BINGO Group Not Approved by Board
A request to form a bingo Group and apply for a Bingo Permit from the City in order to hold legal bingo games with prize money was on the Board of Director's Agenda 01/20/ 2010. The Board voted not to approve the group. They talked of difficulty getting a city permit and all the hoops to jump through to get it approved.
They said we did not qualify as 501c(3). It is true we are not a charitable non profit but we are a non profit CID and a senior community and there is specific exception for " and by mobilehome park associations and senior citizens organizations" which was the section we told we qualify l under NOT charitable organizations. The city attorney felt we met the requirements for the permit. These were not valid reasons for rejecting this group or not moving forward to get a city permit - yes, it was work or "hoops" but the work was already done prior to approaching the board.
The board also stated the requirement to be open to the public was a concern and reason not to approve it. That is fine, it is a valid concern.
But the other "reasons" were not based on accurate information and the rude response to residents questions about the process was not necessary. When questioned about their legal concerns they refused to answer residents questions . There should be no "secrets" as to how decisions are made. It seems curious that other California Del Webb communities run bingo games for the residents. How do they do it?
The residents deserve to have all the information - so below is the draft proposal which was approved by the city attorney and the laws regarding bingo in California.
Orginally the proposal was submitted with item #3 stating the games would be for residents only. The city attorney advised we had to allow the public p although we did not have to advertise the games outside of the community.
Proposal to have Bingo Games for Glenbrooke senior community.
1) The community is restricted to resident’s 55years and older.
2) A non-profit Homeowners Association governs the community.
3) The games would be open to the public over the age of 18 years.
4) The games would be held weekly.
5) The cards would cost one dollar per card to play for the entire session.
6) An 80/20 split would divide the income – meaning 80% of the proceeds would be given out as prize money during the current session. The remaining 20% would be held in reserve for to bingo supplies, equipment, and repairs.
7) The reserve fund would be held separately from any other account and not co-mingled with any other funds.
8) Any remaining funds (of the 20% not spent for bingo supplies or equipment) at the end of the fiscal year will be distributed to the leisure and educational groups of Glenbrooke recognized by the HOA Board of Directors.
9) No person will be paid from funds derived from bingo games. Volunteers will run the games but HOA staff may assist as part of their role in supporting activities of Glenbrooke.
10) Accounting and booking records would be made available to any interested party upon request.
11) Currently, there are 366 residents of Glenbrooke. Estimating that 10% might play in the weekly game that would be under 50 residents per week. Fully built out Glenbrooke will have approximately 620 homes (we are about half built out).
12) The games would take place in our own community center at the above address. This facility is for the use of members of the Homeowner Association (HOA).
13) Residents interested in starting the Bingo have experience running Bingo games in the state of California for a charitable non-profit and a school and are familiar with the Laws of the State of California that govern the playing of Bingo.
Thank you for your assistance in establishing one of the most popular leisure activities for our age group.
PENAL CODE
CHAPTER 9. 326.5 (1999)
Bingo games
326.5 . (a) Neither this chapter nor Chapter 10 (commencing with Section 330) applies to any bingo game that is conducted in a city, county, or city and county pursuant to an ordinance enacted under Section 19 of Article IV of the State Constitution, if the ordinance allows games to be conducted only by organizations exempted from the payment of the bank and corporation tax by Sections 23701a, 23701b, 23701d, 23701e, 23701f, 23701g, and 23701l of the Revenue and Taxation Codeand by mobilehome park associations and senior citizens organizations; and if the receipts of those games are used only for charitable purposes.
(b) It is a misdemeanor for any person to receive or pay a profit, wage, or salary from any bingo game authorized by Section 19 of Article IV of the State Constitution. Security personnel employed by the organization conducting the bingo game may be paid from the revenues of bingo games, as provided in subdivisions (j) and (k).
(c) A violation of subdivision (b) shall be punishable by a fine not to exceed ten thousand dollars ($10,000), which fine is deposited in the general fund of the city, county, or city and county that enacted the ordinance authorizing the bingo game. A violation of any provision of this section, other than subdivision (b), is a misdemeanor.
(d) The city, county, or city and county that enacted the ordinance authorizing the bingo game may bring an action to enjoin a violation of this section.
(e) No minors shall be allowed to participate in any bingo game.
(f) An organization authorized to conduct bingo games pursuant to subdivision (a) shall conduct a bingo game only on property owned or leased by it, or property whose use is donated to the organization, and which property is used by that organization for an office or for performance of the purposes for which the organization is organized.
Nothing in this subdivision shall be construed to require that the property owned or leased by, or whose use is donated to, the organization be used or leased exclusively by, or donated exclusively to, that organization.
(g) All bingo games shall be open to the public, not just to the members of the authorized organization.
(h) A bingo game shall be operated and staffed only by members of the authorized organization that organized it. Those members shall not receive a profit, wage, or salary from any bingo game. Only the organization authorized to conduct a bingo game shall operate such a game, or participate in the promotion, supervision, or any other phase of a bingo game. This subdivision does not preclude the employment of security personnel who are not members of the authorized organization at a bingo game by the organization conducting the 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 a bingo game.
(j) With respect to organizations exempt from payment of the bank and corporation tax by Section 23701d of the Revenue and Taxation Code, 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. Those profits shall be used only for charitable purposes.
(k) With respect to other organizations authorized to conduct bingo games pursuant to this section, 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. Proceeds are the receipts of bingo games conducted by organizations not within subdivision (j). Those proceeds shall be used only for charitable purposes, except as follows: (1) The proceeds may be used for prizes.
(2) A portion of the proceeds, not to exceed 20 percent of the proceeds before the deduction for prizes, or two thousand dollars ($2,000) per month, whichever is less, may be used for the rental of property and for overhead, including the purchase of bingo equipment, administrative expenses, security equipment, and security personnel.
(3) The proceeds may be used to pay license fees.
(4) A city, county, or city and county that enacts an ordinance permitting bingo games may specify in the ordinance that if the monthly gross receipts from bingo games of an organization within this subdivision exceed five thousand dollars ($5,000), a minimum percentage of the proceeds shall be used only for charitable purposes not relating to the conducting of bingo games and that the balance shall be used for prizes, rental of property, overhead, administrative expenses, and payment of license fees. The amount of proceeds used for rental of property, overhead, and administrative expenses is subject to the limitations specified in paragraph (2).
(l) (1) A city, county, or city and county may impose a license fee on each organization that it authorizes to conduct bingo games. The fee, whether for the initial license or renewal, shall not exceed fifty dollars ($50) annually, except as provided in paragraph (2).
If an application for a license is denied, one-half of any license fee paid shall be refunded to the organization.
(2) In lieu of the license fee permitted under paragraph (1), a city, county, or city and county may impose a license fee of fifty dollars ($50) paid upon application. If an application for a license is denied, one-half of the application fee shall be refunded to the organization. An additional fee for law enforcement and public safety costs incurred by the city, county, or city and county that are directly related to bingo activities may be imposed and shall be collected monthly by the city, county, or city and county issuing the license; however, the fee shall not exceed the actual costs incurred in providing the service.
(m) No person shall be allowed to participate in a bingo game, unless the person is physically present at the time and place where the bingo game is being conducted.
(n) The total value of prizes awarded during the conduct of any bingo games shall not exceed two hundred fifty dollars ($250) in cash or kind, or both, for each separate game which is held.
(o) As used in this section, "bingo" means a game of chance in which prizes are awarded on the basis of designated numbers or symbols on a card that conform to numbers or symbols selected at random. Notwithstanding Section 330c, as used in this section, the game of bingo includes 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. All preprinted cards shall bear the legend, "for sale or use only in a bingo game authorized under California law and pursuant to local ordinance." It is the intention of the Legislature that bingo as defined in this subdivision applies exclusively to this section and shall not be applied in the construction or enforcement of any other provision of law.
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As stated I agree with the Board about concerns for letting in the public. However, instead of just DENIED, why couldn't the Board send it back to a volunteer committee to research and come back with recommendations? A committee could have visted Del Webb Manteca and Lincoln and learned from them. It doesn't have to be all or nothing.
Why can't WE get a volunteer committee to visit those communities and do our own research about a number of concerns we have...or maybe connect with some residents of those communities?
I hate that they say public can attend. They did say we didn't have to advertise to the public.
Seriously, we have a limited room capacity and I believe pre- sale sign ups and tickets to residents will fill the room; no advertising. It wasn't planned for weekly, we don't have that kind of volunteer base. If there were no set date (ie every Friday) but vary the dates and times 2x a month that would take care of the problem of too many people. Plus let's face it our $10 or $25.00 pots would not attract the "real bingo players" but we increase resident's enjoyment.
I guess if I were a board member, I would have asked a resident committee to come up with procedures that would protect the property. Then I would approve getting the permit from the city and give it a 6MONTH TRIAL period. Re-evaluate, if there were any problems, reconsider. If no problems and residents liked it keep going, but the bottom line is the plug could be pulled anytime if it became harmful to the community.