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AMENDMENT TO TITLE 5 OF THE STOCKTON MUNICIPAL CODE RELATING TO MAXIMUM NUMBER OF CARD TABLES IN CARD ROOMS
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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 5.32.080 “Limitation on Number of Licenses and Number of Tables,” increasing the maximum number of card tables per card room from eight (8) to eleven (11).
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Summary
Staff recommends adoption of the proposed ordinance to increase the maximum number of card tables per card room, from eight (8) to eleven (11), to enable Stockton to remain competitive through expanded services (i.e., additional tables), generate employment, and increase revenue for the City. If approved, the amendment 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. As required, staff sought and obtained the State Department of Justice’s confirmation that the proposed amendment complies with all provisions of the Gambling Control Act.
DISCUSSION
Background
Business and Professions Code §19965 states, in relevant part, that, “If the ordinance in effect on July 1, 2007, provided for five to eight tables, inclusive, the amended ordinance may allow an increase of three tables.” On July 1, 2007, the City of Stockton card room ordinance, then codified at Chapter 5-007, allowed for a maximum of eight (8) card tables per card room. The present ordinance, now codified at Chapter 5.32, contains the same limitation.
Present Situation
The City initiated the subject amendment to SMC Title 5, Chapter 5.32, §5.32.080 (Limitation on Number of Licenses and Number of Tables) after hearing concerns about competitiveness with regional gambling businesses. Presently, the maximum number of card tables per card room in nearby jurisdictions is as follows: Lodi (15), Manteca (13), Tracy (8) and Ripon (5). Therefore, an amendment is proposed to allow Stockton businesses to remain competitive through expanded services (i.e., additional tables), generate employment, and increase revenue for the City.
The proposed amendment is specifically authorized by Business and Professions Code §19965 and would not change any other provisions related to card room licensing, operation, or permitting requirements contained in the SMC. As proposed, SMC §5.32.080 would be revised to allow no more than 11 card playing tables in any one card room (Attachment A - Proposed Ordinance - Redline Version).
State Business and Professions Code §19961.1 provides that any amendment to a city or county ordinance relating to gambling establishment must be submitted to the State Department of Justice (DOJ) for review and comment before the ordinance is adopted. On October 23, 2018, city staff submitted the draft amendment to the DOJ’s Bureau for Gambling Control. On November 13, 2018, the City received a response from the Bureau which states that the proposed ordinance is in compliance with the Gambling Control Act (Attachment B - DOJ Response Letter).
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