HomeMy WebLinkAboutAgenda Report - May 17, 2006 K-06AGENDA ITEM K4" 6
CITY OF LODI
COUNCIL COMMUNICATION
TM
AGENOOk TITLE: Introduce Ordinance Repealing and Reenacting Lodi Municipal Code Title
5, Permits and Regulations, Chapter 5.92 Cardrooms, allowing Lodi Card
Rooms to play Texas Hold'em.
MEETING DATE: May 17, 2006 City Council Meeting
4�AftO BY; City Attorney's Office
P P I .
RECOWAENDED ACTION: Introduce the ordinance as presented.
BACKGROUND INFORMA71ON: Council directed the City Attorney's Office to propose revisions to
the cardroom ordinance to allow for the playing of Texas Hold'em at the request of Jack Morgan, owner
of Jacks Back Cardroom, Lodi's only current cardroom. Staff prepared a draft ordinance and submitted it
to the California Department of Justice Department of Gambling Control for review, made their suggested
revisions to make our current ordinance consistent with California Law Governing Card Rooms and is
now submitting it for Council consideration.
The primary changes are as follows: 1) The game of Texas Hold'em has been added to the list of elgible
games; 2) the card tables have been increased from six to seven and the players per table has been
increased from 7 to 10; 3) the establishment will be allowed to have exterior signage consistent with our
sign code; 4) the cardroom will pay nine percent of its gross receipts to cover the City's costs connected
with the operation of the cardroom; and the rules for restricting denying and revoking licensure have been
tightened to be consistent wfth the Business and Professions Code. A redlined draft will be attached in
blue sheet at the council meeting reflecting the changes.
FISCAL IMPACT: Unknown revenue to the general fund.
—XA pro d Y--�
V, Stephen chwabauer, City Attorney
Approved:
Piste, Interim Finance Di or
APPROVED: i'
Blair KinjDDRy Manager
ORDINANCE NO,
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
LOD] AMENDING LODI MUNICIPAL CODE TITLE 5 —
PERMfTS AND REGULATIONS, BY REPEALING AND
REENACTING CHAPTER 5.12, "CARDROOMS" IN ITS
ENTIRETY
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LODI AS FOLLOWS:
Section 1. Lodi Municipal Code Title 5 — Permits and Regulations is hereby amended by
repealing and reenacting Chapter 5.12 "Cardrooms" in its entirety, and shall read as follows:
Chapter 5.12
Cardrooms
Sections:
5.12.010
Definitions.
5.12.015
No V@0d Right.
5.12.020
Comp ince with State Law.
5.12.030
Licensee—Required.
5.12.040
License—Application.
5.12.050
Licensee --Denial Grounds,
5.12.060
License—Appeal from Denial.
5.12.070
Work Kermit—Required.
5.12.080
Work hermit—Denial Grounds.
5.12.090
Work Permit—Appeal from Denial.
5.12.100
Work Permit—Fee—Term—Identification Measures.
5.12.110
Work Permit—Renewal.
5.12.120
Work hermit—f=ailure to Renew.
5.12.130
Suspension or Revocation—Procedure.
5.12.140
Rules end Regulations.
5.12.150
State—Prohibited Games.
5.12.160
Business License Required.
5.12.170
Gross Revenue Permit Fees.
15.12.010 Definitions.
For the purpose of this chapter:
A. °Cardroom" means any space, room or enclosure, furnished or equipped with a table
used or intended to be used as a cardtable for the playing of cards and similar games, and
the use of which is available to the public, or any portion of the public. pFevided, hevmyeF,
that thi6 seGtiw shall met apply te aRy bena fide FeligiGU6, F19RPFQfit s9ei*, slub, ,
.
B. "Cardr om a to ee" means any natural person employed in the o eration of a
gambling enterprise, includin without limitation dealers floor personnel, security
employees,_cogntroorn personnel, age_ personnel, collection personnel surveillance
erersonnel, data-procgssinq personnel, appropriate maintenance personnel waiters and
waitresses and sec[glaries, or any other natural person whose employment duties require
or authorize access to restricted gambling establishment areas.
C. "Gross Revers e" means and includes seat rental fees membership fees table
revenues rental fees and charges, and any and all other gaming revenues derived from
activities conducted on or within the card room premises.
D, "Financial Interest" means any director indirect financial interest in the management
eration ownership.- profits or revenue(gross or net of a card room. A direct financial
interest means a moretary investment in a card room. An indirect financial interest means
owning one percent M or more of any entity, i.e. any business corporation, moint venture
partnership or trust th t in turn has a direct financial interest in a card room.
.12.015, No Veste Ri Iht.
This article does_ not create any vested or other property right of any kind in any permittee,
intholder, key management employee, or other person. The city reserves the right to at
any time amend modify or repeal the provisions of this article and to otherwise regulate or
prohibit any privilege exercised hereunder. This reservation includes but is not limited to the
right of the city to am nd from time to time a permit issued pursuant to the terms of this
article by resolution of the City Council.
5.12.020 Compliance with state law.
Any person or persons wishing to apply for any license or permit authorized in this chapter
must comply with not only this chapter, but with Sections 330 through 337 of the California
Penal Code. In each case where a license is issued, it shall be nontransferable.
It is the stated purposg of this article to regulate card rooms in the City,of Lodi concurrent)
with the State of Calif nia and to impose local controls and regulations upon card rooms as
codified in the "Gamb&q Control Act" as codified in Division 8 Chapter 5 of the California
Business and Professions Code (commencing with Section 19800). All such references to
the Gambling Control Act are to Division 8, Chapter 5 of the California Business and
Professions Code as may be amended.
5.12.030 License -Required.
It is unlawful for any person to engage in or carry on, or to maintain or conduct, or cause to
be engaged in, carried on, maintained or conducted, any card room in the city without first
having secured a license to do so, or without complying with each regulation contained in
this chapter pertaining to such cardroom.
S. 12.040 License --Application.
A. Any applicant for a cardroom license shall submit his application to the chief of
police, which application shall be under oath, and shall include, among otherthings, the true
names and addresses of all persons financially interested in the business. The term
"persons financially irterested" includes all persons who share in the profits of the business,
on the basis of gross or net revenue. The past criminal record, if any of the applicant and of
all persons financially interested in the business shall be shown on such application. The
application shall also be accompanied by fingerprints of the applicant and of persons
financially interested in the business.
B. The applicant shall pay a fee to the finance department of the city to defray the cost
of investigation in an amount as may be fixed and established from time to time by resolution
of the city council.
5.12.050 License --Denial grounds.
The chief of police shall deny any applicant for a cardroom license, a license to operate such
room if:
A. The applicant has previously been convicted of a felony and a peFied of five years
including a
conviction by a federal court or a court in another state for a crime that would be a felony if
committed in California; or
B. The applicant has previously been convicted of 8Re9Mh8fGllGWiRg a misdemeanor
WalatioRs and a period of thFee yeaFs has riot elapsed 1FGFA the date of
involving dishonesty, scrambling, or moral turpitude within the 10 -year period immediately
C. The aoolicant fails to clearly establish eligibility and qualification under this Chapter
and under Business apd Professions Code Section 19800 et sea._
D. The applicant fails to provide information, documentation and assurances required
by this Chapter, or failure to reveal any fact material to qualification, or supplying false
information.
E. Association of the applicant with criminal profiteering activity or organized crime as
defined by Section 156.2 of the _Penal Code.
3
5.12.060 License --Appeal from denial.
The action of the chief of police in denying such a license 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 denial of the license. Upon failure to file such notice within the ten-day period, the action
of the chief of police in denying such license shall be final and conclusive.
5.12.070 Work permit --Required.
A. Each cardroorn employee must obtain and possess a valid work permit issued by the
chief of police. '
Mf thp
Applications for such work permits shall be submitted
under oath and contain the past criminal record, if any, of the applicant and such information
as may be necessary to determine whether the applicant is a proper person to be employed
in a cardroom. Fingerprints of the applicant shall accompany the application. A work permit
shall be issued only to persons twenty-one years of age or older.
B. Any application for a work permit shall be subject to objection by the state division. If
the division objects to the issuance of a work permit it shall be denied. Such a denial may be
reviewed in accordance with the Gambling Control Act (Business and Professions Code
Section 19801 et seq.).
8.12.080 Work permit --Denial grounds.
The chief of police shall deny to w mh any applicant a-WOFk PeRnit-i#:—#or a cardroom license
a license to operate such room if:
A. The applicant has previously been convicted of a felony,
including a conviction by a federal court or a court in another state for a crime that would be
a felony if committed kr California: or
B. The applicant has previously been convicted of eRe of the fellowing a misdemeanor
,
3. ARy seFies of petty theft;
,
involving dishonesty, gambling,or moral turpitude within the 10 -year period immediatel
preceding the submi ion of the application, unless the applicant has been granted relief
pursuant to Section_ 1203.4,_ 1203.4a, or 1203.48 of the Penal Code.
4
C. The amlicant fails to clearly establish eligibility and Qualification under this Chapter
and under Business and Professions Code Section 19800 et seg.
D. The applicant fails to provide information, documentation and assurances required
this Cha ter or f ilure to reveal any fact material to qualification, or suppiying supplyingfalse
information.
E. Association of the applicant with criminal orofiteering activity or or anized crime as
defined by Section 1§§.2 of the Penal Code.
5.12.090 Work pern*--Appeal from denial.
The action of the chief of police in denying such work permit shall be subject to an appeal to
the city manager. Notice of such appeal shall be fled with the city clerk within ten days after
the denial of the work permit. Upon failure to file such notice within the ten-day period, the
action of the chief of police in denying such work permit shall be final and conclusive.
5.12.100 Work pem*--Fee--Term--Identification measures.
A. Each application for a work permit shall be accompanied by an application fee, to be
paid to the finance department, in an amount as may be fixed and established from time to
time by resolution of the city council. The fee shall not be returned in the event that such
work permit is refused, revoked or suspended as provided in this chapter.
B. The work permit shall be valid even though the holder of the permit may change his
place of employment within the city. Upon approval of a work permit, the work permit shall be
valid, unless suspended or revoked, for a period of one year from date of issuance.
C. In order that the chief of police may investigate the applicant's qualifications and
fitness to receive a cardroom employee work permit, every applicant shall be photographed
and fingerprinted.
S. 12.110 Work permit --Renewal.
Any person who hold$ a valid cardroom employee work permit may obtain a new permit for
the succeeding year by applying for the new permit during the month preceding the
expiration date of the current permit. Cost for the new permit, which shall include the cost of
a new identification card, shall be paid to the finance department, and shall be an amount as
fixed and established from time to time by resolution of the city council.
5.12.120 Work perrr*--FaNure to renew.
If the holder of a cardroom employee work permit fails to renew the permit, his permit shall
cease to be valid and he must make application for a new permit, if desired, as provided in
this chapter.
5.13.130 Suspension or revocation --Procedure.
A. The chief of police has the right for cause to revoke or suspend any cardroom
license or card room work permit issued under this chapter and to take possession of such
permits.
B. Any of the grounds upon which the chief of police is required to refuse to issue an
initial cardroom license or cardroom work permit also constitutes grounds for such
revocation or suspension. In addition, the failure of a holder of a cardroom license or
cardroom work permit to comply with the provisions set forth in this chapter also constitutes
grounds for revocation or suspension of such license or work permit.
C. Suspension or revocation of a cardroom work permit shall be made only after a
hearing granted to the holder of such permit before the chief of police, afterfive days' notice
to the permit holder, setting forth the grounds of the complaint against him and stating the
time and place where such hearing will be held. The action of the chief of police in this
respect is subject to an appeal to the city manager. Notice of such appeal shall be filed with
the city clerk within ten days after the revocation or suspension. Upon failure to file such
notice within the ten-day period, the action of the chief of police in revoking or suspending
the license or work permit shall be final and conclusive.
6.12.140 Rules and regulations.
It is unlawful to operate a cardroom in violation of any of the following regulations and rules:
A. Not more than one cardroom shall be located at any one address.
B. No game except lowball, draw poker, without variations as defined by Hoyle,
pinochle, pangini, rummy, Texas Hold 'Em and contract or auction bridge as those games
are defined by the California Department of Justice, Division of Gaming Control shall be
played in any cardroom.
C. Not more than six pj ht tables shall be permitted in any cardroom. No more than 64
eft tables shall be permitted to operate within the city.
D. Not more than seven ten players shall be permitted at any one cardtable.
E. Cardrooms shall be located on the ground floor, and so arranged that cardtables and
the players at the tables shall be plainly visible from the front door opening when the door is
opened. No wall, partition, screen or similar structure between the front door opening on the
street and any cardtable located in the cardroom shall be permitted if it interferes with the
visibility.
No gambling establishment may be located in any zone which has not been specifically
approved for such a business. Additionally none may be located near any of the unsuitable
areas, as specified in Business and Professions Code Section 19852 (a) (3).
F. No mineFpers9n under the age of 21 shall be permitted at any cardtable, nor shall
any mine person un . er the age of 21 be permitted to participate in any game played
thereat.
G.
t#e #ellew day. Cardrooms may be operated seven days a week and shall not open until
the hour of ten aim. Cardrooms shall close at two a.m. on the mornings of Monday�
Tuesday, Wednesday, Thursday and Friday. Cardrooms may,remain o en until the hour of
four a.m. on the mornings of Saturday and Sunday. A cardroom shall adopt a schedule of
6
hours of operation before it shall be allowed to operate. Such schedule of hours shall be
approved by the City and SuGh appFaved sehedule of Mum shall be learly posted at the
cardroom in order to provide adequate notice of its hours of operation.
H. All cardrooms shall be open to police inspection during all hours of operation.
I. Only table stakes shall be permitted.
J. The cashing of bank checks for players shall not be permitted in any cardroom.
K. Each cardtabl a shall have assigned to it a person whose duty shall be to supervise
the game to see to it that it is played strictly in accordance with the terms of this chapter, and
with the provisions of the Penal Code of the state. This person may have more than one
table under his supervision. He shall not, however, participate in the game.
L.
M—. There shall be posted in
every cardroom in letters plainly visible from all parts thereof, signs stating that no game
except lowball, draw poker without variations as defined by Hoyle, pinochle, pangini, rummy,
Texas Hold 'Em and contract or auction bridge as those games are defined by the California
Department of justice, Division of Gaming Control shall be played in the cardroom. These
signs shall also contain such other information relating to the regulations contained in this
chapter as the chief of police may require.
M. No person who is in a state of intoxication shall be permitted in any cardroom.
N. The sale, purchase, transfer, assignment or pledge of any property, or of any
document evidencing title to the same, is prohibited in any cardroom.
O. The operator or his employees shall not extend credit to a player, norshall he accept
IOU's or other notes, loan money to any person on any ring, watch or other article of
personal property for the purpose of securing tokens, chips or other representatives of
money as an ante.
P. No shills shall engage in card games. This prohibition shall not apply to house
players, provided theywear a badge in a conspicuous place, which badge identifies them as
employees of the licensee.
0. Patron Security and Safety. Each cardroom license shall be responsible and liable
for its patrons' safety and security in and around the cardroom establishment. Before it shall
be allowed to operate, each cardroom shall adopt a plan, to be approved by the city, to
provide for the safety and security of its patrons.
$A 2.150 State -prohibited games.
The city council declares that it is not the intention of this chapter to permit the licensing of
any cardroom for the playing of any game prohibited by the laws of the state, including but
not limited to those games enumerated in Section 330 of the Penal Code of the state, which
section includes banldng and percentage games.
7
6.12.160 Business Ikense required.
Operators of cardrooms shall be required to obtain a business license pursuant to Chapter
5.04 of this code.
.'12.1 lot Gros rev ue p2EMit fees.
a In addition t9 the permit fees previously prescribed each ermittpermitted
pursuantto th@_proyi*ns of this article shall pay to the city a monthy fee equal to 9 % of the
wrross revenue of the permittee received from the cardroom_ operation. Such payment shall
be made to the city ng later than fifteen (15) days „after the end „of each month during which
such gross revenues on which it was computed were received by the permittee.
{b) Each_perrnitte_0 shall file with the Finance Department before the 15th day following
the end of each month a statement, under oath, showing the true and correct amount of
g_ e g business permitted by the permit issued to the
gross revenue derived from the card game busi ,
permittee for the preceding month. Such statement shall be accompanied by the payment of
the correct amount of permit fee due and owing in accordance with the provisions of
Subsection aI of this section and such sums correctly reflecting the monthly fees payable
for the preceding month shall be acceptedby_the city, subiect, however, to the right of the
city to audit the matters reported in the statement to determine the accuracy of the figures
contained therein and whether or not the correct amount payable to„the city has been paid.
A si ned declaration Oall be attached to the statement or included therein which shall be in
substantially the same form:
"I hereby declare under penalty of periury that the foregoing is true and correct.
Rection 2. No Mandoory Duty of Care. This ordinance is not intended to and shall not be
construed or given effect in a manner which imposes upon the City, or any officer or
employee thereof, a mandatory duty of care towards persons or property within the City or
outside of the City so as to provide a basis of civil liability for damages, except as otherwise
imposed by law.
§egtion 3. All ordinances and parts of ordinances in conflict herewith are repealed insofar
as such conflict may exist.
Seat
pri 4. This ordinance shall be published one time in the "Lodi News Sentinel,” a daily
newspaper of general circulation printed and published in the City of Lodi, and shall be in
force and take effect 30 days from and after its passage and approval.
Attest:
SUSAN J. BLACKSTON
City Clerk
8
Approved this day of 2006.
SUSAN HITCHCOCK
Mayor
State of California
County of San Joaquin, ss.
I, Susan J. Blackston, City Clerk of the City of Lodi, do hereby certify that Ordinance No.
was introduced at a regular meeting of the City Council of the City of Lodi held May 17,
2006, and was thereafter passed, adopted, and ordered to print at a regular meeting of said
Council held , 2006, by the following vote:
AYES: COUNCIL MEMBERS —
NOES: COUNCIL MEMBERS —
ABSENT: COUNCIL MEMBERS —
ABSTAIN: COUNCIL MEMBERS —
I further certify that Ordinance No. was approved and signed by the Mayor of the date
of its passage and they same has been published pursuant to law.
Approved as to Form:
D. STEPHEN SCHWABAUER
City Attorney
9
SUSAN J. BLACKSTON
City Clerk