Loading...
HomeMy WebLinkAboutReso 49-1995RESOLUTION NO. 49-95 CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION CALLING A SPECIAL MUNICIPAL ELECTION TO BE HELD ON SEPTEMBER 12, 1995 FOR THE PURPOSE OF SUBMITTING TO THE ELECTORS A BALLOT MEASURE REGARDING WHETHER GENERAL PLAN POLICY 47, THE EAST OF 101 PLAN, AND TITLE 20 OF THE MUNICIPAL CODE SHOULD BE AMENDED TO PERMIT A NEW CARD CLUB AND COMMERCIAL DEVELOPMENT IN AN AREA EAST OF HIGHWAY 101 AND NORTH OF OYSTER POINT BOULEVARD AT OR NEAR THE SHEARWATER/U.S. STEEL SITE IN SOUTH SAN FRANCISCO; WHETHER CHAPTER 6.36 OF THE SOUTH SAN FRANCISCO MUNICIPAL CODE RELATED TO CARD CLUBS SHOULD BE AMENDED AS PROPOSED; ESTABLISHING HOURS DURINGWHICH POLLING PLACES SHALL BE OPEN; DIRECTING THAT NOTICE OF SAID ELECTION BE GIVEN; REQUESTING THE COUNTY CLERK TO RENDER ELECTION SERVICES; AND AUTHORIZING THE FILING OF AN IMPARTIAL ANALYSIS WHEREAS, the City Council of the City of South San Francisco has called a special election to submit to the electors a ballot measure regarding whether the General Plan and Zoning code should be amended to permit a new card club and commercial development in an area east of Highway 101 and north of Oyster Point Boulevard at or near the Shearwater/U.S. Steel site in South San Francisco and whether Chapter 6.36 of the Municipal Code related to card clubs should be amended as proposed. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco as follows: Section 1. Pursuant to the Elections Code of the State of California, a Special Municipal Election is hereby called and ordered to be held in the City of South San Francisco on September 12, 1995 for the purpose of submitting to qualified electors of the City of South San Francisco a ballot measure regarding whether the General Plan and Zoning code should be amended to permit a new card club and commercial development in an area east of Highway 101 and north of Oyster Point Boulevard at or near the Shearwater/U.S. Steel site in South San Francisco as described in Exhibit A, and whether Chapter 6.36 of the Municipal Code related to card clubs should be amended as proposed. Section 2. The ballot measure shall read as follows: "CITY OF SOUTH SAN FRANCISCO MEASURE The People of the City of South San Francisco do resolve and ordain as follows: RECITALS 1. Whereas, General Plan Policy 47, as adopted by the city Council in 1986, requires approval by a majority of the registered voters of South San Francisco prior to approving any new cardrooms in South San Francisco or any relocation or expansion of the existing nonconforming cardrooms located in South San Francisco; and 2. Whereas, the City of South San Francisco is authorized to prohibit cardrooms within the city pursuant to Business and Professions Code section 19801; and 3. Whereas, the City of South San Francisco hereby finds that public health, safety and welfare require that proper land use site selection and regulatory control are necessary in the event any new card club/gaming facility is approved; and 4. Whereas, the City of South San Francisco hereby finds that to minimize disruption to existing neighborhoods and established commercial areas, such proper land use control requires that any new card club/gaming facility be located (1) outside of any residential districts, (2) outside of all areas within the City west of the U.S. Highway 101, and (3) adjacent to freeway access; and 5. Whereas, based on the factors set forth in Recitals 1 through 4 above, the City of South San Francisco hereby finds that a new cardroom/gaming club may be allowed at or near the "Shearwater/U.S. Steel" site which is shown on Exhibit A hereto and is located north of Oyster Point Boulevard and east of Highway 101; and 6. Whereas, the City of South San Francisco has determined that any other new card club/gaming facility approval should only occur upon approval of a majority of the voters of the city of South San Francisco; and 7. Whereas, pursuant to state law, the City of South San Francisco may prohibit and/or regulate all forms of gambling permissible at the local level, including both cardrooms and bingo games; and 8. Whereas, implementation of the items set forth in sections 1 through 6 above require amendments to the City's General Plan and Zoning Ordinance; and 9. Whereas, approval of this initiative shall authorize the City Council and/or Redevelopment Agency to approve a card club in which games permitted by law, such as draw poker, low- ball poker, and panguingue (pan) are played, may be allowed wherein such facility will be located in an area east of Highway 101 and north of Oyster Point Boulevard at or near the Shearwater/U.S. Steel site in South San Francisco; I. NOW, THEREFORE, the People of South San Francisco do hereby amend the City of South San Francisco General Plan, including the East of 101 component thereof as follows: 1. General Plan Policy 47 is hereby amended to read as follows: "Except as provided herein, cardrooms/gaming clubs are not permitted in any zone district in South San Francisco, unless a majority of electors voting thereon affirmatively approve a measure permitting legal gambling within that zone district. Cardrooms which presently exist in the City should be phased out of existence. Except as provided herein, without the approval of the electors set forth above, no new cardrooms/gaming clubs should be allowed in the City, nor should the existing nonconforming cardrooms be allowed to expand in area or in the number of tables operated or to relocate to another area of the City. On the basis of (1) the unique physical location of the "Shearwater/U.S. Steel" site area, described in Exhibit A, in that it is physically separated from residential areas of the City by U.S. Highway 101 and that it provides immediate freeway access via the Oyster Point interchange, and (2) that portions of the site will require extensive remedial actions, given the presence of contaminants, the City or Redevelopment Agency may approve a cardroom/gaming facility at or near the 'Shearwater/U.S. Steel' site." 2. Page 70 of the East of 101 Plan, which serves as the General Plan for the East of 101 land area, is hereby amended to add Section E titled "Shearwater Area Site Development" to read as follows: "In addition to the land use policies contained herein related to Planned Commercial development in general, the permissible land uses at the Shearwater/U.S. Steel site area, as defined in Exhibit A, may include recreational uses, including one card club/gaming facility of not more than one hundred fifty (150) tables. Said facility may only be approved by the City Council or Redevelopment Agency as a conditional use or through an owner participation agreement and then only as part of a Planned Commercial development of the entire Shearwater site. Said approvals may only occur following environmental review in compliance with the California Environmental Quality Act." II. The People further ordain that subsection (h) of section 20.24.070 of Chapter 20.24 of Title 20 of the South San Francisco Municipal Code is hereby added to read as follows: "Notwithstanding any other section of Chapter 20.24, the City Council or Redevelopment Agency may approve a card room/gaming facility in an area east of Highway 101 and north of Oyster Point Boulevard at or near the Shearwater/U.S. Steel site in South San Francisco provided that such approval may only occur through issuance of a conditional use permit or owner participation agreement. The City Council or Redevelopment Agency may impose conditions on such approval." III. The general plan amendments and zoning code amendment set forth herein may only be amended by vote of the electorate. IV. The People further ordain that Chapter 6.36 of the South San Francisco Municipal Code is hereby amended, in its entirety to read as set forth in Attachment A hereto. If adopted, the City Council shall have the authority to amend all portions of Chapter 6.36. Section 3. Hours during which the polls shall be open shall be from 7 a.m. to 8 p.m. Section 4. Notice of the time and place of holding said election is hereby given and the City Clerk of the City of South San Francisco is hereby directed to publish, post, and give such further additional notice of said election as prescribed by the Elections Code and Government Code of the State of California. Section 5. The Board of Supervisors of the County of San Mateo is requested to permit the County Clerk to render election services requested by the City, for which services the City agrees to pay, and the County Clerk is authorized and delegated to perform these duties relating to the conduct of said Special Municipal Election. Section 6. The City Council instructs the City Clerk to transmit the ballot measure to the city Attorney along with a request that an impartial analysis be prepared for the ballot measure. Section 7. The City Clerk is hereby directed to file with the Board of Supervisors a certified copy of this resolution. Section 8. The ballot question shall read as follows: "SHALL THE SOUTH SAN FRANCISCO GENERAL PLAN ANDMUNICIPAL CODE BE AMENDED AS PROPOSED TO ALLOW A CARD CLUB IN THE AREA OF SOUTH SAN FRANCISCO EAST OF HIGHWAY 101 AND NORTH OF OYSTER POINT BOULEVARD AT OR NEAR THE SHEARWATER/U.S. STEEL SITE, AT WHICH GAMES PERMITTED BY LAW SUCH AS DRAW-POKER, LOW-BALL POKER AND PANGUINGUE (PAN) ARE PLAYED AND TO INCREASE REGULATION OF CARD CLUBS?" I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a requ]ar meeting held on the 14th day of June , 1995, by the following vote: AYES: Councilmembers Jack Dra.qo, Joseph A. Fernekes, Roberta Cerri Teqlia and Mayor Robert Yee NOES: None ABSTAIN: Councilmember John R. Penna ABSENT: None City Clerk \405\re~o\NBCGPSPC.607 Area effected by proposed General Plan amendment EXHIBIT A RESOLUTION NO. 49-95 ATTACHMENT A ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 6.36 OF THE SOUTH SAN FRANCISCO MUNICIPAL CODE RELATED TO REGULATIONS FOR CARD CLUBS The City Council of the City of South San Francisco does ordain as follows: Section 1 Chapter 6.36 of the South San Francisco Municipal Code is hereby amended to read: Chapter 6.36 CARD CLUBS REGULATED Sections: 6.36.010 6.36.020 6.36.030 6.36.040 6.36.050 6.36.060 6.36.070 6.36.080 6.36.090 6.36.100 6.36.105 6.36.110 6.36.120 6.36.130 6.36.135 6.36.140 6.36.150 6.36.160 6.36.170 6.36.180 Findings and Purpose Definitions Confidential Disclosure Unlawful Permits and Licenses Required Limitation on Number of Licenses and Number of Tables License and Permit Application Procedure Card Club License Application Building Owner, Pointholder and Key Management Employee Permit Applications Card Club Operations Certificate Application Application Fees Special Assignment Fees Application Review and Approval Procedures Card Club License, Pointholder Permit and Key Management Employee Permit Approval Process Card Club Operations Certificate Approval Process Amendment of Card Club Operations Certificate Issuance of Permits or Licenses Expiration of Permits and Licenses Renewal of Card Club Licenses Transfer and Assignment of Licenses Transfer of Interest of Pointholder in Card Club 6.36.190 6.36.200 6.36.210 6.36.220 6.36.230 6.36.240 6.36.250 6.36.260 6.36.270 6.36.280 6.36.290 6.36.300 6.36.310 6.36.320 6.36.330 6.36.340 6.36.345 6.36.350 6.36.360 6.36.370 6.36.380 6.36.390 6.36.400 6.36.410 6.36.420 6.36.430 Investigations - Updating Suspension and Revocation of Card Club Permits and Licenses City Manager/Chief of Police Subpoena Authority Procedure for Card Club Permits and Licenses Revocation or Suspension No Application Upon Revocation Registration, Fingerprinting and Photographing of Employees of Licensed Card Clubs Employee Registration/I.D. Denial of Application Employee Registration/I.D. Expiration and Renewal Employee Registration/I.D. Suspension and Revocation and Appeals Employee Registration/I.D. Denial Appeals Annual License Taxes Gross Revenue License Taxes Audit/Reporting Required Records, Reports and Supplemental Information Access to Records and Facilities Card Club Operational and Games Rules and Regulations Seat Rental and Drop Charge Fees Card Club Site Security Violations Changes in Rules and Regulations Emergencies Rights of Licensee and Card Club Administration of Chapter by City Manager Unlawful Acts Penalties Preexisting Card Clubs 6.36.010 FINDINGS AND PURPOSE (A) The operation of card clubs within the State of California in strict compliance with its gaming laws has been demonstrated to be a successful means of generating revenues for local governments. It is found and determined that, with the City's present population, one gaming club, in which only those games permitted under the laws of California are played, if authorized by the City Council, shall be allowed in the city of South San Francisco for the purpose of creating new jobs and new revenue for the South San Francisco community. (B) It is found that the public health, safety and welfare require the establishment of regulations pursuant to, and in conformity with, the State Gaming Registration Act. The City finds it necessary to regulate, among other things: (1) The persons who will own, operate or be employed in card clubs. (2) The persons who will own the building in which the card club will be located and who will operate non-gaming activities at the site. (3) The number and size of card clubs in the City. (4) The operation of card clubs in the City. (5) The issuance of permits and licenses, including limitations on transfer and assignment for card clubs. (C) There are.two card clubs currently in existence in South San Francisco and these card clubs have previously been and continue to be identified as preexisting legal nonconforming uses. These card clubs were previously regulated pursuant to the former Chapter 6.36. It is the intent of the city Council that this chapter shall apply to and regulate the two existing card clubs as well as one additional card club that may be approved pursuant to the provisions of this Chapter. However, while the preexisting lawful nonconforming clubs shall be subject to the regulatory provisions hereunder, nothing in this ordinance shall be interpreted to allow the pre-existing lawful non-conforming card clubs to expand the scope of their existing use beyond their current non-conforming status. (D) The card club licensee(s) and building owner permittee(s) should give preferential employment consideration to qualified South San Francisco residents who demonstrate requisite skills and experience. 6.36.020 DEFINITIONS For the purpose of this chapter, certain words and phrases used herein are defined as follows: (1) "Applicant" shall mean every person who applies for a license to operate a card club and every individual who requests a permit as provided for by this chapter. (1.5) "Building Owner" shall mean the person or persons who own[s] the building in which the Card Club is operated and who may, among other things, Lease the building to the Card Club operator and who may also operate or conduct ancillary services such as food and beverage sales, retail sales, entertainment activities, and personal services. (2) "Card Club" shall mean a business, activity or enterprise conducting card games, as defined by this section, and licensed under the provisions of this article. (3) "Card Club Operations Certificate" shall mean authorization for a person, licensed to operate a card club, whose pointholders and key management employees have been issued permits, to commence operation of card games at a designated location within a specific building, such operation having been reviewed and approved as being in compliance with parking, zoning, security, fire and various other local regulations. (4) "Games" shall mean all forms of gaming authorized by the State of California including those games not prohibited by the Penal Code, Sections 319 et seq. and 330 et seq, and which are permitted by resolution of the City Council and the terms of the card club operations certificate. (5) "Card Playing Area" shall mean the physical location within the card club premises where the playing of card games is permitted. (6) "Commence" shall mean and include commence, begin, initiate, start, open and establish. (7) "Conduct" shall mean and include conduct, transact, maintain, prosecute, practice, manage, operate and carry on. (8) "Employee" shall mean every individual, employed either as an agent, employee, or otherwise, of the licensee, as defined by this section, or under the direction of the licensee of any card club, with or without compensation. (9) "Gross Revenue" shall mean and include the total amounts received or receivable for seat rental fees, admission fees, administrative portions of tournament entry fees, table revenues and any and all other revenues derived from gaming activities conducted on or within the premises. (10) "Key Management Employee" shall mean every individual, whether or not such individual is a named officer or director of the licensee, with the power to direct operations, or direct supervisory and general employees, of a card club, any individual with the actual or apparent authority to direct the counting of revenue generated by the club, including any person responsible for managing any aspect of the gaming activities conducted at the licensee, whether or not employed by the licensee, and every individual, whether or not such individual is a named officer or director of the Building Owner, with the power to direct operations, or direct supervisory and general employees of the Building Owner. The term ~key management employee" includes without limitation, those individuals who fill such positions as shall be designated by the City Manager as key employees. (11) "Lease" means any formal or informal, written or oral contract or understanding or arrangement whereby any person operating a card club obtains the use or possession of any property, real or personal, to be used, occupied, or possessed in connection with the conduct of games at any card club. The term ~lease" includes, without limitation, payments to an affiliated person under'a real property lease, a personal property lease, an unsecured note, a deed of trust, a mortgage, or a trust indenture. (12) "Lessor" means any person who leases any property, real or personal, to a person operating a card club for use in connection with the conduct of games or related activities. (13) "License" shall mean a grant from the City Council authorizing a ~person" as described by this chapter to operate a card club within the City. (14) "Licensee" means the ~person" as described by this chapter, to whom a card club license has been issued pursuant to this chapter. (15) "Owner" or "Pointholder" shall mean any person having an interest, legal or equitable, in a card club license or card club operations permit, or in the ownership of a card club, or in the division of profits or revenue of a card club, whether directly, or indirectly through a partnership, joint venture, 5 closely held corporation or non-publicly traded corporation, or an owner or some one or entity that controls at least'ten (10) percent of stock of a publicly held corporation. (16) "Permit" shall mean a grant of permission from the City CounCil to a person allowed by this chapter, allowing such person to become a pointholder in a card club or a key management employee of a card club licensee within the City. Two types of permits are provided for under this chapter, pointholder permits and key management employee permits. (17) "Person" shall mean and include any individual, partnership, corporation or combination thereof. (18) "Point" shall mean any interest whatever, or at all, in the ownership, division of profits, or revenue of a card club, whether legal, equitable, or of whatever kind of character. (19) ."Premises" shall mean land together with all buildings, improvements and personal property located thereon and related to card club use. (20) "Proposition Player" shall mean an employee engaged or paid by the licensee for the purpose of starting and/or maintaining a sufficient number'of players' in a card game. (21) "Purport to commence" and "Purport to conduct" shall mean and include any showing, representation, indication or action which: (a) by means of sign, advertisement, or advertising matter, whether in, upon or about any premises or otherwise; or premises; or (b) by the appearance or arrangement of any (c) by acts or statements of any person, or by the agents, servants or employees of any person, indicates, suggests, holds out, or represents that any person is, would be, or appears to be conducting or in a position to conduct any business referred to in this chapter with the City. 6.36.030 CONFIDENTIAL DISCLOSURE UNLAWFUL Except as required by the California Public Records Act, it shall be unlawful for any individual to disclose to any 6 individual, news organization or any other entity, any data or information required under the provisions of this chapter to be kept and maintained confidential. 6.36.040 PERMITS AND LICENSES REOUIRED (A) It is the declared policy of the City Council that pointholders, building owners and key management employees apply for and be issued permits after an individual personal background investigation, and that such persons be supervised so as to better protect the public health, safety, morals, good order and public welfare. Except as provided herein below with respect to a card club license, no applicant, person, licensee, or permittee 'shall acquire a vested right in any permit issued, registration, finding of suitability, or approval granted by the City Council or any other action of the City Council at any stage of the proceedings. (B) It shall be unlawful for any person or other entity to commence or purport to commence , within the City any business, activity, enterprise, undertaking, or place where tables or other units of furniture are used directly or indirectly for playing card games for the use of which a fee, commission, or compensation is directly or indirectly charged, accepted or received from players or participants in any such playing of card games until such person or other entity shall have first obtained a card club license and until such licensee has secured a card club operations certificate for the operation of such card games at a specific location, within a specific building under and in compliance with the provisions of this chapter. (C) Any applicant hereunder is seeking the granting of a privilege. Therefore, the burden of proving qualifications to receive such a permit or license is at all times on the applicant. An applicant must accept all risks of adverse public notice, publicity, embarrassment, criticism, financial loss, or all other actions and consequences which may result from activities with respect to reviewing, processing, approving or disapproving any application. A waiver of any claims for damages against the City or its agent resulting therefrom shall be presumed upon the filing of an application. (D) Any applicant hereunder may claim any privilege afforded by the Constitution of the United States in refusing to answer questions by the City Council. However, a claim of privilege with respect to any testimony, evidence, or requested information pertaining to an application may constitute sufficient grounds for denial or revocation of any such license or permit. 6.36.050 LIMITATION ON NUMBER OF LICENSES AND NUMBER OF TABLES (A) With the exception of licenses that will be issued to the two preexisting legal nonconforming Card Clubs, at no time shall there be more than one additional card club license in the City at any one time. The location of additional card club shall be established through the land use approval process. This section shall not be interpreted to authorize any form of physical or use expansion of the two preexisting legal nonconforming Card Clubs. There shall be no more than 150 card playing tables in the City at any one time. The number of tables for a particular applicant shall be determined during the planning and licensing approval process. Licensees shall obtain approval from the City Council prior to expanding the number of tables allowed by their initial and/or current license. (B) Multiple Applications. In the event that there are less card club permits available than there are applications, the permit shall be granted to the qualified applicant whom the City Council, in its sole discretion, determines best meets the following criteria: (1) Least disruptive location (2) Best program for policing the operation (3) Greatest revenue potential for the City (4) applicant Greatest experience and financial ability of (5) Best potential for a quality operation (6) Any other considerations that will protect the public interest In reaching its determination the City Council may consider any staff recommendations, and the determination of the City Council shall be final. 6.36.060 LICENSE AND PERMIT APPLICATION PROCEDURE Any person desiring or proposing to commence or conduct any business, activity, enterprise or undertaking pertaining to or involving a card club, shall file an application with the City Clerk using such forms as are provided by the City. Each application shall contain a statement as follows: ~The 8 undersigned applicant(s) declares under penalty of perjury that the foregoing is true and correct under the laws of the State of California and of the United States. 6.36.070 CARD CLUB LICENSE APPLICATION (A) City officials and employees and members of their immediate families shall not be eligible to apply for card club licenses or permits hereunder or otherwise apply for registration as a card club employee. (B) In addition to other information as may be required by the application forms for a card club license, the applicant for a license shall provide the following information: (1) The date of the application. (2) The true name of the applicant. (3) The status of the applicant as being'an individual a sole proprietorship, a partnership or a corporation. (4) If the applicant is an individual, the residence and business address and personal history record of such applicant, specifically including any criminal arrest and conviction record, business and employment history for a period of' ten years before the date of the application. (5) If the applicant is other than an individual, the name, residence and business address of each of the copartners or stockholders who qualify as pointholders and the name, residence and business address of each of the officers and directors of the entity. (6) An application, as described in Section 6.36.080 for a pointholder's permit, including a personal history record, for every pointholder who has, or is proposed to have, a financial interest, direct or remote, in the Proposed card club. (7) An application, as described in Section 6.36.080 for a key management employee's permit, including a personal history record, for each individual who is or is proposed to be a key management employee of the proposed card club. (8) An application should include copies of the Gaming Registration application previously submitted to the State on all qualifying persons, unless waived by the Chief of Police. (9) A development concept including floor plans, site plan, schematics and renderings or as detailed information as is available. 9 (10) A statement of the type and nature of the games proposed to be played, and the rules and fee schedules for such games. (11) The number of tables or other units to be placed, employed or used. (12) A description of any other business conducted or proposed to be conducted on the premises. (13) A financial plan and source of funding for the development including projected development cost. (14) A statement of the applicant's experience in the operation and management of card clubs or other lawful gambling or other relevant activities. (15) A one year cash flow projection, which shall be a confidential document and not open to public inspection. (16) A statement that such building will conform to all the laws of the State and the City for occupancies of the nature proposed. (17) A complete description and layout of all security measures proposed in as great a detail as available which shall be a confidential document to be reviewed and approved by the Police Department and not open to public inspection. (18) Each application for a license shall include the following: (a) A statement that the applicant understands that the application shall be considered only after a full background investigation and report has been made by such members of the City staff as are designated by the City Manager. (b) A statement that the applicant understands and agrees that any business or activity conducted or operated under any license or permit issued under such application shall be operated in full conformity with all the laws of the State and the laws and regulations of the City applicable thereto, and that any violation of any such laws or regulations in such place of business, or in regulations in such place of business, or in connection therewith, may render any license or permit therefor subject to immediate suspension or revocation. (c) A statement that the applicant has read the provisions of this chapter and particularly the provisions of this section and understands the same and agrees to abide by all rules and regulations contained in this chapter. 10 (d) A balance sheet and income statement prepared in accordance with generally accepted accounting principles. The financial statements required by this subsection shall.be confidential documents and shall not be open to public inspection. Documents shall be available only to the city Council and those officials having direct jurisdiction involving the provisions of this chapter and to any court of competent jurisdiction where any matter relating thereto may be actually pending. The city Manager shall have sole discretion to determine whether the information submitted fulfills the requirements set forth on the application form and in items 1 through 18 herein. 6.36.080 BUILDING OWNER, POINTHOLDER AND KEY MANAGEMENT EMPLOYEE PERMIT APPLICATIONS (A) Applications Filed with License Applications (1) The initial applications for the building owners, the pointholders and key management employees shall be submitted as part of the application for a card club license. (2) Each permit applicant shall be responsible for providing complete and accurate information and for signing the permit application. However, it shall be the responsibility of the card club license applicant (or licensee for subsequent applications) to submit the completed application and pay any application fees. (3) In addition to such other information as may be required by the application forms for a permit, the permit applicant shall complete and provide the information specified in section 6.36.070 along with a balance sheet and income statement prepared in accordance with generally accepted accounting principles. The City Manager shall have sole discretion to determine whether the information submitted fulfills the requirements set forth on the application form and in this section. (4) Concurrently with the filing of their applications, the building owner, the pointholder and key management employee permit applicants shall be finger printed and photographed by the South San Francisco Police Department. Permit applicants shall authorize the City to obtain any available criminal arrest and conviction offender record information relating to applicant and shall further authorize the updating of that information on an annual basis if a license or permit is granted. (B) New and Additional Permit Applications 11 (1) Applications for building owner and pointholder permits which do not accompany the application for a card club license as provided by Section 6.36.070 shall conform in all respects with the requirements set forth in Section 6.36.180. (2) Applications for key management employee permits which do not accompany the application for a card club license as provided by Section 6.36.070 shall be completed not less than ten (10) days before the key management employee is scheduled to begin work for the licensee. In addition to other information as may be required by the application forms, the applicant for a permit shall provide the information required by section 6.36.080(A) (3). The City Manager shall have sole discretion to determine whether the information submitted fulfills the requirements set forth on the application form and in this section. (C) Investigations Required (1) Whenever an application pursuant to the provisions of this section has been filed with the City Clerk for a permit pursuant to the provisions of this section, and the fees required by Section 6.36.100 have been paid, the City Clerk shall immediately refer such application, or a true copy thereof, to the City Manager, who shall promptly and diligently cause a full and complete investigation of the applicant to be made, including the following: (a) Concurrently with the filing of an application, each applicant shall be finger printed and photographed by the South San Francisco Police Department and shall authorize the City to obtain any available criminal arrest and conviction offender record information relating to applicant and shall further authorize the updating of that information on an annual basis if the application is approved. (b) A background check including an analysis of the financial information supplied by the applicant pursuant to Section 6.36.080(B). (2) It shall be the responsibility and duty of the City Manager to supervise and direct the Chief of Police to establish the necessary procedures to administer the provisions of this subsection. The information received by the Chief of Police pursuant to the provisions of this subsection shall be treated as confidential. (D) Conditional Permits In recognition of the delays which may be encountered in obtaining all information on each applicant under this section, the City Manager is authorized to issue provisional 12 permits which shall be valid for a period not to exceed six months. Such conditional permits shall include such terms and conditions as may be determined by the City Manager. 6.36.090 CARD CLUB OPERATIONS CERTIFICATE APPLICATION (A) The card club operations certificate shall be issued only to the licensee. (B) The card club operations certificate application shall be submitted to the City Clerk. In addition to other required information as may be set forth on application forms provided by the City, the application shall include the following: (1) Detailed floor plans of the interior of the proposed card club facility specifying at a minimum: (a) the location of all card playing areas (b) the manner in which the card playing area(s) shall be separated from other areas (c) the location of any and all other proposed businesses and facilities within the premises. (2) Detailed plans of the parking facilities including a lighting and security, plan. (3) A detailed statement of all proposed security measures (both physical and operational) for review and approval by the Police Department. (4) A detailed statement of all plans, both physical and operational, for the handling of money, including but not limited to provisions, if applicable, for: (a) players banks (limited to cash only) (b) counterfeit chips purchase of chips and protection against (c) check-cashing procedures (d) procedures for bringing money to or removing money from the premises (e) procedures for determining and depositing daily gross receipts. (5) An independent evaluation of the internal accounting and administrative control system proposed to be used by applicant. 13 (C) Ail information provided regarding security measures, internal controls, or provisions relating to the handling of cash, chips and cards shall be deemed confidential and shall not be available for public inspection. 6.36.~00 APPLICATION FEES (A) Each application for any license or permit shall be subject to fees and deposits payable to the City as follows: (1) An initial license application fee shall be paid to the City for the payment of the costs of the initial background investigation. The fee shall be established by resolution of the City Council. (2) The license application fee provided for in Section 6.35.100(A) (1) above shall cover the investigation costs of the license application and a combined total of up to twenty (20) pointholder and key management employee permit applications. If a license applicant has pointholders and key management employees exceeding twenty (20) in number, an additional fee per pointholder or key management employee exceeding the twenty (20) shall be paid to the City as payment of the costs of investigation. This additional fee per pointholder or key management employee ~hall be established by resolution of the City Council. (3) A building owner application fee shall be paid to the City for the payment of the costs of the initial background investigation. The fee shall be established by resolution of the City Council. (4) No additional fee shall be required for the card club operations certificate. (5) Additional fees are hereby imposed to reimburse the City the costs of employee background investigations, background checks for pointholder transfers, and renewal license fees. These fees shall be established by resolution of the City Council. 6.36.105 SPECIAL ASSIGNMENT FEES In addition to the fees specified in Sections 6.36.100, the licensee shall reimburse the City for any reasonable and necessary expenses over and above such fees for special assignment services related to operation of the card club. Special assignment fees shall be based on actual costs to the City to provide city services for atypical events and occurrences such as special event traffic and crowd control, placement of barricades and detours, etc. 14 6.36.110 APPLICATION REVIEW AND APPROVAL PROCEDURES Whenever an application for a permit or license has been filed and all application and permit fees set forth in Section 6.36.100 are deposited with the Finance Director, the City Clerk shall immediately refer such application to the City Manager and the Chief of Police. 6.36.120 CARD CLUB LICENSE, BUILDING OWNER, POINTHOLDER, AND KEY MANAGEMENT EMPLOYEE PERMIT APPROVAL PROCESS (A) Investigation and Report (1) Upon receipt of an application for a license, the City Manager shall cause an investigation to be made covering all matters relevant to the proposed activity of the applicant. Such matters may include, but are not limited to, the following: (a) Identity, character and background of the applicant; (b) Interior floor plan of buildings and site plan as to parking, traffic movement and aesthetics; (c) Compliance with the City's General Plan, zoning, security and environmental requirements; (d) Type of tables to be used and their proposed locations, area where food and beverages are proposed to be served and means for excluding persons under 21 years of age from card playing areas; (e) Type and degree of security personnel and facilities to be provided; (f) The financial stability of the pointholders involved in the application and the financial ability of the applicant to comply with the conditions and requirements of the City in the event the application is approved; (2) Upon receipt of an application for a permit, the City Manager shall cause an investigation to be made covering all matters relevant to the proposed activity of the applicant. Such matters may include, but are not limited to, the identity, character and background of the applicant. (3) The investigation of the application shall be completed as soon as practicable after a complete application is received. Following the investigation, the completed report of the investigation together with the City Manager's findings and recommendations shall be forwarded to the City Council. The City Council shall not aonsider any application for a license or 15 permits until the City Manager's findings and recommendations are forwarded for review. (B) City Council Actions Upon receiving the complete card club application and the City Manager's findings and recommendations and evidence that all other necessary permits or approvals that can be obtained have been obtained, the City Council shall make a determination on the permit application within forty-five (45) days. (C) City Council Determination (1) The City Council, by resolution, shall either grant, conditionally grant, or deny the application. If the City Council denies the application, the resolution shall include findings in support of the denial. All such resolutions shall be public records. The City Council may tentatively approve the application of a license applicant, but, disapprove the application for a permit of One or more of the pointholders or key management employees. In such cases the City Council may grant the license applied for subject to the condition that any pointholder or key management employee disapproved of be removed as an individual having any involvement with, or interest or control in the card club. Compliance with the removal condition shall be monitored, reviewed and approved of by the City Manager prior to final issuance of the license. (2) The action of the City Council in accordance with this Ordinance shall be final. (D) Requirements for Issuance of a License (1) In the event a completed application for a license is presented to the City Council, and the fees required herein have been paid, and the investigations and reports required under the provisions of this chapter have been duly completed, the city Council shall have jurisdiction to consider such application. The City Council shall, at minimum, consider the following factors during its consideration of the application for a license: (a) The effect that granting the license may have on business, employment and economics in the City; (b) The financial stability of the building owner and the applicants, including all pointholders; (c) The business and financial history of the key management employees of the enterprise or other manager or active operating heads, including his or her personal history, moral background, reputation and character. 16 (d) Whether issuance of the license and subsequent operation will be detrimental to the public health, safety and welfare of the citizens of South San Francisco. (e) considerations. Any other relevant data, facts or (E) Grounds for Denial (1) The City Council may, in its discretion, deny or condition a license or permit application for any of the following reasons, without being limited thereto, or for any other reason consistent with the general policy of this chapter: (a) Conviction of any crime punishable as a felony or of any crime of violence, any crime involving fraud, gambling, loan sharking, bookmaking, thievery, bunco, moral turpitude, or any crime involving evasion of taxes, or any other crime of moral turpitude indicating a lack of business integrity or business honesty, whether committed in the State ~of California or elsewhere, whether denominated as a felony or as a misdemeanor and notwithstanding the passage of time since the conviction. (b) Failure of the proposed business or activity to be operated in compliance with Federal, State of City law or regulation. (c) Identification by any law enforcement agency, legislative body or crime commission as a member of, or an associate of, organized criminal elements. (d) Making any false statement in the application or as to any other information presented as part of the application process. (e) Failure to satisfy the City Council as to the source of funds to be invested in the proposed venture. (f) Prior unlawful or nuisance creating operation as a card club or gaming licensee in another jurisdiction without regard to whether disciplinary action was taken at that time or whether the acts were sufficient to justify revocation of a license. (g) Applicant does not have the financial capability or business experience to operate, a card club in a manner which would adequately protect the patrons of the card club and the citizens of the community. (h) Applicant is presently under indictment or the subject of a criminal complaint for any of the crimes described in paragraph (a) above. 17 (i) Making or causing to be made any statement in an application or document provided to the City Council or its agents or orally to a City Council member or agent in connection with an application, which statement was at the time and in the light of the circumstances under which it was made, knowingly false or misleading. (j) Lack of evidence that there is adequate financing available to pay potential current obligations and, in addition, to provide adequate working capital to finance opening of the card club proposed. (k) Failure of any person named in the application when summoned by the City Council to appear and testify before it or its agents at such time and place as it may designate. (1) Inadequate security plan. (m) Proposed location of a new card 'club in an area not authorized by this chapter or the General Plan or Title 20 of the Municipal Code. 6.36.130 CARD CLUB OPERATIONS CERTIFICATE APPROVAL PROCESS (A) City Council to Grant (1) The application for a card club operations certificate and all related materials, including detailed site and floor plans, and detailed statements of security and operations procedures shall be reviewed by the City Manager and his or her designee. The plans and specifications required by this section shall be in sufficient detail to obtain building permits. (2) The City Council may grant, conditionally grant or deny issuance of a card club operations certificate in accordance with the criteria set forth in Section 6.36.130(B). (3) The City Council shall approve or disapprove any plans, specifications or proposed procedures within 45 days of receipt thereof. Any disapproval shall be in writing and shall include reasons for the disapproval. Any item neither approved nor disapproved within 45 days shall be deemed denied. The apPlicant, upon receipt of a disapproval, shall revise those plans, specifications or procedures which are disapproved and resubmit to the City Council within 45 days. (B) Criteria for Issuance of a Card Club Operations Certificate '(1) A Card Club Operations Certificate is required 18 before a card club licensee may commence operations. Prior to City Council consideration of a card club operations certificate, the applicant shall provide evidence that the following conditions have been completed: (a) The applicant has a valid card club license. (b) The card club site has been fully developed in accordance with all plans and specifications submitted to and approved by City and the site has been inspected to verify compliance with all such plans and specifications. (c) The applicant has taken all steps necessary to ensure that the club will be operated in the manner set forth in this chapter and as approved by the City and has documented such to the satisfaction of the City Manager. (d) Ail zoning, environmental, building and personnel security and any other local or state requirements for the design, construction or operation of the card club have been complied with. (e) The applicant has obtained a valid registration from the Attorney General of the State of California issued pursuant to the Gaming Registration Act, or any successor thereto. (C) Required Contents of Card Club Operations Certificate Any Card Club Operations Certificate issued pursuant to the terms of this section shall include: (a) the name of the card club; (b) the address of the card club; (c) a description of the gaming facilities; (d) the maximum number of tables which the card club is authorized to operate; (e) the card games which may be' offered at the card club; and (f) such other terms and conditions as may be imposed by the City Council. 6.36.135 AMENDMENT OF CARD CLUB OPERATIONS CERTIFICATE (A) The terms and conditions or other requirements imposed by the Card Club Operations Certificate may be changed by filing an application with the City Clerk stating the specific terms and conditions that the licensee desires to change.and the reasons therefor. Any application under this section shall be accompanied by an application fee as established by resolution of the City Council. City Manager shall investigate the application and recommend to the City Council denial, approval or approval subject to additional terms and conditions. (B) The City Council may approve the application (whether or not subject to conditions) only if it determines that: 19 (1) The proposed amendment will not result in the substantial aggravation of crime or make law enforcement unduly difficult. (2) The proposed amendment is not detrimental to the public health, safety or welfare. (3) The proposed amendment would not result in the violation of any applicable zoning, fire, building, security or other ordinance. (4) The proposed amendment would be consistent with the purposes and provisions of this chapter and is not contrary to the public interest. 6.36.140 ISSUANCE OF LICENSES OR PERMITS (A) The license, if granted, will be issued only in the name of an individual, a sole proprietorship, a partnership or a corporation. City officials and employees and members of their immediate families shall not be eligible to apply for card club licenses or permits hereunder or otherwise apply for registration as a card club employee. (B)' If the action of the City Council, or the City Manager as appropriate, on any application is to grant the same, the Finance Director may thereupon issue the necessary licenses, permits and renewals thereof upon payment of fees as required by this chapter, until such time as such license or permit is either surrendered, suspended, revoked or expires. 6.36. 150 EXPIRATION OF PERMITS AND LICENSES (A) Permits and licenses issued pursuant to this Chapter shall be and remain valid until the earlier of expiration of the permit or license term, suspension or revocation by the City Council or City Manager as provided in this chapter or Voluntary surrender in writing by the permittee or licensee. (B) Except as herein provided, licenses shall, unless renewed, expire annually on the anniversary date of their issuance. The initial card club license shall be dated as of the day upon which the same is issued and, unless sooner revoked, shall expire at midnight of the fifth anniversary of the date the card club which is the subject of such initial card club license shall commence operations. If the initial card club license shall be surrendered or revoked prior to the end of such fifth anniversary, then the license granted relative to the operation of the card club in lieu of the initial card club license shall expire at the same time that the initial card club license wold have expired (i.e., the fifth anniversary of the date on which the card club commenced operations). 20 (C) The Card Club Operations Certificate shall be and remain valid as long as the card club license is valid and no physical or procedural changes are made with respect to the items identified in section 6.36.090 or on the card club operations certificate. (D) Ail other permits or licenses issued under the provisions of this chapter shall, unless renewed, expire at midnight on the second anniversary of the date upon which the license or permit was issued or last renewed. (E) In the event of surrender, suspension, revocation or expiration, no permit fee or license fee, or any portion thereof shall be refunded. (F) In the event that a public agency takes possession of the property subject to a card club permit under threat or actual exercise of the power of eminent domain, the permit for the card club shall be deemed to be valid and remain in effect for a period of twenty-four (24) months from the date of closing of the card club, notwithstanding any contrary provisions of this chapter. 6.36.160 RENEWAL OF CARD CLUB LICENSES (A) The holder of a valid card club license issued pursuant to the provisions of this chapter shall be entitled to have the license renewed annually in accordance with the following procedures: (1) An application for renewal of any such license shall be filed with the Finance Director no later than sixty (60) days before the expiration date of the license for which renewal is sought. (2) If such application for renewal is not filed within the time specified by Section 6.36.160(A) (1), such licensee may thereafter file a written application for renewal of any such expired license, but in such event, such licensee shall pay a penalty fee, as established by resolution of the City Council, for each table or unit affected by such renewal, for each day of delinquency. (3) The application for renewal shall be accompanied by the full amount of the required renewal .license fee as set forth in Section 6.36.100. (4) The card club licensee shall file with the City Clerk an affidavit made subject to the penalties of perjury on a form approved by the City Attorney containing a full and complete statement including the following, information: 21 (a) Any change in individuals with whom the licensee has any operating agreements pertaining to the licensed operation. (b) Any change in pointholders, the full, true and correct names and addresses of such new pointholders, or trustors for pointholders. (c) The full, true and correct names and addresses of each and every new key management employee. (d) If no changes have occurred from the previous renewal, licensee shall so certify and attest. (B) Failure to make full payment of annual fees or failUre to file or filing any false statement in any affidavit and/or certification and attestation as is required by this subsection may be deemed grounds for the revocation of such license pursuant to the procedures set forth in this chapter. (C) If the licensee is in compliance with the requirements of this subsection, and if there have been no material changes in the operation of the card club or in the pointholders, building owners or key management that have not been previously approved by the City, the card club license shall be deemed renewed for another one year period and the Finance Director shall issue such renewal. 6.36.170 TRANSFER AND ASSIGNMENT OF LICENSES (A) ' Except as otherwise indicated herein, any transfer or assignment of any license shall be considered for all purposes in the same manner as a new application for card club license in the City, and all the provisions of this chapter applicable to new and original applications shall apply; provided, however, that neither mailed notice to adjacent property owners, nor published notice, need be made. Such a transfer shall be made in accordance with the provisions of Section 6.36.180. (B) The provisions of this Section and of Section 6.36.180 shall not apply to any application for or notification of a transfer or assignment by any pointholder who is a member of a bona fide owner operating under a duly issued license to conduct a card club in the City of South San Francisco to a then presently existing pointholder; provided, however, that any transfer of ten (10) points or more, even to an existing pointholder, shall require City approval pursuant to Section 6.36.180. (C) The provisions of this Section and of Section 6.36.180 shall not apply to a transfer of interest between or among family members wherein such transfer is made by devise or testamentary 22 trust, proVided that the recipient of said interest has not been: (1) Convicted of any crime punishable as a felony or of any crime of violence, any crime involving fraud, gambling, loan sharking, bookmaking, thievery, bunco, moral turpitude, or any crime involving evasion of taxes, or any other crime of moral turpitude indicating a lack of business integrity or business honesty, whether committed in the State of California or elsewhere, whether denominated as a felony or as a misdemeanor and notwithstanding the passage of time since the conviction. (2) Identified by any law enforcement agency, legislative body or crime commission as a member of, or an associate of, organized criminal elements. (3) Found by another City or County or Court to have operated a card club in a manner that was either unlawful or that created a nuisance. (4) Indicted for any of the crimes described in paragraph (a) above. (5) Found to have made or caused to be made any statement in any document provided to the City Council or its agents or orally to a City Council member or agent in connection with an application, which statement was at the time and in the light of the circumstances under which it was made, knowingly false or misleading. In the event that any family member who is devisee or testamentary trust beneficiary is unqualified, pursuant to this section, to be identified as the licensee, that person may transfer said license to another family member provided that such family member is not disqualified pursuant to items 1-5 herein. 6.36.180 TRANSFER OF INTEREST OF POINTHOLDER IN CARD CLUB (A) Permission Required It shall be unlawful for any pointholder, having any interest whatsoever, or at all, in the ownership of a card club whether legal or equitable, or as trustor or trustee, or of whatever kind or character, to transfer, convey or sell any points and/or interest in a card club to any person who is or by reason of such transaction would become a pointholder without the prior written consent of the City Council. (B) No licensee or pointholder shall knowingly permit any individual, partnership or other entity to make any investment whatsoever in, or in any manner whatsoever participate in the profits of any licensed card club, or any portion thereof, except in accordance with this chapter. 23 (C) No licensee or pointholder shall knowingly permit any investment in any licensed card club or any portion thereof or participation in the profits thereof by any person acting as agent, trustee, or in any other representative capacity whatsoever for or on behalf of another person without first having fully disclosed all facts pertaining to such representation to the City Council. No person acting in any such representative capacity shall hold or acquire any such interest or participate without first having fully disclosed all facts pertaining to such representation to the City Council and obtained written permission of the City Council to so act. (D) Transfer of Interest and Escrow Required No transfer, sale or hypothecation of a point, or new investment in a card club shall be permitted until the City Council has approved an application for transfer of interest, and until each new pointholder has been granted a pointholder's permit authorizing the holding of such interest in a point. No money or other thing of value constituting any part of the consideration for the transfer or acquisition of any interest in a licensed card club shall be paid over, received or used prior to compliance with all prerequisites set forth in the law and these regulations for the consummation of such transaction. Notwithstanding the foregoing, such funds may be placed in escrow pending completion of the transaction. Any loan, pledge or other transaction in an attempt to evade the requirements of this regulation may be deemed a violation and, as such, woUld constitute grounds for disapproval of the point transfer. (E) Assignment Any party desiring to buy, sell, accept transfer, assign or otherwise hypothecate any interest of a pointholder in a licensed card club shall file with the City Clerk, on forms approved by the City Attorney, and furnished by the City Clerk, a written application for permission to allow transfer of such interest. Each such application shall contain and clearly and truthfully set forth, under oath and/or affirmation, in addition to such other information as the City Clerk and/or the City Council may require, the following: (1) The date of the application (2) The true name of the applicant (3) The status of the applicant as being an individual, partnership, corporation or other entity. (4) applicant The residence and current business address of the (5) If the applicant is other than an individual, the name, residence and current business address of each co-partner, 24 co-partnership, shareholder (of more than ten (10) percent of the shares if the corporation is publicly traded corporation) or other interest holders. (6) The name of the licensed card club and the names of the existing pointholders from which a transfer of interest or points is sought. (7) The number of points and/or nature of interest sought to be sold, transferred assigned or otherwise hypothecated. (8) The source of funds to be used by the applicant in acquiring such points or interest. (9) A statement that the applicant(s) understands that the application will be considered by the City Council only after a full investigation and report have been made and the report of investigation forwarded to the City Council. (10) A balance sheet and income statement prepared in accordance with generally accepted accounting principles and submitted under penalty of perjury (but which need not be audited) whether he is an individual, partnership or other entity. (11) The statements required by this subsection shall be confidential, and the documents containing such information shall be deemed to be confidential documents, and shall not be open to public inspection, but shall be available only to those City officials having direct jurisdiction where any matter relating thereto may be actually pending, except that the names and cities and states of residence only of such pointholders shall be open to public inspection, but all other statements and/or documents shall remain confidential. (F). Investigations Required (1) Whenever an application pursuant to the provisions of this section has been filed with the City Clerk for a permit pursuant to the provisions of this section, and the fees required by Section 6.36.100 have been paid, the City Clerk shall immediately refer such application, or a true copy thereof, to the City Manager, who shall promptly and diligently cause a full and complete investigation of the applicant to be made, including the following: (a) Concurrently with the filing of an application, each applicant shall be finger printed and photographed by the South San Francisco Police Department and shall authorize the City to obtain any available criminal offender record information relating to applicant and shall 25 further authorize the updating of that information on an annual basis if the application is approved. (b) A background check including an analysis of the financial information supplied by the applicant pursuant to this Section. (2) It shall be the responsibility and duty of the City Manager to supervise and direct the Chief of Police to establish the necessary procedures to administer the provisions of this subsection. The information received by the Chief of Police pursuant to the provisions of this subsection shall be treated as confidential. (G) Application Fees For the purpose of clarification, the application fees set forth in this section are for regulation and reimbursement to the City for the costs of investigating and processing the applications. Each such application for transfer of interest of a pointholder to an applicant permittee shall be acCompanied by an application fee in an amount established by resolution of the City Council for each pointholder permit applicant, which fee shall be retained by the City for the payment of the costs of the investigation of the applicant. The fees set forth in this subsection shall be the property of, and be retained by, the city, whether the permit and permission to transfer interest in the license is granted or denied. (H) Granting or Denial of Applications (1) Whenever an application for a permit as required under the provisions of this section is presented to the City CoUncil, and the fees required by this section in connection therewith have been paid to the Finance Director, the City Council may consider such application on the basis of the following, without being limited thereto: (a) The financial stability of the applicant (b) Section 636. 120(E) Conviction of criminal offenses as denoted in (c) Whether the applicant has engaged in any conduct the object of which was to evade cash transaction requirements imposed by law, has been convicted of any such offense or has been subject to the forfeiture of assets on account of any alleged violation of cash reporting requirements. (d) Any other information deemed by the City Council to be matters of necessary inquiry. (2) The City Council may, in its discretion, either 26 The grant, conditionally grant or deny the permit transfer. action of the City Council shall be final. 6.36.190 INVESTIGATIONS - UPDATING Ail building owners, pointholders and key management employees of card clubs or other employees promoted into such positions subsequent to their initial employment shall have their background and criminal history investigations updated annually. The card club license annual renewal fee shall be used to cover the cost of such investigations. 6.36.200 SUSPENSION.AND REVOCATION OF CARD CLUB PERMITS AND LICENSES (A) Ail permits and licenses authorized and issued under the provisions of this chapter shall be subject to: (1) Immediate suspension by the City Manager if the City Manager finds that: (a) The Attorney General has denied, suspended or revoked an applicant's registration under the California Gaming Registration Act (Bus. and Prof. Code section 19800 et seq.) or any successor thereto; or (b) a permittee/licensee, or any agent or employee thereof with the knowledge, of such permittee/licensee, has violated, or permitted, allowed or caused the violation of any provision of this chapter, any regulation issued pursuant to this chapter, any condition of approval imposed upon the issuance of the permit or card club license, or any state law or regulation relating to the operation of a card club where the continued operation of the club in the light of such violation jeopardizes, or threatens to jeopardize, the public health, safety or welfare. (c) Based on ascertainable facts, the operation of the card club substantially aggravates the crime problems in the City, makes law enforcement unduly difficult, or is detrimental to the public health, safety or welfare in the City. (2) Suspension or revocation by the City Manager or his or her designee after not less than thirty (30) days written notice to the permittee/licensee and after testimony has been taken from the permittee/licensee and/or any other interested person, if the hearing officer finds that: (a) The Attorney General has denied, suspended or revoked an applicant's registration under the California Gaming Registration Act or any successor thereto; or 27 (b) A permittee or licensee or any agent or employee thereof, with the knowledge of the permittee or licensee, has violated or permitted, allowed or caused the violation of any provisions of this chapter, any regulation issued pursuant thereto, any condition of approval imposed upon the issuance of the card club license, or any state or federal law or regulation relating to the operation of a card club; or (c) A permittee/licensee has failed to pay, when due and payable, any of the fees or taxes provided for in this chapter within ten (10) days after written notice of any such failure; or (d) A permittee/licensee has made any fraudulent statements as to a material fact on an application form or as to any other information presented as part of the application process; or (e) A permittee/licensee knowingly commits any act which would have constituted grounds for denial'of an application for a permit or license; or (f) The permittee or licensee has knowingly continued to employ in any card club any individual whom any court has found guilty of cheating or using any improper device in connection with any game, whether as a licensee or player at a licensed game, or any person whose conduct of a licensed game as an employee of a licensee resulted in revocation, or suspension of the permit of such permittee; or (g) The permittee or licensee has been convicted of a crime provided in Section 6.36.120(E). A conviction is suitable grounds for revocation or suspension of the permit or license, prior to the exhaustion of the licensee's appellate rights; or (h) the permittee or licensee has failed to comply with the cash transaction reporting and recording requirements of Section 6.36.320(B) (1). (3) Except as otherwise provided in this chapter, the imposition of a limit, condition, suspension or revocation of a permit of an individual pointholder, key employee or permittee will not affect the license of the card club. (4) The City Manager may order the sale or transfer of points or interest held by an individual pointholder permittee whose permit has been revoked. (5) The City Manager may order a licensed card club to keep an individual pointholder or key employee whose permit has been revoked from coming onto the premises of the card club, or 28 not to pay such pointholder or key employee any remuneration for services as an employee and/or any profits, income or accruals on his or her investment as a pointholder in the card club. (6) In the event of a violation described in subsections 6.36.200(A)(2)(b) through (h) immediately above, a fine, not to exceed ten thousand dollars ($10,000.00) per day for each violation, may be imposed on the licensee in lieu of suspension or revocation. In the event the violation is for non- payment of fees, the fine shall amount to five percent of the unpaid fees plus one and one-half percent per month accrued daily after the first 30 days. (7) When appropriate, in addition to or in lieu of suspension, reVocation or imposition of a fine, the city Manager may impose other appropriate penalties, including but not limited to restitution to victims and modifications and limitations on the terms and conditions of the license, permit or Card Club Operations Certificate. 6.36.210 CITY MANAGER / CHIEF OF POLICE SUBPOENA AUTHORITY (A) The building owner and licensee shall each designate one or more persons who are regularly present on the premises during regular business hours as agent(s) for the service of subpoenas ("agent") issued by the City Manager or Chief of Police under this chapter. These designated individuals shall also serve as contact persons available to respond to general business problems. (B) By accepting, and as a continuing condition to the validity of, a license under this chapter, the building owner, the licensee, each manager and each designated responsible employee of either, and each person who has a financial interest in the licensee shall consent to having any such agent accept the service of subpoenas directed to them hereunder by the City Manager or Chief of Police. (C) A building owner or licensee may change the designation of its agent at any time by filing a change in writing with the City Manager or Chief of Police. The City Manager or Chief of Police shall serve a subpoena upon a person either (1) by personal service on such person or (2) by personal service on an agent. (D) Each subpoena directed to a person by the City Manager or Chief of Police shall set forth the subject matters of inquiry and any request for specific information required. If all of the specific information sought from the person upon whom the subpoena is served may otherwise be supplied by the licensee, the licensee shall file a declaration under penalty of perjury with the City Manager or Chief of Police that contains such 29 specific information at the time directed, the effect of which declaration shall be to quash the subpoena; provided, however, that topics of inquiry or requests for specific information pertaining to the background or actions of the person to whom the subpoena has been directed may only be answered or otherwise responded to by such person. (E) No subpoena shall compel the attendance of any person before the City Manager or Chief of Police or at any hearing conducted under this chapter in less than seventy-two (72) hours after receipt of such service by the.person(s) upon whom such service is to be made; reasonable requests for extension of time to appear shall be granted for up to an additional forty-eight (48) hours by the City Manager or Chief of Police upon a declaration that sets forth a reasonable ground for such extension, which declaration is executed under penalty of perjury (based on information and belief) by any person who would be subject to the service of a subpoena under this paragraph. 6.36.220 PROCEDURE FOR CARD CLUB PERMITS AND LICENSES REVOCATION OR SUSPENSION (A) Notice of Decision to Revoke or Suspend In the event the City Manager determines that a license or permit issued pursuant to the terms of this chapter shall be suspended or revoked, the City Manager shall issue a Notice of Decision which shall state the grounds upon which the suspension or revocation or other penalty is based. The Notice shall be in writing and addressed to the licensee or permittee and the building owner at the addresses of record. (1) Unless the licensee or permittee files a written Notice of Appeal with the City Clerk within ten (10) calendar days from the date of mailing of the Notice of Decision, the Decision shall become effective on the close of business after twenty-one (21) days. The Notice of Appeal shall state all of the grounds of appeal and shall admit or deny the determination in the Notice of Decision. (2) The City Manager shall select a hearing officer who shall schedule and conduct the hearing in accordance with procedures specified in regulations to be promulgated by the City Manager pursuant to this chapter. The decision of the hearing officer shall be final. (3) The cost of the appeal, including but not limited to the costs of the services of the hearing officer and for the preparation of the transcript, shall be borne by the licensee or permittee. The City Attorney shall provide an estimate of costs which must be deposited with the City Clerk before the scheduled start of the hearing. Failure to deposit the estimated costs 30 before the hearing is scheduled to begin shall be deemed a waiver of the appeal. 6.36.230 NO APPLICATION UPON REVOCATION In the event of revocation, no new permit or license shall be issued to such permittee or licensee except upon application made thereafter as in the case of a new applicant. 6.36.240 REGISTRATION, FINGERPRINTING AND PHOTOGRAPHING OF EMPLOYEES OF LICENSED CARD CLUBS (A) Permit Required of Employees (1) It shall be unlawful for any card club building owner or licensed card club to employ any person in connection with their operations or to allow any person to do business on their premises who is not the holder of a valid registration/I.D. card issued by the Chief of Police. No registration/I.D, card will be issued without such person having first been finger printed and photographed by the South San Francisco Police Department or such other person(s) as shall be approved by the South San Francisco Police Department. (2) Every card club building owner or licensee shall, before employing any person in connection with the licensed card club activity, ascertain that such person holds a valid registration/I.D, card issued in accordance with this regulation, and shall cause his employment records to reflect such fact. (B) Application Procedure (1) Applications for registration/I.D, cards shall be reviewed subject to the procedures to be adopted and implemented by the Police Department. An application may be granted or denied by the Chief of Police. The Chief of Police may deny an application for registration for any relevant cause denoted in Section 6.36.250. Applicants for employee registration/I.D. cards shall authorize the City to obtain any available criminal arrest and conviction offender record information relating to the applicant and shall further authorize the updating of that information on an annual basis if a registration/I.D, card is issued. (2) In recognition of the delays which may be encountered in obtaining all information on each applicant, the Chief of Police is hereby authorized to issue provisional registration/I.D, cards which shall be valid for a period not to exceed six months and shall be issued under the terms and conditions to be determined by the Chief of Police. (3) A nonrefundable processing fee as set forth in the 31 Master Fee Schedule shall be paid together with the registration and renewal application. (C) Display of Registration/I.D. Card Every employee shall be issued a registration/I.D, card whether permanent or provisional or conditional, which must be prominently displayed on the employee's outermost garment at approximately chest height. Such identification card shall be in good and readable condition and a replacement card shall be issued by the Chief of Police upon payment of a Twenty-Five Dollar ($25.00) fee. Undercover security personnel, with prior approval of the Police Department, need not wear such registration/I.D, badge in a prominently visible place. (D) Responsibilities of Chief of Police (1) It shall be the responsibility and duty of the Chief of Police to establish the necessary procedures to implement and administer the provisions of the section. (2) The information received by the Chief of Police pursuant to the provisions of this section shall be treated as confidential. (E) Permit Application Fee For the purpose of clarification, the application fees set forth in this section are for regulation and reimbursement to the City for the costs of investigating and processing the applications, as provided for in this section. Each application for a permit.under this section shall be accompanied by an application fee, payable to the City, in the amount as set forth in the Master Fee Schedule, which fee shall be retained by the City for the payment of the costs of the investigation of the applicant. The fees set forth in this subsection shall be the property of, and be retained by, the City, whether the employee registration/I.D, card is granted or denied. (F) Obligation of Card Club Licensee It shall be a condition of any Card Club Operations Certificate to inform the Chief of Police of any change in the employment status of a registered employee within ten (10) days of the effective date of the change in employment status. A change in employment status includes.termination, leave of absence, promotion or any other change in position or title. 6.36.250 EMPLOYEE REGISTRATION/I.D. -- DENIAL OF APPLICATION (A) The Chief of Police may deny the application for an employee registration/I.D, card if he or she makes any of the following determinations: (1) That the applicant has within five (5) years 32 immediately preceding the filing of the application been arrested or convicted in a court of competent jurisdiction of an offense, or has engaged in conduct constituting any such offense, listed as follows: (a) Any offense involving gambling specified in Sections 319-337.9, including any amendments thereto, of the California Penal Code. (b) Any felony offense involving the sale of a controlled substance specified in Sections 11054, 11055 and 11056 or 11058 'of thee California Health and Safety Code, including any amendments thereto. (c) Any offense specified in Sections (266(I), 315, 316, 318 ~or subdivision (b) of Section 647 of the California Penal Code, including any amendments thereto. (d) Any offense which requires registration as a sex offender under Section 290 of the California Penal Code, including any ~amendments thereto. (e) Any offense in another State, which, if committed in this state, would have been punishable as one or more of the foregoing offenses. (f) Any offense involving the use of force or violence upon the person of another. (g) moral turpitude. Any offense involving theft, embezzlement or (h) Any offense which relates directly to the operation of a gaming club. (2) That the applicant has made one or more false statements in the application. (3) That the applicant has done any act involving dishonesty, moral turpitude, fraud or deceit with the intent to substantially benefit himself or another, or substantially injure another. (4) That the applicant has failed to comply with one or more provisions of this chapter, or of this code, or other laws of regulations applicable to the premises, equipment, ownership or operation of the proposed card club of the applicant. (5) That the issuance of the proposed permit would violate an applicable provision of this chapter. 33 (6) That the applicant is engaged in organized crime, or has substantial, regular or continuous personal, professional or financial associations with one or more persons engaged in organized crime. (7) That the applicant, if he or she (1) works in the card playing area, (2) supervises anyone who works in the card playing area, or (3) is involved in anyway in cash transactions, is under the age of twenty-one (21) years old. 6.36.260 EMPLOYEE REGISTRATION/I.D. CARD -- EXPIRATION AND RENEWAL An Employee Registration/I.D. Card shall be valid for two years. It shall be renewable at the end of each second year upon filing a new application and a renewal fee, in an amount set forth in the Master Fee Schedule and established by resolution of the citY Council. If an expired Employee Registration/I.D. Card is not renewed within thirty (30) days after the expiration date, it shall be considered void and the filing fee and process for an original application shall be applicable. 6.36.270 EMPLOYEE REGISTRATION/I.D. CARD -- REVOCATION, SUSPENSION AND APPEALS (A) Emplioyee Registration/I.D. Cards are subject to revocation or ,suspension upon a determination by the Chief of Police that grounds exist which would justify the denial of an application for such Employee Registration/I.D. Card if such application were then pending, or that the person has: (1) Violated one or more provisions of this chapter. (2) Violated any statute or ordinance relating directly to the operation of the card club. (3) Been convicted of or has engaged in conduct constituting an offense enumerated in subsection 6.36.250(A) (1). (4) Done any of the following: (a) Violated any federal, state or local statute, rule or ordinance regulating gaming. (b) Failed to take reasonable steps to prevent any dishonest acts or illegal activities occurring on a card club premises committed by any patron or any other person. (c) Obtained an Employee Registration/I.D. Card by fraud, misrepresentation, concealment or through inadvertence or mistake. 34 (d) Made a misrepresentation, or failed to disclose, 'a material fact to the Chief of Police either on the application or as part of any subsequent investigation. (B) The term of suspension of any Employee Registration/I.D. Card shall be for the specific time determined by the Chief of Police but not more than sixty (60) days. (C) In conducting an investigation, which the Chief of Police may initiate on his or her initiative or in response to a complaint, or making a determination hereunder, the Chief of Police shall gather all evidence relevant to the investigation and may issue-subpoenas for the appearance of witnesses and the production of documents and other evidence. The determination of the Chief of Police shall be supported by a preponderance of the evidence. (D) Upon determination that grounds for revocation or suspension exist,, the Chief of Police shall notify the person holding the Employee~Registration/I.D. Card in question, (hereafter referred to as the "Cardholder"), in writing either by personal delivery or by'first class mail addressed to the Employee Registration/I.D. Cardholder at the address listed in the permit application, or any more recent address furnished to him by the Employee Registration/I.D. Cardholder. The notice shall state that the permit is revoked or suspended the duration of any suspension and the grounds for the action. The notice shall further state that the action shall not become effective until the eleventh City business day after the date of the notice, and that during such period the licensee or Cardholder may file a Notice of Appeal to the City Manager. The Notice shall state that if the action is appealed to the City Manager, the action shall not become effective until the City Manager shall have heard and decided the appeal. (E) If the Cardholder fails to file a Notice of Appeal with the City Manager within a period of ten (10) City business days from the date of notice of suspension or revocation, the action of the Chief of Police shall become final and conclusive. (F) At the hearing before the City Manager the appellant and the Chief of Police shall have the following rights: (1) To call and examine witnesses (2) To introduce exhibits (3) To cross-examine opposing witnesses on any matter relevant to the issues, even though that matter was not covered in the direct examination. (4) To impeach any witness, regardless of which party 35 first called him or her to testify, and to rebut the evidence against him. (G) The hearing need not be conducted according to rules of evidence. Any relevant evidence shall be admitted if it is the sort of evidence on which responsible persons are accustomed to rely in the conduct of serious affairs, regardless of the existence of any common law or statutory rule which might make improper the admission of such evidence over objection in civil actions. Hearsay evidence may be used for the purpose of supplementing or explaining other evidence, but shall not be sufficient to support a finding unless it would be admissible over objection in civil actions. The rules of privilege shall be effective to the extent that they are otherwise required by statute to be recognized at the hearing. Irrelevant and unduly repetitious evidence shall be excluded. (H) In revoking or suspending a Employee Registration/I.D. Card pursuant to this Section, the Chief of Police shall have the power to suspend the effectiveness of such action upon reasonable conditions, and to direct that if the Employee Registration/I.D. Cardholder does not comply with such conditions, the original revocation or suspension will become effective. (I) In addition to the power to suspend a Employee Registration/I.D. Card pursuant to this Section, if the Chief of Police determines that a Employee Registration/I.D. Cardholder has engaged in such conduct as to provide reasonable cause to believe that his or her continued work in a card club would constitute an immediate threat of continued violations of operations requirements, fraudulent or dishonest conduct, or sale or use of narcotics on the premises, he or she may immediately suspend the Employee Registration/I.D. Card by providing written notice to the Employee Registration/I.D. Cardholder and the licensee of the action taken and the reason therefor. The Chief of Police shall conduct a hearing on the matter upon notice to the Employee Registration/I.D. Cardholder not later than five (5) City business days from the date of the suspension. The hearing shall be in accordance with the proviSions of this Section. If at the conclusion of the hearing the Chief of Police determines that grounds exist for the suspension or revocation of the Employee Registration/I.D. Card, he or she may revoke or continue the suspension of the Employee Registration/I.D. Card. The Cardholder may appeal such decision to the City Manager by filing a Notice of Appeal pursuant to this Section 6.36.280(B); provided, however, that pending the action of the City Manager on appeal the revocation or suspension shall remain in full force and effect. 6.36.280 EMPLOYEE REGISTRATION/I.D. CARD -- DENIAL APPEALS (A) Whenever the Chief of Police shall deny an application 36 for an Employee Registration/I.D. Card, he or she shall notify the applicant/cardholder in writing by either personal delivery or by first class mail addressed to the applicant/cardholder at the address listed in the respective application, or at any more recent address furnished to him by the applicant/cardholder. The notice shall state that the application has been denied or that the Employee Registration/I.D. Card has been suspended or revoked and the grounds for the action. The notice shall further state that the applicant or cardholder shall have the right to appeal the action to the City Manager by filing a Notice of Appeal with the City Manager no later than ten (10) City working days from the date of the notice of denial. (B) A notice of any appeal must be filed with the City Manager not later than ten (10) City business days from the date of notice of denial, suspension or revocation of the application, license or EmploYee Registration/I.D. Card. If a Notice of Appeal is timely filed, accompanied by payment of an appeal fee in the amount established by resolution of the City Council, the City Manager shall schedule the matter for hearing. 6.36.290 ANNUAL LICENSE TAX The City Council hereby determines that an annual card club operations license tax shall be payable with respect to all card club licenses issued pursuant to the provisions of this chapter for card clubs with more than ten (10) tables. (1) An annual license tax in the amount of six hundred thousand dollars ($600,000) shall be due and payable to the City no later than the seventh day following City Council approval of the initial card club license. Thereafter, the annual license tax shall be due and payable on July 1 of each year. In the event that the initial license is issued on any day other than July 1 of any year, the annual license tax due on the following July 1 shall be reduced proportionately by calculating the number of days between the date of initial issuance and the following June 30 and then dividing that amount by 365. That percentage will be multiplied by annual license tax amount to derive the amount due. (2) Ail annual license taxes shall become the absolute property of the City and shall not be refunded due to the cessation of, or failure to begin such businesses, whether voluntary or involuntary. 6.36.300 GROSS REVENUE LICENSE TAXES (A) In addition to the annual tax prescribed by Section 6.36.290, there is hereby imposed a gross revenue license tax. The gross revenue license tax shall be payable monthly, based on the total monthly gross revenue of the card club so licensed, according to the following schedule: 37 TOTAL MONTHLY GROSS REVENUE (1) Less than $500,000 (2) $500,001 to $2,500,000 (3) (4) $2,500,001 to $5,000,000 $5,000,001 to $7,500,000 (5) More than $7,500,001 MONTHLY LICENSE TAX $0 10 percent of amount between $500,001 and $2,500,000 $200,000 plus 11 percent of amount between $2,500,001 and $5,000,000 $475,000 plus 12 percent of amount between $5,000,001 and $7,500,000 $775,000 plus 13 percent of all amounts in excess of $7,500,001 (B) Alternative Gross Revenue License Tax (1) As an alternative to paying the gross revenue license tax set forth herein, City may require or licensee may elect to pay a lump sum license tax of up to three million ($3,000,000) dollars. In such event an Alternative Gross Revenue License Tax schedule shall apply for a maximum sixty consecutive month period commencing with the month in which the lump sum amount is paid. During said maximum sixty month period, City shall credit fifty thousand dollars ($50,000) per month against the gross revenue amount due monthly. This monthly credit shall terminate when the sum of the monthly credits equals the advance lump sum license tax paid, but in no event shall such credit extend beyond sixty months from the date of lump sum tax payment. City or licensee may elect any month after the card club opens as the starting month for use of this alternative license tax schedule. (3) The alternative license fee schedule provided for in subsection (B) (1) shall be as follows: TOTAL MONTHLY GROSS REVENUE (1) Less than $500,000 (2) $500,001 to $2,500,000 (3) $2,500,001 to $5,000,000 (4) $5,000,001 to $7,500,000 MONTHLY LICENSE FEE $0 9.5 percent of amount between $500,001 and $2,500,000 $190,000 plus 10.5 percent of amount between $2,500,001 and $5,000,000 $452,500 plus 11.5 percent of 38 (5) More than $7,500,001 amount between $5,000,001 and $7,500,000 $740,000 plus 12.5 percent of all amounts in excess of $7,500,001 (C) The City Council may, by resolution, authorize a credit against the annual license tax amount based upon an agreement between the City Council or South'San Francisco Redevelopment Agency and the licensee and/or building owner provided that the City and/or Redevelopment Agency receive consideration at least equal to the amount of the credit. 6.36.310 AUDIT/REPORTING REOUIRED (A) Statement of Revenue (1) Each licensee, shall file with the City on or before the 15th day of each calendar month a statement, under oath, showing the true and correct amount of gross revenue derived from the card club business, operated pursuant to licenses issued pursuant to this chapter, for the operations of the preceding month. At the option of the City, the City may require payment of gross revenue tax revenues through electronic transfer on amore frequent basis. Such statement shall be accompanied by the payment of the correct amount of gross revenue license fee due and owing in accordance with the provisions of this section. A certification shall be attached to the statement or included therein, which certification or declaration shall be substantially in the following form: "I hereby declare under penalty of perjury that the foregoing is true and correct." Licensee, Managing Partner, or Owner (Strike out the titles which are not applicable) (2) At the end of each fiscal year, the Licensor shall employ at Licensee's expense a nationally recognized firm of Certified Public Accountants to conduct an audit of licensee's financial records in accordance with generally accepted auditing standards. The Licensor shall select said Certified Public Accountant through a public bid process, the procedures of which shall be determined solely by the Licensor. Based on the procedures established by Licensor, the Licensor shall select the bid of the lowest responsible bidder. The audit shall conclude with the expression of the auditor's opinion on the financial statements of the licensee's card club operations in accordance with generally accepted 39 auditing principles. The auditor shall express a separate opinion on the licensee's gross revenues and related permit fees paid to the City for the period then ended. Also, the licensee shall provide the City with an annual update of the evaluation of its internal accounting and administrative controls. Such audit report shall be filed with the City Clerk no later than one- hundred twenty (120) days after the fiscal year end. In the event that such evaluation discloses material weaknesses or reportable conditions in the licensee's system of internal accounting and administrative controls, the licensee shall submit a program to the City Manager within thirty (30) days of such evaluation outlining licensee's program to correct such weaknesses or conditions. All reports or evaluations submitted hereunder shall be confidential and shall not be available for public inspection. (3) Any failure or refusal of any such licensee to make any statement as required within the time required, or to pay such sums due as gross revenue license fees when the same are due and payable in accordance ~ith the provisions of this chapter, shall be and constitute full and sufficient grounds for the revocation or suspension of the permits and licenses issued pursuant to this chapter in the sole discretion of the City Council. (4) Subsection (A) herein shall not apply to the preexisting lawful nonconforming card clubs licensed pursuant to Section 6.36.430. (B) Not later than July 1 of each calendar year, the licensee shall execute under penalty of perjury and file with the Chief of Police a declaration providing the following information: (1) A list of the minimum buy-in, time charged or other fees charged players for the use of the tables. (2) A set of the then current posted detailed house rules applicable to the games played. (3) That all taxes have been paid. (4) The declaration shall be accompanied by a complete copy of all registration and re-registration applications (and exhibits) filed by the licensee and all persons having a financial interest in the licensee under the Gaming Registration Act. 6.36.320 RECORDS, REPORTS AND SUPPLEMENTAL INFORMATION (A) Each licensed establishment shall make and maintain complete, accurate and legible records of all transactions 40 pertaining to revenue subject to taxes imposed by this chapter. Such records shall include but not be limited to a general ledger maintained in accordance with generallY accepted accounting principles, together with appropriate supporting records such as cash receipts and disbursement logs and journals, payroll journals, canceled checks and original paid invoices. Such general ledger shall be maintained in a fashion suitable for producing financial statements in accordance with generally accepted accounting principles. Such records shall be maintained for at least three (3) 12-month fiscal years and shall be maintained on the premises of the licensed card club and made available for examination and copying by the City or its designee. (B) (1) The permittee or licensee shall comply with the Internal Revenue Service Form 8300, Currency Transaction Reporting Requirements (IRS Regulation 6050.1) for cash received from and paid to customers in excess of $10,000. The permittee or licensee shall also comply with Title 31, sections 5313 and 5314 of Title 31 of the United States Code and sections 103.22 and 103.23 of Title 31 of the United States Code of Federal Regulations, including any amendments thereto. In addition, transaction logs shall be maintained to record multiple cash transactions totalling $3,000 or more on cash received from and paid to customers within'a 24-hour period. (2) The permittee or licensee shall submit a policy statement to address Section (B) (1) for review and approval by the Chief of Police. (C) The permittee or licensee shall institute audit and accounting processes and procedures for employee tip pools and jackpot poker pools if jackpot,poker is allowed. (D) In the event information requested of a licensee can be furnished only by someone other than the licensee (such as a landlord, supplier or an accountant), the licensee shall make every bona fide effort to obtain such information as requested and furnish the same or have it furnished directly by the person who has the information available. (E) In addition to such other information and data required by this section or by regulation issued by the City Manager pursuant to this chapter, each licensed establishment shall maintain on the card club site the following: (1) If a partnership or corporation - (a) A schedule showing the dates of capital contributions, loans or advances, the names and addresses of the contributors and percentage of ownership interest held of record by each. 41 (b) A record of the withdrawals or distributions of funds or assets to partners or stockholders. (c) A record of salaries'paid to each pointholder and key management employee. (d) A copy of the partnership or corporate agreement, certificate of limited partnership and accurate corporate stock transfer book, if applicable. (e) Copies of any and all public filings required by the Securities and Exchange Commission. (2) If a sole proprietorship- (a) A schedule showing the name and address of the proprietor and the amount and date of his original investment. (b) A record of subsequent additions thereto and withdrawals therefrom. The records required to be kept by this regulation shall be in ink or any other permanent form of recordation. 6.36.330 ACCESS TO RECORDS AND FACILITIES (A) Notwithstanding the audit requirements specified in Section 6.36.300 of this chapter, the licensee shall allow the City Manager or his designee unrestricted access to all books, records, facilities, and all audio and video tapes pertaining to the card club, including but not limited to, cash counting rooms and vault. Any information obtained pursuant to this section or any statement filed by the licensee or permittees shall be deemed confidential in character and shall not be subject to public inspection except in connection with the enforcement of the provisions of this chapter. It shall be the duty of the City Manager to preserve and keep such statements so that the contents thereof shall not become known except to the persons charged by law with the administration of the provisions of this chapter or pursuant to the order of any court of competent jurisdiction. (B) Any failure or refusal of any permittee or licensee to make and file any statement within the time required, or to permit inspection of such books, records, accounts and reports of such permittee or licensee in accordance with the provisions of this chapter shall be full and sufficient grounds for the revocation or suspension of the permit and licenses of any such permittee or licensee in the sole discretion of the city Council. 42 ..... 6.36.340 CARD CLUB OPERATIONAL AND GAMES RULES AND REGULATIONS (A) The City Manager may from time to time enact rules and regulations to effectuate the purposes of this chapter, specifically including rules governing the operation of card clubs and the activity conducted in card clubs by patrons. All such rules and regulations shall be given to all licensees concurrently with or prior to the effective date. (B) Unless modified, supplemented, or abrogated by later action of the City Council, the following rules and regulations shall govern all card club licenses to be issued: (1) Acceptance of a permit or license issued under the provisions of this chapter shall be deemed to be acceptance of and agreement to be bound by and observe each and all of their terms, conditions and provisions by this chapter and of the rules and regulations established thereby relating to such permits and licenses. (2) No permittee, license, or other individual in charge or control thereof shall use, operate, or permit the use or operation of more tables or units than those for which licensee holds then current and valid authorization to operate or use in the city and for which the prescribed license fee has been paid to the city. (3) No permittee, licensee or other individual in charge or control of any card club operating under any license held or issued pursuant to the provisions of this chapter shall operate or use any table or unit or manage, conduct, or carry on any business or activity authorized by this chapter during anytime that such license or permit issued by the city has been or is suspended or revoked. (4) Each and all of the games conducted or operated in the city pursuant to the provisions of this chapter shall be conducted and operated in full conformity with, and subject to, all the provisions of the laws of the state and of the city. (5) Employment of Persons to Stimulate Play Prohibited (a) It shall be unlawful for any card club permittee, owner or employee to engage or persuade any person to play cards for purposes of stimulating play where such person is to receive any reward, whether financial or otherwise, present or promised, or where such reward or revenue is to be diverted to the card club permittee or owner except as allowed under subsection (b) of this section. (b) The permittee may utilize proposition 43 players. A proposition player must wear a badge at all times identifying the player as an employee of the permittee. Other than compensation for the time spent in acting in such activities as an employee of the permittee, no gifts, rewards or any other thing of value shall be given to the proposition player by the permittee or any owner or employee. (6) (a) one gaming table. A maximum of nine hands may be dealt at any (b) Up to three (3) participants may be allowed to wager on the same hand on designated games. Where more than one participant is involved in the play of the hand, each participant shall participate in decisions as to how the cards or tiles~shall be played. In the event of disagreement over play, the participant who has the largest wager at stake shall make the final decision. A primary seated participant shall be allowed to refuse to allow other participants to bet his hand. (c) At no time shall cards or tileS be removed past the edge of the top of the gaming table. (7) No permittee or licensee holding a permit or license pursuant to the provisions of this chapter, and no agent, representative or employee of the licensee and no other person in charge or control of any such licensed premises, game or authority shall: (a) Permit or allow any person under the age of twenty-one (21) years to play any of the games authorized by the license. (b) Permit or allow any person under the age of twenty-one (21) years at any time to be in the card playing area; provided, however, that minors may be allowed in the restaurant section of a card club operation if the restaurant is accessible from the outside without requiring passage through the card playing area, .and the restaurant and such access are visually separate from the card playing area. (c) Permit or allow the playing of any card games other than those specifically_authorized by the license or permit any form of unlawful gambling to occur anywhere on the card club premises. (d) Permit or allow the farming out, assigning, lending, renting, or subletting of any games or card tables on premises lawfully permitted pursuant to the provisions of this chapter. Nothing herein shall preclude any profit-sharing with employees or preclude use of a management company. (e) Permit or allow any person other than players 44 and card club employees holding valid registration/I.D. ~cards to loiter in the card playing area. Spectators and those waiting to play shall be excluded from the card playing area in a manner acceptable to the Chief of Police. For the purposes of this section, participants as described in section 6.36.340(B) (6) (b) are considered players. (8) It shall be unlawful for any individual player or other unauthorized person to enter any secure areas within the premises or for any player or unauthorized person to enter any secure areas within the card club premises. (9) The card club, including the entire premises, shall be open for inspection during all hours to the Chief of Police, City Manager or their duly authorized representatives, without a search warrant. (10) The playing of all games provided for in this chapter shall be confined to designated card playing areas. No card playing or other gambling shall be permitted in any restaurant or lounge. All card club records, including but not limited to papers, books of account, ledgers, audits, reports, personnel records, information stored in computers and on computer tape disks, video tape, microfilm or microfiche, shall be available for inspection and copying during normal business hours to the Chief of Police, the City Manager or their duly authorized representatives without search warrant. (11) The City Council shall by resolution establish a minimum table rental fee schedule for all permitted games. (12) (a) Ail card playing areas shall be accessible at all times to law enforcement officers and officials designated by the city. (b) Subject to the foregoing, licensee may designate certlain areas or rooms as open only to players and their guests for tournaments or charity events. (c) Card games shall be located and conducted on what is commonly known as the street floor of the card club premises. (d) Card games shall be located in one or more rooms and so arranged that the gaming tables in a room and the players at the tables shall be plainly visible from the main doorway into such gaming, and no wall, partition, screen or similar structure between any main doorway into a gaming room and any gaming table shall be permitted if it interferes with such visibility, except for such other physical arrangement of a card club which has been approved by the Chief of Police. 45 (e) During all hours of operation the outside doors to the card club and the main doors to, the gaming rooms must be unlocked and accessible to the general public. (13) Ail players financed either in whole or in part by the house shall be required to wear an employee registration/I.D. card as prescribed in Section 6.36.240(C). (14) Ail employees on the gaming floor during the course of their employment shall speak English primarily when dealing with customers and other employees. (15) Cheating (a) No cheating shall be permitted or tolerated by any licensee, permittee or employee. All provable cases of cheating shall be reported to the appropriate law enforcement authorities and the licensee shall cooperate fully in the prosecution of all individuals who are criminally charged with cheating in the licensed establishment. Cheating deVices shall be confiscated and shall not be returned to the individual or persons using or bringing such devices on to the premises whether or not the offender is arrested or prosecuted. Permitting or tolerating cheating shall be grounds for immediate suspension or revocation of card club license or imposition of additional conditions (b) For the purpose of this Ordinance and Rule, the words and phrases hereinafter set forth are examples of cheating techniques and shall have the following meanings ascribed to them unless the context clearly requires to the contrary: (1) "Blind cut" or "false cut" shall mean a maneuver which appears to cut the deck, but does not in fact do so. (2) "Blind shuffle" shall mean to false shuffle or to give the deceptive impression of intermixing playing cards, while actually retaining the same sequence of all or a group of cards. (3) "Burn" is a discard in accordance with the rules of the game, made before the draw when playing draw poker. (4) "Capping the deck" shall mean to place cards on to the top of the deck. (5) "Capping a bet" shall mean to place or increase a bet after acquiring knowledge of the outcome of the game or other event which is the subject of the bet. 46 (6) "Cheating" shall mean any and all acts of fraud, misrepresentation, dishonesty, false pretense, use of device or manipulation of card, done with the purpose of defrauding or gaining an unfair advantage over another player whether or not an actual advantage is gained, whether or not specifically defined herein, which alters the selection of criteria which determines the result of a game or the amount or frequency of payment in a game. (7) "Cooler" shall mean a deck of cards secretly prearranged in a known sequence or marked to be substituted for the deck in play. (8) "Daubing" shall mean to mark cards by applying a faintly visible substance to the back of the cards. (9) "Dragging" or ~'pinching a bet" shall mean to reduce the amount wagered or cancel the bet after acquiring knowledge of the outcome of the game or other event which is the subject of the bet. (10) "Second dealing" or ~seconds" shall mean to deal a card which is second from the~top of the deck. (11) "Hand mucking" shall mean the surreptitious switching of cards from those that are dealt to a player. (12) "Hold-out" shall mean a mechanical device used for the purpose of surreptitiously switching or retaining cards. (13) "Hopping the cut" shall mean to surreptitiously nullify the cutting of the deck. (14) "Middle dealing" shall mean to deal a card from the center of the deck. (15) "Playing partners" shall mean any scheme or action in which two or more players act in concert to communicate information or to otherwise act for the purpose of defrauding or gaining an unfair advantage over another player, whether or not an actual advantage is gained. (16) "Punching" shall mean to mark the back of the cards by creating a dimple or indentation thereon. (17) "Roughing fluid" shall mean a liquid chemical applied to the back of the cards for the purpose of marking them by roughening the surface. (18) "Run-up" or "stacking" or "stocking" 47 shall mean to shuffle the cards in such a fashion as to surreptitiously arrange the sequence to known cards. (19) "Sanding" shall mean to mark cards by applying an abrasive substance to the cards. (20) "Shiner" shall mean a mirror or other reflecting device used for the purpose of enabling a player to see cards which the player is not entitled to see under the rules of the game being played. (21) "Slick sleeve" or ~'mohair sleeve" shall mean a long sleeve on a clothing garment to assist in holding out a playing card. (22) "Slug" shall mean a group of cards (23) "Transmitter" shall mean an electronic or radio device used for the purpose of transmitting signals or information to another player who receives such signals or information by use of a "receiver". (24) "White flash" shall mean a form of daubing whereby a chemical is used to create a ~white on white" marking on the back of the cards. (C) Fraudulent Acts (1) It is unlawful for any person: (a) To alter or misrepresent the outcome of a game or other event on which wagers have been made after the outcome is made such but before it is revealed to the players. (b) To place, increase or decrease a bet or to determine the course of play after acquiring knowledge, not available to all players, of the outcome of the game or any event that affects the outcome of the game or which is the subject of the bet or to aid anyone in acquiring such knowledge for the purpose of placing, increasing or decreasing a bet or determining the course of play contingent upon that event or outcome. (c) To claim, collect or take, or attempt to claim, collect or take, money or anything of value in or from a gambling game, with intent to defraud, without having made a wager contingent thereon, or to claim, collect or take an amount greater than the amount won. (d) Knowingly to entice or induce another to go to any place where a gambling game is being conducted or operated in violation of the provisions of this chapter, with the intent that the other person play or participate in that gambling game. 48 (e) To place or increase a bet after acquiring knowledge of the outcome of the game or other event which is the subject of the bet, including past-posting and pressing bets. (f) To reduce the amount wagered or cancel the bet after acquiring knowledge of the outcome of the game or other event which is the subject of the bet, including pinching bets. (g) To manipulate, with the intent to cheat, any component of a gaming device in a manner contrary to the designed and normal operational purpose for the component. (h) For any individual as a player or dealer to deal, draw, distribute or burn any playing cards other than the top card of the deck. The ~top card" is defined as the uppermost face down card of a face down deck. It shall, therefore, be unlawful to deal or cause to be dealt what is known as a second, bottom or to engage in Greek dealing or middle dealing. (i) For any individual as a player~ ~dealer, employee or agent to shuffle or cause to be shuffled any playing cards that are to be used or are being used in a licensed card game, other than in a random manner. It shall be unlawful to predetermine, or to prearrange the sequence of playing cards by value or suit, or to retain or hold back a card or cards either individually, or as a group or slug as an effort to circumvent a random mixing of the playing cards. Any blind shuffle, run-up, stacking or stocking of the deck to gain an unfair advantage in play, whether or not an advantage is gained, is unlawful. (j) For any patron or any other person not a permittee or licensee to bring cards into a card club. It shall be unlawful for any person other than a permittee, licensee, authorized employee or a patron then playing cards to have playing cards in his or her possession while in a card club. It shall be unlaWful for any person in a card club other than on- duty employees with valid registration/I.D, cards to have playing cards in his or her possession outside of a designated card playing area. Nothing herein shall apply to punched or otherwise destroyed or mutilated cards or any souvenir or designer decks that could not be misconstrued as playing cards used in the card playing area. (k) For any player or dealer to palm, hold-out or conceal any card or cards during a card game, whether by sleight of hand, mechanical apparatus, or by clothing such as a slick sleeve. It shall also be unlawful for any individual, player or dealer to switch, exchange or cause to be exchanged any playing card, or cards, as a means of deception. The deceptive practices known as hand mucking, capping the deck, introducing additional cards into a game, or switching the deck with a ~cooler" are prohibited. 49 (1) For any individual to use any technique in a card game, designed to accomplish a ~blind" or false cut, or to use a fraudulent technique to nullify a cut once performed by a player, or to influence or indicate to another individual to cut the deck at a specific location. (m) For any individual, player or dealer to deliberately mark or alter any card or cards when there is a likelihood that such cards will be used in a licensed game, or when such cards are in play. It shall be unlawful to knowingly use any altered or marked cards in a card game. ~Marking and altering" as used herein include sanding, daubing, white flash, white on white, punching, adding to, removing from or blocking out, the existing design whether on the face, backside or edge of any card or cards. Any deliberate crimping, warping, bending, cutting, trimming, shaving or alteration by any means that would or may cause an advantage for any player over other players, whether or not such advantage is gained, is unlawful. (n) For any individual to use any mechanical or electrical apparatus or other device so as to gain any advantage or to gain information that would enable a player or dealer to deceive others. Such devices include, but are not limited to, hold-outs, table bugs, shiners, transmitters, receivers, punches, chemical solutions, shading, roughing, fluids, inks or dyes. (o) For any person at a licensed card club to use or possess with intent to use any device to assist (a) in projecting the outcome of the game; (b) in keeping track of the cards played; (c) in analyzing the probability of the occurrence of an event relating to the game; or (d) in analyzing the strategy for playing or betting to be used in the game. (p) For any individual to play partners or to knowingly aid or abet another in any cheating action prohibited by this Ordinance. (q) For any person to knowingly aid or abet another in any cheating action prohibited by this chapter. (r) For any person to communicate in any way, whether verbally or non-verbally, to any other person whether playing a card game or not, any information concerning the cards held by any other person in the card room. (s) FOr any individual or group to use any of the cheating techniques prohibited by this Ordinance, or to cheat in any manner whatever, whether or not such techniques~ are specifically defined or are successful. The licensee or management shall immediately notify the Police Department upon the detection of any individuals suspected of cheating or committing fraudulent acts. 50 (2) It shall be the responsibility of the licensee, management and their employees to fully cooperate with card game apprehension and identification of those individuals, patrons or other employees involved in cheating or fraudulent practices. Management shall retain and deliver to the Police Department as evidence in arrests or detention all playing cards and implements suspected of involvement in cheating or fraudulent practices. Management shall cooperate with card club surveillance personnel whether provided by a governmental policing agency, a city contracted service, city administered or licensee assigned. (3) The Police Department, upon being notified by card club personnel or game surveillance personnel that an individual or individuals are being detained for cheating or fraudulent acts at play, shall respond to the card club. The Police Department shall ascertain the identity of those involved in the cheating, the circumstances involved and decide what police action, if any, is deemed appropriate. The Police Department shall assist as legally required in any citizen's arrest. (D) Permissible Games and Game Rules (1) Permissible Games. (a) A list of "Permissible Games" shall be adopted by resolution of the City Council. (b) No game shall be played at any card club unless it is listed as a Permissible Game. (c) Ail Permissible Games shall be played in strict conformity to California Penal Code Section 330, and all other state and local gambling laws. (d) The permittee shall file with the South San Francisco Police Department the rules on how each game and variation thereof is to be played. The permittee shall allow the playing of Permissible Games only in strict conformity with the rules provided to the South San Francisco Police Department. (e) Ail other games are hereby prohibited. (2) Game Rules. (a) The licensee shall cause these rules to be reproduced and available in the licensed premises. (b) The rules describing how each game conducted on the premises is to be played shall be posted on the premises of the card club in a conspicuous place. Printed copies of the rules shall also be easily available to the public. (c) The rules which are posted and made available to 51 the public shall be identical to the rules provided to the South San Francisco Police Department pursuant to section of this subchapter. (d) The rules, in handout form, shall be made available in English, Spanish, Tagalog, Vietnamese, Korean and Mandarin and/or Cantonese-Chinese. (e) If jackpot poker is allowed, rules for qualifiers shall be clearly posted. (E) Gamblers Anonymous Literature Ail .card club permittees shall make literature published by Gamblers Anonymous easily available in a visible location in the card club. If literature published by Gamblers Anonymous is not available in English, Spanish, Tagalog, Vietnamese, Mandarin and/or Cantonese-Chinese, then the permittee shall be required to make such literature easily available. (F) Tournaments (1) The conduct of tournaments shall be permitted for those games otherwise permitted by this chapter and for no others. (2) The licensee shall submit to the City Manager at least fourteen (14) days prior to the commencement of any tournament a full set of rules, regulations, terms and conditions to be used in regulating or otherwise governing and operation and activities of any such tournament. The City Manager or his designee shall have the power to approve in advance a schedule of tournaments, and the rules, regulations, terms and conditions to be used in regulating or otherwise governing the operation and activities of such series of tournaments. (3) Nothing contained in the permission granted to a licensee to engage in tournament activities shall permit or be construed to permit a violation of any other section or provisions of this chapter or the California Penal Code. (4) Tournament entry fee revenues shall be paid to the City as prescribed in Section 6.36.300(F). (G) Operation o'f House Deposit or Credit System (1) It shall be unlawful for any card club, licensee, permittee, owner or employee to operate, maintain or purport to maintain any house player, or employer deposit or credit system players bank or any system similar thereto, whereby a person may deposit, draw or maintain any account or credit of money, checks or any other item or representation of value, except as authorized pursuant to subsections (a) through (d) of this 52 section. (a) The permittee shall be allowed to provide chips or other representations of value paid for in advance by the patron in cash or by personal check. (b) It is unlawful for the card club permittee, owner or employee to cash any personal check which does not state the amount on the face of the check. (c) The permittee shall be allowed to accept a patron's chips or other winnings and provide the patron with a check drawn on the permittee's account for the amount of the patron's chips or other winnings. (d) The dollar equivalent of any such chips or other representations should be posted in the same ~anner as the game rules pursuant to Section 6.36.340(D). (2) Holding Valuables for Safekeeping Licensees holding valuables for safekeeping may do so only under the following conditions: (a) Only cash may be held; no other valuables or collectibles, including coins, jewelry, stamps, or paper money worth more than face value, may be held. (b) Monies deposited shall be secured by cash or other liquid assets or a security bond. Such security shall be sufficient to cover all monies deposited. (c) No person may deposit money for safekeeping without the approval of the licensee, or his designee. Monies can be deposited and withdrawn only by the person named on the account. Accurate records of all deposits and withdrawals shall be kept for a period of not less than two (2) years. No person shall hold more than one (1) account at any card club. (d) The actual deposits held and the records of all transactions shall be available for inspection by the Chief of Police or other law enforcement officials upon demand. (e) Accounts established pursuant to this section shall be limited to one person per account. (H) Lending MoneY or Tokens of Value Prohibited (1) It is unlawful for any card club licensee, permittee, owner or employee to engage in the lending of money, chips, tokens or anything of value, either real or promised, to any person including other employees for any purpose while on 53 card club property and expressly for the purpose of allowing that person to eat, drink or play cards. (2) It is unlawful for any card club licensee, permittee, owner or employee to engage in the lending of money, chips, tokens or anything of value to any city employee or elected city official. (I) Alcohol and Intoxication (1) No complimentary or reduced price alcoholic beverages shall be offered by the card club in the card club or in violation of state law. (2) No licensee or other person in charge or control of any card game at a card club shall permit any person to play in any game licensed by the provisions of this chapter at any time while such person appears to be, or is, under the influence of any alcoholic beverage or controlled substance. (3) No licensee or other person in charge or control of any card game at a card club shall permit any person to enter the premises while such person appears to be, or is, in the opinion of the licensee or duly authorized agents or employees, under the influence of an alcoholic beverage or controlled substance. (J) Favorable Job or Table Assignments It is unlawful for any card club licensee, permittee, owner or employee to offer or accept employment or favorable job or table assignments within a card club in exchange for anything of value, either real or promised. (K) Hours of Operation The permissible hours of operation shall be established in the license or in the appropriate land use approval. (L) Wagering Limits The wagering limits for each club shall be established by the City Council in the license. 6.36.345 Seat Rental and Drop Charge Fees (A) No licensee or any other person in charge or control of any card game at a card club shall derive revenues from games being played in the gaming club other than from collection of a time rental fee for occupancy at a card table, a predetermined fixed fee assessed of all players at the table and collected prior to the playing of the hand, and/or a management or service 54 fee, if not prohibited by state law. (B) Notwithstanding the provisions of 6.36.345(A), the licensee may request of the City permission to charge players on a basis other than time rental or fixed fee basis. The City Council may grant permission by resolution for such alternate charge methodologies, provided that the City Council makes all of the following findings: (1) That without an increase in player volume, the gross receipts will not decrease. (2) That the proposed alternate method is subject to strict controls. (3) That the licensee agrees to provide such physical and accounting controls as the City shall require. (4) That the proposed alternate method does not violate prohibitions against "banking" or "percentage" games. (C) The alternative method shall apply only to games where the licensee supplies a dealer at the table. 6.36.350 CARD CLUB SITE SECURITY (A) The building owner, licensee and\or permittee shall submit a physical security plan and a security personnel deployment plan for review and approval by the Police Department. The applicant's permits shall be subject to suspension and/or revocation for non-compliance with approved plans. (B) The building owner, licensee or permittee shall have security personnel regularly patrol the parking areas and patrons shall not be allowed to sleep in vehicles parked in the lots controlled by the licensee. 6.36.360 VIOLATIONS It shall be unlawful for any building owner, permittee, licensee or other person to violate any of the rules or regulations set forth in this Chapter. 6.36.370 CHANGES IN RULES AND REGULATIONS The City CounCil reserves the right to add to, amend or repeal any of the rules and regulations set forth in Section 6.36.340 and for the City Manager to adopt additional rules and regulations. Upon adoption of such rules or regulations, the same shall apply to new or existing card clubs. 55 6.36.380 EMERGENCIES The City Council further reserves the right to adopt by resolution additional emergency rules and regulations which shall become effective immediately upon adoption, and the violation of any such emergency rules and regulations may constitute grounds for the suspension and revocation of the permits and licenses issued pursuant to the provisions of this Chapter. 6.36.390 RIGHTS OF LICENSEE AND CARD CLUB (A) A licensee or card club shall exclude or eject from the premises of the card club any person who is reasonably suspected of or who is engaged in or has been convicted of bookmaking, loan sharking, sales of controlled substances, illegal gambling activities, cheating, prostitution or whose presence in or about such card club would be inimical to the interest of legitimate gaming. (1) Pursuant to any investigation of a Violation of this ordinance, the licensee or card club may detain any person on its premises and request that person present themselves at the security office of the card club. (2) To be reasonably suspected of violating this ordinance, the licensee or card club must show by direct or circumstantial evidence, knowledge of such a violation or reasonable belief that such violation is about to occur. (3) The licensee or card club may temporarily exclude or eject any person during the pendency of an investigation by the licensee or card club regarding a violation of this ordinance; provided, however, that the investigation and temporary exclusion shall run no longer than 90 days from the date of exclusion. (B) As used in this ordinance the following items shall be deemed to be inimical to the interests of legitimate gaming. The items include, but are not limited to, the following: (1) violation of any card club rule; (2) violation of any law or ordinance; (3) behavior that would indicate that the person is under the influence of a drug, narcotic or alcohol; (4) loud, boisterous or other disruptive behavior; (5) swearing or using profane language; 56 (6) failure to abide by instructions or orders of licensees' or permittee's employees, agents or management personnel; (7) loitering; or (8) aggressive panhandling. (C) No person shall be excluded or ejected on the grounds of race, color, national origin, disability or sex. (D) Detention and questioning of persons suspected of violating Sections of this chapter; limitations on liability; posting of notice (1) A licensee, or its officers, employees or agents may question any person in his establishment reasonably suspected of violating any of the provisions of this chapter. The licensee and its employees and agents shall not be liable for civil damages based on such questioning or for reporting'to the law enforcement authorities the person suspected of the violation, provided such actions are non-tortious. (2) A licensee or its employees or agents who has probable cause for believing that there has been a violation of this chapter by any person may detain that person in the establishment in a reasonable manner and for a reasonable length of time. Such detention does not render the licensee or its officers, employees or agents liable for civil damages, provided such detention is non-tortious. (3) No licensee or his officers, employees or agents are entitled to the immunity from liability provided for in subsection 2 unless there is displayed in a conspicuous place in his establishment a notice in boldface type clearly legible and in substantially this form: Any card club licensee, or any of his officers, employees or agents who has probable cause for believing that any person has violated any provision of Chapter 6.36 of the South San Francisco Municipal Code prohibiting cheating in gaming may detain that person in the establishment. 6.36.400 ADMINISTRATION OF CHAPTER BY CITY MANAGER (A) The City Manager shall formulate in writing all necessary rules and regulations to implement and administer the provisions of this chapter, and shall do all things necessary and proper to carry out the spirit and intent of this chapter, 57 -- including, but not limited to: (1) Preserving and keeping all documents identified in this chapter as confidential documents so that the contents thereof shall not become known except to persons required by law to effect the administration or enforcement of this chapter. (2) To promulgate and/or to require prior approval of accounting procedures to be utilized by licensees to ensure accurate reporting of card club revenues. (3) Delegating the duties and powers vested in the City Manager by this chapter to appropriate City employees or officers. (4) Issuing regulations which are consistent with this Chapter and which provide for more effective enforcement of the provisions of this chapter and the elimination of that conduct which is inimical to the interests of legitimate gaming. (5) The appointment of a hearing officer to hear and determine those matters which are to be decided by a hearing officer. 6.36.410 UNLAWFUL ACTS (A) Unlawful Locations. It shall be unlawful for any individual to play, or permit the playing of, any game regulated or referred to by the provisions of this chapter at any place within the City, except a place operated under a license held or issued pursuant to the provisions of this chapter, and operated, owned, controlled and directed by pointholder and key management employees issued permits pursuant to the provisions of this chapter. (B) Unlawful games. It shall be unlawful for any person to play in, or permit the playing of, any game at any place licensed pursuant to this chapter which game is not permitted by the provisions of this chapter or regulations issued pursuant thereto, or in any game played in violation of this chapter. (C) Unlawful activities. It shall be a violation of this chapter for any licensee to knowingly permit any unlawful activity to take place upon the premises of the card club or to fail to take reasonable steps to prevent such activities from taking place. (D) Visiting a gambling place. It is unlawful for any persons to knowingly visit any location wherein gambling as prohibited by this chapter is being conducted or maintained. (E) Unlawful Interests. It shall be unlawful and a 58 conflict of interest for any City employee or city official to directly or indirectly own, operate or have any interest, legal or equitable, in any card club or card club license for a facility within the City. It shall be unlawful for any City employee or City official to directly or indirectly conduct business with or be employed in any manner whatever by a card club or card club licensee for a facility within the City. (1) For purposes of this section indirect performance of any prohibited act shall include but not be limited to the performance of such prohibited act by the spouse or other person related by blood or marriage to any party prohibited from directly performing such act. (2) For purposes of this section the term ~conduct business" shall include but not be limited to the provision of loans or any other forms of financing, sale or lease of any real or personal property, and the provision of any services, supplies, goods or other materials, but shall not include the conduct of business as a patron or customer in a manner available to the general public. (F) Campaign contributions. The City Council finds that the gaming industry is a highly regulated and controlled industry due to the nature of its operations, the amount of money amassed and the fears and perceptions that some elements in the industry may use such funds to incur political debts from legislators who are aided by their contributions. In order to eliminate the appearance of impropriety and corruption associated with such contributions, the City Council hereby determines that it shall be unlawful for any corporation, partnership or other legal entity licensed or permitted under this chapter, or their employees, to make any monetary contributions to city council members, candidates for City Council, or to their respective campaign organizations. (G) Exceptions. This chapter shall not apply to bingo conducted in accordance with the California Penal Code 326.5 et. al. 6.36.420 PENALTIES Any individual violating any of the provisions of this chapter or any of the rules and regulations set forth, established or promulgated in this chapter shall be guilty of a misdemeanor. 6.36.430 PREEXISTING CARD CLUB Preexisting lawful non-conforming card clubs and pointholders licensed under Chapter 6.36 of the Municipal Code in effect before the effective date of these amendments to this 59 chapter shall be deemed licensed and in possession of a card club operations certificate and a building owner permit under the provisions of this chapter and those licenses shall continue in effect for twelve (12) months from the date this amendment is adopted, at which time they shall apply for renewal in accordance with the provisions of this chapter as applicable. All employees holding Employee Registration/I.D. Cards pursuant to Chapter 6.36 of the Municipal Code in effect before the amendment of this chapter shall be deemed permitted under the provisions of this chapter. Those employees who hold such permits and are not ~key management employees" as that term is defined herein~ shall apply for renewal of their permit not more than twenty-four (24) months from the date this amendment is adopted. Those employees who are key management employees shall apply for a key management employee license as required by this chapter not more than twelve (12) months from the date hereof. Such key management employees' Employee Registration/I.D. Cards issued before the effective date of this amendment shall be deemed effective until the later of (1) issuance or denial of a key employee license under this chapter; or (2) eighteen (18) months from the date'hereof. Preexisting lawful non-conforming card clubs (1) shall be allowed to have no more than ten (10) card playing tables; (2) shall continue to pay a business license tax of twenty-five dollars ($25.00) per card table per year; (3) shall be allowed to play only Panguingue (Pan), Five Card Draw Poker (including lowball), Texas Hold'em, Double Poker, or any other game specifically included on the approved card game list on file in the Police Department; and (4) shall not be allowed to expand in area or in the number of tables operated. SECTION 2: SEVERABILITY In the event any section or portion of this ordinance shall be determined invalid or unconstitutional, such section or portion shall be deemed severable and all other sections or portions hereof shall remain in full force and effect. SECTION 3: EFFECTIVE DATE In the event this initiative is approved by the electorate, this ordinance shall be considered as adopted on upon the date that the vote is declared by the legislative body, and shall go into effect ten (10) days after that date. 60