§ 4.04.270. Cardrooms—Work permits—Revocation and suspension

A.

A work permit shall be suspended by the chief of police if he or she received an order from the division of gambling control ("division"), the state gambling control commission ("commission") or the state gambling control board ("board") directing that an individual's work permit be summarily suspended.

B.

A work permit shall be revoked by the chief of police if he or she receives an order from the division, the commission or the board of the state directing that an individual's work permit be revoked.

C.

Work permits are subject to revocation or suspension upon a determination by the chief of police that grounds exist which would justify the denial of an application for such work permit if such application were then pending, or that the work permittee has:

1.

Violated one or more provisions of this chapter;

2.

Violated any statute or ordinance relating directly to the operation of the cardroom;

3.

Been convicted of, or has engaged in conduct constituting an offense;

4.

Done any of the following:

i.

Violated any federal, state or local statute, rule or ordinance regulating gambling;

ii.

Engaged in false or misleading advertising in connection with gambling;

iii.

Failed to take reasonable steps to prevent any dishonest acts or illegal activities occurring on the gambling premises committed by any patron or any other person;

iv.

Failed to pay any monetary penalty levied pursuant to the Gambling Control Act;

v.

Denied the attorney general or chief of police access to any place within a cardroom establishment or failed to promptly produce for inspection or audit any book, record, or document requested by the attorney general or the chief of police;

vi.

Failed to comply with any condition of the license or registration under the Gambling Control Act;

vii.

Obtained a work permit by fraud, misrepresentation, concealment, or through inadvertence or mistake;

viii.

Made a misrepresentation, or failed to disclose, a material fact on the application or as part of any subsequent investigation to the attorney general or the chief of police.

D.

Except when ordered by the state, the tem of suspension of any permit shall be for the specific time determined by the chief of police but not more than 60 days.

E.

In conducting an investigation, which the chief of police may initiate on his or her initiative or in response to complaint, or making a determination hereunder, the chief of police shall gather all evidence relevant to the investigation and may issue subpoenas for the appearance of witnesses and the production of documents and other evidence. If a licensee or a person having a financial interest in the cardroom of the licensee or a manager or designated responsible employee of the licensee (unless the manager or designated responsible employee are no longer employees of the licensee) shall not respond to a subpoena served upon and directed to such person for a personal appearance or the production of documents, prima facie grounds shall exist for the suspension of the cardroom license. The determinations of the chief of police shall be valid if supported by a preponderance of the evidence.

F.

Upon determination that grounds for revocation or suspension exist, the chief of police shall notify the work permittee in writing either by personal delivery or by first class mail addressed to the work permittee at the address listed in the work permit application, or any more recent address furnished to him by the work permittee. The notice shall state that the work permit is revoked or suspended, as the case may be, the duration of any suspension, and the grounds for the action. Except when the revocation or suspension is ordered by the state, the notice shall further state that the action shall not become effective until the eleventh city business day after the date of the notice, and that during such period work permittee may file a notice of appeal to the city council with the city clerk. Pursuant to subsection G, the notice shall state that if the action is appealed to the city council, the action shall not become effective, if at all, until the council shall have heard and decided the appeal.

G.

If the work permittee fails to file a notice of appeal with the city clerk within a period of ten city business days from the date of notice of suspension or revocation, the action of the chief of police shall become final and conclusive. If a notice of appeal is timely filed, accompanied by payment of an appeal fee in an amount established by resolution of the city council, the city clerk shall schedule the matter for hearing before the city council. The city clerk shall provide at least ten city business days written notice of the date, time, and place of the hearing to the work permittee and the chief of police. When such notice has been timely filed, the suspension or revocation shall not become effective until the appeal has been completed.

H.

At the hearing before the city council the appellant and the chief of police shall have the following rights:

1.

To call and examine witnesses under oath;

2.

To introduce exhibits under oath;

3.

To cross-examine opposing witnesses under oath on any matter relevant to the issues, even though that matter was not covered in the direct examination.

4.

To impeach any witness, regardless of which party first called him to testify; and to rebut the evidence against him.

5.

If the appellant does not testify in his or her own behalf he or she may be called as if under cross-examination.

I.

The hearing need not be conducted according to technical rules of evidence. Any relevant evidence shall be admitted if it is the sort of evidence on which responsible persons are accustomed to rely in the conduct of serious affairs, regardless of the existence of any common law or statutory rule which might make improper the admission of such evidence over objection in civil actions. Hearsay evidence may be used for the purpose of supplementing or explaining other evidence, but shall not be sufficient to support a finding unless it would be admissible over objection in civil actions. The rules of privilege shall be effective to the extent that they are otherwise required by statute to be recognized at the hearing. Irrelevant and unduly repetitious evidence shall be excluded.

J.

In revoking or suspending a license or work permit pursuant to this section the chief of police shall have the power to suspend the effectiveness of such action upon reasonable conditions, and to direct that if the work permittee does not comply with such conditions, the original revocation or suspension will become effective. If the chief of police determines that any condition has been violated, the procedure for notice and hearing for revocations and suspensions shall be applicable.

K.

In addition to the power to suspend a work permit pursuant to this section, if the chief of police determines that a work permittee has engaged in such conduct as to provide reasonable cause to believe that his or her continued work in a cardroom would constitute an immediate threat of continued violations of operations requirements, fraudulent or dishonest conduct, or sale or use of narcotics on the premises, he or she may immediately suspend the work permit by providing written notice to the work permittee and the licensee of the action taken and the reason therefor. The chief of police shall conduct a hearing on the matter upon notice to the work permittee not later than five city business days from the date of the suspension. The hearing shall be in accordance with the provisions of this section. If at the conclusion of the hearing the chief of police determines that grounds exist for the suspension or revocation of the work permit, he or she may revoke or continue the suspension of the work permit. The work permittee may appeal such decision to the city council by filing a notice of appeal pursuant to subsection 4.04.270.G; provided, however, that pending the action of the city council on appeal the revocation or suspension shall remain in full force and effect.