BILL NUMBER: SB 383 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JUNE 28, 2012
AMENDED IN SENATE JANUARY 12, 2012
AMENDED IN SENATE JANUARY 4, 2012
AMENDED IN SENATE MAY 27, 2011
AMENDED IN SENATE MAY 11, 2011
AMENDED IN SENATE APRIL 25, 2011
AMENDED IN SENATE MARCH 31, 2011
INTRODUCED BY Senator Wolk
FEBRUARY 15, 2011
An act to repeal Sections 19850.5 and 19850.6 of the Business and
Professions Code, and to amend Sections 326.3 and 326.5 of
and repeal Section 326.3 of, and to amend, repeal, and
add Section 326.5 of, the Penal Code, relating to bingo,
making an appropriation therefor, and declaring the urgency
thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
SB 383, as amended, Wolk. Remote caller bingo.
The California Constitution allows the Legislature, by statute, to
authorize cities and counties to provide for bingo games for
charitable purposes. Existing law authorizes cities and counties to
permit eligible nonprofit organizations to conduct bingo games and
remote caller bingo games, as defined, for charitable purposes
pursuant to an ordinance that allows those games to be conducted in
accordance with specified requirements. Existing law sets forth a
model ordinance for a city, county, or city and county to authorize
remote caller bingo, and prohibits an organization from conducting
remote caller bingo more than 2 days per week. Existing law requires
an organization authorized to conduct remote caller bingo games to
provide at least 30 days' advance written notice of its intent to
conduct a remote caller bingo game.
This bill additionally would permit a city, county, or city and
county to amend an existing local ordinance that allows bingo games
to be conducted within that jurisdiction, by resolution, to permit
the conduct of remote caller bingo games pursuant to that ordinance,
as specified. The bill would include among those organizations
eligible to conduct remote caller bingo a charitable organization
affiliated with a community college district. The bill would prohibit
an organization from conducting remote caller bingo more than 2 days
per week, but would permit an organization to hold one additional
game, at its election, in each calendar quarter. The bill would
require an organization authorized to conduct remote caller bingo
games to provide at least 10 days' advance written notice of intent
to conduct a remote caller bingo game on a form prescribed by the
city, county, or city and county, and to provide notice within 24
hours if the location of the remote caller bingo game changes. The
bill also would repeal the model ordinance.
Existing law requires the California Gambling Control Commission
to regulate remote caller bingo, including licensure and operation.
Among other things, any person who conducts a remote caller bingo
game and any person who manufactures or otherwise provides equipment
for use in the playing of a remote caller bingo game are required to
be licensed. Existing law also requires the commission to approve all
equipment used for remote caller bingo in advance, to monitor
operation of the transmission and other equipment used for remote
caller bingo, and to monitor the game.
This bill would delete all state licensure requirements for the
conduct of remote caller bingo, and would, instead, require an
organization that is eligible to conduct remote caller bingo games to
register annually with the commission or the Department of
Justice , as specified. The bill would require the commission
or the department to maintain a registry on its
Internet Web site of all organizations registered to
conduct remote caller bingo and the dollar amount received by
those organizations to repay a specified loan to the Charitable Bingo
Mitigation Fund . The bill would authorize the commission
or the department to charge an annual registration fee of
$100, to be deposited into the California Bingo Fund, to cover the
commission's actual costs to administer and
enforce these provisions, and would authorize the commission or
the department to adopt regulations in that regard. The bill
would require an organization licensed to conduct remote caller
bingo, or a management company contracted with a licensed
organization, to register all of its local bingo licenses with the
commission or the department . The bill would authorize
the commission or the department to charge a fee to cover
the cost of the this registration
requirement and would require that registration information be made
available to the public upon request.
The bill would make other technical and conforming changes
relating to the duties of the Department of Justice
department and the commission, including setting
forth procedures for a city, county, or city and county, as the
local licensing entity, to obtain request
a background check from the department. The bill would
authorize the department to charge a fee sufficient to
cover the cost of processing the background check, and would provide
for the deposit of that fee revenue into the Fingerprint Fees
Account, to be continuously appropriated to the department for that
cost. By providing for a continuous appropriation, the bill would
make an appropriation. The bill also would require the department to
conduct a background investigation of each management company and to
conduct field enforcement, as specified. The bill would delete
the requirement that the commission approve all equipment used for
remote caller bingo in advance, but would require the city, county,
or city and county to monitor operation of the transmission and other
equipment used for remote caller bingo and to monitor the game. The
bill would authorize the commission or the department to
audit the books and records of a licensed organization or a
management company contracted by a licensed organization to conduct
remote caller bingo at any time and to charge a fee for the audit.
The bill would require the audit information to be made available to
the public upon request. Additionally, the bill would require a
management company to retain an independent California certified
public accountant to conduct an annual audit of its books and
records, and would subject a management company to a civil penalty
for filing false information with the commission or the
department .
To ensure continuity of remote caller bingo games, this
bill would, until June 1, 2012, authorize a city, county, or city and
county to recognize a state license, work permit, or approval of
equipment that was issued by the commission and in effect on June 30,
2011, as specified. The bill would permit an authorized
organization to contract with a management company to provide
business services, but would require the organization to give notice
of the contract to the city, county, or city and county and to meet
other requirements, as specified. The bill would require the live,
physical calling and broadcast of a remote caller bingo game to be
conducted from a jurisdiction that authorizes by local ordinance the
conduct of remote caller bingo games.
This bill would make additional changes relating to the
requirements for cosponsoring remote caller bingo games, and would
simplify other procedures and requirements applicable to the conduct
of remote caller bingo games.
Under existing law, any violation of the remote caller bingo
provisions described above is a misdemeanor, punishable as specified.
This bill would expand the scope of an existing crime by imposing
different requirements for the conduct of remote caller bingo,
thereby creating a state-mandated local program.
Existing law required the California Gambling Control Commission
to submit a report to the Legislature, on or before January 1, 2012,
on the fundraising effectiveness and regulation of remote caller
bingo. A loan from the Gambling Control Fund to the California Bingo
Fund for the startup costs relating to remote caller bingo is
required to be repaid within 5 years after the date of the loan.
This bill would delete that reporting requirement, and would
delete the requirement that the startup loan be repaid within 5
years. The bill would require the department and the commission,
on or before October 1, 2015, to report their findings to the
Legislature, as to whether continuation of the remote caller bingo
program and state oversight of that program is warranted
based on specified findings. The bill would repeal the remote caller
bingo program as of January 1, 2017.
Existing law authorizes players who are physically present at a
bingo game to use hand-held, portable card-minding devices, as
specified, that are approved prior to use by the California Gambling
Control Commission. Additionally, the commission is required to
license persons or entities that manufacture, supply, or service
card-minding devices and related equipment, and may inspect and
prohibit the use of any card-minding devices that are noncompliant.
Existing law requires the commission to adopt regulations concerning
remote caller bingo and card-minding devices.
This bill would repeal these provisions relating to card-minding
devices and the duties of the commission.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
This bill would declare that it is to take effect immediately as
an urgency statute.
Vote: 2/3. Appropriation: no yes .
Fiscal committee: yes. State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. It is the intent of the Legislature in
enacting this act to be consistent with the Governor's Reorganization
Plan No. 2 of 2012 (GRP 2), which consolidates the support,
investigatory, auditing, and compliance functions of the California
Gambling Control Commission and transfers these duties to the
Department of Justice. Under GRP 2, the commission retains
jurisdiction over the licensing, policies, regulations, criteria, and
standards pertaining to gaming.
SECTION 1. SEC. 2. Section 19850.5
of the Business and Professions Code is repealed.
SEC. 2. SEC. 3. Section 19850.6 of
the Business and Professions Code is repealed.
SEC. 3. SEC. 4. Section 326.3 of the
Penal Code is amended to read:
326.3. (a) The Legislature finds and declares all of the
following:
(1) Nonprofit organizations provide important and essential
educational, philanthropic, and social services to the people of the
State of California.
(2) One of the great strengths of California is a vibrant
nonprofit sector.
(3) Nonprofit and philanthropic organizations touch the lives of
every Californian through service and employment.
(4) Many of these services would not be available if nonprofit
organizations did not provide them.
(5) There is a need to provide methods of fundraising to nonprofit
organizations to enable them to provide these essential services.
(6) Historically, many nonprofit organizations have used
charitable bingo as one of their key fundraising strategies to
promote the mission of the charity.
(7) Legislation is needed to provide greater revenues for
nonprofit organizations to enable them to fulfill their charitable
purposes, and especially to meet their increasing social service
obligations.
(8) Legislation is also needed to clarify that existing law
requires that all charitable bingo must be played using a tangible
card and that the only permissible electronic devices to be used by
charitable bingo players are card-minding devices.
(b) Neither the prohibition on gambling in this chapter nor in
Chapter 10 (commencing with Section 330) applies to any remote caller
bingo game that is played or 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 a
remote caller bingo game to be played or conducted only in accordance
with this section, including the following requirements:
(1) The game may be conducted only by the following organizations:
(A) An organization that is exempted from the payment of the taxes
imposed under the Corporation Tax Law by Section 23701a, 23701b,
23701d, 23701e, 23701f, 23701g, 23701k, 23701 l , or
23701w of the Revenue and Taxation Code.
(B) A mobilehome park association.
(C) A senior citizens organization.
(D) Charitable organizations affiliated with a school district or
community college district.
(2) The organization conducting the game shall have been
incorporated or in existence for three years or more.
(3) The organization conducting the game
and its management company, if any, shall be licensed to
conduct remote caller bingo. A licensing fee may be collected
pursuant to subdivision (l) of Section 326.5.
(4) The receipts of the game shall be used only for charitable
purposes. The organization conducting the game shall determine the
disbursement of the net receipts of the game.
(5) The operation of bingo may not be the primary purpose for
which the organization is organized.
(c) (1) To ensure continuity of remote caller bingo games, until
June 1, 2012, the local licensing entity may recognize a state
license, work permit, or approval of equipment that was issued by the
commission pursuant to this section, and in effect on June 30, 2011,
including, but not limited to, any of the following:
(A) An interim license of a person who conducts remote caller
bingo games approved by the commission, as of June 30, 2011.
(B) An interim work permit for personnel employed by an
organization that conducts remote caller bingo games.
(C) An interim approval of equipment used for remote caller bingo
games.
(2) If the local licensing entity decides to recognize a license,
work permit, or equipment approval issued by the commission, the
local licensing entity shall be responsible for regulatory oversight
and enforcement in accordance with the standards and procedures
applicable within its jurisdiction pursuant to local ordinance.
(3) Any reference to the commission as the licensing authority for
the conduct of remote caller bingo games that appears in a local
ordinance adopted prior to the operative date of the act adding this
subdivision shall be deemed to refer to the local licensing entity.
(d)
(c) (1) It is a misdemeanor for any person to receive
or pay a profit, wage, or salary from any remote caller bingo game,
provided that administrative, managerial, technical, financial, and
security personnel employed by the organization conducting the bingo
game may be paid reasonable fees for services rendered from the
revenues of bingo games, as provided in subdivision (m)
(l) , except that fees paid under those
agreements shall not be determined as a percentage of receipts or
other revenues from, or be dependent on the outcome of, the game.
(2) A violation of this subdivision 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 city, county, or city and county
that enacted the ordinance authorizing the remote caller bingo game.
A violation of any provision of this section, other than this
subdivision, is a misdemeanor.
(e)
(d) The city, county, or city and county that enacted
the ordinance authorizing the remote caller bingo game, or the
Attorney General, may bring an action to enjoin a violation of this
section.
(f)
(e) No minors shall be allowed to participate in any
remote caller bingo game.
(g)
(f) A remote caller bingo game shall not include any
site that is not located within this state.
(h)
(g) An organization authorized to conduct a remote
caller bingo game pursuant to subdivision (b) shall conduct the game
only on property that is owned or leased by the organization, or the
use of which is donated to the organization. Nothing in this
subdivision shall be construed to require that the property that is
owned or leased by, or the use of which is donated to, the
organization be used or leased exclusively by, or donated exclusively
to, that organization.
(i)
(h) (1) All remote caller bingo games shall be open to
the public, not just to the members of the authorized organization.
(2) No more than 750 players may participate in a remote caller
bingo game in a single location.
(3) If the Governor of California or the President of the United
States declares a state of emergency in response to a natural
disaster or other public catastrophe occurring in California, an
organization authorized to conduct remote caller bingo games may,
while that declaration is in effect, conduct a remote caller bingo
game pursuant to this section with more than 750 participants in a
single venue if the net proceeds of the game, after deduction of
prizes and overhead expenses, are donated to or expended exclusively
for the relief of the victims of the disaster or catastrophe, and the
organization gives the local licensing entity at least 10 days'
written notice of the intent to conduct that game.
(4) An organization authorized to conduct remote caller bingo
games shall provide the local licensing entity with at least 10 days'
advance written notice of its intent to conduct a remote caller
bingo game. That notice shall be on a form prescribed by the local
licensing entity. If the location of the remote caller bingo game
changes, the organization shall provide the local licensing entity
notice by e-mail, telephone, or facsimile within 24 hours of the
change of location.
(j)
(i) (1) An organization eligible to conduct a remote
caller bingo game pursuant to subdivision (b) shall register annually
with the commission or the department in order to conduct
remote caller bingo games pursuant to this section. The commission
or the department shall provide to eligible nonprofit
organizations, upon request, a registration form. The commission
also or the department shall post the
registration form on its Internet Web site. Only the information
necessary for the commission or the department to
implement this section shall be required for completion of the
registration form, including, but not limited to, all of the
following relative to the eligible organization:
(A) Name and address of the organization, and a mode of contract,
such as a telephone number, for the organization that members of the
public and government agencies may use during normal business hours
to obtain information about the organization's finances and
activities. The telephone number of an official of the organization
who can provide that information may be used.
(B) Federal tax identification number, corporate number issued by
the Secretary of State, organization number issued by the Franchise
Tax Board, or California charitable trust identification number.
(C) Name and title of a responsible fiduciary of the organization.
(2) The commission or the department shall maintain a
registry on its Internet Web site of all
organizations registered to conduct remote caller bingo
pursuant to this section and the dollar amount
received by those organizations to repay the loan to the Charitable
Bingo Mitigation Fund pursuant to paragraph (2) of subdivision (d) of
Section 326.4 . Prior to issuing a license pursuant to a local
ordinance, the local licensing entity shall confirm that an
organization applying to operate a remote caller bingo game is
registered and in good standing according to the registry available
on the commission's or the department's Internet Web site.
(3) The commission or the department may require an
eligible organization to pay an annual registration fee of one
hundred dollars ($100) to cover the actual costs of the commission
or the department to administer and enforce this section.
The commission or the department may, by regulation,
adjust the annual registration fee as needed to ensure that revenues
will fully offset, but not exceed, the actual costs incurred by the
commission or the department pursuant to this section. Fee
revenues shall be deposited by the department into the California
Bingo Fund.
(4) The commission or the department may adopt
regulations to implement this section. The initial adoption,
amendment, or repeal of a regulation authorized by this section is
deemed to address an emergency, for purposes of Sections 11346.1 and
11349.6 of the Government Code, and the commission or the
department is hereby exempted for that purpose from the
requirements of subdivision (b) of Section 11346.1 of the Government
Code. After the initial adoption, amendment, or repeal of an
emergency regulation pursuant to this section, the commission or
the department may request approval from the Office of
Administrative Law to readopt the regulation as an emergency
regulation pursuant to Section 11346.1 of the Government Code.
(5) The department shall have concurrent jurisdiction with local
law enforcement agencies to enforce this section.
(k)
(j) (1) A remote caller 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 remote caller bingo game. Only the organization
authorized to conduct a remote caller bingo game shall operate that
game, or participate in the promotion, supervision, or any other
phase of a remote caller bingo game. Subject to subdivision
(m) (l) , this subdivision shall not preclude
the employment of administrative, managerial, technical, financial,
or security personnel who are not members of the authorized
organization at a location participating in the remote caller bingo
game by the organization conducting the game. Notwithstanding any
other law, exclusive or other agreements between the authorized
organization and other entities or persons to provide services in the
administration, management, or conduct of the game shall not be
considered a violation of the prohibition against holding a legally
cognizable financial interest in the conduct of the remote caller
bingo game by persons or entities other than the charitable
organization, or other entity authorized to conduct the remote caller
bingo games. Fees to be paid under those agreements shall be
reasonable and shall not be determined as a percentage of receipts or
other revenues from, or be dependent on the outcome of, the game.
(2) An authorized organization may contract with a management
company to provide business services, including, but not limited to,
game accounting and bingo game consulting, including operations of
broadcasting and telecasting assistance. An authorized organization
that contracts with a management company shall do all of the
following:
(A) Indicate on the application to conduct remote caller bingo
games that is submitted to the local licensing entity that it has
contracted with a management company. The authorized organization
shall notify the local licensing entity in writing if it contracts
with a management company subsequent to the submission of its
application to the local licensing entity.
(B) Ensure that the management company has a business license and
request a live scan background check for each employee or consultant
that has a 10 percent or greater ownership interest in any management
company.
(C) Maintain on file the name, address, and contact numbers of the
management company, and provide that information to the department
upon request.
(3) A management company that is retained by an authorized
organization to manage a remote caller bingo game shall file all of
the following with the commission or the department :
(A) The legal name of the management company and the address of
record of the agent upon whom legal notice may be served.
(B) The physical locations of the caller and each of the remote
sites at which remote caller bingo is played.
(C) The names of any site managers employed by the management
company.
(D) A copy of the local ordinance for each remote site at which
remote caller bingo is played.
(4) The live, physical calling and broadcast of a remote caller
bingo game shall be conducted from a jurisdiction that authorizes by
local ordinance the conduct of remote caller bingo games.
(5) Any person who knowingly violates paragraph (3) by providing
false information shall be subject to a civil penalty in the amount
of five thousand dollars ($5,000). An action for a civil penalty may
be brought by any public prosecutor.
(6) An organization that conducts a remote caller bingo game shall
designate a person as having fiduciary responsibility for the game.
(l)
(k) No individual, corporation, partnership, or other
legal entity, except the organization authorized to conduct or
participate in a remote caller bingo game, shall hold a legally
cognizable financial interest in the conduct of that game.
(m)
(l) An organization authorized to conduct a remote
caller bingo game pursuant to this section shall not have overhead
costs exceeding 20 percent of gross sales, except that the
limitations of this section shall not apply to one-time, nonrecurring
capital acquisitions. For purposes of this subdivision, "overhead
costs" includes, but is not limited to, amounts paid for rent and
equipment leasing and the reasonable fees authorized to be paid to
administrative, managerial, technical, financial, and security
personnel employed by the organization pursuant to subdivision
(d) (c) . For the purpose of keeping
its overhead costs below 20 percent of gross sales, an authorized
organization may elect to deduct all or a portion of the fees paid to
financial institutions for the use and processing of credit card
sales from the amount of gross revenues awarded for prizes. In that
case, the redirected fees for the use and processing of credit card
sales shall not be included in "overhead costs" as defined in the
California Remote Caller Bingo Act. Additionally, fees paid to
financial institutions for the use and processing of credit card
sales shall not be deducted from the proceeds retained by the
charitable organization.
(n)
(m) No person shall be allowed to participate in a
remote caller bingo game unless the person is physically present at
the time and place where the remote caller bingo game is being
conducted. A person shall be deemed to be physically present at the
place where the remote caller bingo game is being conducted if he or
she is present at any of the locations participating in the remote
caller bingo game in accordance with this section.
(o)
(n) (1) An organization shall not cosponsor a remote
caller bingo game with one or more other organizations unless all of
the cosponsors are affiliated under the master charter or articles
and bylaws of a single organization involved in the same type of
activity.
(2) Notwithstanding paragraph (1), a maximum of 10 unaffiliated
organizations described in paragraph (1) of subdivision (b) may enter
into an agreement to cosponsor a remote caller bingo game, but that
game shall have not more than 10 locations.
(3) An organization shall not conduct remote caller bingo more
than two days per week, except that an organization may hold one
additional game, at its election, in each calendar quarter.
(4) Before sponsoring or operating any game authorized under
paragraph (1) or (2), each of the cosponsoring organizations shall
have entered into a written agreement, a copy of which shall be
provided to the commission or the department, setting forth how the
expenses and proceeds of the game are to be allocated among the
participating organizations, the bank accounts into which all
receipts are to be deposited and from which all prizes are to be
paid, and how game records are to be maintained and subjected to
annual audit.
(p)
(o) The value of prizes awarded during the conduct of
any remote caller bingo game shall not exceed 37 percent of the gross
receipts for that game. When an authorized organization elects to
deduct fees paid for the use and processing of credit card sales from
the amount of gross revenues for that game awarded for prizes, the
maximum amount of gross revenues that may be awarded for prizes shall
not exceed 37 percent of the gross receipts for that game, less the
amount of redirected fees paid for the use and processing of credit
card sales. Every remote caller bingo game shall be played until a
winner is declared. Progressive prizes are prohibited. The declared
winner of a remote caller bingo game shall provide his or her
identifying information and a mailing address to a representative of
the organization. Prizes shall be paid only by check; no cash prizes
shall be paid. The organization conducting the remote caller bingo
game may issue a check to the winner at the time of the game, or may
send a check to the declared winner by United States Postal Service.
All prize money exceeding state and federal exemption limits on prize
money shall be subject to income tax reporting and withholding
requirements under applicable state and federal laws and regulations
and those reports and withholding shall be forwarded, within 10
business days, to the appropriate state or federal agency on behalf
of the winner. A report shall accompany the amount withheld
identifying the person on whose behalf the money is being sent. Any
game interrupted by a transmission failure, electrical outage, or act
of God shall be considered void in the location that was affected. A
refund for a canceled game or games shall be provided to the
purchasers.
(q)
(p) (1) A licensed organization, or a management
company contracted with a licensed organization, shall register all
of its local bingo licenses with the commission or the
department . This information shall be made available to the
public upon request.
(2) The commission or the department may charge an
annual filing fee of two hundred dollars ($200) to be used to cover
the actual costs to administer and enforce the registration
requirement described in paragraph (1). Fee revenues shall be
deposited by the commission or the department into the
California Bingo Fund.
(q) (1) The Department of Justice shall conduct a background
investigation of each management company and conduct field
enforcement as it relates to remote caller bingo consistent with the
Gambling Control Act (Chapter 5 (commencing with Section 19800) of
Division 8 of the Business and Professions Code), and as specified in
regulations promulgated by the commission.
(A) Each application for a license as a management company shall
be accompanied by a nonrefundable fee to cover the background
investigation costs of the department pursuant to this paragraph. The
fee shall be paid and accounted for in accordance with Section 19867
of the Business and Professions Code.
(B) The department shall submit the results of the background
investigation of a management company to the local licensing entity.
(r) (1)
(2) (A) If the local licensing
entity requests a background check from the department of any person
required to be licensed pursuant to the applicable local ordinance,
it shall submit to the department fingerprint images and related
information required by the department for the purpose of obtaining
information as to the existence and content of a record of state and
federal convictions and arrests, including state or federal arrests
for which the department establishes that the person is free on bail
or on his or her own recognizance pending trial or appeal.
(2)
(B) Upon receipt, the department shall forward requests
for federal summary criminal history information pursuant to this
section paragraph to the Federal Bureau
of Investigation. The department shall review the information
returned from the Federal Bureau of Investigation and compile and
disseminate a response to the local licensing entity.
(3)
(C) The department shall provide a state or federal
level response to the local licensing entity pursuant to paragraph
(1) of subdivision (p) of Section 11105.
(4)
(D) The local licensing entity shall request from the
department subsequent arrest notification service, as provided
pursuant to Section 11105.2, for persons described in
paragraph (1) subparagraph (A) .
(5)
(E) The department shall charge a fee sufficient to
cover the cost of processing requests pursuant to this
subdivision the request described in this paragraph.
The fee revenue shall be deposited in the Fingerprint Fees Account,
as generally described in subdivision (e) of Section 11105 in the
Penal Code, and, notwithstanding Section 13340 of the Government
Code, shall be continuously appropriated to the department for the
purpose of paying the costs associated with this paragraph .
(6)
(3) (A) Fees and revenue collected pursuant to this
subdivision , except as otherwise provided pursuant to
subparagraph (E) of paragraph (2), shall be
deposited in the California Bingo Fund, which is hereby created in
the State Treasury. The funds deposited in the California Bingo Fund
shall be available, upon appropriation by the Legislature, for
expenditure by the commission and the department exclusively for the
support of the commission and the department in carrying out their
duties and responsibilities under this section.
(B) A loan is hereby authorized from the Gambling Control Fund to
the California Bingo Fund on or after January 1, 2009, in an amount
of up to five hundred thousand dollars ($500,000) to fund operating,
personnel, and other startup costs incurred by the commission
relating to this act. Funds from the California Bingo Fund shall be
available to the commission upon appropriation by the Legislature in
the annual Budget Act. The loan shall be subject to all of the
following conditions:
(i) The loan shall be repaid to the Gambling Control Fund as soon
as there is sufficient money in the California Bingo Fund to repay
the amount loaned.
(ii) Interest on the loan shall be paid from the California Bingo
Fund at the rate accruing to moneys in the Pooled Money Investment
Account.
(iii) The terms and conditions of the loan are approved, prior to
the transfer of funds, by the Department of Finance pursuant to
appropriate fiscal standards.
(s)
(r) An organization that conducts remote caller bingo
games shall retain records in connection with the remote caller bingo
game for five years.
(t)
(s) The local licensing entity shall monitor operation
of the transmission and other equipment used for remote caller bingo,
and monitor the game.
(u)
(t) (1) As used in this section, "remote caller bingo
game" means a game of bingo, as defined in subdivision (o) of Section
326.5, in which the numbers or symbols on randomly drawn plastic
balls are announced by a natural person present at the site at which
the live game is conducted, and the organization conducting the bingo
game uses audio and video technology to link any of its in-state
facilities for the purpose of transmitting the remote calling of a
live bingo game from a single location to multiple locations owned,
leased, or rented by that organization, or as described in
subdivision (o) (n) of this section.
The audio or video technology used to link the facilities may include
cable, Internet, satellite, broadband, or telephone technology, or
any other means of electronic transmission that ensures the secure,
accurate, and simultaneous transmission of the announcement
of numbers or symbols in the
game from the location at which the game is called by a natural
person to the remote location or locations at which players may
participate in the game. The drawing of each ball bearing a number or
symbol by the natural person calling the game shall be visible to
all players as the ball is drawn, including through a simultaneous
live video feed at remote locations at which players may participate
in the game.
(2) Remote caller bingo games shall be played using traditional
paper or other tangible bingo cards and daubers, and shall not be
played by using electronic devices, except card-minding devices, as
described in paragraph (1) of subdivision (p) of Section 326.5.
(v)
(u) A location shall not be eligible to participate in
a remote caller bingo game if bingo games are conducted at that
location in violation of Section 326.5, including, but not limited
to, a location at which unlawful electronic devices are used.
(w)
(v) (1) The commission or the department may
audit the books and records of a licensed organization or a
management company contracted by a licensed organization to conduct
remote caller bingo at any time and may charge the licensed
organization or a management company a fee for the audit
sufficient to cover the costs of performing the audit. An
audit shall be contingent upon the Legislature appropriating funds
for this purpose. Any information collected in the course
of an audit shall be made available to the public upon request.
(2) A management company contracted with a licensed organization
shall retain an independent California certified public accountant to
conduct an annual audit of its books and records. The results of the
audit shall be submitted to the commission or the department
within 120 days after the close of the management company's
fiscal year.
(x)
(w) (1) The provisions of this section are severable. If
any provision of this section or its application is held invalid,
that invalidity shall not affect other provisions or applications
that can be given effect without the invalid provision or
application.
(2) Notwithstanding paragraph (1), if paragraph (1) or (2) of
subdivision (u) (t) , or the
application of either of those provisions, is held invalid, this
entire section shall be invalid.
(y)
(x) The following definitions apply for purposes of
this section:
(1) "Commission" means the California Gambling Control Commission.
(2) "Department" means the Department of Justice.
(3) "Local licensing entity" means the city, county, or city and
county.
(4) "Management company" means any person or business organization
retained by the licensed organization to install equipment necessary
to the electronic transmission of remote caller bingo to locations
in addition to the site where the game is being called. "Management
company" also means any person or business organization retained by
the licensed organization to operate the electronic transmission of
the remote caller bingo game to any or all remote sites in addition
to the site from which the game is being called.
(5) "Organization" means the principal organization that the
cosponsors are affiliated with. All cosponsors shall be considered
part of the organization with one person serving as the fiduciary for
the organization and all affiliated cosponsors.
(6) "Person" includes a natural person, corporation, limited
liability company, partnership, trust, joint venture, association, or
any other business organization.
(y) (1) On or before October 1, 2015, the department and the
commission shall report their findings to the Legislature, including
the Senate and Assembly Committees on Governmental Organization, the
Senate and Assembly Committees on Appropriations, the President pro
Tempore of the Senate, and the Speaker of the Assembly, as to whether
continuation of the remote caller bingo program, as implemented
pursuant to this section, and state oversight of that program are
warranted based on all of the following findings, including, but not
limited to:
(A) The number of nonprofit organizations registered and licensed
to conduct remote caller bingo.
(B) The number of management companies licensed to assist a
licensed organization to conduct remote caller bingo.
(C) The number of remote caller bingo games conducted annually.
(D) The total annual revenue received by licensed organizations.
(E) The total annual revenue received by the state in the form of
fees associated with remote caller bingo.
(F) The total annual cost to the department and the commission to
carry out regulatory and enforcement activities pursuant to Section
326.3, and whether the department and the commission have sufficient
funding through the fee revenue generated by the program to
adequately comply with the requirements of Section 326.3.
(G) The recommendations of the department and the commission as to
how the remote caller bingo program may be improved, if applicable.
(2) This section shall remain in effect only until January 1,
2017, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2017, deletes or extends
that date.
SEC. 4. SEC. 5. Section 326.5 of the
Penal Code is amended to read:
326.5. (a) Neither the prohibition on gambling in this chapter
nor in 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 in accordance with this section, and only by
organizations exempted from the payment of the bank and corporation
tax by Sections 23701a, 23701b, 23701d, 23701e, 23701f, 23701g,
23701k, 23701 l , and 23701w of the Revenue and Taxation
Code, and by mobilehome park associations, senior citizens
organizations, and charitable organizations affiliated with a school
district; and if the receipts of those games are used only for
charitable purposes. The ordinance may be amended by resolution of
the governing body of the city, county, or city and county to allow a
remote caller bingo game to be played or conducted in accordance
with the requirements of Section 326.3.
(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), shall be used for the purpose of financing the rebuilding
of the facility and the replacement of equipment that 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).
(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 available to be awarded during the
conduct of any bingo games shall not exceed five hundred dollars
($500) 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 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. Notwithstanding
Section 330c, as used in this section, the game of bingo includes
tangible cards having numbers or symbols that are concealed and
preprinted in a manner providing for distribution of prizes.
Electronics or video displays shall not be used in connection with
the game of bingo, except in connection with the caller's drawing of
numbers or symbols and the public display of that drawing, and except
as provided in subdivision (p). 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." Only a covered or
marked tangible card possessed by a player and presented to an
attendant may be used to claim a prize. 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.
(p) (1) Players who are physically present at a bingo game may use
hand-held, portable card-minding devices, as described in this
subdivision, to assist in monitoring the numbers or symbols announced
by a live caller as those numbers or symbols are called in a live
game. Card-minding devices may not be used in connection with any
game where a bingo card may be sold or distributed after the start of
the ball draw for that game. A card-minding device shall do all of
the following:
(A) Be capable of storing in the memory of the device bingo faces
of tangible cards purchased by a player.
(B) Provide a means for bingo players to input manually each
individual number or symbol announced by a live caller.
(C) Compare the numbers or symbols entered by the player to the
bingo faces previously stored in the memory of the device.
(D) Identify winning bingo patterns that exist on the stored bingo
faces.
(2) A card-minding device shall perform no functions involving the
play of the game other than those described in paragraph (1).
Card-minding devices shall not do any of the following:
(A) Be capable of accepting or dispensing any coins, currency, or
other representative of value or on which value has been encoded.
(B) Be capable of monitoring any bingo card face other than the
faces of the tangible bingo card or cards purchased by the player for
that game.
(C) Display or represent the game result through any means,
including, but not limited to, video or mechanical reels or other
slot machine or casino game themes, other than highlighting the
winning numbers or symbols marked or covered on the tangible bingo
cards or giving an audio alert that the player's card has a
prize-winning pattern.
(D) Determine the outcome of any game or be physically or
electronically connected to any component that determines the outcome
of a game or to any other bingo equipment, including, but not
limited to, the ball call station, or to any other card-minding
device. No other player-operated or player-activated electronic or
electromechanical device or equipment is permitted to be used in
connection with a bingo game.
(q) This section shall remain in effect only until January 1,
2017, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2017, deletes or extends
that date.
SEC. 6. Section 326.5 is added to the
Penal Code , to read:
326.5. (a) Neither the prohibition on gambling in this chapter
nor in 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 in accordance with this section, and only by
organizations exempted from the payment of the bank and corporation
tax by Sections 23701a, 23701b, 23701d, 23701e, 23701f, 23701g,
23701k, 23701l , and 23701w of the Revenue and Taxation Code,
and by mobilehome park associations, senior citizens organizations,
and charitable organizations affiliated with a school district; 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), shall be used for the purpose of financing the rebuilding
of the facility and the replacement of equipment that 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).
(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 available to be awarded during the
conduct of any bingo games shall not exceed five hundred dollars
($500) 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 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. Notwithstanding
Section 330c, as used in this section, the game of bingo includes
tangible cards having numbers or symbols that are concealed and
preprinted in a manner providing for distribution of prizes.
Electronics or video displays shall not be used in connection with
the game of bingo, except in connection with the caller's drawing of
numbers or symbols and the public display of that drawing, and except
as provided in subdivision (p). 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." Only a covered or
marked tangible card possessed by a player and presented to an
attendant may be used to claim a prize. 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.
(p) (1) Players who are physically present at a bingo game may use
hand-held, portable card-minding devices, as described in this
subdivision, to assist in monitoring the numbers or symbols announced
by a live caller as those numbers or symbols are called in a live
game. Card-minding devices may not be used in connection with any
game where a bingo card may be sold or distributed after the start of
the ball draw for that game. A card-minding device shall do all of
the following:
(A) Be capable of storing in the memory of the device bingo faces
of tangible cards purchased by a player.
(B) Provide a means for bingo players to input manually each
individual number or symbol announced by a live caller.
(C) Compare the numbers or symbols entered by the player to the
bingo faces previously stored in the memory of the device.
(D) Identify winning bingo patterns that exist on the stored bingo
faces.
(2) A card-minding device shall perform no functions involving the
play of the game other than those described in paragraph (1).
Card-minding devices shall not do any of the following:
(A) Be capable of accepting
or dispensing any coins, currency, or other representative of value
or on which value has been encoded.
(B) Be capable of monitoring any bingo card face other than the
faces of the tangible bingo card or cards purchased by the player for
that game.
(C) Display or represent the game result through any means,
including, but not limited to, video or mechanical reels or other
slot machine or casino game themes, other than highlighting the
winning numbers or symbols marked or covered on the tangible bingo
cards or giving an audio alert that the player's card has a
prize-winning pattern.
(D) Determine the outcome of any game or be physically or
electronically connected to any component that determines the outcome
of a game or to any other bingo equipment, including, but not
limited to, the ball call station, or to any other card-minding
device. No other player-operated or player-activated electronic or
electromechanical device or equipment is permitted to be used in
connection with a bingo game.
(q) This section shall become operative on January 1, 2017.
SEC. 5. SEC. 7. No reimbursement is
required by this act pursuant to Section 6 of Article XIII B of the
California Constitution because the only costs that may be incurred
by a local agency or school district will be incurred because this
act creates a new crime or infraction, eliminates a crime or
infraction, or changes the penalty for a crime or infraction, within
the meaning of Section 17556 of the Government Code, or changes the
definition of a crime within the meaning of Section 6 of Article XIII
B of the California Constitution.
SEC. 6. SEC. 8. This act is an
urgency statute necessary for the immediate preservation of the
public peace, health, or safety within the meaning of Article IV of
the Constitution and shall go into immediate effect. The facts
constituting the necessity are:
The California Gambling Control Commission's funding
authority for the remote caller bingo program, which is a loan from
the Gambling Control Fund, and limited-term positions expired on June
30, 2011. Without that funding authority and those positions, the
commission cannot perform work related to the remote caller bingo
program after June 30, 2011. In order to define the
roles of the Department of Justice and the California Gambling
Control Commission relating to remote caller bingo in accordance with
the Governor's Reorganization Plan No. 2 of 2012
, and to provide continuity for charitable organizations
that are conducting remote caller bingo at the earliest possible
time, it is necessary that this act take effect immediately.
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