5.16.200   Pointholders - Updating of Investigations - Divestments.
   A.   All Owners and Pointholders in any Card Club shall have their background investigations updated every two (2) years. Such updating shall consist of a check by teletype to Criminal Investigation and Identification in Sacramento, California, and the filing by each Licensee, Owner or Pointholder, and partner or officer thereof, of updated financial statements.
   B.   Any person having any interest whatsoever or at all in the ownership of a Card Club, whether legal or equitable, or a trustor or trustee, or of whatsoever kind or character, who has not previously submitted to the procedure required under Section 5.16.190.C. through F., shall file, as a prerequisite to the continued holding of an ownership interest, the application to be investigated, shall pay the fee, and shall be reviewed by the City Manager and City Council as provided in that section for persons applying for new ownership interest. If the City Council denies any application, within one hundred twenty (120) days after the receipt of a notice of such denial, said person shall divest himself/herself of such ownership interest. The City Attorney may invoke appropriate civil remedies to enforce compliance.
   C.   1.   The approval of an Owner or Pointholder may be revoked by the City Council, after a hearing held not less than thirty (30) days after notice has been given to the Pointholder, if the City Council finds that:
         a.   The Attorney General of the State has suspended or revoked the Owner’s or Pointholder s registration under the Gaming Registration Act of the State, or after issuing a conditional registration, fails or refuses to issue, a valid registration; or
         b.   An Owner or Pointholder has violated, or permitted, allowed, or caused the violation of, any provision of this Chapter, any regulation issued pursuant to this Chapter, any condition of approval imposed upon the issuance of the Card Club License, or any State law or regulation relating to the operation of a Card Club; or
         c.   An Owner or Pointholder has made any fraudulent statement as to a material fact on an application form or as to any other information presented as part of the application process; or
         d.   An Owner or Pointholder is convicted of any crime involving illegal gambling or gaming activities or moral turpitude, or is convicted of a crime punishable as a felony.
      2.   The City Council, in making its decision, shall consider any mitigating factor presented by the Owner or Pointholder. The decision of the City Council shall be final.
      3.   The ownership interest shall be divested within one hundred twenty (120) days after the notice of revocation. The City Manager may extend the time to divest the ownership interest upon a showing of good faith. The City Attorney may invoke appropriate civil remedies to enforce compliance.
      4.   No person required to divest an ownership interest in a Card Club following a revocation of approval shall transfer such ownership interest to his/her spouse, child, sibling, or parent, or to his/her spouse's child, sibling or parent, without the approval of the City Council.
[Ord. No. 249, § 200, adopted 9/22/92; Ord. No. 462, Section 3, 5/9/07; amended by Ord. No. 646, § 2, adopted 12/13/23.]