HomeMy WebLinkAboutMINUTES - 06231998 - C39 TO: BOARD OF SUPERVISORS
FROM: Warren E. Rupf, Sheriff-Coroner
DATE: June 1'3, 1998
SUBJECT: Cardroom Ordinance Amendments to Comply With
Gambling Control Act
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
REQ AII�NUED ACTION
Adopt the ordinance amending the cardroom provisions of the County Ordinance
Code (Chapter 52-3, Cardrooms), introduced on June 16, 1998.
FINANCIAL IMPACT
Done.
REASONREASONB FOR R E AT N A K N
Effective January 1, 1998, the State enacted the Gambling Control Act(Bus. &
Prof. Code §§ 19800 et seq.). The State has also adopted regulations. The Act
regulates all gambling establishments, including cardrooms, in the State. Under
the Act, all gambling establishments must be licensed by the State.
In July 1998, the State will begin requiring cardroom owners to apply for State
licenses. At that time, the State will also review local government cardroom
ordinances to ensure that they comply with Business and Professions Code
section 19851. Section 19851 (a) states that the State will deny a gambling
license to any cardroom in a city or county that does not have an ordinance
governing all of the following matters:
CONTINUED ON ATTACHMENT: .AYES SIGNATURE
_RECOMMENDATION OF COUNTY ADMINISTRATOR_RECOMMENDATION OF BOARD COMMITTEE
„_,APPROVE -, OTHER.
SIGNATURE(S):
ACTION OF BOARD ON APPROVED AS RECOMMENDED OTHER_„_
VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A
TRUE AND CORRECT COPY OF AN
I_UNA.NIMOUS(ABSENT--) ACTION TAKEN AND ENTERED ON THE
AYES: NOES: MINUTES OF THE BOARD OF
ABSENT. ABSTAIN: SUPERVISORS ON THE DATE SHOWN
ATTESTED JUN 2 eA 1958
PHIL BATCHELOR,CLERK OF THE
BOARD OF SUPERVISORS AND
COUNTY ADMINISTRATOR
BY: {mss f
DEPUTYt
Orifi Sheriff-Coroner V
M County Administrator
Clerk,Board of Supervisors
County Counsel
"('I) The Fours of operation of gambling establishments.
(2) Patron security and safety in and around the gambling establishments.
(3)The location of gambling establishments.
(4) Wagering limits in gambling establishments.
(5) The number of gambling tables in each gambling establishment and in
the jurisdiction.„
The proposed revisions to the cardroom provisions are primarily related to
compliance with the Gambling Control Act.
Fees
In the near future, the Sheriff's Office intends to propose new cardroom-related
fees to the Board.
CONSEQUENCES OF NEGATIVE ACTION
The failure to adopt modifications to the County cardroom provisions may result
in the State's denial of licenses to cardrooms currently operatingin the
unincorporated area of the County.
ORDINANCE 98-28
(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 52-3.113 to recognize the
applicability of state law to cardroom licenses and work permits. This Ordinance
amends section 52-3.305 to delete arrest information from cardroom license
applications, and to require cardroom license applications to include descriptions of
proposed cardroom security measures and the status of the applicant's state gambling
license or application. This Ordinance amends section 52-3.315 to require the Board to
make the following additional findings before approving a cardroom license: that the
applicant has a valid state gambling license; that the applicant has made provision for
cardroom security; and that all applicable zoning and land use requirements of the
County Ordinance Code have been satisfied. This Ordinance amends section 52-3.317
to allow the Board to impose conditions on licenses based on public health and safety
considerations and to impose conditions related to cardroom security. This Ordinance
amends section 52-3.320 to refine what it means to substantially enlarge cardroom
operations, consistent with other Ordinance amendments, and to make some
clarifications re no refunds. This Ordinance amends section 52-3.501 to reflect that
article 52-3.5 sets forth cardroom rules. This Ordinance amends section 52-3.505 to
require the licensee to safely keep the player's winnings upon the player's written
authorization, to authorize licensees to extend credit for gambling purposes to any
player, to set forth the hours of cardroom operations, to prohibit the serving of alcoholic
beverages during certain hours, to establish table stakes as a wagering limit, to require
the licensee to post signs showing wagering limits, to delete the requirement that the
Sheriff issue identification badges, to require Sheriff approval of identification badges,
and to require the licensee to notify the Sheriff's Office three times a year about the
employment and termination of cardroom employees. This Ordinance amends section
52-3.509 as follows: to delete the requirement that card tables and players be visible
from the front door; to add the requirement that the layout of the cardroom may not
hinder law enforcement surveillance and the enforcement of the law; to delete the
authority for an unlimited number of tables; to add a limit of sixteen tables, except that
up to nineteen tables may be authorized on a temporary basis for tournaments or
special events authorized by the state. This Ordinance adds section 52-3.511 to
impose responsibility on the licensee for patron security and safety in and around the
cardroom, to require the licensee to maintain comprehensive liability insurance, to
require the licensee to furnish the County with evidence of such insurance coverage,
and to authorize the Sheriff to require the licensee to take additional security steps.
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ORDINANCE NO. 98-28
This Ordinance amends section 52-3.703 to delete arrest information from cardroom
work permit applications, to require the Sheriffs Office to notify the state when
applications are received, and to prohibit the issuance of a work permit if the state
objects. This Ordinance amends section 52-3.707 to set forth specific grounds for
disqualifying applicants for cardroom work permits. This Ordinance amends section 52-
3.708 to require the renewal of cardroom work permits to follow a set procedure. This
Ordinance amends section 52-3.901 to state that cardroom licenses are immediately
suspended and revoked upon notification by the state that the person's state gambling
license has expired, or been suspended or revoked. This Ordinance amends section
52-3.903 to state that cardroom work permits are suspended and revoked if the state
notifies the County to revoke the permit or the permittee becomes disqualified to hold a
state gambling license.
SECTION II. Section 52-3.113 is amended to read:
52-3.113 No vested right. Even a valid cardroom license or work permit creates
no vested property or personal right for the licensee or permittee, and is entirely subject
to this chapter and to ordinances and California law affecting the license or permit from
time to time, including new restrictions, conditions, fees, and duration of license or
permit validity. Any change required by this chapter to be noted on the license, permit,
or application, or noted in required supplementary information, constitutes a termination
of the license or permit except for the purposes of Section 52-3.905 and of paying fees.
(Ords. 98-28, 82-44: see also § 52-3.105: see Gov. C. § 9505).
SECTION 111. Section 52-3.305 is amended to read:
52-3.305 Contents. The application shall contain the following information on
the applicant(s) and all persons financially interested in the business, including those
who share in the earnings or profits and all creditors and mortgagees:
(1) True names and addresses;
(2) Criminal records, if any, including convictions:
(3) Fingerprints and photographs;
(4) A complete description andlor layout of all proposed securitymeasures, both
physical and operational, with respect to providing for the safety and security of persons
in and around the cardroom;
(5) The status of and a copy of any state gambling license held by the applicant,
and the status of and a copy of any new application or renewal application by the
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ORDINANCE NO. 98-28
applicant for a state gambling license; and
(5) Any other information required by the sheriff for his investigation. (Ords. 98-
28, 82-44, 76-67 § 2, 1779, 1506, 1454, 1458: § 52-2.604: prior code § 5203).
SECTION IV. Section 52-3.315 is amended to read:
52-3.315 Findings. The board may approve the application, and order the
sheriff to grant the license, only if it finds these facts to be true:
(1) That the applicant and all persons financially interested in the cardroom are of
good moral character and that none has been convicted of a felony, or of a
misdemeanor involving theft or fraud or other dishonesty;
(2) That the premises are not near a school or playground, or recreational facility
frequented by minors, and that the cardroom will not be detrimental to the welfare of
minors;
(3) That the design or location of the proposed cardroom will not hinder law
enforcement officials in surveillance of cardroom activities, or in enforcement of this
chapter or of state laws regulating gambling;
(4) That the proposed cardroom will conform with the character of other land
uses in the vicinity and will not be detrimental to the health, safety, and general welfare
of, or create a nuisance or law enforcement problems within, the neighborhood or
community;
(5)That the applicant holds a valid and current state gambling license;
(5) That the applicant has made provision for the safety and security of persons
in and around the cardroom;
(7) That all applicable zoning and land use requirements of this code have been
satisfied; and
(8) That all requirements of this chapter have been satisfied. (Ords. 98-28, 82-
44, 1851, 1508: § 52-2.612(a): prior code § 5205).
SECTION V. Section 52-3.317 is amended to read:
52-3.317 Conditions. The board may require that the license be conditioned, as
necessary to effectuate this chapter or the public health and safety, including, but not
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ORDINANCE NO. 98-28
limited to, conditions as to:
(1) Location, design, and lighting of cardroom, and number of tables;
(2) Hours of operation;
(3) Parking location, design and conditions;
(4) Related business on the premises; and
(5) The safety and security of persons in and around the cardroom. (Ords. 98-
28, 82-44, 1861, 1508: § 52-2.612(b): prior code § 5205: see also § 5 -3.5015 ff).
SECTION VI, Section 52-3.320 is amended 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 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 per table. If a cardroom existing and operational before
December 30, 1995 thereafter substantially enlarges cardroom operations, within
County limits on cardrooms, by adding more than fifty percent additional tables or
square footage to the cardroom activities area, 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 shall be paid in advance to the
county upon issuance of the license. The sum of ten thousand dollars shall be credited
each month against the payment due under 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.
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ORDINANCE NO. 98-28
(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.'
(d) Tournaments. In the event any tournament is held at the cardroom,
licensee shall pay to the county ten percent of the total entry fees in addition to the total
monthly fee specified herein.
(e) Noncardroom Business. For any noncardroom 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 revenueof 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 in any one month, the full cost of the audit shall be borne by the licensee. Any
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ORDINANCE NO. 98-28
information obtained pursuant to the 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 penalty for an annual license
fee which is not paid within thirty days of the due date; and, any person who fails to pay
any other license fee within thirty days of the due date shall pay interest at the rate of
one and one-half percent 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.
0) 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 an applicant and/or licensee shall
become the absolute property of the county and shall not be refunded to any such
applicant and/or licensee whether or not 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. 98-28, 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).
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ORDINANCE NO. 98-28
SECTIQN VII. Article 52-3.5 is amended to read:
Article 52-3.5
Cardroom Rules
SECTION Vill. Section 52-3.541 is amended to read:
52-3.501 General. The rules in this article apply to all present and future
cardrooms and cardroom licenses and licensees, whether or not recited in the licenses,
except those partly or wholly exempted under Section 52-3.115. (Ords. 98-28, 82-44).
SEC_" l�f►N IX. Section 52-3.505 is amended to read:
52-3.505 Operations. (a) Deposit Winnings. The licensee shall have a check
promptly issued to any player so requesting in exchange for his winnings, but the player
may instead in writing require the licensee to safely keep the player's winnings for him
for an agreed reasonable time.
(b) Extension of Credit. The licensee may extend credit for gambling purposes to
any player.
(c) Hours of Operation; Alcoholic Beverages Restrictions. Cardrooms may be
open twenty-four hours a day, seven days a week. No alcoholic beverages may be
served or consumed at a cardroom between 2:00 a.m. and 6:00 a.m. The licensee shall
conspicuously display signs in the cardroom stating these matters.
(d) Wagering Limits. No more than "table stakes" shall be allowed in any game
at any cardroom. "Table stakes" means that no wager in any hand shall exceed the
amount that the player has in front of him or her at the start of the hand'. The licensee
shall conspicuously display signs in the cardroom stating that no more than table stakes
shall be allowed in any game. If further limits on wagering apply to any table, the
licensee shall conspicuously display a sign at or next to the table stating the further
wagering limits.
(e) Licensee Responsible. The licensee is responsible that the operation and
playing are strictly in accordance with state law and this chapter.
(f) Name Badges. Every person who has or should have a work permit or a
cardroom license shall, while at the card tables, always wear at about chest height on
the outermost garment an identification badge in a form approved by the sheriff, always
plainly readable and in good condition.
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ORDINANCE NO. 98-28
(g) Signs. The licensee shall post one or more signs, plainly visible throughout
the cardroom, stating as many of the regulations of this chapter as the sheriff may
require.
(h) Every cardroom must be open to official inspection at all times for purposes
enforcing this chapter.
(i) Every cardroom licensee shall, within seventy-two hours of the effective date
of the ordinance codified in this section, file with the sheriff a written list stating the
name and cardroom work permit number of every cardroom employee employed at
each licensed premises. During the first week of February, June, and October of each
year, the licensee shall notify the sheriff in writing of the name and cardroom work
permit number of each cardroom employee employed or terminated at each licensed
premises during any portion of the previous four months.
(Ords. 98-28, 89-34, 82-44, 1506, 1548: § 52-2.416 in part: prior code § 5213).
SECTION X. Section 52-3.509 is amended to read:
52-3.509 Location, tables. (a) One Cardroom. Only one cardroom may be
located at one address or in one premises.
(b) Location. The layout of the cardroom may not hinder law enforcement
officials in surveillance of cardroom activities or in enforcement of this chapter or state
law regulating gambling.
(c) Tables. No cardroom shall have more than sixteen tables, except that,
subject to the approval of the sheriff, upon recommendation by the fire chief, a
cardroom may have up to nineteen tables on a temporary basis for a tournament or
special event, if the tournament or special event is authorized by the state. (Ords. 98-
28, 82-44, 1506, 1458: § 52-2.416 in part: prior code § 5213).
SECTIONXI. Section 52-3.511 is added to read:
52-3.511 Safety and Security. Pursuant to Business and Professions Code
section 19851 (a) (2), each licensee shall be responsible for patron security and safety
in and around the cardroom. As to cardroom operations, each licensee shall maintain
comprehensive liability coverage for damages due to bodily injury, sickness or disease,
or death to any person, and damage to property, including the loss thereof, arising out
of each accident or occurrence. Each licensee shall furnish the County'evidence of
such insurance coverage. The sheriff may require a licensee to take additional safety
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ORDINANCE NO. 98-28
and security steps, including, but not limited to, the use of security guards, increased
lighting, and decreased hours of operation. (Ord, 98-28.)
SECTIQN XII. 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 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.
(c) Upon receipt of a written application for a work permit, the sheriff shall notify
the state of the application. No work permit shall be issued if the state informs the
sheriff that it has an objection to the issuance of a work permit, (Ords. 98-28, 95-61, 82-
44, 76-67, 1779, 1506, 1458: § 52-2.406: prior code § 5208).
SECTION XIII. Section 52-3.707 is amended to read:
52-3.707 Action. (a) Cause. The sheriff may deny the initial or renewal
application only if, after an investigation, the sheriff concludes that the applicant is
disqualified for any of the following reasons:
(1) Conviction of the applicant for any crime punishable as a felony.
(2) Conviction of the applicant for any misdemeanor involving dishonesty or
moral turpitude within the ten-year period immediately preceding the submission of the
application, unless the applicant has been granted relief pursuant to Penal Code
sections 1203.4, 1203.4x, or 1203.45.
(3)Association of the applicant with criminal profiteering activity or organized
crime, as defined by Penal Code section 186.2.
(4) Contumacious defiance by the applicant of any legislative investigatory body,
or other official investigatory body of any state or of the United States, when that body is
engaged in the investigation of crimes relating to gambling, official corruption related to
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ORDINANCE NO. 98-28
gambling activities, or criminal profiteering activity or organized crime, as defined by
Penal Code section 186.2.
(5) The applicant is disqualified from holding a state gambling license.
(6) The state objects to the issuance of a work permit to the applicant.
(7) The applicant is not of good moral character.
(b) Issue. {otherwise, the sheriff may issue a twelve-month nontransferable
permit to the applicant with such conditions noted as the sheriff believes conduce to
effectuating this chapter.
(c) Fee. Each permittee shall immediately pay a nonrefundable'nonproratable
permit fee of fifty dollars.
(d)Appeal. Appeals are governed by Chapter 14-4. (Ords. 98-28, 82-62 § 3, 82-
44, 1779, 1458: § 52-2.408, § 52-2.410: prior code §§ 5209, 5210).
SECTION KIV. Section 52-3.708 is amended to read:
52-3.708 Renewal. (a)Application. Before the end of the eleventh month of the
permit's life, the permittee may apply to the sheriff to renew it.
(b) Form, Fee, Procedure. The procedure shall be that in Sections 52-3.321(c),
52-3.703, and 52-3.707, except that:
(1) The application fee is twenty-five dollars, any unused'remainder of
which is refundable only if the renewal is denied;
(2) No fee is due for issuing the permit; and
(3) Action is by the sheriff rather than the board. (Ords. 98-28, 82-62 §
4).
SECTION XV, Section 52-3.901 is amended to read:
52-3.901 Cardroom license. (a) Notice. The board may suspend or revoke a
cardroom license at any time, after giving the licensee(s) reasonable notice of
opportunity to be heard in defense against noticed charges.
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ORDINANCE NO. 98-28
(b) Upon notification to the county from the state that a licensee's state gambling
license has expired, or been suspended or revoked, the licensee's license under this
chapter is immediately suspended and shall be revoked.
(c) Cause. Any violation of requirements in, or pursuant to, this chapter is cause
for suspension or revocation.
(d) Effect. Neither suspension nor revocation affects any fee already due or paid,
nor does it extend the life of any license. A revoked license is voided, and cannot be
transferred, reinstated, renewed or re-issued; but a suspended license may be
reinstated as a valid license upon such conditions as the board may impose, in its
discretion under this chapter, including penalty fees not exceeding ordinary fees for a
new license. Such board actions are additional to, and not a limitationon, other civil
and criminal proceedings under this code or state law. (Ords. 98-28, 82-44, 1458: § 52-
2.414: prior code § 5211: see also Chaps. 14-6, 14-8 & 51-4).
SECTION XVI. Section 52-3.9013 is amended to read:
52-3.903 Work permits. Any cardroom work permit may be suspended or
revoked, like a cardroom license under Section 52-3.941, except that the action is by
the sheriff and the cause must be a violation related to that work permit. A cardroom
work permit is suspended and shall be revoked if the state notifies the county to revoke
the permit or a permittee becomes disqualified to hold a state gambling license. (Ords.
98-28, 82-44, 1458: § 52-2.412: prior code § 5211).
-ECTION XViL Effective ante,. 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 the Contra Costa Times , a
newspaper published in this County. (Gov. Code §§ 25123 & 25124.)
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ORDINANCE NO. 98-28
PASSED ON June , 1998 , by the fallowing vote:
AYES: Supervisors Uilkema, Gerber, DeSaulnier, Canciamilla, Rogers
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST: PHIL BATCHELOR, Clerk
of the Board and County Administrator
Deputy ShirleyCasillas Board hair Jim Rogers
[SEAL]
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ORDINANCE NO. 98-28