Salinas Municipal Code Art. V Card Rooms

Footnotes:

--- (5) ---

Editor's note— Ord. No. 2598 (NCS), §§ 7 and 8, adopted Sept. 5, 2017, recodified and renumbered Ch. 6, Art. IV, as Ch. 5, Art. V, §§ 5-05.01—5-05.31, as set out herein. Prior ordinance history: Ord. Nos. 1507 (NCS), 1909 (NCS), 1983 (NCS), 1990 (NCS), 2204 (NCS), 2205 (NCS), 2364 (NCS), 2370 (NCS), 2401 (NCS) and 2418 (NCS).

No person shall engage in, carry on, maintain, or conduct, or cause to be engaged in, carried on, maintained, or conducted any card room in the City of Salinas without first having obtained each of the following:

(a) A valid license from the attorney general of the State of California as required by "The Gambling Control Act," Business and Professions Code Section 19800 et seq.

(b) A permit from the city according to each and every requirement of this article; provided, however, the city shall not issue any permit unless the applicant provides proof, satisfactory to the city, that the applicant has the valid license from the attorney general as required by subsection (a) above.

Prior to and upon the obtaining of a permit from the city, the permit holder shall comply with each and every provision and regulation contained in this article.

(Ord. No. 2486 (NCS), § 1; Ord. No. 2598 (NCS), §§ 7, 8, 9-5-2017)

It is the stated intent of this article to regulate card rooms and card tables in the City of Salinas concurrently with the State of California, to the extent authorized by, and as required by, the Gambling Control Act and the regulations of the State of California Department of Justice Bureau of Gambling Control.

(Ord. No. 2486 (NCS), § 1; Ord. No. 2598 (NCS), §§ 7, 8, 9-5-2017)

As used in this article, the following words, phrases, or terms shall have the meaning set forth in this section.

"Bureau" shall mean the attorney general's bureau of gambling control.

"Card game" means any game played with cards at which wagering or gambling on the outcome is conducted, engaged in, allowed, permitted or suffered. Card game includes draw poker, low-ball poker, black jack played in accordance with state law, panguingue, pai-gow, pai-gow poker, California Aces, and any other games allowed under applicable state law and approved by the chief of police.

"Card room" means any building or structure, or portion thereof, or any premises furnished or equipped with one or more tables used for the playing of card games or similar games wherein, in return for any fee, charge, or thing of value or other compensation, one or more persons are permitted to play such games.

"Card room permit holder" or "permit holder" means the person, firm, association, corporation or other entity to whom a card room permit has been issued pursuant to this article.

"Commission" shall mean the California State Gambling Control Commission.

"Employee" means every person, either as agent, employee or otherwise of the owner, or under the direction of the owner of any card club, including, without limitation, dealers, floormen, security employees, countroom personnel, cage personnel, collection personnel, surveillance personnel, data processing personnel, appropriate maintenance personnel, waiters and waitresses, and secretaries, or any other natural person whose employment duties require or authorize access to restricted gambling establishment areas.

"House player" means any person, including the permit holder and any owner and anyone with a financial interest in the card room, an employee, engaged, financed, or paid by the permit holder for the purpose of starting and/or maintaining a sufficient number of players in a card game.

"Owner" means every person, firm, association, partnership, corporation or other entity having any interest, legal or equitable, in any card room or card room permit.

(Ord. No. 2486 (NCS), § 1; Ord. No. 2598 (NCS), §§ 7, 8, 9-5-2017)

An applicant for a card room permit or a renewal of an existing permit as required by this article shall submit an application to the chief of police on forms provided by the chief of police. The application shall include the following:

(a) The date of the application;

(b) The true name of the applicant(s);

(c) The status of the applicant as being an individual, firm, association, co-partnership, joint venture or corporation;

(d) If the applicant is an individual, the residence and business address of the applicant;

(e) If the applicant is other than an individual, the name, residence and business address of each of the co-partners or members of the firm, co-partnership or joint venture, and the name, residence and business address of:

(1) Each of the principal officers and directors of the association or corporate applicant, and

(2) Each shareholder thereof;

(f) The location of the business for which the permit is sought;

(g) The type and nature of the game or games proposed to be played;

(h) The number of tables or other units to be placed, employed, or used;

(i) A description of the building in which the business proposed to be permitted is to be housed, giving the dimensions;

(j) A statement that such building conforms to all the laws of the state and the city for occupancies of the nature proposed;

(k) A statement that no intoxicating liquors or beverages are to be sold, given away, dispersed, consumed or permitted on the premises unless the premises are licensed for that purpose by the State Department of Alcoholic Beverage Control;

(l) Any criminal convictions for offenses related to:

(1) The operation of a card room or similar establishment,

(2) Any gambling offense,

(3) Any narcotic offense,

(4) Any felony, or

(5) Any other crime involving moral turpitude or other crime determined by the chief of police to be so serious that the health, safety or welfare of the community may be jeopardized by the issuance of a card room permit;

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

(n) Any application filed on behalf of a partnership shall be signed by each of the partners and any application filed on behalf of a corporation shall be signed by each shareholder and, for the purposes of this article, each such partner or shareholder shall be deemed to be an applicant. The application shall also be accompanied by specimen fingerprints of every person mentioned in this section, to be submitted in a form and manner as required by the chief of police, and by a recent photograph of every such person;

(o) The application shall be accompanied by a copy of a valid gambling license issued by the State of California to the applicant as required by Business and Profession Code Sections 19800 et seq.;

(p) Evidence of having established and implemented a responsible gambling program pursuant to any regulations which are or may be promulgated by the bureau or its office of problem gambling or by the office of problem and pathological gambling established under Welfare and Institutions Code Section 4369 et seq.;

(q) Evidence of having established and implemented written minimum internal control standards, in a form and manner as may be required by the bureau or any other state agency, with respect to the day-to-day management and operation of the card room and the management of card games played within the card room. Such minimum internal control standards must, at a minimum, ensure compliance with all applicable standards and controls promulgated by the State of California and all of its departments and agencies and all of the provisions of the City Code, including the provisions of this article, as the same may be amended from time to time. The card room permittee shall provide a copy of such written minimum internal control standards to the chief of police at the time the application for a card room permit is submitted for consideration;

(r) Any other information the chief of police deems necessary to conduct a thorough background investigation including, but not limited to, financial information statements for each individual and business associated with the card room operation.

(Ord. No. 2486 (NCS), § 1; Ord. No. 2598 (NCS), §§ 7, 8, 9-5-2017)

Each application for a card room permit or renewal thereof shall be accompanied by such fees and deposits as established by the city council payable to the city as follows:

(a) Any application fee together with a fingerprint fee, which shall be the actual cost to the city to process fingerprints, for each person required to submit fingerprints. These fees shall be retained by the city for the payment of the costs of investigating the applicant and the proposed location.

(b) A monitoring fee for the first calendar quarter or part thereof in which the permit is issued; provided, that in the event the permit is not issued, this fee shall be returned to the applicant.

(c) A fee for the cost of a background investigation, which shall be the actual cost to the city to conduct a background investigation as it deems necessary and appropriate. The applicant shall provide an initial deposit in an amount that the chief of police estimates will cover the cost of such investigation, which shall be used and drawn upon as a retainer to cover the actual costs of such investigation. If this amount is not sufficient the applicant shall provide any additional amounts that are necessary and if the applicant is unable to provide the additional amounts necessary to complete the investigation, the investigation shall cease and shall not continue until such additional amounts are paid. Upon completion of the investigation or in the event the applicant withdraws their application, any unused amount will be refunded to the applicant within thirty days.

(Ord. No. 2486 (NCS), § 1; Ord. No. 2598 (NCS), §§ 7, 8, 9-5-2017)

(a) The chief of police or a designee shall review each application to determine whether it contains all of the required information. If the application does not contain all of the required information, it shall be returned to the applicant for completion. The chief of police may reasonably extend the time for completion.

(b) The chief of police or a designee shall investigate all applicants, and the chief of police or members of the unit responsible for card room regulations are hereby authorized to obtain criminal history information for each person required to be named in the application for the purpose of making the determinations set forth in Section 5-05.08, the place for which a card room license is requested, the area within which the card room is to be located, and the manner in which the card room is to be operated.

(c) The chief of police shall endeavor to conclude his review within ninety days of the filing of the application. If additional time is necessary, the chief of police will advise the applicant of an estimated revised time frame within ninety days of receiving the application.

(Ord. No. 2486 (NCS), § 1; Ord. No. 2598 (NCS), §§ 7, 8, 9-5-2017)

(a) The chief of police shall have authority to either grant or to deny the application for a card room permit.

(b) Notwithstanding the provisions of Section 5-05.08, when the chief of police approves an application and grants a card room permit, the chief of police may place any limitations and conditions on the operation of the card room as he or she determines necessary, consistent with the public interest and with this article.

(c) When an application is denied, the chief of police shall prepare and file a statement of decision giving the reasons for the denial and the findings of fact upon which the decision is based.

(d) Any person denied a card room permit shall have the right to appeal such denial to the city council in accordance with the appeal procedures set forth in this article.

(Ord. No. 2486 (NCS), § 1; Ord. No. 2598 (NCS), §§ 7, 8, 9-5-2017)

A card room permit may be issued upon the recommendation of the chief of police, subject to the following conditions and qualifications:

(a) The chief of police may deny the application if the chief of police makes any of the following determinations:

(1) The applicant has knowingly misstated, misrepresented, concealed, or withheld any material fact on the application for the permit;

(2) The applicant, or any of them, has been convicted in a court of competent jurisdiction of any offense:

(A) Which relates to the establishment of a card room or similar establishment,

(B) Involving violation of any gambling law or ordinance,

(C) Involving any narcotic offense,

(D) Involving any felony, or

(E) Involving any other crime involving moral turpitude or any other crime determined by the chief of police to be so serious that the health, safety or welfare of the community may be jeopardized by the issuance of the card room permit;

(3) The applicant is disqualified pursuant to the Gambling Control Act for any reason including, but not limited to, the following:

(A) The applicant's conviction for any crime punishable as a felony.

(B) The applicant's conviction for any misdemeanor involving dishonesty or moral turpitude within the ten-year period immediately preceding the submission of the application, unless the applicant has been granted relief pursuant to Section 1203.4, 1203.4a, or 1203.45 of the Penal Code.

(C) Association of the applicant with criminal profiteering activity or organized crime, as defined by Section 186.2 of the Penal Code.

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

(E) The applicant is less than twenty-one years of age;

(4) The applicant, or any of them, within five years immediately preceding the date of filing of the application, has had any card room license or permit issued within the state suspended or revoked;

(5) The applicant, as determined by the city, does not have the financial capability or business experience, including the capability of implementing and maintaining generally accepted minimum accounting practices, to operate a card room in a manner which would adequately protect the patrons of the card room and the citizens of the community;

(6) The applicant, or any of them, is not a fit and proper person to engage in the operation of a card room, taking into consideration the financial stability of the applicant and personal history including business experience and reputation for habits and character traits;

(7) The card room is to be located within any area of the city which is wholly residential; or if the card room location is adjacent to a residential area and, in the opinion of the chief of police, the operation of a card room in such location would tend to cause a public nuisance or a situation which results in repeated police response;

(8) The card room is to be located within six hundred feet of any school, church, hospital, children's playground, or any other public facility where the presence of the card room might tend to cause a police problem, or create a public nuisance, or where the granting of the permit would be contrary to the public interest;

(9) The applicant has not complied with the requirements of this article.

(b) A card room permit may be issued pursuant to this article on a temporary basis or for a probationary period for not less than one year and subject to conditions and restrictions as may be determined by the city to be appropriate and as set forth in such temporary or probationary permit. At the end of the temporary term or probationary period, the chief of police shall conduct a review of the card room operations and shall have the authority, in his or her sole discretion, to extend the temporary term or probationary period or to issue a permanent card room permit subject to the provisions of this article or to revoke the temporary or probationary permit and cause the cessation of all card room operations.

(c) In the event of a denial of a permit application or the revocation of a temporary or probationary permit and the cessation of card room operations, notification of the reason thereof shall be set forth in writing by the chief of police and shall be served on the applicant at the applicant's address as shown on the application, by first class mail or by hand delivery. Notification by mail shall be deemed served on the applicant on the date of mailing. The applicant may appeal from the denial of the permit by filing a notice of appeal with the city clerk after the service of the notification of the denial upon the applicant in the manner and subject to the procedures set forth in this article. Upon failure to file the notice within the required time period, the action of the chief of police in denying the permit shall be final and conclusive.

(d) No person whose application has been denied may file any application for a card room permit within one year from the date denial became final.

(Ord. No. 2486 (NCS), § 1; Ord. No. 2598 (NCS), §§ 7, 8, 9-5-2017)

(a) Work Permit Required. Any person who is an employee, as that term is defined in this article, or is otherwise employed in a card room as a dealer, floor manager, pit boss, secretary, waiter or waitress; floor, security, countroom, cage, collection, surveillance or data-processing personnel; appropriate maintenance personnel; or any person whose employment duties require or authorize access to restricted card room areas must obtain a work permit from the chief of police and must renew such work permit on an annual basis. Bartenders, culinary workers, and others not connected with operation and supervision of the card room and not otherwise providing services on the card room floor are not required to obtain a work permit. Applications for city work permits shall be submitted under oath and shall contain a statement of the past criminal record, if any, of the applicant and such information as may be deemed by the chief of police necessary to determine whether the applicant is a proper person to be issued a card room work permit. The application shall also be accompanied by fingerprints and a recent photograph of the applicant in a form and manner as required by the chief of police.

(b) Temporary Work Permit. The chief of police may, in his or her sole discretion, grant a temporary work permit for any of those positions for which a work permit is required under this section following such applicant's successful completion of a preliminary background investigation and pending the results of a full background investigation as required by this section. A temporary work permit shall be valid only for so long a time as the chief of police or his or her designee deems appropriate and may be revoked at any time without the temporary permit holder having a right to appeal such revocation. Applications for temporary work permits shall be submitted under oath and shall contain a statement of the past criminal record, if any, of the applicant and such information as may be deemed by the chief of police necessary to determine whether the applicant is a proper person to be issued a card room work permit. The application shall also be accompanied by fingerprints and a recent photograph of the applicant in a form and manner as required by the chief of police.

(c) The chief of police shall deny to any applicant a work permit, whether temporary or permanent, if:

(1) Said applicant has previously been convicted of a felony; or

(2) Said applicant has previously been convicted of any narcotics violations or violation of gambling laws or ordinances; or

(3) Said applicant is not, in the sole discretion of the chief of police, a fit and proper person to engage in such work.

(4) Said applicant is disqualified from holding a state gambling license for any of the following reasons:

(A) Failure of the applicant to clearly establish eligibility and qualification in accordance with the Gambling Control Act.

(B) Failure of the applicant to provide information, documentation, and assurances required by the Gambling Control Act or requested by the bureau director, or failure of the applicant to reveal any fact material to qualification, or the supplying of information that is untrue or misleading as to a material fact pertaining to the qualification criteria.

(C) Conviction of the applicant for any misdemeanor involving dishonesty or moral turpitude within the ten-year period immediately preceding the submission of the 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 Section 1203.4, 1203.4a, or 1203.45 of the Penal Code shall not constitute a limitation on the discretion of the Commission under Business and Professions Code Section 19856 or affect the applicant's burden under Business and Professions Code Section 19857.

(D) Association of the applicant with criminal profiteering activity or organized crime, as defined by Section 186.2 of the Penal Code.

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

(F) The applicant is less than twenty-one years of age.

(5) The bureau objects to the issuance of a work permit for any cause deemed reasonable by the bureau.

(d) Responsible Gambling Training. Each card room established and operating within the city shall establish a program for responsible gambling that, at a minimum, meets the requirements of state law. In addition, each person employed in a card room established and operating within the city shall prior to commencing employment at a card room and on no less than an annual basis complete a state recognized problem gaming training program.

(e) Independent Agents; Third Party Providers of Proposition Players; Gambling Businesses. Independent agents, third party providers of proposition players, and gambling businesses, as those terms are defined by state law, are required to obtain and to hold a work permit pursuant to this section and must demonstrate to the satisfaction of the chief of police that they have registered with the bureau in accordance with state regulations. Any such person may be denied a work permit, as set forth in this section, and may be prevented from working at any card room located within the City of Salinas regardless of whether such individual has registered with the bureau.

(Ord. No. 2486 (NCS), § 1; Ord. No. 2536 (NCS), §§ 1, 2, 2-5-2013; Ord. No. 2598 (NCS), §§ 7, 8, 9-5-2017)

Each application for work permit and renewal of any existing work permit shall be accompanied by a fee as set by the city council and shall be valid for a period of one year from date of issuance. The fee shall not be returned in the event the work permit is refused, revoked or suspended. Only one such work permit shall be required each year, even though the holder of the work permit may change the place of employment within the city, provided, however, in the event of change of employment, the work permit holder shall notify the chief of police in writing of the change of employment within ten days of such change.

(Ord. No. 2486 (NCS), § 1; Ord. No. 2598 (NCS), §§ 7, 8, 9-5-2017)

No person who holds a card room permit or a work permit for a permitted card room shall be physically present upon the card room premises at any time during their working hours without prominently displaying his or her own personal identification card issued by the city. 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.

(Ord. No. 2486 (NCS), § 1; Ord. No. 2536 (NCS), § 3, 2-5-2013; Ord. No. 2598 (NCS), §§ 7, 8, 9-5-2017)

Whenever an appeal is provided for in this article, such appeal shall be filed and conducted as prescribed in this section.

(a) Within fifteen calendar days after the date of any denial of an application or suspension or revocation of a permit by the chief of police or a designee, an aggrieved party may appeal such action by filing with the city clerk a written appeal briefly setting forth the reasons why such denial, suspension or revocation is not proper.

(b) Upon receipt of such written appeal, the city clerk shall set the matter for hearing before the city council. The hearing shall be conducted pursuant to procedures set forth by the city and shall be held within a reasonable time after the date of the filing of the appeal with the city, but in no event later than sixty days from the date of such filing. At least ten days prior to the date of the hearing on the appeal the city shall notify the appellant of the time and place of the hearing. At such hearing the chief of police or a designee and the appellant may present any evidence relevant to the decision appealed. The formal rules of evidence applicable in a court of law shall not apply to such hearing.

(c) At the conclusion of the hearing, the city council may affirm, reverse or modify the decision appealed. The decision of the city council shall be the final decision in this regard and shall be dispositive of the matter.

(Ord. No. 2486 (NCS), § 1; Ord. No. 2598 (NCS), §§ 7, 8, 9-5-2017)

(a) The chief of police shall have the right for cause to revoke or suspend any card room permit or card room work permit issued hereunder and to take possession of such permits. Any of the grounds upon which the chief of police shall be required to refuse to issue a new card room permit or card room work permit shall also constitute grounds for such revocation or suspension. In addition, the failure of a card room permit holder to conduct business in a manner consistent with any federal, state or local law or regulation and any permit or approval granted pursuant thereto and in a manner consistent with generally accepted accounting principles and with minimum accounting practices shall constitute grounds for revocation or suspension of such card room permit. Operation of the card room in a manner which affects or jeopardizes the health, safety or welfare of the community or in a manner which results in multiple police department responses, shall constitute grounds for revocation or suspension of the card room permit.

The failure of a holder of a card room permit or card room work permit to comply with the provisions set forth herein shall also constitute grounds for revocation or suspension of such card room permit or work permit. The action of the chief of police in this respect shall be subject to an appeal to the city council. Notice of such appeal shall be filed with the city clerk after the revocation or suspension and in the manner and subject to the procedures set forth in this article. Upon failure to file such notice within the time periods set forth in this article, the action of the chief of police in revoking or suspending the card room permit or work permit shall be final and conclusive.

(b) The chief of police shall revoke the work permit if notified by the commission to do so following a finding by the commission, after a hearing, that a gambling enterprise employee or independent agent has failed to disclose, misstated, or otherwise misled the bureau or the commission with respect to any fact contained in any application, or if the commission finds that an employee or independent agent, subsequent to being issued a work permit, has done any of the following:

(1) Committed, attempted, or conspired to do any acts prohibited by this article;

(2) Engaged in any dishonest, fraudulent, or unfairly deceptive activities in connection with controlled gambling, or knowingly possessed or permitted to remain in or upon any premises any cards, dice, mechanical devices, or any other cheating device;

(3) Concealed or refused to disclose any material fact in any investigation;

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

(5) Been convicted in any jurisdiction of any offense involving or relating to gambling;

(6) Accepted employment without prior commission approval in a position for which he or she could be required to obtain a permit under this article after having been denied a permit or after failing to apply for licensing when requested to do so by the commission;

(7) Been refused the issuance of any license, permit, or approval to engage in or be involved with gambling or parimutuel wagering in any jurisdiction, or had the license, permit, or approval revoked or suspended;

(8) Been prohibited by any governmental authority from being present upon the premises of any licensed gambling establishment or any establishment where parimutuel wagering is conducted, for any reason relating to improper gambling activities or any illegal act;

(9) Been convicted of any felony;

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

(11) The permit holder is less than twenty-one years of age.

(Ord. No. 2486 (NCS), § 1; Ord. No. 2598 (NCS), §§ 7, 8, 9-5-2017)

(a) Except as provided in subsections (b) and (c) of this section, no card room permit, or any interest therein, issued under the authority of this article shall be transferred from person to person, assignee, pledged or hypothecated in whole or in part. Such permit shall not be subject to transfer to any other holder or operator through the levy of any execution by any judgment creditor or any judicial sale under any proceedings to enforce or collect any judgment, debt or obligation.

(b) The transfer of a valid card room permit held by an individual to another person may be allowed by the city council when the council finds that such transfer is in the best interests of the community. At a minimum, such findings shall include:

(1) The current license must be in good standing and the transferor must be in full compliance with all federal, state and local laws.

(2) The transferee must be eligible for a card room permit under all relevant federal, state and local laws.

(3) The transferee will be subject to a probationary period for not less than one year. Any transfer, assignment, pledge or hypothecation shall be considered for all purposes as a new application for a card room permit, and all the provisions of this article applicable to new application shall apply.

(4) The transfer must first be approved by the bureau.

(c) It has come to the attention of the city council that in the past various owners, agents and/or employees of owners of duly licensed card clubs in the city have entered into arrangements with persons not holding licenses or permit to conduct card games within the city wherein games conducted at certain premises have been farmed out, assigned, or otherwise sublet to persons having no direct or indirect connection with or interest in the card room permit. It shall be unlawful for any person whether as owner, agent, and/or employee of the holder of any card room permit to assign, arrange for, or in any other manner sublet, directly or indirectly, with or without consideration, to any person not having a valid unrevoked card room permit to conduct such card game.

(Ord. No. 2486 (NCS), § 1; Ord. No. 2598 (NCS), §§ 7, 8, 9-5-2017)

The transfer of the card room activity to a different location may be approved by the chief of police provided the applicant fulfills all the conditions specified in this article for the issuance of card room permits.

(Ord. No. 2486 (NCS), § 1; Ord. No. 2598 (NCS), §§ 7, 8, 9-5-2017)

(a) A maximum of one card room shall be allowed to operate in the city.

(b) On or after the effective date of this ordinance, a licensed card room shall be allowed to increase the number of gaming tables operated in the card room by up to two additional tables above the number of tables operated in the card room on January 1, 2023. With this increase, no more than thirteen tables shall be permitted in any one card room. Thereafter, on or after each four year anniversary of the effective date of this ordinance, a licensed card room shall be allowed to further increase the number of gaming tables operated in the card room by up to two additional tables, not to exceed ten additional tables above the number of tables operated at the licensed card room on January 1, 2023. With these subsequent increases, no more than twenty-one gaming tables shall be permitted in any one card room.

(Ord. No. 2486 (NCS), § 1; Ord. No. 2536 (NCS), § 4, 2-5-2013; Ord. No. 2598 (NCS), §§ 7, 8, 9-5-2017; Ord. No. 2696 (NCS), § 1, 6-16-2026)

It is unlawful to operate a card room in violation of any of the following rules and regulations:

(a) Physical Arrangements.

(1) Not more than one card room shall be located at any one address.

(2) Not more than the maximum number of gaming tables permitted by Section 5-05.16(b) shall be permitted in any card room.

(3) Not more than eight players shall be permitted at any one card table, except that up to ten players may be permitted per table for all poker games. Up to ten persons may be permitted per table for the game of Pai Gow, provided that a maximum of seven players play an individual hand, any remaining players at the table do not place a bet on the outcome of the hand, and at least two persons per card table supervise the game in accordance with subsection (c)(2) of this section. For all games, each player shall be dealt individual cards and under no circumstances shall more than one person be allowed to bet on a hand dealt to another player position at any card table. In addition, a player shall only place a bet on the player position assigned to his or her position at the card table.

(4) Card rooms shall be located on the ground floor and so arranged that card tables and the players shall be plainly visible from the doorway into the card room.

(5) Card rooms may be open twenty-four hours each day, seven days each week, provided such card room maintains adequate security as required by this article and is otherwise operated in accordance with the requirements of this article and of all applicable provisions of state, local, and federal law. During all hours of operation doors must be unlocked and accessible to the general public.

(6) The card room shall be separated from other activities on the premises.

(7) All card rooms shall be open to police inspection during all hours of operation.

(8) Only players who are seated at the card table and who are actively wagering and participating in the card game being played may pick up, view or otherwise handle the cards dealt and being played by them at that table during any card game. Backline betters and others shall not be permitted to pick up, view or otherwise handle the cards dealt to and being played by any other person seated and playing at the card table.

(9) No cards being dealt during any card game, or having been dealt during any card game, to any player seated and actively wagering and participating at a card game being played at that particular table, may be removed from that table by any person at any time.

(b) Operational Procedures. No permittee, agent or employee of a permittee, or a person to whom a work permit has been issued or performing a function for which a work permit is required shall:

(1) Allow or permit money to be used as ante or bet in any card game in any card room;

(2) Offer or give or permit to be offered or given any alcoholic beverage to encourage play;

(3) No card room permittee, owner, licensee or employee shall hold or cash any personal check or other negotiable instrument that does not state the amount on the face of the check or other negotiable instrument or hold a personal check for a patron for more than twenty-four hours and then redeem it for cash, chips or any other thing of value.

No card room permittee, owner, licensee or employee shall provide loans or credit of currency, checks or any other thing of value or any representation of value to or for the benefit of any patron.

No card room permittee, owner, licensee or employee shall operate, maintain or purport to maintain any credit system whereby any patron may obtain loans or credit of currency, checks or other negotiable instruments, or any other thing of value or any representation of value.

It shall be unlawful for any person or entity to seek, obtain, provide or offer any loan or credit of currency, checks or other negotiable instruments, or any other thing of value or any representation of value, including gaming chips, on the card room premises for use in gambling at the card room.

(4) Act in the capacity of, or allow or employ any person to act in the capacity of, a house player, unless such person shall have on their person at all times a city issued work permit and shall present such work permit on demand by any law enforcement or city official which such person is working in their official capacity. Further, all such persons employed as house players shall be listed on a daily basis in a log maintained by the card room operator which log must be made available for inspection by any law enforcement or other city official;

(5) Permit an opening ante or wagering limits in excess of the total amount authorized by resolution of the city council;

(6) Knowingly permit any person who is in a state of intoxication in any card room;

(7) Permit any person under the age of twenty-one years to participate in any card game within, or to be present within, any card room; provided, however, a permittee may establish a higher minimum age of admission if not otherwise prohibited by law, provided further, this subsection shall not be construed to authorize the admission to any card room of any person under the age of twenty-one years where such admission is prohibited by any law or regulation governing the sale of alcoholic beverages;

(8) Permit any owner, person with a financial interest in the card room or employee to play in any card game unless such person shall have on their person at all times a city issued work permit and shall present such work permit on demand by any law enforcement or city official which such person is working in their official capacity. Further, all such persons shall be listed on a daily basis in a log maintained by the card room operator which log must be made available for inspection by any law enforcement or other city official;

(9) Permit or allow any game other than those games defined in this article to be played in any card room;

(10) Conduct any card room operation except during those hours expressly permitted in the permit and subject to all conditions and requirements imposed upon the operation of the card room through such permit;

(11) Fail, neglect or refuse to exhibit their permits or work permits on the demand of any law enforcement officer.

(c) General Requirements.

(1) There shall be posted in a conspicuous place the following:

(A) The minimum buy-in time charged, or other fee charged for the use of the tables,

(B) A set of detailed house rules applicable to the games played,

(C) A copy of the current permit and current city business license.

(2) Each card table shall have assigned to it a person whose duty shall be to supervise the game and to see to it that it is played in accordance with the terms of this article and the provisions of the Penal Code of the state. This person may have more than one table under his supervision. The permittee may not act as table supervisor without having a work permit.

(3) Each card room shall be under the management of a person responsible for its operations at all times and this person shall be on the premises at all times. Additionally, during all hours of operation, the card room shall be managed and supervised by an adequate number of employees, including floor persons, tables supervisors, and other key employees necessary to ensure compliance with this article and with all applicable provisions of federal, state, and local law.

(4) Not later than July 1 of each calendar year and upon any change thereto the permit holder shall file with the chief of police a report stating the minimum buy-in, time charged, or other fee charged for the use of the tables.

(5) Each card room shall be open and have at least one card table in operation not less than four hours per day and not less than five days per calendar week of each week during the year. Any card room not meeting the minimum requirements of this subsection shall be deemed to have ceased business as a card room and the card room permit issued thereto may be revoked by the chief of police.

(d) The chief of police shall have the authority to develop and to promulgate additional rules and regulations beyond those specifically enumerated in this section to establish minimum internal controls over all areas of card room operations.

(e) Satellite Horse Wagering. A card room permitted by the city pursuant to this article may operate a satellite horse wagering facility as authorized by and subject to the regulations established under state law.

(Ord. No. 2486 (NCS), § 1; Ord. No. 2536 (NCS), §§ 5—7, 2-5-2013; Ord. No. 2598 (NCS), §§ 7, 8, 9-5-2017; Ord. No. 2696 (NCS), § 2, 6-16-2026)

(a) The Salinas city council shall establish by adoption of a resolution, which resolution may be amended from time to time at the pleasure of the city council, the amount of bets or wagers for the games permitted to be played in a card room. No card room permit holder or other person in charge or control of any card room operating under any license held or issued pursuant to the provisions of this article shall permit any person playing in any of the games permitted pursuant to this article to make any single bet or wager in excess of the amount established by resolution of the Salinas city council.

(b) Wagering limits shall be clearly posted to give the patrons adequate notice of the rules related to wagering.

(c) No card room owner, operator or employee shall permit any of the following:

(1) Simultaneous hands or betting squares by the same player;

(2) Bets made by any owner, operator or employee while such person is working in the card room area or otherwise on duty; or

(3) Bets made by a shill or a dummy player.

(d) Backline betting shall be permitted at no more than two tables in the card room.

(e) Whether a card room shall be permitted to operate no limit tables, and the number of tables at which there may be no limit wagering, shall be at the sole discretion and determination of the city which determination shall be the final determination of the matter. Such limits shall be set forth in the permit issued pursuant to this article and any violation of such a condition shall render the permit immediately null and void without the need for action by the city.

(Ord. No. 2486 (NCS), § 1; Ord. No. 2598 (NCS), §§ 7, 8, 9-5-2017)

The only charge imposed by a permit holder upon participants in any card game permitted under this article shall be either or both a charge per hand or a charge for table rental. The table rental charge shall be imposed for participation in any card game for each twenty-minute period or part thereof that a participant plays in a card game. The amount of such charge for participation shall be determined by each permittee; provided, however, that:

(a) The amount of the charge shall be posted conspicuously within the card room; and

(b) The charge for the table rental shall first be furnished to the chief of police and shall not be changed until at least three days' notice of any such change is given, in writing, to the chief of police. No permit holder shall charge or impose any other fee for participation in any card game, and without limiting the foregoing, permit holders are specifically prohibited from taking any portion of the ante or bet made by any participant in any such game.

(Ord. No. 2486 (NCS), § 1; Ord. No. 2598 (NCS), §§ 7, 8, 9-5-2017)

(a) In addition to any business license tax as provided for in Chapter 19 of this Code, and any other fees which may be established by resolution of the city council, every person holding a card room permit shall pay to the city a quarterly permit fee in an amount as set by the city council per card room operated by the permittee. The fee shall be paid in advance for each calendar quarter (commencing on January 1, April 1, July 1, and October 1 of each year) or part of such calendar quarter during which the permittee will operate a card room. Except for the initial fee as provided for in Section 5-05.05 such permit fee shall be due and payable at least fifteen days prior to the commencement of each calendar quarter. A penalty equal to ten percent of the permit fee shall be imposed in those cases where the fee is not paid in a timely manner.

(b) For the purposes of clarification, the permit fees set forth in this section are for revenue purposes and for regulation purposes to reimburse the city for its costs in regulating and monitoring the conduct of card rooms.

(c) In addition to any monitoring or other fees set forth in this article or as may be established by resolution of the city council, every person holding a card room permit shall pay a fee to the city in an amount equal to the total cost of training associated with the monitoring of card room activities and the enforcement of state and local card room regulations in and around any card room which is or which may be established in the city. The total number of city employees to be trained and the need for such training shall be at the discretion of the chief of police. Such fee shall be paid prior to the issuance of an initial card room permit and shall be paid prior to any subsequent training(s) which may need to occur as determined by the chief of police. The failure of any card room permit holder to pay such fee upon request of the chief of police shall be deemed a violation of this article and subject the card room permit to suspension or revocation by the chief of police.

(Ord. No. 2486 (NCS), § 1; Ord. No. 2598 (NCS), §§ 7, 8, 9-5-2017)

(a) In addition to any other fees required under this article, each permittee operating a card room pursuant to this article shall pay to the city an annual fee established by resolution of the city council.

(b) The fee imposed on card rooms pursuant to a city council resolution adopted consistent with this section shall be remitted by the permittee to the city no later than January 1 of each year.

(c) Any permittee that fails to pay the fee imposed pursuant to this section when due shall pay a penalty of ten percent for each month or portion thereof that the fee remains due and unpaid. Such penalty shall be added by the city's finance director to the fee due on the first day immediately following the due date and the first day of each month thereafter that the fee remains due and unpaid. However, the total amount of such penalty shall not exceed one hundred percent of the fee that was due but not paid in a timely manner.

(d) All proceeds from this fee shall be deposited in the city's general fund with the city council reserving the right to budget and to allocate those proceeds for any general fund purpose.

(Ord. No. 2486 (NCS), § 1; Ord. No. 2500(NCS), § 1, 1-26-2010; Ord. No. 2598 (NCS), §§ 7, 8, 9-5-2017)

(a) A card room permit shall be deemed to be abandoned and null and void under any of the following conditions:

(1) The use of the premises as a card room has not commenced within four months after the issuance of the card room permit or renewal thereof;

(2) The premises have ceased to operate as a card room for a period of four continuous months;

(3) The permit fee, or any part thereof, required by this article has not been paid within the applicable periods after it becomes due and payable;

(4) The holder of any permit fails to apply for a renewal permit within the time prescribed in this article.

(b) If the chief of police determines that a card room permit has been abandoned pursuant to this section, the procedure for notification of abandonment and appeal to the city council shall be as set forth in this article. The notice shall state that the chief of police has determined that the permit has been abandoned and is null and void and the reason for such determination. The notice shall further state that the permittee may file a notice of appeal of such decision to the city council by filing the notice of appeal with the city clerk within the time periods and pursuant to the procedures set forth in this article.

(c) If the permittee fails to file a notice of appeal with the city clerk as required by this article, the police chief's determination shall become final and conclusive. If a notice of appeal is timely filed, the city clerk shall schedule the matter for hearing before the city council and shall provide the permittee and the chief of police notice of the date, time and place of the hearing.

(Ord. No. 2486 (NCS), § 1; Ord. No. 2598 (NCS), §§ 7, 8, 9-5-2017)

(a) On July 1 of each calendar year, the holder of any existing card room permit shall apply for a renewal of such permit in accordance with the provisions of this section and shall pay such fees as required by this article and as established by the city council. No card room permit shall be renewed except upon proper application for renewal and payment of applicable fees.

(b) An application for a renewal of a card room permit shall be filed by the permittee with the chief of police no later than one hundred twenty days prior to the expiration of the current permit, unless the time for filing is extended by the chief of police and all permit fees have been paid on or before expiration of the current permit.

(c) If the permittee does not timely renew the card room permit, the permittee shall be liable for the permit fee and for a late penalty established by the city council.

(d) If the permittee fails to renew the card room permit within the time set out in this section, the chief of police may order the immediate closure of the card room and cessation of all gaming activity therein until the card room permit is renewed.

(Ord. No. 2486 (NCS), § 1; Ord. No. 2598 (NCS), §§ 7, 8, 9-5-2017)

All card rooms shall comply with the following security measures, in addition to any other security measures which may be incorporated into the permit at the discretion of the chief of police and in any other permit or approval granted by the city:

(a) Any owner, operator, or employee of the card room shall have an affirmative duty to immediately report all crimes occurring on the premises to the Salinas police department.

(b) Each applicant shall present to the chief of police on an annual basis, and at such other time as may be required by the chief of police, a plan for security and safety of patrons and the public in and around the gaming establishment. Said plan must be approved by the chief of police prior to the issuance or renewal of the card room permit. The plan shall include such measures as deemed appropriate by the chief of police and must be approved by the chief of police prior to the issuance or renewal of the card room permit. The plan shall set forth provisions to ensure the safety and security of patrons, including measures taken or instituted by the establishment to avoid follow-home robberies. At a minimum, the plan shall address:

(1) Provision of adequate lighting and private security personnel within and in the vicinity of the card room and parking areas customarily used by card room patrons.

(2) Conspicuous posting of literature in Spanish and English that educates patrons of precautions to be taken to maximize their personal safety while in and upon leaving the card room.

(3) Installation and operation of security cameras in a manner and form as may be required by the chief of police and the maintenance of recordings of electronic surveillance of the entire premises, including any and all card room tables and games, during all hours of operation and as specified or otherwise required by the chief of police.

(c) The business records, papers, reports, audits, and books of account shall be made available for inspection and copying to the city's finance director upon reasonable notice by the city.

(d) No card room owner, operator or employee shall permit any person to loiter within the card room or to otherwise remain on the premises without reason to be there while card games are in progress.

(e) No card room owner, operator or employee shall permit any person to play any card room game while such person is obviously under the influence of an intoxicating beverage or drug.

(Ord. No. 2486 (NCS), § 1; Ord. No. 2598 (NCS), §§ 7, 8, 9-5-2017)

The Salinas city council hereby declares that it is not the intent of this article to permit any card room or card room permit holder to allow any games prohibited by the laws of the State of California.

(Ord. No. 2486 (NCS), § 1; Ord. No. 2598 (NCS), §§ 7, 8, 9-5-2017)

(a) On no less than an annual basis, the card room permittee shall provide a financial audit of all card room operations in the same form and format as that provided to the bureau's auditing division to verify the card room is in compliance with all applicable internal minimum internal control standards. Such audit shall be prepared in accordance with generally accepted accounting principles.

(b) In addition to the minimum auditing required under subsection a of this section, the city's finance director may order such financial and compliance reviews and oversight of such card room permittee as necessary in order to assure that each permittee is in full compliance with the requirements of this article.

(c) The city's finance director is authorized to contract for certified public accountants and other professional services that the city's finance director considers necessary in order to conduct any independent financial audit or review or any compliance audit or review of a permitted card room.

(d) The card room permittee that is the subject of the audit or review shall reimburse the city for the full costs of any certified public accountant and other professional services that the city's finance director considers necessary in order to conduct an independent financial audit or review or compliance audit or review.

(e) Audits conducted by the bureau or by other state agencies may, in the sole discretion of the city's finance director after review of the results of such audit, satisfy the requirements of this section.

(Ord. No. 2486 (NCS), § 1; Ord. No. 2598 (NCS), §§ 7, 8, 9-5-2017)

The card room permit holder shall allow the chief of police or a designee unrestricted access to all books, records, accounts, reports and facilities and all audio and video tapes pertaining to the card room including, but not limited to, cash counting rooms and vaults. Any failure or refusal of any card room permit holder to permit inspection of such books, records, accounts, reports and facilities in accordance with the provisions of this article shall be full and sufficient grounds for the revocation or suspension of the card room permit or the business license of such card room permit holder or licensee.

(Ord. No. 2486 (NCS), § 1; Ord. No. 2598 (NCS), §§ 7, 8, 9-5-2017)

In addition to any penalties or remedies specifically set forth in this article or elsewhere in the City Code, the operation of any card room in violation of this article or other applicable laws or regulations shall be deemed a public nuisance which may be abated or enjoined pursuant to a civil action brought by the City of Salinas.

The remedies set forth in this article are in addition to all other legal and equitable remedies, administrative, criminal or civil, that may be pursued by the city to address violations of this article.

(Ord. No. 2486 (NCS), § 1; Ord. No. 2598 (NCS), §§ 7, 8, 9-5-2017)

The card room permit holder shall be responsible for all violations of the laws of the State of California or of the regulations or ordinances of the City of Salinas, whether committed by the permittee or any employee or agent of the permittee, which violations occur in or about said card room whether or not said violations occur within the permit holder's presence.

(Ord. No. 2486 (NCS), § 1; Ord. No. 2598 (NCS), §§ 7, 8, 9-5-2017)

The amount of any fee, cost or charge imposed by this article shall be deemed a debt to the city that is recoverable in any court of competent jurisdiction.

(Ord. No. 2486 (NCS), § 1; Ord. No. 2598 (NCS), §§ 7, 8, 9-5-2017)

If any provision, clause, sentence or paragraph of this article, or application thereof to any person or circumstance, be held invalid by a court of law, such invalidity shall not affect other provisions or applications of the article which can be given effect without the invalid provisions or application of the article and, therefore, the provisions of this article are declared to be severable.

(Ord. No. 2486 (NCS), § 1; Ord. No. 2598 (NCS), §§ 7, 8, 9-5-2017)