HomeMy WebLinkAboutMINUTES - 11281995 - C25 ORDINANCE 95-61
(Cardrooms)
The Contra Costa County Board of Supervisors ordains as follows (omitting
the parenthetical footnotes from the official text from the enacted provisions of
the County Ordinance Code) .
SECTION I. SUMMARY. This Ordinance amends section 52-3.107 to expressly
allow two additional games and other lawful games approved in advance by the
Sheriff or the Board of Supervisors, and to provide for a procedure for cardroom
licensees to apply for the playing of new proposed games. This Ordinance
amends section 52-3.307 to increase the cardroom license new application fee from
five hundred dollars ($500) to ten thousand dollars ($10,000), to make the
renewal application fee five hundred dollars ($500), and to make the fees non-
refundable. This Ordinance amends section 52-3.309 to delete the provision
regarding the use of the application fee and the return of the fee in cases of
disapproved applications. This Ordinance amends section 52-3.319 to delete the
annual license fee of five hundred dollars ($500) per table and the proration of
such a fee, and to provide that, should the Board order it, an approved license
shall not be effective and operational until approved by the involved electorate.
This Ordinance amends section 52-3.507 to delete the limitation on the number of
persons allowed at each table. This Ordinance also amends section 52-3.703 to
eliminate the requirement that an applicant for a cardroom work permit reside in
the state for one year preceding the application. This Ordinance adds section 52-
320 to do the following: to impose on cardroom licensees a monthly fee of thirteen
and one-half percent (13.5 %) of total monthly gross revenue; to retain the fee of
five hundred dollars ($500) per table for cardrooms existing and operational
before December 30, 1995; to apply the new fees to existing cardrooms that
substantially enlarge operations; to require applicants for cardroom licenses to
deposit a non-refundable sixty thousand dollars ($60,000) to be credited against
monthly fee payments; to require a minimum monthly payment of one hundred
thousand dollars ($100,000) following the first twelve months of operation by a
cardroom; to impose an additional fee of ten percent (10 %) of the total entry fees
for tournaments held in cardrooms; to require licensees to pay any and all
applicable County business license taxes concerning the non-cardroom business
operations of a cardroom; to require licensees to make monthly reports to the
County concerning gross revenue derived from a cardroom; to require licensees
to pay for a certified public accountant's review of a licensee's records at fiscal
year's end and the submittal of the accountant's report to the County; to allow
the County to audit the books, records, and accounts of licensees; to allow the
County to review cardroom licensees' tax returns (that will be confidential unless
otherwise required); to charge licensees the full cost of any audit where more
than a two percent (2 0) underpayment is found; to provide that certain failures
by licensees may lead to the suspension or revocation of a cardroom license; to
impose financial penalties against licensees for the late payments of fees; to allow
the County to pursue any legal remedies against licensees who become delinquent
in required payments; to provide that any and all fees to be paid by applicants
and licensees are non-refundable and shall not be prorated; to provide that the
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ORDINANCE NO. 95- 61
Board may specify different rates for fees if necessary to be competitive with
other jurisdictions or to be consistent with current practices in other
jurisdictions; and, to provide that, except as otherwise provided, the new fees
provisions shall be administered by the county department designated by the
County Administrator.
SECTION H. Section 52-3.107 is amended to read:
52-3.107. Prohibited types of gambling. (a) Games. Except for draw
poker, lowball, panguingue, Texas Hold'em, and double-handed poker (also
known as pai gow poker), and other games not violative of California law and
specially approved in writing and in advance by the sheriff, or, after appeal, by
the board, played in a cardroom licensed under this chapter and otherwise fully
complying with this chapter, ordinance code and law, no person shall deal, play,
carry on, open or cause to be opened, conduct or bet at or against any lottery or
game not prohibited by state law, with cards, dice, or any device, for money,
checks, credit, or other representative of value.
(b) Procedure for Game Approval. Any cardroom licensee seeking
approval of a game not expressly named in subsection (a) of this section may
submit an application to the sheriff. The application shall be in a form acceptable
to the sheriff, but shall include the name of the proposed game and a detailed
description of how the game is played. The application shall be accompanied by
an application fee of five hundred dollars ($500) . The sheriff shall review and
investigate the application to determine if the game is not violative of California
law. The review and investigation shall be completed within ten business days of
the submittal of the application, unless the sheriff notifies the applicant in
writing before the expiration of the ten business days that an additional period or
periods is necessary to complete the review and application. If the game is
determined to be not violative of California law, the sheriff shall so notify the
applicant in writing. Play of the game in the applicant's cardroom is permitted
upon the applicant's receipt of the sheriff's written notice. If the game is
violative of California law, the sheriff shall so notify the applicant in writing,
setting forth the grounds and any legal authorities in support of that conclusion.
(c) Appeal. Appeals are governed by Chapter 14-4. (Ords. 95-61; 82-
44, 77-113, 1458: § 52.2.202: prior code § 5200; Ords. 1317, 724, 142, 138, 43,
42, 41. )
SECTION III. Section 52-3.307 is amended to read:
52-3.307. Applications fee. (a) New Applications. An application fee in
the amount of ten thousand dollars ($10,000) shall accompany any new application
for a cardroom license. Such fee shall be non-refundable. A deposit is also
required under Section 52-3.320 (b) .
(b) Renewal Applications. A renewal application fee in the amount of five
hundred dollars ($500) shall accompany any renewal application for a cardroom
license. Such fee shall be non-refundable. (Ords. 95-61 , 82-44, 76-67 § 2,
1779, 1506, 1464, 1458: § 52-2.604: prior code § 5203.)
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ORDINANCE NO. 95- 61
SECTION IV. Section 52-3.309 is amended to read:
52-3.309. Sheriff investigates. The sheriff shall investigate the
application and report thereon to the board, including a recommendation for
approval or disapproval of the application, with reasons. (Ords. 95-61 , 82-44,
1779, 1464, 1458: § 52-2.606: prior code § 5204.)
SECTION V. Section 52-3.319 is amended to read:
52-3.319. License. (a) Certificate. If the board approves the application
and orders that the sheriff issue a license, and the applicant has paid all
applicable fees, the sheriff shall issue the applicant a certificate of the license,
suitable.for display. The applicant shall conspicuously display this in the
cardroom at all times. Should the board order it, an approved new license shall
not be effective and operational until approved by the involved electorate.
(b) Duration. The license is effective until revoked or suspended or until
the licensee fails to have it renewed.
(c):: Disuse Voids. A license becomes void upon a three hundred-day
absence or suspension of operations allowed by it, regardless of the reason
therefor; except that the board may, during the three hundred days or
extension(s) , extend the time by increments of not more than one hundred more
days for good cause shown. (Ords. 95-61 , 82-62 § 1, 82-44, 76-67 § 2, 1779,
1506, 1464: § 52-2.616, § 52-2.618(a); prior code § 5205.5, 5206.)
SECTION VI. Section 52-3.320 is added to read:
52-3.320. Fees. (a) Payments.
(1) Each licensee, licensed pursuant to the provisions of this chapter,
shall pay to the county thirteen and one-half percent (13.5 0) of the total monthly
gross revenue of the cardroom so licensed. Payment for any calendar month shall
be made on or before the 15th day of the succeeding calendar month. "Gross
revenue" means and includes the total amounts received from any and all revenue
derived from cardroom activities licensed pursuant to this chapter and conducted
on or within the premises.
(2) For a licensee of an existing and operational cardroom in effect before
December 30, 1995, the annual cardroom license fee paid to the county shall be
limited to five hundred dollars ($500) per table. If a cardroom existing and
operational before December 30, 1995 thereafter substantially enlarges cardroom
operations, such as having more than ten tables or adding more than fifty percent
(500) additional square footage to the cardroom activities area with more than ten
tables, and the sheriff determines that a substantial enlargement has occurred,
the fees for cardrooms commencing on or after December.30, 1995 shall apply.
(b) Deposit. In the case of a new applicant, a deposit for the first six
months license fee in the amount of sixty thousand dollars ($60,000) shall be paid
in advance to the county upon issuance of the license. The sum of ten thousand
dollars ($10,000) shall be credited each month against the payment due under
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ORDINANCE NO. 95-61
subsection (a) of this section. The advance license fees shall become the absolute
property of the county and shall not be refunded and shall not be prorated in any
manner whatsoever, and in the event of the cessation of such cardroom, whether
voluntary or involuntary, no refund of the advance fees shall be made.
(c) Subsequent Payments. Following the first twelve months of operation,
regardless of the total monthly gross revenue, the minimum monthly amount paid
by licensee to the county shall be at least one hundred thousand dollars
($100,000) .
(d) Tournaments. In the event any tournament is held at the cardroom,
licensee shall pay to the county ten percent (10%) of the total entry fees in
addition to the total monthly fee specified herein.
(e) Non-Cardroom Business. For any non-cardroom business operation
owned by the licensee and on the premises, including, but not limited to, food
and beverage service or rental of facilities, licensee shall pay to the county any
and all applicable business license taxes pursuant to Section 64-14.202 et seq. , as
may be adjusted or amended.
(f) Monthly Reports. Each licensee shall file with the county, before the
15th day of each calendar month, a reporting form under penalty of perjury and
approved by the county showing the true and correct amount of gross revenue
derived from the licensed cardroom for the preceding calendar month. Such
statement shall be accompanied by payment of the correct amount of license fee
due and owing in accordance with this section. Such sums correctly reflecting
the fees payable for the preceding month shall be accepted by the county,
subject, however, to the future right of the county to audit the matters referred
to in any such statement and to determine the correctness of the figures and the
amounts payable to the county pursuant to the provisions of subsections (g) and
(h) of this section.
(g) Accountant Review. Licensee shall arrange, at licensee's own
expense, on an annual basis, for a certified public accountant approved by the
county to audit the books, documents, records and accounts relating to the gross
revenue of the licensee at the end of the licensee's fiscal year. The report of
such accountant and all work papers utilized in the preparation of such audit
shall be submitted to the county. The county shall review the report and work
papers and may require any further information from the licensee. The county
may submit such documents and information to a second certified public
accountant for review. The expense of such second review shall be shared
equally between the county and licensee.
(h) Audits. In addition to the annual audit required in subsection (g) of
this section, the books, records and accounts of any cardroom may be audited by
the county at any time. Upon request of the county, the licensee shall provide to
the county copies of licensee's tax returns, which shall be kept confidential and
shall not be disclosed other than as necessary to carry out the purposes of this
section. In the event a county conducted audit discloses an underpayment to the
county in excess of two percent (2 %) in any one month, the full cost of the audit
shall be borne by the licensee. Any information obtained pursuant to the
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ORDINANCE NO. 95-61
provisions of this section or any statement filed by the licensee shall be deemed
confidential and shall not be subject to public inspection unless otherwise
required.
(i) Failures. Any failure or refusal of licensee to timely make and file any
required statements, or to pay any such fees when the same are due and payable
in accordance with the provisions of this chapter, or to permit inspections of such
books, records and accounts of such licensee, shall constitute full and sufficient
grounds to revoke or suspend the license as provided in this chapter. Penalties
for late payment shall be imposed as follows by the county: a twenty-five percent
(25 0) penalty for an annual license fee which is not paid within 30 days of the
due date; and, any person who fails to pay any other license fee within 30 days of
the due date shall pay interest at the rate of one and one-half percent (1.5 a) per
month, or fraction thereof, on the amount of the fees and penalties from the date
on which the license fee is delinquent until paid.
(j) Legal Remedies. The amount of any licensee fee, penalties and interest
imposed by the provisions of this chapter shall be deemed a civil debt to the
county. The county may pursue any legal remedies against licensee for the
collection of any delinquent license fee, penalties, interest, liens, and all
administrative costs incurred in connection therewith, including attorneys' fees.
(k) No Refunds. Any and all fees paid by the applicant and\or licensee
shall become the absolute property of the county and shall not be refunded to any
such applicant and\or licensee when such license is issued, and such fees shall
not be prorated in any manner whatsoever, and in the event of the cessation of
such cardroom, whether voluntary or involuntary, no refund of the advance fees
shall be made whatsoever.
(1) Different Rates. The board may specify a different rate for any of the
fees imposed under this chapter if it finds that doing so is necessary to be
competitive with other jurisdictions or to be consistent with current practices in
other jurisdictions where cardrooms operate.
(m) Except as otherwise provided, the provisions in this section shall be
administered by the county department designated by the county administrator.
(n) Notwithstanding any other provision of this chapter and except
subsections (a)(2), (e) , (i), (j) , (1) and (m) , this section does not apply, even
upon a transfer or renewal of a license, to a licensed cardroom existing and
operational before December 30, 1995, unless the cardroom's operations are
substantially enlarged on or after December 30, 1995. (Ords. 95- 61 , 82-62 § 1,
82-44, 76-67 § 2, 1779, 1506, 1464: § 52-2.616, § 52-2.618(a) : prior code §
5205.5, 5206.)
SECTION VII. Section 52-3.507 is amended to read:
52-3.507. No Minors or Drunks as Players. No person under age twenty-
one or intoxicated by alcohol and\or drug(s) shall be allowed to play at any card
table or to remain in any cardroom. (Ords. 95- 61 , 82-44, 1506, 1458: § 52-416 in
part; prior code § 5213.)
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ORDINANCE NO. 95-61
SECTION VIII. Section 52-3.703 is amended to read:
52-3.703. Application. (a) An applicant for a cardroom work permit must
be an individual human being who shall submit his verified written application to
the sheriff, including:
(1) His criminal record, if any, including arrests as well as convictions;
(2) His fingerprints and photograph; and
(3) Any other information that the sheriff may deem necessary to
determine whether a work permit should be issued.
(b) Fee. The applicant shall pay an application fee of fifty dollars, of
which the sheriff shall refund any balance unused in processing the application if
it is denied. (Ords. 95-61 , 82-44, 76-67, 1779, 1506, 1458: § 52-2.406: prior
code § 5208.)
SECTION IX. Effective Date. This ordinance becomes effective 30 days after
passage, and within 15 days after passage shall be published once with the names
of supervisors, voting for and against it in theaCyltraUfa Times a newspaper
published in this County. (Gov. Code, §§ 25123 & 25124.)
PASSED ON November 28, 1995 , by the following vote:
AYES: Supervisors Rogers, Smith, DeSaulnier, Torlakson, Bishop
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST: PHIL BATCHELOR, Clerk of
the Board and County Administrator
By:J-4 d L',
Deputy B "ard Chair
[SEAL]
6
ORDINANCE NO. 95- 61
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