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O 625 ORDINANCE NO. 625 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ADDING CHAPTER 5.90 TO TITLE 5 OF THE ARROYO GRANDE MUNICIPAL CODE REGARDING BINGO AND REMOTE CALLER BINGO GAMES WHEREAS, nonprofit organizations provide important and essential educational, philanthropic, and social services to the community; and WHEREAS, there is a need to provide methods of fundraising for nonprofit organizations to enable them to provide these essential services; and WHEREAS, historically many nonprofit organizations have used charitable bingo as one of their key fundraising strategies to promote the mission of the charity; and WHEREAS, Under Article IV, Section 19 of the California Constitution and Penal Code section 326.5, cities may enact ordinances authorizing bingo games provided they are conducted by specified organizations in a manner consistent with Penal Code section 326.5; and WHEREAS, in addition, recently the California Legislature has enacted Penal Code Section 326.3, authorizing local agencies to allow remote caller bingo games within the agencies jurisdiction so long as the agency adopts an ordinance under Article IV, Section 19 of the Califomia Constitution permitting remote caller bingo to be played and conducted only in accordance with applicable provisions of the Penal Code; and WHEREAS, The City Council has determined that it is appropriate to adopt an ordinance in the City of Arroyo Grande to authorize bingo games and remote caller bingo games pursuant to the authority in the California Constitution and the Penal Code. NOW, THEREFORE BE IT ORDAINED by the City Council of the City of Arroyo Grande as follows: SECTION 1. Chapter 5.90 is hereby added to Title 5 of the Arroyo Grande Municipal Code as set forth in Exhibit A, which Exhibit is attached hereto and incorporated herein by this reference. SECTION 2. If any section, subsection, subdivision, paragraph, sentence, or clause of this Ordinance or any part thereof is for any reason held to be unlawful, such decision shall not affect the validity of the remaining portion of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, or clause thereof, irrespective of the fact that any one or more section, subsection, subdivision, paragraph, sentence, or clause be declared unconstitutional. ORDINANCE NO. 625 PAGE 2 SECTION 3. A summary of this Ordinance shall be published in a newspaper published and circulated in the City of Arroyo Grande at least five (5) days prior to the City Council meeting at which the proposed Ordinance is to be adopted. A certified copy of the full text of the proposed Ordinance shall be posted in the office of the City Clerk. Within fifteen (15) days after adoption of the Ordinance, the summary with the names of those City Council Members voting for and against the Ordinance shall be published again, and the City Clerk shall post a certified copy of the full text of such adopted Ordinance. SECTION 4. This Ordinance shall take effect thirty (30) days after its adoption. On motion by Council Member Fellows, seconded by Council Member Ray, and by the following roll call vote to wit: AYES: Council Member Fellows, Ray, Costello, Guthrie, and Mayor Ferrara NOES: None ABSENT: None the foregoing Ordinance was adopted this 13 day of July 2010. ORDINANCE NO. (ARS PAGE 3 TONY FERR A AYOR ATTEST: (�,/ /�� • / M ��� "r AI-- KELLY W' TM • ° E, CITY CLERK APPROVED AS TO CONTENT: S E N ADAMS, CITY MANAGER APPROVED AS TO FORM: TIM 1 THY J. C CITY ATTORNEY ORDINANCE NO. 625 PAGE 4 EXHIBIT A CHAPTER 5.90 BINGO GAMES Sections: 5.90.010 Bingo defined. 5.90.020 License- Eligible organizations. 5.90.030 Application- Contents. 5.90.040 License- Issuance and contents. 5.90.050 License - Denial. 5.90.060 License - Revocation. 5.90.070 Appeals. 5.90.080 Reapplication following license revocation. 5.90.090 Maximum amount of prize. 5.90.100 Profits to be kept in separate fund or account. 5.90.110 Financial interest in licensee only. 5.90.120 Exclusive operation by licensee. 5.90.130 Open to public. 5.90.140 Attendance limited to occupancy capacity. 5.90.150 Game only on licensee's property. 5.90.160 Minors prohibited. 5.90.170 Intoxicated persons prohibited. 5.90.180 Hours of operation. 5.90.190 Participant must be present. 5.90.200 Receipt of profit by unauthorized person unlawful. 5.90.210 City may enjoin violation. 5.90.220 Remote Caller Bingo games 5.90.230 Qualified organizations /Remote Caller Bingo licenses 5.90.240 Remote Caller Bingo license application and fee 5.90.250 Remote Caller Bingo license application verification 5.90.260 Annual Remote Caller Bingo licenses 5.90.270 Remote Caller Bingo license conditions 5.90.280 Penalty 5.90.010 Bingo defined. As used in this chapter, "bingo" means 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 card in the player's possession that conforms to numbers or symbols selected at random and announced by a live caller. The game of bingo also includes cards having numbers or symbols that are concealed and preprinted in a manner providing for distribution of prizes. The winning cards may not be known prior to the game by any person participating in the playing or operation of the bingo game. Only a covered or marked card possessed by a player and presented to an attendant may be used to claim a prize. ORDINANCE NO. 625 PAGE 5 5.90.020 License - Eligible organizations. The following organizations are eligible to apply to the City of Arroyo Grande for a license to conduct bingo games in the City under provisions of this chapter and Penal Code section 326.5, provided that the proceeds or profits of such games, as applicable, are used only for charitable purposes: A. Organizations exempted from the payment of the bank and corporation tax by Sections 23701a, 23701b, 23701d, 23701e, 23701f, 23701g, 23701k, 23701w, or 237011 of the Revenue and Taxation Code; B. Mobile home park associations; C. Senior citizen organizations; and D. Charitable organizations affiliated with a school district. 5.90.030 Application - Contents. A. Eligible organizations desiring to obtain a bingo license must file an application in writing with the Administrative Services office. The application must, at minimum, contain the following: 1. The name of the applicant organization and a statement that applicant is an eligible organization under Section 5.90.020; 2. The name and signature of at least two officers of the applicant organization; 3. The particular property within the City including the street number, owned or leased by the applicant, used by such applicant for an office or for performance of the purposes for which the applicant is organized, on which property all bingo games will be conducted, together with the occupancy capacity of such place; 4. Proposed days of week and hours of day for the conduct of bingo games; 5. A description of the type of bingo games to be conducted; 6. A statement that the applicant agrees to conduct bingo games in strict accordance with the provisions of Penal Code section 326.5 and this chapter as it may be amended from time to time, and agrees that the license to conduct bingo games may be revoked by the City upon violation of any of such provisions. B. The application must be signed by the applicant under penalty of perjury. C. The following items must be submitted with the application: 1. The license fee; such fee shall be established by City Council resolution and shall not exceed $50, as permitted by Penal Code Section 326.5. 2. A diagram of the room to be used to conduct bingo showing the layout of tables and all exits. 3. If applicable, a certificate or determination of exemption or other proof of the organization's exemption under the Revenue and Taxation Code sections referred to in Section 5.90.020.A. 5.90.040 License - Issuance and contents. Upon being satisfied that the applicant is eligible to conduct bingo games in the City, the City Manager or his or her designee may issue a license to the applicant that, at minimum, contains the following information: A. The name and nature of the organization issued the license. ORDINANCE NO. 625 PAGE 6 B. The address where bingo games are authorized to be conducted. C. The occupancy capacity of the room in which bingo games are to be conducted. D. The date of the expiration of such license, which will be: 1. For eligible organizations under Subsections A and D of Section 5.90.020, one year from the date of issuance. 2. For eligible organizations under Subsections B and C of Section 5.90.020, three years from the date of issuance. E. Such other information as may be necessary or desirable for the enforcement of the provisions of this chapter. 5.90.050 License - Denial. Pursuant to Penal Code Section 326.5, if an application for a license is denied, one -half of any license fee paid will be refunded to the organization. 5.90.060 License - Revocation A. If a licensee is conducting a bingo game in violation of any of the provisions of this chapter or Penal Code section 326.5, the license may be revoked. The licensee shall be provided a statement of the grounds for the revocation and informed that it shall have fourteen calendar days from the date of service of such notice to request a hearing before the City Manager or his or her designee regarding such revocation. Failure to request in writing such a hearing within the fourteen days shall result in revocation of the license. Upon revocation, the licensee shall be notified of such fact by depositing in the United States mail a notice directed to the licensee at the address given in the application. In the event a hearing is requested, the licensee shall be given at least ten calendar days written notice of the date of the hearing. At the hearing, the licensee or its authorized representative shall have the right to present evidence, a written or oral argument, or both. All such testimony, whether written or oral, shall be given under penalty of perjury. At the conclusion of the hearing, the City Manager or his or her designee shall make findings supporting his or her decision as to whether the license should be revoked. B. Any organization whose license is revoked under this section may not conduct any bingo game in the City until such time as the determination to revoke the license is overruled on appeal. 5.90.070 Appeals. Any person aggrieved by a decision to deny, revoke or refuse to renew a bingo license may appeal such decision to the City Council in the manner provided by Section 1.12.010 of this Code. 5.90.080 Reapplication following license revocation. Any organization whose license is revoked may not reapply for a license to conduct bingo games in the City for a period of one year from the date of such revocation; provided, however, if the ground for revocation is cancellation of the exemption granted ORDINANCE NO. 625 PAGE 7 under the appropriate Revenue and Taxation Code section set forth in Section 5.90.020.A, such organization may again apply for a license upon proof of reinstatement of the exemption. 5.90.090 Maximum amount of prize. The total value of prizes awarded during the conduct of any bingo games may not exceed $500 in cash or kind, or both, for each separate game which is held. 5.90.100 Profits to. be kept in separate fund or account. All profits or proceeds derived from a bingo game must be kept and used in the manner prescribed by Penal Code section 326.5. The licensee must keep full and accurate records of the income and expenses received and disbursed in connection with its operation, conduct, promotion, supervision and any other phase of bingo games that are authorized by this chapter. The City, by and through its authorized officers or agents, has the right to examine and audit such record at any reasonable time and the licensee must fully cooperate with the City in making such record available. 5.90.110 Financial interest in licensee only. No individual, corporation, partnership or other legal entity except the licensee may hold a financial interest in the conduct of any bingo game. 5.90.120 Exclusive operation by licensee. A bingo game must be operated and staffed only by members of the licensee organization. Such members may not receive a profit, wage or salary from any bingo game. The licensee may, however, employ security personnel to provide security services at bingo games and pay for such personnel from game proceeds. Only the licensee may operate a bingo game and participate in the promotion, supervision or any other phase of such game. 5.90.130 Open to public. All bingo games must be open to the public, not just to the members of the licensee organization. 5.90.140 Attendance limited to occupancy capacity. Notwithstanding that bingo games are open to the public, attendance at any bingo game is limited to the occupancy capacity of the room in which such game is conducted as determined by the Fire Department and Building Official of the City. A licensee may not reserve seats or space for any person. 5.90.150 Game only on licensee's property In accordance with Penal Code Section 326.5, a licensee may conduct a bingo game only on property 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 ORDINANCE NO. 625 PAGE 8 performance of the purposes for which the organization is organized. The license issued under this chapter authorizes the licensee to conduct bingo games only on such property, the address of which is stated in the application. The license must be prominently displayed on the property where the bingo games are conducted and must be presented immediately upon demand by a law enforcement officer or other authorized agent of the City. In the event the described property ceases to be used as an office and as a place for performance of the purposes for which the licensee is organized, the license will automatically terminate and have no further force or effect. A new license may be obtained by an eligible organization, upon application under this chapter, when it again owns or leases property used by it for an office or for performance of the purposes for which the organization is organized. Nothing in this section will be construed to require that the property owned or leased by the organization be used or leased exclusively by such organization. 5.90.160 Minors prohibited. No person under the age of 18 years may be allowed to participate in any bingo game. 5.90.170 Intoxicated persons prohibited No person who is obviously intoxicated may be allowed to participate in a bingo game. 5.90.180 Hours of operation. No licensee may conduct any bingo games more than six hours out of any twenty -four- hour period. In addition, no bingo game may be conducted before ten a.m. nor after two a.m. of any day. 5.90.190 Participant must be present. No person may 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. 5.90.200 Receipt of profit by unauthorized person unlawful. Except for security personnel as provided in Section 5.90.120, it is a misdemeanor under Penal Code section 326.5(b) for any person to receive a profit, wage or salary from any bingo game authorized under this chapter. Such a violation is punishable by a fine not to exceed $10,000, which fine, upon payment, will be deposited in the general fund of the City. 5.90.210 City may enjoin violation. The City may bring an action to enjoin any violation of Penal Code section 326.5 or of this chapter. ORDINANCE NO. 625 PAGE 9 5.90.220 Remote Caller Bingo games Notwithstanding any other provision of this chapter, Remote Caller Bingo may be lawfully played in the City of Arroyo Grande pursuant to the provisions of Sections 326.3 and 326.4 of the Penal Code, and Sections 5.90.230 through 5.90.270 of this chapter, and not otherwise. 5.90.230 Qualified organizations /Remote Caller Bingo licenses A qualified organization, as set forth in Penal Code Section 326.3, shall be permitted to obtain a Remote Caller Bingo license pursuant to this chapter if: A. The organization has been incorporated or in existence for three years or more; and B. The organization possesses a valid license pursuant to Section 5.90.040 of this chapter; and C. The receipts of Remote Caller Bingo games shall be used only for charitable purposes; and D. The operation of bingo is not the primary purpose for which the organization is organized. 5.90.240 Remote Caller Bingo license application and fee An application for a license to conduct Remote Caller Bingo games shall be in a form prescribed by the City Manager or his or her designee 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: (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 City Manager or his or her designee 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. To the extent possible, the City Manager or his or her designee shall integrate the process for obtaining a Remote Caller Bingo license with the process for obtaining the license in Section 5.90.040. 5.90.250 Remote Caller Bingo license application verification The Remote Caller Bingo license shall not be issued until the City Manager or his or her designee has verified the facts stated in the application and determined that the applicant is qualified. 5.90.260 Annual Remote Caller bingo licenses A Remote Caller Bingo 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 Remote Caller Bingo 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 ORDINANCE NO. 625 PAGE 10 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. If this chapter is repealed, all Remote Caller Bingo licenses issues pursuant to this chapter shall cease to be effective for any purpose on the effective date of the repeal. 5.90.270 Remote Caller Bingo license conditions A. Any Remote Caller Bingo 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. B. Each Remote Caller Bingo license issued pursuant to this article shall be subject to the following additional conditions: (1) 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. (2) 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 Remote Caller Bingo license. Revocations and their appeals shall be governed by the same procedures contained in Section 5.90.060. 5.90.280 Penalty. It is unlawful for any person to violate any of the provisions of this chapter. Any violation of any provision of this chapter other than violations of Section 326.5 of the Penal Code shall constitute a misdemeanor. OFFICIAL CERTIFICATION I, KELLY WETMORE, City Clerk of the City of Arroyo Grande, County of San Luis Obispo, State of California, do hereby certify under penalty of perjury, that the attached is a true, full, and correct copy of Ordinance No. 625 which was introduced at a regular meeting of the City Council /Redevelopment Agency on June 22, 2010; was passed and adopted at a regular meeting of the City Council of the City of Arroyo Grande on the 13 day of July 2010; and was duly published in accordance with State law (G.C. 40806). WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 14 day of July 2010. I / / (Arlde KELLY ET;i *RE, CITY CLERK