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HomeMy WebLinkAboutOrdinance No. 97-O30 0 ORDINANCE NO.97-03 (URGENCY) AN URGENCY ORDINANCE OF THE CITY OF AZUSA, CALIFORNIA, AMENDING ARTICLE II OF CHAPTER 46 OF THE AZUSA MUNICIPAL CODE CONCERNING BINGO REGULATIONS WHEREAS, in accordance with Article IV, Section 19 of the California Constitution, the City of Azusa ("City") may under its police powers decide whether to provide for and regulate bingo operations within the City limits; and WHEREAS, the City has existing regulations in its Municipal Code pertaining to bingo operations within the City, and WHEREAS, the City's existing bingo regulations were not designed to ensure that bingo operations only benefit non-profit charitable organizations which are a benefit to the people of the City; and WHEREAS, the voters of the City have overwhelmingly expressed a desire to prohibit gaming activities, such as card games and bingo games, which generate business profits; and WHEREAS, the City recognizes that proceeds from bingo activities are an essential source of funding for non-profit organizations which carry out valuable and vital charitable activities within the City; and WHEREAS, in the interest of public welfare, the City desires to insure that well- established non-profit, charitable organizations within the City continue bingo activities in order to provide essential social services which the community may not otherwise be able to finance, and WHEREAS, the City has an established history of promoting and supporting its non-profit charitable organizations; and WHEREAS, if measures are not taken to properly distinguish between non-profit charitable organizations serving important and specific social needs and non-profit organizations which are formed merely to conduct bingo activities for less charitable purposes, an essential source of funding for the truly non-profit charitable organizations in the City may be lost; and WHEREAS, at least one applicant who claims to be a non-profit organization has application pending before the City to operate a bingo parlor on property which has not previously been used by the applicant for a reasonable period time for charitable, non-profit charitable activities; and RVPUB\SRC21090 0 0 WHEREAS, the City desires to put certain regulations into effect that would insure that only those charitable, non-profit organizations which have a proven record of providing charitable services be permitted to carry out bingo activities in the City; and WHEREAS, unless the City adopts the regulations contained in this ordinance as an urgency ordinance pursuant to California Government Code Section 36937, there may be a window of opportunity in which certain non-profit organizations which were not formed primarily for carrying out charitable activities within the City and which have not operated in the City for at least a period of one year prior to filing a bingo permit application, may obtain bingo permits under the City's existing bingo regulations, and this could result in negative financial impacts on those charitable organizations that have a proven track record for providing essential human and social services to those in need in the City; and WHEREAS, under the City's existing bingo regulations. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, DOES ORDAIN AS FOLLOWS: SECTION 1. Pursuant to Government Code Section 36937 it is necessary to adopt this ordinance as an urgency matter for the immediate preservation of the public peace, health or safety, based on the findings made by the City Council as stated above in the Recitals. SECTION 2. Article II of Chapter 46 of the Azusa Municipal Code is hereby amended in its entirety to read as follows: Sec. 46.36. Sec. 46-37. Sec. 46-38. Sec. 46-39. Sec. 46-40. Sec. 46-41. Sec. 46-42. Sec. 46-43. Sec. 46-44. Sec. 46-45. - 46-75 "Article H. Bingo for Charitable Purposes Definitions. Games authorized. Permit required. Permit application. Permit fee. Permit conditions, term, renewal. Conditions for issuance of permit. Permit issuance and denial. Revocation of permit. Reserved. See. 46-36. Definitions. The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: Bingo means a game of chance in which cash or other prizes are awarded on the basis of RVPLB\SRC\21090 designated numbers or symbols printed on a card, which conform to numbers or symbols selected at random. Bingo also means cards having numbers or symbols that are concealed and preprinted in a manner providing for distribution of prizes. The winning cards shall not be known prior to the game by any person participating in the playing or operation of the bingo game. Sec. 46-37. Games authorized. Bingo may be lawfully played in the city in accordance with the requirements and restrictions of this article and those provisions of Penal Code Section 326.5 which are not inconsistent with this article, and not otherwise. Sec. 46-38. Permit required. No individual corporation, organization or other legal entity shall sponsor, promote, conduct or engage in the operation of a bingo game in or on any premises within the city without first obtaining a bingo operation permit from the city. The permit shall be in addition to any other license, permit or other land use approvals required by the city in order to operate a bingo game. Sec. 46.39. Permit application. The application for a permit required by this article shall be: (1) Made upon a form prescribed by the business license division of the finance department; and. (2) Personally signed by an officer of the applicant, and (3) Accompanied by a copy of the articles of incorporation and certificates issued by the state franchise tax board and the United States collector of internal revenue certifying that the applicant is exempt from taxes as a nonprofit corporation or other legal entity. Sec. 46-40. Permit fee. The application for a permit required by this article shall be accompanied by a nonrefundable permit fee in the amount of $50.00 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 finance director or his or her designee has verified the facts stated in the application and has determined that the applicant meets the requirements of this Code and is entitled to the permit. See. 46-41. Permit conditions, term, renewal. Any permit issued pursuant to this article shall be subject to the conditions contained in this article, the provisions of Penal Code Section 326.5 which are not inconsistent with this RVPUWSRC\21090 article, this Code and any other conditions which are reasonably related to the protection of health, safety and welfare interests of the city. Permits issued pursuant to this article shall be valid for a period of one year from the date the permit is issued. A new application must be filed in accordance with Section 46-39 and a new permit fee must be paid in accordance with Section 46- 40 in order to renew an expired permit. Sec. 46-42. Conditions and requirements for issuance of permit. Each permit issued pursuant to this article shall be issued subject to the following requirements and conditions: (1) The applicant shall be (a) an organization exempted from the payment of the bank and corporation tax by sections 23701a, 23701b, 23701d, 2370le, 23701£, 23701g and 23701 h of the Revenue and Taxation Code; or (b) a mobile home park association; or (c) a senior citizen organization. (2) The applicant shall demonstrate to the city's satisfaction that: (a) the applicant has, for a continuous period of no less than one year prior to the application for the permi, owned or leased the premises on which the applicant proposes to conduct the bingo games; and (b) the bingo games will be conducted on the applicant's owned or leased property, which property is primarily used by the applicant as the applicant's office, other than for purposes related to the operation of bingo, or used by the applicant primarily for the performance or promotion of the charitable purposes for which the applicant is established, other than for the operation of bingo. (3) No minors shall be allowed to participate in any bingo game conducted by a permit holder. (4) Bingo games shall only be conducted on property owned or leased by the permit holder, which property is primarily used by the applicant as the applicant's office or for the performance or promotion of the applicant's charitable purposes for which the applicant was established, other than for the operation of bingo. (5) All bingo games shall be open to the public and shall not be open only to the members of the permit holder. (6) A bingo game shall be operated and staffed only by members of the permit holder. No member of the permit holder's organization shall receive a profit, wage or salary from any bingo game. Only the permit holder shall operate such game or participate in the promotion, supervision or any other phase of such game. This subsection does not preclude the permit holder from using bingo game proceeds to employ security personnel who are not members of the permit holder's organization to provide security services at the bingo games. RVPUB\SRCU1090 0 9 (7) With respect to organizations exempt from payment of the bank and corporation tax, 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. (8) With respect to all other permit holders, 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. For purposes of this subsection, the term "proceeds" means the receipts of bingo games conducted by organizations not included within subsection (7) of this section. Such proceeds shall be used only for charitable purposes, except as follows: a) Such proceeds may be used for prizes; b) A portion of such proceeds, not to exceed 20 percent of the proceeds before the deduction of prizes, or $2,000.00 per month, whichever is less, may be used for rental of property, overhead, including the purchase of bingo equipment, administrative expenses, security equipment and security personnel; and C) Such proceeds may be used to pay license fees. (9) 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. (10) The total value of the prizes awarded during the conduct of any bingo game shall not exceed $250.00 in dash or kind or both for each separate game which is held. Sec. 46-43. Permit issuance and denial. Upon receipt of a complete application for a bingo permit, the finance director or his or her designee shall cause a complete investigation of the applicant and the application to ascertain whether the applicant is eligible to receive a bingo permit. The application for a bingo permit shall be denied if the finance director or his or her designee makes any of the following findings: a) The applicant cannot satisfactorily demonstrate that it has met the requirements or will comply with the conditions for permit issuance set forth in Section 46-42; b) Any one of the applicant's officers has been convicted of a felony offense involving an act of dishonesty, fraud or deceit with the intent to financially benefit from such wrongful act; RVPUBVSRC\21090 0 0 C) The applicant has knowingly made a false, misleading or fraudulent statement of fact in the application for a bingo permit; or d) The applicant has not satisfied the business, land use or other licensing or general requirements of this Code or the provisions of Penal Code Section 326.5 which are not inconsistent with this Code. See. 46-44. Revocation of permit. If the finance director, the chief of police or the city's code enforcement officer has reason to believe that a permit holder is conducting bingo games in the city in violation of this Code any one of them shall prepare a written report setting forth the alleged violation(s) and the evidence upon which the allegation(s) is based. The written report shall be reviewed by the city administrator or his or her designee. If the city administrator or the designee determines that the permit holder is in violation of this Code, the city administrator may issue a written notice of revocation of the bingo permit to the permit holder. The permit holder may file a written appeal of the revocation of the permit. The written appeal shall contain the basis for the appeal of the revocation of the permit. The written appeal must be filed with the city clerk no later than fourteen (14) days from the date the notice of revocation is issued. The city clerk shall schedule a public hearing before the City Council which shall hear the appeal within forty-five (45) days from the date the appeal is filed with the city clerk. The City Council may reverse, amend or affirm the city administrator's determination. All decisions of the City Council shall be deemed final." SECTION 3. This Ordinance is adopted pursuant to Government Code Section 36937 and shall take effect immediately upon its adoption by a four-fifths vote of the City Council. SECTION 4. A summary of this Ordinance shall be published in the manner required by law. PASSED, APPROVED AND ADOPTED this 21 day of April 1997. CRISTINA tRUZ)��IADRID, MAYOR RVPUB\SRC\21090 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF AZUSA ) I, Adolph Solis, City Clerk of the City of Azusa, do hereby certify that the foregoing Ordinance 997U3-owas duly introduced and adopted as an urgency ordinance by a four-fifths vote of at a regular meeting of the City Council of the 21 day of April 1997, by the following vote, to wit: AYES: COUNCILMEMBERS: Hardison, Stanford, Rocha, Beebe, Madrid NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None APPROVED ASS TO FORM: BEST BEST & KRIEGER LLP CITY ATTORNEY RWLFMSRC\21090