Fresno Municipal Code Art. 21 Card Room Permit Regulations

This article shall be known as the City of Fresno Card Room Ordinance.

(Added Ord. 94-50, § 2, eff. 8-19-94).

The Council finds and determines as follows:

(a) That the city's current card room ordinance as set forth in Sections 8-101 through 8-106.5 of the Fresno Municipal Code [4] needs to be replaced by an ordinance that expands permitted games, authorizes an increase in the number of card tables permitted at any one address, limits the number of card rooms, contains strict regulations in time, place, and manner for operation of card rooms, and allows the city to receive revenues from the operation of such card rooms.

(b) That an ordinance closely regulating card room operations within the City of Fresno is necessary to protect the interest of the citizens of Fresno.

(c) That any card room, if permitted, shall be confined to certain zoning districts as identified in Chapter 15, the Citywide Development Code.

(d) That the city's continued limitations on the number and location of card room operations will minimize any detrimental effect from the physical presence of card rooms in the city.

(e) That due to social problems inherent in legal gaming activities, based on the foregoing findings and for the welfare of the community, said ordinance shall permit not more than 51 card tables within the City. No card room shall have less than ten card tables per card room or more than 51 card tables per card room. No temporary gaming tables will be permitted in a cardroom for any purpose including, but not limited to, instruction, special events or tournaments.

(Added Ord. 94-50, § 2, eff. 8-19-94; Am. Ord. 98-39, § 1, eff. 7-20-98; Am. Ord. 2003-51, § 1, eff. 7-28-03; Am. Ord. 2012-16, § 1, eff. 9-2-12; Am. Ord. 2021-004, § 1, eff. 3-7-21).

Footnotes:

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Editor's note— This reference was made under the 1955 Code to a nonexistent code provision.

(a) "Applicant" shall mean every "person", as defined under this Code in Chapter 1, Article 2, filing an application with the city seeking a card room permit or any other permit required under this article.

(b) "Beneficial Interest" shall mean that interest in a card room held by the beneficiaries of a trust which, as part of the corpus thereof, holds a financial interest in such card room.

(c) "Card Playing Area" means one or more rooms within a Card Room where any gaming occurs.

(d) "Card Room" shall mean any building or structure, or portion thereof, for which a card room permit is obtained and in which legal gambling or gaming is conducted. The term shall include any restaurant, bar, assembly room, meeting room or office which is a part of or appurtenant to the room or rooms in which legal gambling or gaming is conducted. The term shall also include the business of operating the card room and those business enterprises which are a part thereof.

(e) "Card Table" shall mean any table or any other surface upon which any game is played.

(f) "Commence" shall mean and include the terms "commence", "begin", "initiate", "start", "open" and "establish".

(g) "Conduct" shall mean and include the terms "conduct", "transact", "maintain", "prosecute", "practice", "manage", "operate", "permit", "allow", "suffer" and "carry on".

(h) "Conviction" or "Convicted" shall mean a plea of guilty, a final verdict of guilty or a conviction following a plea of nolo contendere.

(i) "Council" shall mean the Council of the City of Fresno.

(j) "Day" shall mean "calendar day" unless otherwise expressly stated.

(k) "Employee" means every person, who acts either as agent or employee of the permittee or under the direction of the permittee of any card room. A management corporation is an employee for purposes of this article.

(l) "Filing and Processing Fees" shall mean the imposition, pursuant to this article and/or any resolution of the Council, of fees and/or deposits to be used for the purpose of reimbursing the city for its costs of administering the provisions of this chapter.

(m) "Financial Interest" means any direct or indirect financial interest in the management, operation, ownership, profits or revenue (gross or net) of a card room. A direct financial interest means a monetary investment in a card room. An indirect financial interest means owning one percent (1%) or more of any entity, i.e., any business, corporation, joint venture partnership or trust that in turn has a direct financial interest in a card room.

(n) "Game" shall mean legal gambling or gaming as defined below.

(o) "Gross Revenue" means and includes seat rental fees, membership fees, table revenues, rental fees and charges, and any and all other gaming revenues derived from activities conducted on or within the card room premises.

(p) "Key Management Employee" shall mean (1) any person, whether or not such person is a named officer or director of the permittee, with the power to (i) direct operations and (ii) direct and supervise several employees of a card room; (2) any person with the actual or apparent authority to direct the counting of revenue generated by the card room, and (3) any person employed or engaged by the permittee to manage the card room.

(q) "Legal Gambling" or "Gaming" shall mean any card game played for currency, check, or any other thing of value which is not prohibited and made unlawful by Chapter 9 (commencing with Section 319) or Chapter 10 (commencing with Section 330) of Title 9 of Part 1 of the Penal Code or by this article.

(r) "Lease" means any formal or informal, written or oral contract or understanding or arrangement whereby any person operating a card room obtains the use or possession of any property, real or personal, to be used, occupied, or possessed in connection with the conduct of games at any card room. The term "lease" includes without limitation, payments to an affiliated person under a real property lease, a personal property lease, an unsecured note, a deed of trust, a mortgage, or a trust indenture.

(s) "Lessor" means any person who leases any property, real or personal, to a person operating a card room for use in connection with the conduct of games or related activities.

(t) "Manager" shall mean any agent or employee of a permittee whose duties include but may not be limited to the following: The making or changing of policy, hiring or firing employees, and/or generally exercising independent judgment in the operation of the card room. A manager need not have a financial interest in the permittee.

(u) "Permit" shall mean a permit issued pursuant to this article allowing the operation of a card room.

(v) "Permittee" shall mean the person or entity to whom (which) a permit is issued.

(w) "Permit Fees" shall mean all fees levied upon each permittee pursuant to this article.

(x) "Physically Separated" means any room or area completely separated from the card playing area of a card room by walls which are at least six feet in height, except doors and entryways, provided each door and entryway is staffed with a uniformed security employee pursuant to Section 9-435(c) of this article. The room or area shall contain no card tables.

(y) "Playing Cards" or "Card Games" shall mean the participation in legal gambling or gaming at a card room.

(z) "Pointholder" shall mean any person having a financial interest or beneficial interest in the permittee as well as all stockholders of any entity having a financial interest or beneficial interest in the permittee.

(aa) "Premises" shall mean land together with all buildings, improvements, and personal property located thereon and related to card room use.

(bb) "Security Deposit" shall mean any security or deposit required by this article to ensure the prompt and full payment of any permit fees imposed by the city pursuant to this article.

(cc) "Satellite Wagering Facility" shall mean any area of a Card Room in which satellite wagering or parimutuel wagering is conducted pursuant to Section 9-2135(f) of this Code.

(dd) "Work Permit" shall mean a permit issued pursuant to this article authorizing a person to be an employee of a card room.

(Added Ord. 94-50, § 2, eff. 8-19-94; Am. Ord. 98-72, § 1, eff. 10-23-98; Am. Ord. 2009-12, § 10, eff. 5-1-09).

(a) It is the stated purpose of this article to regulate card rooms in the City of Fresno concurrently with the State of California, and to impose local controls and regulations upon card rooms as permitted in the "Gambling Control Act" as codified in Division 8, Chapter 5 of the California Business and Professions Code (commencing with Section 19800). All such references to the Gambling Control Act are to Division 8, Chapter 5 of the California Business and Professions Code, as may be amended.

(b) In conformance with State law, the playing of percentage games is impermissible. Any fees paid by patrons of card rooms shall not be tied to the amount of a player's bet, the size of the pot, winnings that may be collected or money that changes hands among the players at the table. (Added Ord. 94-50, § 2, eff. 8-19-94; Am. Ord. 2004-32, § 1, eff. 4-24-04).

(a) Each valid card room permit in effect on January 1, 1994 shall be permitted to continue operation so long as the card playing area, the number of tables, the games played, the location, the permittee, are not amended in any way.

(b) In the event a card room permittee described in subsection (a) of this section elects to play games that are played at card rooms permitted under Sections 9-2115 through 9-2117 of this article in addition to or in lieu of the games played at the card room prior to January 1, 1994, the card room shall in such event be subject to the provisions of Sections 9-2118 through 9-2139 of this article. (Added Ord. 94-50, § 2, eff. 8-19-95; Am. Ord. 95-96, § 1, eff. 12-29-95)

This article does not create any vested or other property right of any kind in any permittee, pointholder, key management employee, or other person. The city reserves the right to, at any time, amend, modify or repeal the provisions of this article and to otherwise regulate or prohibit any privilege exercised thereunder. This reservation includes but is not limited to the right of the city to amend, from time to time, a permit issued pursuant to the terms of this article by resolution of the Council. (Added Ord. 94-50, § 2, eff. 8-19-94).

It shall be unlawful for any individual to disclose to any unauthorized person any data or information required under the provisions of this article or other laws to be kept and maintained confidential. (Added Ord. 94-50, § 2, eff. 8-19-94).

It is the declared policy of the city that pointholders, key management employees, managers and employees apply for and be issued permits after an individual personal background investigation, and that the involvement of such persons be controlled so as to better protect the public health, safety, good order and public welfare.

(a) It shall be unlawful for any person or other entity to commence or conduct or purport to commence or 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 card games until such person shall have first obtained a card room permit and until such permittee has secured a card room operations certificate for the operation of such card games at specific premises.

(b) An applicant for a card room permit or other permit required under this article is seeking the granting of a privilege. Therefore, the burden of proving that all qualifications have been met to receive any such permit is at all times on the applicant. An applicant must accept all risks of adverse public notice, publicity, embarrassment, criticism, financial loss, or all other actions and consequences which may result from activities with respect to reviewing, processing, approving or disapproving any application, and, a waiver of any claims for damages against the city or its agents resulting therefrom shall be acknowledged upon the filing of an application.

(c) An applicant for a permit or permit pursuant to this article may claim any privilege afforded by the Constitution of the United States in refusing to answer questions by the city. However, a claim of privilege with respect to any testimony, evidence, or requested information pertaining to an application may constitute sufficient grounds for denial of any such permit or permit. (Added Ord. 94-50, § 2, eff. 8-19-94).

(a) Exempt organizations may provide card tables and card games for the exclusive use of their members and shall be exempted from obtaining a card room permit pursuant to this article as long as the exempt organization complies with the Gambling Control Act, all other state federal and local laws, and provided that such exempt organization complies with this section. All such card tables shall be for the exclusive use of members of the exempt organizations or nonpaying guests, and no charge is made for the use of the card tables.

(b) An authorized representative of the exempt organization shall file a Declaration of Exemption executed under penalty of perjury with the Controller that sets forth the name and address of the exempt organization, the number of tables to be operated, and a declaration that the exempt organization and its members qualify for exemption from the Gambling Control Act and from permitting hereunder; the Declaration of Exemption shall be accompanied by proof of the valid and unrevoked tax exempt status of the exempt organization granted by the Franchise Tax Board and/or the Internal Revenue Service. No registration fee shall be required.

(c) No exempt organization shall operate, conduct, or carry on legal gaming within any building, structure, lot, or premises within any calendar week, if any other exempt organization has conducted, carried on, or operated legal gaming within such building, structure, lot or premises during the same calendar week. (Added Ord. 94-50, § 2, eff. 8-19-94; Am. Ord. 96-44, § 1, eff. 7-19-96; Am. Ord. 2004-32, § 2, eff. 4-24-04).

(a) Any person desiring or proposing to commence or conduct any business, activity, enterprise or undertaking pertaining to or involving a card room, shall file an application with the City Clerk using such forms as are provided by the city. Each application shall contain and each applicant shall execute a statement as follows: "The undersigned applicant(s) declares under penalty of perjury that the foregoing is true and correct."

(b) The card room permit, if granted, will be issued only in the name of an individual, a sole-proprietorship, a partnership, or a corporation (such entity to be referred to as permit applicant), and, the permit shall require that, concurrent with the granting of the card room permit, each pointholder and key management employee of the permit applicant be issued permits allowing such individuals or entities to be involved in the activities, profits and direction of the card room operation (such individuals and entities to be referred to as pointholder permit applicants and key management employee permit applicants respectively). Pointholder permits shall be issued only in the name of an individual. City officials, city employees, and relatives of Council Members, Department Directors and Management and Confidential employees shall not be eligible to apply for card room permits, pointholder permits or any form of employee permit or registration card. For purposes of this section "relatives" means any person who is related within the third degree to City Council Members, Department Directors, and Management and Confidential employees of the city by blood or marriage, and includes a spouse, child, step-child, parent, grandparent, grandchild, mother, sister, half-brother, half-sister, aunt, uncle, niece, nephew, parent-in-law, brother-in-law, and sister-in-law or another individual living in the same household.

(c) In addition to other information as may be required by said application forms for a card room permit, the applicant shall complete and provide the following information in as great detail as is available or as the City Manager or his or her designee may require:

(1) The date of the application;

(2) The true name of the applicant;

(3) The status of the applicant as being an individual, a sole proprietorship, a partnership or a corporation;

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

(5) If the applicant is other than an individual, the name, residence, and business address of each of the partners or stockholders who qualify as pointholders and the name, residence, and business address of each of the officers and directors of the entity. For purpose of this ordinance such officers and directors shall be deemed "managers" as defined in this article above and shall be subject to all terms and conditions that managers are subject to.

(6) An application for a pointholder's permit, including a personal history record, for every pointholder who has, or is proposed to have, a financial interest, direct or remote, in the proposed card room operation;

(7) An application for a key management employee's permit, including a personal history record, for each individual who is or is proposed to be a key management employee of the proposed card room;

(8) An application for a manager's permit, including a personal history record, for each individual who is or is proposed to be a manager of the proposed card room.

(9) A description of the premises to be used in relation to card room activity including but not limited to card playing area, restaurants and parking;

(10) A development concept including floor plans, site plan, schematics and renderings;

(11) A statement of the games proposed to be played including any specific rules thereto;

(12) The number of card tables to be placed, employed or used;

(13) A description of any other business conducted or proposed to be conducted on the premises;

(14) A financial plan and source of funding for the development including projected development cost;

(15) A statement of the applicant's experience in the operation and management of card rooms and/or other lawful gambling and/or other related activities;

(16) A three-year cash flow projection, which shall be a confidential document and not open to public inspection or disclosure;

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

(18) A complete description and layout of all security measures proposed in as great a detail as available, which shall be a confidential document and not open to public inspection or disclosure;

(19) If the City Manager or his or her designee determines that a landlord whose lease rental payments are based upon a percentage of the revenues or profits of the card room or financier, by reason of the extent of his holdings or his inherent financial control, cannot, in fact, be separated from the card room, and, that as a practical matter, a single entity exists regardless of the apparent form of the organization, he or she may require that all such individuals be designated pointholders and subject to all investigatory, financial and background reporting procedures established by this article for card room pointholders. Any such determination shall not, however, be deemed to make any such lessor an owner or operator of the card room for purposes of this ordinance or applicable state law.

(20) Each application for a card room permit, a pointholder's permit, a manager's permit, or a key management employee's permit shall include the following:

(i) A statement that the applicant understands that the application shall be considered only after a full background investigation and report has been made by such members of city staff as are designated by the City Manager;

(ii) A statement that the applicant understands and agrees that any business or activity conducted or operated under any permit or permit 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, may render any permit or permit therefor subject to immediate suspension or revocation;

(iii) A statement that the applicant has read the provisions of this article and particularly the provisions of this section and understands the same and agrees to abide by all rules and regulations contained in this article;

(iv) A complete statement of financial position for each applicant. The financial statements required by this subsection shall be confidential documents and shall not be open to public inspection. Documents shall be available only to those officers and employees having direct jurisdiction involving the provisions of this article and to any court of competent jurisdiction where any matter relating thereto may be actually pending.

(21) Concurrently with the filing of their applications, the card room permit applicant and the pointholder and key management employee permit applicants shall be fingerprinted and photographed by the Fresno Police Department. Applicants shall authorize the city to obtain any available criminal offender record information relating to applicant and shall further authorize the updating of that information on an annual basis if a permit is granted;

(22) If an applicant for a card room permit is a publicly-traded corporation, each person having a beneficial interest of at least 5% in the applicant corporation shall be identified and may be required to meet all the requirements for applicants and permittees. (Added Ord. 94-50, § 2, eff. 8-19-94).

As set forth in Section 9-2110, the applications for all pointholder and key management employees shall be submitted as part of the application for a card room permit.

Each permit applicant shall be responsible for providing complete and accurate information and for signing the permit application. However, it shall be the responsibility of the card room permit applicant (or permittee for subsequent applications) to submit the completed applications and pay any application fees.

Failure to submit complete applications for each proposed pointholder and key management employee may be grounds for denial or revocation of a card room permit. (Added Ord. 94-50, § 2, eff. 8-19-94).

A card room operations certificate shall be issued only to a card room permittee. This certificate must be applied for concurrently with the card room permit.

The card room operations certificate application shall be filed with the City Clerk. In addition to other required information as may be set forth on site plan application forms provided by the city, the application shall include the following:

(a) Detailed floor plans of the interior of the proposed card room facility specifying at a minimum:

(1) The location of all card playing areas;

(2) The manner in which the card playing areas shall be separated from other areas;

(3) The location of any and all other proposed businesses and facilities within the card room premises.

(b) Detailed plans of the parking facilities including a lighting and security plan.

(c) A detailed statement of all proposed security measures, both physical and operational, including an acknowledgment by the permittee of liability for the security and safety of the patrons, or a statement acknowledging limitations on the liability of the permittee for the security and safety of the patrons and that the cardroom has been posted to provide adequate notice to the patrons of said limitations.

(d) A detailed statement and description of all plans, both physical and operational, for the handling of money, including but not limited to provisions, if applicable, for the following:

(1) Purchase of chips and protection against counterfeit chips;

(2) Check-cashing or ATM card-cashing procedure;

(3) Procedures for bringing money to or removing money from the premises.

(4) Procedures for determining and depositing daily gross receipts.

(e) An evaluation of the internal accounting and administrative control system proposed to be used by applicant, performed by a certified public accountant.

(f) Evidence of compliance with any prerequisites for compliance with the State Gambling Control Act including but not limited to valid registration from the Attorney General of the State of California.

All information provided regarding security measures, internal controls, or provisions relating to the handling of cash, chips, and cards shall be deemed confidential and shall not be available for public inspection unless required by law. (Added Ord. 94-50, § 2, eff. 8-19-94; Am. Ord. 98-39, § 2, eff. 7-20-98; Am. Ord. 2004-32, § 3, eff. 4-24-04).

For purposes of clarification, the fees set forth in this article are for both regulation and revenue purposes and are levied pursuant to the authority of Article XI, Section 5 of the Constitution of the State of California. Each application for any permit or permit shall be subject to fees and deposits, payable to the city as follows:

(a) A card room permit application fee in the amount specified in the Master Fee Schedule designated in the Master Fee Resolution, as amended by the Council from time to time which shall be retained by the city for the payment of the costs of investigation.

(b) A pointholders and key management employees permit application fee in the amount specified in the Master Fee Schedule designated in the Master Fee Resolution, as amended by the Council from time to time which shall be retained by the city for the payment of the costs of investigation.

(c) An employee work permit application fee in the amount specified in the Master Fee Schedule designated in the Master Fee Resolution, as amended by the Council from time to time which shall be retained by the city for the payment of the costs of investigation.

(d) A card room permit fee in the amount specified in the Master Fee Schedule designated in the Master Fee Resolution, as amended by the Council from time to time which shall be retained by the city for the payment of the costs of investigation which shall be paid to the city prior to the issuance of the card room permit.

(e) No additional fee shall be required for the card room site plan certificate.

(Added Ord. 94-50, § 2, eff. 8-19-94).

Whenever a card room permit application pursuant to this article has been filed and all application and permit fees are deposited with the City Clerk, the City Clerk shall immediately refer such application, or a true copy thereof, to the City Manager and the Police Chief.

(Added Ord. 94-50, § 2, eff. 8-19-94).

(a) Investigation and Report. Upon receipt of a card room permit application, the City Manager or his or her designee shall cause an investigation to be made covering all matters relevant to the proposed activity of the applicant, individual pointholders, and managers. Such matters may include but are not limited to the following:

(1) Identity, character and background of the permit applicant, all individual pointholders, and all managers;

(2) Interior floor plan of buildings and site plan as to parking, traffic movement and aesthetics;

(3) Compliance with city's general plan, zoning, environmental requirements, ordinances and other laws;

(4) Type of tables to be used and their proposed locations, area where food and beverages are proposed to be served and means for excluding persons under 21 years of age from card playing areas;

(5) Type and degree of security personnel and facilities to be provided;

(6) The financial stability of the pointholders involved in the application and the financial ability of the applicant to comply with the conditions and requirements of the city and other governmental and legal requirements and conditions in the event the application is approved.

Following the investigation, the completed report of the investigation together with the City Manager's findings and recommendations shall be forwarded to the Council. The Council shall not consider any application for a card room permit or individual permits until the City Manager's findings and recommendations have been forwarded for review.

(b) Notice. At such time as the City Manager forwards the findings and recommendations to Council, the City Clerk shall give at least ten days' written notice of the time and place of the Council's hearing on the card room permit application to the applicant, to every person whose name and address appears on the last equalized County Assessment Roll as the owner of any property within three hundred feet of the exterior boundaries of the premises of the proposed card room, and to every person filing with the City Clerk a written request for notice of any hearings relating to proposed card rooms.

(c) City Council Hearing and Determination. In the event a full and complete application for a card room permit is presented to the Council, and the payments required by this article in connection therewith have been duly made to the city, and the investigations and reports required under the provisions of this article have been duly completed, the Council shall have jurisdiction to consider such application.

At the time and place set for hearing of an application for a card room permit, the Council shall consider the application, the City Manager's findings and recommendations, including the report of the investigation, written testimony and public testimony. Within a reasonable time after the close of the hearing, the Council shall make a determination on the application.

The Council by resolution shall either grant, conditionally grant, or deny the card room permit application. If the Council rules that an application be denied, the order will be accompanied by written reasons upon which the order is based. All such orders will be made public. It shall be possible for the Council to approve tentatively the application of a permit applicant, but, disapprove the application for a permit of one or more of the pointholders. In such cases the Council can grant the permit applied for subject to the condition that any pointholder, or manager disapproved of be removed as an individual having any interest or control in the card room. Compliance with the removal condition shall be monitored, reviewed and approved of by the City Manager, prior to final issuance of the card room permit.

Chapter 15, the Citywide Development Code, limits the location of Small-Scale Entertainment and Recreation, which includes cardrooms in its definition in 15-6704, to certain specified zone districts. In the event that more than one complete application is filed with the city within a thirty-day period, all such applications will be reviewed and considered by the city. The city shall not accept for filing, review, or consider any additional applications until the complete applications filed during the thirty-day period have been reviewed and considered by the city and final action on them has been taken by the Council. The Council shall determine, in its judgment, which, if any, of the various applicants who wish to open a card room within such area will receive a card room permit. In determining whether to grant a permit, the Council shall be guided by the policy that permits shall be issued only to those persons who will operate such permitted card rooms so as to best protect the public health, safety, morals, good order and welfare of the residents of the city. If multiple applicants meet all the requirements for issuance of a permit, the card room permit shall be granted to the qualified applicant whom the Council, in its sole discretion, determines best meets the following criteria:

(1) Least disruptive location;

(2) Best program for policing the operation;

(3) Greatest revenues potential for the City of Fresno;

(4) Greatest experience and financial ability of applicant;

(5) Best potential for quality operation;

(6) Any other considerations that will protect the public health, safety, order, and welfare of the residents of the City of Fresno.

The action of the Council in accordance with this article shall be final.

(d) Requirements for Issuance. The Council may grant a card room permit only if it determines that:

(1) The proposed card room use will not result in the substantial aggravation of crime problems or make law enforcement unduly difficult.

(2) The proposed card room use is not detrimental to the public peace, health, safety and welfare.

(3) The proposed card room use is in compliance with all laws, including but not limited to the city's zoning, fire, building or other ordinance; and

(4) The proposed card room use would be consistent with the purposes and provisions of this article and is not contrary to public interest.

(e) Grounds for Denial. The Council may, in its discretion, deny or condition a permit or permit application for any of the following reasons, without being limited thereto, or for any other reason consistent with the general policy for this article:

(1) Conviction of any crime punishable as a felony or of any crime of violence, any crime involving fraud, gambling, bookmaking, thievery, bunco, moral turpitude, or any crime involving evasion of taxes, or any other crime of moral turpitude indicating a lack of business integrity or business honesty, whether committed in the State of California or elsewhere, whether denominated as a felony or as a misdemeanor and notwithstanding the passage of time since the conviction.

(2) Failure of the applicant to have a valid registration from the Attorney General of the State of California issued pursuant to the Gambling Control Act.

(3) Failure of the proposed business or activity to be operated in compliance with federal, state or city laws or regulations.

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

(5) Knowingly making any false statement in the application or as to any other information presented as part of the application process.

(6) Failure to satisfy the Council as to the source of funds to be invested in the proposed venture.

(7) Prior unsuitable operation as a card or gaming permittee in another jurisdiction without regard to whether disciplinary action was taken at that time or whether the acts were sufficient to justify revocation of a permit.

(8) Applicant does not have the financial capability or business experience to operate a card room in a manner which would adequately protect the patrons of the card room and the citizens of the City of Fresno.

(9) Applicant is presently under indictment or the subject of a criminal complaint for any of the crimes described in subsection (e)(1) above.

(10) Making or causing to be made any statement in an application or document provided to the city or orally to a city officer, employee, or agent in connection with an application, which statement was at the time and in the light of the circumstances under which it was made, knowingly false or misleading.

(11) Lack of evidence that there is adequate financing available to pay potential and/or current obligations and, in addition, to provide adequate working capital to finance opening of the card room proposed.

(12) Failure of any person named in the application when summoned by the Council to appear and testify before it or its agents at such time and place as it may designate.

(13) Inadequate security.

(Added Ord. 94-50, § 2, eff. 8-19-94; Am. Ord. 2004-32, § 4, eff. 4-24-04; Amd. Ord. 2009-12, §§ 5—7, eff. 5-1-09; Am. Ord. 2021-004, § 1, eff. 3-7-21).

(a) City Manager Authorized to Grant. The application for a card room operations certificate and all related materials including detailed site plans, and detailed statements of security and operations procedures shall be reviewed by the City Manager and such staff as he or she may designate. The plans and specifications required by this section shall be in sufficient detail to obtain building permits.

The City Manager shall have the authority to grant, conditionally grant or deny issuance of a card room operations certificate in accordance with the criteria set forth in this article.

The City Manager shall approve or disapprove any plans, specifications or proposed procedures within 40 days of receipt thereof. Any disapproval shall be in writing and shall include reasons for the disapproval. The applicant, upon receipt of a disapproval, shall revise those plans, specifications or procedures which are disapproved and resubmit to the City Manager.

(b) Criteria for Issuance of a Card Room Operations Certificate. A card room operations certificate is required before a card room permittee may commence operations. The certificate shall be issued when all of the following have been complied with:

(1) The applicant has a valid card room permit;

(2) The card room site has been fully developed in accordance with all site plans and specifications submitted to and approved by city and the premises have been inspected to verify compliance with all such plans and specifications.

(3) The applicant has taken all steps necessary to insure that the card room will be operated in the manner set forth in this article and as approved by the Council and has documented such to the satisfaction of the City Manager;

(4) All zoning, environmental, building and any other local or state requirements for the design, construction or operation of the card room have been complied with.

(Added Ord. 94-50, § 2, eff. 8-19-94).

If the action of the Council, or the City Manager as appropriate, on any application is to grant the same, the Controller may thereupon issue the necessary permits and renewals thereof upon payment of fees as required by this article, until such time as such permit is either suspended, revoked, or expires.

(Added Ord. 94-50, § 2, eff. 8-19-94).

Permits issued under the provisions of this article shall be and remain valid until either surrendered in writing or allowed to expire by the permittee or suspended or revoked by the city as provided in this article. Except as herein provided, card room permits shall, unless renewed, expire annually on the anniversary date of their issuance. The card room operations certificate shall be and remain valid as long as a card room permit is valid and no physical, procedural changes, or operational changes are made with respect to the card room.

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

(Added Ord. 94-50, § 2, eff. 8-19-94).

(a) The holder of an unsurrendered, unexpired, unsuspended, unrevoked, and valid card room permit issued pursuant to the provisions of this article shall be entitled to up to four administrative annual renewals, in accordance with the following procedure:

(1) An application for renewal of any such permit shall be filed with the office of the Controller not later than 30 days before the expiration date of the permit for which renewal is sought.

(2) If such application for renewal is not filed within the time specified by subsection (1), such permittee may thereafter, but not later than the expiration date of the permit, file a written application for renewal of any such permit, but in such event, such permittee shall pay a penalty fee in the amount specified in the Master Fee Schedule designated in the Master Fee Resolution, as amended by the Council from time to time, for each day of delinquency.

(3) The application for renewal shall be accompanied by the full amount of the required renewal permit fee and other permit fees in the amount specified in the Master Fee Schedule designated in the Master Fee Resolution, as amended by the Council from time to time.

(4) The card room permittee shall file with the Controller an affidavit made subject to the penalties of perjury on a form approved by the City Attorney containing a full and complete statement including the following information:

(i) All individuals with whom the permittee has any operating agreements pertaining to the permitted operation;

(ii) All pointholders, key management employees and managers including their full, true and correct names and addresses;

(iii) The full, true, and correct names and addresses of each and every new key management employee.

(b) Failure to make full payment of fees, or failure to file any affidavit and/or certification and attestation or the filing of any false statement in any affidavit, and/or certification and attestation, as is required by this section may be deemed grounds for the revocation of such card room permit pursuant to the procedures set forth in this article.

(c) After expiration of the fourth administrative renewal period, no further administrative renewals shall be permitted, and the permit shall be deemed expired. The permit holder may reapply for a new permit, which shall be heard by the Council, in accordance with the terms of this article.

(Added Ord. 94-50, § 2, eff. 8-19-94; Am. Ord. 2021-041, § 1, eff. 10-25-21).

For the administrative renewals allowed under Section 9-2119, upon compliance by a card room permittee with the requirements of Section 9-2119, and if no material changes have occurred that have not already been acted upon, the card room permit shall be deemed renewed for another one-year period and the Controller shall issue such renewal provided that permittee is in compliance with all other terms and conditions of this article and of the card room permit.

(Added Ord. 94-50, § 2, eff. 8-19-94; Am. Ord. 2021-041, § 2, eff. 10-25-21).

(a) The permittee shall register any proposed change in the name of the permitted card room or of the corporate permittee with the Controller thirty days before the new name can be advertised or otherwise made known to the public.

(b) The fee for a name change as set forth in the Master Fee Schedule established by resolution of Council shall accompany the application to register the proposed name.

(c) The Controller shall issue a new permit under the new name within ten days after the permittee has registered the name with the Controller.

(Added Ord. 94-50, § 2, eff. 8-19-94).

(a) It shall be unlawful for any permittee to employ any person to work in a card room without such person having been first registered with the Police Chief.

(b) Each Key Management Employee and card room employee shall present himself or herself at the Police Department during normal business hours, prior to commencement of any such employment, and be registered.

(c) Each employee shall:

(1) Complete an application;

(2) Be fingerprinted;

(3) Be photographed;

(4) Provide any other information that the Police Chief or his or her designee may require; and

(5) Certify the contents of the application under penalty of perjury.

(d) The Police Chief is hereby authorized to obtain criminal history information for each employee seeking registration.

(e) A fee as set forth in the Master Fee Schedule established by resolution of Council shall be paid together with the registration or renewal application.

(f) Within thirty days after receipt of the application containing the above information and the required fees, the Police Chief or his or her designee shall mail a written decision to the applicant either granting or denying registration and explaining the reasons for denial.

(g) If the background investigation is not complete within the thirty-day period, the Police Chief or his or her designee may grant a temporary registration pending a final decision based upon the outcome of the background investigation. The temporary registration shall include issuance of a temporary badge or identification to the agent or employee, not to exceed forty-five days.

(h) The Police Chief or his or her designee shall provide each registered employee with a permanent identification card to be known as a "work permit" which shall be displayed in accordance with the requirements of this article.

(i) Each registered employee may renew his or her registration with the Police Chief at least thirty days prior to the anniversary of the date of his or her initial registration and every anniversary thereafter. New cards will be issued as the city deems appropriate.

(j) The card room permittee shall inform the Police Chief of any change in employment status of a registered employee in a timely manner. A change in employment shall include termination of employment, leave of absence in excess of sixty days or any promotion or other change in position, job title, or duties.

(k) The California Department of Justice, Division of Gambling Control is hereby authorized to review all employee work permit applications and submit objections to the Chief of Police to the issuance of a work permit to that employee.

(Added Ord. 94-50, § 2, eff. 8-19-94; Am. Ord. 98-39, § 3, eff. 7-20-98; Ord. No. 2009-12, §§ 1, 2, 8, eff. 5-1-09).

The Police Chief may revoke or suspend the registration of or deny registration to a card room employee or potential employee on any of the following grounds:

(a) The employee or applicant has engaged in or has been convicted of a crime involving lotteries, gambling, bookmaking, larceny, perjury, bribery, extortion, fraud, theft, or embezzlement, or a crime involving moral turpitude, or has been convicted of being under the influence of, possession of, the sale or possession for sale of a controlled substance, prostitution, pimping, or pandering, or has been convicted of any crime substantially related to service or entertainment business;

(b) The employee has committed any act involving dishonesty, fraud or deceit with the intent to substantially benefit the employee or benefit another, or substantially injure another;

(c) The employee has been refused, or has had revoked, any gambling, gaming or entertainment permit or permit by an agency or government within five years of the date of the registration application;

(d) The employee has violated any provisions of this article;

(e) The employee has knowingly made a false statement in his or her application or to any city officer, employees, or agent;

(f) The employee has violated any law or ordinance relating to the operation of a card room.

(g) Objection by the California Department of Justice, Division of Gambling Control to the issuance of the work permit.

(Added Ord. 94-50, § 2, eff. 8-19-94; Am. Ord. 98-39, § 4, eff. 7-20-98; Am. Ord. 2006-81, § 1, eff. 8-3-06).

(a) If it appears at any time that good cause may exist for the Police Chief to deny registration of an employee, or to suspend or revoke an existing registration, the Police Chief shall provide the employee and the permittee with the opportunity for a hearing before the Police Chief to show cause why registration should not be denied, suspended or revoked.

(b) In the case of denial, suspension or revocation, the employee shall be given ten days from the date of mailing of the notice of denial, suspension or revocation to request a show cause hearing before the Police Chief. The employee shall be deemed to have waived the right to a show cause hearing if the Police Chief does not receive the employee's request for a hearing within ten days of the date of mailing of the notice.

(c) The Police Chief shall schedule the hearing within fifteen days after receipt of the request for a show cause hearing. The Police Chief shall mail notice of the time, place and date of the hearing to the applicant or employee and the employer within five days after receipt of the request for hearing.

(d) Technical rules of evidence shall not apply to the show cause hearing.

(e) If the Police Chief, on the basis of substantial evidence presented at the show cause hearing, finds good cause therefor, the Police Chief may deny registration to the employee, or suspend or revoke the registration.

(f) In those extraordinary circumstances, wherein the Police Chief determines immediate suspension or revocation necessary as a result of accusations involving conduct resulting in great or irreparable harm or injury to the city or accusations involving conduct in need of immediate restraint to prevent great or irreparable harm or injury to the city, the Police Chief may issue a Notice of Revocation or a Notice of Suspension which shall be deemed effective immediately upon issuance.

The employee shall have ten days from the date of such issuance of a Notice of Revocation or Notice of Suspension to request a hearing. The Police Chief shall schedule such a hearing within five days after receipt of the request for hearing under this subsection (f). Technical rules of evidence shall not apply for such hearing. If the Police Chief, on the basis of substantial evidence presented at such hearing, finds good cause therefor, the Police Chief may uphold the Order of Suspension or the Order of Termination. (Added Ord. 94-50, § 2, eff. 8-19-94).

(a) Council Consent. It shall be unlawful for any pointholder, having any interest whatever, or at all, in the ownership of a card room, whether legal or equitable, or as trustor or trustee, or of whatever kind or character, to transfer or sell any points and/or interest in a card room to any person who is or by reason of such transaction would become a pointholder without the prior consent and permission of the Council.

(b) Compliance with Regulations. No permittee or pointholder shall knowingly permit any individual, partnership, or other entity to make any investment whatever in, or in any manner whatever participate in the profits of any permitted card room or any portion thereof, except in accordance with these regulations; provided, however, that the purchase or other acquisition of stock in a publicly-traded corporation shall not be deemed to be such an investment or participation unless by a pointholder. Except as otherwise provided in subsection (e), a permittee which is a publicly-traded corporation shall not have responsibility with respect to any transfers, sales or assignments of shares of its common stock or other securities.

(c) Disclosure of Investment. No permittee or pointholder shall knowingly permit any investment in any permitted card room operation or any portion thereof nor participation in the profits thereof by any person acting as agent, trustee, or in any other representative capacity whatsoever for or on behalf of another person without first having fully disclosed all facts pertaining to such representation to the Council. Except as otherwise provided in subsection (e), a permittee which is a publicly-traded corporation shall not have responsibility with respect to any transfers, sales or assignments of shares of its common stock or other securities. No person acting in any such representative capacity shall hold or acquire any such interest or participate without first having fully disclosed all facts pertaining to such representation to the Council and obtained written permission of the Council to so act.

(d) Application for Transfer of Interest and Escrow Required. No transfer, sale or hypothecation of a point, or new investment in an existing permitted card room shall be permitted until the Council has received, reviewed, and approved an application for transfer of interest, and until each new pointholder has been granted a pointholder's permit authorizing the holding of such interest in a point; provided, however, that no such approval shall be required for sales of stock of a publicly-traded corporation other than to a pointholder. No money or other thing of value constituting any part of the consideration for the transfer or acquisition of any interest in a permitted card room operation shall be paid over, received or used prior to complete compliance with all prerequisites set forth in the law and these regulations. Notwithstanding the foregoing, such funds may be placed in escrow pending completion of the transaction. Any loan, pledge or other transaction in an attempt to evade the requirements of this regulation may be deemed a violation and, as such, would constitute grounds for disapproval of the point transfer.

(e) Assignment. Any party desiring to buy, sell, accept transfer, assign or otherwise hypothecate any interest of a pointholder (other than stock of a publicly-traded corporation to a person other than pointholder) in a permitted card room shall file with the City Clerk, on forms approved by the City Attorney, and furnished by the City Clerk, a written application for permission to allow transfer of such interest. Each such application shall contain and clearly and truthfully set forth, under oath and/or affirmation, in addition to such other information as the City Manager may require, the following:

(1) The date of the application;

(2) The true name of the applicant and personal history;

(3) The status of the applicant as being an individual, partnership, corporation or other entity;

(4) The residence and business address of the applicant;

(5) If the applicant is other than an individual, the name, residence and business address of each co-partner, co-partnership, shareholder or other interest holders;

(6) The name of the permitted card room and the names of the existing pointholders from which a transfer of interest or points is sought;

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

(8) The source of funds to be used by the applicant in acquiring such points or interest;

(9) A statement that the applicant(s) understands that the application will be considered by the Council only after a full investigation and report have been made and the report of investigation forwarded to the Council;

(10) A balance sheet and income statement prepared in accordance with generally accepted accounting principles and submitted under penalty of perjury (but which need not be audited);

(11) The statements required by this subsection shall be confidential, and the documents containing such information shall be deemed to be confidential documents, and shall not be open to public inspection, but shall be available only to those city officials having direct jurisdiction where any matter relating thereto may be actually pending, except that the names and cities and states of residence and business of such pointholders shall be open to public inspection.

(f) Investigations Required. Whenever an application pursuant to the provisions of this section has been filed with the City Clerk pursuant to the provisions of this section, the City Clerk shall immediately refer such application, or a true copy thereof, to the City Manager, who shall promptly and diligently cause an investigation to be made as follows:

(1) A full and complete investigation of the applicant and each pointholder whose names and addresses are shown upon the application;

(2) Concurrently with the filing of an application, each applicant shall be fingerprinted and photographed by the Fresno Police Department and shall authorize the city to obtain any available criminal offender record information relating to applicant and shall further authorize the updating of that information at any time reasonably necessary, if the application is approved.

(3) It shall be the responsibility and duty of the City Manager to supervise and direct the Police Chief to establish the necessary procedures to administer the provisions of this subsection; and

(4) The information received by the Police Chief pursuant to the provisions herein shall be treated as confidential.

(g) Application and assignment fees. For the purposes of clarification, the application and assignment fees set forth in this section are for regulation, revenue purposes and reimbursement to the city for the costs of investigating and processing the applications, as provided for in this Section, pursuant to the authority set forth in Article XI, Section 5 of the Constitution of the State. Each such application for transfer of interest of a pointholder to an applicant permittee shall be accompanied by a fee, payable to the city as follows:

(1) An application fee in the amount specified in the Master Fee Schedule designated in the Master Fee Resolution, as amended by the Council from time to time, for each pointholder permit applicant, which fee shall be retained by the city for the payment of the costs of the investigation of the applicant. This fee shall be the property of, and be retained by, the city, whether the permit and permission to transfer interest in the permit is granted or denied.

(2) An assignment fee in the amount of five percent of the gross sales price of the interest assigned, sold or transferred. In the event that multiple interests are assigned, sold or transferred, the allocation of the gross sales price, for the purposes of this section, shall be agreed upon by the city and the permittee prior to completion of the transaction. A statement of gross income from the assignment, sale, or transfer shall be audited by a Certified Public Accountant, and presented to the city along with the assignment fee.

(h) Granting or Denial of Applications.

(1) Whenever an application for a permit as required under the provisions of this section is presented to the Council, and provided that the fees required by this section in connection therewith have been paid to the city, the Council may consider such application on the basis of the following, without being limited thereto:

(i) The financial stability of the applicant;

(ii) Conviction of criminal offenses as denoted in Section 9-2115; and

(iii) Any other information deemed by the Council to be matters of necessary inquiry.

(2) The Council may, in its discretion, either grant, conditionally grant or deny the pointholders permit applied for under subsection (d) of this section. (Added Ord. 94-50, § 2, eff. 8-19-94).

All pointholders, key management employees, and employees of card rooms shall have their background and criminal history investigations updated annually or as the city may require upon showing of reasonable justification.

(Added Ord. 94-50, § 2, eff. 8-19-94; Ord. No. 2009-12, § 3, eff. 5-1-09).

(a) All permits issued under the provisions of this article shall be subject to revocation, suspension, or other appropriate penalties upon the occurrence of any of the following conditions:

(1) The permittee, has violated any provision of this article or failed to pay timely any fees due under this article; or

(2) The permittee, has violated any term or condition upon which such permit was issued; or

(3) The permittee, pointholder, key management employee, or an employee has violated any statute or ordinance, which violation relates to the establishment, maintenance or operation of the card room authorized by such permit; or

(4) The permittee has transferred any stock without approval of the city; or

(5) A permittee fails to make and file any statements as required by this article or the permit within the time required, or pay timely any sums due under the provisions of this article, or refuses to do either or both upon reasonable request; or

(6) The permittee has knowingly made false statements on any filing, registration or statement required under this article; or

(7) The operation of the card room violates the city's zoning, fire, building or other ordinances or regulations, or other applicable local, state, or federal laws or regulations; or

(8) The operation of the card room substantially aggravates the crime problems in the area, makes law enforcement unduly difficult, or is otherwise detrimental to crime prevention or to the public peace, health or safety in the area.

(b) In making the determination of whether to revoke or suspend a permit or to apply other appropriate penalties, the city may consider, but is not limited to the following factors:

(1) Any criminal convictions of the permittee, pointholders, key management employees, or employees, involving lotteries, gambling, bookmaking, larceny, perjury, bribery, extortion, fraud, theft, embezzlement, or crimes involving moral turpitude, or convictions of the sale, possession for sale, or possession of a controlled substance, prostitution, pimping, or pandering, or convictions of any crime substantially related to service or entertainment business;

(2) The commission of any act by the card room permittee, pointholders, key management employees or employees involving dishonesty, fraud or deceit with the intent to substantially benefit himself or herself or another, or substantially injure another;

(3) Whether the card room permittee, pointholders, key management employees, or employees have previously operated in this or another state under a gambling, gaming or similar permit or permit that has been revoked or suspended, the reasons therefore, and the actions of such person thereafter;

(4) Whether the card room permittee, pointholders, managers, key management employees, or employees in this or another state has been denied a gambling, gaming or similar permit or permit the reasons therefore, and the actions of the person thereafter.

(5) The business and credit history of the card room permittee and owners;

(6) The nature of the conduct involved in the violations upheld;

(7) The duration of the conduct giving rise to the violations;

(8) The number of instances of violations involved, and whether or not the violations are part of a pattern of violations;

(9) Whether the violations were deliberate or inadvertent;

(10) The degree, financial or physical, of injury to any victim, or which was proximately caused by the violation;

(11) The motivation of the person(s) who committed the violations;

(12) Restitution provided to any victim; and

(13) Restitution provided to the city for the costs of enforcement or prosecution of any violations or injuries.

(c) Where appropriate, in addition to or in lieu of a suspension or revocation penalty, the city may impose other appropriate penalties, including but not limited to monetary penalties, restitution to victims, including the city, and modifications and limitations on the terms and conditions of the permit.

(Added Ord. 94-50, § 2, eff. 8-19-94).

(a) Upon determination of the existence of any of the conditions stated in Section 9-2127 or which warrant action, the City Manager shall issue a "Notice of Decision to Revoke or Suspend Card Room Permit" to the permittee.

(b) The Notice of Decision to Revoke or Suspend shall state all grounds and reasons upon which the suspension or revocation is based and shall notice the permittee of the right to appeal under Chapter 1, Article 4.

(c) The Notice of Decision shall be served by mail or in person to the permittee at the address stated on the permit. Service shall be deemed made on the day of personal service or three days after the posted date if mailed.

(d) The Notice of Decision to Revoke or Suspend shall be appealable under Chapter 1, Article 4.

(e) In those extraordinary circumstances, wherein the City Manager determines immediate suspension or revocation is necessary as a result of accusations involving conduct resulting in great or irreparable harm or injury to the city or accusations involving conduct in need of immediate restraint to prevent great or irreparable harm or injury to the city, the notice issued under this subsection shall be deemed effective immediately upon service. A notice issued under this subsection shall state that it is effective upon service and shall state the basis for the City Manager's determination made under this subsection.

(Added Ord. 94-50, § 2, eff. 8-19-94; Am. Ord. 2005-14, § 34, eff. 4-9-05).

Notwithstanding contrary provisions in Chapter 1, Article 4, the following rules apply to hearings on appeals from Notice of Decisions to Revoke or Suspend under Section 9-2128:

(a) Timing of Appeal. Where a Notice of Appeal has been filed, an Appeal Hearing shall be conducted as soon as reasonably possible.

(b) Evidence. Oral evidence shall be taken only on oath or affirmation.

(c) Review. Review of the decision by the hearing officer shall be de novo and shall be based on the factors set forth in Section 9-2126.

(d) Decision. The decision shall be made in writing with written findings of fact and shall be issued within thirty working days of the close of the hearing.

(e) Presumption on Criminal Convictions. In cases where the decision of the City Manager to revoke or suspend is based upon a criminal conviction, the facts underlying a criminal conviction shall be deemed to have been proven and shall not be subject to dispute at the Appeal Hearing.

(f) Failure to Appear. Failure to appear by the permittee or the permittee's representative at the hearing shall be deemed a withdrawal of the appeal and the City Manager's decision to suspend or revoke shall be final and take effect immediately. If the permittee files a request for relief from the decision within ten days from the day of the hearing, the hearing officer may reinstate the appeal and set a new date for the hearing upon a finding that there is good cause for failure to appear after consideration of any rebuttal offered by the city.

(g) Cost of Appeal Hearing. The cost of the appeal, including but not limited to, the charge for the cost of the service of the hearing officer, the cost of creating the record and the cost of any subpoena service called by the permittee shall paid by the permittee. A deposit of the estimated cost, as determined by the City Attorney, shall be required from the permittee prior to the Appeal Hearing. Failure to provide the deposit shall be deemed a waiver of the appeal. After the hearing, the permittee shall be presented with a bill itemizing the costs to be paid and any part of the deposit not expended shall be returned within thirty days of the decision. The fee for the hearing shall be considered to be a civil debt of the permittee which is due and payable at the time of presentation of the bill to the permittee after the hearing. (Added Ord. 94-50, § 2, eff. 8-19-94; Am. Ord. 2005-14, § 35, eff. 4-9-05).

In the event of revocation, such permittee shall not be entitled to apply for a new permit. (Added Ord. 94-50, § 2, eff. 8-19-94).

The Council hereby determines that an annual fee is payable with respect to all permits issued pursuant to the provisions of this article which fee shall be payable annually on the anniversary date of card room permit. Issuance fees are hereby fixed. An annual permit fee in the amount specified in the Master Fee Schedule designated in the Master Fee Resolution, as amended by the Council from time to time, shall be payable in advance of the beginning of each card room permit year in which card room operations are to be conducted. All annual permit fees shall become the absolute property of the city and shall not be refunded due to the cessation of, or failure to begin such businesses, whether voluntary or involuntary. (Added Ord. 94-50, § 2, eff. 8-19-94).

(a) Amount. In addition to the permit fees previously prescribed each permittee permitted pursuant to the provisions of this article shall pay to the city a monthly fee equal to a percentage of the gross revenue of the permittee received from the card room operation. The percentage shall be established by resolution of the City Council. Such payment shall be made to the city not later than fifteen (15) days after the end of each month during which such gross revenues on which it was computed were received by the permittee.

(b) Statement of Revenue. Each permittee shall file with the Controller before the 15th day following the end of each month a statement, under oath, showing the true and correct amount of gross revenue derived from the card game business permitted by the permit issued to or held by such permittee for the preceding month. Such statement shall be accompanied by the payment of the correct amount of permit fee due and owing in accordance with the provisions of Subsection (a) 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 reported in the statement to determine the accuracy of the figures contained therein and whether or not the correct amount payable to the city has been paid.

In addition, a signed declaration certification shall be attached to the statement, or included therein. which declaration shall be substantially in the following form:

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

___________

Permittee, managing partner, or owner,"

(Strike out the titles which are not applicable.)

(c) Annual Statement of Revenue. On or before August 31 of each year, the permittee shall provide the city with a statement of revenue for the period from July 1, of the previous year through June 30 of the then current year. This statement shall be audited by a Certified Public Accountant who will provide an opinion as to the accuracy and correctness of the statement provided.

In the event that the amount of gross revenue reported in the permittee's annual statement is less than the total gross revenue reported in the monthly statements previously received by the city, the gross revenue fee shall be applied to the difference, and shall accompany the annual statement. In addition to the gross revenue permit fee, if the difference exceeds one percent (1%) of the annual gross revenues, a penalty of 25% of the additional fee due shall also be due and payable upon submission of the annual statement of gross revenues.

(d) Audits of Reports. The books, records, and accounts of any card room may be audited by the city. Such an audit shall be performed by a person designated by the Controller. Any information obtained pursuant to the provisions of this section or any statement filed by the permittee shall be deemed confidential and shall not be subject to public inspection. Such shall be available only to those city officials having jurisdiction over the provisions of this article and to any court of competent jurisdiction where any matter relating thereto may be actively pending.

(e) Refusal to Display Records. Any failure or refusal by any such permittee to make and file any statement as required within the time required, or to pay such sums by way of application fees or permit fees when the fees are due and payable in accordance with the provisions of this article, or to permit an inspection of such books, records, and accounts of such permittee shall be and constitute full and sufficient grounds for the suspension and revocation of the permit of any such permittee. (Added Ord. 94-50, § 2, eff. 8-19-94).

(a) Each permittee shall make and maintain complete, accurate and legible records of all transactions pertaining to revenue. Such records shall include but not be limited to a general ledger maintained in accordance with generally accepted accounting principles, together with appropriate supporting records such as cash receipts and disbursements logs and journals, payroll journals, canceled checks, and original paid invoices. General Ledgers and all other records shall be maintained in a fashion suitable for producing financial statements in accordance with generally accepted accounting principles. Theses ledgers and records shall be maintained for at least three years from the commencement of operations of the card room and shall be maintained on the premises of the permitted card room and made available for examination and copying by the city or its designee upon request.

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

(c) In addition to such other information and data required by this regulation, each permittee shall maintain the following if a partnership or corporation:

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

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

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

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

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

(d) In addition to such other information and data required by the regulation, each card room permittee shall maintain the following if a sole proprietorship:

(i) A schedule showing the name and address of the proprietor and the amount and date of his or her original investment.

(ii) A record of subsequent additions thereto and withdrawals therefrom.

(e) The records required to be kept by this regulation shall be in ink or other permanent form of recordation. (Added Ord. 94-50, § 2, eff. 8-19-94).

(a) Notwithstanding the audit requirements specified in this article, the permittee shall allow the City Manager or his designee unrestricted access to all books, records and facilities pertaining to the card room, including but not limited to cash counting rooms. Any information obtained pursuant to this section or any statement filed by the card room permittee or other permittees shall be deemed confidential and shall not be subject to public inspection except in connection with the enforcement of the provisions of this article. It shall be the duty of the City Manager to preserve and keep such statements so that the contents thereof shall not become known except to the persons charged by law with the administration of the provisions of this article or pursuant to the order of any court of competent jurisdiction.

(b) Any failure or refusal of any permittee to make and file any statement as required within the time required, or to permit inspection of such books, records, accounts and reports, of such permittee in accordance with the provisions of this article shall be and constitute full and sufficient grounds for the revocation or suspension of the permits of any such or permittee. (Added Ord. 94-50, § 2, eff. 8-19-94).

(a) Games to be Conducted in Compliance With City and State Laws. Each and all of the 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 Federal, State and local laws.

(b) Collection. Fees may only be collected for the playing of permissible games either through a time rental fee for occupancy at a card table or a predetermined fixed fee assessed of all players at a card table and collected prior to or during the playing of a hand.

(c) Permitting Minors on Premises Prohibited.

(1) No person under the age of 21 years shall be permitted to enter upon the premises of a licensed Card Room, or any part thereof, except the following:

(i) An area, physically separated from any Card Playing Area or Satellite Wagering Facility, for the exclusive purpose of dining and only when accompanied by a parent or legal guardian unless such person entering is 18 years of age or older. For purposes of this subdivision, any place wherein food or beverages are dispensed primarily by vending machines shall not constitute a place for dining.

(ii) Restrooms.

(iii) A supervised room, as defined by regulation of the State of California, Department of Justice, Division of Gambling Control, that is physically separated from any Card Playing Area or Satellite Wagering Facility and used primarily for the purpose of entertainment or recreation and only when accompanied by a parent or legal guardian unless such person entering is 18 years of age or older.

(2) Any area of a Card Room to which a person under the age of 21 years may have access under this subdivision shall have an entrance that shall not require the entrants to enter upon or pass through the Card Playing Area or satellite Wagering Facility. All persons under the age of 21 years shall be restricted to the separate entrance required under this subdivision.

(3) Any Card Room to which a person under the age of 21 years may have access under this subdivision shall have at least one uniformed security employee stationed at each entrance to the Card Playing Area or Satellite Wagering Area at all times such entrance remains open.

(d) Subletting To Persons Without Permits Prohibited.

(1) No card room permittee, owner or employee shall permit the farming out, assigning, leasing, renting, or subletting of any games or card tables on premises lawfully permitted pursuant to the provisions of this Article.

(2) This section shall not preclude any profit sharing with employees or preclude use of a management company.

(e) Games To Be Played in Card Playing Area Approved in Permit. The playing of all games permitted under this article shall be confined to the approved card playing area of each permitted card room as set forth in the permit and no playing of any games shall be permitted in any other area or location.

(f) Permissible Games.

(1) A list of "permissible games" including any specific rules thereto shall be adopted by Resolution of the Council. Any card games permitted by the Department of Justice, Bureau of Gambling Control, shall automatically be added to the list of "Permissible Games".

(2) No game shall be played at any card room unless it is listed as a permissible game.

(3) All permissible games shall be played in strict conformity to California Penal Code Section 330, and all other state gambling laws.

(4) The permittee shall file with the Police Chief for the Police Chief's approval, the rules on how each game and variation thereof is to be played. The permittee shall allow the playing of permissible games only in strict conformity with the rules approved by the Police Chief.

(5) Nothing in this section is intended to prohibit the operation of a Satellite Wagering Facility established pursuant to California Business and Professions Code § 19605 et seq. within a card room under the following conditions:

a. That the facility is located in an area of the card room which is separated and isolated from the approved card playing area.

b. No person under twenty-one years of age shall be permitted to be present within the Satellite Wagering Facility at any time while the Satellite Wagering Facility is open for business or horse racing is being broadcast or shown upon any monitors or screens within the card room premises.

c. A schedule of the dates and times of all horse races being broadcast at the Satellite Wagering Facility or the facility being open to accept any wagers on any race shall be provided to the Chief of Police of the Fresno Police Department or his designee at a minimum of forty-eight hours prior to any such activity taking place.

d. All federal, state and local laws, rules and regulations shall be strictly followed at all times.

e. Any violations of any provision of this subdivision, or of federal, state of local laws related to the operation of a Satellite Wagering Facility shall be grounds for the immediate revocation of the permittee's card room permit.

(6) All other games of chance are hereby prohibited.

(g) Game Rules.

(1) The rules describing how each game conducted on the premises is to be played shall be posted on the premises of the card room in a conspicuous place. Printed copies of the rules shall also be easily available to the public.

(2) The rules which are posted and made available to the public shall be identical to the rules provided to the Police Chief pursuant to the requirements of this article.

(3) The rules shall be made available in English, Spanish, Vietnamese, Hmong, Lao and Cambodian.

(h) Permitting Intoxicated Persons To Play in Games Prohibited. No card room permittee, owner or employee shall permit any person to play in any game at any time while such person is obviously under the influence of intoxicating beverage, narcotic or drug.

(i) Exclusion of Persons from Card Rooms.

(1) A card room permittee shall not allow entry and shall exclude or eject from the premises any person who has been engaged in or been convicted of bookmaking, loan sharking, the sale of controlled substances, illegal gambling activities, prostitution, pimping, pandering or whose presence in or about such card room would be inimical to the interests of legitimate gaming.

(2) No card room permittee, owner or employee shall permit any person to enter a card room while such person appears to be obviously under the influence of intoxicating beverage, narcotic or drug.

(3) Any person refused entry, excluded, or ejected by a card room may file an appeal under Chapter 1, Article 4 as to whether the conditions for exclusion or ejection as set forth in subsection (1) of this section are applicable. At the hearing, both the person excluded and the licensee may present evidence. The decision of the hearing officer shall be final. The card room permittee and appellant shall reimburse the city for the cost of holding such hearing.

(j) Complimentary Alcoholic Drinks Prohibited. Complimentary or reduced priced alcoholic drinks shall be prohibited in the card room premises.

(k) Patron Complaints. A notice setting forth the procedure for making and/or filing complaints by patrons of the card room shall be prominently posted on the premises. Such complaint procedure shall at a minimum include provisions for logging in the verbal and written complaints, the name, address, and telephone number of complainant, and a mechanism for transmitting such log to the Police department on a daily basis.

(l) Bets or Wagers Prohibited.

(1) No card room permittee, owner or employee shall allow any persons playing in any game to make any single bet or wager in excess of one thousand dollars ($1,000.00) or at any time during any game to permit an ante in excess of one thousand dollars ($1,000.00) total sum anted by players participating in the game. Notwithstanding the foregoing, the maximum wager allowed in any approved poker game is unlimited.

(2) Municipal, house or table betting limits shall be clearly posted on the premises to provide patrons with adequate notice of the rules related to wagering.

(m) Identification Card Display.

(1) It shall be unlawful for any card room owner or employee to be working at any time upon said premises without having prominently displayed his or her own personal identification card issued by the Police Chief pursuant to this article identifying such person as an owner or employee of the card room.

(2) The identification card shall be prominently displayed on the outermost garment at approximately chest height. Such identification card shall at all times be in good and readable condition.

(n) Employment of Persons To Stimulate Play Prohibited.

(1) It shall be unlawful for any card room permittee, owner, pointholder, manager, key management employee, or employee to engage in or persuade any person to play cards for the purpose of stimulating play where such person is to receive any compensation or reward, whether financial or otherwise, present or promised; or where such reward or revenue is to be diverted to the card room permittee or owner except as allowed under subsection (2) of this section.

(2) The permittee may utilize proposition players. A proposition player must wear a badge at all times identifying the player as an employee of the permittee. Other than compensation for the time spent in acting in such activities as an employee of the permittee, no gifts, rewards or any other thing of value shall be given to the proposition player by the card room permittee owner, pointholder, manager, key management employee or employee.

(o) Lending Money or Tokens of Value Prohibited. It is unlawful for any card room permittee, owner or employee to engage in the lending of money, chips, tokens or anything of value, either real or promised, to any person for the purpose of allowing that person to eat, drink or engage in any game or gambling on the premises.

(p) Use of Blank Personal Checks Prohibited. It is unlawful for the card room permittee, owner or employee to cash any personal check which does not state the amount on the face of the check.

(q) Operation of House Deposit or Credit System Prohibited.

(1) It shall be unlawful for any card room permittee, owner or employee to operate, maintain or purport to maintain any house, player or employee deposit or credit system or any system similar thereto, whereby a person may deposit, draw or maintain any account or credit of money, checks or any other item or representation of value, except as authorized pursuant to subsection (2) and (3) of this section.

(2) The permittee shall be allowed to provide chips or other representations of value paid for in advance by the patron in cash or by personal check.

(3) The permittee shall be allowed to accept a patron's chips or other winnings and provide the patron with a check drawn on the permittee's account for the amount of the patron's chips or other winnings.

(4) The dollar equivalent of any such chips or other representations shall be posted in the same manner as the game rules pursuant to this article. In the alternative the dollar equivalent may be placed prominently upon the face of each chip or other representation of value.

(r) Subsection (r) intentionally left blank.

(s) Gamblers Anonymous Literature. All card room permittees shall make literature published by Gamblers Anonymous easily available in a visible location in the card room. If literature published by Gamblers Anonymous is available in English, Spanish, Vietnamese, Hmong, Lao, Cambodian, and any other language requested by a patron, the card room permittee shall be required to make such literature easily available.

(t) Inspection of Premises.

(1) All card rooms shall be open for inspection during normal business hours to the Police Chief, the City Controller, the City Auditor or their duly authorized representatives, without search warrant.

(2) All card room records, including but not limited to papers, books of account, ledgers, audits, reports, personnel records, information stored in computers and on computer tape or disks, video tape, microfilm or microfiche, shall be available for inspection and copying during normal business hours to the Police Chief, the Controller or their duly authorized representatives without search warrant.

(u) Entry To Secure Areas Prohibited. It shall be unlawful for any individual player or other unauthorized person to enter any secure areas within the premises or for any operator, agent or employee of any duly permitted card room to permit any player or unauthorized person to enter any secure areas within the card room premises.

(v) Rules on Possession of Cards. It shall be unlawful for any patron or any other person not a permittee or permittee to bring cards into a card room. It shall be unlawful for any person other than a permittee, authorized employee or a patron then playing cards to have playing cards in his or her possession while in a card room. It shall be unlawful for any person in a card room other than on-duty employees with valid registration cards to have playing cards in his or her possession outside of a designated card playing area.

(w) Cooperation Against Unlawful Practices. It shall be the responsibility of the permittee, management and their employees to fully cooperate with card game surveillance and protection personnel in the detection, apprehension and identification of those individuals involved in cheating, fraudulent practices, or other unlawful practices. Management shall retain and deliver to the Police Department as evidence in arrests or detention all playing cards and implements suspected of involvement in cheating. Management shall cooperate with card club surveillance personnel whether provided by a governmental policing agency, a city-contracted service, city-administered or permittee-assigned.

(x) Cardrooms are permitted to operate on a twenty-four (24) hour a day basis. Those establishments who choose to limit the hours of operation shall clearly post on the premises the hours during which the establishment shall be open for business.

(y) Permittees are liable for the security and safety of the patrons of the cardroom, unless limitations on said liability are clearly posted on the cardroom premises to provide adequate notice to patrons of said limitations.

(Added Ord. 94-50, § 2, eff. 8-19-94; Am. Ord. 96-44, §§ 2—5, eff. 7-19-96; Am. Ord. 98-39, §§ 6, 7, eff. 7-20-98; Am. Ord. 98-72, § 2, eff. 10-23-98; Am. Ord. 2005-14, § 36, eff. 4-9-05; Am. Ord. 2007-57, § 1, eff. 9-21-07; Am. Ord. 2009-12, §§ 4, 9, 11, eff. 5-1-09; Am. Ord. 2010-2, §§ 2, 3, eff. 2-25-10).

Editor's note— Ord. 2007-57, effective September 21, 2007, specifically amended § 7-546 of the Code. However, because of the reorganizing of the Code stipulated by Ord. 2007-54, the amendments have been made to § 9-2135.

The Council reserves the right to add to, amend or repeal any of the rules and regulations set forth in this article, and to adopt additional rules and regulations.

(Added Ord. 94-50, § 2, eff. 8-19-94).

The Council further reserves the right to adopt by resolution additional emergency rules and regulations which shall become effective immediately upon adoption. Violation of any such emergency rules and regulations may constitute grounds for the suspension and revocation of the permits and permits issued pursuant to the provisions of this Article.

(Added Ord. 94-50, § 2, eff. 8-19-94).

Any individual violating any of the provisions of this article or any of the rules and regulations set forth, established or promulgated in this article shall be guilty of a misdemeanor.

(Added Ord. 94.50, § 2, eff. 8-19-94).

It is hereby declared to be the intention of the Council that the sections, paragraphs, sentences, clauses and phrases of this article are severable, and if any phrase, clause, sentence, paragraph, section, or subsection of this article shall be declared invalid by the valid judgment or decree of a court of competent jurisdiction, such invalidity shall not affect any of the remaining phrases, clauses, sentences, paragraphs and sections of this article.

(Added Ord. 94-50, § 2, eff. 8-19-94).