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HomeMy Public PortalAbout7G Second Reading and Adoption of Ordinance No. 14-997 Remote Caller BingoAGENDA ITEM 7.G COMMUNITY DEVELOPMENT DEPARTMENT MEMORANDUM DATE: January 6, 2015 TO: · The Honorable City Council FROM: Bryan Cook, City Manager By: Michael D. Forbes, Community Development Director ~ SUBJECT: SECOND READING AND ADOPTION OF ORDINANCE NO. 14-997 AMENDING ARTICLE F OF CHAPTER 1 OF TITLE 4 OF THE TEMPLE CITY MUNICIPAL CODE RELATIVE TO REMOTE CALLER BINGO RECOMMENDATION: The City Council is requested to waive further reading and adopt Ordinance No. 14-997 (Attachment "A") amending Article F of Chapter 1 of Title 4 of the Temple City Municipal Code (TCMC) relative to remote caller bingo. BACKGROUND: On December 16, 2014, the City Council voted 3-2 to introduce Ordinance No. 14-997 for first reading, by title only, amending Article F of Chapter 1 of Title 4 of the TCMC to authorize remote caller bingo games in Temple City . The City Council directed staff to revise the ordinance for second reading to correct a typographical error. ANALYSIS: As introduced by the City Council, Ordinance No. 14-997 would authorize qualified nonprofit organizations in Temple City to conduct remote caller bingo games pursuant to state law. Remote caller bingo is discussed in greater detail in the December 16, 2014, City Council staff report (Attachment "B"). CONCLUSION: Adopting the proposed ordinance to allow remote caller bingo in Temple City would provide local nonprofit organizations with an opportunity to raise additional funds through bingo games and provide more incentive for bingo players in the form of increased jackpots. Remote caller bingo is regulated by state law and state agencies, but must be authorized by local ordinance. City Council January 6, 2015 Page 2 of 2 FISCAL IMPACT: Adoption of Ordinance No. 14-997 would have minimal fiscal impact as the number of remote caller bingo games is expected to be small and the license fee ($50 maximum allowed under state law) would be the same as the existing bingo license. As such, the additional revenue would be negligible. ATTACHMENTS: A. Ordinance No. 14-997 B. City Council staff report from December 16, 2014 ATTACHMENT A ORDINANCE NO. 14-997 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMPLE CITY, CALIFORNIA, AMENDING ARTICLE F BINGO GAMES OF CHAPTER 1 OF TITLE 4 OF THE TEMPLE CITY MUNICIPAL CODE THE CITY COUNCIL OF THE CITY OF TEMPLE CITY HEREBY ORDAINS AS FOLLOWS: SECTION 1: Article F of Chapter 1 of Title 4 of the Municipal Code of the City of Temple City is hereby amended to read as set forth in Exhibit "A" to this Ordinance. SECTION 2: This ordinance is exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to Section 15061 (b)(3) of the State CEQA Guidelines. SECTION 3: The City Council hereby declares that, should any provision, section, subsection, paragraph, sentence, clause, phrase, or word of this Ordinance or any part thereof, be rendered or declared invalid or unconstitutional by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, such decision or action shall not affect the validity of the remaining section or portions of the Ordinance or part thereof. The City Council hereby declares that it would have independently adopted the remaining provisions, sections, subsections , paragraphs, sentences, clauses, phrases, or words of this Ordinance irrespective of the fact that any one or more provisions, sections, subsections , paragraphs, sentences, clauses, phrases, or words may be declared invalid or unconstitutional. SECTION 4: The City Clerk shall certify to the passage and adoption of this Ordinance and to its approval by the Mayor and shall cause the same to be published according to law. PASSED, APPROVED, AND ADOPTED this 6th day of January 2015. MAYOR ATTEST: APPROVED AS TO FORM: CITY CLERK CITY ATIORNEY I, Peggy Kuo, City Clerk of the City of Temple City, hereby certify that the foregoing Ordinance No. 14-997 was introduced at the regular meeting of the City Council of the City of Temple City held on the 16th day of December 2014, and was duly passed, approved and adopted by said Council at the regular meeting held on January 6th, 2015 by the following vote: AYES: NOES: ABSENT: ABSTAIN: City Clerk Councilmember- Councilmember- Councilmember- Councilmember- Ordinance No. 14-997 Page 2 of 4 EXHIBIT "A" Article F of Chapter 1 of Title 4 of the Temple City Municipal Code is hereby amended to read as follows. TITLE 4-LAW ENFORCEMENT CHAPTER 1 -UNLAWFUL CONDUCT ARTICLE F. BINGO GAMES 4-1 F-0: BINGO AUTHORIZED: Pursuant to the authority granted by Section 19 of Article IV of the California Constitution and Sections 326.3 through 326.5 of the California Penal Code, the City hereby authorizes bingo games to be conducted within the City consistent with the provisions of this article. The provisions of this article shall be interpreted to be consistent with Sections 326.3 through 326.5 of the California Penal Code. To the extent there are any inconsistencies, Sections 326.3 through 326.5 of the California Penal Code shall prevail. 4-1 F-1: DEFINITIONS: Words and phrases used herein shall be interpreted as set forth in this section. "Bingo" means 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. "Card-minding devices" means hand-held, portable devices to assist in monitoring the numbers or symbols announced by a live caller as those numbers or symbols are called in a live game. "Department" means the Department of Justice. "On-Site Bingo" means a bingo game where the live caller is physically present at the same location as all of the bingo players. "Person" includes a natural person, corporation , limited liability company, partnership, trust, joint venture, association, or any other business organization. "Remote Caller Bingo" means a bingo game in which the numbers or symbols on randomly drawn plastic balls are announced by a natural person present at the site at which the live game is conducted, and the organization conducting the bingo game uses aud io and video technology to link any of its in-state facilities for the purpose of transmitting the remote calling of a live bingo game from a single location to multiple locations owned, leased, or rented by that organization, or as described in subdivision (o) of Penal Code section 326.3. 4-1 F-2: LICENSE REQUIRED: A. License Required. A license from the City is required to conduct a bingo game within the City. No person shall conduct a bingo game within the City without a license from the City. B. Eligibility for License. The following organizations are eligible to obtain a bingo license from the City: 1. An organization exempt from the payment of the taxes imposed under the Corporation Tax Law by Section 23701 a, 23701 b, 23701 d, 23701 e, 23701f, 23701 g, 23701 k, 237011, or 23701w of the Revenue and Taxation Code. 2. A mobilehome park association of a mobilehome park that is situated in the City of Temple City. Ordinance No. 14-997 Page 3 of 4 3. Senior citizen organizations. 4 . Charitable organizations affiliated with a school district. C. Additional Eligibility Criteria for Remote Caller Bingo License. If an organization eligible for a license under paragraph B seeks a license to conduct remote caller bingo, the organization must also meet the following requirements to be eligible for a license: 1. The organization has been incorporated or in existence for three (3) years or more. 2 . The operation of bingo is not the primary purpose for which the organization is formed. D. Application. The application shall be in a form prescribed by the City and shall be accompanied by a $50.00 nonrefundable license fee. The City shall require the applicant to provide any such information and documentation as deemed necessary by the City to verify the applicant's eligibility for a bingo license. E. Issuance and Term of License. The license shall not be issued until the City has verified the facts stated in the application and determined that the applicant is qualified. A license issued pursuant to this section shall be valid until the end of the calendar year , 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 . F. Denial of License. If a license application is denied , the applicant will be refunded half of the license fee. G. Revocation of License. The fact that a license has been issued to an applicant creates no vested right on the part of the licensee to continue to conduct bingo games within the City. Any violation of any of the provisions of this article or of Penal Code Sections 326.3 through 326.5, inclusive, shall constitute grounds for revocation of a license to conduct a bingo game and may further constitute grounds for the denial to the applicant or licensee of any future license to conduct additional bingo games within the city. At the request of the organization, the City Council shall hold a public hearing before revoking any license issued pursuant to this article. 4-1 F-3 CONDITIONS APPLICABLE TO ALL BINGO GAMES: A. Use of Proceeds. All proceeds from bingo games shall be kept in a special fund or account and shall not be commingled with any other funds. The proceeds of bingo games shall only be used for charitable purposes, except as follows: 1. The proceeds may be used for prizes. 2. Up to 20% of the proceeds before the deduction for prizes or $2,000, whichever is less, may be used for the rental of property and for overhead. 3. The proceeds may be used to pay license fees. B. Minors Prohibited . Minors shall not be allowed to participate in any bingo game. C. Location of Games. An organization licensed to conduct bingo games shall conduct a bingo game 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 . Nothing in this subdivision shall be construed to require that the property owned or leased by, or whose use is donated to , the organization be used or leased exclusively by, or donated exclusively to, that organization. D. Public Participation. All bingo games shall be open to the public, not just to the members of the authorized organization. A person shall not be allowed to participate in a bingo game unless the person is physically present at the time and place where the bingo game is being conducted. E. Staffing. A bingo game shall be operated and staffed only by members of the authorized organization that organized it. Only the organization authorized to conduct a bingo game shall operate such a game, or participate in the promotion , supervision, or any other phase of a bingo game. This subdivision does not preclude the employment of security personnel who are not Ordinance No. 14-997 Page 4 of 4 members of the authorized organization at a bingo game by the organization conducting the game. F. Third Party Interests. No individual, corporation , partnership, or other legal entity, except the organization authorized to conduct a bingo game, shall hold a financial interest in the conduct of a bingo game. G. Card-Minding Devices. Players may use card-minding devices subject to the following provisions: 1. Card-minding devices may not be used in connection with any bingo game where a bingo card may be sold or distributed after the start of the ball draw for that game. 2. The card-minding device has been approved by the Department as meeting the requirements of Penal Code Section 326.5(p). H. Signs. No signs shall be permitted advertising any bingo game at any location, except one sign on the site not to exceed six (6) square feet only during the day of the game. I. Frequency and Hours. No location shall be used to, nor shall any licensee, conduct bingo games more often than one day per week. All games shall be conducted only between the hours of ten o'clock (10:00) A.M. to eleven fifty nine o'clock (11:59) P.M. J. No Payment of Wages . No person shall receive or pay a profit, wage, or salary from any bingo game , except as allowed by Penal Code Sections 326.3(d) and 326.5(b). 4-1 F-4 CONDITIONS APPLICABLE TO ON-SITE BINGO: The total value of prizes awarded during the conduct of any bingo game shall not exceed five hundred dollars ($500.00) in cash or kind, or both, for each separate game which is held. 4-1F-5 CONDITIONS APPLICABLE TO REMOTE CALLER BINGO: A. Maximum Participation. No more than 750 people may participate in a remote caller bingo game in a single location, except as authorized by Penal Code Section 326.30)(3) for remote caller bingo games for the relief of victims of a disaster or catastrophe. B. Notice to Police. The organization operating a remote caller bingo site within the City shall provide the City's police department at least thirty (30) days written notice of its intent to conduct a remote caller bingo game. The notice shall contain all of the information required by Penal Code Section 326.30)(4). C. Co-Sponsors. An organization shall not cosponsor a remote caller bingo game with one or more other organizations except as allowed under Penal Code Section 326.3(o). All cosponsors must have a bingo license from the City. D. Cash Prizes. The value of prizes awarded during the conduct of any remote caller bingo game shall not exceed 37% of the gross receipts for that game. Gross receipts shall be calculated in accordance with Penal Code Section 326.3(p). Every remote caller bingo game shall be played until a winner is declared. Progressive prizes are prohibited. Prizes shall be paid by check only in accordance with Penal Code Section 326.3(p). 4-1 F-6 PENALTIES AND ENFORCEMENT: Violation of any of the provisions of this article shall be punishable as a misdemeanor in the manner provided in this code. Notwithstanding the foregoing, a violation of Section 4-1 F-3(J) is a misdemeanor and shall be punishable by a fine not to exceed ten thousand dollars ($1 0,000), which fine shall be deposited in the general fund of the city. ATTACHMENT B COMMUNITY DEVELOPMENT DEPARTMENT MEMORANDUM DATE: Dece mbe r 16, 2014 TO: The Honorable City Council FROM: Bryan Cook, City Manager By: Michael D. Forbes , Community Development Director SUBJECT: INTRODUCTION AND FIRST READING OF ORDINANCE NO. 14-997 - AMENDING ARTICLE F OF CHAPTER 1 OF TITLE 4 OF THE TEMPLE CITY MUNICIPAL CODE RELATIVE TO REMOTE CALLER BINGO RECOMMENDATION: The City Council is requested to: a) Introduce Ordinance No. 14-997 (Attachment "A") for first reading by title only, amending Article F of Chapter 1 of Title 4 of the Temple City Municipal Code (TCMC) relative to remote caller bingo ; b) Waive further reading of Ordinance No . 14-997; and c) Schedule the second reading of Ordinance No. 14-997 for January 6 , 2015 . BACKGROUND : 1. In 2008, the Legislature passed and the Governor signed Senate Bil l 1369 , known as the Ca l iforn ia Remote Caller Bingo Act. This act authorizes c ities to adopt an ordinance allowing remote caller bingo games within their city limits pursuant to the requirements of the California Penal Code. If authorized by the city , nonprofit organizations may conduct remote caller bingo games where the bingo caller is located at a remote location and not on-site . Remote caller bingo is regulated by the State of California but games can only be conducted if authorized by local ordinance. 2 . On Apri l 4, 2014 , the City Code Review Standing Committee discussed remote cal ler bingo. The committee decided to continue the discussion to a future date and requested that staff provide additional information , including whether any local organizations had expressed an interest in conducting a remote caller bingo game. City Council December 16, 2014 Page 2 of 3 3 . On September 11 , 2014 , Mayor Blum, Mayor Pro Tern Chavez, and staff met with representatives from St. Luke to discuss the church's interest in conducting a remote caller bingo game. 4. On October 20, 2014, the City Code Review Standing Committee again discussed remote caller bingo in light of the interest from St. Luke. The committee directed staff to prepare an ordinance for City Council consideration. ANALYSIS: Remote caller bingo is generally played in the same manner as traditional bingo, except that the game is played simultaneously at multiple locations with a single caller located off-site . A third party company runs the bingo game and provides the bingo caller for all nonprofit locations that have contracted with the company . The bingo calls are transmitted via closed circuit video or audio feed to the various locations where the game is being played. Bingo jackpots are based upon the number of players at all locations combined, which results in larger jackpots than those typically available in games played individually at separate locations. Under state law, funds collected from player buy-in at remote caller bingo games must be distributed as follows: • 37 percent to jackpot payouts (pooled among all sites playing the game); • 43 percent (minimum) to the nonprofit organization conducting the game (per site ; not pooled); and • 20 percent (maximum) to the company running the game. Buy-in funds are collected at remote caller bingo games in the same manner as traditional bingo. Since jackpots are based on pooled funds , jackpots are not paid out at the bingo game ; checks are mailed to jackpot winners the following day . Under the state Constitution and state law, traditional bingo games are regulated by cities at the local level and are not regulated by the state . The TCMC currently allows nonprofit organizations to conduct traditional bingo games subject to certain limitations (TCMC Title 4, Chapter 1, Article F). Remote caller bingo games are regulated by the California Gambling Control Commission , and game callers and operators must be licensed by the state. However, state law requires remote caller bingo games to be authorized by local ordinance before a nonprofit organization can participate in a game. The TCMC does not currently contain any provisions allowing remote caller bingo. Remote caller bingo games are attractive to nonprofit organizations because they allow for greater income than is typical from a traditional bingo game. In traditional bingo games, all jackpot money is paid from the on-site buy-in funds. This can result in little to no income for th e organization conducting the game, depending on the number of players. With remote caller bingo, at least 43 percent of the buy-in funds at each individual site are guaranteed income to the organization hosting the game. This typically results in greater income for the organization, even with relatively fewer players City Council December 16, 2014 Page 3 of 3 on-site. In both traditional and remote caller games, additional income can be made from side games such as pull-ta bs. Staff discussed the proposed ordinance with Los Angeles County Sheriff's Department staff to determine if there were any law enforcement concerns related to remote caller bingo . Sheriff's staff stated that their only concern with remote caller bingo was the same as for traditional bingo, that the games are a potential robbery target due to the potential for large amounts of cash on -si te. Staff believes that this concern is no greater for remote calle r bingo than traditional bingo. Further, staff notes that unlike traditional bingo, jackpots are paid by check after the game and are not paid in cash at the game, so players will not be leaving w ith cash. Staff believes that any impacts from remote caller b in go related to parking, traffic, noise, and similar types of issues would be the same as for traditional bingo games. Since the City already allows for traditional bingo, staff believes it would be appropriate to also allow remote caller bingo. Based on feedback from the City Code Review Standing Committee, staff is recommending that the current limitation on days and times of traditional bingo games also be applied to remote caller bingo; that is, each organization or location may only conduct bingo games one day per week, and bingo games must be conducted between 10:00 a.m. and 11:59 p.m. The proposed ordinance includes additional changes to reorganize the code, but none of the changes are substantive. CONCLUSION: Adopting the proposed ordinance to allow remote caller bingo in Temple City would provide local nonprofit organizations with an opportunity to raise additional funds through bingo games and provide more incentive for bingo players in the form of increased jackpots . Remote caller bingo is regulated by state law and state agenc ies, but must be authorized by local ordinance. FISCAL IMPACT: The proposed ordinance would have minimal fiscal impact in the form of increased revenue from license fees that would be required from nonprofit organizations wishing to conduct remote caller bingo games. However the number of remote caller bingo games is expected to be small, and the license fee would be $50 (the maximum allowed under state law), so the additional revenue would be negligible . Further, additional staff time and resources would be required to process the license applications. ATTACHMENT: A. Ordinance No. 14-997