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Home My WebLink About1977-09-06; City Council; 3566-1; Bingo Ordinance Amendments\ AGENDA BILL NO. DATE: ____ _:S~e~p~t~e~m=b~e~r,_,.6~,_,.1~9~7~7 ______ _ DEPARTMENT: __ c~i~t~y'-"-A~t~t~o~r~n~e.v ____ , ___ _ SubJect: BINGO ORDINANCE A!iENDMENTS Statement of the Matter Initial: Dept.Hd. __ C. Atty . .\U:&_ C. Mg-r. + The H76 session of the Legislature ack)pted legislation implement.:.ng a constitutional amendner.t to allow a limited number of charitable organizations to ~anduct bingo games pursl.tant to local ordinance. In respc.1se to that legislation, the Council adopted Ordinance 1194 to add Chapter 5.10 to the Carlsbad Municipal Code which authorized bingo games under certain circumstances. The 1977 session of the Legislature has adopted AB 101, Chapter 271, which has further amended the state law regarding bingo. It is an urgency statute and is effective immediately. A copy of the new legislation is attached. The primary e:.:fect of the bill is to give the City Council the option of permitting additional nonprofit organi- zations to operate binge, games. The classes of organizations are very broad and the bill substantially liberalizes th~ previous provisions. It will be necessary for us to amend Chapter 5.10 to :bring ciur ordinance into accord wit!l the new state law. Howeve:c, +-:here is a basic policy question which must be resolved by the Council ~s to whether or not they wish to grant authority to the additional organizations to have · bingo. Exhibits Assembly Bill !lo. l'Jl Recommendation That the City Ccuncil resolve the policy question and direct the City Attorne~, to return with the necessary ordinance to bri-g Municipal Code Chapter 5.H in accord with the new state law as the Council deems appropriate. Council action 9-13-77 The City Attorney was directed to prepar~ the necessary ordinance to bring Municipal Coce Chapter 5. 10 in'accord with the new state law, and it ~as the concensus of the Council that Bingo games not be extended to other organizations. ,- L ~ .. .,,,,# .. _,.., .... .., ,,,., ._, ..... ..,,.~'"' ""~~---i,,_..,_ ... ,~,,..,...,.., .... _ ..... ~ '''"~"' _,,,,,.,,...,_..,_""'','" .... ,.. ..... ~ -~--" .. ~----~-~~~-........... __ ,,,, -"'"~~ .. --... ' <'; ~ .,. I, : ~~•"-• :-(.;:•'" -~ ...... i;L ,,:•.,,t,-~.,.,·.~~ /',.D;_-..~~ ... t-s ,-•, .-,:,-/<. "" '·t'\J,, •. --i.~.~,< "'-t:....\ ,--... .... ~" ~ / ~, ....t_f,, ·~~ .. ,.:: __ .. ~ ~-,,:_✓• .. :::.:·:i:;·~;:_ ~~~_,_{..._-•:..-• .I. _:_~~ ~"."1;' ·;.. ... , Asscn,tbly Bill No. 101 CHAPTER 271 An act to amend Section 326.5 of the Penal Code, and to add Sections 215.2 and 23710 to the Revenue and Taxation Code, relating to bingo, and declaring the urgency thereof, to take effect immedi• utely. [Approved by Governor July 7, 19'n. Filed with Secretary of Stale July 8, 1977.) LEGISLATIVE COUNSEL'S DICES!' AB 101, Greene. ,Bingo: authorized organizations . Existing law authorizes cities, counties, and cities and counties to adopt ordinances permitting certain nonprofit, charitable organiza- tions to conduct bingo games under specified conditions. This bill would authorize local ordinances to permit additional nonprofit organizations, including (1) spec{fied lab,or,·agricultural, or horticultural organizations; '(2) specified fraternaJ°bi;neficiary so: cieties, orders, or organizations; (3) business leagues:· chambers of commerce, real estate boards and boards of trade, civic Jeagues·and organizations operated exclusively for the promotion of social wel- fare, and certain local employee .organizations whose net earnings are dedicated exclusively to charitable, educational, or recreational purposes; (4) nonprofit pleasure and recreation clubs; (5) domestic fraternal societies, orders, or associations whose net earnings are devoted exclusively to religious, charitable, scientific, literary, educa- tional, and fraternal purposes; and (6) mobilehollle park associations ,md senior citizens groups, to conduct bingo· games. The proceeds, with specified exceptions, of all such games are to b~ used only for charitable purposes. . Existing law permits a city, county, or city and county to impose a license fee not to exceed the actual cost of issuing such license· on each organization which it authorizes to conduct bingo games. This bill would instead limit the license fee to $50 and require that one-half of the fee paid shall be refunded to an organization denied a li-:cn~e. . . Existing law provides that it is a misdemeanor puni~hable by a fine not to exceed $10,000 for any person to receive a profit, wage, or salary from an authorized bingo game. This bill would provide it is also a misdemeanor punishable by such a fine to pay a profit, wage, or salary from an authorized bingo game .md would provide that violation of any other provision of the law .iuthorizing bingo games is a misdemeanor. Existing law requires that an authorized organization shall conduct a bingo game only on property owned or leased by it and which wmertv is u~<',f bv mch or~11ni7ation for an offic~ or for org:min1- __ ... , ✓,, ~ ·(,4'4,. ~ ... "'.' .. { -lf:;r: -~~--~1~~ ~~-~ L~ ··_::i~~. ,~~~:1.:$( · :. :f:... ·-r- ,,.., ..,_ .. -....:::.:... .. ' ,.,,,-., tional purposes. This 'bill would specify that such property need not be used or l~ased exclusively by the organization. •~Jnder existing law, certain _ofganizations are exempted from bank and corporation taxes ::nd their.property, which is used for qualified exempted purposes, is exempted from property taxation. This bill would specify that an organization which is exempted from such taxes shall not be disqualified for such exemptions if it conducts Bingo games, provided that the proceeds of sucn games are exclusively used for the charitable purposes of the organization. This bill wouJd take effect immediately ~s an urgency statu~e. The people oT the State of California do enaci as follows: .) SECTION 1. Section 326.5 of the Penal Code is' amended to read: 326.5. (a) Neither this chapter nor Chapter 10 (commencing with Section 330) applies to any bingo game which is conducted in a city, 131~k> CIA( county, or city and county pursuant to an ordinance enacted under ,,.,. c,)y o~-J Section 19 of Article IV of the State Constitution, provided that iuch t -'l'I 0-11 o · ws ames to be conducted only by organizations ti-em ted from a ment of the ban ana cor oration t 6y Section512:EQ131~0l~~ 70le ~~ and 701 of the· Revenue an axation o e -mooilehome 12ark assocjatjons and seoiac citizens organizatjoos; and provided that the I' I, I ) ) f· I I I · proceeds of such games are used only for charitable purposes, (b) It is a misdemeanor for any person to receive or pay a profit, wage, or salary from any bingo game aut:1orized by Section 19 of Article IV of the State Constitution. . (c) A violation of subdivbion (b) of this section shall be punishable by a fine not to exceed ten thousand dollars ($10,000), which fme shall be deposited in the general fund of the city, county, or city and county which enacted the ordinance authorizing the bingo game. A violation of any provision of this section, other than subdivision (b), is a misdemeanor. (d) The city, county, or city and county which enacted the ordinance authorizing the bingo game may bring an action to enjoin a violation of this section. (e) No minors shall be allowed to participate in any bingo game. (f) An organization authorized to conduct bingo games pursuant to subdivi~ion (a) shall conduct a bingo game only on property owned or leased by it, 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 subdivisior, shall be construed to require that the prope, ty owned or leased by the organization be used or leased exclusively by such organization. (g) All bingo games shall be open to the public, not just to the members of the authorized organization. (h) A bingo game shall be operated and staffed only by members ) ., .......... <>,t;--5, t ; ,, ,, f- L_ ,,. _,,.... .. ~ .. ~ ,,,. _..,., ?('✓ .. .,.-., .. ,._..,.,_, ___ ...... i"''Vf"°"':'.--.....,,,,.,. .,...,,,.,.,.~~ ... ---·~,,....~-.,~,.,..,. )'j, •0-1"-;_,,. .... ~ ... -t-V,..,,.. ..... ~ .. -, .... ,,,_,;,..,,.,,_...,,, .-~~ ... ~-II"-."":""'-"'"'-~--.,,.,·-· ,..,...,,.,....,..-.,..,, ~•s;<=• ~ ,..__ ...... , ~ ~ .,,,. ,~-"'. ~ ',,: 't,,...•-.~,.,.·~•, '•·~:'.><!t' '~ •' ,,, • -~., ..,.,~,"~••~,,"~/·r ..,."". '(,~,~.•i,. ..:~-•• .,,_. '-. , ~. -\~-~/~J,,;,.}'..-;,.:,._* ... "'t'"~~~~-~~·~•;."~•','\,;~~~~~~~ ;;L;•1~.:~·: •. :2~ ·t ·, • ,4;i:;: · :~~o/IJ.~fi~~<:i~~~G:~~~~1:i~~--J: :~:::t~--sr~ ~.l"~~~lfi'.·~~*'-:~:t~·>· ~ >·~;/~:, ~~:s:~:1· .. ~.t2t:~~:'t.::. ,. , .. ·.'-'3--~~. ~ •.,:::.:::~·:y:\,:; '..,,_,. --~:ch.'271 ,, ·1 '7·" ·--, ··~-· . :;;,·,., .. """. ,, ... ~ · ,., · -,.-. · · ,,.--,: ~l'!;,•. -: ,.. , ,. ·, ~ ·-: , ' ... . ..... \\;·· the aut~o:ized·~:~aniza~io~J~i';~.~~g~nii:J;~.;s~~r~;~b~r~-:~->s· .. · ,th.'~; 1 1 _: -~ .. :_\ ·, ·-5:.::.J:x~· -~ · <2.:-: <. . . ,t- .111 nol receive a profit, Wage, 'or salary'from any'bingo game.·Only .. I •• t? organization authorized to conduct a'bingo;giime-shall operate 0 h game, or par~icipate in the pr~molion, supervision,·oi: any o~~e~ provided that the pro_c,eeds from such games are used exclusively for ase of such game. .. · · .• . , 'i) No individual corporation, partnersliip,' i)r'other :1egal entity ~ept the organization authorized to conduct a''bingo',game shall id a financial interest in the conduct' 6f such' bingo·,g:ime .. -~· ' · , ij) With respect to 'organization=· exempt from'.pay~ent''ot the nk and corporation 'tax by 'Section 237010 of'the '.Revenue· arid xation Code, all profits derived from a bingo game sh!lll'be:kept a special fund or account artd' shall not l:ie 'commingled .with 'any ner·fund or account. Such profit's shall oe·used only for'cnaritaole •rposes. With respect to other organizations authorizect 'tc,concluct ·1go games pursuant to' this section, 'all proce~ds deriv.ecl fro'm ·a: ·1go game shall be kept in a special fund or account and shall not • commingled with any other fund or account. Such proceeds shall . · used only for charitable purposes, except as 'follows~ · , •-· .. •l) Such proceeds may be used for pri:zes. · · ,• · ·-;: <2) A portion of such proceeds, not to exceed 10 percent of the oceeds after the deduction for prizes, or five hundred dollars ,30'J} per month, whichever· is less, may be used for rental of operty, overhead, and administrative expenses. . , k) A city, county, or city and county may impose a license fee on ch organization which it authorizes to conduct bingo games. The •', whether for the initial license oi renewal, shall not exceed fifty •liars ($50). If an application for a license is denied, one-half of any ense fee paid shall be refunded to the organization. I/) No person shall be allowed to p_rticipate in a bingo game, iless the person is physically present at the time and place in which e bingo game is being conducted. _ · .. , · · (m) The total value of prizes awarded during the conduct of any ago games shall not exceed two hundred fifty dollars ($250) in cash kind, or both, for each separate game which is held. ,n) As used in this section "bingo"·means a game of chance in 1ich prizes are awarded on the basis of designated numbers or ,nbols on a card which conform to numbers or symbols selected at ndom. It is the intention of th~ Legislature that bingo as defined this subdivision applies exclusively to this section and shall not be -plied in the construction or enforcement of any other provision of V • • , • SEC. 2. Section 215.2 is added to the Revenue' ~nd Taxation Code, read: 215.2. Property owned by an organization that satisfies the quirements of Section 214,215, o~ 215.l ano which is used primarily r exempt purposes shall not be denied the welfare or veterans ~anization exemption because such property is also ,,sed for ,nducting bingo games pursuant to s7~_tipn 326.5 of the ~enal-:;,.. .,_ • : • < ' , ... -'I., ' 1 ··-·{":" ,. :~ '":~""- ' >, , f'" ~ t_tie ch'aritable·purposes of such organization. . . SEC. 3. Section 23710 is added to the Revenue and Taxation Code, •to ,read: . , . '2371Q. Any·organization exempted from taxes imposed under this part pursuant to the provisions of this article shall not ba disqualifie:i .for such exemption on the basis that it conducts bingo games , pursuant to Section 326.5 of the Penal Code, provided that the proceeds from such games are used .exclusively for charitable purposes. · · . SEC. 4. Tnis act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go intu immediate effect. The facts constituting such necessity are: In order for this ·act to properly implement the constitutional amendment to_ Section 19 of Article IV of the Constitution, permitting bingo, which the peopl~ of California approved at the June 1976 primary, it 'is necessary that this act take effect immediately. ,~,s ,· 0 ; ) ) ·, ., -~i ,,! I, ,' ~f ,, ,J .·, ~ ~} ,:; { 1