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HomeMy WebLinkAboutOrdinance 5684 04/19/1993 .~.. . 5684 (GENERAL) ORDINANCE NO. . AN ORDINANCE ALLOWING SOCIAL GAMES WITHIN THE CITY OF SPRINGFIELD, SUBJECT TO CONDITIONS AND RESTRICTIONS, ESTABLISHING ARTICLE XV "SOCIAL GAMES" OF THE SPRINGFIELD CODE 1965, REPEALING SECTION 5-13-5 OF THE SPRINGFIELD CODE 1965, AND AMENDING SECTIONS 8-6-6, 8-6-7 and 8-6-8 OF THE SPRINGFIELD CODE 1965, AND DECLARING AN EMERGENCY. THE CITY OF SPRINGFIELD, OREGON DOES ORDAIN AS FOLLOWS: section 1. section 5-13-5 of the Springfield Code of 1965 is hereby repealed. section 2. There is hereby added to Chapter 5 of the Springfield Code 1965 a new Article XV,[as follows: "section 5-16-1 Intent. It is the intent of this ordinance to authorize social games subject to specific conditions and restrictions in accordance with Oregon Revised Statute 167.121. Only those social games herein described shall be allowed by this ordinance. Any gambling activity carried on outside the scope of this ordinance shall be controlled and regulated by the applicable statutes found in Chapter 167 of the Oregon Revised Statutes. . section 5-16-2 Definitions. As used in sections 5-16-1 through 5-16-17, except when the context indicates otherwise, the following definitions apply: Black Jack (21). Except as may be specifically modified by this ordinance, Black Jack (21) shall be defined as set forth in "Ainslies Complete Hoyle" dated 1975, Simon and Schuster, a copy of which is located in the Reference section of the Springfield Public Library. Contest of Chance. Any contest, game, gaming scheme or gaming device in which the outcome depends in a material degree on an element of chance, notwithstanding that skill of the contestants also may be a factor. Gambling. When a person stakes or risks something of value on the outcome of a contest of chance or a future contingent event not under his or her control or influence on an agreement or understanding that he or she or someone else will receive something of value in the event of a certain outcome. "Gambling" does not include: . (1) Social games, or Page - 1 - . . . Page - 2 - (2) Bona fide business transactions valid under the law of contract for the purchase or sale at a future date of securities or commodities, and agreements to compensate for loss caused by the happening of chance, including but not limited to contracts of indemnity or guaranty and life, health or accident insurance. Gamblinq Device. Any device, machine, paraphernalia or equipment that is used or usable in the playing phases of unlawful gambling, whether it consists of gambling between persons or gambling by a person involving the playing of a machine. Amusement devices, that do not return to the operator or player anything but free additional games or play shall not be considered to be gambling devices. House. A person or business acting on his or her own behalf or the benefit of others as a regular bank throughout the game; or, a person who participates in or gambles at a social game other than as a player. Player. A person who engages in any form of gambling solely as a contestant or bettor, without receiving or becoming entitled to receive any profit therefrom other than personal gambling winnings, and without otherwise rendering any material assistance to the establishment, conduct or operation of the particular gambling activity. A person who gambles at a social game of chance on equal terms with the other participants therein is a person who does not otherwise render material assistance to the establishment, conduct or operation thereof by performing, without fee or remuneration, acts directed toward the arrangement or facilitation of the game, such as inviting persons to play, permitting the use of premises therefore and supplying cards or other equipment used therein. A person who engages in bookmaking is not a player. Person Financiallv Interested. A person financially interested shall include all persons who share in the profits of the business, on the basis of gross or net revenue, including partners, stockholders, landlords, lessors, lessees, and the owner or owners of the building, fixtures and equipment. This also includes the owner or owners of the fixtures and equipment used in the social game. Poker. Except as may be specifically modified by this ordinance, Poker shall be defined as stud Poker, Low Ball and Draw, set forth in "Ainslies Complete . Hoyle" dated 1975, Simon and Schuster, a copy of which is located in Reference Section of the Springfield Public Library. Social Game. A game involving the playing of Poker and Black Jack only, which does not include lotteries, between players in private business, private club, or place of public business or public accommodation where no house player, house bank, or house odds exist and there is no income from the operation of the social game. Social Gaming Table. Any table used or intended to be used as a card table for the playing of social games only and the use of which is available to the public. section 5-16-3 Authorized and License Reauired. Social games are authorized in Springfield. No private business, private club, or place of public business or public accommodation, by charitable, fraternal, religious or nonprofit organizations shall allow any social game on its premises without first obtaining a license from the Council. . section 5-16-4 Exemption. Social games between players conducted by charitable, fraternal, religious or nonprofit organizations are exempt from the requirements of section 5-16-5, 5-16-6, 5-16-13 and section 8-6-8 of the Springfield Code 1965. Charitable, fraternal, religious or nonprofit organizations are subject to the requirements of section 5-16-15. For purposes of this exception, nonprofit organizations means any person organized and existing for charitable, benevolent, eleemosynary, humane, philanthropic, educational, civic or other nonprofit purposes, and who is also exempt from payment of federal income taxes because of its charitable, fraternal, or religious purposes. The fact that an organization does not qualify for charitable deduction for tax purposes or that the organization is otherwise exempt from payment of federal income taxes pursuant to the internal revenue code of 1954 as amended, constitutes prima facie evidence that the organization is not a nonprofit organization. This exemption does not exempt social games in private homes or conducted by such organizations from the controls, regulations and prohibitions regarding gambling found in Chapter 167 of the Oregon Revised Statues. Section 5-16-5 License Investigation. Except for renewals, an applicant for a social game license shall submit an application which shall include: . (1) The true names and addresses and date of birth of all persons financially interested in the business. Page - 3 - . . . (2) The personal history and business experiences of such persons. (3) The past criminal record, if any, of all persons who have any financial interest in the business. (4) A $75.00 nonrefundable investigation fee for each person financially interested. (5) Fingerprints and photographs of persons financially interested in the business. section 5-16-6 criteria for Grant or Denial of Application. In addition to conforming to the requirements listed in section 5-16-5, the license shall not be granted if: (1) Any person financially interested in business has been previously convicted of a felony within the last ten years. (2) Any person financially interested in the business has been convicted of five or more misdemeanors, the last of which was within the last five years; (3) Any person financially interested in the business has been convicted of any crime involving gambling within the last five years or any person who has any financial interest in the business has forfeited bail for any crime involving gambling within the last five years; (4) Any person financially interested in business has been directly or indirectly involved in a forfeiture proceeding regarding a gambling device, as defined by state law, where such gambling device has been ordered destroyed within the last five years; (5) Any false or misleading information is supplied in the application or any information requested is omitted from the application; (6) Any person financially interested in the business has had a license in his or her name revoked or suspended three or more times by the Oregon Liquor Control commission, the last of which was in the last five years. (7) Any person financially interested in the business or any employee has violated any provision of Sections 5-16-1 through 5-16-14. Page - 4 - . . . (8) Any person financially interested in the business has committed any other conduct involving moral turpitude within the last five years. section 5-16-7 Responsibility of the Licensee. (1) Where a social game is allowed, the licensee shall have the duty to supervise the games and see that they are played strictly in accordance with this code and state law. (2) Licensee shall have the responsibility to ensure that the game is a social game, between players only, and that there are no persons dealing as house and that there is no one engaging in the game as a business or commercial enterprise. Section 5-16-8 License Not Transferable. No license shall be assignable or transferable. The addition or the substitution of a person financially interested in a licensed business shall be reported immediately to the City Manager, who shall order an investigation by the Police Department. The change shall be approved or denied by the Council. Applications for change of financial ownership shall be accompanied by a $75.00 nonrefundable investigation fee for each person financially interested. Section 5-16-9 Suspension and Revocation of License. (1) The City Manager shall suspend or revoke any social game license if after issuance of the license the City Manager finds. (a) That there has been a violation of the requirements set forth in this ordinance. (b) Any person financially interested in the business or any employee violates any provision of section 5-16-5 through 5-16-15. (c) Any person financially interested in the business commits any other conduct involving involving moral turpitude. Section 5-16-10 Suspension/Revocation/Appeal. (1) Revocation of License. The City Manager or designee, shall notify the licensee in writing that the license is to be revoked. The violations need not lead to a conviction, but must establish a reasonable doubt about the licensee's ability to perform the licensed activity. The notice shall be given at least 30 Page - 5 - . . . Page - 6 - days prior to the revocation hearing. The City Manager or designee may discontinue the revocation proceedings. A notice of the revocation shall state the reason for the revocation and inform the licensee of the provisions for Appeal. (2) Suspension of License. The City Manager or designee may suspend the license for the activity or device at once. The suspension shall take effect immediately on notice being received by the licensee, or being delivered to the licensee's business address as stated on the licensee's application for the license that is being suspended. The notice shall be mailed to the licensee and state the reason for the suspension and inform the licensee of the provisions for appeal. The City Manager or designee may continue suspension as long as the reason for the suspension exists or until a determination on appeal regarding the suspension is made. (3) (a) Appeal. Upon payment of an Appeal Fee of $300.00 an applicant whose application to the City Manager for a license has been denied or a licensee whose license has been denied renewal, has been suspended or is to be revoked may appeal in writing to the Council within 30 days after the notice of denial, suspension or revocation is mailed. The appeal shall be filed with the City Recorder and shall state: (i) (ii) The name and address of the appellant. The nature of the determination being appealed. The reason the determination is incorrect. What the correct determination of the appeal should be. (iii) (iv) (b) An appellant who fails to file such a statement within the time permitted waives his or her objections, and the appeal shall be dismissed. If a notice of revocation is appealed, the revocation does not take effect until final determination of the appeal. The Council shall hear and determine the appeal on the basis of the written statement and such additional evidence as it considers appropriate. The applicant shall be provided at least 14 days written notice of the hearing on the appeal. . (c) At the hearing, the appellant may present testimony and oral argument, personally or by counsel, and any additional evidence. The rules of evidence as used by courts of law do not apply, and the decision of the Council after the hearing is final. section 5-16-11 Requlations. No person shall operate a social game in violation of any of the following regulations and rules. . (1) Poker. There shall be a limit on the ante and any bet of $2.00, and a three-raise limit per player of $2.00 for each Poker hand or Game. No backup bets shall be allowed. Blackiack (21). There shall be a limit on any bet per hand of $5.00. No backup bets shall be allowed. The initial card to each player other than the dealer may be dealt face down. All winning bets shall be paid at odds of one-to-one, except that a player's blackjack shall be paid as posted in the Licensee's rules, but shall not exceed a payment of one and one-half to one. If both a players hand and the dealers hand have at the end of the round, the same total under a count of 21, neither hand shall win. No person shall play more than one hand at a time. Anyone with a minimum bank of $150.00 may deal and any player with a Blackjack and a minimum bank of $150.00 can assume the deal. (2) No person shall act as a "house" whether or not such person or such "house" has any connection with the establishment or place in which the social gambling is conducted. (3) Licensees holding or obtaining licenses under the provisions of sections 5-16-1 through 5-16-16, shall agree to be bound by and observe the terms, conditions and provisions of those sections and of the regulations and rules established thereby. (4) Social games conducted or operated in the City under the provisions of sections 5-16-1 through 5-16-16 shall be subject to the provisions of state law and the code and ordinances of the City. . (5) All rooms where a social game is permitted shall be open to police inspection during the hours of operation. Doors leading into the room must remain unlocked during the hours of operation. Page - 7 - . (6) (7) (8) (9) (10) . social game licenses shall be posted in an area visible to the public and available for inspection during the hours of operation. No licensee or employee shall participate in a social game or procure players, back a social game, farm out a social game, assign or sublet a social game that is otherwise lawfully permitted on the premises and in which the licensee has an interest or works. social games shall be arranged so they cannot be seen from the street or sidewalk. No person under the age of 21 years shall be permitted to participate in a social game or to enter or remain upon the premises. No charge shall be collected from a player for the privilege of participating in a social game and a player may not tip another player. No participant in a social game shall be charged a price for any consumer goods that is higher or lower than the price charged nonparticipants. (11) No person shall extend credit to any participant in a social game. (12) In a social poker game there cannot be a designated dealer. The deal of the cards must rotate in sequence between the players. (13) In the game of Black Jack (21) there must be a sign posted that states: 'social Game - Anyone can deal.' 'Players must use a minimum of two decks of cards, "shoe" from which cards must be dealt, and gaming chips.' '''Shoe'', gaming chips and cards furnished by licensee and fresh (sealed) decks of cards furnished upon request.' '$150.00 required to start the deal.' 'Any player with a Blackjack and a minimum bank of $150.00 can assume the deal.' '$5.00 bet limit per hand.' 'Each player may play only one hand.' (14) In the game of Poker there must be a sign posted that states: . 'Social Game - Anyone can deal.' 'Cards and gaming chips furnished by licensee Page - 8 - . and fresh (sealed) decks of cards furnished upon request.' '$2.00 bet limit per hand.' 'Three raise limit per player per hand.' (15) Except as specified in subsection (13) above in the Game of Black Jack (21), no person may be denied the right to deal. If a person is denied the right to deal, it shall be grounds for immediate suspension of license. (16) In the game of Blackjack (21) there shall not be less than two decks and a "shoe" shall be utilized for dealing. (17) No social game is provided for herein shall be conducted between 2:01 am and 12:01 pm notwithstanding the provision of Springfield Code section 8-6-9(2) (a) allowing certain games to operate during hours authorized to dispense alcoholic beverages. (18) No more than four (4) tables for social games shall be permitted on any premises where social games are conducted. . (19) The license or permit shall be posted in a conspicuous place upon the business premises available for inspection by the pUblic, employees and prospective employees of the business. (20) Licensees holding or obtaining licenses under the provisions of section 5-16-1 through 5-16-16 shall furnish at no cost to the players a "shoe" for a playing of Blackjack (21) and gaming chips and cards used in playing Blackjack (21) and Poker and upon request by any player shall furnish fresh (sealed) decks of cards for use by players. The Licensee may impose reasonable rules regarding the frequency with which such decks are furnished. Only "shoe" gaming chips and cards furnished by Licensee shall be utilized in social games under this Article. Section 5-16-12 Advertisinq. Signs advertising gambling, the playing of cards, advertising specific forms of card playing, enticing participants or procuring players are prohibited. Advertising of social games outside of a licensee's premises through the media or by any other means is also prohibited. . Section 5-16-13 License Fee. For each business licensed, an annual fee of $250.00 shall be required. Page - 9 - . section 5-16-14 Enforcement. Violation of this ordinance may result in criminal prosecution for violation of state gambling laws, civil enforcement through Springfield Code 1965,and administrative procedures described in this ordinance. The City may also file a civil action to recover fees unpaid or, after mailing notice via certified mail to the person responsible for the business, the City may place a lien against the real property where the business is located for the amount of the fee plus interest. The lien shall be filed with the Finance Officer and noted in the lien docket. section 5-16-15 Nonprofit Orqanizations. A charitable, fraternal, religious or nonprofit organization, as defined in section 5-16-4 may be granted a social game license at an annual fee of $25.00 if: (1) The tables are for the exclusive use of members of the society, club or fraternal organization; (2) No charge is made for participation; (3) The conduct of a cardroom is not the primary reason for existence of the society, club or fraternal organization. . section 5-16-16 Sunset. This ordinance shall lapse and be no further force and effect on July 1, 1995. section 3. section 8-6-6 of the Springfield Code 1965 is hereby amended as follows: "8-6-6 Card Rooms. Bowlinq Allevs. Pool & Billiard Rooms; Others Establishments Operatinq such Games. (1) Card rooms as referred to herein shall mean and include any private business, private club or place of accommodation in which social games as defined in Article 15 of Chapter V are conducted and all establishments whose principal business is the keeping, maintenance, furnishing facilities for, operation of or permission to operate, or the playing for a fee or any valuable consideration on the premises under its control of any card game, bOWling alley, pool playing or billiard playing; . (2) It shall be unlawful for any person to operate or maintain a bowling alley, pool room, billiards room, or card room without first obtaining a license therefore in the manner provided in this article; and (3) Notwithstanding that the operation and maintenance of the games referred to in this Page - 10 - . . . , ~ section is not the principal business of any person or establishment, any person or establishment furnishing or permitting the playing of such games or activities upon the premises for a fee shall obtain a license for the individual respective games in accordance with section 8-6-8. Section 4. section 8-6-7 of the Springfield Code 1965 is hereby amended as follows: "8-6-7 Licenses--Applications: Issuance. (1) Any person desiring a license for the operation of any billiard room, pool room, card room or bowling alley shall make applications therefore to the city recorder, and upon payment of the annual fee mentioned in the following section, and approval of the application by the council, such license shall be issued. (2) The licenses for the operation of games by any establishment provided in section 8-6-6(3) (i.e., not the principal business of the establishment) shall also require payment of the fees provided in 8-6-8. (3) Any applicant not qualified under Springfield Code Section 5-13-3 shall not be licensed to operate social games in a card room." Section 5. section 8-6-8 of the Springfield Code 1965 is hereby amended as follows: "8-6-8 Bowlinq Allev: Pool Rooms: Billiard Rooms: Card Rooms--Licenses-Fees. The license fee for the respective games enumerated in section 8-6-6 of this code, and to operate a billiard room, pool room, card room, or bowling alley, shall be as follows: Bowling Alleys Pool and Billiard Tables/Card Tables $ 6.00 per alley per year 30.00 a year 25.00 first table 20.00 second table 15.00 third table 10.00 fourth table 5.00 each additional table all per table per year Card Tables (social games conducted) 500 per table (limit of 4 tables) Page - 11 - . . . Section 6. It is hereby found and determined that matters pertaining to social games within the City of Springfield are matters affecting the welfare of the City of Springfield and that an emergency is therefore found and declared to exist. The provisions of Article 5-16-3, 5-16-4, 5-16-5, 5-16-6, 5-16-7, 5-16-8, 5-16-9, 5-16-10, 5-16-13, and 5-16-15 under Section 2 of this ordinance and sections 3, 4, and 5 of this ordinance shall be effective July 1, 1993. The remaining provisions of this ordinance shall take effect May 1, 1993. ADOPTED by the Common Council of the City of Springfield, this 19th day of April , 1993 by a vote of 4 for and 1 against. day of APPROVED by the Mayor of the City of Springfield this Apri 1 , 1993. 19th g#7/!~ Mayor ATT}fT: '.. ~~ City Recorder REVIEWED & APPROVED AS TO FORM jQ~e.~\~ J \_"IlA\~ DATE: ~?~ \~, \C\~~ OFFICE OF CITY ATTORNEY CITY OF SPRINGFIELD Page - 12 -