REPORT TO COUNCIL
SUBJECT
Title
Action on the Introduction of an Ordinance Amending Section 5.75.210 related to Bingo Regulations
Report
BACKGROUND
Bingo operations serve as an important revenue source for various eligible organizations. Presently, there are eight (8) bingo organizations playing 23 sessions per week. In turn, these organizations provide a community benefit with their bingo revenue as the earnings from bingo games are mandated by State law to be used only for charitable purposes.
Chapter 5.75 of the “Code of the City of Santa Clara, California” (“SCCC”) sets forth the requirements for bingo organizations that operate within the City of Santa Clara, including eligible organizations, licensing requirements, rules of operation, restrictions and financial reporting obligations. Additionally, and as noted in Chapter 5.75, all bingo activities are to be conducted in compliance with the California Constitution and Penal Code section 326.5.
State law governs many provisions in ordinance codes of California’s cities and counties. On January 1, 2009, Section 326.5(n) of the California Penal Code was amended to read, “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.” This change expanded the award from $250 to $500 in cash or kind.
In December, 2016, the City Attorney’s Office received a letter from Foreman and Associates that our City Code was not consistent with the State Penal Code. After a thorough review of City Code Section 5.75 by the City Attorney’s Office and Police Department, City staff decided to bring forward this Report to Council to consider an adjustment to the payout issue. City staff is continuing to work with agencies throughout Santa Clara County and the District Attorney’s Office on a consistent approach to bingo operations.
DISCUSSION
As a result of State law amendments, SCCC is no longer consistent with the Penal Code. Currently, SCCC Section 5.75.210 (Maximum amount of prizes - Paid receipt required for payout) sets the total value of prizes awarded during bingo games at $250. The City of Santa Clara does not need to be consistent with the State Penal Code, however the award amount cannot exceed State Penal Code.
It is typically not best practice to list dollar amounts, or other items subject to change, in local ordinances. By doing so, the printed City Code may become inconsistent with federal or state law causing a need to amend the Code time and time again. Therefore, staff recommends eliminating dollar amounts and instead will reference the appropriate state law and/or the City’s Municipal Fee Schedule in future ordinance amendments, as appropriate. In addition, consistency with State and/or Federal law, where appropriate, facilitates enforcement of the City Code.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.
FISCAL IMPACT
No fiscal impact is anticipated beyond administrative staff time and expense.
COORDINATION
This report has been coordinated with the Finance Department and City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
ALTERNATIVES
1. Approve the introduction of an Ordinance amending Section 5.75.210 (“Maximum amount of prizes - Paid receipt required for payout”) of Chapter 5.75 (“Bingo”) of Title 5 (“Business Licenses and Regulations”) of “The Code of the City of Santa Clara.”
2. Do not make any change to the award amount in Section 5.75.210 (“Maximum amount of prizes - Paid receipt required for payout”).
RECOMMENDATION
Recommendation
Alternative 1:
Approve the introduction of an Ordinance amending Section 5.75.210 (“Maximum amount of prizes - Paid receipt required for payout”) of Chapter 5.75 (“Bingo”) of Title 5 (“Business Licenses and Regulations”) of “The Code of the City of Santa Clara.”
Staff
Reviewed by: Michael J. Sellers, Chief of Police
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Amendments to the Bingo Ordinance