Cudahy Municipal Code Art. XVIII Casinos – Certain Gambling Games – Bingo

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

(1) “Commence” shall mean and include commence, begin, initiate, start, open and establish.

(2) “Conduct” shall mean and include conduct, transact, maintain, prosecute, practice, manage, operate and carry on.

(3) “Employee” shall mean every person, either an agent, employee, or otherwise, of the owner, as owner, or under the direction of the owner of any casino.

(4) “Owner” shall mean every person, firm, association, partnership, corporation, or other entity having any interest, legal or equitable, in any casino or casino license.

(5) “Person” shall mean and include a natural person, or any other legal entity which owns any interest in or proposes to own any interest in, operates or proposes to operate a casino in the city. In addition, “person” shall have the meaning set forth in Business and Professions Code Sections 19082(c) and (e) as those sections appear in Chapter 387 of the Statutes of 1995 and as those sections may hereafter be amended.

(6) “Pointholder” shall mean any person, having any interest whatsoever, or at all, in the ownership in a casino, whether legal, equitable, or of whatsoever kind or character. However, third-party proposition player provider services (also referred to as “banking groups”) are exempt from being considered pointholders.

(7) “Purport to commence” and “purport to conduct” shall mean and include 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, or

(b) By the appearance or arrangement of any premises, or

(c) By acts or statements of any person, or of 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 article within the city.

(8) “Gambling game” or “gambling games” shall mean any game conducted, dealt or carried on with cards, dice, dominos or devices, for money, checks, chips, credit or any representative of value if chance is any determining factor in the result of the game.

(9) “License” shall mean a license or permit for the playing of any gambling game.

(10) “Licensee” shall mean the person authorized to conduct a business hereunder.

(11) “Casino” shall mean a business or enterprise licensed under the provisions of this article for the playing of any gambling game.

(12) “Game room” shall only mean that portion of a casino where gambling games are conducted and does not include portions of a casino where gambling games are not conducted.

(13) “Third-party proposition player services” or “proposition player services” means services provided in and to the house under any written, oral, or implied agreement with the casino, which services include play as a participant in any controlled game that has a rotating player-dealer position as permitted by Penal Code Section 330.11. (Ord. 691 § 1, 2018; Ord. 588 § 1, 2003; Ord. 507 §§ 2, 3; Ord. 505 § 3. 2002 Code § 6-32.1).

Except as otherwise provided in this chapter, it is unlawful for a person, either as owner, lessee, third-party proposition player service company or employee, whether for hire or not, either solely or in conjunction with others, to deal, operate, carry on, conduct, maintain, or expose for play any controlled game in this state, or to receive, directly or indirectly, any compensation or reward, or any percentage or share of the money or property played for keeping, running, or carrying on any controlled game within the city, without having applied for and obtained from the city, and thereafter maintain, a valid gambling license, key employee license, or registration permit, as specified in this chapter. In any criminal prosecution for violation of this section, the punishment shall be as provided in Section 337(j) of the Penal Code. (Ord. 691 § 2, 2018; Ord. 505 § 3. 2002 Code § 6-32.2).

Subject to the provisions of this article, any person desiring or proposing to commence or conduct any gaming-related business, activity, enterprise, undertaking, or place named, designated, specified or referred to in this article for any gambling game shall file with the city manager a written application for the license so to do as required by the provisions of this article. Each such application shall contain and clearly and truthfully, under oath or penalty of perjury, set forth and show, in addition to such other information as the city manager shall 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 copartners or members of the firm, copartnership, or joint venture and the name, residence, and business address of each of the principal officers and directors of the association or corporation applicant;

(6) The type and nature of the gambling game proposed to be played;

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

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

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

(10) A statement that any building used to conduct gaming-related activity will conform to all the laws of the state and the city for occupancies of the nature proposed;

(11) A statement that all required federal, state, and local government permits and licenses have been obtained for the sale and dispensing of alcoholic beverages. The specific location for the dispensing of alcoholic beverages shall be confined to the bar and cocktail lounge, the restaurant and coffee shop, and the game floor areas;

(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 manager;

(13) A statement that the applicant reasonably 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 therefor subject to immediate suspension and revocation;

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

(15) A full and complete financial statement of the applicant, whether an individual, corporation, partnership, or other entity; provided, that the financial statement required by this subsection may be filed with the application, shall be a confidential document and shall not be open to public inspection but shall be available only to the city manager, his staff and the council;

(16) The city manager is authorized to determine that an application filed with the Division of Gambling Control in the California State Department of Justice satisfies the requirements of this section; and

(17) When an act of nonconformity of a state or city law has occurred, casinos are provided a cure period of 30 days for resolution of the situation. In situations where casinos hold that there was not an act of nonconformity of a state or city law, casinos shall be permitted to appeal to the city manager for a complete review of any infractions or fines imposed on the casino. (Ord. 611 § 1, 2010; Ord. 588 §§ 2, 3, 4, 2003; Ord. 537 § 1; Ord. 507 § 4; Ord. 505 § 3. 2002 Code § 6-32.3).

The license fees set forth in this article are for both regulatory 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:

(1) An application fee deposit of $2,500 for payment of the costs of investigation. If the deposit exceeds the costs of investigation, the excess funds will be refunded to the applicant.

(2) A license fee deposit of $3,000 which shall be the property of, and retained by, the city. Said fee shall not be refunded to any such applicant if a license is issued, nor shall such fee be prorated in any manner whatsoever, and in the event of the cessation of the proposed business, whether voluntary or involuntary, no refund of the advance fee shall be made. Notwithstanding the foregoing, in the event the license applied for is issued, such license fee deposit shall be applied as an advance towards the license fee described in CMC 5.08.880(6). In the event the license applied for is not issued, such license fee deposit shall be returned to the applicant. (Ord. 537 § 2; Ord. 505 § 3. 2002 Code § 6-32.4).

(1) Schedule of Fees. For purposes of this article, “gross gaming revenue” shall mean and include all cash received as collection fees, cash received in payment for credit extended by a licensee to a patron for purposes of gaming, cash received as winnings, and all revenues directly derived from gaming operations, including all fees derived from third-party proposition player services.

Each casino licensee, licensed pursuant to the provisions of this article, with total annual gross revenues in excess of $10,000 shall pay a monthly tax in an amount equal to 15 percent of total monthly gross revenues. Provided, however, that the license fee shall in no event be less than a minimum of $10,000 per month following the initial commencement operation of the casino.

Each third-party proposition player services company licensee with a valid contract with the casino shall pay a monthly fee equal to 15 percent of total monthly gross gaming revenues.

(2) Statement of Revenue. Each licensee shall file with the city, before the fifteenth day of each calendar month, a statement showing the true and correct amount of gross revenue derived from the gambling game business operated under the license 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 license fee due and owing in accordance with the provisions of subsection (1) of this section, 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 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 subsection (1) of this section.

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, General Manager or Owner. (Strike out the titles which are not applicable.)

(3) Audit of Reports. The books, records, and accounts of any casino 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. Any information obtained pursuant to the provisions of this section or any statement filed by the licensees shall be deemed confidential and shall not be subject to public inspection except in connection with enforcement of the provisions of this article. It shall be the duty of the city manager to so preserve and keep such statements that the contents thereof shall not become known except to persons charged by law with the administration of the provisions of this article or pursuant to the order of any court of competent jurisdiction.

(4) Refusal to Display Records. 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 article, or to permit such inspection of such books, records, and accounts of such licensee shall be and constitute sufficient grounds for suspension or revocation of the license of any such licensee.

(5) Tax Deemed Debt to City. The amount of any tax, penalties and interest imposed by the provisions of this chapter shall be deemed a debt to the city, and any permittee carrying on any business without having paid the tax under this chapter to the city shall be liable to an action in the name of the city in any court of competent jurisdiction for the amount of the tax, and penalties and interest imposed on such business. (Ord. 691 §§ 3, 4, 2018; Ord. 588 §§ 5, 6, 2003; Ord. 505 § 3. 2002 Code § 6-32.5).

(1) Investigations Required. Whenever an application has been filed with the city manager for a license pursuant to the provisions of this article, the city manager and his staff shall immediately and diligently make a full and complete investigation of the applicant and its officers and members, if any, whose names and addresses are shown upon the application.

(2) Reports Required. The city manager shall make such investigations and report to the council with reference thereto with reasonable promptness. He shall make further investigations with reasonable promptness as to all matters within his jurisdiction concerning the public health, welfare, and safety as may be concerned with such application.

(3) 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, except as provided in subsection (5) of this section.

(4) Time of Filing Reports. All such reports shall be filed with the council within a period of 180 days after the applications have been referred to the city manager.

(5) Action in Absence of Reports. In the event that any of such reports are not filed within such 180 days, the council may proceed further without such reports and either grant, with or without conditions, or deny the application under the discretion of the council. (Ord. 611 § 2, 2010; Ord. 505 § 3. 2002 Code § 6-32.6).

(1) Consideration by Council. Whenever an application for a license required under the provisions of this article is presented to the council, and the deposits required by this article in connection therewith have been made with the city manager, the council shall cause to be given in the manner required for public hearings by the council, at least 10 days’ notice of a hearing to consider whether such license should be issued. The council shall also cause to be given at least 10 days’ mailed notice to the applicant of the time and place of such hearing.

(2) 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.

(3) 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 conditions of approval. The license shall provide the location of the casino and the specific gambling game or games authorized to be played pursuant to the license.

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

(5) Applicant’s Acceptance of Council’s Decision. 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.

(6) License Issuance Fee. It shall be a condition of any license granted by the city council that the licensee pay a license issuance fee in the amount of $300,000, or such greater sum as the city council may prescribe, under such terms and conditions as the city council may prescribe at the time the license is granted.

(7) Approved games are to be defined only as those games for which the Division of Gambling Control are permitted for play within the city of Cudahy. (Ord. 588 § 7, 2003; Ord. 506 § 1; Ord. 505 § 3. 2002 Code § 6-32.7).

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

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

(2) If the gambling game or games for which a license is applied for is unlawful or does not meet the approval of the city council;

(3) If the building and premises will not conform to the building and zoning regulations of the city or is not of sufficient size and a suitable location in the opinion of the city council;

(4) If the granting of the license would increase the number of licenses beyond that permitted in CMC 5.08.950;

(5) When an act of nonconformity of a state or city law has occurred, casinos are provided a cure period of 30 days for resolution of the situation. In situations where casinos hold that there was not an act of nonconformity of a state or city law, casinos shall be permitted to appeal to the city manager for a complete review of any infractions or fines imposed on the casino. (Ord. 588 § 8, 2003; Ord. 507 § 5; Ord. 505 § 3. 2002 Code § 6-32.8).

When any application for a license, or amendment to a license or for transfer of a license or for status as a pointholder is submitted pursuant to this article 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 article, such duty shall be performed by a qualified agency designated by the city attorney.

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, the city council 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 said city council. Such hearing officer shall be a qualified person who shall be designated to act as said 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 or manner suggested by the said presiding judge. (Ord. 505 § 3. 2002 Code § 6-32.9).

If the council grants an application for a license pursuant to this article, the city manager shall issue the necessary licenses or license renewals upon payment of the required fees. Such a license or license renewal shall remain in effect until the license expires pursuant to CMC 5.08.930, is surrendered by the licensee, or is revoked pursuant to CMC 5.08.980. (Ord. 505 § 3. 2002 Code § 6-32.10).

The licensee may request the city council to amend the license or any conditions thereof. In addition, the city council may, on its own motion, initiate proceedings to amend any license or conditions thereof. The procedures for amending a license or conditions thereof shall be the same as those provided in CMC 5.08.880 through 5.08.900. (Ord. 505 § 3. 2002 Code § 6-32.11).

(1) Any license issued pursuant to this article to a licensee for a casino which had not yet commenced operation pursuant to that license issued or was most recently renewed shall expire one year from the later of the date of the initial issuance of the license or the most recent renewal of the license, unless extended by the city council upon approval of an application filed pursuant to this article.

(2) Any license issued pursuant to this article to a licensee for a casino which had commenced operation pursuant to that license at the time issued or was most recently renewed shall expire 10 years from later of the date of the initial issuance of the license or the most recent renewal of the license. Renewal shall not be denied unless grounds exist for revocation consistent with this section.

(3) Notwithstanding subsection (2) of this section, any license issued pursuant to this article to a licensee who had commenced operation of a casino pursuant to that license at the time the license issued or was most recently renewed shall automatically expire in the event the licensee ceases to operate the licensed casino for a period of six consecutive months. If the city manager determines that a license has expired under this subsection (3), he or she shall provide written notice of that fact to the licensee by certified mail. Any attempt to exercise the rights conferred by the license on or after the tenth day after such a notice is mailed shall constitute a violation of this code unless the licensee has within that time filed a written request for a hearing before the city council. Such a hearing shall be restricted to the issue of whether the license has or has not expired pursuant to this subsection (3). The decision of the city council shall be final when rendered. Any acts of God or occurrences considered to be totally out of the control of the casino are exempt from causing a license to automatically expire in a period of six months. A reasonable time, as determined by the city, shall be determined for commencing operation after cessation for “acts of God.”

(4) For purposes of this section, a licensee is deemed to have commenced operation of a casino if the casino generates monthly gross revenues for at least two consecutive months in an amount that obligates the licensee to pay a license fee pursuant to CMC 5.08.860.

(5) Upon the expiration, revocation, or surrender of a license, no portion of any license deposit or fee shall be refunded. (Ord. 588 § 9, 2003; Ord. 505 § 3. 2002 Code § 6-32.12).

(1) The conduct of tournaments shall be permitted for those gambling games permitted by this article and approved license and for no others.

(2) The licensee shall submit to the city manager, unless he/she waives this requirement in writing, at least 10 days prior to the commencement of any tournament a full set of rules, regulations, terms and conditions to be used in regulating or otherwise governing the operation and activities of any such tournament.

(3) The licensee must provide documentation to the satisfaction of the city manager that the licensee has been issued a certificate to operate additional tables on a temporary basis by the Division of Gambling Control in accordance with the rules and regulations adopted under the Gambling Control Act, as the same may be amended from time to time.

(4) 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 provision of this article. (Ord. 588 § 10, 2003; Ord. 537 § 4; Ord. 505 § 3. 2002 Code § 6-32.13).

The total number of current licenses for gambling games in the city authorized and outstanding shall not at any time exceed a total of one such license for each full 10,000 persons residing in the city, as shown by the last available United States Census. If the population of the city should be less than 20,000 persons, two licenses may be authorized and outstanding at any one time. (Ord. 506 § 2; Ord. 505 § 3. 2002 Code § 6-32.14).

The following requirements apply to all casinos licensed under the provisions of this article:

(1) Unless otherwise directed by the city council by resolution, a cardroom may operate 24 hours per day, seven days per week. Notwithstanding anything to the contrary in any license issued pursuant to this article or in any ordinance adopted by the city, the city council reserves the right to change the permissible hours of operation, on reasonable notice to the licensee. Hours of operation must be clearly posted at all entrances of the casino and at any other location that the city manager may designate.

(2) The licensee must comply with the Gambling Control Act (Business and Professions Code Sections 19800 et seq.), as the same may be amended from time to time, and any related state regulations pertaining to local, house, or table wagering limits for gambling games authorized in any licensed casino in the city. At every gambling table, the licensee must display placards with the applicable wagering limits, if any, for the particular game offered at that table. Patrons must also be provided with notice of any rules relating to wagering in the rules of play that are required to be available to casino patrons.

(3) Under no circumstances will the total number of gambling tables in the city exceed 100 for all licensed casinos. If one license only is issued, that license is authorized to operate the full 100 tables. If subsequent additional licenses are issued, the city council shall portion the tables, but at no time shall the original license be authorized for less than 50 tables.

(4) The licensee shall have in effect and shall implement a security plan which shall include measures to ensure the safety of patrons in and around the licensed casino. The plan and any amendments thereto must be approved by the city manager or such other person designated by the city council before operation of the casino commences. The plan must provide that one or more persons charged with the task of patron security is on duty at all times while the licensed casino is open. Notwithstanding anything to the contrary in any license issued pursuant to this article or in any ordinance adopted by the city, the city council reserves the right to require the licensee to modify the security plan to the satisfaction of the city manager or such other person designated by the city council on reasonable notice to the licensee. Moreover, the licensee must comply with all rules and regulations issued by the city manager regarding patron security and safety in and around the licensed casino.

(5) The licensee may extend credit for gambling purposes in accordance with the Gambling Control Act, as the same may be amended from time to time, and any related state regulations pertaining to the extension of credit.

(6) Casinos are permitted to use credit reports obtained from reliable credit reporting agencies in determining if credit should be extended to individuals requesting credit. (Ord. 588 § 11, 2003; Ord. 537 § 3. 2002 Code § 6-32.14A).

Any transfer or assignment of any license shall be considered for all purposes in the same manner as a new application for a casino license in the city, and all the provisions of this article applicable to new and original applications shall apply. (Ord. 505 § 3. 2002 Code § 6-32.15).

(1) General. All licenses issued pursuant to the provisions of this article shall be subject to revocation in the time and manner set forth in this section. When an act of violation of a state or city law has occurred, casinos are provided a cure period of 30 days for resolution of the situation. In situations where casinos hold that there was not an act of nonconformity of a state or city law, casinos shall be permitted to appeal to the city manager for a complete review of any infractions or fines imposed on the casino.

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

(a) That a licensee has willfully violated, or permitted, allowed or caused the violation of any provisions of this article; or

(b) 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; or

(c) That a licensee 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.

(3) Action of 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 violation has occurred, he shall forthwith set the matter for consideration by the city council at its next most convenient meeting. He shall give notice of the time and the place of the hearing before the city council to the licensee not less than five days in advance of the date set by him for such hearing.

(4) Hearings. At the time set for such hearing, the city council shall hear the evidence presented by the city manager, purporting to show the grounds existing for 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 grounds.

(5) Decision of City Council. If, based upon the evidence presented, the city council finds that facts are presented which constitute grounds for revocation, it may revoke 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. 588 § 12, 2003; Ord. 505 § 3. 2002 Code § 6-32.16).

(1) Established. The following rules and regulations are hereby established and promulgated with reference to gambling games for which licenses are issued under the provisions of this article. Licensees holding or obtaining licenses under the provisions of this article shall, in writing, agree to be bound by and observe each and all of the provisions of this article relating to such licenses.

(a) Rule No. 1. 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.

(b) Rule No. 2.

(i) No licensee shall permit any person to play in any gambling game licensed by the provisions of this article at any time while such person objectively appears to be, or is, under the influence of intoxicating liquor or drugs and no person under, or who appears to be under, the influence of intoxicating liquor or drugs shall play in any such gambling game.

(ii) No licensee shall permit any person to enter the premises while such person appears to be, or, in the opinion of the licensee, or a duly authorized agent or employee, is under the influence of intoxicating liquor or drugs.

(c) Rule No. 3. Except in a duly authorized tournament, no licensee shall permit any person playing in any of the gambling games licensed by this article to make any individual bet or wager in excess of the maximum bets set forth for the particular gambling game as specified in the rules.

(d) Rule No. 4. No licensee shall operate or use any table or unit or manage, conduct or carry on any business or activity licensed by this article after the time that such license issued by the city has been or is revoked pursuant to this article.

(e) Rule No. 5. Each and all of the gambling games conducted or operated in the city pursuant to the provisions of this article shall be conducted and operated in full conformity with, and subject to all the provisions of applicable laws.

(f) Rule No. 6. No licensee shall permit or allow any person under the age of 21 years to play in any game licensed hereunder, at any time in any gambling game covered by or referred to in any such license.

(g) Rule No. 7. The only gambling games permitted to be played in a licensed club shall be the gambling game or games provided in the license.

(h) Rule No. 8. The playing of all games provided for in this article shall be confined to the areas designated as “game rooms” which shall be located on the first or ground floor of a licensed card club and no playing of any game provided for or permitted by this article shall be permitted at any other location of such premises. Additionally, the specific location of all “game rooms” shall be first identified to the city manager to ensure compliance with any and all security requirements established by the city for those areas prior to the playing of any gambling games provided for or permitted by this article.

(i) Rule No. 9. A casino shall be open for inspection during all hours to the city manager, or his duly authorized representative, without a search warrant.

(j) Rule No. 10. The minimum size of any building or lot or combination of lots upon which each card club or casino is placed shall be determined by the city planning department and approved by the city council. Required off-street parking for each card club or casino shall be governed by Chapter 20.80 CMC.

(k) Rule No. 11. Notwithstanding the foregoing rules, tournaments shall be permitted; provided, that the time, place and special rules, including minimum and maximum bets for such tournament play, are first submitted to and approved by the Gambling Control Commission. (Ord. 588 § 13, 2003; Ord. 506 § 3; Ord. 505 § 3. 2002 Code § 6-32.17).

(1) Definitions. For the purposes of this section, the words and phrases set forth below have the following meanings:

(a) “Board” shall mean the California Gambling Control Commission.

(b) “Division” shall mean the Division of Gambling Control in the California State Department of Justice.

(c) “Employee work permit” shall mean a permit issued by the city to any natural person in accordance with the requirements of this section.

(d) “Gambling establishment employee” shall mean any natural person employed in the operation of a gambling establishment where gaming activity occurs, including, without limitation, management personnel, dealers, floormen, security employees, countroom personnel, cage personnel, collection personnel, surveillance personnel, data processing personnel, appropriate maintenance personnel, waiters and waitresses, and secretaries, or any other natural person whose employment duties require or authorize access to a game room.

(2) Application. The licensee must require each prospective gambling establishment employee to obtain an employee work permit before that employee commences work. An employee work permit application must be filed with the city manager. Each such application must contain and clearly and truthfully set forth, under oath or penalty of perjury, the following information:

(a) The date of the application.

(b) The true name of the applicant and date of birth.

(c) The applicant’s residence and business address.

(d) The name and address of the casino for which the applicant desires an employee work permit.

(e) Whether the applicant has been convicted of any crime punishable as a felony.

(f) Whether the applicant has been convicted for any misdemeanor involving dishonesty or moral turpitude within the 10-year period immediately preceding the submission of the application.

(g) Whether the applicant has been granted relief for any misdemeanor involving dishonesty or moral turpitude within the 10-year period immediately preceding the submission of the application under California Penal Code Sections 1203.4, 1203.4a, or 1203.45 of the Penal Code, as the same may be amended from time to time.

(h) Whether the applicant has been or is associated with criminal profiteering activity or organized crime, as defined by California Penal Code Section 186.2, as the same may be amended from time to time.

(i) Whether the applicant has engaged in contumacious defiance of any legislative investigatory body, or other official investigatory body of any state or of the United States, when that body is engaged in the investigation of crimes relating to gambling, official corruption related to gambling activities or criminal profiteering activity or organized crime, as defined by California Penal Code Section 186.2, as the same may be amended from time to time.

(j) Whether the applicant has been disqualified from holding a state gambling license.

(k) The applicant must submit proof of age, such as a certified birth certificate, passport, or California’s driver’s license or identification card.

(l) The applicant must submit to fingerprinting and photographing by a law enforcement agency designated by the city manager.

(m) A statement that the applicant understands that the application will be considered by the city manager only after a full investigation and report has been submitted to the city.

(n) A statement that if the applicant is granted an employee work permit, any change in information contained in the application will be submitted to the city manager within 48 hours.

(o) A statement that the applicant understands that the Division may object to the issuance of an employee work permit.

(p) A statement that the applicant understands that the Division or Board may suspend or revoke an employee work permit.

(q) A statement that the applicant understands that the work permit is provisional until the Division has had an opportunity to review the application as set forth in subsection (4) of this section.

(3) Processing Fee. A processing fee in an amount established by resolution of the city council must be paid to the city when the application is submitted.

(4) Objections to Employee Work Permit. The city manager must notify the Division of every application for an employee work permit. The Division will have a reasonable opportunity to object to the issuance of any employee work permit.

(5) Provisional Work Permit. Work permits issued by the city shall be provisional until the Division has had an opportunity to review the application as provided in subsection (4) of this section. Provisional work permits are subject to revocation if the Division objects to issuance of the employee work permit as set forth in the Gambling Control Act (Business and Professions Code Sections 19800 et seq.), as the same may be amended from time to time, and any related state regulations.

(6) Denial of Employee Work Permit. The city manager must deny the employee work permit application for any of the following reasons:

(a) The applicant is under the age of 21.

(b) The applicant has knowingly made any false, misleading, or fraudulent statement of material fact in the application.

(c) The applicant has been convicted of any crime punishable as a felony.

(d) The applicant has been convicted of any misdemeanor involving dishonesty or moral turpitude within the 10-year period immediately preceding the submission of the application. An employee work permit will not be denied if the applicant has been granted relief pursuant to California Penal Code Sections 1203.4, 1203.4a, or 1203.45, as the same may be amended from time to time.

(e) The applicant has been or is associated with criminal profiteering activity or organized crime, as defined by California Penal Code Section 186.2, as the same may be amended from time to time.

(f) The applicant has been engaged in contumacious defiance of any legislative investigatory body, or other official investigatory body of any state or of the United States, when that body is engaged in the investigation of crimes relating to gambling, official corruption related to gambling activities or criminal profiteering activity or organized crime, as defined by California Penal Code Section 186.2, as the same may be amended from time to time.

(g) The applicant has been disqualified by the Division from holding a state gambling license.

(h) The Division has objected to the issuance of the employee work permit for any reasonable cause.

(7) Unlawful Activity. It is unlawful for any licensed casino in the city to employ or retain in employment any gambling establishment employee who does not have an employee work permit as required by this section.

(8) Review and Renewal. Employee permits are subject to periodic review by the city and annual renewal. A processing fee in an amount established by resolution of the city council must be paid to the city when the permit is renewed. (Ord. 588 § 14, 2003; Ord. 537 § 5; Ord. 505 § 3. 2002 Code § 6-32.18).

(1) It shall be unlawful for any person having any interest whatsoever or at all in the ownership of a casino, whether legal or equitable, or as trustor or trustee, or of whatsoever kind or character, to transfer such points and/or interest without the consent and permission of the council first had and obtained.

(2) Any person desiring to sell, transfer, assign, or otherwise hypothecate any point or interest in a casino duly licensed pursuant to the provisions of this article shall file with the city manager a written application for permission to transfer such interest as is hereinafter described. Each such application shall contain and clearly and truthfully set forth, under oath and/or penalty of perjury and show, in addition to such other information as the city manager and/or the council may require, the following information:

(a) The date of the application;

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

(c) The status of the transferee as being an individual, corporation, association, copartnership, joint venture, trustor, or trustee;

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

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

(f) The name of the licensed casino for which a transfer of interest or point is sought;

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

(h) A statement that the applicant will be considered by the council only after a full investigation and report has been made by the city manager and the report of investigation forwarded to the council;

(i) The statement required by this section and the documents containing such information shall be confidential, 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 article and to any court of competent jurisdiction where any matter relating thereto may actually be pending, except that the names and places of residence only of such pointholders shall be open to public inspection, but all other statements and/or documents shall remain confidential.

(3) Investigation Required. Whenever an application pursuant to the provisions of this section has been filed with the city for consent to transfer pursuant to the provisions of this section, the city manager shall promptly and diligently make an investigation as follows:

(a) A full and complete investigation of the transferee;

(b) Concurrently with the filing of the application, the transferee (or if not an individual, each individual officer, stockholder, or partner or member of the transferee) shall be fingerprinted by a duly appointed law enforcement agency;

(c) It shall be the responsibility and duty of the city manager to establish the necessary procedures to administer the provisions of this subsection (3); and

(d) The information received by the city manager pursuant to the provisions of this subsection (3) shall be confidential and shall be accessible only to the city council, city manager and to city officials having the direct jurisdiction over the provisions of this article.

(4) License Fees. Each such transfer application shall be accompanied by a processing fee, payable in advance, as set by the city council, in an amount sufficient to cover the cost of the investigation. The fee set forth in this subsection shall be the property of and be retained by the city, whether the application for transfer is granted or denied.

(5) Granting or Denial of Application.

(a) Consideration by Council. Whenever an application for such a transfer is presented to the council and notice provided to the general manager of a casino, the council shall consider such application on the same basis as is applicable to a new license application.

(b) Decision of the 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.

(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.

(6) Investigations – Updating. All pointholders holding points in any casino, as well as the general partners and/or officers of such casino, whether or not they hold any points in such casino, shall have their background investigations updated annually pursuant to a schedule established by the city council. Such updating shall consist of a check by teletype to Criminal Investigation and Identification in Sacramento, California. A fee in the amount of $3.00 for each pointholder so investigated shall be paid to the city by the respective casino or licensee annually to cover the costs of such investigations.

(7) Application of Provisions to Continuing Pointholders. Any person having any interest whatsoever or at all in the ownership of a casino, whether legal or equitable, or a trustor or trustee, or of whatsoever kind or character, who has not previously submitted to the procedure required under subsection (5) of this section, shall, as a prerequisite to the continued holding of an ownership interest, file an application on the form provided in subsection (2) of this section and pay the fees provided for in subsection (4) of this section. The application shall be investigated and reviewed as provided in this section for persons applying for new ownership interest. If the council denies any such application, the interest owner, within six months after the receipt of a notice of such denial, shall divest himself or herself of such ownership interest.

(8) Divestment. Any person having any interest whatsoever or at all in the ownership of a casino, 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 120 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 subsection, unless the conviction is appealed to a higher court, in which case the judgment of that court shall constitute the final action pursuant to which notice of divestiture shall be served if the conviction is affirmed. Within 30 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 30 days after the receipt of the appellant’s written request. Upon the conclusion of the hearing, the council may elect not to order divestiture and/or to take other 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:

(a) The type, nature and extent of the pointholder’s interest, including the involvement, if any, in the operations of the casino;

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

(c) The circumstances surrounding the conviction;

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

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

(f) Contributing social and environmental conditions;

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

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

(i) Such other factors as may be deemed relevant by the council in determining the status of the pointholder.

(9) The city manager is authorized to determine that an application filed with the Division of Gambling Control in the California State Department of Justice satisfies the requirements of this section.

The decision of the council shall be final and conclusive.

Failure to comply with the provisions of this section, including the notice of divestiture and/or the final order of council, shall constitute a misdemeanor punishable by a fine of not to exceed $500.00 or imprisonment for not to exceed six months, or by both such fine and imprisonment. 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. 588 § 15, 2003; Ord. 537 § 6; Ord. 505 § 3. 2002 Code § 6-32.19).

(1) Unlawful Locations. It shall be unlawful for any person to play or permit the playing of any gambling game at any place within the city, except a place operated and licensed under a permit and licenses held or issued pursuant to the provisions of this article.

(2) Unlawful Gambling Games. It shall be unlawful for any person to play in any gambling game at any place licensed pursuant to this article which gambling game is not permitted by the provisions of this article or applicable license, or in any game played in violation of this article or applicable license. (Ord. 505 § 3. 2002 Code § 6-32.20).

The people, in adopting the provisions of this article and establishing the regulation of the businesses operated or to be operated by a licensee who permits the playing of gambling games, hereby declares that the playing of gambling games not prohibited by statute is conducive to public morals when the same are played and conducted according to all the laws, rules, regulations, and provisions as set forth in this article, and that in any proceeding to annul a license issued pursuant to the provisions of this article, or to abate the business conducted hereunder, or to prosecute the licensee or his employees for any acts authorized hereby, it shall be presumed that such acts are not unlawful and that such business is not a public or private nuisance. (Ord. 505 § 3. 2002 Code § 6-32.21).

Nothing contained in this article shall in any manner whatsoever operate to authorize, permit, or license, or be construed to authorize, permit, or license, in any manner whatsoever, within the city any game prohibited by the laws of the state or the ordinances of the city, and no city license shall be issued therefor. (Ord. 505 § 3. 2002 Code § 6-32.22).

It shall be unlawful for any person to violate any of the provisions of this article. (Ord. 505 § 3. 2002 Code § 6-32.23).

The city council shall have the right and power, in the exercise of a sound discretion, in the event that it shall determine that certain rules or provisions hereof should be amended or modified to protect or further the public interest or welfare, to amend or modify such rules or provisions from time to time; provided, that such amendments or modifications shall not be contrary to the public purpose expressed by this article. (Ord. 505 § 3. 2002 Code § 6-32.24).

The city council may, by ordinance adopted pursuant to state law, authorize the playing of bingo in certain establishments operated by nonprofit organizations, subject to the limitations and on the conditions provided by law. (Ord. 505 § 3. 2002 Code § 6-32.25).

The provisions of Ordinance No. 29 entitled:

AN ORDINANCE PROPOSED BY THE CITY COUNCIL OF THE CITY OF CUDAHY PROHIBITING ALL FORMS OF GAMBLING WITHIN THE CITY TO BE SUBMITTED TO THE VOTERS OF THE CITY

are repealed and superseded hereby to the extent that the provisions thereof are inconsistent herewith. (Ord. 505 § 3. 2002 Code § 6-32.26).

The city council may, by resolution, enact rules and regulations to carry out the purposes of this article and the Gambling Control Act (Business and Professions Code Sections 19800 et seq.), as the same may be amended from time to time, and any related state regulations. (Ord. 537 § 7. 2002 Code § 6-32.27).

The city of Cudahy hereby specifically sets no wagering limit and/or limits for its licensee(s) governed by this code, specifically this article entitled “Casinos – Certain Gambling Games – Bingo.” (Ord. 604 § 1, 2007. 2002 Code § 6-32.28).