Chapter 6.08

AMUSEMENT DEVICES*

Sections:

• 6.08.010 Amusement device defined.

• 6.08.020 License - Required.

• 6.08.030 Licenses - Application - Information required.

• 6.08.040 Licenses - Application - Acceptance - Approval by chief of police.

• 6.08.050 Owner's license - Requirements.

• 6.08.060 Owner's license - Fee.

• 6.08.070 Exhibitor's license - Requirements.

*State law reference— For statutory provisions authorizing cities to tax and license games, see Gov. Code § 37101.

No person shall keep or exhibit, or engage in the business of renting out or placing, any amusement device within the City of San José without first obtaining and keeping in current effect the requisite licenses as provided by this Code. (Prior code § 6203.1; Ord. 19794.)

Each owner or exhibitor applying for licenses under this chapter shall submit an application to the city treasurer containing the following information:

• A. The applicant's full name and business address;

• B. The name and address of any person other than the applicant who holds any

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§ 6.08.040

right, title or interest in or to each amusement device for which a license is sought; in those instances where such person is other than an individual, there shall be filed with the city treasurer and kept available for public inspection a statement showing, in the case of a partnership, the names and addresses of the partners; in the case of a corporation, the names and addresses of the stockholders and directors; and in the case of a business trust, the names of the trustor or trustees and beneficiary or beneficiaries;

• C. In case of owners, the number of amusement devices being placed for exhibition or exhibited in San José;

• D. In the case of exhibitors, the place where the amusement devices are to be located, and whether such machines are being maintained and operated in connection with any other business or calling; and, if so, the character of said business or calling;

• E. A statement that the amusement device(s) for which the license is sought are not intended to be, and will not be, used for any gambling purposes whatsoever.

• F. If the license is for an amusement game device, as defined by Section 20.200.110, the exhibitor shall state the number of such devices already being maintained in the business establishment, the permit number of the permit obtained in accordance with Section 20.70.500 and the number of devices authorized by that permit.

(Prior code § 6203.2; Ord. 21539.)

• A. The city treasurer shall refuse to accept any application for an owner's or exhibitor's license unless the treasurer finds the application complete and regular on its face. The city treasurer shall refuse to accept any application

for an owner's or exhibitor's license unless there is tendered therewith payment of the appropriate fees, which fees shall be nonrefundable.

• B. The city treasurer shall refuse to accept any application pursuant to this chapter unless the applicant has submitted to the city treasurer a declaration under penalty of perjury which certifies that the business establishment sought to be licensed is and at all times will be maintained in conformity to all of the following criteria:

  1. The business establishment for which the application is made is in compliance with the zoning, building and fire codes of the City of San José;

  2. There is an integral net leasable area of three hundred square feet, not including storage areas, within the establishment, for each device sought to be approved hereunder. The amusement game devices may be separated from the rest of the business by walls, partitions or closeable doors; however, if such separated area has independent outside access, it shall be treated as a separate establishment for the purposes of this chapter;

  3. No amusement game device shall be located closer than twenty feet from the location of any packaged alcoholic beverages;

  4. The use will be conducted in such a manner that it will not create a public or private nuisance and so that it will not adversely affect the peace, health, safety, morals or welfare of the community in which it is located;

  5. Neither the applicant nor any person holding any right, title or interest in such business establishment, nor any principal manager thereof, has been convicted of a crime, within the past three years, which is substantially related to such person's qualifications, functions or duties

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with respect to the use of amusement game devices in a business establishment.

• C. The chief of police shall approve or deny any application within thirty days following its receipt by the city treasurer. The chief of police may deny any application on the grounds that the applicant, or a principal manager of the applicant:

  1. Has been convicted of a crime, if the crime is substantially related to the qualifications, functions or duties of amusement game device owners or exhibitors; or

  2. Has done any act involving dishonesty, fraud or deceit with the intent to substantially benefit himself or another, or substantially injure another; or

  3. Has done any act which if done by a licensee would be grounds for suspension or revocation of the license; or

  4. Has knowingly made a false statement of fact required to be revealed in the application; or

  5. The operation of the amusement device(s) or the premises as proposed will violate any law or ordinance.

Each owner shall pay an owner's license fee as set forth in the schedule of fees established by resolution of council.

(Prior code § 6203.6; Ords. 19794, 21285, 21384.)

• A. Each exhibitor placing amusement devices at locations within the city shall obtain from the city treasurer a license bearing on its face the date of issuance, the exhibitor's full name and business address, and the number of amusement devices being placed for exhibition in the city.

• B. For purposes of this Code, an "exhibitor" is any person not regularly engaged in the business of renting out or placing amusement devices, but who hires, uses, operates, displays for public patronage or keeps for operation such devices in his own place of business located in the city.

(Prior code § 6203.7; Ord. 19794.)

Each exhibitor shall pay an exhibitor's license fee as set forth in the schedule of fees established by resolution of council.

(Prior code § 6203.8; Ords. 20640, 21825, 21384.)

(Prior code § 6203.3; Ords. 21539, 23701.)

• A. Each owner placing amusement devices at locations within the city shall obtain from the city treasurer a license bearing on its face the date of issuance, the owner's full name and business address, and the number of amusement devices being placed for exhibition in the city.

• B. For the purposes of this Code, an "owner" is any person engaged in the business of renting out or placing amusement devices, and who rents or places such devices in any location within the city.

(Prior code § 6203.5; Ord. 19054.)

Every location at which an amusement device is placed for exhibition shall have displayed in a conspicuous place on the premises a current and valid license sticker issued by the city treasurer, which sticker shall bear the treasurer's serial numbers and the serial number of the owner placing the machine. The exhibitor shall be responsible for said display.

(Prior code § 6203.11.)

Any permit or license issued under this chapter shall be nontransferable, upon penalty of revocation.

(Prior code § 6203.9.)

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§ 6.08.150

• A. Every license issued pursuant to this chapter shall be subject to suspension or revocation by the city treasurer upon a finding made, pursuant to hearing as set forth hereinafter, that:

  1. The license holder is renting, placing, exhibiting or operating any amusement device in violation of this chapter, or any section of the San José Municipal Code, or the laws of the state or the United States;

  2. Any licensed amusement device or licensed premises are being operated and maintained in a manner contrary to the declaration made pursuant to Section 6.08.040B, or contrary to the health, safety, good morals and welfare of the people of the city; or

  3. The licensee knowingly made a false statement in the license application.

• B. It shall be the duty of the city treasurer to put on notice any license holder charged with any violation or misconduct, as described above, by serving such person either personally or by registered United States mail with a letter setting forth the particular violation or circumstances warranting suspension or revocation of the license, notifying such person of the action which the city intends to take, and setting a date, not later than ten days from the date of service of said notice, on which the license holder may appear and be heard in defense to the charges. Failure on the part of the license holder to appear at the time and place set forth in the written notice, unless otherwise waived or excused, shall result in the automatic suspension or revocation of the license, as the case may be, and such shall be deemed for good and sufficient cause.

• (Prior code § 6203.16; Ord. 23701.)

• A. Hearings provided under the provisions of Section 6.08.110 shall be held by the director of

  • finance in his office. The chief of police and the city attorney, or their authorized representatives, shall attend such hearing. After hearing all evidence presented, the director of finance shall determine if there is good cause and sufficient ground for the suspension or revocation of such license. If he finds that such license should be suspended or revoked he shall order the same in writing not later than five days after the conclusion of such hearing.

• B. Any and all appeals from any such order shall be taken as specified in Chapter 6.02 of this title.

(Prior code § 6203.17.)

No owner shall place amusement devices within the city in excess of the number authorized by his current license.

(Prior code § 6203.12.)

• A. Except as authorized in subsection B below, it shall be unlawful for any holder of any license issued under this chapter to offer, allow or permit any award, payoff, or delivery of anything of value, or representing or exchangeable or redeemable for anything of value, in any play, contest, tournament, or individual operation of an amusement device.

• B. The holder of a license issued under this chapter shall be authorized to allow players of amusement devices which are games of skill to receive free replays, tokens, or coupons that may be exchanged for prizes with a value not exceeding thirty dollars. Amusement devices which are games of skill shall include coin or token operated game machines, video games, pinball and other similar devices designed and manufactured for amusement only, the outcome of which depends primarily on the skill of the player.

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§ 6.08.150

• C. No replay, token, coupon or prize awarded pursuant to subsection B shall be converted to or exchanged for money by the holder of a license issued under this chapter.

• B. "Open" means any such area or place which is not completely surrounded and covered by a building.

(Prior code §§ 6501.1, 6501.2.)

(Prior code § 6203.14; Ords. 21539, 23016.)

Nothing contained in this chapter shall be deemed to permit the licensing, maintenance or operation of any amusement device which is contrary to any of the laws of the state or the United States government, or the ordinances of the city, nor to permit the operation of any amusement device licensed under this chapter in such a manner as to be contrary to any of said laws or ordinances. (Prior code § 6203.15; Ords. 21539, 23701.)