BILL NUMBER: AB 1924	ENROLLED
	BILL TEXT

	PASSED THE SENATE  JULY 2, 2008
	PASSED THE ASSEMBLY  JULY 14, 2008
	AMENDED IN SENATE  JUNE 30, 2008
	AMENDED IN SENATE  JUNE 18, 2008

INTRODUCED BY   Assembly Member Jeffries

                        FEBRUARY 12, 2008

   An act to amend Section 326.5 of the Penal Code, relating to
bingo.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1924, Jeffries. Charitable bingo: overhead.
   The California Constitution allows the Legislature, by statute, to
authorize cities and counties to provide for bingo games for
charitable purposes. Existing law requires that the proceeds of bingo
games be used only for charitable purposes, with certain exceptions,
including an exception providing that no more than 20% of the
proceeds before the deduction for prizes, or $2,000 per month,
whichever is less, may be used for the rental of property and for
overhead.
   This bill, with respect to bingo games conducted by the Lake
Elsinore Elks Lodge only, would increase the amount of bingo proceeds
that may be used for rental and overhead, as described above, to 20%
of the proceeds before the deduction for prizes, or $3,000 per
month, whichever is less, and would require that the amount of
proceeds otherwise permitted, as specified, be used only for the
purpose of financing the rebuilding of the facility and replacing
equipment that was destroyed by fire in 2007. The bill would provide
that these provisions are to remain in effect only until the cost of
rebuilding the facility is repaid, or January 1, 2019, whichever
occurs first.



THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 326.5 of the Penal Code is amended to read:
   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 California 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 23701 of the Revenue and
Taxation Code and 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 California 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) Except as provided in subparagraph (B), 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.
   (B) For the purposes of bingo games conducted by the Lake Elsinore
Elks Lodge, a portion of the proceeds, not to exceed 20 percent of
the proceeds before the deduction for prizes, or three thousand
dollars ($3,000) 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. Any amount of the proceeds that is additional to that
permitted under subparagraph (A), up to one thousand dollars
($1,000.00), shall be used for the purpose of financing the
rebuilding of the facility and the replacement of equipment which was
destroyed by fire in 2007. The exception to subparagraph (A) that is
provided by this subparagraph shall remain in effect only until the
cost of rebuilding the facility is repaid, or January 1, 2019,
whichever occurs first.
   (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).
   () (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.
  SEC. 2.  Due to the unique circumstances regarding the Lake
Elsinore Elks Lodge and the destruction of its facility by fire in
2007, the Legislature hereby finds and declares that a general
statute cannot be made applicable within the meaning of Section 16 of
Article IV of the California Constitution. Therefore, the special
legislation contained in Section 1 of this act is necessarily
applicable only to the Lake Elsinore Elks Lodge.