Chapter 16.50

NONPROFIT ORGANIZATION FUNDRAISERS

Sections:

• 16.50.020 Nonprofit organization fundraiser registration required.

• 16.50.030 Conduct of nonprofit organization fundraiser.

• 16.50.040 Nonprofit organization fundraiser registration.

• 16.50.050 Fundraiser registration application procedures.

• 16.50.060 Person or entity registration application procedures.

• 16.50.070 Authority of the administrator to set conditions on registration.

• 16.50.080 Grounds for denial, revocation or suspension of registration.

• 16.50.090 Registration show cause hearing procedures.

• A. Regulation of persons subject to registration pursuant to the provisions of this chapter is essential to the preservation of the integrity of gaming regulation in the City of San José.

• B. Eligible nonprofit organizations may conduct nonprofit organization fundraisers at any place or building located within the City of San José in conformity with the requirements of state gambling law and this title.

• C. Eligible nonprofit organizations may also conduct nonprofit organization fundraisers on cardroom premises in conformity with the requirements of state gambling law and this title, including, but not limited to the existing

limitations and restrictions in this title on the number of card tables that a cardroom permittee may have.

• D. It remains the policy of the city that this title authorizes cardroom permittees to conduct charitable fundraising on cardroom premises in conformity with the requirements of this Title 16 and state gambling law.

• (Ord. 28517.)

• A. No person shall hold, establish, maintain, manage, conduct or operate, or assist in holding, establishing, maintaining, managing, conducting or operating a nonprofit organization fundraiser without having first obtained and thereafter maintaining in effect a valid nonprofit organization fundraiser registration.

• B. No person shall permit, allow, or suffer any nonprofit organization fundraiser to be held, established, maintained, managed, conducted or operated unless the nonprofit organization fundraiser is held, maintained, conducted and operated with a valid nonprofit organization fundraiser registration.

• (Ord. 28517.)

• A. An eligible nonprofit organization that conducts a nonprofit organization fundraiser shall comply with the requirements of this chapter, other applicable requirements of this title and the requirements of state gambling law.

• B. A person or entity shall comply with the requirements of this chapter, other applicable requirements of this title, and the requirements of state gambling law.

• C. Permissible games shall be the only controlled games allowed at a nonprofit organization fundraiser.

• D. Controlled games shall be conducted at a nonprofit organization fundraiser in compliance with the requirements of state gambling law

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and this chapter, including but not limited to any limitations, restrictions, terms, and conditions required by state gambling law or this chapter.

• E. The use of slot machines or devices, or gambling devices as defined by state gambling law at a nonprofit organization fundraiser is prohibited. The determination of the administrator as to what constitutes a slot machine or device or gambling device that is prohibited under this title shall be conclusive, regardless of any contrary opinion, decision, or regulation promulgated by the California Department of Justice or the California Gambling Control Commission.

• F. Cardroom permittees that allow nonprofit organization fundraisers to be held on cardroom premises shall be subject to all the requirements of Title 16 applicable to cardrooms.

• (Ord. 28517.)

• A. An eligible nonprofit organization that desires to conduct a nonprofit organization fundraiser shall apply for and obtain a nonprofit organization fundraiser registration from the administrator in accordance with the requirements of this chapter prior to conducting the fundraiser.

• B. Only an eligible nonprofit organization that has a current, valid registration with the California Department of Justice pursuant to the requirements of Article 17 of the Gambling Control Act may apply for and obtain a nonprofit organization fundraiser registration from the administrator.

• C. Any person or entity that conducts, or is engaged to conduct or desires to conduct a fundraiser on behalf of an eligible nonprofit organization shall apply for and obtain a person or entity registration from the administrator in accordance with the requirements of this chapter prior to conducting the fundraiser.

• (Ord. 28517.)

• A. Each Eligible Nonprofit Organization shall apply for a nonprofit fundraiser registration with the Administrator at least fourteen (14) Business Days prior to the day the fundraiser is to be held.

• B. The Eligible Nonprofit Organization, by a responsible fiduciary of the organization or other natural person authorized to sign on behalf of and legally bind the organization, shall:

  1. Complete an application provided by the Administrator which shall include a signed permission authorizing the Administrator or his or her authorized representative to have immediate access to enter upon and inspect the premises upon which the nonprofit organization fundraiser is to be held and any equipment and supplies to be used in the playing of Controlled Games at the fundraiser, and to inspect and copy any records or documents required to be maintained under this Title or State Gambling Law;

  2. Provide proof of current, valid registration with the California Department of Justice;

  3. Provide any other information, records, or documentation that the Administrator may require; and

  4. Certify the contents of the application under penalty of perjury.

• C. A registration fee or renewal fee as set forth in the Schedule of Fees established by Resolution of the City Council shall be paid together with the registration application.

• D. A registration application shall be deemed incomplete and shall not be acted upon by the Administrator if:

  1. The application form submitted by the nonprofit organization is incomplete;

  2. The nonprofit organization does not have a current, valid registration with the California Department of Justice;

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3. The registration fee or renewal fee has not been paid; or

4. The nonprofit organization has refused, failed or neglected to provide such other information as the Administrator may require.

• E. Registration shall be valid for a period of one (1) year from the date of issuance.

• F. Registration is subject to annual renewal. (Ords. 28517, 30616.)

• A. Any person or entity that desires to conduct or assist in the conduct of a nonprofit organization fundraiser for or on behalf of an Eligible Nonprofit Organization shall apply for a person or entity registration at least fourteen (14) Business Days prior to the day the fundraiser is to be held.

• B. The person or entity, if a natural person, or if not, by a natural person authorized to sign on behalf of and legally bind such person or entity, shall:

  1. Complete an application provided by the Administrator which shall include a signed permission authorizing the Administrator or his or her authorized representative immediate access to enter upon and inspect the premises upon which the nonprofit organization fundraiser is to be held and any equipment and supplies to be used in the playing of Controlled Games at the fundraiser, and to inspect and copy any records or documents required to be maintained under this Title or State Gambling Law;

  2. Provide proof of current, valid state registration if such registration is required pursuant to State Gambling Law;

  3. Provide any other information, records, or documentation that the Administrator may require to assure compliance with the requirements of State Gambling Law and this Title; and

  4. Certify the contents of the application under penalty of perjury.

• C. A registration fee or renewal fee as set forth in the Schedule of Fees established by Resolution of the City Council shall be paid together with the registration application.

• D. A registration application shall be deemed incomplete and shall not be acted upon by the Administrator if:

  1. The application form submitted by the applicant is incomplete;

  2. The person or entity does not have a current, valid registration with the California Department of Justice if such registration is required pursuant to State Gambling Law;

  3. The registration fee or renewal fee has not been paid; or

  4. The person or entity has refused, failed or neglected to provide such other information as the Administrator may require.

• E. Registration shall be valid for a period of one (1) year from the date of issuance.

• F. Registration is subject to annual renewal. (Ords. 28517, 30616.)

When the administrator grants nonprofit fundraiser registration or person or entity registration or renewal of either form of registration, the administrator may place such limitations and conditions thereon as the administrator may deem necessary, consistent with the public interest and the policies of this title. (Ord. 28517.)

The administrator may deny, suspend, revoke, or add limitations and conditions to a nonprofit fundraiser registration or person or entity registration on any of the following grounds:

• A. Failure to comply with the requirements of state gambling law or of this title for registration.

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• B. Denial, revocation, or suspension of a state nonprofit fundraiser registration, state person or entity registration, gambling license, key employee license, work permit, registration, or finding of suitability pursuant to state gambling law, or the denial, revocation, suspension of a permit, license or registration or finding of suitability regulating legal gambling in any other state.

• C. Objection to the granting of registration, or an order or decision denying an application for registration, by the California Department of Justice or California Gambling Control Commission.

• D. The registrant or applicant has violated:

  1. Any provision of this chapter, including any regulation promulgated thereunder, or any other applicable provision of this title;

  2. Any provision of state gambling law;

  3. Any provision of state law relating to nonprofit organizations; or

  4. Any provision of the law of any other state or of federal law relating to gambling or nonprofit organizations.

• E. The registrant or applicant has failed to timely pay any fees due under this title.

• F. The registrant or applicant has violated any limitation or condition on the registration.

• G. Failure to cooperate with the administrator as required pursuant to Section 16.26.010, or failure to provide information, documentation, and assurances required for qualification or failure to reveal any material fact relating to qualification for registration.

• H. Supplying information to the administrator that is untrue or misleading.

• I. Conviction, including a plea of nolo contendere, of any crime punishable as a felony; including a conviction by any fed-

eral court or a court in another state for a crime that would constitute a felony in California.

• J. Conviction, including a plea of nolo contendere, of any crime punishable as a misdemeanor, including conviction by any federal court or a court in another state for a crime that would constitute a misdemeanor in California, involving dishonesty, moral turpitude, prostitution, sale or possession for sale of a controlled substance, gambling, or any other crime substantially related to the qualifications, functions, or duties of regulated gambling or a gambling business, within a ten-year period immediately preceding the submission of the application.

• K. Association of the registrant or applicant with criminal profiteering activity or organized crime as defined in the California Penal Code Section 186.2 of the California Control of Profits of Organized Crime Act, Penal Code Sections 186 et seq.

• L. Contumacious defiance by the registrant or applicant relating to any legislative investigative body or any other investigative body in any state of the United States.

• M. The registrant or applicant is a partner, officer, director or shareholder or has any financial interest in any business organization that engaged in any form of prohibited gambling pursuant to the California Penal Code whether within or outside of the state.

  • N. The registrant or applicant has committed any act involving dishonesty, fraud or deceit with the intent to substantially benefit the applicant registrant, or benefit another, or substantially injure another.

  • O. The registrant or applicant is less than twenty-one years of age.

• (Ord. 28517.)

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• A. If it appears at any time that good cause may exist for the Administrator to deny, suspend, revoke, or add limitations and conditions to a nonprofit fundraiser registration or person or entity registration, the Administrator shall provide the applicant or registrant with notice and the opportunity for a hearing before the Chief of Police to show cause why the application should not be denied, why the registration should not be suspended or revoked, or why limitations and conditions should not be added to the registration.

• B. In the case of denial, suspension, revocation, or addition of limitations and conditions, the applicant or registrant shall be given ten (10) Business Days from the date of mailing of the notice of denial, suspension or revocation to request a show cause hearing before the Chief of Police. The applicant or registrant shall be deemed to have waived the right to a show cause hearing if the Administrator does not receive the applicant or registrant's request for a hearing within ten (10) Business Days of the date of service of the notice. In case of a waiver, the Administrator shall serve a statement of decision upholding the suspension, revocation, or placement of limitations and conditions on the registration.

• C. The Administrator shall schedule the hearing within thirty (30) Business Days after receipt of the request for a show cause hearing. The Administrator shall mail notice of the day, time, and place of the hearing to the Applicant or registrant within ten (10) Business Days after receipt of the request for hearing.

• D. The hearing shall be held in accordance with the procedures and rules set out in San José Municipal Code Sections 16.36.020 through 16.36.040, with the Chief of Police acting as the presiding official.

• E. If the Chief of Police, on the basis of substantial evidence presented at the show cause hear-

ing, finds good cause, the Chief of Police may deny, suspend, revoke, or add limitations and conditions to the registration.

• F. When the Chief of Police denies, suspends, revokes, or adds limitations and conditions to a registration, the Chief of Police shall issue a statement of decision giving the reasons for the decision and the findings of fact upon which the decision is based.

• G. The statement of decision shall be served upon the person who requested the show cause hearing within forty-five (45) days of the close of the hearing.

• (Ords. 28517, 30616.)

• A. The decision to deny, suspend, revoke, or add limitations and conditions to a registration shall be final.

• B. The written statement of decision shall contain a notice setting out Section 1.16.010 of this Code.

• (Ord. 28517.)

• A. The administrator shall be authorized to:

  1. Inspect the premises occupied or under the control of a registrant where the nonprofit organization fundraiser is to be held and any equipment or supplies to determine compliance with the requirements of this title and state gambling law. Inspections shall be conducted during normal business hours with or without notice and may be conducted before, during and after the fundraiser is held.

  2. Inspect, examine, remove, and impound:

     • a. Any documents, records, books, or computers containing any documents or records required to be created, maintained or kept pursuant to this title or state gambling law; and

     • b. Any supplies or equipment used in conducting controlled games either

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by the nonprofit organization or by any "person or entity" used, engaged by, or contracting with the registrant for the purpose of conducting the fundraiser for the nonprofit organization.

• B. The administrator shall provide copies or return the originals to the registrant or any person or entity used, engaged by, or contracting with the registrant for the purpose of conducting a fundraiser for the nonprofit organization as soon as is practical under the circumstances, taking into account the volume of records seized and the need to safeguard the integrity of the investigation.

• C. Documents and records shall have the meaning stated in Section 16.06.070D. of this title.

• D. When the administrator visits or inspects the premises on which the fundraiser is to be held, or any premises occupied by or under the control of a registrant, the registrant shall provide the administrator with immediate, unhindered access to all areas of the premises to be used for the fundraiser or upon which records, documents, supplies or equipment are held or stored.

(Ord. 28517.)

The administrator is authorized to promulgate such regulations as he or she deems necessary in order to implement the requirements of this chapter and to fulfill the purposes and policies of this chapter.

(Ord. 28517.)

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