Chapter 9.04 GAMING CLUBS

The operation of gaming clubs within the state in strict compliance with its gaming laws has been demonstrated to be a successful means of generating revenues for local governments. It is found and determined that, with the city’s present population, one gaming club, in which only those games permitted under the laws of California are played, if authorized by the city council, shall be allowed in the city for the purpose of creating new jobs and new revenue for the San Pablo community.

It is found that the public health, safety and welfare require the establishment of regulations pursuant to, and in conformity with, the State Gambling Control Act. The city finds it necessary to regulate, among other things:

A. The persons who will own, operate or be employed in gaming clubs.

B. The number and size of gaming clubs in the city.

C. The operation of gaming clubs in the city.

D. The issuance of permits and licenses, including limitations on transfer and assignment, for gaming clubs. (Ord. 98-002 § 1 (part), 1998; Ord. 94-001 (part), 1994)

9.04.020 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 to the contrary:

A. “Applicant” means any person or entity filing an application with the city seeking a gaming club license, permission to transfer pointholder interest, or a work permit.

B. “Beneficial interest” means that interest in a gaming club held by the beneficiaries of a trust which, as part of the corpus thereof, hold a financial interest in such gaming club.

C. “Gaming club” means a business or enterprise licensed under the provisions of this chapter for the playing of gambling games permitted under the laws of the state of California, provided such games are approved by license, ordinance or resolution of the city council.

D. “Card games” means any games played with cards or other devices for money, checks, credits or any other thing of value, which are permitted under the laws of the state of California, provided such games are approved by ordinance or resolution adopted by the city council.

E. “Cardroom” means and includes that area or areas within the gaming club in which card games are conducted. Any license issued hereunder shall designate such card room areas.

F. “Card table” or “table” means any table or any other surface upon which any card game is played. A table shall commonly accommodate no fewer than four players.

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

H. “Conduct” means and includes conduct, transact, maintain, prosecute, practice, manage, permit, allow, suffer, operate and carry on.

I. “Employee” means any person employed by a licensee or by the licensee’s business partners or associates, to work in or around the premises in which a gaming club is located, with or without compensation. The term employee includes, but is not limited to independent contractors, security personnel, bartenders, kitchen workers, valets, restaurant workers, cashiers and secretarial personnel.

J. “Financial interest” means any direct or indirect interest in the management, operation, ownership, profits or revenue (gross or net) of a gaming club. A “direct financial interest” means a monetary investment in a gaming club and/or the premises and business enterprises directly related to it. An “indirect financial interest” means owning one percent or more of an entity, i.e., any business, corporation, joint venture, partnership or trust that in turn has a direct financial interest in a gaming club. Provided, however, that if the state allows publicly-owned corporations to own gaming clubs, only those shareholders required by the state to register shall be deemed to have a “financial interest” under this chapter.

K. “Gross revenue” means and includes the total amounts received or receivable for seat rental fees, admission fees, tournament fees, table revenues, and any and all other revenues derived from gaming activities conducted on or within the premises, except for revenue received from the sale of food or beverage through restaurant, bar or similar operations, or facility rentals, parking or merchandise sales.

L. “License” means a license or permit for the playing of only those games permitted under the laws of the state and by city council ordinance or resolution.

M. “Manager” means any agent or employee of a licensee whose duties include, but may not be limited to one or more of the following: (1) the making or changing of policy; (2) hiring or firing employees; (3) generally exercising independent judgment in the operation of the gaming club. A manager need not have a financial interest in the licensee.

N. “Owner” means every person, firm, association, partnership, corporation, joint venture or other entity having any interest, legal or equitable, in any gaming club or gaming club license.

O. “Person” means and includes a natural person, firm, association, partner, corporation, joint venture or any other legal entity which owns, operates, or proposes to operate a gaming club in the city.

P. “Pointholder” means any person, beneficiary of a trust, or any legal entity having any financial or beneficial interest in the ownership, division of profits, or revenue of a gaming club, whether legal or equitable, including all stockholders of any entity having a financial or beneficial interest in such license.

Q. “Proposition player” means an employee engaged, or paid by the licensee for the purpose of starting and/or maintaining a sufficient number of players in a card game. Proposition players shall play with their own money.

R. “Purport to commence” and “purport to conduct” means and includes any showing, representation, indication or action which:

1. By means of sign, advertisement or advertising matter, whether in, upon or about any premises or otherwise; or

2. By the appearance or arrangement of any premises; or

3. By acts or statements of any person, or by the agents, servants, or employees of any person, indicates, suggests, holds out, or represents that any person is, would be, or appears to be conducting or in a position to conduct any business referred to in this chapter within the city. (Ord. 95-008 § 1, 1995; Ord. 94-001 (part), 1994)

9.04.030 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 and power to, at any time, amend or modify the provisions of this chapter, and to otherwise regulate or prohibit any privilege exercised hereunder. This reservation includes but is not limited to the right of the city to enact or amend rules and regulations, and to amend, from time to time, a license issued pursuant to the terms of this chapter, by resolution of the city council. The issuance of any such license shall not be deemed a waiver by the city of such right or power to amend such license or the provisions of this chapter. (Ord. 94-001 (part), 1994)

9.04.040 Licenses—Required.

A. It is unlawful for any person to commence or conduct, or purport to commence or purport to conduct, within the city any business, activity, enterprise or undertaking, wherein tables or other items or units of furniture are used directly or indirectly for playing cards or card games and for the use of which a fee, commission, or compensation is directly or indirectly charged, accepted, or received from players or participants in any such playing of games until such person shall have first obtained a license to do so in accordance with the provisions of this chapter, and a conditional use permit pursuant to the city’s zoning ordinance. This chapter regulates the owners of the gaming club, and not the land upon which it is located. Under no circumstances shall any conditions attached to any such license be construed to turn such license into a conditional use permit whose transfer may not be restricted by the city. It is unlawful for any person to bet at, or against, any card game except as allowed by this chapter.

B. No application for a license for the conduct of any game and/or business under this chapter shall be received, filed or processed by the city manager, nor shall a public hearing on the same be conducted:

1. When the application would result in the number of current and valid licenses for gaming clubs in the city, when added together, exceeding the total number provided in Section 9.04.050 of this chapter; or

2. When the application contemplates less than thirty licensed tables or units, or an aggregate size or area under one roof of less than thirty thousand square feet; or

3. During the term of any exclusive application agreement between the city and any other applicant.

C. The city council may regulate the terms and conditions for operation of a gaming club, including but not limited to permissible hours of operation of such gaming clubs, the games to be played, and wagering limits, through resolution or the imposition of conditions of approval attached to the issuance of a license under this chapter, or to the issuance of a use permit as may otherwise be required under this code. No-limit and high-limit bets will be allowed in designated high-limit game areas and during authorized tournaments. In no other case shall individual bets higher than three hundred dollars be allowed in poker games, nor bets higher than five hundred dollars be allowed in California games. (Ord. 96-002 § 1, 1996; Ord. 95-008 §§ 2, 3, 1995; Ord. 94-001 (part), 1994)

9.04.050 Limitation on number of licenses and tables.

A. Licenses. Except as otherwise may be required by law, the number of current licenses for gaming clubs in the city which may be authorized and outstanding, when added together, shall not at any time exceed the following limits:


1.	Population of city: 0—40,000 Maximum number authorized: One
2.	Population of city: 40,001—60,000 Maximum number authorized: Two
3.	Population of city: 60,001—80,000 Maximum number authorized: Three

B. Tables. Any gaming club licensed under this chapter shall contain a minimum of thirty tables and a maximum of two hundred fifty tables, unless a smaller number is provided for by the terms of a license issued under this chapter, and shall be no smaller in aggregate size or area under one roof than thirty thousand square feet. In no event shall the number of licensed gaming tables in the city exceed five hundred. Temporary uses of gaming tables in tournaments and other special events authorized by the city shall not be counted against the maximum levels set forth herein. (Ord. 98-002 § 2, 1998: Ord. 94-001 (part), 1994)

9.04.055 Multiple applications.

In the event that there are less gaming licenses available than there are applications, the license shall be granted to the qualified applicant whom the city council, in its sole discretion, determines best meets the following criteria:

A. Least disruptive location to the residents of the city;

B. Greatest likelihood of faster processing of application, as indicated by time of submittal of application;

C. Best program for policing the operation;

D. Greatest income potential for the city;

E. Best potential for quality operation; and

F. Any other considerations that will protect the public interest. (Ord. 94-001 (part), 1994)

9.04.060 Licenses—Applications.

Any person proposing to commence or conduct a gaming club shall file an application with the city clerk and city manager, supply the information and pay the fees as provided herein. Each such application shall be verified and made under penalty of perjury. Each application shall set forth, in addition to such other information as the city manager may require, the following information:

A. The date of the application.

B. The true name of the applicant.

C. The status of the applicant as being an individual, firm, association, co-partnership, joint venture, corporation, or other entity.

D. If the applicant is an individual, the residence and business address of such applicant, and his or her social security number and driver’s license number.

E. If the applicant is other than an individual, the name, residence, and business address of each of the co-partners or members of the firm, co-partnership, trustor, trustee or joint venture and the name, residence and business addresses of each of the officers and directors of the association or corporation applicant.

1. The name of any corporation applicant shall be set forth exactly as shown in its articles of incorporation charter, together with the state and date of incorporation, any identification numbers or other identifying designations, and the names and addresses of all officers, directors and shareholders of the corporation.

2. An application submitted by a partnership shall identify each of the partners, including limited partners. A license issued to a partnership shall be issued in the name of all the general partners. If the applicant is a limited partnership, it shall furnish a copy of its certificate of limited partnership as filed with the county clerk. If one or more of the partners is a corporation, the provisions of this subsection pertaining to corporation applicants shall apply.

F. The names and addresses of all proposed managers.

G. A description of the building and the proposed location of the business for which the license is sought.

H. The games proposed to be played shall be designated and described in detail.

I. The maximum and minimum number of tables or other units to be placed, employed, or used for the playing of card games.

J. A copy of the proposed house rules for players.

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

L. A complete description and layout of all security measures and plans proposed for the gaming club (both physical and operational), which shall be a confidential document and not open to public inspection.

M. A complete description of all plans, both physical and operational, for the handling of money, including but not limited to provisions, if applicable, for: (1) Purchase of chips and protection against counterfeit chips; (2) Procedures for bringing money to or removing money from the premises.

N. An independent evaluation of the internal accounting and administrative control system proposed. The city shall have the right to review and approve the accounting procedures of each licensee before such accounting procedures can be put into effect.

O. An authorization for city to obtain any available criminal offender record information relating to applicant, and a further authorization for the updating of such information on an annual basis if a license is granted.

P. A statement that such building will conform to all the laws of the state and the city for uses of the nature proposed.

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

R. A statement that the applicant has read the provisions of this chapter and particularly the provisions of this section and understands the same.

S. A full and complete financial statement of the applicant, whether it is 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. 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 or administration of the provisions of this chapter, or as may be required by the California Public Records Act.

T. A statement that the licensee shall make the premises and gaming club records available for inspection to the chief of police, finance director or designated representatives thereof, at any time and without first obtaining a search warrant.

U. A statement that the applicant understands that the application shall be considered by the city council only after a full investigation and report has been made by the city manager and/or designees, and that any approval will be conditioned upon the owner obtaining registration under the Gambling Control Act prior to commencing gaming club operations. No license shall become effective or operative in any manner until and unless the applicant and all pointholders hold a valid registration issued by the Attorney General.

V. A statement containing the indemnity provisions set forth in Sections 9.04.090 and 9.04.470 of this chapter.

W. A statement that the applicant understands and consents to the inclusion of any criminal convictions or arrests in any report to the city council that the chief of police deems relevant and necessary concerning any person named in the application, together with a signed authorization by applicant and all pointholders authorizing release of information to the San Pablo police department.

X. Such other information as may be required by the city.

Applicants for licenses, and their managers and point-holders, and applicants for work permits under the terms of this chapter, accept all risks of 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, disapproving, suspending, revoking or taking any action regarding or against any application, license or work permit, and a waiver of any claims for damages against the city or its agents resulting therefrom shall be presumed upon the filing of an application. (Ord. 99-001 § 1; Ord. 98-002 § 1 (part); Ord. No. 94-001, Enacted, 04/12/94)

9.04.070 Application fee.

Each application for any license shall be accompanied by an application fee of five thousand dollars which shall be retained by the city for the payment of the costs of investigation, processing of the application, and public hearing and notice costs, and which shall be non-refundable. The amount of such fee may be increased or decreased from time to time as may be necessary by city council resolution. If such fee is insufficient to cover reasonable investigatory costs, the city may charge and applicant shall pay an additional amount sufficient to cover the cost of investigation. (Ord. No. 94-001, Enacted, 04/12/94)

9.04.080 Business license taxes.

A. Imposition of Business License Taxes. It is unlawful for any person issued a license pursuant to this chapter to operate a gaming club without paying the business license taxes hereinafter prescribed. The business license taxes imposed herein are intended for revenue only and are not regulatory fees for the cost of administering the provisions of this chapter. They shall be general taxes deposited in the city’s general fund. The amount of business license taxes received by the city under this section shall be a public record.

1. The license tax shall be paid monthly to the city. Payment for any calendar month shall be made on or before the tenth day of the succeeding calendar month. The sum of twenty-two thousand five hundred dollars shall be paid to the city when the license is issued, which sum shall be applied against the monthly license tax due for the first month of operation. This advance payment shall be the absolute property of the city and shall not be refunded or prorated for any reason.

B. Business License Tax: Amount.

1. Commencing on the first day of operation, licensee shall pay to the city a monthly business license tax as set forth below; provided, however, that regardless of the total monthly gross revenue, the minimum monthly tax shall be at least $91,500: (a) Total monthly gross revenue of First $0 to $1,000,000 shall pay a monthly tax of 10.0% plus $7,500; (b) Total monthly gross revenue of Next $1,000,001 to $2,000,000 shall pay a monthly tax of 12.5%; (c) Over $2,000,000 shall pay a monthly tax of 15.0%.

2. Following the first twelve months of operation, the same tax rate shall apply; provided, however, that regardless of the total monthly gross revenue, the minimum monthly tax shall be at least ninety-one thousand five hundred dollars.

3. Should any tournament be held, ten percent of the total entry fees shall be included in addition to the total monthly tax specified above.

4. For any nongaming business operations 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 Section 5.04.220, as it may be adjusted or amended, for fixed places of business, or as set forth in any more applicable section, as determined by the finance director. All procedures set forth in Title 5 Chapter 4 of the San Pablo Municipal Code relating to business licenses shall be applicable to such nongaming operations.

C. Statement of Revenue. Each licensee shall file with the city before the tenth day of each calendar month a reporting form approved by the city manager, under penalty of perjury, showing the true and correct amount of gross revenue derived from the gaming club for the preceding calendar month. Such statement shall be accompanied by the payment of the correct amount of taxes due and owing in accordance with the provisions of subsection B of this section. Such sums correctly reflecting the monthly 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 subsection B of this section.

D. Audit of Reports.

1. Licensee shall arrange for a certified public accountant approved by the city manager to audit the books, documents, records and accounts relating to the gross revenues 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, or his designee, 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 certified public accountant for review.

2. In addition to the audit required above, the books, records, and accounts of any gaming club may be audited by the city at any time. Upon request of the auditor, licensee shall provide to the auditor copies of licensee’s state and federal income 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 in excess of two percent in any one month, the full cost of the 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 except in connection with the enforcement or administration of the provisions of this chapter, or as may be required by the California Public Records Act.

E. Refusal to File, Pay Fees or Taxes or Permit Inspection of Records. Any failure or refusal of such licensee to timely make and file any required statements, or to pay such fees or taxes 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.

F. Delinquent Business License Taxes—Penalties; Interest. Penalties for late payment shall be assessed in accordance with Section 5.04.210 of this Code.

G. Business License Tax a Debt—Attorneys’ Fees. The amount of any business license tax, 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 for the collection of any delinquent business license tax, penalties, interest and all administrative costs incurred in connection therewith, including attorneys’ fees.

H. Business License Taxes Not Refundable. In the event of the cessation of business by a licensee, whether voluntary or involuntary, no refund of any tax shall be made. (Ord. 98-002 § 3, 1998; Ord. 94-014, enacted 1/3/95; Ord. 94-001 (part), 1994)

9.04.090 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. No license shall be valid unless the licensee obtains and maintains a valid and current registration from the Attorney General pursuant to the Gambling Control Act. By applying for a license, the applicant agrees to a condition in the license granted that the licensee shall indemnify, defend and hold harmless the city and redevelopment agency, its officers and employees, from any and all claims, actions, judgments and damages, including but not limited to award of attorney fees, against the city and agency, its officers or employees, directly or indirectly related to issuance or validity of such license or any other permit required by law, or to the exercise of city’s Public Records Act discretion under this chapter or to the enforcement of Section 9.04.050. In addition to the above, the city council may impose specific conditions upon the license or other required permits which, in its discretion, it deems necessary to ensure compliance with provisions of this chapter and to protect the health, safety and welfare of employees, patrons, and the residents of the city.

B. A violation of any condition of any license or other permit 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. (Ord. 98-002 § 1 (part), 1998; Ord. 94-001 (part), 1994)

9.04.100 Investigations and reports.

A. The city manager shall cause the applicant, including all parties, officers and directors, all present and proposed managers and all pointholders to be investigated. An investigation shall also be made of the building and location where the applicant proposes to conduct such business or activity.

B. Concurrently with the filing of the application, the applicant, including all partners, officers, directors, managers and all persons proposing to have an ownership interest in the gaming club, shall be fingerprinted and photographed by the chief of police, and shall pay the applicable fees. The chief of police shall conduct such background criminal investigations as deemed necessary. Applicant shall authorize the Attorney General to release any and all information learned during its investigation of applicant to the city and authorize the Attorney General, its staff and investigators to discuss with the city any and all information learned during the registration process. Further, applicant shall provide city with copies of all registration applications and certificates filed with and issued by the Attorney General for the applicant, all pointholders, and all proposed managers.

C. Time of Filing Reports. All such reports shall be submitted to the City Manager within ninety days after the application has been filed. The city manager shall thereafter agendize the matter for a public hearing before the city council, as set forth Section 9.04.110. (Ord. 94-001 (part), 1994)

9.04.110 Granting and denying of application.

A. Consideration by City Council. Within forty-five days after the required reports have been submitted to the city manager, and if all required fees have been paid, the city council shall hold a public hearing on its intent to consider whether such license should be issued. The city manager shall cause to be given at least ten days published notice of such public hearing. At least ten days mailed notice shall also be given to the applicant of the time and place of such hearing; and to owners of real property within three hundred feet of the subject property as listed on the last equalized assessment roll.

B. Decision of the City Council. The city council in its discretion, shall either approve, conditionally approve, or deny an application for a license within thirty days after close of the public hearing. In the event that any required reports are not filed within the ninety day period, the city council may continue the public hearing or may act on the application without such reports and either grant, with or without conditions, or deny the application in the sole discretion of the city council; provided, that the city council may not deny the application based solely on the lack of any such report, if its absence is not the fault of applicant. (Ord. 94-001 (part), 1994)

9.04.120 Grounds for denial of application.

The city council shall have grounds for denial of an application for the issuance of any license under the provisions of this chapter in any of the following cases:

A. If any game for which a license is applied is unlawful under the laws of the state or under this chapter.

B. If a license is not available under the terms of the chapter.

C. If the applicant, any pointholder, or any proposed manager is under the age of twenty-one.

D. If the applicant, any pointholder, or any proposed manager makes a false, fraudulent or misleading statement or omission as to a material fact required to be revealed in any application submitted pursuant to the provisions of this chapter, or as to any other information presented or required as part of the application process.

E. If the applicant, any pointholder, or any proposed manager has been convicted of a crime, including sections of the Uniform Controlled Substances Act (Health and Safety Code Section 11000 et seq.), punishable as a felony.

F. If the applicant, any pointholder, or any proposed manager has engaged in an act involving dishonesty charged or chargeable as a criminal offense relating to:

1. the acquisition of an ownership interest in a gaming club; or

2. the real property or premises in which a gaming club is situated; or

3. the operation of a gaming club.

G. If the applicant, any pointholder, or any proposed manager has been convicted of any offense involving dishonesty.

H. If the applicant, any pointholder, or any proposed manager has engaged in bookmaking, loansharking or illegal gambling.

I. If the applicant does not, in the sole judgment of the city council, have the financial capability or business experience to operate a gaming club in a manner which would adequately protect its patrons and the citizens of the community.

J. If the establishment of a gaming club in the proposed premises would violate the zoning, fire, building or other regulations of the city, or would be inconsistent with the general plan.

K. If the application would result in substantial aggravation of crime problems or make law enforcement unduly difficult, or does not provide for a security force and security measures determined to be adequate for the size and nature of the business, in the sole discretion of the city council.

L. If the establishment of a gaming club would be detrimental to the public peace, health, safety and welfare.

M. If the establishment of a gaming club would be inconsistent with the purposes and provisions of this chapter and contrary to public interest. (Ord. 94-001 (part), 1994)

9.04.125 License amendment.

A. The terms and conditions of a gaming club license may be amended by the city council on application for amendment. Said application shall be subject to, and shall be processed in accordance with, the procedures set forth herein for an original application. The fee for such application shall be established by city council resolution. “Terms and conditions” of a license includes, but is not limited to, the location or size of a gaming club, the number of card tables the licensee is authorized to maintain, any conditions placed on the license by the city council or this chapter, and any representations contained in the application as to the operation of the gaming club.

B. A licensee seeking an amendment shall file an application with the city manager stating the specific terms and conditions that the licensee desires to change and the reasons therefor.

C. Amendment fees shall be paid to the city manager at the time the application is filed. The application for amendment shall not be deemed complete unless the licensee has paid the required fee. (Ord. 94-001 (part), 1994)

9.04.130 Licenses—Suspension and revocation.

Licenses are subject to revocation or suspension as provided in this chapter. Licenses are also subject to revocation or suspension upon a determination by the city council that grounds exist which would justify the denial of an application for such license if such application were then pending, or that the licensee or any pointholder of the licensee has:

A. Violated, or permitted, allowed or caused the violation of any provision of this chapter.

B. Permitted, allowed or caused any violation of any condition of approval imposed upon the issuance of such license.

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

D. Ceased operating the gaming club for a total of ninety days, whether consecutive or not, in any twelve month period. A license shall not be subject to revocation on this ground if the licensee’s premises are destroyed or damaged, or forced to close, by war, insurrection, strikes, riots, fire or other Acts of God, or by restrictions mandated by other governmental entities, enactment of new or supplemental state or federal laws or regulations or judicial interpretations of state or federal laws or regulations, as long as the licensee is proceeding with due diligence to restore the gaming club operation.

E. Failed to prevent the gaming club from causing a substantial adverse impact on surrounding properties due to criminal activity, noise, or parking overflow to the extent its operations constitute a public nuisance.

F. Had its registration under the California Gambling Control Act suspended or revoked.

G. A license shall also be subject to revocation if the gaming club for which the license was issued is not open for business and fully operational within one year from the issuance of the license. Such one year period shall be tolled for the time periods set forth in Section 9.04.040D of this chapter, if applicable. (Ord. 98-002 § 1 (part), 1998; Ord. 94-001 (part), 1994)

9.04.140 Suspension and revocation—Procedure.

Existing gaming club licenses may be suspended or revoked pursuant to the following procedures:

A. Notice. The city council may revoke or suspend any gaming club license after a hearing of which at least seven days notice shall be given to the licensee of the time, place and purpose thereof. Such notice may take the format of an order to show cause before the city council at a time, date and place stated, why the license should not be suspended or revoked. The order to show cause shall set forth the reasons or grounds upon which such suspension or revocation is proposed. Notice shall be deemed complete upon receipt.

B. Hearing. At the time set for such hearing, the city council shall hear the evidence presented by the city manager, purporting to show the grounds existing for suspension and/or revocation; thereafter, the city council shall permit the licensee and any other interested person to present such evidence as may be relevant to dispute the existence of such facts. Technical rules of evidence shall not apply.

C. Public Hearing; Subpoenas. The city manager or the city council may cause to be issued and served any subpoenas as they shall direct in accordance with the provisions of the laws of the state relating thereto requiring the attendance of any person deemed necessary.

D. Decision of City Council. If based upon the evidence presented, the city council finds that facts are presented which constitute grounds for revocation or suspension, it shall revoke or suspend the license. If it finds that such facts are not present, it shall dismiss the proceedings.

E. Divestment or Fine. In lieu of revocation or suspension, the city council may impose a fine not to exceed ten thousand dollars for each violation, and/or the city council may order the party deemed responsible for any such violation to divest him or herself from any ownership interest held, within one hundred twenty days. If divestment is not accomplished within one hundred twenty days, any income from the gaming club which would otherwise be due such party shall instead be paid by licensee to the city until divestment occurs. Such party shall still be obligated to divest and shall diligently continue to pursue divestment.

F. Modification. Notwithstanding any provision of this chapter to the contrary, the city council may, at any time it deems it desirable for the public health, safety, and welfare, modify the terms or conditions of the license, upon notice and hearing as set forth in this section. This subsection shall not be construed to prevent the city council from amending this ordinance or enacting new and different rules and regulations without complying with the procedures set forth in this section. (Ord. 94-001 (part), 1994)

9.04.150 Employee work permits.

A. The licensee shall keep on file with the police department, and on the licensed premises, as to each employee of the gaming club, a comprehensive list containing the following current information under penalty of perjury:

1. Residence address during the past five years;

2. Current occupation or employment;

3. Employment during the past five years;

4. Physical characteristics including age, date of birth, height, weight, and color of hair and eyes;

5. Driver’s license and social security numbers;

6. A history of all convictions for any felony or misdemeanor offense, other than traffic violations;

7. A current full face photo of each employee.

The information shall be made available on demand for viewing by the chief of police or designee or by the city manager or designee.

B. Any person wishing to be an employee in a gaming club shall obtain a work permit through the filing of an application with the police department. The form may vary according to the job classification. The application shall be complete in all respects. and shall include photographing and fingerprinting. The gaming club shall pay the applicable fees for such photographing and fingerprinting, and shall pay any additional processing fee, in an amount to be determined by resolution of the city council. The police department shall process the application and shall conduct such background investigations and state and local summary criminal history information checks as to enable it to determine whether to approve, conditionally approve (including issuance of a temporary permit) or deny the application. The applicant has the burden of proving his or her qualifications for the permit. The issuance of a conditional or temporary permit creates no vested right to the issuance of a full city permit, and the applicant retains the burden of proving his or her qualifications for such permit. The application for a work permit shall be denied where the chief of police or designee determines that there is good cause therefor. In determining whether “good cause” exists, the chief or designee shall consider whether:

1. The applicant has been convicted of any crime or offense within the last ten years punishable as a felony or involving moral turpitude, or has been convicted of the sale or possession for sale of a controlled substance, prostitution, pimping or pandering, or of a crime involving lotteries, gambling, larceny, perjury, bribery, extortion, fraud, theft or embezzlement, or has been convicted of any crime substantially related to the service or entertainment business;

2. The applicant has committed any act of dishonesty, fraud or deceit, or has engaged in bookmaking, loansharking or other illegal gambling activity, or has been convicted of an offense involving such activities, within the last ten years;

3. The applicant is not a person of good character, integrity, honesty; or of financial reliability, as demonstrated by his or her business and credit history;

4. The applicant has made any false statement in the application or as to any other information presented as part of the application process, submits an incomplete application, or omits any material fact;

5. The applicant has been refused, or has had revoked, any gambling, gaming or entertainment license or permit by a governmental agency within five years of the date of the application, or has had his or her employment with any other gaming club in the past five years terminated for negligence or misconduct; or

6. Cause for denial of a work permit exists under Business and Professions Code Section 19850(a), paragraphs (3) through (6), inclusive.

C. 1. The chief of police or designee shall render a written decision on an application within fourteen days following submittal of the background investigation to the chief or designee. A decision denying an application shall include a statement in general terms as to the reasons for the denial. The decision shall be effective upon mailing. The identity of persons who have furnished information purporting to disclose violations of the law shall be privileged and confidential upon a determination by the chief or designee that disclosure is against the public interest because the need to preserve confidentiality outweighs the need for disclosure in the interest of justice.

2. If an application is denied, the applicant may appeal such denial by requesting city manager review, provided such request is made in writing and filed with the city manager, along with the payment of an appeal fee established city council resolution, within ten days following the effective date of the denial. Failure to timely file an appeal and pay the appeal fee shall waive the right to appeal and constitute a failure to exhaust administrative remedies. Where such appeal is timely filed, the city manager shall review the police department’s decision and any written materials that may be submitted by applicant, and shall mail or personally serve a notice of decision to the applicant within ten days following the written request for review.

3. The issuance of any work permit is deemed conditioned upon approval by the State Division of Gambling Control. The Division shall be allowed to object to the issuance of any permit, and if such objection is filed, the work permit shall be deemed denied by the state.

D. A work permit shall be valid for a period of two years of the date of issuance. It shall be renewable at the end of each second year upon the filing of an application for renewal and the payment of a renewal fee in an amount established by resolution of the city council. If a renewal application has not been received by the city within thirty days after the expiration date of the permit, the applicant must comply with procedures set forth in Section 9.04.150B of this chapter.

E. Each employee, except those specifically exempted by the city manager, at all times while acting within the scope of employment, shall wear in a prominently visible place upon his or her person an identification card, permit, badge or license in such form as shall be prescribed by the chief of police. Undercover security personnel and persons issued work permits to act solely as proposition players need not wear such identification badge in a prominently visible place, but shall carry it upon their person at all times. For the purposes of this subsection, the owners of a licensed gaming club, and any director, officer, or partner of such owner, and any manager, shall be deemed to be employees.

F. All employees working within the gaming areas of the gaming club must be at least twenty-one years of age as of the date such employment starts; prospective employees may file an application for a work permit prior to their twenty-first birthday, and a permit may be approved to be effective on such birthday. As to all other employees working in non-gaming areas of the gaming club, applicable state and federal laws regarding age and working hour restrictions shall apply, provided that any such employees less than twenty-one years of age shall not be permitted to work in any gaming area. (Ord. 99-001 § 2; Ord. 98-002 §§ 5—7, 1998; Ord. 95-008 §§ 4—6, 1995; Ord. 94-001 (part), 1994)

9.04.160 Work permits—Suspension and revocation.

A. A work permit shall be suspended or revoked under the following circumstances:

1. Commission of any act which would be grounds for denial of a work permit;

2. Material violation of any conditions imposed in granting such permit, or of any of the requirements of this chapter;

3. For any reason set forth in Business and Professions Code Section 19912.

B. The permit shall be suspended or revoked by the police chief or designee. The chief shall send notice of such action, including the reasons therefor and the right to appeal to the city manager, to the employee and licensee. If the notice reflects the chief of police’s determination that the permittee has engaged in such conduct as to provide reasonable cause to believe that his or her continued work in a gaming club would constitute an immediate threat of continued violations under this chapter or of fraudulent or dishonest conduct, or is necessary for the immediate preservation of the public health, safety and welfare, then pending final decision on the suspension or revocation, the licensee shall not allow the employee to work on the premises. The employee may appeal the suspension or revocation by filing, within ten days of the date such notice was served, a request for a hearing with the city manager. The request for a hearing shall be accompanied by payment of an appeal fee in an amount established by resolution of the city council. If no written appeal is filed with the city manager within the time allotted, and/or the appeal fee is not timely paid, the decision of the chief’ shall be final and the right to appeal shall have been waived. Failure to timely file an appeal and pay the appeal fee shall constitute a failure to exhaust administrative remedies.

C. The city manager shall provide the appellant at least ten days notice of the date and place for the appeal hearing. The city manager may delegate to a hearing officer the authority to conduct the hearing, make factual determinations, and render a written decision recommending action to the city manager. At any such evidentiary hearing, technical rules of evidence shall not apply. Hearsay evidence may be used for the purpose of supplementing or explaining other evidence, but shall not be sufficient in and of itself unless it would be admissible over objection in civil actions. (Ord. 99-001 § 3; Ord. 98-002 § 8, 1998; Ord. 95-008 §§ 7, 8, 1995; Ord. 94-001 (part), 1994)

9.04.170 Transfer and assignment of licenses.

A. Except as otherwise indicated herein, any transfer or assignment of any license shall be considered for all purposes in the same manner as a new application for a gaming club license in the city, and all the provisions of this chapter applicable to new and original applications shall apply, provided, however, that neither mailed notice to adjacent property owners, nor published notice, need be made. Such a transfer shall be made in accordance with the provisions of sections 9.04.180 through 9.04.210.

B. The provisions of this section and of sections 9.04.180 through 9.04.210 shall not apply to any application for or notification of a transfer or assignment by any pointholder who is a member of a bona fide owner operating under a duly issued license to conduct a gaming club in the city to a then presently existing pointholder; provided, however, that any transfer of ten points or more, even to an existing pointholder, shall require city approval pursuant to Sections 9.04.180 through 9.04.210. (Ord. 94-001 (part), 1994)

9.04.180 Pointholders—Applications for sale or transfer of points.

A. Except as otherwise provided in this chapter, it is unlawful for any pointholder or any other person having any interest whatsoever or at all in the ownership of a gaming club, whether legal or equitable, or as trustor or trustee, or of whatsoever kind or character, to transfer such points and/or interest without the consent and permission of the city council. No transfer or assignment of any point or interest will be recognized by the city unless the transferee or assignee has fully complied with the requirements of the Gambling Control Act of the state and all the applicable rules and regulations relating to the transfer and ownership of points or interests in a gaming club as promulgated by the Attorney General of the state.

B. Any person desiring to sell, transfer, assign, or otherwise hypothecate any point or interest, or fraction thereof, in a gaming club shall file with the city manager a written application for permission to transfer such interest. Each such application shall set forth, under penalty of perjury, in addition to such other information as the city manager and/or the city council may require, the following information:

1. The date of the application;

2. The true name of the applicant and proposed transferee;

3. The status of the transferee as being an individual, corporation, association, co-partnership, joint venture, trustor, trustee, or other entity;

4. The residence and business address of the transferee, if an individual;

5. If the transferee is other than an individual, the name, residence, and business address of each of the co-partners or members of the firm, co-partnership, trustor, trustee, or joint venture and the names and residence and business addresses of each of the principal officers and directors of the association or corporation applicant;

6. The number of points and/or the nature of interest sought to be sold, transferred, assigned, or otherwise hypothecated.

C. The application required by this subsection shall be confidential, and the documents containing such information shall be confidential and shall not be open to public inspection except in connection with the enforcement or administration of this chapter, or as may be required by the California Public Records Act. (Ord. 98-002 § 1 (part), 1998; Ord. 94-001 (part), 1994)

9.04.190 Pointholder investigation required.

Whenever an application for sale or transfer of points has been filed with the city, the city manager shall promptly and diligently make a full and complete investigation of the transferee(s). Concurrently with the filing of the application, the transferee shall be fingerprinted and photographed by the police department, and shall pay all applicable fees. (Ord. 94-001 (part), 1994)

9.04.200 Pointholder license fees.

Each such transfer application shall be accompanied by a processing fee payable in advance, as set by resolution of the city council, in an amount sufficient to cover the cost of the investigation and of processing the application. The fees set forth pursuant to this section shall be the property of and be retained by the city, whether the application for transfer is granted or denied. (Ord. 94-001 (part), 1994)

9.04.210 Pointholder granting or denying of application.

A. Consideration by City Council. Whenever an application for such a transfer is presented to the city council, the city council shall consider such application on the same basis and subject to the same hearing procedures as are applicable to a new license application; provided, however, that mailed notice to adjacent property owners, and published notice, need not be made.

B. Decision of the City Council. The city council may in its discretion either approve, conditionally approve, or deny the application. (Ord. 94-001 (part), 1994)

9.04.220 Pointholder investigations—Updating.

All pointholders holding points in any gaming club, as well as the general partners of such gaming clubs, whether or not they hold any points in such clubs, shall have their background investigations updated annually and regularly thereafter pursuant to a schedule established by the city council. A fee in an amount to be set by city council resolution for each pointholder so investigated shall be paid to the city by the respective gaming clubs or licensees on an annual basis to cover the costs of such investigations. (Ord. 94-001 (part), 1994)

9.04.230 Application of provisions to continuing pointholders.

Any pointholder who has not previously submitted to the procedure required under section 9.04.220 shall file, as a prerequisite to the continued holding of an ownership interest, the application to be investigated, pay the fee, and be reviewed by the city council as provided for persons applying for new ownership interest. Until such time as the investigation has been completed, no financial returns from the operations of the gaming club shall be paid to the pointholder. If the city council denies any application, within six months after the receipt of a notice of such denial, said owner shall divest himself or herself of such ownership interest. (Ord. 94-001 (part), 1994)

9.04.240 Pointholder divestment.

A. Any pointholder shall divest himself or herself of such ownership interest within one hundred twenty days after a notice of divestiture is served on such person by the city pursuant to such person’s final conviction of a misdemeanor involving moral turpitude or a felony. A plea or verdict of guilty, or a conviction following a plea of nolo contendere to a misdemeanor involving moral turpitude or a felony shall be deemed to be a final conviction within the meaning of this section, unless the conviction is appealed to a higher court, in which case the judgment and verdict of that court shall constitute the final action pursuant to which notice of divestiture shall be served if the conviction is affirmed. Within thirty days after the service of a notice of divestiture, the person or persons subject to such notice (appellant) may request in writing a hearing before the city council to appeal the notice and request a waiver of the divestiture requirement, including transfer to a trustee. A hearing shall be scheduled before the city council within thirty days after the receipt of the appellant’s written request. Upon the conclusion of the hearing, the city council may disregard the appellant’s conviction or take other modifying steps if it is found and determined by the city council that mitigating circumstances exist and that the public welfare will be adequately protected. In making such determination, the city council shall consider the following factors:

1. The type, nature and extent of the pointholder’s interest, including the involvement, if any, in the operations of the gaming club;

2. The nature, time, and seriousness of the offense;

3. The circumstances surrounding the conviction;

4. The age of the person at the time of the conviction;

5. The presence or absence of rehabilitation or efforts at rehabilitation;

6. Contributing social and environmental conditions;

7. The record of the proceedings leading to the conviction;

8. The financial stability of the pointholder, including his or her personal history, reputation for habits, and traits of character and moral background; and

9. Such other factors deemed relevant by the city council in determining the status of the pointholder.

The decision of the city council shall be final and conclusive.

B. No person required to divest a gaming club related interest pursuant to an order of divestiture shall transfer the same to his or her spouse, child, sibling, parent or to his or her spouse’s child, sibling or parent.

C. Each day of noncompliance with a notice of divestiture shall constitute a separate and complete offense. In addition, the city attorney may invoke appropriate civil remedies available to enforce compliance. (Ord. 94-001 (part), 1994)

9.04.250 Corporate pointholders.

If any pointholder is a corporation or similar entity, the licensee shall keep on file with the city manager at all times a current list showing the names and addresses of all officers, directors and shareholders of such corporation or other entity. (Ord. 94-001 (part), 1994)

9.04.260 Pointholder death.

A. Upon the death of any pointholder, the pointholder’s interest in the license shall be transferred in accordance with Sections 9.04.170 through 9.04.210.

B. Notwithstanding the provisions of Section 9.04.120C, the city council may approve a transfer to an heir under the age of twenty-one, to be held in trust. (Ord. 94-001 (part), 1994)

9.04.270 Rules and regulations.

A. Established. Rules and regulations governing the operation of gaming clubs are established. The city council reserves the right to establish further rules or amend these rules by resolution of the city council. All such rules and regulations shall have the force of law and any violation thereof shall be considered a violation of this chapter and a ground for revocation or suspension proceedings.

B. Tournaments.

1. The conduct of established tournaments shall be permitted for those games otherwise permitted by this chapter and for no others;

2. Prior to licensee’s commitment to host any tournament, and in any case at least fourteen days prior to commencement of any tournament, licensee shall submit to the city manager a full set of rules, regulations, terms and conditions to be used in regulating or otherwise governing the operation and activities of any such tournament. The city manager or designee shall have the power to disapprove any tournament within seven days after actual receipt of such information.

C. Physical Arrangements.

1. No gaming club shall operate or maintain in use more than the maximum, or less than the minimum, number of tables allowed in the license;

2. 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 unless specifically authorized by the license or any permit issued by the city, or by the city manager upon good cause shown;

3. During all hours of operation, the outside doors to the gaming club and the main doors into the gaming room must be unlocked and accessible to the general public;

4. The gaming areas of the gaming club shall be separated from other activities on the premises;

5. Any and all parts of a gaming club shall be open for inspection during all hours to the city manager or designee, without a search warrant;

6. A gaming club shall be open for inspection during all hours to the personnel of the appropriate law enforcement agency without a search warrant.

D. Operations Procedures. No licensee, agent or employee of a licensee, or a person to whom a work permit has been issued shall:

1. Allow or permit money, as opposed to tokens, chips or other representatives of money, to be used as ante or bet in any legal game in the gaming club, except that players approaching a table for the first time may be allowed to use money where they are unable to immediately convert to tokens or chips. In such cases, all money played shall be converted immediately after the playing of such hand;

2. Extend credit or allow credit to be extended for gambling purposes unless such practice is authorized by Section 9.04.270J and state law;

3. Act in the capacity of, or employ any person to act in the capacity of a proposition player, unless such proposition player plays with his or her own money. It is unlawful for licensee to advance or loan any money to proposition players for the purpose of gambling;

4. Knowingly permit any person who is in a state of intoxication, or under the influence of an unlawful substance in any area of the premises;

5. Permit any person under the age of twenty-one to enter a gaming room or area unless accompanied by an adult and for the purpose of accessing other areas of the gaming club;

6. Fail, neglect or refuse to exhibit their licenses or work permits on demand of any law enforcement officer, or, in the case of a work permittee, fail, neglect or refuse to wear such permit or badge as identification in a conspicuous place attached to his/her clothing while performing his/her duties for the licensee, if so required. Undercover security personnel and employees acting solely as proposition players shall not be required to wear such permit or identification in a conspicuous place;

7. Permit any person playing in any of the games licensed by this chapter to make any individual bet or wage in excess of the maximum bets set forth for the particular game as posted in the club except as allowed in a duly authorized tournament;

8. Allow any person to wager any sum in excess of the value of the chips or other playing tokens which such person has purchased from the gaming club, except as permitted by Section 9.04.270(D)(1)

E. Posting Requirements. There shall be posted in conspicuous places in the gaming club premises the following:

1. The wagering limits, minimum buy-in, time charged, or other fee charged players for the use of the tables;

2. A set of detailed house rules applicable to the games played, which shall be posted in the form of a printed rule book and made available in English, Spanish, Vietnamese, Korean and Mandarin and/or Cantonese-Chinese;

3. A copy of the current valid license and the licensee’s current gaming registration certificate issued under Gambling Control Act;

4. The dollar equivalents of any chips, tokens or other representatives of money;

5. A notice stating that a copy of the ordinance codified in this chapter is available for inspection;

6. A notice stating the hours during which the establishment will remain open for business.

F. Personal Responsibility of Licensee.

1. The operation of the gaming club shall be the responsibility of the licensee personally (if an individual or partnership is the licensee), or the personal responsibility of the officers and directors of the licensee (if a corporation is the licensee). The operation of the gaming club shall also be the personal responsibility of any and all managers of the licensee that are present during gaming club operations.

2. Either the licensee (if such licensee is an individual), or a manager of the licensee shall be present on the gaming club premises at all times during the conduct of its legal gambling or gaming operations.

3. Not later than July 1st of each calendar year, the licensee shall execute under penalty of perjury and file with the city manager a declaration stating the following:

a. A list of the minimum buy-in, time charged, or other fee charged players for the use of the tables;

b. A set of the then current posted detailed house rules applicable to the games played;

c. That all taxes have been paid;

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

G. Deleted.

H. General Requirements.

1. It is unlawful for any person as an operator, agent, and/or employee of any duly licensed gaming club to assign, arrange for, or in any other manner sublet to or subcontract with, directly or indirectly, with or without consideration, any person not having a valid unrevoked license, to conduct any card game at a table at the gaming club. It shall also be grounds for the revocation or suspension of any license issued to any gaming club to permit the farming out, assigning, or subletting of any game lawfully permitted pursuant to the provisions of this chapter;

2. Rules of play for all games permitted by law, including tournaments, shall first be filed with and approved by the chief of police, and shall be conspicuously posted at locations approved by the chief of police;

3. Seat rental fees shall be reviewed and approved by the city and shall be conspicuously posted at locations approved by the chief of police;

4. No-limit and high-limit bets may be allowed in designated high-limit game areas and during authorized tournaments. In no other case shall individual bets higher than three hundred dollars be allowed in poker games, nor bets higher than five hundred dollars be allowed in California games;

5. Licensees holding or obtaining licenses under the provisions of this chapter shall thereby automatically agree to be bound by and observe each and all of the terms, conditions and provisions of this chapter and of the rules and regulations established thereby relating to such licenses;

6. No licensee shall operate or use any table or unit or manage, conduct or carry on any business or activity licensed by this chapter after the time that such license issued by the city has been or is revoked or suspended;

7. Each and all of 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 applicable laws.

I. Interested Parties. Any person who is an operator, owner, principal, employee or agent of a gaming club permitted under this chapter shall be an “interested party” in such gaming club. It is unlawful for any person to participate in any game in a gaming club in which such person is an interested party if:

1. There are more than five interested parties seated at the table at which such game is being played; or

2. There are more than seven players participating in the game.

J. Check Cashing and Credit. Unless otherwise restricted by resolution or the terms of its license, any licensee under this chapter is expressly authorized to extend credit for gambling purposes to the fullest extent permitted by state law. Acceptance of a personal check that is deposited within one business day does not constitute an extension of credit.

K. Permissible Games. In no case shall any game be played in a gaming club unless and until the game has been approved by the city council by either license approval and/or resolution.

L. Hours of Operation. Any gaming club licensed under this chapter may operate twenty-four hours a day, unless shorter hours of operation are imposed by the city council by resolution or license should it determine that such regulation is necessary for the protection of the public welfare.

M. Gamblers Anonymous Literature. All licensees shall make literature published by Gamblers Anonymous easily available in a visible location in the cardroom. If literature published by Gamblers Anonymous is available in English, Spanish, Tagalog, Vietnamese, Korean, Mandarin, and/or Cantonese-Chinese, the licensee shall make such literature easily available.

N. Fee Collections. Licensee is authorized to collect fees from its patrons in the same manner as such fees were collected in the gaming club as of January 1, 1997, as authorized and in accordance with Section 337j(f) of the Penal Code. (Ord. 98-002 §§ 1 (part), 9—16, 1998; Ord. 96-002 § 2, 1996; Ord. 95-008 §§ 9—15, 1995; Ord. 94-001 (part), 1994)

9.04.280 Alcoholic beverages.

A. Alcoholic beverages may be sold, dispensed, consumed, or permitted in licensed gaming clubs in accordance with applicable state and local laws and regulations.

B. No on-duty employee of a gaming club shall consume alcoholic beverages or controlled substances, whether on or off the premises.

C. No complimentary or reduced price alcoholic beverages shall be offered by the gaming club on the gaming floor or in violation of state law.

D. No licensee or other person in charge or control of any card game at a gaming club shall permit any person to play in any game licensed by the provisions of this chapter at any time while such person appears to be, or is, under the influence of any alcoholic beverage or controlled substance.

E. No licensee 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. (Ord. 94-001 (part), 1994)

9.04.290 Record keeping and audits.

A. The licensee shall keep and maintain all gaming club books, documents, records and accounts (whether recorded in printed form or as electronic media) in accordance with recognized business accounting principles. Such books, documents, records and files must be retained for a period of at least seven years and must be available for inspection or audit at the demand of the city. Any and all video tape recordings made for security at the gaming tables shall be marked with the date and time made and shall be kept, in an unaltered state, for a period of twenty-four hours and any “cage” tapes shall be retained for seven days, unless longer or shorter periods of time are ordered by the chief of police. All tapes must be made available to any law enforcement agency for duplication upon demand.

B. Nothing in this section shall limit the city’s right to inspect or audit the books, documents, records and accounts of the licensee, at any time, relating to items other than gross revenues, and city expressly reserves that right through issuance of the license.

C. Any information obtained pursuant to the provisions of this section or any such statement filed by the licensee shall be deemed confidential and shall not be subject to public inspection except in connection with the enforcement or administration of the provisions of this chapter, or as may be required by the California Public Records Act. (Ord. 94-001 (part), 1994)

9.04.300 Loans.

The licensee shall report to the city council all loans received by it within ten days of execution of final loan documents. The information shall include the name and address of the lender and the amount and terms of the loan. Any default by licensee resulting in such lender obtaining a direct or indirect financial interest in the gaming club shall be treated and processed in accordance with the provisions of Sections 9.04.170 through 9.04.210. (Ord. 94-001 (part), 1994)

9.04.310 Cheating 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 to the contrary:

A. “Blind cut” or “false cut” means a maneuver which appears to cut the deck, but does not in fact do so.

B. “Blind shuffle” means to false shuffle, or to give the deceptive impression of intermixing playing cards, while actually retaining the same sequence of all or a group of cards.

C. “Burn” is a discard in accordance with the rules of the game, made before the draw when playing draw poker.

D. “Capping the deck” means to place cards which should not be there on to the top of the deck.

E. “Cooler” means a deck of cards, secretly prearranged in a known sequence or marked to be substituted for the deck in play.

F. “Daubing” means to mark cards by applying a faintly visible substance to the back of the cards.

G. “Greek deal” or “second bottom” means to deal a card which is second from the bottom of the deck.

H. “Hand mucking” means the surreptitious switching of cards from those that are dealt to a player.

I. “Hold-out” means a mechanical device used for the purpose of surreptitiously switching or retaining cards.

J. “Hopping the cut” means to surreptitiously nullify the cutting of the deck.

K. “Middle dealing” means to deal a card from the center section of the deck.

L. “Punching” means to mark the back of the cards by creating a dimply or indentation thereon.

M. “Roughing fluid” means a liquid chemical applied to the back of the cards for the purpose of marking them by roughening the surface.

N. “Run-up” or “stacking” or “stocking” means to shuffle the cards in such fashion as to surreptitiously arrange the sequence of known cards.

O. “Sanding” means to mark cards by applying an abrasive substance to the cards.

P. “Shiner” means a mirror or other reflecting device used for the purpose of enabling a player to see cards which the player is not entitled to see under the rules of the game being played.

Q. “Slick sleeve” or “mohair sleeve” means a long sleeve on a clothing garment to assist in holding out a playing card.

R. “Slug” means a group of cards.

S. “Transmitter” means an electronic or radio device used for the purpose of transmitting signals or information to another player, who receives such signals or information by use of a “receiver.”

T. “White flash” means a form of daubing whereby a chemical is used to create a “white on white” marking on the back of the cards. (Ord. No. 94-001, Enacted, 04/12/94)

9.04.320 Cheating techniques generally.

It is unlawful for any person or persons to use any of the cheating techniques prohibited by this chapter, whether or not such techniques are successful. The licensee or management shall immediately notify the police department upon the detection of any person(s) suspected of cheating. (Ord. No. 94-001, Enacted, 04/12/94)

9.04.330 Management cooperation with surveillance personnel.

It shall be the responsibility of the licensee, management and their employees to fully cooperate with gaming club surveillance and protection personnel in the detection, apprehension and identification of those persons involved in cheating or fraudulent accounting practices. Management shall retain and deliver to the police department as evidence all playing cards and implements suspected of involvement in cheating. (Ord. No. 94-001, Enacted, 04/12/94)

9.04.340 Dealing other than top card.

It is unlawful for any person as a player or dealer to deal, draw, distribute, or burn any playing cards other than the top card of a deck. The “top card” is defined as the uppermost face down card of a face down deck. It is therefore unlawful to deal or cause to be dealt what is known as a second, bottom or to engage in greek dealing or middle dealing. (Ord. No. 94-001, Enacted, 04/12/94)

9.04.350 Stacked deck.

It is unlawful for any person as a player, dealer, employee or agent to shuffle or cause to be shuffled any playing cards that are to be used or are being used in a licensed card game, other than in a random manner. It is 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 as an effort to circumvent a random mixing of the playing cards. Any blind shuffle, run-up, stacking or stocking of the deck to gain an unfair advantage in play, whether or not an advantage is gained, is prohibited. (Ord. No. 94-001, Enacted, 04/12/94)

9.04.360 Concealed cards.

It is unlawful for any player or dealer to palm, hold-out, or conceal any card or cards during a card game, whether by sleight of hand, mechanical apparatus, or by clothing such as a slick sleeve. It is also 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. The deceptive practices known as hand mucking, capping the deck, introducing additional cards into a game, or switching the deck with a “cooler” are prohibited. (Ord. No. 94-001, Enacted, 04/12/94)

9.04.370 False cut.

It is unlawful for any person to use any technique in a card game, designed to accomplish a “blind” or false accede, or to use a fraudulent technique 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. (Ord. No. 94-001, Enacted, 04/12/94)

9.04.380 Marked cards.

A. It is 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 licensed game, or when such cards are in play. It is unlawful to knowingly use any altered or marked cards in a card game. “Marking and altering”, as used herein, includes sanding, daubing, which flash, white on white, punching, adding to, removing from, or blocking out the existing design whether on the fact, backside, or edge of any card or cards.

B. Any deliberate crimping, warping, bending, cutting, trimming, shaving, or alteration by any means that would or may cause an advantage for any player over other players, whether or not such advantage is gained, is unlawful. (Ord. No. 94-001, Enacted, 04/12/94)

9.04.390 Mechanical devices.

The use of any mechanical or electrical apparatus or other device so as to gain any advantage, or to gain information that would enable a player or dealer to deceive others in prohibited. Such devices not limited to, hold-outs, table bugs, shiners, transmitters, receivers, punches, chemical solutions, shading, roughing fluids, inks or dyes. (Ord. No. 94-001, Enacted, 04/12/94)

9.04.400 Aiding and abetting.

It is unlawful for any person to knowingly aid or abet another in any cheating action prohibited by this chapter. (Ord. No. 94-001, Enacted, 04/12/94)

9.04.410 Police department’s responsibility.

The police department, upon being notified by gaming club personnel or game surveillance personnel that a person or persons are being detained for cheating at play, shall respond to the gaming club. The police department shall ascertain the identity of those involved in the cheating, the circumstances involved and decide what police action, if any, is deemed appropriate. The police department shall assist as legally required in any citizen’s arrest. (Ord. No. 94-001, Enacted, 04/12/94)

9.04.420 Removal of persons from gaming club premises.

A. A gaming club licensee shall remove any person from premises licensed for use as a gaming club if, on the premises, that person:

1. Engages in disorderly conduct, as defined in Section 647 of the Penal Code; or

2. Is under the influence of any intoxicating liquor or drug; or

3. Is mentally incapacitated to the extent that such person cannot care for himself or control his actions; or

4. Is boisterous, or is otherwise offensive to other persons; or

5. Commits any public offense.

B. Except as provided in Section 9.04.430(a)(4), removal of a person from the premises pursuant to this section carries no presumption that the person is within the class of persons defined as “undesirable persons” in Section 9.04.430. (Ord. No. 94-001, Enacted, 04/12/94)

9.04.430 Exclusion of undesirable persons.

A. To the extent allowed by law, a licensee shall exclude from all or any portion of the premises any person who is determined to be “undesirable” within the meaning of this section. For the purposes of this section, the following persons shall be deemed to be “undesirable”:

1. Persons who have engaged in any act of, or who have been convicted of, bookmaking or illegal wagering; or

2. Persons who have engaged in acts prohibited by this chapter, with respect to cheating; or

3. Persons who have been convicted of a violation of this chapter with respect to cheating; or

4. Persons who have been removed from the premises pursuant to Section 9.04.420(a) on more than one occasion; or

5. Persons whose presence is inimical to the interests of the licensee.

B. For purposes of this section:

1. “Bookmaking” includes, but is not limited to, any act prohibited by Section 337a of the Penal Code or by Section 19595 of the Business and Professions Code;

2. “Illegal wagering” includes, but is not limited to, any act prohibited by Sections 319 through 336, inclusive, of the Penal Code. (Ord. 94-001 (part), 1994)

9.04.440 Notice and order of exclusion.

The licensee shall inform any person excluded from the premises of the reason for the exclusion, and shall notify such person of the provisions of this chapter. Notification shall be made by the delivery to the person excluded of an order of exclusion, to which shall be attached a copy of this chapter. The licensee shall immediately notify the police department of the name of the person so excluded, the reason for the exclusion, and provide such other information the police department may require. (Ord. 94-001 (part), 1994)

9.04.450 Exclusion hearing.

Any person who is excluded from a gaming club may apply to the police department for a hearing on whether the ordinance is applicable. The hearing shall be held within thirty days after receipt of the application or as may otherwise be agreed. (Ord. 94-001 (part), 1994)

9.04.460 Enforcement of order—Civil remedy.

No person named in a final order of exclusion shall fail to comply with the terms of such order. A final order of exclusion shall if necessary be enforced by the licensee by means of a civil injunction proceeding in Contra Costa Superior Court. (Ord. 94-001 (part), 1994)

9.04.470 Indemnification.

Any licensee under this chapter shall be responsible for the security and safety of its patrons. In addition to the indemnity requirement set forth in Section 9.04.090, the licensee and licensee’s successors, heirs, and assigns, shall defend, indemnify, and hold harmless the city, its agents, officers, and employees from any claim, action or proceedings against the city, its agents, officers or 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 a gaming club. (Ord. 98-002 § 17, 1998: Ord. 94-001 (part), 1994)

9.04.480 Architectural and sign control.

All architectural plans for the licensed establishment shall be submitted to and approved by the city council and/or redevelopment agency board of directors prior to implementation. Plans for all exterior signs shall also be submitted and approved by the city council prior to the installation of any such signs. (Ord. 94-001 (part), 1994)

9.04.490 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 and corruption 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 to make any monetary contributions to city councilmembers, candidates for city council, or to their respective campaign organizations. (Ord. 94-001 (part), 1994)

9.04.500 Unlawful interests.

It shall be unlawful and a conflict of interest for any city councilmember, city employee or city official to directly or indirectly own, operate or have any interest, legal or equitable, in any gaming club licensed under this chapter. It shall be unlawful for any city councilmember, city employee or city official to directly or indirectly conduct business with or be employed in any manner whatever by a person or entity licensed under this chapter. (Ord. 94-001 (part), 1994)

9.04.510 Violations.

Any violation of the provisions of this chapter shall be deemed an infraction, unless deemed a misdemeanor by the city attorney when the complaint is filed with the clerk of the municipal court. (Ord. 94-001 (part), 1994)

9.04.520 Nonseverability with respect to taxes and fees—Severability with respect to remaining provisions.

A. The provisions of this chapter providing for the payment of business license taxes are not severable. Should the requirements of this chapter relating to the payment of business license taxes, as herein set forth 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, any licenses issued pursuant to this chapter shall likewise become null and void, and the playing of such games within the city shall thereupon become unlawful to the same extent as such playing was unlawful prior to the adoption of this chapter.

B. Except as provided immediately hereinabove with respect to business license tax payments to the city, if any remaining section, subsection, paragraph, sentence, clause or phrase of this chapter is for any reason held by a court of competent jurisdiction to be invalid, such decision shall not affect the validity of the remaining portions of this ordinance. The People declare that they would have passed this ordinance and each section, subsection, paragraph, sentence, clause and phrase thereof, irrespective of the fact that any one or more section, subsection, sentence, clause or phrase be declared invalid. (Ord. 94-001 (part), 1994)

9.04.530 Limitations of actions.

Any action or proceeding challenging the constitutionality or validity of this chapter shall be brought within sixty days following its adoption, according to the limitations period and procedures set forth in Chapter 9 of Title 10 of Part 2 of the Code of Civil Procedure (commencing with Section 860). No challenge to the constitutionality or validity of this chapter shall be made other than within the time and manner therein specified. (Ord. 94-001 (part), 1994)