Ordinance Number 35170.
ORDINANCE NO. 351
PERMITTING BINGO GAMES
AN ORDINANCE OF THE CITY OF SAN JUAN CAPISTRANO,
CALIFORNIA, ALLOWING BINGO GAMES IN THE CITY
FOR BENEFIT OF CHARITABLE ORGANIZATIONS
THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA,
DOES ORDAIN AS FOLLOWS:
Sections
1. Definition of "Bingo".
2. Organizations Eligible For City License To Conduct
Bingo Games.
3. Application For License.
4. Applicant Must Be Qualified.
5. Contents Of Application.
6. Investigation Of Applicant.
7. Contents Of License.
S. Summary Suspension Of License Pending Opportunity
For Hearing --Misdemeanor To Continue After
Suspension --Revocation.
9. Revocation Of License - Alternative Procedure.
10. Appeal Of Revocation To City Council.
11. Maximum Amount Of Prize.
12. Profits To Be Kept In Separate Fund Or Account.
13. Financial Interest In Licensee Only.
14. Exclusive Operation By Licensee.
15. Bingo Games Open To Public.
16. Attendance Limited To Maximum Occupancy.
17. Bingo Games Conducted Only On Licensee's Property.
18. Minors Not To Participate.
19. Intoxicated Persons Not To Participate.
20. Hours Of Operation.
21. Participant Must Be Present.
22. Receipt Of Profit By A Person A Misdemeanor Under
State Law.
23. City May Enjoin Violation.
24. Severability.
25. Effective Date.
26. Clerk's Certification.
SECTION 1. Definition Of "Bingo".
As used in this Ordinance "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.
SECTION 2. Organizations Eligible For City License
To Conduct Bingo Games.
The following are eligible to apply to the City for a
license to conduct bingo games in the City under the provisions
of Section 326.5 of the Penal Code and this Ordinance, provided
that the proceeds of such games are used only for charitable
purposes.
(1) Corporations, organizations, community chests or
trusts, organized and operated exclusively for
religious, charitable, scientific, literary, or
educational purposes, or for the prevention of
cruelty to children or animals, exempted from the
payment of the bank and corporation tax by Sections
23701a, 23701b, 23701d, 2370le, 23701f, 23701g,
and 277011 of the Revenue and Taxation Code and a
contribution or gift to which would be a charitable
contribution under Section 170(c) (2) of the
Internal Revenue Code of 1954.
42) Mobilehome park associations and senior citizen
organizations.
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SECTION 3. Application For License.
Eligible organizations desiring to obtain such license
to conduct bingo games in the City of San Juan Capistrano shall
file an application in writing therefor in the Office of the City
Manager on a form to be provided by said office. The license
issued shall be for a term of one year from the date of issuance,
subject to renewal and annual fee not to exceed Fifty Dollars
($50). If an application for a license is denied, one-half of
any license fee paid shall be refunded.
SECTION 4. Applicant Must Be Qualified.
No license shall be issued to any organization unless
such applicant is an eligible organization under Section 2 and
its application conforms to the requirement, terms and conditions
of this Ordinance.
SECTION 5. Contents Of Application.
Said application for a license shall contain the following:
(1) The name of the applicant organization and a
statement that applicant is an eligible organization
under Section 2.
(2) The name and signature of at least two (2) officers,
including the presiding officer, of the corporation
or community chest and the trustee of any trust.
(3) The address of the particular property owned or
leased by the applicant within the City of San
Juan Capistrano on which property bingo games will
be conducted, together with a statement of the
maximum legal occupancy of such place.
(4) A statement that the premises on which bingo games
will be conducted, are used by the applicant for
an office or for performance of the purposes for
which the applicant is organized.
(5) Proposed days of week and hours of day for conduct
of bingo games.
(6) That the applicant agrees to conduct bingo games
in strict accordance with the provisions of
Section 326.5 of the Penal Code and this Ordinance,
as they may be amended from time to time, and
agrees that the license to conduct bingo games may
be revoked by the City Manager upon violation of
any of such provisions.
(7) Said application shall be signed by the applicant
under penalty of perjury.
(8) The annual license fee fixed by the City Council
by resolution shall accompany the application.
(9) The applicant shall also submit, with its
application, a Certificate or Determination of
Exemption under Sections 23701a, 23701b, 23701d,
23701f, 23701g, and 237011 of the Revenue and
Taxation Code, or a letter of good standing from
the Exemption Division of the Franchise Tax Board
in Sacramento, showing exemption under any one or
more of the aforesaid sections, or such other
certificate showing eligibility.
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SECTION 6. Investigation Of Applicant.
Upon receipt of the completed application and the fee,
the City Manager shall ascertain whether or not all the
statements in the application are true and correct, and whether
or not the property of the applicant qualifies, and the extent to
which it qualifies, as to fire, occupancy, and other applicable
restrictions as property on which bingo games may lawfully be
conducted.
SECTION 7. Contents Of License.
Upon being satisfied that the applicant is fully
qualified under the law to conduct bingo games in the City, the
City Manager shall issue a license to said applicant, which shall
contain the following information:
(1) The name and nature of the organization to which
the license is issued.
(2) The address where bingo games are authorized to be
conducted.
(3) The maximum legal occupancy of the room in which
bingo games are to be conducted.
(4) The date of the expiration of such license.
(5) Such other information as may be necessary or
desirable for the enforcement of the provisions of
this Ordinance.
SECTION 8. Summary Suspension Of License Pending
Opportunity For Hearing --Misdemeanor To
Continue After Suspension --Revocation.
'(a) Whenever it appears to the City Manager that the
licensee is conducting a bingo game in violation
of any of the provisions of this Ordinance, the
City Manager shall have the authority to summarily
suspend the license and order the licensee to
immediately cease and desist any further operation
of any bingo game.
(b) Any person who continues to conduct a bingo game
after any summary suspension thereof under
subsection (a) shall be deemed to be guilty of a
misdemeanor, and upon conviction thereof shall be
punishable by a fine not exceeding Five Hundred
Dollars ($500) or by imprisonment in the County
jail for a period not exceeding six (6) months, or
by both such fine and imprisonment.
(c) The order issued under subsection (a) shall also
notify the licensee that it shall have five (5)
days from the date of such order to request a
hearing before the City Manager to determine
whether such license shall be revoked. Failure to
request, in writing, such hearing before the City
Manager within said five (5) day period, shall
result in a revocation of the license.
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(d) Upon such request by the licensee for a hearing to
determine whether such license shall be revoked,
the City Manager shall provide such hearing within
ten (10) days after receipt of such request. The
suspended licensee may appear before the City
Manager at such hearing, for the purpose of
presenting evidence why the license should not be
revoked. No license shall be revoked under this
section unless notice of the time and place of
such hearing shall have first been given at least
five (5) days before the hearing thereof by
depositing in the United States mail a notice
directed to said suspended licensee at the address
given in the application. The notice shall set
forth a summary of the grounds advanced as the
basis of the suspension and revocation.
(e) Any organization whose license is revoked under
this section shall not thereafter conduct any
bingo game in the City until such time as the City
Council, on appeal, determines to overrule the
decision of the City Manager.
SECTION 9. Revocation Of License - Alternative Procedure.
(a) Whenever it appears to the City Manager that the
licensee is conducting bingo games in violation of
any of the provisions of this Ordinance, or that
the license was obtained by fraudulent or otherwise
incorrect representations and no summary suspension
is ordered under Section 8 the license may be
revoked; provided, however, the licensee may
appear before the City Manager at the time fixed
by the City Manager, for the purpose of presenting
evidence why the license should not be revoked.
No license shall be revoked under this section
unless written notice shall have first been given
at least five (5) days before the hearing thereof
by depositing in the United States mail a notice
directed to said licensee at the address given in
the application. The notice shall set forth a
summary of the grounds advanced as the basis of
the revocation.
(b) Any organization whose license is revoked under
this section shall not thereafter conduct any
bingo game in the City until such time as the City
Council, on appeal, determines to overrule the
decision of the City Manager.
SECTION 10. Appeal Of Revocation To City Council.
(a) Any organization whose license is revoked under
this Ordinance shall have the right, within ten
(10) days after receiving notice in writing of the
revocation, to file a written appeal to the City
Council. Such appeal shall set forth the specific
ground or grounds on which it is based. The City
Council shall hold a hearing on the appeal within
thirty (30) days after its receipt by the City, or
at a time thereafter agreed upon and shall cause
the appellant to be given at least ten (10) days
written notice of such hearing. At the hearing
the appellant or its authorized representative
shall have the right to present evidence and a
written or oral argument, or both, in support of
its appeal. The determination of the City Council
on the appeal shall be final.
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(b) Any organization whose license is finally revoked
may not again apply for a license to conduct bingo
games in the City of San Juan Capistrano 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 under
Section 23701d of the Revenue and Taxation Code,
such organization may again apply for a license
upon proof of reinstatement of said exemption.
SECTION 11. Maximum Amount Of Prize.
The total value of prizes awarded during the conduct of
any bingo games shall not exceed Two Hundred Fifty Dollars ($250)
in cash or kind, or both, for each separate game which is held.
SECTION 12. Profits To Be Kept In Separate Fund
Or Account.
With respect to organizations exempt from payment of
the bank and corporation tax by Section 23701d of the 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. Such profits shall be used only
for charitable purposes. With respect to other organizations
authorized to conduct bingo games pursuant to this section, 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:
(1) Such proceeds may be used for prizes.
(2) A portion of such proceeds, not to exceed 10
percent (10%) of the proceeds after the deducation
for prizes, or Five Hundred Dollars ($500) per
month, whichever is less, may be used'.for rental
of property, overhead, and administrative expenses.
The licensee shall keep full and accurate record of the
income and expenses received and disbursed in connection with its
operation, conduct, promotion, supervision and any other phase of
bingo games which are authorized by this Ordinance. The City, by
and through its authorized officers, shall have the right to
examine and audit such record at any reasonable time and licensee
shall fully cooperate with the City by making such record available.
SECTION 13. Financial Interest In Licensee Only.
No individual, corporation, partnership, or other legal
entity except the licensee shall hold a financial interest in the
conduct of such bingo game.
SECTION 14. Exclusive Operation By Licensee.
A bingo game shall be operated and staffed only by
members of the licensee organization. Such members shall not
receive a profit, wage, or salary from any bingo game. Only the
licensee shall operate such game, or participate in the promotion,
supervision or any other phase of such game.
SECTION'15. Bingo Games Open To Public.
All bingo games shall be open to the public, not just
to the members of the licensee organization.
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SECTION 16. Attendance Limited To Maximum Occupancy.
Notwithstanding that bingo games are open to the public,
attendance at any bingo game shall be limited to the maximum
occupancy of the room in which such game is conducted as
determined by the City Manager of the City in accordance with
applicable laws and regulations. Licensee shall not reserve
seats or space for any person.
SECTION 17. Bingo Games Conducted Only On Licensee's
Property.
A licensee 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 contained herein
shall, however, be construed to require that the property owned
or leased by the organization be used or leased exclusively by
such organization. The license issued under this Ordinance shall
authorize the holder thereof to conduct bingo games only on such
property, the address of which is stated in the application. In
the event the described property ceases to be used as an office
and as a place for performance of the purpose for which the
licensee is organized, the license shall have no further force or
effect. A new license may be obtained by an eligible organization,
upon application under this Ordinance, when such organization
again owns or leases property used by it for an office or for
performance of the purposes for which it is organized.
SECTION 18. Minors Not To Participate.
No person under the age of eighteen (18) years of age
shall be allowed to participate in any bingo game.
SECTION 19. Intoxicated Persons Not To
No person who is obviously intoxicated shall be allowed
to participate in a bingo game.
SECTION 20. Hours Of Operation.
No licensee shall conduct any bingo game more than six
(6) hours out of any twenty-four (24) hour period. No bingo game
shall be conducted before 10:00 A.M. nor after 2:00 A.M. of any
day.
SECTION 21. Participant Must Be Present.
No person shall 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.
SECTION 22. Receipt Of Profit By A Person A Misdemeanor
Under State Law.
It is a misdemeanor under Section 326.5(b) of the Penal
Code of the State of California for any person to receive a
profit, wage, or salary from any bingo game authorized under this
chapter, a violation of which is punishable by a fine not to
exceed Ten Thousand Dollars ($10,000), which fine shall be deposited
in the general fund of the City of San Juan Capistrano.
SECTION 23. City May Enjoin Violation.
The City of San Juan Capistrano may bring an action in
a court of competent jurisdiction to enjoin a violation of
Section 326.5 of the Penal Code or of this Ordinance.
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SECTION 24. Severability.
If any section, subsection or portion of this Ordinance
is for any reason held to be invalid or unconstitutional by the
decision of any court of competent jurisdiction, such decision
shall not affect the validity of the remaining portion of this
Ordinance. The City Council hereby declares that it would have
adopted this Ordinance and each section, subsection or portion
thereof, irrespective of the fact that any one or more sections,
subsections or portion be declared invalid or unconstitutional.
SECTION 25. Effective Date.
This Ordinance shall take effect and be in force 30
days after its passage.
SECTION 26
Clerk's Certification.
The City Clerk shall certify to the adoption of this
Ordinance and cause same to be posted in the duly designated
posting places within the City of San Juan Capistrano within 15
days after its passage.
PASSED, APPROVED AND ADOPTED this 15th day of
February 1 1978 , by the following vote, to wit:
AYES: Councilmen McDowell, Friess, Nash
and Mayor Heckscher
NOES: None
ABSENT: Councilma Sweeney
ATTEST:
G[/
CITY CL
STATE F.CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF SAN JUAN CAPISTRANO )
I, MARY ANN HANOVER, City Clerk of the City of San Juan
Capistrano, California, DO HEREBY CERTIFY that the foregoing is a
true and correct copy of Ordinance No. 351 , which was
introduced at a meeting of the City Council of the City of San Juan
Capistrano, California, held on February 1 1978, and adopted at
a meeting held on February 15 —Z'978
( SEAL)
MARY ANN
ANOV
R,
CITY
CLERK
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