Chapter 5.36 — BINGO GAMES

Bingo games for charitable purposes are hereby authorized, pursuant to Section 19, Article IV of the California Constitution and Section326.5 of the Penal Code and in accordance with the provisions of this chapter.

(Prior code § 14C-1)

Organizations exempted from the payment of the bank and corporation tax by Sections 23701a, 23701b, 23701d, 23701e, 23701f, 23701g and23701l of the Revenue and Taxation Code and mobile home park associations and senior citizen organizations; provided, that the proceeds of such games are used only for charitable purposes, are eligible to apply to the City for a license to conduct bingo games in the City under the provisions of Section 326.5 of the Penal Code and the provisions of this chapter.

(Prior code § 14C-2)

No organization shall engage in, carry on, maintain, conduct, or cause to be engaged in, carried on, maintained or conducted, a bingo game in the City, without first having secured a license in accordance with the requirements of this chapter, nor without complying with the regulations contained herein pertaining to the operation of bingo games. (Prior code § 14C-3)

For the purposes of this chapter, "bingo" is 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.

(Prior code § 14C-4)

The application procedure provided by this chapter shall be followed with regard to licenses sought pursuant to this chapter. (Prior code § 14C-5)

• A. Application—Generally.

  1. Filing—Fee—Contents. Every person 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 and penalty, if any. The application shall be filed at least 60 days prior to the conduct of any bingo game and shall specify:

     • a. The name, address and telephone number of the local applicant organization, and a statement that the applicant is an eligible organization under Section

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City of Paramount, CA § 5.36.060

PARAMOUNT CODE

§ 5.36.060

5.36.020.

• b. The names and signatures of at least two officers, including the presiding officer, of the corporation or community chest and the trustee of any trust.

• c. A list of the names of the members of the applicant organization who will, from time to time, operate and staff bingo games.

• d. A detailed schedule of the date, hours, location and occupancy capacity of such location 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. The location of and signatures pertinent to the special bank account required by Section 5.36.080(D).

• g. 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 summarily suspended by the Sheriff upon violation of any such provisions.

• h. The annual license fee fixed by the City Council by resolution shall accompany the application.

• i. The applicant shall also submit, with its application, a letter or other evidence from the State Franchise Tax Board showing that the applicant is exempted from the payment of the bank and corporation tax by Sections 23701a, 23701b, 23701d, 23701e, 23701f, 23701g and23701l of the Revenue and Taxation Code, unless said applicant is classified by the City Clerk as a mobile home park association of a senior citizen organization in accordance with the provisions set forth in Section 5.36.020.

• j. The application shall be verified as provided by the Code of Civil Procedure for the verification of pleadings.

• k. The address to which notice, when required, is to be sent or mailed, and the names of any 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 for the renewal of an existing license.

• Receipt—Copies. Upon receipt of a license fee, the City Clerk shall:

• a. Issue a date receipt, showing the location for which an application has been made.

• b. Transmit copies of the license fee referral memorandum to interested departments of the City, including, but not limited to, the City Manager, the Sheriff, the Director of Planning, the City Engineer, the City Health Officer and the Fire Marshal, to determine if the appropriate zoning ordinances and

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City of Paramount, CA § 5.36.060

BUSINESS LICENSES REGULATIONS

§ 5.36.070

regulations, building code ordinances, the Health Code Ordinance and the Fire Code Ordinance have been or will be complied with.

3. Issuing Authority. The issuing authority shall be the City Manager.

• B. Reports. Every officer and department to which an application is referred shall, in writing, advise the City Clerk of all material facts necessary to determine whether the license should be granted, granted subject to conditions or denied, and shall indicate his or her approval or disapproval of the application.

• C. Notification of Denial. If any officer or department to which an application is referred advises the City Manager that the license should be denied, the City Manager shall so notify the applicant, as provided in Section 5.36.070(E).

• D. Additional Information. Every officer and department to which an application for a license is referred may require such additional information and the filing of such additional forms as he or she deems necessary.

• E. Issuance—Contents. The City Manager shall issue a license containing the following information:

  1. The name and nature of the organization to which the license is issued.

  2. The address at which bingo games are authorized to be conducted.

  3. The occupancy capacity of the room in which bingo games are to be conducted.

  4. The date of the expiration of such license.

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

(Prior code §§ 14C-6—14C-10)

• A. Generally. No person 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 and present on the premises during all hours of operation and bonded, pursuant to this chapter, for each bingo game. The City Manager shall be the issuing authority.

• B. Application. To obtain a bingo manager's license, an applicant shall file with the City Clerk an application therefor, in writing, and shall pay the required fee. The application shall set forth, in addition to such information as may be required by the City Clerk:

  1. A statement that neither the bingo manager nor the members of the non-profit organization who operate any bingo game organized by such organization will receive any profit, wage or salary or any other direct or indirect consideration from any bingo game or funds derived from bingo activities.

  2. A statement that the bingo manager applicant has read and understands all the 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 bingo card and ticket sales people under his or her direction.

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City of Paramount, CA

PARAMOUNT CODE

§ 5.36.070

§ 5.36.070

• C. Fee. The fee for the bingo manager's license shall be in the amount set forth by resolution of the City Council.

• D. Security.

  1. Required. At the time of filing with the City Clerk an application for a license as a promoter, the applicant shall either:

     • a. File and thereafter maintain with the City Clerk a good and sufficient bond in the aggregate sum of 5,000.00, running to the City, for the use and benefit of interested persons and parties, executed by the applicant and two or more responsible sureties or a surety company authorized to do business in the State, which sureties or surety company shall be approved by the City Manager, or

     • b. Assign to the City savings and loan certificates in the sum of $5,000.00.

  2. Bond—Total Liability—Conditions. The total aggregate liability on such bond shall be $5,000.00, Such bond shall be conditioned upon the strict compliance, by the principal, with the provisions of this chapter and the payment of any direct pecuniary loss sustained through any act of grand or petty theft or other wrongful act on the part of the principal, his or her agent or employee.

3. Term—Cancellation. Such bond shall remain in force and effect for the entire period of the license. The sureties may cancel such bond and be relieved of further liability thereunder, by delivering 30 days' written notice to the City Manager. Such cancellation shall not affect any liability incurred or accrued thereunder prior to the termination of such 30-day period. If a bond is canceled, a new bond of similar form and amount shall be immediately filed and maintained, and shall apply as provided in paragraphs 1 and 2 above. Upon failure to so file and maintain such new bond, the City Manager shall forthwith suspend such license.

   4. Action. Any person who sustains any injury covered by such bond may, in addition to any other remedy which he or she may have, bring an action in his or her own name upon such bond for the recovery of any damage sustained by him or her. Upon such action being commenced, such bond shall not be void upon the first recovery thereon, but may be sued upon from time to time, until the whole of the penalty shall be exhausted. The City Manager may require the filing of a new bond and, immediately upon the recovery in any action on such bond, the promoter shall file a new bond or assign savings and loan certificates to the City, as provided by this chapter. Upon failure to file a new bond or assign savings and loan certificate within 10 days, the City Manager shall forthwith suspend such promoter's license.

   5. Alternate Agreement. If, in lieu of a bond, an applicant assigns to the City savings and loan certificates, he or she shall agree in writing that if the City Manager finds that any person sustains any pecuniary loss through any act of grand or petty theft or other wrongful act on the part of the principal, his or her agent or employees, the City may redeem a sufficient number of such certificates and, from the proceeds, reimburse such person for loss sustained.

• E. Investigation Results.

  1. Grounds for Issuance. The City Manager shall issue a bingo manager's license if he

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City of Paramount, CA § 5.36.070

BUSINESS LICENSES REGULATIONS

§ 5.36.080

or she finds:

• a. That the applicant is of good moral character and does not have a bad reputation regarding his or her honesty or integrity.

• b. That all the statements made in such application are and each of them is true and not deceptive or misleading and that the applicant has not violated any of the provisions of this chapter or engaged in any fraudulent transaction or enterprise, and that the applicant intends to conduct his or her business fairly and honestly.

If the City Manager determines that the applicant fails to meet the foregoing conditions, he or she shall deny the application and refuse to issue a license, and shall notify the applicant of his or her decision.

2. Grounds for Denial. A bingo manager shall be ineligible if any of the following are found and determined:

   • a. That such applicant has been convicted of a felony.

   • b. That such applicant is or has been a professional gambler or gambling promoter.

• c. That such applicant is not of good moral character.

  • d. That the organization concerned is a firm or corporation in which a person defined in paragraphs a, b or c above has a proprietary, equitable or credit interest, or in which such a person is active or employed.

  • e. That the organization concerned is an organization in which a person defined in paragraphs a, b or c above is an officer, director or employee, whether compensated or not.

  • f. That the organization concerned is an organization in which a person defined in paragraphs a, b or c above is to participate in the management or operation of a bingo game.

(Prior code §§ 14C-11—14C-19)

• A. Public Admission. All bingo games shall be open to the public, not just to the members of the licensee organization.

• B. Limited Attendance—Reservations. Notwithstanding that bingo games are open to the public, attendance at any bingo game shall be limited to the occupancy capacity of the room in which such game is conducted, as determined by the Fire Department in accordance with applicable laws and regulations. The licensee shall not reserve seats or space for any person.

• C. Value of Prizes. The total value of prizes awarded during the conduct of any bingo game shall not exceed $250.00 total, in cash or kind or both, for each separate game which is held. The total prizes being offered at various stages during an ongoing series of numbers or symbols being called towards a larger game shall not exceed $250.00.

• D. Profits—Financial Record. All profits derived from a bingo game shall be kept in a special

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City of Paramount, CA § 5.36.080

PARAMOUNT CODE

§ 5.36.080

fund or account and shall not be commingled with any other fund or account. The licensee shall keep a full and accurate record of the income and expenses received and disbursed in connection with its operation, conduct, promotion, supervision and any other phase of bingo games which are authorized by this chapter. The City, by and through its authorized officers, shall have the right to examine and audit such record at any reasonable time, without prior notice and the licensee shall fully cooperate with the City by making such record available.

• E. Outside Financial Interest. No individual, corporation, partnership or other legal entity, except the licensee organization, shall hold a financial interest in the conduct of such bingo games.

• F. Exclusive Operation—Compensation of Staff. A bingo game shall be operated and staffed only by members and the manager of the licensee organization. Such members and manager shall not receive a profit, wage or salary or any other direct or indirect consideration from any bingo game, nor shall they receive payments from the organization for any purpose. Only the licensee shall operate such game or participate in the promotion, supervision or any other phase of such game.

• G. Personal Profit. It is a misdemeanor under Section 326.5(b) of the Penal Code of the State for any person to receive a profit, wage or salary from any bingo game authorized under this chapter, a violation of which is punishable by a fine not to exceed $10,000.00, to be deposited in the general fund of the City.

• H. Location Restrictions. A licensee shall conduct a bingo game only on property owned or leased by it, which property is used by such organization for an office or for performance of the purposes for which the organization is organized. The license issued under this chapter shall authorize the holder thereof to conduct bingo games only on such property, the address of which has been stated in the application. In the event the described property ceases to be used as an office and as a place for the performance of the purposes for which the organization is organized, the license shall be of no further force or effect.

• I. Participation by Minors. No person under the age of 18 years shall be allowed to participate in any bingo game.

• J. Participation by Intoxicated Persons—Sale of Intoxicants. No person who is obviously intoxicated shall be allowed to participate in a bingo game. No alcoholic beverages may be sold on the premises during the hours of bingo activities.

• K. Prohibited Hours of Operation. No bingo game shall be conducted between the hours of midnight and 10:00 a.m.

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

• M. Use of Credit. No licensee shall issue chips, checks, tokens, markers or money to a patron on credit or loan or allow any patron to play on credit.

• N. Enjoinment of Violation. The City may bring an action, in a court of competent jurisdiction, to enjoin a violation of Section 326.5 of the Penal Code or of this chapter.

• O. Posting of License. An organization licensed pursuant to this chapter shall not conduct, or

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City of Paramount, CA § 5.36.080

BUSINESS LICENSES REGULATIONS

§ 5.36.090

permit to be conducted, a bingo game unless such license is posted in a conspicuous place, visible at the public entrance, during the conduct of any bingo game. The licensee shall produce and exhibit such license when applying for renewal thereof and whenever requested to do so by any peace officer or officer authorized to issue, inspect or collect licenses.

• P. Posting of Costs, Prizes and Rules. The licensee shall post the costs, prizes and rules of each game to be played. Such signs shall be posted, during the conduct of the bingo game, in conspicuous places on the outside and inside of the premises to be used for the conducting of a bingo game.

• Q. Record of Prizes. A record shall be kept, on forms approved by the Sheriff, by a licensee, showing the name and written signature, address and telephone number of each winner, and the consecutive serial number on the receipt for each prize.

• R. Entrance Fee. No admission, donation, dues or required fee shall be charged for entry onto the bingo premises.

• (Prior code §§ 14C-20—14C-37)

• A. Inspections—Interference, Etc. No person shall interfere with, prevent or refuse to permit a Sheriff or other peace officer to make an examination or inspection of any premises without notice, whether such premises are open to the public or not; or of any record kept by the applicant organization or by any agent or employee thereof; for the purpose of determining whether the applicant organization and bingo manager are complying with all the provisions of this chapter and all other applicable ordinances, statutes, rules and regulations affecting the applicant's business.

• B. Revocation of License—Procedure.

  1. Summary Suspension. Whenever it appears to the Sheriff's Department that a permittee is conducting a bingo game in violation of any of the provisions of this chapter, the Sheriff's Department 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.

  2. Violation of Suspension. Any person who continues to conduct a bingo game after summary suspension thereof, under paragraph 1 above, shall be deemed guilty of a misdemeanor and, upon conviction thereof, shall be punishable by a fine not exceeding $500.00 or by imprisonment in the County Jail for a period not exceeding six months, or by both such fine and imprisonment.

  3. Request for Hearing. The order issued under paragraph 1 above shall also notify the permittee that it shall have five days from the date of such order to request a hearing, before the City Manager, to determine whether such permit shall be revoked. Failure to request, in writing, such hearing before the City Manager, within such five-day period, shall result in revocation of the permit.

  4. Hearing—Notice. Upon such request by the permittee, whose permit has been suspended under paragraph 1 above, for a hearing to determine whether such permit shall be revoked, the City Manager shall provide such hearing within 10 days after

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City of Paramount, CA § 5.36.090

PARAMOUNT CODE

§ 5.36.090

receipt of such request, at which hearing the suspended permittee may appear before the City Manager for the purpose of presenting evidence as to why the permit should not be revoked. No permit shall be revoked under this subsection unless notice of the time and place of such hearing shall have been given at least five days before such hearing, by depositing in the United States mail a notice directed to such suspended permittee at the address given in the application. The notice shall set forth a summary of the ground advanced as the basis for the suspension and revocation.

5. Cessation of Operation. Any organization whose permit is revoked under this subsection 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 City Manager.

• C.

Alternate Procedure.

1. Grounds—Notice. Whenever it appears to the City Manager that a permittee is conducting bingo games in violation of any of the provisions of this chapter, or that a permit was obtained by fraudulent representation, and no summary suspension is ordered under subsection B of this section; or the City Manager finds that the manner in which the bingo games are being operated interferes with the use and enjoyment of adjacent or nearby properties, the permit may be revoked; provided, that the permittee may appear before the City Manager at the time fixed by the City Manager for the purpose of presenting evidence as to why the permit should not be revoked. No permit shall be revoked under this section unless written notice shall have been given at least five days before such hearing, by depositing in the United States mail a notice directed to such permittee at the address given in the application. The notice shall set forth a summary of the ground advanced as the basis for the revocation. Furthermore, the City Manager may attach such conditions to the permit as will make the conduct of bingo games compatible with the use and enjoyment of adjacent and nearby properties.

   2. Cessation of Operation. Any organization whose permit is revoked under this section shall not conduct any bingo games in the City until such time as the City Council, on appeal, determines to overrule the decision of the City Manager.

• D. Appeal.

  1. Filing—Contents—Hearing—Final Determination. Any holder of a permit whose permit is revoked or conditioned under this chapter shall have the right, within 10 days after receiving written notice of revocation, to file a written appeal with the City Council. Such appeal shall set forth the specific ground or grounds upon which it is based. The City Council shall hold a hearing on the appeal within 30 days after its receipt by the City, or at a time thereafter agreed upon, and shall cause the applicant to be given at least 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 its appeal. The determination of the City Council on the appeal shall be final.

  2. Reapplication. Any organization whose permit is finally revoked may not again apply for a permit to conduct bingo games in the City for a period of one year from the date of such revocation; provided, that if the ground for revocation is cancellation of the exemption granted under Section23701d of the Revenue and Taxation Code, such organization may again apply for a permit upon proof of the reinstatement of such

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City of Paramount, CA § 5.36.090

BUSINESS LICENSES REGULATIONS

§ 5.36.090

exemption.

(Prior code §§ 14C-38—14C-41)

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City of Paramount, CA

BUSINESS LICENSES REGULATIONS

§ 5.40.010

§ 5.40.030