazard on the premises in question and compliance to current laws and regulations.

20.02 The Building Official as to compliance with City building regulations.

20.03 Planning Director as to compliance with zoning requirements and the zoning ordinance.

(Ord. No. 315, § 2, 1/7/25; Ord. No. 198.5, § 2, 6/5/18; Ord. 198.3 (part), 1/21/86)

21.01 The City Clerk shall set the time and place for public hearing on each application for a bingo license and shall mail notice thereof to the applicant and to any other person who has filed a written request for such notice.

21.02 Each applicant shall have the opportunity to review all records, papers, files and other evidence relating to the application, except criminal history information, at least five days prior to the time set for public hearing on such application.

(Ord. No. 198.5, § 2, 6/5/18; Ord. 198.3 (part), 1/21/86)

22.01 At the time and place set for public hearing on the application for a bingo license, the City Council shall consider the records, papers, files and any other evidence it deems relevant and shall render its decision either granting or denying the license.

22.02 If the license is approved, the City Council may include such restrictions and conditions in the license as the City Council deems reasonable and necessary to ensure compliance with the purposes and intent of this Chapter, state law, and federal law.

(Ord. No. 198.5, § 2, 6/5/18; Ord. 198.3 (part), 1/21/86)

The City Council may refuse to issue a license after consideration of the application and any other papers, records, and files it deems relevant, if it is determined that the operation of a bingo game would be injurious to the health, safety, and/or morals of the people of the City or that the application or proposed mode of operation of the bingo game is not in compliance with the provisions of this Chapter, state law, or federal law.

(Ord. No. 198.5, § 2, 6/5/18; Ord. 198.3 (part), 1/21/86)

24.01 Any changes as to the staff operating or assisting in the operation of a bingo game or any other changes in the information furnished under section III-7-18.00 made subsequent to the issuance of a bingo license shall be reported to the City Clerk for any further investigation which may be deemed necessary and appropriate by the appropriate City departments.

24.02 If, after such investigation, the Chief of Police or his/her designee finds that the changes require suspension or revocation of the bingo license, such determination shall be transmitted to the City Manager for appropriate action.

(Ord. No. 198.5, § 2, 6/5/18; Ord. 198.3 (part), 1/21/86)

25.01 The fee for a bingo license shall be $50.00 per annum, payable at the time of application for an original license and at the time of each renewal thereof. It shall not be subject to pro-ration or (in the event the application is denied) to refund except as prescribed in section 326.5 of the California Penal Code.

25.02 A Bingo license is granted for a term of one year, commencing February 1 and terminating January 31 of the following year. Applications for renewals shall submitted at least 60 calendar days in advance of the expiration date.

25.03 The City Manager shall be empowered to renew a bingo license without notice or hearing before the City Council upon the following conditions:

a) That the licensee has made written application for renewal at least 60 days before the expiration date, and

b) That the licensee has paid the annual $50.00 licensee fee for the renewal period, and

c) That the licensee has filed the annual report required by section III-7-27.00 for the year preceding the renewal application, and

d) That the City Manager finds that the licensee is currently in compliance with all requirements of this Chapter and state and federal law, and

e) That no written protest to the operation of the bingo game by the licensee or to the renewal of said Bingo license has been filed with the City Manager for the past 12 months, and

f) That the City Manager finds the renewal of said license does not create a health, safety, or public welfare hazard.

25.04 If the City Manager declines to grant an application for renewal, he shall advise the applicant of his reasons therefor. The applicant may appeal said action to the City Council in accordance with the procedures and the time limitations set forth in section I-20-5.00 et seq. and section I-20-6.00 et seq. of the Milpitas Municipal Code.

(Ord. No. 198.5, § 2, 6/5/18; Ord. 198.3 (part), 1/21/86)

26.01 Except as hereafter provided, no licensee shall conduct bingo games on other than the day or days specifically designated in its bingo license.

26.02 Special Event: In addition to the day(s) designated in its license, any licensee may request City Council permission to hold a bingo game or games as a special event upon the following conditions:

a) The request shall be made in writing, filed with the City Clerk at least 60 days before the City Council meeting at which the request will be considered.

b) The request shall be accompanied by a fee of $50.00 to defray the cost of publication and mailing of notice of hearing and by envelopes addressed to each bingo licensee in the City as of the date of the request.

c) The City Clerk shall give notice of hearing by a single publication in a newspaper circulated within the City and by mailing to each bingo licensee at least ten days before the hearing.

d) The City Council shall hold a public hearing upon said request and shall be empowered to grant or deny said request in its discretion. In granting or denying said request, the City Council shall consider whether the proposed date of the special event conflicts with other events in the City sponsored by any governmental body, any public school, any community or service club, or any previously established special bingo event. It may impose reasonable conditions upon the grant of said request based on health, safety, or public welfare conditions. It may authorize a date other than the one requested.

e) A licensee shall not be granted a special event permission for more than one day in every calendar quarter.

(Ord. No. 198.5, § 2, 6/5/18; Ord. 198.3 (part), 1/21/86)

By February 1 of each year, licensee shall file a report under penalty of perjury with the City Clerk containing the following information:

27.01 Any changes in or addition to the information required under section III-7-18.00.

27.02 The total amount of money received from the operation of the bingo games in the previous calendar year.

27.03 The total amount paid out in prizes.

27.04 Detailed costs for the operation of the bingo games.

27.05 A late charge of $25.00 shall be imposed on any licensee who fails to file a report by February 1. Failure to file said report shall also be grounds for suspension, revocation or nonrenewal of a license.

(Ord. No. 198.5, § 2, 6/5/18; Ord. 198.3 (part), 1/21/86)

Licenses granted under this Chapter shall not be transferable either as to the license or the location. Any attempt to transfer shall render the license invalid.

(Ord. No. 198.5, § 2, 6/5/18; Ord. 198.3 (part), 1/21/86)

Any license issued under this Chapter may be suspended or revoked by the City Manager for violation of any of the provisions of this Chapter, or any provisions of this Code or of state or federal law.

(Ord. No. 198.5, § 2, 6/5/18; Ord. 198.3 (part), 1/21/86)

The holder of a license shall be given prompt notice of revocation or suspension of said license. Said notice shall fix a time and place, not less than five nor more than 30 days after service thereof, at which time the holder of said license may appear before the City Council and be granted a hearing upon the merits of said suspension or revocation.

(Ord. No. 198.5, § 2, 6/5/18; Ord. 198.3 (part), 1/21/86)

In accordance with the provisions of section 326.5 of the California Penal Code, the City Council declares that any violation of any provision of this Chapter shall be a misdemeanor punishable in accordance with the provisions of Section I-1-4.09-2 of the Milpitas Municipal Code provided, however, that any person who receives or pays a profit, wage, or salary from any bingo game authorized by section 19 of Article IV of the State Constitution in violation of the provisions of III-7-7.00 of this Chapter shall be punishable by a fine not to exceed $10,000.00, which fine shall be deposited in the General Fund of the City.

(Ord. No. 198.5, § 2, 6/5/18; Ord. 198.3 (part), 1/21/86)

32.01 The provisions of this Chapter are in addition to such other requirements as are imposed by rule, regulation, resolution, or ordinance of the City of Milpitas or by statute.

32.02 Provided, however, to avoid unnecessary hardship to the applicant as well as the duplication of requirement, the City Council shall be empowered to find compliance with the provisions of this Chapter constitutes substantial compliance with the provisions of any other chapter of Title III (Business & Professions) of the Milpitas Municipal Code.

32.03 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; however, the fee shall not exceed the actual costs incurred in providing the service. Failure to pay said fee in a timely manner shall be grounds for suspension, revocation, or nonrenewal of a license.

(Ord. No. 198.5, § 2, 6/5/18; Ord. 198.3 (part), 1/21/86)