Chapter 4.23
BINGO SUPPLIERS
Sections:
4.23.010 Definitions – Generally.
4.23.015 Definitions – “Bingo supplier.”
4.23.020 Definitions – “Bingo.”
4.23.035 Records – Compliance examination and inspection.
4.23.037 Retention of records.
4.23.040 Limitation on involvement in bingo.
4.23.045 Prohibition of financial interest in bingo.
4.23.055 Computerized equipment.
4.23.060 Temporary suspension of license pending opportunity for hearing.
4.23.065 Notice of temporary suspension and appeal – Appeal of underlying suspension and revocation.
4.23.075 Operating and conducting business after temporary suspension or suspension.
4.23.080 Receipt of profit by a person and penalty for violation of this chapter.
4.23.000 Purpose.
A system of regulating bingo suppliers in conjunction with the regulation of organizations authorized to conduct bingo games pursuant to Section 326.5 of the Penal Code and of bingo parlors is necessary to ensure the maximum use of bingo proceeds and profits for charitable purposes and to limit the abuses stemming from increased commercialization of bingo in the City. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]
4.23.010 Definitions – Generally.
As used in this chapter, the terms identified by EGMC Sections 4.23.015 and 4.23.020 shall be ascribed the meanings indicated. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]
4.23.015 Definitions – “Bingo supplier.”
A “bingo supplier” means any person or enterprise which, for a consideration, sells, rents, supplies, provides or furnishes equipment, products, goods, paper or other items for use in the conduct of bingo games. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]
4.23.020 Definitions – “Bingo.”
As used in this chapter, the term “bingo” shall be deemed to mean a game of chance as specifically defined in EGMC Section 4.21.010. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]
4.23.025 License required.
No person shall, unless under and by authority of a valid, unrevoked and unexpired special business license, sell, rent, supply, provide or furnish for a consideration any equipment, products, goods, paper or other items for use in the conduct of bingo games. A bingo supplier shall be deemed to operate or conduct business within the City if the bingo supplier or representatives thereof sell, rent, supply, provide or furnish for a consideration, within the City, any equipment, products, goods, paper or other items for use in the conduct of bingo games, whether or not the bingo supplier operates from a fixed location within another jurisdiction. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]
4.23.030 Issuance.
The Chief of Police shall issue a special business license unless:
A. One (1) or more of the findings set forth in EGMC Section 4.10.040 is made;
B. The bingo supplier sells, rents, supplies, provides or furnishes any equipment, products, goods, paper or other items for use in conjunction with or in the conduct of bingo games in a manner which violates Section 326.5 of the Penal Code, this chapter, City regulations adopted pursuant to this chapter, or any other applicable State of California, City of Elk Grove, Federal law, or administrative rule or regulation;
C. The applicant has a current license under EGMC Chapter 4.21 or 4.22; or
D. The applicant has violated or is not in compliance with this chapter, Section 326.5 of the Penal Code, or any other applicable State of California, City of Elk Grove, Federal law, or administrative rule or regulation. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]
4.23.035 Records – Compliance examination and inspection.
A. The bingo supplier licensee shall keep full and accurate records of all inventory, income received and expenses disbursed in connection with the sale, rental, supply, provision or furnishing of any equipment, products, goods, paper or other items for use in the conduct of bingo games, and as necessary to determine or establish compliance with the provisions of this chapter, City regulations adopted pursuant to this chapter, Section 326.5 of the Penal Code, or any other applicable State of California, City of Elk Grove, Federal law, or rule or administrative regulation. The records shall be of such types and maintained in such manner as may be prescribed by the Chief of Police; and when not so prescribed, shall be of such types and maintained according to the requirements of generally accepted principles of accounting.
B. The Chief of Police or any other authorized representative of the City shall have the right to inspect, conduct a compliance examination, review, audit, or photocopy supplier licensee records as described in subsection (A) of this section at any reasonable time and the license holder shall fully cooperate by making such records and photocopies thereof available to the Chief of Police upon demand. The licensee shall deliver the records for the purpose of a compliance examination, review, audit, inspection, or for photocopy to the office of the Chief of Police during reasonable hours upon demand of the Chief of Police.
C. Compliance examinations shall be conducted by the Chief of Police of supplier licensee records described in subsection (A) of this section not less frequently than annually, for each twelve (12) months of each licensee’s operation.
D. Such records shall be subject to disclosure only pursuant to:
1. Any suspension, revocation or other proceeding conducted under this chapter or the City regulations adopted pursuant to this chapter; or
2. Any civil or criminal investigation conducted by the Chief of Police, the District Attorney, the Grand Jury or the City Attorney. For all other purposes, the records shall be kept confidential by the Chief of Police, as custodian of those records. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]
4.23.037 Retention of records.
The supplier licensee shall keep and preserve the records described in EGMC Section 4.23.035(A) for the following period of time, whichever occurs later:
A. Three (3) years;
B. Until completion of a compliance examination; or
C. Until the administrative or judicial appeal process, whichever is applicable, is final, if the license has been suspended, revoked, or a renewal denied. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]
4.23.040 Limitation on involvement in bingo.
The licensee shall not organize, manage, supervise, conduct, control or otherwise participate in or influence either the operation of any bingo game conducted in the City or the promotion thereof. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]
4.23.045 Prohibition of financial interest in bingo.
A. With the exception of revenue generated by any business or enterprise for which a special business license is required pursuant to this chapter, no bingo supplier shall have a financial interest in the conduct of a bingo game operated in the City. A licensee shall be deemed to have a financial interest in the conduct of a bingo game including, but not limited, to the following situations:
1. The price or cost of bingo supplies is adjusted by the licensee based on the profits, losses or tax exempt status of any organization licensed under EGMC Chapter 4.21;
2. The licensee absorbs, assumes, shares or otherwise participates in the losses or profits of any bingo game conducted by any organization licensed under EGMC Chapter 4.21; or
3. The licensee maintains an accounts receivable for an organization licensed to conduct bingo games pursuant to EGMC Chapter 4.21 for amounts owed to the bingo supplier for a period that exceeds thirty (30) days from the invoice date or ten (10) days from the statement date, whichever occurs later. For purposes of this subsection, “invoice date” is defined as the date of delivery of such supplies and “statement date” is defined as the date within thirty (30) days of the delivery of supplies.
B. The licensee, with knowledge that a bingo licensee licensed pursuant to ECMC Chapter 4.21 has not paid its supplier account(s) to any supplier within the required period as provided in subsection (A)(3) of this section, shall not sell or rent supplies to such a bingo licensee until all the bingo licensee’s account(s) are brought within the time period provided for within subsection (A)(3) of this section. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]
4.23.050 Required records.
Licensed bingo suppliers shall maintain a complete set of records which includes details of all activities. These records shall include, but are not to be limited to, the following:
A. Preprinted sales invoices which reflect the following information:
1. Date of sale;
2. The customer name and complete business address;
3. A description and stock number of each line item sold; and
4. Quantity and sales price of each line item.
B. The original and two (2) copies of the preprinted sales invoice shall be prepared and maintained as follows:
1. Original issued to the customer;
2. A copy retained in a file by customer name; and
3. A copy file in (invoice number) numerical sequence.
C. Credit memos for returned items shall be prepared in the same detail as items described in subsection (A) of this section. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]
4.23.055 Computerized equipment.
A. Except as provided in subsection (B) of this section, it shall be unlawful for bingo suppliers licensed under this chapter to:
1. Sell, rent, supply, provide or furnish machines, devices, or equipment that is computerized, electronic, or mechanical to an organization licensed to conduct bingo pursuant to EGMC Chapter 4.21 for use in a bingo game; or
2. Sell, rent, supply, provide, or furnish equipment for use in a bingo game in which the numbers to be called are selected by electronic means rather than by random selection of numbered balls from a pool of game balls.
B. Electronic Bingo Aid.
1. Purpose. The purpose of this subsection is not to permit a licensed bingo supplier to sell, rent, supply, provide or furnish to organizations licensed to conduct bingo pursuant to EGMC Chapter 4.21 all electronic aids for use in bingo. The purpose is to permit the licensed supplier to sell, rent, supply, provide or furnish to such organizations the use of electronic bingo aids on the conditions set forth herein. It is contemplated that an electronic bingo aid will include individual units or components to be used by players and that these units or components will be activated by the organizations licensed to conduct bingo for a player’s operation. These individual player units or components are handheld devices or desktop devices to be used in conjunction with bingo cards. It is contemplated that an electronic bingo aid will permit a bingo player to input into an activated individual player unit or component randomly selected numbers called by an organization licensed to conduct bingo pursuant to EGMC Chapter 4.21 in order to match such numbers against programmed information to identify a winning card. The programmed information reflects the exact configurations of the bingo cards sold to and played by the player. The electronic bingo aid is not to alter the bingo cards. The electronic bingo aid is to be used in conjunction with bingo cards in order to assist the player in identifying a winning card. The electronic bingo aid is not to be used as an electronic or computerized game of bingo, or as a substitute for required bingo cards, or as a substitute for any other requirements of bingo as provided in EGMC Chapter 4.21 or in Section 326.5 of the Penal Code.
2. An electronic bingo aid to assist in the identification of a winning card or paper may be sold, rented, supplied, provided or furnished to an organization licensed pursuant to EGMC Chapter 4.21 to conduct bingo by a licensed bingo supplier if the licensed bingo supplier complies with the conditions set forth in subsections (B)(3) through (B)(11) of this section, and if the supplier complies with all other required provisions of this chapter and Section 326.5 of the Penal Code. Violation of any or all of such provisions and conditions shall constitute grounds for revocation, suspension, or denial of the special business license to conduct the business of a bingo supplier, pursuant to the procedures set forth in this chapter and EGMC Chapters 4.02 and 4.10.
3. An electronic bingo aid shall assist a player to mark, otherwise register, or record, numbers selected at random in order to identify a winning bingo card. An electronic bingo aid shall not replace or alter bingo cards. The electronic bingo aid shall be programmed either by the supplier licensee at the direction and as specified by an organization licensed to conduct bingo pursuant to EGMC Chapter 4.21, or by the organization licensed to conduct bingo. The electronic bingo aid shall be programmed only with bingo card configurations corresponding exactly to bingo card configurations used by such licensed organization. A copy of any change made by the supplier licensee in the program of a programmed electronic bingo aid shall be submitted to the Chief of Police. The electronic bingo aid shall permit licensed organizations to enable the electronic bingo aid, including the individual player-operated units or components, for play on the premises where the games are conducted. The electronic bingo aid shall not interfere or interact with the element of chance in the game.
4. The electronic bingo aid shall permit a player to use a player-operated unit or component of the electronic bingo aid to manually input numbers called in a bingo game into the electronic bingo aid. Automatic daubing shall not be a feature of the electronic bingo aid. The portion of the electronic bingo aid system in the immediate physical possession and operation of the organization licensed by EGMC Chapter 4.21 to conduct the games, and the individual player-operated units or components of the electronic bingo aid used by a player, shall identify winning cards during a game. The portion of the electronic bingo aid system in the immediate physical possession and operation of the organization licensed to conduct bingo shall be capable of printing a winning card for verification during the game; the individual player-operated units or components shall not have this feature.
5. A particular type of electronic bingo aid shall not be sold, rented, supplied, provided or furnished to an organization licensed to conduct bingo pursuant to EGMC Chapter 4.21 by a licensed bingo supplier until the licensed supplier has demonstrated the electronic bingo aid to the Chief of Police, and such electronic bingo aid has been inspected by, and approved by, the Chief of Police.
6. An electronic bingo aid may be removed from the place where the games are conducted solely by the supplier licensee for repair or to transfer to another organization licensed to conduct bingo pursuant to EGMC Chapter 4.21 for the conduct of bingo. The supplier licensee shall keep a record of the bingo electronic aid received; the date received; the repairs made, if any; the particular malfunction, if any; the name of the licensed organization that the electronic bingo aid or part thereof was removed from; and the date the aid or part thereof is returned to an organization if returned, or notation of what action taken if not returned.
7. The electronic bingo aid shall have a dial-up capability so that the Chief of Police may remotely monitor the operation and internal accounting system of the electronic bingo aid at any time. The electronic bingo aid shall contain a point of sale accounting system that allows it to track all financial activity for a bingo session. The bingo supplier licensee’s accounting records pertaining to electronic bingo aids shall be retained as prescribed by EGMC Section 4.23.050. An electronic bingo aid shall work with an accounting system that records, and retains for a retention period of not less than that found in EGMC Section 4.21.080, the serial number of each bingo card or face sold, the price of each card sold, and the total amount of the electronic bingo aid proceeds from each session. An electronic bingo aid’s capabilities and information must not be lost through power failure or other disruption during the session.
8. An electronic bingo aid shall have the capability to permit organizations licensed to conduct bingo to print the configurations of the bingo cards or papers that are programmed into the device; but, the individual player-operated units or components shall not have this feature.
9. The electronic bingo aid including related circuitry shall be sealed and secured in order to prevent unauthorized removal, additions, changes, or other alterations or tampering with the data within such electronic bingo aid.
10. If the Chief of Police detects or discovers any problem with an electronic bingo aid, including the player-operated electronic bingo aid unit or component, or any related system or parts, that affects the integrity of the bingo game, or such equipment, the Chief of Police may, upon demand, examine and inspect such equipment, as applicable, if it is in possession of the supplier licensee after removal from the place where the game of bingo is conducted. The Chief of Police may upon demand examine and inspect any electronic bingo aid, player-operated unit or component of an electronic bingo aid, or related system or parts, for sale, rent, supply, or to be provided or furnished by the supplier licensee to an organization licensed to conduct bingo. Such examinations and inspections shall include immediate access to the electronic bingo aid, including the player-operated unit or component of an electronic bingo aid, and unlimited inspection of all parts and associated systems, as applicable; and may involve the removal of such equipment, as applicable, from the supplier licensee’s premises or possession for further testing. Upon the Chief of Police’s demand, the supplier licensee shall immediately comply and cooperate with the Chief of Police for such examinations, inspections, or removals.
11. If at any time the Chief of Police detects or discovers any problem with an electronic bingo aid, or with a player-operated bingo unit or component of the electronic bingo aid, or with any related system or parts, that affects the security or the integrity of a bingo game or such equipment, the Chief of Police may order the supplier licensee to cease the sale, rental, supply, or provision or furnishing of such electronic bingo aid or player-operated unit or component, as applicable, to an organization licensed to conduct bingo, and the supplier licensee shall comply immediately with such Chief of Police’s order.
12. If at any time the supplier licensee detects or discovers any problem with an electronic bingo aid, or with a player-operated unit or component of the electronic bingo aid, or any related system or parts, that affects the security or the integrity of a bingo game or such equipment, the supplier licensee shall cease immediately to sell, rent, supply, provide, or furnish the electronic bingo aid or player-operated unit or component, as applicable, to an organization licensed to conduct bingo, and shall notify the Chief of Police, and organizations licensed to conduct bingo who have secured possession of such electronic bingo aid from such bingo supplier, of such malfunction, problem or occurrence. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]
4.23.060 Temporary suspension of license pending opportunity for hearing.
The Chief of Police shall have the authority to temporarily suspend the supplier’s license by ordering in writing that the licensee immediately cease and desist any further operations of the bingo supply business pending expiration of the time for appeal or exhaustion of an appeal pursuant to the provisions and notice procedure of EGMC Section 4.10.145 if the Chief of Police finds that such temporary suspension is necessary in order to protect against a serious and immediate threat to the health or safety of the public caused by exercise of the license, and one (1) of the following occurs:
A. The supplier licensee is conducting its operation in violation of any of the provisions of this chapter, Section 326.5 of the Penal Code, the City regulations adopted pursuant to this chapter, or any other applicable State of California, City of Elk Grove, Federal law, or administrative rule or regulation;
B. The supplier licensee has not made available for the conduct of a compliance examination, audit, review, inspection, or for photocopying, at any reasonable time upon the demand of the Chief of Police all records necessary to determine or establish compliance with the provisions of this chapter, City regulations adopted pursuant to this chapter, Section 326.5 of the Penal Code, or any other applicable State of California, City of Elk Grove, Federal law, or administrative rule or regulation; or
C. The supplier licensee has not kept records as prescribed by the Chief of Police, this chapter, Section 326.5 of the Penal Code, City regulations adopted pursuant to this chapter, or any other applicable State of California, City of Elk Grove, Federal law, or administrative rule or regulation; or, has not kept records necessary to determine compliance with applicable laws and administrative rules and regulations pursuant to generally accepted principles of accounting when such records are not prescribed to be kept in any specific manner or type by the Chief of Police, this chapter, City regulations adopted pursuant to this chapter, Section 326.5 of the Penal Code, or any other applicable State of California, City of Elk Grove, Federal law, or administrative rule or regulation. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]
4.23.065 Notice of temporary suspension and appeal – Appeal of underlying suspension and revocation.
A. The temporary suspension shall be effective no sooner than twenty-four (24) hours following the time and date of delivery of the notice thereof as is provided in EGMC Section 4.10.145 and the procedures for appeal and notice of temporary suspension shall be as prescribed in EGMC Section 4.10.145.
B. Upon timely request by the licensee, the appeal hearing process and related procedures of the revocation or suspension of its license pursuant to EGMC Section 4.10.135 shall proceed pursuant to the provisions of EGMC Sections 4.10.115 through 4.10.155. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]
4.23.075 Operating and conducting business after temporary suspension or suspension.
Any person(s) who continues to operate and conduct the business of a bingo supplier after temporary suspension pursuant to EGMC Section 4.23.065, or suspension pursuant to EGMC Section 4.10.135, is guilty of a misdemeanor. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]
4.23.080 Receipt of profit by a person and penalty for violation of this chapter.
A. It is a misdemeanor under Section 326.5(b) of the Penal Code for any person to receive or pay a profit, wage or salary from any bingo game authorized under this chapter. Payment received by a bingo supplier for supplies purchased by a bingo licensee licensed pursuant to EGMC Chapter 4.21 shall not be deemed a violation of this section. A violation of this prohibition is punishable by a fine not to exceed Ten Thousand and no/100ths ($10,000.00) Dollars payable to the general fund of the City of Elk Grove.
B. A violation of any of the provisions of this chapter, City regulations adopted pursuant to this chapter, Section 326.5 of the Penal Code, or any other applicable State of California, City of Elk Grove, Federal law, or administrative rule or regulation shall be grounds for the Chief of Police to suspend, revoke, or deny the renewal of a special business license for a bingo supplier issued pursuant to the provisions of this chapter. [Ord. 7-2009 §3, eff. 5-1-2009; Ord. 41-2005 §3, eff. 1-14-2006]