HomeMy WebLinkAboutAgenda Report - April 15, 2009 L-02AGENDA ITEM L-02
CITY OF LODI
COUNCIL COMMUNICATION
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AGENDA TITLE: Ordinance No. 1821 Entitled, "An Ordinance of the City Council of the City of Lodi
Amending Lodi Municipal Code Title 5 — Permits and Regulations— by Repealing
and Reenacting Chapter 5.12, "Cardrooms," in its Entirety"
MEETING DATE: April 15,2009
PREPARED BY: City Clerk
RECOMMENDED ACTION: Motion waiving reading in full and (following reading by title)
adopting the attached Ordinance No. 1821.
BACKGROUND INFORMATION: Ordinance No. 1821 entitled, "An Ordinance of the City Council of
the City of Lodi Amending Lodi Municipal Code Title 5 — Permits and
Regulations — by Repealing and Reenacting Chapter 5.12,
'Cardrooms,' in its Entirety," was introduced at the regular City
Council meeting of April 1, 2009.
ADOPTION: With the exception of urgency ordinances, no ordinance may be passed within five days of
its introduction. Two readings are therefore required —oneto introduce and a second to adopt the
ordinance. Ordinances may only be passed at a regular meeting or at an adjourned regular meeting;
except for urgency ordinances, ordinances may not be passed at a special meeting. Id. All ordinances
must be read in full either at the time of introduction or at the time of passage, unless a regular motion
waiving further reading is adopted by a majority of all council persons present. Cal. Gov't Code § 36934.
Ordinances take effect 30 days after their final passage. Cal. GovT Code § 36937.
This ordinance has been approved as to form by the City Attorney.
FISCAL IMPACT
FUNDING AVAILABLE:
RJTJmP
Attachment
None.
None required. �i�
APPROVED:��~l
Blair , City Manager
coune ftouncom/Ordinance2.doc
ORDINANCE NO. 1821
AN ORDINANCEOF THE CITY COUNCIL OF THE CITY OF
LODI AMENDING LODI MUNICIPALCODE TITLE 5- PERMITS
AND REGULATIONS -BY REPEALINGAND REENACTING
CHAPTER 5.12, "CARDROOMS," IN ITS ENTIRETY
-M--
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BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LODI AS FOLLOWS:
Section 1. Lodi Municipal Code Title s-PermitsandRegulations-is herebyamended
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 Vested Right.
5.12.020
Compliancewith State Law.
5.12.030
License—Required.
5.12.040
License—Application.
5.12.050
License—Denial Grounds.
5.12.060
License —Appeal from Denial.
5.12.070
Work Permit—Required.
5.12.080
Work Permit—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 Permit—Failureto Renew.
5.12.130
Suspension or Revocation—Procedure.
5.12.140
Rules and Regulations.
5.12.150
State—Prohibited Games.
5.12.160
Business License Required.
5.12.170
Gross Revenue Permit Fees.
5.12.010 Definitions.
For the purpose of this chapter:
A. "Cardroom" means any space,room, or enclosure, furnished orequipped 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.
B. "Cardroom employee" means any natural person employed in the operation of a
gambling enterprise, including, without limitation, dealers, floor personnel, security
employees, countroom personnel, age personnel, collection personnel, surveillance
personnel, data-processing personnel, appropriate maintenance personnel, waiters and
waitresses, and secretaries, or any other natural person whose employment duties require
or authorize access to restricted gambling establishment areas.
C. "Gross Revenue" 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 direct or indirectfinancial interest in the management,
operation, ownership, profits, or revenue (gross or net) of a card room. A direct financial
interest means a monetary investment in a card room. An indirectfinancial interest means
owning one percent (1 %)or more of anyentity, i.e., any business, corporation, joint venture
partnership, or trust that in turn has a direct financial interest in a card room.
5.12.015. No Vested Right.
This article does not create any vested or other property right of any kind in any permittee,
pointholder, key management employee, or other person. The city reserves the rightto, 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 amend, 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 personswishing to apply for any license or permit authorized in this chapter
must complywith not only this chapter, butwith 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 purpose of this article to regulate card rooms in the City of Lodi concurrently
with the State of California, and to impose local controls and regulations upon card rooms as
codified in the "Gambling Control Act" as codified in Division 8, Chapter 5 of the California
Business and ProfessionsCode (commencingwith Section 19800). All such referencesto
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.
5.12.040 License—Application.
A Any applicant for a cardroom license shall submit his application to the chief of
police, which application shall be underoath, and shall include, among otherthings, the true
names and addresses of all persons financially interested in the business. The term
"persons financially interested" includes all personswho 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 befixed 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 applicantfor a cardroom license, a licenseto 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 in
California; or
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B. The applicant has previouslybeen convicted of a misdemeanorinvolving dishonesty,
gambling, or moral turpitude within the ten-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.
C. The applicantfails to clearly establish eligibilityand qualification underthis Chapter
and under Business and Professions Code Section 19800 et seq.
D. The applicantfails 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 applicantwith criminal profiteering activity or organized crime as
defined by Section 186.2 of the Penal Code.
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 cardroom employee must obtain and possess a valid work permit issued bythe
chief of police. 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. Fingerprintsof the applicantshall accompany the application. A work permitshall
be issued only to persons 21 years of age or older.
B. Any applicationfor a work permitshall be subjectto objection bythe state division. If
the division objects to the issuance of a work permit, it shall be denied. Such a denial may
be reviewed in accordancewith the Gambling Controf Act (Business and Professions Code
Section 19801 et seq.).
5.12.080 Work permit—Denial grounds.
The chief of police shall deny any applicantfor a cardroom license, a licenseto 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 in
California; or
B. The applicant has previouslybeen convicted of a misdemeanor involving dishonesty,
gambling, or moral turpitude within the ten-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.
C. The applicantfails to clearly establish eligibilityand qualification underthis Chapter
and under Business and Professions Code Section 19800 et seq.
D. The applicantfails to provide information, documentation, and assurances required
by this Chapter, or failure to reveal any fact material to qualification, or supplying false
information.
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E. Association of the applicantwith criminal profiteering activity or organized crime as
defined by Section 186.2 of the Penal Code.
5.12.090 Work permit—Appeal from denial.
The action of the chief of police in denying such work permitshall be subjectto an appeal to
the city manager. Noticeof such appeal shall be filed with the city clerkwithin ten days after
the denial of the work permit. Upon failure to file such noticewithin 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 permit— Fee —Term —Identificatiormeasures.
A. Each application for a work permitshall be accompanied byan applicationfee, to be
paid to the finance department, in an amount as may be fixed and establishedfrom 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 permitshall be valid even though the holderof the permit may change his
place of employment within the city. Upon approval of awork permit, the work permitshall 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 receivea cardroom employeework permit, every applicant shalI be photographed
and fingerprinted.
5.12.11€1 Work permit—Renewal.
Any person who holds a valid cardroom employee work permit may obtain a new permitfor
the succeeding year by applying for the new permit during the month preceding the
expiration date of the current permit. Costforthe new permit, which shall includethe cost of
a new identification card, shall be paid to the finance department, and shall be an amountas
fixed and established from time to time by resolution of the city council.
5.12.120 Work permit—Failure to renew.
If the holder of a cardroom employee work permitfails 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.
5.12.130 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 underthis chapter and to take possessionof 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
cardroomwork permitto complywith the provisions setforth 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
hearinggranted to the holderof such permit beforethe 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
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respect is subjectto an appeal to the city manager. Noticeof such appeal shall befiled with
the city clerk within ten days after the revocation or suspension. Upon failure to file such
notice within the tern -day period, the action of the chief of police in revoking or suspending
the license or work permit shall be final and conclusive.
5.12.140 Rules and regulations.
It is unlawful to operate a cardroom in violation of any of the following regulationsand rules:
A. Not more than one cardroom shall be located at any one address
B. Only those card games approved by and as defined by the California Departmentof
Justice, Division of Gaming Control, shall be played in any cardroom.
C. Not more than eleven tables shall be permitted in any cardroom. No more than
eleven tables shall be permitted to operate within the city.
D . Not more than ten players shall be permitted at any one cardtable.
E. Cardroomsshall be locatedon the ground floor, and so arrangedthat cardtables and
the players at the tables shall be plainlyvisible from the front door openingwhen the door is
opened. Nowall, partition, screen or similar structure between the front dooropening 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 nearany of the unsuitable
areas, as specified in Business and Professions Code Section 19852 (a) (3).
F. No person under the age of 21 shall be permitted at any cardtable, nor shall any
person under the age of 21 be permitted to participate in any game played thereat.
G. Cardrooms may be operated seven days aweek and shall notopen untilthe hourof
eighta.m. Cardrooms shall close no laterthan four a.m. A cardroom shall adopt schedule
of hours of operation before it shall be allowed to operate. Such schedule of hours shall be
clearly 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 cardtable 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 accordancewith 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. There shall be posted in every cardroom in letters plainly visible from all parts
thereof, signs stating that only games approved by and as defined by the California
Departmentof 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 properly, or of any
document evidencing title to the same, is prohibited in any cardroom.
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O. The operatoror his employees shall not extend creditto 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 they wear a badge in a conspicuous place, which badge identifiesthem as
employees of the licensee.
Q. Patron Security and Safety. Each cardroom license shall be responsible and liable
for its patrons` safetyand security in and around the cardroom establishment. Before itshall
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.
5.12.150 State—prohibited games.
The city council declares that it is not the intention of this chapter to permitthe licensing of
any cardroom for the playing of any game prohibited by the laws of the state, including but
not limitedto those games enumerated in Section 330 of the Penal Code of the state, which
section includes banking and percentage games.
5.12.160 Business license required.
Operators of cardroomsshall be required to obtain a business license pursuantto Chapter
5.04 of this code.
5.12.170 Gross revenue permit fees.
(a) In addition to the permit fees previously prescribed each permittee permitted
pursuantto the provisionsof this article shall payto the city a monthlyfee equal to 9% of the
gross revenue of the permittee received from the cardroom operation. Such payment shalI
be made to the city not later than 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 permittee shall file with the Finance Department before the W' day following
the end of each month a statement, under oath, showing the true and correct amount of
gross revenue derived from the card game business permitted by the permit issued to the
permitteefor the preceding month. Such statement shall be accompanied bythe paymentof
the correct amount of permit fee due and owing in accordance with the provisions of
Subsection (a) of this section, and such sums correctly reflectingthe monthlyfees payable
for the preceding month shall be accepted by the city, subject, 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 notthe correctamount payableto the city has been paid.
A signed declaration shall be attached to the statement or included therein, which shall be in
substantially the same form:
"I hereby declare under penalty of perjurythat the foregoing is true and correct.
Section 2. No Mandatory 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 liabilityfor damages, except as otherwise
imposed by law.
Section 3. All ordinances and parts of ordinances in conflict herewith are repealed insofar
as such conflict may exist.
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Section4. This ordinance shall be published onetime 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.
Approved this 15th day cfApril, 2009.
LARRY D. ANSEN
Mayor
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State of California
County of San Joaquin, ss.
I, Randi Johl, City Clerk of the Cityof Lodi, do hereby certifythat Ordinance No. 1821 was
introduced at a regularmeeting of the City Council of the Cityof Lodi heldApril 1,2009, and
was thereafter passed, adopted, and ordered to print at a regular meeting of said Council
held April 15,2009, by the following vote:
AYES: COUNCIL MEMBERS— Johnson, Katzakian, and Mayor Hansen
NOES: COUNCIL MEMBERS — Hitchcock
ABSENT: COUNCIL MEMBERS — Mounce
ABSTAIN: COUNCIL MEMBERS— None
Ifurther certify that Ordinance No. 1821 was approved and signed bythe Mayorof the date
of its passage and the same has been published pursuant to law.
•
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