Chapter 16.06

ADMINISTRATION

Sections:

• 16.06.020 Division of gaming control administrator.

• 16.06.030 Functions, powers, and duties.

• 16.06.040 Regulations.

• 16.06.050 Provisional rule-making procedure.

The division of gaming control is hereby created within the police department. (Ord. 28517.)

• A. The administrator of gaming control shall head the division of gaming control.

• B. The administrator shall be a civilian.

• A. The Administrator shall:

  1. Manage and supervise the operation of the Division of Gaming Control.

  2. Investigate the qualifications of Applicants and prescribe all forms to be used for the investigation of the qualifications of Applicants.

  3. Conduct investigations to:

     • a. Determine whether there has been any violation of this Title or of State Gambling Law.

     • b. Determine any facts, conditions, practices, or matters that he or she may deem necessary or proper to the enforcement of this Title.

     • c. Aid in promulgating Regulations.

  4. Conduct audits and reviews of Cardroom operations to assure compliance with the requirements of this Title and conduct financial audits and reviews to assure that revenues are accurately recorded.

  5. Investigate and take any actions authorized under this Title regarding all work permit cases affecting the granting, renewal, suspension, revocation, and addition of limitations and conditions to any work permit.

  6. Investigate and take any actions authorized under this Title against Cardroom Permittees and Licensees.

  7. Make recommendations to the Chief of Police on Cardroom permit amendment applications and on license applications.

  8. Collect all fees imposed by this Title.

  9. Subject to review and approval processes enumerated within this Title, promulgate regulations necessary to fulfill the requirements and policies of this Title.

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§ 16.06.050

10. Perform such other functions and duties and hold such powers as are specifically conferred elsewhere in this Title.

11. Issue administrative subpoenas.

12. Perform such other functions related to the Division Of Gaming Control and the administration of this Title that the City Council, the City Manager, or the Chief of Police may, from time to time, authorize or request.

• B. Notwithstanding the provisions of Subsection A, the Administrator is not authorized to conduct criminal investigations. Criminal investigations shall be conducted separately by the Police Department and not by the Administrator of the Division of Gaming Control.

• (Ords. 28517, 30616.)

• A. The administrator is authorized to promulgate all regulations necessary to implement the requirements and fulfill the policies of this title, including, but not limited to the following subjects:

  1. Prescribe cardroom permit, license, and work permit application and renewal application forms and the scope of information required for licensing and permitting, including, but not limited to fingerprints, photographs, releases for criminal arrest, conviction, and other criminal history information, releases for financial, credit, business, and employment history, and certification of applicant responses under penalty of perjury.

  2. Procedures for investigating all applicants for licenses and work permits.

  3. Procedures for cardrooms to accept negotiable instruments from patrons.

  4. Procedures for regulatory action on cardroom permits and licenses, and for suspension, revocation, renewal and setting of limitations and conditions on work permits.

  5. Minimum security and surveillance controls by cardrooms.

  6. Minimum internal controls for the effective control of internal cardroom fiscal and operational matters including, but not limited to the safeguarding of assets and revenues and maintenance of reliable records, accounts, and operations.

  7. Periodic financial and compliance reporting to the administrator, including, but not limited to an annual audit prepared by an independent certified public accountant or firm, attesting to the financial condition of the cardroom permittee, to the compliance of the cardroom permittee with the requirements of this title, and to the compliance of the cardroom permittee with the requirements of the cardroom tax under Chapter 4.77 of Title 4 of this Code and its ability to accurately record and calculate the cardroom tax.

  8. Methods to assess and collect fees, late penalties, and interest.

  9. Criteria and procedures for reporting criminal or potential illegal activity on cardroom premises or connected with the operation of a cardroom to the police department.

  10. Define and limit areas of operation of the cardroom and the rules of the controlled games that cardrooms are permitted to play under this title.

• B. All the regulations promulgated by the administrator, provisional or final, shall have the force and effect of law.

• (Ord. 28517.)

• A. Subject to review and approval by the chief of police, the administrator shall be authorized to issue provisional regulations to implement the requirements and fulfill the policies of this title without recourse to the advance notice

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§ 16.06.050

and comment requirements for final regulations on an emergency basis for the following reasons:

1. When changes are made in state gambling law that the administrator deems to require conforming changes in this title; or

2. In order to control practices or conduct at cardroom premises or by cardroom permittees, work permittees, licensees, registrants, or applicants that the administrator reasonably believes constitute an imminent danger to the public health, safety, or welfare; or

3. In order to control practices or conduct at cardroom premises or by cardroom permittees, work permittees, licensees, registrants, or applicants that the administrator reasonably believes constitute an imminent danger to the administrator's ability to effectively administer and enforce the requirements and policies of this title.

• B. Provisional regulations shall take effect upon service on the cardroom permittees and any other person who would be subject to the provisional regulation.

• C. All provisional regulations promulgated by the administrator shall sunset one year after they take effect if the administrator has not acted to promulgate the provisional regulation as a final regulation pursuant to the procedures set out in this chapter.

• (Ords. 28517, 29039.)

• A. No regulation shall be adopted by the Administrator as a final regulation prior to meeting all of the following requirements:

  1. The Administrator shall submit a draft of a proposed Regulation to the Chief of Police and obtain the Chief's approval to propose the Regulation.

  2. The Administrator shall make each proposed regulation approved by the Chief

of Police available for inspection and copying by the public at the office of the Administrator during normal business hours.

3. The Administrator shall mail a copy of each proposed Regulation to each Cardroom Permittee and any other person who would be subject to the proposed Regulation.

4. The Administrator shall make a copy of each proposed Regulation available for inspection and copying by each person who has provided written notice to the Administrator that he or she wishes to be notified of the proposal of new Regulations.

5. The Administrator shall provide a thirty (30) Business Day public comment period starting from the date of service on the Cardroom Permittees. During this period, any person, including Cardroom Permittees and any other persons who would be subject to the proposed Regulation, may submit written comments to the Administrator.

• B. At the close of the public comment period, the Administrator shall consider all the public comments on the proposed Regulation and shall then finalize the Regulation. The finalized Regulation shall be accompanied by a brief written statement from the Administrator that references all the reasonable written comments on the proposed Regulation and explains why the comments were accepted, rejected, or modified by the Administrator. The finalized Regulation and the Administrator's written statement shall be submitted to the Chief of Police for review.

• C. After review and approval by the Chief of Police of the finalized Regulation and the Administrator's written statement, the proposed Regulation shall become final upon service by the Administrator of both documents on the Cardroom Permittees and such other persons subject to the Regulation.

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GAMING CONTROL

• D. The Administrator may amend a final Regulation by following the procedure for promulgating Regulations.

• (Ords. 28517, 29039, 30616.)

• A. The Administrator shall be authorized to:

  1. Inspect all Cardroom Premises, including, but not limited to, Cardroom security and surveillance equipment, and Gaming Equipment without notice or warrant at any time.

  2. Inspect, examine, remove and impound all documents, records, books, supplies, Gaming Equipment, cash box, computers, and other equipment on the Cardroom Premises, other than those documents protected by the attorney client privilege or work product doctrine. The Cardroom must provide a privilege log that identifies with date, author, recipient, subject and other information sufficient to determine the applicability of the claimed protection. The privilege log must be provided to the Administrator as soon as practical, but no more than ten (10) Business Days after the inspection.

  3. Visit, investigate, and place expert accountants, technicians, and any other persons, as the Administrator may deem necessary, in all areas of the Cardroom Premises for the purpose of determining compliance with the requirements of this Title and State Gambling Law.

• B. The Administrator shall provide copies to the Cardroom Permittee of any seized documents and a description of other seized items as soon as practicable under the circumstances, taking into account the volume of records seized and the need to safeguard the integrity of the investigation.

• C. When practicable under the circumstances, taking into account the volume of records seized and the need to safeguard the integrity of the investigation, the Administrator may copy the

seized documents prior to removing them from the premises. Each Cardroom shall make available to the Administrator appropriate equipment and other personnel or immediate assistance needed in order to copy seized documents on the Cardroom Premises.

• D. For purposes of this Section, documents and records shall include, but not be limited to, any writing containing information. The writing may be handwritten, typewritten, printed, a photo static copy, a photograph, all papers, maps, magnetic or paper tapes, photographic films and prints, magnetic or punched, cards, discs, diskettes, drums, or other electronic means of storing information, including computer stored information, and every other means of recording information. The information may be in any form of communication or representation, including letters, words, pictures, sounds, or symbols, numbers, or combination thereof.

• E. When the Administrator visits or inspects the Cardroom Premises, the Cardroom Permittee shall provide the Administrator with immediate, unhindered access to all areas of the Cardroom Premises, including surveillance rooms.

• F. Subsection A shall not be construed to limit warrantless inspections and seizures except as required by the California Constitution or the United States Constitution.

• (Ords. 28517, 30616.)