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Ordinance No. 283 ORDINANCE NO. 283 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHINO HILLS, CALIFORNIA, ADDING CHAPTER 5.56 REGARDING THE LICENSING AND REGULATION OF BINGO GAMES WITHIN THE CITY TO THE CHINO HILLS MUNICIPAL CODE. THE CITY COUNCIL OF THE CITY OF CHINO HILLS DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. The City Council hereby makes the following findings of fact: A. This Ordinance is adopted pursuant to Article IV, Section 19, of the California Constitution and Section 326.5 of the Penal Code. B. All legal prerequisites to the adoption of this Ordinance have occurred prior to the adoption of the Ordinance. C. The City Council finds and determines that this Ordinance is not subject to the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq. ("CEQA")) for the following reasons: (1) it will not result in a direct or reasonably foreseeable indirect physical change in the environment (14 Cal. Code Regs. § 15060(c)(2)), (2) there is no possibility that the Ordinance may have a significant effect on the environment (14 Cal. Code Regs. § 15061(b)(3), and (3) the Ordinance does not constitute a "project" as defined in the CEQA Guidelines (14 Cal. Code Regs. § 15378). SECTION 2. Chapter 5.56 (Bingo Games) is hereby added to Title 5 of the Chino Municipal Code to read as follows: Sections: 5.56.010 Short title 5.56.020 Definitions 5.56.030 Eligible Organizations 5.56.040 License Required 5.56.050 Application for License 5.56.060 Eligible Applicant 5.56.070 Contents of Application 5.56.080 Investigation of Applicant 5.56.090 Partial Refund if License Denied 5.56.100 Denial of License—Appeal 5.56.110 Contents of License 5.56.120 License Conditions 5.56.130 Location for Conduct of Bingo Games 5.56.140 Operation and Staffing 1 of 14 5.56.150 Identification Badges 5.56.160 Financial Interest in Licensee Only 5.56.170 Maximum Value of Prizes 5.56.180 Profits Maintained in Separate Fund or Account 5.56.190 Use of Funds 5.56.200 Receipt of Profit by Person Prohibited 5.56.210 Monthly Report of Receipts and Expenditures 5.56.220 Hours of Operation 5.56.230 Bingo Games Open to Public 5.56.240 Minors Not Allowed to Participate 5.56.250 Attendance Limited to Occupancy Capacity 5.56.260 Participant Must be Present 5.56.270 Alcoholic Beverages Prohibited 5.56.280 Intoxicated Persons Not Allowed to Participate 5.56.290 Bingo Cards 5.56.300 Use of Card-Minding Devices 5.56.310 Remote Caller Bingo Prohibited 5.56.320 Summary Suspension of License Pending Opportunity for Hearing— Appeal Procedures 5.56.330 Revocation of License—Alternative Procedure—Appeals 5.56.340 Violations Subject to Injunction 5.56.010 – Short Title The Ordinance codified in this chapter shall be known as the Chino Hills Bingo Ordinance. 5.56.020 – Definitions Unless the particular provision or the context otherwise requires, the definitions herein set forth shall govern the construction, meaning, and application of words and phrases used in this chapter. "Bingo" means a game of chance in which prizes are awarded on the basis of designated numbers or symbols that are marked or covered by the player on a tangible card in the player's possession and that conform to numbers or symbols selected at random and announced by a live caller. "City" means the City of Chino Hills. "City Council" means the City Council of the City of Chino Hills. "License officer" means any employee of the City who is authorized to issue or ensure compliance with applicable license requirements pursuant to this chapter. The license officer may be the Finance Director or any other employee authorized to act in such capacity by the City Manager. 2 of 14 "Organization" means and includes any corporation, firm, entity, partnership or association eligible to conduct bingo games pursuant to the provisions of Section 5.56.030 of this chapter and shall include any applicant hereunder. 5.56.030 — Eligible Organizations The following organizations are qualified to apply to the Finance Department for a license to operate a bingo game consistent with this chapter if the receipts of those games are used only for charitable purposes: A. An organization exempt from taxes imposed under the California Corporation Tax Law by Section 23701a, 23701b, 23701d, 23701e, 23701f, 23701g, 23701k, 237011, or by Section 23701w of the California Revenue and Tax Code. B. A mobile home park association of a mobile home park that is situated in the City. C. A senior citizen organization. D. A charitable organization affiliated with a school district within the City. 5.56.040 — License Required It is unlawful for any organization to conduct bingo games without a license issued pursuant to this chapter. A license issued pursuant to this chapter shall be valid for one year from the date permit was issued, at which time the license shall expire. A new license shall only be obtained upon filing a new application and payment of the license fee. The license fee shall be established by resolution of the City Council. The fact that a license has been issued to an applicant creates no vested right on the part of the licensed organization to continue to offer bingo for play. The City Council expressly reserves the right to amend or repeal this chapter at any time. If this chapter is repealed, all licenses issued pursuant to this chapter shall cease to be effective for any purpose on the effective date of the repealing resolution. 5.56.050 —Application for License An eligible organization seeking to obtain a license to conduct bingo games in the City shall file an application in writing therefor in the office of the Finance Department on a form to be provided by the Finance Department. The issuing authority shall be the license officer. 5.56.060 — Eligible Applicant No license shall be issued to any organization unless such applicant is an eligible organization under Section 5.56.030 and the application conforms to the requirements, terms and conditions of this chapter and California law. 3 of 14 5.56.070 —Contents of Application The application shall be in a form prescribed by the Finance Department and shall be accompanied by a license fee. The following documentation shall be attached to the application, as applicable: (1) A certificate issued by the Franchise Tax Board certifying that the applicant is exempt from the payment of taxes pursuant to the one of the provisions of the California Revenue and Taxation Code set forth in Section 5.56.030(A). In lieu of a certificate issued by the Franchise Tax Board, the Finance Department may refer to the Franchise Tax Board's internet website to verify that the applicant is exempt from the payment of taxes pursuant to the provisions of Section 5.56.030(A); (2) Other evidence as the Finance Department determines is necessary to verify that the applicant is a duly organized mobile home park association of a mobile home park situated in the City, a qualified senior citizen organization, or a charitable organization affiliated with a school district within the City; (3) The name and signature of at least two officers, including the presiding officer of the organization, and the trustee of any trust; (4) A statement as to whether or not the applicant officers have been convicted of any crime, misdemeanor, or violation of any municipal ordinance, the nature of the offense, and the punishment or penalty assessed therefor; (5) The particular property within the City, including the street number, owned, leased or used by the applicant, or property whose use is donated to the organization, used by such applicant for an office or for performance of the purposes for which the applicant is organized, on which property bingo games will be conducted, together with the occupancy capacity of such place; (6) Proposed day(s) of week and hours of day for conducting bingo games; (7) A statement that the applicant agrees to conduct bingo games in strict accordance with the provisions of California Penal Code Section 326.5 and this chapter as the same may be amended from time to time hereafter, and agrees that the license to conduct bingo games may be revoked upon violation of any of such provisions; (8) A statement that the applicant agrees to pay, on a monthly basis, an additional fee for law enforcement and public safety costs incurred by the City that are directly related to bingo activities conducted by the applicant. 4 of 14 Any such law enforcement and public safety fee shall not exceed the actual costs incurred by the City in providing the service; (9) The application shall be signed by the applicant under penalty of perjury. 5.56.080 – Investigation of Applicant Upon receipt of the completed application and the fee required thereof, the license officer shall refer the same to interested departments of the City including, but not limited to, the City Attorney, City Manager, Community Services Director, Police Chief, and the Fire Department for investigation as to whether or not all the statements in the application are true, and whether or not the property of the applicant qualifies, and the extent to which it qualifies as property on which bingo games may lawfully be conducted as to fire, occupancy, zoning, off-street parking and other applicable restrictions. 5.56.090 – Partial Refund if License Denied If an application for a license is denied, one half of the license fee paid shall be refunded to the organization. 5.56.100 – Denial of License—Appeal A. The denial of a license application may be appealed to the City Manager provided the appeal is made in writing within five (5) calendar days of the denial. The City Manager shall provide a hearing within thirty (30) calendar days after receipt of such request. Notice of the hearing shall be provided at least seven (7) calendar days before the hearing by depositing in the United States Mail a notice directed to the applicant at the address given in the application. The date of the hearing may be continued by the City Manager for good cause. The applicant may appear before the City Manager for purposes of presenting evidence as to why the license should be issued. The City Manager's decision shall be given in writing to the applicant by depositing a copy thereof in the United States Mail within fifteen (15) calendar days of the conclusion of the hearing. The City Manager's decision shall set forth the grounds for denial. B. Any organization whose license application is denied by the City Manager under subsection A of this section shall have the right to appeal the City Manager's decision to the City Council in accordance with the procedures set forth in Chapter 1.20 of the Chino Hills Municipal Code. However, such organization shall not conduct any bingo games in the City unless and until such time as the City Council, on appeal, issues a written notice of decision overruling the decision of the City Manager and approving the license. Any organization whose license application is finally denied may not again apply for a license to conduct bingo games for a period of six (6) months from the date of such denial; provided, however, if the ground for denial is cancellation of the exemption 5 of 14 granted under any applicable section of the Revenue and Taxation Code, such organization may again apply for a license upon any qualifying exemption. 5.56.110 —Contents of License Upon being satisfied that the applicant is fully qualified under law to conduct bingo games in the City, the license officer 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 occupancy capacity of the room in which bingo games are to be conducted; (4) The date of the expiration of said license; and (5) Such other information as may be necessary or desirable for the enforcement of the provisions of this chapter. 5.56.120 — License Conditions A. Any license issued pursuant to this chapter shall be subject to the conditions contained in California Penal Code Sections 326.3 and 326.4, as applicable, and any regulations as promulgated and enforced by the Department of Justice or other designated agency, and each licensed organization shall comply with the requirements of those provisions. B. Each license issued pursuant to this chapter shall be subject to the following additional conditions: (1) Bingo games shall not be conducted by any licensed organization on more than one day during any week. (2) The licensed organization is responsible for ensuring that the conditions of this chapter and California Penal Code Section 326.5 are complied with by the organization, its officers and members, and all bingo participants. A violation of any one or more of those conditions or provisions shall constitute cause for the revocation of the organization's license. C. Bingo games may not be held upon any property where such a use is not permitted by right in the zoning district in which said property is located unless the Community Development Director determines that the use closely corresponds to a listed use that is permitted by right in the zone. 6 of 14 5.56.130 — Location for Conduct of Bingo Games A licensed organization shall conduct bingo games only on property owned or leased by it, or property whose use is donated to the organization, and which property is used by that organization for an office or for performance of the purposes for which the organization is organized. The license issued under this chapter shall authorize the holder thereof to conduct bingo games only on the property address which is indicated on the license. In the event the described property ceases to be used as a place for performance of the purposes of conducting bingo games, the license shall immediately terminate and have no further force or effect. A new license may be obtained by an eligible organization, upon application and satisfaction of the requirements of this chapter. 5.56.140 — Operation and Staffing A bingo game shall be operated and staffed only by members of the licensed organization. Such members shall not receive a profit, wage, or salary from any bingo game. Only the licensed organization shall operate such game, or participate in the promotion, supervision or any other phase of such game except as otherwise permitted by California Penal Code Section 326.5. This section 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. Security personnel employed by the organization conducting the bingo game may be paid from the revenues of bingo games, as provided in Section 5.56.190. 5.56.150 — Identification Badges All organizations issued a valid license pursuant to this chapter shall, during the operation of any bingo game, provide for each person of the organization involved in direct operation thereof an identification badge indicating the member is in good standing in the organization and authorized to be a bingo game operator. Said identification badges shall receive the approval of the license officer as to form prior to issuance. Identification badges shall be worn on an outer garment in a clearly visible location at all times when an individual is serving as an operator of a bingo game. Identification badges may be issued by an organization at any time after a valid license has been issued. 5.56.160 — Financial Interest in Licensee Only No individual, corporation, partnership, or other legal entity, except the licensed organization, shall hold a financial interest in the conduct of bingo games. 5.56.170— Maximum Value of Prizes The total value of prizes available to be awarded during the conduct of any bingo games shall not exceed five hundred dollars ($500) in cash or kind, or both, for each separate game which is held. 7 of 14 5.56.180 — Profits Maintained in Separate Fund or Account 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. The licensed organization 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 phases of bingo games which are authorized by this chapter. The City, by and through its authorized officers, shall have the right to examine and audit such record at any reasonable time. The licensed organization shall fully cooperate with the City by making such record available. 5.56.190 — Use of Funds All profits and proceeds derived from bingo games shall be kept and used in a manner consistent with Penal Code section 326.5, subdivisions 0) and (k). 5.56.200 — Receipt of Profit by Person Prohibited It is a misdemeanor under California Penal Code section 326.5(b) for any person to receive a profit, wage or salary from any bingo game authorized under this chapter. Violations of Penal Code section 326.5(b) are punishable by a fine not to exceed ten thousand dollars ($10,000), which fine shall be deposited in the general fund of the City. 5.56.210 — Monthly Report of Receipts and Expenditures On or before the fifteenth day of each month following any calendar month in which bingo games were conducted, the licensee shall report in writing to the license officer, on forms provided for such purpose, an accounting of all bingo game receipts and expenditures for the immediate proceeding calendar month. 5.56.220 — Hours of Operation No bingo game shall be conducted before 8:00 a.m. or after 10:00 p.m. on any day. 5.56.230 — Bingo Games Open to Public All bingo games shall be open to the public, not just to the members of the licensed organization. 5.56.240 — Minors Not Allowed to Participate No person under the age of eighteen shall be allowed to participate in any bingo game. 8 of 14 5.56.250 —Attendance Limited to Occupancy Capacity Notwithstanding that bingo games are open to the public; 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 Fire Department and Building Department of the City and in accordance with applicable laws and regulations. No licensed organization shall reserve seats or space for any person. Nothing in this section shall be construed as limiting the licensed organization's ability to ensure accommodations are available for disabled participants. 5.56.260 — 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 at which the bingo game is being conducted. 5.56.270—Alcoholic Beverages Prohibited No person shall sell or consume, nor shall any licensed organization permit the sale or consumption of, any alcoholic beverage on the premises where licensed bingo games are occurring. 5.56.280— Intoxicated Persons Not Allowed to Participate No person who is obviously intoxicated shall be allowed to participate in a bingo game. 5.56.290 — Bingo Cards The winning bingo cards shall not be known prior to the game by any person participating in the playing or operation of the bingo game. All preprinted cards shall bear the legend: "For sale or use only in a bingo game authorized under California law and pursuant to local ordinance." Only a covered or marked tangible card possessed by a player and presented to an attendant may be used to claim a prize. 5.56.300 — Use of Card-Minding Devices Hand-held, portable card-minding devices described in, and compliant with, subdivision (p) of Penal Code section 326.5 may be used by players who are physically present at a bingo game to assist in monitoring the numbers of symbols announced by a live caller as those numbers or symbols are called in a live game. Card-minding devices may not be used in connection with any game where a bingo card may be sold or distributed after the start of the ball draw for that game. 9 of 14 5.56.310 — Remote Caller Bingo Prohibited Remote caller bingo is prohibited in the City. 5.56.320— Summary Suspension of License Pending Opportunity for Hearing—Appeal Procedures A. Whenever the license officer or the Chief of Police has good cause to believe that the licensee is conducting a bingo game in violation of any of the provisions of this chapter or of Penal Code section 326.5, the license officer or Chief of Police 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 of this section, shall be guilty of a misdemeanor and conviction thereof shall be punishable by a fine not exceeding one thousand dollars ($1,000), or by imprisonment in jail for a period not exceeding six (6) months, or by both such fine and imprisonment. C. The order issued under subsection A of this section shall notify the licensee that it shall have ten (10) calendar days from the date of such order to request a hearing before the City Manager to determine whether the license may be reinstated. If the licensee fails to timely exhaust its administrative hearing option under this subsection, the license will be deemed revoked and the licensee shall have no further remedy. Any organization whose license is finally revoked may not again apply for a license to conduct bingo games in the City for a period of two (2) years from the date of such revocation; provided, however, if the ground for revocation is cancellation of the exemption granted under any applicable section of the Revenue and Taxation Code, such organization may again apply for a license upon proof of reinstatement of said exemption or upon proof of qualification for any other qualifying exemption. D. If a timely request for a hearing is made by any licensee whose license has been suspended pursuant to subsection A of this section, the City Manager shall provide such hearing within fifteen (15) calendar days after receipt of such request. The date of the hearing may be continued by the City Manager for good cause. The licensee may appear before the City Manager for purposes of presenting evidence as to why the license should not be revoked. If a timely request for hearing has been made pursuant to subsection C of this section, no license shall be revoked unless notice of the time and place for such hearing has first been given at least seven (7) calendar days before the hearing 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. Any decision by the City Manager to revoke said license shall be given in writing to the licensee by depositing a copy thereof in the United States Mail within fifteen (15) 10 of 14 calendar days of the conclusion of the hearing. The City Manager's decision shall set forth the grounds for revocation. E. Any organization whose license is revoked by the City Manager under subsection D of this section shall have the right to appeal the City Manager's decision to the City Council in accordance with the procedures set forth in Chapter 1.20. However, such organization shall not conduct any bingo game in the City unless and until such time as the City Council, on appeal, issues a written notice of decision overruling the decision of the City Manager and reinstating the license. Any organization whose license is finally revoked may not again apply for a license to conduct bingo games in the City for a period of two (2) years from the date of such revocation; provided, however, if the ground for revocation is cancellation of the exemption granted under any applicable section of the Revenue and Taxation Code, such organization may again apply for a license upon proof of reinstatement of said exemption or upon proof of qualification for any other qualifying exemption. 5.56.330 — Revocation of License—Alternative Procedure—Appeals A. Whenever the City Manager has good cause to believe that the licensee is conducting bingo games in violation of any of the provisions of this chapter, or of Penal Code section 326.5, or that the license was obtained by fraudulent representation, and no summary suspension is ordered pursuant to section 5.56.320, the license may be revoked; provided, however, the licensee may appear before the City Manager at the time and place 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 has first been given at least seven (7) calendar days before the hearing thereon by depositing in the United States Mail a notice directed to the licensee at the address given in the application. The notice shall set forth a summary of the grounds advanced as the basis for the revocation. Any decision by the City Manager to revoke the license shall be given in writing to the licensee by depositing a copy thereof in the United States Mail within fifteen (15) calendar days of the conclusion of the hearing. The City Manager's decision shall set forth the grounds for revocation. B. Any organization whose license is revoked by the City Manager under subsection A of this section shall have the right to appeal the City Manager's decision to the City Council in accordance with the procedures set forth in Chapter 1.20. However, such organization shall not conduct any bingo game in the City unless and until such time as the City Council, on appeal, issues a written notice of decision overruling the decision of the City Manager and reinstating the license. Any organization whose license is finally revoked may not again apply for a license to conduct bingo games in the City for a period of two (2) years from the date of such revocation; provided, however, if the ground for revocation is cancellation of the exemption granted under any applicable section of the Revenue and Taxation Code, such organization may again apply for a license 11 of 14 upon proof of reinstatement of said exemption or upon proof of qualification for any other qualifying exemption. 5.56.340 —Violations Subject to Injunction The City may bring an action to enjoin a violation of Penal Code section 326.5 or of this chapter. SECTION 3. If any part of this Ordinance or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end, the provisions of this Ordinance are severable. SECTION 4. This Ordinance must be broadly construed in order to achieve the purposes stated in this Ordinance. It is the City Council's intent that the provisions of this Ordinance be interpreted or implemented by the City and others in a manner that facilitates the purposes set forth in this Ordinance. SECTION 5. Upon the effective date of this Ordinance, the provisions hereof shall supersede any inconsistent or conflicting provisions of the San Bernardino County Code, as the same were adopted by Reference by City Ordinance Nos. 91-01 and 92- 02, including, but not limited to, Title 4, Division 1, Chapter 17 (Bingo Games) of the San Bernardino County Code SECTION 6. If any section, subsection, subdivision, sentence, clause, phrase, 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 portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance, and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portion thereof be declared invalid or unconstitutional. SECTION 7. The City Clerk shall certify as to the adoption of this Ordinance and shall cause a summary thereof to be published within fifteen (15) days of the adoption and shall post a certified copy of this Ordinance, including the vote for and against the same, in the Office of the City Clerk, in accordance with Government Code Section 36933. SECTION 8. This Ordinance will take effect on the 30th day following its final passage and adoption. 12 of 14 PASSED, APPROVED, AND ADOPTED this 28th day of April , 2015. CYNTHI9NIA ORAN, MAYOR ATTEST: CHERYL BALZ, CITY CLERK APPROVED AS TO FORM: c------7 j_ t.._, .. ----"t4--,1.17--------- MARK HENSLEY, CITY ATTORNEY 13 of 14 STATE OF CALIFORNIA COUNTY OF SAN BERNARDINO ) ss CITY OF CHINO HILLS I, CHERYL BALZ, City Clerk of the City of Chino Hills, DO HEREBY CERTIFY that Ordinance No. 283 was duly introduced at a regular meeting held April 14, 2015; and adopted ata regular meeting of the City Council held on the 28th day of April, 2015 by the following roll call vote, to wit: AYES: COUNCIL MEMBERS: MORAN, GRAHAM, MARQUEZ, ROGERS. NOES: COUNCIL MEMBERS: NONE ABSENT: COUNCIL MEMBERS: BENNETT CHERYL BALZ, CITY CLERK (SEAL) I hereby certify that the foregoing is the original of Ordinance No. 283 duly passed and adopted by the Chino Hills City Council at their regular meeting held on April 28, 2015, and that Summaries of the Ordinance were published on April 18, 2015 and May 2, 2015 in the Chino Hills Champion newspaper. ' far4 CHERYL BALZ, CITY CLERK (SEAL) 14 of 14 AFFIDAVIT OF POSTING STATE OF CALIFORNIA CITY OF CHINO HILLS ) §. COUNTY OF SAN BERNARDINO ) Cheryl Balz, being first duly sworn, deposes and says: That she is the duly appointed and qualified City Clerk of the City of Chino Hills; That in compliance with the State laws of the State of California, a certified copy of the full text of proposed Ordinance No. 283, being: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHINO HILLS, CALIFORNIA, ADDING CHAPTER 5.56 REGARDING THE LICENSING AND REGULATION OF BINGO GAMES WITHIN THE CITY TO THE CHINO HILLS MUNICIPAL CODE. attached hereto and made a part hereof, was caused to be posted in the Office of the City Clerk. Dated this 28th day of April, 2015. 040. CHERYL BALZ, OFfl CLEW"' (SEAL)