Delano Municipal Code Ch. 6.08 Gaming Rooms

Footnotes:

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Editor's note— Ord. No. 2010-1217, § 1(Exh. A), adopted Aug. 16, 2010, amended Ch. 6.08 in its entirety to read as herein set out. Former Ch. 6.08, §§ 6.08.010—6.08.420, was entitled "Gaming Rooms" and derived from: 1959 Code §§ 3657.1—3657.13; Ord. No. 559; Ord. No. 1040; Ord. No. 1040-A; Ord. No. 1155, § 1, 2007; and Ord. No. 2009-1197, § 1, adopted Apr. 6, 2009.

For the purposes of this chapter, unless otherwise apparent from the context, certain words and phrases used in this chapter are defined as follows:

"Applicant" means any person wishing to be approved by the city for a license or other ownership interest in a gaming establishment.

"Bureau" means the Bureau of Gambling Control with the Office of the California Attorney General.

"City manager" means the City Manager for the City of Delano or his/her designee.

"Commence" means and include commence, begin, initiate, start, open, and establish.

"Commission" in this chapter shall mean the California Gambling Control Commission established by the California Gambling Control Act (Business and Professions Code §§ 19800 et. seq.).

"Conduct" shall mean to conduct, transact, maintain, prosecute, practice, manage, operate, and/or carry on.

"Convenience dealers" are employees of the gaming establishment that are provided for the convenience of the players so that no player deals.

"Conviction" means a plea or verdict of guilty or a conviction following a plea of no contest.

"Employee" means every person who enters into an employment relationship or a contractual relationship with a gaming establishment, who acts under the direction of such gaming establishment, and performs services for such gaming establishment on the premises of such gaming establishment. Any persons whose work on the premises of such gaming establishment is transient in nature and/or whose work is performed as an independent contractor in a manner wherein such independent contractor is separately responsible for its own obligations and the gaming establishment has no direction or control over the method or manner by which such work is performed shall be excluded from this definition of employee. By way of example, and not limitation, delivery persons, construction workers, gardeners, suppliers, vendors, repair persons, as well as retained professionals such as attorneys and accountants shall be excluded from this definition of employee.

"Game" or "games" means any controlled game permitted under state law, whether or not such game involves the use of cards.

"Gaming establishment" means a business or enterprise licensed under the provisions of this chapter for the playing of a game or games.

"Gaming floor" shall mean that portion of the gaming establishment where games are conducted including without limitation that space within four feet from the edge of any table on which a game is being conducted within the same room.

"Gross revenue of the gaming establishment" means and includes collection fees and any and all other table generated revenues of any type or nature from a game paid to the gaming establishment. Subject to the limitations set forth in Subsections 6.08.330.F.3. and 4., gross revenue of the gaming establishment shall not include money received for, set aside for, allocated to, or paid in cash or prizes to players (or in the case of a charity tournament, to the designated charity) including, but not limited to, tournament prize pools or jackpots. By way of example, and not limitation, revenues generated from restaurant and/or alcohol sales shall not be included in gross revenue of the gaming establishment.

"License" means a license for operating a gaming establishment.

"Operating table" means any card table located on the gaming floor of a gaming establishment that is available for public use for games.

"Owner" means every person, firm, association, partnership, corporation, or other entity having a controlling interest, whether legal, equitable, or of whatsoever kind or character, in any gaming establishment that has been subject to an investigation prior to the issuance of a license by the chief of police or his/her designee.

"Player" means and includes a participant in a game in a gaming establishment.

"Pointholder" means every person, firm, association, partnership, corporation, or other entity having any ownership interest, whether legal, equitable, or of whatsoever kind or character, in any gaming establishment. As used in this definition, "ownership interest" shall include the receipt of points by hypothecation or holding points in trust for another.

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

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

"Work permit" means the permit required by the city, and issued to persons who have met the criteria established by the city, without which a person cannot be an employee.

(Ord. No. 2010-1217, § 1(Exh. A), 8-16-2010)

There shall be no more than five licenses in the city at any one time. There shall be no more than twenty-five operating tables in the city at any one time. No gaming establishment may be licensed to operate more than twenty-five operating tables. A gaming establishment shall obtain approval from the city council prior to expanding the number of operating tables allowed by their initial and/or current license. In addition, each gaming establishment shall be permitted to have instructional tables at which no wager of anything of value shall be permitted. Such instructional tables shall be subject to the provisions of Section 6.08.260 of this chapter.

(Ord. No. 2010-1217, § 1(Exh. A), 8-16-2010)

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

B. No application form for a license for the conduct of any game and/or gaming establishment under this chapter shall be furnished by the city manager, nor shall any application for any such license be received and filed by the city manager, nor shall the city manager be required to process any such application, nor shall a public hearing on the application be conducted when the number of current and valid licenses for the conduct of such game in the city, when added together, shall total the sum provided for in Section 6.08.020 of this chapter.

(Ord. No. 2010-1217, § 1(Exh. A), 8-16-2010)

A. Any person desiring or proposing to commence or conduct any business, activity, enterprise, or undertaking designated, specified, or referred to in this chapter for the playing of games shall file with the city a written application for a license as required by the provisions of this chapter. Each such application shall contain and clearly and truthfully, under oath or affirmation, set forth and show, in addition to such other information as the city may require, the following information:

1. The date of the application;

2. The true name of the applicant;

3. The status of the applicant as being an individual, firm, association, partnership, 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, business address, and capacity of each of the partners or members of the firm, partnership or joint venture and/or the name, residence, business address, and capacity of each of the officers and directors of the association or corporation applicant;

6. The location of the business for which the license is sought;

7. The number of operating tables to be placed, employed, or used for the playing of games;

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

9. A description of the building in which the business proposed to be licensed is to be housed, giving the dimensions and floor plan of the entire premises;

10. A statement that such building conforms to all the laws of the state and the city for occupancies of the nature proposed;

11. 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, other city officials, or their representatives.

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

13. A statement that the applicant has read the provisions of this chapter and understands the same;

14. A full and complete financial statement of the applicant or, if the applicant is other than an individual, a full and complete financial statement of all pointholders; provided, however, the financial statement required by this subsection shall be a confidential qualified document, shall not be open to public inspection, shall be exempt from disclosure under the California Public Records Act, and shall be available only to those city officials having direct jurisdiction over the provisions of this chapter, to those state officials having jurisdiction over gaming establishments pursuant to the California Gambling Control Act, and to any court of competent jurisdiction where any matter relating thereto may be actually pending; and

15. Such other information as may be required by the city.

B. Concurrently with the filing of the application, the applicant, including all pointholders, shall be fingerprinted and photographed by the chief of police or his designee and pay the applicable fees.

C. Notwithstanding any provisions to the contrary in the Delano Municipal Code or zone ordinance, gaming establishments shall not be operated except in the GC, AP, CRC or I zone districts subject to a conditional use permit.

D. Separation and distance requirements.

1. No gaming establishment shall be established within five hundred feet of any established church, school, public library, public park, or youth and family activity center, or within one thousand feet of any established residentially zoned property or any other gaming establishment.

2. The distance between any two gaming establishments shall be measured in a straight line, without regard to intervening structures, from the closest exterior structural wall of each business. The distance between any gaming establishment and church, school, public park, or other designated institution, or residentially zoned property shall be measured in a straight line without regard to intervening structures from the closest exterior structural wall of the gaming establishment to the closest property line of the church, school, public park or residentially zoned property.

E. The city council may, in its discretion, issue the license, subject to such conditions as it deems reasonable, or refuse to issue the license. The city council shall be the sole judge of the sufficiency of whether the issuance or denial of the license is detrimental to the public interest and to the public health, morals, general welfare or the public peace. The decision of the city council shall be final.

F. Lighting in parking lots. Lighting shall be required which is designed to illuminate all off-street parking areas serving such use for the purpose of increasing the personal safety of patrons and reducing the incidence of vandalism and theft. Said lighting shall be shown on the required plot plans and shall be reviewed and approved by the police and planning departments.

G. Gaming establishments may operate twenty-four hours a day.

(Ord. No. 2010-1217, § 1(Exh. A), 8-16-2010)

A. Investigations required. Whenever an application has been filed with the city manager for a license pursuant to the provisions of this chapter, the city manager shall immediately cause an investigation to be conducted as follows:

1. An investigation of the building and location where the applicant proposes to conduct such business or activity;

2. An investigation of the applicant and all pointholders;

3. An investigation as to the type of operating tables to be used at, or in conjunction with, the proposed business and the proposed locations of the operating tables within, or about the proposed place of business; and

4. Such other information as deemed necessary.

B. Reports required. The city manager shall make such investigations with reasonable promptness and shall report to the council with reference thereto in due time.

(Ord. No. 2010-1217, § 1(Exh. A), 8-16-2010)

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

B. License conditions. Any such License granted by the council shall be subject to all of the terms, conditions, and provisions of this chapter as well as all laws of the city, state, or federal governments and such additional rules, regulations, terms, and conditions, if any, as the council, in the exercise of its discretion, may see fit to promulgate, determine, or prescribe for the particular license applied for.

C. Decision of the council final. The decision of the council shall be final and conclusive.

(Ord. No. 2010-1217, § 1(Exh. A), 8-16-2010)

The council may deny or void any license under the provisions of this chapter in any of the following cases:

A. If the applicant has been denied a valid state gambling license issued by the commission pursuant to the Gambling Control Act;

B. If the proposed business or activity to be operated is in violation of any federal, state, or city law or regulation;

C. If any applicant has been convicted of any crime punishable as a felony;

D. If any applicant has engaged in bookmaking, loan sharking, or illegal gambling activities or has been convicted of an offense involving such activities;

E. If any applicant has made any false statement in the application or as to any other information presented as part of the application process;

F. If the game for which a license is applied for is unlawful;

G. If a license is not available;

H. If the building in which the business or activity proposed to be conducted does not meet the requirements of new buildings of like occupancy; or

I. If the building or premises do not comply with the established requirements and regulations relating to building safety, zoning and fire within the city.

(Ord. No. 2010-1217, § 1(Exh. A), 8-16-2010)

If the action of the council on any such application is to grant the license, the city manager may issue the necessary license and renewals of the license upon the payment of the required fees therefor until such time as such license is surrendered, suspended, or revoked.

(Ord. No. 2010-1217, § 1(Exh. A), 8-16-2010)

A. Licenses issued under the provisions of this chapter shall be and remain valid until either surrendered by the owner, suspended by the city manager, suspended or revoked by the council, or expiration pursuant to Section 6.08.330.E. of this chapter.

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

(Ord. No. 2010-1217, § 1(Exh. A), 8-16-2010)

All licenses authorized and issued under the provisions of this chapter shall be subject to, and accepted as subject to:

A. Immediate suspension by the city manager until a decision is rendered by the council pursuant to Subsection B. of this section. The matter of such suspension shall be submitted to the council at the first meeting following such action. A license may be immediately suspended if the city manager finds that:

1. The commission has suspended or revoked an owner's state gambling license pursuant to the Gambling Control Act; or

2. An owner, has violated or permitted, allowed, or caused the violation of, any provision of this chapter, any regulation issued pursuant to this chapter, any condition of approval imposed upon the issuance of the license, or any state law or regulation relating to the operation of a gaming establishment, and the continued operation of the gaming establishment jeopardizes, or threatens to jeopardize, the public health, safety, or general welfare.

B. Suspension or revocation by the council after a public hearing held after not less than five days' notice to the owner and after testimony has been taken by the owner and/or any other interested person if the council finds that:

1. The commission has suspended or revoked an owner's state gambling license pursuant to the Gambling Control Act; or

2. An owner, has violated, or permitted, allowed, or caused the violation of, any provision of this chapter, any regulation issued pursuant to this chapter, any condition of approval imposed upon the issuance of the license, or any state law or regulation relating to the operation of a gaming establishment; or

3. An owner 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; or

4. An owner commits any act which would have constituted grounds for the denial of an application for a license pursuant to Section 6.08.070 of this chapter; and

C. The decision of the council shall be final and conclusive. In the event of the suspension or revocation of a license, no part of any license fee previously paid shall be refunded.

D. The revocation or suspension of any license shall not preclude the city from issuing further licenses in accord with this chapter and state law and nothing herein shall act to diminish the total number of licenses available in the city as is set forth in Section 6.08.020.

(Ord. No. 2010-1217, § 1(Exh. A), 8-16-2010)

No license shall be transferred or assigned in whole or in part, either as to the owner or location of the business, without the prior approval of the city. The owner shall notify the city manager of the possibility of such transfer or assignment concurrently with the commencement of negotiations for the same.

(Ord. No. 2010-1217, § 1(Exh. A), 8-16-2010)

No person shall become pointholders in a gaming establishment without receiving prior approval from the council and the approval of the commission.

(Ord. No. 2010-1217, § 1(Exh. A), 8-16-2010)

A. Persons wishing to become pointholders shall, prior to acquiring an ownership interest in any gaming establishment, file an application with the city manager on a form approved by the city attorney.

B. The application shall include a full financial statement and be accompanied by a nonrefundable fee which shall be used to cover the costs of investigation.

C. The application shall include the pointholder applicant's photograph and fingerprints taken by the chief of police or his designee.

D. The city manager shall investigate such pointholder applicant and recommend to the council the approval or denial of such application; and the council's decision shall be final and conclusive.

E. The council may deny an application to become a pointholder in the following cases:

1. If the pointholder applicant has been convicted of any crime punishable as a felony;

2. If the pointholder applicant has engaged in bookmaking, loan sharking, or other illegal gambling activities or has been convicted of an offense involving such activities; or

3. If the pointholder applicant has made any false statement in the application or as to any other information presented as part of the application process.

4. If the pointholder applicant has been denied a gaming license by the commission in the past.

F. If a pointholder applicant has applied to the commission for approval of its pointholder application, but such application is still pending, the counsel may grant approval of a pointholder application conditioned on such pointholder applicant receiving approval from the commission; provided that such pointholder applicant not share in revenues from the gaming establishment or exercise any ownership control over the gaming establishment until such pointholder applicant provides proof to the city of such approval by the commission.

(Ord. No. 2010-1217, § 1(Exh. A), 8-16-2010)

• Pointholders: Notices of acquisition of points and transfers and assignments thereof.

No ownership interest in a gaming establishment shall be acquired, transferred, or assigned by previously approved pointholders without giving notice of such acquisition, transfer or assignment to the city manager within five days after the consummation of such transaction. "Notice," as used in this section, shall be made on a form approved by the city attorney and shall contain all the information requested therein. It shall be the responsibility of both the previous pointholder and the new pointholder to ensure that such form is filed. Failure to file a completed form in a timely manner shall be a violation of this chapter, and the previous pointholder and new pointholder shall be subject to the penalties contained in this chapter.

(Ord. No. 2010-1217, § 1(Exh. A), 8-16-2010)

A. The approval of a pointholder may be revoked by the council after a hearing held not less than thirty days after notice has been given to the pointholder if the council finds that:

1. The commission has suspended or revoked an pointholder's state gambling license pursuant to the Gambling Control Act; or

2. A pointholder has violated, or permitted, allowed, or caused the violation of, any provision of this chapter, any regulation issued pursuant to this chapter, any condition of approval imposed upon the issuance of the license, or any state law or regulation relating to the operation of a gaming establishment; or

3. A pointholder has made any fraudulent statement as to a material fact on an application form or as to any other information presented as part of this application process; or

4. A pointholder commits any act which would have constituted grounds for the denial of approval pursuant to Section 6.08.130 of this chapter.

B. The council, in making its decisions, shall consider any mitigating factor presented by the pointholder. The decision of the council shall be final.

C. The ownership interest shall be divested within one hundred twenty days after the notice of revocation. Failure to do so shall constitute a misdemeanor, and each day of noncompliance shall constitute a separate and complete offense. In addition, the city attorney may invoke appropriate civil remedies to enforce compliance.

D. No person required to divest an ownership interest in a gaming establishment following a revocation of approval shall transfer such ownership interest to his or her spouse, child, sibling, or parent or to his or her spouse's child, sibling, or parent without the approval of the council.

(Ord. No. 2010-1217, § 1(Exh. A), 8-16-2010)

Any person wishing to become an employee shall first obtain a work permit from the city. No gaming establishment shall employ, in any capacity on the premises of the gaming establishment, any person not having a work permit issued by the city. Work permits shall not be transferred or assigned.

(Ord. No. 2010-1217, § 1(Exh. A), 8-16-2010)

A. Any person wishing to obtain a work permit shall file with the chief of police a work permit application form approved by the city attorney. The form shall be complete in all respects and shall be accompanied by the payment of the applicable fees. The chief of police, or his designee, shall obtain such person's photograph and fingerprints and shall process the work permit application form and complete a fingerprint based criminal history background check by the department of justice and may approve, conditionally approve, or deny such work permit. The chief of police shall not approve a work permit in the following cases:

1. Failure of the work permit applicant to clearly establish eligibility and qualification;

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

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

4. Conviction of the work permit applicant for any misdemeanor involving dishonesty or moral turpitude within the ten-year period immediately preceding the application for the work permit, unless the employee applicant has been granted relief pursuant to Sections 1203.4, 1203.4a, or 1203.45 of the Penal Code;

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

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

7. The work permit applicant is less than twenty-one years of age;

8. The work permit applicant has engaged in bookmaking, loan sharking, or other illegal gambling activities or has been convicted of an offense involving such activities; or

9. The bureau or the commission objects to the issuance of the work permit.

B. If a work permit is denied, the work permit applicant may appeal such denial by written notice to the city manager, who shall appoint a hearing officer and shall cause a hearing to be held within thirty days after such notice. The hearing officer may approve, conditionally approve, or deny such appeal. The hearing officer's decision shall be final and conclusive. The cost of such hearing shall be borne by the work permit applicant.

C. For a period of not more than ninety days from the date a work permit application is accepted by the police chief for processing, a conditional work permit may be issued. The police chief may issue the conditional work permit based on an affidavit, signed under penalty of perjury, from the applicant that they are not subject to any of the circumstances listed in Section 6.08.170.A.1—9, above. The conditional work permit shall expire after ninety days, regardless of the processing time necessary to complete the background check by the department of justice. No appeal or extension of the conditional work permit shall be granted.

(Ord. No. 2010-1217, § 1(Exh. A), 8-16-2010; Ord. No. 2019-1310, § 1(Exh. A), 11-18-2019)

A. A work permit may be suspended or revoked under the following circumstances:

1. The commission of any act which would have been grounds for the denial of a work permit pursuant to Subsection 6.08.170.A. of this chapter; or

2. The violation of any condition imposed in granting such work permit.

B. The work permit may be immediately suspended by the chief of police if the offense is such to cause an immediate threat to the public health, safety or general welfare. Such immediate suspension shall remain in effect for seven days or until a final decision is rendered by a hearing officer appointed by the city manager, whichever occurs first.

C. The hearing officer may suspend or revoke a work permit after a hearing following five days notice to the employee. The employee shall be permitted to submit any relevant evidence to the hearing officer. The decision of the hearing officer shall be final, and all costs of the hearing shall be borne by the employee.

(Ord. No. 2010-1217, § 1(Exh. A), 8-16-2010)

A. Within five days after employing any person, the gaming establishment shall notify the chief of police of such person's employment status.

B. Each such employee, unless specifically exempted by the chief of police, at all times after issuance of a work permit, while acting within the scope of his employment, on the business premises where games are conducted, shall wear in a prominently visible place upon his person an identification badge in a form prescribed by the chief of police, such badge bearing the name, work permit number, and photograph of the employee. It shall be a violation of this chapter to fail to wear such badge when required, and any such failure shall be cause for penalties to be imposed upon the employee, the owner, or both under Section 6.08.410.

(Ord. No. 2010-1217, § 1(Exh. A), 8-16-2010)

A. Alcoholic beverages may be sold, dispensed, consumed or permitted in gaming establishments in accordance with the applicable state and local laws and regulations and only after the club obtains a conditional use permit from the city.

B. Alcoholic beverages shall not be brought into the gaming establishment by patrons.

C. No on-duty employee of a gaming establishment shall consume alcoholic beverages while discharging their duties in the course of their employment.

D. No complimentary or reduced price alcoholic beverages shall be offered by the gaming establishment on a preferred basis to patrons participating in a game or as an inducement to participate in a game.

E. No owner or other person in charge or control of any game shall permit any person to play in any game at any time while such person appears to be, in the opinion of the owner or duly authorized agents or employees, obviously intoxicated or impaired due to the consumption of any alcoholic beverage or controlled substance.

F. No owner or other person in charge or control of any game shall permit any person to enter the premises while such person appears to be, in the opinion of the owner or duly authorized agents or employees, obviously intoxicated or impaired due to the consumption of any alcoholic beverage or controlled substance.

G. In addition to any other penalties for violations of this chapter as set forth in this Code or the laws of the state, it is the specific intent of the council that any violation of this section as it relates to the serving of alcoholic beverages in gaming establishments may be grounds for the immediate suspension and/or revocation of any license and/or permit issued pursuant to the provisions of this Code.

(Ord. No. 2010-1217, § 1(Exh. A), 8-16-2010)

No owner, employee, agent, or representative in charge or control of any gaming establishment shall permit or allow any person under the age of twenty-one years to be on the gaming floor of such gaming establishment.

(Ord. No. 2010-1217, § 1(Exh. A), 8-16-2010)

No owner, employee, agent, or representative in charge or control of any gaming establishment shall assign, arrange for, or in any other manner sublet any table, directly or indirectly, with or without consideration, to any unlicensed person to conduct a game.

(Ord. No. 2010-1217, § 1(Exh. A), 8-16-2010)

A. Wagers. There shall be no limit on the amount permitted in a single bet or wager, or in the maximum amount permitted to be wagered in a game. Nothing in this section shall prevent a gaming establishment from establishing betting or wagering limits in an amount lower than permitted by this section.

B. Collections. Collection fees for any game shall be collected in accordance with state law and shall be posted at each table. The amounts collected by convenience dealers as set forth in this section shall be segregated and secured by such dealers for collection purposes.

(Ord. No. 2010-1217, § 1(Exh. A), 8-16-2010)

A. Other than dealing the cards and making collections as set forth in this section, a convenience dealer shall not participate in any way in the game, shall not bet, and shall not take a percentage of the winnings, but shall be entitled to accept a tip or gratuity.

B. The convenience dealer shall collect the fixed fee as set forth in Subsection 6.08.230.B. of this chapter. Such dealers shall be clearly identifiable and shall adhere to whatever designation or identification standards as are required by the chief of police.

(Ord. No. 2010-1217, § 1(Exh. A), 8-16-2010)

Rules of play for all games, including tournaments, shall be approved in accordance with the California Gambling Control Act.

(Ord. No. 2010-1217, § 1(Exh. A), 8-16-2010)

The playing of all games shall be confined to the gaming floor on the first floor, or the ground floor, of each gaming establishment, and no playing of any game shall be permitted at any other location on such gaming establishment premises without the prior consent of the chief of police or his designee.

(Ord. No. 2010-1217, § 1(Exh. A), 8-16-2010)

Requests for entertainment in a gaming establishment shall be submitted to the city manager for review and approval. All requests shall state with specificity the type of entertainment desired, the hours for such entertainment, and any other information requested by the city manager. The city manager's decision to approve, approve with conditions, or deny a request for entertainment shall be subject to review by the city council. The city manager and/or city council may suspend, revoke, or recondition such permit at any time.

(Ord. No. 2010-1217, § 1(Exh. A), 8-16-2010)

All gaming establishments shall be open for inspection during all hours to the chief of police, or his duly authorized representatives, without a search warrant.

(Ord. No. 2010-1217, § 1(Exh. A), 8-16-2010)

A gaming establishment shall establish written check cashing policies that shall comply with state law.

(Ord. No. 2010-1217, § 1(Exh. A), 8-16-2010)

A. A gaming establishment may only establish and maintain a player's bank in accordance with the California Gambling Control Act. Only cash may be held; no other valuables, including coins or paper money worth more than face value, may be held.

B. Money deposited shall be secured by cash or other liquid assets or a security bond. Such security shall be sufficient to cover all money deposited.

C. Money may be deposited and withdrawn only by the person named on the account or their designee with prior written approval. Accurate records of all deposits and withdrawals shall be kept for a period of not less than two years. No person shall hold more than one account at any one gaming establishment.

D. The actual deposits held and the records of all transactions shall be available for inspection by the city manager upon demand.

(Ord. No. 2010-1217, § 1(Exh. A), 8-16-2010)

A. It is unlawful to cheat at any game in a gaming establishment.

B. It is unlawful for any person to knowingly aid or abet another in any cheating action.

C. The provisions of California Penal Code Sections 337t, 337u, 337v, 337w, 337x, 337y and 337z, shall apply to all games and all gaming establishments.

(Ord. No. 2010-1217, § 1(Exh. A), 8-16-2010)

A. A gaming establishment may exclude or eject from the premises any person who: (1) has been engaged in or been convicted of bookmaking, loan sharking, the illicit sale of controlled substances, or illegal gambling activities; (2) who has been included on a self-exclusion or other problem gambler list kept by the gaming establishment, chief of police, bureau or commission; or (3) whose presence in or about such gaming establishment would be inimical to the interests of legitimate gaming. No person shall be excluded or ejected on the grounds of race, color, creed, religion, national origin, gender, age, sexual orientation, or handicap, or other protected class as determined under state of federal law.

B. Any person excluded by a gaming establishment may appeal to the city manager as to whether the conditions for exclusion set forth in Subsection A. of this section are applicable. The city manager shall appoint a hearing officer who shall conduct a hearing at which time both the person excluded and the gaming establishment may present evidence. The decision of the hearing officer shall be final. The appellant shall reimburse the city for the cost of holding such hearing in an amount determined by the hearing officer unless the hearing officer determines that such exclusion is not justified under the circumstances and in that case the gaming establishment shall reimburse the city for the cost of holding such hearing in an amount determined by the hearing officer.

(Ord. No. 2010-1217, § 1(Exh. A), 8-16-2010)

The fees set forth in this chapter are for both regulation and revenue purposes. All fees shall be nonrefundable and shall not be prorated unless otherwise specified. In addition to the fees set forth in this section, the applicant shall reimburse the city for any reasonable and necessary expenses over and above such fees as provided for herein. Each application shall be accompanied by the following fees and deposits and no application shall be accepted unless so accompanied:

A. Licenses. A nonrefundable application fee of ten thousand dollars which shall be retained by the city for the payment of the costs of investigation;

B. Pointholder applications. A fee of two thousand five hundred dollars per principal;

C. Pointholder transfers and assignments. A fee of fifty dollars;

D. Employee work permits. A deposit fee of one hundred sixty-five dollars shall be made to defray actual cost of the required application and investigation. Any actual cost above the one hundred sixty-five dollar deposit shall be billed to the applicant and any unused portion of deposit will be refunded.

E. Quarterly License fees.

1. Amount. The council hereby determines that all licenses shall be renewed quarterly on January 1, April 1, July 1, and October 1 of each calendar year, and a quarterly table license fee of five hundred dollars per operating table shall be paid quarterly in advance.

2. New applications. In the case of a new application, a nonrefundable license fee of five hundred dollars per table per quarter covering the first two quarterly payments shall be paid in advance to the city when the license is issued. Such advance fee shall be payable as a condition precedent to the issuance of the license.

3. Nonrefundable. Except as provided for herein (see Subsection D. of this section), all fees referred to in this subsection shall become the absolute property of the city and shall be nonrefundable, nor shall such fees be prorated in any manner whatsoever.

4. Late payment/loss of licenses. Failure to pay such quarterly license fees within fifteen days of when such payment is due shall result in a late fee equal to five percent of the quarterly license fee then due. The failure to pay such quarterly license fees within ten days after notice issued by the city to pay such license fees (accompanied by the payment of late fees described herein) shall constitute grounds for the loss of a license. The operation of a gaming establishment without a valid license shall be a violation of law.

F. Gross revenue license fees.

1. Schedule of fees. In addition to the quarterly license fees set forth in Subsection E. of this section, each gaming establishment shall pay to the city a monthly fee, based upon the total monthly gross revenue of the gaming establishment, according to the following schedule:

2. Tournaments. Should any tournament be held, a gaming establishment shall segregate any funds received from the players into a prize pool and an entry fee. The prize pool shall be distributed to the players (or in the case of a charity tournament, to the designated charity) in accord with the approved rules of the tournament. The entry fee shall be paid to the gaming establishment to offset the costs of providing the tournament and shall be included as part of the total monthly gross revenue of gaming establishment set forth in Subsection 1. of this subsection. Any amounts voluntarily contributed by tournament players in a tournament that will be paid as a gratuity to tournament staff shall not be considered a part of the entry fee for purposes of this section.

3. Statements of revenue. Each gaming establishment shall file with the city manager a statement of daily revenue, under oath, on or before the tenth day of each calendar month, showing the true and correct amount of gross revenue of the gaming establishment for the preceding calendar month. All required statements shall be provided on forms approved by the city manager. Such statements 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 the matters referred to in the statement and to determine the correctness of the figures set forth in such statement and the amount payable to the city pursuant to the provisions of Subsection 1. of this section. In addition to the foregoing, a certification shall be attached to the statement, or included therein, and signed by an owner or appropriately licensed designee, which certification or declaration shall be substantially in the following form:

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

_____ "Owner"

4. Promotions and jackpots. The gaming establishment shall include in the monthly report provided for in Subsection 3. above, an accounting of monies set aside, allocated to, or paid in connection with each and every promotion including, without limitation, bad beat jackpots, money added to tournament prize pools by the gaming establishment, high hand prizes, or any other promotion approved by the bureau ("promotions allocation"). Within twenty days of the end of the gaming establishment's fiscal year, each gaming establishment shall file with the city manager an annual promotions report with an accounting of the promotions allocation for the prior twelve months. This annual promotions report shall account for that portion of the promotions allocation in the prior twelve months that: (a) was not subject to the gross revenue license fee set forth in Subsection F.1. of this section; and (b) exceeded twenty percent of the collection fees and any and all other table generated revenues of any type or nature from a game paid to the gaming establishment in the prior twelve months ("excess promotions amount"). The gaming establishment shall pay a gross revenue license fee on the excess promotions amount at a rate that is equal to the highest monthly rate paid by the gambling establishment, as set forth in Subsection F.1. of this section, in the prior twelve months. The payment of such gross revenue license fee on the excess promotions amount shall accompany the annual promotions report. Although such information need not be included in any report referenced in this Subsection 4., a gaming establishment shall maintain records of the persons or entities receiving any and all promotions allocation monies or prizes and such information shall be available for inspection by city in accord with the audit provisions set forth in this chapter. The tournament prize pools funded by players referenced in Subsection F.2. above, shall not be included in the calculation of the excess promotions amount.

(Ord. No. 2010-1217, § 1(Exh. A), 8-16-2010; Ord. No. 2015-1273, § 1(Exh. A), 4-20-2015)

When renewing licenses quarterly, as set forth in Subsection 6.08.330.E. of this chapter, gaming establishments shall file with the city manager a quarterly report on a form approved by the city attorney. Such report shall contain, as a minimum, the following information:

A. A list of all pointholders with the amount of points held; and

B. A list of all employees with their work permit numbers. Owners shall be responsible for the accuracy of such reports, and licenses shall be renewed conditionally pending the review and certification of such reports by the city manager.

(Ord. No. 2010-1217, § 1(Exh. A), 8-16-2010)

A. The books, records, and accounts relating to the gross revenues of the gaming establishment shall be audited at the end of the gaming establishment's fiscal year by a certified public accountant. The report of such accountant and all work papers utilized in the preparation of such audit shall be submitted to the city manager, with a copy to the finance director. The city manager shall review the report and work papers and may require any further information from the gaming establishment. The city manager may submit such documents and information to a certified public accountant selected by the city.

B. The city may require, at any time, an audit of the gross revenues of the gaming establishment by a certified public accountant selected by the city. Such audit shall be in addition to the audit mentioned in the preceding paragraph. Any inaccuracy found in the revenues previously reported to the city shall be adjusted accordingly. If such additional audit shall disclose an inaccuracy of greater than two percent error in favor of the city with respect to the gross revenues reported by the gaming establishment for the period of such audit, the cost of such audit shall be paid to the city by the gaming establishment.

C. Nothing set forth in this section shall limit the city's right at any time to inspect or audit the books, records, and accounts of any gaming establishment relating to items other than gross revenues.

(Ord. No. 2010-1217, § 1(Exh. A), 8-16-2010)

A. Unlawful locations. It is unlawful for any person to play in, or permit the playing of, any game regulated or referred to by the provisions of this chapter at any place within the city, except a place licensed pursuant to the provisions of this chapter.

B. Unlawful games. It is unlawful for any person to play in, or permit the playing of, any game at any place licensed pursuant to this chapter which game is not permitted by the provisions of this chapter or regulations issued pursuant thereto, or in any game played in violation of this chapter.

C. Unlawful activities. It is a violation of this chapter for any owner to knowingly permit any unlawful activity to take place upon the premises of the gaming establishment or to fail to take reasonable steps to prevent such activities from taking place.

(Ord. No. 2010-1217, § 1(Exh. A), 8-16-2010)

A. Gambling places prohibited. It is declared unlawful for any person not licensed under this chapter to keep, conduct, or maintain within the city, or knowingly to permit any house, room, apartment, or place owned or under the charge or control of that person in the city, where any game not approved by the bureau, is played, conducted, dealt, or carried on with cards, dice, or other devices for money, checks, chips, credit, or any other representation of value.

B. Playing or betting prohibited. It is declared unlawful for any person to play or bet at or against any game not approved by the bureau at any place within the corporate limits of the city.

C. Visiting gambling places. It is unlawful for any person to knowingly visit any location wherein gambling as prohibited by this section is being conducted or maintained.

D. Exceptions. Subsections A. and B. of this section shall not apply to bingo conducted in accordance with the Penal Code of the state and this Code or to any game conducted pursuant to this chapter.

(Ord. No. 2010-1217, § 1(Exh. A), 8-16-2010)

Owners may be held liable for violations of this chapter, including all conditions, rules, and regulations issued pursuant thereto, including any violations committed by employees of such owner when such owner had prior knowledge of the act of the employee and took no steps to prevent the act or participated in the act.

(Ord. No. 2010-1217, § 1(Exh. A), 8-16-2010)

All applications, personal history statements, and financial information filed by an applicant, owner, licensee, pointholder, or employee shall be confidential and accessible only to members of the council and their designees, or as otherwise required by the Public Records Act or by law.

(Ord. No. 2010-1217, § 1(Exh. A), 8-16-2010)

Violations of this chapter, including any conditions, rules, or regulations issued pursuant thereto, shall be punishable as follows:

A. As a misdemeanor, prosecutable by the city attorney or the district attorney, and punishable by imprisonment not to exceed six months in jail and/or by a fine not to exceed five hundred dollars; and/or

B. By revocation of the license or permit as specified in this chapter; and/or

C. By suspension of the license or permit as specified in this chapter.

(Ord. No. 2010-1217, § 1(Exh. A), 8-16-2010)

The provisions of this chapter providing for the payment of license fees, and the provisions allowing the licensing of a game, shall not be severable one from the other. Should the requirements of this chapter relating to the payment of license fees, as set forth in this chapter or as subsequently amended, be held to be invalid or unenforceable for any reason by the final judgment of a court of competent jurisdiction, then this chapter in its entirety shall, at the city's option, thereupon become null and void, and the licenses issued pursuant to this chapter shall likewise become null and void, and the playing of any game within the city shall thereupon become unlawful to the same extent as such playing was unlawful prior to the adoption of this chapter.

(Ord. No. 2010-1217, § 1(Exh. A), 8-16-2010)