Chapter 3 — CARD ROOMS

The purpose of this chapter is to allow the continued operation of card rooms in the city and to comply with the new provisions of the state gaming laws and regulate card rooms in order to protect the public health, safety and welfare of the patrons of such facilities and the citizens and consumers in the city.

(Ord. 684 C.S., passed 6-3-98)

For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.

APPLICANT. Every person, as defined under this code, filing an application with the city seeking a card room permit or any other permit required under this chapter.

BENEFICIAL INTEREST. Any 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.

CARD ROOM. Any building or structure, or portion thereof, for which a card room operating license 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.

CARD ROOM OPERATIONS LICENSE. A license issued pursuant to this chapter allowing the operation of a card room.

CARD TABLE. Any table or any other surface upon which any game is played.

COMMENCE. To "commence", "initiate", "start", "open" and/or "establish".

CONDUCT. To "conduct", "transact", "maintain", "prosecute", "practice", "manage", "operate", "permit", "allow", "suffer" and/or "carry on".

CONVICTION OR CONVICTED. A plea of guilty, a final verdict of guilty or a conviction following a plea of no lo contendere.

COUNCIL. The Council of the City of Madera.

DAY. "Calendar day" unless otherwise expressly stated.

EMPLOYEE. 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 chapter.

FILING AND PROCESSING FEES. The imposition, pursuant to this chapter 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.

FINANCIAL INTEREST. 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 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.

GAME. Legal gambling or gaming as defined below.

GROSS REVENUE. 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.

INTEREST-HOLDER. Any person having a financial interest or beneficial interest in the licensee as well as all stockholders of any entity having a financial interest or beneficial interest in the licensee.

KEY MANAGEMENT EMPLOYEE. Includes any person, whether or not such person is a named officer director of the licensee, with the power to (i) direct operations and (ii) direct supervisory and several employees of a card room; any person with the actual or apparent authority to direct the counting of revenue generated by the card room, and any person employed or engaged by the licensee to manage the card room.

LEASE. 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 trust indenture.

LEGAL GAMBLING OR GAMING. 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 chapter.

LESSOR. 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.

LICENSEE. The person or entity to whom a card room operations license is issued.

MANAGER. Any agent or employee of a licensee whose duties include but may not be limited to the following: The making or changing of a 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 licensee.

PERMIT FEES. All fees levied upon each licensee and permittee pursuant to this chapter.

PLAYING CARDS OR CARD GAMES. The participation in legal gambling or gaming at a card room.

PREMISES. Land together with all buildings, improvements, and personal property located thereon and related to card room use.

SECURITY DEPOSIT. Any security or deposit required by this chapter to ensure the prompt and full payment of any permit fees imposed by the city pursuant to this chapter.

WORK PERMIT. A permit issued pursuant to this chapter authorizing a person to be an employee of a card room. (Ord. 684 C.S., passed 6-3-98)

(A) Every card room operated within the city shall be regulated by the city concurrently with the state as permitted in the Gambling Control Act as codified in section 19800 et seq. of the Business and Professions Code effective January 1, 1998 as amended from time to time.

(B) In conformance with state law, the playing of percentage games is not permissible. 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 players at the table.

(Ord. 684 C.S., passed 6-3-98)

(A) Each card room business license in effect on January 1, 1998 shall be continued in force provided that the licensee does not become subject to revocation under this chapter or § 6-1.17 and the number of tables, the games played, the location and the licensee, are not amended in any way.

(B) This chapter does not create any vested or other property right of any kind in the licensee, interest-holder, key management employee, or other person. The city reserves the right to, at any time, amend, modify or repeal the

provisions of this chapter and to otherwise regulate or prohibit any privileged exercised hereunder. This reservation includes but is not limited to the right of the city to amend, from time to time, a permit or license issued pursuant to the terms of this chapter by resolution of the Council.

(C) Notwithstanding any other provisions of this chapter, should the location of any of the previously approved card rooms listed in § 6-3.10 be acquired through eminent domain, then such card room licensee shall have the right to relocate such card room consistent with the provisions of this chapter. Such relocation shall not allow the expansion of the number of card tables.

(Ord. 684 C.S., passed 6-3-98)

It shall be unlawful for any individual to disclose to any unauthorized person any data or information required under the provision of this chapter or other laws to be kept and maintained confidential. (Ord. 684 C.S., passed 6-3-98)

(A) Other Permits/Licenses Required. All interest-holders, key management employees, managers and employees shall apply for and be issued permits after an individual personal background investigation prior to operating or working in a card room.

(B) All individuals and entities must first obtain a business license, card room operating license and have a use permit for the address at which they intend to operate a card room prior to commencing operations and card room gaming activities within the city.

(C) 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 Finance Director 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) declare under penalty of perjury that the foregoing is true and correct."

(D) The card room operations license, 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 card room operations license applicant), and, the card room operations license shall require that, concurrent with the granting of the card room operations license, each interest-holder and key management employee of the card room operations license applicant shall make application for permits allowing such individuals or entities to be involved in the activities, profits and direction of the card room operation. Interest-holder 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 operations licenses, interest-holder 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 those city officials and employees listed above by blood or marriage, and includes a spouse, child, stepchild, parent, grandparent, grandchild, mother, sister, half-brother, half-sister, aunt, uncle, niece, nephew, parent-inlaw, brother-in-law and sister-in-law or another individual living in the same household.

(E) In addition to other information as may be required by said application forms for a card room operations license, the applicant shall complete and provide the following information in as great detail as is available or as the Finance Director 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, stockholders who qualify as interest-holders and the name, residence and business address of each of the officers and directors of the entity. For purposes of this chapter such officers and directors shall be deemed "Managers" as defined above and shall be subject to all terms and conditions that managers are subject to;

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

(7) An application for a business license, including all information requested on said application form and any additional information deemed necessary by the Finance Director or his or her designee;

(8) 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 manager of the proposed card room operation;

(9) 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;

(11) 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;

(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. Said projection shall be prepared in conformity with generally accepted accounting principles;

(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) A complete description of the internal accounting controls intended to be implemented at the location for which application is being made. Said description shall identify internal controls designed to verify gross receipts, daily deposits and protect against defalcation by employees, management and interest-holders.

(F) If the Finance Director 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 thereof, by reason of the extent of his or her holdings or his or her 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 interest-holders and subject to all investigatory, financial and background reporting procedures established by this chapter for card room interest-holders. 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 chapter.

(G) Each applicant for a card room operations license, an interest-holder's permit, a manager's permit, or a key management employee's permit shall include the following:

(1) A statement that the applicant understands that the applicant 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 Finance Director;

(2) A statement that the applicant understands and agrees that any business or activity 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;

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

(4) A complete statement of financial position for each applicant. The financial statements required by this division (G) shall be prepared in conformity with generally accepted accounting principles and shall be confidential documents not open to public inspection. Documents shall be available only to those officials and employees having direct jurisdiction involving the provisions of this chapter and to any court of competent jurisdiction where any matter thereto may be actually pending.

(5) Concurrently with the filing of their applications, the card room operations license applicant along with their interest-holder and key management employee permit applicants shall be fingerprinted by the Madera 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. Each applicant shall provide two full-face, 2-inch by 2-inch photographs of the applicant for use in preparing the investigation documents.

(H) Interest-holder and Key Management Employee Permit Application. If an applicant for a card room operating license 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.

(I) Each license and/or permit applicant shall be responsible for providing complete and accurate information and for signing the permit or license application. However, it shall be the responsibility of the card room business license applicant (or licensee for subsequent applications) to submit the completed applications and pay any additional fees. (J) The applications for all interest-holders and key management employees shall be submitted as part of the application for the card room operations license. Failure to submit complete applications for each proposed interestholder and key management employee may be grounds for denial or revocation of a card room operations license.

(K) Application Fees. The applicant(s) for a card room operations license shall pay the following fees at the time that the application is made with the Finance Director:

(1) A card room operations license application fee in the amount specified in the Master Fee Schedule as amended from time to time. Said application fee shall be retained by the city for the payment of costs of investigation.

(2) An interest-holders and key management employees permit application fee in the amount specified in the Master Fee Schedule as amended by the Council from time to time. Said application fee shall be retained by the city for the payment of costs of investigation.

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

(4) A business license application fee in the amount specified in the Master Fee Schedule as amended from time to time. Said application fee shall be retained by the city for the payment of costs of investigation.

(5) Any use permit as required by Title 10 of this Code.

• (L) Application Review and Approval Procedures.

(1) Whenever a card room operations license application pursuant to this chapter has been filed, the Police Chief or his or her designee shall cause an investigation to be made covering all matters relevant to the proposed activity of the applicant, individual interest-holders, key management employees and managers. Such matters may include but are not limited to the following:

(a) Identity character and background of the permit applicant, all individual interest-holders, and all key management employees and managers;

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

(c) The financial stability of the interest-holders 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.

(2) Following the investigation, the completed report of the investigation together with the Police Chief's findings and recommendations shall be forwarded to the Council. The Council shall not consider any application for a card room operations license or individual permit applications related to the card room operation license applied for until the Police Chief's findings and recommendations have been completed and forwarded for review.

(3) At such time as the Police Chief forwards 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 operations license 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 1,000 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.

(M) City Council Hearing and Determination.

(1) Upon the submission by the Police Chief of the report on the investigation and recommendations and findings related thereto, the Council shall have jurisdiction to consider such an application.

(2) During the public hearing on the application for a card room operations license, the Council shall consider the application, the Police Chief's report of findings and recommendations, including any report on the investigation along with written and public testimony. Within a reasonable time after the close of the hearing the Council shall make a determination on the application.

(3) The Council, by resolution, has the authority to either grant, conditionally grant or deny the card room operation license application. If the Council finds that the application shall be denied, the order will be accompanied by written reasons upon which the order is based. All such orders will be made public.

(4) It shall be possible for the Council to approve tentatively the application of a license applicant, but disapprove the application for a permit of one or more of the interest-holders or key management employees or managers. In such cases the Council can grant the license applied for subject to the condition that any interest-holder, key management employee or manager disapproved of, be removed as an individual having an interest or control in the card room. Compliance with the removal requirement shall be monitored, reviewed and approved by the Finance Director and the Police Chief prior to final issuance of the card room operations license.

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

(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 Gaming 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 card room.

• (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 Madera.

(9) Applicant is presently under indictment or the subject of a criminal complaint for any of the crimes described in division (N)(1) of this section.

(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 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 the opening of the proposed card room.

(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 measures are identified in the operations license application and/or use permit application.

(Ord. 684 C.S., passed 6-3-98)

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

• (B) Each 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 permitted. Each employee shall:

• (1) Complete an application;

• (2) Be fingerprinted;

• (3) Present two full-face, 2-inch by 2-inch photographs of the employee;

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

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

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

• (D) A fee set forth in the Master Fee Schedule established by resolution of the Council and as amended from time to time, shall be paid together with the registration or renewal application.

• (E) Within 90 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 reason for denial.

• (F) If the background investigation is not completed within the 30 day period, the Police Chief or his or her designee may grant a temporary permit pending a final decision based upon the outcome of the background investigation. The temporary permit shall include issuance of a temporary badge or identification card to the employee that shall be valid for a period not to exceed 60 days.

• (G) The Police Chief or his or her designee shall provide each permitted employee with a permanent identification card to be known as a "Work Permit" which shall be displayed in accordance with the requirements of this chapter.

(H) Each permitted employee shall renew his or her permit with the Police Chief at least 90 days prior to the anniversary date of his or her initial registration and every anniversary thereafter. New identification cards will be issued as the city deems appropriate.

(I) The card room licensee shall inform the Police Chief of any change in employment status of a permitted employee within 24 hours of the effective date of the change in employment. A change in employment shall include termination of employment, leave of absence in excess of 60 days or any promotion or other change in positions job title or duties.

(J) Grounds for Denial, Revocation or Suspension of Work Permit. 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:

(1) The employee has been convicted of a crime involving lotteries, gambling, bookmaking, larceny, perjury, bribery, extortion, frauds 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 a service or entertainment business;

(2) 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;

• (3) 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;

• (4) The employee has violated any provisions of this chapter;

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

• (6) The State Department of Gaming Control has entered an objection to the issuance of the work permit.

(K) Denial, Suspension and Revocation of Work Permit. 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.

(1) 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 written request for a hearing within ten days of the date of mailing of the notice.

(2) The Police Chief shall schedule the hearing within 15 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.

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

(4) 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.

(5) In those extraordinary circumstances, wherein the Police Chief determines that immediate suspension or revocation is necessary as a result of accusations involving conduct resulting in great or irreparable harm or injury to the patrons thereof and/or 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.

(6) 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 division (K)(6). 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.

(Ord. 684 C.S., passed 6-3-98)

Card rooms shall be allowed to operate 24 hours per day seven days per week. Signs shall be conspicuously posted indicating the hours of operation in each premises.

(Ord. 684 C.S., passed 6-3-98)

Card rooms licensed under this chapter shall be allowed to operate only at locations that have been previously approved and a use permit issued therefore in accordance with Section 10-3.405 (J) of the Municipal Code. (Ord. 684 C.S., passed 6-3-98)

The number of card tables authorized to be operated within the city shall be equal to:

(A) Twenty four, which consists of the number of card tables either in operation or which had been approved for operation by the city. Two of the card tables are authorized at the establishment currently known as La Primavera and 22 of the card tables are authorized at the Club 99 Casino, both in the City of Madera. (Ord. 684 C.S., passed 6-3-98)

(A) It shall be unlawful for any interest-holder, 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 interests in a card room to any person who is or by reason of such transaction would become an interest-holder, without the prior consent and permission of the Council.

(B) No licensee or interest-holder shall knowingly permit any individual, partnerships or other entity to make any investment whatever in, or in any manner whatever, participate in the profits of any licensed card room or any portion thereof, except in accordance with these requirements; 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 an interest-holder. Except as otherwise provided in division (D) of this section, 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) No licensee or interest-holder shall knowingly permit any investment in any licensed 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 division (D) of this section, a licensee 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) No transfer, sale or hypothecation of an interest, or new investment in an existing licensed card room shall be permitted until the Council has received, reviewed, and approved an application for transfer of an interest, and until each new interest-holder has been granted an interest-holder's permit authorizing the holding of such interest;

provided, however, that no such approval shall be required for sales of stock of a publicly-traded corporation other than to an interest-holder. No money or other thing of value constituting any part of the consideration for the transfer or acquisition of any interest in a licensed card room operation shall be paid over, received or used prior to complete compliance with all prerequisites set forth in state law and this chapter; 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 interest transfer.

(E) Any party desiring to buy, sell, accept, transfer, assign or otherwise hypothecate any interest of an interestholder (other than stock of a publicly-traded corporation to a person other than interest-holder) in a licensed card room shall file with the Finance Director, on forms approved by the City Attorney, and furnished by the Finance Director, 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 Finance Director 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, copartnership, shareholder or other interest-holders;

(6) The name of the licensed card room and the names of the existing interest-holders from which a transfer of interest is sought;

(7) The number of interests 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 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 representing the financial condition of the applicant prepared in accordance with generally accepted accounting principles and submitted under penalty of perjury (but which need not be audited but must be dated no later than the end of the most recent fiscal year of applicant);

(11) The statements required by this division (E) 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 interest-holders shall be open to public inspection.

(F) Whenever an application pursuant to the provisions of this section has been filed with the Finance Director, the Finance Director shall immediately refer such application, or a true copy thereof, to the Police Chief, who shall promptly and diligently cause an investigation to be made as follows:

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

(2) Concurrently with the filing of an application, each applicant shall be fingerprinted by the Madera 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 Administrator to supervise and direct the Police Chief to establish the necessary procedures to administer the provisions of this division (F); and

(4) The information received by the Police Chief pursuant to the provisions herein shall be treated as confidential. (G) 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 chapter, 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 an interest-holder 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 interest-holder 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 5% 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 assignments 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. 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:

• (1) The financial stability of the applicant;

• (2) Conviction of criminal offenses as denoted in § 6-3.06(N)(1);

• (3) Investigational report by Chief of Police; and

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

• (I) The Council may in its discretion, either grant conditionally grant or deny the interest-holders permit applied for under this § 6-3.11.

• (Ord. 684 C.S., passed 6-3-98)

All interest-holders, 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. (Ord. 684 C.S., passed 6-3-98)

All licenses and permits issued under the provisions of this chapter shall be subject to revocation, suspension, or other appropriate penalties upon the occurrence of any of the following conditions:

• (A) The licensee or permittee has violated any provision of this chapter or failed to pay timely any fees due under this chapter; or

• (B) The licensee or permittee has violated any term or condition upon which such permit was issued; or

(C) The licensee, permittee, interest-holder, 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

• (D) The licensee or permittee has transferred any stock without approval of the city; or

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

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

(G) 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

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.

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

(1) Any criminal convictions of the licensee, interest-holders, 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 a service or entertainment business;

(2) The commission of any act by the card room licensee, interest-holders, key management employees, managers 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 licensee, interest-holders, managers, key management employees, or employees have previously operated in this or another state under a gambling, gaming or similar license or permit that has been revoked or suspended, the reasons therefor, and the actions of such person thereafter;

(4) Whether the card room licensee, interest-holders, managers, key management employees, or employees in this or another state has been denied a gambling, gaming or similar permit or permit the reasons therefor, and the actions of the persons and owners thereafter;

• (5) The business and credit history of the card room licensee 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.

(I) 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 or license.

• (Ord. 684 C.S., passed 6-3-98)

(A) Upon determination of the existence of any of the conditions stated in §§ 6-3.13 et seq. or which warrant action, the Police Chief shall issue a "Notice of Decision to Revoke or Suspend Card Room Operations License to the Licensee."

(B) The Notice of Decision to Revoke or Suspend shall state all grounds and reasons upon which the suspension or revocation, is based.

• (C) The Notice of Decision shall be mailed to the licensee at the address stated on the permit.

• (D) The Decision shall be effective 15 calendar days after mailing of the Notice of Decision unless the licensee files a written Notice of Appeal with the Police Chief before the close of business on the fourteenth day.

(E) In those extraordinary circumstances, wherein the Police Chief 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 patrons thereof and/or the city, the Police Chief may proceed to issue a Notice of Revocation or a Notice of Suspension in accordance with this section and without compliance with the procedures set forth in division (D) of this section. A notice issued under this division (E) shall be deemed effective immediately upon issuance. (Ord. 684 C.S., passed 6-3-98)

(A) The licensee may appeal the decision to revoke or suspend by filing a written Notice of Appeal with the City Administrator not later than 14 calendar days after service of the Notice of Decision to Revoke or Suspend Card Room Permit.

(B) The Notice of Appeal shall set forth all of the specific grounds of appeal and shall admit or deny each determination in the Notice of Decision.

(C) If the permittee fails to file a Notice of Appeal to the City Administrator within 14 calendar days or withdraws said Notice subsequent to filing it, the suspension or revocation shall become final and take effect immediately.

(D) Any allegation in the Notice of Decision which is not specifically denied in the permittee's Notice of Appeal shall be deemed admitted.

(E) For purposes of this section, the Notice of Appeal is considered filed upon receipt by the City Administrator.

(F) Appointment Of Administrative Hearing Officer. Hearings to appeal a Notice of Decision shall be conducted by an Administrative Hearing Officer selected by the City Administrator.

• (1) The Administrative Hearing Officer shall be:

• (a) A State of California administrative law judge;

• (b) A retired judge of the state of California; or

• (c) A hearing officer employed as such by the city.

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

(H) Notice Of Appeal Hearing. The City Administrator shall provide the permittee with written notice of the time, date and place of the Appeal Hearing and the name of the Administrative Hearing Officer not less than ten working days prior to the date of the hearing.

(I) Conduct Of The Hearing. The Appeal Hearing shall be conducted by an Administrative Hearing Officer appointed pursuant to division (F) of this section. The Appeal Hearing shall be conducted in accordance with the following procedure:

• (1) Oral evidence shall be taken only on oath or affirmation.

• (2) Both the city and the licensee shall have the right to call and examine witnesses; to introduce exhibits; and to rebut the evidence against any witness.

(3) Technical rules relating to evidence and witnesses shall not apply. Reliable hearsay evidence and any and all other evidence which the Administrative Hearing Officer deems relevant and not unduly repetitious may be admitted and considered.

(4) The Appeal Hearing shall be de novo. The Hearing Officer shall base his or her decision on the factors set forth in § 6-3.13.

(5) In cases where the decision of the Police Chief to revoke or suspend is based upon a criminal conviction, the fact of whether or not there was a conviction shall not be an issue for decision by the Administrative Hearing Officer. The facts underlying a criminal conviction shall be deemed to have been proven and shall not be subject to dispute at the Appeal Hearing.

(J) Subpoena Authority. The Administrative Hearing Officer shall have the power to issue subpoenas and require the attendance of witnesses, and the production of books, papers, and any other evidence relevant to the Appeal Hearing.

(K) Record Of Administrative Hearing. A record of the Appeal Hearing consisting of a tape recording of all oral evidence, arguments and rulings, along with all exhibits offered and/or admitted into evidence and the written decision of the Administrative Hearing officer shall be made by the Administrative Hearing officer and shall be maintained by him or her until all administrative and judicial appeals on a Notice of Decision have been concluded.

(L) Representation For Licensee And City. The licensee is entitled to be represented at the Appeal Hearing by legal counsel or by any other person of the licensee's choosing. The city is entitled to be represented at the Appeal Hearing by the City Attorney or other legal counsel.

(M) Failure To Appear. Failure of the licensee or the licensee's representative to appear at the Appeal Hearing shall be deemed a withdrawal of the licensee's Notice of Appeal and the Decision of the Police Chief shall become final and take effect immediately. Within ten calendar days after the effective date of such Decision, such licensee may file with the Administrative Hearing Officer a written request for relief from its failure to appear. After review of such request and of any rebuttal offered by city, the Administrative Hearing Officer may reinstate the appeal and set a new date for the Appeal Hearing on finding there is good cause for the failure to appear.

(N) Appeal Hearing Determination. The Administrative Hearing Officer shall within 30 working days of the close of the hearing, submit to the City Administrators the City Attorney and the licensee a written statement of decision, together with written findings of fact upon which such decision is based.

(O) Decision Final. The decision of the Administrative Hearing Officer shall be final.

(P) The decision of the Administrative Hearing Officer shall be deemed an adjudicatory decision and the provisions of Section 1094.6 of the California Code of Civil Procedure shall be applicable.

(Q) A challenge to an Administrative Hearing Officer's decision may be sought by either the city or the licensee pursuant to California Code of Civil Procedure Section 1094.6.

(R) Cost Of Appeal Hearing. The cost of the Appeal Hearing, including but not limited to the charge for the cost of the services of an Administrative Hearing Officer, the cost of creating the record of the Appeal Hearing, and the cost of subpoena service on all witnesses called by the licensee, shall be borne by the licensee.

(1) A deposit of estimated costs, as determined by the City Administrator, shall be required from the licensee prior to the Appeal Hearing. Failure to provide the deposit shall be deemed a waiver of the appeal.

(2) The licensee shall be presented with a bill itemizing the costs to be paid after the Administrative Hearing Officer issues his or her decision. Any part of the deposit not expended shall be returned to the licensee within 30 days of the decision. Any amounts due in excess of the amount deposited shall be paid by the licensee within 30 days. The fee for the Appeal Hearing shall be considered to be a civil debt of the licensee which is due and payable at the time of presentation of the bill to the licensee after the hearing.

(S) New Application Upon Revocation. In the event of revocation, such licensee shall not be entitled to apply for a new permit.

(Ord. 684 C.S., passed 6-3-98)

The Council hereby determines that an annual fee is payable with respect to all licenses and permits issued pursuant to the provisions of this chapter, which fee shall be payable annually on the anniversary date of the card room operations license. Annual license and permit fees in the amounts 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 fiscal operating year of the card room in which card room operations are to be conducted. All annual license and 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. (Ord. 684 C.S., passed 6-3-98)

(A) In addition to the license/permit fees previously prescribed each licensee licensed pursuant to the provisions of this chapter 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 15 days after the end of each month during which such gross revenues on which it was computed were received by the licensee.

(B) Each licensee shall file with the Finance Director 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 licensed by the license issued to or held by such permittee for the preceding month. Such statement shall be prepared in accordance with generally accepted accounting principles and shall be accompanied by the payment of the correct amount of license fees due and owing in accordance with the provisions of division (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.

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

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

Licensee, managing partner, or owners,

(Strike out the titles which are not applicable.)

(D) On or before October 31 of each year the licensee shall provide the city with a balance sheet and 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 statements provided.

(1) In the event that the amount of gross revenue reported in the licensee's annual statement is more 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 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.

(2) 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 Finance Director. Any information obtained pursuant to the provisions of this section or any statement filed by the licensee 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 chapter and to any court of competent jurisdiction where any matter relating thereto may be actively pending.

(3) Any failure or refusal by any such licensee or permittee to make and file any statement as required within the time required, or to pay such sums by way of application fees, license or permit fees when the fees are due and payable in accordance with the provisions of this chapter, or to permit an inspection of such books, records, and accounts of licensee shall be and constitute full and sufficient grounds for the suspension and revocation of the permit or license of any such licensee.

(Ord. 684 C.S., passed 6-3-98)

(A) Each licensee 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 disbursement 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. These ledgers and records shall be maintained for at least five years after the end of the card room's fiscal operating year to which they apply and shall be made available for examination and copying by the city or its designee upon request.

(B) In the event information requested of a licensee can be furnished only by someone other than the licensee (such as a landlord, supplier or an accountant), the licensee 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 made the information available. (C) In addition to such other information and data required by this chapter, each licensee shall maintain the following if a partnership or corporation:

(1) 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.

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

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

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

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

(6) In addition to such other information and data required by this chapter, each card room licensee shall maintain the following if a sole proprietorship:

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

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

(D) The records required to be kept by this chapter shall be in ink or other permanent form of recordation. (Ord. 684 C.S., passed 6-3-98)

(A) Notwithstanding the audit requirements specified in this chapter, the licensee shall allow the City Administrator 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 licensee 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 chapter. 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.

(B) Any failure or refusal of any licensee or 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 licensee or permittee in accordance with the provisions of this chapter shall be and constitute full and sufficient grounds for the revocation or suspension of the license or permit of any such licensee or permittee.

(Ord. 684 C.S., passed 6-3-98)

(A) Each and all of the games conducted or operated in the city pursuant to the provisions of this chapter shall be conducted and operated in full conformity with, and subject to, all the provisions of federal, state and local laws.

(B) 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 the playing of a hand.

(C) No card room licensee, owner or employee shall knowingly permit or allow any person under the age of 21 years of age at any time to be in or upon the card room premises; except that a person under the age of 21 years of age, when accompanied by his/her parent or legal guardian who is 21 years of age or older, may be permitted to be in the restaurant area of the card room premises only when there for purposes of eating. In order for persons under the age of twenty-one years of age to be allowed to be present in the restaurant area of the card room the restaurant must be in a room or area separated from the gaming area of the card room premises. Under no circumstances is a person under the age of 21 years of age allowed to be in any other area of the card room except as necessary to travel directly to and from the restaurant when accompanied by a person who is 21 years of age or older.

(D) For purposes of this section a "room or area separated from the gaming area of the card room premises" means a room or area completely separated from the gaming area by walls which are at least five feet in height. The room or area shall contain no card tables. There shall be no more than one doorway of no more than seven feet in width for entry from or exit to the gaming area.

(E) No card room licensee, owner or employee shall permit the farming out, assigning, leasing, renting, or subletting of any games or card tables on premises lawfully licensed pursuant to the provisions of this chapter.

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

(G) The playing of all games permitted under this chapter shall be confined to the approved card playing area of each licensed card room as set forth in the license and no playing of any games shall be permitted in any other area or location.

(H) Permissible Games. A list of "permissible games" including any specific rules thereto shall be adopted by Resolution of the Council.

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

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

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

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

(I) Game Rules. 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.

(1) 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 chapter.

(2) The rules shall be made available in English, Spanish, Vietnamese, Hmong, Lao, Cambodian, and any other language as requested by a patron.

(3) No card room licensee, 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.

(J) Exclusion of Persons from Card Rooms.

(1) A card room licensee 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 licensee, owner or employee shall permit any person to enter a card room while such person appears to be obviously under the influence of any intoxicating beverage, narcotic or drug.

(3) Any person refused entry, excluded, or ejected by a card room may appeal to the City Administrator as to whether the conditions for exclusion or ejection as set forth in division (J) of this section are applicable. The City Administrator shall appoint a hearing officer who shall conduct a hearing at which time both the person excluded and the licensee may present evidence. The decision of the hearing officer shall be final. The card room licensee and appellant shall reimburse the city for the cost of holding such hearing.

(K) Complimentary or reduced priced alcoholic drinks shall be prohibited in the card room premises.

(L) 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.

(M) Limits on Bets and Wagers. No card room licensee, owner or employee shall allow any persons playing in any game to make any single bet or wager in excess of $2,000 or at any time during any game to permit an ante in excess of $200 total sum anted by players participating in the game. Notwithstanding this provision, the Council may, by resolution, set a lower wager limit than the maximum listed herein on a game by game basis.

(N) Identification Card Display. It shall be unlawful for any card room owner or employee to be physically present 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 chapter identifying such person with the card room.

(1) 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.

(O) Employment of Persons To Stimulate Play Prohibited. It shall be unlawful for any card room licensee, owners interest-holder, 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 licensee or owner except as allowed under division (O)(1) of this section.

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

(P) It is unlawful for any card room licensee, 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.

(Q) It is unlawful for the card room licensee, owner or employee to cash any personal check which does not state the amount on the face of the check.

(R) Operation of House Deposit or Credit System Prohibited. It shall be unlawful for any card room licensee, 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 expressly authorized pursuant to divisions (R)(1) and (2) of this section.

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

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

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

(S) All card room licensees 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. All card rooms shall be open for inspection during normal business hours to the Police Chief, the Finance Director, the city auditor or their duly authorized representatives, without a search warrant.

(1) 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 Finance Director or their duly authorized representatives without search warrant.

(U) 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) It shall be unlawful for any patron or any other person not a permittee to bring cards into a card room. It shall be unlawful for any person other than a licensee, 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 onduty employees with valid registration cards to have playing cards in his or her possession outside of a designated card playing area.

(W) It shall be the responsibility of the licensee, 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 room surveillance personnel whether provided by a governmental policing agency, a city-contracted service, city-administered or licensee-assigned. (Ord. 684 C.S., passed 6-3-98)

For the purposes of clarification, the fees set forth in this chapter are for regulation, revenue purposes and reimbursement to the city for the costs of investigating, regulating and processing the applications, as provided for in this chapter, pursuant to the authority set forth in Article XI Section 5 of the Constitution of the State.

(Ord. 684 C.S., passed 6-3-98)

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

(B) 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 chapter.

(Ord. 684 C.S., passed 6-3-98)

It is the intent of the City Council that the licensee and interest-holders in the licensed card room shall be liable for the security and safety of the patrons of the licensed card room operation. To the extent that California law permits recourse against the owner of an establishment for physical harm incurred by an individual while on or about the premises, the licensee and interest-holders shall be liable for said recourse.

(Ord. 684 C.S., passed 6-3-98)

Any individual violating any of the provisions of this chapter or any of the rules and regulations set forth, established or promulgated in this chapter should be guilty of a misdemeanor. (Ord. 684 C.S., passed 6-3-98)