Chapter 5.24 CARDROOMS

“Cardroom” or “card club” means any room, enclosure or space with or without one or more tables; which room, enclosure, space or table is used or is intended to be used for the playing of cards and similar games; the use of which room, enclosure, space or table is available to the public or to any portion of the public.

“City manager” means the person appointed by the city council to the position of city manager or that person’s designee.

“Commence” means and includes commence, begin, initiate, start, open, establish and operate.

“Employee” means every person who acts as an agent or employee of the licensee with or without compensation, in a game room, including one who participates as a dealer in a game or is in charge of the operation and is required to supervise game tables, or is a proposition player, or is a security guard. Anyone who is required to routinely enter into a game playing area during the course of his or her duties is considered an employee. The term “employee” does not include a bartender, a culinary worker or any other person not directly connected with the card club operation.

“Gross revenue” means and includes the total amounts received from any and all revenue derived from cardroom activities licensed pursuant to this chapter and conducted on or within the premises.

“License” means a license or permit granted by the city council to operate a card club or cardroom.

“Licensee” means a person who holds a valid license to operate a cardroom or card club in the city.

“Owner” or “pointholder” means every person, firm, association, partnership, corporation or other entity having any interest, legal or equitable, in any cardroom or cardroom license. If the applicant is directly or indirectly owned by a publicly traded corporation, then the publicly traded corporation and any persons directly in the chain of ownership between such publicly traded corporation and the licensee shall not be deemed to be an owner or pointholder for purposes of this chapter if each such person is directly or indirectly a wholly owned subsidiary of such publicly traded corporation. The licensee shall be deemed to be an owner and pointholder, except that if the licensee is a publicly traded corporation, the shareholders of such corporation shall not be considered to be owners or pointholders. [Ord. 1102 § 1, 1995; 1937 Code §§ 479, 479.1.]

5.24.020 Gambling restrictions.

A. No person for himself as an individual, or as an employer, or as an agent, shall be present, deal, play, carry on, open or cause to be opened, conduct or bet as or against any game not prohibited by the laws of the state with cards, dice, or any device, for money, checks, credit, or the representations of value, in a public place, except when playing in a cardroom as provided and licensed under this chapter.

B. Any machine or other device the possession, control, or use of which is penalized by the city may be seized by any peace officer, and a notice of intention summarily to destroy such machine or device must be provided in a conspicuous place on the premises in or upon which such machine or device was sealed, or such notice must be sent to persons within whose control or possession such machine or device was found by a peace officer. Such machine or device shall be held by such officer for 30 days after such notice, and if no action is commenced to recover possession of such machine or device, within such time, the same shall be summarily destroyed by such officer, or if such machine or device shall be held by the court, in any such action, to be in violation of such laws, or any of them, the same shall be summarily destroyed by such officer immediately after the decision of the court has become final.

C. Any and all money seized in or in connection with such machine or device shall, immediately after such machine or device has been so destroyed, be paid into the treasury of the city, said money to be deposited in the general fund.

D. A cardroom may be the sole business of the establishment.

E. Only one cardroom license shall be granted to any one person.

F. A cardroom licensee shall be the sole owner or partner of the principal business. [Ord. 1102 § 2, 1995; Ord. 807 § 1, 1981; Ord. 680, 1980; 1937 Code § 480.]

5.24.030 License – Declarations.

A. The city council declares that public safety, health and the general welfare of the inhabitants of the city require that there be no more than seven licensed cardrooms in this city.

B. No person, for himself or for any other persons, shall maintain, operate or provide a cardroom without first having obtained a cardroom license as provided in this chapter.

C. No new applications for cardroom licenses, pursuant to PMC 5.24.040, shall be accepted by the city until the total number of cardrooms currently licensed is less than seven in number. In those cases where a valid license has been issued for a cardroom containing more than 30 tables, the city shall only issue a new license to a cardroom not in existence as of August 1, 1995, upon a finding that the population of the city and surrounding area will adequately support the existence of an additional cardroom in the city.

D. The city council shall, by resolution adopted concurrently with the ordinance adopting this section, list by name of licensee and authorized address of the cardroom the licensed cardrooms in the city. [Ord. 1102 § 3, 1995; 1937 Code § 480.1.]

5.24.040 License – Application – Contents.

An applicant for a cardroom license shall submit his written application, under oath, to the chief of police. The application shall include or be accompanied by:

A. The first year’s license fee for the proposed cardroom as specified in PMC 5.24.070;

B. The true name of the applicant, owner and pointholder;

C. The arrest record, if any, of the applicant, the owner and pointholder;

D. Fingerprints and photographs of the applicant, the owner and pointholder;

E. Other information reasonably required by the chief of police;

F. The date of the application;

G. The status of the applicant as being an individual, a sole proprietorship, a partnership, a corporation or other business entity;

H. If the applicant is an individual, the residence and business address of such applicant;

I. If the applicant is not an individual, the name, residence and business address of each of the officers and directors or, if a partnership, the partners of the license application;

J. An application for an employee registration permit, in the form and substance required by PMC 5.24.120, for each person who is or is proposed to be an owner, employee or pointholder of the proposed cardroom;

K. A description of the premises to be used in relation to the cardroom activity, including but not limited to game playing areas and associated facilities;

L. A general description of the type and nature of the games intended to be played;

M. The number of tables or other units to be played, employed or used;

N. A description of any other business conducted or proposed to be conducted at the same location;

O. A financial plan and source of funding for the development, including projected development cost, which financial plan shall be a confidential document and shall not be open to public inspection;

P. A statement of the applicant’s experience in the operation and management of cardrooms or other lawful gambling or relevant activities;

Q. A complete description and layout of all security measures proposed in as great a detail as is available, which document shall be confidential and shall not be open to public inspection;

R. A copy of any lease (including any agreement with the owner of the underlying fee interest in the property) that the applicant or any other party has entered into for the use of the cardroom, which document shall be confidential and shall not be open to public inspection;

S. A statement that the applicant understands that the application shall be considered by the city council only after a full background investigation and report have been made by the chief of police;

T. A statement that the applicant understands and agrees that any business or activity conducted or operated under any license or permit issued under such application shall be operated in full conformity with all state and local laws and regulations, and that a violation of any such laws or regulations in such place of business or in connection therewith, may render any license or permit subject to immediate suspension or revocation;

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

V. A full and complete financial statement of the applicant, whether an individual, corporation, partnership or other entity; and a full and complete financial statement of each person to be a partner of the applicant, regardless of whether the partner is to be a limited partner or general partner; and a full and complete financial statement of each officer and/or director of the corporation or other entity. For a publicly traded corporation, only those officers, directors, owners or pointholders who have a personal financial interest or who are providing financing for the card club shall be required to provide a full and complete financial statement. The financial statements required by this section shall be confidential documents and shall not be open to public inspection. Documents shall be available only to the city council and those officials having direct jurisdiction involving the provisions of this chapter and to any court of competent jurisdiction where any matter directly relating to the processing, operation under or enforcement of this license is pending;

W. A statement in a form acceptable to the city attorney that the applicant understands and agrees to be bound by the indemnity provisions set forth in this chapter. Further, a statement by the applicant that it accepts all risks of any adverse public notice, publicity, embarrassment, criticism, financial loss or all other actions and consequences which may result from activities with respect to reviewing, processing, approving or disapproving any application, and that the applicant waives any claims for damages against the city, its agents, officials and employees resulting therefrom, other than damages resulting from the intentional wilful misconduct of the city, its agents, officials and employees; and

X. Any request by the applicant for the city to consider a development agreement in connection with the development of real property related to the card club shall be made not later than concurrently with the license application. [Ord. 1102 § 4, 1995; 1937 Code § 480.2.]

5.24.050 License – Application – Investigation.

Upon receipt of an application for a cardroom license, the chief of police shall investigate the applicant, owner and pointholder. After completing his investigation, the chief of police shall submit his written report to the city council. The report shall include an itemization of the investigation and a recommendation for approval or disapproval of the application with the reasons stated. [Ord. 1102 § 5, 1995; 1937 Code § 480.3.]

5.24.060 License – Application – Council action.

A. The city council shall set the hearing on an application for a license. The applicant shall be given at least 10 days’ notice of the time and place of the hearing and of the right to appear and be heard. The city council may, in its discretion, grant, deny or condition a license or permit application for any of the following reasons, without being limited thereto, or for any other reason consistent with the general policy of this chapter:

1. Conviction of the applicant, any pointholder or employee of any crime punishable as a felony or of any crime involving fraud, gambling, loan sharking, bookmaking, thievery, bunco, moral turpitude, or any crime involving evasion of taxes, or any other crime of moral turpitude indicating a lack of business integrity or business honesty, whether committed in the state of California or elsewhere, whether denominated as a felony or misdemeanor and notwithstanding the passage of time since the conviction;

2. That, in the opinion of the city council, the proposed location for the cardroom would be incompatible with the use being made of property in the immediate vicinity and injurious to the health, safety, welfare and morals of city residents;

3. The applicant, any pointholder or employee is presently under indictment or is the subject of a criminal complaint for any of the crimes described in subsection (A)(1) of this section;

4. Prior unsuitable operation by the applicant, any pointholder or employee as a card or gaming room license in another jurisdiction without regard to whether disciplinary action was taken at that time or whether the acts were sufficient to justify revocation or suspension of a license;

5. Making or causing to be made any false or misleading statement in the application or as to any other information presented as part of the application process;

6. Failure to satisfy the city council as to the source of funds to be invested in the proposed business venture and that there is adequate financing available to pay potential current obligations and, in addition, to provide adequate working capital to finance opening and operation of the cardroom proposed;

7. The applicant does not have the financial capability or business experience to operate a cardroom in a manner that would adequately protect the patrons of the cardroom and the citizens of the community;

8. Failure of the applicant to have a valid registration from the Attorney General of the State of California issued pursuant to the Gaming Registration Act;

9. The proposed business or activity would not be in compliance with federal, state or local laws or regulations;

10. An inadequate security plan;

11. If the game for which a license is applied for is unlawful; or

12. The city council determines that the granting of the license will not be in the best interest of the community’s health, safety and welfare.

B. In the event that a pointholder or employee has acted in a manner which subjects the license application to being denied, the applicant shall have the ability, provided the applicant had no prior knowledge of the pointholder’s or employee’s conduct and the applicant did not ratify, order, demand or condone the pointholder’s or employee’s conduct, to take prompt, remedial and corrective action including but not limited to imposing appropriate disciplinary action or divesting the pointholder or employee of any ownership interest in the card club. [Ord. 1102 § 6, 1995; 1937 Code § 480.4.]

5.24.070 License fees – Cardroom with more than two tables.

In addition to any other business license fees which may be imposed upon the business where a cardroom is located, the following fees shall apply to an application for a cardroom with more than two tables:

A. An application fee shall accompany the application for a license. The fee shall be established by the city council by resolution, in an amount sufficient to pay the cost of conducting an investigation of the applicant, and the cost of conducting an election on whether or not the proposed cardroom should be approved. The resolution shall allow for a reduced fee if the election is consolidated with a general election.

B. Each licensee licensed under this section shall pay to the city 13 and one-half percent of the total monthly gross revenue of the cardroom business so licensed. Payment for any calendar month shall be made on or before the fifteenth day of the succeeding calendar month.

C. In the case of a new applicant, a deposit for the first six months license fee in the amount of $60,000 shall be paid in advance to the city upon issuance of the license. The sum of $10,000 shall be credited each month against the payment due under subsection (B) of this section. The advance license fees shall become the absolute property of the city and shall not be refunded to any such applicant when such license is issued, and such fees shall not be prorated in any manner whatsoever, and in the event of the cessation of such business, whether voluntary or involuntary, no refund of the advance fees shall be made.

D. Following the first 12 months of operation, regardless of the total monthly gross revenue, the minimum monthly amount paid by licensee to the city shall be at least $100,000.

E. In the event any tournament is held at the cardroom, licensee shall pay to city 10 percent of the total entry fees in addition to the total monthly fee specified herein.

F. For any noncard club business operation on the premises, including but not limited to food and beverage service or rental of facilities, licensee shall pay to city a monthly business license tax as set forth in Chapter 5.04 PMC, as may be adjusted or amended, for fixed places of business, or as set forth in any other applicable section, as determined by the city’s finance director.

G. Each licensee shall file with the city, before the fifteenth day of each calendar month, a reporting form under penalty of perjury and approved by the city manager showing the true and correct amount of gross revenue derived from the card club business licensed for the preceding calendar month. Such statement shall be accompanied by payment of the correct amount of license fee due and owing in accordance with this section. Such sums correctly reflecting the fees payable for the preceding month shall be accepted by the city, subject, however, to the future right of the city to audit the matters referred to in any such statement and to determine the correctness of the figures and the amounts payable to the city pursuant to the provisions of subsections (H) and (I) of this section.

H. Licensee shall arrange, at its own expense, on an annual basis, for a certified public accountant approved by the city manager to audit the books, documents, records and accounts relating to the gross revenue of the licensee at the end of the licensee’s fiscal year. The report of such accountant and all work papers utilized in the preparation of such audit shall be submitted to the city manager. The city manager shall review the report and work papers and may require any further information from the licensee. The city manager may submit such documents and information to a second certified public accountant for review. The expense of such second review shall be shared equally between the city and licensee.

I. In addition to the annual audit required in subsection (H) of this section, the books, records and accounts of any card club may be audited by the city at any time. Upon request of the city manager, the licensee shall provide to the city manager copies of licensee’s tax returns, which shall be kept confidential and shall not be disclosed other than as necessary to carry out the purposes of this section. In the event a city conducted audit discloses an underpayment to the city in excess of two percent in any one month, the full cost of such audit shall be borne by the licensee. 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 unless otherwise required.

J. Any failure or refusal of licensee to timely make and file any required statements, or to pay any such fees or tax when the same are due and payable in accordance with the provisions of this chapter, or to permit inspections of such books, records and accounts of such licensee, shall constitute full and sufficient grounds to revoke or suspend the license as provided in this chapter. Penalties for a late payment shall be assessed in accordance with any provisions or regulations enacted under this code including but not limited to Chapter 5.04 PMC, or such other provisions governing business license delinquencies.

K. The amount of any business license fee, penalties and interest imposed by the provisions of this chapter shall be deemed a civil debt to the city. The city may pursue any legal remedies against licensee for the collection of any delinquent business license fee, penalties, interest, liens and all administrative costs incurred in connection therewith, including attorneys’ fees.

L. In the event of the cessation of business by a licensee, whether voluntary or involuntary, no refund of any such fees or tax shall be made whatsoever.

M. The city council may by a super-majority vote adjust any and all fees and amounts imposed under this chapter after the licensed cardroom has been in effect for five years.

N. The city council may specify a different rate for any of the fees imposed under this chapter if it finds that doing so is necessary to be competitive with other jurisdictions or to be consistent with current practices in other jurisdictions where cardrooms operate. [Ord. 1131 § 2.1, 1997; Ord. 1102 § 7, 1995; 1937 Code § 480.5.]

5.24.075 License fees – Existing or new cardroom with two or fewer tables.

In addition to any other business license fees which may be imposed upon the business where a cardroom is located, the following fees shall apply to an existing cardroom, or a new cardroom, with two or fewer tables:

A. An application fee for a new cardroom shall accompany the application for a license. The fee shall be established by the city council by resolution, in an amount sufficient to pay the cost of conducting an investigation of the applicant.

B. For a licensee of an existing and operational cardroom in effect before August 1, 1995, and for any new license for a facility with two or fewer tables, the annual cardroom license fee shall be limited to: $150.00 for the first card table; and $50.00 for the second card table.

C. Any expansion of a facility to more than two tables shall be subject to licensure and fees as provided in PMC 5.24.070 and as otherwise provided in this chapter. [Ord. 1131 § 2.2, 1997.]

5.24.080 License – Commencement of operation, term and renewal.

A. Licensee shall commence operation of the cardroom within 180 days of issuance of the cardroom license. Failure to commence operation in a timely manner shall render the license null and void.

B. Each cardroom licensed under this chapter shall automatically expire at midnight on the five-year anniversary date after which the license was issued or renewed. A valid license issued under this chapter, which has not been surrendered, suspended or revoked, may be renewed for respective periods of no longer than five years each on the following terms and conditions:

1. An application for renewal of any license shall be filed with the city manager at least 90 days before expiration of the existing license on forms provided by the city manager;

2. An application for renewal shall contain a declaration under penalty of perjury on a form approved by the city manager confirming and indicating:

a. Any change in individuals with whom the licensee has any operating agreements pertaining to the licensed operation,

b. Any change in pointholders along with the full, true and correct names and addresses of every such new pointholders,

c. The full, true and correct names and addresses of each and every current employee, and

d. If no changes have occurred from the previous renewal, the licensee shall so certify and attest;

3. If an application for renewal is not filed or the application fee is not paid, within the time specified herein, the license shall be deemed surrendered upon the expiration date of the license;

4. The application fee for renewal of a license under this chapter shall be established by city council resolution to cover the costs of processing renewal;

5. In the event the cardroom has complied with all of the requirements of this chapter and all of the conditions of the license, and if no material changes have occurred that have not already been acted upon, and if the revenues received by the city are consistent with the provisions of this chapter, the city manager shall renew the license for another five-year period, except that the city manager shall have the option to defer the license renewal determination to the city council. The licensee may appeal to the city council a decision by the city manager to deny a renewal. Such appeal shall be filed within 10 days of the date of notice of such decision by the city manager. The city council shall schedule a hearing for any such appeal. [Ord. 1102 § 8, 1995; 1937 Code § 480.6.]

5.24.090 Nonrefundable fees.

Any and all fees paid by the applicant shall become the absolute property of the city and shall not be refunded to any such applicant when such license is issued, and such fees shall not be prorated in any manner whatsoever, and in the event of the cessation of such business, whether voluntary or involuntary, no refund of the advance fees shall be made whatsoever. [Ord. 1102 § 9, 1995; 1937 Code § 480.7.]

5.24.100 License – Transfer and assignment.

A transfer, sale, assignment or conveyance of any license shall be considered for all purposes in the same manner as a new application for a cardroom license in the city, and all the provisions of this chapter applicable to a new and original application shall apply. Such transfer shall be in accordance with all applicable provisions of this chapter. Any such sale, transfer or assignment or attempted sale, transfer or assignment without compliance with this chapter shall be deemed null and have no force and effect. [Ord. 1102 § 10, 1995; 1937 Code § 480.8.]

5.24.110 Owners, pointholders and employees registration permit requirement.

No owner, employee or pointholder shall work in a card club unless he or she has applied for and obtained a registration permit in accordance with PMC 5.24.120 and 5.24.130. [Ord. 1102 § 11, 1995; 1937 Code § 480.9.]

5.24.120 Owners, pointholders and employees registration permit procedures.

A. Each owner, pointholder or employee shall present himself or herself at the office of the chief of police during normal business hours at least 10 calendar days before the beginning of employment or ownership to be registered, or within 15 days of submittal to the city of a license application. The applicant shall complete a registration permit application under penalty of perjury and be finger printed and photographed. The owner, pointholder or employee shall pay a nonrefundable registration fee in an amount established by city council resolution, and sufficient to offset the cost of investigations conducted pursuant to this chapter, administrative and processing costs, and the cost of producing identification cards.

B. Each application for a registration permit shall include the following information:

1. The true name of the person, including all other names by which such person is or has been known;

2. The business and residence address of the person during the past five years;

3. Current occupation and employment;

4. Employment during the past five years;

5. Driver’s license and Social Security numbers;

6. The name of the cardroom, and the name of the cardroom licensee in and for which the person intends to work or in whose gaming facility such person has or intends to have an ownership interest;

7. The position and duties the person shall hold and perform while in the employ of licensee, if such person intends to be an employee;

8. A statement indicating whether or not such person has at any time been convicted of any crimes other than minor traffic offenses, and if so, the nature of the crime for which the person was convicted, the date and jurisdiction of the conviction;

9. Two recent photographs of the person;

10. A statement that the person understands and agrees to the inclusion, in any report to the city manager or city council, of any criminal conviction that the chief of police considers pertinent and necessary; and a statement that the person accepts all risks of any adverse public notice, publicity, embarrassment, criticism, financial loss or all other actions and consequences which may result from activities with respect to reviewing, processing, approving or disapproving such applications; and that the person waives any claims for damages against the city, its agents, officials and employees resulting therefrom, other than damages resulting from the intentional or wilful misconduct of the city, its agents, officials and employees;

11. A declaration under penalty of perjury by the applicant that the contents of the application are true;

12. Except as to the licensee, a report prepared, or caused to be prepared by the licensee, at its option, summarizing the results of the licensee’s screening and background investigation concerning the pointholder or employee, which shall have been undertaken by the licensee at the licensee’s expense. Such report shall not be required where such information would duplicate the background information acquired under this chapter by the chief of police; and

13. Any other relevant information requested by the chief of police or his designee. [Ord. 1102 § 12, 1995; Ord. 807 § 2, 1981; 1937 Code § 480.10.]

5.24.130 Investigation and grounds for denying registration permit.

A. Upon receipt of an application for an owner, pointholder or employee registration permit, the chief of police shall conduct a background investigation of the applicant and shall mail a written decision to the applicant within 10 days of receipt of the application.

B. If the registration permit is denied, the chief of police shall state the reasons for denial. The chief of police may deny registration on any one of the grounds provided in this chapter including but not limited to any one of the following:

1. The person has been convicted of a crime involving lotteries, gambling, bookmaking, larceny, perjury, bribery, extortion, fraud, thefts, embezzlement, or a crime involving moral turpitude, or has been convicted of the sale or possession for sale of a controlled substance, prostitution, pimping or pandering; or the person has been convicted of violating a law or ordinance relating to the operation of a cardroom;

2. That the person has committed an act involving dishonesty, fraud or deceit;

3. That the person has been refused, or has had revoked, any gambling, gaming or entertainment license or permit by an agency of government within five years of the date of the registration permit application;

4. That the person has violated a provision of this chapter; or

5. That the person has knowingly made a false statement in his or her application. [Ord. 1102 § 13, 1995; 1937 Code § 480.11.]

5.24.140 Registration permit conditions and terms.

A. Upon approval of the registration permit, the chief of police shall provide each registered owner, pointholder or employee with an identification card, which shall be prominently displayed on the person at all times while the person is present in a game playing area. The identification card shall include a photograph; the name of the person; the name of the cardroom; the person’s position or job title; and the permit expiration date. No employee shall be allowed to commence work and no employee, owner or pointholder shall be allowed to remain in a game playing area who does not display such identification. Failure to comply with this section constitutes grounds for suspension or revocation of the registration permit and/or cardroom license as provided in this chapter.

B. Each registration permit shall be renewed every two years on the anniversary date of the initial registration. The chief of police shall consider the renewal of all registration permits.

C. On the first day of each month, the licensee shall submit to the chief of police a current and complete list of all owners, pointholders and employees. The licensee shall inform the chief of police in writing within 10 days of any change in employment status of a registered owner, employee or pointholder. A change includes termination, leave of absence, promotion or other change in job title. [Ord. 1102 § 14, 1995; Ord. 807 § 3, 1981; 1937 Code § 480.12.]

5.24.150 License or work permit – Denial, suspension or revocation – Appeal.

The person adversely affected by any recommendation, denial, suspension or revocation of the chief of police may appeal such action to the city council by filing with the city clerk a written notice of appeal within 10 days after receipt of notice of recommendation, denial or suspension or revocation. The city clerk shall set the matter for hearing before the city council. The affected person shall be given at least five days’ written notice of the time and place of hearing and of his right to appear and be heard. Within 30 days after the hearing, the city council shall make findings and sustain or overrule the action of the chief of police. [1937 Code § 480.13.]

5.24.160 License – Revocation and suspension.

A. A license is subject to revocation or suspension as provided in this chapter and/or upon a determination by the council that any one of the grounds exist that would have been a basis for denial of the license application under this chapter when applied for initially. A license may also be revoked or suspended if the licensee, any pointholder or employee has:

1. Violated, permitted, allowed or caused the violation of any provision of this chapter, state or local law;

2. Permitted, allowed or caused any violation of any condition of approval imposed upon the issuance of such license, or any other permit issued under this chapter;

3. Made any false, fraudulent or misleading statement or omissions as to a material fact on an application form, or as to any other information presented or required as part of the application process;

4. Abandoned or substantially ceased to operate the licensed cardroom for 60 days or more out of any consecutive 90-day period regardless of the reasons, unless such failure to operate is the result of a suspension of the license or unless licensee’s premises are destroyed or damaged, or forced to close by war, insurrection, strikes, riots, fire, flood or other acts of God or beyond the control of licensee, or directly by restrictions mandated by other governmental entities, enactment of a new or supplemental state or federal law or regulations or judicial interpretations of state or federal laws or regulations, so long as the licensee is proceeding with due diligence to restore the cardroom operation. This 60-day period may be extended by the city council in its discretion;

5. Failed to prevent the cardroom facility from causing a substantial adverse impact on surrounding properties or persons, or on the community as a whole, due to the direct or indirect consequences of the cardroom facility, including but not limited to criminal activity, public intoxication, crowd activity, security problems, noise, odor, traffic or parking overflow;

6. Failed to prevent the operation of the cardroom facility from constituting or giving rise to a public nuisance;

7. Had its registration under the California Gaming Registration Act suspended or revoked;

8. Failed to commence operation of the cardroom in accordance with PMC 5.24.080;

9. Failed or refused to timely file with the city the statements of gross revenue of the cardroom as required under this chapter, or to timely pay, or cause to be paid, the full amount of the business license fee otherwise due under this chapter, regardless of the cause for such failure or refusal;

10. Transferred or caused to be transferred, an interest in the cardroom facility operation or the license or any other permit without obtaining the approval of the city as required under this chapter; or

11. Made or caused to be made any campaign or other financial contributions in violation of the provisions of this chapter.

B. Where the grounds for considering suspension or revocation of the license is based on subsection (A)(5) or (6) of this section, and the city council determines that cause exists for suspending or revoking the license on such basis, then the licensee may submit a written plan to the city council specifying the mechanisms and procedures that the licensee proposes to undertake to address and alleviate the impacts that give rise to the basis for suspension and revocation of the license. If, upon review and consideration of the plan, the city council determines that the mechanisms and procedures contained in the plan are reasonably likely to satisfactorily address the adverse impacts upon which the suspension or revocation action was brought, the city council shall refrain from suspending or revoking the license, subject to prompt implementation by the licensee of the mechanisms and procedures contained in said plan. If upon implementation of such plan the city council determines that the adverse impacts have not been addressed and alleviated in a satisfactory manner, the council shall have the discretion to proceed with suspension or revocation of the license as provided in this chapter.

C. Upon determining the existence of a condition stated in subsection (A) of this section or any other condition that is a basis for suspension or revocation of a license under this chapter, the city manager shall give notice of a hearing before the city council to the licensee. The notice shall be in writing and shall state the time, place, purpose, the grounds upon which the proposed action is based and shall require the licensee to show cause before the city council why the license should not be suspended or revoked. The notice shall be sent to the licensee at least 30 days prior to the hearing by personal delivery or certified mail to the address listed on the license application, or any other address furnished to the city by the licensee.

D. At the conclusion of the public hearing, the city council may revoke or suspend the license, as provided in this chapter. The council shall render its decision, accompanied by written findings upon which the decision is based, within 10 days after the hearing is concluded. The city council’s decision shall be final. [Ord. 1102 § 16, 1995; 1937 Code § 480.14.]

5.24.170 Regulations.

No person shall maintain a cardroom in violation of any of the following regulations:

A. Not more than one cardroom shall be located at address.

B. The licensee may, at its discretion, extend credit to any player, accept promissory notes, offer to or cash checks as a service to players within the card club.

C. Not more than 75 cumulative card tables shall be allowed in the city.

D. The hours of operation for any cardroom shall be specified by permit.

E. The cardroom and all appurtenances shall be open for inspection during all hours to the city manager or the chief of police, without a search warrant.

F. No person who is intoxicated or under the influence of a narcotic or drug shall be permitted in the cardroom at any time.

G. The licensee shall post in the card club, in letters plainly visible, such rules and regulations as the chief of police may require.

H. The cardroom license and all owner, employee and pointholder registration permits shall be posted in a plainly visible location in the cardroom or shall be made readily available upon the city’s request.

I. Alcoholic beverages of any kind shall not be consumed in a cardroom between the hours of 2:00 a.m. and 6:00 a.m. [Ord. 1102 § 17, 1995; Ord. 807 §§ 4, 5, 1981; Ord. 668 C.S. § 8, 1974; 1937 Code § 480.15.]

5.24.180 Activities prohibited by state law.

This chapter shall not be construed to permit the licensing of any cardroom for the playing of any game prohibited by the laws of the state. [1937 Code § 480.16.]

5.24.190 Prohibition against cheating.

A. It is unlawful for any person or persons to use any cheating technique, whether or not such techniques are successful; or to knowingly aid or abet another person in any cheating action; or to use any mechanical or electrical apparatus or device so as to gain any advantage, or to gain information that would enable a player or dealer to deceive others.

B. It shall be the responsibility of the licensee and all of the employees of the cardroom to immediately report any instance of cheating to the chief of police.

C. Notwithstanding any other provision of law, any person committing an act of cheating shall be guilty of a misdemeanor and punishable as provided in this code for a misdemeanor violation. [Ord. 1102 § 19, 1995; 1937 Code § 480.17.]

5.24.200 Indemnification.

In addition to other indemnity requirements in this chapter, the licensee and the licensee’s successors, heirs and assigns shall defend, indemnify, and hold harmless the city, its agents, officials and employees from any claim, action or proceedings against the city, its agents, officials and employees arising out of or resulting from the negligence of the licensee or the licensee’s agents, employees or contractors in the construction or operation of the cardroom facility. [Ord. 1102 § 20, 1995.]

5.24.210 Campaign contributions.

The city council finds that the gaming industry is a highly regulated and controlled industry due to the nature of its operations, the amount of money amassed and the fears and perceptions that some elements in the industry may use such funds to incur political debts from legislators who are aided by their contributions. In order to eliminate the appearance of impropriety associated with such contributions, the city council determines that it shall be unlawful for any corporation, partnership or other legal entity licensed under this chapter, or the licensee’s employees or agents or any pointholder, to make or cause to be made, either directly or indirectly, any monetary contributions to any elected official of the city, or any candidate seeking elected office within the city, or to their respective campaign organizations. [Ord. 1102 § 21, 1995.]

5.24.220 Financial disclosure.

Applicant and/or licensee, on their own behalf and on behalf of any owner, pointholder or employee as described herein, and any agent thereof, shall disclose to the city any payment of $100.00 or more, or its equivalent, made by such person or their agent, directly or indirectly, within the preceding five years, to any city elected official, employee of the city, any consultant or agent of the city, any former employee or former city council member or elected official who served the city within the last five years, and any commission member, present or former. This requirement to disclose includes disclosure of the payment of $100.00 or its economic equivalent in any calendar year. This disclosure shall be made within 30 days of the time of such payment for any payment made after issuance of the license and shall state the amount of money so paid. A payment of $100.00 or more shall include any moneys or other items of value which have been given, promised, provided to, paid as salary or compensation, or otherwise transferred or directed to, either directly or indirectly, to those persons designated herein. Failure to disclose such information shall constitute grounds for suspension and/or revocation of a permit or license. [Ord. 1102 § 22, 1995.]

5.24.230 Adoption of additional rules and conditions.

The city council reserves the right to adopt by resolution additional rules and regulations, consistent with the provisions of this chapter, regarding card clubs. The council further reserves the right to impose additional conditions on any permit issued under this code relating to card clubs where those conditions are necessary to protect public health, safety and welfare. Such rules, regulations and conditions shall become effective immediately upon adoption or upon issuance of the permit, and the violation of any such rules, regulations or conditions shall constitute grounds for the suspension or revocation of any permits or licenses issued pursuant to the provisions of this chapter. [Ord. 1102 § 23, 1995.]

5.24.240 Standard of review.

Any action or proceeding to attack, or review, set aside, void or null a determination, finding, or any decision of the city made as a result of proceedings in which a hearing was required to be given, information or evidence required to be taken in discretion of the determination of facts vested in the city, on the grounds of noncompliance with the provisions of this chapter, shall be in accordance with Code of Civil Procedure Section 1094.5. In any such action, the court shall only determine whether the act or decision is supported by substantial evidence in light of the whole record, except to the extent the court determines that the provisions of Code of Civil Procedure Section 1094.5(c) for the exercise of its independent judgment on the evidence applies. [Ord. 1102 § 24, 1995.]

5.24.245 Voter approval – Amendments.

A. No license for a cardroom with more than two tables shall be issued or have any effect under this chapter or any successor ordinance unless and until the electors of the city have authorized the issuance of a license for a site-specific location.

B. The issuance or renewal of a license for the ownership or operation of any cardroom licensed in the city as of August 1, 1995, is exempt from the provisions of subsection (A) of this section; provided, that the license or renewal does not authorize a change in the location or an increase in the number of authorized and licensed tables that would result in more than two tables at that facility.

C. This section may only be amended with the approval of the city’s electorate. [Ord. 1131 § 2.3, 1997.]

5.24.250 Severability.

In the event any section or provision of this chapter is held invalid or unenforceable by a court of competent jurisdiction, the remaining sections or provisions shall not be affected. [Ord. 1102 § 25, 1995.]

5.24.260 Violation of chapter.

No person shall violate a provision of this chapter or fail to comply with a provision of this chapter. A person who violates a provision of this chapter is guilty of a misdemeanor. [Ord. 1102 § 26, 1995.]

For statutory provisions regarding the prohibition of certain card games and games of chance, see Penal Code §§ 330 and 330a.