§ 4.04.200. Cardrooms—License transferability

A.

Except as otherwise provided in this section, no transfer or assignment of any cardroom license issued by the city, nor stock in any licensed corporation, nor interest in any licensed partnership or limited liability company, nor beneficial or remainderman interest in any licensed trust nor any direct or indirect financial interest in a cardroom, will be permitted for any reason. The precluded transfers of a cardroom license include the sale, assignment, transfer or conveyance of any interest in a license or of any corporate licensee, or any right or interest therein or thereunder, nor is transfer or assignment permitted to occur by operation by law, testamentary or intestate succession, trust relationship, bankruptcy proceedings, contractual relationship, reclamation or repossession.

B.

Any qualified transferor may transfer a cardroom license, the stock of a corporate licensee, a membership interest in a limited liability company licensee, a partnership interest in a partnership license to a permitted transferee of a license, and only to a permitted transferee of a license.

C.

To obtain permissions for a transfer hereunder, the transferor and transferee shall file an application for transfer, similar to the application for a license, with the council, paying a nonrefundable transfer fee, in an amount established by resolution of the city council, and shall obtain the approval of the city council to the transfer. The city council shall deny the application if it determines that the proposed transferee is unqualified under section 4.04.170. The city council may deny the application if it determines that the proposed transferee has:

1.

Engaged in conduct constituting or has been convicted of any of the offenses, crimes, activities prescribed in subsection B and C of section 4.04.170.

2.

Failed to file with the application a complete copy of the application for license (and exhibits) filed by the transferee under the transfer, and a copy of the current licensee issued to the transferee pursuant to the Gambling Control Act, each of which shall be declared by the applicant under penalty of perjury to be a complete copy.

3.

Has failed to comply with one or more provisions of this chapter, or this Code, or other laws or regulations applicable to the premises, equipment, or operation of the cardroom for which the transfer of license or financial interest therein is requested.

4.

Has knowingly made one or more false statements in the application.

D.

The term "transfer of a license" as used in this section shall mean the assignment, bequest, conveyance, demise, devise, gift, grant, lease, loan, sublease or transfer of a cardroom license.

E.

The term "qualified transferor" as used in this section shall mean:

1.

A person, partnership limited liability company or corporation holding a gambling club license.

2.

A person holding stock in a corporate licensee, and/or

3.

A person having a partnership interest in a partnership license.

4.

A person holding a membership interest in a limited liability company.

F.

A "permitted transferee" is a person, partnership, limited liability company, or corporation who has been determined to be eligible under the Gambling Control Act or the provisions of this section to hold an interest in a cardroom license in the city pursuant to the laws of the state and the ordinances of the city.

G.

Any purported transfer of a cardroom license made in violation of the provisions of this section shall have no force and effect until approved by the city council in accordance with the provisions of this section. In addition, any purported transfer of a cardroom license which is made by a qualified transferor without the prior consent of the city council shall be grounds for the termination of said license by the city council unless said transfer occurs by reason of the death of qualified transferor and the transferee is the heir or devisee or trust beneficiary of the qualified transferor.