Chapter 16.32 — CARDROOM LICENSES

A.

An effective and comprehensive licensing procedure is essential for the preservation of the integrity of cardroom and funding source operations in the city.

B.

Licensing of all persons who are required to be licensed pursuant to the provisions of this chapter is essential to assure the preservation of the integrity of cardroom and funding source operations in the city.

C.

Licensing shall be conducted in accordance with the requirements and procedures set forth in this chapter and the regulations promulgated by the administrator to fulfill the requirements and policies of this chapter and title.

(Ord. 28517.)

A.

All licenses required by this Chapter shall be subject to the procedures of this Part.

B.

A Complete Application for a license shall include any applicable fees as set forth in the Schedule of Fees established by Resolution of the City Council.

C.

Notwithstanding any contrary provision of this Chapter regarding licensing procedures, a person applying for a position with a Cardroom Permittee designated under State Gambling Law as requiring a Key Employee License shall be issued an interim Key Employee License or Key Employee License by the Commission as a condition precedent to filing an application for a City issued temporary Key Employee License or Key Employee License.

D.

Notwithstanding any contrary provision of this Chapter regarding licensing procedures, within ten (10) Business Days after the Gaming Administrator receives written notice from the California Gambling Control Commission that the Commission has issued a state Key Employee License to an Applicant, the Gaming Administrator shall submit a final written report and recommendation to the Chief of Police recommending granting a City issued Key Employee License, with or without limitations and conditions. The Administrator's final report and recommendation shall become a final decision effective twenty-one (21) calendar days after the service of the final report and recommendation on the Applicant unless the Applicant files a written request for a licensing hearing with the Chief of Police before the close of business on the twentieth day in order to contest the denial, or the limitations and conditions recommended by the Administrator which are not on the state Key Employee license issued by the Commission. The Applicant shall have no right to contest Commission imposed limitations and conditions with the City.

E.

Notwithstanding the Commission's issuance of a state Key Employee License, the Chief of Police retains the authority to place limitations and conditions on the City License pursuant to Section 16.32.160 or to subsequently revoke the City License if the applicant does not meet the criteria for licensing under this Title.

F.

When the Chief of Police issues a Key Employee License based upon the issuance of a state Key Employee License by the Commission, the term of the City License shall be the same as the term of the Commission license and any temporary Key Employee License issued pursuant to Section 16.32.620 of this Chapter shall automatically terminate as of the date the City issues the Key Employee License.

(Ords. 28517, 29039, 30616.)

It shall be the affirmative responsibility of each applicant to establish by clear and convincing evidence his or her individual qualifications for a license under this chapter.

(Ord. 28517.)

Each applicant seeking a license under this title and each licensee shall fully cooperate with the administrator and shall provide all information required by the administrator.

(Ord. 28517.)

If an applicant for a License required by this Chapter is not a natural person, such as a business organization, corporation, partnership, trust, or other entity, the Administrator may require licensing of the entity as well as the individual licensing of any person associated with the entity:

A.

Who owns an interest in the entity; or

B.

Who directly or indirectly manages or controls activities on the Cardroom Premises, either individually or on behalf of the entity; or

C.

Who directly or indirectly receives income from the activities on the Cardroom Premises that the Administrator deems necessary to hold a license, consistent with the public interest and the policies of this Title, except attorney and certified public accountants or the firms for which they work with respect to the provision of professional services for the entity; or

D.

Whom the Administrator otherwise deems necessary to hold a license, consistent with the public interest and the policies of this Title.

(Ords. 28517, 30616.)

No license shall be issued unless, based on all of the information and documents submitted, the administrator is satisfied that the applicant is all of the following:

A.

A person of good character, honesty, and integrity.

B.

A person whose current and prior activities, criminal record, if any, reputation, habits, and associations do not:

Pose a threat to the public interest of the city and state; or

Pose a threat to the effective regulation and control of cardrooms in the city; or

Create or enhance the dangers of unsuitable, unfair, or illegal practices, methods, and activities in the conduct of controlled gambling or in the carrying on of the business and financial arrangements incidental thereto.

C.

A person who has, in the judgment of the administrator, the appropriate business ability and experience for the position to which the person is applying.

D.

A person who is in all other respects, qualified to be licensed as provided in this chapter.

(Ord. 28517.)

The administrator may deny a license to any applicant who is disqualified for any of the following reasons:

A.

Failure of the applicant to establish eligibility and qualifications by clear and convincing evidence.

B.

Failure to provide information, documentation, and assurances required for qualification or failure to reveal any material fact relating to qualification, or to otherwise fail or refuse to fully cooperate with the administrator's licensing investigation.

C.

The supplying of information which is untrue or misleading.

D.

A felony conviction, including by a plea of nolo contendere, or a conviction by any federal court or a court in another state for a crime that would constitute a felony in California.

E.

A misdemeanor conviction, including by a plea of nolo contendere, or a conviction by any federal court or a court in another state for a crime that would constitute a misdemeanor in California, involving dishonesty, moral turpitude, prostitution, sale or possession for sale of a controlled substance, gambling, or any other

crime substantially related to the qualifications, functions, or duties of the cardroom business or gambling business, within a ten-year period immediately preceding the submission of the application; provided, however, that the granting of relief pursuant to California Penal Code Sections 1203.4, 1203.4a, or 1203.45, shall not constitute a limitation on the discretion of the administrator under the affirmative criteria set out in this chapter or affect the applicant's burden as set forth in this chapter.

F.

Association of the applicant with criminal profiteering activity or organized crime as defined in the California Penal Code Section 186.2 of the California Control of Profits of Organized Crime Act, Penal Code Sections 186 et seq.

G.

Contumacious defiance by the applicant relating to any legislative investigative body or any other investigative body in any state of the United States.

H.

The applicant is a partner, officer, director or shareholder or has any financial interest in any business organization that engaged in any form of prohibited gambling pursuant to the California Penal Code whether within or outside of the state.

I.

Denial of an application for, or revocation or suspension of, a license or work permit under this title or a license, work permit, registration or approval under State gambling law or the denial of an application for, or revocation or suspension of, a regulatory license, work permit, registration or approval for gambling in any other state.

J.

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

(Ord. 28517.)

An applicant for licensing and every licensee shall make full and true disclosure of all information the administrator requires in order to carry out the requirements and policies of this title.

(Ord. 28517.)

The administrator shall have the authority to obtain such criminal history information for each applicant and person named in the application as shall be required in order to make a determination of the person's eligibility and qualifications for a license.

(Ord. 28517.)

A.

An application for a license shall be accompanied by the deposit of a sum of money that, in the judgment of the administrator, will be adequate to pay the anticipated costs and charges incurred in the investigation, processing of the application and, at such time as a licensing hearing is requested by the applicant, a further deposit adequate to pay the anticipated costs of the licensing hearing.

B.

The administrator shall propose a schedule of costs and charges of investigation for use as guidelines in fixing the amount of any required deposit under this section. The costs and charges of the investigation and licensing hearing shall be as set forth in the schedule of fees adopted by resolution of the city council.

C.

The administrator will not process any application or conduct an investigation regarding the license application unless and until:

For each applicant applying for a licensed position with the cardroom permittee, the cardroom permittee pays the required deposit following service upon the permittee of the administrator's written notice of the deposit amount; or

For each applicant applying for a funding source employee license and for the funding source license itself, the funding source pays the required deposit following service upon the funding source of the administrator's written notice of the deposit amount.

D.

The cardroom permittee to whom the license application relates shall be liable for payment of all costs and charges incurred for each application for a licensed position with the cardroom permittee. The funding source to whom the funding source employee license application relates shall be liable for payment of all costs and charges incurred for each application for a licensed position with the funding source.

E.

During an investigation, the administrator may require the cardroom permittee or funding source to whom the funding source employee license application relates to deposit any additional sums allowed under the schedule of fees as are required by the administrator to pay final costs and charges of the investigation and licensing hearing.

F.

Any money received from a cardroom permittee or funding source in excess of the costs and charges incurred in the investigation, the processing of the application, and the licensing hearing shall be refunded

by the administrator after the completion of the hearing.

G.

At the conclusion of the licensing hearing, the administrator shall provide the cardroom permittee or the funding source to whom the license application relates with a written accounting of the costs and charges thereby incurred.

H.

Failure of the cardroom permittee or the funding source to whom the license application relates to make a payment of the required deposit shall be deemed a waiver of the application for a license, which shall result in the denial of the license application.

(Ord. 28517.)

A.

Each Applicant shall file a Complete Application with the Administrator on forms prescribed by the Administrator.

B.

Within a reasonable time after the filing of an application the Administrator shall review the application to determine whether it is a Complete Application. If the Administrator determines the application is not a Complete Application, the Administrator shall notify the applicant that it is incomplete. If the Administrator determines the application is a Complete Application, then the Administrator shall commence an investigation and conduct any proceedings it deems necessary.

C.

To the extent practicable, the Administrator shall act on all Complete Applications within one hundred and eighty (180) calendar days of the date of receipt of a Complete Application.

D.

If an investigation cannot be concluded and a report and recommendation issued within one hundred eighty (180) days after the date of receipt of a Complete Application, the Administrator shall inform the Applicant in writing of the status of the investigation and the reasons for delay in completing the investigation, and shall also provide the Applicant with an estimated date on which the investigation may reasonably be expected to be concluded. Thereafter, at two- month intervals, the administrator shall provide the Applicant with a written status update until the license has been granted, withdrawn or denied.

(Ords. 28517, 29039, 30616.)

A.

After completion of the investigation, the Administrator shall prepare a report and recommendation to the Chief of Police regarding the licensing Application.

B.

The Administrator may recommend denial, approval, or approval with limitations and conditions.

C.

The Administrator shall prepare and submit to the Chief of Police the written reasons upon which the recommendation is based.

D.

Prior to filing a recommendation that the Chief of Police deny an Application or approve with limitations and conditions, the Administrator shall meet with the Applicant, or the Applicant's authorized representative, and inform him or her generally of the basis for any proposed recommendation that the Application be denied, restricted, or conditioned.

E.

The Administrator shall serve upon the Applicant, or the Applicant's authorized representative, a copy of the Administrator's final report and recommendation.

F.

If the Administrator's recommendation is to deny an application, or approve with limitations and conditions, the Administrator's final report and recommendation shall become a final decision effective twenty-one (21) calendar days after the service of the final report and recommendation on the Applicant unless the applicant files a written request for a licensing hearing with the Administrator before the close of business on the twentieth day. If the Administrator's recommendation is to issue the license without limitations and conditions, the recommendation shall become a final decision when it is approved by the Chief of Police and served on the Applicant.

(Ords. 28517, 30616.)

A.

A request for withdrawal of an Application may be made in writing at any time prior to the Administrator's submission of his or her final report and recommendation to the Chief of Police.

B.

The Administrator shall not grant the request unless the Applicant has established that withdrawal of the Application is consistent with the public interest and the policies of this Title.

C.

If a request for withdrawal is denied, the Administrator may go forward with the investigation and may act upon the Application as if no request for withdrawal had been made.

D.

If a request for withdrawal is granted with prejudice, the Applicant thereafter shall be ineligible to renew its Application until the expiration of seven (7) years from the date of the withdrawal. If a request for withdrawal is granted without prejudice, the applicant shall be eligible to renew the application immediately after the Administrator serves the Applicant with notice that the request to withdraw has been granted without prejudice, unless the Administrator, in the Administrator's discretion, determines that the Applicant shall be ineligible to reapply for a period of up to two (2) years from the date the request for withdrawal is granted by the Administrator. The exercise of the Administrator's discretion shall be consistent with the efficient administration of the Division, the public interest, and the policies and requirements of this Title.

E.

Unless the Administrator otherwise directs, no fee or other payment relating to the Application is refundable by reason of withdrawal of an Application.

F.

The Administrator can deem an Application withdrawn if it is abandoned by the Applicant. Before deeming an Application withdrawn as abandoned, the Administrator shall give the Applicant fourteen (14) calendar days notice of this intention. The notice shall be mailed to the Applicant's last known address.

(Ords. 28517, 30616.)

A.

Upon a timely request for hearing, the administrator shall serve the applicant with written notice of the day, time, and place of the licensing hearing not less than thirty calendar days prior to the date of the hearing.

B.

In cases where the administrator recommends denial of an application or approval with limitations and conditions, the notice of licensing hearing shall state that the applicant shall be given the opportunity to submit to the chief of police, at least ten calendar days prior to the licensing hearing, written reasons, documents, and argument explaining why the application should be approved or why no limitations or conditions should be placed on the license.

(Ord. 28517.)

The licensing hearing shall be conducted by the chief of police in accordance with the provisions of Chapter 16.36.

(Ord. 28517.)

A.

The Chief of Police, after considering the recommendation of the Administrator and such other testimony and written comments as may be presented at the licensing hearing, or may be submitted in writing to the Chief of Police prior to the hearing, may either deny or grant the Application for a license.

B.

When the Chief of Police grants an Application for a license, the Chief of Police may place limitations and conditions on the license that the Chief of Police deems necessary, consistent with in the public interest and the policies of this Title, provided that, if the Applicant does not consent to any new limitations and conditions that were not identified in advance by the Administrator, the Application may be withdrawn without prejudice.

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.

The statement of decision shall be served upon the Applicant within forty-five (45) Business Days of the close of the hearing.

(Ords. 28517, 30616.)

A.

The decision of the chief of police on a license application shall be final upon service on the applicant.

B.

The written statement of decision shall contain a notice setting out Section 1.16.010 of this Code.

(Ord. 28517.)

The chief of police shall issue to the applicant a license containing an enumeration of any specific limitations and conditions on the license if both of the following conditions have been met:

A.

The chief of police is satisfied that the applicant is eligible and qualified to receive the license; and

B.

The license fee or renewal license fee set forth in the schedule of fees established by resolution of the council has been paid with the original application or renewal application.

(Ord. 28517.)

A.

All licenses, except landowner's licenses, financial source licenses, and Key Employee licenses issued by the City based upon the issuance of a state Key Employee License by the Commission, shall expire three (3) years after the date of issuance.

B.

Not less than one hundred twenty (120) calendar days prior to the expiration of a City issued license, the Licensee shall provide written notice to the Division Of Gaming Control of the Licensee's intent to apply for renewal. The Administrator shall provide the Licensee with a renewal application, which Application shall require disclosure by the Applicant as to the status of any Commission issued license the Applicant is required to rely upon for purposes of this Title. If, after submission of an Application for renewal, the Administrator determines that further investigation is needed, based upon the public interest and consistent with the requirements and policies of this Title, the Administrator shall notify the Applicant in writing that further investigation is needed.

C.

No license shall be renewed except upon proper application for renewal and payment of applicable license application fees.

D.

An application for renewal of a license shall be filed and the applicable license application fees shall be deposited by the Licensee with the Administrator not later than eighty (80) calendar days prior to the expiration of the current City issued license, unless the time for filing is extended by the Administrator. An untimely application may be rejected by the Administrator. If an application for renewal is accepted by the Administrator, then the license shall continue in effect unless revoked or suspended until such time as a decision is made to renew or deny the renewal application.

E.

Upon renewal of any license, the Administrator shall issue an appropriate renewal certificate, validating device or sticker, or identification card.

F.

Any licensee who does not timely deposit the license fee shall be liable for the license fee and a late penalty set forth in the Schedule of Fees established by Resolution of the City Council.

G.

If a stock ownership licensee fails to apply for a renewal of the license within the time set out in this Section, the Administrator may order the immediate closure of the Cardroom Premises and a cessation of all Gaming activity therein until the stock ownership license renewal application is filed. The Administrator shall provide notice to the stock ownership licensee not less than ten (10) Business Days prior to issuing an order for closure pursuant to this Section.

H.

Persons who are granted licenses as landowners pursuant to Section 16.32.400, and financial sources pursuant to Section 16.32.500 shall be automatically renewed unless called forward by the Administrator for a re-application process. Such notification shall be provided by the Administrator one hundred twenty (120) days before the expiration of the license.

(Ords. 28517, 28674, 29039, 30616.)

No license may be assigned or transferred either in whole or in part.

(Ord. 28517.)