The URL can be used to link to this page

Home My WebLink About2010/11/23 Item 18 CITY COUNCIL AGENDA STATEMENT ~v{;:. CITY OF .~ (HUlA VISTA November 23, 2010, Item No.;)? REVIEWED BY: ORDINANCE OF THE CITY OF CHULA VISTA AMENDING MUNICIPAL CODE SECTION 9.12.130 TO AUTHORIZE REMOTE CALLER BINGO CITY ATTORt'lEY'S OFFICE c!1- CITY ATTORt"lEY'S OFFIC~ 4/5THS VOTE: YES D NO ~ ITEM TITLE: SUBMITTED BY: SUMMARY The City Attorney's Office has received written requests from non-profit organizations such as St. Pius X Catholic Church to alter the Chula Vista Municipal Code to authorize "remote caller bingo." Currently the Chula Vista Municipal Code prohibits remote caller bingo. State law has been amended to authorize remote caller bingo if it is conducted by eligible organizations for charitable purposes and in the manner set forth in the state legislation. Therefore, because the Municipal Code currently prohibits remote caller bingo it needs to be amended to authorize it. The Chula Vista Police Department, as monitoring agency of bingo gaming within city limits, has no objection to the requested ordinance. Accordingly, staff recommends the Council approve the ordinance revisions authorizing Remote Caller Bingo. BACKGROUND The City of Chula Vista's Bingo Ordinance was adopted in 1976, in accordance with state legislation allowing the conduct of bingo games for charitable purposes. Since then, state law governing bingo games has been updated, including legislation in 2008, entitled the Califomia Remote Caller Bingo Act, codified at Penal Code sections 326.3 and 326.4, which authorizes eligible nonprofit organizations to conduct remote caller bingo as a means to raise funds for charitable purposes. Remote caller bingo is based on traditional bingo. Numbers or symbols on randomly drawn plastic balls are announced by a live bingo caller at a host game site, and simultaneously transmitted by the use of audio or video technology to remote game sites. The host game site and remote game sites are operated by members of affiliated nonprofit organizations. All remote . caller bingo sites must be located within California. 18-1 11/23/10, Item No. 1'2 Page 2 of 3 One key difference between remote caller bingo and traditional bingo is that remote caller bingo offers the potential for higher prize amounts because remote caller bingo prizes are based on a percentage of gross receipts of the game to a maximum of 37%. Traditional bingo prizes are limited to $500 per game. The higher prize amounts and increased player participation, resulting from the addition of remote sites, are expected to attract more players, thus increasing the benefits to the nonprofits operating the games. The state legislature has recognized that bingo games provide a fundraising strategy to charities, which provide many essential educational and social service services to the public. Many nonprofits have historically used bingo as one of their key fundraising activities. The legislature intendcd for the recent legislation to provide an opportunity for greater revenues for nonprofits through the use of remote caller bingo. FINDINGS Remote caller bingo is currently illegal in Chula Vista because the Municipal Code does not explicitly authorize it. The City received a request from St. Pius X Catholic Church to consider the adoption of an Ordinance authorizing remote caller bingo. Other charitable organizations have expressed a desire to begin using remote caller bingo to raise funds for charitable purposes in the community, but cannot do so unless the Municipal Code is amended to authorize this type of bingo. The proposed amendment is consistent with Califol11ia state law, which allows remote caller bingo ifit is conducted according to conditions set forth in the Act. The conditions include, but are not limited to: . Only qualifying organizations can obtain a license to operate remote caller bingo, including fraternal organizations, business leagues, chambers of commerce, nonprofit corporations organized for religious, charitable or education purposes, veteran's organizations, mobile home park associations, and senior citizen organizations; . Operation of bingo cannot be the primary purpose for which the organization was formed; . Games can only be conducted two days per week, plus one additional game per calendar quarter; and . Receipts from the games must be used only for charitable purposes. The Califol11ia Gambling Control Commission ("CGCC"), not the city, is the govel11ment agency authorized to regulate the licensing and operation of remote caller bingo games. However, in order to conduct remote caller bingo games, a nonprofit must be licensed or authorized by a city or county to conduct bingo games and the city's ordinance must specifically authorize this type of bingo game. The local license and its expiration date must be submitted to the CGCC in order for the organization to engage in remote caller bingo games. The proposed Ordinance requires bingo licensees to notify the City that they will conduct remote caller bingo games, and subjects their license to revocation for violations of the remote caller bingo statutes. 18-2 11/23/10, Item No. I'? Page 3 of 3 ENVIRONMENT AL REVIEW This proposed activity has been reviewed for compliance with the California Environmental Quality Act (CEQA) and it has been determined that the activity is not a "Project" as defined under Section 15378 of the state CEQA Guidelines because it will not result in a physical change in the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to the CEQA. Thus, no environmental review is necessary. RECOMMENDA nONS Counci I adopt the ordinance revisions. BOARDS/COMMISSION RECOMMENDATION N/A. DECISION MAKER CONFLICT This Item is not site-specific therefore there are no conflicts based on the 500-foot proximity of councilmember property holdings. FISCAL IMPACT No fiscal impact is antici pated. ATT ACHMENTS 1. Proposed Ordinance Revisions. Prepared bY' Chance Hawkllls, Deputy Ciry Attorney, City Attorney '5 Office J:\Atto111ey\Chance Hawkins\StatT Reps & Ords\Stf.Reprt.Bingo.Remote.Cal1er.doc ( 18-3 ORDINANCE NO. ORDINANCE OF THE CITY OF CHULA VISTA AMENDING MUNICIPAL CODE SECnON 9.12.130 TO AUTHORIZE REMOTE CALLER BINGO WHEREAS, remote caller bingo is a type of bingo game where the random draw of numbers or symbols is conducted and announced in one location, and players can participate from another location using audio or video technology; WHEREAS, California municipalities are authorized pursuant to state law to pass an ordinance authorizing rcmote caller bingo, if the games are conducted according to the conditions set forth in state law, including limits on the types of organizations that can conduct remote caller bingo, and a requirement that proceeds from remote caller bingo be used for non-profit purposes; WHEREAS, the City has received inquIrIes from nonprofit charitable organizations within Chula Vista that are interested in conducting remote caller bingo as a charitable fundraising activity; WHEREAS, the use of remote caller bingo for charitable fundraising, according to the conditions set forth in state law, would provide a benefit to the community; and WHEREAS, there is a need to amend Chapter 9.12 of the Chula Vista Municipal Code in order to authorize remote caller bingo. NOW, THEREFORE, the City Council of the City OfChula Vista does, hereby, ordain as follows: SECTION I. That Chula Vista Municipal Code Section 9.12.130 be amended to read as follows: 9.12.130 Bingo - Detinitions. Whenever, in CVMC 9.12.120 through 9.12.240, the following terms are used. they shall have the meaning respectively ascribed to them in this section: A. "Bingo" means a game of chance in whieh prizes are awarded on the basis of designated numbers or symbols on a card which confoTI11 to numbers or symbols selected at random. Bingo shall also include cards having numbers or symbols which 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. 18-4 B. "Nonprofit charitable organization" means an organization exempted from the payment of the bank and corporation tax by Sections 23701 a, 23701 b, 23701 d, 23 70 1 c, 2370 It; 2370 Ig. 23 70 1 k.aR8-2370 Ii Dncl 23 70 I w of the Revenue and Taxation Code, and by mobilehome park associations, atttJ.-senior citizen organizations and charitable ol'f!d!1izations ai'jili~lted with (j school district; and provided, that the receipts of such games are used only for charitable purposes. C. "Remote Caller Bingo." a type ofbinuo '2."me authorized bv California Penal Code Scctioll, 326.3 and 326.4. melV be lawfullv Qlavccl in the Citv ofChula Vista PUI'SLlilll1 to state law and this chaPter undnot otherwisc. Nonprotit charitable or'2.unizations identified in Subscction B above must provide Pr<Jo!'to the Chici' ol'l'oliee that that thev are licensed DUfsuant to Penal Code Sections 326.3 and 326.4 prior to enga!lini! in Remote Caller BinC'.o. SECTION Ii. EFFECTIVE DATE. This ordinance will take effect and be in force thirty days after tinal passage. Presentcd by Approved as to form by ---? ---.... ---- /....-:::/ -- -;;.-- ..- j /'. ., /::d <-_.-.-_.._~.__._._.,-.,_. /;e-~ Bart C. MiesfeldJ ;/ f,f'V? '''I City Attorney Chance Hawkins Deputy City Attorney 18-5