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AMENDMENT TO TITLE 5, CHAPTER 5.32 OF THE STOCKTON MUNICIPAL CODE RELATED TO CARD ROOMS
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RECOMMENDATION
Staff recommends that the City Council adopt an Ordinance amending Title 5, Chapter 5.32 of the Stockton Municipal Code related to the number of gambling tables allowed in a licensed card room.
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Summary
Staff recommends adoption of the proposed ordinance which would align the SMC with the recent enactment of California Business and Professions Code (BPC) section 19961.07 that became effective January 1, 2023. If approved, the amendment would allow additional tables over time consistent with state law. The proposed amendment was City initiated by the Council Legislation/Environmental Committee (Committee) after hearing from card room operators. As required, staff sought and obtained the State Department of Justice’s confirmation that the proposed amendments comply with all the provisions of the Gambling Control Act.
DISCUSSION
Background
Since 2019, the SMC has limited the number of card rooms operating in the City at any one time to no more than four, and no more than eleven card playing tables in any one card room. Currently, there are two card rooms licensed by and operating in the City - Kings Card Room and West Lane Card Room. Both card room operators have eleven Icard tables each, the current maximum allowed under SMC section 5.32.080.
In 2023, Governor Newsom signed AB 341 into law. AB 341 added Section 19961.07 to the BPC (Attachment A), which allows cities, under specified conditions, to amend their ordinances to increase the number of gambling tables operating in a gambling establishment, so long as the: (1) gambling establishment operates fewer than 20 gambling tables, and (2) maximum number of additional tables is capped at 10 tables above the number of tables operating at the gambling establishment on January 1, 2023. Additionally, the statute specifies a maximum of 2 additional tables may be added by the gambling establishment within the first year after the ordinance takes effect, and up to 2 additional tables every four years thereafter, until the limit of 10 additional tables is reached.
On August 28, 2024, the changes enacted by AB 341 were presented to the Committee. Subsequently, the Committee directed staff to draft proposed amendments to the SMC that would allow the licensed card rooms operating in the city to expand the number of card tables as allowed by AB 341.
Staff presented the proposed amendments to the Committee at its September 18, 2024, meeting. In order to bring SMC in alignment with State Law, the Administrative Services Department, with the support of Stockton Police Department and Community Development, drafted and presented revisions to SMC Section 5.32.080, reflected in Attachment B (redline).
The Committee subsequently approved a motion forwarding a recommendation to the full Council that the proposed amendments be adopted.
Present Situation
California Business and Professions Code section 19961.1 requires that all ordinances relating to gambling establishments or the Gambling Control Act be submitted to the department (the State Bureau of Gambling Control, “Bureau”) for review and comment before adoption by the city. Following Committee approval at the September meeting, the City submitted the proposed changes for review in accordance with state law.
In January of 2025, the City received confirmation of compliance from the Bureau (Attachment C) and staff now presents the approved language to the full council for consideration and adoption.
If approved, the code revisions would be effective thirty (30) days after adoption in compliance with Charter Section 507 and Administrative Services staff will provide notice and information to both card room license holders regarding the changes.
Environmental Clearance
The proposed SMC amendment is exempt from the California Environmental Quality Act (CEQA) under the “general rule” that CEQA applies only to projects that have the potential for causing significant environmental effects, as specified in Section 15061(b)(3). Approval of the subject amendments constitutes an administrative action that will not result in direct or indirect physical changes in the environment and any future projects that would rely on this amendment will require further case-specific environmental review under CEQA.
FINANCIAL SUMMARY
There is no anticipated financial impact to the City as a result of this Code Amendment.
Attachment A - CA Bus Prof Code 19961.07 - Card Room Tables
Attachment B - SMC Section 5.32.080 - Proposed Ordinance (Redline)
Attachment C - Bureau of Gambling Control Response