§ 5.28.010 CONDITIONS FOR OPERATING NONPROFIT, CHARITABLE OPERATION.
   A nonprofit, charitable organization may conduct a bingo game within the city subject to the following conditions:
   (A)   As used in this chapter, BINGO shall mean a game of chance in which prizes are awarded on the basis of designated numbers or symbols on a card which conforms to numbers or symbols selected at random.
   (B)   Such games may only be conducted by and for the benefit of organizations exempted from the payment of the Bank and Corporations Tax by Cal. Revenue and Taxation Code § 23701(d) and a contribution or gift to which would be a charitable deduction under Section 170(c)2 of the Internal Revenue Code of 1954, or by organizations exempted from the payment of the Bank and Corporations Tax by Cal. Revenue and Taxation Code §§ 23701a, 23701b, 23701d, 23701e, 23701f, 23701g, and 23701l and by mobile home park associations and senior citizens organization, and provided that the proceeds of such games are used only for charitable purposes.
   (C)   An organization authorized to conduct bingo games pursuant to division (B) of this section shall conduct such bingo games only on property owned or leased by it, and which property is used by such organization for an office for performance of the purposes for which the organization is organized. Nothing in this division shall be construed to require that the property owned or leased by the organization be used or leased exclusively by such organization.
   (D)   It shall be a misdemeanor for any person, except as specifically provided in this chapter, to receive or pay a profit, wage or salary from any bingo game authorized by California Constitution Section 19 of Article IV. Violation of this section shall be punishable by a fine not to exceed $10,000, which fine shall be deposited in the general fund.
   (E)   The city may bring an action to enjoin a violation of any of the provisions of this section.
   (F)   No minor shall be allowed to participate in any manner whatsoever in any bingo game.
   (G)   All such bingo games authorized by this chapter shall be open to the public and shall not be limited to members of the nonprofit charitable organization. The premises where games are conducted shall be available for inspection by city employees authorized for such purpose at all times bingo games are being conducted, and shall be subject to all occupancy and fire regulations applicable to the premises.
   (H)   A bingo game shall be operated and staffed only by members of the authorized nonprofit charitable organization which organized it. No person other than the organization shall receive or pay a profit, wage or salary from any bingo game. Only the members of the organization authorized to conduct a bingo game shall operate such game or participate in the promotion, supervision or any other phase of such game.
   (I)   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 any such bingo game. Any profit shall be kept in a special fund and shall not be commingled with any other fund or account. Such proceeds shall be used only for charitable purposes, except as follows:
      (1)   Such proceeds may be used for prizes;
      (2)   A portion of the proceeds, not to exceed 10% of the proceeds before deduction for prizes, or $500 per month, whichever is less, may be used for rental of property, overhead, including the purchase of bingo equipment, and administrative expenses.
   (J)   The organization authorized to conduct such games and conducting such games shall maintain a written record of all profits derived from a bingo game, which shall be kept in a special fund or account of the organization conducting such game, and shall not be commingled with any other fund or account of such organization. Such written record shall include, in addition to any other information required, a statement of all income and all expenses related to the conduct or operation of such games. Such written record shall be maintained in a place within the corporate limits of the city, and shall be made available for submission to the City Council upon reasonable request. Refusal to submit such written records shall constitute sufficient grounds to revoke any license granted under this chapter.
(`83 Code, § 5.28.010) (Ord. 82-13 §§ 2, 3, 1982)