Torrance Municipal Code Art. 18 Charitable Gambling

a) Every person, firm, corporation or association who, for profit, or for anything of value or for commercial purpose of any nature, keeps, operates, conducts or maintains, either directly or indirectly, within the City any house, room, apartment, dwelling place, building, premises or other place where any game, gambling or gaming not mentioned or included in Section 330 or 330a of the Penal Code of the state of California is played, conducted, dealt or carried on, whether with cards, dice, or any other device of whatsoever nature, for money, checks, credit, merchandise or other representative of value shall be guilty of a misdemeanor.

b) Every person, firm, corporation or association, either as owner, lessor, lessee, principal, agent, employee or participant or otherwise, who maintains or keeps or operates or conducts directly or indirectly in whole or in part, or who directly or indirectly is in possession in whole or in part of, any house, room, apartment, dwelling place, building, premises, or other place upon or in which any gambling, games or gaming prohibited in this section are played, conducted, dealt or carried on, and who imposes or collects a fee or anything of value for the privilege of participating in any way whatsoever in any such games, gambling or gaming, or who directly or indirectly gains or receives anything of value or any financial profit from playing, conducting or dealing any such games, gambling or gaming, shall, for the purposes of this Article, be deemed to be keeping, conducting, operating and maintaining the same for profit or commercial purposes.

It is unlawful for any person to set up, manage, conduct or maintain any combination of games, machines, or enterprises wherein games of chance and games of skill are alternated or played in any sequence with each other so that free games are used to entice or allure players into the playing for a consideration of paid games of skill or paid games combining the element of chance with the element of skill.

The provisions of Sections 45.18.010 and 45.18.020 are intended to prohibit the playing of “tango,” “bridgo,” “panguingue,” “skill ball,” or any game or combination of games similar in operation to such games, and to apply to the free as well as to the paid playing of such games; provided, however, that the game of bingo, as conducted under California law is hereby exempted from the prohibitions contained herein.

The provisions of this Article are not intended to conflict with but shall supplement all laws of the State of California prohibiting lotteries, gaming, or gambling, and these provisions must be invoked by all law enforcement officers whose duty it is to enforce the laws of the state against lotteries, gaming or gambling, when, by operation of this Article, the use, ownership or possession of any such game or mechanical device or contrivance is prohibited by this Article but might not be prohibited by California law.

It is further expressly provided that this Article does not apply to music machines; weighing machines; coin-operated machines or devices used by small children to receive rides thereupon, and which ordinarily are in the form of horses, fire engines, space machines, circuses and the like; any motion picture machine; any game of skill in which the direction and speed of the principal components of the game are manually controlled by the player, and where any mechanical operation in connection with the game is purely incidental thereto; and merchandise vending machines in which there is deposited an exact consideration and in which in every case the customer obtains that which he purchases.

Except as otherwise expressly set forth herein, the following words and terms as used in this Chapter shall have the following meanings:

a) “City” means the City of Torrance or its designated representative.

b) “City Manager” means the City Manager of the City of Torrance, or his or her designee.

c) “Department” means the City’s Department of Finance.

d) “Director” means the Finance Director of the City.

e) “Enforcement Officer” means any Police Officer, Code Enforcement Officer, Environmental Quality Officer, or other personnel employed by the City and designated by the City Manager.

f) “License Review Board” means a board created by the City with the intent to review applications for a business license, as established under Article 7 entitled “License Review Board” of Chapter 1 of Division 3 of the Torrance Municipal Code.

g) “License Supervisor” means the License Supervisor of the City.

h) “Net proceeds” means the gross amount collected from participants less the actual prizes or winnings paid, less the actual cost or expenses of conducting the bingo game, less any administrative penalties imposed by any State agency, County of Los Angeles, or the City against the charitable organization, and less any other expense authorized under the State or any rule promulgated thereunder.

i) “Premises” means any building, property or other area upon which any retail establishment business is conducted or operated in the City, including the parking area provided for customers.

Notwithstanding any other provisions of this Article, the ordinance codified in this Section is adopted pursuant to Section 19 of Article IV of the California Constitution to make the game of bingo lawful under the terms and conditions in Section 45.18.080 and 45.18.090.

Whenever, in Section 45.18.070 through 45.18.180, the following terms are used, they shall have the meaning respectively ascribed to them in this Section:

a) “Bingo” means 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. Bingo shall also include cards having numbers or symbols which are concealed and preprinted in a manner providing for distribution of prizes. The winning cards shall not be known prior to the game by any person participating in the playing or operation of the bingo game.

b) “Minor”, as related to bingo, shall mean any person under the age of 18.

c) “Nonprofit charitable organization” means an organization exempted from the payment of the bank and corporation tax by Sections 23701a, 23701b, 23701d, 23701e, 23701f, 23701g, 23701k, 23701l and 23701w of the Revenue and Taxation Code, and by mobile home park associations, senior citizen organizations and charitable organizations affiliated with a school district; and provided, that the receipts of such games are used only for charitable purposes.

d) “Remote caller bingo,” a type of bingo game authorized by California Penal Code Sections 326.5, may be lawfully played in the City pursuant to state law and this Article and not otherwise.

It shall be unlawful for any person to conduct any bingo games in the City unless such person is a member of a nonprofit charitable organization acting on behalf of such nonprofit charitable organization and has been issued a license as provided by this Article.

Application for license shall be made to the Department of Finance on forms prescribed by the Director of Finance. The Director of Finance shall have 30 calendar days in which to investigate the application and background of the applicant prior to the proposed date of the bingo game or games. Such application form shall require from the applicant at least the following:

a) The date(s) and place(s) of the proposed bingo game or games;

b) Proof that the organization is a nonprofit charitable organization as defined by Section 45.18.080;

c) Concurrently, with the filing of an application for a bingo license, each applicant shall file a statement specifying the name and address of one person who shall manage, supervise, and be responsible for the conduct of all bingo games by the applicant. The person (who shall be known as the bingo chairperson) shall sign a statement accepting such responsibility. The applicant, in addition to the bingo chairperson, shall file a statement specifying the names of not more than three persons who shall be known as bingo co-chairpersons. The bingo co-chairpersons shall assist the bingo chairperson in the performance of his/her duties, as directed by the chairperson. The bingo chairperson or their designated co-chairperson(s) shall be present on the premises at all times during which bingo games are conducted;

d) Application shall include the full name(s) of each chairperson and co-chairperson, date of birth, place of birth, physical description and driver’s license number for each; and

e) Each organization that holds a bingo license shall conduct its bingo games independent of any other organization which also holds a bingo license.

a) The term of a bingo license is one year and may be renewed for a period of one year.

b) No license tax shall apply to such nonprofit charitable organization to conduct bingo games for charitable purposes. License processing fees shall apply according to the City’s Master Fee Schedule.

a) Upon receipt of an application for a license, the Director of Finance may send copies of such application to any office or department which the Director of Finance deems essential in order to carry out a proper investigation of the applicant.

b) The Director of Finance and every officer and/or department to which an application is referred shall investigate the truth of the matters set forth in the application and may examine the premises to be used for the bingo game.

c) Upon approval of any application for a bingo license by the License Supervisor, the Director of Finance shall issue the license.

Each license issued hereunder shall be issued to a nonprofit charitable organization to conduct a bingo game at a specific location and shall in no event be transferable from one person to another, nor from one location to another.

a) A nonprofit charitable organization shall conduct a bingo game only on property which is both owned or leased by it and used by such organization for an office or for the performance of the purposes for which the organization is organized, and the organization has been at such location for one year prior to the application for a license pursuant to this Article. Each organization applying for a bingo license shall have a primary reason for the organization’s existence other than the playing of bingo.

b) No one under the age of 18 is allowed to participate in any bingo game.

c) All bingo games shall be open to the public, not just to the members of the nonprofit charitable organization.

d) A bingo game shall be operated and staffed only by members of the nonprofit charitable organization which organized it, and none shall receive a profit, wage or salary from any bingo game, including any free or discounted play of any bingo game. This subsection does not preclude the employment of security personnel, who are not members of the authorized organization, at such bingo game by the organization conducting the game. Such members during operation of any bingo game shall wear on his or her outside clothing, in plain view, at chest height, an identification badge or device, measuring not less than three square inches in area of any shape, clearly specifying the name of the licensed organization and either the full name of the person wearing such identification or a number corresponding to the registration of such employee or member held by the licensed organization. The employee or members while managing, supervising or conducting any bingo game shall not be allowed to participate as a player in any bingo game. Only the organization authorized to conduct a bingo game shall operate such game or participate in the promotion, supervision or any other phase of such game.

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

f) With respect to organizations exempt from payment of the bank and corporation tax by Section 23701d of the Revenue and Taxation 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. Such profit shall be used only for charitable purposes.

g) Organizations authorized to conduct bingo games pursuant to Section 23701 of the California Revenue and Taxation (“R&T”) Code, except 23701d of the R&T Code, shall contribute 10 percent of their gross income to charity each month.

h) With respect to other organizations authorized to conduct bingo games pursuant to Section 23701 of the Revenue and Taxation Code, except 23701d of the Revenue and Taxation Code, 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. “Proceeds” are the receipts of bingo games conducted by organizations not within subsection (f) of this Section. Such proceeds shall be used only for charitable purposes, except as follows:

1. Such proceeds may be used for prizes; and

2. A portion of such proceeds, not to exceed 20 percent of the proceeds before the deduction for prizes, or $1,000 per month, whichever is less, may be used for rental of property and overhead including the purchase of bingo equipment, administrative expenses, security equipment and security personnel.

i) No person shall be allowed to participate in a bingo game unless the person is physically present at the time and place in which the bingo game is being conducted.

j) The total value of prizes awarded during the conduct of any bingo game shall not exceed $500 in cash or kind, or both, for each separate game that is held.

k) No bingo game shall be conducted between the hours of midnight and 8:00 a.m.

l) No bingo game shall be conducted by an organization on more than three days out of seven calendar days.

m) No chairperson shall knowingly permit a person who is intoxicated and unable to exercise care for his safety or the safety of others to participate in or wander about any bingo game.

n) All disbursements from the bingo account shall be by consecutively numbered checks signed by two authorized officers of the licensee and shall be made payable to a specific individual or organization. There shall be written on each check the nature of the expenditure for which the check is drawn. No check shall be drawn to “cash” or a fictitious payee.

o) A record of all donations and/or sales of bingo playing cards shall be maintained and kept on file in the bingo office with the financial statement for inspection purposes by the City.

p) A yearly financial statement shall be filed with the Director of Finance by the chairperson of each bingo organization, at the end of each calendar year, in addition to the monthly financial statement.

q) Within 30 days after any bingo game is held, the licensee shall file with the Department of Finance a full and complete financial statement, using a form(s) approved by the Director of Finance, of all moneys collected or disbursed and the amount remaining for charitable purposes, or if the licensee conducts single games on an on-going basis, the licensee shall file a monthly statement due 30 days after the end of each month. The Director of Finance shall have the power to inspect all books, records, and papers of the nonprofit charitable organization which pertain to the operation of the bingo games.

r) No admission fee, purchase or donation shall be required for entry into the bingo premises.

s) 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. Signs shall be posted showing the occupancy capacity of any room used for bingo games.

t) No alcoholic beverages shall be served or consumed during the hours of bingo operation in the bingo hall.

u) No licensee shall issue chips or money to a patron on credit or loan (including but not limited to IOUs and checks to be held) or allow any patron to play on credit.

v) The bingo chairperson or his/her designated co-chairperson and one other member of the licensed organization shall jointly count all bingo proceeds and both shall sign a statement of their count, which shall become a permanent record maintained in the bingo files.

w) The licensee shall post the cost, prizes, and rules of each game to be played. Such signs shall be posted in plain view in a conspicuous place during the conduct of the bingo game, or on the program provided to the player.

x) A nonprofit charitable organization shall not conduct or permit to be conducted a bingo game unless the license is posted at the public entrance in a conspicuous place during the conduct of any bingo game.

y) No bingo organization shall maintain “net proceeds” of more than $8,000 at the end of any given calendar month.

z) Any bingo organization which has its license permanently suspended or revoked or does not renew its license shall expend all remaining moneys in either its savings or cash on hand or checking account within 30 days, and those accounts shall be closed immediately. All remaining money shall go to charity. A financial report shall be submitted to the Director of Finance showing the expenditures of all remaining cash.

aa) It shall be unlawful to call or post any bingo letter or number unless the letter or number on the object drawn is displayed to the assemblage in such a manner that the letter or number is visible to such assemblage.

bb) All bingo cards presented for winnings shall be verified by the bingo chairperson or their designated co-chairperson(s). Such verification shall be made prior to the beginning of the next bingo game.

cc) All winners of individual bingo games shall be recognized by the person calling the letters or numbers as winning that game when they call “bingo” and raise their hand. If more than one person is recognized as a verified winner, they shall share the winnings equally.

Any Enforcement Officer shall have free access to any bingo game licensed under this Article. The licensee shall have the bingo license and lists of approved staff available for inspection at all times during any bingo game.

a) The License Supervisor may deny an application for a bingo license, or suspend or revoke a license, if it is found that the applicant or licensee or any agent or representative thereof has:

1. Knowingly made any false, misleading or fraudulent statement of a material fact in the application or in any record or report required to be filed under this Article; or

2. Violated any of the provisions of this Article.

b) If after investigation the License Supervisor determines that a bingo license should be suspended or revoked, or an application for such license denied, the Director of Finance shall prepare a notice of suspension, revocation or denial of application, setting forth the reasons for such suspension, revocation or denial of application. Such notice shall be sent by certified mail to the applicant’s last address provided in the application or shall be personally delivered.

a) All decisions of the License Supervisor and/or Director of Finance may be appealed to the License Review Board within 15 days from their issuance.

b) Hearings shall be held by the License Review Board as prescribed under Section 31.7.5 of the Torrance Municipal Code.

c) Any decision of the License Review Board may be appealed to the City Council pursuant to the provisions of Article 5 Chapter 1 Division 1 of the Torrance Municipal Code, commencing at Section 11.5.1.

a) It is unlawful for any person, other than employed security personnel who are not members of the authorized organization, to receive a profit, wage or salary from any bingo game authorized by this Article.

b) Any person violating any of the provisions or failing to comply with any of the requirements of this Article may be issued an administrative citation by an Enforcement Officer as prescribed in Section 12.8.050 of the Torrance Municipal Code.

Every nonprofit charitable organization must comply with the California Department of Justice “Nonprofit Organization Gambling Fundraiser Registration Program”, California Business and Professions Code sections 19985 through 19987, California Penal Code section 337j(e)(1), and all other related federal, state, county, and local regulations.

a) It shall be unlawful for any person to conduct a charitable casino fundraiser in the City unless such person is a member of a nonprofit charitable organization, as defined in this Article, acting on behalf of such nonprofit charitable organization and such organization has been issued a charitable casino fundraiser license by the City, as provided by this Section.

b) The operation of a charitable casino fundraiser without a license or failure to operate in full compliance with all provisions of this Article is guilty of a misdemeanor. If a nonprofit organization, with a valid license, is found guilty, then such organization shall forfeit the license and is ineligible to reapply for a license for a period of 3 years.

Each charitable casino fundraiser license issued hereunder shall be issued to a nonprofit charitable organization to conduct a charitable casino fundraiser at a specific location and on one specific date and shall in no event be transferred from one person to another nor from one location or date to another.

Per California Business and Professions Code Section 19986(b), a nonprofit charitable organization may not hold more than one charitable casino fundraiser per calendar year, and each event shall not exceed five consecutive hours.

For the purpose of this Section, the following words and phrases shall mean:

a) “Charitable casino fundraiser” or “event” shall mean a fundraising event conducted by a nonprofit organization which includes controlled games, as that term is defined in California Penal Code section 337j(e). No real money may be exchanged.

b) “Charitable casino fundraiser manager” shall mean the individual who shall manage, supervise, and be responsible for the conduct of the event.

c) “Donation” shall mean a free contribution of any tangible item, goods, wares, merchandise, money, cash, consideration, services or any other thing of value.

d) “Minor”, as related to a charitable casino fundraiser, shall mean any person under the age of 21.

e) “Nonprofit charitable organization” shall mean any organization exempted from the payment of the bank and corporation tax by Section 23701(d) and (f) and business leagues and chambers of commerce which are exempted under Section 23701(e) of the Revenue and Taxation Code.

f) “Volunteer” shall mean a person who offers his services without wages, salary or reimbursement while having no legal concern or interest.

g) “Chips” or “scrip” shall mean simulated paper currency or tokens having no face value.

h) “Advertisement” shall mean any printed material, flyers, signs, pamphlets, leaflets, handbills, verbal broadcasting, or any other method normally utilized to call something to the attention of the public.

i) “Raffle” or “lottery” shall mean any scheme for the disposal or distribution of property or merchandise by chance for no consideration.

An application for a charitable casino fundraiser shall be made to the Department of Finance on forms prescribed by the Director of Finance not less than 60 days prior to the proposed date of the fundraiser. The application for a charitable casino fundraiser shall contain at a minimum the following:

a) A list of all volunteers who will operate the charitable casino fundraiser games or devices, including the full names of each volunteer, date of birth, home address and telephone number.

b) Name, address, and phone number of company or individual that will be furnishing charitable casino fundraiser equipment or devices.

c) The date, hours of the date, and place of the proposed charitable casino fundraiser.

d) Verification of annual registration with the Bureau of Gambling Control.

e) Verification of registration with the Attorney General’s Registry of Charitable Trusts.

f) Concurrently with the filing of an application for a charitable casino fundraiser license, each applicant shall file a statement specifying the name and address of two persons who shall manage, supervise and be responsible for the conduct of the charitable casino fundraiser. The charitable casino managers shall be present on the premises at all times during which a charitable casino fundraiser is being conducted. Application shall include the full name(s) of each charitable casino manager, date of birth, place of birth, physical description and driver’s license number for each.

g) No license tax shall apply to such nonprofit charitable organization to conduct a charitable casino fundraiser for charitable purposes. License processing fees shall apply according to the City’s Master Fee Schedule.

a) Upon receipt of an application for a charitable casino fundraiser license, the License Supervisor shall make an investigation of the applicant. The License Supervisor may send copies of the application to any office or department which is deemed essential to conduct a proper investigation of the applicant.

b) The License Supervisor and every officer and/or City department to which an application is referred may investigate the truth of any matters set forth in the application and may examine the premises to be used for the charitable casino fundraiser to ensure that it complies with all health, fire and zoning regulations.

c) Upon approval of any application for a charitable casino fundraiser license by the License Supervisor, the Director of Finance shall issue the charitable casino fundraiser license.

a) The License Supervisor may deny an application for a charitable casino fundraiser if it is found that the applicant or licensee or any agent or representative thereof has:

1. Knowingly made any false, misleading or fraudulent statement of a material fact in the application or in any record or report required to be filed under this Article; or

2. Violated any of the provisions of this Article.

b) The License Supervisor may suspend or revoke a charitable casino fundraiser license and cause the party to cease operation if it is determine that the licensee or any agent or representative thereof is not operating in full compliance with all provisions of this Article including but not limited to knowingly made any false, misleading, or fraudulent statement or omission of material fact in the application for the charitable casino fundraiser license or that the organization is not a nonprofit charitable organization, or that the applicant or any of its volunteers who will operate the charitable casino fundraiser have been previously convicted of violating any of the provisions of this section or any provisions of state law relating to unlawful gambling or of theft, or if the applicant has had a previous charitable casino fundraiser license revoked or denied within five years immediately preceding the date of the application, or that the applicant has conducted a charitable casino fundraiser in the City within the last twelve months or that such organization has not been located and operating within the limits of the City for a period of more than 180 days prior to the date of application.

c) If after investigation the License Supervisor determines that a charitable casino fundraiser license should be suspended or revoked, or an application for such license denied, the Director of Finance shall prepare a notice of suspension, revocation or denial of application, setting forth the reasons for such suspension, revocation or denial of application. Such notice shall be sent by certified mail to the applicant’s last address provided in the application or shall be personally delivered.

a) All decisions of the License Supervisor and/or Director of Finance may be appealed to the License Review Board within 15 days of the issuance of the decision by filing a written appeal with the City Clerk’s Office and paying the required appeal fee. Appeals filed beyond the appeal period shall not be accepted.

b) Hearings shall be held by the License Review Board as prescribed under Section 31.7.5 of the Torrance Municipal Code.

c) Any decision of the License Review Board may be appealed to the City Council pursuant to the provisions of Article 5 Chapter 1 Division 1 of the Torrance Municipal Code, commencing at Section 11.5.1.

a) Any Enforcement Officer shall have free access to any charitable casino fundraiser licensed under this section. The licensee shall have the charitable casino fundraiser license and a list of approved volunteers of the nonprofit charitable organization who will operate the charitable casino fundraiser available for inspection at all times during the event.

b) Each charitable casino fundraiser shall be held at a fixed location easily accessible for inspection by an Enforcement Officer.

c) No one under age 21 is allowed to participate in any charitable casino fundraiser.

d) A nonprofit charitable organization selling donated or purchased alcohol at a charitable casino fundraiser is required to obtain a Daily License from the California Department of Alcoholic Beverage Control. The alcohol may be sold by the glass or included in a door charge or other donation. However, it cannot be given away free. A winery or brewery may assist in pouring alcohol outside of their premises only if a nonprofit charitable organization sponsors the event and obtains a Daily License. Proof of Daily License must be submitted to the City upon approval of a charitable casino fundraiser license.

e) No charitable casino fundraiser shall be conducted between the hours of 2:00 a.m. and 6:00 a.m.

f) All advertisements relating to a charitable casino fundraiser must indicate that no purchase or donation is necessary to participate, and the event is open to the general public.

g) All charitable casino fundraisers shall be open to the public free of charge and no advance reservation shall be required for attendance.

h) All chips or scrip must be dispensed free of charge. There can be no correlation between the amount of chips or scrip dispensed and the amount of money donated by a prospective participant.

i) No cash or checks may be used or displayed at any gaming table or device.

j) No chips or scrip may be redeemed for cash but may be exchanged for drawing tickets. All prizes or merchandise must be awarded by means of a raffle or similar lottery, and no single prize shall exceed $2,500 in fair market value and the total fair market value of prizes awarded at any one charitable casino fundraiser shall not exceed $5,000, and no cash prize shall be awarded.

k) No organization shall operate a charitable casino fundraiser in violation of any federal, state, county, or local law.

l) All cashiers, volunteers, supervisors, or persons assigned to operate any gaming tables, or persons who participate in the promotion of any games during the operation of the charitable casino fundraiser, must wear on his or her outside clothing, in plain view, at chest height, an identification insignia or badge specifying the full name and title of such person.

Any person violating any of the provisions or failing to comply with any of the requirements of this Article may be issued an administrative citation by an Enforcement Officer as prescribed in Section 12.8.050 of the Torrance Municipal Code.