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Petaluma City Zoning Code

9 Cardroom

Establishments

It is unlawful to operate a cardroom in violation of any of the following regulations:

A. Physical Arrangements:

9.010 Definitions.

As used in this chapter, the following words, phrases, and terms shall have the following meanings:

A. Cardroom. Any room open to the public for the lawful playing of cards, regardless of whether the tables, chairs, and other furniture and fixtures are temporary or permanent or at times used for other purposes.

B. Chief of Police. The Chief of Police of the City or his authorized representative.

C. City. The City of Petaluma, California.

D. Conducted. Shall include the terms “operated”, “engaged in”, “allowed”, “permitted” and “suffered” within its meaning.

E. Conviction. A plea or verdict of guilty or a conviction following a plea of nolo contendere. The record of conviction of the crime shall be conclusive evidence of the fact that the conviction occurred, but only of that fact, and the Chief of Police may inquire into the circumstances surrounding the commission of the crime for purposes of applying the provisions of this ordinance.

F. Dealer. Any individual dealing a gambling game, or who operates or manages such game or games on a premises authorized under this chapter.

G. Exempt Organization. A nonprofit society, club, fraternal, labor, or other organization having adopted bylaws, duly elected officers and/or directors, and a bona fide membership which has applied for and obtained tax exempt status as an exempt organization from the Franchise Tax Board of the State of California and the Internal Revenue Service under the Internal Revenue Code of the United States.

H. Financial Interest. Any direct or indirect interest in the management, operation, ownership, profits or revenue (gross or net) of a gaming club. A “direct financial interest” means a monetary investment in a gaming club or the premises and business enterprises directly related to it. An “indirect financial interest” means owning one percent (1%) or more of any entity, i.e., any business, corporation, partnership or trust, that in turn has a direct financial interest in a cardroom. The following are examples of indirect financial interests:

1. The stock or other securities of a corporation that owns a cardroom.

2. A partnership interest in a partnership that owns a cardroom.

3. The interests of either or both the income beneficiaries or remaindermen of a revocable or irrevocable trust that owns a cardroom or holds a financial interest in one.

4. Any lease or other rental agreement with a cardroom as a lessee or renter, the rental for which is based in any part on the profits or revenue (gross or net) of the cardroom.

5. Any loan made by a private lender to a cardroom.

6. Any other interest in the management, operation, profit, revenue (gross or net) of a cardroom.

I. Gambling. The playing, for money or chips representing money, or for any other thing of value, of those card games which are not unlawful under the laws of the State of California.

J. Gambling Licensee. Any person or persons who are currently licensed under Chapter 6.20 of the Petaluma Municipal Code.

K. Hours of operation. The hours that a cardroom may operate. A cardroom may operate 24 hours a day, seven days a week, or as authorized by the individual conditional use permit.

L. House Player. An employee engaged, financed, or paid by the licensee for the purpose of starting and/or maintaining a sufficient number of players in a card game.

M. Interested Person. Any member, stockholder, officer, director, partner, principal, associate, individual, trustee, or combination thereof holding any financial interest in a licensee, or who has the power to exercise influence over the operation of a cardroom or a licensee.

N. Legal Gaming. Any game played with cards or other similar devices for currency, check, credit or other thing of value which is not prohibited and made unlawful by Chapter 9 (commencing with Section 319) or Chapter 10 (commencing with Section 330) of Title 9 of Part 1 of the Penal Code.

O. License. The license issued under Chapter 6.20 of the Petaluma Municipal Code by the City to an applicant permitting the operation of a cardroom owned by the applicant.

P. Licensee. The individual or entity that owns a cardroom and to whom a license to operate a cardroom has been issued by the City.

Q. Manager. Anyone who represents the interest of the licensee in the operation of a cardroom, whose duties include but may not be limited to: (1) the making or changing of policy; (2) approving credit; (3) hiring or firing of employees; (4) generally exercising independent judgment in the operation of the cardroom. A manager need not have a financial interest in the cardroom. A manager must be an employee of the licensee, or if not an employee, then a person having a financial interest as a partner, a shareholder, or trustee of the cardroom (but not otherwise).

R. Organized Crime. A structured criminal syndicate composed of professional criminals who primarily rely on unlawful activity as a way of life.

S. Person. Includes individual, partnership, corporation, association, club, firm, or entity of any character whatsoever.

T. Patron Safety and Security Plan. The document which describes the methods that are implemented and qualifications of the permanent staff and use of contract personnel hired by the cardroom owners, operators, or managers to provide for the safety and security of the cardroom patrons.

U. Private Lender. Any person other than a state or federally regulated bank or savings and loan association, a credit union, any other recognized financial institution doing business with the public, that has loaned or advanced, or is obligated to loan or advance money to a cardroom if either the payment of interest or principal of such loan is based in any part on the profits or revenue (gross or net) of the cardroom, or by virtue of the loan, such person has the power to exercise influence over the operation of a cardroom.

V. Qualified Transferor. (1) a person, partnership, or corporation holding a cardroom license; (2) a person holding stock in a corporate licensee; and/or (3) a person having a partnership interest in a partnership license.

W. Registrant. Any person who has filed an application under the Registration Gambling Control Act of California (California Business and Professions Code, Subsection 19800 et seq) hereafter “Gambling Control Act”.

X. Transfer of a Financial Interest. The assignment, bequest, conveyance, demise, devise, gift, grant, lease, loan, sublease, or transfer of a financial interest in a cardroom.

Y. Transfer of a License. The assignment, bequest, conveyance, demise, gift, grant, lease, loan, sublease or transfer of a cardroom license.

Z. Wagering Limits. The minimum and maximum amount that may be used for betting purposes for any game played within the cardroom. There are no wagering limits established by this ordinance for purposes of Business and Professions Code section 19860. A minimum of two signs are to be clearly and prominently posted within the cardroom and one sign on each table where a card game is being played stating the minimum and maximum betting amount.

9.020 Zones for Cardroom Establishments.

Cardroom establishments are permitted only in the commercial zones C1, C2, MU1A, MU1B, MU2 and BP as identified by the Zoning Ordinance. No such establishment shall be permitted in any area outside of one of these commercial zones.

9.030 Conditional Use Permit Required.

It shall be unlawful for any person to establish or operate, or cause or permit to be operated, any cardroom establishment without first obtaining a conditional use permit as defined and set forth in Section 24.060 of the Petaluma Zoning Ordinance. Such permit shall not be denied on the basis that the business to be established is a cardroom establishment, if the establishment is in conformance with the requirements of this Chapter. (Ord. 2811 § 4, 2022.)

9.040 Permit Application.

A. Any person, association, partnership, corporation, or other entity desiring to obtain a cardroom establishment conditional use permit shall file an application with the Community Development Department on a form provided by the Director. The application shall be accompanied by a nonrefundable application processing fee in the amount established by City Council resolution.

B. The application for a conditional use permit shall contain the following information:

1. The name, address, and telephone number of the applicant. If the applicant is a corporation, the applicant shall set forth the name of the corporation exactly as shown in its article of incorporation, the date and place of incorporation, the names and addresses of the officers, directors, and each stockholder owning more than 10% of the stock of the corporation. If the applicant is a partnership, the application shall set forth the name and residence address of each of the partners, including limited partners. If one or more of the partners is a corporation, the provision of this chapter pertaining to a corporate applicant shall apply. The applicant corporation or partnership shall designate one of its officers or general partners to act as its responsible manager officer.

2. Name, address and telephone number of the person who shall manage and operate the establishment for which the permit is requested. The name and address of a person authorized to accept service of legal notices.

3. The proposed business name of the cardroom establishment and description of the type of games to be played.

4. Street address of the proposed cardroom establishment and the assessor parcel number for the property.

5. A plot plan for the property depicting the location of the building housing the cardroom establishment on the property.

6. Any other information reasonably necessary to accomplish the purposes of Chapter 9.

7. The proposed and existing hours of operation shall be listed in an application for a new or amended conditional use permit.

8. A Patron Safety and Security Plan shall be prepared that includes but is not limited to, the periods of time and staffing levels for security personnel, duties, responsibilities and qualifications of security staff for review by the Chief of Police prior to scheduling the Conditional Use Permit before the Planning Commission.

9. If pertinent to the new or amended conditional use permit application, wagering limits for the different games may be requested by either the Police or Community Development Departments.

C. Referral to Other City Departments. The Director of the Community Development Department may refer the application to other City departments to determine whether the premises where the cardroom establishment will be located complies with the City’s building, health, zoning and fire ordinances or other applicable ordinances or laws. City departments may conduct an inspection of the premises to determine compliance with the ordinances and laws they administer.

D. Action on Application. Notice and public hearing requirements shall be as set forth in Section 24.060 of the Petaluma Zoning Ordinance pertaining to conditional use permits. (Ord. 2811 § 4, 2022.)

9.050 Grounds for Conditional Use Permit Denial/Revocation.

A. The Planning Commission shall grant the conditional use permit unless it is determined from a consideration of the application, City inspection of the premises, or other pertinent information, that:

1. Information contained in the application or supplemental information requested from the applicant is false in any material detail.

2. The proposed location of the cardroom business would not comply with the requirements of Section 9.090.

3. The operation of the cardroom business is or would be in violation of one or more provisions of Chapter 9 and Section 24.060.

4. The premises where the cardroom business is or will be located does not comply with all applicable laws, including, but not limited to, the City’s building, health, zoning and fire ordinances.

5. A conditional use permit to operate the cardroom establishment has been issued to the applicant, a partner of the applicant, or a stockholder of the applicant which stockholder owns more than 10% of the applicant’s corporate stock, which conditional use permit has been suspended and the period of suspension has not yet ended.

6. The proposed location or cardroom proposal would be inconsistent with the considerations described in Section 24.060(E).

7. The Patron Safety and Security Plan has not been submitted or has not been approved by the Police Department.

8. Wagering limits were not submitted, if pertinent to the conditional use permit application.

B. Notice of Denial. Notice of conditional use permit denial shall be in writing and shall state the grounds therefore. Notice shall be personally served on the permit applicant or mailed to his address listed on the application form.

C. Suspension or Revocation. A cardroom conditional use permit may be suspended for up to one year or revoked for any of the reasons specified as grounds for conditional use permit denial in Section 9.050 (A) (1-8) above.

D. Notice of Intention to Suspend or Revoke. Notice of intention to suspend or revoke shall be in writing and shall state the grounds therefore. Any suspension or revocation procedure shall be done as specified in Section 24.060(G) of the Petaluma Zoning Ordinance. (Ord. 2811 § 4, 2022.)

9.052 Conditional Use Permit Conditions.

The Director of Planning may recommend conditioning the issuance of a cardroom conditional use permit by imposing reasonable conditions to insure compliance with the provisions of Chapter 9, and other sections of the Petaluma Zoning Ordinance and Municipal Code. Cardroom conditional use permits shall be subject to annual review by the Planning Commission.

9.054 Conditional Use Permit Valid for Specified Location/Establishment/Permittee.

Each permit issued pursuant to Chapter 9 is only valid:

A. For the permittee specified in the conditional use permit application.

B. For the business name for the cardroom establishment listed in the conditional use permit application.

C. The specific type of establishment described in the conditional use permit application.

D. The specified location described in the conditional use permit.

E. For the specified hours of operation as authorized in the approved Conditional Use Permit.

F. When a Patron Safety and Security Plan has been submitted and reviewed and approved by the Police Department.

9.056 Sale or Transfer of Business.

A. No conditional use permit issued pursuant to this article may be assigned or transferred without the prior written consideration and approval of the Police Chief and Community Development Director. The applicant shall apply for a transfer on a form provided by the Community Development Director and shall pay a nonrefundable application processing fee in the amount established by City Council resolution. Consideration of the sale or transfer shall be done in accordance with conditional use permit procedures set forth in Section 24.060 of the Zoning Ordinance with the exception of Section 24.060(J) pertaining to transfer rights.

B. Transfer of partnership or corporate ownership. An application for approval of a transfer of a conditional use permit shall be required prior to any change in an interest in a partnership or ownership of ten percent (10%) or more of the stock of a corporation to any person not listed on the application filed by said applicant pursuant to Section 9.040.

C. An application for transfer of a cardroom conditional use permit may be denied for any of the grounds specified for denial of an original conditional use permit application in section 9.050. Procedures for notice of denial of a transfer and appeal thereof shall be identical to those procedures for denial of a conditional use permit application specified in Section 24.100. (Ord. 2811 § 4, 2022.)

9.058 New Conditional Use Permit Required.

A new conditional use permit is required in any of the following situations:

A. Prior to any change in the location of the cardroom establishment;

B. Prior to the conversion of any existing cardroom establishment to any other type of cardroom establishment as described herein;

C. Upon receiving approval from the Finance Department regarding a proposed name change, the Community Development Department may approve the new name. No change in ownership, location, size, operation and/or intensification of use can occur with a name change proposal;

D. Prior to the enlargement or expansion of any existing cardroom including but not limited to physical expansion of the facility or expansion of the nature of the business, e.g., hours of operation, scope of activities, number of tables, etc;

E. Prior to any change in the hours of operation, a conditional use permit application shall be submitted and approved pursuant to Section 9.040; or

F. Prior to any change to the Patron Safety and Security Plan.

9.060 License Required.

Prior to the establishment of a cardroom facility, the applicant shall obtain a license from the City of Petaluma as required by Chapter 6.20 of the Petaluma Municipal Code.

9.070 Limit on Cardrooms.

It is in the interest of the public health, safety and welfare of the City to limit the number of cardrooms operating in the City to one (1) cardroom for each fifteen thousand (15,000) persons residing in the City or four (4) cardrooms in total, whichever is less. For the purpose of determining the number of cardrooms permissible, the population is determined by the latest estimate of population made by the Department of Finance.

No application for a cardroom conditional use permit shall be accepted for filing when the maximum number of conditional use permits authorized pursuant to this Chapter have been issued and are valid. There shall be no waiting lists or priorities for persons desiring to file such applications under such circumstances.

9.080 Table Limit.

The number of tables in any cardroom licensed as of the effective date of this Ordinance shall not be increased, except that every cardroom may have up to eighteen (18) tables. No cardroom shall have more than eighteen (18) tables. A “table” is defined as an area in which a single game is played, not exceeding ten players plus a dealer.

9.090 Limit on Locations.

No cardroom shall be allowed in the following locations:

A. Within two hundred fifty feet of the exterior property limits of any public or private elementary school, junior high school, or high school;

B. Within one thousand feet of the exterior structural wall of each business or premises lawfully occupied by a cardroom, a massage establishment, or adult entertainment establishment. All distances referred to in this Chapter shall be measured in a straight line, without regard to intervening structures, from the closest exterior structural wall of each business.

9.100 Financial Disclosure.

Upon application of a conditional use permit, every applicant therefore, shall disclose the following information:

A. If the applicant is a corporation, the name of the corporation shall be set forth exactly as shown in its articles of incorporation, together with the names and residence addresses of each of its officers, directors, and each stockholder holding more than ten (10%) percent of the stock of the corporation. If the applicant is a partnership, the application shall set forth the name and residence address of each of the partners, including limited partners. If one or more of the partners is a corporation, the provisions of this Chapter pertaining to a corporate applicant shall apply. The names and addresses of every person deriving a profit, or holding any position of management or control, shall be disclosed.

B. A sale or transfer of any interest in a cardroom, which interest would be required to be reported upon application for a cardroom license, shall be reported to the Chief of Police prior to such sale or transfer. The Chief of Police shall investigate any person receiving any interest in a cardroom as a result of such sale or transfer, and if such persons satisfies the requirements relating to cardroom license applicants, the Chief of Police shall give written approval to such transfer or sale. A fee as set forth in the municipal fee schedule shall be paid to the City for investigation by the Chief of Police necessitated by each such sale or transfer.

C. All indebtedness of the cardroom business exceeding one percent of the book value of the business shall be disclosed in writing to the Chief of Police within ten days after such indebtedness exists, excluding indebtedness from commercial lending institutions or trade creditors.

9.110 Operations Regulations.

It is unlawful to operate a cardroom in violation of any of the following regulations:

A. Physical Arrangements:

1. Not more than one cardroom shall be located at one address.

2. No establishment licensed as a cardroom shall operate or maintain in use more tables for the playing of legal games than the number for which the conditional use permit authorizes and for which the business license tax has been paid.

3. Legal games shall be located and conducted on what is commonly known as the street floor of the cardroom premises.

4. Legal 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 cardroom, and no wall, partition, screen, or similar structure between any main doorway into a cardroom and any gaming table shall be permitted if it interferes with such visibility, except for such other physical arrangement of a cardroom which has been approved by the Chief of Police.

5. During all hours of operation, the outside doors to the cardroom and the main doors to the gaming rooms must be unlocked and accessible to the general public.

6. Cardroom facilities may operate up to 24 hours a day, seven days a week as dictated by individual conditional use permits.

7. The legal gaming areas of the cardroom shall be separated from other activities on the premises to the satisfaction of the Chief of Police.

8. Any part and all of the cardroom shall be open to police inspection during all hours of operation.

9. The maximum number of players involved in legal gaming at any one time shall not exceed a total of the number ten (10) multiplied by the maximum number of tables the licensee is authorized to operate under the conditional use permit.

10. Any deviation in the approved Patron Safety and Security Plan requires an amended conditional use permit so that the Police and Community Development Departments can review and approve any changes. This conditional use permit amendment can be approved by the Community Development Director. However, this item may be brought to the Planning Commission for review should there be a request for a public hearing.

B. Operations Procedures. No licensee, agent, or employee of a licensee, shall:

1. Allow or permit money to be used as ante or bet in any legal game in any cardroom. Anteing or betting shall be done by using tokens, chips, or other representatives of money.

2. Loan money or permit money to be loaned, with or without security, to any persons, except to an identified house player, as a stake in any legal game.

3. Knowingly permit any person who is in a state of intoxication in any area of the premises used for legal games.

4. Permit any person under the age of twenty-one (21) years to participate in any legal game within, or to be present within, any cardroom, provided, however, that a license may establish a higher minimum age of admission if not otherwise prohibited by law.

5. Fail, neglect, or refuse to exhibit their licenses on the demand of any law enforcement officer.

C. General Requirements.

1. There shall be posted in a conspicuous place in the cardroom premises the following:

a. The minimum and maximum wagering limits, time charged, or other fee charged players for the use of the tables;

b. A set of detailed house rules applicable to the games played, which shall be posted in the form of a printed rule book;

c. A copy of the current valid Gambling License issued under the Gambling Control Act.

2. The operation of a cardroom shall be the responsibility of the licensee personally (if an individual is the licensee) or a manager or designated responsible employee of the licensee at all times.

3. The licensee shall designate the names of all such managers and designated responsible employees in the application and shall advise the Chief of Police in writing whenever any change is made.

4. The licensee personally (if an individual is the licensee) or a manager or a designated responsible employee shall be on the cardroom premises at all times during the conduct of its legal gaming operations.

5. Not later than January 1st of each calendar year, the licensee shall execute under penalty of perjury and file with the Chief of Police a declaration stating the following:

a. The minimum and maximum wagering limits, time charged, or other fee charged players for the use of the tables.

b. A set of the then current posted detailed house rules applicable to the games played.

c. That payment of the most recently issued City business tax for a cardroom has been paid.

d. Wagering limits shall be listed as part of the information that shall be addressed in annual report that is submitted to the Police Department.

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 Gambling Control Act shall be filed provided that copies of a current Gambling License shall be filed forthwith after their receipt with the Chief of Police if not obtained by the time this declaration is filed, hereunder, and each of which copies shall be declared by the registrant under penalty of perjury to be a complete copy.

9.120 State Law Violation.

The City Council declares that it is not the intention of this chapter to permit the licensing of any gaming club for the playing of any game prohibited by state law, including but not limited to those games enumerated in Section 330 of the Penal Code, which Section includes banking and percentage games.

9.130 Special Cardroom Fees Required.

The City Council may require the payment of impact fees as prescribed by Resolution upon the approval of a conditional use permit for the establishment or expansion of a cardroom.

9.140 Loans Prohibited.

No cardroom licensee, nor any other person required to disclose information under this chapter, shall loan money or any other thing of value or representing value to any player at any game in a cardroom.

9.150 Notification of Terminated Employees.

Every cardroom licensee shall notify the Chief of Police within two working days after any employee is terminated for any reason.

9.160 House Players.

A cardroom licensee, or any persons employed by a cardroom licensee, when off-duty is not required to identify themselves as a house player when playing any game in any cardroom in the City.

9.170 Incentives Prohibited.

No cardroom licensee shall furnish any alcoholic beverages to any player in a cardroom, or to any person, as an inducement to play or to continue playing. The term “incentive” means without charge to the recipient, or at a price or other consideration below that normally charged by the establishment for such item.