CITY OF ROHNERT PARK CITY COUNCIL AGENDA REPORT

Mission Statement We Care for Our Residents by Working Together to Build a Better Community for Today and Tomorrow. CITY OF ROHNERT PARK CITY COUNCIL AGENDA REPORT ITEM NO. Meeting Date: November 10, 2015 Department: Administration Submitted By: Don Schwartz, Assistant City Manager Prepared By: Don Schwartz, Assistant City Manager Agenda Title: Introduction of Ordinance Consideration of Amending Rohnert Park Municipal Code 9.66 (Bingo Games) RECOMMENDED ACTION: Approve recommended amendments to Title 9, Chapter 9.66 of the Rohnert Park Municipal Code relating to bingo games. BACKGROUND: Bingo games have been operated at the Senior Center for many years. These games have provided non-profit organizations a way to raise funds while also providing a social opportunity for City residents. Senior citizens have been particularly active in bingo, which has helped to increase social activity which has been proven to support healthy living and vitality. Rebuilding Together has been the most recent bingo operator, taking over from the City in 2010. Rebuilding Together came to the City several months ago to explore the potential for reducing the rent that they have been paying to use the Senior Center to operate bingo. In exploring this issue, staff discovered issues with the bingo operations. These include updates to the state laws for bingo games not reflected in the City s bingo ordinance. Staff is proposing a amendments to the City ordinance to ensure consistency between the City s ordinance and state law. Should the City Council approve the proposed revised ordinance, staff will develop corresponding procedures to implement it. Proposed changes to the ordinance will require bingo games operated in the City to comply with state law. Specific changes include: Expanding the types of organizations eligible to host bingo games Requiring that applicants for bingo permits submit additional information that will allow the City to more easily determine whether they are eligible to host bingo games and whether those games will be held in compliance with City and State laws Streamlining the procedures for suspending and revoking bingo permits Clarifying the procedures for renewing and amending bingo permits Adding information to the permit that will allow for easier enforcement by the City and additional clarification as to the extent and limits of the permit for permittees. Increasing limits on expenses to be paid from proceeds to reflect the limits in state law. The current ordinance sets a limit of 10% of proceeds after prizes have been paid, or

ITEM NO. $500/month (whichever is less) for rental of property, overhead, and administrative expenses. State law sets a limit of 20% of net proceeds or $2,000/month (whichever is less) for these and similar expenses. Updating the maximum value of prizes from $250 to $500 to reflect the current limit in State law Allowing the City to charge a fee to cover any public safety costs Removing duplicative language limiting the use of bingo proceeds for charitable purposes Defining key terms more clearly Restructuring the contents of the ordinance for easier reference The ordinance would continue to allow bingo games for fundraising at facilities other than the Senior Center, as well as games conducted for entertainment rather than fundraising purposes. As a part of a separate, but related effort, staff will also attempt to negotiate a lease to continue operating bingo at the Senior Center with a local non-profit group as the bingo game operator. The lease will be consistent with the ordinance and the City s policies and practices for working with non-profits organizations. If needed, staff will bring a lease to the Council for consideration. OPTIONS CONSIDERED: The City could continue with its current ordinance. However, doing so would impose unnecessary restrictions on bingo permittees and could be confusing where the City s ordinance is not totally aligned with State law. FISCAL IMPACT/FUNDING SOURCE: There is no direct fiscal impact from revising the ordinance. There may be some impact as a result of a lease agreement with a bingo operator at the Senior Center, which will be determined as a lease is negotiated. Department Head Approval Date: N/A City Manager Approval Date: November 2, 2015 City Attorney Approval Date: October 29, 2015 Attachments (list in packet assembly order): 1. Revised Bingo Ordinance, showing changes 2. Revised Bingo Ordinance, clean copy

ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK AMENDING TITLE 9 CHAPTER 9.66 OF THE ROHNERT PARK MUNICIPAL CODE RELATING TO BINGO GAMES SECTION 1. AUTHORITY: This Ordinance is adopted pursuant to the provisions set forth in Section 19, Article IV of the California Constitution and Penal Code 326.5, and pursuant to other applicable law. SECTION 2. FINDINGS: WHEREAS, bingo games provide recreational opportunities for residents of Rohnert Park and neighboring communities; and WHEREAS, bingo games are a source of revenue for organizations furthering charitable purposes in and around Rohnert Park; and WHEREAS, Section 19, Article IV of the California Constitution and Penal Code 326.5 authorize cities to enact legislation to provide for bingo games for charitable purposes; and WHEREAS, the Legislature has amended Penal Code 326.5 several times since the City enacted its bingo ordinance; and WHEREAS, the City Council desires that the City s bingo ordinance reflect the full authority granted by the Legislature; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ROHNERT PARK DOES HEREBY ORDAIN AS FOLLOWS: SECTION 3: IMPOSITION OF ORDINANCE: In accordance with the authority provided by Section 19, Article IV of the California Constitution and Penal Code 326.5, the City Council of the City of Rohnert Park does hereby ordain that Title 9 Chapter 9.66 of the Rohnert Park Municipal Code is hereby amended and shall read as follows: CHAPTER 9.66 BINGO GAMES Page 1

9.66.010 Definitions As used in this chapter, the following words and phrases shall have the following meanings: A. Bingo means a game of chance in which prizes are awarded on the basis of designated numbers or symbols that are marked or covered by the player on a tangible card in the player s possession and that conform to numbers or symbols, selected at random and announced by a live caller. B. Charitable Purpose means purposes beneficial to the community as a whole or an unascertainable and indefinite portion thereof. Charitable Purposes may include, but are not limited to relief from poverty, and advancement of education, the arts, science or religion. C. Eligible Organization means one of the following types of organizations: organizations exempted from the payment of the bank and corporation tax by Sections 23701a, 23701b, 23701d, 23701e, 23701f, 23701g, 23701k, 23701w, and 23701l of the Revenue and Taxation Code; mobilehome park associations; senior citizens organizations; charitable organizations affiliated with a school district; or organizations otherwise deemed eligible under California Penal Code Section 326.5(a). D. Prize means an award, either in cash or kind, stemming from participation in a Bingo game. E. Proceeds means income from any source, either in cash or kind, related to the operation of a Bingo game. F. Overhead expenses include bingo equipment, administrative expenses, security equipment, security personnel, and disposable supplies used in the conduct of bingo games, including, but not limited, to paper forms. Comment [P1]: Definitions consolidated from throughout the previous ordinance and updated according to Penal Code 326.5. New definitions added for Charitable Purpose, Profit and Prize. 9.66.020 Permit Required. Bingo games may be conducted within the City, provided that the game is conducted by an Eligible Organization holding a permit issued in accordance with this chapter and, in addition, provided that any such game is conducted in compliance with the terms and conditions of such permit and applicable State law including, but not limited to, California Penal Code, Section 326.5. Comment [P2]: Adapted from Santa Rosa MC 6-60.010 9.66.010 - Eligible Organizations eligible for city permit to conduct bingo games. O ); and if the receipts of those games are used only for charitable purposes.labor, agricultural, or horticultural organizations exempted by Section 23701(a) of the Revenue and Taxation Code, and fraternal beneficiary societies operating under the lodge system, which Page 2

provide for the payment of life, sickness and other benefits, exempted by Section 23701(b) of the Revenue and Taxation Code, and corporations, community chests, or trusts organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or for the prevention of cruelty to children or animals, exempted from the payment of the bank or corporation tax by Section 23701(d) of the Revenue and Taxation Code, and nonprofit business leagues, chambers of commerce, real estate boards, or boards of trade exempted by Section 23701(e) of the Revenue and Taxation Code, and civic leagues operated exclusively for promotion of social welfare, or local organizations of employees, the earnings of which are used exclusively for charitable, educational, or recreational purposes, exempted by Section 23701(f) of the Revenue and Taxation Code, and clubs operated exclusively for pleasure, recreation, or other nonprofit purposes exempted by Section 23701(g) of the Revenue and Taxation Code, and fraternal societies operating under the lodge system, which do not provide for the payment of life, sickness, or other benefits, the earnings of which are used exclusively for religious, charitable, scientific, literary, educational, and fraternal purposes, exempted by Section 23701(1) of the Revenue and Taxation Code, and mobile home park associations and senior citizens organizations are eligible to apply to the city for a permit to conduct bingo games in the city under the provisions of Section 326.5 of the Penal Code and the provisions of this chapter. 9.66.0320 - Permit Application for permit. Comment [P3]: SR MC 6-60.010 Any Eligible Organization desiring to obtain a permit for the conduct of any Bingo game within the City shall submit a written application to the Police Department of the City, together with the appropriate fee as established by resolution of the City Council. Eligible Oorganizations desiring to obtain a permit to conduct bingo games in the city shall file an application in writing therefor in the office of the Rohnert Park police chief on a form to be provided by the city along with the applicable filing fee. The issuing authority shall be the Rohnert Park police chief. The permit issued shall be for a term of one year from the date of issuance, subject to annual renewal and payment of a renewal fee of fifty dollars renewal. 9.66.040 Application feeand Renewal Fee. The City Council, by resolution, may adopt and revise, from time to time, a schedule of fees for the processing of permit applications for the conduct of Bingo games. Comment [P4]: SR MC 6-60.030. Previously the City had imposed by ordinance a $50 fee, which is the maximum allowable fee under PC 326.5. 9.66.0530 - Exemption from Fee.Organizations exempt from fee. No application or renewal fee shall be required of any Eligible Oorganization stating in its application that it will use all Proceeds from the Bingo games solely for Prizes and to cover the costs of conducting the Bingo games, and not for any other purpose, including Charitable Purposes.it will conduct bingo games solely for recreational and not for fundraising purposes. As Page 3

used in this section, "recreational" means proceeds from the bingo games are used solely for bingo game prizes and to cover incidental expenses of conducting the bingo games. "Fundraising" means any part of the proceeds of the bingo games is used by the Eligible oorganization for purposes other than bingo game prizes and incidental expenses of conducting the bingo games. 9.66.060 Administrative Fee for Public Safety Costs. An administrative fee for public safety costs may be imposed to cover costs incurred by the City that are directly related to Bingo activities and shall be collected monthly by the City; however, the fee shall not exceed the actual costs incurred in providing the service. Comment [P5]: Adapted from Cal Penal Code 326.5(l)(2) 9.66.0740 - Permits Issued Only to Qualified Applicants must be qualified. No permit shall be issued to any organization applicant unless the applicant is an Eeligible Oorganization under Section 9.66.010 and its application conforms to the requirements, terms and conditions of Sections 9.66.020 through 9.66.320250. Comment [P6]: Also in Cloverdale MC 5.12.050 9.66.050 080 - Contents of application. Contents of Application process. A. Each application for a permit to conduct Bingo games shall contain the following informationthe application for a permit shall contain the following: 1. The name of the applicant organization and a statement that applicant is an eligible organization under Section 9.66.010; 2. The business and mailing address of the applicant; 3. The name and signature of at least two officers, including presiding officer of the highest ranking officer of the organization s highest governing body; 1.4.A resolution of the governing body of such organization authorizing the conduct of any and all Bingo games proposed by the application and the purpose of the Bingo game; 5. The street number or other clear and specific identification of the location at which each Bingo games proposed in the application would be conducted and, in addition, a statement of the maximum capacity of the place in which such Bingo games would be conducted; 2.6.A description of the applicant s non-bingo activities conducted at each locationthe particular property within the city, including the street number, owned or leased by the applicant, used by such applicant for an office or for Comment [P7]: Additional requirements adapted from SR MC 6-60.040. #8 is original and will ensure that the applicant does not intend to hold remote caller bingo games, which are subject to additional rules. Page 4

performance of the purposes for which the applicant is organized, on which bingo games will be conducted; ; 3.7.The name and signature of the person who will actually conduct each and every bingo game proposed by the permitthe name and signature and title of the appropriate city department head if bingo games are to be conducted in city facilities; 8. A precise description of the Bingo activities to be conducted at each Bingo game; 4.9.Proposed date, days of week, and hours of day for the conduct of each bingo games; 5.10. The application shall also include ffinancial information relevant to the application, including but not limited to: (1) the proposed budget of the applicant; (2) the anticipated charitable use of the funds; (3) the estimated receipts and expenses for the year together with such other information relevant to the application as required and approved by the city police chiefcouncil; (4) the name and address of the custodian of the financial records of the applicant; 6.11. A completed Acknowledgment of Responsibilities and Restrictions form, provided by the City, enumerating the applicable requirements in 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. The applicant shall sign this Acknowledgment of Responsibilities and Restrictions form agreeing to each provision, and agreesacknowledging that the permit to conduct bingo games may be revoked by the chief of policepolice chief upon violation of any of such provisions; 7. The application shall be signed by the applicant under penalty of perjury; 8. An application or license fee of fifty dollars shall be paid by the applicant at the time of application for permit. If the application for permit is denied, one-half of the application fee shall be returned to the applicant organization; 12. The applicant shall also submit, as applicable, a Certificate of Determination of Exemption Under Sections 23701 (a), (b), (d), (e), (f), (g), or (l), 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 sections. Evidence that the applicant is an Eligible Organization. For organizations claiming to be exempt from the payment of the bank and corporation tax, evidence shall include a certificate or determination of exemption under the Taxation and Revenue Code, or a letter of good standing from the Exemption Division of the Franchise Tax Board in Sacramento, showing exemption under a qualifying section of Revenue and Taxation Code Section 23701. If an applicant applies as a mobile home park association or, senior citizens organization, or charitable organization affiliated with a school district, the police chief shall determine whether the organization possesses that statuswhat evidence is necessary to establish eligibility; Comment [P8]: Cloverdale MC Page 5

9.13. Such other information as the police chief may require to discover the truth of the matters required to be set forth in the application. B. The contents of the application shall be affirmed and verified by the applicant under penalty of perjury.; B. Upon the change of any of the information required in this section, an amendment to the application must be sent to the police chief; C. On or before the last day of each month, each licensee shall report to the department of public safety, on a form provided, an accounting of all gross receipts, prizes paid, and expenditures for the prior month. 9.66.090 Investigation of the Application. Upon receipt of the completed application and required fee, the Police Department shall refer the application to affected City departments for verification of the statements in the application, investigation as to whether the property of the applicant qualifies and is fit for hosting Bingo games with respect to fire, occupancy, and other applicable restrictions, and for obtaining any and all recommendations as to whether the permit should be granted. Upon receipt of such verification and any recommendations and completion of any further investigation deemed necessary, the police chief shall grant, grant with conditions, or deny the permit in accordance with the criteria set forth in Penal Code Section 326.5 and this chapter. Comment [P9]: Adapted from SR MC 6-60.050 and Healdsburg MC Application Review Process 9.66.100 Imposition of Conditions and Limitations on Permits. Comment [P10]: SR MC 6-60.090 The police chief may place upon any permit issued under authority of this chapter such conditions and limitations upon the activities conducted pursuant to such permit as the police chief may determine are necessary to protect the health, safety and general welfare of any persons or property at or in the vicinity of said activity. 9.66.060 110 - Contents Issuance of permitpermit. A. Upon a showing being satisfied that the applicant is fully qualified, under the law, to conduct bingo Bingo games in the citycity and has satisfied the requirements of this chapter, the police chief shall issue a permit to the applicant which shall contain the following information: A. Page 6

1. The name and address of the organization to whom the permit is issued and the grounds for the eligibility of such organization to conduct Bingo gamesthe name and nature of the organization to whom the permit is issued; 2. The location or locations at which the Bingo games are authorized to be conductedthe address where bingo games are authorized to be conducted; 3. The name and address of each person who has been authorized to actually conduct the Bingo games on behalf of the permit holder; 3.4.The maximum authorized occupancy capacity of each place at which the Bingo games are authorized to be conducted; 5. The date of the expiration of such permit; 4.6.Such other information, including, but not limited to, the conditions and limitations upon the conduct of Bingo games, as may be determined pursuant to Section 9.66.100; B. No permit shall be granted for a period longer than one year. C. If the permit is denied, the police chief shall state in writing to the applicant the reasons for the denial. D. During the term of the permit, the permit holder must maintain its eligibility to hold such permit. Comment [P11]: SR MC 6-60.060 9.66.120 Amendment of the Permit. A. Upon the change of any of the information required in this section, the permit holder must submit an amendment to the application to the police chief within five days. B. The police chief may issue an amended permit without charge if the police chief determines that such change does not affect the eligibility of the permit holder or the terms of the permit. If the changes affect the eligibility of the permit holder or the terms of the permit and additional conditions or limitations will remedy the changes, the police chief issue an amended permit including such conditions and limitations necessary to remedy the changes. C. Failure to report such change in information shall constitute cause for revocation of the permit. Comment [P12]: SR MC 6.60-070 9.66.130 Permit Renewal. Comment [P13]: SR MC 6-60.080 A permit holder may submit an application to renew an existing permit, together with the fee for such renewal, and an audit opinion or certification as required by Section 9.66.260, to the Police Department not earlier than 45 days prior to the expiration date of the existing permit. A renewal application for an existing permit may be submitted on a short form, provided by the Page 7

City, which verifies and affirms the information contained in the previously approved application and describes any changes that have occurred during the period the permit has been in existence. A. Such other information as may be necessary or desirable for the enforcement of the provisions of this chapter. 9.66.070 140 - Permit to be postedposted at Bingo Games. The permit shall be posted in a conspicuous place at the site of the bingo Bingo games during the operation of the Bingo game. 9.66.080 150 - Suspension and Revocation of PermitsSummary suspension of permit pending opportunity for hearing Misdemeanor to continue after suspension Revocation. A. The police chief may suspend a previously issued Bingo permit for any of the following causes: 1. The permit holder is ineligible to hold the permit; 2. The permit application contains one or more false, misleading or fraudulent statements; 3. Bingo games authorized by the permit have been conducted in violation of a condition or requirement of the permit, or this chapter, or Section 326.5 of the California Penal Code; 4. There has been one or more violations of Federal, State or City law committed at the location of the Bingo games in conjunction or associated with the operation of the Bingo games or the Bingo games and the accompanying activities have become detrimental to the health, safety or welfare of the residents of the City.Whenever it appears to the police chief that the permit holder is conducting a bingo game in violation of any of the provisions of this chapter, the police chief shall have the authority to summarily suspend the permit and order the permit holder to immediately cease and desist any further operation of any bingo game. A.B. If the police chief decides to suspend a Bingo permit, A a written order of summary suspension shall promptly be sent to the permit holder. The written order shall include a summary of the grounds advanced as the basis for suspension and notify the permit holder that he or she has ten days from the date of such order to request a hearing before the police chief to determine whether such permit shall be revoked. 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 shall be subject to the penalties applicable in this code. Comment [P14]: SR MC 6-60.130. We have also consolidated the RP MC provisions on summary suspension and revocation of license into this section. Page 8

C. The written order issued under subsection A shall notify the permit holder that he has ten days from the date of such order to request a hearing before the police chief to determine whether such permit shall be revoked. Failure to request, in writing, such hearing within the ten -day period shall result in a revocation of the licensepermit. D. Upon such request by the permit holder, whose permit has been suspended under subsection A, for a hearing to determine whether such permit shall be revoked, the police chief shall provide a hearing within twenty days after receipt of such request at which hearing the suspended permit holder may appear before the police chief for the purpose of presenting evidence why the permit should not be revoked. No permit 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 the suspended permit holder 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. D. Within ten days of the hearing, the police chief shall issue and send to the permit holder via United States mail a written decision reinstating the permit, reinstating the permit with any conditions and/or limitations the police chief determines are necessary to remedy the change, or revoking the permit. E. Any organization whose permit is revoked under this section shall not conduct any bingo games in the county until such time as the city council, on appeal, determines to overrule the decision of the police chief. Any person who conducts a Bingo game under a suspended or revoked permit shall be deemed guilty of a misdemeanor and shall be subject to the penalties applicable in this code. E.F. Any organization whose permit is revoked may not again apply for a permit to conduct Bingo games in the City for a period of one year from the date of such revocation; provided, however, that if the ground for revocation is cancellation of the exemption granted under the Revenue and Taxation Code, such organization may again apply for a permit upon proof of reinstatement of said exemption. 9.66.090 - Revocation of license Alternative procedure. A. Whenever it appears to the police chief that the permit holder is conducting bingo games in violation of any of the provisions of this chapter, or that the permit was obtained by fraudulent representation, and no summary suspension is ordered under Section 9.66.080, the permit may be revoked; provided, however, that prior to such revocation the permit holder must be given an opportunity to appear before the police chief at the time fixed by the police chief for the purpose of presenting evidence why the permit should not be revoked. Written notice must be given at least five days before such hearing by depositing in the United States mail, a notice directed to the permit holder at the address given in the application. The notice shall set forth a summary of the ground advanced as the basis of the revocation. Page 9

B. Any organization whose permit is revoked under this section shall not conduct any bingo game in the city until such time as the city council, on appeal, determines to overrule the decision of the police chief. 9.66.100 160 - Appeal of revocation Revocation of Permits to city City councilcouncil. A. Any holder of a permit whose permit is revoked under this chapter shall have the right, within ten days after receiving from the date of the notice in writing of the revocation, to file a written appeal to the City Clerkcity council. Such appeal shall set forth the specific ground or grounds on which it is based. The city City council Council shall hold a hearing on the appeal within thirty forty five days after its receipt by the City councilcouncil, or at a time thereafter agreed upon and shall cause the appellant to be given at least ten days' written notice of such hearing. At the hearing, the appellant or its authorized representative shall have the right to present evidence and a written or oral argument, or both, in support of its appeal. The determination of the city City council Council on the appeal shall be final. B. Any organization whose permit is finally revoked may not again apply for a permit to conduct bingo games in the city for a period of one year from the date of such revocation; provided, however, that if the ground for revocation is cancellation of the exemption granted under the Revenue and Taxation Code, such organization may again apply for a permit upon proof of reinstatement of said exemption. 9.66.110 - 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. 9.66.120 170 - Maximum amount Amount of prizeprizes at Bingo Games. The total value of the prize Prize shall not exceed two hundred fiftyfive hundred dollars ($500) in cash or kind, or both, for each separate game which is held. Comment [P15]: Updated to reflect increased amounts in PC 326.5 9.66.180 Records and Reporting Requirements for Permit holders. The permit holder shall keep full and accurate record of the income and expenses received and disbursed in connection with its operation, conduct, promotion, supervision, and any other phase of bbingo games which are authorized by this chapter. On or before the last day of each month, Page 10 Comment [P16]: Reorganized from RP MC 9.66.050 and 9.66.130. Also, Cloverdale MC 5.12.170

each licenseepermit holder shall report to the department of public safetypolice Department, on a form provided, an accounting of all gross receiptproceeds, pprizes paid, and expenditures for the prior month. 9.66.130 190 - Separate Account for ProceedsProfits to be kept in separate fund or account. All profits Proceeds derived from a bingo Bingo game shall be kept in a special fund or account and shall not be commingled with any other fund or account. Comment [P17]: Also, Cloverdale MC 5.12.170 9.66.200 Use of Proceeds. With respect to organizations exempted by Section 23701d(d) of the Revenue and Taxation Code, the profits Proceeds shall only be used for charitable purposecharitable Purposes. With respect to other organizations authorized to conduct bingo Bingo games, the proceeds shall onlymay be used for charitable purposecharitable spurposes, except that proceeds may be used for prizes and Prizes., and In addition, a portion of the Pproceeds, not to exceed ten twenty percent of the proceeds Proceeds after before deduction for prizesprizes, or two thousand five hundred dollars ($2,000) per month whichever is less, may be used for rental of property, overhead, and administrative expenses. The permit holder shall keep full and accurate record 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 officers, shall have the right to examine and audit such records at any reasonable time and the permit holder shall fully cooperate with the city by making such records available. Comment [P18]: Reorganized from RP MC 9.66.130 9.66.140 210 - Limitations on Financial interest Interestsin permit holder only. No individual, corporation, partnership, or other legal entity except the permit holder shall hold a financial interest in the conduct of such bingo Bingo game. 9.66.150 220 - Exclusive operation Operation of Bingo Games by permit Permit holderholder. A bingo Bingo game shall be operated and staffed only by members of the permit holder organization. Such members shall not receive a profit, wage, or salary from any bingo Bingo games or any other compensation, in cash or kind. Only the permit holder shall operate such game, or participate in the promotion, supervision or any other phase of such game. Page 11

9.66.160 230 - Bingo games Games Must Be open Open to publicpublic. All bingo Bingo games shall be open to the public, not just to the members of the permit holder organization. The permit holder shall not reserve seats or space for any person. 9.66.170 240 - Attendance limited Limitations on Participationto occupancy capacity. in Bingo Games. Notwithstanding that bingo Bingo games are open to the public, attendance at any bbingo game shall be limited to A. to tthe occupancy capacity of the room in which such game is conducted as determined by the appropriate fire department and the building department of the city in accordance with applicable laws and regulations. B. Persons who are eighteen years of age or older. C. Persons who are not obviously intoxicated. A.D. No person shall be allowed to participate in a bingo game unless the person is Persons physically present at the time and place in which the bingo game is being conducted.the permit holder shall not reserve seats or space for any person. Comment [P19]: Limitations on participations consolidated here. Comment [P20]: Cloverdale MC 5.12.210 9.66.180 250 - Limitation on Venues for Bingo Games.Bingo games conducted only on permit holder's property. A. A permit holder shall conduct a bbingo game only on property owned or leased by it, and which property is used by such organization for an office or for performance of the purposes for which the organization is organized. The property owned or leased by the organization need not be used exclusively by the organization. A.B. The permit 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, or an amendment to the application. In the event the describedwhere a property permitted to host a Bingo game ceases to be used as an office or as a place for performance of the purposes for which the permit holder is organizedcomply with Subsection A, the permit shall have no further force or effect with respect to Bingo games permitted at that location. The permit holder may apply for a permit amendment to move the Bingo games to a property compliant with this Section pursuant to Section 9.66.120.A new permit 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. Page 12

9.66.190 - Minors not to participate. No person under the age of eighteen years of age shall be allowed to participate in a bingo game. 9.66.200 - Intoxicated persons not to participate. No person who is obviously intoxicated shall be allowed to participate in a bingo game. 9.66.2610 - Limitations on Hours of Operation for Bingo Gamesoperation. No Bingo game may be conducted for a duration greater than six hours during any 24 hour period and no Bingo game may be conducted between two a.m. and 10 a.m. of any day.no permit holder shall conduct any bingo game more than six hours out of any twenty-four-hour period. No bingo game shall be conducted before ten a.m. nor after two a.m. of any day. 9.66.220 - 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. 9.66.2730 - Violation of chapterchapter a Misdemeanor. A violation of any provision of this chapter is a misdemeanor. 9.66.2840 - Unauthorized Receipt of Proceeds a Misdemeanorprofit by a person a misdemeanor under state law. It is a misdemeanor under Section 326.5(b) of the Penal Code of the state, for any person to receive or pay a profit, wage or salary or other compensation, in cash or kind, from any bbingo game, authorized by this chapter. Receipt of such wage, salary, or compensation shall be punishable by a fine not to exceed ten thousand dollars ($10,000), which fine shall be deposited in the general fund of the citycity. Comment [P21]: Also in Healdsburg MC Section 22 Page 13

9.66.250 290 - City May Enjoin Violations of this Chaptermay enjoin violation. The city City 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. 9.66.26300 - Bingo Compliance AuditsRequirement for annual bingo compliance audits. A. The city, by and through its officers, shall have the right to examine and audit such records at any reasonable time and the permit holder shall fully cooperate with the city by making such records available. The following policies and practices are hereby established by the city of Rohnert Park regarding the conducting of future bingo audits, and the supervision of bingo operations in the city:. Bingo operatorspermit holders with gross receipts (as defined in Section F.) in excess of three hundred thousand dollars ($300,0000) per year shall provide as a condition for re-licensing, an audit opinion from a Certified Public Accountant which affirms the licensee permit holder s compliance to with city City and state State bbingo laws, expenditure of bingo funds only for charitable purposes, and that accounting books, procedures and internal controls are adequate to track and safeguard all bingo pproceeds and assets. Audits of bbingo operations games shall be conducted at no public expense, with costs being borne by the bingo game operatorspermit holders. The frequency of such audit reports (annual or biannual) shall be determined by the city manager based upon prior audit history. 1. The city manager may authorize a permit holder to submit biennial audit opinions instead of annual audits. If a biannual biennial audit is authorized by the city manager, the bbingo licensee permit holder will allow City staff full access to all original accounting records to conduct an annual compliance review during non-audit years. Material findings of exceptions or system weaknesses during this review will result in a requirement that the annual audit be conducted and an audit opinion be issued by a certified Certified public Public accountant Accountant after adequate testing to verify compliance and internal controls for the year in question. 2. Before commencement of the audits, the auditor selected by each operator permit holder shall confer with the city auditor or designated city City representative to ascertain the required scope and depth of the audits to be conducted. Generally speaking, bbingo audits will not require an opinion on the financial statements of the operatorspermit holders. The purpose of the audits will be to ascertain as quickly and economically as possible whether each bingo operator is operating within the requirements of the Rohnert Park Municipal Code 9.66 and has adequate accounting and internal controls in place to safeguard bingo proceeds. 2.3. At least one game observation shall be made by their auditor, and sufficient audit testing shall be conducted as is deemed necessary by the auditor and by the city City to meet its monitoring and enforcement responsibilities. Page 14

3.4.C. The scope of the audits will be designed to determine whether (1) games are being operated in accordance with state and city laws; (2) bingo funds collected are expended only for charitable purposes; and (3) a sufficient accounting system and adequate internal controls for cash, inventory, and expenditures are in place to minimize the potential for fraud or theft, to safeguard bingo assets, and to insure that bingo proceeds are expended only for charitable purposes. For the fiscal year, the audit shall verify the amount of gross bingo receiptsproceeds collected, the allocation or use of the bingo funds raisedproceeds, and the adequacy of the accounting and control system to monitor and account for cash receipts, start-up cash, inventory and expenditures. B. D. For bingo operatorspermit holders with gross receipts of less than three hundred thousand dollars ($300,0000) per year, a certification from their bookkeeper, accountant or treasurer shall be presented to the city City as a condition for annual relicensing, in addition to financial documents required to be submitted with their annual license permit renewal application, stating that the bingo operatorpermit holder is in compliance with all city City and state State laws and has spent all bingo receipts only for charitable purposes. The certification should include a detailed description of the bingo operatorpermit holder's current accounting system and internal controls for cash, start-up cash, inventory and expenditures. A schedule summarizing the specific charitable expenditures of all bbingo proceeds Proceeds should be attached to the certification to provide detail verification of charitable expenditures shown in the financial statement. The certification should be approved and signed by the appropriate officers and board of directors as true and correct. The city City shall conduct a game observation and a brief review of accounting records to verify legal compliance and adequacy of internal control procedures. E. F. The term "gross receipts" as defined by the Rohnert Park Municipal Code means all sales receipts from bingo or bingo-related operations prior to deduction for any prizes paid and/or expenses. Pursuant to state statute and a court decision, pulltab cards are bingo operations, and sales must be reported at gross when reporting gross receipts. 9.66.310 City s Authority to Inspect Games and Audit Records. A. City public safety and auditing staff may enter, whenever the city City deems necessary, any bbingo game being operated within the city City to observe and monitor game operations as well as cash and inventory control procedures. B. H. The city City retains the right, upon reasonable notice, to examine and audit the accounting records, bank statements and original accounting source documents of any bbingo licensee permit holder to determine compliance to Rohnert Park Municipal Code 9.66with this chapter. The permit holder shall fully cooperate with the City by making such records available upon request. Failure to comply with a request for an audit is grounds for revocation of the permit. Comment [P22]: Separated out from RP MC 9.66.260. Also in Cloverdale MC 5.12.170 Page 15

SECTION 42. Environmental Review. The City Council finds that this ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Section 15060(c)(2) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, as the activity will not result in a direct or reasonably forseeableforeseeable indirect physical change in the environment and Section 15060(c)(3) of the CEQA Guidelines as it is not a project as defined by CEQA per Section 15378. SECTION 53. Severability. If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision will not affect the validity of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional. SECTION 64. Effective Date. This ordinance shall go into effect thirty (30) days after its adoption. SECTION 75. Publication. The City Clerk is directed to cause this ordinance to be published in the manner required by law. This ordinance was introduced by the City Council of the City of Rohnert Park at the regular meeting held this XX day of XXXXXXX 2015 by a vote of the City Council as follows: Comment [P23]: Also in Healdsburg Ordinance Section 23 AYES: NOES: ABSENT: ABSTAIN: CITY OF ROHNERT PARK Amy Ahanotu, Mayor ATTEST: Page 16

JoAnne M. Buergler City Clerk APPROVED AS TO FORM: Michelle Marchetta Kenyon City Attorney Page 17

ORDINANCE NO. 892 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK AMENDING TITLE 9 CHAPTER 9.66 OF THE ROHNERT PARK MUNICIPAL CODE RELATING TO BINGO GAMES SECTION 1. AUTHORITY: This Ordinance is adopted pursuant to the provisions set forth in Section 19, Article IV of the California Constitution and Penal Code 326.5, and pursuant to other applicable law. SECTION 2. FINDINGS: WHEREAS, bingo games provide recreational opportunities for residents of Rohnert Park and neighboring communities; and WHEREAS, bingo games are a source of proceeds for organizations furthering charitable purposes in and around Rohnert Park; and WHEREAS, Section 19, Article IV of the California Constitution and Penal Code 326.5 authorize cities to enact legislation to provide for bingo games for charitable purposes; and WHEREAS, the Legislature has amended Penal Code 326.5 several times since the City enacted its bingo ordinance; and WHEREAS, the City Council desires that the City s bingo ordinance reflect the full authority granted by the Legislature. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ROHNERT PARK DOES HEREBY ORDAIN AS FOLLOWS: SECTION 3: IMPOSITION OF ORDINANCE: In accordance with the authority provided by Section 19, Article IV of the California Constitution and Penal Code 326.5, the City Council of the City of Rohnert Park does hereby ordain that Title 9 Chapter 9.66 of the Rohnert Park Municipal Code is hereby amended and shall read as follows: CHAPTER 9.66 BINGO GAMES 9.66.010 Definitions As used in this chapter, the following words and phrases shall have the following meanings: A. Bingo means a game of chance in which prizes are awarded on the basis of designated numbers or symbols that are marked or covered by the player on a tangible card in the player s possession and that conform to numbers or symbols, selected at random and announced by a live caller. B. Charitable Purpose means purposes beneficial to the community as a whole or an unascertainable and indefinite portion thereof. Charitable Purposes may include, but are OAK #4832-3646-8264 v2 Page 1

not limited to relief from poverty, and advancement of education, the arts, science or religion. C. Eligible Organization means one of the following types of organizations: organizations exempted from the payment of the bank and corporation tax by Sections 23701a, 23701b, 23701d, 23701e, 23701f, 23701g, 23701k, 23701w, and 23701l of the Proceeds and Taxation Code; mobile home park associations; senior citizens organizations; charitable organizations affiliated with a school district; or organizations otherwise deemed eligible under California Penal Code Section 326.5(a). D. Prize means an award, either in cash or kind, stemming from participation in a Bingo game. E. Proceeds means proceeds directly related to the operation of a Bingo game. F. Overhead expenses include bingo equipment, administrative expenses, security equipment, security personnel, and disposable supplies used in the conduct of bingo games, such as but not limited to paper forms. 9.66.020 Permit Required. Bingo games may be conducted within the City, provided that the game is conducted by an Eligible Organization holding a permit issued in accordance with this chapter and, in addition, provided that any such game is conducted in compliance with the terms and conditions of such permit and applicable State law, including, but not limited to, California Penal Code, Section 326.5. 9.66.030 Permit Application. Any Eligible Organization desiring to obtain a permit for the conduct of any Bingo game within the City shall submit a written application to the Public Safety Department of the City, together with the appropriate fee as established by resolution of the City Council. 9.66.040 Application and Renewal Fee. The City Council, by resolution, may adopt and revise, from time to time, a schedule of fees for the processing of permit applications for the conduct of Bingo games. 9.66.050 Exemption from Fee. No application or renewal fee shall be required of any Eligible Organization stating in its application that it will use all Profits from the Bingo games solely for Prizes and to cover the costs of conducting the Bingo games, and not for any other purpose, including Charitable Purposes. 9.66.060 Administrative Fee for Public Safety Costs. An administrative fee for public safety costs may be imposed to cover costs incurred by the City that are directly related to Bingo activities and shall be collected monthly by the City; however, the fee shall not exceed the actual costs incurred in providing the service. OAK #4832-3646-8264 v2 Page 2

9.66.070 Permits Issued Only to Qualified Applicants. No permit shall be issued to any applicant unless the applicant is an Eligible Organization and its application conforms to the requirements, terms and conditions of Sections 9.66.020 through 9.66.320. 9.66.080 - Contents of Application. A. Each application for a permit to conduct Bingo games shall contain the following information: 1. The name of the applicant; 2. The business and mailing address of the applicant; 3. The name and signature of at least two officers, including the highest ranking officer of the organization s highest governing body; 4. A resolution of the governing body of such organization authorizing the conduct of any and all Bingo games proposed by the application and the purpose of the Bingo game; 5. The street number or other clear and specific identification of the location at which each Bingo games proposed in the application would be conducted and, in addition, a statement of the maximum capacity of the place in which such Bingo games would be conducted; 6. A description of the applicant s non-bingo activities conducted at each location; 7. The name and signature of the person who will actually conduct each and every bingo game proposed by the permit; 8. A precise description of the Bingo activities to be conducted at each Bingo game; 9. Proposed date, day of week, and hours of day for the conduct of each bingo game; 10. Financial information relevant to the application, including but not limited to: (1) the proposed budget of the applicant; (2) the anticipated charitable use of the funds; (3) the estimated receipts and expenses for the year together with such other information relevant to the application as required and approved by the Public Safety chief; (4) the name and address of the custodian of the financial records of the applicant; 11. A completed Acknowledgment of Responsibilities and Restrictions form, provided by the City, enumerating the applicable requirements in Section 326.5 of the Penal Code and this chapter, as they may be amended from time to time. The applicant shall sign this Acknowledgment of Responsibilities and Restrictions form agreeing to each provision and acknowledging the permit may be revoked by the Public Safety chief upon violation of any of such provisions; 12. Evidence that the applicant is an Eligible Organization. For organizations claiming to be exempt from the payment of the bank and corporation tax, evidence shall include a certificate or determination of exemption under the OAK #4832-3646-8264 v2 Page 3