10.34 Charitable Bingo Games - Permits
10.34.010 Purpose and intent.
10.34.040 Organizations eligible for permit.
10.34.050 Contents of application.
10.34.060 Issuance of permit.
10.34.070 Permit--Period of validity.
10.34.090 Location of games.
10.34.100 Exclusive operation by permit holder.
10.34.110 Profits--Section 23701d organization.
10.34.120 Profits--Organizations other than section 23710d organization.
10.34.130 Hours of operation.
10.34.140 Participation; Minors.
10.34.150 Financial interest--Prohibited.
10.34.170 Limitation on frequency of bingo.
10.34.180 Records; audit.
10.34.190 Receipts--Sale of bingo cards, pulltabs.
10.34.210 Summary suspension of permit pending opportunity for hearing; grounds for suspension and revocation.
10.34.220 Conducting bingo sessions after suspension.
10.34.230 Order and subsequent hearing.
10.34.240 Appeal hearing.
10.34.250 Receiving bingo proceeds during suspension or revocation.
10.34.260 Purchases from bingo suppliers.
10.34.270 Bingo supplier--Defined.
10.34.280 Permit required.
10.34.310 Limitation on involvement in bingo.
10.34.320 Prohibition of financial interest in bingo.
10.34.330 Required records.
10.34.010 PURPOSE AND INTENT. It is the purpose and intent of the Council by enacting this Chapter to provide for the issuance of permits to allow
charitable organizations to hold bingo games lawfully in the City. (Ord. 1989-26 § 1 (part), Ord. 1977-1 § 1 (part), 1977).
10.34.020 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 on a card which conform to numbers or symbols selected at random. 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. Bingo as defined in this section applies exclusively to this Chapter and shall not be applied in the construction or enforcement of any other provision of law. (Ord. 1989-26 § 1 (part), Ord. 1977-1 § 1 (part), 1977).
10.34.030 BINGO -- PROHIBITED. No person, including but not limited to an individual, corporation, association, organization or group, shall operate a bingo game within the City without possessing a valid, unexpired and unrevoked permit issued under this chapter and except in conformance with this chapter and all other applicable laws. (Ord. 1989-26 § 1 (part), Ord. 1984-5 § 192, 1984; Ord. 1977-1 § 1 (part), 1977).
10.34.040 ORGANIZATIONS ELIGIBLE FOR PERMIT. Organizations which are exempted from the payment of the bank and corporation tax by Section 23701a, 23701b, 23701d, 23701e, 23701f, 23701g, and 23701l of the Revenue and Taxation Code, mobile home park associations and senior citizens organizations shall be eligible to apply for a permit to conduct bingo games in this City; provided that the proceeds of such games are used only for charitable purposes; and further provided, said applicant has owned or leased property within the City of San Mateo that has been used by the applicant for performance of the purposes for which the applicant is organized for at least twelve (12) consecutive months immediately preceding the filing of such application. No other person shall be qualified or eligible to receive a bingo permit. (Ord. 1989-26 § 1 (part), Ord. 1984-5 § 193, 1984; Ord. 1977-1 § 1 (part), 1977).
10.34.050 CONTENTS OF APPLICATION. An application shall be presented to the tax collector and shall contain the following:
(a) The name and principal local address of the organization;
(b) The names of the principal officers of the organization locally;
(c) The address of the place where bingo will be played, including a copy of the lease or deed for the premises;
(d) The names and membership status of the persons who will operate and staff the game; provided, however, that only persons who are expected to operate and staff more than 50% of the games during a year must be named;
(e) The name of any security company that will be used;
(f) Proposed day of week and hours when bingo games will be conducted;
(g) Such proof as may be required by the tax collector that the applicant is eligible and qualified to receive a permit. If eligibility is based on an exemption from payment of the bank and corporation tax, the application shall be accompanied by a certificate of determination of exemption under the applicable Section of the Revenue and Taxation Code, or a letter of good standing from the Exemption Division of the Franchise Tax Board showing such exemption;
(h) A description of the receipt, accounting, and inventory control systems that the applicant will use in the operation of bingo;
(i) A statement that the applicant agrees to conduct bingo in strict accordance with the provisions of Section 326.5 of the Penal Code and this Chapter, as they may be amended from time to time, and agrees that the permit may be suspended and/or revoked by the City upon violation of any such provisions;
(j) A signature of an authorized officer of the applicant under penalty of perjury; and
(k) Such additional information as may be required to show that the operation of the bingo game will not be inimical to the public health, safety, morals, peace, or general welfare.
The tax collector may provide uniform application forms. (Ord. 1989-26 § 1 (part), Ord. 1984-5 § 194, 1984; Ord. 1977-1 § 1 (part), 1977).
10.34.060 ISSUANCE OF PERMIT. A permit shall be issued unless the tax collector makes one or more of the following findings:
(a) The bingo games will be a fraud on the public;
(b) The bingo games will be conducted at a location or in a manner or the proceeds thereof will be accounted for or expended in a manner which violates any applicable law;
(c) The proposed method or methods of conducting bingo games are contrary to the provisions of this Chapter;
(d) The system of record keeping and accounting relating to the conduct of the games and disposition of the proceeds therefrom is inadequate;
(e) An officer of applicant who is responsible for the bingo games has been convicted of a gambling offense or a crime of fraud or theft within the last five years;
(f) The application does not conform to the requirements, terms, and conditions of this Chapter;
(g) The applicant has failed to report pursuant to Section 10.34.200, has failed to maintain adequate records, or refused to allow an audit requested by City;
(h) The applicant has failed to meet the charitable contribution requirements, if any, that have been adopted by the City Council.
(i) The applicant has had its bingo permit revoked in San Mateo or elsewhere within the 3 years preceding application.
(j) The issuance of a permit will be inimical to the public health, safety, morals, peace, or general welfare.
The term "applicant" shall include any predecessor or related organization which has been reestablished in order to apply for a bingo permit or which has officers who were responsible for bingo in an organization whose bingo application was denied by City or whose permit was revoked by City or other governmental entity. (Ord. 1989-26 § 1 (part), Ord. 1977-1 § 1 (part), 1977).
10.34.070 PERMIT -- PERIOD OF VALIDITY. For the period July 1, 1989 through August 30, 1990, the following shall apply: A permit application shall be applied for by July 15, 1989, and if issued shall be valid until August 30, 1990. (Ord. 1989-26 § 1 (part), Ord. 1977-1 § 1 (part), 1977).
10.34.070 PERMIT -- PERIOD OF VALIDITY. Each permit shall only be valid only until the next following August 30. (This section is effective on September 1, 1990.) (Ord. 1989-26 § 1 (part), Ord. 1977-1 § 1 (part), 1977).
10.34.080 PERMIT -- FEE. The permit fee for each permit issued pursuant to the provisions of this Chapter shall be ten dollars, one-half of which will be refunded if the application is denied. (Ord. 1989-26 § 1 (part), Ord. 1977-1 § 1 (part), 1977).
10.34.090 LOCATION OF GAMES. An organization authorized to conduct bingo shall conduct bingo 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 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 or whose use is donated to the organization be used or leased exclusively by or donated exclusively to such organization. (Ord. 1989-26 § 1 (part), Ord. 1984-5 § 195, 1984; Ord. 1977-1 § 1 (part), 1977).
10.34.100 EXCLUSIVE OPERATION BY PERMIT HOLDER. A bingo game shall be operated and staffed only by members of the authorized organization which organized it. It is unlawful for any person to receive a profit, wage, or salary from any bingo game. Nor shall any person operating or staffing bingo receive free or at reduced cost any pulltabs, bingo papers, or the like enabling them to play bingo. 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. This section 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, provided that the name of the security company is filed with the City. A violation of this section shall be punishable by a fine not to exceed $10,000 which shall be deposited into the general fund of the City. (Ord. 1989-26 § 1 (part), Ord. 1984-5 § 196, 1984; Ord. 1977-1 § 1 (part), 1977).
10.34.110 PROFITS -- SECTION 23701d ORGANIZATION. All profits derived from a bingo game shall be kept in a special fund or account and shall not commingled with any other fund or account. Such profits shall be used only for charitable purposes. The City Council may designate by resolution a percentage of bingo gross receipts that must be used for charitable purposes. (Ord. 1989-26 § 1 (part), Ord. 1977-1 § 1 (part), 1977).
10.34.120 PROFITS -- ORGANIZATIONS OTHER THAN SECTION 23710d ORGANIZATION. 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:
(a) Such proceeds may be used for prizes.
(b) A portion of such proceeds, not to exceed 20 percent of the proceeds before the deduction for prizes, or one thousand dollars ($1,000) per month, whichever is less, may be used for rental of property, overhead, including the purchase of bingo equipment, administrative expenses, securing equipment, and security personnel.
(c) Such proceeds may be used to pay license fees.
The City Council may designate by resolution a percentage of bingo gross receipts that must be used for charitable purposes. (Ord. 1989-26 § 1 (part), Ord. 1986-23 § 1, 1986; Ord. 1982-29 § 1, 1982; Ord. 1977-1 § 1 (part), 1977).
10.34.130 HOURS OF OPERATION. An organization shall not operate or conduct a bingo game between the hours of midnight and eight a.m. (Ord. 1989-26 § 1 (part), Ord. 1977-1 § 1 (part), 1977).
10.34.135 ADVERTISING. All advertising for bingo shall designate the name of the bingo permit holder and shall state that bingo proceeds will be used for charitable purposes. (Ord. 1989-26 § 1 (part)).
10.34.140 PARTICIPATION; MINORS. Participation in all bingo games shall be open to the general public, and may not be limited to members of the licensed charitable organization. No minors shall be allowed to participate in any bingo game, as a worker or player, except for hall set-up, hall tear-down, and for food serving. No person shall be allowed to participate in a bingo game, unless the person is physically present at the time and place in which said game is being conducted. (Ord. 1989-26 § 1 (part)).
10.34.150 FINANCIAL INTEREST -- PROHIBITED. No individual, corporation, partnership, or other legal entity except the organization authorized to conduct a bingo game shall hold a financial interest in the conduct of such bingo game. (Ord. 1989-26 § 1 (part)).
10.34.160 PRIZES. The total value of prizes awarded during the conduct of any bingo game shall not exceed $250 in cash or kind, or both, for each separate game which is held. A bingo game starts when the first ball or number symbol is called and ends when the first ball and all succeeding balls or number symbols are returned to the cage or blower. Each progressive play in a series which continues to utilize and count any number symbols called and utilized in a previous part of said progression shall be deemed part of the same bingo game, even if a separate prize is awarded for each part of said progression. The cumulative prizes awarded for a "progressive" or other similar bingo game shall not exceed the total of $250 in cash or kind or both. No other prizes, except for door prizes, may be given, including, but not limited to, bonus line prizes, good neighbor prizes. Door prizes shall not exceed a total of $250 for the bingo day and must be awarded during public attendance and in view of the public. (Ord. 1989-26 § 1 (part)).
10.34.170 LIMITATION ON FREQUENCY OF BINGO. A permit holder shall not conduct bingo more frequently than one day a week. The total number of games on any one day shall not exceed 25 games. No single location shall be used for bingo more than two days a week. A permit holder may hold one bingo marathon during the period of the annual permit. (Ord. 1989-26 § 1 (part)).
10.34.180 RECORDS; AUDIT. A bingo permit holder shall 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 authorized by this Chapter. The permit holder shall keep full and accurate records of all bingo supplies received and used. Records of pulltabs shall include (1) a designation of the type of pulltab, (2) the serial number of the pulltabs, (3) the number of pulltabs in a deal, (4) the number of deals, (5) the sales value of pulltabs in a deal, (6) the prize value of pulltabs in a deal, (7) the winning tickets.
All records, ledgers, receipts, and accounts shall be kept for a period of 3 years and shall be made available to the tax collector, or his designated representative, for audit. As part of an audit or as a separate action, City may attend any bingo game and observe the operations. Further, City may place a City representative with the bingo permit holder in order to assure that proper receipts are given and that proper accounting of bingo funds is made. (Ord. 1989-26 § 1 (part)).
10.34.190 RECEIPTS -- SALE OF BINGO CARDS, PULLTABS. A bingo permit holder shall provide a receipt to each and every person who purchases a bingo card/paper, or other bingo supply, except that no receipt is required for the purchase of a pulltab. Such receipt shall be a cash register receipt or other receipt clearly designating the amount of money received by the permit holder. The bingo permit holder shall retain all winning pulltabs paying over $25.00 as a record. Persons selling pulltabs must sign for the number of pulltabs taken by said person for sale. (Ord. 1989-26 § 1 (part)).
10.34.200 REPORTING. A permit holder shall report to the tax collector annually on or before each July 31 all receipts and expenses, including but not limited to prizes, supplies, property rental or payments, from bingo games within the City of San Mateo. The amount disbursed to charities shall be reported. The period to be covered shall be the preceding July 1 - June 30. (Ord. 1989-26 § 1 (part)).
13.34.210 SUMMARY SUSPENSION OF PERMIT PENDING OPPORTUNITY FOR HEARING; GROUNDS FOR SUSPENSION AND REVOCATION. Whenever it appears to the tax collector that:
(a) the permit holder is conducting bingo in violation of any of the provisions of this chapter or other applicable law or is improperly using bingo proceeds for unauthorized purposes; or
(b) the permit holder has not made available all records, ledgers, and accounts relating to proceeds and expenditures, or is not keeping required receipts and records, or has refused to allow City to audit or monitor the bingo operations; or
(c) the permit holder has lost its eligible status or has such status suspended.
The tax collector shall have the authority to summarily suspend the license by ordering the permit holder to immediately cease and desist any further operations of any bingo game. (Ord. 1989-26 § 1 (part)).
10.34.220 CONDUCTING BINGO SESSIONS AFTER SUSPENSION. It shall be unlawful for any person to continue to conduct bingo after any summary suspension. (Ord. 1989-26 § 1 (part)).
10.34.230 ORDER AND SUBSEQUENT HEARING. The tax collector's written order shall state the reasons for the suspension and also notify the permit holder in writing that a hearing will be held within 15 working days from the date of the order to determine whether such permit shall be suspended for a longer time period or permanently.
Any such appeal by the permit holder shall be in writing stating the specific grounds for relief, and shall be filed with the tax collector. (Ord. 1989-26 § 1 (part)).
10.34.240 APPEAL HEARING. A permit holder may appeal the decision of the tax collector within 10 calendar days of the date of the order. The reasons for an appeal shall be stated and the appeal filed with the tax collector. Upon timely request, the appeal hearing process and related procedures shall proceed pursuant to the provisions of Chapter 5.18. (Ord. 1989-26 § 1 (part)).
10.34.250 RECEIVING BINGO PROCEEDS DURING SUSPENSION OR REVOCATION. An organization whose permit has been suspended or revoked cannot receive bingo proceeds from any source during the period of suspension or revocation. A violation of this subsection shall result in a permanent permit revocation to the organization involved and no subsequent permit shall be issued to any officer responsible. (Ord. 1989-26 § 1 (part)).
10.34.260 PURCHASES FROM BINGO SUPPLIERS. All permit holders shall use bingo papers, pulltabs and other supplies purchased from suppliers licensed by the City of San Mateo. (Ord. 1989-26 § 1 (part)).
10.34.270 BINGO SUPPLIER -- DEFINED. A "bingo supplier" means any person or enterprise which, for a consideration, sells, rents, supplies, provides or furnishes equipment, products, goods, paper or other items for use in the conduct of bingo games, except for food service items, furniture, and office supplies. (Ord. 1989-26 § 1 (part)).
10.34.280 PERMIT REQUIRED. No person shall, unless under and by permit authority of a valid, unrevoked and unexpired permit, sell, rent, supply, provide or furnish for a consideration, any equipment, products, good, paper or other items for use in the conduct of bingo games, except for food service items, furniture, and office supplies.
A bingo supplier shall be deemed to operate or conduct business within the City of San Mateo if representatives of the bingo supplier sell, rent, supply, provide or furnish for a consideration, within the City of San Mateo, any equipment, products, goods, paper or other items for use in the conduct of bingo games, whether or not the bingo supplier operates from a fixed location within another jurisdiction.
An application fee of $50.00 shall be paid upon application. (Ord. 1989-26 § 1 (part)).
10.34.290 ISSUANCE. The tax collector shall issue a permit unless:
(a) The bingo supplier sells, rents, supplies, provides or furnishes any equipment, products, goods, paper or other items for use in the conduct of bingo games in manner which violates Penal Code Section 326.5, this Chapter or any other applicable law.
(b) The bingo supplier has failed to keep adequate records of his sales in the City or has refused a request by City to audit those records. (Ord. 1989-26 § 1 (part)).
10.34.300 RECORDS -- AUDIT. The bingo supplier shall keep full and accurate records of all inventory, income and expenses received and disbursed in connection with the sale, rental, supply, provision or furnishing of any equipment, products, goods, paper or other items for use in the conduct of bingo games in the City of San Mateo. The records shall be of such type and maintained in such manner a may be prescribed by the tax collector.
The tax collector or any other authorized representative of the City shall have the right to examine and audit such records at any reasonable time and the bingo supplier shall fully cooperate by making such records available. (Ord. 1989-26 § 1 (part)).
10.34.310 LIMITATION ON INVOLVEMENT IN BINGO. The bingo supplier shall not, directly or indirectly, organize, manage, supervise, conduct, control or otherwise participate in or influence either the operation of any bingo game conducted in the City or the promotion thereof. (Ord. 1989-26 § 1 (part)).
10.34.320 PROHIBITION OF FINANCIAL INTEREST IN BINGO. With the exception of revenue generated by any business or enterprise for which a permit is required pursuant to this Chapter, no bingo supplier shall have a financial interest in the conduct of a bingo game operated in the City of San Mateo.
A supplier shall be deemed to have a financial interest in the conduct of a bingo game including but not limited to the following situations: 1) if the price or cost of bingo supplies is adjusted based on the profits, losses or tax exempt status of any organization licensed under this Chapter; or 2) if the supplier absorbs, assumes, shares or otherwise participates in the losses, or profits of any bingo game conducted by any organization permitted under this Chapter. (Ord. 1989-26 § 1 (part)).
10.34.330 REQUIRED RECORDS. Permitted bingo suppliers shall maintain a complete set of records which includes detail of all activities. These records shall include, but not limited to the use of pre-printed (form) sales invoices which reflect the following information:
(a) Date of sale,
(b) The customer name, and complete business address,
(c) A description and stock number of each line item sold,
(d) Quantity and sales price of each line item,
(e) The original and two (2) copies of the invoice shall be prepared and maintained as follows:
(1) Original issued to the customer,
(2) A copy retained in a file by customer name, and
(3) A copy file in (invoice number) numerical sequence.
(f) Credit memos for returned items shall be prepared in the same detail as item a through e.
(g) Detailed records of pulltabs sold, including serial numbers, dollar values of pulltabs and pulltab prizes. (Ord. 1989-26 § 1 (part)).