Hawaiian Gardens Municipal Code Ch. 5.92 Card Clubs

This chapter shall be known as the "Hawaiian Gardens card club ordinance."

(Ord. 430 § 9, 1995)

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

Applicant means any person or entity who has applied for a license to operate a card club in the City.

Card club means a business or enterprise licensed under the provisions of this chapter for the playing of "games" as defined in this section.

Card game business means the conduct of "games" as defined in this section and shall not include any "related business" as defined in this section.

Chapter means Chapter 5.92 of Title 5 of this Code.

Chief of Police means and includes the designated representative of the Los Angeles County Sheriff's Department or other local authorized Law Enforcement Agency, as applicable.

City means the City of Hawaiian Gardens.

City Administrator means and includes the City Administrator or the City Administrator, as applicable to the City.

Council means the City Council of the City of Hawaiian Gardens.

Game or games means all games (whether or not involving the use of cards) which are lawful in the State of California.

License means a license for the operation of a card club.

Licensee means the person or entity to whom a license has been issued for the operation of a card club pursuant to this chapter.

Owner means every person, firm, association, corporation, partnership, or other entity having any interest, whether legal, equitable or of any other kind or character, in any card club or license.

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

State means the State of California.

(Ord. 447 § 5, 1997; Ord. 430 § 9, 1995)

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

B. No license shall be issued hereunder for any site located outside of the boundaries of the card club overlay district specified in Section 18.20.040 of this Code.

(Ord. 430 § 9, 1995)

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

1. An official receipt from the City Treasurer, indicating receipt of payment in full of the application fee and license fee deposit as required by Section 5.92.050;

2. The date of the application;

3. The true name of the applicant, any aliases of the applicant, and any fictitious business name or names under which the applicant currently operates a business;

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

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

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

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

8. The proposed location for the card club;

9. A list of the games proposed to be played (which list shall be updated whenever games are added or eliminated) and a statement that the games to be played shall be the "games" as defined in Section 5.92.020 only, and that no other games are proposed;

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

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

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

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

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

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

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

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

18. A statement that the applicant has read the provisions of this chapter and particularly the provisions of this section, understands the same and agrees to abide by all requirements contained in this chapter.

Nothing in this section shall require that the premises in which the card game business will take place be designed, constructed, or completed prior to the issuance of a license.

B. Investigations and reports. Whenever an application for a license has been filed with the City Clerk, the City Clerk shall determine whether such application is complete. If the application is determined to be complete and no other application is then being processed, the City Clerk shall immediately refer such application or a copy thereof to the City Administrator's office, whose staff shall promptly and diligently make an investigation as follows:

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

2. A full and complete evaluation of the security and law enforcement requirements of the proposed card club;

3. A comprehensive evaluation of the applicant's financial ability to adequately protect the patrons of the card club and the citizens of the community; and

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

The City Clerk and/or the City Administrator may request in writing that the applicant provide additional relevant information or data not included in the application which information shall be submitted within 30 days after such request, at which time the application shall be certified full and complete. Reports of the investigations required or authorized herein shall be prepared by the City Administrator and submitted to the Council no later than 45 days from the date upon which the City Clerk has certified the application as full and complete.

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

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

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

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

(Ord. 430 § 9, 1995)

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

A. An application fee of $2,500.00, which shall be retained by the City to pay the costs of the investigation of the applicant; and

B. A license fee deposit of $10,000.00. In the event the license is issued, this deposit shall be applied as a credit toward the license fee described in Section 5.92.120 of this chapter. In the event the license is not issued, this deposit shall be returned to the applicant, without interest within 30 days after the determination not to issue the license is made.

(Ord. 430 § 9, 1995)

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

(Ord. 430 § 9, 1995)

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

(Ord. 430 § 9, 1995)

The Council shall not be required to consider any application for a license until such time as the City staff reports have been filed with the Council. In the event that any of such reports are not filed within the time provided in Section 5.92.040 B. of this chapter, the Council in its sole discretion may proceed further without such reports or may extend the time in which such reports may be filed but in no event for more than an additional 45 days.

(Ord. 430 § 9, 1995)

A. Within 30 days after all staff reports have been filed, the Council shall schedule a public hearing on the application, which hearing shall occur no later than 30 days thereafter.

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

C. At the conclusion of the public hearing, the Council shall, by resolution, approve, conditionally approve, or deny the license application. The resolution setting forth the Council's decision shall include findings setting forth the facts and basis for the approval, conditional approval, or denial. Upon adoption of the resolution, the Council's decision on the application shall be final.

(Ord. 430 § 9, 1995)

The Council may, in its discretion, deny a license application, provided that such action shall be reasonable and based on at least one of the following reasons:

1. Conviction of any crime punishable as a felony or of any crime of violence, any crime involving fraud, gambling, loan cere, 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 proposed business or activity to be operated in compliance with this chapter or Federal or State law;

3. Identification by any Law Enforcement Agency, legislative body or Crime Commission as a member of, or an associate of, organized criminal elements;

4. Knowingly making any false statement in the application or as to any other information presented as part of the application process;

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

6. Applicant does not have the financial capability or business experience to operate a card club in a manner which would adequately protect the patrons of the card club and the citizens of the community;

7. Applicant is presently under indictment or the subject of a criminal complaint for any of the crimes described in subsection 1.;

8. Lack of evidence that there is adequate financing available to pay potential current obligations and, in addition, to provide adequate working capital to finance opening of the card club proposed;

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

10. The plan for maintaining the security of the card club is not adequate to keep all cash reserves and deposits in the card club, as well as the inhabitants of the card club, reasonably safe from theft, robbery and burglary;

11. Proposed location of card club in an area other than in a card club overlay district.

(Ord. 430 § 9, 1995)

In approving an application for a license, at the conclusion of the public hearing described in Section 5.92.090, the Council shall issue the license and may impose reasonable conditions upon such license consistent with the requirements contained herein. The City Clerk shall forthwith provide to the applicant a copy of the City's acceptance form, which shall state that the applicant is aware of and will abide by all such conditions imposed by the Council. Upon receipt of the acceptance form signed by the applicant, the City License Collector shall thereupon issue the license, which shall be for a term of 25 years from the date on which it was issued, unless revoked by the Council pursuant to the provisions hereof or surrendered by the licensee. In the event of the surrender, suspension, revocation or expiration of the license, no portion of any license fee or deposit shall be refunded. Not more than one year nor less than six months prior to the expiration of a license, the licensee may file with the City Clerk an application for renewal of the license.

(Ord. 430 § 9, 1995)

A. An annual license fee shall be payable with respect to each license issued pursuant to this chapter, which fee shall be payable to the City upon commencement of operations and then on the anniversary date of such commencement date each year thereafter. The annual license fee shall be in the sum of $25,000.00. The license fee deposit, as described in Section 5.92.050(B), shall be credited to the first annual license fee to be paid upon commencement of operations.

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

(Ord. 430 § 9, 1995)

A. In addition to the annual license fee prescribed by Section 5.92.120 of this chapter, and in lieu of a gross receipts tax or other tax, fee, charge or assessment which the City may otherwise impose, each licensee shall pay to the City a monthly fee, which shall be a percentage of the total monthly gross revenue of the card game business, according to the following schedule:

The monthly gross revenue license fee required under this section, shall be due and payable on the first day of each and every month following the calculation of the monthly gross revenue of the card club for the previous month. For example, and by way of illustration only, the monthly license fee calculated from the monthly gross revenue for the month of June would be due and payable on July 1st and delinquent on July 31st.

B. Upon review of any audit or other year-end report required under the audit plan described in Section 5.92.140, the City Administrator shall cause to be conducted an evaluation of the gross revenue license fee set forth in this section. The Council may by resolution adjust the gross revenue license fee, provided that such fee shall not be increased for two years following the commencement of licensee's operations, and thereafter, the fee shall not be higher than the greater of (a) the fee set forth above, or (b) the mean average percentage of equivalent fees paid by licensed card clubs located within a 50-mile radius of the licensee's card club.

(Ord. 458 § 1, 2001; Ord. 430 § 9, 1995)

A. For failure to pay the requisite monthly gross revenue license fee under Section 5.92.130(A) of this chapter when due, the City Administrator, or his/her designee, shall add a penalty of 20 percent of the monthly license fee on the last day of the month on which the monthly license fee is currently due and payable. For continued failure to pay the monthly license fee in the subsequent months, the City Administrator, or his/her designee, shall add an additional penalty of 20 percent per month; provided, that the amount of such penalty to be added shall, in no event, exceed 100 percent of the amount of the applicable monthly license fee.

B. In addition to the above penalty, 12 percent simple interest shall be added to any monthly gross revenue license fee delinquent and determined to be payable.

C. Twelve percent simple interest shall be added to any annual license fee delinquent and determined to be payable under Section 5.92.120.

(Ord. 458 § 2, 2001)

Prior to the issuance of the license, but after the license has been approved by the Council, the licensee shall submit to the City Administrator a plan for independently auditing and reporting the gross revenue of the card game business and for recordkeeping. The City Administrator shall notify the licensee in writing within 45 days of the date submitted, of his/her approval or disapproval of the plan. The licensee shall cooperate with the City Administrator in revising the plan as necessary to obtain the approval of the City Administrator. The licensee shall re-submit the auditing plan to the City Administrator for approval annually on the anniversary of the date on which the license was issued.

(Ord. 430 § 9, 1995)

A. There exists a compelling need to regulate the number of card clubs in the relatively small City of Hawaiian Gardens, so that the City's limited regulatory and police resources are not overtaxed, its limited commercial designated property remains used for, and desirable to, other types of commercial uses, and the health, safety and welfare of residents are protected from the impacts of an over-concentration of these uses.

B. The Council may initially grant one license for a card club in the City. Subsequent licenses may be issued if the City Council affirmatively finds that the additional licensed card club(s) will not have a detrimental impact on the community health, safety and welfare, law enforcement, traffic, income production to the City, the integrity of residential and commercial areas in the City, or the accomplishment of the City's general plan goals.

(Ord. 430 § 9, 1995)

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

(Ord. 430 § 9, 1995)

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

(Ord. 430 § 9, 1995)

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

(Ord. 430 § 9, 1995)

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

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

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

(Ord. 430 § 9, 1995)

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 Administrator under the circumstances provided below until a decision is rendered by the City Council pursuant to this chapter. The matter of such suspension shall be submitted to the City Council at the first meeting following the City Administrator's action. A license may be immediately suspended if the City Administrator finds that:

1. The Attorney General has suspended or revoked a licensee's or applicant's registration under the California Gaming Registration Act; or

2. A licensee has violated, or caused the violation of, or knowingly permitted an agent or employee of the licensee to violate, any provision of this chapter, any regulation issued pursuant to this chapter, any condition of approval imposed upon the issuance of the card club license, or any State law or regulation relating to the operation of a card club where the continued operation of the club in the light of such violation jeopardizes, or threatens to jeopardize, the public welfare.

B. Suspension or revocation by the City Council after a public hearing held after not less than 30 days written notice to the licensee detailing with specificity the nature and extent of the facts that relate to such proposed suspension or revocation along with all relevant documents related thereto, and after testimony has been taken from the licensee and/or any other interested person, if the City Council finds that:

1. The Attorney General has suspended or revoked a licensee's or applicant's registration under the California Gaming Registration Act; or

2. A licensee or applicant has violated, or caused the violation of, or knowingly permitted an agent or employee of the licensee to violate, any provision of this chapter, any reasonable condition of approval imposed upon the issuance license, or any State or Federal law relating to the operation of a card club; or

3. A licensee has failed to pay, when due and payable, any of the fees provided for in this chapter within ten days after written notice of any such failure;

4. A licensee has made any fraudulent statements as to a material fact on an application form or as to any other information presented as part of the application process; or

5. A licensee knowingly commits any act which would have constituted grounds for denial of an application for a license;

6. The licensee has knowingly continued to employ in any card club any individual whom the City Council or any court has found guilty of cheating or using any improper device in connection with any game, whether as a licensee or player at a licensed game, or any person whose conduct of a licensed game as an employee of a licensee resulted in revocation, or suspension of the card club license of such licensee;

7. The licensee has been convicted of a crime punishable as a felony or of any crime of violence, any crime involving fraud, gambling, loan cere, 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. Such a conviction may be deemed by the City Council as suitable grounds for revocation or suspension of the licensee's card club license, prior to the exhaustion of the licensee's appellate rights, if the conviction acts as a detriment to card club activity in the City.

(Ord. 430 § 9, 1995)

In the event of any violation described in Section 5.92.200, or of any violation described in any other section of this chapter, the City Administrator shall promptly notify the licensee in writing of all of the facts upon which the violation is based, detailing with specificity the nature and extent of the facts that relate to the alleged violation, and the licensee shall have a reasonable time, as set forth in such notice, but in no event less than ten business days from the date of the notice, to cure such violation. The City Administrator shall, under appropriate circumstances on good cause, upon the written request of licensee, extend the time within which the violation shall be cured, and written notice of such extension of time shall be delivered to licensee. If the violation has been cured within the time set forth in the written notice, there shall not be any fine, penalty or other sanction. If the violation has not been cured within such reasonable time set forth in the written notice, in lieu of revocation or suspension of a license, or in the event of any minor violation of this chapter, the City Administrator shall recommend to the Council that a fine, not to exceed $10,000.00 for each violation, be assessed against licensee. If the City Administrator recommends a fine, such fine may be imposed by the Council after a hearing pursuant to Section 5.92.210, which hearing shall be held not less than ten business days after expiration of the cure period.

(Ord. 447 § 5, 1997)

A. Oral evidence shall be taken only on oath or affirmation.

B. Both the City and the licensee shall have the right to call and examine witnesses, to introduce exhibits, to cross-examine witnesses, to cross-examine opposing witnesses on any matter relevant to the issue, whether or not that matter was covered in the direct examination, to impeach any witness regardless of which party first called the witness to testify, and to rebut the evidence against any witness. The licensee may require the attendance of witnesses by requesting the issuance of subpoenas by the Council at least 24 hours prior to the hearing.

C. The technical rules relating to evidence and witnesses, as provided in the California Evidence Code, shall not apply. However, only evidence relevant to the subject matter of the hearing and which is not repetitious will be accepted. Hearsay evidence is admissible, but is not sufficient in itself to support a suspension or revocation of the license.

D. If the matter constituting possible grounds for revocation has been corrected, eliminated or resolved prior to the scheduled hearing or continued hearing, the Council shall not be required to set the matter for public hearing or may cancel a hearing or continued hearing if previously scheduled.

(Ord. 430 § 9, 1995)

The decision of the City Council shall be rendered at the conclusion of the public hearing and shall be final and conclusive. In the event of suspension or revocation of a license, no part of any license fee previously paid shall be refunded.

(Ord. 430 § 9, 1995)

Any failure or refusal of a licensee to file any statement within the time required, to pay any license fee when due, or to permit inspections of the books, records, and accounts of the card game business of the licensee after ten days written notice to such licensee and the licensee's failure or refusal to continue to so comply, shall constitute full and sufficient grounds for the revocation or suspension of the license of that licensee in the sole discretion of the Council.

(Ord. 430 § 9, 1995)

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

(Ord. 430 § 9, 1995)

In the event of the revocation of a license, no new license shall be issued to such licensee except upon application made pursuant to Section 5.92.040 as if the licensee were a new applicant.

(Ord. 430 § 9, 1995)

A. Except as provided in Section 5.92.265, a person who desires to be employed by a card club in the city shall obtain an employee work permit. It is unlawful for any licensed card club in the City to employ any person who does not have an employee work permit issued by the Chief of Police or by the Division of Gambling Control of the State of California Department of Justice (the "Division").

B. Employee work permits may not be transferred or assigned.

C. Any person wishing to obtain an employee work permit from the City shall file an application with the Chief of Police. The Chief of Police shall process and review all applications for employee work permits in accordance with such rules and regulations as may be promulgated by the City in accordance with this chapter. The application shall be completed and the applicant will be required to provide photographs and fingerprints, in addition to such other information as the application may require. The investigation and permitting fee for each said prospective employee shall be determined in the reasonable discretion of the Chief of Police, but which in no event shall exceed the costs to the City for processing the application and for such background investigation. If an employee is issued an employee work permit, the Chief of Police shall immediately notify the permittee, in writing, of such issuance. No person may apply for a work permit which has been revoked or denied for a minimum of one year from the date that the denial or revocation is final, absent a change in facts causing the revocation or denial, or otherwise showing good cause.

D. The Chief of Police shall, on behalf of the City, promptly upon receipt of such application, submit the completed application to the California State Department of Justice. The State Department of Justice shall provide summary criminal history information to the Chief of Police for the purpose of issuing work permits. Upon the receipt by the Chief of Police of such criminal history information, provided the criminal history information does not reveal any grounds set forth in subsection E. of this section for denial of an application, the Chief of Police shall approve such application within 15 days.

E. The Chief of Police shall consider denying an application, or suspending, or revoking an employee work permit for any one of the following reasons:

1. The applicant has knowingly and willfully made any false statements in the application, or if any other information presented as part of the application process is knowingly and willfully false, or if the applicant has failed to disclose, misstate or otherwise mislead the City with respect to any fact contained in any application for a work permit; or

2. The applicant is less than 21 years of age; or

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; or

4. Conviction of any misdemeanor involving dishonesty or moral turpitude within the ten-year period immediately preceding the submission of an application, unless the applicant has been granted relief pursuant to Section 1203.4, 1203.4a, or 1203.45 of the Penal Code; provided, however, that the granting of relief pursuant to these sections shall not constitute a limitation on the discretion of the City; or

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

6. Committed, attempted, or conspired to do any acts prohibited under the Gambling Control Act; or

7. Committed, attempted, or conspired to commit, any embezzlement or larceny against a gambling licensee or upon the premises of a gambling establishment; or

8. Convicted in any jurisdiction of any offense involving or relating to gambling; or

9. Been refused the issuance of any license, permit, or approval to engage in or be involved with gambling or pari-mutuel wagering in any jurisdiction, or had the license, permit, or approval revoked or suspended; or

10. Been prohibited under color of governmental authority from being present upon the premises of any licensed gambling establishment where pari-mutuel wagering is conducted, for any reason relating to improper gambling activities or any illegal act; or

11. If required to do so by the laws of the State of California or by the Division.

F. The Chief of Police may issue an order summarily suspending a person's work permit upon a finding that the suspension is necessary for the immediate preservation of the public peace, health, safety, or general welfare. The order is effective when served upon the holder of the permit. An order of summary suspension shall state specific facts upon which the finding of necessity for the suspension is based. An order of summary suspension shall remain in effect for no more than ten days, or until a final decision is rendered by a hearing officer appointed by the City Administrator, whichever occurs first. Upon the expiration of the ten-day period, the holder of the permit shall have the work permit reinstated if the City Administrator or the appointed hearing officer has determined that such reinstatement is appropriate. In the event that the City Administrator or the appointed hearing officer determines that the work permit should be revoked, the action shall be stayed pending an appeal in accordance with subsection H. of this section.

G. If an application is denied by the Chief of Police, the applicant may appeal such denial by written notice to the City Administrator who shall cause a hearing to be held before a hearing officer within 30 calendar days of receipt of such notice. No fee shall be charged for the filing of a request for an appeal. The hearing officer shall be unrelated to the City, and to any of its officers or employees. The hearing officer shall be an attorney, qualified arbitrator, or retired judge. The hearing officer shall schedule and conduct such hearing in accordance with the rules and regulations promulgated in Section 1.13.090 of the Hawaiian Gardens Municipal Code. At the conclusion of such hearing, the hearing officer shall issue a decision in writing within 15 days which shall reflect either the hearing officer's approval, conditional approval, or denial of the application. The hearing officer's decision shall be final and conclusive. The cost of such hearing shall be borne by the applicant. If an application is denied by the Division, the applicant may apply to the Division for an evidentiary hearing in accordance with such procedures as promulgated by the Division.

H. In the event that a work permit is suspended or revoked, the holder of the permit may appeal the determination by submitting a written request to the City Administrator no later than 60 calendar days from the date the notice was served upon the holder of the permit. No fee shall be charged for the filing of a request for an appeal. Upon receipt of the written request, the City Administrator shall cause a hearing to be held before a hearing officer within 30 calendar days in accordance with the procedures set forth in subsection G. of this section. Failure to submit a written request for a hearing within the 60 days shall be deemed a waiver of the right of appeal. During the 60 day period following the date the notice of revocation was issued and any time period prior to the scheduled appeal hearing date, any proposed action, including termination of the employee or any reduction in employee compensation shall be stayed pending final determination of the hearing officer. Any person aggrieved by a final decision or order of the hearing officer suspending or revoking the permit may petition the Superior Court for the County of Los Angeles for judicial review pursuant to Section 1094.5 of the Code of Civil Procedure.

I. When the application for an employee work permit is approved or conditionally approved, whether by the Chief of Police, the hearing officer, or by the Division, the City shall immediately issue an employee work permit to such employee and shall immediately so advise the card club employer in writing. The employee shall be required to carry the employee work permit on his or her person at all times while working on the card club premises. The employee work permit, or such other evidence of employment of each employee by the card club, shall be displayed on the person of such employee in accordance with the rules established by the card club employer.

J. When a card club terminates the employment of an employee for any reason whatsoever, the holder of the employee work permit shall immediately surrender his or her employee work permit to the card club employer who shall then remit the same to the City.

K. When all appeals of the denial, suspension or revocation of an employee work permit have concluded, upon final and conclusive action by the hearing officer or by the Division, or in the absence of any appeal, the holder of the employee work permit shall immediately surrender his or her employee work permit to the card club employer who shall then remit the same to the City. Upon the card club employer being advised in writing of the conclusion of such appeals upon such final and conclusive action of the hearing officer or by the Division, or in the absence of any appeal, the card club employer shall immediately discharge such employee.

L. All information received by the City shall be treated as confidential and shall be accessible only to the City Administrator and/or designee, the Police Department, the City Attorney, and, if determined appropriate by the Chief of Police or City Attorney, to the permittee or applicant, or their attorney.

(Ord. 512U § 3, 2006; Ord. 447 § 5, 1997)

(Ord. No. 586, § 2, 12-10-2019)

Notwithstanding anything in this Chapter 5.92 to the contrary:

A. A person who is 21 years of age or older may begin working on a temporary basis without a work permit as an employee if:

1. The person applied for a work permit;

2. The person holds a position that is not supervisory, is not related to the operation or administration of gambling, and does not perform employment duties in the area where gambling is conducted; and

3. The person wears a temporary badge on their outermost garment at chest level with their name, picture, and the words, "Non-Gaming Employee, Work Permit Pending."

4. Except as provided in Subsection B. of this section below, after the person has received a work permit, the person may perform any duties for which a work permit is required. If the person is denied a work permit, the person shall not work as an employee in any gaming or nongaming job.

B. A person who is 18 through 20 years of age may be employed without a work permit as an employee in job classifications that entail providing services exclusively off the gaming floor and that are not involved in the play of a controlled game if:

1. The person holds a position that is not supervisory and not related to the operation or administration of gambling;

2. The person is not allowed to perform any duties of an employee on the floor of the gambling establishment or in areas that are identified as restricted access areas to employees, including, but not limited to, the cage, count room, surveillance room, security office, vault, and card storage; and

3. The person wears a badge on their outermost garment at chest level that has with the words "Non-Gaming Employee: Under 21" and that has a different background color than the badges worn by other employees.

(Ord. No. 586, § 3, 12-10-2019)

All rooms in which games are played shall be accessible and visible to all patrons and shall have no less than five tables per room. The licensee shall permit authorized governmental officials to observe all portions of the premises on a 24-hour basis, and the entire premises shall be open for inspection during all hours by the City Administrator or his/her representative, without a search warrant.

(Ord. 430 § 9, 1995)

The licensee shall allow the City Administrator or his/her designee unrestricted access to all books, records, and facilities of the card club, including but not limited to cash counting rooms and vault. It shall be the duty of the City Administrator 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 chapter or pursuant to the order of any court of competent jurisdiction. All information obtained pursuant to this chapter, or any statement or other information filed by licensee, shall be treated as confidential and shall not be subject to public inspection. Notwithstanding, such information may be used in connection with the enforcement of this chapter.

(Ord. 447 § 5, 1997)

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

(Ord. 430 § 9, 1995)

A. A person under the age of 21 is not permitted to enter upon the premises of a card club, or any part thereof, except for the following areas:

1. An area separated from any gambling area used for a nongaming purpose, including for maintenance, parking, or business offices, or for the purpose of dining or food or beverage service or preparation. For purposes of this section, any place wherein food or beverages are dispensed primarily by vending machines shall not constitute a place for dining.

2. Restrooms.

3. A supervised room that is physically separated from any gambling area and used exclusively for the purpose of entertainment or recreation.

4. Those areas authorized in connection with employment in accordance with subsection B. of Section 5.92.265.

B. A person who is under 21 years of age and not employed per subsection B. of Section 5.92.265 may enter upon or pass through a gambling area on a designated pathway to reach any of the areas described in subsection A. of this section only if accompanied by a person or employee who is 21 years of age or older.

C. No licensee or holder of an employee work permit shall knowingly and willfully permit or allow any person under the age of 18 years to enter upon the premises of a card club, or any part thereof, or nor shall any licensee knowingly and willfully permit or allow any person under the age of 21 to play any of the games authorized by the license.

(Ord. 447 § 5, 1997)

(Ord. No. 586, § 4, 12-10-2019)

The Council may from time to time enact rules and regulations governing the operation of card clubs and the activity conducted in card clubs, provided such rules and regulations do not conflict with the provisions of this chapter. Copies of the rules and regulations shall be given to all licensees prior to the effective date thereof. It is unlawful for any licensee or other person or entity to violate any of such rules or regulations.

(Ord. 430 § 9, 1995)

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

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

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

C. The licensee will from time to time, upon request by the City, furnish to the City reasonable data concerning the nature of the efforts by the licensee to otherwise comply with this section.

(Ord. 430 § 9, 1995)

The people, in adopting the provisions of this chapter which permits the playing of the games, declare that the playing of games not prohibited by statute is conducive to public morals when such games are played and conducted according to all laws, rules and regulations, and that in any proceedings to revoke or suspend a license, to abate the business conducted thereunder, or to prosecute the licensee or its employees for any act authorized thereby, it shall be presumed that such acts are not unlawful and that such business is not a public or private nuisance.

(Ord. 430 § 9, 1995)

It is unlawful for any person or entity to violate any of the provisions of this chapter or any of the rules and regulations established or promulgated hereunder.

(Ord. 430 § 9, 1995)

Any person or entity violating any of the provisions of this chapter or any of the rules and regulations promulgated hereunder shall be guilty of a misdemeanor.

(Ord. 430 § 9, 1995)

The people of the City reserve the right and power to amend any and all provisions of this chapter. Any such amendments may not be violative of any provisions of State law or the final judgment of a court of competent jurisdiction. The City Council may, without a vote of the electorate, amend any of the provisions of this chapter except as follows:

A. The annual and monthly license fees provided for in Sections 5.92.120 and 5.92.130 shall not be increased, without the consent of the licensee;

B. The types of games permitted shall not be further limited; and

C. Sections 5.92.100, 5.92.110, 5.92.150 and 5.92.200 shall not be subject to modification.

(Ord. 430 § 9, 1995)

A card club shall be permitted to operate 24 hours each day, 365 days of the year.

(Ord. 447 § 5, 1997)

Section 5.92.020 permits the playing in a licensed card club of all "games" (whether or not involving the use of cards) so long as they may be lawfully played in the City. No holder of an employee work permit shall knowingly and wilfully permit or allow the playing of any card games other than those specifically authorized by the licensee, nor shall a licensee or a holder of an employee work permit knowingly and wilfully permit or allow the playing of any games that may not lawfully be played in the City pursuant to any applicable statute of the State.

(Ord. 447 § 5, 1997)

There shall be no limit on the size of any single bet except as may be determined by licensee.

(Ord. 447 § 5, 1997)

There shall be no more than 600 licensed gaming tables in the City. The maximum number of gaming tables permitted in any one card club shall be 374.

(Ord. 561 § 1, 2015; Ord. 447 § 5, 1997)

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

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

Blind shuffle means to falsely shuffle or to give the deceptive impression of intermixing playing cards, while actually retaining that same sequence of all or a group of cards.

Burn is a discard in accordance with the rules of the game, made before the draw when playing draw poker.

Capping or pinching means increasing or reducing a wager during the course of a hand.

Capping the deck means to place cards onto the top of the deck.

Cheating means and includes, in addition to each and all of those acts defined or described in this section, any and all undefined acts of fraud, misrepresentation, dishonesty, false pretense, use of device or manipulation of card or cards, done with the purpose of defrauding or gaining an unfair advantage over another player whether or not an actual advantage is actually gained.

Cooler means a deck of cards, secretly prearranged in a known sequence or marked to be substituted for the deck in play.

Daubing means to mark cards by applying a faintly visible substance to the back of the cards.

Hand mucking means the surreptitious switching of cards from those that are dealt to a player.

Hold-out means a mechanical device used for the purpose of surreptitiously switching or retaining cards.

Hopping the cut means to surreptitiously nullify the cutting of the deck.

Individual, as such term is used in this section, means and includes, but is not limited to, any person, player, dealer, employee or agent, or any group thereof.

Middle dealing means to deal a card from the center of the deck.

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

Punching means to mark the back of the cards by crating a dimple or indentation thereon.

Roughing fluid means a liquid chemical applied to the back of the cards for the purpose of marking them by roughening the surface.

Run-up or stacking or stocking means to shuffle the cards in such a fashion as to surreptitiously arrange the sequence to known cards.

Sanding means to mark cards by applying an abrasive substance to the cards.

Second dealing or seconds means to deal a card which is second from the top of the deck.

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

Slick sleeve or mohair sleeve means a hidden sleeve in or on a clothing garment to assist in holding out playing cards.

Slug means a group of cards.

Transmitter means an electronic or radio device used for the purpose of transmitting signals or information to another player, who receives such signals or information by use of a "receiver."

White flash means a form of daubing whereby a chemical is used to create a "white on white" marking on the back of the cards.

B. It is unlawful for any individual to commit any act of cheating in, on or about the premises of a card club. No cheating shall knowingly and wilfully be permitted or tolerated by any licensee or holder of an employee work permit. Any individual suspected of cheating shall be reported to the appropriate law enforcement authorities by licensee, and licensee shall fully cooperate with the investigation of the individual or individuals of any such alleged cheating. If said individual or individuals are criminally charged with any violation of this section, or under any Federal or State law, licensee shall fully cooperate (at no cost, expense or liability to licensee) in the prosecution of said individual or individuals.

C. Any cheating devices found on or around any individual in, on or about a card club, shall be confiscated and shall not be returned to the individual using or bringing such devices in, on or about the premises of a card club, whether or not the alleged offender is arrested or prosecuted. Knowingly and wilfully permitting or tolerating cheating by the licensee shall be grounds for immediate suspension or revocation of a license, or imposition of additional fines and conditions.

D. It is unlawful for any individual to deal, draw, distribute or burn any playing cards other than the top card of the deck. The "top card" is defined as the uppermost face down card of a face down deck. It is unlawful to deal or cause to be dealt what is known as a second, bottom or to engage in Greek dealing or middle dealing.

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

F. It is unlawful for any individual not authorized by a licensee to bring any gaming equipment, including but not limited to, playing cards, into a card club. It is unlawful for any individual in a card club, other than on-duty employees with an employee work permit, to have gaming equipment, including but not limited to, playing cards, in his/her possession outside of a designated card playing area. Nothing herein shall apply to destroyed or mutilated cards or any souvenir or designer decks that could not be misconstrued as playing cards used in the card playing area.

G. It is unlawful for any individual not authorized by licensee to remove any gaming equipment, including but not limited to playing cards, from the premises of a card club.

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

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

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

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

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

M. It is unlawful for any individual to use any of the cheating techniques prohibited by this section, or to engage in cheating of any kind or description whatsoever, whether or not such techniques are specifically defined or are successful. The licensee shall immediately notify the authorized Law Enforcement Agency upon the detention of any individual suspected of cheating.

N. Licensee shall fully cooperate with card game surveillance and protection personnel in the detection, apprehension and identification of those individuals involved in cheating or other fraudulent practices. Licensee shall retain and deliver to the authorized Law Enforcement Agency, as evidence in arrests or detention all playing cards and implements suspected of involvement in cheating. Licensee shall confiscate any and all gaming equipment found on the person or in the possession and/or control of all individuals involved in cheating or fraudulent practices, including accomplices in or about the premises of a card club. Licensee shall cooperate with card club surveillance personnel, whether provided by a governmental policing agency, a City-contracted service, City-administered, or licensee-assigned.

O. The local Law Enforcement Agency, upon being notified by card club personnel, or by game surveillance personnel, that an individual is being detained for cheating, shall immediately respond to the card club, and shall ascertain the identity of those involved in the cheating, the circumstances involved and decide what legal action, if any, is deemed appropriate, and shall assist as legally required in any citizen's arrest. The local Law Enforcement Agency shall immediately freeze any in-house account of any person arrested for cheating under this section, and such account shall continue to be frozen until further order of a court of competent jurisdiction.

P. Licensee shall at all times keep a current copy of this section in its administrative office in the premises of the card club. Licensee shall also post on the premises of the card club, and in a location where it is easily accessible to be read by all persons, a notice stating that this section is available for inspection, upon request, in the administrative office of the card club, during all hours of card club operations.

(Ord. 447 § 5, 1997)

A. A licensee may remove any person from in, on or about any card club premises licensed for use as a card club if, in, on or about the premises of the card club, that person:

1. Appears to or otherwise engages or has engaged in disorderly conduct, as defined in Section 647 of the California Penal Code;

2. Appears to or otherwise interferes or has interfered with a lawful gambling operation;

3. Appears to or otherwise solicits or has solicited or engages or has engaged in any act of prostitution;

4. Appears to or otherwise is or has been under the influence of any intoxicating liquor or drug;

5. Appears to or otherwise has been mentally incapacitated to the extent that such person cannot care for himself/herself or control his/her actions;

6. Appears to or otherwise is or has been overly loud, panhandles, is boisterous, or is otherwise disturbing or offensive to other persons in, on or about the card club;

7. Appears to or otherwise commits or has committed any public offense; or

8. Is or was a person, who the Division, by regulation, has determined should be excluded from licensed gambling establishments in the public interest.

B. Except as provided in Section 5.92.421(A)(4), removal of a person from the premises of a card club pursuant to this section carries no presumption that the person is within the class of persons defined as "undesirable persons" in Section 5.92.421.

(Ord. 447 § 5, 1997)

A. A licensee may exclude from all or any portion of the premises of a card club any person who is determined to be "undesirable" within the meaning of this section. For the purposes of this section, the following persons shall be deemed to be "undesirable":

1. Persons who have engaged in any act of, or who have been convicted of, bookmaking or illegal wagering;

2. Persons who have been engaged in acts prohibited in Section 5.92.410;

3. Persons who have been convicted of a violation of Section 5.92.410;

4. Persons who have been removed from the premises pursuant to Section 5.92.420 on more than one occasion; or

5. Persons whose presence is inimical to the interests of the licensee as determined by licensee in its sole discretion.

B. For purposes of this section:

1. "Bookmaking" means and includes, but is not limited to, any act prohibited by Section 337(a) of the California Penal Code, or by Section 19595 of the California Business and Professions Code;

2. "Illegal wagering" means and includes, but is not limited to, any act prohibited by Sections 319 through 336, inclusive, of the California Penal Code.

(Ord. 447 § 5, 1997)

A. Licensee shall inform any person excluded from the premises of a card club of the reason for the exclusion and shall notify such person of the provisions of Sections 5.92.420 through 5.92.424. Notification shall be made by delivery to the person excluded of an order of exclusion issued by licensee, to which shall be attached a copy of Sections 5.92.420 through 5.92.424 of this chapter.

B. Licensee shall immediately notify the Sheriff's Department or other authorized local Law Enforcement Agency of the name of the person so excluded, the reason for the exclusion, and provide such other information required by the Sheriff's Department or other authorized local Law Enforcement Agency.

(Ord. 447 § 5, 1997)

No person named in an order of exclusion shall fail to comply with the terms of such order. An order of exclusion shall be enforceable by licensee by any lawful means, including a civil injunction proceeding or other appropriate remedy, in the Los Angeles Superior Court or other court of competent jurisdiction, or by local law enforcement.

(Ord. 447 § 5, 1997)

Each licensee shall designate an agent who shall be authorized to act for licensee pursuant to the provisions of Sections 5.92.420 through 5.92.424.

(Ord. 447 § 5, 1997)

Licensee shall take all steps reasonably required to protect and preserve the security and safety of its patrons in and around the card club. In order to protect and preserve the security and safety of its patrons as well as its employees, licensee shall be permitted to use video and/or audio surveillance equipment in its card club, as determined by licensee in its sole discretion, provided that licensee posts notice near the entrance of the card club informing patrons of the use of such equipment. Nothing in this chapter, including but not limited to this section, is intended to impose liability or responsibility on licensee or on any of licensee's employees or agents, if any individual, person, player, dealer, employee, agent, licensee, or any other person or entity, is injured or suffers damages or losses in, on or about a card club.

(Ord. 447 § 5, 1997)