Ordinance No. 588ORDINANCE NO. 588
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CYPRESS
ADDING CHAPTER 15 -C, TO THE CYPRESS MUNICIPAL CODE, PURSUANT
TO SECTION 19 OF ARTICLE IV OF THE STATE CONSTITUTION, ALLOWING
BINGO GAMES FOR THE BENEFIT OF CHARITABLE ORGANIZATIONS.
THE CITY COUNCIL OF THE CITY OF CYPRESS HEREBY DOES ORDER AS FOLLOWS:
SECTION 1.
The Cypress Municipal Code be, and the same hereby is, amended
by adding thereto Chapter 15 -C, to read as follows:
Chapter 15 -C Bingo Games
SECTION 15C -1. Definition of Bingo.
As used in this chapter, '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 15C -2. License Required.
It shall be unlawful for any person, firm, organization, or
corporation to hold, conduct, participate in, or carry on any bingo game,
without first having applied for and obtained a license from the City.
SECTION 15C -3. Organizations Eligible for License to Conduct Bingo Games.
Only such corporations, community chests or trusts, are eligible
for a license to conduct bingo games which:
(a) are organized and operated exclusively for religious,
charitable, scientific, testing for public safety,
literary or educational purposes, and for the pre-
vention of cruelty to children or animals; and
(b) are exempted from the payment of the bank and corporation
tax by Section 23701d 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
Code of 1954,
(c) own or lease property within the City of Cypress which
is used by such organization for an office or for per-
formance of the purposes for which the organization
is organized.
SECTION 15C -4. Application for License.
Eligible organizations desiring to obtain such license to conduct
bingo games in the City shall file an application in writing therefor with
the Chief of Police on a form provided by the Chief of Police fifteen days
prior to the effective date.
SECTION 15C -5. Contents of Application for License.
Said application for a license shall contain the following:
(a) The name of the applicant organization and a statement that
applicant is an eligible organization under Section 15C -3.
(b) 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.
(c) The particular property within the City including the street
number, owned or leased by the applicant, used by such appli-
cant for an office or for performance of the purposes for
A/A
which the applicant is organized, on which property bingo
games will be conducted, together with the occupancy capa-
city of such place.
(d) Proposed days of week and hours of day for conduct of bingo
games.
(e) That the applicant agrees to conduct bingo games in strict
accordance with the provisions of Section 326.5 of the Penal
Code and this chapter as they may be amended from time to
time, and agrees that the license to conduct bingo games
may be revoked by the Chief of Police upon violation of
any of such provisions.
(f) Said application shall be signed by the applicant under
penalty of perjury.
(g) The license fee fixed by the City Council by resolution
shall accompany the application.
(h) The applicant shall also submit, with its application, a
Certificate or Determination of Exemption under Section
23701d 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 said
Section 23701d.
SECTION 15C -6. Investigation of Applicant.
Upon receipt of the completed application and the fee, the
Chief of Police shall refer the same to interested departments of the City
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 and other applicable restrictions.
SECTION 15C -7. Contents of License.
Upon being satisfied that the applicant is fully qualified here-
under to conduct bingo games, the Chief of Police shall issue a license to
said applicant, which shall contain the following:
(a) The name and nature of the organization to whom the license
is issued;
(b) The address at which bingo games are authorized to be conducted;
(c) The occupancy capacity of the room at which bingo games are
to be conducted;
(d) The times during which bingo games may be conducted;
(e) The date of the expiration of the license; and
(f) Such other information as may be necessary or desirable for
the enforcement of the provisions of this chapter.
SECTION 15C -8. Summary Suspension of License Pending Opportunity for
Hearing - Misdemeanor to Continue After Suspension -
Revocation.
(a) Whenever it appears to the Chief of Police that the licensee
is conducting a bingo game in violation of any of the pro-
visions of this chapter, the Chief of Police shall have the
authority to summarily suspend the license and order the
license to immediately cease and desist any further operation
of any bingo game.
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(b) Any person who continues to conduct a bingo game after
any summary suspension thereof under Subsection (a)
shall be deemed guilty of a misdemeanor and upon con-
viction thereof, shall be punishable by a fine not
exceeding $500 or by imprisonment in jail for a period
not exceeding six 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 days from the date
of such order to request a hearing to determine whether
such license shall be revoked. Failure to request, in
writing, such hearing before the Chief of Police within
said five -day period, shall result in a revocation of
the license.
(d) Upon such request by the licensee, whose license has
been suspended under Subsection (a), for a hearing to
determine whether such license shall be revoked, the
Chief of Police shall provide such hearing within ten
days after receipt of such request at which hearing
the suspended licensee may appear before the Chief of
Police 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 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 ground advanced as the basis of the suspension and
revocation.
SECTION 15C -9. Appeal of Revocation to City Council.
(a) Any holder of a license whose license is revoked under
this chapter 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
appellantor its authorized representative shall have
the right to present evidence and a written or
oral argument, or both, in support of his appeal.
The determination of the City Council on the appeal
shall be final.
(b) 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 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 15C-10. Restrictions on Operations of Bingo Games by
Qualified Licensee.
(a) 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.
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(b) Profits to be Kept 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 licensee shall keep full and accurate records 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 chapter. The City, by and through its authorized officers, shall
have the right to examine and audit such records at any reasonable time;
and licensee shall fully cooperate with the City by making such records
available.
(c) 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.
(d) 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.
(e) Bingo Games Open to Public
All bingo games shall be open to the public, not just to the
members of the licensee organization.
(f) Attendance Limited to Occupancy Capacity
Notwithstanding that bingo games are open to the public, atten-
dance at any bingo game shall be limited to the occupancy capacity
of the room in which such game is conducted. Licensee shall not reserve
seats or space for any person.
(g) Bingo Games Conducted Only on Licensee's Property
The license issued under this chapter 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
purposes 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 chapter, when it
again owns or leases property used by it for an office or for performance
of the purposes for which the organization is organized.
(h) Minors not to Participate
No person under the age of eighteen (18) years of age shall
be allowed to participate in any bingo game.
(i) Intoxicated Persons not to Participate
No person who is obviously intoxicated shall be allowed to
participate in a bingo game.
(j) Hours of Operation
No licensee shall conduct any bingo game more than eight hours
out of any twenty -four hour period and such licensee shall be restricted
to the hours approved on the original application.
(k) 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.
(1) 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.
SECTION 15C -11. City may Enjoin Violation.
The City of Cypress 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 Chapter.
SECTION 2. Severability.
The City Council of the City of Cypress hereby declares that
should any section, paragraph, sentence, or word of this Chapter of the
Code, hereby adopted, be declared for any reason to be invalid, it is the
intent of the Council that it would have passed all other portions of
this Chapter independent of the elimination herefrom of any such portion
as may be declared invalid.
FIRST READ at a regular meeting of the City Council of said City held
on the 13th day of September 1976, and finally adopted and ordered posted
at a regular meeting of said Council held on the 27th day of September 1976.
ATTEST:
CITY CL K O E CIT OF CYPRESS
STATE OF CALIFORNIA ) SS
COUNTY OF ORANGE )
MAYOR OF E CITY OF CYPRESS
I, DARRELL ESSEX, City Clerk of the City of Cypress, DO HEREBY CERTIFY
that the foregoing Ordinance was duly adopted at a regular meeting of the
said City Council held on the 27th day of September 1976; by the following
roll call vote:
AYES: 5 COUNCILMEN: Harvey, Hudson, Lacayo, Sonju and MacLain
NOES: 0 COUNCILMEN: None
ABSENT: 0 COUNCILMEN: None
CITY CLERK OF THE CITY OF CYPRESS