HomeMy WebLinkAboutReso 2023-182
Exhibit A
CHULA VISTA GAMING PLAN
\[Adopted November 14, 2023\]
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 operation of Cardrooms within the City of
Chula Vista {the "Gaming Plan"). This Gaming Plan was originally adopted on February 13, 1996,
after a public hearing, pursuant to city council Resolution No. 18212. The Gaming Plan has been
amended as follows: {l) on January 13, 1998 pursuant to Resolution No. 18862; {2) on November
10, 1998 pursuant to Resolution No. 19251; {3) on September 26, 2000, pursuant to Resolution
No. 2000-332; {4) on October 6, 2009, pursuant to Resolution No. 2009-238; {5) on March 14,
2012, pursuant to Resolution No. 2012-047; {6) on March 3, 2015, pursuant to Resolution No.
2015-056; (7) on April 11, 2017, pursuant to Resolution No. 2017-0128, and (8) on July 23, 2019,
pursuant to Resolution No. 2019-143. The modifications contained in such amendments shall be
deemed effective as of the dates of their adoption.
Effective upon its adoption, this Gaming Plan implements, in its entirety, Subchapter 2 of
the Gaming Code relating to Cardrooms. Pursuant to Subchapter 1, Section 5.20.004, of the
Gaming Code any inconsistency between the Gaming Code and the Gaming Plan shall be
governed by the provisions of the Gaming Plan. Except to the extent that this Gaming Plan
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 Gaming Code, shall be 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.
This version of the Gaming Plan is adopted and effective as of November 14, 2023
pursuant to City Council Resolution No. ________.
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.Licensing.
2.1License Required to Operate Cardroom - Individual Licensees Must be 21 Years
or Older.
A license from the City issued pursuant to this Gaming Plan, is required for any person,
group of persons, partnership, corporation, or any other entity or organization (each a "Person"
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Exhibit A
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 this Gaming Plan, the Gaming Code,
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.
2.2 Number of Licenses Permitted - Existing 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. 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 under state law, and shall be entitled to all rights, benefits,
and restrictions as if the licenses were held separately, both under state law and the terms of
this Gaming Plan.
2.3 Two Types of Gaming Classifications.
2.3.1 In General. There shall be two types of cardroom licenses: Category I and
Category II. The characteristics, rights, obligations and limitations attributable, respectively, to a
Category I or Category II licenses are set forth throughout this Gaming Plan. Subject to all such
provisions, in general,
(a) a Category I license shall permit the playing of all games available for licensure
through the Office of the Attorney General, except games involving "back-line" betting; and
(b) a Category II license shall permit the playing of all games permitted under a
Category I license and shall also permit games involving back- line betting. "Back-line" betting
card games are card games which allow a player not seated at a cardroom table, but standing
adjacent to the table, to bet on a hand being played by a player seated at that table. Subject to
state and local law, multiple "back-line" betters may be allowed to participate in any one game.
2.3.2 All licenses issued by the City shall initially be Category I licenses. In order
to obtain a Category II license, the applicant (a) must have continuously operated a cardroom
that plays Category I games for a period of three (3) years; 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 In General. Any Person desiring a cardroom license must submit an
application to the chief of police. The application shall be on a form issued by, or otherwise
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Exhibit A
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 may authorize the
refund of the investigation portion of the application fee to any Persons who were not subject to
investigations.
2.4.2 Approval Required. Any and all proposed cardroom licensees 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, (b) approval by the State of California Division of Gambling
Control; and (c) 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 or 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. The time limit may be extended
provided the resulting transferee has submitted its application and such additional information
as may have been requested with the licensing authorities in a timely fashion.
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.
2.4.3.1 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.
2.4.3.2 The City shall decide, in its sole discretion, whether a particular
circumstance or transaction falls within the scope of the definition of a "financial interest" that
requires submission of an application to the chief of police and approval by the Council for
separate licensure.
2.4.4 Any new or revoked cardroom license otherwise qualified for issuance
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Exhibit A
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 be 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 In General. Any license issued pursuant to this Gaming Plan, a cardroom
operated thereunder, or any direct or indirect interest therein, may only be transferred in
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.
2.5.1.1 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; and (d) a transfer of a substantial
portion of the assets of a Person holding a license or a cardroom operated thereunder.
2.5.1.2 Such transfers shall not include (a) corporate structure
reorganization where the individuals involved in the ownership and their respective percentage
interests do not change; (b) transfer of ownership interest for estate planning purposes where the
trustee is the same as the current licensed owner; or (c) such other situation that is similar to
those described above that the City deems to be immaterial.
2.5.2 Application Required. Any applicant seeking a license transfer must
comply with all of the application and approval requirements set forth in Section 2.4.
2.5.3 Three Years Operation Required Before Transfer. 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.
2.5.4 Non-Complying Transfers. In the event of a purported transfer of a
license that does not comply with the terms of this Section, the purported transferor shall be
subject to monetary penalties as provided in Section 4.2 hereof. The purported transferee shall
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Exhibit A
have no rights to operate a cardroom in the City under the authority of such license. 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.
2.5.5 Special Rules for Transfers of Category II Licenses.
2.5.5.1 Except as otherwise provided herein, upon the transfer, either
all at once or in a series of transfers, of a "material or controlling financial interest" (define below)
in a Category II license, the Category II license, which is the subject of such transfer, shall
immediately revert back to a Category I license. A Category II license so reverted may be
converted back to a Category II license, but only in accordance with the provisions of Section
2.3.2 hereof.
2.5.5.2 Notwithstanding the foregoing, a material or controlling interest
in a Category II license may be transferred without reversion of the subject Category II license to
Category I status subject to the following terms and conditions:
(a) The transfer must be to a "pre-qualified transferee". For
purposes of this Section, a "pre-qualified transferee" shall be defined as a Person on record with
the chief of police as a Person holding a financial interest in the license, which, with the prior
knowledge of the chief of police, acknowledged in writing thereby, has been substantially
responsible for the management and operations of a licensed cardroom continuously for a period
of three (3) years.
(b) In addition to the agreement required pursuant to Section 5.5
hereof, any pre-qualified transferee shall enter into a written agreement with the City whereby
such Person, 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, agrees that (a) the
Category II status of the license to be transferred thereto shall be temporary and subject to
reversion to Category I status in accordance with this Section; and (bl any action taken by the
City to revert the Category II license to a Category I license shall not constitute a taking of any
property or other interest held by such Person(s); and (c) such Person(s) waive and agree not to
pursue any and all claims or other action against the City in connection with a City decision to
revert the Category II license to a Category I license.
(c) Until such time that Category II Games have been operated
continuously by the pre-qualified transferee for a period of one (1) year following the effective
date of the transfer of the Category II license, or such longer period as the Category II license,
or such longer period as the chief of police may require (the "Temporary Category II Status
Period"), the Category II statues of the license shall be temporary, and therefore subject to
reversion to a Category I license upon a determination by the chief of police, in his/her sole
discretion, for any or no reason whatsoever, that the transferee should be required to first operate
as a Category I licensee prior to being permitted to operate as a Category II licensee in
accordance with the terms and conditions of Section 2.3.2 hereof. Such determination may be
made at any time within thirty (30) days after the expiration of the Temporary Category II Status
Period.
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Exhibit A
(d) Pre-qualification of a potential transferee hereunder shall
not constitute City approval of a transfer to such potential transferee and any such transfer shall
remain subject to the provisions of Section 2.5 hereof.
2.5.5.3 For purposes of this Section, the City shall determine, in its sole
discretion, what constitutes a "material or controlling financial interest" provided; however, in
general, a transfer of a financial interest for purposes of pre-qualifying a Person under Section
2.5.6.2 shall not be considered the transfer of a "material or controlling financial interest".
2.5.6. Except as otherwise provided herein, upon the transfer, either all at once
or in a series of transfers, of a material or controlling financial interest in a license or the cardroom
operated thereunder, the holder of the license, which is the subject of such transfer shall be
considered to be new holder of such license subject to any and all provisions hereunder applicable
thereto.
2.5.7. Full Cost Recovery for Administrative Costs Associated With
Transfer. Any person submitting an application for transfer of a license shall be responsible for
payment to the City of all actual administrative costs incurred by the City including the cost of
staff time, at the City's full cost recovery rate, associated with the investigation of the application
for a license transfer and review of transfer documents. The chief of police shall estimate the
cost of City staff and other administrative costs in connection with an application and the Person
shall deposit such amount at the time of submitting the application for license transfer to the chief
of police. If actual costs incurred exceed the initial deposit the chief of police may require the
applicant to make additional deposits to offset costs incurred or to be incurred by the City. If the
amount estimated is in excess of the cost incurred, the difference will be refunded to the applicant
at the end of the City's review.
2.6 Consolidation.
2.6.1 In General. Notwithstanding any other section of this Gaming Plan to the
contrary, the holder of a Category I or Category II license may acquire additional Category I or
Category II licenses, subject to the consolidation rules and procedures of this Section 2.6. A
licensee is permitted to acquire as many licenses as are legally allowed in the City pursuant to
Municipal Code section 5.20.030, taking into account licenses already held by others.
2.6.2 Required Qualifications/Procedures. 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 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 rules and procedures
governing license transfers set forth in Section 2.5.3 hereof.
2.6.3 Effect of Consolidation; Deemed Consolidation. If an application for
the acquisition of an additional license is granted to an applicant holding one license, the two
licenses shall become "consolidated". In addition, two licenses shall be deemed to be
"consolidated" in the event that the same Person holds, or comes to hold, a "financial interest"
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Exhibit A
(as defined in Section 2.4.3 hereof) in both licenses. or the cardrooms operated thereunder. If
an application for the acquisition of an additional license is granted to an applicant holding only
one or more sets of consolidated licenses, the additional license shall not be consolidated. If an
application for the acquisition of an additional license is granted to an applicant holding one or
more sets of consolidated licenses and one unconsolidated license, the unconsolidated license
held by the applicant shall be deemed to be consolidated with the new license. Under a
consolidated license, the maximum number of tables permitted to be operated is twenty (20),
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 Category I with Category II Consolidations. In the event that a
Category I license is consolidated with a Category II license, the following rules shall apply: (a) if
the previous owner of the Category II License retains majority ownership and control over the
consolidated license, the full benefits and burdens hereunder of Category II status shall apply to
all the card tables operated under such consolidated license (b) if the previous owners of the
Category I License retains majority ownership and control over the consolidated license, the
consolidated license shall retain Category I status and the requirements for conversion to a
Category II License under Section 2.3.2 of this Gaming Plan shall continue to apply.
2.7 License Fee.
2.7.1 In General. There shall be a license fee on any licensed cardroom within
the City in accordance with the terms of this Section 2.7. The license fee is for purposes of
generating revenues to the general fund of the City and not for purposes of regulation. The fee
shall be based upon the number of tables that are licensed by the City pursuant to the terms of
this Gaming Plan that are also permitted to be operated by the City at the location where the
license is being utilized pursuant to the City's land use laws and regulations. The fee shall be
based upon the maximum number of tables so licensed and permitted based upon the category
of license issued with respect thereto, regardless of the number of tables that may actually be
operated on any given day or the category of game conducted thereon. Notwithstanding the
foregoing, if the City approves new tables, but State approval is required before the operation of
any such new tables, the license fee set forth below in sections 2.7.2 through 2.7.6, inclusive,
with respect to such new tables, shall not go into effect until the date the required State
approval is obtained.
2.7.2 Amount of Fee. The license fee to be assessed and collected on each
licensed cardroom shall be the applicable "base rate" fee determined as follows:
2.7.2.1 Base Rate:
(a) Category I: Effective July 1, 2019 the base license fee for card
tables licensed under a single, non-consolidated Category I license shall be
$3,750 per card table per quarter.
(b) Category II: Effective July 1, 2019 through June 30, 2020, the base
license fee for each card table in a cardroom licensed to play Category II games under a Category
II license shall be $9,000 per table per annual quarter. Effective July 1, 2020 through June 30,
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Exhibit A
2021, the base license fee for each card table in a cardroom licensed to play Category II games
under a Category II license shall be $9,540. This rate shall apply to the maximum number of
tables licensed and approved to be operated at the cardroom location regardless of whether or
not such tables are actively being used, and regardless of whether or not Category II games are
actually being played at such tables.
(c) Percentage Payment Structure The base rate license fee for
operation of any tables licensed by the City to the cardroom as set forth in this Gaming Plan
may be converted to a license fee based upon a percentage of gross revenue generated by
Licensee from the play of any game or gaming activity ("Percentage Payment Structure"). Unless
otherwise specified in an amendment to the Gaming Plan, the timing of any conversion to and
the specific terms of any Percentage Payment Structure shall be set forth the agreement
between the parties required pursuant to Section 5.5 hereof.
2.7.3 Procedures for Payment of Fee.
2.7.3.1 Advance Payment. The license fee provided 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.
2.7.4 Audit rights. The City shall have the right to conduct an independent
audit of licensee's accounting records at any time upon three (3) days prior written notice to
licensee. The audit shall be performed by a party designated by the City, subject to the
reasonable approval of licensee. If the City elects to conduct such an audit, the licensee shall be
responsible for reimbursing City costs incurred in connection therewith. The licensee's
reimbursement obligation under this Section shall not exceed $10,000.00 per any twelve (12)
month period.
2.7.5 Fee 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.
2.7.6 Annual Increase in Base License Fee Rate. The base rate license fee
amounts set forth in Section 2.7 shall be increased by three percent (3%) per year. The first
increase shall take effect on July 1, 2021 and each subsequent increase shall take effect on each
July 1 thereafter. This annual base rate increase shall apply to all tables licensed and approved
in the previous year regardless of whether or not such tables were put into service that year.
Notwithstanding the above, if the Percentage Payment Structure becomes the basis to calculate
the base rate license fee, then the terms of increase in such fee shall be governed by the
agreement entered into pursuant to Section 5.5 hereof.
3. Operating Limitations and Conditions.
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
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Exhibit A
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 operation with such
approvals and permits shall operate in strict compliance with any and all terms and conditions
thereof. For example, in no event shall the cardroom exceed the number of players it is restricted
to in its conditional use permit based on parking limits or other imposed conditions.
3.2 Games Permitted.
3.2.1 Category I License: Subject to the terms and conditions of this Gaming
Plan and the Gaming Code, the holder of a Category I cardroom license shall be permitted to
operate a cardroom that conducts all card games that have been determined by the Office of
the Attorney General of the State of California ("Attorney General") to be within the permissible
subject of local licensing by California cities, excluding those games involving "backline betting."
The games permitted under this section shall be referred to herein from time to time as "Category
I Games."
3.2.2 Category II License: Subject to the terms and conditions of this Gaming
Plan and the Gaming Code, the holder of a Category II cardroom license shall be permitted to
operate a cardroom which conducts all card games permitted by a Category I license {as
described in Section 3.2. l, above,), plus those card games which involve backline betting. Such
games shall be referred to herein from time to time as "Category II Games." For purposes of this
Gaming Plan, back-line betting may be conducted, as that term is understood pursuant to
Business and Professions Code Section 19843. If the Office of the Attorney General authorizes
a new game that would fall within Category I but has not previously been played in the City, then
the Licensee will simultaneously send the chief of police a copy of the application request for
game approval submitted to the Office of the Attorney General. The chief of police shall provide
notice within 30 days whether it would like to further review the game before it is played at the
cardroom. The chief of police shall have the right to approve or disapprove any proposed new
games in his/her sole discretion, and such decision shall be final. If no notice is provided, it is
assumed that the game is approved to be played in the City.
3.3 Game Rules.
Except as specifically provided in this Gaming Plan, all rules for games played at a
cardroom shall be governed by State law and the California Bureau of Gambling Control (the
"CBGC"), the California Gambling Control Commission (the "CGCC"), or their successor entities
(collectively "State Agencies"). Rules for every game allowed shall be made readily available to
players and prospective players as follows: (1) in one or more binders within the cardroom; (2) on
the cardroom's official website (if any); and (3) in printed fliers. In addition, each table shall identify
the game currently being played using a prominently placed sign at said table. A generic game
name is permissible for the table sign (i.e., California Blackjack, Pai Gow Poker, Ultimate Texas
Hold'Em, etc.).
3.4 Hours and Days of Operation.
Licensed cardrooms may operate seven days per week, twenty-four hours per
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Exhibit A
day subject to any and all land use conditions imposed by the City with respect to a specific site
of operation.
3.5 Maximum Number of Tables.
Subject to such limitations as may be imposed by local land use conditions, to a
specific site of operation, the maximum number of tables that may be operated under a cardroom
license are as follows:
3.5.1 Category I - Non-Consolidated. The maximum number of tables that
may be operated under a single, non-consolidated Category I license shall be sixteen (16).
3.5.2 Category I - Consolidated. The maximum number of tables permitted
under a consolidated Category I license shall be twenty (20) during gaming operations.
3.5.3 Category II - Non-Consolidated. The maximum number of tables that
may be operated under a non-consolidated Category II license shall be sixteen (16).
3.5.4 Category II - Consolidated. The maximum number of tables that may be
operated under a consolidated Category II license shall be twenty (20). In no event shall more
than fifteen (15) of such twenty (20) tables be operated with "backline" betting games at one time.
3.6 Maximum Number of Players Per Table.
Subject to such limitations as may be imposed by local land use conditions, to a
specific site of operation, the maximum number of players permitted at any one cardroom table
are as follows
3.6.1 Category I Tables. No more than ten (10) players shall be permitted at
any one card table conducting Category I games. Only persons seated at the card table as
players shall be permitted to bet.
3.6.2 Category II Tables. No more than eight (8) seated players with no more
than two additional standing players per seat participating in "backline" betting behind the seated
player (for a total number of twenty (24) players (standing and sitting) per table) shall be
permitted at any one card table conducting Category II games.
3.7 Maximum Limits and Bets.
3.7.1 In General. Maximum limits and wagers shall be based on the approvals
from the State Agencies. Maximum limit and wager approvals will be provided to the Chief of
Police prior to implementation.
3.7.2 Adequate Financing on Hand/Payment Policy. At all times, licensee
must have sufficient proceeds to reimburse any and all demands made upon said licensee for
the payment of all monies that patrons have on deposit with that cardroom. In the alternative,
and subject to notification to the Chief of Police, said licensee may have a written policy for full
payment of all monies that patrons have on deposit with that cardroom to a cardroom patron
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Exhibit A
clearly posted in a place visible to cardroom patrons.
3.8 Maximum House Charges Per Hand - - Posting Required.
3.8.1. Approval. All house collection rates will be approved by the State
Agencies and notification will be given to the Chief of Police prior to being imposed.
3.8.2 Posting Required. A copy of all collection rate schedules shall be provided
to the Chief of Police. The collection rate in use shall be clearly posted at the table.
3.9 Work Permits and Identification Badges Required For Employees.
3.9.1 Work Permit Required. Unless other provided herein, prior to
commencing work at a cardroom, each proposed 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. Additionally, any employee of any
ancillary business (Third Party Providers of Proposition Player Services, massage therapists,
etc.) that is operating at the cardroom location must also obtain a work permit.
3.9.2 Temporary Probationary Work Permit. Temporary probationary work
permits may be summarily issued upon payment of the requisite application fee for food and
beverage servers, janitorial staff, and kitchen workers pending the issuance of a regular annual
work permit. Such temporary probationary work permits may be subject to immediate summary
revocation with or without cause by the chief of police and shall not be valid for more than thirty
{30) days and shall automatically expire upon issuance of the regular annual work permit or upon
denial of the regular annual work permit application by the chief of police. The fee for temporary
probationary work permit shall be non-refundable and in addition to the fee for the regular annual
work permit application.
3.9.3 Application Process. Each proposed 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; (bl the fingerprints of such Person; and {c) 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 including a criminal background check to be performed by the police
department at the applicant's expense. The work permit, when issued, shall be valid for one (1)
year. Any renewal must also be approved by the chief of police and will be subject to a criminal
background check to be performed by the chief of police at the applicant's expense. The chief of
police may deny the initial approval or renewal of a work permit if, in the chief of police's opinion,
{l) in the case of a proposed key employee the applicant therefore should not be permitted to act
as key employee or employee in lieu of management by the licensee of the cardroom; and (2) in
the case of a proposed employee the applicant therefore should not be permitted to be employed
in a cardroom.
3.9.4 Identification badges to be worn. Every employee shall, at all times
when present in such cardrooms, wear an identification badge containing such Person's
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Exhibit A
photograph, first name and the police department issued employee identification number. The
identification badges shall be worn at chest level.
3.9.5 Limitation of Discretion to Issue Work Permit. In addition to any other
restrictions provided by law, no work permit shall be issued to any other restrictions provided by
law, no work permit shall be issued to anyone who is disqualified from holding a state gambling
license, for any of the reasons specified in California Business and Professions Code Section
19850.
3.9.6 Denial of an application for a Work Permit. Any application for a work
permit shall be subject to objection by the State of California Bureau of Gambling Control
(hereafter Bureau). If the Bureau objects to the issuance of a work permit it shall be denied.
Such a denial may be reviewed in accordance with the Gambling Control Act (Business and
Professions Code Section 19801 et seq.).
3.9.7 Proposition Players.
3.9.7.1 A licensee shall use only employees or properly licensed
independent contractors as proposition players.
3.9.7.2 A licensee shall not allow, permit, or suffer more than four (4)
proposition players to play at a card table at any given time, subject to modification by the chief
of police in his/her sole discretion.
3.9.7.3 The licensee shall not provide any compensation, reward, credit,
chips, or any other thing of value or representation of value to an employee who acts as a
proposition player other than drop reimbursement, salary or wages earned for the time the
employee works as a proposition player. This prohibition does not prohibit a proposition player
from receiving the same employment benefits as apply to all other employees of the licensee;
provided that no employee or independent contractor shall be paid in chips.
3.9.7.4 A proposition player shall prominently display an identification
badge pursuant to Section 3.9.3 at all times while present on the cardroom premises.
3.10 Intoxicating Beverages.
3.10.1 Intoxicating Beverages Permitted. Upon application to and approval
by the chief of police, in his/her sole discretion and control and pursuant to a procedure to be
implemented and administered by the chief, alcoholic beverages may be served and consumed
in a cardroom from the hours of 6:00 AM. to 2:00 AM. At all times that alcoholic beverages are
served, food must also be made available and the cardroom shall comply with its ABC On-Site
General Sale (Type 47) Eating Place license, where 50 percent or more of all sales must be food.
The chief of police's decision concerning the consumption and service of intoxicating beverages
shall be final. Additionally, licensee shall comply with all applicable state and local laws, rules
and regulations, including the City's land use regulations, pertaining to the sale and service of
intoxicating beverages. All servers are required to have a valid Responsible Beverage Service
("RBS") certification from an ABC accredited RBS training provider.
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Exhibit A
3.10.2 Key Employee/employee Consumption Prohibited. The drinking of
any intoxicating beverage by any key employee, independent contractor or employee of a card
room while on duty is prohibited. The licensee of a cardroom shall take all necessary and
appropriate steps to assure compliance with this section.
3.10.3 Permitting Intoxicated Persons to Play in Games Prohibited. No
licensee, key employee, independent contractor or employee shall permit any Person to play
in any game or at any time which such Person is under the influence of an intoxicating
beverage, narcotic, or drug.
3.10.4 Permitting Intoxicated Persons on Premises Prohibited. No
licensee, key employee, independent contractor or employee shall permit any Person to enter
a gambling establishment at any time when such Person appears to be under the influence of
an intoxicating beverage, narcotic or drug.
3.11 Minors Prohibited from Patronage or Employment.
No person under twenty-one years of age shall be employed at a cardroom,
allowed to play games at a cardroom, or permitted in a cardroom area where games are being
played. Minors may be allowed in non-gaming areas of a cardroom (for example, in an
associated restaurant) but only with the prior approval of the chief of police, of a written plan
containing provisions that assure that no minor shall have no access to gaming areas or alcohol.
Given the high level of concern with public safety, the Police Chief's approval of any plan allowing
minor access to non-gaming areas shall be in his/her sole discretion and the Chief's decision
shall be final.
3.12 Signs to be Posted.
Licensee shall comply at all times with the sign requirements set forth in this
Gaming Plan including, without limitation, Sections3.3, and 3.8.2 hereof, and any and all other
signage or posting requirements contained in applicable federal, state or local laws, rules and
regulations.
3.13 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.
13
Exhibit A
3.14 Patron Safety and Security.
3.14.1 Each licensee shall submit a written patron safety and security plan,
designed to protect patrons and other persons who are lawfully on the premises of the
permitted cardroom, to the chief of police for his/her approval prior to opening for operations.
3.14.2 The chief of police, in his/her sole discretion and control, shall have the
right to require amendments to the patron safety and security plan that are, in his or her judgment,
reasonably necessary to protect the public peace, health, safety, and general welfare.
3.14.3 Licensee shall be responsible for payment to the City of all actual
administrative costs incurred by the City, including the cost of staff time, at the City's full cost
recovery rate, associated with the oversight of the patron safety and security plans required by
this section, including the administrative costs associated with the review and approval of a
patron safety and security plan or any amendments thereto which may be mandated by the chief
of police. The chief of police shall estimate the cost of City staff and other administrative costs in
connection with oversight of the patron safety and security plans and the licensee shall deposit
such amount at the time of submitting the patron safety and security plan to the chief of police. If
actual costs incurred exceed the initial deposit the chief of police may require the applicant to
make additional deposits to offset costs incurred or to be incurred by the City. If the amount
estimated is in excess of the cost incurred, the difference will be refunded to the applicant at the
end of the City's review.
3.15 Crime Reporting Requirement.
3.15.1 Every licensee, key employee, employee, or independent contractor of
a cardroom shall immediately report to the Chula Vista Police Department any crime committed
on the cardroom premises.
3.15.2 Each licensee shall maintain a chronological criminal activity log and
such other reports as the chief of police may determine are needed in order to effectively assist
the Chula Vista Police Department to carry out its law enforcement function and protect the public
health, safety, and welfare.
3.15.3 It shall be unlawful for a licensee, manager, employee or independent
contractor of a cardroom to disable any 911 access on any public telephone on the cardroom
premises.
3.16 Licenses or Key Employee on Premises.
A cardroom shall have on the premises, at all times the cardroom is open to the
public, the licensee or a key employee. A "key employee" for purposes of this section is defined
as an employee who shall have access to all cardroom premises for purposes of inspection or
for purposes of compliance with any provision of this Gaming Plan and who shall have the
responsibility and authority to ensure immediate compliance with the Gaming Plan and all state
laws and regulations pertaining to gaming. Further each cardroom licensee shall identify in
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Exhibit A
writing the name, address, and telephone number of each key employee, and each key
employee shall wear an identification badge designating the employee as a key employee.
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 six-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.
4.2.2 Imposition of Fine Not Election of Remedies. The pursuit of monetary
fines against a licensee or the receipt of payment therefore 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 operating
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.
15
Exhibit A
(c) Allowing persons other than those named in the application on file
with the City, or otherwise previously approved by the City, to hold a financial interest in, or have
direct management authority over, 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 fee 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.
(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 Inspection Rights.
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. This inspection right is in addition to the audit rights enumerated in Section
2.7.4 herein.
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 Headings.
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
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Exhibit A
of the provisions of any section hereof.
5.3 Gaming Plan Amendments.
5.3.1 City Council Approval Required. 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, provided, however, different terms of operation may be provided in the agreement
required by Section 5.5 hereof, below.
5.3.2 Full Cost Recovery for Administrative Costs Associated with
modifications to Gaming Plan. Any Person requesting any modification to the Gaming Plan
shall be responsible for payment to the City of all actual administrative costs incurred by the
City including the cost of staff time, at the City's full cost recovery rate, associated with the
request for modification of the Gaming Plan. The chief of police shall estimate the cost of City
staff and other administrative costs in connection with the requested modification and the
Person shall deposit such amount at the time of submitting his/her request for modification to
the Gaming Plan. If actual costs incurred exceed the initial deposit the chief of police may
require the applicant to make additional deposits to offset costs incurred or to be incurred by
the City. If the amount estimated is in excess of the cost incurred, the difference will be
refunded to the applicant at the end of the City's review.
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 (bl 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 licensee 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, for the term specified therein, 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 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. In consideration for
licensee's commitments thereunder, such agreement may also provide for a specified time
period for card room operations without being subject to City imposed changes to the Gaming
Plan, all as more specifically provided therein.
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