Commerce Municipal Code Ch. 5.48 Card Clubs

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Editor's note— Ord. No. 804, § 2, adopted December 13, 2022, repealed the former Ch. 5.48, §§ 5.48.010—5.48.360, and enacted a new Ch. 5.48 as set out herein. The former Ch. 5.48 pertained to similar subject matter and derived from Ord. 306 §§ 1—16, 18, 19, 21—24, 26, 1982; Ord. 314 §§ 1—16, 18—19.1, 21—24, 26, 1982; Ord. 325 § 1, 1983; Ord. 346 §§ 1—3, 1984; Ord. 352 § 1—3, 1984; Ord. 366 § 1, 1985; Ord. 374 § 1, 1985; Ord. 386 §§ 1—4, 6—8, 1986; Ord. 393 § 1, 1986; Ord. 395 § 2, 1987; Ord. 422 § 1, 1988; Ord. 436 § 1, 1990; Ord. 443 § 1, 1991; Ord. 482 § 1, 1993; Ord. 488 § 1, 1994; Ord. 507 §§ 1—6, 14—18, 20—22, 1995; Ord. 511 § 2, 1995; Ord. 512 § 1, 1996; Ord. 516 § 1, 1996; Ord. 518 § 1, 1997; Ord. 526 § 1, 1997; Ord. 530 §§ 1—3, 1998; Ord. 534 §§ 3—9, 1999; Ord. 548 §§ 1—4, 2000; Ord. 564 § 1, 2003; Ord. 564 § 2, 2003; Ord. 587 § 1, 2005; Ord. 588 § 1, 2005; Ord. 595 §§ 1, 2, 2006; Ord. 608 §§ 1(part), 2(part), 2007, Ord. No. 650, §§ 1, 2, adopted 6-4-2013; Ord. No. 660, §§ 1, 1, 1, 1, 5, 6, 7, adopted 4-15-2014.

For the purposes of this chapter, the words and phrases hereinafter set forth shall have the following meanings ascribed to them unless the context clearly requires to the contrary:

(1) "Card club" means a business or enterprise licensed under the provisions of this chapter for the playing of draw poker, panguingue, or any other gambling game approved by the city manager.

(2) "Commence" means and includes commence, begin, initiate, start, open and establish.

(3) "Conduct" means and includes conduct, transact, maintain, prosecute, practice, manage, operate and carry on.

(4) "Employee" means every person, either an agent, employee, as owner, or under the direction of the owner of any card club or appurtenant or accessory facility or use of a card club.

(5) "Game," "games" or "gaming activity" means any game of chance, including any gambling device, played for currency, check, credit or any other thing of value, and any other endeavor, game, device or promotional scheme that is appended to, references, or relies upon, any game of chance approved pursuant to the provisions of Section 5.48.310 of this chapter.

(6) "License" means a license or permit for the playing of the games of draw poker, panguingue or any other gambling game (whether or not cards are used in playing it) approved by the city manager.

(7) "Owner" means every person, firm, association, partnership, corporation, or other entity having any interest, legal or equitable, in any card club or card club license.

(8) "Person" means and includes a natural person, or any other legal entity which owns, operates, or proposes to operate a card club in the city.

(9) "Playing cards" or "card games" means the playing of the games of draw poker, panguingue or any other gambling game (whether or not cards are used in playing it) approved by ordinance or resolution adopted by the city council.

(10) "Pointholder" means any person, having any interest whatsoever, in the ownership in a card club, whether legal, equitable, or of whatsoever kind or character.

(11) "Purport to commence" and "purport to conduct" means and includes any showing, representation, indication or action which:

a. By means of sign, advertisement, or advertising matter, whether in, upon or about any premises or otherwise;

b. By the appearance or arrangement of any premises; or

c. By acts or statements of any person, or by the agents, servants, or employees of any person, indicates, suggests, holds out, or represents that any person is, would be, or appears to be conducting or in a position to conduct any business referred to in this chapter within the city.

(12) "Proposition player" means an employee, using player's own money for wagering, used to start up new games and to maintain existing games.

(13) "Associated equipment" means any equipment or mechanical, electromechanical or electronic contrivance, component or machine used by players to remotely or directly place wagers.

(Ord. No. 804, § 2, 12-13-2022)

It is unlawful for any person to commence or conduct, or purport to commence or purport to conduct, within the city any business, activity, enterprise, undertaking or place, where tables or other items or units of furniture are used directly or indirectly for playing cards or card games and for the use of which a fee, commission, or compensation is directly or indirectly charged, accepted, or received from players or participants in any such playing of games until such person shall have first obtained a license so to do under and in compliance with the provisions of this chapter.

The location of card clubs permitted by license pursuant to this chapter are limited to the applicable zoning designation set forth at Section 19.05.010 et seq. of this code.

(Ord. No. 804, § 2, 12-13-2022)

No application form for a license for the conduct of any game and/or business under this chapter shall be furnished by the city manager as provided in Section 5.48.060, nor shall any application for any license be received and filed by the city manager, nor shall the city manager be required to process any such application, nor shall a public hearing on the same be conducted when the number of current and valid licenses for the conduct of such card games in the city, when added together, shall total the sum provided for in Section 5.48.190.

(Ord. No. 804, § 2, 12-13-2022)

Applicant may not be licensed by city without first obtaining a gambling license from the California Gambling Control Commission. Subject to the provisions of Section 5.48.040, and subject to the provisions of this chapter, an application shall be filed by any person desiring or proposing to commence or conduct any business, activity, enterprise, undertaking, or place named, designated, specified or referred to in this chapter. Each such application shall contain and clearly and truthfully, under oath or affirmation, set forth and show, in addition to such other information as the city manager may require, the following information:

(1) The date of the application;

(2) The true name of the applicant;

(3) The status of the applicant as being an individual, firm, association, copartnership, joint venture, or corporation;

(4) If the applicant is an individual, the residence and business address of such applicant;

(5) If the applicant is other than an individual, the name, residence, and business address of each of the co-partners or members of the firm, co-partnership, trustor, trustee or joint venture and the name, residence, and business addresses of each of the principal officers and directors of the association or corporation applicant;

(6) The proposed location of the business for which the license is sought;

(7) That the type and nature of the game proposed to be played shall be draw poker, panguingue or other gambling games approved by ordinance or resolution of the city council, and that no other game or games are proposed;

(8) The number of tables or other units to be placed, employed, or used;

(9) A description of any other business conducted or proposed to be conducted at the same location;

(10) A description of the building proposed for such usage;

(11) A statement that such building will conform to all the laws of the state and the city for occupancies of the nature proposed;

(12) A statement that the applicant understands that the application shall be considered by the council only after a full investigation and report have been made by the city law enforcement agency having governmental jurisdiction and the building official or their authorized representatives;

(13) A statement that the applicant understands and agrees that any business or activity conducted or operated under any license issued under such application shall be operated in full conformity with all the laws of the state and the laws and regulations of the city applicable thereto, and that any violation of any such laws or regulations in such place of business, or in connection therewith, shall render any license therefore subject to immediate suspension and revocation;

(14) A statement that the applicant has read the provisions of this chapter and particularly the provisions of this section and understands the same; and

(15) A full and complete financial statement of the applicant, whether he is an individual, corporation, partnership, or other entity, and a full and complete financial statement of each person to be a partner of the applicant, regardless of whether the partner is to be a limited partner or general partner, and a full and complete financial statement of each officer and/or director of the corporation or other entity; provided, however, the financial statement required by this subsection shall be a confidential qualified document and shall not be open to public inspection but shall be available only to those city officials having direct jurisdiction over the provisions of this chapter and to any court of competent jurisdiction where any matter relating thereto may be actually pending. All information as required by this subsection shall be recorded on a standardized form "statement of financial interests" and filed with the city clerk.

(16) The city council shall not consider any application for any license contemplating less than a minimum of thirty-five licensed tables or units.

(17) No more than four hundred sixty-seven licensed tables or units shall be allowed to operate in any card club establishment.

(18) No more than four hundred sixty-seven licensed tables or units shall be allowed to operate within the city.

(19) Licensee shall post the minimum and maximum wager, if any, permitted at each gaming table in a conspicuous place on or near each gaming table.

(Ord. No. 804, § 2, 12-13-2022)

(a) The location of the card club license is site specific. The only locations authorized for the card club license are 6121 and 6131 E. Telegraph Road, City of Commerce, CA 90040.

(b) The hours of operation of a card club licensed under the provisions of this chapter are permitted to be twenty-four hours a day, three hundred sixty-five days per year. All licensed card clubs shall have their schedule of hours clearly posted at the card club so as to give law enforcement and patrons adequate notice of the hours during which the licensed card club will remain open for business.

(c) A card club licensed under the provisions of this chapter shall provide and maintain reasonable security on its premises, including the parking area. The card club shall employ a professional security staff which will monitor the activities on the premises and in the parking area. The card club shall make use of surveillance camera equipment and take reasonable steps to assure that patrons and visitors are not involved in criminal activity, or are the victims of criminal activity.

To the extent that a licensed card club is not liable for the safety and security of its patrons and visitors in and around the premises of the card club establishment, it shall make any limitations known to patrons and visitors by clearly posting a sign containing this information at each entrance of any building, which comprises the card club and at each entrance of every parking lot.

The director of security at the card club shall maintain a close working relationship with the Los Angeles County Sheriff's Department in meeting the requirements of this section.

(d) Before it shall be allowed to operate, each gambling establishment shall adopt rules for wagering limits in each game, after the rules have been approved by the city. During the hours of operation, the card club shall clearly post the rules for wagering limits at the gambling tables where the games are offered, to provide the patrons adequate notice of those rules.

(e) The number of gambling tables permitted in each card club licensed under the provisions of this chapter shall be in conformity with Sections 5.48.060(16) and (17) and Section 5.48.190.

(Ord. No. 804, § 2, 12-13-2022)

For the purpose of clarification, the license fees set forth in this chapter are for both regulation and revenue purposes and are levied pursuant to the authority of applicable laws. Each such application for any license shall be accompanied by fees and deposits, payable to the city as follows:

(a) An application fee of twenty-five hundred dollars which shall be retained by the city for the payment of the costs of investigation; and

(b) A license fee deposit of three thousand dollars which shall be the property of and retained by the city. In the event the license applied for is issued, the license fee deposit described herein shall be applied as a credit towards the license fee described in Section 5.48.080. In the event the license applied for is not issued, the license fee deposit described herein shall be returned to applicant;

(c) The advance license fees referred to in subsection (b) of this section shall become the absolute property of the city and shall not be refunded to any such applicant when licenses are issued, nor shall such fees be prorated in any manner whatsoever, and in the event of the cessation of such business, whether voluntary or involuntary, no refund of the advance fees shall be made.

(Ord. No. 804, § 2, 12-13-2022)

(a) Each licensee, licensed pursuant to the provisions of this chapter, shall pay to the city a monthly license fee of ten thousand dollars plus an amount based upon the total monthly gross revenue of the card game business so licensed, according to the following schedule:

In case of a new application, a deposit for the first quarter in the amount of thirty thousand dollars shall be paid in advance to the city when the license is issued. This sum shall be credited at the rate of ten thousand dollars per month against the payments due under Section 5.48.100. The advance license fees shall become the absolute property of the city and shall not be refunded to any such applicant when licenses are issued, nor shall such fees be prorated in any manner whatsoever, and in the event of the cessation of such business, whether voluntary or involuntary, no refund of the advance fees shall be made.

(b) Licensee shall, at its sole cost and expense, for the duration of the license, carry or maintain business interruption insurance, if commercially available at a reasonable cost, and provide proof thereof that is acceptable to the city of its procurement of such insurance. The city of Commerce shall be named as an additional insured or as an additional loss payee.

In the event that a licensee, licensed pursuant to the provisions of this chapter, suffers an abrupt or sudden interruption in its operations caused by an occurrence covered by the licensee's business interruption insurance, such as earthquake, fire, landslide or other insurable occurrence, the licensee shall:

(1) Continue to pay to the city the monthly license fee of ten thousand dollars; and

(2) Shall pay an additional monthly license fee calculated as the average monthly gross revenue fee paid to the city by the licensee during the preceding twelve months of operation.

The additional monthly license fee referenced above shall be payable only if the occurrence causing the interruption in card club operations is a covered risk under the licensee's business interruption insurance policy, and shall be payable exclusively out of payments made from such insurance policy, subject to its terms and conditions.

The additional monthly license fee payments shall continue until such time as the licensee's benefit under such insurance ceases or expires.

(Ord. No. 804, § 2, 12-13-2022)

The city has the right to review and approve the accounting procedures of each licensee before such accounting procedures can be put into effect.

(Ord. No. 804, § 2, 12-13-2022)

(a) Each licensee shall file with the city before the tenth day of each calendar month a reporting form approved by the city manager or his designee, under oath, showing the true and correct amount of gross revenue derived from the card game business licensed by the licenses issued to or held by such licensee for the preceding calendar month. Such statement shall be accompanied by the payment of the correct amount of licensee fee due and owing in accordance with the provisions of Section 5.48.080, and such sums correctly reflecting the monthly fees payable for the preceding month shall be accepted by the city, subject, however, to the right of the city to audit the matters referred to in the statement and to determine the correctness of the figures set forth in such statement and the amount payable to the city pursuant to the provisions of Section 5.48.080. If the tenth day of the month falls on a city holiday, the report will be due on the first prior city working day.

(b) In addition to the foregoing, a certification shall be attached to the statement, or included therein, which certification or declaration shall be substantially in the following form:

"I hereby declare under penalty of perjury that the foregoing is true and correct."

___________Licensee, Managing Partner, or Owner. (Strike out the titles which are not applicable)

(c) The city manager or his designee, in the exercise of sound discretion, may grant an extension of time for any payment due under this section, for a period not to exceed thirty days. The late payment shall bear interest payable to the city at the current Bank of America prime rate plus two percent.

(Ord. No. 804, § 2, 12-13-2022)

The books, records, and accounts of any card club may be audited by the city, such an audit to be performed by a qualified accountant who shall be selected by the council and/or City Manager.

(Ord. No. 804, § 2, 12-13-2022)

Any failure or refusal of any such licensee to make and file any statements as required within the time required, or to pay such sums by way of license fees when the same are due and payable in accordance with the provisions of this chapter, or to permit such inspection of such books, records, and accounts of such licensee shall be and constitute full and sufficient grounds for suspension and revocation of the license of any such licensee.

(Ord. No. 804, § 2, 12-13-2022)

(a) Investigations Required. Whenever an application under the provisions of this chapter has been filed with the city manager, such application, or a true copy thereof, shall be forwarded immediately to the council, and:

(1) Upon the direction of the city manager or the city council, the law enforcement agency having governmental jurisdiction shall promptly and diligently make a full and complete investigation of the applicant whose name and address is shown upon the application including its officers, management and supervisory personnel, and members;

(2) A full and complete investigation shall be made of the building and location where the applicant proposes to conduct such business or activity;

(3) Concurrently with the filing of the application, the applicant shall be fingerprinted by the law enforcement agency having governmental jurisdiction. It shall be the responsibility and duty of the law enforcement agency having governmental jurisdiction to establish the necessary procedures to administer the provisions of this subsection.

Any information received by the law enforcement agency having governmental jurisdiction pursuant to the provisions of this subsection shall be treated as confidential and shall be accessible only to the law enforcement agency having governmental jurisdiction and to city officials having the direct jurisdiction of the provisions of this chapter.

(b) Reports Required. The law enforcement agency having governmental jurisdiction shall make such investigations with reasonable promptness and shall report to the city manager with reference thereto in due time, and shall make investigations with reasonable promptness as to all matters within their jurisdiction concerning the public health, welfare and safety as may be concerned with such application.

(c) Reports Prerequisite to Council Consideration. The council shall not consider any application for a license until such time as the city manager has filed his reports with the council.

(d) Time of Filing Reports. All such reports shall be filed with the council within a period of ninety days after the applications have been referred to the city manager and his/her staff.

(e) Action in Absence of Reports. In the event that any such reports are not filed within such ninety-day period, the council shall have the right either to extend the time period or to proceed further without such reports and either grant, with or without conditions, or deny the application in the sole discretion of the council.

(Ord. No. 804, § 2, 12-13-2022)

(a) Consideration by Council. Whenever an application for a license, required under the provisions of this chapter, is presented to the council, and the deposits required by this chapter in connection therewith have been made with city manager, the council shall cause to be given at least fifteen days' published notice of a public hearing on its intent to consider whether such license should be issued. The council shall also give at least five days' mailed notice to the applicant of the time and place of such hearing.

(b) Decision of Council. The council may, in its discretion, either approve the application and grant the license applied for or deny the application and refuse to grant the license applied for.

(c) License Conditions. Any such license granted by the council shall be deemed conditioned so as to require compliance with all of the terms, conditions, and provisions of this chapter, and any other conditions the council may impose as an express condition of approval.

(d) Decision of Council Final. The decision of the council to approve any such application and grant the license applied for therein, or to deny any such application and refuse to grant the license applied for therein, shall be final and conclusive.

(e) Applicant's Acceptance of Council's Decisions. The applicant shall agree that the sole and exclusive discretion as to the granting or denial of any such license shall be vested in the council.

(Ord. No. 804, § 2, 12-13-2022)

The council shall not authorize the issuance of any license under the provisions of this chapter in any of the following cases:

(a) If the proposed business or activity to be operated is in violation of any state or city law or regulation;

(b) Any person or persons having any interest whatsoever or at all in the ownership of a card club or casino licensed under this chapter, whether legal or equitable, or of whatsoever kind or character, whether same be as pointholder or owner, or a trustor or trustee, shall not manage, operate or have an ownership interest exceeding ten percent in any card club or casino located within a radius of fifty miles of the city limits.

The limitation in ownership interests described above includes and is applicable to any combination of persons whose cumulative ownership interest exceeds ten percent in a card club or casino doing business within a radius of fifty miles of the city limits.

The city council may waive these restrictions by resolution upon the finding that said waiver will neither harm the health, safety, and welfare of the public nor adversely impact the revenue of the city;

(c) If the game for which a license is applied for is unlawful;

(d) If a license is not available.

(Ord. No. 804, § 2, 12-13-2022)

(a) When any application for a permit or for transfer of a permit or for status as a pointholder is submitted pursuant to this part and if in the opinion of the city attorney, the city manager should disqualify himself from taking the action required by virtue of his position pursuant to this part, such duty shall be performed by a qualified agency designated as such by the city attorney.

(b) If, on any such matter which requires city council action, the city attorney determines that a conflict of interest exists as to a majority of the council members with regard to such matter, he shall disqualify the city council and shall refer the matter to a hearing officer for determination. Such hearing officer shall act upon the matter so referred, in the place and stead of the city council. Such hearing officer shall be a qualified person who shall be designated to act as the hearing officer by the then presiding judge of the superior court of the county of Los Angeles. The hearing officer shall be compensated for such services in an amount as suggested by the presiding judge.

(Ord. No. 804, § 2, 12-13-2022)

If the action of the council on any such application is to grant the same, the license collector shall thereupon issue the necessary licenses and renewals of licenses, upon payment of the required fees therefor, until such time as the license is either surrendered, suspended, or revoked.

(Ord. No. 804, § 2, 12-13-2022)

(a) Licenses issued under the provisions of this chapter shall be and remain valid until either surrendered in writing by the permittee, or suspended or revoked by the council as provided in this chapter.

(b) Refund. In the event of surrender, suspension, revocation or expiration, no license deposit or fee, or any portion thereof, shall be refunded.

(Ord. No. 804, § 2, 12-13-2022)

(a) The licensee may request of the city manager permission to charge players on a basis other than time rental charges. The city manager may grant permission, provided that the city manager shall make the following findings:

(1) The California Division of Gambling Control or California Gambling Control Commission has approved such alternatives;

(2) That the proposed alternate method is subject to strict controls; and

(3) That the licensee agrees to provide such physical and accounting controls as the city shall require.

(b) The alternative method shall apply only to games where the licensee supplies a dealer at the table and/or a game.

(Ord. No. 804, § 2, 12-13-2022)

The number of current licenses for card games in the city authorized and outstanding, when added together, shall not at any time exceed a total of one such license for each full ten thousand persons residing in the city, as shown by the last available census, but shall be not less than one. The number of current licenses for card games in the city shall increase to a number not to exceed one license for each full twenty-five thousand persons residing in the city provided voters approve the expansion of tables or units to a number not to exceed two-thousand five-hundred at a special election scheduled for March 7, 2023.

(Ord. No. 804, § 2, 12-13-2022)

(a) Any transfer or assignment of any license shall be considered for all purposes in the same manner as a new application for a card club license in the city, and all the provisions of this ordinance applicable to new and original application shall apply. Such a transfer shall be in accordance with the provisions of Sections 5.48.230 through 5.48.290.

(b) The provisions of this section and of Sections 5.48.230 through 5.48.290 shall not apply to any application for or notification of a transfer or assignment by any pointholder who is a member of a bona fide owner operating under a duly issued license to conduct a card club in the city of Commerce to a then presently existing pointholder.

(Ord. No. 804, § 2, 12-13-2022)

(a) General. All licenses issued pursuant to the provisions of this chapter shall be subject to revocation in the time and manner set forth in this section.

(b) Grounds. Any license issued pursuant to the provisions of this chapter shall be revoked if it is found, in the time and manner hereinafter described:

(1) That a licensee or any agent or employee thereof, has violated, or permitted, allowed or caused the violation of any provision of this chapter; or

(2) That a licensee, or any agent or employee thereof, has permitted, allowed or caused any violation of any condition of approval imposed upon the issuance of such license;

(3) That a license has made any fraudulent statement as to a material fact on an application form, or as to any other information presented as part of the application process.

(4) While there is only one license outstanding under this chapter, that the licensed card club has ceased or substantially ceased to do business during sixty or more days out of any consecutive ninety-day period

(c) Suspension. Suspension by the city council, city manager or his designee, may be immediate and at any time that the council, city manager or his designee are satisfied that any of the provisions, terms or conditions of this chapter, or any of the rules or regulations established by the council with reference to, relating to, or which are concerned with either the card games, business, or activities authorized or licensed by the provisions of this chapter, or the premises wherein the same located, or the manner or mode in which such card games, business, or activities are being conducted, are breached, violated, not complied with, or disregarded.

(1) Upon such suspension, a hearing conducted by the city council shall be held within five business days. Notice of such hearing shall be given to the licensee at least three days prior to such hearing. Such notice shall give the time, place and purpose thereof. The city council retains the right to continue the hearings as long as it deems necessary.

(d) Action of the City Manager. Whenever the city manager has information that a violation constituting a ground for revocation has occurred, he shall forthwith investigate the same. If he determines that such a violation has occurred, he shall forthwith set the matter for consideration by the city council at its next most convenient meeting. He shall give written notice of the time and the place of the hearing before the city council to the licensee not less than ten days in advance of the date set by him for such hearing.

(e) Hearings. At the time set for such hearings, the city council shall hear the evidence presented by the city manager, purporting to show the grounds existing for suspension and/or revocation; thereafter, the city council shall permit the licensee, and any other interested person, to present such evidence as may be relevant to dispute the existence of such facts.

(f) Public Hearing-Subpoenas. In the event the application is set for hearing, the city manager or the council shall at their direction cause to be issued and served any subpoenas as they shall direct in accordance with the provisions of the laws of the state relating thereto requiring the attendance of any person whom the council deems in its discretion to be a necessary and proper party to testify as to any material matters concerning any applicant or any of its agents, officers, employees, associates, or possible investors in the enterprise.

(g) Division of City Council. If, based upon the evidence presented, the city council finds that facts are presented which constitute grounds for revocation or suspension, it shall revoke or suspend the license. If it finds that such facts are not present, it shall dismiss the proceedings. The decision of the city council shall be final and conclusive.

(Ord. No. 804, § 2, 12-13-2022)

In lieu of revocation or suspension under Section 5.48.210, in the event of any violation described in Section 5.48.210(b), the city manager may recommend a fine not to exceed ten thousand dollars for each violation, said fine to be imposed by the city council after a hearing held no less than ten days after notice has been given to the alleged violator.

(Ord. No. 804, § 2, 12-13-2022)

The licensee shall keep on file with the law enforcement agency having governmental jurisdiction, and on the licensed premises, as to each employee of the card club and appurtenant facilities, a comprehensive employee list and the following current information under penalty of perjury:

(1) Residence address during the past five years;

(2) Current occupation or employment;

(3) Employment during the past five years;

(4) Physical characteristics, including age, date of birth, height, weight, and color of hair and eyes;

(5) Driver's license and social security numbers; and

(6) A current full face photo of each owner, principal, employee or agent of the card room.

The information kept on file on the licensed premises, pursuant to the previous provisions of this section, shall be made available on demand for viewing by the law enforcement agency having governmental jurisdiction or by the city manager or his designee.

For the purposes of this section, a director of a corporation which owns or operates a licensed card club shall be deemed to be an employee.

(Ord. No. 804, § 2, 12-13-2022)

(a) It is unlawful for any licensed card club in the city to employ any person who does not have a valid, unsuspended and unrevoked employee work permit, bearing the employee's photograph, issued by the city's law enforcement agency. Work permits shall not be transferred or assigned. All employees of a card club shall be subject to the fingerprinting and background investigation as set forth in this chapter. Employees who are employed by a card club, but who have not undergone the fingerprint and background investigation, will be granted a temporary work permit pending completion of a fingerprint and background investigation as required in this chapter.

(b) Any person wishing to obtain an employee work permit shall file an application with the law enforcement agency of the city. Such application shall be made in the form and manner as prescribed by the city's law enforcement agency. Applicant will be required to provide photographs and fingerprints, in addition to such other information as the city's law enforcement agency may require. Prospective employees filing an application for a work permit may be granted a temporary work permit pending processing of the application and completion of the background investigation described in subsection (c) of this section.

(c) The city's law enforcement agency shall on behalf of the city, submit the application and fingerprints to the California Department of Justice. The department of justice shall provide criminal history information to the city's law enforcement agency for the purpose of determining the applicant's eligibility for a work permit. The city's law enforcement agency shall also check the applicant for outstanding wants and warrants and shall verify the accuracy of the information contained in the application. The city's law enforcement agency, on behalf of the city, may approve, conditionally approve or deny an application for a work permit in the following cases:

(1) If the applicant has been convicted or pled nolo contendere of any crime punishable as a felony;

(2) If the applicant has been convicted of a misdemeanor involving dishonesty or moral turpitude within the ten-year period immediately preceding the submission of the application unless the applicant has been granted relief pursuant to Section 1203.4, 1203.4a, or 1203.45 of the California Penal Code; provided, however, that the granting of relief under Section 1203.4, 1203.4a, or 1203.45 of the California Penal Code shall not constitute a limitation on the discretion of the city's law agency to grant a work permit or affect the applicant's burden of proof;

(3) If the applicant has been convicted in activities involving bookmaking, loansharking, corruption, prostitution, money laundering or other illegal gambling activities;

(4) If the applicant has made any false statements in the application or as to any other information presented as the part of the application process;

(5) If the approval of the applicant would be inimical to the interests of legitimate gaming;

(6) If the department of justice, division of gambling control, objects to the issuance of a work permit consistent with Business and Professions Code Section 19910 et seq.;

(7) If the applicant is disqualified from holding a state gambling license for any of the reasons specified in Business and Professions Code Section 19859; or

(8) If the applicant is disqualified from holding a state gambling license by any other restrictions provided by law. If the application is denied, the licensee may appeal such denial on behalf of the applicant by written notice to the city manager who shall cause a hearing to be held before a hearing officer within forty-five days after receiving such notice. Within fifteen days from the date of the hearing, the hearing officer shall prepare a written decision granting, conditionally granting or denying the appeal. The hearing officer may approve, conditionally approve, or deny such appeal. The hearing officer's decision shall be final and conclusive. The cost of such hearing shall be borne by the applicant.

(d) An employee work permit may be suspended or revoked under the following circumstances:

(1) The commission of any act which would have been grounds for denial of a work permit pursuant to subsection (c) of this section; or

(2) The violation of any condition imposed in issuing such work permit. The work permit may be immediately suspended by the city if the offense is such to cause an immediate threat to the public welfare. Such immediate suspension shall remain in effect for seven days or until a final decision is rendered by a hearing officer appointed by the city manager, whichever occurs first. The hearing officer may suspend or revoke a work permit after a hearing following five days' notice to the employee. The employee shall be permitted to submit any relevant evidence to the hearing officer. The decision of the hearing officer shall be final and the costs shall be borne by the employee.

(e) Unless specifically exempted by the city in writing, each employee, at all times while acting within the scope of his or her employment on the card club premises shall wear in a prominently visible place upon his or her person the employee work permit issued by the city. It is the responsibility of the licensee to monitor all employees under this section. A violation of this section shall be subject to the penalties provided in Section 5.48.211.

(f) The information received by the city pursuant to this section shall be treated as confidential and shall be accessible only to those city officials having jurisdiction over the provisions of this chapter.

(g) Any application for a work permit shall be subject to objection by the state division of gambling control. If the division of gambling control objects to the issuance of a work permit it shall be denied. such a denial may be reviewed in accordance with the Gambling Control Act (Business and Professions Code Sections 19800, et seq.). Employees who are granted a permit to work in a card club shall be permitted to work in said club until they no longer are employed by that club or if information of conviction or pleading nolo contendere of a disqualifying crime becomes known to the city. The investigation and permitting fee for said employees shall be determined in the reasonable discretion of the city with said fee due and payable by the employer of said employee.

(Ord. No. 804, § 2, 12-13-2022)

Established. The following rules and regulations are established and promulgated by the city council with reference to card games for which licenses are issued under the provisions of this chapter. Licensees holding or obtaining licenses under the provisions of this chapter shall, in writing, agree to be bound by and observe each and all of the provisions of this chapter relating to such licenses:

(1) Rule No. 1. Permittees and licensees holding or obtaining permits and licenses under the provisions of this chapter shall thereby automatically agree to be bound by and observe each and all of the terms, conditions and provisions of this chapter and of the rules and regulations established thereby relating to such permits and licenses.

(2) Rule No. 2. No licensee shall use, operate or permit the use or operation of more tables or units than those for which such licensee holds then current and valid licenses to operate or use in the city.

(3) Rule No. 3.

(A) No licensee shall permit any person to play or remain in any game licensed by the provisions of this chapter at any time while such person appears to be, or is, under the influence of intoxicating liquor or drugs or who exhibits irrational behavior, and no person under, or who appears to be under, the influence of intoxicating liquor or drugs or who exhibits irrational behavior shall play in any such game or be allowed to remain on the premises.

(B) No licensee shall permit any person to enter the premises while such person appears to be, or, in the opinion of the licensee, or duly authorized agents or employees, is under the influence of intoxicating liquor or drugs or who exhibit irrational behavior.

(4) Rule No. 4. Unlimited Wagering: There are no mandatory limits on the amount wagered in any permitted games. A gambling establishment licensee may impose wagering limits on any game, at his or her discretion. Before a gambling establishment is allowed to operate, the rules for wagering limits shall be approved by ordinance or resolution of the city council or by the city manager. Such rules shall be clearly posted at the gambling tables where the games are offered during hours of operation to provide patrons adequate notice of those rules.

(5) Rule No. 5. No licensee shall operate or use any table or unit or manage, conduct or carry on any business or activity licensed by this chapter after the time that such license issued by the city has been or is revoked or suspended.

(6) Rule No. 6. Each and all of the games conducted or operated in the city pursuant to the provisions of this chapter shall be conducted and operated in full conformity with, and subject to all the provisions of applicable laws.

(7) Rule No. 7. No licensee shall permit or allow any person under the age of twenty-one years to play in any game licensed hereunder, at any time in any card room covered by or referred to in any such license.

(8) Rule No. 8. The only games permitted to be played in a licensed club shall be the games of draw poker, panguingue and any other gambling game authorized by ordinance or resolution of the city council or by the city manager.

(9) Rule No. 9. It shall be unlawful for any person as an operator, agent, and/or employee of any duly licensed card club to assign, arrange for, or in any other manner sublet, directly or indirectly, with or without consideration, to any person not having a valid unrevoked license to conduct such card game. It shall likewise be unlawful for any person to conduct any lawful game, as provided pursuant to the provisions of this chapter, in a duly licensed card club not having a valid unrevoked license to conduct such game or games. It shall also be grounds for the revocation or suspension of any license issued to any card club to permit the farming out, assigning, or subletting of any game lawfully permitted pursuant to the provisions of this chapter.

(10) Rule No. 10. The playing of all games provided for in this chapter shall be confined to the areas designated as "card room" which shall be located on the first or second floor of a licensed card club, or such other area as approved by the city manager, and no playing of any game provided for or permitted by this chapter shall be permitted at any other location on such premises. If the patrons may not freely and without hindrance view tables or other units and games located or being played or conducted in any room other than the "card room," the licensee must get written authorization from the city manager.

(11) Rule No. 11. A card club including all appurtenances shall be open for inspection during all hours to the city manager, or his duly authorized representative, without a search warrant.

(12) Rule No. 12. A card club shall be open for inspection during all hours to all law enforcement agencies having jurisdiction, and to their duly authorized representatives without a search warrant.

(13) Rule No. 13. The minimum size of any lot or combination of lots upon which each card club is placed along with its required off-street parking shall be controlled by the city planning department and approved by the city council.

(14) Rule No. 14. All persons caught cheating in the establishment shall be dealt with in the manner prescribed from time to time by the appropriate law enforcement authorities and the licensee shall cooperate fully in the prosecution of all persons who are criminally charged with cheating in the licensed establishment. Cheating devices shall be confiscated and shall not be returned to the person or persons using or bringing such devices onto the premises.

(15) Rule No. 15. A licensee may use associated equipment to facilitate the play of any approved game and wagering on all tables and /or games. No more than one hundred persons may play or wager on a single table and/or game using associated equipment.

(Ord. No. 804, § 2, 12-13-2022)

(a) Except as otherwise provided in this chapter, it is unlawful for any person having any interest whatsoever or at all in the ownership of a card club, whether legal or equitable, or as trustor or trustee, or of whatsoever kind or character, to transfer such points and/or interest without written notification to and the written consent of the city manager.

(b) Any person desiring to sell, transfer, assign, or otherwise hypothecate any point or interest in a card club duly licensed pursuant to the provisions of this chapter shall file with the city manager a written application for permission to transfer such interest pursuant to a form approved by the city manager and that sets forth the following:

(1) The date of the application;

(2) The true name of the applicant and proposed transferee;

(3) The status of the transferee as being an individual, corporation, association, co-partnership, joint venture, trustor, or trustee;

(4) The residence and business address of the transferee, if an individual;

(5) If the transferee is other than an individual, the name, residence, and business address of each of the copartners or members of the firm, co-partnership, trustor, trustee, or joint venture and the names and residence and business addresses of each of the principal officers and directors of the association or corporation applicant;

(6) The name of the licensed card club for which a transfer of interest or point is sought;

(7) The number of points and/or nature of interest sought to be sold, transferred, assigned, or otherwise hypothecated;

(8) Whether the transferee has an ownership or management interest in any other gambling establishment or gambling enterprise that requires licensure by the state gambling control commission or its successor; and

(9) Written confirmation that the state gambling control commission has duly licensed the transferee under the California Gambling Control Act, Business Professions Code Sections 19800 et seq. A copy of the application filed with the state gambling control commission shall be provided along with the application filed with the city manager.

(c) If the application is incomplete, the city manager will advise the applicant of that fact within thirty days of the city manager's receipt of the application; the applicant will also be advised of the additional information that is required.

(Ord. No. 804, § 2, 12-13-2022)

(a) Consideration. Whenever an application for a transfer meeting the requirements of Section 5.48.230 is presented, the city manager shall either provide his written consent to the transfer or refer the application to the city council for its consideration and consent. The city manager will notify the applicant of his or her written consent, or of his decision to refer the application to the city council, within forty-five days of his receipt of the completed application.

(b) Decision of Council. The council may in its discretion either approve, conditionally approve, or deny the application. The decision of the council shall be final and conclusive. The city council may also require that the applicant provide more detailed information and proceed with a more thorough investigation by the city, as follows:

(1) A full and complete investigation of the transferees;

(2) The transferee shall be fingerprinted by a duly appointed law enforcement agency;

(3) It shall be the responsibility and duty of the law enforcement agency having governmental jurisdiction to establish the necessary procedures to administer the provisions of this section; and

(4) The information received by the law enforcement agency having governmental jurisdiction pursuant to the provisions of this section shall be treated as confidential and shall be accessible only to the law enforcement agency having governmental jurisdiction and to city officials having the direct jurisdiction of the provisions of this chapter.

(c) License Fees. If the city council requires the thorough investigation pursuant to Section 5.48.240(b), the applicant shall be required to pay a processing fee, payable in advance, as set by the finance director who shall notify licensee's administrative office annually of the fee amount sufficient to cover the cost of the more thorough investigation. In the event of an extraordinary investigation requirement, an additional amount sufficient to cover the cost of such extraordinary investigation will be charged by the city. The fee set forth in this section shall be the property of and be retained by the city, whether the application for transfer is granted or denied.

(Ord. No. 804, § 2, 12-13-2022)

(a) Consideration by Council. Whenever an application for such a transfer is presented to the council, the council shall consider such application on the same basis and subject to the same hearing procedures as are applicable to a new license application.

(b) Decision of Council. The council may in its discretion either approve, conditionally approve, or deny the application. The council shall make its decision within ninety days after the city's receipt of a completed action, or if a more thorough investigation is required pursuant to Section 5.48.240(b), within ninety days after the completion of a more thorough investigation by the city. The decision of the council shall be final and conclusive.

(c) Applicant's Acceptance of Council's Decision. The applicant shall agree as part of the application that the sole and exclusive discretion as to the granting or denial of any such application shall be vested in the council.

(Ord. No. 804, § 2, 12-13-2022)

(a) Any person having any interest whatsoever or at all in the ownership of a card club, whether legal or equitable, or as a trustor or trustee, or of whatsoever kind or character, who has not previously submitted to the procedure required under Section 5.48.230, shall file within one hundred eighty days after June 1, 2014, as a prerequisite to the continued holding of an ownership interest, the application as provided in Section 5.48.230 for persons applying for new ownership interest. The requirement in the second paragraph of subsection (b)(9) of Section 5.48.230, that the applicant provide a copy of the application filed with the state gambling control commission along with the application filed with the city manager, shall not apply to an application required by this section. If the council denies any application, within six months after the receipt of a notice of such denial, the interest owner shall divest himself or herself of such ownership interest.

(b) If the council denies the application and requires, pursuant to Section 5.48.260(a), that the interest owner divest himself or herself of their ownership interest in the card club, the council may extend the six-month time limit required by subsection (a) for such divestiture for a reasonable period of time to allow such person to sell or divest himself or herself of their ownership interest. The applicant shall nevertheless not be entitled to realize or receive any profits, distributions, or payments that might directly or indirectly be due to such person or which arise out of, are attributable to, or are derived from their ownership interest in the subject card club, after the six month time period provided for in Section 5.48.260(a) has expired.

(Ord. No. 804, § 2, 12-13-2022)

(a) Any person having any interest whatsoever or at all in the ownership of a card club, whether legal or equitable, or as trustor or trustee, or of whatsoever kind or character, shall divest himself or herself of such ownership interest within one hundred twenty days after service of a notice of divestiture served on such person by the city pursuant to such person's final conviction of a misdemeanor involving moral turpitude or a felony. A plea or verdict of guilty, or a conviction following a plea of nolo contendere to a misdemeanor involving moral turpitude or a felony shall be deemed to be a final conviction within the meaning of this section, unless the conviction is appealed to a higher court, in which case the judgment and verdict of that court shall constitute the final action pursuant to which notice of divestiture shall be served if the conviction is affirmed.

(b) The city council may decide, in its discretion, to extend the time period required for such divestiture for a reasonable period beyond one hundred twenty days to allow such person to sell or divest himself or herself of their ownership interest. The person shall nevertheless not be entitled to realize or receive any profits, distributions, or payments that might directly or indirectly be due to such person or which arise out of, are attributable to, or are derived from their ownership interest in the subject card club, after the one-hundred-twenty-day time period provided for in Section 5.48.270(a) has expired.

(c) Within thirty days after the service of a notice of divestiture, the person or persons subject to such notice (appellant) may request in writing a hearing before the council to appeal the notice and request a waiver of the divestiture requirement, including transfer to a trustee. A hearing shall be scheduled before the council within thirty days after the receipt of the appellant's written request. Upon the conclusion of the hearing, the council may disregard the appellant's conviction or take other modifying steps if it is found and determined by the council that mitigating circumstances exist and that the public welfare will be adequately protected. In making such determination, the council shall consider the following factors:

(1) The type, nature and extent of the pointholder's interest, including the involvement, if any, in the operations of the card club;

(2) The nature, time, and seriousness of the offense;

(3) The circumstances surrounding the conviction;

(4) The age of the person at the time of the conviction;

(5) The presence or absence of rehabilitation or efforts at rehabilitation;

(6) Contributing social and environmental conditions;

(7) The record of the proceedings leading to the conviction;

(8) The financial stability of the pointholder, including his personal history, reputation for habits, and traits of character and moral background; and

(9) Such other factors deemed relevant by the council in determining the status of the pointholder.

(d) The decision of the council shall be final and conclusive.

(e) No person required to divest a card club related interest pursuant to an order of divestiture shall transfer the same to his spouse, child, sibling, parent or to his spouse's child, sibling or parent.

(f) Failure to comply with a notice of divestiture shall constitute a misdemeanor punishable by a fine or imprisonment pursuant to this code. Each day of noncompliance shall constitute a separate and complete offense. In addition, the city attorney may invoke appropriate civil remedies available to enforce compliance.

(Ord. No. 804, § 2, 12-13-2022)

If any pointholder is a corporation or similar entity, the licensee shall keep on file with the city manager at all times a current list showing the names and addresses of all officers, directors and shareholders of such corporation or other entity.

(Ord. No. 804, § 2, 12-13-2022)

A subdivision of any interest in a card club license to less than one-quarter point is prohibited. Any such subdivision will not be recognized by the city and shall be grounds for disciplinary action pursuant to the provisions of this chapter.

(Ord. No. 804, § 2, 12-13-2022)

If any pointholder is a corporation or similar entity, the licensee shall keep on file with the city manager at all times a current list showing the names and addresses of all officers, directors and shareholders of such corporation or other entity.

(Ord. No. 804, § 2, 12-13-2022)

A subdivision of any interest in a card club license to less than one-quarter point is prohibited. Any such subdivision will not be recognized by the city and shall be grounds for disciplinary action pursuant to the provisions of this chapter.

(Ord. No. 804, § 2, 12-13-2022)

All architectural plans for the licensed establishment shall be submitted to and approved by the city council prior to implementation. Plans for all exterior signs shall also be submitted and approved by the city council prior to the installation of any such signs.

(Ord. No. 804, § 2, 12-13-2022)

Any games permitted by law in the state may be played in a card club licensed under this chapter with the written approval of the city manager.

(Ord. No. 804, § 2, 12-13-2022)

(a) Gambling Place Prohibited. It is declared unlawful for any person to keep, conduct or maintain within the city, or knowingly to permit any house, room, apartment or place, owned by him or under his charge or control in the city, where any game not mentioned in Sections 330, 330a and 337a of the Penal Code of the State of California, including but not limited to draw poker, lowball poker, high-low split or panguingue, is played, conducted, dealt or carried on with cards, dice or other device, for money, checks, chips, credit or any other representation of value.

(b) Playing or Betting Prohibited. It is declared unlawful for any person to play or bet at or against any game not mentioned in Sections 330, 330a, and 337a or the Penal Code of the State of California, including but not limited to draw poker, lowball poker, high-low split or panguingue, which is played, conducted, dealt or carried on with cards, dice or other device, for money, checks, chips, credit or any other representation of value, at any place within the corporate limits of the city.

(c) Visiting a Gambling Place. It is unlawful for any persons to knowingly visit any location wherein gambling as prohibited by this section is being conducted or maintained.

(d) Exceptions. Subsections (a) and (b) of this section shall not apply to bingo conducted in accordance with the California Penal Code 326.5 et al., a licensed card club or to any game conducted in accordance with this chapter.

(Ord. No. 804, § 2, 12-13-2022)

(a) The conduct of tournaments shall be permitted for those games otherwise permitted by this chapter and for no others provided that the time and any special rules be submitted to the city manager or his/her designee prior to the start of the tournament.

(b) Nothing contained in the permission granted to a licensee to engage in tournament activities shall permit or be construed to permit a violation of any other section or provisions of this chapter.

(c) Collection of the buy-in/seed moneys and registration fees for any tournament shall not be considered as revenue pursuant to Section 5.48.100.

(Ord. No. 804, § 2, 12-13-2022)

The city council reserves the right and power to amend any and all provisions of this chapter in its sound discretion, including, but not by way of limitation, the license fee provisions hereof, so long as any such amendments are not violative of any provisions of state law or the final judgment of a court of competent jurisdiction. The issuance by the city council of any license or licenses hereunder shall not be deemed to be a waiver by the city council of such right and power to thereafter amend this chapter, and the licensee shall be subject to and comply with any such amendments.

(Ord. No. 804, § 2, 12-13-2022)

The city council reserves the right to adopt by resolution additional emergency rules and regulations which shall become effective immediately upon adoption, and the violation of any such emergency rules and regulations shall constitute grounds for the suspension and revocation of any permits or licenses issued pursuant to the provisions of this chapter.

(Ord. No. 804, § 2, 12-13-2022)

(a) Unlawful Locations. It is unlawful for any person to play, or permit the playing, of any game regulated or referred to by the provisions of this chapter at any place within the city, except a place operated under a permit and licensed under a permit held or issued pursuant to the provisions of this chapter.

(b) Unlawful Games. It is unlawful for any person to play in any game at any place licensed pursuant to this chapter which game is not permitted by the provisions of this chapter, or in any game played in violation of this chapter.

(c) Operation of Card Rooms. It is unlawful for any operator of a card room permitted under this chapter or for any owner, principal employee or agent of a card room permitted under this chapter:

(1) To allow any person to wager any sum in excess of the value of the chips or other playing tokens which such person has purchased from the card room;

(2) To allow to be wagered by any player any amount in excess of the posted wagering limit for the table at which the player is then playing;

(3) To permit more than ten persons to be seated or to play at any table at one time; except in the games where players banking is allowed or as permitted by Section 5.48.220, Rule 15;

(4) To derive revenues from games being played in the card room otherwise than from collection of a specified periodic fee from its patrons for the use of the card room facilities for incremental periods of time or as permitted by Section 5.48.185.

(Ord. No. 804, § 2, 12-13-2022)

It is unlawful and a misdemeanor for any person to violate any of the provisions of this chapter.

(Ord. No. 804, § 2, 12-13-2022)