Bill Text: CA SB340 | 2011-2012 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Remote caller bingo.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed - Dead) 2011-08-25 - Set, first hearing. Referred to APPR. suspense file. Held in committee and under submission. [SB340 Detail]

Download: California-2011-SB340-Amended.html

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BILL NUMBER: SB 340	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 12, 2011
	AMENDED IN SENATE  APRIL 14, 2011

INTRODUCED BY   Senator Wolk

                        FEBRUARY 15, 2011

    An act to amend Section 326.3 of the Penal Code, relating
to bingo.   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 the Penal Code, relating to bingo,
and declaring the urgency thereof, to take effect immediately. 


	LEGISLATIVE COUNSEL'S DIGEST


   SB 340, 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
prohibits more than 750 players from participating in a remote caller
bingo game in a single location.  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  remote caller bingo
games to be conducted in  a city, county, or city and county
 pursuant to an   to amend an existing local
 ordinance that allows bingo games to be conducted,  if
the governing body of the city, county, or city and county opts
  by resolution, to permit  the conduct of
 remote caller bingo  games  pursuant to that ordinance
 by resolution   , as specified  . The
bill would prohibit an organization from conducting remote caller
bingo more than 2 days per week, but would permit  a licensed
  an  organization to hold one additional game, at
its election, in each calendar quarter. The bill would 
delete the limit on the number of players that may participate in a
remote caller bingo game in a single location, and would delete the
requirement for   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 at least 24 hours' advance notice if the
location of the remote caller bingo game changes  . The bill
also would  make a technical change to   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,
 would  require an organization  licensed by
a city, county, or city and county   that is eligible
 to conduct remote caller bingo games to register  annually
 with the Department of Justice  by transmitting a copy
of the bingo license to the department   , as specified.
The bill would require the department to maintain a registry on its
Internet Web site of all organizations registered to conduct remote
caller bingo  . The bill would authorize the department to
charge an annual registration fee of  up to  $100
 per year , to be deposited into the 
Gambling Control   California Bingo  Fund, to cover
the actual costs of the department to administer and enforce these
provisions  , and would authorize the department to adopt
regulations  . 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 a background check from the
department  .  The bill would delete the licensure
requirement for a person who conducts a remote caller bingo game.
 The bill would  continue to require  
delete the requirement that  the commission  to
 approve all equipment used for remote caller bingo in
advance, but would require the  Department of Justice
  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 department or the commission to audit the books and
records of a licensed organization or vendor of equipment used in a
remote caller bingo game at any time.  
   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 effective 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 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.
   Existing law requires 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 start-up costs relating to remote-caller bingo is
required to be repaid within 5 years. 
   This bill would delete that reporting requirement  , and would
delete the requirement that the start-up loan be repaid within 5
years  . 
   Existing law permits 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.  
   This bill would declare that it is to take effect immediately as
an urgency statute. 
   Vote:  majority   2/3  . Appropriation:
no. Fiscal committee: yes. State-mandated local program: no.


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

   SECTION 1.    Section 19850.5 of the  
Business and Professions Code   is repealed.  
   19850.5.  Notwithstanding Section 19850 or any other provision of
law, this chapter shall apply to both of the following:
   (a) The operation, regulation, and enforcement of remote caller
bingo, as defined in paragraph (1) of subdivision (t) of Section
326.3 of the Penal Code, to the extent expressly made applicable by
Section 326.3 of the Penal Code. No requirement contained in this
chapter shall apply to remote caller bingo unless expressly made
applicable by Section 326.3 of the Penal Code.
   (b) The regulation of card-minding devices as provided in
subdivision (p) of Section 326.5 of the Penal Code, to the extent
expressly made applicable by Section 326.5 of the Penal Code. No
requirement contained in this chapter shall apply to card-minding
devices unless expressly made applicable by Section 326.5 of the
Penal Code. 
   SEC. 2.    Section 19850.6 of the  Business
and Professions Code   is repealed.  
   19850.6.  (a) In order to avoid delays in implementing the
California Remote Caller Bingo Act, including implementing remote
caller bingo, testing and certifying card-minding devices, and to
avoid disruption of fundraising efforts by nonprofit organizations,
the Legislature finds and declares that it is necessary to provide
the commission with a limited exemption from normal rulemaking
procedural requirements. The commission is directed to adopt
appropriate emergency regulations as soon as possible, the initial
regulatory action to be filed with the Office of Administrative Law
no later than May 1, 2009. It is the intent of the Legislature to
provide the commission with full authority and sufficient flexibility
to adopt all needed regulations. These regulations may be adopted in
a series of regulatory actions. Subsequent regulatory actions may
amend or repeal earlier regulatory actions, as necessary, to reflect
program experience and concerns of the regulated public.
   (b) The commission shall adopt emergency regulations concerning
remote caller bingo and concerning card-minding devices no later than
May 1, 2009. The adoption, amendment, repeal, or readoption 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 is hereby exempted for this
purpose from the requirements of subdivision (b) of Section 11346.1
of the Government Code, but shall otherwise be subject to the review
and approval of the Office of Administrative Law.
   (c) Notwithstanding any other law, all emergency regulations
adopted by the commission pursuant to this section before July 1,
2009, shall remain in effect until December 31, 2011, except to the
extent that the commission exercises its power to adopt, amend, or
repeal these regulations in whole or in part. 
   SECTION 1.   SEC. 3.   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 the requirements of 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,  23701w, or 
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.
   (2) The organization conducting the game shall have been
incorporated or in existence for three years or more.
   (3) The organization conducting the game shall be licensed
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) A city, county, or city and county may adopt an ordinance
in substantially the following form to authorize remote caller bingo
in accordance with the requirements of subdivision (b): 

   Sec. _.01. Legislative Authorization.  
   This chapter is adopted pursuant to Section 19 of Article IV of
the California Constitution, as implemented by Sections 326.3 and
326.4 of the Penal Code.  
   Sec. _.02. Remote Caller Bingo Authorized.  
   Remote Caller Bingo may be lawfully played in the City, County, or
City and County] pursuant to the provisions of Sections 326.3 and
326.4 of the Penal Code, and this chapter, and not otherwise.
 
   Sec. _.03. Qualified Applicants: Applicants for Licensure.
 
   (a) The following organizations are qualified to apply to the
License Official for a license to operate a bingo game if the
receipts of those games are used only for charitable purposes:
 
   (1) An organization exempt 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. 
   (2) A mobile home park association of a mobile home park that is
situated in the City, County, or City and County].  

   (3) Senior citizen organizations.  
   (4) Charitable organizations affiliated with a school district.
 
   (b) The application shall be in a form prescribed by the License
Official and shall be accompanied by a nonrefundable filing fee in an
amount determined by resolution of the Governing Body of the City,
County, or City and County] from time to time. The following
documentation shall be attached to the application, as applicable:
 
   (1) Appropriate documentation of the organization's qualification
pursuant to subdivision (a).  
   (2) Other evidence as the License Official determines is necessary
to verify that the applicant is a duly organized mobile home park
association of a mobile home park situated in the City, County, or
City and County].  
   Sec. _.04. License Application: Verification.  
   The license shall not be issued until the License Official has
verified the facts stated in the application and determined that the
applicant is qualified.  
   Sec. _.05. Annual Licenses.  
   A license issued pursuant to this chapter shall be valid until the
end of the calendar year, at which time the license shall expire. A
new license shall only be obtained upon filing a new application and
payment of the license fee. The fact that a license has been issued
to an applicant creates no vested right on the part of the licensee
to continue to offer bingo for play. The Governing Body of the City,
County, or City and County] expressly reserves the right to amend or
repeal this chapter at any time by resolution. If this chapter is
repealed, all licenses issued pursuant to this chapter shall cease to
be effective for any purpose on the effective date of the repealing
resolution.  
   Sec. _.06. Conditions of Licensure.  
   (a) Any license issued pursuant to this chapter shall be subject
to the conditions contained in Sections 326.3 and 326.4 of the Penal
Code, and each licensee shall comply with the requirements of those
provisions.  
   (b) Each license issued pursuant to this chapter shall be subject
to the following additional conditions:  
   (1) Bingo games shall not be conducted by any licensee on more
than two days during any week, except that a licensee may hold one
additional game, at its election, in each calendar quarter. 

   (2) The licensed organization is responsible for ensuring that the
conditions of this chapter and Sections 326.3 and 326.4 of the Penal
Code are complied with by the organization and its officers and
members. A violation of any one or more of those conditions or
provisions shall constitute cause for the revocation of the
organization's license. At the request of the organization, the
Governing Body of the City, County, or City and County] shall hold a
public hearing before revoking any license issued pursuant to this
chapter. 
   (2) Nothing in this section shall require a city, county, or city
and county to use this model ordinance in order to authorize remote
caller bingo.  
   (3) A remote caller bingo game may be 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 games to be conducted only in accordance with the
requirements of Section 326.5, and if the governing body of the city,
county, or city and county opts to permit remote caller bingo
pursuant to that ordinance by resolution.  
   (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 effective 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)  (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), 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. 
   (e) 
    (2)  A violation of  subdivision (d) 
 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 
subdivision (d)   this subdivision  , is a
misdemeanor. 
   (f) 
    (e)  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. 
   (g) 
    (f)  No minors shall be allowed to participate in any
remote caller bingo game. 
   (h) 
    (g)  A remote caller bingo game shall not include any
site that is not located within this state. 
   (i) 
    (h)  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. 
   (j) 
    (i)  (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.  
   (2) 
    (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  department
  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
with at least 24 hours' advance notice by e-mail, telephone, or fax.
 
   (3) An organization licensed to conduct remote caller bingo games
by the local licensing entity shall register with the department by
transmitting a copy of the bingo license to the department. The
department may require a licensed organization to pay an annual
registration fee of up to one hundred dollars ($100) per year to
cover the actual costs of the department to administer and enforce
this section. The annual registration fees shall be deposited by the
department into the Gambling Control Fund.  
   (j) (1) An organization eligible to conduct a remote caller bingo
game pursuant to subdivision (b) shall register annually with the
department in order to conduct remote caller bingo games pursuant to
this section. The department shall create, by regulation, and provide
to eligible nonprofit organizations, upon request, a registration
form. The department also shall post the registration form on its
Internet Web site. Only the information necessary for 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.  
   (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 department shall maintain a registry on its Internet Web
site of all organizations registered to conduct remote caller bingo
pursuant to this section. 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 department's Internet Web site.  
   (3) 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 department to administer and enforce this
section. 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 department pursuant
to this section. Fee revenues shall be deposited by the department
into the California Bingo Fund.  
   (4) 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 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 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.  
   (4) 
    (5)  The department shall have concurrent jurisdiction
with local law enforcement agencies to enforce this section.
   (k) (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), 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  , provided that those persons or
entities obtain the gambling licenses, the key employee licenses, or
the work permits required by, and otherwise comply with, Chapter 5
(commencing with Section 19800) of Division 8 of the Business and
Professions Code  . 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) 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. 

   (2) 
    (4)  An organization that conducts a remote caller bingo
game shall designate a person as having fiduciary responsibility for
the game.
   (l) 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) 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).
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) 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) (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 game, but the 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  a licensed 
 an  organization may hold one additional game, at its
election, in each calendar quarter.
   (p) 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) (1) The department shall require the licensure of any person
who directly or indirectly manufactures, distributes, supplies,
vends, leases, or otherwise provides supplies, devices, services, or
other equipment designed for use in the playing of a remote caller
bingo game by any nonprofit organization. 
   (2) Beginning January 31, 2009, or a later date as may be
established by the department, all persons described in paragraph (1)
may submit to the department a letter of intent to submit an
application for licensure. The letter shall clearly identify the
principal applicant, all categories under which the application will
be filed, and the names of all those particular individuals who are
applying. Each charitable organization shall provide an estimate of
the frequency with which it plans to conduct remote caller bingo
operations, including the number of locations. The letter of intent
may be withdrawn or updated at any time.  
   (3) (A) The department and the local licensing entity shall
conduct background investigations and 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 department.  
   (B) Fees to cover background investigation costs shall be paid and
accounted for in accordance with Section 19867 of the Business and
Professions Code.  
   (4) (A) Every application for a license or approval shall be
accompanied by a nonrefundable fee, the amount of which shall be
adopted by the department by regulation.  
   (q) (1) 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) Upon receipt, the department shall forward requests for
federal summary criminal history information pursuant to this section
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) 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) 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).  
   (5) The department shall charge a fee sufficient to cover the cost
of processing requests pursuant to this subdivision.  
   (B) 
    (6)     (A)  Fees and revenue
collected pursuant to this paragraph 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  department in
carrying out  their   its  duties and
responsibilities under this section  and Section 326.5
 . 
   (C) 
    (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  , but no later than five years after the
date of the loan.   . 
   (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. 
   The commission may assess and collect reasonable fees and deposits
as necessary to defray the costs of regulation and oversight.

   (r) An organization that conducts remote caller bingo games shall
retain records in connection with the remote caller bingo game for
five years. 
   (s) (1) All equipment used for remote caller bingo shall be
approved in advance by the commission pursuant to regulations adopted
pursuant to subdivision (r) of Section 19841 of the Business and
Professions Code.  
   (2) The department 
    (s)     The local licensing entity 
shall monitor operation of the transmission and other equipment used
for remote caller bingo, and monitor the game.
   (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) 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.
   (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  or any regulation adopted by the
commission pursuant to Section 19841 of the Business and Professions
Code  , including, but not limited to, a location at which
unlawful electronic devices are used. 
   (v) The department or the commission may audit the books and
records of a licensed organization or vendor of equipment used in a
remote caller bingo game at any time.  
   (w) 
    (v)  (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 (t), or the application of either of those provisions, is
held invalid, this entire section shall be invalid. 
   (x) 
    (w)  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) "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.
   (5) "Person" includes a natural person, corporation, limited
liability company, partnership, trust, joint venture, association, or
any other business organization.
  SEC. 4.    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 State
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,  and
23701   l  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 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) 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. 
   (3) (A) A card-minding device shall be approved in advance by the
commission as meeting the requirements of this section and any
additional requirements stated in regulations adopted by the
commission. Any proposed material change to the device, including any
change to the software used by the device, shall be submitted to the
commission and approved by the commission prior to implementation.
 
   (B) In accordance with Chapter 5 (commencing with Section 19800)
of Division 8 of the Business and Professions Code, the commission
shall establish reasonable criteria for, and require the licensure
of, any person that directly or indirectly manufactures, distributes,
supplies, vends, leases, or otherwise provides card-minding devices
or other supplies, equipment, or services related to card-minding
devices designed for use in the playing of bingo games by any
nonprofit organization.  
   (C) A person or entity that supplies or services any card-minding
device shall meet all licensing requirements established by the
commission in regulations.  
   (4) The costs of any testing, certification, license, or
determination required by this subdivision shall be borne by the
person or entity seeking it.  
   (5) On and after January 1, 2010, the commission and the
Department of Justice may inspect all card-minding devices at any
time without notice, and may immediately prohibit the use of any
device that does not comply with the requirements of subdivision (r)
of Section 19841 of the Business and Professions Code. The Department
of Justice may at any time, without notice, impound any device the
use of which has been prohibited by the commission. 

   (6) The California Gambling Control Commission shall issue
regulations to implement the requirements of this subdivision and may
issue regulations regarding the means by which the operator of a
bingo game, as required by applicable law, may offer assistance to a
player with disabilities in order to enable that player to
participate in a bingo game, provided that the means of providing
that assistance shall not be through any electronic,
electromechanical, or other device or equipment that accepts the
insertion of any coin, currency, token, credit card, or other means
of transmitting value, and does not constitute or is not a part of a
system that constitutes a video lottery terminal, slot machine, or
device prohibited by Chapter 10 (commencing with Section 330).
 
   (7) The following definitions apply for purposes of this
subdivision:  
   (A) "Commission" means the California Gambling Control Commission.
 
   (B) "Person" includes a natural person, corporation, limited
liability company, partnership, trust, joint venture, association, or
any other business organization. 
   SEC. 5.    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 Gambling Control Authority's current funding authority for the
remote caller bingo program, which is a loan from the Gambling
Control Fund, and limited-term positions expire 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 provide continuity for charitable
organizations that are conducting remote caller bingo, it is
necessary that this act take effect immediately.