Scotts Valley Municipal Code Ch. 5.06 Bingo

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 following requirements are established for the conduct of bingo games by authorized organizations as defined in Section 5.06.030.

(Ord. 159 § 1(part), 1994)

As used in this chapter, "bingo" means a game of chance in which prizes are awarded on the basis of designated numbers or symbol that are marked or covered by the player on a tangible card in the player's possession and that conform to numbers or symbols, selected at random and announced by a live caller. The game of bingo shall include tangible cards having numbers or symbols that are concealed and preprinted in a manner providing for distribution of prizes. Electronics or video displays shall not be used in connection with the game of bingo, except in connection with the caller's drawing of numbers or symbols and the public display of that drawing. The winning cards shall not be known prior to the game by any person participating in the playing or operation of the bingo game. 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." Only a covered or marked tangible card possessed by a player and presented to an attendant may be used to claim a prize.

(Ord. 159 § 1(part), 1994; Ord. No. 159.1, § 1, 12-6-2017)

No person, organization or other legal entity shall be permitted to conduct bingo games in the incorporated area of the city unless such persons, organizations or other legal entities possess a valid certificate or letter from the Franchise Tax Board and the Internal Revenue Service stating that they are exempted from the payment of the bank and corporate tax by Sections 23701a, 23701b, 23701d, 23701e, 23701f, 23701g, 23701k, 23701w, and 23701l of the Revenue and Taxation Code and by mobilehome park associations, senior citizens organizations, and charitable organizations affiliated with a school district ("authorized organizations"); provided that such authorized organization holds a valid license and pays a license fee pursuant to the provisions of this chapter; and provided that the authorized organization has been in continual existence within the city for a period of three years prior to the date application is made for bingo license; and provided that the receipts of those games are used only for charitable purposes.

(Ord. 159 § 1(part), 1994; Ord. No. 159.1, § 2, 12-6-2017)

A. Minors. No minors shall be allowed within the room in which a bingo game is being operated.

B. Open to the Public. All bingo games shall be open to the public, not just to the members of the authorized organization.

C. Staffing and Operation. A bingo game shall be operated and staffed only by members of an authorized organization which organized it. Only an authorized organization which holds a valid license issued pursuant to this chapter shall operate such game, or engage in the promotion, supervision, or any other phase of such game. This subsection does not preclude the employment of security personnel who are not members of the authorized organization at a bingo game by the authorized organization conducting the game.

D. No Profit, Wage or Salary. 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 in such bingo game.

E. Where Bingo May be Conducted. An authorized organization shall conduct a bingo game only on property owned or leased by it, or property whose use is donated to the authorized organization, and which property is used by such authorized organization solely for an office or for performance of the purposes for which the authorized organization is organized and solely within the room designated on the licensee's application. Nothing in this subsection shall be construed to require that the property owned or leased by, or whose use is donated to, the authorized organization be used or leased exclusively by, or donated exclusively to, that authorized organization.

F. Bingo Equipment. All equipment used in the operation of bingo games shall be owned by the authorized organization conducting such bingo games.

G. Financial Interest. No individual corporation, partnership, or other legal entity except the authorized organization shall hold a financial interest in the conduct of such bingo game.

H. Profits and Proceeds. For authorized organizations covered by Section 23701d of the Revenue and Tax 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 and with respect to those authorized organizations, all profits shall be used only for charitable purposes. Proceeds derived from authorized organizations other than those covered by 23701d of the Revenue and Tax Code shall be kept in a special fund or account and shall not be commingled with any other fund or account. Proceeds are the receipts of bingo games and shall only for charitable purposes except as follows:

1. The proceeds may be used for prizes;

2. A portion of the proceeds, not to exceed twenty percent of the proceeds before the deduction for prizes, or two thousand dollars 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;

3. The proceeds may be used to pay license fees.

I. Records. Each authorized organization conducting a bingo game shall maintain detailed records of all profits, expenditures, prizes and other expenses associated with the operation of bingo games. The 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.

J. Total Value of Prizes. The total value of prizes awarded during the conduct of any bingo games shall not exceed five hundred dollars in cash or kind, or both, for each separate game which is held.

K. Physical Presence at Bingo Game Required. 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.

L. Number of Days and Hours of Operation. There shall be no more than two days of bingo per calendar week for each authorized organization and all bingo games shall be conducted during the hours of twelve p.m. to eleven p.m.

M. No Alcohol. No alcoholic beverages shall be sold, served, or licensed within the room within which a bingo game is operated. No person under the influence of an alcoholic beverage shall be allowed within the room within which a bingo game is operated.

(Ord. 159 § 1(part), 1994; Ord. No. 159.1, § 3, 12-6-2017)

In reviewing applications for bingo licenses submitted under Section 5.06.080 of this Code, and issuing licenses under Section 5.06.070, the finance director may, with the advice and consent of the chief of police, waive the requirement in subsection D of Section 5.06.110 that the applicant have been in existence three years prior to submitting the application. This waiver may be granted upon finding that the applicant was organized to address a topic of public importance that attained public attention within the past three years.

(Ord. 159 § 1(part), 1994)

Any person who violates Sections 5.06.030, 5.06.040, 5.06.060, 5.06.070, 5.06.150, 5.06.180 and 5.06.190 shall be guilty of a misdemeanor and shall be subject to the penalties provided in Title 1, Chapter 1.08 of this Code.

(Ord. 159 § 1(part), 1994)

A. The chief of police and any official city inspector shall have the authority to enter licensee's premises free of charge 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 or federal law or provisions of this Code.

B. The chief of police and finance director may inspect the records and special bank accounts containing moneys derived from bingo games of any authorized organization conducting bingo games whenever deemed reasonable and appropriate to insure compliance with the provisions of this chapter.

(Ord. 159 § 1(part), 1994)

No person, corporation, partnership, association or organization of any sort shall conduct a bingo game without first obtaining a license from the finance director to do so.

(Ord. 159 § 1(part), 1994)

An application for a bingo license or renewal of such license shall be filed with the finance director, shall be in writing on forms provided by the city, shall be in duplicate, and shall be accompanied by the appropriate license fee. The application and renewal fees for a bingo license shall be set be resolution of the city council. Fees are established to cover actual cost of issuing such license. Applications shall be verified as provided by the California Code of Civil Procedure for the verification of pleadings. Such application shall include:

A. Name or organization, names, signatures, addresses, and phone numbers of all officers of the organization and the number of years the organization has had continuous active existence at a fixed address in the city prior to the application date;

B. Days and hours of operation of bingo games;

C. Attached copies of certificates or letters evidencing exempt status under Section 170 c2 of the Internal Revenue Code of 1954, received from the Franchise Tax Board and the Internal Revenue Service or proof that the organization is a validly existing mobile home park association, senior citizens' organizations, or charitable organization affiliated with a school district;

D. Address of the premises for which the license is required and the seating capacity, the name, residence, business address, business phone number and written consent of the owner of the premises, who shall indicate consent to bingo games being conducted upon the premises by signing the application in the space provided;

E. Statement of ownership or lease of premises;

F. Purpose for which such premises are used by the authorized organization;

G. Statement of ownership of bingo equipment used in the operation of bingo games;

H. Statement of consent for chief of police to investigate any bank accounts containing moneys derived from bingo games;

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

J. Name and birth date, residence and business address of each staff member or person operating or assisting in the operation of bingo games;

K. Whether or not any person who will operate or assist in the operation of bingo games has been convicted within the last five years of crimes involving lotteries, gambling, larceny, perjury, bribery, extortion, fraud, burglary, robbery, or similar crimes; and

L. Such further information as may be reasonably required by the chief of police.

(Ord. 159 § 1(part), 1994; Ord. No. 159.1, § 4, 12-6-2017)

A. The finance director shall submit each application to the chief of police for investigation and approval.

B. The chief of police shall conduct an appropriate investigation to determine whether the license should be issued in accordance with the provisions of this chapter.

C. 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 the purposes of his investigation. If he/she finds that 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, burglary, robbery, or similar crimes he/she may not approve issuance of the license in question.

(Ord. 159 § 1(part), 1994)

The finance director shall submit each application to the following departments for investigation and recommendation:

A. Fire department as to any fire hazard on the premises in question.

B. County health department as to the health and sanitary conditions of the premises in question.

C. Building inspection department as to compliance with city building regulations.

D. Planning director as to compliance with city zoning requirements and the city zoning ordinance.

(Ord. 159 § 1(part), 1994)

After investigation the chief of police shall approve the application and the finance director shall issue a bingo game license or renewal of such license, if the chief of police finds:

A. That a completed written application form therefore has been filed; and

B. That the required fee therefore has been paid to the city finance director; and

C. That as a result of the investigation all applicable provisions of this chapter with regard to such license application have been met; and

D. That the organization has had continuous active existence at a fixed address in the city for at least three years prior to the application date or that requirement has been waived as provided in chapter; and

E. That the operation by the applicant will be carried on in a building, structure and location which complies with and meets all of the health, zoning, fire, building and safety requirements and standards of the laws of the state of California and ordinances of the city applicable to such premises; and

F. That the applicant and the persons who will operate or assist in operating bingo games have not been convicted in a court of competent jurisdiction by final judgment, within the last five years of crimes involving lotteries, gambling, larceny, perjury, bribery, extortion, fraud, burglary, robbery or similar crimes;

G. That the applicant has not had a similar type license previously revoked for good cause within the past year unless the applicant has shown a material change in circumstances since the date or revocation.

(Ord. 159 § 1(part), 1994)

If the license is approved, the chief of police may include such restrictions and conditions in the license as deemed reasonable and necessary under the circumstances to insure compliance with the purposes and intent of this chapter.

(Ord. 159 § 1(part), 1994)

Notice of decision with reference to issuance of a license under this chapter shall be made to the applicant or any other person requesting such notice in writing within thirty days after receipt of the application for a license or a renewal of a license.

(Ord. 159 § 1(part), 1994)

The chief of police shall refuse to approve a license if the license application of proposed mode of operation of the bingo game is not in compliance with the provisions of this chapter.

(Ord. 159 § 1(part), 1994)

A. 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 5.06.080 made subsequent to the issuance of a bingo license shall be reported within twenty days to the chief of police for any further investigation which he deems necessary and appropriate.

B. If, after such investigation, the chief of police finds that the changes require suspension, the chief of police may suspend any license issued.

(Ord. 159 § 1(part), 1994)

Licenses shall be granted for one-year terms; each term is renewable annually. Written application for renewal of a license shall be made to the finance director at least one month prior to its expiration date. Licenses shall automatically expire upon repeal of authority to conduct bingo games within the city.

(Ord. 159 § 1(part), 1994)

Every licensee shall keep the license and a copy of the rules and regulations set forth in Section 5.06.040 posted in a conspicuous place upon the licensed premises in open and clear view.

(Ord. 159 § 1(part), 1994)

At the end of each fiscal year during the term of the license, each authorized organization which has been issued a license shall file a report made under penalty of perjury with the finance department containing the following information:

A. Any changes in or additions to the information required under Section 5.06.080.

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

C. The total amount paid out in prizes.

D. Detailed costs to the authorized organization for the operation of the bingo games.

(Ord. 159 § 1(part), 1994)

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 in question invalid.

(Ord. 159 § 1(part), 1994)

Any license issued under this chapter may be suspended by the chief of police for violation of any of the provisions of this chapter, or any provisions of this Code or of federal or state law. The chief of police in case of such suspension, shall serve the licensee with a written order of suspension, which shall state the reasons for the suspension. The order shall be effective immediately if personally served, or forty-eight hours after the same has been deposited postage pre-paid in the course of transmission with the United States Postal Service. Immediately upon such an order becoming effective, the license shall cease all operations under such license.

(Ord. 159 § 1(part), 1994)

The suspension shall become a revocation within ten days after the order of suspension becomes effective unless the licensee files an appeal of the order of suspension. Where an appeal is filed, the order shall be stayed pending a determination thereon by the city council. The suspension shall become a revocation of the suspension of the chief of police is upheld.

(Ord. 159 § 1(part), 1994)

Any person aggrieved by the decision of the chief of police with reference to the approval or denial of an application of a license may appeal such decision according to the appellate procedures set out for appeals to the city council in Title 17, Chapter 17.50, Section 17.50.060 of the code.

(Ord. 159 § 1(part), 1994)