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HomeMy WebLinkAbout1980-02-05; City Council; 3566-4; Amendment of bingo ordinanceCITY OF CARLSBAD AGENDA BILL NO. 3>S~(j>(o - ^Lu^n/pJ^^L^^^JtZ ^ ^ f VDept.Hd, DATE: ___ FEBRUARY 5, 1980 DEPARTMENT: CITY MANAGER . C. Mgr. Subject: AMENDMENT OF BINGO ORDINANCE Statement of the Matter Chapter 5.10 of the Carlsbad Municipal Code authorizes specific types of organizations to conduct bingo games. Recent amendments to the state law limit the bingo license fee to not more than $50 annually. The new state law also provides that proceeds from bingo games that may be used for expenses shall not exceed 10% or $500, whichever is less before the deduction for prizes. The previous law limited expenses so as not to exceed 10% or $500 after deduction for prizes. Proceeds from bingo games may now also be used to pay the license fee. Chapter 5.10 should be amended to make it consistent with these amendments to state law. The Council has discretion as to whether to implement a new pro- vision in the state law which allows imposition of a fee of one percent of the monthly gross receipts over $5,000 derived from bingo games. If the fee were to be levied in Carlsbad it is likely that only two existing licensees would generate enough receipts to be subject to the fee. The fee would have little value as a regulatory tool but would provide additional revenue to the City. As more and more groups conduct bingo games, significant revenues could be generated. It is recommended that Council amend Chapter 5.10 to make it consistent with state law and to impose a 10% fee on bingo receipts in excess of $5,000 monthly. Exhibits Memo from City Attorney dated December 21, 1979 Memo from City Clerk dated January 14, 1980 Ordinance No. /£ £ f^ Recommendation Introduce Ordinance No. / £ S.^ Council Action: 2-5-80 Council returned the matter to staff for deletion of the 1% fee MEMORANDUM DATE: December 21, 1979 TO: City Manager FROM: City Attorney SUBJECT: BINGO GAMES Existing law permits a City to adopt an ordinance authorizing specific types of organizations to conduct bingo games with the provision that the proceeds are to be used only for charitable purposes. The City of Carlsbad has chosen to allow bingo games under Chapter 5.10 of the Municipal Code. Recent legislation changes the provisions of the Penal Code authorizing cities to regulate bingo games in two significant respects. Currently the law provides that the portion of the proceeds that may .be used for expenses shall not exceed ten percent after the deduction for prizes, or $500 per month, whichever is less, and does not authorize the use of proceeds to pay for license fees. The new law provides that the proceeds from the bingo game that may be used for expenses, such as rental of property, overhead, and administrative expenses shall not exceed ten percent before the deduction for prizes, or $500 per month, whichever is less. These proceeds may now be used to purchase bingo equipment and also to pay required license fees. The attached ordinance would amend the Carlsbad regulations to be consistent with state law. The new legislation also limits the license fee authorized to not more than $50.00 annually, unless the City chooses to impose a license application fee, and an additional fee of one percent of the monthly gross receipts over $5,000. Currently the Carlsbad Municipal Code provides that a bingo license is good for six months but may be renewed for successive six month periods if a $10 renewal fee is paid. This violates the new law since the license fee could exceed $50.00 annually. The attached ordinance is intended to remedy this situation and to take advantage of the provisions in the new law which allow for an additional one percent fee of the monthly gross over $5,000. According to the City Clerk, there are some licensees conducting bingo games in the City of Carlsbad who have monthly gross receipts substantially in excess of the $5,000 limit. The new amendment would affect only thoseparticular operations. According to the Clerk, the bingo games operated by mobile home associations, and senior citizens' organizations, City Manager -2- December 21, 1979 would probably not be affected by this revision since their monthly gross receipts are substantially below the $5,000 minimum. Of course, opposition to the fee can be expected from those who have to pay it, namely St.Patrick's and the Boys and Girls Club. The Council should probably be given the option to impose the additional fee, but we leave those matters to the judgment of you and the Clerk. Please let us know so the matter can be presented to the City Council. VINCENT^-PrT31ONDO,. JR., City Attorney DANIEL S. HENTSCHKE, Assistant City Attorney DSH/mla Attachment MEMORANDUM DATE: January 14, 1980 TO: ASSISTANT TO CITY MANAGER FROM: City Clerk RE: BINGO GAMES To assist you in your report per the attached memo from the City Manager dated December 26, 1979, the following informa- tion is offered for your perusal: If the 1% on gross receipts over $5,000 had been in effect during the calendar year 1979, the City would have received approximately $2,700, as a result of said fee. With regard to administration and collection of the fee if there is a desire to implement same, it could be accomplished in conjunction with the filing of their monthly financial statements. Each bingo licensee is required to submit a financial statement by the fifteenth of the month for the preceding month. At such time as the statements are mailed, they could include their check for the fee. There are currently four bingo licenses in the City. They are issued to: LAKESHORE GARDENS SOCIAL ACTIVITIES ST. PATRICK'S SCHOOL CARLSBAD BOYS/GIRLS CLUB RANCHO CARLSBAD RECREATION CLUB It should be noted that of the four, only two gross in excess of $5,000 per month. In addition, it is common knowledge that the Senior Citizens desire to conduct bingo, and will apply for a license when they meet the requirements of the Code. It is my opinion that the Senior Citizens' Group, in addition, will exceed the $5,000 per month figure, and would be subject to any 1% fee imposed. If you have any questions, or if I can provide additional information, please let me know. LEE RAUTENKRANZ, City Clerk LR:adm Attachment --«--*>. ORDINANCE NO. o<CENT F. BIONDO, JR.RNEY • CITY OF CARLSBIE<to 1200 ELM AVENUEBAD. CALIFORNIA 92008V)_j 01s 2 3 4 5 6 7 8 g 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AMENDING TITLE 5, CHAPTER 5.10 OF THE CARLSBAD MUNICIPAL CODE BY THE AMEND- MENT OF SECTIONS 5.10.040, 5.10.060 AND 5.10.090 TO REVISE THE REGULATIONS FOR BINGO GAMES. The City Council of the City of Carlsbad does ordain as follows: SECTION 1: That Title 5, Chapter 5.10 of the Carlsbad \ Municipal Code is amended by the amendment of Section 5.10.040 to read as follows: "5.10.040 Term of license. The term of a bingo license is one year and may be renewed for successive periods of one year each if application therefor is made prior to the expiration of the preceding license." SECTION 2: That Title 5, Chapter 5.10 of the Carlsbad Municipal Code is amended by the amendment of Section ,5.10.060 to read as follows: "5.10.060 License fee. (a) Except as provided in Subsection (b) the fee for a bingo license shall be fifty dollars. The fee for a renewal license shall be fifty dollars. The appropriate fee shall be accompanied by the submission of each application and shall be used to defray the cost of issuance of a license. If the license is denied, one-half of the fee shall be refunded to the applicant. (b) An additional fee of one percent of the monthly gross receipts over five thousand dollars derived from bingo games shall be paid monthly to the City. A licensee paying additional fees totaling fifty dollars or more during the term of a license, shall be exempt from payment of the renewal fee as provided in Subsection (a) of this section." SECTION 3: That Title 5, Chapter 5.10, Section .5.10.090 of the Carlsbad Municipal Code is amended by the amendment of Subsection (f)(2) and by the addition of Subsection (f)(3) to read as follows: 1 2 3 4 5 6 7 8 9 10 11 12Q J 1 ^ cJ £ 3 ! 14i° g g S *" < "- 15•P o i J-*'VINCENT F.SITY ATTORNEY •1200 EU*CARLSBAD. CAH H H03 • -a en19 20 21 22 23 24 25 26 27 "(f) (2) A portion of such proceeds, not to exceed ten percent of the proceeds before deduction for prizes or five hundred dollars per month, whichever is less, may be used for the rental of property, overhead, including the purchase of bingo equipment and administrative expenses. (f ) (3) Such proceeds may be used to pay the license fees required by this chapter. On or before the 15th of each month the licensee shall file with the City Clerk a full and complete financial statement on a form to be approved by the City Clerk of all monies collected, disbursed and the amount remaining for charitable purposes as a result of all bingo games conducted during the preceding month." EFFECTIVE DATE: This ordinance shall be effective thirty days after its adoption, and the City Clerk shall certify to the adoption of this ordinance and cause it to be published at least once in the Carlsbad Journal within fifteen days after its adoption. INTRODUCED AND FIRST READ at a regular meeting of the Carlsbad Pit-v Oounr-il he>ld on the dav of . 1980 and thereafter PASSED AND ADOPTED at a regular meeting of said Council held on the day of r 1980 by the following . vote, to wit: AYES: NOES: ABSENT: RONALD C. PACKARD, Mayor ATTEST: ALETHA L. RAUTENKRANZ, City Clerk (SEAL) 23 '!