Davis Municipal Code Art. 8A.01 In General

For purposes of this article, the term "cardroom" means any place or business within the city where tables are used by the public for the playing of cards, and at which money or anything of value is wagered or for the use of such tables a fee or compensation is charged.

(Ord. 1820 § 1)

It is unlawful for any person to engage in, carry on, maintain, conduct, or cause to be engaged in, carried on, maintained or conducted, any cardroom without first obtaining a valid cardroom license from the city issued pursuant to the provisions of this chapter.

(Ord. 1820 § 1)

An applicant for a cardroom license shall submit his or her application to the police chief of the city. The application shall include, but is not limited to, the following:

(a) The true name of the applicant, together with the names of all persons with direct or indirect interest in the conducting of such business, including all members of any firm or partnership. A corporate applicant shall list officers, directors and principal owners, including all owners of ten percent or more of the corporate stocks;

(b) The criminal record, if any, of the applicant and all persons holding a financial interest, including lenders;

(c) The location and description of the premises upon which the applicant proposes to conduct a cardroom and a statement of the property interest of the applicant in the premises as owner, lessee or otherwise;

(d) The maximum number of card tables which will be operated on the premises;

(e) The specific types of card games proposed to be played within the cardroom;

(f) Such further information bearing on the identity and character of the applicant or the use, location, or condition of the premises as the police chief may require.

(Ord. 1820 § 1)

The police chief, upon receipt of a written application for a license containing all of the information required by Section 8A.01.030, shall conduct, or cause to be conducted, an investigation to determine whether the requested cardroom license should be granted or denied in accordance with the provisions of this chapter. The police chief shall consider any relevant, factual material relating to such application. Within sixty calendar days of receipt of the application, the investigation shall be concluded and the police chief shall approve or deny the application.

(Ord. 1820 § 1)

The police chief shall approve an application for a cardroom license unless any of the following circumstances exists:

(a) That the establishment or operation of a cardroom at the premises would violate the city's zoning, fire, building, or other ordinances or regulations, or other applicable laws and regulations;

(b) That the applicant, owners, officers, employees, or persons sharing in the profits of the cardroom have been convicted of crimes involving violence, lotteries, gambling, larceny, perjury, bribery, extortion, fraud, or similar crimes of moral turpitude, crimes involving service or entertainment businesses catering to the public, or regulations or orders of the violations of the Alcohol Beverage Control Commission;

(c) That the applicant has failed to comply with any of the provisions of the City of Davis Municipal Code, or other laws applicable to the premises, equipment, or operation of the business for which a license is requested;

(d) That the applicant, in this state or any other state, has been refused, or had revoked, a cardroom, gambling, or similar license;

(e) That the applicant has knowingly made any false, misleading, or fraudulent statements of material fact in the application or any other documents required by the city in conjunction therewith.

(Ord. 1820 § 1)

If the police chief denies an application for a cardroom license, the applicant may appeal that decision to the city manager's office by filing a written notice of appeal with the city clerk within ten calendar days of the date of decision. Upon failure to file such notice within the ten-day period, the action of the police chief shall be final and conclusive. Upon receipt of a timely filed appeal, the city manager may hire or appoint a hearing officer or may serve as the hearing officer. The hearing officer shall schedule, notice and hold a hearing on the appeal. The applicant shall have the burden of establishing that the application was wrongfully denied. If the city manager hired or appointed a hearing officer, then following the hearing and after reviewing the testimony and evidence presented at the hearing, the hearing officer shall issue a recommendation to the city manager regarding the propriety of the police chief's determination. Based upon a review of the hearing transcript and the evidence, the city manager shall accept, amend and accept, or reject the hearing officer's recommendation. Such action shall constitute the city manager's determination of the appeal, which determination shall be final.

(Ord. 1820 § 1; Ord. 2390 § 20, 2012)

No licensed cardroom may be moved to a new location within the city limits without prior approval by the police chief. In addition to the requirements of this chapter, all cardroom locations must meet all other applicable city requirements.

(Ord. 1820 § 1)

Every person engaged in operating, maintaining or carrying on the business of a cardroom shall pay a license fee as established by the chief of police and approved by the city council by resolution. Such fee shall not exceed the city's reasonable direct and indirect costs in administering and enforcing this chapter.

(Ord. 1820 § 1)

All licenses and permits for cardrooms shall be for one calendar year. To renew, the licensee must file with the police chief, by December 1st of each year to become effective by January 1st of the following year, an application for a cardroom license and a declaration stating under penalty of perjury whether there has been a material change in ownership or operation of the cardroom, any violation of any law or regulation by the licensee related to the licensed cardroom, or any violation of the provisions of this chapter. The police chief shall either approve or deny the renewal application in accordance with the criteria in Section 8A.01.050. In addition, the renewal may be denied if the cardroom has been determined to be a public nuisance pursuant to Chapter 23.

If the renewal request is approved by the police chief, the licensee shall pay the applicable license fees. If the renewal request is denied, the applicant may file an appeal in accordance with Section 8A.01.060. A license shall become null and void on January 1st, if the appropriate renewal fee(s) have not been paid on or before December 31st, of the immediately preceding year.

(Ord. 1820 § 1)

An applicant who has received a cardroom license and paid all appropriate fees, as provided in this section, must commence operation of the cardroom within thirty days following issuance of the license. The police chief may grant an extension upon showing of probable cause of unavoidable delay beyond the licensee's control.

(Ord. 1820 § 1)

(a) Suspension and revocation of cardroom license or work permit. The city manager shall have the right for cause to revoke or suspend any cardroom license issued hereunder, and the chief of police shall have the right for cause to revoke or suspend any cardroom work permit issued hereunder. Any of the grounds upon which the city manager and the chief of police may refuse to grant a cardroom license application or cardroom work permit application shall also constitute grounds for such revocation or suspension. In addition, the failure of a cardroom license or cardroom work permit holder to comply with the provisions of this chapter shall also constitute grounds for revocation or suspension of the license or work permit.

Cardroom licensees shall continuously operate a cardroom while holding a valid cardroom license. If any person licensed hereunder fails to maintain and continuously operate a cardroom for a period of one hundred eighty consecutive days or more in accordance with the provisions of this chapter, the license shall automatically be revoked. A licensee may appeal any automatic revocation within the time and in the manner set forth in Section 8A.01.060.

(b) Temporary suspension.

(1) The city manager shall have the authority to temporarily suspend a cardroom license and to order the licensee to cease and desist immediately any further operation of the cardroom during the time an appeal is pending pursuant to the provisions of this chapter, if the chief of police finds that such temporary suspension is necessary in order to protect against a serious and immediate threat to the public health, safety, morals or welfare caused by exercise of the license and one of the following occurs:

(A) The licensee is in violation of any of the provisions of this chapter, the Penal Code of the State of California, or any other applicable federal, state or local law, rule or regulation; or

(B) The chief of police finds that by reason of criminal activity occurring on the cardroom premises, or by virtue of acts by the patrons of the cardroom, that the public is subject to the immediate risk of harm or criminal, deceitful or otherwise unethical practices.

(c) Temporary suspension—Notice of suspension and appeal.

(1) The temporary suspension shall be effective twenty-four hours following delivery of a temporary suspension notice to the licensee. If the licensee is unavailable or unable to be served, notice may be delivered to the person in charge of the cardroom and mailed to the licensee at the cardroom premises, and shall take effect twenty-four hours after both are delivered and placed in the mail.

(2) An appeal of a temporary suspension of a license pursuant to this section shall be made as provided in Section 8A.01.060.

(d) Conducting a cardroom or operating as a cardroom manager or dealer after temporary suspension. It is unlawful for the holder of a cardroom license to operate or permit the operation of a cardroom during any temporary suspension of the cardroom license pursuant to this section, and it shall be unlawful for the holder of a cardroom employee permit to work as a cardroom employee in any cardroom the license for which has been temporarily suspended pursuant to this section.

(Ord. 1820 § 1)

Cardroom employees shall be required to obtain a work permit from the police chief. For the purposes of this section, cardroom employees are defined as dealers, overseers and others directly connected with the operation and supervision of the card tables and excluding waitresses, bartenders, culinary workers and others not connected with such operation and supervision. Only one such work permit shall be required each year even though the holder of such work permit may change his or her place of employment within the city. Each cardroom employee shall pay the sums established by resolution of the city council for his or her first permit and for each renewal.

(Ord. 1820 § 1)

(a) Applications for such work permits shall be submitted under oath and contain the past criminal record, if any, of the applicant and such information as may be deemed relevant by the police chief in order to determine whether the applicant has the necessary qualifications to receive a cardroom work permit.

(b) The police chief shall require permit holders to be trained by Department of Justice gaming personnel on state rules affecting cardrooms.

(Ord. 1820 § 1; Ord. 2390 § 21, 2012)

The police chief shall grant an application for a work permit unless any of the following circumstances exists:

(a) That the applicant has criminal convictions. The police chief shall consider all criminal convictions of such applicant, the reasons therefor, and the actions of such agent or employee subsequent thereto;

(b) That the applicant has a record of engaging in false, misleading, or fraudulent activities;

(c) That the applicant has been refused, or has had revoked, any license or permit by an agency of government for failure to abide by local, state or federal laws, or for making false, misleading, or fraudulent statements in conjunction with operation under said license or permit;

(d) That the applicant has knowingly made any false, misleading, or fraudulent statements of fact in the application or any other document required by the city in conjunction therewith;

(e) The applicant is under twenty-one years of age.

(Ord. 1820 § 1; Ord. 2390 § 22, 2012)

Any aggrieved person wishing to appeal the decision of the police chief in granting or denying an application for a work permit to the city manager may do so by filing a written notice of appeal with the city clerk within ten calendar days of the date of decision. Upon failure to file such notice within the ten-day period, the action of the police chief shall be final. The appeal shall proceed pursuant to the procedure provided by Section 8A.01.060.

(Ord. 1820 § 1)

No cardroom work permit shall be assignable or transferable.

(Ord. 1820 § 1)

The city council declares that it is not the intention of this chapter to permit the licensing of any cardroom for the playing of any game prohibited by the laws of the state.

(Ord. 1820 § 1)

Except as hereinafter provided, no person shall operate a cardroom in violation of any of the following regulations:

(a) No person shall be permitted to hold or be interested in more than one cardroom license issued by the city.

(b) The maximum number of card tables permitted in any cardroom shall be as allowed under the Uniform Fire Code, but in no event shall more than five card tables be permitted in any cardroom.

(c) Not more than one cardroom shall be located at any one address.

(d) Not more than ten players may participate at any one card table.

(e) All cardrooms shall remain open to immediate inspection with no doors locked. Inspections may be conducted without a search warrant and during all hours of operation. Inspections shall be conducted to determine the licensee's compliance with the requirements of this chapter.

(f) No person under the age of twenty-one years shall be permitted at any card table or participate in any game played thereat, or be present in a cardroom at any time. However, if the licensee does not hold a license to serve alcoholic beverages on-site, then persons between the ages of eighteen and twenty-one may be permitted to be present in a cardroom and to participate in any game played thereat.

(g) Each cardroom licensee or licensees shall post in a conspicuous place on the premises a copy of the house rules and regulations and give notice that all persons will be required to comply with them.

(h) The cardroom shall be separated from other activities on the premises.

(i) The only games permitted to be played in a cardroom are Draw Poker, LoBall, 7-Card Stud Poker and Texas Hold 'Em. All other games not prohibited by state law are prohibited. The games allowed and the rules of the games allowed shall be posted in a prominent place within the cardroom.

(j) Only table stakes shall be permitted. Each game shall have a maximum bet of twenty dollars per player per betting round. The maximum bet shall be posted in a prominent place within the cardroom.

(k) Each cardroom shall have, at all times of operation, a person assigned and present to supervise the game strictly in accordance with the laws of the State of California and the provisions of this chapter. The designated cardroom supervisor and all cardroom employees, excepting the licensee acting as supervisor, must also possess a valid cardroom work permit.

(l) It is unlawful for any employee, licensee, manager, operator, owner, or person in control of, or person who appears to be in control of, any licensed cardroom to hire, employ, engage, or persuade any person to play as a shill or decoy upon or within the premises. It is unlawful for any person to perform any function as a shill within a licensed cardroom in the city.

(m) No licensee shall permit any person to enter or remain on the premises or to play or remain in any game while such person appears to be, or in the opinion of the licensee or duly authorized agents or employees, is under the influence of intoxicating liquor or drugs.

(n) Cardroom may operate a maximum of seven days a week, 10:00 a.m. until 5:00 a.m. the following day, unless restricted by other city permits.

(Ord. 1820 § 1)

The provisions of this article shall not apply to cardrooms of fraternal organizations not open to the general public and whose membership is restricted to those persons regularly and formally elected to membership therein and paying regular dues to such organizations. In addition, the provisions shall not apply to card games for casino night type fundraisers when a function of a nonprofit organization.

(Ord. 1820 § 1)