For the purpose set forth herein, a "card room" is hereby defined to be a business, activity or enterprise conducting card games, as defined in this chapter, and licensed under the provisions of this chapter, furnished or equipped with a table used or intended to be used as a card table for the playing of card games, and the use of which is available to the public, or any portion of the public.
(Prior code § 5-007; Ord. 016-07 C.S. § 1; Ord. 2016-12-13-1203 § II)
For the purpose of this chapter, certain words and phrases used herein are defined as follows:
"Applicant"
means every person who applies for a license to operate a card room and every individual who requests a permit as provided for by this chapter.
"Building owner"
means the person or persons who own(s) the building in which the card room is operated and who may, among other things, lease the building to the card room operator and who may also operate or conduct ancillary services such as food and beverage sales, retail sales, entertainment activities, and personal services.
"Card games"
means all forms of gaming authorized by the State including those games not prohibited by the Penal Code, Sections 319, et seq., and Sections 330, et seq., and which are permitted by the State of California and the terms of the card room operations certificate.
"Card playing area"
shall mean the physical location within the card room premises where the playing of card games is permitted.
"Employee"
means every individual, employed either as an agent, employee, or otherwise, of the licensee, as defined by this section, or under the direction and control of the licensee of any card room, with or without compensation. Anyone who is required to routinely enter into the card playing area during the course of their duties is considered an employee. The term "employee" does not include a bartender, culinary worker or any other person not directly connected with the card room operation.
"Gross revenue"
means and include the total amounts received or receivable for seat rental fees, admission fees, table revenues and any and all other revenues derived from gaming activities conducted on or within the premises.
"Key management employee"
means every individual, whether or not such individual is a named officer or director of the licensee, with the power to direct operations, or direct supervisory and general employees of a card room, any individual with the actual or apparent authority to direct the counting of revenue generated by the card room, including any person responsible for managing any aspect of the gaming activities conducted at the card room, including a "manager" as defined in the California Rules and Regulations adopted pursuant to the Gambling Control Act, whether or not employed by the licensee, and every individual, whether or not such individual is a named officer or director of the building owner, with the power to direct operations, or direct supervisory and general employees of the building owner. The term key management employee includes without limitation, those individuals who fill such positions as shall be designated by the Chief of Police as key management employees.
"Lease"
means any formal or informal, written or oral contract or understanding or arrangement whereby any person operating a card room obtains the use or possession of any property, real or personal, to be used, occupied, or possessed in connection with the conduct of card games at any card room. The term lease includes, without limitation, payments to an affiliated person under a real property lease, a personal property lease, an unsecured note, a deed of trust, a mortgage, or a trust indenture.
"License"
means a grant from the Chief of Police authorizing a person as defined in this chapter to operate a card room within the City.
"Licensee"
means the person, as defined in this chapter, to whom a card room license has been issued pursuant to this chapter.
"Lessor"
means any person who leases any property, real or personal, to a person operating a card room for use in connection with the conduct of card games or related activities.
"Moral turpitude"
means an act of baseness, vileness, or depravity in the private and social duties which a person owes to fellow persons, or to society in general, contrary to the accepted and customary rule of right and duty between person and person, including conduct contrary to justice, honesty, modesty, or good morals.
"Owner" or "pointholder"
means any person having an interest, legal or equitable, in a card room license, or in the ownership of a card room, or in the division of profits or revenue of a card room, whether directly, or indirectly through a partnership, joint venture, closely held corporation or non-publicly traded corporation, publicly traded corporation, or an owner or someone or entity that controls at least 5% of stock of the corporation.
"Permit"
means a grant of permission from the Chief of Police to a person allowed by this chapter, allowing such person to become a pointholder in a card room or a key management employee of a card room licensee within the City. Two types of permits are provided for under this chapter, pointholder permits and key management employee permits.
"Person"
means and include any individual, partnership, corporation or combination thereof.
"Point"
means any interest whatsoever, or at all, in the ownership, division of profits, or revenue of a card room, whether legal, equitable, or of whatever kind of character.
"Premises"
means land together with all buildings, improvements and personal property located thereon and related to card room use.
"Proposition player"
means an employee engaged or paid by the licensee for the purpose of starting and/or maintaining a sufficient number of players at a table.
"Purport to commence" and "purport to conduct"
means and include any showing, representation, indication or action which:
1. 
By means of sign, advertisement, or advertising matter, whether in, upon or about any premises or otherwise; or
2. 
By the appearance or arrangement of any premises; or
3. 
By acts or statements of any person, or by the agents, servants or employees of any person, indicates, suggests, holds out, or represents that any person is, would be, or appears to be conducting or in a position to conduct any business referred to in this chapter with the City.
"Table"
means a piece of furniture consisting of a smooth flat slab fixed on legs where a group of people assemble for the purpose of playing a card game.
"Work permit"
means a grant of permission from the Chief of Police to a person allowed by this chapter, allowing such person to be work as an employee in a card room within the City.
(Prior code § 5-007.1; Ord. 016-07 C.S. § 1)
It is unlawful for any person, for himself, herself or for any other person, firm or corporation, 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 from said City so to do, according to each and every requirement set forth herein, or without complying with each and every regulation contained herein pertaining to such card room.
(Prior code § 5-008; Ord. 016-07 C.S. § 1)
A. 
An applicant for a card room license shall submit an application to the Chief of Police of the City, which application shall be under oath, and shall include, in addition to information as may be deemed necessary by the Chief of Police, the true names and addresses of all pointholders, key management employees, and building owners associated with the business. The past criminal record, if any, of the applicant and of all pointholders and key management employees associated with the business shall be shown on such application. Concurrent with the filing of the application, the City shall obtain fingerprints and photographs of the applicant and of pointholders and key management employees associated with the business. License and permit applicants shall authorize the City to obtain any available criminal arrest and conviction offender record information relating to applicant and shall further authorize the updating of that information on an annual basis if a license or permit is granted.
B. 
The applicant shall pay a fee to defray the cost of fingerprinting and photography in an amount as may be fixed and established from time to time by resolution of the City Council.
C. 
The applicant must provide a statement to the Chief of Police to the effect 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 of California 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 therefor subject to immediate suspension or revocation.
D. 
City elected and appointed officials and employees of City whose job functions involve some element of card room regulation or taxation embodied herein and members of their immediate families (spouse and/or significant cohabitant and children, brothers, sisters and parents who are residing with and/or are dependents of such official or employee), shall not be eligible to apply for card room licenses or permits hereunder or otherwise apply for registration as a card room employee.
E. 
An application should include copies of the gambling control application previously submitted to the State on all qualifying persons, unless waived by the Chief of Police. In the event the application for gambling control has not been previously submitted to the State of California, and the Chief of Police has determined to issue a license to the applicant conditioned upon issuance of the gambling control license by the State, the applicant shall submit a copy of said gambling control application to the Chief of Police within 15 days of the granting of the conditional license. Failure to submit the copy of the gambling control application to the Chief of Police within the specified time frame shall constitute a failure of the license condition and said license shall be deemed to be denied.
F. 
Any applicant hereunder is seeking the granting of a privilege. Therefore, the burden of proving qualifications to receive such a permit or license is at all times on the applicant. An applicant must accept all risks of adverse public notice, publicity, embarrassment, criticism, financial loss, or all other actions and consequences which may result from activities with respect to reviewing, processing, approving or disapproving any application. A waiver of any claims for damages against the City or its agent resulting therefrom shall be presumed upon the filing of an application.
G. 
If the applicant is an individual, the application shall include the residence and business address and personal history record of such applicant, specifically including any criminal arrest and conviction record, and business and employment history for a period of 10 years before the date of the application.
H. 
If the applicant is other than an individual, the application shall include the name, residence and business address, and personal history record of each of the officers, directors, copartners or stockholders who qualify as pointholders, specifically including any criminal arrest and conviction record, and business and employment history for a period of 10 years prior to the date of application.
I. 
The initial applications for the pointholders and key management employees shall be submitted as part of the application for a card room license. Each permit applicant shall be responsible for providing complete and accurate information and for signing the permit application. However, it shall be the responsibility of the card room license applicant (or licensee for subsequent applications) to submit the completed application and pay any application fees. Applications for pointholder permits which do not accompany the application for a card room license as provided in this section shall conform in all respects with the requirements set forth in Section 5.32.250. Applications for key management employee permits which do not accompany the application for a card room license as provided in this section shall be completed no fewer than 30 days before the key management employee is scheduled to begin work for the licensee. In addition to other information as may be required by the application forms, the applicant for a permit shall provide the information required by this section. The Chief of Police shall have sole discretion to determine whether the information submitted fulfills the requirements set forth on the application form and in this section.
J. 
The applicant for a license shall submit a physical security plan and a security personnel deployment plan for review and approval by the Police Department. The licensee or permittee shall have security personnel regularly patrol the parking areas and patrons shall not be allowed to sleep in vehicles parked in the lots controlled by the licensee. The applicant's permit shall be subject to suspension and/or revocation for noncompliance with approved plans. The licensee or permittee shall be liable for the security and safety of the patrons.
(Prior code § 5-008.1; Ord. 016-07 C.S. § 1)
Except as required by the California Public Records Act, the California Gambling Control Act, or other applicable law, it is unlawful for any individual to disclose to any individual, or any other entity, any data or information required under the provisions of this chapter to be kept and maintained confidential.
(Prior code § 5-008.2; Ord. 016-07 C.S. § 1)
A. 
Investigation and Report.
1. 
Upon receipt of an application for a license, the Chief of Police shall cause an investigation to be made covering all matters relevant to the proposed activity of the applicant. Such matters may include, but are not limited to, the following:
a. 
Identity, character and background of the applicant;
b. 
Interior floor plan of buildings and site plan as to parking, traffic movement and aesthetics;
c. 
Compliance with the City's General Plan, zoning, security and environmental requirements;
d. 
Type of tables to be used and their proposed locations, area where food and beverages are proposed to be served and means for excluding persons under 21 years of age from card playing areas;
e. 
Type and degree of security personnel and facilities to be provided; and
f. 
The financial stability of the pointholders and key management employees involved in the application and the financial ability of the applicant to comply with the conditions and requirements of the City in the event the application is approved.
2. 
Upon receipt of an application for a permit, the Chief of Police shall cause an investigation to be made covering all matters relevant to the proposed activity of the applicant. Such matters may include, but are not limited to, the identity, character and background of the applicant.
3. 
The investigation of the application shall be completed as soon as practicable after a complete application is received.
B. 
Chief of Police Determination.
1. 
The Chief of Police, in writing, shall either grant, conditionally grant, or deny the application. If the Chief of Police denies the application, the Chief of Police shall state, in writing, the causes for the denial. The Chief of Police may tentatively approve the application of a license applicant, but, disapprove the application for a permit of one or more of the pointholders or key management employees. In such cases the Chief of Police may grant the license applied for subject to the condition that any pointholder or key management employee disapproved be removed as an individual having any involvement with, or interest or control in the card room. Compliance with the removal condition shall be monitored, reviewed and approved by the Chief of Police prior to final issuance of the license.
2. 
Except as otherwise provided herein, the action of the Chief of Police in accordance with this chapter shall be final.
C. 
Requirements for Issuance of a License. In the event a completed application for a license is presented to the Chief of Police, and the fees required herein have been paid, and the investigations and reports required under the provisions of this chapter have been duly completed, the Chief of Police shall have jurisdiction to consider such application. The Chief of Police shall, at minimum, consider the following factors during its consideration of the application for a license:
1. 
The effect the granting of the license may have on business, employment and economics in the City;
2. 
The financial stability of the applicants, including all pointholders;
3. 
The business and financial history of the key management employees of the enterprise or other manager or active operating heads, including his or her personal history, moral background, reputation and character;
4. 
Whether issuance of the license and subsequent operation will be detrimental to the public health, safety and welfare of the citizens of Stockton; and
5. 
Any other relevant data, facts or considerations.
(Prior code § 5-008.3; Ord. 016-07 C.S. § 1)
A. 
The Chief of Police shall deny or condition a license or permit application for any of the following reasons, without being limited thereto, or for any reason consistent with the general policy of this chapter:
1. 
Conviction of any crime punishable as a felony or of any crime of violence, any crime involving narcotics, fraud, gambling, loan sharking, bookmaking, thievery, bunco, moral turpitude, or any crime involving evasion of taxes, or any other crime of moral turpitude indicating a lack of business integrity or business honesty, whether committed in the State of California or elsewhere, whether denominated as a felony or as a misdemeanor and notwithstanding the passage of time since the conviction;
2. 
Failure of the proposed business or activity to be operated in compliance with Federal, State or City law or regulation;
3. 
Identification by any law enforcement agency, legislative body or crime commission as a member of, or an associate of, organized criminal elements;
4. 
Making any false statement in the application or as to any other information presented as part of the application process;
5. 
Failure to satisfy the Chief of Police as to the source of funds to be invested in the proposed venture;
6. 
Evidence of prior unlawful or nuisance-creating operation as a card room or gaming licensee or permittee in another jurisdiction without regard to whether disciplinary action was taken at that time or whether the acts were sufficient to justify revocation of a license or permit;
7. 
Applicant does not have the financial capability or business experience to operate a card room in a manner which would adequately protect the patrons of the card room and the citizens of the community;
8. 
Applicant is presently under indictment or the subject of a criminal complaint for any of the crimes described in subsection (A)(1) of this section;
9. 
Making or causing to be made any statement in an application or document provided to the Chief of Police or his or her agent(s) or orally to a City Council member(s) or agent(s) in connection with an application, which statement was at the time and in the light of the circumstances under which it was made, knowingly false or misleading;
10. 
Lack of evidence that there is adequate financing available to pay potential current obligations and, in addition, to provide adequate working capital to finance opening of the card room proposed;
11. 
Failure of any person named in the application when summoned by the Chief of Police or his or her agent(s) to appear and testify and provide additional information at such time and place as the Chief of Police or his or her agent(s) may specify;
12. 
Inadequate security plan; and
13. 
Proposed location of a new card room in an area not authorized by this chapter or the General Plan or Title 16 of the Stockton Municipal Code, and a use permit to operate a card room at the proposed location has not been obtained from the Planning Commission or the City Council.
B. 
Each licensee shall file with the Chief of Police for review a copy of the rules by which each game permitted by this chapter is played. No license shall be granted until it is determined that under the submitted rules, the playing of each game is in accordance with the provisions of this section and the Penal Code of the State. If any game permitted herein is not played by the rules submitted, this will be grounds for suspension or revocation of the license.
C. 
Any such license or permit granted by the Chief of Police shall be conditioned upon compliance with all of the terms, conditions, and provisions, of this chapter. It shall further be conditioned upon the applicant agreeing to hold the City harmless for all expenses including but not limited to attorneys' fees and court costs should any claims and actions be prosecuted or commenced against the City concerning the validity and legality of the license or any game permitted herein, or any other provisions of this chapter.
(Prior code § 5-008.5; Ord. 016-07 C.S. § 1)
At no time shall there be more additional card room license(s) in the City that would result in exceeding the limitation of card rooms and/or playing tables established herein. The location of additional card room(s) shall be established through the land use approval process. This section shall not be interpreted to authorize any form of physical or use expansion of the preexisting card rooms without conformance with the planning and licensing approval process. There shall be no more than four card rooms in the City at any one time. The number of tables for a particular applicant shall be determined during the land use and licensing approval process. Licensees shall obtain approval from the Chief of Police prior to expanding (for any reason, including special tournaments, etc.) the number of tables allowed by their initial and/or current license. The physical location of any card room licensed to operate within the City shall be in conformance with the requirements of the Planning and Zone Code in Title 16 of the Stockton Municipal Code.
As of the passage of the ordinance codified in this section, a licensed card room shall be allowed to increase the number of gambling tables operated in the card room by up to two additional tables above the number of tables operated in the card room on January 1, 2023. With this increase, no more than 13 tables shall be permitted in any one card room.
On or after January 1, 2029, a licensed card room shall be allowed to increase the number of gambling tables operated in the card room by up to two additional tables above the number of tables operated in the card room on December 31, 2028. With this increase, no more than 15 tables shall be permitted in any one card room.
On or after January 1, 2033, a licensed card room shall be allowed to increase the number of gambling tables operated in the card room by up to two additional tables above the number of tables operated in the card room on December 31, 2032. With this increase, no more than 17 tables shall be permitted in any one card room.
On or after January 1, 2037, a licensed card room shall be allowed to increase the number of gambling tables operated in the card room by up to two additional tables above the number of tables operated in the card room on December 31, 2036. With this increase, no more than 19 tables shall be permitted in any one card room.
On or after January 1, 2041, a licensed card room shall be allowed to increase the number of gambling tables operated in the card room by up to two additional tables above the number of tables operated in the card room on December 31, 2040. With this increase, no more than 21 tables shall be permitted in any one card room.
Pursuant to Business and Professions Code Section 19961.07, with each increase authorized under this section, no more than two additional tables shall be authorized for each licensed cardroom, and the cumulative total increase shall not exceed 10 additional tables above the number of tables operated in each licensed card room on January 1, 2023.
(Prior code § 5-008.5; Ord. 016-07 C.S. § 1; Ord. 2018-12-04-1104 C.S. § 1; Ord. 2025-04-01-1201, 4/1/2025)
The action of the Chief of Police in denying such a license or permit shall be subject to an appeal to the City Manager. Notice of such appeal, in writing stating the grounds for such appeal, and admitting and denying those determinations of the Chief of Police included in the notice of denial, shall be filed with the City Manager within 10 City business days after the denial of said license or permit. Upon failure to file such notice within the 10-day period, the action of the Chief of Police in denying such license or permit shall be final and conclusive. If the notice of appeal is timely filed, accompanied by payment of an appeal fee in an amount as may be established from time to time by resolution of the City Council, the City Manager shall schedule the matter for hearing. The City Manager may, in the City Manager's sole discretion, hear the appeal, designate a member of City staff to hear the appeal, or submit the appeal to the administrative hearing officer to conduct the hearing in accordance with the provisions of Chapter 1.40 of this code.
(Prior code § 5-008.6; Ord. 016-07 C.S. § 1)
A. 
The terms and conditions or other requirements imposed in the card room license may be changed by filing an application with the Chief of Police stating the specific terms and conditions that the licensee desires to change and the reasons therefor. Any application under this section shall be accompanied by an application fee as established by resolution of the City Council. The Chief of Police shall investigate the application and deny, approve or approve subject to additional terms and conditions the amendment.
B. 
The Chief of Police may approve the application (whether or not subject to conditions) only if it determines that:
1. 
The proposed amendment will not result in the substantial aggravation of crime or make law enforcement unduly difficult;
2. 
The proposed amendment is not detrimental to the public health, safety or welfare;
3. 
The proposed amendment would not result in the violation of any applicable zoning, fire, building, security regulation or other ordinance; and
4. 
The proposed amendment would be consistent with the purposes and provisions of this chapter and is not contrary to the public interest.
(Prior code § 5-008.7; Ord. 016-07 C.S. § 1)
A. 
Permits issued pursuant to this chapter shall be and remain valid until the earlier of expiration of the permit term, suspension or revocation by the Chief of Police or City Manager as provided in this chapter or voluntary surrender in writing by the permittee.
B. 
Except as herein provided, licenses shall renew annually on the anniversary date of their issuance.
C. 
The card room license shall be dated as of the day upon which the same is issued and, unless sooner revoked or surrendered, shall renew at midnight of the anniversary of the date the card room which is the subject of such card room license shall commence operations.
D. 
All other permits issued under the provisions of this chapter shall, unless renewed, expire at midnight on December 31st of each year.
E. 
In the event of surrender, suspension, revocation or expiration, no permit fee or license fee, or any portion thereof shall be refunded.
F. 
In the event that a public agency takes possession of the property subject to a card room license under threat or actual exercise of the power of eminent domain, the license for the card room shall be deemed to be valid and remain in effect for a period of 12 months from the date of closing of the card room, notwithstanding any contrary provisions of this chapter.
G. 
In the event a card room license is deemed to remain valid pursuant to subsection F of this section, and in the event the holder of such card room license plans to establish another location for operation of a card room, such holder must submit to the Chief of Police an application in accordance with Section 5.32.040, and must obtain the approval of the Chief of Police prior to commencing card room operations in accordance with the new application.
(Prior code § 5-008.8; Ord. 016-07 C.S. § 1)
A. 
The holder of a valid card room license issued pursuant to the provisions of this chapter shall be entitled to have the license renewed annually in accordance with the following procedures:
1. 
An application for renewal of any such license shall be filed with the Chief of Police no later than 60 days before the anniversary date of the license for which renewal is sought;
2. 
If such application for renewal is not filed within the time specified by subsection (A)(1) of this section, such licensee may thereafter file a written application for renewal of any such license, but in such event, such licensee shall pay a penalty fee, as established by resolution of the City Council, for each table or unit affected by such renewal, for each day of delinquency;
3. 
The application for renewal shall be accompanied by the full amount of the required renewal license fee as may be established from time to time by resolution of the City Council; and
4. 
The card room licensee shall file with the Chief of Police an affidavit made subject to the penalties of perjury on a form approved by the City Attorney containing a full and complete statement including the following information:
a. 
Any change in individuals with whom the licensee has any operating agreements pertaining to the licensed operation, including building owner;
b. 
Any change in pointholders, the full, true and correct names and addresses of such new pointholders, or trustors for pointholders;
c. 
The full, true and correct names and addresses of each and every new key management employee; and
d. 
If no changes have occurred from the previous renewal, licensee shall so certify and attest.
B. 
Failure to make full payment of annual fees or failure to file or filing any false statement in any affidavit and/or certification and attestation as is required by this section may be deemed grounds for the revocation of such license pursuant to the procedures set forth in this chapter.
C. 
If the licensee is in compliance with the requirements of this section, and if there have been no material changes in the operation of the card room or in the pointholders, building owners or key management employees that have not been previously approved by the City, the card room license shall be deemed renewed for another one year period and the Chief of Police shall issue such renewal.
(Prior code § 5-008.9; Ord. 016-07 C.S. § 1)
All licensees, pointholders and key management employees of a card room or other employees promoted into such positions subsequent to their initial employment shall have their background and criminal history investigations updated annually. The fee to cover the cost of such investigations shall be paid at the time of submission of the application for renewal of the license or permit in an amount as may be established from time to time by resolution of the City Council.
(Prior code § 5-008.10; Ord. 016-07 C.S. § 1)
A. 
All permits and licenses authorized and issued under the provisions of this chapter shall be subject to:
1. 
Immediate suspension by the Chief of Police if the Chief of Police finds that:
a. 
The Attorney General has denied, suspended or revoked an applicant's registration under the California Gambling Control Act (Business and Professions Code Section 19800, et seq.) or any successor thereto; or
b. 
A permittee or licensee, or any agent or employee thereof with the knowledge of such permittee or licensee, 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 permit or card room license, or any State law or regulation relating to the operation of a card room where the continued operation of the card room in light of such violation jeopardizes, or threatens to jeopardize, the public health, safety or welfare; or
c. 
Based on ascertainable facts, the operation of the card room substantially aggravates the crime problems in the City, makes law enforcement unduly difficult, or is detrimental to the public health, safety or welfare of the City.
2. 
Suspension or revocation by the Chief of Police after not less than 30 days' written notice to the permittee or licensee and after testimony has been taken from the permittee or licensee and/or any other interested person, if the Chief of Police finds that:
a. 
The Attorney General has denied, suspended or revoked an applicant's registration under the California Gambling Control Act or any successor thereto; or
b. 
A permittee or licensee or any agent or employee thereof, with the knowledge of the permittee or licensee, has violated or permitted, allowed or caused the violation of any provisions of this chapter, any regulation issued pursuant thereto, any condition of approval imposed upon the issuance of the card room license, or any State or Federal law or regulation relating to the operation of a card room; or
c. 
A permittee or licensee has failed to pay, when due and payable, any of the fees or taxes provided for in this division within 10 days after written notice of any such failure; or
d. 
A permittee or licensee has made any fraudulent statements as to a material fact on an application form or as to any other information presented as part of the application process; or
e. 
A permittee or licensee knowingly commits any act which would have constituted grounds for denial of an application for a permit or license; or
f. 
The permittee or licensee has knowingly continued to employ in any card room any individual whom any court has found guilty of any of the crimes which would have constituted grounds for denial of an application for a work permit or permit for the employee, or of cheating or using any improper device in connection with any game, whether as a licensee or player at a licensed game, or any person whose conduct of a licensed game as an employee of a licensee resulted in revocation, or suspension of the permit of such permittee; or
g. 
The permittee or licensee has been convicted of a crime enumerated in Section 5.32.070. A conviction is suitable grounds for revocation or suspension of the permit or license, prior to the exhaustion of the licensee's appellate rights; or
h. 
The permittee or licensee has failed to comply with the cash transaction reporting and recording requirements of Section 5.32.270.
B. 
Except as otherwise provided in this chapter, the imposition of a limit, condition, suspension or revocation of a permit of an individual pointholder, key employee or permittee will not affect the license of the card room.
C. 
The Chief of Police may order the sale or transfer of points or interest held by an individual pointholder permittee whose permit has been revoked.
D. 
The Chief of Police may order a licensed card room to keep an individual pointholder or key employee whose permit has been revoked from coming onto the premises of the card room, or not to pay such pointholder or key employee any remuneration for services as an employee and/or any profits, income or accruals on his or her investment as a pointholder in the card room.
E. 
In the event of a violation described in subsections (A)(2)(b) through (h) of this section, a civil penalty, not to exceed $10,000.00 per day for each violation, may be imposed on the licensee in lieu of suspension or revocation. In the event the violation is for non-payment of fees, the civil penalty shall amount to 5% of the unpaid fees plus one and one-half percent per month accrued daily after the first 30 days. Imposition of such civil penalties shall be in accordance with the administrative adjudication procedures established in the Stockton Municipal Code.
F. 
When appropriate, in addition to or in lieu of suspension, revocation or imposition of a civil penalty, the Chief of Police may impose other appropriate penalties, including but not limited to restitution to victims and modifications and limitations on the terms and conditions of the license or permit.
(Prior code § 5-008.11; Ord. 016-07 C.S. § 1)
A. 
Notice of Decision to Revoke or Suspend. In the event the Chief of Police determines that a license or permit issued pursuant to the terms of this chapter shall be suspended or revoked, the Chief of Police shall issue a notice of decision which shall state the grounds upon which the suspension or revocation or other penalty is based. The notice shall be in writing and addressed to the licensee or permittee and the building owner at the addresses of record. The notice shall be personally served or sent by certified mail.
B. 
Unless the licensee or permittee files a written notice of appeal with the City Manager within 15 calendar days from the date of mailing or personal service of the notice of decision, the decision shall become effective on the close of business after 21 days. The notice of appeal shall state all of the grounds of appeal and shall admit or deny the determination in the notice of decision. Failure to timely file the written appeal shall constitute a waiver of such person's right to the administrative appeal to the hearing officer.
C. 
The City Manager shall select a hearing officer who shall schedule and conduct the hearing in accordance with procedures specified in regulations to be promulgated by the City Manager pursuant to this chapter.
D. 
The cost of the appeal, including but not limited to the costs of the services of the hearing officer and for the preparation of the transcript, shall be borne by the licensee or permittee. The City Attorney shall provide an estimate of costs which must be deposited with the Finance Director before the scheduled start of the hearing. Failure to deposit the estimated costs before the hearing is scheduled to begin shall be deemed a waiver of the appeal.
E. 
In the event a licensee or permittee files an appeal pursuant to this section, the effective date of the decision shall be stayed pending determination by the hearing officer.
F. 
Any licensee or permittee aggrieved by the decision of the hearing officer shall have the right to file a written notice of appeal to the City Council with the City Clerk within 15 calendar days from the date of mailing of the hearing officer's decision. The notice of appeal to the City Council shall state all of the grounds of appeal and shall admit or deny each and every determination of the hearing officer. Failure to file the notice of appeal to the City Council within the time period specified herein shall constitute a waiver of such person's right to the administrative appeal. The City Council, within 21 days after receipt of the notice of appeal, shall set the time and date for the hearing on the appeal. Such hearing shall occur within 60 days after receipt of the notice of appeal, unless it is mutually agreed between the appellant and the City Council to continue such hearing to a subsequent date. The hearing before the City Council shall be in a public forum, and shall be a hearing de novo. The City Council shall have the right to grant or deny the appeal in whole or in part and to modify the determination of the Hearing Officer. The determination of the City Council shall be final.
(Prior code § 5-5-008.12; Ord. 016-07 C.S. § 1)
In the event of revocation, no new permit or license shall be issued to such permittee or licensee except upon application made thereafter as in the case of a new applicant.
(Prior code § 5-008.13; Ord. 016-07 C.S. § 1)
A. 
Work Permit Required of Employees.
1. 
It is unlawful for any card room building owner or licensed card room to employ any person in connection with his or her card room operations or to allow any person to do business on his or her premises who is not the holder of a valid work permit and registration/I.D. card issued by the Chief of Police. The requirement for a work permit shall not apply to persons employed to perform work solely in positions not related to the card room (e.g., cook, maid, etc.). Any employee who enters, serves patrons, or performs any duty associated with gaming within the card playing area or security or finance areas must obtain a work permit. No registration/I.D. card will be issued without such person having first been fingerprinted and photographed by the Stockton Police Department or such other person(s) as shall be approved by the Stockton Police Department.
2. 
Every card room building owner or licensee shall, before employing any person in connection with the licensed card room activity, ascertain that such person holds a valid work permit and registration/I.D. card issued in accordance with this regulation, and shall cause its employment records to reflect such fact.
B. 
Application Procedure.
1. 
Applications for an employee work permit shall be completed and submitted under oath to the Chief of Police, together with the appropriate fees as may be established from time to time by the City Council, no fewer than 30 days before the employee is scheduled to begin work for the licensee. Applications for work permits shall be reviewed subject to the procedures to be adopted and implemented by the Chief of Police. An application may be granted or denied by the Chief of Police. The Chief of Police shall deny an application for registration for any relevant cause denoted in subsection G of this section. Concurrent with the filing of the application, the City shall obtain fingerprints of the applicant. An applicant for an employee work permit shall authorize the City to obtain any available criminal arrest and conviction offender record information relating to the applicant and shall further authorize the updating of that information on an annual basis if a work permit is issued.
2. 
A nonrefundable processing fee may be established from time to time by resolution of the City Council shall be paid together with the work permit registration and renewal application.
C. 
Display of Registration/I.D. Card. Every employee granted a work permit shall be issued a registration/I.D. card by the Chief of Police, which must be prominently displayed at all times the employee is at the card room premises on the employee's outermost garment at approximately chest height. Such identification card shall be in good and readable condition and a replacement card shall be issued by the Chief of Police upon payment of a fee established by resolution of the City Council. Undercover security personnel, with prior approval of the Police Department, need not wear such registration/I.D. badge in a prominently visible place.
D. 
Responsibilities of Chief of Police.
1. 
It shall be the responsibility and duty of the Chief of Police to establish the necessary procedures to implement and administer the provisions of this section.
2. 
The information received by the Chief of Police pursuant to the provisions of this section shall be treated as confidential.
E. 
Permit Application Fee. For the purpose of clarification, the application fees set forth in this section are for regulation and reimbursement to the City for the costs of investigating and processing the applications, as provided for in this section. Each application for a permit under this section shall be accompanied by an application fee, payable to the City, in the amount as may be established from time to time by resolution of the City Council, which fee shall be retained by the City for the payment of the costs of the investigation of the applicant. The fees set forth in this subsection shall be the property of, and be retained by, the City, whether the employee work permit is granted or denied.
F. 
Obligation of Card Room Licensee. It shall be a condition of any card room licensee to inform the Chief of Police of any change in the employment status of a registered employee within 10 days of the effective date of the change in employment status. A change in employment status includes termination, leave of absence, promotion or any other change in position or title.
G. 
It is unlawful for any card room employee to work in a card room without possessing a valid work permit issued by the 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 card room. A work permit shall be issued only to persons 21 years of age or older.
The Chief of Police shall deny the application for an employee work permit if the Chief of Police makes any one of the following determinations:
1. 
That the applicant has been convicted of any felony;
2. 
That the applicant has been convicted of 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, and the Chief determines that granting the application will not will be detrimental to the public health, safety and welfare of the citizens of Stockton;
3. 
That the applicant has been convicted of any offense involving gambling, as defined in Penal Code Sections 319 through 337.9, or as those sections may subsequently be amended;
4. 
That the applicant has been convicted of any offense involving the violation of the Controlled Substances Act of the California Health and Safety Code, or as those provisions may subsequently be amended, excluding a conviction for violation of California Health and Safety Code Section 11357(b) within the two year period immediately preceding the submission of the application;
5. 
That the applicant has been convicted of any offense specified in Sections 266(I), 315, 316, 318 or subdivision (a) or (b) of Section 647 of the California Penal Code, or as those sections may subsequently be amended;
6. 
That the applicant has been convicted of any offense that requires registration as a sex offender under Section 290 of the California Penal Code, or as that section may subsequently be amended;
7. 
That the applicant has been convicted of any offense involving the use of force or violence upon the person of another.
8. 
That the applicant has made one or more false statements in the application.
9. 
That the applicant has failed to comply with one or more provisions of this chapter, or of this code, or other laws or regulations applicable to the premises, equipment, ownership or operation of the proposed card room of the applicant.
10. 
That the issuance of the proposed work permit would violate an applicable provision of this chapter;
11. 
That the applicant is associated with criminal profiteering activity or organized crime, as defined in California Business and Professions Code Section 19859(e) and California Penal Code Section 186.2, or as those sections may subsequently be amended;
12. 
That the applicant would be disqualified from holding a State gambling license for any of the reasons specified in California Business and Professions Code Section 19859, or as that section may subsequently be amended.
H. 
Issuance of any work permit pursuant to this section shall be further subject to the objection to issuance by the State Division of Gambling Control for any cause that it deems to be reasonable. If the Division objects to the issuance of a work permit, the application shall be denied. Such denial may be appealed in accordance with California Business and Professions Code Sections 19912(c)(3) and (e), or as those sections may subsequently be amended.
(Prior code § 5-009; Ord. 016-07 C.S. § 1)
A card room employee work permit shall be valid, unless suspended or revoked, for a period of one year from date of issuance. The fee shall not be returned in the event that such work permit is refused, revoked or suspended as herein provided. Said work permit shall be valid even though the holder of said permit may change his place of employment within the City.
(Prior code § 5-009.1; Ord. 016-07 C.S. § 1)
Any person who holds a valid card room employee work permit may obtain a new permit for the succeeding year by applying for said new employee work permit during the month preceding the expiration date of the current permit. Cost for said new permit, which shall include the cost of a new identification card, shall be an amount as fixed and established from time to time by resolution of the City Council.
(Prior code § 5-009.1.1; Ord. 016-07 C.S. § 1)
All card room employees shall have their background and criminal history investigations updated annually. The fee to cover the cost of such investigations shall be paid at the time of submission of the application for renewal of the license or permit in an amount as may be established from time to time by resolution of the City Council.
(Prior code § 5-009.1.2; Ord. 016-07 C.S. § 1)
A. 
Whenever the Chief of Police shall deny an application for an employee work permit, the Chief of Police shall notify the applicant/work permit holder in writing by either personal delivery or by first class mail addressed to the applicant/work permit holder at the address listed in the respective application, or at any more recent address furnished to the Chief of Police by the applicant/work permit holder. The notice shall state that the application has been denied or that the employee work permit has been suspended or revoked and the grounds for the action. The notice shall further state that the applicant or work permit holder shall have the right to appeal the action to the City Manager by filing a notice of appeal with the City Manager no later than 10 City business days from the date of the notice of denial.
B. 
A notice of any appeal must be filed with the City Manager not later than 10 City business days from the date of notice of denial, suspension or revocation of the application, license or employee work permit. If a notice of appeal is timely filed, accompanied by payment of an appeal fee in the amount as may be established from time to time by resolution of the City Council, the City Manager shall schedule the matter for hearing. The City Manager may, in the City Manager's sole discretion, hear the appeal, designate a member of City staff to hear the appeal, or submit the appeal to the administrative hearing officer to conduct the hearing in accordance with the provisions of Chapter 1.40 of this code.
(Prior code § 5-009.2; Ord. 016-07 C.S. § 1)
A. 
If a card room employee violates, permits, allows or causes the violation of any provisions of this chapter any statute relating directly to the operation of a card room or regulation of gaming, the Chief of Police shall have the right to revoke or suspend any card room employee work permit issued hereunder and to take possession of such permit. Any of the grounds upon which the Chief of Police shall be required to refuse to issue an initial card room employee work permit shall also constitute grounds for such revocation or suspension.
B. 
Suspension or revocation of a card room employee work permit shall be made only after a hearing granted to the holder of such permit before the Chief of Police, after five days' notice to said 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 shall be subject to an appeal to the City Manager in accordance with the provisions of Section 5.32.220(B). Notice of such appeal shall be filed with the City Manager within 10 City business days after the revocation or suspension. Upon failure to file such notice within the 10 day period, the action of the Chief of Police in revoking or suspending the work permit shall be final and conclusive.
(Prior code § 5-010; Ord. 016-07 C.S. § 1)
A. 
Except as otherwise indicated herein, any transfer or assignment of any license shall be considered for all purposes in the same manner as a new application for a card room license in the City, and all the provisions of this chapter applicable to new and original applications shall apply; provided, however, that neither mailed notice to adjacent property owners, nor published notice, need be made. Such a transfer shall be made in accordance with the provisions of Section 5.32.250.
B. 
The provisions of this section and of Section 5.32.250 shall not apply to any application for or notification of a transfer or assignment by any pointholder who is a member of a bona fide owner operating under a duly issued license to conduct a card room in the City to a then presently existing pointholder; provided, however, that any transfer of five points or more, even to an existing pointholder, shall require City approval pursuant to Section 5.32.250.
C. 
The provisions of this section and of Section 5.32.250 shall not apply to a transfer of interest between or among family members wherein such transfer is made by devise or testamentary trust, provided that the recipient of said interest has not been:
1. 
Convicted of any crime punishable as a felony or of any crime of violence, any crime involving narcotics, fraud, gambling, loan sharking, bookmaking, thievery, bunco, moral turpitude, or any crime involving evasion of taxes, or any other crime of moral turpitude indicating a lack of business integrity or business honesty, whether committed in the State of California or elsewhere, whether denominated as a felony or as a misdemeanor and notwithstanding the passage of time since the conviction;
2. 
Identified by any law enforcement agency, legislative body or crime commission as a member of, or an associate of, organized criminal elements;
3. 
Found by another City or County or court to have operated a card room in a manner that was either unlawful or that created a nuisance;
4. 
Indicted for any of the crimes described in subsection (C)(1) of this section; or
5. 
Found to have made or caused to be made any statement in any document provided to the Chief of Police, City Manager or to the City Council or orally to a City Councilmember or agent in connection with an application, which statement was at the time and in the light of the circumstances under which it was made, knowingly false or misleading.
In the event that any family member who is devisee or testamentary trust beneficiary is unqualified, pursuant to this section, to be identified as the licensee, that person may transfer said license to another family member provided that such family member is not disqualified pursuant to subsections (C)(1) through (5) of this section.
(Prior code § 5-011; Ord. 016-07 C.S. § 1)
A. 
Permission Required. It is unlawful for any pointholder, having any interest whatsoever, or at all, in the ownership of a card room whether legal or equitable, or as trustor or trustee, or of whatever kind or character, to transfer, convey or sell any points and/or interest in a card room to any person who is or by reason of such transaction would become a pointholder without the prior written consent of the Chief of Police.
B. 
It is unlawful for any licensee or pointholder to knowingly permit any individual, partnership or other entity to make any investment whatsoever in, or in any manner whatsoever participate in the profits of any licensed card room, or any portion thereof, except in accordance with this chapter.
C. 
It is unlawful for any licensee or pointholder to knowingly permit any investment in any licensed card room or any portion thereof or participation in the profits thereof by any person acting as agent, trustee, or in any other representative capacity whatsoever for or on behalf of another person without first having fully disclosed all facts pertaining to such representation to the Chief of Police. No person acting in any such representative capacity shall hold or acquire any such interest or participate without first having fully disclosed all facts pertaining to such representation to the Chief of Police and obtained written permission of the Chief of Police to so act.
D. 
Transfer of Interest and Escrow Required. No transfer, sale or hypothecation of a point, or new investment in a card room shall be permitted until the Chief of Police has approved an application for transfer of interest, and until each new pointholder has been granted a pointholder's permit authorizing the holding of such interest in a point. No money or other thing of value constituting any part of the consideration for the transfer or acquisition of any interest in a licensed card room shall be paid over, received or used prior to compliance with all prerequisites set forth in the law and these regulations for the consummation of such transaction. Notwithstanding the foregoing, such funds may be placed in escrow pending completion of the transaction. Any loan, pledge or other transaction in an attempt to evade the requirements of this regulation may be deemed a violation and, as such, would constitute grounds for disapproval of the point transfer.
E. 
Assignment. Any party desiring to buy, sell, accept transfer, assign or otherwise hypothecate any interest of a pointholder in a licensed card room shall file with the Chief of Police, on forms approved by the City Attorney, and furnished by the Chief of Police, a written application for permission to allow transfer of such interest. Each such application shall contain and clearly and truthfully set forth, under oath and/or affirmation, in addition to such other information as the Chief of Police may require, the following:
1. 
The date of the application;
2. 
The true name of the applicant;
3. 
The status of the applicant as being an individual, partnership, corporation or other entity;
4. 
The residence and current business address of the applicant;
5. 
If the applicant is other than an individual, the name, residence and current business address of each co-partner, co-partnership, shareholder (of more than 5% of the shares if the corporation is publicly traded corporation) or other interest holders;
6. 
The name of the licensed card room and the names of the existing pointholders from which a transfer of interest or points is sought;
7. 
The number of points and/or nature of interest sought to be sold, transferred assigned or otherwise hypothecated;
8. 
The source of funds to be used by the applicant in acquiring such points or interest;
9. 
A statement that the applicant(s) understands that the application will be considered by the Chief of Police only after a full investigation and report have been made;
10. 
A balance sheet and income statement prepared in accordance with generally accepted accounting principles and submitted under penalty of perjury (but which need not be audited) whether he or she is an individual, partnership or other entity; and
11. 
The statements required by this subsection shall be confidential, and the documents containing such information shall be deemed to be confidential documents, and shall not be open to public inspection, but shall be available only to those City officials having direct jurisdiction where any matter relating thereto may be actually pending, or to authorized officials of the California Division of Gambling Control, except that the names and cities and states of residence only of such pointholders shall be open to public inspection, but all other statements and/or documents shall remain confidential.
F. 
Investigations Required.
1. 
Whenever an application pursuant to the provisions of this section has been filed with the Chief of Police for a permit pursuant to the provisions of this section, and the fees required by this section have been paid, the Chief of Police shall promptly and diligently cause a full and complete investigation of the applicant to be made, including the following:
a. 
Concurrently with the filing of an application, each applicant shall be finger printed and photographed by the City and shall authorize the City to obtain any available criminal offender record information relating to applicant and shall further authorize the updating of that information on an annual basis if the application is approved; and
b. 
A background check including an analysis of the financial information supplied by the applicant pursuant to this section.
2. 
It shall be the responsibility and duty of the City Manager to supervise and direct the Chief of Police to establish the necessary procedures to administer the provisions of this subsection. The information received by the Chief of Police pursuant to the provisions of this subsection shall be treated as confidential.
G. 
Application Fees. For the purpose of clarification, the application fees set forth in this section are for regulation and reimbursement to the City for the costs of investigating and processing the applications. Each such application for transfer of interest of a pointholder to an applicant permittee shall be accompanied by an application fee in an amount established by resolution of the City Council for each pointholder permit applicant, which fee shall be retained by the City for the payment of the costs of the investigation of the applicant. The fees set forth in this subsection shall be the property of, and be retained by, the City, whether the permit and permission to transfer interest in the license is granted or denied.
H. 
Granting or Denial of Applications.
1. 
Whenever an application for a permit as required under the provisions of this section is presented to the Chief of Police, and the fees required by this section in connection therewith have been paid, the Chief of Police may consider such application on the basis of the following, without being limited thereto:
a. 
The financial stability of the applicant;
b. 
Conviction of criminal offenses as denoted in Section 5.32.070;
c. 
Whether the applicant has engaged in any conduct the object of which was to evade cash transaction requirements imposed by law, has been convicted of any such offense or has been subject to the forfeiture of assets on account of any alleged violation of cash reporting requirements; and
d. 
Any other information deemed by the Chief of Police to be matters of necessary inquiry.
2. 
The Chief of Police may, in the Chief's discretion, either grant, conditionally grant, or deny the permit transfer. The action of the Chief of Police shall be subject to an appeal to the City Manager in accordance with Section 5.32.090.
(Prior code § 5-011.1; Ord. 016-07 C.S. § 1)
A. 
Statement of Revenue.
1. 
Each licensee, shall file with the City, in accordance with Section 5.08.110 of the Stockton Municipal Code, as such provision may be amended hereafter, a statement, under oath, showing the true and correct amount of gross revenue derived from the card room business, operated pursuant to licenses issued pursuant to this chapter, for the operations in the preceding applicable time period. At the option of the City, the City may require payment of gross revenue tax revenues through electronic transfer on a more frequent basis. Such statement shall be accompanied by the payment of the correct amount of gross revenue license tax due and owing in accordance with the provisions of Section 5.08.110. A signed certification shall be attached to the statement or included therein, 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."
____________________
Licensee, Managing Partner, or Owner
(Strike out the titles which are not applicable)
2. 
At the end of each fiscal year, the licensee shall employ at licensee's expense a recognized firm of certified public accountants as approved by the City to conduct an audit of licensee's financial records in accordance with generally accepted auditing standards and any additional specifications for audit as identified in the rules and regulations as may be promulgated by the City Manager.
The audit shall conclude with the expression of the auditor's opinion on the financial statements of the licensee's card room operations in accordance with generally accepted accounting principles. The auditor shall express a separate opinion on the licensee's gross revenues and related permit fees paid to the City for the period then ended. Also, the licensee shall provide the City with an annual update of the evaluation of its internal accounting and administrative controls. Such audit report shall be filed with the City Finance Director no later than 120 days after the fiscal year end. In the event that such evaluation discloses material weaknesses or reportable conditions, including but not limited to qualified or adverse auditor's opinions, or discrepancies or deficiencies in the licensee's system of internal accounting and administrative controls, the licensee shall submit a program to the City Manager within 30 days of such evaluation outlining licensee's program and target dates to correct such weaknesses or conditions. The program and target dates shall be subject to approval, modification or denial in the sole discretion of the City Manager, and, in the event of modification or denial, the licensee shall submit within 14 days of receipt of the City Manager's modification or denial, a revised program and target dates to correct such weaknesses or conditions. Such revised program and target dates shall be subject to approval or modification in the sole discretion of the City Manager, and in the event of modification, the licensee shall conform with the modified requirements of the program. Failure to correct the weaknesses or conditions within the time periods specified in the approved or modified program may be grounds for suspension and/or revocation of the card room license. All reports or evaluations submitted hereunder shall be confidential and shall not be available for public inspection.
3. 
Any failure or refusal of any such licensee to make any statement as required within the time required, or to pay such sums due as gross revenue license tax when the same are due and payable in accordance with the provisions of this chapter, shall be and constitute full and sufficient grounds for the revocation or suspension of the permits and licenses issued pursuant to this chapter in the sole discretion of the Chief of Police.
B. 
Not later than January 1st of each calendar year, the licensee shall execute under penalty of perjury and file with the Chief of Police a declaration providing the following information:
1. 
A list of the minimum buy-in, time charged or other fees charged players for the use of the tables.
2. 
A set of the then current posted detailed house rules applicable to the games played.
3. 
That all taxes have been paid.
4. 
The declaration shall be accompanied by a complete copy of all registration and re-registration applications (and exhibits) filed by the licensee and all persons having a financial interest in the licensee under Gambling Control Act.
(Prior code § 5-012; Ord. 016-07 C.S. § 1)
A. 
Each licensed establishment shall make and maintain complete, accurate and legible records of all transactions pertaining to revenue subject to taxes imposed by this chapter. Such records shall include but not be limited to a general ledger maintained in accordance with generally accepted accounting principles, together with appropriate supporting records such as cash receipts and disbursement logs and journals, payroll journals, canceled checks and original paid invoices. Such general ledger shall be maintained in a fashion suitable for producing financial statements in accordance with generally accepted accounting principles. Such records shall be maintained for at least three 12-month fiscal years and shall be maintained on the premises of the licensed card room and made available for examination and copying by the City or its designee.
B. 
1. 
The permittee or licensee shall comply with the Internal Revenue Service Form 8300, Currency Transaction Reporting Requirements (IRS Regulation 6050.1) for cash received from and paid to customers in excess of $10,000.00. The permittee or licensee shall also comply with Title 31, Sections 5313 and 5314 of Title 31 of the United States Code and Sections 103.22 and 103.23 of Title 31 of the United States Code of Federal Regulations, including any amendments thereto. In addition, transaction logs shall be maintained to record multiple cash transactions totaling $3,000.00 or more on cash received from and paid to customers within a 24-hour period.
2. 
The permittee or licensee shall submit a policy statement to address subsection (B)(1) of this section for review and approval by the Chief of Police.
C. 
The permittee or licensee shall institute audit and accounting processes and procedures for employee tip pools and jackpot poker pools if jackpot poker is allowed.
D. 
In the event information requested of a licensee can be furnished only by someone other than the licensee (such as a landlord, supplier or an accountant), the licensee shall make every bona fide effort to obtain such information as requested and furnish the same or have it furnished directly by the person who has the information available.
E. 
In addition to such other information and data required by this section or by regulation issued by the City Manager pursuant to this chapter, each licensed establishment shall maintain on the card room site the following:
1. 
If a partnership or corporation:
a. 
A schedule showing the dates of capital contributions, loans or advances, the names and addresses of the contributors and percentage of ownership interest held of record by each.
b. 
A record of the withdrawals or distributions of funds or assets to partners or stockholders.
c. 
A record of salaries paid to each pointholder and key management employee.
d. 
A copy of the partnership or corporate agreement, certificate of limited partnership and accurate corporate stock transfer book, if applicable.
e. 
Copies of any and all public filings required by the Securities and Exchange Commission.
2. 
If a sole proprietorship:
a. 
A schedule showing the name and address of the proprietor and the amount and date of its original investment.
b. 
A record of subsequent additions thereto and withdrawals therefrom.
3. 
The records required to be kept by this regulation shall be in ink or any other permanent form of recordation. All financial transaction records, if not recorded concurrently with the transaction, shall be updated by the Friday of the week following the week in which a transaction occurred. Any records which are required by law to be maintained at another location (e.g., corporate headquarters), and of which a copy is required to be maintained on the card room site, shall be updated on the 15th of each month covering the prior month's transactions.
(Prior code § 5-012.1; Ord. 016-07 C.S. § 1)
A. 
Notwithstanding the audit requirements specified in Section 5.32.260 of this chapter, the licensee shall allow the City Manager or a designee unrestricted access to all books, records, facilities, and all audio and video tapes pertaining to the card room, including but not limited to, cash counting rooms and vault. Any information obtained pursuant to this section or any statement filed by the licensee or permittee 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 preserve and keep such statements so that the contents thereof shall not become known except to the persons charged by law with the administration of the provisions of this chapter or pursuant to the order of any court of competent jurisdiction.
B. 
Any failure or refusal of any permittee or licensee to make and file any statement within the time required, or to permit inspection of such books, records, accounts and reports of such permittee or licensee in accordance with the provisions of this chapter shall be full and sufficient grounds for the revocation or suspension of the permit and licenses of any such permittee or licensee in the sole discretion of the Chief of Police.
(Prior code § 5-012.2; Ord. 016-07 C.S. § 1)
A. 
The following regulations apply to all card rooms located in the City of Stockton:
1. 
There shall be no wagering limits for any card rooms in the City.
2. 
All card rooms may be open 24 hours per day, except conditions in the applicable use permit may dictate an earlier closure time, later opening time, or different period of being open for business. Card rooms may operate seven days a week.
B. 
Additionally, under the direction of the City Manager, the Chief of Police may from time to time enact additional rules and regulations governing the operation of card rooms and the activity conducted in card rooms by patrons to effectuate the purposes of this chapter. All such rules and regulations shall be given to all licensees concurrently with or prior to the effective date of said rules and regulations.
In the event a licensee is aggrieved by a rule or regulation enacted by the Chief of Police, such licensee shall have the right to file a notice of review to the City Manager for review of the enacted rule or regulation. Such written notice of review must be filed with the City Manager within 10 City business days of the effective date of the enacted rule or regulation. Failure to file the written notice of review within the time frame specified herein shall be deemed to be a waiver of the licensee's right to City Manager review. The City Manager or designee shall conduct a review hearing within 60 days of receipt of the notice of review and may approve, disapprove or modify such rule or regulation. The decision of the City Manager shall be final.
(Prior code § 5-013; Ord. 016-07 C.S. § 1; Ord. 2015-03-10-1208 C.S. § 1; Ord. 2015-09-01-1203 C.S. § 1; Ord. 2018-07-17-1106 C.S. § 1)
It is unlawful for any building owner, permittee, licensee or any other person to violate any provision provided for in this chapter. Any individual violating any of the provisions of this chapter or any of the rules and regulations set forth, established or promulgated in this chapter shall be guilty of a misdemeanor.
(Prior code § 5-013.1; Ord. 016-07 C.S. § 1; Ord. 2015-03-10-1208 C.S. § 2)
Preexisting lawful nonconforming card rooms and pointholders licensed under Title 5 of the Stockton Municipal Code in effect before the effective date of these amendments to this chapter shall be deemed licensed and in possession of a card room license and a point-holder permit under the provisions of this chapter and those licenses shall continue in effect until December 31st of the year of the effective date of the ordinance codified in this chapter, at which time they shall apply for renewal in accordance with the provisions of this chapter as applicable. All employees holding an employee work permit pursuant to Title 5 of the Stockton Municipal Code in effect before the amendment of this chapter shall be deemed permitted under the provisions of this chapter. Those employees who hold such a work permit and are not a key management employee as that term is defined herein, shall apply for renewal of their permit on or before the expiration date of the current valid work permit. Those employees who are key management employees shall apply for a key management employee license as required by this chapter no later than the expiration date of their current valid work permit. Such key management employees' employee work permit issued before the effective date of this amendment shall be deemed effective until the later of: (1) issuance or denial of a key employee license under this chapter; or (2) the date of expiration of their current valid work permit.
(Prior code § 5-013.2; Ord. 016-07 C.S. § 1)
Any applicant for a license or a work permit adversely affected by the action of the City Manager pursuant to this chapter, may appeal said decision to the City Council. Notice of such appeal shall be filed with the City Clerk within 10 days from the decision of the City Manager.
(Prior code § 5-014; Ord. 016-07 C.S. § 1)
The Council of the City hereby declares that it is not the intent of such provisions to permit the licensing of any card room 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 banking and percentage games.
(Prior code § 5-014.1; Ord. 016-07 C.S. § 1)