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HomeMy WebLinkAbout6.3 Ordinance Regulating Bingo Games CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: December 14, 1987 SUBJECT An ordinance of the City of Dublin Relating to Bingo Games EXHIBITS ATTACHED Draft Ordinance Section 330 (c) California Penal Code Section 326.5 California Penal Code Letter of November 30, 1987 from Elizabeth H. Silver RECOMMENDATIONS 1 ) Open public hearing �^ 2 ) Receive staff presentation 3 ) Hear public testimony 4 ) Close public hearing 5 ) Deliberate 5 ) Waive reading and adopt ordinance FINANCIAL STATEMENT: None DESCRIPTION The City Attorney' s Office has prepared a draft ordinance relating to "bingo" games, as' part of the comprehensive municipal code revision process. Any person desiring to operate a bingo game, within the corporate limits of the City of Dublin, would make application for license with the City Manager. Eligibility for license rests with those organizations exempted from payment of bank and corporation taxes by Section 23701a, 23701b, 23701d, 23701e, 23701f, 23701g, and 23701 ( 1) of the Revenue and Taxation Code. Also included in this eligibility are mobile home park associations and senior citizen organizations pursuant to section 326. 5 of the California Penal Code, providing that the proceeds of such bingo games are used only for charitable purposes. All such eligible organizations shall submit with the application a certificate of exemption under the provisions of section 23701d of the Revenue and Taxation Code, or a letter of good standing from the Exemption Division of the state Franchise Tax Board. Any realized profits derived from a bingo game must be kept in a special fund or account and shall not be comingled with any other fund or account. The applicant, as a condition of license issuance, consents to the examination and audit of its records, at reasonable times, by authorized city representatives. This draft ordinance also enumerates specific conditions with respect to the operation of the bingo games so that any one game is consistent with all others. -------------------------------------------------------------------------- COPIES TO: ITEM NO. Q ORDINANCE NO. -87 AN ORDINANCE OF THE CITY OF DUBLIN RELATING TO BINGO GAMES The City Council of the City of Dublin does ordain as follows: ARTICLE 1. DEFINITIONS Section 1 : DEFINITION OF "BINGO" . As used in this ordinance, "bingo" means a game of chance in which prizes are awarded on the basis of designated numbers of symbols on a card which conforms to numbers of symbols selected at random. Notwithstandng Section 330c of the Penal Code, the game of bingo shall include cards having numbers of 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 . All such preprinted cards shall bear the legend, "for sale or use only in a bingo game authorized under California law and pursuant to local ordinance . " Section 2 : BINGO PROHIBITION. No person shall operate a bingo game in the City of Dublin except in conformance with state law, this chapter, and any other applicable City laws. Section 3 : ORGANIZATIONS ELIGIBLE FOR LICENSE. Organizations which are exempted from the payment of bank and corporation taxes by Sections 23701a, 23701b, 23701d, 2307le, 23701f, 23701g, and 23701 (1) of the Revenue and Taxation Code, mobile home park associations and senior citizens organizations are eligible to apply for a license to conduct bingo games in the City of Dublin under the provisions of Section 326.5 of the Penal Code, and the provisions of this ordinance, provided, that the proceeds of such bingo games are used only for charitable purposes . Section 4: APPLICATION FOR LICENSE . For purposes of this ordinance, the license issuing authority shall be the City Manager or his designee . An eligible organization desiring to obtain a license to conduct bingo games shall file an application in writing therefor with the City Manager in a form to be provided by the City Manager . The license issued shall be for a term of one (1 ) year from the date of issuance and may be renewed thereafter on an annual basis by payment in advance of the annual license fee . Section 5 : APPLICANT MUST BE QUALIFIED. No license shall be issued to any organization unless the applicant is an eligible organization under the terms of Section 3 and such organization' s application conforms to the requirements, terms and conditions of this ordinance . Section 6: CONTENTS OF APPLICATION. An application for a license shall contain the following: (a) The name of the applicant organization and a statement that the applicant is an eligible organization under the provisions of Section 3 . (b) The names and addresses of at least two (2 ) officers, including the presiding officer of the organization and the name and signature of the member of the organization who will be primarily responsible for conducting bingo games . (c) A description of the location of the property owned or leased by the applicant on or in which bingo games will be conducted, together with the rated occupancy capacity of such property. (d) The proposed days of the week and hours of the day for the conduct of bingo games. ( e) A statement that the applicant agrees to conduct bingo games in accordance with the provisions of Section 326 . 5 of the Penal Code, this ordinance, and the same as they may be amended from time to time. ( f) The application shall be executed by the presiding officer of the organization under penalty of perjury. Section 7 : LICENSE FEE. The license fee shall be as fixed by the City Council by resolution and shall accompany the application of an eligible organization. The provisions of this chapter and the imposition of license fees are for regulatory purposes exclusively and not for the production of revenue. Section 8: CERTIFICATE OF EXEMPTION. Eligible organizations exempted from the payment of bank and corporation taxes by the provisions of Sections 23701a, 23701b, 23701d, 23701e, 23701f, 23701g and 23701 ( 1) of the Revenue and Taxation Code shall submit with the application a certificate of determination of exemption under the provisions of Section 23701d of the Revenue and Taxation Code, or a letter of good standing from the Exemption Division of the Franchise Tax Board of the State of California showing such exemption. Mobile home park associations and senior citizens organizations shall submit a copy of their corporate bylaws along with their application. Section 9: INVESTIGATION OF APPLICATION ORGANIZATION. Upon receipt of the complete application and fee the City Manager may refer the application to the Police Department for investigation and shall otherwise make, or cause to be made, such investigation as will enable the City Manager to determine whether the application qualifies for a license under the provisions of this chapter. For the sole and exclusive purpose of making any determination pursuant to Section 11 (c) , the City Manager or his designee is hereby authorized to have access to local summary criminal history information in accordance with section 13300 (b) (10 ) of the Penal Code. The City Manager may require such additional information from the applicant as he deems relevant to the inquiry. Section 10: CONTENTS AND ISSUANCE OF LICENSE . If the City Manager determines that the applicant organization is eligible under the terms of state law and this chapter, a license may be issued to the applicant. The license shall contain the following: (a) The name and nature of the organization to which the license is issued. (b) The address where bingo games are authorized to be conducted. (c) The occupancy capacity of the room in which bingo games are conducted. (d) The date of expiration of the license. (e) Such other reasonable conditions as may be necessary or desirable for the enforcement of the provisions of this chapter and Section 326. 5 of the California Penal Code . Section 11 : DENIAL OF LICENSE. The City Manager will not issue a license to the applicant organization if he finds: (a) That the organization is not eligible under the provisions of Section 326 .5 of the California Penal Code or this chapter, (b) That any statement made in the application is false, ( c) That any person whose name is required to be contained in the license application has been convicted of any felony, or misdemeanor involving moral turpitude ( including, but not limited to, conviction for violations of the provisions of Chapters 9 and 10 of Title 9, Part 1 of the California Penal Code) , or has been convicted of any misdemeanor involving a violation of the terms of this chapter or Section 326.5 of the California Penal Code . (d) That the bingo games will be a fraud on the public or that the bingo games will be conducted for private profit. (e) That the proposed method or methods of conducting bingo games will be contrary to the provisions of this chapter. ( f) That the conduct of bingo games on the premises will not be compatible with existing zoning and land uses in the neighborhood. (g) That the licensed premises do not meet the applicable requirements of Title 19, California Administrative Code (relating to State Fire Marshal Panic and Life Safety Regulations) . Section 12 : POSTING OF LICENSE . A copy of the license shall be conspicuously posted at the location of the bingo game. Section 13: SUSPENSION OR REVOCATION OF LICENSE . (a) Any license issued under the terms of this chapter may be suspended or revoked by the City Manager if he determines that the activity authorized by the license has been conducted or is being conducted in violation of this chapter or state law. The City Manager may also suspend or revoke the license upon any grounds which would justify a denial of an application for a license in the first instance . (b) No license shall be revoked or suspended until a hearing has been held by the City Manager or his designated representative. Written notice of the time and place of such hearing shall be served upon the subject organization at least five (5 ) days prior to the date set for such hearing. The notice required pursuant to this section shall contain a brief statement of the grounds for such revocation or suspension. Notice shall be served by personal delivery or by depositing the notice in the United States mail, postage prepaid, addressed to the organization at the address listed on its application form. (c) Notwithstanding the provisions of paragraph (a) and (b) of this section to the contrary, the City Manager or his designee may without prior notice summarily suspend any bingo license for a period not to exceed five (5 ) days if the City Manager or his designee finds and determines that the continued operation of a bingo game licensed under the provisions of this chapter constitutes a clear, present and immediate danger to the welfare and good order of the City of Dublin and that compliance with paragraphs (a) and (b) of this section could jeopardize the public health, safety, and welfare. Section 14: APPEAL FROM DENIAL OR REVOCATION OF LICENSE - JUDICIAL REVIEW. (a) A party aggrieved by the decision of the City Manager in denying, suspending or revoking any license or application therefore may, within ten (10) days after notice of the decision of the City Manager is served upon the licensee, or applicant, appeal to the City Council by filing a written notice of appeal with the City Clerk on forms provided by the City Clerk. During the pendency of an appeal of a suspension or revocation, the license shall not remain in effect. (b) If such an appeal is not taken within ten (10 ) days from the date the decision of the City Manager was served upon the applicant or licensee, such decision of the City Manager shall be final and binding. If a timely appeal is filed, the City Council shall hold a hearing on the appeal and render its decision within thirty (30 ) days of the date of appeal. Such decision of the Council may deny, suspend or revoke the permit on any of the grounds specified in this chapter for suspension, revocation or initial denial of the application for a license. Section 15 : REAPPLICATION PERIOD. When the City Manager has denied or revoked any license as provided in this chapter and the time for appeal to the City Council has lapsed, or, if after an appeal to the City Council the decision of the City Manager has been affirmed by the Council , no application for a bingo license at the same location shall be accepted from the applicant or the former license holder for a period of one (1 ) year after the date of the action by the City Manager. Section 16 : TRANSFERABILITY OF LICENSE . The privilege conferred by the license issued under the provisions of this chapter shall not be transferable and each license shall so provide on its face . Any attempt to transfer, assign, directly or indirectly, hypothecate or pledge as security any bingo license in violation of the provisions of this section shall be void and shall cause the automatic revocation of such bingo license. Section 17 : PROFITS TO BE KEPT IN SEPARATE FUND OR ACCOUNT. (a) With respect to organizations exempt from the payment of bank and corporation tax by section 23701 (d) 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 comingled with any other fund or account. Such profits shall be used only for charitable purposes . (b) With respect to other organizations authorized to conduct bingo games pursuant to this chapter, all proceeds derived from a bingo game shall be kept in a special fund or account and shall not be comingled with any other fund or account. As used in this section "proceeds" are the receipts of bingo games conducted by organizations not within subsection (a) above . As a condition of issuance of a bingo license the applicant consents to the examination and audit of its records at reasonable times by authorized representatives of the City. (c) All proceeds shall be used for charitable purposes except as follows: (i) Such proceeds may be used for prizes. (ii) A portion of such proceeds, not to exceed twenty percent (20%) of the proceeds after deduction for prizes, or one thousand dollars ($1 ,000 .00 ) per month, whichever is less, may be used for rental of property, overhead and administrative expenses, security equipment and security personnel. Section 18: CONDITIONS FOR OPERATION OF BINGO GAMES . Bingo games authorized by the provisions of this chapter shall be conducted in accordance with the following: (a) The total value of prizes awarded during the conduct of any bingo game shall not exceed two hundred fifty dollars ($250.00 ) in cash or kind, or both, for each separate game which is held. (b) No person shall be allowed to participate in a bingo game unless the person is physically present at the time and place at which the bingo game is being conducted. (c) No minor shall be allowed to participate in any bingo game . (d) All bingo games shall be open to the public, not just to members of the license-holding organization. (e) No alcoholic beverages shall be consumed, sold, given away, served or delivered to any person on the premises where bingo games are being conducted. ( f) The rules for the bingo game conducted by the licensed organization shall be posted in a conspicuous place at the location of the bingo games. (g) Attendance at any bingo game shall be limited to the occupancy capacity of the room in which the game is conducted as determined by the Fire Chief in accordance with applicable laws and regulations. The licensee may not reserve seats or space for any person or persons (except reasonable space may be designated for the physically handicapped) . (h) No individual, corporation, partnership, or other entity except the licensee shall hold a financial interest in the conduct of any bingo game. ( i) A bingo game shall be operated and staffed only by members of the license-holding organization. Such member shall not receive a profit, wage or salary from the bingo game . Only the licensed organization shall operate, or participate in the promotion or supervision of, any phase of the bingo game. ( j ) The licensee shall conduct, a bingo game .only -on property owned or .leased by it which is used for an office or for the performance of the purposes for which the organization is organized. This paragraph shall not be construed to require that the property owned or leased by the organization be used or leased exclusively by such organization. Section 19: CITY MAY ENJOIN VIOLATION. The City of Dublin, by and through its City Attorney, may bring an action in a court of competent jurisdiction to enjoin a violation of Section 326.5 of the Penal Code of the State of California or any of the provisions of this ordinance. Section 20: EFFECTIVE DATE AND POSTING OF ORDINANCE. This Ordinance shall take effect and be in force thirty 30) days from and after the date of its passage. The City Clerk of the City of Dublin shall cause this Ordinance- to be posted in at least three (3 ) public places in the City of Dublin in accordance with Section 36933 of the Government Code of the State of California. PASSED AND ADOPTED by the City Council of the City of Dublin on this day of 1987, by the following vote: AYES: NOES: ABSENT: Mayor ATTEST: . City Clerk §326.5. (lingo Cuntes. arc not members of the authorized organization at denied,one-half of the application fcc shall be re- (a) Neither this chapter nor Chaptcr 10.(cont- such bingo gamc by the organization conducting funded to the organization. An additional fee of mending with Section 330) applies to any bingo the gamc. . , , ,: ., I percent of the monthly gross receipts over five game which is conducted in a city,county,or city thousand dollars ($5,000) derived from bingo and county pursuant to an ordinance enacted (t) No individual, corporation, partnership, or games shall bccollected monthly by the city,coun- other legal entity except the organization autho- I t or city and count issuing the license. undcr Section l9 of Article IV of.the State Consti- Y. Y Y 8 rized to conduct a bingo game shall hold a finan- t; tution,provided that such ordinance allows games cial interest in the conduct of such bingo game. (m) No person shall be allowed to participa(c . to be conducted only by organizations exempted in in a bingo game, unless the person is physicall% from the payment of the bank and corporation tax (1) With respect to organizations exempt from present at the time and place in which the binge b Sections 23701a 23701b, 23701d 23701e, payment of the bank and corporation tax by Sec- . y game is being conducted. 23701f, 23701g, and 237011 of the Revenue and tion 23701d of the Revenue and Taxation Code, Taxation Code and by mobilchomc park associa- all profits derived from a bingo game shall be kept (n) The total value•of prizes awarded during tions and senior citizens organizations;and provid- in a special fund or account and shall not be corn- the conduct of any bingo games shall not exceed ed that the receipts of such games are used only mingled with any other fund or account. Such two hundred fifty dollars ($250) in cash or kind. for charitable purposes. profits shall be used only for charitable purposes. or both, for each separate game which is held. (b) It is a misdemeanor for any person to re- (k) With respect to other organizations autho- ' (o) As used in•this section "bingo" means e ceive or pay a profit, wage, or salary from any rized to conduct bingo gatttcs pursuant to this sec- I game of chance in which prizes are awarded on the bingo game authorized by Section 19 of Article IV lion,all proceeds derived from a bingo game shall I basis of designated numbers or symbols on a care of the State Constitution.Security personncl em- be kept in a special fund or account and shall not which conform to numbers or symbols selected a- of by the organization conducting the bingo be commingled with any other fund or accoiurt. random.Notwithstanding Section 330(,as used it game may be paid from the revenues of bingo Proceeds are the receipts of bingo games_conduct- I this section,the game of bingo shall include card! games as provided in subdivisions (j) and (k). ed by organizations not,within subdivision (j). I I having numbers or symbols which are concealed c A violation of subdivision b of this section Such proceeds shall be used only for charitable ; l and preprinted in a manner providing for distribu ( ) ( ) tion of prizes. The winning cards shall not b( shall be punishable by a fine not to exceed ten Purposes, except as follows: known prior to the game by any person participat thousand dollars(S 10,000),which fine shall be dc- (1) Such proceeds may be used for prizes. ing in the playing or operation of the bingo game posited in the general fund of the city, county, or (2) 'A portion•of such procecds,'nol to exceed All such preprinted cards shall bear the legend ,city and county which enacted the ordinance au- 20 percent of the proceeds before the deduction for "for sale or use only in a bingo game authorize( thorizing the bingo game.A violation of any provi• prizes, or 'one thousand dollars (51,000) 'per ; : under California law and pursuant to local ordi pion of this section, other than subdivision (b), is month, whichever is less, may be used for*rental i t nancc." It is the intention of the Legislature tha a misdemeanor. of'property, overhead, including the purchase of bingo as defined in this subdivision applies cxclu (d) The city, county;or cily'and county which bingo equipment,administrative expenses,securi• sively to this section and shall not be applied in th enacted the ordinance authorizing the bingo game ty equipment, and security personncl. i construction or enforcement of a6y other provisio: may bring an action to enjoin a violation of this (3) Such proceeds may be used to pay license I of law. Leg.II. 1975 ch:869, operative upon aF section. fees. i proval of Assembly Constitutional Amendmen (e) No minors shall be allowed to participate ' ' ,.I No. 3 at primary election June 8, 1976, 1977 ch in an bingo game. P P (4) A city,county,or city and county which en- I I 271,effective July 7,1977,1979 ch. 1006§1, 198, Y B g acts an ordinance permitting bingo games may eh. 997, 1981 ch. 804. - 10 An organization authorized to conduct specify in such ordinance that if the monthly gross bingo games pursuant to subdivision(a)shall con- receipts from bingo gamcs of all organization duct a bingo game only on property owned or within this subdivision exceed five thousand dot- leased by it, or property whose use is donated to tars ($5,000), a minimum percentage of the pro- I the organization, and which property is used by deeds shall be used only for charitable purposes I such organization for an office or for performance not relating to the conducting of bingo games and of the purposes for which the organization is orga- that the balance shall be used for prizes,rental of nized. Nothing in this subdivision shall be con- property, overhead, administrative expenses and ,trued to require that the property owned or leased payment of license fees.The amount of proceeds §330(. punchboard Is Slot Machine. by or whose use is donated to the organization be used for rental of property,overhead,and admin- A punchboard as hereinafter defined is hereby used or leased exclusively by or donated exclusive- istrative expenses.is subject to the limitations spec- declared to be a slot machine or device within th ly to such organization. ificd in paragraph (2) of this subdivision. I. meaning of Section 330b of this code and shall be (g) All bingo games shall be open to the public, (1) (1) A city,county, or city and county may I subject is section,provisions thereof. For the purposes .not just to the members of the authorized organi- 'impose a license fee on each organization which Punchboard is any card,board or cation. '•• it authorizes to conduct bingo games. The fee, Pulling, Which may be played or operated by t (h) A bingo game shall be operated and staffed whether for tale initial license or renewal,shall not , g. punching out or otherwise re- only by members of the authorized organization exceed fifty dollars($50)annually,except as pro- i moving any slip, tab, paper or other substance B therefrom to disclose an concealed number,name which organized it. Such members shall not re- vi(led in paragraph (2).•If an application for a Ii- , or symbol. Le y eetve a profit, wage, or salary from any bingo dense is denied, one-half of any license fee paid g.Il. 1953 ch. 379. tame. Only the organization authorized to con- shall be refunded to the organization. duct a bingo gamc shall operate such g:une,or par- (2) In lieu of the license fee permitted under ticipate in the promotion,supervision,orally other paragraph (1), a city,county, or city and county phase of such game.This subdivision does not pre- may impose a license fee of filly dullars(550)paid dude the employment of security personnel who upon application. If an application for a license is i . NIEYERS, NAVE, RIBACK WEST MICHAEL R.NAVE ATTORNEYS AT LAW PCNINSULA OFFICc STEVEN R.MEYERS LIE E. EST CIVIC CENTER COMPLEX 1220 HOWARD AVE..SUITE 250 ELIZABETH H H BURLINGAME.CA 94010' ELIZ .SILVER 835 EAST 14TH STREET 1x15)3x8.7130 MICHAEL S.RIBACK SAN LEANDRO.CALIFORNIA 94577 (415)577-3333 MARIN OFFICE OF COUNSEL 1202 GRANT AVE..SUITE E THOMAS F.BERTRAND NOVATO.CA 94947 (415)892.8878 REPLY TO: San Leandro MEMORANDUM TO: Richard Ambrose, City Manager DATE: November 30, 1987 John Severini, Chief of Police FROM: Elizabeth H. Silver RE: Bingo Ordinance At the Council meeting on November 23, 1987, several questions were raised regarding the proposed Bingo Ordinance. The first question related to the phrase "for sale" in Section 1 of the proposed ordinance which defines "bingo" . The definition of "bingo in Section 1 is taken from the definition of "bingo" in Penal Code § 326 . 5 (o) . The phrase in question refers to bingo cards which are offered for sale to persons conducting bingo games and does not refer to sales of bingo cards to individual players . The second question related to the phrases "profits" and "proceeds" in Section 17. Section 17 is taken from Penal Code § 326 . 5 ( j ) and (k) . The first subsection of Section 17 relates to organizations exempt from taxes under Rev. & Tax Code § 23701d, which includes religious, charitable, scientific, literary and educational organizations and amateur sports or humanitarian corporations, no part of the net earnings of which inure to the benefit of any private shareholder or individual . New subsection (b) of Section 17 applied to all other organizations which conduct bingo games . I have revised Section 17 to include a definition of "proceeds, " as contained in Penal Code § 326. 5 (k) . Since Penal Code § 326. 5 does not contain a definition of "Profits, " the word "profits" would be construed in accordance with the ordinary meaning, which would mean the excess of returns over expenditures (Webster' s New Collegiate Dictionary) . Richard Ambrose John Severini Re: Bingo Ordinance November 30, 1987 Page 2 Enclosed is a copy of the proposed ordinance with the above revisions to Section 17. Elizabeth H. Silver EHS:dp Enclosure