5.13.080 Rules of operation.
   All fundraisers operated under this chapter shall comply with all provisions of Business and Professions Code Sections 19985 - 19987, as such provisions shall be amended from time to time, including, but not limited to, the following:
   (A)   A nonprofit organization holding a fundraiser pursuant to this chapter shall not conduct more than one fundraiser per calendar year. Eligible nonprofit organizations that have multiple chapters may hold one fundraiser per chapter per calendar year.
   (B)   Nonprofit organizations seeking to conduct fundraisers pursuant to this chapter must register annually with the Division of Gambling Control, pursuant to Business and Professions Code Sections 19986(e). Each fundraiser shall be pre-approved by the Division of Gambling Control.
   (C)   Each fundraiser shall not exceed five consecutive hours. No more than four fundraisers shall be conducted at the same location in any calendar year, even if sponsored by different nonprofit organizations, except in rural areas where pre-approved by the Division of Gambling Control pursuant to Business and Professions Code Section 19986(1).
   (D)   No person who is obviously intoxicated shall be allowed to participate in any controlled game.
   (E)   No person shall be permitted to participate in the fundraiser unless that person is at least 21 years of age.
   (F)   No cash prizes or wagers may be awarded to participants, however, the winner of each controlled game may be entitled to a prize from those donated to the fundraiser. An individual prize awarded to each winner shall not exceed a cash value of $500. For each event, the total cash value of prizes awarded shall not exceed $5,000.
   (G)   At least 90% of the gross revenue from the fundraiser shall go directly to a nonprofit organization.
      (1)   Compensation shall not be paid from revenues required to go directly to the nonprofit organization for the benefit of which the fundraiser is conducted, and no more than 10% of the gross receipts of a fundraiser may be paid as compensation to the entity or persons conducting the fundraiser for the nonprofit organization.
      (2)   If an eligible nonprofit organization does not own a facility in which to conduct a fundraiser and is required to pay the entity or person conducting the fundraiser a rental fee for the facility, the fair market rental value of the facility shall not be included when determining the compensation payable to the entity or person for the purposes of this section.
      (3)   This section does not preclude an eligible organization from using funds from sources other than the gross revenue of the fundraiser to pay for the administration or other costs of conducting the fundraiser.
   (H)   All permittees shall keep and maintain full and complete records for each fundraiser using controlled games, which shall include:
      (1)   An itemized list of gross receipts for the fundraiser.
      (2)   An itemized list of recipients of the net profit of the fundraiser, including the name, address, and purpose for which fundraiser proceeds are to be used.
      (3)   The number of persons who participated in the fundraiser.
      (4)   An itemized list of the direct cost incurred for each fundraiser.
      (5)   A list of all prizes awarded during each fundraiser.
      (6)   The date, hours, and location for each fundraiser held.
      (7)   The city shall have the right to inspect these records at any reasonable time, and the Director of Finance may request such inspection if and when the permittee applies for renewal of its annual permit.
   (I)   Any peace officer of the city shall have free access to any controlled game fundraiser permitted under this chapter. The permittee shall have the controlled game fundraiser permit and lists of approved staff available for inspection at all times during any fundraiser.
   (J)   No controlled game fundraiser permitted under this chapter may be conducted by means of, or otherwise utilize, any gaming machine, apparatus, or device that meets the definition of a slot machine contained in Penal Code Sections 330b or 330.1.
   (K)   No controlled game fundraiser permitted under this chapter may be operated or conducted over the Internet.
(Ord. 2876 § 2 (part), 2007.)