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AMENDMENT TO TITLE 5 OF THE STOCKTON MUNICIPAL CODE RELATING TO CARD ROOM HOURS OF OPERATION
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RECOMMENDATION
Staff recommends that the City Council adopt an Ordinance amending Title 5 of the Stockton Municipal Code (SMC) (Business Licenses and Regulations), Chapter 5.32, Section 5.32.290 “Card Room Regulations,” allowing card rooms to operate up to 24 hours a day.
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Summary
Effective January 1, 2018, Senate Bill 654 amended the California Business and Professions Code, allowing local jurisdictions to increase hours of operation for card rooms up to 24 hours a day (B&P Code Section 19661.05). The cities of Lodi, Manteca, Modesto and Tracy have already allowed for increased hours of operation. An amendment is proposed to allow Stockton businesses to remain competitive and provide the same services as card rooms in nearby jurisdictions. Staff recommends adoption of the proposed ordinance.
This amendment would remove the current restriction on card room hours of operation allowing card rooms to operate up to 24 hours per day unless hours of operation are specified on a Use Permit, in accordance with State Business and Professions Code section 19661.05. If approved, the amendment to the SMC Title 5 would be applicable citywide; however, it would not change any other provisions related to licensing, operation or permitting requirements contained in the SMC. The proposed code amendment was City initiated after hearing concerns from card room operators. The Police Department does not have any objections to the proposed amendment. Additionally, the Department of Justice confirmed that the proposed amendment complies with all provisions of the Gambling Control Act.
DISCUSSION
Background
On March 10, 2015, Title 5 of the SMC was amended to require card rooms to close between the hours of 5:00 a.m. and 9:00 a.m. each day. The code was amended again on September 1, 2015, to comply with Business and Professions (B&P) Code Sections 19962(a) and (b) which state that an increase of 25 percent or more in the hours of operation of a gambling establishment must be approved by voters. The amendment required card rooms to close from 4:00 a.m. to 8:00 a.m. each day.
Effective January 1, 2018, Senate Bill 654 amended the California Business and Professions Code, allowing local jurisdictions to increase hours of operation for card rooms up to 24 hours a day (B&P Code Section 19661.05).
“Notwithstanding Sections 19961 and 19962, a city, county, or city and county may amend its ordinance to increase the operating hours of a gambling establishment to up to 24 hours a day, seven days a week.”
Present Situation
The City initiated an amendment to SMC Title 5, Chapter 5.32, Section 5.32.290 Card Room Regulations (Attachment A - Ordinance Redline Version) after hearing concerns from card room operators. Currently, card rooms may not operate between the hours of 4:00 a.m. and 8:00 a.m. each day. The proposed amendment would allow card rooms to operate up to 24 hours per day unless hours of operation are specified on a Use Permit. The Cities of Lodi, Manteca, and Modesto are allowing card rooms to operate 24 hours a day, 7 days a week. The City of Tracy is allowing card rooms to operate 24 hours a day Friday through Monday. An amendment is proposed to allow Stockton businesses to remain competitive and provide the same services as card rooms in nearby jurisdictions. Additionally, the increased hours of operations will generate employment and increased revenue for the City. The code amendment is in compliance with the recently amended B&P Code Section 19661.05. and would not change any other provisions related to licensing, operation, or permitting requirements contained in the SMC.
State Business and Professions Code section 19961.1 provides that any amendment to a city or county ordinance relating to gambling establishment must be submitted to the Department of Justice (DOJ) for review and comment before the ordinance is adopted. On May 14, 2018, city staff submitted the draft amendment to the DOJ’s Bureau for Gambling Control. On May 22, 2018, the City received a response from the Bureau which states that the proposed ordinance is in compliance with all applicable provisions of the Gambling Control Act (Attachment B - DOJ Response Letter).
Application referrals for the proposed Code Amendment were sent to various City departments, including the Police Department, and the City Attorney’s Office. To date, no objections have been raised regarding the proposed Code Amendment.
There are currently three card rooms operating in the City that would be affected by the proposed code amendment; The Cameo Club, located at 552 Benjamin Holt Drive, as well as Kings Card Club and Delta Casino co-located at 6111 West Lane. SMC Section 5.32.080 limits the number of card rooms in the city to no more than four.
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 the Code Amendment.
Attachment A - Proposed Ordinance Redline Version
Attachment B - DOJ Response Letter