HomeMy WebLinkAboutReso 1996-18212 RESOLUTION NO. 18212
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA ADOPTING A CHULA VISTA GAMING PLAN WHICH
WOULD ALLOW PAl GOW AND SUPER PAN 9 TO BE PLAYED
AT CARDROOMS SUBJECT TO CERTAIN RESTRICTIONS, AND
MAKE OTHER CHANGES INCLUDING THE PERMISSIBLE HOURS
AND DAYS OF OPERATION, MAXIMUM BETS, AND
ALLOWABLE HOUSE CHARGES PER TABLE
WHEREAS, at the city council meeting on November 28, 1995 Council approved
certain amendments to Chapter 5.20 of the Municipal Code regarding cardrooms; and
WHEREAS, these changes allow any form of gambling in the city that is allowed at any
other location within the state upon the adoption of a gaming plan (the "Chula Vista Gaming
Plan") which regulates such form(s) of gambling; and
WHEREAS, pursuant to letters dated November 13, 1995 and January 17, 1996 the
owner/operator of the Village Cardroom has proposed changes to the city regulations
governing cardrooms; and
WHEREAS, city staff has evaluated such proposal and drafted a proposed Chula Vista
Gaming Plan which incorporates some of the Village Cardroom's proposed changes, and
certain other changes, on the terms and conditions set forth therein; and
WHEREAS, staff submitted the proposed gaming p~an to the city council for its
consideration with comments and recommendations from the chief of police and the city
manager that the Gaming Plan be approved; and
WHEREAS, in accordance with Section 5.20,001 of Municipal Code, a duly noticed
public hearing was held on such gaming plan on February 13, 1996; and
WHEREAS, the city council duly considered all public comments on the proposed
gaming plan prior to taking action thereon;
NOW, THEREFORE, BE IT RESOLVED the city council of the City of Chula Vista does
hereby adopt the Chula Vista Gaming Plan in the form attached hereto as Exhibit A, with such
minor wording changes or clarifications as may be required or otherwise approved by the city
attorney,
PreseO7 bl! i Ap d as fo y
Ric rd Emerson oogaard
Police Chief City AttOrney
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Exhibit A
CHULA VISTA GAMING PLAN
In accordance with Chapter 5.20 of the Chula Vista Municipal Code (the "Gaming
Code"), this document shall serve as the gaming plan for the City of Chula Vista (the "Gaming
Plan"). This Gaming Plan was adopted on February 13, 1996, after a public hearing, pursuant
to city council Resolution No. 18212.
Effective upon its adoption, this Gaming Plan shall implement, in its entirety,
Subchapter 2 of the Gaming Code. In the event of any inconsistency between this Gaming
Plan and the Gaming Code, the terms and conditions of this Gaming Plan shall govern. Except
to the extent that this Gaming Ran expressly modifies or is otherwise inconsistent with the
Gaming Code, the Gaming Code shall remain in full force and effect.
This Gaming Plan is intended to deal only with the subject of cardrooms. No other
types of gaming permitted by the code, subject to the adoption of a gaming plan with respect
thereto, shall be permitted or governed hereby. To be permitted, such other types of gaming
must be the subject of further action by resolution of the city council to amend or add to this
Gaming Plan.
CARDROOMS
1. Cardroom Defined.
For the purpose of this Gaming Plan, a "cardroom" is defined to be any space, room
or enclosure furnished or equipped with a table or tables used or intended to be used, either
exclusively or in conjunction with another business or activity, as a card table for the playing
of cards and similar games, and the use of which is available to the public.
2, Licensinq,
2.1 License Required to Operate Cardroom -- Individual Licensee's Must be 21 Years
or Older.
A license from the city issued pursuant to the Gaming Code or this Gaming Plan, is
required for any person, group of persons, partnership, corporation, or any other entity or
organization (each a "Person" hereinafter) to engage in or carry on, or to maintain or conduct,
or cause to be engaged in, carried on, maintained or conducted, any cardroom in the city.
Any such activity conducted without such a license, or otherwise in non-compliance with the
terms of the Gaming Code, this Gaming Plan, or any and all other applicable federal, state and
local laws and regulations shall be unlawful. No license shall be issued to any individual
Person under the age of twenty-one years.
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2.2 Number of Licenses Permitted -- Existinq Licenses.
The number of licenses authorized to be issued or held, in the aggregate, under the
provisions of this Gaming Plan shall be limited, based upon the population of the city
according to the certified determination thereof by the state department of finance. The
number of licenses so authorized may not be more than one per forty thousand (40,000)
residents or any fraction thereof. All such licenses shall be issued and held in accordance
with the provisions of this Gaming Plan; provided, however, any Person holding a license or
licenses to conduct cardroom operation upon the effective date of this Gaming Plan may
continue to hold such license or licenses subject to the terms and conditions set forth herein.
For purposes of determining the number of licenses which are authorized to be issued by the
city hereunder, any two licenses which are "consolidated" pursuant to Section 2.6 hereof
shall still be treated as being two separate licenses counted against the total number
authorized.
2.3 Types of Licenses -- Class I and Class II.
2.3.1 There shall be two types of cardroom licenses: Class I and Class II. The
characteristics, rights, obligations and limitations attributable, respectively, to a Class I or
Class II licenses are set forth throughout this Gaming Plan. Subject to all such provisions, in
general, (a) a Class I license shall permit the playing of all games permitted by the state
attorney general as of December 31, 1995 to be within the permissible subject of local
licensing by California cities, exceot Super Pan 9, Pal Gow, California 22, Panguingue, and
any and all similar games; and (b) a Class 11 license shall permit the playing of all games
permitted under a Class I license, and shall also permit the playing of Super Pan 9 and Pal
2.3.2 All licenses issued by the city shall initially be Class I licenses. In order
to convert a Class I license into a Class II license the holder of a Class I license (a} must have
continuously operated a cardroom under its Class I license within the city for a period of three
(3) years at a fixed location; and (b) must apply with the city and receive prior approval from
the city for such conversion in accordance with the application procedures set forth in Section
2.4 hereof, below.
2.4 Application/Issuance Procedure.
2.4.1 Any Person desiring a cardroom license must submit an application
therefor to the chief of police. Such application shall be on a form issued by, or otherwise
approved in advance by, the chief of police. Such application shall include, in addition to any
other information required by the chief of police, (a) the true names and addresses of any and
all Persons currently, or contemplated to have a "financial interest" in the cardroom operation
proposed to be licensed; (b) the past criminal record, if any, of any and all such Persons; (c)
the fingerprints of any and all such Persons; (d) the proposed location of the cardroom; and
(e) a non-refundable fee, as presently designated, or as may in the future be amended, in the
Master Fee Schedule, to cover the cost of processing the application and of any required
investigation of the applicant. Upon the issuance of a cardroom license, the chief of police
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may authorize the refund of the investigation portion of the application fee to any Persons
who were not subject to investigations.
2.4.2 Each cardroom license application shall be totally independent and
unassociated with any other application being submitted for the purpose of obtaining such a
license. No applicant requesting a license pursuant to this section may have a financial
interest, or any other interest (as described in Section 2.4.3 hereof) in any other cardroom
license, or application pending therefor.
2.4.3 For purposes of this Section 2.4 and the Gaming Plan, the term "financial
interest" shall mean any and all direct or indirect ownership, creditor or other interests in a
cardroom license, the cardroom business operated thereunder, the assets thereof, or the
revenues generated thereby. Such an interest shall include, without limitation, any and all
interests held by building owners, landlords, tenants, equipment or fixtures owners, lessors
or lessees, creditors, lenders or guarantors related in any way to the ownership, financing or
operation of the cardroom; and (b) a parent, spouse, sibling or child of an individual Person
holding a direct, majority or controlling ownership interest in a license or cardroom shall also
be deemed the holder of a "financial interest" for purposes of this Section and this Gaming
Plan.
2.4.4 Any new or revoked cardroom license otherwise qualified for issuance
may be issued during the period of May 1 through June 30 following the availability or
revocation date of such a license. After the expiration of this period no further licenses shall
be issued until the following May 1 through June 30 period. In the event that there are
applications in excess of the number of licenses available in accordance with the limitations
set forth in Section 2.2 hereof, a license may by issued to the most qualified of such
applicants in accordance with a procedure established by the city. Notwithstanding the
foregoing, the city shall decide, in its sole discretion, as to whether to issue any cardroom
license authorized hereunder, and whether or how to condition such an issuance; furthermore,
the city reserves the right, for any reason whatsoever, to reject any and all applications for
a cardroom license hereunder,
2.5 Transfers.
2.5.1 Any license issued pursuant to the Gaming Code or this Gaming Plan, a
cardroom operated thereunder, or any direct or indirect interest therein, may be transferred,
but only in strict accordance with the terms and conditions of this Section 2.5. Transfers
governed by this section shall include, without limitation, any and all sales, leases,
conveyances, assignments, grants, pledges, gifts, devises, donations and/or similar transfers
by a Person of any or all of such Persons, direct or indirect, ownership interest in a license or
cardroom operated thereunder, or "financial interest" in a license or cardroom operated
thereunder, as such concept is defined in Section 2.4.3 hereof. Such transfers shall include,
without limitation, (a) a transfer of all or any shares by a shareholder in a corporate licensee;
(b) the transfer of all or any partnership interest by a partner in a partnership licensee; (c) the
transfer of all or any portion of a controlling shareholder or partnership interest in an entity
which itself holds a direct or indirect ownership or financial interest in a license or cardroom;
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and (d) a transfer of a substantial portion of the assets of a Person holding a license or a
cardroom operated thereunder.
2,5.2 A license may only be transferred to a Person that submits an application
for approval by the city and receives approval from the city in accordance with the procedures
set forth for the issuance of a licenses set forth in Section 2.4 hereof.
2.5.3 Any and all proposed cardroom license transfers must receive (a) prior
written approval of the chief of police, which approval may be withheld in the sole discretion
of the chief of police, and (b) the ratification of the city council, which ratification may be
withheld in the sole discretion of the city council. Such approval and/or ratification may be
conditioned as the acting parties deem appropriate, and may be based, but is not required to
be based, entirely or in part on the assessment by the chief of police or, as applicable, the city
council, of the character of the proposed licensee, or on the opinion of the approving or
ratifying entity, that there appears to be good cause why such Person should not operate a
cardroom. Notwithstanding the foregoing in the event of a transfer directly caused by the
death or divorce of a Person holding a financial interest in a license, the "prior approval"
requirement, above, shall be amended to require that approval of the resulting transferee be
obtained by no later than sixty (60) days following the death or divorce causing such transfer.
2.5.4 With the exception of those licenses which have been issued prior to
September 1, 1992, no license may be transferred unless and until the holder thereof has
been operating a cardroom governed by such license for three (3) years at a fixed location in
the city. Licenses issued prior to September 1, 1992 may not be transferred unless and until
the holder thereof has been operating a cardroom governed by such license for one (1) year
at a fixed location within the city.
2.5.5 In the event of a purported transfer of a license which does not comply
with the terms of this Section (a) the purported transferror shall be subject to monetary
penalties as provided in Section 4.2 hereof; (b) the purported transferee shall have no rights
to operate a cardroom in the city under the authority of such license; (c) the license involved
shall be subject to revocation by the city as provided in Section 4.3 hereof; and (d) the
transfer may otherwise be declared null and void.
2.5.6 Upon transfer of a Class II license, the Class II license so transferred shall
immediately revert back to a Class I license. A Class tl license so reverted may be converted
back to a Class II license, but only in accordance with the provisions of Section 2.3.2 hereof.
2.6 Consolidation.
2.6.1 Notwithstanding any other section of this Gaming Plan to the contrary,
the holder of a Class I or Class II license may acquire one, but only one, additional Class I or
Class II License, subject to the consolidation rules and procedures of this Section 2.6, Under
no circumstances may any Person acquire or hold more than two licenses.
2.6.2 In order to acquire an additional license, an existing license holder (a)
must have continuously operated a cardroom under its existing license within the city for a
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period of three (3) years at a fixed location; and (b) must apply with the city and receive prior
written approval from the city for such acquisition in accordance with the rules and
procedures set forth in Section 2.4 hereof regarding the initial issuance of licenses. If the
additional license is to be acquired from another existing license holder, such application shall
also be made in accordance with the ru~es and procedures governing license transfers set forth
in Section 2.5.3 hereof.
2.6.3 If an application for the acquisition of an additional license is granted, the
two licenses held by the applicant shall become "consolidated". In addition, licenses shall be
deemed to be "consolidated" in the event that the same Person holds, or comes to hold, a
"financial interest" (as defined in Section 2.4.3 thereof) in such licenses or the cardrooms
operated thereunder. Under a consolidated license, the maximum number of tables permitted
to be operated is twelve (12), subject to any additional or contrary terms and conditions set
forth in Section 3.5 and/or other provisions of this Gaming Plan. All tables operated under a
consolidated license must be operated in the same location.
2.6.4 In the event that a Class I license is consolidated with a Class II license,
the full benefits and burdens hereunder of Class II status shaU apply to all the card tables
operated under such consolidated license,
2.7 License Tax.
2.7.1 In General. There shall be a license tax imposed on any licensed
cardroom within the city in accordance with the terms of this Section 2.7. The license tax
is imposed for purposes of generating revenues to the general fund of the city and is not
imposed for purposes of regulation. The tax shall be imposed against the number of tables
licensed, based upon the c~ass of license issued with respect thereto, regardless of the
number of tables which may be operated on any given day or the class of game conducted
thereon.
2.7.2 Amount of Tax -- Greater of Base or Gross Revenues Rate. The license
tax to be assessed and collected on each licensed cardroom shall be the qreater of the
applicable "base rate" tax per table, or the applicable "adjusted gross revenue rate" tax per
table, if any, determined as follows:
2,7.2.1 Base Rate:
a. Class I -- Non-consolidated: The base license tax for card tables
licensed under a single, non-consotidated Class I license shall be (1) ~1,500 per card table per
quarter for a cardroom authorized to operate six (6) days per week; and $1 ,750 per card table
per annual quarter for a cardroom authorized to operate seven (7) days per week.
b. Class I -- Consolidated: The base license tax for card tables licensed
under a consolidated Class I license shall be $2,500 per card table per annual quarter.
c, Class I -- Greater Than $3 Charge Per Hand: Notwithstanding the
foregoing, at such time that this Gaming Plan approves and the licensee charges in excess of
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three dollars ($3.00) per table per hand, the base license tax for such Class I card tables shall
be $4,000 per card table per annual quarter.
d. Class Ih The base license tax for each card table licensed to play
Class II games under a Class I1 license shall be 84,000 per table per annual quarter. For
example, if a single non-consolidated Class I license is converted to a Class II License, the
base rate for 6 of the 8 licensed tables shall be determined by the applicable Class I rate, and
the base rate for the remaining 2 tables shall be the Class II base rate. Notwithstanding the
foregoing, in the event that no games are conducted at a table operated under a Class II
license for an entire quarter, that table shall be treated as a Class I table for purposes of this
Section 2.7.
2.7.2.2 Adjusted Gross Revenues Rate:
a. Calculated for Both Class I and Class II Tables: If the mean average
"adjusted gross revenues" (defined below) per quarter per table for Class I tables, on the one
hand, or Class ~1 tables (if any), on the other hand, exceeds $60,000 per table, an adjusted
gross revenues tax per table per quarter shall be determined for each Class of tables with such
an average, based upon the following rates:
Gross revenues up to; Tax rate;
870,000 7.00%
880,000 7.25%
8100,000 7.50%
With an additional 0.25% tax for each additional 8100,000 or fraction
thereof in adjusted gross revenues per table per quarter, up to a
maximum rate of 10%.
Any applicable rate shall be applied on the aggregate amount of adjusted gross revenues
generated per table; in other words, the applicable rate shall not be applied in combination
with other rates as a _marginal rate.
b. Revenues Not Attributable to a Class I or Class II Table: In any case
in which a portion of the adjusted gross revenues cannot be allocated directly to either Class
I or Class II games, these revenues shall be divided between the two classes based on the
proportion of maximum allowable players per class of games as licensed at that establishment.
For example, if a cardroom has nine poker tables (Class I) and three Pal Gow tables (Class I1),
the maximum number of poker players would be 81 and the maximum number of Pal Gow
players would be 84. Thus, in this case, the Class 1 tables would be allocated 49.09% of the
non-game-specific adjusted gross revenue and the Class I1 tables would be allocated 50.91%
of the non-game-specific adjusted gross revenue.
c. Definition of Adjusted Gross Revenues: Adjusted gross revenues shall
be defined to include all revenues received by the license holder from per hand money
collected, seat rental fees, and any and all other revenues generated from or attributable to
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card play, except fees charged to p~ayers that are returned to the players through approved
I direct promotions, subject to any applicable state and/or city restrictions on such promotions.
Adjusted gross revenues shall be calculated separately for Class I and Class II Games.
Notwithstanding any other provision in this Section 2.7 to the contrary, any table which is not
in use at any time for an entire quarter shall not be considered in the calculation of adjusted
gross revenues per table per quarter for the other tables and shall itself be assigned an
adjusted gross revenue figure for that quarter of ~0.
2,7.3 Procedures for Payment of Tax.
2.7.3,1 Advance Payment. The license tax assessed hereunder
shall be payable quarterly in advance by no later than the day falling fifteen (15) days prior
to the first day of each calendar quarter. For the first three (3) quarters of any cardroom
operation, the minimum advance payment amount shall be the applicabte base license tax
applicable thereto. For each quarter thereafter, the minimum advance payment amount shall
be the mean average of the license tax amounts which were determined by the city to be
ultimately due and payable to the city with respect to the most recent previous two quarters
for which such data is available.
2.7.3.2 Reconciliation Payment. By no later than the date falling
thirty (30) days after the expiration of each calendar quarter, a licensee hereunder shall submit
to the finance director, in a form approved thereby (a) a verified statement of the adjusted
gross revenues generated during such quarter, and (b) licensee's request for reimbursement
from the city, or licensee's payment of any additional amounts owed, as appropriate,
determined by licensee based upon such statement of adjusted gross revenues. The finance
director shall have the authority to designate an alternate payment procedure to ensure timely
collection of all amounts due.
2.7.4 Audit Rights. In the event that the city disagrees with any verified
statement of adjusted gross revenues submitted pursuant to Section 2.7.3.2, above, the city
shall notify licensee in writing of such disagreement and, at city's request, licensee shall
submit to an independent audit by the city, or its designee, of licensee's accounting records
in order to verify such statement. In the event that the city determines that licensee's verified
statement understates adjusted gross revenues, licensee shall be immediately required to
submit payment of the difference to the city. If such discrepancy exceeds a factor of five
percent (5%), then (a) licensee shall be deemed to be in violation of the Gaming Plan, and (b)
in addition to licensee's obligation to immediately pay the discrepancy, licensee shall be
required to pay the city's costs in conducting its audit hereunder.
2.7.5 Tax Receipt. The finance director shall issue a receipt for each licensed
cardroom and such receipt shall be displayed on the premises during the full term for which
such receipt was issued.
3. Ooerating Limitations and Conditions.
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3.1 City Land Use Regulations Shall Control.
All cardrooms and card table operations shall be subject to the city's land use
regulations. Notwithstanding any provision in this Gaming Plan to the contrary, no cardroom
operations shall be permitted without the prior acquisition of any and all necessary approvals
and permits from the city in connection therewith, and any cardroom ol~eration with such
approvals and permits shall operate in strict compliance with any and all terms and conditions
thereof.
3.2 Games Permitted.
3.2.1 Class I License: Subject to the terms and conditions of this Gaming Plan
and the Gaming Code, the holder of a Class I cardroom license shall be permitted to operate
a cardroom which conducts all card games which were determined by the attorney general
as of December 31,1995 to be within the permissible subject of local licensing by California
cities, except that Super Pan 9, Pal Gow, California 22, Panguingue and any and all similar
games may not be played. The games permitted under this section shall be referred to herein
from time to time as "Class I Games".
3.2.2 Class II License: Subject to the terms and conditions of this Gaming Plan
and the Gaming Code, the holder of a Class II cardroom license shall be I~ermitted to operate
a cardroom which conducts all card games permitted by a Class I license (as described in
Section 3.2.1, above,) plus Super Pan 9 and Pal Gow. Super Pan 9 and Pal Gow shall be
referred to herein from time to time as "Class II Games".
3.2.3 Posting of Permitted Games -- Game Being Played. There shall be posted
in every cardroom in letters plainly visible from all parts thereof, signs stating which games
have been approved for play at said cardroom. In addition to the foregoing, each table shall
identify by prominent sign located thereon the game which is currently being played at said
table.
3.3 Game Rules.
3.3.1. In General. No permitted game may be played in a cardroom unless and
until a written set of rules ("Games Rules") for such a game has been submitted to the chief
of police and approved thereby. Said approval may be amended, conditioned or revoked from
time to time in the sole discretion of the chief of police. Each and every permitted game
must, at all times, be played strictly in accordance with the approved and I~osted Game Rules
applicable thereto. Variations of a game, unless specifically described in the Game Rules, shall
not be aUowed.
3.3.2 Posting of Game Rules. A copy of the apl~roved Game Rules showing
thereon the approval of the chief of I~olice shall be posted in the cardroom in a conspicuous
place readily available to the patrons or prospective patrons and visible from any seat at any
card table on the premises.
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3.4 Hours and Days of Operation.
Licensed cardrooms may operate seven days per week. except that no cardroom shall
be operated, and no card table licensed under the provisions of this code which is maintained
or operated in connection with any other business shall be used for any card game, from four
o'clock a.m. to eight o'ciock a.m. of any day; and
3.5 Maximum Number of Tables.
3.5.1 Class I -- Non-Consolidated. The maximum number of tables permitted
under a singte, non-consolidated Class I license shall be eight (8).
3.5.2 Class I -- Consolidated. The maximum number of tables permitted under
a consolidated Class I license shall be twelve (12).
3.5.3 Class II -- Non-Consolidated. The maximum number of tables permitted
under a single, non-consolidated Class H license shall be eight (8); however, only two (2) of
the eight (8) licensed tables shall be permitted at any one time to conduct Class II Games.
3.5.4 Class II -- Consolidated. The maximum number of tables permitted under
a consolidated Class II license shall be eight (12); however, only three (3) of the twelve (I 2)
licensed tables shall be permitted at any one time to conduct Class II Games.
3.6 Maximum Number of Players Per Table.
3.6.1 Class I Tables. No more than nine (9) players shall be permitted at any
one card table conducting Class I Games.
3,6.2 Class II Tables. No more than seven (7) seated players with three
additional standing players per seat, for a total of twenty-eight (28) players per table shall be
permitted at any one card table conducting Class II Games.
3.7 Maximum Bets and Bettinfi Rules.
3.7.1 Class I Games. No bet or wager in any Class I Game shall exceed the
sum of eighty dollars ($80). Only table stakes shall be permitted. No jackpots shall be
allowed.
3.7.2 Class II Games. There shall be no limit on bets or wagers in any Class
II Game except that only table stakes shall be permitted.
3.8 Maximum House Charges Per Hand -- Postinfi Required.
3.8.1 Class I Games. No charge in excess of three dollars ($3.00) per hand
per table shall be collected by a cardroom operator from any players for the privilege of
participating in any Class I Game. Notwithstanding the foregoing, effective January 1,1998,
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Page 11
the maximum charge allowed shall be increased to a maximum of four dollars ($4.00) per
hand per table for Class I Games.
3.8.2 Class II Games. No charge in excess of one percent (1%) of each one
hundred dollars (t~100) wagered shall be collected from any player for the privilege of
participating in any Class II Game.
3°8.3 Posting Required. A copy of all schedules of house charges shall be
provided to the police chief and shall be clearly posted in each licensed cardroom.
3.9 Work Permits and Identification Badqes Required For Manaoers and Emolovees.
3.9.1 Work Permit Required. Prior to commencing work at a cardroom, each
proposed manager or employee of a cardroom, if such Person is other than the Person or
Persons whose names appear on the application for the cardroom license, must obtain a work
permit from the chief of police.
3.9.2 Application Process. Each proposed manager or employee shall submit
an application for the required work permit to the chief of police. Such application shall be
on a form issued by, or otherwise approved in advance by, the chief of police. Such
application shall include, in addition to any other information required by the chief of police,
(a) the past criminal record, if any, of such Person; (c) the fingerprints of such Person; and
(d) a non-refundable fee, as presently designated, or as may in the future be amended, in the
Master Fee Schedule for cardroom applications, to cover the cost of processing the application
and of any required investigation of the applicant. The work permit, when issued, shall be
valid for one (1) year. Any renewal must also be approved by the chief of police. The chief
of police may deny the initial approval or renewal of a work permit if, in the chief of police's
opinion, (1) in the case of a proposed manager the applicant therefor should not be permitted
to act as manager or employee in lieu of management by the licensee of the cardroom; and
(2) in the case of a proposed employee the applicant therefor should not be permitted to be
employed in a cardroom.
3.9.3 Identification badges to be worn. Every manager and employee of a
cardroom shall, at all times when present in such cardrooms, wear an identification badge
containing such Person's photograph, age, address and description of such individual.
3.10 Drinkinq of intoxicating beveraqes prohibited.
The drinking of any intoxicating liquor in a cardroom by any Person in the cardroom is
prohibited. The licensee of a cardroom shall take all necessary and appropriate steps to
assure compliance with this section.
3.11 Minors prohibited from patronaqe or employment.
No person under twenty-one years of age shall be permitted to play any game at any
card table in the city. No person under twenty*one years of age shall be employed where any
card table is maintained in the city.
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3.12 Siqns to be Posted.
Licensee shall comply at all times with the sign requirements set forth in this Gaming
Plan including, without limitation, Sections 3.2.3, 3.3.2 and 3.8.3 hereof, and any and all
other signage or posting requirements contained in applicable federal, state or local laws, rules
and regulations.
3.13 Class II Games to be Played Only at Cordoned off Tables.
All cardroom areas to be used for Class II gaming shall be roped, cordoned or otherwise
physically segregated from the Class I gaming areas. All individuals within such Class II
gaming areas other than cardroom employees, city regulatory or enforcement staff or
uniformed security personnel who are working within the scope of their employment shall be
considered players at the table for purposes of compliance with the maximum number of
players allowed provisions of Section 3.6 hereof.
3.14 Licensee Responsible for Compliance and Supervision of Operations.
The licensee of a cardroom shall be responsible for assuring that any cardroom
operated under such license is operated in strict compliance with the terms of this Gaming
Plan, the provisions of the Penal Code of the state of California and any and all other
applicable federal, state, and local laws, rules, regulations, or permits. All cardrooms and/or
card tables shall be supervised by the operator or an employee of the operator of the
cardroom, to assure such compliance. Any violation of the cardroom operating limitations and
conditions in this Section 3, or elsewhere in the Gaming Plan, whether or not caused by the
licensee or any employee thereof, shall be considered a violation by the licensee of the terms
and conditions of its license, and therefore subject to the city's enforcement rights and
policies set forth in Section 4 hereof.
4. Enforcement,
4.1 In General,
It is unlawful and a violation of this Gaming Plan to obtain, transfer or consolidate a
cardroom license, or to operate a cardroom in violation of any of the regulations and rules set
forth in the Gaming Code, this Gaming Plan, and any and all other applicable federal, state and
local laws, rules, regulations or permits.
4.2 Monetary Fines.
4.2,1 Amounts of Fines. For any violation of the terms of this Gaming Plan,
the city shall have the right to impose a penalty of up to $1,000 per day for each day the
licensee is in violation. In the event that a licensee is cited for a violation (not necessarily the
same violation) more than three (3) times within a 6 month period, upon the fourth such
citation, and with respect to any occurrence thereafter, the city shall have the right to impose
a penalty of up to ~;5,000 per day the licensee is in violation.
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4.2.2 Imposition of Fine Not Election of Remedies. The pursuit of monetary
fines against a licensee or the receipt of payment therefor shall not constitute an election of
remedies on the part of the city and thus shall not preclude any other course of action such
as may be available including, without limitation, the revocation of the cardroom license held
or issued hereunder, the revocation of any and all permits or approvals permitting the
operation of the cardroom, and any and all other remedies available to the city at law or in
equity.
4.3 Revocation and Suspension.
4.3.1 City Right to Revoke or Suspend. Any cardroom license issued or held
hereunder may be revoked or suspended by the city, after a public hearing, upon the
determination by the city council and the chief of police that with respect to the license and/or
cardroom operated thereunder, there has been a material violation, or repeated violations of
this Gaming Plan or any or all other applicable federal, state or local laws, rules, regulations
or permits.
4.3.2 Material Violation. The city shall determine, in its sole discretion, what
shall constitute a material violation for purposes of revocation or suspension under this
Section 4.3. Material violations may include, without limitation, the following:
(a) A misrepresentation or exclusion on any application for approval, report or
statement of revenues required to be submitted under this Gaming Plan or under any other
applicable federal, state or local law, rule, regulation or permit.
(b) A non-complying purported transfer of a cardroom license held or issued
hereunder.
(c) Allowing persons other than those named in the application on file with the
city to own an interest in, or have direct management of a cardroom.
(d) Maintaining a greater number of tables than the number permitted by the
license.
(e) Failure to strictly comply with any and all federal, state and local laws,
rules, regulations and permits applicable to the holding of a license or the operation of a
cardroom hereunder, including, without limitation local land use and other code provisions.
(f) Failure to pay, when due, the amount of license tax owed pursuant to
Section 2.7 hereof.
(g) Citation of five (5) or more minor violations of this Gaming Plan within any
twelve (12) consecutive months.
(h) The conduct of criminal or dangerous activities at or attributable to the
licensed cardroom.
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(i) Failure to pay, when due, the amount of any monetary fine imposed
pursuant to Section 4.2.1 hereof.
(j) Refusal to permit city access to a cardroom for purposes of auditing or
inspecting same.
4.4 Audit and Inspection Riqhts.
The city shall have the right, at any time, without notice, to enter into any cardroom
operating within the city and to conduct a reasonable inspection of all areas of such cardroom,
and/or any or all fixtures, equipment, accounting materials or documents contained therein,
in order to determine whether or not such cardroom is being operated in accordance with this
Gaming Plan.
5. General Provisions.
5.1 Definitions.
Except as otherwise expressly defined herein, capitalized terms, and terms otherwise
requiring definitions for proper interpretation, shall have the meanings ascribed thereto by the
Gaming Code.
5.2 Section Headin~ls. ,~'
Section headings contained herein are for reference purposes only and shall not be
deemed to govern, limit, modify or in any manner affect the scope, meaning or intent of the
provisions of any section hereof.
5°3 Gaming Plan Amendments.
This Gaming Plan may be revoked or amended, in whole or in part, at any time, after
a public hearing, by approval of the city council.
5.4 Integrated Plan.
All provisions of this Gaming Plan are intended to be integral parts of a comprehensive
regulatory scheme. In the event that any material provision hereof is finally determined to be
invalid, then, as of the date of such determination (a) the entire Gaming Plan shall, ab initio,
become void and of no effect, and (b) the Gaming Code provisions otherwise implemented or
superseded hereby shall become effective.
5.5 Agreement of Licensee to Accept Validity and Abide by All Provisions.
Each license which holds or is issued a license hereunder, in order to legally operate
a cardroom within the city must first enter into a written agreement with the city whereby
such licensee agrees, on behalf of itself, any successors or assigns thereof, and any and all
parties with a financial interest in the license or the cardroom operated thereunder, that such ',~.
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Page 15
Persons (a) shall abide by any and all provisions of the Gaming Plan; (b) acknowledge that all
provisions of the Gaming Plan are valid and enforceable by the city against such Persons; and
(c) waive and agree not to pursue any and all claims or other action against the city that any
or all provisions of the Gaming Plan were not legally adopted, valid or enforceable with respect
thereto.
1 I1 m'lT
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Page 16
PASSED, APPROVED, and ADOt~TED by the City Council of the City of Chula Vista,
California, this 20th day of February, 1996, by the following vote:
AYES: Councilmembers: Alevy, Moot, Padilia, Rindone, Horton
NAYES: Councilmembers; None
ABSENT: Councilmembers: None
ABSTAIN: Councilmembers: None
Shiile'~4FIorton, Mayor
ATTEST:
Authelet, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO ) ss.
CITY OF CHULA VISTA )
I, Beverly A. Authelet, City Clerk of the City of Chula Vista, California, do hereby certify that
the foregoing Resolution No. 18212 was duly passed, approved, and adopted by the City
Council at a regular meeting of the Chula Vista City Council held on the 20th day of February,
1996.
Executed this 20th day of February, 1996.
uthelet, City Clerk