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HomeMy WebLinkAboutItem 4.09 MuniCode Bingo CITY CLERK File # D[k]liJ[Q]-[1]~ AGENDA STATEMENT CITY COUNCIL MEETING DATE: Apri I 1, 2008 SUBJECT: Adoption of Ordinance Amending Dublin Municipal Code Chapter 5.44 (Bingo) Report Prepared by Elizabeth H Silver, Assistant City Attorney and Stephen Muzio, Associate Attorney ATTACHMENTS: 1. Ordinance Amending Chapter 5.44 of the Dublin Municipal Code Relating to Bingo. RECOMMENDATION: / 1. ~ Waive reading and ADOPT the Ordinance Amending Chapter 5.44 of the Dublin Municipal Code relating to Bingo (Attachment 1). FINANCIAL STATEMENT: None. DESCRIPTION: At its March 22,2006 Goals and Objectives meeting, the City Council reviewed and approved with high priority the comprehensive update to certain chapters of the Dublin Municipal Code (DMC). One chapter proposed for review is DMC Chapter 5.44, which permits certain non-profit organizations to conduct bingo games in the City upon application for, and receipt of a license. State law permits cities to permit only certain kinds of organizations to conduct bingo games. Examples of such organizations include, but are not limited to, mobilehome park associations, senior citizens organizations, fraternal organizations, religious and charitable groups, chambers of commerce and trusts operated exclusively for educational purposes. Attachment 3 contains a more complete description of the kinds of organizations that may obtain a bingo permit. The Chapter provides grounds on which the City Manager may deny an application, provisions for the suspension and revocation of an issued license, and procedures for the appeal of any denial, suspension or revocation. The Chapter also imposes accounting requirements as well as conditions for operation of bingo games. These conditions include that no alcohol may be served at bingo games, minors may not ------------------------------------------------------------------------------------------------------------- COpy TO: Page 1 of2 lTEMNO.j. q StfRpt Bingo; 114.1015 Ii take part, and the total value of prices awarded shall not exceed two hundred and fifty dollars for each separate game conducted. Staff has reviewed the ordinance and recommends that: 1) references to the City Manager as administrator of the provisions of this Chapter be revised to refer to the Chief of Police, 2) that the City Manager, rather than the City Council, will hear appeals of permit decisions, 3) references to Revenue and Taxation Code Section 23701(1) be corrected to read 2370ll, 4) the reference in section 5.44.070 to section 23701d of the Revenue and Taxation Code be corrected to refer to 23701(c), 5)section 5.44.170.J be amended to allow bingo games to be conducted on premises donated to eligible applicants in addition to premises owned or leased by such applicants, which amendment is consistent with state law, 6) section 5.44.130 be amended to refer to and be compatible with section 1.04.050 of the Dublin Municipal Code dealing with appeals, 7) the words "city" and "state" be capitalized where necessary to ensure consistency with the rest of the Municipal Code and 7) two minor grammatical errors be corrected. Dublin Police Services as well as the Dublin Parks and Community Services Department have reviewed Chapter 5.44. Their records indicate that the last bingo permit issued was in 1996, to the Dublin Irish Band Booster Club. In the last 18 months, the Senior Center has made inquiries about obtaining a permit. In the event that they do apply, the provisions of this Chapter would allow the Senior Center to obtain a permit. Dublin Police Services and the Dublin Parks and Community Services Department concur with the recommended changes. On March 18,2008, the City Council held a public hearing regarding the proposed ordinance. Following the public hearing the City Council waived the reading and introduced the ordinance. RECOMMENDATION Staff recommends that the City Council: 1) waive the reading and ADOPT the Ordinance Amending Chapter 5.44 of the Dublin Municipal Code relating to Bingo (Attachment 1). Page 2 of2 /j!.~ J ORDINANCE NO. AN ORDINANCE OF THE CITY OF DUBLIN AMENDING CHAPTER 5.44 OF THE DUBLIN MUNICIPAL CODE RELATING TO BINGO The City Council of the City of Dublin does hereby ordain as follows: Section 1. Chapter 5.44 ofthe Dublin Municipal Code is revised as follows, with deletions indicated in strikethrough and additions indicated in underline: 5.44.010 Definitions. As used in this chapter, "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. Notwithstanding Section 330c of the Penal Code, the game of bingo shall 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. 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." 5.44.020 Limitations. No person shall operate a bingo game in the City except in conformance with state law, this chapter, and any other applicable City laws. 5.44.030 Organizations-Eligibility for license. Organizations which are exempted from the payment of bank and corporation taxes by Sections 23701a, 23701b, 23701d, 23701e, 2370lf, 23701g, and 237011 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 under the provisions of Section 326.5 of the Penal Code, and the provisions of this chapter; provided, that the proceeds of such bingo games are used only for charitable purposes. 5.44.040 License-Application. A. For purposes of this chapter, the license issuing authority shall be the Chief of Police. An eligible organization desiring to obtain a license to conduct bingo games shall file an application in writing therefor with the Chief of Police in a form to be provided by the Chief of Police. 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. B. No license shall be issued to any organization unless the applicant is an eligible organization under the terms of Section 5.44.030 and such organization's application conforms to the requirements, terms and conditions of this chapter. 5.44.050 License-Application-Contents. 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 5.44.030; ~-I-O<g 4.9 ATTACHMENT 1 c;' 6() (, 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 ofthe 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 chapter, 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. 5.44.060 License-Fee. The license fee shall be as fixed by the City Council by resolution and shall a~company 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. 5.44.070 Certificate of exemption. Eligible organizations exempted from the payment of bank and corporation taxes by the provisions of Sections 23701a, 23701b, 23701d, 23701e, 2370lf, 23701g and 2370ll of the Revenue and Taxation Code shall submit with the application a certificate of determination of exemption under the provisions of Section 23701(c) 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. 5.44.080 Investigation of application. Upon receipt of the complete application and fee the Chief of Police shall make such investigation as will enable him or her to determine whether the application qualifies for a license under the provisions of this chapter. 5.44.090 License-Contents and issuance. If the Chief of Police 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 ofthe California Penal Code. 5.44.100 License-Denial. The Chief of Police will not issue a license to the applicant organization ifhe or she 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, 30) & conviction for violations of the provisions of Chapters 9 and 10 of Title 9, Part I 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). 5.44.110 License-Posting. A copy of the license shall be conspicuously posted at the location of the bingo game. 5.44.120 License-Suspension or revocation. A. Any license issued under the terms of this chapter may be suspended or revoked by the Chief of Police if he or she determines that the activity authorized by the license has been conducted or is being conducted in violation of this chapter or state law. The Chief of Police 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 Chief of Police or his or her 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 subsections A and B of this section to the contrary, the Chief of Police may without prior notice summarily suspend any bingo license for a period not to exceed five (5) days if the Chief of Police 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 and that compliance with subsections A and B of this section could jeopardize the public health, safety, and welfare. 5.44.130 License-Denial or revocation-Appeal. A. A party aggrieved by the decision of the Chief of Police in denying, suspending or revoking any license or application therefor may appeal the decision of the Chief of Police concerning the denial or revocation of a permit to the City Manager pursuant to the provisions of Section 1.04.050. 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 (14) days from the date the decision of the Chief of Police was served upon the applicant or licensee, such decision of the Chief of Police shall be final and binding. If a timely appeal is filed, the City Manager shall hold a hearing on the appeal and render his or her decision. Such decision of the City Manager 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. 5.44.140 License-Denial or revocation-Reapplication period. r- O?j C, When the Chief of Police has denied or revoked any license as provided in this chapter and the time for appeal to the City Manager has lapsed, or, if after an appeal to the City Manager the decision ofthe Chief of Police has been affirmed by the City Manager, 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 Chief of Police. 5.44.150 License-N ontransferrable. 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 ofthe provisions of this section shall be void and shall cause the automatic revocation of such bingo license. 5.44.160 Accounting of profits. 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 commingled 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 commingled with any other fund or account. As used in this section, "proceeds" means the receipts of bingo games conducted by organizations not within subsection A of this section. 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: 1. Such proceeds as may be used for prizes; 2. A portion of such proceeds, not to exceed twenty percent (20%) of the proceeds after deduction for prizes, or one thousand dollars ($1,000) per month, whichever is less, may be used for rental of property, overhead and administrative expenses, security equipment and security personnel. 5.44.170 Conditions for operation. 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) 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). s cr~ fa H. No individual, corporation, partnership, or other entity except the licensee shall hold a financial interest in the conduct of any bingo game. 1. 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. 1. The licensee shall conduct a bingo game only on property owned or leased by it, or property whose use is donated to it, which is used for an office or for the performance of the purposes for which the organization is organized. This subsection shall not be construed to require that the property owned or leased by the organization be used or leased exclusively by such organization. 5.44.180 City may enjoin violation. The City, 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 chapter. Section 2. Severability. The provisions of this Ordinance are severable and if any provision, clause, sentence, word or part thereof is held illegal, invalid, unconstitutional, or inapplicable to any person or circumstances, such illegality, invalidity, unconstitutionality, or inapplicability shall not affect or impair any of the remaining provisions, clauses, sentences, sections, words or parts thereof of the ordinance or their applicability to other persons or circumstances. Section 3. Effective Date. This Ordinance shall take effect and be enforced thirty (30) days following its adoption. Section 4. Posting. 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, APPROVED AND ADOPTED this _ day of ,2008. AYES: NOES: ABSENT: ABSTAIN: Janet Lockhart, Mayor 6 ~)! b ATTEST: Carolyn Parkinson, Interim City Clerk