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Santa Clara County, CA June 8, 2010 Election
Measure K
Cardroom Measure
City of San Jose

Ordinance - Majority Approval Required

Pass: 109,197 / 76.04% Yes votes ...... 34,412 / 23.96% No votes

See Also: Index of all Measures

Results as of Jun 23 2:21pm, 100.0% of Precincts Reporting (549/549)
Information shown below: Yes/No Meaning | Impartial Analysis | Arguments | Full Text

Shalllan [sic] ordinance be adopted to increase the Cardroom Tax rate on gross revenues from 13% to 15%, increase the number of cardroom tables by 18, permit any card game authorized under State law consistent with City regulations and betting limits as authorized under State law, all subject to City audit and oversight?
YES
NO

Meaning of Voting Yes/No
A YES vote on this measure means:
A "yes" vote is a vote to approve the increase in the Cardroom Tax rate on gross revenues from 13% to 15% and to approve revisions to the Municipal Code to expand gambling in the City as described above.

A NO vote on this measure means:
A "no" vote is a vote to maintain the existing 13% Cardroom Tax rate on gross revenues and to make no changes to the gambling limits currently specified in the Municipal Code.

Impartial Analysis from the City Attorney
This measure, if approved by a majority of the voters, will enact an ordinance amending the San Jose Municipal Code to increase the Cardroom Tax and to revise certain restrictions on gambling in the City as described below.

The proposed ordinance amends Chapter 4.77 to increase the Cardroom Tax rate on gross revenues from 13% to 15%. Under the proposed ordinance, the City Council may amend or repeal Chapter 4.77, but may not increase the tax rate without voter approval.

Gambling in the City is subject to State law and the City's Municipal Code. Under Title 16 of the Code, expansion of gambling in the City, as defined, requires voter approval. The proposed ordinance amends Title 16 to: (1) increase the number of tables allowed in the City from 80 to 98; (2) increase the number of tables allowed at each cardroom from 40 to 49; (3) remove the limit on the number of permissible card games by permitting any card game allowed under State law consistent with City regulations; and (4) increase the current $200 betting limit to that allowed under State law.

If this measure is approved, it would allow each cardroom to seek City approval to increase the number of tables from 40 to 49. City approval would also be required in order for a cardroom to allow any game that is not on the City's permissible list. The procedure for seeking approval of card games remains the same as currently provided in Title 16 except that the proposed ordinance removes the requirement that a game be made available to both cardrooms. The modification to betting limits to conform to State law will mean that there will be no betting limit imposed by the City on games played at the cardrooms because State law currently does not specify betting limits.

Currently, under Chapter 4.77 and Title 16, the City has the right to audit the cardrooms and under Title 16, the cardrooms are subject to City oversight. The proposed ordinance makes no changes to these auditing and oversight provisions. The City Council retains the authority to amend or to repeal provisions in Title 16 in order to revise the City's gaming control regulations.

A "yes" vote is a vote to approve the increase in the Cardroom Tax rate on gross revenues from 13% to 15% and to approve revisions to the Municipal Code to expand gambling in the City as described above.

A "no" vote is a vote to maintain the existing 13% Cardroom Tax rate on gross revenues and to make no changes to the gambling limits currently specified in the Municipal Code.

/s/ Richard Doyle City Attorney, City of San Jose

The above statement is an impartial analysis of Measure K. If you would like to read the full text of the measure, see http://www.sanjoseca.gov/clerk/elections/Election.asp or call (408) 535-1252 and a copy will be sent at no cost to you.

  Official Information

City of San Jose

N.B. This is not an official version of the measure. For the official wording contact the Registrar of Voters or the district sponsoring the measure.
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Arguments For Measure K Arguments Against Measure K
Due to the economic downturn, San Jose is faced with extremely difficult budget decisions. Severe service cuts and layoffs are being considered which will have direct negative impacts on city services and residents. Yes on Measure K brings San Jose approximately $5 million in new revenue annually without increasing taxes on San Jose residents and helps prevent some of these cuts and layoffs. Yes on Measure K means we can preserve some city services such as fire protection, library hours, public safety, park programs, and street repairs by increasing the tax on San Jose's two cardrooms so they pay their fair share.

Measure K is not a tax on residents or any other businesses -- it increases the tax on San Jose's two cardrooms by 2%. Only the cardrooms will pay.

Over 90 communities in California permit cardrooms to operate. San Jose has the most extensive and complete system of oversight in all of California. In addition to this fair share tax increase, strict compliance, audits and accountability will continue on in both cardrooms. San Jose also requires the two cardrooms to fund a one-of-a-kind program to identify, assist and counsel problem gamblers. Finally, Measure K permits a modest increase in tables for each club, in accordance with State guidelines, and aligns the local requirements on games and betting to match the regulations of the State Gaming Control Division.

San Jose has permitted cardrooms to operate in our city for more than 60 years. Measure K maintains San Jose voters' authority over the cardrooms. Cardrooms are the greatest single source of tax revenue coming to San Jose. Yes on Measure K ensures that they pay more and pay their fair share.

To help preserve San Jose City services, we ask you to join us in voting Yes on Measure K.

/s/ Judy Chirco, Vice Mayor, City of San Jose
/s/ Fred Abram, San Jose Police Dept Asst Chief (Ret)
/s/ Susan W Hammer, Former Mayor, City of San Jose
/s/ Nancy Pyle, San Jose Councilmember/Chair, Community and Economic Development Committee
/s/ Patricia M Dando, Pres - CEO SJSV Chamber of Commerce

NO ARGUMENT AGAINST MEASURE K WAS SUBMITTED

Full Text of Measure K
The full text of the Measure may be found on the City of San Jose website


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Created: August 20, 2010 21:42 PDT
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