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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. as 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. -2- E�19 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. -3- rolm Limo (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. -4- (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. -5- 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. S= 85 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 -7-