American Canyon Municipal Code Ch. 5.12 Cardrooms

It is the stated intent of the ordinance codified in this

chapter to regulate cardrooms and tables within the city, concurrently with the state of California, to the extent authorized by and as required by, Business and Professions Code Section 19800, (popularly referred to as the "Gambling Control Act" and, together with the regulations of the state of California Department of Justice Division of Gambling Control promulgated thereunder, hereinafter collectively referred to in this chapter as the "Act").

Ord. 99-17 § 1, 1999

It is unlawful for the operator, or any person having charge, control

or management of any establishment, social club, or place of business open to the public, or to which an admission fee is charged, to conduct, operate, or participate in any card game, or to permit or suffer upon or in such premises the conduct or operation of any card game regulated by the Act, or participation therein by others, unless such operator or other person having charge, control, or management of such establishment, club or place of business shall have first obtained from the state of California a cardroom permit to conduct such card game.

Ord. 2001-06 § 1, 2001

Ord. 9917 § 1, 1999

(A) An application for a cardroom permit, or for the renewal of a cardroom permit, shall submit an application to the chief of police of the city ("chief"), which application shall be under oath, and shall include, among other things, the true names and addresses of all persons financially interested in the business and the plan for patron security and safety required by Section 5.12.170. The term "persons financially interested" means and shall include all persons who share in the profits of the business, on the basis of gross or net revenue. The past criminal record, if any, of the applicant and of all persons financially interested in the business shall be shown on the application. The application shall also be accompanied by fingerprints and recent photographs of the applicant and of all persons financially interested in the business, and an amount equal to any fingerprint processing fee required by the city.

(B) An application for renewal of a cardroom permit need not be accompanied by fingerprints or a recent photo or such fee if the application for renewal contains no additional names to the original cardroom permit application.

(C) An application for renewal of a cardroom permit shall be completed and filed within thirty days prior to expiration of the existing permit. If an application for renewal is not filed, or the application fee is not paid within the thirty day time limit, the cardroom permit shall expire one year after the date of its issuance or last renewal.

(D) A cardroom permit may be issued only to citizens or legal residents of the United States.

Ord. 99-17 § 1, 1999

(A) The chief shall deny an original or renewal of a cardroom permit application to any applicant who is disqualified for any of the following reasons:

(1) Failure of the applicant to clearly establish eligibility and qualification in accordance with this chapter;

(2) Failure of the applicant to provide the information, documentation and assurances required by this chapter or requested by the chief, or failure of the applicant to reveal any fact material to qualifications, or the supplying of information that is untrue or misleading as to a material fact pertaining to the qualification criteria;

(3) Conviction of the applicant of any felony, including a conviction by a federal court or a court in another state for a crime that would constitute a felony if committed in California;

(4) Conviction of the applicant of any misdemeanor involving dishonesty or moral turpitude within the ten-year period immediately preceding the submission of the application;

(5) Association of the applicant with criminal profiteering activity or organized crime, as defined by Penal Code Section 186.2;

(6) Contumacious defiance by the applicant of any legislative investigatory body, or other official investigatory body of any state or of the United States, when that body is engaged in the investigation of crimes relating to gambling, official corruption related to gambling activities, or criminal profiteering activity or organized crime, as defined by Penal Code Section 186.2;

(7) The applicant is less than twenty-one years of age.

(B) The action of the chief denying a cardroom permit on the basis of this section shall be subject to appeal to the city council. Notice of such appeal shall be filed with the city clerk within ten days after notice of denial of the permit. Upon failure to file notice of appeal within the ten day period, the action of the chief denying the permit shall be final and conclusive.

Ord. 99-17 § 1, 1999

Every person conducting, carrying on or managing a cardroom, or

permitting the conduct or operation of any card game in premises open to the public, or to which an admission fee is charged, as provided in Section 5.12.020 of this chapter, whether separately or in conjunction with any other business, shall pay to the city the sum of five hundred dollars annually, payable in advance, plus an additional permit fee of two hundred dollars annually, payable in advance, for each table in such cardroom or cardrooms. The city council may change such fees by resolution adopted from time to time.

Ord. 99-17 § 1, 1999

(A) No person shall be granted a permit to operate more than one cardroom.

(B) No cardroom permit shall be sold, transferred or assigned by the permittee or by operation of law. Any sale, transfer or assignment, or attempt to sell, transfer or assign the permit shall be deemed to constitute a voluntary surrender of the permit, which shall thereafter be deemed terminated and void. This section does not restrict the right of any cardroom owner to sell, transfer or assign ownership interest in the cardroom itself. Anytime a cardroom changes ownership, the new owner must apply and qualify for a cardroom permit as provided by this chapter.

(C) The city council may, by resolution, in the best interest of the public welfare, limit the number of cardroom permits issued within the city.

Ord. 99-17 § 1, 1999

(A) Cardroom employees must obtain a cardroom work permit from the chief. For the purpose of this chapter, "cardroom employees" are defined to include dealers, overseers and others directly connected with the operation and supervision of card tables, and excludes waiters, waitresses, bartenders, culinary workers and others not connected with such operation and supervision. Applications for cardroom work permits shall be submitted under oath and contain the past criminal record, if any, of the applicant, and such information as may be deemed necessary by the chief to determine whether the applicant is a proper person to be issued a cardroom work permit. The application also shall be accompanied by fingerprints, a recent photograph of the applicant and an amount equal to any fingerprint processing fee required by the city.

(B) A cardroom work permit shall not be issued to any person who would be disqualified from holding a state gambling license for the reasons specified in subsections (a) through (g) of Section 19859 of the Act, or regarding whom the Division of Gambling Control of the state of California has filed an objection with the city.

(C) The chief may deny issuance of a cardroom work permit for any further cause deemed reasonable by the chief. The action of the chief denying a cardroom work permit on the basis of this section shall be subject to appeal to the city council. Notice of such appeal shall be filed with the city clerk within ten days after notice of denial of the permit. Upon failure to file notice of appeal within the ten day period, the action of the chief denying the permit shall be final and conclusive.

(D) Cardroom work permits shall be prominently displayed in the cardrooms when the holder of the permit is working.

(E) Each application for a cardroom work permit shall be accompanied by a fee of two hundred dollars. The fee shall not be returned in the event that the permit is refused, revoked or suspended, as provided in this chapter. The permit shall be valid for one year from the date of issue; however, it may be prorated quarterly. The date of expiration shall be prominently displayed on the face of the permit.

(F) The holder of a cardroom work permit shall not be restricted as to place of employment.

Ord. 2007-04 § 2, 2007

Ord. 99-17 § 1, 1999

The chief may revoke or suspend, and take possession of any

cardroom permit or cardroom work permit issued under this chapter, upon any violation of the provisions of this chapter. The action of the chief shall be subject to appeal to the city council. Notice of such appeal shall be filed with the city clerk within ten days after notice of revocation or suspension action. Upon failure to file notice of appeal within the ten day period, the revocation or suspension of the permit shall be final and conclusive.

Ord. 99-17 § 1, 1999

Before any cardroom shall be allowed to operate, each cardroom and each

owner, manager and operator of a cardroom, shall adopt a schedule of hours of operation, which such schedule shall first be approved by the police chief. Each cardroom shall conspicuously post schedules of its hours of operations at all entrances and exits of the premises in which the cardroom is operating in order to give law enforcement officials and patrons adequate notice of the hours during which the cardroom will be open for business. Cardrooms which comply with all requirements of this chapter shall be authorized to operate twenty- four hours each day.

Ord. 99-17 § 1, 1999

Each establishment having a cardroom open to the public shall

prominently post signs, in English and Spanish languages, stating the fees charged for playing cards in such cardrooms.

Ord. 99-17 § 1, 1999

The total number of card tables allowed

in each establishment issued a cardroom permit shall not exceed sixteen.

Ord. 2021-04 § 2, 2021

Ord. 99-17 § 1, 1999

The total number of card tables permitted

within the city shall not exceed sixteen.

Ord. 2021-04 § 3, 2021

Ord. 99-17 § 1, 1999

There shall be no wagering limits at cardrooms within the city. Such rules for

wagering limits shall be conspicuously posted at or near each card table within a cardroom in order to give patrons adequate notice of the applicable wagering limits.

Ord. 2007-04 § 1, 2007

(A) No tables other than a table for which a permit has been issued shall be kept or maintained in the same room in which there is a kept or maintained or operated a card game or a card table permitted under the provisions of this chapter.

(B) No premises shall be licensed for a card game or card table without approval, both as to location and the number of tables for the location, by both the city building department and the subsidiary fire protection district of the city.

(C) A card game or card table permit does not authorize the permittee to engage in any other business, and in the event that the permittee conducts another business or businesses, the permittee must secure any additional city licenses or permits otherwise required for such other business or businesses.

Ord. 99-17 § 1, 1999

(A) A cardroom permit is valid only for the location provided for in the permit.

(B) In the interest of promoting the public peace, safety and general welfare, as may be authorized by applicable law, any new cardrooms shall be prohibited in any of the following locations:

(1) On a parcel with any type of residential zoning;

(2) Within one thousand feet of the following areas:

(a) Public or private pre-school or K-12 school,

(b) A licensed hospital, medical clinic, alcohol or other drug abuse recovery or treatment center, or community care residential facility providing mental and/or social rehabilitation services,

(c) A public park or playground,

(d) A public library,

(e) A church;

(3) Licensed cardrooms existing within the city of American Canyon as of the passage date of the ordinance codified in this chapter are exempt from subsections (B) and (C) of this section.

(C) The footage distance shall be measured from the closest point on the exterior property lines of the cardroom establishment to the closest point on the exterior property lines of the other property.

Ord. 99-17 § 1, 1999

(A) Each applicant for a cardroom permit, at the time of application, and each holder of a cardroom permit annually thereafter, at the time of permit renewal, shall present a plan for security and safety of patrons of the cardroom in and around the cardroom establishment. The plan shall set forth such provisions as are necessary to ensure the safety and security of patrons, including measures taken or instituted to avoid follow home robberies. The holder of a cardroom permit shall be liable for the safety and security of patrons to the fullest extent under the law. Any effort on the part of a cardroom permittee to limit such liability shall be clearly posted in such a manner as to give adequate notice to patrons. The plan shall include a detailed summary of all known incidents involving or affecting patron security and safety in and around the cardroom establishment for the preceding year.

(B) The chief may require, in his or her discretion, all cardroom permittees to implement reasonable security measures to insure the safety of patrons including, but not limited to, hiring private uniformed security guards. If security guards are required, the chief shall determine the number and hours of coverage.

(C) During all hours of operation, doors to the cardroom establishment shall be unlocked and accessible to the general public and open to police inspection. Cardrooms shall be located and so arranged that card tables and the players at the tables are plainly visible from the door opening of the cardroom when the door is opened. No wall, partition, screen or similar structure between the front door opening and any card table located in the cardroom shall be permitted if it interferes with such visibility. The requirement that all card tables and players at the tables are plainly visible from the door opening of the cardroom may be accomplished by a video surveillance system with storage capability that provides twenty-four hour surveillance of each table in a cardroom, subject to city or regulator inspection. The referenced video surveillance system must be approved by the city.

Ord. 2021-04 § 4, 2021

Ord. 99-17 § 1, 1999

No persons under the age of twenty-one shall be permitted in or about any

cardroom establishment.

Ord. 99-17 § 1, 1999

No cardroom owner, operator or employee shall permit any person to loiter

within the cardroom while card games are in progress.

Ord. 99-17 § 1, 1999

No cardroom

owner, operator or employee shall permit any person to enter or remain on the premises of a cardroom, or to play any card game while such person is under the influence of any intoxicating beverage, narcotic, or drug.

Ord. 99-17 § 1, 1999

(A) The issuance of any new cardroom permits or the commencement or operation of any new cardrooms or card games is prohibited.

(B) The cardrooms presently operating within the city are specifically exempt from this prohibition as long as the required permits are obtained and annually renewed.

Ord. 99-17 § 1, 1999

Any person guilty of violating any of the provisions of this chapter, or

performing any act declared by this chapter to be unlawful, shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punished by a fine and/or imprisonment, in accordance with the general penalty provision then in effect in the city.

Ord. 99-17 § 1, 1999

This chapter, Sections 5.12.230 through 5.12.380 (hereinafter referred to as

"Cardroom Tax Provisions"), are enacted solely to raise revenue for municipal purposes and are not intended for regulation.

The words and phrases used in the cardroom tax provisions shall have the meaning

prescribed to them in this section unless they are specifically defined in these cardroom tax provisions or unless the context clearly requires to the contrary: "Cardroom establishment" means and includes any building, structure, place or location wherein cardroom activities take place pursuant to this chapter of the American Canyon Municipal Code. "Cardroom event" means any card games, cardroom activities or cardroom tournaments permitted by this chapter and/or the California Business and Professions Code Section 19800 et seq., and the State of California Department of Justice Division of Gambling Control. "Gross receipts tax" or "tax" means a tax on a cardroom's gross revenues for each quarter, beginning January 1, 2013. "Gross revenues" means the definition of "gross table gaming revenue" as reported to the California Gambling Control Commission and the California Department of Justice Bureau of Gaming Control. "Permittee" means a person who has been issued a cardroom permit under this chapter.

Ord. 2013-05 § 1, 2013

Ord. 2010-11 § 1, 2010

(A) Effective January 1, 2013, each cardroom establishment shall pay to the city, on a quarterly basis, a gross receipts tax of two and one-half percent of its quarterly gross revenues.

(B) The gross receipts tax shall increase to three percent, effective upon the earlier of either of the following dates:

(1) March 27, 2017; or

(2) One year after the city authorizes cardroom operators in the city to operate sixteen tables.

(C) The tax imposed by the gross receipts tax provisions of this chapter is in addition to any other tax, license or permit fee that may be required of any person by the American Canyon Municipal Code or any other ordinance of the city.

(D) All taxes, interest and penalties received pursuant to the gross receipts tax provisions shall be deposited in the general fund.

Ord. 2013-05 § 1, 2013

Ord. 2010-11 § 1, 2010

Before the thirtieth day following the end of each quarter, the licensee shall

file with the city finance department, a statement, under oath, showing the true and correct amount of gross revenues for the preceding quarter. A signed declaration shall be attached to the statement included therein, which shall be in substantially the same form as: "I hereby declare under penalty of perjury that the foregoing is true and correct." Pursuant to Section 5.12.260 of this chapter, the city shall have the right to audit matters reported in the statement to determine the accuracy of the figures contained therein.

Ord. 2013-05 § 1, 2013

(A) The books, records, statements and accounts of any permittee may be inspected and audited by the city.

(B) Such an inspection and audit may be performed by the director of finance, city auditor or a qualified accountant or city official who shall be selected by the director of finance.

(C) Any failure or refusal of any permittee to pay such sums by way of taxes when the same are due and payable in accordance with the gross receipts tax provisions of this chapter, or to permit such inspection of such books, records and accounts of such permittee shall be and constitute full and sufficient grounds for suspension or revocation of any cardroom permit issued to the permittee pursuant to Section 5.12.090.

Ord. 2013-05 § 1, 2013

Ord. 2010-11 § 1, 2010

Provided that the permittee has entered into a development

agreement pursuant to Government Code Section 65864 et seq., with the city, for any related expansion of the permittee's cardroom premises, or any increase in the number of cardroom tables allowed, or any intensification of use of the premises, the payment schedule of the development agreement shall apply and the city shall not impose the gross receipts tax.

Ord. 2013-05 § 1, 2013

Ord. 2010-11 § 1, 2010

(A) All taxes imposed by the gross receipts tax provisions of this chapter shall be due and payable within thirty days of the end of each quarter.

(B) In the case of a cardroom which is discontinued, dissolved or otherwise terminated before the expiration of a tax period, the due date for any taxes accrued and owing to the city under the gross receipts tax provisions of this chapter shall be the date of termination of the cardroom business.

Ord. 2013-05 § 1, 2013

Ord. 2010-11 § 1, 2010

(A) Whenever any payment, statement, report, request or other communication received by the director of finance is received after the time prescribed by the gross receipts tax provisions of this chapter for the receipt thereof, but is in an envelope bearing a postmark showing that it was mailed prior to the time prescribed in this chapter for the receipt thereof, the director of finance may regard such payment, statement, report, request or other communication as having been timely received.

(B) If the due day falls on Saturday, Sunday or a holiday, the due day shall be the next regular business day on which City Hall is open to the public.

Ord. 2013-05 § 1, 2013

Ord. 2010-11 § 1, 2010

Unless otherwise specifically provided under other provisions of

this chapter, all taxes required to be paid pursuant to the gross receipts tax provisions of this chapter shall be deemed delinquent if not paid on or before the due date specified in Section 5.12.270.

Ord. 2013-05 § 1, 2013

Ord. 2010-11 § 1, 2010

The director of finance is not required to send a delinquency or other

notice or bill to any permittee subject to the gross receipts tax provisions of this chapter, and failure to send such notice or bill shall not affect the validity of any tax, interest or penalty due under the provisions of this chapter.

Ord. 2013-05 § 1, 2013

Ord. 2010-11 § 1, 2010

In addition to any other penalties or fines, civil or

criminal, any permittee who fails or refuses to pay any tax required to be paid pursuant to the gross receipts tax provisions of this chapter on or before the due date shall pay, in addition to the tax, penalties and interest as follows: A penalty equal to ten percent of the amount of the unpaid tax in addition to the amount of the tax, plus interest of one and one-half percent per month or fraction thereof on the amount of tax, exclusive of penalties, on the unpaid tax calculated from the due date of the tax until the date of payment.

Ord. 2013-05 § 1, 2013

Ord. 2010-11 § 1, 2010

For purposes of apportionment of the tax as may be

required by law and for purposes of administration and enforcement of the gross receipts tax provisions of this chapter generally, the director of finance may from time to time promulgate administrative rules and regulations.

Ord. 2013-05 § 1, 2013

Ord. 2010-11 § 1, 2010

The amount of any tax, penalties and interest imposed by the gross

receipts tax provisions of this chapter shall be deemed a debt to the city, and any permittee carrying on any business without having paid the tax under the gross receipts tax provisions of this chapter to the city shall be liable to an action in the name of the city and in any court of competent jurisdiction for the amount of the tax, and penalties and interest imposed on such business.

Ord. 2013-05 § 1, 2013

Ord. 2010-11 § 1, 2010

(A) If the director of finance is not satisfied that the amount of tax is correctly computed, the director may compute and determine the amount to be paid and make a deficiency determination upon the basis of the facts contained in the statement or upon the basis of any information in the director's possession or that may come into the director's possession.

(B) One or more deficiency determinations of the amount of tax due for period or periods may be made.

(C) When a permittee discontinues engaging in a cardroom business, a deficiency determination may be made at any time within three years thereafter as to any liability arising from engaging in such business whether or not a deficiency determination is issued prior to the date the tax would otherwise be due.

(D) Whenever a deficiency determination is made, a notice shall be given to the permittee concerned in the same manner as notices of assessment are given under Section 5.12.360.

Ord. 2013-05 § 1, 2013

Ord. 2010-11 § 1, 2010

(A) Under any of the following circumstances, the director of finance may make and give notice of an assessment of the amount of tax owed by a permittee under the gross receipts tax provisions of this chapter:

(1) If the permittee has not paid any tax due under the gross receipts tax provisions of this chapter;

(2) If the permittee has not, after demand by the director of finance, paid any additional amount of tax due under the gross receipts tax provisions of this chapter;

(3) If the director of finance determines that the nonpayment of any tax due under the gross receipts tax provisions of this chapter is due to fraud, a penalty of twenty-five percent of the amount of the tax shall be added thereto from the date the tax is due in addition to penalties and interest otherwise stated in the gross receipts tax provisions of this chapter.

(B) The notice of assessment shall separately set forth the amount of any tax known or estimated by the director of finance to be due, after full consideration of all information within his or her knowledge concerning the cardroom business and activities of the permittee assessed and shall include the amount of any penalties or interest accrued on each amount to the date of the notice of assessment.

Ord. 2013-05 § 1, 2013

Ord. 2010-11 § 1, 2010

The notice of assessment shall be served upon the

permittee either by handing it to the permittee personally, or by a deposit of the notice in the United States mail, postage prepaid thereon, addressed to the permittee at the address of the location of the business appearing on the face of the permit issued under this chapter to the permittee or to such other address as he or she shall register with the director of finance for the purpose of receiving notices provided under this chapter. For the purposes of this section, a service by mail is complete at the time of deposit in the United States mail.

Ord. 2013-05 § 1, 2013

Ord. 2010-11 § 1, 2010

(A) Within ten days after the date of service, the permittee may apply in writing to the director of finance for a hearing on the assessment.

(B) If application for a hearing before the director of finance is not made within the time herein prescribed, the tax assessed by the director of finance shall become final and conclusive.

(C) Within thirty days of the receipt of any such application for hearing, the director of finance shall cause the matter to be set for hearing before him or her not later than thirty days after the date of application, unless a later date is agreed to by the director of finance and the permittee requesting the hearing.

(D) Notice of such hearing shall be given by the director of finance to the permittee requesting such hearing not later than five days prior to such hearing. At such hearing said permittee may appear and offer evidence why the assessment as made by the director of finance should not be confirmed and fixed as a tax.

(E) After such hearing the director of finance shall determine and reassess the proper tax to be charged and shall give written notice thereof to the permittee in the manner prescribed in Section 5.12.350 for giving notice of assessment.

Ord. 2013-05 § 1, 2013

Ord. 2010-11 § 1, 2010

(A) The conviction and punishment of any permittee for failure to pay the required tax shall not excuse or exempt such permittee from any civil action for the tax debt unpaid at the time of such conviction.

(B) No civil action shall prevent a criminal prosecution for any violation of the provisions of this chapter or of any state law requiring the payment of all taxes.

Ord. 2013-05 § 1, 2013

Ord. 2010-11 § 1, 2010