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Ord 706ORDINANCE NO. 706 AN ORDINANCE OF THE CITY OF POWAY, CALIFORNIA, AMENDING CHAPTER 5.72 BY AMENDING SECTIONS 5.72.010, 5.72.040, 5.72.060, 5.72.070, 5.72.080, 5.72.090, 5.72.110; AND ADDING SECTION 5.72.105, ALL RELATING TO BINGO WHEREAS, remote caller bingo is a type of bingo game where the random draw of numbers of symbols is conducted and announced in one location, and players can participate from another location using audio or video technology; and WHEREAS, cities in California are authorized by state law to pass an ordinance authorizing remote caller bingo, if the games are "conducted according to the conditions set forth in state law, including limits on the types of organizations that can conduct remote caller bingo, and a requirement that proceeds from remote caller bingo be used for non - profit purposes; and WHEREAS, the City has received an inquiry from a nonprofit organization that is interested in conducting remote caller bingo as a charitable fundraising activity; and WHEREAS, the use of remote caller bingo for charitable fundraising, according to the conditions set forth in state law, would provide a benefit to the community. WHEREAS, there is a need to amend Chapter 5.72 of the Poway Municipal Code in order to authorize remote caller bingo, and also to update the general provisions of Chapter 5.72 so that it conforms with current state law. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF POWAY DOES ORDAIN AS FOLLOWS: Section 1 : Section 5.72.010(A) is hereby modified to read as follows "Authorized organization" is an organization exempted from the payment of the bank and corporation tax by Sections 23701a, 23701b, 23701d, 23701e, 23701f, 23701g, 23701 k, 23701w or 237011 of the Revenue and Taxation Code. Authorized organization also includes a senior citizens organization, a mobile home park association, or a charitable organization affiliated with a school district. Section 2 : Section 5.72.010(B) is hereby modified to read as follows: "Bingo" is a game of chance in which prizes are awarded on the basis of designated numbers or symbols 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 also includes 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 ". Ordinance No. 706 Page 2 Section 3 : Subsection (D) is hereby added to Section 5.72.010, to read as follows: "Remote caller bingo" means a game of bingo, as defined in subdivision (o) of Penal Code section 326.5, in which the numbers or symbols on randomly drawn plastic balls are announced by a natural person present at the site at which the live game is conducted, and the organization conducting the bingo game uses audio and video technology to link any of its in -state facilities for the purpose of transmitting the remote calling of a live bingo game from a single location to multiple locations owned, leased or rented by that organization. Section 4 : Section 5.72.040, entitled "Specific games prohibited ", is hereby modified to read as follows: This chapter is intended to prohibit the playing of "bingo," "tango," "bridgo," "skill ball' or any game or combination of games similar in operation to such games, except as specifically authorized by this chapter, and to apply to free as well as to paid playing of such games. Section 5 : Section 5.72.060, entitled "License ", is hereby modified to read as follows: A license shall only be issued to a person who is a member of an Authorized organization. The procedure to follow, except as otherwise provided in this chapter, in obtaining a license is that set forth in the Uniform Licensing Procedure set out in Chapter 5.04 PMC. Section 6 : Section 5.72.070(C) is hereby modified to read as follows: Proof that the organization is an Authorized organization as defined in this chapter. Section 7 : Section 5.72.080(6) is hereby modified to read as follows: The fee for a bingo license shall be established by City Council resolution from time to time. One half of the fee shall be refunded if the application for a license is denied. An additional fee, as established by City Council resolution from time to time, will be applied to monthly gross receipts over $5,000 derived from bingo games and shall be collected monthly by the Issuing Officer. Section 8 : Section 5.72.090, entitled "Limitations ", is hereby modified to read as follows: An Authorized organization shall conduct a bingo game only on property that has been owned or leased by it or property whose use is donated to the organization, and which property is used by such organization for an office or for the performance of the purposes for which the organization is organized. Nothing in this section shall be construed to require that the property owned or leased by the organization be used or leased exclusively by, or donated exclusively to, such organization. Ordinance No. 706 Page 3 A. No minors shall be allowed to participate in any bingo game. B. All bingo games shall be open to the public, not just to the members of the Authorized organization. C. A bingo game shall be operated and staffed only by members of the Authorized organization. Such members shall be approved by the Chief of Police. If, after the license has been issued, the authorized organization submits additional names to the Issuing Officer for approval, the application for approval shall be accompanied by a fee for each additional name, as shall be established by City Council resolution from time to time, and of which no part shall be refundable, and which shall be used to defray the cost of investigation. Such members shall not receive a profit, wage or salary from 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. D. 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. E. 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 profits shall be used only for charitable purposes. With respect to other organizations authorized to conduct bingo games, 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. Such proceeds shall be used only for charitable purposes, except as follows: 1. Such proceeds may be used for prizes. 2. A portion of such proceeds, as established by City Council resolution from time to time, may be used for the rental of property, overhead, including the purchase of bingo equipment and administrative costs, security equipment and security personnel. 3. Such proceeds may be used to pay license fees. F. Within 30 days after the bingo game is held the applicant will file with the Issuing Officer a full and complete financial statement of all moneys collected, disbursed and the amount remaining for charitable purposes. G. 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. This provision shall not apply to a person participating in a game of Remote caller bingo meeting the requirements of Section 5.72.105. Ordinance No. 706 Page 4 H. The total value of the prizes awarded during the conduct of any bingo games shall not exceed $500 in cash or kind, or both, for each separate game which is held. This provision shall not apply to a person participating in a game of Remote caller bingo meeting the requirements of Section 5.72.105. I. No bingo game shall be conducted between the hours of midnight and 8:00 a. m. J. The licensee may conduct bingo on not more than three days during any seven -day period. Once during each year the Issuing Officer may permit a licensee to conduct bingo games for more than three days during any seven -day period; provided, that such permission shall be limited to bingo games which will be conducted in conjunction with an established annual event regularly held by the licensee. This provision shall not apply to games of Remote caller bingo meeting the requirements of Section 5.72.105. Section 9 : Section 5.72.105 entitled "Remote Caller Bingo" is hereby added to read as follows: A. Legislative Authorization. This Section 5.72.105 is adopted pursuant to Section 19 of Article IV of the California Constitution, as implemented by Sections 326.3 and 326.4 of the Penal Code. B. Remote Caller Bingo Authorized. Remote Caller Bingo may be lawfully played in the City of Poway pursuant to the provisions of Sections 326.3 and 326.4 of the Penal Code, and this chapter, and not otherwise. C. Qualified Applicants: Applicants for Licensure. 1. The following organizations are qualified to apply to the License Official for a license to operate a bingo game if the receipts of those games are used only for charitable purposes: a. An organization exempt from the payment of the Bank and Corporation Tax by Section 23701, 23701a, 23701 b, 23701d, 23701e, 23701f, 23701g, 23701k, or 23701w of the Revenue and Taxation Code. b. A mobile home park association of a mobile home park that is situated in the City of Poway. c. Senior citizen organizations. d. Charitable organizations affiliated with a school district. 2. The application shall be in a form prescribed by the License Official and shall be accompanied by a nonrefundable filing fee in an amount determined by resolution of the City Council from time to time. The following documentation shall be attached to the application, as applicable: Ordinance No. 706 Page 5 a. A certificate issued by the Franchise Tax Board certifying that the applicant is exempt from the payment of the Bank and Corporation Tax pursuant to Section 23701d of the Revenue and Taxation Code. b. Other evidence as the License Official determines is necessary to verify that the applicant is a duly organized mobile home park association of a mobile home park situated in the City of Poway. D. License Application: Verification. The license shall not be issued until the License Official has verified the facts stated in the application and determined that the applicant is qualified. E. Annual Licenses. A license issued pursuant to this chapter shall be valid until the end of the calendar year, at which time the license shall expire. A new license shall only be obtained upon filing a new application and payment of the license fee. The fact that a license has been issued to an applicant creates no vested right on the part of the licensee to continue to offer bingo for play. The City Council expressly reserves the right to amend or repeal this chapter at any time by resolution. If this chapter is repealed, all licenses issued pursuant to this chapter shall cease to be effective for any purpose on the effective date of the repealing resolution. F. Conditions of Licensure. 1. Any license issued pursuant to this chapter shall be subject to the conditions contained in Sections 326.3 and 326.4 of the Penal Code, and each licensee shall comply with the requirements of those provisions. 2. Each license issued pursuant to this chapter shall be subject to the following additional conditions: a. Bingo games shall not be conducted by any licensee on more than two days during any week, except that a licensee may hold one additional game, at its election, in each calendar quarter. b. The licensed organization is responsible for ensuring that the conditions of this chapter and Sections 326.3 and 326.4 of the Penal Code are complied with by the organization and its officers and members. A violation of any one or more of those conditions or provisions shall constitute cause for the revocation of the organization's license. At the request of the organization, the City Council shall hold a public hearing before revoking any license issued pursuant to this chapter, following the procedure set forth in the Uniform Licensing Procedure, set out in PMC Chapter 5.04. Section 10 : Section 5.72.110, formerly entitled "Violation- Penalty ", is hereby modified to read as follows: Ordinance No. 706 Page 6 5.72.110 Violation It is unlawful for any person to receive a profit, wage or salary from any bingo game authorized by this chapter. This section does not preclude the employment of security personnel who are not members of the Authorized organization at a bingo game by the organization conducting the game. Section 11 : This Ordinance shall be codified. EFFECTIVE DATE: This Ordinance shall take effect and be in force thirty (30) days after the date of its passage; and before the expiration of fifteen (15) days after its passage, it shall be published once with the names of members voting for and against the same in the Poway News Chieftain, a newspaper of general circulation published in the City of Poway. Introduced and first read at a Regular Meeting of the City Council of the City of Poway held the 18 day of May 2010, and thereafter PASSED AND ADOPTED at a regular meeting of said City Council held the 1 st day of June 2010. Don Higginson, Mayor ATTEST: da . Troyan, MMC, City lerk STATE OF CALIFORNIA ) ) ss. COUNTY OF SAN DIEGO) I, Linda A. Troyan, City Clerk of the City of Poway, do hereby certify that the foregoing Ordinance No. 706, was duly adopted by the City Council at a meeting of said City Council held on the 1st day of June 2010, and that it was so adopted by the following vote: AYES: BOYACK, CUNNINGHAM, KRUSE, HIGGINSON NOES: NONE ABSENT: REXFORD DISQUALIFIED: NONE L i Li a A. Troyan, MMC City Clerk City of Poway