Compton Municipal Code § 9-10 Card Clubs

[1]

Editor's Note: Prior ordinances codified herein include portions of Ordinance Nos. 856 and 1368.

[Ord. #1877, § 1; Ord. #1962, § 1; Ord. #2050, § 1]

As used in this section, the words and phrases hereinafter set forth shall have the following meanings ascribed to them unless the context clearly requires to the contrary:

a. APPLICANT – Shall mean any person or entity who has applied for a license to operate a card club in the City.

b. CARD CLUB – Shall mean a business or enterprise licensed under the provisions of this section for the playing of the games described in Subsection 9-10.1f.

c. CARD GAME BUSINESS – Shall mean the conduct of the games described in Subsection 9-10.1f and shall not include any related business as described in Subsection 9-10.1j.

d. CITY – Shall mean the City of Compton and its representatives, including, but not limited to:

1. Chief of Police. Chief of Police shall mean and include the designated representative of the Los Angeles County Sheriff's Department or other local authorized law enforcement agency, as applicable.

2. City Manager. City Manager shall mean the City Manager of the City of Compton or any designee, assistant or agent.

e. COUNCIL – Shall mean the City Council of the City of Compton.

f. GAME OR GAMES – Shall mean all games regulated by § 330 of the California Penal Code (whether or not cards are used) which are not prohibited by state law.

g. LICENSE – Shall mean a license for the operation of a card club.

h. LICENSEE – Shall mean the person or entity to whom a license has been issued by the operation of a card club pursuant to this section and/or in matters of operation, administration, organization, record-keeping, monitoring or enforcement, all designees, agents and employees.

i. OWNER – Shall mean every person, firm, association, corporation, partnership, or other entity having any interest, whether legal, equitable or of any other kind or character, in any card club or license.

j. RELATED BUSINESS – Shall mean business activities occurring at a card club other than the playing of the games, such as entertainment, dancing, the sale of food, beverages (including alcoholic beverages for consumption on the premises), sundries and other items and the provision of services such as barber shop services.

[Ord. #1877, § 1; Ord. #2019, § 3; Ord. #2122, § 1]

a. It shall be unlawful for any person or entity to commence or conduct, or purport to commence or conduct, within the City any business, activity, enterprise, or undertaking used for the playing of any games for which a fee, commission, or compensation is directly or indirectly charged to or accepted or received from players or participants in any such playing of games until such person or entity has first obtained a license in compliance with the provisions of this section.

b. The location of the card club license shall be restricted to commercial or industrial zones and shall be determined by the City Council by resolution thereof.

[Ord. #1877, § 1]

a. Filing of Application. Any person or entity desiring to conduct a card club shall file with the City Clerk a written application for a license. The application shall be executed under penalty of perjury and shall contain, in addition to all other information that the City Clerk may require, the following information and material:

1. An official receipt from the City Treasurer, indicating payment in full of the application fee and license fee deposit as required by Subsection 9-10.4;

2. The date of the application;

3. The true name of the applicant;

4. The status of the applicant as being an individual (or two or more individuals), firm, association, corporation, partnership, joint venture or other entity;

5. The residence and business address of each individual applicant;

6. The name, residence, and business address of each of the partners, shareholders, and principal officers and directors of any non-individual applicant;

7. The business and employment history of the applicant(s) and each proposed manager of the card club, including a list of all places of previous residence;

8. The proposed location for the card club;

9. A list of the games to be played (which list shall be updated whenever games are added or eliminated) and a statement that the games to be played shall be the games described in Subsection 9-10.1f only, and that no other games are proposed;

10. The number of tables or other units to be used in the card club;

11. A description of any related businesses proposed to be conducted at the same location (which list shall be updated whenever related businesses are added or eliminated);

12. A description of the building in which the card club is to be located;

13. A development site plan and floor plan conforming to submittal standards maintained by the City Planning Department;

14. In the event the proposed premises are partly or wholly owned by persons or entities other than the applicant, the names and addresses of such other persons or entities and complete information pertaining to the nature and percentage of ownership;

15. A one-year detailed cash flow projection, a pro forma financial statement, a statement of pre-opening cash, a financing plan and copies of all loan agreements of the applicant;

16. A full and complete financial statement and most recent annual income tax return of the applicant, and a full and complete financial and invested capital statement of each person who is a limited partner, general partner, officer or director of the applicant;

17. A statement that the applicant understands and agrees that the application shall be considered by the Council only after full investigations and reports have been made by all applicable City staff;

18. A complete listing of all criminal arrests and convictions of the applicant and each partner, shareholder, officer and director of the applicant, if any, not including traffic offenses, with explanations therefor;

19. A statement that the applicant understands and agrees that any business or activity conducted or operated under any license 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 and regulations in such place of business, or in connection therewith, shall render any license subject to immediate suspension or revocation;

20. A statement that the applicant has read the provisions of this section and particularly the provisions of this subsection, understands the same and agrees to abide by all rules and regulations contained in this section.

b. Investigations and Reports. Whenever an application for a license has been filed with the City Clerk, the City Clerk shall determine whether such application is complete and whether licenses are available pursuant to this section. If the application is determined to be complete, there are licenses available and no other application is then being processed, the City Clerk shall immediately refer such application or a copy thereof to the City Manager's Office, where appropriate City staff shall promptly and diligently make an investigation as follows:

1. A full and complete investigation as to the identity, character and background of the applicant and the applicant's partners, officers, directors, management, and staff;

2. A full and complete investigation of the building and location where the applicant proposes to conduct the card club business;

3. A full and complete evaluation of the security and law enforcement requirements of the premises;

4. A comprehensive evaluation of the applicant's financial ability to successfully comply with the financial requirements of the proposed card club;

5. A comprehensive evaluation of all public health, welfare and safety matters concerning the proposed card club.

c. Burden of Proof. The burden of proving his qualifications to receive a license is at all times on the applicant. By filing the application, the applicant accepts any risk of adverse public notice, embarrassment, criticism, or other action or financial loss which may result from action with respect to the application and expressly waives any claim for damages as a result thereof.

d. Obligation to Provide Information. An applicant may claim any privilege afforded by the Constitution of the United States in refusing to answer questions by the Council. However, a claim of privilege with respect to an application shall constitute sufficient grounds for denial of the application.

e. Identity of Owners. The applicant shall also file with the City Clerk a list of the names and addresses of all of the owners. The Chief of Police shall determine whether or not an investigation of any owner should be made by a teletype search of the records of the State Criminal Investigation and Identification Unit in Sacramento, California, or otherwise.

f. Statements Confidential. Personal financial information and home telephone numbers and addresses required to be submitted as part of an application pursuant to this section shall be confidential and not available for public inspection, except as may be required by law.

[Ord. #1877, § 1]

The application fee and license fee are for both regulation and revenue purposes and are levied pursuant to the authority of applicable laws. An application for a license shall be accompanied by fees and deposits, payable to the City in cash or a cashier's check, as follows:

a. An application fee of $25, which shall be retained by the City to pay the costs of the investigation of the applicant and the building; and

b. A license fee deposit of $12,500. In the event the license is issued, this deposit shall be applied as a credit toward the license fee described in Subsection 9-10.11 hereof. In the event the license is not issued, this deposit shall be returned to the applicant, without interest.

[Ord. #1877, § 1]

Concurrently with filing the application, the applicant and each owner shall be fingerprinted and photographed by the Chief of Police.

[Ord. #1877, § 1]

If the Council determines that a landlord or financier, by reason of the extent of his holdings or his inherent control financially, cannot, in fact, be separated from the card game business and that, as a practical matter, a single entity exists regardless of the form of organization, it may require that the landlord or financier submit a full application.

[Ord. #1877, § 1]

The Council shall not be required to consider any application for a license until such time as the City staff reports have been filed with the Council. In the event that any of such reports are not filed within the time provided in Subsection 9-10.3b herein, the Council in its sole discretion may proceed further without such reports or may extend the time in which such reports may be filed but in no event for more than an additional 90 days.

[Ord. #1877, § 1]

a. Within 30 days after all staff reports have been filed, the Council shall schedule a public hearing on the application.

b. Not less than 10 days prior to the hearing date, the City Clerk shall mail notice of the hearing to the applicant and all owners of property within a 1,000-foot radius of the exterior boundaries of the proposed card club site, using for that purpose the last known name and address of such owners as shown upon the assessment roll of the County of Los Angeles, and shall cause notice of the hearing to be published once in a newspaper of general circulation in the City. Such notices shall contain a description of the proposed card club site, the nature of the license applied for and the time and place of the public hearing. The failure of any owner to receive any notice duly mailed shall not affect, in any way, the validity of any of the proceedings undertaken by the council pursuant to this section.

[Ord. #1877, § 1]

The Council may, in its discretion, deny any application if the council finds, following the hearing, that the applicant has not complied with any requirement of this section or for any of the following grounds or reasons:

a. Indictment or conviction of any crime of violence, any crime involving fraud, gambling, thievery or bunco, moral turpitude, or evasion of taxes, or any other offense indicating a lack of business integrity or business honesty, whether committed in the State of California, or elsewhere, whether denominated a felony or a misdemeanor, and notwithstanding the passage of time since the conviction;

b. Failure to satisfy the Council as to the applicant's good character, honesty or integrity, either through the applicant's actions or through association with others;

c. Failure to satisfy the Council as to the source and adequacy of funds to be invested in the proposed venture;

d. Prior unsuitable operation as a card club licensee in another jurisdiction without regard to whether disciplinary action was taken at that time or whether the acts were sufficient to justify revocation of a license;

e. Making or causing to be made any statement in an application or document or orally in connection with an application, which statement was at the time and in the light of the circumstances under which it was made false or misleading;

f. Lack of a satisfactory record of business competence and business ethics and integrity;

g. Failure of any person named in an application when summoned by the Council to appear and testify before it or its agent at the designated time and place;

h. Deficient security and law enforcement accommodations and facilities.

[Ord. #1877, § 1]

In approving an application for a license, the Council may impose conditions upon such license in addition to the requirements contained herein. The City Clerk shall provide to the applicant a copy of the City's acceptance form, which shall state that the applicant is aware of and will abide by all conditions imposed by the Council. Upon receipt of the acceptance form signed by the applicant, the City License Collector shall thereupon issue the license, which shall be for a term of 25 years from the date on which it was issued, unless revoked by the Council pursuant to the provisions hereof or surrendered by the licensee. In the event of the surrender, suspension, revocation or expiration of the license, no portion of any license fee or deposit shall be refunded. Not more than one year nor less than six months prior to the expiration of a license, the licensee may file with the City Clerk an application for renewal of the license.

[Ord. #1877, § 1]

a. On the date the card club opens for business, the licensee shall pay to the City a license fee in the sum of $12,500 for the calendar quarter in which operations commence. Such initial fee shall be credited from the license fee deposit as described in Subsection 9-10.4b. No proration or refund shall be made of the initial fee under any circumstances.

b. After the calendar quarter in which operations commence, a license fee in the sum of $12,500 shall be paid quarterly in advance on January 1, April 1, July 1, and October 1 of each calendar year, continuing so long as the card club remains licensed to do business in the City and subject to such changes in amount or duration as may later be imposed by the Council.

c. Fees paid pursuant to this section become the absolute property of the City and shall not be refunded to the licensee except as specifically provided herein, nor shall such fees be prorated in any manner whatsoever in the event of cessation of business by the licensee, whether voluntary or involuntary.

[Ord. #1877, § 1; Ord. #2045, § 1]

a. In addition to the quarterly license fee prescribed by Subsection 9-10.11 of the Compton Municipal Code, each licensee shall pay to the City a monthly fee, which shall be a percentage of the total monthly gross revenue of the card game business using the table contained herein.

This fee shall be the greater of (i) the amount required by said table or (ii) $104,166.66 per month ("Minimum Gross Revenue License Fee"), except as provided in Paragraph 1(a) and 1(b) below. This fee shall be paid to the Office of the City Treasurer by 5:00 p.m. on the 10th day of each month. A penalty of 10% of the amount owed shall be charged for submittal after the 10th day of the month, excepting those months affected by the following sentence. For those months where the 10th day of the month falls on a Friday, Saturday, Sunday or legally recognized holiday said months' fee shall be due the next business day by 5:00 p.m.:

1. In those instances where a licensed card club operator has made an advance on future monthly gross revenue license fees, the advance payment shall be refunded to the licensee as follows:

(a) For the first six months after the card club opens, the gross revenue license fee required by Subsection 9-10.12 shall be reduced by 100% of gross revenue license fees in excess of $166,666.66 as a credit toward repayment of the advance payment.

(b) Any remaining balance existing on January 1, 2001 in the licensee's advance payment of gross revenue license fees account shall be credited in an amount equal to 100% of the monthly gross license fees as determined by utilizing the gaming tax table appearing above, with respect to satisfaction of the advance payment until such advance payment is fully earned by the City.

b. Upon review of any audit or other yearend report required under the audit plan described in Subsection 9-10.13, the City Manager shall cause to be conducted an evaluation of the gross revenue license fee set forth herein. The Council may by resolution adjust the gross revenue license fee, provided that such fee shall not exceed the highest such fee paid by a licensed card club located within a 50 mile radius of the card club.

[Ord. #1877, § 1; Ord. #1962, § 2]

a. Each licensee shall make and maintain complete, accurate and legible records of all transactions pertaining to revenue subject to taxes and fees imposed by this section. Such records shall include but not be limited to a general ledger maintained in accordance with generally accepted accounting principles, together with appropriate supporting records such as cash receipts and disbursements logs and journals, payroll journals, canceled checks and original paid invoices. Such general ledger shall be maintained in a fashion suitable for producing financial statements in accordance with generally accepted accounting principles. Such records shall be maintained for at least three fiscal years and shall be maintained on the premises of the card club and made available for examination and copying by the City or its agents, except there is no obligation to retain bar and restaurant patron tickets.

b. In the event information requested of a licensee can be furnished only by someone other than the licensee (such as a landlord, supplier or an accountant), the licensee shall make every bona fide effort to obtain such information as requested and furnish the same or have it furnished directly by the person who has the information available.

c. In addition to such information and data required by this regulation, each licensee shall maintain the following:

1. If a partnership or corporation:

(a) A schedule showing the dates of capital contributions, loans or advances, the names and addresses of the contributors and percentage of ownership interest held of record by each.

(b) A record of the withdrawals or distributions of funds or assets, to partners or stockholders.

(c) A record of salaries paid to each partner, stockholder and key management employees.

(d) A copy of the partnership or corporate agreement, certificate of limited partnership and accurate corporate stock transfer book, if applicable.

(e) Copies of any and all public filings required by the Securities Exchange Commission.

2. If a sole proprietorship:

(a) A schedule showing the name and address of the proprietor and the amount and date of the original investment.

(b) A record of subsequent additions thereto and withdrawals therefor.

3. The records required to be kept by this regulation shall be in ink or any other permanent form of recordation.

d. The licensee shall allow the City Manager unrestricted access to all books, records and facilities pertaining to the card club, including, but not limited to, cash-counting rooms. Any information obtained pursuant to this section or any statement filed by the licensee shall be deemed confidential in character and shall not be subject to public inspection except in connection with the enforcement of the provisions of this section. It shall be the duty of the City Manager to preserve and keep such statements so that the contents thereof shall not become known except to the persons charged by law with the administration of the provisions of this section or pursuant to the order of any court of competent jurisdiction.

e. Each licensee shall file with the City on or before the 15th day of each calendar month a statement, under oath, showing the true and correct amount of gross revenue derived from operation of the card game business during the preceding month. Such statement shall be accompanied by the payment of the correct amount of gross revenue license fee due and owed in accordance with the provisions of the license approved by the Council. A certification, signed by the licensee, shall be attached to the statement, declaring under penalty of perjury that it is true and correct. The licensee shall also provide the City with a copy, to be updated annually, of its procedures for administrative control, record-keeping and internal accounting.

f. At the end of each fiscal year, the licensee shall employ, at its expense, a nationally recognized firm of certified public accountants to conduct an audit of the licensee's financial records in accordance with generally accepted auditing standards. Such audit shall conclude with the expression of the auditor's opinion on the financial statements compliance with generally accepted auditing principles. The auditor shall express a separate opinion on the computation of the licensee's gross revenues and related permit fees paid to the City for the period then ended.

g. Such audit report shall be filed with the City Manager no later than 120 days after the fiscal year-end. In the event that such evaluation discloses material weaknesses or reportable conditions in the licensee's system of internal accounting and administrative controls, the licensee shall submit a program to the City Manager within 30 days of such evaluation outlining the licensee's program to correct such weaknesses or conditions. All reports or evaluations submitted hereunder shall be confidential and shall not be available for public inspection.

h. Any failure or refusal of the licensee to file any statement within the time required, to pay any license fee when due, or to permit inspection of the books, records, accounts and reports of such licensee shall constitute full and sufficient grounds for the revocation or suspension of the license of that licensee in the sole discretion of the Council.

[1]

Editor's Note: Former Subsection 9-10.14, Number of Licenses Limited, previously codified herein and containing portions of Ordinance No. 1877 was repealed in its entirety by Ordinance No. 1986.

[Ord. #1877, § 1]

No license for a card club or any interest therein shall be transferred or assigned in whole or in part except in accordance with this section. Any proposed transfer or assignment of any license shall be considered for all purposes as a new application for a license, and all the provisions of this section applicable to new and original applications shall apply.

[Ord. #1877, § 1]

In the event that the card club business is located on property not wholly owned by the licensee, the licensee shall notify the City Manager of any change in the ownership of any portion of the premises at least 30 days before such change, or, if the licensee is not a party to the transaction effecting the change of ownership, immediately upon acquiring knowledge of such change of ownership.

[Ord. #1877, § 1]

No transfer, assignment or sale of any ownership interest in any card club, regardless of the manner in which title is held, shall be made without prior written notification to the City Manager, which notification shall be accompanied by a copy of the application for initial registration filed by the transferee with the California Department of Justice. The City Manager shall determine whether or not such transfer shall be brought to the attention of the Council and shall so notify the licensee within 30 days after receipt of the notification of the proposed transfer. In the event that the transfer represents more than 5% of the total of all interests in the card club, the City Manager shall notify the Council. In the event of notice to the Council, the transfer shall not become effective until the Council has conducted such further investigations or hearings as it shall determine. If the Council conducts a hearing on the proposed transfer, its approval or disapproval shall be based upon the same standards as an application for a license.

[Ord. #1877, § 1]

a. Any owner who is convicted of a misdemeanor involving moral turpitude or a felony shall divest himself of such ownership interest within 120 days after the service of a notice of divestiture by the City. Upon receipt of a notice of divestiture, the recipient may request in writing a hearing before the Council to appeal the notice and request a waiver of the Council to appeal the notice and request a waiver of the divestiture requirement. A hearing shall be scheduled before the Council within 30 days after the receipt of such request. Upon the conclusion of the hearing, the Council may disregard the conviction or take other action if it is determined by the Council that mitigating circumstances exist and that the public interest will be adequately protected.

b. The decision of the Council shall be final and conclusive. Failure to comply with the provisions of this section shall constitute a misdemeanor, punishable by a fine or imprisonment. Each day of noncompliance shall constitute a separate and complete offense. In addition, the City Attorney may invoke any appropriate civil remedies available to enforce compliance.

c. No person required pursuant hereto to divest his or her interest in a card club may transfer the same to his or her spouse, children, siblings, or parents or to his or her spouse's children, siblings, or parents.

[Ord. #1877, § 1]

All licenses shall be subject to:

a. Suspension by the Chief of Police immediately whenever the Chief of Police is convinced that there has been a breach, violation, failure of compliance, or disregard of any of the provisions of this section or any of the rules or regulations established by the Council with reference to the card game business, activities authorized or licensed by the provisions of this section, the premises wherein the card club is located or the manner in which such card game business or activities are being conducted. Such suspension by the Chief of Police shall not exceed 14 days and shall terminate at the end of such period unless the Council has ordered the suspension continued.

b. The Council may suspend any license until the Council can hold a public hearing to consider revocation of the license, but not longer than seven days. In no event shall any suspension have a duration in excess of 21 days unless such suspended license has been duly revoked by the Council following a revocation hearing as provided in Subsection 9-10.21 of this section.

[Ord. #1877, § 1]

A license may be suspended by the Council following a revocation hearing as provided in Subsection 9-10.21 for such period as the Council shall determine in the event a criminal complaint or grand jury indictment has been issued which involves moral turpitude or dishonesty. The Council may provide in the resolution of suspension that the license shall be revoked in the event that a conviction on such charges is obtained or reinstated in the event that the charges are dismissed.

[Ord. #1877, § 1]

Upon receiving information of the presence of possible grounds for revocation, the Council shall set a public hearing and give the licensee at least 10 days' written notice thereof, together with a summary of the grounds alleged. Any suspension of the license by the Chief of Police shall require the setting of a public hearing. At the public hearing, the licensee shall be accorded the right to question and cross-examine all witnesses and to testify and submit any evidence. The licensee may require attendance of witnesses by requesting the issuance of subpoenas by the Council at least 24 hours prior to the hearing. The Council may impose conditions or limitations upon any license in lieu of revocation following a hearing as provided in Subsection 9-10.21. Any action of the Council following the hearing shall be final. In the event that the matter constituting possible grounds for revocation has been corrected, the Council shall not be required to set the matter for public hearing or may cancel a hearing if previously scheduled.

[Ord. #1877, § 1]

Any license issued pursuant to the provisions of this section may be revoked by the Council on the basis of any of the following:

a. Failure of the licensee to comply fully with the provisions of this section or any requirement or condition imposed by the Council or by any other applicable federal, state and local law and regulation;

b. Filing of any document by the licensee untruthfully or which in any degree misrepresented any matter by failure fully to provide the requested information;

c. Obtaining the license by wrongful or fraudulent means;

d. Use of the license for a different purpose than that for which it was issued or in violation of this section;

e. Conviction of any licensee for an offense involving moral turpitude or dishonesty;

f. Creation of a public nuisance or police problem;

g. Permitting persons who are under the influence of any intoxicating liquor or drug to participate in games;

h. Failure to conduct advertising and public relations activities in accordance with decency, dignity, good taste, honesty and inoffensiveness;

i. Association with others where the repute of the City is liable to be damaged;

j. Employing in any card club any person whom the Council or any court has found guilty of cheating or using any improper device in connection with any game, whether as a licensee or player at a licensed game, as well as any person whose conduct of a licensed game as an employee of a licensee resulted in revocation or suspension of the license of such licensee;

k. Failure to conduct the card club in accordance with proper standards of custom, decorum and decency;

l. Permitting any type of conduct in the card club which reflects or tends to reflect on the repute of the City and acts as a detriment to card club activity in the City.

[Ord. #1877, § 1; Ord. #1962, § 3]

a. A licensee may exclude or eject from the premises of the card club any person who is reasonably suspected of or who is engaged in or has been convicted of bookmaking, loansharking, sale of controlled substances, illegal gambling activities, cheating or prostitution or whose presence in or about such card club would be inimical to the interest of legitimate gaming. The licensee must show, by direct or circumstantial evidence, knowledge that such a violation has occurred or a reasonable belief that such a violation is about to occur. Pursuant to any investigation of a violation of this section, the licensee may detain any person at the security office of the card club. The licensee may temporarily exclude or eject any person during the pendency of an investigation by the licensee regarding a violation of this section, provided, however, that said investigation and temporary exclusion shall run no longer than 90 days from the date of exclusion.

b. As used in this subsection, the following items, which are in no way meant to be exhaustive, shall be deemed to be inimical to the interests of legitimate gaming:

1. Violation of any card club rule.

2. Violations of any law or ordinance.

3. Behavior that would indicate that the person is under the influence of a drug, narcotic or alcohol.

4. Loud, boisterous or other disruptive behavior.

5. Swearing or using profane language.

6. Failure to abide by instructions or orders of licensee's employees, agents or management personnel, issued pursuant to state or City laws or rules of the card club.

7. Loitering.

8. Panhandling.

c. No person shall be excluded or ejected on the grounds of race, color, creed or sex.

[Ord. #1877, § 1]

In the event of the suspension or revocation of the license, no part of any license fee paid by the licensee shall be refunded.

[Ord. #1877, § 1]

In the event of the revocation of a license, no new license shall be issued to such licensee except upon application made pursuant to Subsection 9-10.3 as if the licensee were a new applicant.

[Ord. #1877, § 1; Ord. #1962, § 4; Ord. #2019, § 4; Ord. #2115, § 1]

a. It shall be unlawful for any licensee to employ any person or to allow any person to do business on the premises who is not the holder of a valid registration card or work permit issued by the Chief of Police. No registration card or work permit shall be issued without such person having first been fingerprinted for a criminal history background check by the Department of Justice and photographed by the City of Compton Police Department, and the submission of a certified copy of the results of a drug test conducted within the previous 72 hours by a licensed laboratory approved by the Chief of Police.

In recognition of the delays, which may be encountered in obtaining all information on each applicant, the Chief of Police is hereby authorized to issue temporary registration cards or work permits, which shall be issued under the terms and conditions to be determined by the Chief of Police.

b. Every licensee shall, before employing any person, ascertain that such person holds a valid registration card or work permit issued in accordance with this regulation, and shall cause his or her employment records to reflect such fact.

c. Applications for registration cards or work permits shall be lodged with the City of Compton Police Department. Upon being provided with the required information concerning the employment of any person, the Chief of Police shall investigate the applicant. The Chief of Police may refuse to issue or revoke a registration card or work permit for any of the following grounds or reasons, without being limited thereto, or for any other reason consistent with state or federal law:

1. Indictment or conviction for any crime punishable as a felony.

2. Conviction for any misdemeanor involving violence, dishonesty or moral turpitude.

3. Conviction or other form of discipline for any act involving fraud, gambling, loan sharking, bookmaking, money laundering, embezzlement, thievery, bunco, moral turpitude, evasion of taxes, or otherwise indicating a lack of business integrity or honesty, whether committed in the State of California, or elsewhere, whether denominated a felony or a misdemeanor, and notwithstanding the passage of time since the conviction.

4. Association of the applicant with criminal profiteering activity or organized crime as defined by Section 186.2 of the California Penal Code.

5. Identification by any law enforcement agency, legislative body or crime commission as a member of, or an associate of, organized criminal elements.

6. Making, or causing to be made, any statement in an application or document or orally in connection with the application, which statement was, at the time and in light of the circumstances under which it was made, knowingly false or misleading.

d. Following issuance of the registration card, whether permanent or temporary, the person issued the card shall be required to prominently display the card on the outermost garment at all times while working on the premises.

e. No registration card or work permit shall be issued to any applicant who has been denied a work permit by the State of California, and the duly constituted state regulatory authority shall be permitted to object to registration of any applicant or employee, in which event the registration card or work permit shall be denied or revoked.

f. It shall be the responsibility and duty of the Chief of Police to establish the necessary procedures to implement and administer the provisions of this section. The information received by the Chief of Police shall be treated as confidential and shall be accessible only to the City Council, the City Manager, the Chief of Police, and the licensee.

g. If an application for a registration card or work permit is denied, suspended or revoked, the applicant may appeal such denial, suspension or revocation by written notice to the City Manager or a designee.

1. The City Manager or designee shall cause a hearing to be held before a hearing officer within 30 days.

2. The hearing officers shall be unrelated to the City or any of its officers or employees and shall be an attorney, qualified arbitrator or retired judge.

3. The hearing officer shall schedule and conduct all hearings in accordance with the rules and regulations established by the City Manager or designee.

4. The hearing officers shall approve, conditionally approve or deny the appeal, in writing, within 10 days of the conclusion of the hearing.

5. The decision of the hearing officer shall be final.

6. The entire cost of the appeal, including the hearing officer's fee and an administrative fee of $500 shall be paid by the applicant.

[Ord. #1877, § 1; Ord. #1962, § 5]

The City and its authorized governmental officials shall have full authority to inspect and monitor all card club and accessory premises, operations and facilities to prevent fraudulent acts and to verify compliance with all provisions of this section and state and federal law.

a. Access and Visibility of Premises. It shall be the responsibility of the licensee to maintain and enforce the following regulations:

1. All "card rooms" shall be accessible and visible to all patrons and shall have no less than eight tables per room. The playing of all games shall be confined entirely to one floor which shall be designated as the "playing floor," and no playing of any game shall be permitted at any location other than a designated card room approved by the Chief of Police on the card club premises. No card game shall be permitted in any restaurant or lounge.

2. No person under the age of 21 years shall be permitted to play any game authorized by this section.

3. No person under the age of 21 years shall be permitted inside a card room or card playing area.

4. No person, other than players and card club employees displaying valid photo registration cards, shall be permitted in any card room or card playing area. Spectators and those waiting to play shall be excluded from all card rooms and card playing areas in a manner that clearly defines, controls and delineates one area from the other and that shall be approved by the Chief of Police.

5. No individual player or other unauthorized person shall enter any secure areas within the card club site.

6. Each card room shall have facilities that will permit authorized governmental officials to observe all portions thereof on a twenty-four-hour basis, and the entire premises, including all secure areas, shall be open for inspection during all hours by the City Manager or Chief of Police without a search warrant.

b. Fraudulent Acts. All acts which could deceive, mislead or defraud a member of the public shall be prohibited. It shall be the responsibility of the licensee to take reasonable steps to prevent fraudulent acts and to cooperate fully with the Chief of Police and other local, state and federal authorities to prevent such activities and to enforce the following regulations:

1. Each and every game conducted pursuant to the provisions of this section shall be operated in full conformity with, and subject to, all the provisions of the laws of the United States of America, State of California and City of Compton. Unlawful gambling shall not be permitted anywhere on the card club premises.

2. Players financed in whole or in part by the licensee or the house or any agent thereof shall be required to wear an insignia or identifying badge.

3. It shall be unlawful for any person to alter or misrepresent the outcome of a game or other event on which wagers have been made after the outcome has been determined but before it is revealed to the players.

4. It shall be unlawful to place, increase or decrease a bet or to determine the course of play after acquiring knowledge not available to all players of the outcome of the game or any event that affects the outcome of the game or which is the subject of the bet or to aid any in acquiring such knowledge for the purpose of placing, increasing or decreasing a bet or determining the course of play contingent upon that event or outcome.

5. The following actions, activities, words and phrases refers to fraudulent acts within the meaning of this section. They shall have the following meanings ascribed to them unless the context clearly indicates the contrary:

(a) Blind cut or false cut shall mean the maneuver which appears to cut the deck, but does not in fact do so.

(b) Blind shuffle shall mean to false shuffle or to give the deceptive impression of intermixing playing cards, while actually retaining the same sequence of all or a group of cards.

(c) Bottom dealing shall mean to deal a card from the bottom of the deck; includes "Greek dealing".

(d) Burn shall mean a discard in accordance with the rules of the game made before the draw when playing draw poker.

(e) Capping the deck shall mean to place cards onto the top of the deck.

(f) Cheating shall mean, in addition to those acts defined herein, any and all undefined acts of misrepresentation, dishonesty, false pretense, use of device or manipulation of card done with the purpose of defrauding or gaining an unfair advantage over another player whether or not an actual advantage is gained.

(g) Cooler shall mean a deck of cards secretly prearranged in a known sequence or marked to be substituted for the deck in play.

(h) Daubing shall mean to mark cards by applying a faintly visible substance to the back of the cards.

(i) Hand mucking shall mean the surreptitious switching of cards from those that are dealt to a player.

(j) Hold-out shall mean a mechanical device used for the purpose of surreptitiously switching or retaining cards.

(k) Hopping the cut shall mean to surreptitiously nullify the cutting of the deck.

(l) Middle dealing shall mean to deal a card from the center of the deck.

(m) Past posting shall mean to place a bet after acquiring knowledge of the outcome of the game or event with the intent to claim or collect money or anything of value from winning said bet.

(n) Pinching shall mean to reduce the amount wagered by removing the bet or a portion thereof after action on the current round of play has commenced.

(o) Playing partners shall mean any scheme or action in which two or more players act in concert to communicate information or to otherwise act for the purpose of defrauding or gaining an unfair advantage over another player, whether or not an actual advantage is gained.

(p) Pressing shall mean to add to or increase a bet after action on the current round of play has commenced.

(q) Punching shall mean to mark the back of the cards by creating a dimple or indentation thereon.

(r) Roughing fluid shall mean a liquid chemical applied to the back of the cards for the purpose of marking them by roughening the surface.

(s) Run-up or stacking or stocking shall mean to shuffle the cards in such a fashion as to surreptitiously arrange the sequence to known cards.

(t) Sanding shall mean to mark cards by applying an abrasive substance to the cards.

(u) Second dealing or seconds shall mean to deal a card which is second from the top of the deck.

(v) Shiner shall mean a mirror or other reflecting device used for the purpose of enabling a player to see cards which the player is not entitled to see under the rules of the game being played.

(w) Slick sleeve or mohair sleeve shall mean a long sleeve on a clothing garment to assist in holding out a playing card or cards:

(x) Slug shall mean a group of cards.

(y) Transmitter shall mean the electronic or radio device used for the purpose of transmitting signals or information to another player who receives such signals or information by use of a "receiver".

(z) White flash shall mean a form of daubing whereby a chemical is used to create a "white on white" marking on the back of the cards.

6. No cheating or fraudulent activity shall be permitted or tolerated by the licensee. All provable cases of cheating shall be reported to the appropriate enforcement authorities and the licensee shall cooperate fully in the prosecution of any individual who is criminally charged with cheating. Cheating devices shall be confiscated and shall not be returned to the individual using or bringing such devices onto the premises whether or not the offender is arrested or prosecuted. Permitting or tolerating cheating shall be grounds for immediate suspension or revocation of the license or imposition of additional conditions.

7. It shall be unlawful for any individual, as a player or dealer, to deal, draw, distribute or burn any playing card other than the top card of the deck. The "top card" is defined as the uppermost face down card of a face down deck. It shall be unlawful to deal or cause to be dealt or to participate in a second, middle, bottom or Greek deal.

8. It shall be unlawful for any individual to shuffle or cause to be shuffled any playing cards that are to be used or are being used in a game other than in a random manner. It shall be unlawful to predetermine or to prearrange the sequence of playing cards by value or suit or to retain or hold back a card or cards either individually or as a group or slug as an effort to circumvent a random mixing of the playing cards. Any blind shuffle, run-up, stacking or stocking of the deck to gain an unfair advantage in play, whether or not an advantage is gained, is unlawful.

9. It shall be unlawful for any individual other than the licensee to bring cards into a card club. It shall be unlawful for any individual other than the licensee or a patron while playing cards to have playing cards in his or her possession while in a card club. It shall be unlawful for any individual other than on-duty employees with valid registration cards to have playing cards in his or her possession outside of a designated card playing area. Nothing herein shall apply to punched or otherwise destroyed or mutilated cards or any souvenir or designer decks that could not be misconstrued as playing cards used on the playing floor.

10. It shall be unlawful for any individual, player or dealer to palm, hold out or conceal any card or cards during a game whether by sleight of hand, mechanical apparatus or clothing such as a slick sleeve. It shall also be unlawful for any individual, player or dealer to switch, exchange or cause to be exchanged any playing card or cards as a means of deception. The deception practices known as hand mucking, capping the deck, introducing additional cards into a game or switching the deck with a cooler are unlawful.

11. It shall be unlawful for any individual to use any technique in a game designed to accomplish a blind or false cut, use a fraudulent technique to nullify a cut once performed by a player or influence or indicate to another individual to cut the deck at a specific location.

12. It shall be unlawful for any individual, player or dealer to deliberately mark or alter any card or cards when there is a likelihood that such cards will be used in a game or when such cards are in play. It shall be unlawful to knowingly use any altered or marked cards in a game. "Marking and altering" as used herein includes sanding, daubing, white flash, white on white, punching, adding to, removing from or blocking out the existing design whether on the face, backside or edge of any card or cards. Any deliberate crimping, warping, bending, cutting, trimming, shaving or alteration by any means that would or could cause an advantage for any player over other players, whether or not such advantage is gained, is unlawful.

13. It shall be unlawful for any individual to use any mechanical or electrical apparatus or other device so as to gain any advantage or to gain information that would enable a player or dealer to deceive others. Such devices include, but are not limited to, hold-outs, table bugs, shiners, transmitters, receivers, punches, chemical solutions, shading, roughing fluids, inks or dyes.

14. It shall be unlawful to claim, collect or take or attempt to claim, collect or take money or anything of value in or from a gambling game with intent to defraud or to claim, collect or take an amount greater than the amount won.

15. It shall be unlawful for any individual to play partners or to knowingly aid or abet another in any cheating action prohibited by this section.

16. It shall be unlawful for any individual or group to use any of the cheating techniques prohibited by this section or to cheat in any manner whatever, whether or not such techniques are specifically defined or are successful. The licensee shall immediately notify the Chief of Police upon the detection of any individual suspected of cheating.

17. It shall be the responsibility of the licensee to fully cooperate with security personnel, whether it is provided by a government policing agency, a City contracted or administered service or is licensee assigned, in the detection, apprehension and identification of those individuals involved in cheating or fraudulent practices. Security shall retain and deliver to the Chief of Police as evidence in arrests or detention all playing cards and implements suspected of involvement in cheating.

18. The Chief of Police, upon being notified by card club security that an individual is being detained for cheating at play, shall respond to the security office. The Chief of Police shall ascertain the identity of those involved in the cheating and the circumstances involved and decide what police action, if any, is deemed appropriate. The Chief of Police shall assist as legally required in any citizen's arrest.

19. The licensee shall cause these rules to be reproduced and available in the licensed premises.

[Ord. #1877, § 1]

Seat rental rates shall be determined by the licensee. Such rates and the effective dates thereof shall be posted in full and unobstructed view and in appropriate locations within the card room.

[Ord. #1877, § 1; Ord. #1962, § 6; Ord. #1967, § 1; Ord. #2019, § 5]

The Council may, from time to time, enact rules and regulations governing the operation of card clubs and the activity conducted in card clubs. The Council reserves the right to adopt by resolution additional rules and regulations which shall become effective immediately upon adoption. Copies of such rules and regulations shall be given to the licensee on or prior to the date of Council consideration. It shall be unlawful for the licensee or other person or entity to violate any such rules or regulations.

a. It shall be unlawful for any City employee or City official to directly or indirectly own, operate or have any interest, legal or equitable, in any card, club or card club license. It shall be unlawful for any City employee or City official to directly or indirectly conduct business with or be employed in any manner whatever by a card club or card club licensee. For purposes of this subsection, the term "conduct business" shall include but not be limited to the provision of loans or any other form of financing, sale or lease of any real or personal property, and the provision of any services, supplies, goods or other materials, but shall not include the conduct of business as a patron or customer in a manner available to the general public.

b. The licensee shall be permitted to play those card games which are not prohibited by local ordinance or state or federal law. Prior to operation, the licensee shall complete a gaming directory which shall contain the name, description and complete rules of play for each and every game to be played within the card club premises. The gaming directory shall be submitted to the City Manager and the Chief of Police for review and approval prior to the card club being opened to the public. A certification, signed by the licensee, shall be attached to the statement, declaring under penalty of perjury that the licensee will add no games nor change any rules of play without submitting a request for modification of the gaming directory to the City Manager 30 days prior to proposed implementation of the change. A certified copy of the gaming directory signed by the City Manager and the Chief of Police shall be maintained in the Office of the City Clerk and the security office of the card club at all times.

c. Any individual who has a financial or management interest in the Radisson Crystal Park Hotel and Casino shall not participate directly or indirectly in any casino games on the premises.

The Radisson Crystal Park Hotel and Casino has adopted certain rules and regulations that govern the following subject matter: purchasing, revenue audit, accounting operations, cage, casino operations, table games, and forms. The Radisson Crystal Park Hotel and Casino shall follow its rules and regulations herein referred to and hereafter adopted. The rules and regulations must be followed in a manner that is consisted with City, state or federal law. The City must be notified in writing immediately of any changes in any rules and regulations herein referred to and hereafter adopted.

Any violation of this section shall constitute full and sufficient grounds for the revocation or suspension of the license of the licensee at the sole discretion of the City Council.

d. There is an authorized maximum limit of 300 gaming tables for each licensee, subject to the approval of the Compton Fire Department.

[Ord. #1877, § 1]

The licensee agrees for himself, and his successors and assigns, and every successor in interest to the card club or any part thereof, as follows:

a. The licensee shall not discriminate nor permit any discrimination in connection with the operation of the card club, based upon race, sex, marital status, color, creed, religion, national origin or ancestry.

b. The licensee shall use his best efforts to employ as many persons as reasonably possible who live within the City, who reflect the demographic makeup of the City, and who otherwise satisfy the employment requirements of the card club. The licensee shall use the facilities of the City to obtain employees and shall advertise in publications that are circulated in the general area of the licensee's location. The City shall cooperate with the licensee in seeking such employees.

c. The licensee will from time to time, upon request by the City, furnish to the City reasonable data concerning the residence and ethnic background of persons employed by the card club and of the nature of the efforts by the licensee to otherwise comply with this section.

[Ord. #1877, § 1]

The Council, in adopting the provisions of this section and regulating the businesses to be operated by a licensee who permits the playing of the games, hereby declares that the playing of games not prohibited by statute is conducive to public morals when such games are played and conducted according to all laws, rules, regulations, and provisions set forth herein, and that in any proceedings to revoke or suspend a license, to abate the business conducted thereunder, or to prosecute the licensee or his employees for any act authorized thereby, it shall be presumed that such acts are not unlawful and that such business is not a public or private nuisance.

[Ord. #2019, § 6]

A card club is authorized to conduct gambling operations 24 hours a day, every day of the year. The licensee shall determine actual hours of operation of the gambling establishment. The licensee shall post in full and unobstructed view and in appropriate locations within and outside the premises, the hours of operation of the gambling establishment.

[Ord. #2019, § 7; Ord. #2154, § 1]

There shall be no mandatory limit on the amount wagered in any permitted game. However, the licensee of a gambling establishment may impose wagering limits on any game at the licensee's discretion. The licensee shall post in full and unobstructed view and in appropriate locations within the card room(s) any local house or table wagering limits.

[Ord. #2019, § 8]

Subject to the approval of the Chief of Police, the licensee shall implement, provide and maintain a security plan that provides and maintains reasonable security on its premises, including the parking areas. The licensee shall employ a professional security staff, which shall monitor the activities on the premises and in the parking areas. The licensee shall make use of surveillance camera equipment and take reasonable steps to assure that the patrons and visitors are not involved in criminal activity, or the victims of criminal activity.

On an annual basis, a detailed security plan, including staffing and deployment, shall be submitted to the Chief of Police for review and approval. The licensee shall modify any security plan within 30 days after receipt of written notification from the Chief of Police that the existing plan is inadequate. All modifications shall be subject to the approval of the Chief of Police prior to implementation.

The Director of Security of the licensee shall maintain a close working relationship with the Compton Police Department in meeting the requirements of this section.

[Ord. #1877, § 1; Ord. #2019, § 1]

It shall be unlawful for any person or entity to violate any of the provisions of this section or any of the rules and regulations set forth, established, or promulgated hereunder.

[Ord. #1877, § 1; Ord. #1967, § 2; Ord. #2019, § 2]

Any violation of this section is a misdemeanor. The penalty for the violation of this section shall be punishable by a fine of $1,000 or imprisonment for a term not exceeding six months, or by both such fine and imprisonment.