Chapter 5.6 GAMING CLUB AND CARD ROOM REGULATIONS AND LICENSE REQUIREMENTS*

* Chapter 6 entitled “Gaming Tables”, consisting of Sections 5.6.01 through 5.6.12, codified from Ordinance No. 304, as amended by Ordinance Nos. 330, 351, 389, effective November 17, 1965, 398, effective April 6, 1966, 401, effective May 4, 1966, 451, effective May 1, 1968, 74-43 and 74-44, effective February 5, 1975, 76-4, effective March 3, 1976, 76-35, effective January 5, 1977, 76-36, effective January 19, 1977, 77-33, effective July 6, 1977, 78-42, effective October 18, 1978, and 83-22, effective November 9, 1983, repealed by Urgency Ordinance No. 86-4, effective February 19, 1986, repealed by Ordinance No. 95-27, effective December 13, 1995

5.6.01 Title.

This chapter shall be known as the City of Clovis Gaming Club or Card Room Ordinance. (§ 3, Ord. 95-27, eff. December 13, 1995)

5.6.02 Findings and determination.

The City Council finds and determines as follows:

(a) There currently exists within the City a single card room which has been allowed to remain in operation in accordance with uncodified Ordinance 86-6.

(b) It is the desire of the Council to continue to make card rooms and gaming clubs illegal within the City except for the existing card room.

(c) An ordinance closely regulating gaming club operations within the City is necessary to protect the public health, safety and welfare of the citizens of Clovis.

(d) The City’s current gaming club ordinances as set forth in this chapter, and in uncodified ordinance No. 86-6, need to be replaced by a single codified ordinance which contains strict regulations on time, place and manner of operation, allows the City to receive appropriate revenue from the operation of the gaming club, expands permitted games, and allows for an increase in the number of tables. (§ 3, Ord. 95-27, eff. December 13, 1995; § 1, Ord. 11-11, eff. November 2, 2011)

5.6.03 Gaming tables and card rooms prohibited.

Except as provided in this chapter, no person or entity shall maintain, manage, operate, or otherwise allow the maintenance, management, or operation of any gaming club, card room or gaming table or in any other way permit or allow any gaming club, card room or gaming table to be maintained, managed, or operated within any building or structure, or any portion of a building or structure, owned, occupied or controlled by him or her and located within the City. (§ 3, Ord. 95-27, eff. December 13, 1995)

5.6.04 Definitions.

For the purposes of this chapter, the words and phrases hereinafter set forth shall have the following meanings ascribed to them unless the context clearly requires otherwise:

(a) “Applicant” shall mean any person or entity filing an application with the City pursuant to this chapter seeking a gaming club license, permission to transfer interest, registration certificate, work permit, or any other license, certificate or permit required by this chapter.

(b) “Card room” shall mean that portion of the gaming club in which legal gambling or gaming is conducted.

(d) “Conduct” shall mean and include the terms “conduct,” “transact,” “maintain,” “prosecute,” “practice,” “manage,” “operate,” “permit,” “allow,” “suffer” and “carry on.”

(e) “Commence” shall mean and include the terms “commence,” “begin,” “initiate,” “start,” “open” and “establish.”

(f) “Conviction or convicted” shall mean a plea of guilty, a final verdict of guilty or a conviction following a plea of nolo contendere, irrespective of whether the conviction is expunged.

(g) “Council” shall mean the City Council of the City of Clovis.

(h) “Day” shall mean “calendar day” unless otherwise expressly stated.

(i) “Employee” shall mean every person who is engaged in the operation or conduct of any gaming club whether as an associate, agent, manager, employee or representative and each and every other person employed or working at or for such a business for a wage, salary, commission, room, board or any other remuneration.

(j) “Filing and processing fees” shall mean the imposition, pursuant to this chapter and/or resolution of the City Council, of fees and/or deposits to be used for the purpose of reimbursing the City for its costs of administering the provisions of this chapter.

(k) “Financial interest” means any direct or indirect interest in the management, operation, ownership, profits or revenue (gross or net) of a gaming club.

(l) “Game” shall mean legal gambling or gaming as defined below.

(m) “Gaming club” shall mean any building or structure, or portion thereof, for which a license is obtained and in which legal gambling or gaming is conducted. The term shall include any restaurant, bar, assembly room, meeting room or office which is a part of or appurtenant to the room or rooms in which legal gambling or gaming is conducted. The term shall also include the business of operating the gaming club and those business enterprises which are a part thereof, i.e., restaurant, bar, etc.

(n) “Gross revenue” means and includes seat rental fees, tournament fees, membership fees, table revenues, and any and all other gaming charges directly derived from gaming activities conducted on or within the gaming club premises; provided, however, gross revenue shall not include, and be reduced by, the amount of promotional chips given to patrons. Gross revenue does not include revenue derived from the sale of food, beverages, sundries, or from any other nongaming activities.

(o) “Key management employee” shall mean (1) any natural person with the power to direct operations of a gaming club; (2) any natural person with the power to supervise employees of the gaming club; (3) any natural person with the actual or apparent authority to direct the counting of revenue generated by the gaming club; and (4) any natural person employed or engaged by the licensee to manage the gaming club. The term “manager” when used in this chapter shall have the same meaning as key management employee and the two are used interchangeably.

(p) “Lease” means any formal or informal, written or oral contract or understanding or arrangement whereby any person operating a gaming club obtains the use or possession of any property, real or personal, to be used, occupied, or possessed in connection with the conduct of games at any gaming club. The term “lease” includes without limitation payments to an affiliated person under a real property lease, a personal property lease, an unsecured note, a deed of trust, a mortgage, or a trust indenture.

(q) “Lessor” means any person who leases any property, real or personal, to a person operating a gaming club for use in connection with the conduct of games or related activities.

(r) “Legal gambling” or “gaming” shall mean any card game played for currency, check, credit or any other thing of value which is not prohibited and made unlawful by Chapter 9 (commencing with Section 319) or Chapter 10 (commencing with Section 330) of Title 9 of Part 1 of the Penal Code or by this chapter. The game of bingo is not governed by the provisions of this chapter but, rather, by the provisions of Chapter 15 of this title.

(s) “License” shall mean a license previously issued, or hereafter modified or expanded pursuant to this chapter, allowing the operation of a gaming club.

(t) “Licensee” shall mean any person or entity who holds a current valid license issued by the City to operate a card room or gaming club.

(u) “License fees” shall mean all fees levied upon a licensee pursuant to this chapter.

(v) “Playing cards” or “card games” shall mean the participation in legal gambling or gaming at a gaming club.

(w) “Premises” shall mean land together with all buildings, improvements and personal property located thereon and related to card room use.

(x) “Pointholder” shall mean any person or entity, other than a licensee named in a license, having a financial interest or beneficial interest in the license.

(y) “Propositional player” shall mean an individual, other than an owner, key management employee, or other supervisor, who provides third-party propositional player services in a game.

(z) “Registration certificate” shall mean a certificate issued pursuant to this chapter authorizing a person to be a key management employee.

(aa) “Security deposit” shall mean any security or deposit required by this chapter to ensure the prompt and full payment of any license fees imposed by the city pursuant to this chapter.

(bb) “Work permit” shall mean a permit issued pursuant to this chapter authorizing a person to be an employee of a gaming club. (§ 3, Ord. 95-27, eff. December 13, 1995; § 1, Ord. 11-11, eff. November 2, 2011)

5.6.05 Conformance with State law.

(a) It is the stated purpose of this chapter to regulate gaming clubs in the City concurrently with the State of California, and to impose local controls and conditions upon gaming clubs as permitted in the Gambling Control Act as codified in Division 8, Chapter 5 of the California Business and Professions Code (commencing with Section 19800) and Title 4, Division 18 and Title 11, Division 3 of the California Code of Regulations. All such references in this chapter to the Gambling Control Act are to such laws, as may be amended.

(b) The registration of any corporation, individual, partnership or other entity or person under the Gambling Control Act does not entitle such state registrant to any license or permit under this chapter.

(c) In conformance with State law, the playing of percentage games is impermissible. Any fees paid by patrons of card rooms shall not be tied to the amount of a player’s bet, the size of the pot, winnings that may be collected or money that changes hands among the players at the table. (§ 3, Ord. 95-27, eff. December 13, 1995; § 1, Ord. 11-11, eff. November 2, 2011)

5.6.06 Existing card room license continued: Application for license pursuant to this chapter; Repeal of uncodified Ordinance 86-6; Only one card room within the City permissible.

A. Every card room or gaming club license previously issued by the City Council, and in effect as of the date this ordinance is adopted, shall be permitted to continue in existence under its existing terms and conditions and under the provisions of uncodified Ordinance 86-6, until such time as the licensees shall apply for and obtain an expanded license pursuant to the terms of this chapter, at which time the terms and conditions of the expanded license shall govern.

B. An expansion of the existing card room operations to allow more than six (6) tables, shall be accomplished only by the holders of the existing valid card room license applying for a license in accordance with the provisions of this chapter by completing the application procedures described in Sections 5.6.11 and 5.6.12. The City may, in its discretion, waive any of the application requirements if it determines that those requirements are already satisfied by the existing license, and that those requirements would therefore be duplicative and unnecessary. The City may, in its discretion, also waive all or part of the filing and processing fee required by Section 5.6.17(a).

C. Upon the granting of an expanded license pursuant to the terms of this chapter, uncodified Ordinance 86-6 adopted by the Council on March 3, 1986, and all subsequent amendments thereto, shall have no further force and effect.

D. There shall be a maximum of one gaming club existing within the City, and that gaming club shall be the gaming club in existence as of the date the ordinance codified in this section is adopted. (§ 3, Ord. 95-27, eff. December 13, 1995)

5.6.07 No vested right.

This chapter does not create any vested or other property right of any kind in any licensee, pointholder, employee, person or entity. The City reserves the right to, at any time, terminate, change, modify or repeal the provisions of this chapter and to otherwise regulate or prohibit any privilege exercised thereunder. This reservation includes but is not limited to the right of the City to amend, from time to time, a license issued pursuant to the terms of this chapter by resolution of the City Council. (§ 3, Ord. 95-27, eff. December 13, 1995)

5.6.08 Licenses: Required.

Except as provided for in Section 5.6.06, it shall be unlawful for any person or entity to own or operate a gaming club without first obtaining a valid, unexpired and unrevoked license issued pursuant to the provisions of this chapter, whether or not a fee or other charge is made to the players. (§ 3, Ord. 95-27, eff. December 13, 1995)

5.6.09 Operations: Rules and regulations.

(a) Number of card tables. Unless restricted to a lesser number in the license, the maximum number of tables in a card room available for use at any time shall be twenty (20). No card room shall have in operation, and no licensee or employee shall permit the card room to have in operation, more than the number of tables specified in the current and valid license issued to such licensee.

(b) Number of seating positions per card table. Unless restricted to a lesser number in the license, the maximum number of seating positions per card table available for use at any one time shall be ten (10), except during tournaments when the maximum number of seating positions shall be increased to eleven (11). No card room shall have in operation, and no licensee or employee shall permit the card room to have in operation, more than the number of seating positions per table specified in the current and valid license issued to such licensee.

(c) Hours of operation. The licensee may operate the card room twenty-four (24) hours per day, seven (7) days per week, and three hundred sixty-five (365) days per year. The actual hours of operation shall be posted in a manner sufficient to give patrons adequate notice of the hours during which the card room will remain open for business, as determined by the Chief of Police.

(d) Permissible games.

(1) The licensee may allow the play of any and all games at the card room permitted by the Gambling Control Act by first complying with the requirements of the Gambling Control Act and by providing advance written notification to the Police Chief with a right to object as follows:

(i) The licensee shall provide the Police Chief with the Bureau approval letter for any game and its rules for play at least fifteen (15) days before seeking to play that game.

(ii) The Police Chief shall have fifteen (15) days to object to allowing the licensee to play any proposed game. If no objection is made, the Police Chief shall add the new game to the list of permissible games that may be played at the card room.

(iii) The Police Chief may impose limitations on bets and wagers for any permissible game as set forth in subsection (k) of this section.

(iv) The Police Chief may impose a backline betting prohibition for any permissible game as set forth in subsection (k) of this section. “Backline betting” for purposes of this section shall mean financial participation in the game being played, but not seated and playing at one of the designated seating positions associated with game participation.

(2) The Police Chief shall maintain a list of permissible games that may be played at the card room and the rules on how each game and variation thereof is to be played.

(3) No games shall be played at any card room unless it is listed as a permissible game and approved by the Bureau of Gambling Control.

(4) The licensee shall allow the playing of permissible games only in strict conformity with the rules on file with the Police Chief.

(5) The Police Chief may, at any time, and in his/her discretion, withdraw the approval of a permissible game by considering, in addition to other factors he/she deems relevant, the following:

(i) Whether the playing of the game has led to an increase in complaints of cheating or an increase in police service;

(ii) Whether the playing of the game has created a public nuisance or disorder in the community; and

(iii) Whether the playing of the game has been detrimental to the public health, safety or welfare of the citizens of Clovis.

(6) The licensee may appeal the decision of the Police Chief to object to a game as a permissible game or to withdraw approval of a permissible game, unless such game is prohibited by the Gambling Control Act, to the City Council by filing a written notice thereof with the City within ten (10) days from the date of notice of the Police Chief’s decision. If an appeal is filed, a hearing shall be scheduled as reasonably as practical, but no later than sixty (60) days after the notice of appeal is filed, unless the licensee consents to a longer period of time or the City Council finds good cause for a longer period of time. Notice of such hearing shall be provided to the applicant either by personal delivery or certified mail, return receipt requested, addressed to the licensee at the address listed on the application, or any more recent address furnished to the City by the licensee. The notice shall specify the time, place and date of the hearing and shall be served at least ten (10) days before the date of the hearing. The hearing shall be informal in nature and the technical rules of evidence shall not apply. The decision of the Council, after hearing on appeal, shall be final.

(e) Games to be conducted in compliance with City and State laws. Each and all the games conducted or operated in the City pursuant to the provisions of this chapter shall be conducted and operated in full conformity with, and subject to, all the provisions of Federal, State and local laws.

(f) Collection of fees. Fees may only be collected for the playing of permissible games either through a time rental fee for occupancy at a card table or a predetermined fixed fee assessed of all players at a card table and collected prior to or during the playing of a hand.

(g) Age limitations. No person under the age of twenty-one (21) years of age shall be permitted to enter into a card room.

(h) Alcoholic beverages: Intoxicated persons.

(1) Alcoholic beverages may be sold, dispensed, consumed, or permitted in a licensed gaming club in accordance with applicable State and local laws and regulations and only after the gaming club obtains any applicable conditional use permit from the City.

(2) No on-duty employee of a gaming club shall consume alcoholic beverages.

(3) No complimentary or reduced price alcoholic beverages shall be offered by the gaming club on the gaming floor in violation of State law.

(4) No licensee, key management employee or other person in charge or control of any card game at a gaming club shall permit any person to play in any game permitted by the provisions of this chapter at any time while such person appears to be, or is, in the opinion of the licensee or duly authorized agent or employees, under the influence of any alcoholic beverage or controlled substance.

(5) No licensee, key management employee or other person in charge or control of any card game at a gaming club shall permit any person to enter the premises while such person appears to be, or is, in the opinion of the licensee or duly authorized agents or employees, under the influence of an alcoholic beverage or controlled substance.

(6) Any violation of this section shall be grounds for the immediate suspension and/or revocation of any license, certificate or permit issued pursuant to the provisions of this chapter.

(i) Exclusion of persons from card rooms. The licensee or key management employee shall exclude or eject from the premises any person who is known to have engaged in or been convicted of bookmaking, loan sharking, the sale of controlled substances, illegal gambling activities, or whose presence in or about such gaming club would be inimical to the interests of legal gambling or gaming.

(j) Patron complaints. A notice setting forth the procedure for making and/or filing complaints by patrons of the card room shall be made a part of the rules and included within any rule book. Such complaint procedure shall at a minimum include provisions for logging in the verbal and written complaints, and the name, address, and telephone number of the complainant.

(k) Limitations on amounts of bets and wagers; limitation on backline betting. There is no betting or wagering limit on any permissible games, and no prohibition on backline betting, unless a bet or wager limit, or backline betting prohibition, is imposed on any game by the Police Chief. The licensee may appeal the decision of the Police Chief to impose a bet or wager limit, or prohibit backline betting, on any game, unless such bet or wager limit, or backline betting prohibition, is also imposed by the Bureau of Gambling Control, to the City Council by filing a written notice thereof with the City within ten (10) days from the date of notice of the Police Chief’s decision in the same manner as set forth in subsection (d)(6) of this section.

The licensee may impose wagering limits on these games. If the licensee establishes a wagering limit, it shall be posted along with the wagering limits for other permitted games.

(l) Identification card.

(1) It shall be unlawful for any licensee or employee to be physically present at any time upon the premises of a gaming club without having prominently displayed his or her own personal identification card issued by the Police Chief pursuant to this chapter identifying such person with the gaming club. Such identification card shall designate whether the person is also a licensee or key management employee.

(2) 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.

(m) Employment of persons to stimulate play prohibited.

(1) It shall be unlawful for any licensee or employee to engage in or persuade any person to play cards for the purpose of stimulating play where such person is to receive any compensation or reward, whether financial or otherwise, present or promised; or where such reward or revenue is to be diverted to the card room licensee or owner except as allowed under subsection (m)(2) of this section.

(2) The licensee may utilize a house player. A house player must wear a work permit at all times in a conspicuous place attached to the clothing identifying the player as an employee of the licensee. Other than compensation for the time spent in acting in such activities as an employee of the licensee, no gifts, rewards or any other thing of value shall be given to the house player by the card room licensee, owner, key management employee or employee.

(n) Third-party propositional player services. Notwithstanding subsection (m) of this section, the licensee may contract with a third party for the purpose of providing proposition player services at the card room, subject to the following conditions:

(1) In no event shall a licensee or any person or entity with a financial interest in licensee have any financial interest, whether direct or indirect, in funds wagered, lost, or won by any third-party provider of proposition player services;

(2) Any third-party provider of proposition player services shall be licensed by the California Gambling Control Commission;

(3) Any agreement between the licensee and the third-party proposition player services provider shall be in writing approved in advance by the California Bureau of Gambling Control; and

(4) The licensee shall provide the Police Chief with copies of the approved contract and approval letter from the California Bureau of Gambling Control in advance of any licensed third-party provider providing proposition player services at the card room.

(o) Lending money or tokens of value prohibited. It is unlawful for any licensee or employee to engage in the lending, or permit the lending, of money, chips, tokens or anything of value, either real or promised, to any person for the purpose of allowing that person to eat, drink or engage in any game or gambling on the premises.

(p) Use of blank personal checks prohibited. It is unlawful for any licensee or employee to cash any personal check which does not state the amount on the face of the check.

(q) No money to be used as ante or bet. It is unlawful for any licensee or employee to allow or permit money to be used as ante or bet in any legal game in the gaming club. Anteing or betting shall be done by using tokens, chips, or other representatives of money.

(r) Operation of house deposit or credit system prohibited.

(1) It shall be unlawful for any licensee or employee to operate, maintain or purport to maintain any house, player or employee deposit or credit system or any system similar thereto, whereby a person may deposit, draw or maintain any account or credit of money, checks or any other item or representation of value, except as authorized pursuant to subsections (r)(2) and (3) of this section.

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

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

(4) The dollar equivalent of any such chips or other representations shall be posted in the same manner as the game rules pursuant to this chapter.

(s) Gamblers Anonymous literature. The licensee shall make literature published by Gamblers Anonymous easily available in a visible location and prominently displayed in the card room. If Gamblers Anonymous publishes literature in a language other than English and a patron requests such literature be made available in such language, the card room licensee shall be required to make such literature easily available and prominently displayed. The licensee shall also satisfy any requirements of the Gambling Control Act relating to providing assistance for gambling addictions.

(t) Inspection of premises.

(1) All gaming clubs shall be open for inspection during normal business hours to the City Manager, Police Chief, Fire Chief, Building Inspector, and Finance Director, or their duly authorized representatives, without search warrant.

(2) All card room records, including but not limited to papers, books of account, ledgers, audits, reports, personnel records, and information stored in any media system, including computers and on computer tape or disks, video tape, microfilm or microfiche, shall be available for inspection and copying during normal business hours to the City Manager, Police Chief and the Finance Director or their duly authorized representatives, without search warrant.

(u) Entry to secure areas prohibited. It shall be unlawful for any individual player or other unauthorized person to enter any secure areas within the premises or for any licensee or employee to permit any player or unauthorized person to enter any secure areas within the gaming club premises.

(v) Rules on possession of cards. It shall be unlawful for any patron or any other person not a licensee or key management employee to bring cards into a card room. It shall be unlawful for any person other than a licensee, authorized employee or a patron when playing cards to have playing cards in his or her possession while in a card room. It shall be unlawful for any person in a card room other than on-duty employees with valid work permits to have playing cards in his or her possession outside of a designated card playing area.

(w) Cooperation against unlawful practices. It shall be the responsibility of the licensee, management and their employees to fully cooperate with card game surveillance and protection personnel in the detection, apprehension and identification of those individuals involved in cheating, fraudulent practices, or other unlawful practices. Management shall retain and deliver to the Police Department as evidence in arrests or detention all playing cards and implements suspected of involvement in cheating. Management shall cooperate with card club surveillance personnel whether provided by a governmental policing agency, a City-contracted service, City-administered or licensee-assigned.

(x) Subletting to persons without licenses prohibited. No licensee, owner or employee shall permit the farming out, assigning, leasing, renting, or subletting of any games or card tables on premises lawfully permitted pursuant to the provisions of this chapter.

(y) Physical arrangements.

(1) All applicable license and site plan conditions for the gaming club shall be complied with at all times.

(2) In addition, whether or not specified in the license and site plan conditions, the following shall apply:

(i) No establishment licensed as a gaming club shall operate or maintain in use more than the maximum number of tables allowed by the license;

(ii) Games shall be located and conducted on what is commonly known as the street floor of the gaming club premises as approved in the license;

(iii) Games shall be located in one or more rooms and so arranged that the gaming tables in a room and the players at the tables shall be visible from the main doorway into such room. No wall, partition, screen, or similar structure between any main doorway into such a room and any gaming table shall be permitted if it interferes with such visibility;

(iv) The licensee shall not conduct any bingo game on the gaming club premises. The licensee may, however, allow other persons or entities to conduct bingo games within meeting or assembly rooms of the gaming club premises; provided, that such persons or entities comply with the provisions of Chapter 15 of Title 5;

(v) The card room portion of the gaming club shall be separated from other activities on the premises;

(vi) The public entities (and the officers and employees thereof) which are charged with the responsibility of law enforcement and which have jurisdiction within the City shall have full and complete access to any and all parts of the gaming club premises during all hours of operation;

(vii) The licensee shall at all times have on-site uniformed security as required in this chapter, as approved in the license and any approved site-plan conditions, and as set forth on an approved security plan; and

(viii) The licensee shall at all times have parking as approved in the license and any approved site-plan conditions.

(z) Display of licenses, certificates and permits. No licensee or employee shall fail, neglect or refuse to exhibit their licenses, certificates or work permits on demand of any law enforcement officer, or of any City employee involved in the oversight of gaming club activities, or in the case of a work permittee, fail, neglect or refuse to wear such permit as identification in a conspicuous place attached to his/her clothing while performing his/her duties for the licensee, if so required.

(aa) Game rules: Posting requirements.

(1) There shall be displayed in a conspicuous place on the gaming club premises the following:

(i) The rules describing how each game conducted on the premises is to be played;

(ii) The minimum buy in, time charge, or other fee charged players for the use of the tables;

(iii) A copy of the current valid license and the licensee’s current gaming license issued under the Gambling Control Act.

(2) The items required to be displayed by this subsection shall at all times be of readable print and contained in a brochure or booklet form made available, and readily accessible, to all patrons.

(3) The rules which are displayed and made available to the public shall be identical to the rules provided to the Police Chief pursuant to the requirements of this chapter. Printed copies of the rules and regulations shall also be readily available to the public.

(bb) Annual declaration by licensee. Not later than July 1st of each calendar year, the licensee, and if there is more than one person named on the license, all persons so named, shall execute under penalty of perjury and file with the City a declaration stating the following:

(1) A list of the minimum buy-in, time charged, or other fee charged players for the use of the tables;

(2) A set of the then current posted detailed house rules applicable to the games played;

(3) That all license fees have been paid; and

(4) The following statement:

I, __________, hereby declare under penalty of perjury that the foregoing is true and correct. Executed this _______ day of ______, 20__ in Clovis, California.

LICENSEE

___________

The declaration shall be accompanied by a complete copy of all license and license applications (and exhibits) filed by the licensee and all persons having a financial interest in the licensee under the Gambling Control Act.

(cc) Responsible persons.

(1) The operation of the gaming club shall be the responsibility of the licensee personally if the licensee is a person and the individual shareholders, directors, officers, managers, partners and members, as applicable, if the licensee is an entity. The operation of the gaming club shall also be the personal responsibility of any and all key management employees of the licensee that are present during gaming club operations.

(2) Either the licensee if a person, or a key management employee of the licensee shall be present on the gaming club premises at all times during the conduct of its legal gambling or gaming operations.

(dd) Cheating.

(1) It shall be unlawful for any person as a player or dealer to deal, draw, distribute, or burn any playing card other than the top card of a deck. The “top card” is defined as the uppermost face-down card of the face-down deck.

(2) It shall be unlawful for any person as a player, dealer, employee, or agent to shuffle or cause to be shuffled any playing cards which are to be used or are being used in a gaming club card game, other than in a random manner. It shall be unlawful to predetermine, or prearrange the sequence of playing cards by value or suit, or to retain or hold back a card or cards either individually, or as a group or slug, in an effort to circumvent a random mixing of the playing cards.

(3) It shall be unlawful for any player or dealer to palm, hold out, or conceal any card during a card game, whether by sleight of hand, mechanical apparatus, or by clothing. It shall also be unlawful for any person, player, or dealer to switch, exchange, or cause to be exchanged any playing card, or cards, as a means of deception.

(4) It shall be unlawful for any person to use any technique in a card game designed to nullify a cut once performed by a player, or to influence or indicate to another person to cut the deck at a specific location.

(5) It shall be unlawful for any person, player, or dealer to deliberately mark or alter any card or cards when there is a likelihood that such cards will be used in gaming club card games or when such cards are in play. It shall be unlawful to knowingly use any altered or marked cards in a card game.

(6) The use of any mechanical or electrical apparatus or other device so as to gain any advantage or to gain information which would enable a player or dealer to deceive others shall be prohibited.

(7) It shall be unlawful for any person to knowingly aid or abet another in any cheating action.

(8) It shall be unlawful for any person to use any cheating techniques, whether or not such techniques are successful. The licensee or management shall immediately notify the Clovis Police Department upon the detection of any person suspected of cheating.

(9) It shall be the responsibility of the licensee, management, and their employees to fully cooperate with all law enforcement personnel in the detection, apprehension, and/or identification of those persons involved in cheating or fraudulent accounting practices. The management shall retain and deliver to the appropriate law enforcement agency, as evidence, all playing cards and implements suspected of involvement in cheating.

(10) The licensee shall cause this section to be reproduced and displayed along with the game rules, which shall be of readable print and contained in a brochure or booklet form made available, and readily accessible, to all patrons. This section shall also be made available in written form in any language besides English as may be required by the Gambling Control Act or other applicable law.

(11) Notwithstanding other provisions of law, any person committing an unlawful act as set forth in this section shall be guilty of a misdemeanor punishable by imprisonment not to exceed six (6) months and/or by a fine not to exceed one thousand and no/100ths dollars ($1,000.00).

(ee) Surveillance system.

(1) Closed circuit cameras shall be placed at all entrances and exits to the card room portion of the gaming club as well as over each table and at each cashier’s booth.

(2) The surveillance system shall monitor and record a general overview of activities occurring in each targeted area with sufficient clarity to identify individuals so that future identification is very likely. The image of the person in the targeted area shall take up at least one-seventh (1/7) of the picture.

(3) The digital surveillance equipment used to satisfy the surveillance standards in this section shall:

(i) Record and play back video at a minimum of fifteen (15) frames per second (FPS), full screen (four (4) common intermediate format CIF), in real time.

(ii) Cameras shall be color unless a noncolor camera (example: black/white with infrared light) would produce better image quality in a given situation.

(iii) All camera positions shall be recorded at all times the card room is open.

(iv) Have adequate storage capacity to maintain for a period of not less than fourteen (14) days, all images obtained from the video cameras.

(v) Have a failure notification system that provides audible and/or visual notification of any failure in the surveillance system or the digital video recording (DVR) media storage system. Alternatively, daily verification of the effective operation of surveillance system and DVR media storage system components is acceptable.

(vi) Have a media storage system that is configured so that a failure of any single component will result in no loss of data from the media storage system.

(4) All digital video disks or other storage media produced from the DVR system shall contain the data with the time and date it was recorded superimposed, the media player and the software necessary to view the DVR images.

(5) In the event of a failure of a DVR storage media system (total system failure), the gaming operation should strive to repair or replace the equipment within eight (8) hours of the failure.

(6) All DVR equipment must be located in a secure area and the licensee and key management employee shall be ultimately responsible for its proper operation.

(7) A log shall be kept upon the premises of the card room at all times documenting the time and date that the recording equipment is started and stopped each day. Such log shall also include notations indicating any periods of time that the recording was not in operation under the required conditions, an explanation as to why there was an interruption in recording, and the name of the employee making the entry.

(8) All such recordings shall also be made available to the Police Chief, or his/her representative, upon demand at any time the card room is open for business, and upon reasonable notice at all other times.

(ff) Security guards.

(1) At least one uniformed security guard shall be on duty and posted at each main public card room entrance during the hours the card room is open for business. Secondary entrances from other businesses within the card room, for example, dedicated bars and restaurants, are not considered main entrances.

(2) Additional security guards shall be provided as required in the license, any approved site-plan conditions, the security plan, or as otherwise required by the Police Chief to ensure the safety and security of patrons.

(3) Security guards shall be required to hold a California Security Card and be required to attend the Clovis Police Department MOAB (Management of Aggressive Behavior) training within ninety (90) days of employment.

(4) A security plan detailing the number of guards and duties of the guards shall be prepared and submitted to the Police Chief for review, approval, and modification to ensure the safety and security of patrons. The Police Chief may at any time direct that an approved security plan be modified to ensure the safety and security of patrons.

(5) A log shall be kept at the business detailing the security guard deployment as follows: The log shall indicate the date and time the guard comes on duty, the assignment of the guard, the guard’s printed name, his or her signature, and the time the guard ends his or her shift. This log will be supplied by the Clovis Police Department and will be the property of the Clovis Police Department to be available for inspection during regular business hours. Maintenance of the log will be the responsibility of the licensee. Absence of an entry during a period which a guard is required will constitute a violation of this condition. (§ 3, Ord. 95-27, eff. December 13, 1995; as amended by § 2, Ord. 99-10, eff. June 2, 1999; as amended by § 2, Ord. 08-01, eff. February 13, 2008; § 1, Ord. 11-11, eff. November 2, 2011; § 1, Ord. 19-09, eff. August 14, 2019)

5.6.10 Location.

(a) No gaming club may be operated on property or within premises other than those approved during the licensing process. In determining whether to approve a license for a particular location, the City Council shall consider, in addition to applicable zoning restrictions, the proximity to existing schools, parks, hospitals, religious institutions, and other sensitive uses. Any attempt to change the location of any gaming club shall result in the immediate revocation of the license unless such change in location is approved by the City Council.

(b) If the licensee desires to change the location of the gaming club, the licensee shall apply for such a change to the City. A fee, as established by resolution of the City Council, shall accompany the application. The licensee, concurrently with the application, shall submit, if applicable, a site plan application and conditional use permit application.

(c) The Council may, in its discretion, deny the change in location, conditionally deny the change in location, or approve the new location. If the Council approves the new location, the Council may require that additional conditions attach to the license, or modify existing conditions of the license, as it deems appropriate for the new location.

(d) The licensee shall not operate at the new location until any applicable site plans and conditional use permits have been approved.

(e) If the licensee will lease the building or land for the card room, the licensee shall provide to the City a copy of the lease agreement with the license application; provided, however, the specific financial terms of the lease may be redacted from the copy by the licensee. (§ 3, Ord. 95-27, eff. December 13, 1995; as amended by § 3, Ord. 99-10, eff. June 2, 1999; § 1, Ord. 11-11, eff. November 2, 2011)

5.6.11 Licenses: Application process.

(a) All persons who hold a valid, unexpired, and unrevoked card room license may file an application with the City for an expanded gaming club license pursuant to this chapter using such forms as are provided by the City. Each application shall contain and each applicant shall execute a statement as follows: “The undersigned applicant(s) declares under penalty of perjury that the foregoing is true and correct.”

(b) The gaming club license, if granted, may be issued in the name of the existing licensees or any entity owned by the licensees, and, the license applicant shall require that, concurrent with the granting of the gaming club license, each key management employee of the license applicant and, if the license applicant is an entity, all shareholder(s), director(s), officer(s), partner(s), member(s), or manager(s) of such entity, be issued registration certificates allowing such individuals to be involved in the activities, profits and direction of the gaming club operation (such individuals to be referred to as key management/owner registration certificate applicants). City officials, City employees, and relatives of Council Members, department directors and management and confidential employees shall not be eligible to apply for registration certificates or any form of employee license or permit. For purposes of this section “relatives” means any person who is related within the third degree to City Council Members, department directors, and management and confidential employees of the City by blood or marriage, and includes a spouse, child, stepchild, parent, grandparent, grandchild, mother, sister, half-brother, half-sister, aunt, uncle, niece, nephew, parent-in-law, brother-in-law, and sister-in-law or another individual living in the same household.

(c) In addition to other information as may be required by said application forms for a gaming club license, the applicants shall complete and provide the following information in as great detail as is available or as the City may require:

(1) The date of the application;

(2) The true name of the applicants, including all key management/owner registration certificate applicants;

(3) The status of the license applicants’ existing card room license (a copy of the existing license shall be provided with the application);

(4) A statement describing whether the license applicants and the key management/owner registration certificate applicants have any financial or other interest in a business organization, whether within or outside California, which is engaged in any form of gambling or gaming;

(5) An application for a key management/owner registration certificate, including a personal history record, for each individual who is or is proposed to be a key management employee of the gaming club or a shareholder(s), director(s), officer(s), partner(s), member(s), or manager(s) of an entity license applicant;

(6) Name of proposed gaming club;

(7) A description of any other business conducted or proposed to be conducted on the premises;

(8) A description of the premises to be used in relation to card room activity including but not limited to card playing area, restaurants and any other proposed business or facility on the premises;

(9) Detailed plans of the parking facilities including a lighting and security plan;

(10) A development concept including detailed floor plans, site plan, schematics and renderings;

(11) A statement of the games proposed to be played including any specific rules thereto;

(12) The number of card tables to be placed, employed or used;

(13) A detailed statement and description of all plans, both physical and operational, for the handling of money, including but not limited to provisions, if applicable for the following:

(i) Purchase of chips and protection against counterfeit chips;

(ii) Check-cashing or ATM card-cashing procedure;

(iii) Procedures for bringing money to or removing money from the premises;

(iv) Procedures for determining and depositing daily gross receipts;

(14) A financial plan and source of funding for the development including projected development costs;

(15) A statement of the applicant’s experience in the operation and management of card rooms and/or other lawful gambling and/or other related activities;

(16) A three (3) year cash flow projection, which shall be a confidential document and not open to public inspection or disclosure;

(17) A statement that such premises will conform to all the laws of the State and the City for occupancies of the nature proposed;

(18) A complete description and layout of all security measures, both physical and operational, proposed in as great a detail as available;

(19) An evaluation of the internal accounting and administrative control system proposed to be used by the applicant, performed by a certified public accountant;

(20) Evidence of compliance with any prerequisites for compliance with the Gambling Control Act including but not limited to valid registrations, licenses, permits, and approvals from the Bureau of Gambling Control or Gambling Control Commission, whichever is applicable.

(d) All information provided regarding security measures, internal controls, or provisions relating to the handling of cash, chips, and cards shall be deemed confidential and shall not be available for public inspection unless required by law.

(e) If the City determines that a landlord whose lease rental payments are based upon a percentage of the revenues or profits of the gaming club or financier, by reason of the extent of his holdings or his/her inherent financial control, cannot, in fact, be separated from the card room, and that, as a practical matter, a single entity exists regardless of the apparent form of the organization, the City shall designate all such individuals as pointholders which will cause the license to automatically terminate.

(f) Each application for a gaming club license and a key management/owner registration certificate shall include the following:

(1) A statement that the applicant understands that the application shall be considered only after a full background investigation and report has been made by such members of City staff as are designated by the City;

(2) A statement that the applicant understands and agrees that any business or activity conducted or operated under any license or certificate issued under such application shall be operated in full conformity with all the laws of the State and the laws and regulations of the City applicable thereto, and that any violation of any such laws or regulations in such place of business, or in connection therewith, may render any license or certificate subject to immediate suspension or revocation;

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

(4) A complete statement of financial position for each applicant. The financial statements required by this subsection shall be confidential documents and shall not be open to public inspection. Documents shall be available only to those officers and employees of the City having direct jurisdiction involving the provisions of this chapter and to any court of competent jurisdiction where any matter relating thereto may be actually pending.

(g) Concurrently with the filing of their applications, the card room license applicant, and key management employees, shall be fingerprinted and photographed by the Clovis Police Department. Applicants shall authorize the City to obtain any available criminal offender record information relating to the applicant and shall further authorize the updating of that information on an annual basis if a license or certificate is granted. (§ 3, Ord. 95-27, eff. December 13, 1995, as amended by § 4, Ord. 99-10, eff. June 2, 1999; § 1, Ord. 11-11, eff. November 2, 2011)

5.6.12 Key management/owner application for registration certificate.

(a) As set forth in Section 5.6.11, the applications for all key management employee registration certificates shall be submitted as part of the application for a gaming club license.

(b) Each applicant shall be responsible for providing complete and accurate information and for signing the certificate application. However, it shall be the responsibility of the gaming club license applicant (or licensee for subsequent applications) to submit the completed applications and pay any application fees.

(c) Failure to submit complete applications for each proposed key management employee may be grounds for denial or revocation of a card room license.

(d) If the licensee proposes to hire a new key management employee after the license has been approved, the licensee shall submit a supplemental application for the new key management employee, which shall include a personal history record for each individual who is proposed to be added as a key management employee of the card room.

(e) No person shall be a key management employee unless a valid registration certificate has been issued pursuant to this section.

(f) Registration certificates issued to key management employees shall be subsumed under, and be a part of, the gaming club license. (§ 3, Ord. 95-27, eff. December 13, 1995; § 1, Ord. 11-11, eff. November 2, 2011)

5.6.13 Licenses: Conditions.

(a) All licenses granted by the City Council shall be deemed conditioned so as to require compliance with all of the terms, conditions and provisions of this chapter as well as all applicable laws of the City, State and Federal governments. By applying for a license, the applicant agrees to the condition in the license granted that the licensee shall indemnify, defend and hold harmless the City, its officers and employees, from any and all claims and actions brought against the City, its officers or employees, concerning the validity of such license. In addition to the above, the City Council may impose specific conditions upon the license which, in its discretion, it deems necessary to ensure compliance with the provisions of this chapter, as well as other applicable laws of the City, state and federal government.

(b) A violation of any condition of any license is hereby deemed to be a violation of the provisions of this chapter and is deemed sufficient grounds for license revocation or suspension, imposition of fines or other action determined appropriate by the City Council. All terms and conditions specified in any license shall be enforceable as if set forth in this chapter. (§ 3, Ord. 95-27, eff. December 13, 1995)

5.6.14 Licenses: Restrictions.

Upon expiration or termination of the license for the existing gaming club in the City, no gaming club shall be permitted in the City. (§ 3, Ord. 95-27, eff. December 13, 1995)

5.6.15 Pointholders prohibited.

A licensee shall not be allowed to have any pointholders. Should a license be granted to a natural person or entity and said licensee(s) subsequently obtain a pointholder, the license shall automatically terminate. A licensee who is not a natural person may have owners in the form of shareholders, members, or partners but no pointholders. (§ 3, Ord. 95-27, eff. December 13, 1995; § 1, Ord. 11-11, eff. November 2, 2011)

5.6.16 Issuance or denial of license and registration certificates.

(a) Decision of the Council. The City Council, in its discretion, shall either approve, conditionally approve, or deny an application for a license or registration certificate which has been accepted and processed in accordance with Section 5.6.11.

(b) Decision of the Council is final. The decision of the City Council to approve, conditionally approve or deny any application shall be final and conclusive.

(c) Grounds for denial. The City Council, in its discretion, may deny any application for any reason it deems sufficient. Further, each of the following facts shall be considered on an independent basis for denial of an application:

(1) If the applicant or any proposed key management employee of the gaming club fails to obtain and maintain a valid license with the California Gambling Control Commission as required by the Gambling Control Act;

(2) If the applicant or any proposed key management employee of the gaming club is under the age of twenty-one (21);

(3) If the applicant or any proposed key management employee of the gaming club makes a false or misleading statement required to be revealed in any application submitted pursuant to the provisions of this chapter;

(4) If the applicant or any proposed key management employee of the gaming club has been convicted of a crime punishable as a felony, irrespective of whether the offense is initially charged as a felony, or if the offense is charged as a felony but subsequently reduced to a misdemeanor;

(5) If the applicant or any proposed key management employee has been convicted of an offense involving dishonesty or moral turpitude, or the Police Chief determines, based upon credible evidence, that the applicant or any proposed key management employee of the gaming club has engaged in conduct constituting such offense. If the conviction or conduct occurred more than ten (10) years preceding the submission of the application, this ground shall not be the sole basis for denial of the license or registration certificate. The ten (10) year limitation shall not apply to conduct relating to the acquisition of an ownership interest in a gaming club or the real property or premises in which a gaming club is situated or relating to the operation of a gaming club;

(6) If the applicant or any proposed key management employee of the gaming club has engaged in bookmaking, loan sharking or illegal gambling or has been convicted of an offense involving such activities;

(7) If the applicant or any proposed key management employee of the gaming club has been convicted of an offense involving the possession, use, or sale of an illegal controlled substance or the Police Chief determines, based upon credible evidence, that the applicant or any proposed key management employee of the gaming club has engaged in conduct constituting such offense. If the conviction or conduct occurred more than ten (10) years preceding the submission of the application, this ground shall not be the sole basis for denial of the license or registration certificate;

(8) If the proposed business or activity is or will be operated in violation of any Federal, State or municipal law or regulation;

(9) If the applicant does not have the financial capability or business experience to operate a gaming club in a manner which would adequately protect the patrons of the gaming club and the citizens of the community;

(10) If the establishment of a gaming club on the proposed premises would violate the zoning, fire, building or other regulations of the City or other applicable law or regulations; or

(11) If the applicant or any proposed key management employee of the gaming club has any financial or other interest in any business or organization outside the State of California which is engaged in any form of gambling or gaming. (§ 3, Ord. 95-27, eff. December 13, 1995; § 1, Ord. 11-11, eff. November 2, 2011)

5.6.17 Licenses: Fees and deposit.

(a) Filing and processing fee. Within three (3) business days of receipt of notice from the City that an applicant has been selected for investigation, such applicant must post with the City a nonrefundable deposit in an amount established by resolution of the City Council for the filing and processing fees. The deposit shall not be less than ten thousand and no/100ths dollars ($10,000.00) and shall be used for the City’s costs of investigating the applicant and its proposed key management employees, as well as its costs of processing the application, whether or not a license is granted. If the actual costs exceed the amount of the initial deposit, the applicant will be required to provide additional deposit(s) in increments of ten thousand and no/100ths dollars ($10,000.00).

(b) License fees. Each licensee shall pay to the City license fees set by resolution of the City Council. The City Council may change the license fees at any time. At a minimum, the City Council shall reevaluate the license fees prior to any proposed sale of the license or change in ownership of the gaming club.

(1) Upon notice that an applicant has been approved for the issuance of a license, such applicant shall deposit with the City, prior to the issuance of the license, the sum of twenty-five thousand and no/100ths dollars ($25,000.00) as a security deposit. The City’s Finance Director may at any time, in his or her discretion, increase this deposit up to fifty thousand and no/100ths dollars ($50,000.00). The City shall also reevaluate the deposit requirements prior to any proposed sale of the license or change in ownership of the gaming club.

(2) The City shall place the security deposit in interest bearing accounts in financial institutions selected by the Finance Director. On or before July 31st of each year, the Finance Director shall report all interest earned on the security deposit during the preceding fiscal year to both the City Council and the licensee.

(3) Any and all interest earned on the security deposit shall accrue to and become part of the deposit.

(4) If, at any time, the licensee fails to timely pay any license fee, the City will draw from the security deposit account in the amount of the fees due and owing. All such draws shall be deemed to be from principal. The City will notify the licensee within five (5) business days that it has drawn from the security deposit. The licensee shall replenish the security deposit within two (2) business days of receipt of this notice so as to bring the minimum balance thereof to the level required pursuant to this chapter. A failure to replenish the security deposit account within the time permitted herein shall be sufficient grounds for suspension or revocation of the license.

(d) Monthly statement of revenue. Each licensee shall file with the Finance Director before the fifteenth (15th) day following the end of each month a statement, under oath, showing the true and correct amount of gross revenue derived from the card game business permitted by the license issued to or held by such licensee for the preceding month. Such statement shall be accompanied by the payment of the correct amount of license fee due and owing in accordance with the provisions of this section, and such sums correctly reflecting the monthly fees payable for the preceding month shall be accepted by the City, subject, however, in accordance with Section 5.6.33(g), to the right of the City to audit the matters reported in the statements to determine the accuracy of the figures contained therein and whether or not the correct amount payable to the City has been paid. Such statement shall be submitted in a format reasonably acceptable to the Finance Director.

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

I hereby declare under penalty of perjury that the foregoing is true and correct.

_________________

Licensee

(e) Annual statement of revenue. On or before August 31st of each year, the licensee shall provide the City with a statement of revenue for the period from July 1st of the previous year through June 30th of the then current year. In accordance with Section 5.6.33(g), this statement shall be audited by a certified public accountant who will provide an opinion as to the accuracy and correctness of the statement provided.

In the event that the amount of gross revenue reported in the licensee’s annual statement is more than the total gross revenue reported in the monthly statements previously received by the City, the gross revenue fee shall be applied to the difference, and shall accompany the annual statement. In addition to the gross revenue license fee, if the difference exceeds one percent of the annual gross revenues, a penalty of twenty-five percent (25%) of the additional fee due shall also be due and payable upon submission of the annual statement of gross revenues. (§ 3, Ord. 95-27, eff. December 13, 1995; § 1, Ord. 11-11, eff. November 2, 2011)

5.6.18 Licenses: Expiration and renewal: Updating of information.

Subject to Sections 5.6.07 and 5.6.22, the license issued pursuant to this chapter shall automatically renew on an annual basis beginning on the first day of January following the issuance of the license. The licensee shall, however, maintain an active business license with the City. In addition, the licensee shall update any information submitted with the license application or as part of key management employee application within seven (7) calendar days after they occur. (§ 3, Ord. 95-27, eff. December 13, 1995; § 1, Ord. 11-11, eff. November 2, 2011)

5.6.19 Business license required.

Nothing in this chapter shall be deemed to exempt the holder of a gaming club license pursuant to this chapter from obtaining a business license from the City. (§ 3, Ord. 95-27, eff. December 13, 1995)

5.6.20 Name change.

(a) The licensee shall apply for and register any proposed change in the name of the licensed card room with the City at least thirty (30) days before the licensee desires to advertise or otherwise make known to the public the new name.

(b) A fee for a name change, as set forth by resolution of the City Council, shall accompany the application for the proposed name. The City shall issue a new license under the new name provided:

(1) The new name does not materially alter the terms and conditions of the license;

(2) The change of name complies with the provisions of this chapter, and all State, Federal, and local rules and regulations. (§ 3, Ord. 95-27, eff. December 13, 1995)

5.6.21 Transfer or assignment of licenses and/or financial interest in premises; Approval and notification requirements.

(a) The license issued pursuant to this chapter may not be assigned or transferred, in whole or in part, for any reason, except as provided in this chapter.

(b) All proposed transfers or assignments of a financial interest in the real property and/or the premises in which the gaming club operates shall be submitted to the City prior to such transfer or assignment. The licensee (even if the licensee is not the owner of such real property or premises) shall be responsible for providing that information to the City and shall describe the proposed transfer or assignment, the parties to such transfer or assignment, the reasons for the transfer or assignment and the consideration therefor. (§ 3, Ord. 95-27, eff. December 13, 1995)

5.6.22 Licenses: Suspension and revocation.

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

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

(2) The licensee has violated any term or conditions upon which such license was issued;

(3) The licensee or key management employee has violated any statute or ordinance, which violation related to the establishment, maintenance or operation of the gaming club authorized by such license;

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

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

(6) The operation of the gaming club violates the city’s zoning, fire, building or other ordinances or regulations, or other applicable local, State, or Federal laws or regulations; or

(7) The operation of the gaming club substantially aggravates the crime problems in the area, makes law enforcement unduly difficult, or is otherwise detrimental to crime prevention or to the public peace, health, safety or welfare in the area.

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

(1) Any criminal convictions of the licensee or key management employees involving lotteries, gambling, bookmaking, larceny, perjury, bribery, extortion, fraud, theft, embezzlement, or crimes involving moral turpitude, or convictions for the possession, sale or under the influence of a controlled substance, prostitution, pimping, or pandering, or convictions of any crime substantially related to service or entertainment business;

(2) The opinion of the Police Chief, based upon credible evidence, that a licensee or key management employee has engaged in criminal activity as defined in subsection (b)(1) of this section, whether or not there is a conviction;

(3) Any criminal convictions of employees for activities occurring at the card room involving lotteries, gambling, bookmaking, larceny, bribery, extortion, fraud, theft, embezzlement, or crimes involving moral turpitude, or convictions for the possession, sale or under the influence of a controlled substance, prostitution, pimping, or pandering, and for which the licensee or any key management employee: (i) allowed such conduct to occur; or (ii) failed to exercise adequate supervision and control to prevent such conduct from occurring;

(4) The commission of any act by the card room licensee or key management employee involving dishonesty, fraud or deceit with the intent to substantially benefit himself or herself or another, or substantially injure another;

(5) Whether the licensee, key management employees, or employees have previously operated in this or another state under a gambling, gaming or similar license or license that has been revoked or suspended, the reasons therefor, and the actions of such person thereafter;

(6) Whether the licensee, key management employees, or employees in this or another state have been denied a gambling, gaming or similar license or license, the reasons therefor, and the actions of the person thereafter;

(7) The business and credit history of the gaming club licensee and owners;

(8) The nature of the conduct involved in the violations;

(9) The duration of the conduct giving rise to the violations;

(10) The number of instances of violations involved, and whether or not the violations are part of a pattern of violations;

(11) Whether the violations were deliberate or inadvertent;

(12) The degree, financial or physical, of injury to any victim which was proximately caused by the violation;

(13) The motivation of the person(s) who committed the violations;

(14) Restitution provided to any victim; and

(15) Restitution provided to the City for the costs of enforcement or prosecution of any violations or injuries.

(c) In addition to the power of the City to revoke the license, the City Council may, in its discretion, suspend a license for a period of not more than sixty (60) days where any of the conditions set forth in subsection (a) of this section exists.

(d) The City Council, in its discretion, or in response to a complaint, may initiate an investigation of the gaming club, the licensee, or key management employee. Subpoenas may be issued for the appearance of witnesses and the production of documents and other evidence relevant to such investigation. If a licensee or key management employee of the licensee does not respond to a subpoena served upon and directed to such person for a personal appearance or the production of documents, prima facie grounds shall exist for the suspension or revocation of the gaming club license. The results of the investigation shall be considered by the City Council to determine whether suspension or revocation of the license is warranted.

(e) Upon a determination that conditions exist which justify the suspension or revocation of a license, the Police Chief or City Manager, in their discretion, may either:

(1) Immediately suspend the license by providing written notice to the licensee of such suspension either by personal delivery or by certified mail, return receipt requested, addressed to the licensee at the address listed in the license application, or any more recent address furnished to the City by the licensee. The written notice shall specify the action taken, the reason therefor and the time and date of a hearing on such matter. The hearing on this matter shall not occur earlier than three (3) nor later than ten (10) business days of the notice of suspension. The hearing shall be informal in nature, allowing first the City and then the licensee to present their versions of the facts. The hearing shall be heard before the City Council or its designee (the “Hearing Officer”) who shall have the authority to lift the suspension, or to continue the suspension for a period not to exceed sixty (60) days. Such decision shall be final and conclusive; or

(2) Provide the licensee with written notice of the determination that conditions exist which justify the revocation of the license either by personal delivery or by certified mail, return receipt requested, addressed to the licensee at the address listed in the license application, or any more recent address furnished to the City by the licensee. The written notice shall indicate the reasons for such determination and shall specify the time and date at which the City Council will receive evidence and consider taking action on such matter, which time and date shall be at least ten (10) days after the notification. Such revocation hearing shall be pursuant to the procedures provided in subsection (f) of this section.

(f) The decision to revoke a license may be made only by the City Council. Such decision will be made after providing the licensee with a full and fair public hearing, noticed in accordance with the provisions of subsection (e)(2) of this section. The decision to revoke the license is discretionary in the City Council and its decision shall be final and conclusive.

(g) Within ninety (90) days of the license revocation, the City may conduct, at the licensee’s expense, a full and complete audit of the books, records and documents of the gaming club. After such audit has been performed, the City may return to the licensee the security deposit less the cost of the audit and less any license fees owed or the City Council may rule that the acts which justify license revocation also constitute a forfeiture of the security deposit. In such case, no portion of the security deposit shall be returned to the licensee.

(h) If the security deposit is insufficient to cover any license fees owed at the time of revocation, the security deposit shall become the property of the City and the licensee shall remain liable for the payment of any deficiency and shall be responsible for reimbursing the City for any and all costs, including attorney’s fees, incurred to recover such sums. (§ 3, Ord. 95-27, eff. December 13, 1995; § 1, Ord. 11-11, eff. November 2, 2011)

5.6.23 Fines and penalties.

The City Council, in its discretion, may, in addition to or in lieu of a suspension or revocation of a license, levy a fine or penalty against the licensee upon a determination that grounds exist which would justify the denial of an application for a license. Fines and penalties may also be levied against such licensee if the licensee, key management employee, or employee of the licensee has committed any act as set forth in Section 5.6.22 which justifies suspension or revocation of a license. (§ 3, Ord. 95-27, eff. December 13, 1995)

5.6.24 Licenses: Abandonment.

(a) A license shall be deemed to be abandoned and null and void where the gaming club has failed to conduct legal gambling or gaming for a period of thirty (30) continuous days, regardless of the reasons therefor, unless such failure is the result of a suspension of the license; provided, however, the licensee may, during the thirty (30) day period, request the City Council to extend the time up to an additional sixty (60) days.

(b) If the City Council determines that a gaming club license has been abandoned pursuant to this section, it shall provide written notice the licensee of such fact either by personal delivery or by certified mail, return receipt requested, addressed to the licensee at the address listed in the license application, or any more recent address furnished to the City by the licensee. The notice shall state that the City Council has determined that the license has been abandoned and is null and void; and the reasons for such determination. The notice shall also provide that the licensee may, within five (5) business days of the notice, pay an appeals fee as established by resolution of the City Council, and file with the City Manager a written notice of appeal. The appeal shall be conducted in accordance with Section 5.6.22(f) above. Failure to file a written notice of appeal within five (5) business days of the notice shall render the termination of the license final and conclusive. (§ 3, Ord. 95-27, eff. December 13, 1995)

5.6.25 Transfer of interest in gaming club: Permission required.

(a) It is unlawful for any licensee to sell, transfer or assign its interest (or any portion thereof) in the license, whether or not such transfer or assignment is for value, except as provided by this chapter. Any sale, transfer or assignment of any interest in a license in violation of the provisions of this chapter shall automatically terminate the license.

(b) A licensee may sell, transfer or assign its interest (or any portion thereof) in the license to another person or entity only with the prior approval of the City Council pursuant to all of the procedures and requirements of this chapter and in compliance with all provisions of the Gambling Control Act.

(c) Licensees desiring to sell, transfer or assign their interest (or any portion thereof) in the license in accordance with subsection (b) of this section shall file with the City Council a written application for permission to transfer such interest on a form provided by the City. Each application shall set forth the following information:

(1) A description of the interest sought to be sold, transferred or assigned together with a statement of whether such sale, transfer or assignment completely divests the applicant of any and all interest in the license;

(2) The consideration for such sale, transfer or assignment;

(3) A complete copy of all applications and documents (and exhibits) filed by the proposed transferee, with the California Gambling Control Commission and all information provided to the California Bureau of Gambling Control by the proposed transferee, all of which shall be declared by the proposed transferee under penalty of perjury to be a true and complete copy thereof;

(4) A certificate executed by the proposed transferee authorizing and directing the California Gambling Control Commission and the California Bureau of Gambling Control to release any and all information learned during their investigation of the proposed transferee to the City and authorizing and directing the California Gambling Control Commission and the California Bureau of Gambling Control, its staff and investigators to discuss with the City any and all information learned during the registration process;

(5) A full financial statement of the proposed transferee; and

(6) Such other information as the City Council may deem necessary and appropriate.

(d) Each applicant must post with the City a nonrefundable deposit in an amount established by resolution of the City Council for the filing and processing fees. Such deposit shall be made at the time the application is filed. The City shall use the deposit for its costs of investigation of the proposed transferee, as well as its costs of processing the application, whether or not approval is granted.

(e) The City shall investigate the proposed transferee and bring the matter before the City Council for consideration after the investigation is completed.

(f) The City Council, in its discretion, may deny any transfer application for any reason it deems sufficient. However, the City Council shall deny a transfer application if any of the following facts exist:

(1) If the proposed transferee is denied a license by the California Gambling Control Commission, unless the transfer application is approved conditioned upon issuance of a valid license by the California Gambling Control Commission;

(2) If the proposed transferee has committed any act which would constitute grounds for denial of a license as set forth in Section 5.6.16(c);

(3) If the proposed transferee has committed any act which would constitute grounds for suspension or revocation of a license as set forth in Section 5.6.22(a).

(g) Upon approval of a transfer application, the City Council, in its discretion, may impose upon the transferee new license conditions.

(h) If a transfer application is approved, no portion of the security deposit shall be returned to the transferor unless and until the transferee replaces such amounts with its own funds.

(i) The decision of the City Council to approve or deny any transfer application shall be final and conclusive.

(j) Transfer fee. Upon the granting of a transfer application, a transfer fee as established by resolution of the City Council shall be paid to the City. (§ 3, Ord. 95-27, eff. December 13, 1995; § 1, Ord. 11-11, eff. November 2, 2011)

5.6.26 Death of a licensee.

Upon the death of a licensee, the licensee’s estate may, in accordance with Section 5.6.25, offer to sell, transfer or assign such interest to any person with the prior approval of the City Council pursuant to the requirements set forth in Section 5.6.16(c); provided, however, the prior approval of the City Council is not required for the sale, transfer, or assignment of the decedent licensee’s interest in the license to any surviving licensee but the licensee’s estate must notify the City within thirty (30) days of such transfer what interest was transferred, the name of the licensee acquiring such interest and the consideration therefor. (§ 3, Ord. 95-27, eff. December 13, 1995; § 1, Ord. 11-11, eff. November 2, 2011)

5.6.27 Employee work permits.

(a) Permit required. Any person wishing to work in a gaming club, in any capacity whatsoever, including key management employees, shall first obtain a work permit from the City. No gaming club shall employ or continue to employ, in any capacity, any person not having a valid work permit issued by the City pursuant to this chapter. Work permits shall remain the property of the Clovis Police Department.

(b) Permit application.

(1) Any person wishing to obtain a work permit shall file an application with the Police Chief or its designee on a form provided by the Police Chief. The application shall, at a minimum, request the complete name, address, physical description, birth date, social security and driver’s license numbers, and past criminal record of the applicant. The application shall be complete in all respects. The applicant must submit with his/her application:

(i) Two (2) full face photographs taken by the Chief of Police or his/her designee;

(ii) A complete set of fingerprints taken by the Chief of Police or his/her designee;

(iii) A written statement directed from a licensee indicating a willingness and intent to employ the applicant if the latter is issued a work permit; and

(iv) Payment of the applicable nonrefundable filing and processing fee, as established by resolution of the City Council.

(2) The applicant must promptly supply such other information as may be requested by the Police Chief or his/her designee.

(3) The employee shall certify the contents of the application under penalty of perjury.

(4) The Police Chief or his/her designee is hereby authorized to obtain criminal history information for each employee seeking registration.

(5) Unless objected to by the Police Chief or his/her designee, the Police Chief or his/her designee shall, within fourteen (14) days after submitting the application containing the above information and the required fees to the Police Chief or his/her designee, grant a temporary registration to the applicant pending a final decision based upon the outcome of the background investigation. The temporary registration shall include issuance of a temporary badge or identification to the employee. Temporary permits are valid for a period of forty-five (45) days and remain the property of the Clovis Police Department.

(6) Upon completion of the background investigation the Police Chief or his/her designee shall mail a written decision to the applicant either granting or denying registration and explaining the reasons for denial. The temporary registration previously issued to such applicant shall automatically and without further action expire and be revoked upon the Police Chief or his/her designee either granting or denying registration to the applicant. If granted, the applicant shall turn in the temporary work permit in exchange for a regular permit.

(7) The Police Chief or his/her designee shall provide each registered employee with a permanent identification card to be known as a “work permit” which shall be displayed in accordance with the requirements of this chapter. The work permit shall identify whether the employee is also a key management employee.

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

(c) Objection by California Bureau of Gambling Control. Work permit applications shall be subject to objection by the California Bureau of Gambling Control in accordance with the Gambling Control Act and its regulations. (§ 3, Ord. 95-27, eff. December 13, 1995; as amended by § 5, Ord. 99-10, eff. June 7, 1999; § 1, Ord. 11-11, eff. November 2, 2011)

5.6.28 Employee permits: Issuance or denial.

(a) The Police Chief shall either grant, deny, or temporarily grant the application within forty-five (45) days of the filing of the application.

(b) The Police Chief shall deny the application for a work permit if he/she makes any of the following determinations:

(1) The applicant has failed to comply with one or more of the provisions of this chapter, or of this Code, or other laws or regulations applicable to the operation of a gaming club;

(2) The applicant has been convicted of an offense involving dishonesty or moral turpitude, or is determined by the Police Chief, based upon credible evidence, to have engaged in conduct constituting such offense. If the conviction or conduct occurred more than ten (10) years preceding the submission of the application, this ground shall not be the sole basis for denial of the work permit;

(3) The applicant has been convicted of an offense involving the possession, sale or under the influence of an illegal controlled substance, or is determined by the Police Chief, based upon credible evidence, to have engaged in conduct constituting such offense. If the conviction or conduct occurred more than ten (10) years preceding the submission of the application, this ground shall not be the sole basis for denial of the work permit;

(4) The applicant has engaged in bookmaking or other illegal gambling activities or has been convicted of an offense involving such activity;

(5) The applicant has been associated with criminal profiteering activity or organized crime, as defined by Section 186.2 of the Penal Code;

(6) 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;

(7) The applicant is less than twenty-one (21) years of age;

(8) The applicant has failed to reveal any material fact, or made one or more false or misleading statements, in the application; or

(9) Such other reason which in the opinion of the Police Chief is necessary for the public health, safety or welfare of the citizens of Clovis.

(c) Notwithstanding anything to the contrary in this section, if the Bureau of Gambling Control objects to a work permit, the Police Chief shall not issue a work permit. (§ 3, Ord. 95-27, eff. December 13, 1995, as amended by § 6, Ord. 99-10, eff. June 2, 1999; § 1, Ord. 11-11, eff. November 2, 2011)

5.6.29 Employees: Permit expiration and renewal.

A work permit shall be valid for a period of two (2) years from the date of issuance. It shall be renewable upon the filing of an application for renewal on a form provided by the City and the payment of a renewal fee in an amount established by resolution of the City Council. The renewal application shall be filed at least thirty (30) days prior to expiration date of the permit. If a renewal application has not been received by the City at least thirty (30) days prior to the expiration date of the permit, the applicant must comply with the procedures set forth in Section 5.6.27 of this chapter. (§ 3, Ord. 95-27, eff. December 13, 1995)

5.6.30 Employees: Permit transfer or assignment.

A work permit may not be transferred or assigned. (§ 3, Ord. 95-27, eff. December 13, 1995)

5.6.31 Employees: Permit suspension or revocation.

(a) Work permits are subject to revocation or suspension upon a determination by the Police Chief or his/her designee that grounds exist which would justify the denial of an application for such work permit if such application were then pending. (See Section 5.6.28.)

(b) Upon an initial determination that conditions exist which justify the suspension or revocation of a work permit, the Police Chief or his/her designee, in its discretion, may immediately suspend the work permit by providing written notice to the permittee of such suspension either by personal delivery or by certified mail, return receipt requested, addressed to the permittee at the address listed in the work permit application, or any more recent address furnished to the City by the permittee. The written notice shall specify the action taken, the reason therefor and the time and date of a hearing on such matter. The hearing shall be heard before the City Manager or his/her designee. The hearing on this matter shall not occur earlier than three (3) nor later than ten (10) business days of the notice of suspension. The hearing shall be informal in nature, allowing first the City and then the permittee to present their versions of the facts. The City Manager and his/her designee shall have the authority to lift the suspension, to continue the suspension for a period not to exceed sixty (60) days or to revoke the work permit. Such decision shall be final and conclusive. (§ 3, Ord. 95-27, eff. December 13, 1995; § 1, Ord. 11-11, eff. November 2, 2011)

5.6.32 Employees: Possession of permit at place of work.

Each person performing the functions for which a work permit is required shall keep in his/her immediate possession the valid work permit issued. With the exception of uniformed security personnel, all persons performing functions for which a work permit is required shall wear such permit as identification in a conspicuous place attached to the clothing; provided, however, that no security personnel may sit at a table or engage in legal gambling or gaming at the gaming club in which he or she is employed unless such permit is attached to his or her clothing in a conspicuous place. No work permit shall be removed from the gaming club premises. (§ 3, Ord. 95-27, eff. December 13, 1995; § 1, Ord. 11-11, eff. November 2, 2011)

5.6.33 Record keeping and audits.

(a) The licensee shall make and maintain complete, accurate and legible records of all transactions pertaining to revenue. Such records shall include, but not be limited to, a general ledger maintained in accordance with generally accepted accounting principles, together with appropriate supporting records such as cash receipts and disbursements logs and journals, payroll journals, canceled checks, and original paid invoices. General ledgers and all other records shall be maintained in a fashion suitable for producing financial statements in accordance with generally accepted accounting principles. These ledgers and records shall be maintained for at least five (5) years from the commencement of operations of the gaming club and shall be maintained on the premises of the licensed gaming club and made available for examination and copying by the City or its designee upon request.

(b) Any and all video or audio tape recordings made for security or other purposes shall be marked with the date and time made and shall be kept, in an unaltered state, for a period of fourteen (14) days and must be made available to any law enforcement agency for duplication upon demand. In addition, upon request by any law enforcement agency, the licensee shall duplicate the records for that agency.

(c) In the event information requested of a licensee can be furnished only by someone other than the licensee (such as a landlord, supplier or an accountant), the licensee shall make every bona fide effort to obtain such information as requested and furnish the same or have it furnished directly by the person who has the information available.

(d) In addition to such other information and data required by this section, each licensee shall maintain the following if a partnership or corporation:

(1) A schedule showing the dates of capital contributions, loans or advances, the names and addresses of the contributors and percentage of ownership interest held of record by each;

(2) A record of the withdrawals or distributions of funds or assets, to key management employees;

(3) A record of salaries paid to each key management employee;

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

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

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

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

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

(f) The records required to be kept by this section shall be in ink or other permanent form of recordation.

(g) The books, documents, records and accounts relating to the gross revenues of the licensees as they pertain to the card room shall be audited at the end of the licensee’s fiscal year by a certified public accountant. The report of such accountant and all work papers utilized in the preparation of such audit shall be submitted to the Finance Director. The Finance Director shall review the report and work papers and may require any further information from the licensee. The Finance Director may submit such documents and information to a certified public accountant selected by the City for review.

(h) The City may require, at any time, an audit of the gross revenues of the licensee by a certified public accountant. Such audit shall be in addition to the audit required by subsection (g) of this section. Any inaccuracy found in the revenues previously reported to the City shall be adjusted accordingly. If such additional audit shall disclose an inaccuracy of greater than two percent (2%) error with respect to the gross revenues reported by the licensee for the period of the audit, the cost thereof shall be paid to the City by the licensee. Otherwise, the cost of the audit shall be borne by the City.

(i) Nothing in this section shall limit the City’s right during normal business hours or at other reasonable times to inspect or audit the books, documents, records and accounts of the licensee relating to items other than gross revenues.

(j) Any information obtained pursuant to the provisions of this section or any statement filed by the licensee shall be deemed confidential and shall not be subject to public inspection except in connection with the enforcement of the provisions of this chapter or as may be required to comply with the Public Records Act. It shall be the duty of the City Clerk to so preserve and keep such statements so that the contents thereof shall not become known except to persons charged by law with the administration of the provisions of this chapter or pursuant to the order of any court of competent jurisdiction. (§ 3, Ord. 95-27, eff. December 13, 1995; § 1, Ord. 11-11, eff. November 2, 2011)

5.6.34 Failure to file statements, pay fees or allow inspection of books.

Any failure or refusal by any licensee to make and file any statement as required within the time required, or to pay such sums by way of filing and processing fees, application fees, license fees or security deposits when the fees are due and payable in accordance with the provisions of this chapter, or to permit an inspection of such books, records, and accounts of such licensee shall be and constitute full and sufficient grounds for the suspension and revocation of the license of any such licensee. (§ 3, Ord. 95-27, eff. December 13, 1995)

5.6.35 Loans.

The licensee shall report to the City Manager all loans received by it within fifteen (15) days of execution of final loan documents, if any of the loan proceeds will be utilized for gaming club purposes or will in any way be used in a manner that has a connection to the gaming club. The information shall include the name and address of the lender and the amount and terms of the loan. In no case, however, shall such loan be secured by the gaming club. (§ 3, Ord. 95-27, eff. December 13, 1995)

5.6.36 Changes in rules and regulations.

The Council reserves the right to add to, amend or repeal any of the rules and regulations set forth in this chapter, and to adopt additional rules and regulations. (§ 3, Ord. 95-27, eff. December 13, 1995)

5.6.37 Emergencies.

The Council further reserves the right to adopt by resolution additional emergency rules and regulations which shall become effective immediately upon adoption. Violation of any such emergency rules and regulations may constitute grounds for the suspension and revocation of the licenses issued pursuant to the provisions of this chapter. (§ 3, Ord. 95-27, eff. December 13, 1995)

5.6.38 Penalties.

Any individual violating any of the provisions of this chapter or any of the rules and regulations set forth, established or promulgated in this chapter shall be guilty of a misdemeanor, punishable in accordance with Section 1.2.01. (§ 3, Ord. 95-27, eff. December 13, 1995)

5.6.39 Nonseverability.

The provisions of this chapter providing for the payment of license fees, and the provisions of this chapter allowing the licensing of legal gambling and gaming within the City, shall not be severable one from the other. Should the requirements of this chapter relating to the payment of license fees, as set forth in this chapter or as subsequently amended, be held to be invalid or unenforceable for any reason by the final judgment of a court of competent jurisdiction, then this chapter in its entirety shall thereupon become null and void, and the license issued pursuant to this chapter shall likewise become null and void, and playing cards or games within the City shall thereupon become unlawful to the same extent as such activity was unlawful prior to the adoption of this chapter. (§ 3, Ord. 95-27, eff. December 13, 1995)