Reedley Municipal Code Ch. 9 Charitable Bingo Games

Pursuant to the authority provided in California constitution section 19(c) of article IV and Penal Code section 326.5e, the city establishes the following requirements for the conduct of bingo games by nonprofit charitable organizations in the city. (Ord. 651, 11-3-1981)

BINGO: A game of chance in which prizes are awarded on the basis of designated numbers or symbols on a card which conforms to numbers or symbols selected at random. (Ord. 651, 11-3-1981)

No person shall be permitted to conduct bingo games in the city unless such person possesses a valid certificate or letter from the franchise tax board and the internal revenue service stating that they are exempted from the payment of bank and corporation tax by Revenue and Taxation Code section 23701d and that a contribution or gift to them would be a charitable contribution under internal revenue code of 1954 section 170(c)(2), and possess a valid permit issued pursuant to the provisions of this chapter. (Ord. 651, 11-3-1981)

A. No person or organization shall conduct a bingo game without first obtaining a permit from the finance director. (Ord. 651, 11-3-1981)

B. Written application for a permit required by this chapter shall be made by affidavit under penalty of perjury and filed with the finance director. The application shall be on a form provided by the finance director and shall be accompanied by an application fee established by resolution of the city council. The application shall contain the following: (Ord. 95-009, 6-13-1995)

1. Name of organization; names, signatures and addresses of all the officers of the organization;

2. Days and hours of operation of bingo games;

3. Attached copies of certificates or letters evidencing exempt status under Revenue and Taxation Code section 23701d and internal revenue code of 1954 section 170(c)(2), received from the franchise tax board and the internal revenue service;

• 4. Address of premises where bingo games will be conducted;
• 5. Statement of ownership or lease of premises;
• 6. Purpose of which such premises are used by the organization;
• 7. Statement of ownership of bingo equipment used in the operation of bingo games;

8. Statement of consent for chief of police to inspect any bank accounts containing profits derived from bingo games;

9. Name of each individual, corporation, partnership, or other legal entity which has a financial interest in the conduct of bingo games;

10. Name of person responsible for the operation of the bingo games;

11. Such further information as may be required by the finance director. (Ord. 651, 11-3-1981)

Upon receiving a completed application with fee, the finance director will send the application to the chief of police. The chief of police will investigate to determine whether the license should be issued. The chief of police shall have the authority to obtain criminal history information for each person operating or assisting in the operation of a bingo game for purposes of his investigation. If he finds that such operators or persons assisting in the operation of a bingo game have been convicted of any felony and/or crimes in the past five (5) years involving lotteries, gambling, larceny, perjury, bribery or fraud, he may without further proceeding, disapprove issuance of the permit in question. (Ord. 651, 11-3-1981)

The finance director may refuse to issue a permit if, after consideration of the application and any other papers, records and files the finance director deems relevant, it is determined that the operation of a bingo game would be injurious to the health, safety and morals of the people of the city or that the permit application or proposed mode of operation of the bingo game is not in compliance with the provisions of this chapter. (Ord. 651, 11-3-1981)

Any applicant or permittee may appeal to the city council from any order or action of the finance director respecting the issuance, denial, modification, suspension or revocation of any permit. (Ord. 651, 11-3-1981; amd. 2007 Code)

A permit granted under this chapter shall not be transferable, either as to the permittee or the location. Any attempt to transfer shall render the permit in question invalid. (Ord. 651, 11-3-1981)

Any permit issued under this chapter may be suspended or revoked by the city council on its own motion or on citation of the chief of police for violation of any of the provisions of this chapter, or any provisions of federal or state law. (Ord. 651, 11-3-1981)

The holder of a bingo permit shall be given prompt notice of revocation or suspension of the permit and shall immediately desist from conducting or operating any bingo game. The notice shall fix a time and place, not less than five (5) nor more than sixty (60) days after service thereof, at which time the holder of the permit may appear before the city council and be granted a hearing upon the merit of the suspension or revocation. (Ord. 651, 11-3-1981)

A. No minors shall be allowed to participate in any bingo game.

B. All bingo games shall be open to the public, not just to the members of the nonprofit charitable organization. (Ord. 651, 11-3-1981)

A bingo game shall be operated and staffed only by members of the nonprofit charitable organization under which it is organized. Only an organization authorized to conduct a bingo game by permit issued pursuant to this chapter shall operate such game, or engage in the promotion, supervision or any other phase of such game. (Ord. 651, 11-3-1981)

No person or agent of such person shall receive a profit, wage, salary or other income from any bingo game authorized by this chapter, except as a bona fide prize received as a participant of such bingo game. (Ord. 651, 11-3-1981)

A nonprofit charitable organization shall conduct a bingo game only on property owned or leased by it, and which property is used by such organization solely for an office or for performance of the purposes for which the organization is organized. (Ord. 651, 11-3-1981)

All equipment used in the operation of bingo games shall be owned by the organization authorized by permit and licensed to conduct such bingo games. (Ord. 651, 11-3-1981)

No individual, corporation, partnership or other legal entity except the organization authorized by permit to conduct a bingo game shall hold a financial interest in the conduct of such bingo game. (Ord. 651, 11-3-1981)

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 with the exception of the following expenditures:

A. Such proceeds may be used for prizes;

B. A portion of such proceeds, not to exceed ten percent (10%) of the proceeds before the deduction for prizes, or five hundred dollars ($500.00) per month, whichever is less, may be used for rental of property, overhead and including the purchase of bingo equipment and administrative expenses;

C. Such proceeds may be used to pay license fees. (Ord. 651, 11-3-1981)

Each permittee conducting a bingo game shall maintain detailed records of all proceeds, profits, expenditures, prizes and other expenses relating to the operation of the bingo game. Such records shall be retained for a period of three (3) years and as long thereafter as may be required by any state or federal law. Such records, including related bank accounts, shall be open for inspection at any time by the chief of police, finance director or any state or federal official in the performance of his duties. The permittee shall file a yearly report under the penalty of perjury with the finance director containing the following information:

A. Any changes in or additions to the information required in the application;

B. The total amount of money received from the operation of bingo games during the previous year;

C. The total amount paid out in prizes and a list of all prize winners;

D. Detailed costs to the permittee of the operation of the bingo games; and

E. All disbursements from the fund. (Ord. 651, 11-3-1981)

The total value of prizes awarded during the conduct of any bingo games shall not exceed two hundred fifty dollars ($250.00) in cash, or kind, or both, for each separate game which is held. (Ord. 651, 11-3-1981)

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. (Ord. 651, 11-3-1981)

All bingo games shall be conducted only during the hours of twelve o'clock (12:00) noon to twelve o'clock (12:00) midnight. No bingo sessions shall exceed six (6) continuous hours, and not more than one bingo session shall be permitted in one twenty four (24) hour period. A licensee shall not conduct bingo more than one day per week. (Ord. 651, 11-3-1981)

A permittee shall keep the license posted in a conspicuous place within the room in which bingo is being played during the conduct of any such game. The permittee shall produce and exhibit the same whenever requested to do so by any police officer or city official. (Ord. 651, 11-3-1981)

The chief of police shall have the authority to inspect the premises in order to ensure that the operation of bingo games at the premises does not constitute a violation of any state or federal law or provision of this chapter. (Ord. 651, 11-3-1981)

A. Any person who violates section 3-9-4, 3-9-11, or 3-9-14 through 3-9-20 of this chapter shall be guilty of a misdemeanor 1 .

B. A violation of section 3-9-13 of this chapter shall be punishable by a fine not to exceed ten thousand dollars ($10,000.00), which fine shall be deposited in the city's general fund. (Ord. 651, 11-3-1981)

An annual renewal fee established by resolution of the city council will be paid to the finance department on the anniversary date of the permit. (Ord. 95-009, 6-13-1995)