Chapter 5.20
CARDROOMS*
Sections:
5.20.030 Application for license.
5.20.040 Referral of application.
5.20.050 Action on application.
5.20.070 Cardroom regulations.
5.20.080 Value and transfer—Prohibited.
5.20.100 Employee work permits.
5.20.110 Revocation and suspension of license or work permit.
5.20.150 Enforcement procedures—Notice to correct.
* See Title 5, Business Licenses and Regulations.
5.20.010 Definitions.
For the purposes of this chapter the words set out in this section shall have the following meanings:
“Cardroom” means any space, room or enclosure, furnished or equipped with a table used or intended to be used as a card table for the playing of cards and similar games, and the use of which is available to the public, or any portion of the public; provided, however, that this section does not apply to any bona fide nonprofit society, club, fraternal, labor or other organization as defined in Section 5.20.120.
“Person” includes any firm, organization, association, partnership, joint venture, syndicate or corporation. (Ord. 617 § 2 (part), 1988)
5.20.020 License required.
It shall be unlawful for any person to engage in, or carry on, or maintain or conduct, or cause to be engaged in, carried on, maintained or conducted, any cardroom which is used by the public for the playing of cards, and at which money or anything of value is wagered or for the use of which a fee or compensation is charged players, without first obtaining a license from the city. (Ord. 617 § 2 (part), 1988)
5.20.030 Application for license.
A. An applicant for a cardroom license shall file a verified application with the city council. The application shall include, among other things, the following:
1. The true name of the applicant, together with the names of all persons directly or indirectly interested in the conduct of said business, including all members of any firm or partnership. A corporate applicant shall list officers, directors, and all shareholders holding ten percent or more of the corporate stock;
2. Whether any permit or license heretofore granted to applicant to engage in any business or do any act within the city has been revoked or denied, and if so, the circumstances surrounding the revocation or denial;
3. The location and description of the premises upon which the applicant proposes to conduct a cardroom and a statement of the property interest of the applicant in the premises as owner, lessee or otherwise. If applicant is not the owner of the premises, the owners shall join in the application;
4. The number of card tables which the applicant intends to operate;
5. All criminal convictions, within five years preceding the filing of the application, of offenses involving:
a. The operation of a cardroom or similar establishment,
b. Any gambling offense,
c. Violations of narcotic laws, and
d. Offenses involving moral turpitude;
6. A statement that the applicant understands that a State Summary Criminal History information will be sought from the Attorney General and that the information obtained therefrom may be included in the report and recommendation of the chief of police and in any hearing before the city council on said application;
7. Such further information bearing on the identity and character of the applicant or the use, location, or condition of the premises as the city council may require;
8. A statement that the applicant understands that the application shall be considered by the city council only after full investigation and report have been made and conducted by the chief of police, the building official, the fire chief, the planning director, or their authorized representatives.
B. Each application shall be accompanied by an investigation fee in an amount established by resolution of the city council. (Ord. 842 § 2 (part), 1996)
5.20.040 Referral of application.
A. Within twenty-one days after receipt of an application, the city council shall refer the same to the following city officials for a written report and recommendation:
1. The chief of police, concerning the character of the applicant and any law enforcement problems which the issuance of the license might tend to create;
2. The fire chief, concerning the suitability of the proposed premises for the intended use under applicable fire and safety laws;
3. The building inspector, concerning the suitability of the proposed premises for the intended use under applicable building laws;
4. The planning director, concerning the compatibility of the intended use with existing planning and zoning laws and any adverse impact upon surrounding property.
B. Such reports and recommendations shall be filed with the city council within three months after the referral; provided, that for good cause shown and after notice to the applicant, the city council may extend such time for not to exceed an additional two months.
C. If, however, at the time the application is filed there are no licenses available pursuant to the provisions of Section 5.20.050(C) limiting the number of permissible licenses, no referral for report and recommendation shall be made and no further proceedings on said application shall be conducted. (Ord. 617 § 2 (part), 1988)
5.20.050 Action on application.
A. Within one month after receipt of the reports and recommendations, the city council shall schedule a hearing on the application and shall give the applicant two weeks prior written notice of such hearing, which shall include a copy of each report and recommendation filed with the council. Nothing contained in this section shall preclude the council from conducting a hearing on more than one application at the same time.
B. In the conduct of such hearing witnesses may be sworn, however, formal rules of evidence applicable to proceedings before the trial courts of this state shall not be applicable. The burden of proof shall be borne by the applicant. The decision of the council shall be in the form of a resolution, but need not be supported by written findings.
C. Anything to the contrary notwithstanding, no cardroom license shall be granted when the number of cardroom licenses in the city exceeds the ratio of one cardroom for each two thousand five hundred persons in the city according to the last preceding federal census or special census conducted under the supervision of the Department of Finance of the State of California at the time of the application; provided, that this population limitation shall not prevent the continuance of any cardroom existing and operating at the time of the passage of the ordinance codified in this chapter. Such continued operation, however, shall be in compliance with the regulations of Section 5.20.070 in all respects. The population standard established in this section is intended to fix a maximum limitation on the number of licenses. The city council may, in its discretion, elect to authorize fewer licenses than such standard would allow.
D. The city council may deny an application for a cardroom license if, in the opinion of the council, the cardroom is to be located in an area of the city or operated under circumstances where it might tend to cause a police problem, or create a public nuisance or where the operation of the cardroom would be incompatible with existing zoning and neighborhood land uses or where the granting of the licenses would be contrary to the public interest. (Ord. 842 § 2 (part), 1996)
5.20.060 Fees.
Every person operating a cardroom shall pay a license fee established by a resolution of the city council. Said fee shall be in addition to any other tax or fee which is required for any other business operated by the license holder. (Ord. 617 § 2 (part), 1988)
5.20.070 Cardroom regulations.
A. No person shall operate a cardroom in violation of any of the following regulations:
1. No person shall be permitted to hold or be interested in more than one cardroom license issued by the city.
2. No more than eleven card tables shall be permitted in any cardroom.
3. Not more than one cardroom shall be located at any one address.
4. No more than ten players shall be permitted at a table.
5. No minor shall be permitted at any card table, or participate in any game played at any card table. Each licensee shall post or cause to be posted at a conspicuous place at or near each entrance to the premises a clear and legible sign not less than seven inches by eleven inches in size, reading “NO PERSON UNDER TWENTY-ONE ALLOWED.”
6. All cardrooms shall be open to police inspection during all hours of operation.
7. No shills shall engage in card games. This prohibition shall not apply to house players, provided they wear a badge in a conspicuous place, which badge identifies them as employees of the licensee.
8. Each cardroom licensee shall post in a conspicuous place on the premises a copy of the house rules and regulations and the charges for participating in the games.
9. If a cardroom or any card table is located within a portion of any premises utilized for the sale of alcoholic beverages, all alcoholic beverages shall be secured between the hours of 2:00 a.m. and 6:00 a.m. of each day.
10. The following provisions shall govern the hours of operation: Cardrooms may be open for twenty-four hours per day. However, in considering a conditional use permit application for the operation of a cardroom, the planning commission shall evaluate the land use impacts of a proposed cardroom and shall determine if restrictions on the hours of operation are necessary to protect the public health, safety or general welfare. The planning commission shall specify any limitations on the hours of operation in the conditional use permit.
11. The following provisions shall govern patron security and safety:
a. As part of the submittal requirements for a conditional use permit, the building owner, licensee and/or permittee shall submit a physical security plan (for the building, parking lot and surrounding area) and a security personnel deployment plan. The physical security plan and the security personal deployment plan shall be submitted to the chief of police for review prior to any action on the conditional use permit by the planning commission.
b. In addition to any conditions imposed by the planning commission on the conditional use permit, whenever it appears to the chief of police that security personnel are necessary to protect the health, safety, or welfare of the public, the chief of police shall require that a cardroom licensee provide uniformed security personnel on the premises and the parking lot used by the cardroom for its patrons and employees as a condition of the license. Each license shall have such conditions specified on the face or on the reverse side of the license. The chief of police shall determine the necessity for the requirement for security personnel based on (i) the propensity for peace disturbances or criminal activity in the geographic area in which the cardroom is located, (ii) the propensity for criminal activity or peace disturbances on the cardroom premises, (iii) the hours of operation, and (iv) any other factors which affect the health, safety or welfare of the public and cardroom patrons. The chief of police shall notify the licensee, in writing, as to time periods and days of the week during which security is required, the number of security officers required, and the location where such officers are to be provided (whether in the parking lot or on the premises). Upon receiving the written notice of security requirements, the licensee shall conform to those requirements within forty-eight hours of service thereof and shall maintain those requirements in full force and effect until such time as the chief of police deems they are no longer necessary. A licensee may appeal the imposition of conditions imposed as follows:
(1) The action of the chief of police in the imposition of conditions described in this subsection (A)(11)(b) shall be subject to an appeal to the city council. Notice of such appeal shall be filed with the city clerk within ten days after the imposition of any conditions. Upon failure to file such notice within the ten-day period, the action of the chief of police shall be final and conclusive.
c. The licensee shall not knowingly permit any obviously intoxicated person to participate in any card game.
d. The licensee shall not knowingly permit any illegal activity to occur on the premises or in the parking lot used by the cardroom for its patrons or employees. Illegal activity includes, but is not limited to, narcotics violations, bookmaking, illegal gambling, loansharking, receiving stolen property or prostitution.
12. The following restrictions on the location of cardrooms shall apply:
a. Subject to such additional restrictions specified herein, no cardroom shall be located in an area other than those permitted by Title 17. The location of cardrooms in the city of Folsom shall be determined through the regulatory land use process of obtaining a conditional use permit from the planning commission on a case by case basis. After the effective date of the ordinance codified in this section, no new cardroom shall be located within the C-3 zoning district (central business district) along East Bidwell Street in the city of Folsom.
b. Cardrooms may be allowed in the C-2 and C-3 zones only after the issuance of a conditional use permit from the planning commission as specified above and a license to operate from the city council.
c. No cardroom shall be located within three hundred feet of any other cardroom, as measured from the public access of one cardroom to the closest public access of any other cardroom.
d. No cardroom shall be located within three hundred feet of any existing church, school, park, playground or other area of juvenile congregation, hospital, or convalescence facility. Such distance shall be measured from the property line of the existing structure or facility to the nearest public access of such cardroom.
e. No cardroom may be operated on property or within premises other than those approved during the licensing process. Any attempt to change the location of any cardroom shall result in the immediate revocation of the license.
f. Cardrooms shall be located on the ground floor of the premises.
g. Each cardroom shall be separated from other activities on the premises.
13. The following provisions shall govern wagering limits: It is unlawful for any person to bet or wager at or against any card game held at a licensed gaming club except as allowed by this chapter. In addition to any conditions that may be imposed on a license, the following restrictions shall apply:
a. There shall be no wagering limits including during tournaments. For purposes of this section, “tournament” shall mean a series of games played by a specified group of participants on a preestablished date and time. A cardroom licensee shall advise the chief of police of any proposed tournament and proposed wager limits no later than fifteen days prior to the scheduled date of the tournament. The chief of police shall have the power to disapprove any tournament within seven days after receipt of a tournament application. The chief of police shall establish regulations governing the operation of tournaments, which shall be available to the public. The chief of police shall review any application for proposed tournament play against such regulations and shall issue an authorization setting forth the conditions for tournament play to the applicant. The written authorization shall be posted at the cardroom in a conspicuous location. If the applicant disagrees with the determination of conditions for tournament play, the applicant may file an appeal with the planning commission within ten days of receiving the notification from the chief of police. The decision of the planning commission shall be final.
b. It is unlawful to allow or permit money, as opposed to tokens, chips, or other representatives of money, to be used as ante or bet in any game played in the gaming club.
c. No licensee shall allow any player to wager any sum in excess of the value of the chips or other playing tokens which such player has purchased from the gaming club, or which represent winnings achieved by the player.
d. Notice of all the provisions and restrictions provided in this section shall be posted in a conspicuous place in the cardroom. (Ord. 1334 §§ 2, 3, 2022; Ord. 1131 § 2, 2010; Ord. 924 § 2 (part), 2000; Ord. 886 § 2, 1998; Ord. 842 § 2 (part), 1996)
5.20.080 Value and transfer—Prohibited.
A. The privilege conferred by a license is not property and shall have no value.
B. Except as provided in Section 5.20.090, a cardroom license shall not be transferable. Any attempt to transfer, directly or indirectly, a cardroom license in violation of the provisions of this chapter shall automatically revoke the license. For the purposes of this chapter a prohibited transfer of a cardroom license shall include, but not be limited to, the following:
1. A transfer of ownership or a transfer of an undivided interest in a cardroom license;
2. The assignment or transfer of a license from a partnership to one or more of the individual partners, or the addition of a new partner;
3. Where the cardroom license has been granted to a corporation, the issuance or transfer of shares of stock to any person, entity or group not listed as having an interest in the cardroom license when it was granted, which results in that person, entity, or group owning ten percent or more of the corporate stock;
4. The sale, lease, or other transfer of a business where the cardroom is considered part of the business and the cardroom license is intended to pass with the sale, with or without consideration, even though the sale, lease or transfer may be made conditioned upon the successful transfer of the license to the buyer;
5. Entering into any arrangement or agreement whereby the license or any interest therein or the transfer of the license is pledged as security for a loan or the fulfillment of an obligation or agreement. (Ord. 617 § 2 (part), 1988)
5.20.090 Transfers excepted.
A. Notwithstanding the prohibitions contained in this chapter against the transfer of a cardroom license, an application by a cardroom licensee for a change of location, or an application by a successor in interest in his own name to operate the same business as the former licensee, may be made to the city council in the following situations:
1. A change of location not involving any change in identity of the licensee;
2. A change in business organization where there is no change in the identity of the principals holding the license;
3. The death of a licensee, where the application is made on behalf of the surviving business associates, or spouse, or children of the deceased licensee;
4. Any situation where the city council may, in its discretion, upon prior request of a party, permit an application to be filed pursuant to this section by reason of special facts pleaded which might give rise to practical difficulty or undue hardship.
B. An application for a transfer of a cardroom license made under this section shall be made to the city council and acted upon and considered in the same manner as an application for an original license; provided, however, that the council, in considering an application under this section, may disregard the limitations on the number of licensed cardrooms allowable in the city at any time, where it finds that practical difficulty or undue hardship would result from a denial and there is no other basis for denial. (Ord 617 § 2 (part), 1988)
5.20.100 Employee work permits.
It shall be unlawful for any licensee to employ any person as a cardroom employee or permit any person to serve as an independent agent for the cardroom unless such person has first obtained a valid work permit issued by the state of California. Copies of such work permits shall be available for inspection by the city’s law enforcement officials during the cardroom’s hours of operation. For the purpose of this section, cardroom employees are defined as dealers, overseers and others directly connected with the operation and supervision of the card tables, or as the term “cardroom employee” is defined by the Division of Gambling Control. Work permits as defined in this section are not required for waitresses, bartenders, culinary workers and others not connected with the operation and supervision of the card tables. (Ord. 924 § 2 (part), 2000)
5.20.110 Revocation and suspension of license or work permit.
A. The city council shall have the right for cause to revoke or suspend any cardroom license issued hereunder. Any of the grounds upon which the city council and chief of police may or shall be required to refuse to issue an initial cardroom license shall also constitute grounds for such revocation or suspension. The misrepresentation of a material fact in any application or the failure of a holder of a cardroom license to comply with the provisions of this chapter shall also constitute grounds for revocation or suspension of such license. In addition, if, for a consecutive period of six months or more, any person licensed hereunder fails to operate a cardroom, the license may be revoked.
B. No cardroom license shall be suspended or revoked by the city council until a hearing is held thereon. Written notice of the hearing shall be given to the licensee at least one month prior to the holding thereof, which notice shall specify the grounds for suspension and/or revocation.
C. In any hearing before the city council on the suspension or revocation of a cardroom license, witnesses may be sworn; however, formal rules of evidence applicable to proceedings before the trial courts of this state shall not be applicable. The decision of the council shall be in the form of a resolution, supported by written findings of fact. (Ord. 924 § 2 (part), 2000)
5.20.120 Exemptions.
The provisions of this chapter shall not apply to cardrooms of a nonprofit society, club, fraternal, labor or other similar organization not open to the general public and whose membership is restricted to those persons regularly and formally elected to membership therein and paying regular dues to such organizations. (Ord. 617 § 2 (part), 1988)
5.20.130 Enforcement.
A. This title shall be enforced pursuant to the provisions of Chapters 1.08 through 1.10, inclusive.
B. The chief of police shall enforce the provisions of this chapter. (Ord. 875 § 7 (part), 1997)
5.20.140 Penalties.
A. A violation of this chapter shall be an administrative violation as defined in Section 1.08.020. In addition to enforcement by any procedure set forth in Chapters 1.08 through 1.10, inclusive, any violation of this chapter shall be punishable as a misdemeanor, which shall be punishable by a fine not to exceed one thousand dollars, or by imprisonment in the county jail for not more than six months, or by both fine and imprisonment.
B. Each of the sanctions for administrative violations identified in Section 1.09.013 shall be available for enforcement of the provisions of this chapter.
C. In addition to the criminal penalty set forth in subsection A of this section, based upon the criteria for the imposition of administrative sanctions set forth in Section 1.09.014, a violation of a provision of this chapter shall be deemed a Level E violation, as that term is described in Section 1.09.012. The range of monetary sanctions available for a violation of this chapter shall be as set forth in Section 1.09.012(A)(5). (Ord. 875 § 7 (part), 1997)
5.20.150 Enforcement procedures—Notice to correct.
A. Prior to the suspension, revocation or denial of any license, or the assessment of any fee, penalty or charge, or the commencement of any other enforcement action pursuant to this chapter, the enforcement authority shall follow the procedures set forth in Sections 1.09.020 through 1.09.048, inclusive. The rights to judicial review set forth in Sections 1.09.050 through 1.09.059, inclusive, shall apply.
B. A notice to correct shall not be required to commence the administrative hearing procedures set forth in Chapters 1.08 through 1.10, inclusive, for violations of this chapter. Pursuant to Section 1.09.024(A), a notice of administrative violation shall be served in accordance with the provisions of Section 1.09.027. (Ord. 924 § 2 (part), 2000; Ord. 875 § 7 (part), 1997)