Chapter 5.24
CARD GAMES

Sections:

5.24.010    Definitions.

5.24.020    Number of licenses – Number of tables.

5.24.021    Location of card clubs.

5.24.030    Licenses – Required.

5.24.040    Licenses – Applications.

5.24.050    Licenses – Applications – Investigations and reports.

5.24.060    Licenses – Applications – Granting and denial.

5.24.070    Licenses – Applications – Grounds for denial.

5.24.080    Licenses – Issuance.

5.24.090    Licenses – Expiration.

5.24.100    Licenses – Suspension and revocation.

5.24.110    Licenses – Transfer and assignment.

5.24.120    Licenses held by veterans organizations.

5.24.130    Pointholders – Approval required.

5.24.140    Pointholders – Applications – Approval or denial.

5.24.150    Pointholders – Notices of acquisition of points and transfers and assignments thereof.

5.24.160    Pointholders – Revocation of approval – Divestment.

5.24.170    Employees – Work permits – Required – Nontransferability.

5.24.180    Employees – Work permits – Applications – Approval or denial.

5.24.190    Employees – Work permits – Suspension and revocation.

5.24.195    Appeal of chief’s decision on employee work permits.

5.24.200    Employees – Notice of employment – Identification badges.

5.24.210    Rules and regulations.

5.24.211    Patron security and safety.

5.24.220    Alcoholic beverages.

5.24.230    Age limitation.

5.24.240    Seating arrangements.

5.24.250    Seat rental fees.

5.24.260    Convenience dealers.

5.24.270    Rules of play.

5.24.280    Playing area.

5.24.290    Signs.

5.24.300    Entertainment.

5.24.310    Inspections.

5.24.320    Investigations.

5.24.330    Reporting of loans.

5.24.340    Hours of operation.

5.24.350    Credit and check cashing.

5.24.360    Holding valuables for safekeeping.

5.24.370    Cheating prohibited.

5.24.380    Exclusion of persons from card clubs.

5.24.390    Fees and deposits.

5.24.400    Quarterly reports.

5.24.410    Audits of records.

5.24.420    Unlawful acts.

5.24.430    Games permitted.

5.24.440    Games not permitted.

5.24.450    Amendments.

5.24.460    Licensees responsible.

5.24.470    Confidentiality.

5.24.480    Violations – Penalty.

5.24.490    Nonseverability.

    Prior ordinance history: Ordinances 466, 471, 481, 484, 492, 555, 563, 575, 577, 655, 708, 751, 762, 777, 779, 784, 809, 840, 890, 903, 914, 927, 931, 936, 945, 957, 967, 969, 973, 976, 980, 992, 993, 1005, 1013, 1015, 1028, 1029, 1030, 1053, 1057, 1069, 1072, 1078, 1099, 1114, 1154, 1159, 1163, 1211, 1219, 1224, 1259, 1261, 1267, 1278 and 1296.

5.24.010 Definitions.

For the purposes of this chapter, unless otherwise apparent from the context, certain words and phrases used in this chapter are defined as follows:

“Applicant” means any person wishing to be approved by the city as having an ownership interest in a licensed card club or as being employed by a card club in any capacity.

“Card club” means a business or enterprise licensed under the provisions of this chapter for the playing of draw poker, panguingue, or any other game permitted under state law which has also been permitted by resolution of the council. “Card club” includes business activities incidental to the playing of such games, including, but not limited to, food, beverage and valet services.

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

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

“Conviction” means a plea or verdict of guilty or a conviction following a plea of nolo contendere.

“Employee” means every person who is an agent of an owner or who acts under the direction of an owner or other employee of an owner of any card club.

“Game” or “games” means draw poker, panguingue or any other game permitted under state law which has also been permitted by resolution of the council, whether or not such game involves the use of cards.

“License” means a license for operating a card club.

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

“Person” means and includes every person, shareholder, partner, firm, association, partnership, joint venture and corporation, whether acting as principal or agent, manage, clerk, employee, or servant, either for or on behalf of himself or for any other person, shareholder, partner, firm, association, copartnership, joint venture, corporation or otherwise and any individual, partnership, association, corporation or other entity owning, operating or proposing to operate a card club in the city.

“Playing cards” or “card games” means the playing of draw poker, panguingue or any other game permitted under state law which has also been permitted by resolution of the council, whether or not such game involves the use of cards.

“Pointholder” means any person, shareholder, partner, corporation, partnership or other entity of whatsoever character, or at all, having any interest whatsoever, or at all, in the ownership in a card club, whether legal, equitable or of whatsoever kind or character.

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

1. By means of any 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.

“Work permit” means the permit issued by the city to any person wishing to be employed by a card club in any capacity whatsoever. (Ord. 1630 § 1, 2003; prior code § 6-3.01)

5.24.020 Number of licenses – Number of tables.

There shall be no more than two card club licenses in the city at any one time. There shall be no more than five hundred playing tables in the city at any one time, and each active licensee shall be permitted to have no more than two hundred fifty tables. Licensees shall obtain administrative approval from the city manager prior to expanding the number of tables allowed by their initial and/or current licenses. In addition, each licensee shall be permitted to have a maximum of two instructional tables at which no wager of anything of value shall be permitted. Such instructional tables shall be subject to the provisions of Section 5.24.020. (Ord. 1482 § 1, 1994: prior code § 6-3.02)

5.24.021 Location of card clubs.

No gambling establishment may be located in any zone which has not been specifically approved for such a business and no new card club may be established, nor an existing club expanded, that is located within five hundred feet of any of the unsuitable areas specified in Business and Professions Code Section 19852(a)(3), or within such other distance as may be established by regulation of the division of gambling control. (Ord. 1563 § 3, 1999)

5.24.030 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, undertaking or place where 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 written license to do so under and in compliance with the provisions of this chapter.

B. No application form for a license for the conduct of any game and/or business under this chapter shall be furnished by the city clerk, nor shall any application for any such license be received and filed by the city clerk, nor shall the city clerk be required to process any such application, nor shall a public hearing on the application be conducted when the number of current and valid licenses for the conduct of such card games in the city, when added together, shall total the sum provided for in Section 5.24.020. (Prior code § 6-3.03)

5.24.040 Licenses – Applications.

A. Any person desiring or proposing to commence or conduct any business, activity, enterprise or undertaking designated, specified or referred to in this chapter for the playing of card games shall file with the city, on a form furnished by the city, a written application for a license as required by the provisions of this chapter. Each such application shall contain and clearly and truthfully, under oath or affirmation, set forth and show, in addition to such other information as the city may require, the following information:

1. The date of the application;

2. The true name of the applicant;

3. The status of the applicant as being an individual, firm, association, partnership, joint venture or corporation;

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

5. If the applicant is other than an individual, the name, residence, business address and capacity of each of the partners, shareholders or members of the firm, partnership, corporation or joint venture and the name, residence, business address, and capacity of each of the officers, directors and shareholders of the association or corporation applicant;

6. The location of the business for which the license is sought;

7. The games proposed to be played, that is, draw poker, panguingue, or both, and that no other games are proposed;

8. The number of tables to be placed, employed, or used for the playing of card games;

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

10. A description of the building in which the business proposed to be licensed is to be housed, giving the dimensions and floor plan of the entire premises;

11. A statement that such building conforms to all the laws of the state and the city for occupancies of the nature proposed;

12. A statement that the applicant understands that the application shall be considered by the council only after a full investigation and report have been made by the chief of police, other city officials, or their representatives;

13. 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 and the laws and regulations of the city applicable thereto and that any violation of any such laws or regulations in such place of business, or in connection therewith, shall render any license subject to immediate suspension or revocation;

14. A statement that the applicant has read the provisions of this chapter and understands the same;

15. A full and complete financial statement of the applicant or, if the applicant is other than an individual, a full and complete financial statement of all persons having an ownership interest in the endeavor; provided, however, the financial statement required by this subsection shall be a confidential qualified document and shall not be open to public inspection but shall be available only to those city officials having direct jurisdiction over the provisions of this chapter, to those state officials having jurisdiction over card clubs pursuant to the Gaming Registration Act of the state, and to any court of competent jurisdiction where any matter relating thereto may be actually pending; and

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

B. Concurrently with the filing of the application, the applicant, including its officers, shareholders, partners, management, employees, and all persons proposing to have an ownership interest therein, shall be fingerprinted and photographed by the chief of police or his designee and pay the applicable fees.

C. The council shall not consider any application for any license for less than forty playing tables or units. (Ord. 1630 § 2, 2003; prior code § 6-3.04)

5.24.050 Licenses – Applications – Investigations and reports.

A. Investigations Required. Whenever an application has been filed with the city clerk for a license pursuant to the provisions of this chapter, the city clerk shall immediately refer such application, or a true copy thereof, to the chief of police who shall cause an investigation to be conducted as follows:

1. An investigation of the building and location where the applicant proposes to conduct such business or activity;

2. An investigation of the applicant, including his officers, shareholders, partners, management, and all persons proposing to have an ownership interest therein;

3. An investigation as to the type of tables or units to be used at, or in conjunction with, the proposed business and the types of games proposed to be played, which investigation shall also include the proposed locations of the tables or other units in, within, or about the proposed place of business; and

4. Such other information as deemed necessary.

B. Reports Required. The chief of police shall make such investigations with reasonable promptness and shall report to the council with reference thereto in due time. (Ord. 1630 § 3, 2003; prior code § 6-3.05)

5.24.060 Licenses – Applications – Granting and denial.

A. Decision of the Council. The council, in its discretion, may either approve the application and grant the license applied for or deny the application and refuse to grant the license applied for.

B. License Conditions. Any such license granted by the council shall be subject to all of the terms, conditions, and provisions of this chapter as well as all laws of the city, state or federal governments and such additional rules, regulations, terms, and conditions, if any, as the council, in the exercise of its discretion, may see fit to promulgate, determine, or prescribe for the particular license applied for.

C. Decision of the Council Final. The decision of the council shall be final and conclusive. (Prior code § 6-3.06)

5.24.070 Licenses – Applications – Grounds for denial.

The council may deny any license under the provisions of this chapter in any of the following cases:

A. If any applicant does not have a valid registration from the Attorney General of the state;

B. If the proposed business or activity to be operated is in violation of any federal, state or city law or regulation;

C. If any applicant has been convicted of any crime punishable as a felony;

D. If any applicant has been convicted of an offense involving dishonesty;

E. If any applicant has engaged in bookmaking, loan sharking, or illegal gambling activities or has been convicted of an offense involving such activities;

F. If any applicant has made any false statement in the application or as to any other information presented as part of the application process;

G. If the applicant does not have the financial capability or business experience to operate a card club in a manner which would adequately protect the patrons of the card club and the citizens of the community;

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

I. If a license is not available;

J. When any table or unit to be permitted or licensed will not, at all times, be in full view of all patrons. However, licensed clubs with tables on more than one story of a building shall be required to have all tables on each story in full view of all patrons on that story;

K. When doors, screens, or other obstructions of any kind conceal, or are apt to conceal, the players at any table or unit;

L. If the building in which the business or activity proposed to be conducted does not meet the requirements of new buildings of like occupancy;

M. If the building or premises do not comply with the established requirements and regulations relating to building safety, zoning, and fire within the city; or

N. If the approval of any applicant would be inimical to the interests of legitimate gaming. (Prior code § 6-3.07)

5.24.080 Licenses – Issuance.

If the action of the council on any such application is to grant the license, the city manager or his delegate may issue the necessary licenses and renewals of licenses upon the payment of the required fees therefor until such time as such license is either surrendered, suspended, or revoked. (Prior code § 6-3.08)

5.24.090 Licenses – Expiration.

A. Licenses issued under the provisions of this chapter shall be and remain valid until either surrendered by the licensee, suspended by the chief of police, suspended or revoked by the council, or expiration pursuant to subsection E of Section 5.24.390.

B. In the event of surrender, suspension, revocation, or expiration, no license deposit or fee, or any portion thereof, shall be refunded. (Prior code § 6-3.09)

5.24.100 Licenses – Suspension and revocation.

All licenses authorized and issued under the provisions of this chapter shall be subject to, and accepted as subject to:

A. Immediate suspension by the chief of police until a decision is rendered by the council pursuant to subsection B of this section. The matter of such suspension shall be submitted to the council at the first meeting following such action. A license may be immediately suspended if the chief of police finds that:

1. The Attorney General of the state has suspended or revoked an applicant’s registration under the Gaming Registration Act of the state; or

2. A licensee, or any agent or employee thereof, has violated, or permitted, allowed or caused the violation of, any provision of this chapter, any regulation issued pursuant to this chapter, any condition of approval imposed upon the issuance of the card club license, or any state law or regulation relating to the operation of a card club, and the continued operation of the card club jeopardizes, or threatens to jeopardize, the public welfare;

B. Suspension or revocation by the council after a public hearing held after not less than five days’ notice to the licensee and after testimony has been taken by the licensee and/or any other interested person if the council finds that:

1. The Attorney General of the state has suspended or revoked an applicant’s registration under the Gaming Registration Act of the state; or

2. A licensee, or any agent or employee thereof, has violated, or permitted, allowed or caused the violation of, any provision of this chapter, any regulation issued pursuant to this chapter, any condition of approval imposed upon the issuance of the card club license, or any state law or regulation relating to the operation of a card club; or

3. A licensee has made any fraudulent statement as to a material fact on an application form or as to any other information presented as part of the application process; or

4. A licensee commits any act which would have constituted grounds for the denial of an application for a license pursuant to Section 5.24.070; and

C. The decision of the council shall be final and conclusive. In the event of the suspension or revocation of a license, no part of any license fee previously paid shall be refunded. (Prior code § 6-3.10)

5.24.110 Licenses – Transfer and assignment.

No license for a card club or any business conducted in conjunction therewith shall be transferred or assigned in whole or in part, either as to the licensee or location of the business, without the prior approval of the city. The licensee shall notify the city manager of the possibility of such transfer or assignment concurrently with the commencement of negotiations for the same. (Prior code § 6-3.11)

5.24.120 Licenses held by veterans organizations.

The provisions of this section specifically concern those licenses which are presently held in the names of (1) American Legion Post No. 187, Inc., (2) Veterans of Foreign Wars, General Rosecrans Post No. 3261, Inc., (3) Nisei Veterans of Foreign Wars, Post No. 1961, Inc., and (4) Alondra Park AMVETS, Post No. 30, Inc. The council is mindful that in the past such veterans organizations (referred to in this chapter as veterans organizations) found it desirable to assign the functions involved in and directly related to the operation, management, and conduct of the card clubs authorized under the licenses heretofore issued to such veterans organizations. The council may permit such practice in the future, but only upon absolute and strict compliance with the respective licenses heretofore issued to such veterans organizations, with the following special terms and conditions, including, but not limited to, the fact that such veterans organizations shall be nonprofit, charitable and/or eleemosynary corporations, limited partnerships, or unincorporated associations, each and all of which shall be met, kept and performed in every particular:

A. No assignment of functions related to the operation, management and conduct of a card club by a veterans organization shall be valid without the prior approval of the council, including the approval of the operating agreement. The assignee shall be considered a sublicensee and shall be subject to approval in the same manner as a licensee.

B. Should an assignment be approved, the veterans organization shall be considered the licensee, and the assignee shall be considered the sublicensee. Both the licensee and the sublicensee shall be jointly and severally responsible for compliance with the provisions of this chapter, any regulation issued pursuant to this chapter, any condition of approval imposed upon the licensee or sublicensee, and any state law or regulation relating to the operation of a card club. The violation of any such statute, regulation or condition shall subject the licensee and sublicensee to any and all penalties specified in this chapter.

C. Any veterans organization shall understand and agree, in accepting and retaining a card club license, that neither the city, nor any of its officers, agents, or employees, shall be liable for any loss or damage suffered or sustained by such veterans organization, as licensee, which may arise out of, or be concerned with, the veterans organization complying with, or being required to comply with, the provisions of this chapter, any regulation issued pursuant to the provisions of this chapter, any condition imposed upon its license, or any state law or regulation relating to the operation of a card club.

D. Any veterans organization holding a card club license, as a condition of such license, shall be responsible for filing with the city clerk a current and updated copy of:

1. The Articles of Incorporation and Bylaws;

2. The operating agreement with the assignee; and

3. The names and business residence addresses of all officers and directors and the names of all officers, directors, and/or members authorized to bind the veterans organization to any contract or agreement or who have the authority to disburse funds of the veterans organization. Upon acquiring such authority, such persons shall be required to file with the city a personal questionnaire on forms approved by the city attorney.

Any change in such documents shall be filed with the city clerk within five days after such change taking place.

E. The veterans organization, if requested by the city, shall submit a list of all of its members.

F. A veterans organization, as licensee, shall file with the city clerk, within sixty days after the end of every fiscal year, an annual report, financial statement and/or balance sheet which shall fully disclose the manner in which such veterans organization, as licensee, disburses the moneys received from the operating agreements it has with a sublicensee.

G. Each veterans organization holding a license issued pursuant to this chapter shall at all times maintain its permanent and only official location within the corporate limits of the city, and any attempt or removal of such location from the city shall be grounds for the revocation of its license pursuant to Section 5.24.100. (Prior code § 6-3.12)

5.24.130 Pointholders – Approval required.

No person shall acquire an ownership interest in a card club without receiving prior approval from the council and the Attorney General of the state. As used in this section, “ownership interest” shall include the receipt of points by hypothecation or holding points in trust for another. (Ord. 1630 § 4, 2003; prior code § 6-3.13)

5.24.140 Pointholders – Applications – Approval or denial.

A. Persons wishing to become pointholders, prior to acquiring an ownership interest in any card club, shall file an application with the city clerk on a form approved by the city attorney and shall include a full financial statement.

B. The application shall be accompanied by a nonrefundable fee which shall be used to cover the costs of investigation.

C. The application shall include the applicant’s photograph and fingerprints taken by the chief of police or his designee.

D. The chief of police shall investigate such person and recommend to the council the approval or denial of such application, and the council’s decision shall be final and conclusive.

E. The council may deny an application to become a pointholder in the following cases:

1. If the applicant has been convicted of any crime punishable as a felony;

2. If the applicant has been convicted of an offense involving dishonesty;

3. If the applicant has engaged in bookmaking, loan sharking, or other illegal gambling activities or has been convicted of an offense involving such activities;

4. If the applicant is not a person of good character, integrity and honesty;

5. If the applicant has made any false statement in the application or as to any other information presented as part of the application process; or

6. If the approval of the applicant would be inimical to the interests of legitimate gaming.

F. No application shall be submitted to the council until the applicant has received approval from the Attorney General of the state pursuant to the Gaming Registration Act of the state. (Prior code § 6-3.14)

5.24.150 Pointholders – Notices of acquisition of points and transfers and assignments thereof.

No ownership interest in a card club shall be acquired, transferred, or assigned by previously approved pointholders without giving notice of such acquisition, transfer or assignment to the city clerk within five days after the consummation of such transaction. “Notice,” as used in this section, shall be made on a form approved by the city attorney and shall contain all the information requested therein. It shall be the responsibility of both the pointholder and the licensee to ensure that such form is filed. Failure to file a completed form in a timely manner shall be a violation of this chapter and the pointholder and licensee shall be subject to the penalties contained in this chapter. (Prior code § 6-3.15)

5.24.160 Pointholders – Revocation of approval – Divestment.

A. The approval of a pointholder may be revoked by the council after a hearing held not less than thirty days after notice has been given to the pointholder if the council finds that:

1. The Attorney General of the state has suspended or revoked an applicant’s registration under the Gaming Registration Act of the state; or

2. A pointholder has violated, or permitted, allowed or caused the violation of, any provision of this chapter, any regulation issued pursuant to this chapter, any condition of approval imposed upon the issuance of the card club license, or any state law or regulation relating to the operation of a card club; or

3. A pointholder has made any fraudulent statement as to a material fact on an application form or as to any other information presented as part of the application process; or

4. A pointholder commits any act which would have constituted grounds for the denial of approval pursuant to Section 5.24.140.

B. The council, in making its decision, shall consider any mitigating factor presented by the pointholder. The decision of the council shall be final.

C. The ownership interest shall be divested within one hundred twenty days after the notice of revocation. Failure to do so shall constitute a misdemeanor, and each day of noncompliance shall constitute a separate and complete offense. In addition, the city attorney may invoke appropriate civil remedies to enforce compliance.

D. No person required to divest an ownership interest in a card club following a revocation of approval shall transfer such ownership interest to his or her spouse, child, sibling, or parent or to his or her spouse’s child, sibling, or parent without the approval of the council. (Prior code § 6-3.16)

5.24.170 Employees – Work permits – Required – Nontransferability.

Any person wishing to work in a card club, in any capacity whatsoever, shall first obtain a work permit from the city. No card club shall employ, in any capacity, any person not having a work permit issued by the city. Work permits shall not be transferred or assigned but shall be valid in all card clubs in the city. Persons employed in a card club on December 15, 1983, and who have been fingerprinted and photographed by the chief of police prior to said date, shall be issued a work permit permitting them to work only in the card club in which they are then employed. Upon the termination of employment in said card club, the employee shall become subject to the provisions of Section 5.24.180. However, all employees shall immediately be subject to the provisions of Section 5.24.190. (Prior code § 6-3.17)

5.24.180 Employees – Work permits – Applications – Approval or denial.

A. Any person wishing to obtain a work permit shall file an application with the chief of police on a form approved by the city attorney. The application shall be complete in all respects, shall include photographing and fingerprinting, and shall be accompanied by the payment of the applicable fees. The chief of police shall process the application and may approve, conditionally approve (including the issuance of a temporary permit), or deny such application. The chief of police shall deny an application for a work permit only in the following cases:

1. Failure of the applicant to clearly establish eligibility and qualification in accordance with the requirements of Chapter 5 of Division 8 of the California Business and Professions Code as the same may be amended from time to time, or in accordance with this Chapter of the Gardena Municipal Code.

2. Failure of the applicant to provide information, documentation and assurances required by Chapter 5 of Division 8 of the California Business and Professions Code as the same may be amended from time to time, by this Chapter of the Gardena Municipal Code, by the Director of the California Division of Gambling Control, or by the Chief of Police, failure of the applicant to reveal any fact material to qualification, or the supplying of information that is untrue or misleading as to a material fact pertaining to the qualification criteria.

3. Conviction of a felony, including a conviction by a federal court or a court in another state for a crime that would constitute a felony if committed in California.

4. Conviction of the applicant for any misdemeanor involving dishonesty or moral turpitude within the 10-year period immediately preceding the submission of the application, unless the applicant has been granted relief pursuant to Section 1203.4, 1203.4a, or 1203.45 of the Penal Code.

5. Association of the applicant with criminal profiteering activity or organized crime, as defined by Section 186.2 of the Penal Code.

6. Contumacious defiance by the applicant of any legislative investigatory body, or other official investigatory body of any state of the United States, when that body is engaged in the investigation of crimes relating to gambling; official corruption related to gambling activities; or criminal profiteering activity or organized crime, as defined by Section 186.2 of the Penal Code.

7. The applicant is less than 21 years of age.

B. Notice of the Chief’s decision shall be given to the applicant within thirty days of receipt of a completed application and shall state the reasons for the decision of a denial or a conditionally approved permit. The notice shall state that the decision of the Chief is final absent a timely appeal to the City Manager in accordance with section 5.24.195.

C. Notwithstanding the foregoing, any application for a work permit shall be subject to objection by the division of gambling control. In the event of such an objection the chief of police shall deny the work permit and the applicant shall not be entitled to appeal pursuant to subsection B of this section. Instead, the applicant shall be entitled to appeal the denial to the division of gambling control pursuant to Sections 19851 and 19910.5 of the Business and Professions Code and any regulations implementing those sections.

D. Renewal. Employee work permits shall be subject to renewal every three years. The procedure for renewal shall be the same as for the issuance of a new permit, except no fingerprints shall be required.

E. Reapplication. No person shall apply for a permit which has been revoked or denied for a minimum of one year from the date that the denial or revocation is final, absent a change in the facts causing the revocation or denial. (Ord. 1601 § 31, 2000; Ord. 1563 § 5, 1999: prior code § 6-3.18)

5.24.190 Employees – Work permits – Suspension and revocation.

A. A work permit may be revoked under the following circumstances:

1. The commission of any act which would have been grounds for the denial of a work permit pursuant to subsection A of section 5.24.180; or

2. The violation of any condition imposed in granting such permit.

B. The Chief of Police shall give notice to the permittee of the violation(s) involved and set forth a period of time for the correction of the violation(s) if correction is possible. If the Chief finds that the violation(s) continue without correction, or if correction is not possible, then the Chief shall issue a notice of revocation which shall contain a statement of the violation(s). The Chief shall serve the notice of revocation on the permittee, the permittee’s employer, and as any other interested person requesting a copy of the same. The notice of revocation shall specify that the decision is final and conclusive in the absence of a timely appeal taken in the time and manner set forth in Section 5.24.195. If the permit is being revoked due to an immediate danger to the public health and safety, the notice shall set forth the danger and provide that an appeal will not stay the revocation. (Ord. 1601 § 32, 2000; prior code § 6-3.19)

5.24.195 Appeal of chief’s decision on employee work permits.

A. Any person who is aggrieved by a determination made by the Chief of Police relating to an employee work permit pursuant to the provisions of this chapter may, within ten consecutive calendar days from the date of the notice, file a written appeal with the City Manager.

B. The matter shall be set for hearing no more than thirty days from the receipt of the appeal. The appellant shall be provided with notice of the time and place of the hearing, as well as all relevant materials, at least five calendar days prior to the hearing. The hearing may be continued from time to time upon mutual consent.

C. At the time of the hearing, the appealing party, City staff and any other interested person may present such relevant evidence as they may have relating to the determination from which the appeal is taken.

D. Based upon the submission of such evidence and the review of the city’s files, the City Manager shall issue a written notice and order upholding, modifying, or reversing the determination from which the appeal is taken and if appropriate, specifying the time period in which corrective actions must be taken. The notice shall be given within five working days after the conclusion of the hearing and shall state the reasons for the decision. The notice shall specify that the decision is final and that any petition for judicial review shall be filed within 90 days from the date of the decision in accordance with Code of Civil Procedure section 1094.6.

E. A timely appeal shall stay the order from which the appeal is being taken, unless the notice provides that a permit has been revoked or other order made due to an immediate danger to the public health and safety.

F. Each appeal shall be accompanied by a fee in an amount set by resolution of the City Council. (Ord. 1601 § 33, 2000)

5.24.200 Employees – Notice of employment – Identification badges.

A. Within five days after employing any person, the card club shall notify the chief of police of such person’s employment status.

B. Each such employee, unless specifically exempted by the chief of police, at all times while acting within the scope of his employment, shall wear in a prominently visible place upon his person an identification badge in a form prescribed by the chief of police, such badge bearing the name, identification number, and photograph of the employee. It shall be a violation of this chapter to fail to wear such badge when required, and any such failure shall be cause for penalties to be imposed upon the employee, the licensee, or both. (Prior code § 6-3.20)

5.24.210 Rules and regulations.

Rules and regulations may be established and promulgated by resolution adopted by the council to enhance, preserve or ensure security and safety in and about the premises of the card club, to establish maximum and minimum wagering limits and to otherwise regulate the operations of licensees. Such rules and regulations shall have the force of law, and any violation thereof shall be considered a violation of this chapter. (Ord. 1542 § 1, 1998: prior code § 6-3.21)

5.24.211 Patron security and safety.

Each card club licensee shall adopt and enforce a plan to provide for the safety and security of patrons in and around the gambling establishment and file a copy of the adopted plan with the chief of police. (Ord. 1563 § 2, 1999)

5.24.220 Alcoholic beverages.

A. Alcoholic beverages may be sold, dispensed, consumed or permitted in licensed card clubs in accordance with applicable state and local laws and regulations and only after the club obtains a conditional use permit from the city.

B. No on-duty employee of a card club shall consume alcoholic beverages.

C. No complimentary or reduced price alcoholic beverages shall be offered by the card club on the casino floor.

D. No licensee or other person in charge or control of any card game operating under any permit or license held or issued pursuant to the provisions of this chapter 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 or premises where card games are operating under any license issued pursuant to the provisions of this chapter shall permit any person to enter the premises while such person appears to be or, in the opinion of the licensee or duly authorized agents or employees, is under the influence of an alcoholic beverage or controlled substance. (Prior code § 6-3.22)

5.24.230 Age limitation.

Persons under twenty-one years shall be permitted in card clubs in accordance with the provisions of Business and Professions Code Section 19915.5. (Ord. 1589 § 1, 2000: prior code § 6-3.23)

5.24.240 Seating arrangements.

It has come to the attention of the council that in the past various operators and/or employees of operators of duly licensed card clubs in the city have entered into arrangements with various and sundry persons not holding licenses to conduct card games within the city wherein games conducted at certain tables have been farmed out, assigned or otherwise sublet to persons in duly licensed card clubs in the city. The council therefore ordains that is unlawful for any person as an operator, agent and/or employee of any duly licensed card club to assign, arrange for, or in any other manner sublet any table, directly or indirectly, with or without consideration, to any person to conduct a card game. It is likewise unlawful for any person to conduct or participate in such game of draw poker or panguingue. (Prior code § 6-3.24)

5.24.250 Seat rental fees.

A. Except in a duly authorized tournament, no licensee shall charge any person, including proposition players, a sum less than that set forth in the following schedule, as and for seat rental, entitling such person to play in such game:

DRAW 

Maximum

 

Limit

Bet

Rental

$1.00

$2.00

$ 1.00 per one-half hour per player

2.00

4.00

1.25 per one-half hour per player

3.00

6.00

1.75 per one-half hour per player

4.00

8.00

2.25 per one-half hour per player

5.00

10.00

2.50 per one-half hour per player

6.00

12.00

2.75 per one-half hour per player

8.00

16.00

3.00 per one-half hour per player

10.00

20.00

3.00 per one-half hour per player

20.00

Straight

5.00 per one-half hour per player

20.00

40.00

5.00 per one-half hour per player

30.00

60.00

6.00 per one-half hour per player

40.00

80.00

7.00 per one-half hour per player

50.00

100.00

8.00 per one-half hour per player

60.00

120.00

8.00 per one-half hour per player

70.00

140.00

8.00 per one-half hour per player

80.00

160.00

8.00 per one-half hour per player

90.00

180.00

8.00 per one-half hour per player

100.00

200.00

10.00 per one-half hour per player

LOW BALL – OPEN BLIND 

Maximum

 

Limit

Bet

Rental

$1.00

$2.00

$1.25 per one-half hour per player

2.00

4.00

1.75 per one-half hour per player

3.00

6.00

2.50 per one-half hour per player

4.00

8.00

3.00 per one-half hour per player

5.00

10.00

3.00 per one-half hour per player

6.00

12.00

3.25 per one-half hour per player

8.00

16.00

3.50 per one-half hour per player

10.00

20.00

3.50 per one-half hour per player

10.00
(raise blind)

20.00

4.00 per one-half hour per player

15.00

20.00

4.00 per one-half hour per player

15.00
(raise blind)

20.00

5.00 per one-half hour per player

20.00

20.00

5.00 per one-half hour per player

20.00
(raise blind)

20.00

6.00 per one-half hour per player

20.00

40.00

6.00 per one-half hour per player

30.00

60.00

7.00 per one-half hour per player

40.00

80.00

8.00 per one-half hour per player

50.00

100.00

8.00 per one-half hour per player

60.00

120.00

8.00 per one-half hour per player

70.00

140.00

8.00 per one-half hour per player

80.00

160.00

8.00 per one-half hour per player

90.00

180.00

8.00 per one-half hour per player

100.00

200.00

10.00 per one-half hour per player

PANGUINGUE 

$.50

condition games

$1.00 per one-half hour per player

1.00

condition games

1.25 per one-half hour per player

2.00

condition games

2.00 per one-half hour per player

3.00

condition games

2.75 per one-half hour per player

4.00

condition games

3.50 per one-half hour per player

5.00

condition games

4.00 per one-half hour per player

10.00

condition games

6.00 per one-half hour per player

15.00

condition games

7.00 per one-half hour per player

20.00

condition games

8.00 per one-half hour per player

20.00 to 40.00

condition games

8.00 per one-half hour per player

B. If convenience dealers, as defined in Section 5.24.260, are provided by the card clubs for the games of jackpot poker and panguingue, the rental fee shall be as set forth in subsection A of this section or, at the option of the card clubs, as follows:

Panguingue

Fee Per Hand

$ 1.00

condition games

$1.00

2.00

condition games

1.50

3.00

condition games

1.75

4.00

condition games

2.00

5.00

condition games

2.25

10.00

condition games

3.50

20.00

condition games

5.00

Jackpot Poker Game

Fee Per Hand

2/4

$1.50

3/6

2.00

5/10

2.50

3/6 Raise Blind

3.00

10 Draw

3.00

The convenience dealer, at the start of each half-hour collection period, shall inform each player of the rental fee schedule in effect for the following half-hour.

Moneys collected on a fee per hand basis shall immediately be placed by the convenience dealer into a locked box at each table. The city shall have the right to inspect and audit the contents of such boxes at any time and for any reason.

C. The city manager or his designee shall have the authority to temporarily permit the lowering of the fee schedules set forth in this section until the next meeting of the council. (Prior code § 6-3.25)

5.24.260 Convenience dealers.

A. Convenience dealers are employees of the card clubs provided for the convenience of the players so that no player deals. Other than dealing the cards and making collections as set forth in this section, such dealer does not participate in any way in the game, does not bet, and does not take a percentage of the winnings.

B. The convenience dealer shall collect the fixed fee as set forth in Section 5.24.250. Such dealers shall be clearly identifiable and shall adhere to whatever designation or identification standards are required by the chief of police.

C. The chief of police may promulgate regulations concerning the periodic rotation of convenience dealers, subject to the approval of the council.

D. Neither the condition of the particular game nor its status as a convenience game shall be altered during any half-hour collection period.

E. The amounts collected by convenience dealers as set forth in this section shall be segregated and secured by such dealers for collection purposes.

F. The provisions of this section may be suspended immediately by resolution of the council. (Prior code § 6-3.26)

5.24.270 Rules of play.

Rules of play for all games permitted to be played pursuant to this chapter, including rules establishing wagering limits in each game to be played, shall first be filed with the chief of police who shall make a recommendation and then send to the city council for final approval. During hours of operation copies of such rules shall be made available to patrons upon request or shall be clearly posted at the gaming tables where the games are offered. (Ord. 1563 § 4, 1999: prior code § 6-3.27)

5.24.280 Playing area.

The playing of all games provided for in this chapter shall be confined to the areas designated as “card room” as approved in the reasonable discretion of the City Manager. No games shall be permitted in any restaurant or lounge of a card club. (Ord. 1668 § 1, 2005; prior code § 6-3.28)

5.24.290 Signs.

Outdoor signs advertising a card club or any activity therein shall receive the approval of the city council prior to their installation. Such signs shall not be subject to the requirements of the zoning title of this code and are not subject to review by the planning and environmental quality commission unless so ordered by the city council. (Prior code § 6-3.28.1)

5.24.300 Entertainment.

Requests for entertainment in a licensed card club shall be submitted to the city manager for review and approval. All requests shall state with specificity the type of entertainment desired, the hours for such entertainment, and any other information requested by the city manager. The city manager’s decision to approve, approve with conditions, or deny, shall be subject to ratification by the city council. The city manager and/or city council may suspend, revoke or re-condition such permit at any time. Such requests for permits shall not be subject to Chapter 5.32 of this code. (Prior code § 6-3.28.2)

5.24.310 Inspections.

All card clubs shall be open for inspection during all hours to the chief of police, or his duly authorized representatives, without a search warrant. (Prior code § 6-3.29)

5.24.320 Investigations.

The chief of police shall have the right to require any licensee, pointholder or employee to supply additional or updated information to that previously required of such person in any application. Additionally, each such person shall cooperate in any investigation undertaken by the chief of police, or any other law enforcement official, and shall allow any books, records and accounts to be inspected. Failure to supply such information or cooperate in such investigation may result in the imposition of penalties as specified in this chapter. (Prior code § 6-3.30)

5.24.330 Reporting of loans.

Licensees shall report the city manager all loans received by them within ten days of execution of final loan documents. The information to be supplied shall include the name and address of the lender and the amount and terms of the loan. (Prior code § 6-3.30.1)

5.24.340 Hours of operation.

Each card club shall adopt a schedule of the hours of operation and shall submit the schedule to the city manager for his or her approval. The approved schedule of hours shall be clearly posted at the gambling establishment so as to give law enforcement and patrons adequate notice of the hours of operation. Unless otherwise restricted, a gambling establishment may be allowed to operate twenty-four hours each day. (Ord. 1563 § 1, 1999: prior code § 6-3.31)

5.24.350 Credit and check cashing.

The giving of credit or lending of anything of value to a patron and the cashing of checks of patrons shall be permitted only if the licensee’s written check cashing and credit policies are posted at the cashier’s window. (Prior code § 6-3.32)

5.24.360 Holding valuables for safekeeping.

Licensees holding valuables for safekeeping may do so only under the following conditions:

A. Only cash may be held; no other valuable, including coins or paper money worth more than face value, may be held.

B. Money deposited shall be secured by cash or other liquid assets or a security bond. Such security shall be sufficient to cover all money deposited.

C. No person may deposit money for safekeeping without the written approval of a general partner of the licensee or his designee with the prior approval of the chief of police. Money may be deposited and withdrawn only by the person named on the account. Accurate records of all deposits and withdrawals shall be kept for a period of not less than two years. No person shall hold more than one account at any one card club.

D. The actual deposits held and the records of all transactions shall be available for inspection by the chief of police or other law enforcement officials upon demand. (Prior code § 6-3.33)

5.24.370 Cheating prohibited.

A. For the purposes of this section, unless otherwise apparent from the context, certain words and phrases are defined as follows:

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

2. “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.

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

4. “Capping the deck” means to place cards on to the top of the deck.

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

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

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

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

9. “Holdout” means a mechanical device used for the purpose of surreptitiously switching or retaining cards.

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

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

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

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

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

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

16. “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.

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

18. “Slug” means a group of cards.

19. “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.

20. “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.

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

C. It is unlawful for any person as a player, dealer, employee or agent to shuffle or cause to be shuffled any playing cards which are to be used or are being used in a 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, in 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, shall be prohibited.

D. It shall be unlawful for any player or dealer to palm, hold out, or conceal any card during a card game, whether by sleight of hand, mechanical apparatus, or by clothing, 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 decks with a cooler shall be prohibited.

E. It is unlawful for any person to use any technique in a card game designed to accomplish a blind or false cut, 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.

F. 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 games 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 in this section, includes sanding, daubing, white flash, white on white, punching, adding to, removing from or blocking out the existing design, whether on the face, back side, or edge of any card or cards.

Any deliberate crimping, warping, bending, cutting, trimming, shaving, or alteration by means which would or may cause an advantage for any player over other players, whether or not such advantage is gained, shall be unlawful.

G. The use of any mechanical or electrical apparatus or other device so as to gain any advantage, or to gain information which would enable a player or dealer to deceive others, is prohibited. Such devices shall include, but shall not be limited to, holdouts, shiners, transmitters, receivers, punches, chemical solutions, shading, roughing fluids, inks and dyes.

H. It is unlawful for any person to knowingly aid or abet another in any cheating action.

I. It is unlawful for any person to use any cheating techniques, whether or not such techniques are successful. The licensee or management shall immediately notify the police department upon the detection of any person suspected of cheating.

J. It is the responsibility of the licensee, management and their employees to fully cooperate with card game surveillance and protection personnel in the detection, apprehension and identification of those persons involved in cheating or fraudulent accounting practices. The management shall retain and deliver to the police department as evidence all playing cards and implements suspected of involvement in cheating.

K. The licensee shall cause this section to be reproduced and posted in the licensed premises. Such posting shall be in a location where it is easily readable by anyone. Such posting shall be of readable print and enclosed within a frame or as a sign either laminated or protected by glass or a plexiglass covering.

L. Notwithstanding other provisions of law, any person committing an unlawful act as set forth in this section shall be guilty of a misdemeanor. (Prior code § 6-3.34)

5.24.380 Exclusion of persons from card clubs.

A. A licensee may exclude or eject from the premises any person who has been engaged in or been convicted of bookmaking, loan sharking, the sale of controlled substances, illegal gambling activities, or whose presence in or about such card club would be inimical to the interests of legitimate gaming. No person shall be excluded or ejected on the grounds of race, color, creed or sex.

B. Any person excluded or ejected by a licensee may appeal to the city manager as to whether the conditions for exclusion or ejection set forth in subsection A of this section are applicable. The city manager shall appoint a hearing officer who shall conduct a hearing at which time both the person excluded and the licensee may present evidence. The decision of the hearing officer shall be final. The licensee and appellant shall reimburse the city for the cost of holding such hearing in amounts determined by the hearing officer. (Prior code § 6-3.35)

5.24.390 Fees and deposits.

The fees set forth in this chapter are for both regulation and revenue purposes. All fees shall be nonrefundable and shall not be prorated unless otherwise specified. In addition to the fees set forth in this section, the applicant shall reimburse the city for any reasonable and necessary expenses over and above such fees. In the case of veterans organizations having operating agreements pursuant to Section 5.24.120, either the veterans organization as licensee or assignee as sublicensee may pay such fees as are required, but the veterans organization as licensee shall be responsible for the payment thereof. Each application shall be accompanied by the following fees and deposits, and no application shall be accepted unless so accompanied:

A. Card Club Licenses. A nonrefundable application fee of five thousand dollars which shall be retained by the city for the payment of the costs of investigation and a refundable license fee of three thousand dollars which shall be the property of, and be retained by, the city in the event the license applied for is issued but which shall be returned to the applicant if such license is not issued;

B. Pointholder Applications. A fee of five hundred dollars;

C. Pointholder Transfers and Assignments. A fee of fifty dollars;

D. Employee Work Permits and Renewals. Fees in an amount set by resolution of the City Council.

E. Quarterly License Fees.

1. Amount. The council hereby determines that all licenses issued pursuant to the provisions of this chapter shall be renewed quarterly on January 1st, April 1st, July 1st and October 1st of each calendar year, and a quarterly license fee of fifteen thousand dollars shall be paid quarterly in advance.

2. New Applications. In the case of a new application, a nonrefundable license fee of thirty thousand dollars covering the first two quarterly payments shall be paid in advance to the city when the license is issued.

Such advance fee shall be payable as a condition precedent to the issuance of the license.

3. Nonrefundable. All fees referred to in this subsection shall become the absolute property of the city and shall be nonrefundable, nor shall such fees be prorated in any manner whatsoever.

4. Loss of Licenses. Failure to pay such quarterly license fees in a timely manner shall constitute a loss of license, and the license shall revert to the city. The operation of a card club without a valid license shall be a violation of law; and

F. Gross Revenue License Fees.

1. Amount. In addition to the quarterly license fees set forth in subsection E of this section, each licensee licensed pursuant to the provisions of this chapter shall pay to the city a monthly fee of twelve percent of the total monthly gross revenue of the card game business so licensed.

2. Tournaments. Should any tournament be held, six percent of the total entry fees shall be included as part of the total monthly gross revenue set forth in subsection F1 of this section.

3. Statements of Revenue. Each licensee shall file with the city a daily statement of revenue and, in addition, shall deliver on or before the tenth day of each calendar month a statement, under oath, showing the true and correct amount of gross revenue derived from the card game business permitted by the license held by such licensee for the preceding calendar month. Should the tenth day of any month fall on a weekend or city holiday, such statement shall be filed on the previous business day. All required statements shall be provided on forms approved by the director of finance. Such statements shall be accompanied by the payment of the correct amount of license fee due and owing in accordance with the provisions of subsection F1 of this section, and such sums correctly reflecting the monthly fees payable for the preceding month shall be accepted by the city, subject, however, to the right of the city to audit the matters referred to in the statement and to determine the correctness of the figures set forth in such statement and the amount payable to the city pursuant to the provisions of subsection F1 of this section. In addition to the foregoing, a certification shall be attached to the statement, or included therein, and signed by an owner, which certification or declaration shall be substantially in the following form:

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

Owner

4. Jackpot Games. An accounting of moneys received and expended in connection with each and every jackpot game shall be filed weekly with the chief of police. (Ord. 1601 § 34, 2000; Ord. 1507 § 1, 1996; prior code § 6-3.36)

5.24.400 Quarterly reports.

A. When renewing licenses quarterly, as set forth in subsection E of Section 5.24.390, licensees shall file with the city clerk a quarterly report on a form approved by the city attorney. Such report shall contain, as a minimum, the following information:

1. A list of all pointholders with the amount of points held; and

2. A list of all employees with their police identification numbers.

B. Licensees shall be responsible for the accuracy of such reports, and licenses shall be renewed conditionally pending the review and certification of such reports by the chief of police. (Prior code § 6-3.37)

5.24.410 Audits of records.

The books, records, and accounts relating to the gross revenues of all licensees in the city shall be audited at the end of the licensee’s fiscal year by a certified public accountant. The report of such accountant and all work papers utilized in the preparation of such audit shall be submitted to the 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 certified public accountant selected by the city.

The city may require, at any time, an audit of the gross revenues of any licensee by a certified public accountant. Such audit shall be in addition to the audit mentioned in the preceding paragraph. Any inaccuracy found in the revenues previously reported to the city shall be adjusted accordingly. If such additional audit shall disclose an inaccuracy of greater than two percent error with respect to the gross revenues reported by the licensee for the period of such audit, the cost thereof shall be paid to the city by the licensee; otherwise, the cost of such audit shall be borne by the city.

Nothing set forth in this section shall limit the city’s right at any time to inspect or audit the books, records and accounts of any licensee relating to items other than gross revenues.

Any information obtained pursuant to the provisions of this section or any statement filed by a licensee shall be deemed confidential in character and shall not be subject to public inspection, except in connection with the enforcement of the provisions of this chapter. It shall be the duty of the city manager to so preserve and keep such information so that the contents thereof shall not become known, except to persons charged by law with the administration of the provisions of this chapter or pursuant to the order of any court of competent jurisdiction. (Prior code § 6-3.38)

5.24.420 Unlawful acts.

A. Unlawful Locations. It is unlawful for any person to play in, or permit the playing of, any game regulated or referred to by the provisions of this chapter at any place within the city, except a place licensed pursuant to the provisions of this chapter.

B. Unlawful Games. It is unlawful for any person to play in, or permit the playing of, any game at any place licensed pursuant to this chapter which game is not permitted by the provisions of this chapter or regulations issued pursuant thereto, or in any game played in violation of this chapter.

C. Unlawful Activities. It is a violation of this chapter for any licensee to knowingly permit any unlawful activity to take place upon the premises of the card club or to fail to take reasonable steps to prevent such activities from taking place. (Prior code § 6-3.39)

5.24.430 Games permitted.

The only games permitted under this chapter shall be the game of draw poker, the game of panguingue, or any other game permitted under state law which is also permitted by resolution of the council. Should any licensee wish to permit the playing of any game not illegal under state law, other than the games of draw poker or panguingue, he shall first file a request with the city manager which shall include a copy of the rules of play. The city manager shall confer with the city attorney and chief of police and may conditionally permit the playing of said game until the next council meeting at which time the council, by resolution, may permit the playing of the game under regulations set forth therein. No other game or games shall be played or permitted to be played in any of the establishments licensed pursuant to this chapter. (Prior code § 6-3.40)

5.24.440 Games not permitted.

A. Gambling Places Prohibited. It is declared unlawful for any person to keep, conduct or maintain within the city, or knowingly to permit any house, room, apartment or place owned by him or under his charge or control in the city, where any game not mentioned in Sections 330, 330a, and 337a of the Penal Code of the state, including, but not limited to, draw poker, lowball poker, high-low split, or panguingue, is played, conducted, dealt, or carried on with cards, dice or other devices for money, checks, chips, credit or any other representation of value.

B. Playing or Betting Prohibited. It is declared unlawful for any person to play or bet at or against any game not mentioned in Sections 330, 330a, and 337a of the Penal Code of the state, including, but not limited to, draw poker, lowball poker, high-low split, or panguingue, which game is played, conducted, dealt or carried on with cards, dice or other devices for money, checks, chips, credit or any other representation of value, at any place within the corporate limits of the city.

C. Visiting Gambling Places. It is unlawful for any person to knowingly visit any location wherein gambling as prohibited by this section is being conducted or maintained.

D. Exceptions. Subsections A and B of this section shall not apply to bingo conducted in accordance with the Penal Code of the state and this code or to any game conducted pursuant to this chapter. (Prior code § 6-3.41)

5.24.450 Amendments.

The council reserves the right to adopt by resolution additional emergency rules and regulations which shall become effective immediately upon adoption and the violation of any such emergency rules and regulations shall constitute grounds for the imposition of penalties pursuant to the provisions of this chapter. (Prior code § 6-3.42)

5.24.460 Licensees responsible.

All persons licensed pursuant to the provisions of this chapter shall be liable for all violations thereof, including all conditions, rules and regulations issued pursuant thereto, including any violations committed by the agents or employees of such licensee, whether or not such licensee had knowledge of the act of the agent or employee or participated in the act. (Prior code § 6-3.43)

5.24.470 Confidentiality.

All applications, personal history statements and financial information filed by a licensee, sublicensee, pointholder or employee shall be confidential and accessible only to members of the council and their designees. (Prior code § 6-3.44)

5.24.480 Violations – Penalty.

A. Violations of this chapter, including any conditions, rules, or regulations issued pursuant thereto, shall be punishable as follows:

1. As a misdemeanor, prosecutable by the city attorney or the district attorney; and/or

2. By revocation of the license or permit as specified in this chapter; and/or

3. By suspension of the license or permit as specified in this chapter; and/or

4. By a fine not to exceed ten thousand dollars for each violation, such fine to be imposed by the council after a hearing held no less than ten days after notice has been given to the alleged violator.

B. Such penalties shall be cumulative and may be imposed for each violation. Each day such violation takes place shall constitute a separate offense. (Ord. 1744 § 8, 2013; prior code § 6-3.45)

5.24.490 Nonseverability.

The provisions of this chapter providing for the payment of license fees, and the provisions allowing the licensing of draw poker and panguingue within the city, shall not be severable one from the other. Should the requirements of this chapter relating to the payment of license fees, as set forth in this chapter or as subsequently amended, be held to be invalid or unenforceable for any reason by the final judgment of a court of competent jurisdiction, then this chapter in its entirety shall thereupon become null and void, and the licenses issued pursuant to this chapter shall likewise become null and void, and the playing of draw poker or panguingue within the city shall thereupon become unlawful to the same extent as such playing was unlawful prior to the adoption of this chapter. (Prior code § 6-3.46)