§33.3408 Limitations
(a) A qualified nonprofit, charitable organization shall conduct a bingo game only on property owned or leased by it, which property has been used by that organization as an office or for the performance of the purposes for which the licensee is organized for at least twelve (12) consecutive months immediately preceding the filing of such application. In the event the described property ceases to be used as an office or as a place for performance of the purposes for which the licensee is organized, the license shall have no further force or effect. Nothing in Section 33.3408(a) shall be construed to require that the property owned or leased by the organization be used exclusively by that organization. In the event of the loss of the lease of the premises, destruction by fire, earthquake or other circumstances beyond the control of the licensee, the game may be moved to a new location owned or leased by the licensee upon notice to the Chief of Police.
(b) No minors shall be allowed to participate in any bingo game.
(c) All bingo games shall be open to the public, not just to the members of the qualified nonprofit, charitable organization. Attendance at any bingo game shall be limited to the occupancy capacity of the room in which such game is conducted as determined by the City Manager, including the Fire Department, in accordance with applicable laws and regulations. The licensee shall not reserve seats or space for any person.
(d) All bingo games shall be operated and staffed only by individuals who are members of the qualified nonprofit, charitable organization, and who have been approved by the Chief of Police pursuant to this Division. Those members shall not receive a profit, wage or salary from any bingo game, including any free or discounted play of any bingo game. This prohibition 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. 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. Such members during operation of any bingo game shall wear on his or her outside clothing, in plain view, at chest height, an identification insignia or badge measuring not less than 2 inches by 3 inches in size and specifying the full name and title of such person and the name of the licensed organization. While managing, supervising or conducting any bingo game such members shall not be allowed to participate as a player in any bingo game.
(e) Except the organization authorized to conduct a bingo game, it is unlawful for any individual, corporation, partnership, or other legal entity to hold a financial interest in the conduct of the game.
(f) With respect to organizations exempt from payment of the bank and corporation tax by Section 23701d of the California 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. Those profits shall be used only for charitable purposes. With respect to other organizations authorized to conduct bingo games pursuant to this Division, all proceeds derived from a bingo game shall be kept in a special fund or account and shall be distributed only to charitable organizations exempt from payment of the bank and corporation tax by California Revenue and Taxation Code Section 23701d. Those proceeds shall be used only for charitable purposes, except as follows:
(1) The proceeds may be used for prizes.
(2) A portion of the proceeds, not to exceed twenty percent (20%) of the proceeds before the deduction for prizes, or two thousand Dollars ($2,000) per month, whichever is less, may be used for the rental of property and overhead, including the purchase of bingo equipment, administrative expenses, security equipment, and security personnel.
(3) The proceeds may be used to pay license fees. (g) Within ten (10) business days after any bingo game is held, the licensee shall file with the Chief of Police a full and complete financial statement of all monies collected, disbursed and the amount remaining for charitable purposes. If the licensee conducts bingo games on any ongoing basis, the licensee may file a statement every month. The Chief of Police shall have the power to inspect all books, records and papers of the nonprofit, charitable organization which pertain to the operation of said bingo games.
(h) It is unlawful for any person 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.
(i) 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.
(j) Licensed bingo operations shall limit their days of operation to the following number of calendar days per week,
(1) operations with a seating capacity of fifty (50) people or less — four or fewer days a week;
(2) operations with a seating capacity of fifty–one (51) to one hundred
(100) people — three or fewer days a week;
(3) operations with a seating capacity of one–hundred–one (101) or more people — two days a week. Four additional days of operation may be used during any fiscal year in conjunction with regular weekly games. The Chief of Police must be notified in writing at least thirty (30) calendar days prior to the use of an additional day.
(k) It is unlawful for any manager or alternate–manager to knowingly permit a person who is intoxicated and unable to exercise care for his safety or the safety of others to participate in or wander about any bingo game.
(l) All disbursements from the bingo account shall be by consecutively numbered checks signed by two authorized officers of the licensee and shall be made payable to a specific individual or organization. There shall be written on each check the nature of the expenditure for which the check is drawn. It is unlawful for any person to issue a check drawn to “cash” or a fictitious payee.
(m) The manager or alternate–manager shall record all donations and/or sales of bingo playing cards, hard cards, paper cards, markers, and pull– tabs (break opens) during each bingo game. Those records shall be kept on file in the bingo office with the financial statement for inspection purposes.
(n) It is unlawful for any person to induce, encourage or solicit any person to participate in any bingo game by making a false or misleading statement, including statements about the prizes to be distributed. It is unlawful for any person to publish or cause to be published through any news medium or advertising device, any false or misleading statement concerning any bingo game, including statements about the prizes to be distributed.
(o) It is unlawful to call or post any bingo letter or number unless the letter or number on the object drawn is displayed to the assemblage in such a manner that the letter or number is visible to the assemblage.
(p) All bingo cards presented for winnings shall be verified by a third party. Such verification shall be made prior to the beginning of the next bingo game.
(Amended 2–17–1998 by O–18464 N.S.)
