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Ordinance - 1321ORDINANCE NO. 1321 AN ORDINANCE; OF' ",['.'HE CITY COUNCIL OIL' '1 HE CITY OF WEST COVINA ADDING PART 6 TO CHAPTER 3 OF • ARTICLE VI OF THE WEST COVINA. MUNICIPAL CODE TO AUTHORIZE THE ISSUANCE OF PERMITS FOR THE PLAYING OF BINGO TO NON-PROFIT CHARITABLE ORGANIZATIONS CONSISTENT WITH SECTION 19 OF ARTICLE IV OF THE CONSTITUTION The City Council of the City of West Covina does ordain as follows: SECTION 1. Part 6 is hereby added to Chapter 3 of Article VI of the West Covina Municipal Code to read as follows: "Part 6 Bingo for Charitable Purposes 6385. Bingo Games. Definition. A.s used in this Part, "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. 6386. Bingo Game. Authorized. • Bingo may be lawfully played in the City of West Covina pursuant to the provisions of Section 326. 5 of the California Penal Code and this Part and not otherwise. 6387. Permit Required. Any non-profit charitable organization which is located in the City of West Covina and is exempt from the payment of the bank and corporation tax by Section 23701 (d). of the Revenue and Taxation Code and a contribution or gift to which would be a charitable contribution under Section 110 (c) (2) of the Internal Revenue Code of 1954 as amended, may apply to the License Collector for a permit to operate a Bingo Game pursuant to this Part. As used in this part "non-profit charitable organization" means corporations, community chests or trusts', organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary or educational pur- poses 'or for the prevention of cruelty to children or animals. 6388. Application. The application shall be upon a form prescribed by the License Collector, shall be personally signed by three officers of the non-profit charit- able organization or by a person specifically authorized for that purpose by the organization, be accompanied by a copy of the articles of incorporation or other evidence of the charitable nature of the organization and a certificate issued by bath - the State Franchise Tax Board and the United States Coll.-sc for of Internal Revenue certifying to the exempt status of the rlon-profit organization. 6389.' Permit Fee. The application shall be accompanied by a non-refundable permit fee in the amount of $25. 00 which is the amount determined_ by the City Council to be the actual cost of verifying the information in the application and issuing the permit. _ The permit shall not be issued until the License Collector has . verified the facts stated in the application and has determined that the applica- tion meets the requirements of this Part and is entitled to the permit. 6390. Annual Permit Required. Any permit issued pursuant to this Part shall be subject to the conditions contained in Section 326. 5 of the Penal Code and this Part and shall be valid for a period of one year. A new permit can only be obtained upon a,year-to-year basis upon the filing of a new application and the payment of the permit fee. The fact that a permit has been issued to an applicant creates no vested right on the part of the permittee to continue to play bingo. The City Council expressly reserves the right to amend or repeal this enabling ordinance at any time. If this ordinance is repealed, all permits issued pursuant hereto shall cease to be effective for any purpose on the effective date of the repealing ordinance. 6390.1 Conditions. Each permit issued pursuant in this Part shall be issued subject to the following conditions: (a) No minor shall be allowed to participate in any bingo game. • (b) A. bingo game shall be only conducted on property owned or leased by the non-profit charitable organization which holds a valid permit issued pursuant to this Part and which property is .used by such organization for an office or for the performance of the purposes for which the organization is organized. The property shall have been owned or leased and occupied by the non-profit charitable organization for its charitable purposes for a period of at least one year prior to the date of the application for the permit. The permit may be transferred to another location, with permission of the License Collector, if the organization relocates to another property which it owns or leases for an office or for the performance of the purposes for which the organization is organized. (c) All bingo games shall be open to the public and not limited to the members of the non-profit charitable organization. (d) A. bingo .game shall be operated and staffed only by members of the non-profit charitable organization which holds a valid permit issued pursuant to this Part. No member, of the non-profit charitable organization shall receive a profit, wage, or salary from any bingo game. --Only the organi- zation holding a valid permit to conduct a bingo game shall operate such game • or participate in the promotion, supervision, or any other phase of such game. (e) No individual, corporation, partnership, or other legal entity except the organization holding a valid permit issued pursuant to this -Part is authorized to conduct a bingo game or to have a financial interest in the con- duct of such a game. -2- 4 (f) 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 _ funds may be expended only for the use and benefit of the charitable activities of such charitable organization, At the time of the application for the renewal of a permit, the License Collector may require the applicant to file with him a copy of an audit of the special fund or account prepared by a certified public accountant showing the gross `revenue received from all bingo games, the costs incurred in the operation of the games, includ- ing the amounts paid out in connection therewith, the amount deposited in the special fund and any expenditures made from the special fund. No renewal permit shall be issued until a copy of the audit report is filed with the License :z- CollecVcyr if the filing of such a report is required. r (g). 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. (h) The total value of prizes awarded during the conduct of any bingo game shall not exceed $250. 00 in cash or kind or both for each separate game which is held. (i) Bingo games may not be conducted by any permit -tee on more than one day during any one week and no game shall be permitted or conducted before 10:00 a. m. or after 11:30 p.m. of any day. i (j) No commercial sign advertising the playing of bingo may be erected by or on behalf of any permittee and the commerical advertising of the playing of bingo in any newspaper or handbill or upon radio or television is strictly pro- hibited. The Handbill Ordinance of the City of West Covina shall be complied with. Nothing in this section is intended to prohibit notice that bingo will be • conducted at specified times and places in any publication which is distributed to the members of the non-profit organization holding a valid, unrevoked permit issued pursuant to this Part, or the advertising of the time and place at which bingo games will be conducted by means of posters placed in display windows if no payment is made for the right to display such posters. One or more room identification or directional signs may be installed in the interior of any building in which bingo may be played. (k) The non-profit charitable organization to which a,permit to operate a bingo game is issued pursuant to this Part shall be responsible to see that the conditions contained in this Part are complied with by the organization, its officers and members. Any violation of one or more of the conditions of the permit shall constitute cause for its revocation by the City Council. If requested to do so by the organization, the City Council shall hold a public hearing before revoking any permit issued pursuant to this Part. " SECTION 2. This ordinance shall cease to be effective on January 1, 1978. Any permit issued pursuant to this ordinance during the calendar year 1977 shall expire and be of no further force or effect on January 1, 1978, unless this ordinance is re-enacted by the City Council and the permits are expressly extended for the remainder of the term for which they were issued.. • . SECTION 3. The City Clerk shall certify to the passage of this ordinance and shall cause the same to be published as required by law. Passed and approved this 1:3t day of December , 1976. ATTEST: Mayor City Clerk ;:... -3- STATE OF CALIFORNIA, ) COUNTY OF LOS A.NGELES ) SS CITY OF WEST COVINA, ) • I, LELA, W. PRESTON, City Clerk of the City of West Covina, do hereby certify that the foregoing Ordinance No. 1321 was regularly intro- duced and placed upon its first reading at a regular meeting of the City Council on the 22nd day of November 1976. That thereafter, said ordinance was duly adopted and .passed at a regular meeting of the City Council on the 13tb day of December 1976, by the following vote, to wit: AYES: Councilmen: Cbappe,l.l; Sbearer, Tice, Browne,. NOES: Councilmen: Miller ABSENT: Councilmen: None City Clerk APPROVED A.S TO FORM: City Attorney -4-