326.4
. (a) Consistent with the Legislature's finding that
card-minding devices, as described in subdivision (p) of Section
326.5, are the only permissible electronic devices to be used by
charity bingo players, and in an effort to ease the transition to
remote caller bingo on the part of those nonprofit organizations
that, as of July 1, 2008, used electronic devices other than
card-minding devices to conduct games in reliance on an ordinance of
a city, county, or city and county that, as of July 1, 2008,
expressly recognized the operation of electronic devices other than
card-minding devices by organizations purportedly authorized to
conduct bingo in the city, county, or city and county, there is
hereby created the Charity Bingo Mitigation Fund.
(b) The Charity Bingo Mitigation Fund shall be administered by the
Department of Justice.
(c) Mitigation payments to be made by the Charity Bingo Mitigation
Fund shall not exceed five million dollars ($5,000,000) in the
aggregate.
(d) (1) To allow the Charity Bingo Mitigation Fund to become
immediately operable, five million dollars ($5,000,000) shall be
loaned from the accrued interest in the Indian Gaming Special
Distribution Fund to the Charity Bingo Mitigation Fund on or after
January 1, 2009, to make mitigation payments to eligible nonprofit
organizations. Five million dollars ($5,000,000) of this loan amount
is hereby appropriated to the California Gambling Control Commission
for the purposes of providing mitigation payments to certain
charitable organizations, as described in subdivision (e). Pursuant
to Section 16304 of the Government Code, after three years the
unexpended balance shall revert back to the Charity Bingo Mitigation
Fund.
(2) To reimburse the Special Distribution Fund, those nonprofit
organizations that conduct a remote caller bingo game pursuant to
Section 326.3 shall pay to the Department of Justice an amount equal
to 5 percent of the gross revenues of each remote caller bingo game
played until that time as the full advanced amount plus interest on
the loan at the rate accruing to moneys in the Pooled Money
Investment Account is reimbursed.
(e) (1) An organization meeting the requirements in subdivision
(a) shall be eligible to receive mitigation payments from the Charity
Bingo Mitigation Fund only if the city, county, or city and county
in which the organization is located maintained official records of
the net revenues generated for the fiscal year ending June 30, 2008,
by the organization from the use of electronic devices or the
organization maintained audited financial records for the fiscal year
ending June 30, 2008, which show the net revenues generated from the
use of electronic devices.
(2) In addition, an organization applying for mitigation payments
shall provide proof that its board of directors has adopted a
resolution and its chief executive officer has signed a statement
executed under penalty of perjury stating that, as of January 1,
2009, the organization has ceased using electronic devices other than
card-minding devices, as described in subdivision (p) of Section
326.5, as a fundraising tool.
(3) Each eligible organization may apply to the California
Gambling Control Commission no later than January 31, 2009, for the
mitigation payments in the amount equal to net revenues from the
fiscal year ending June 30, 2008, by filing an application, including
therewith documents and other proof of eligibility, including any
and all financial records documenting the organization's net revenues
for the fiscal year ending June 30, 2008, as the California Gambling
Control Commission may require. The California Gambling Control
Commission is authorized to access and examine the financial records
of charities requesting funding in order to confirm the legitimacy of
the request for funding. In the event that the total of those
requests exceeds five million dollars ($5,000,000), payments to all
eligible applicants shall be reduced in proportion to each requesting
organization's reported or audited net revenues from the operation
of electronic devices.