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HomeMy WebLinkAboutBuy Gum Free Fun Inc. speaker notesTO: CITY OFTUSTIN PLANNING COMMISSION FROM: TODD H. IGER, CORPORATE ATTORNEY AND OWNER OF BUY GUM FREE FUN INC, CALIFORNIA STATE BAR #171286 SUBJECT: APPEAL OF DENIAL OF BUSINESS LICENSE APPLICATION -- BUY GUM FREE FUN INC. REQUEST I, Todd H. Iger, am the owner and corporate attorney for the appellant Buy Gum Free Inc. I have done extensive legal research under California law and have come to the conclusion that our machines are NOT illegal gambling devices. Firstly, I challenge any claims as to any Iegal precedent set forth by the document ATTACHMENT E:- - By its own wording "The purpose of an advisory is informational. An advisory does not constitute legal advice." - In contrast, this document does constitute legal advice and is, hereby, attested to by a State Bar member: Todd Howie Iger #171286. - Attachment E is over six years old and any use of its information is substantially outdated especially in light of the changes in this area of the law over the past several years. - Moreover, as per ATTCHMENT E, "For more information regarding this advisory, contact the California Department of Justice, Bureau of Gambling Control at (916) 263-3408." The number provided is disconnected. If this "advisory" is to serve precedent for the high purpose of law malting, it would be prudent and necessary for it to be updated to include a valid follow up phone number. The fact that ATTACHMENT E has not been updated in this most basic of ways is testament to both its current obsolescence and, perhaps as well as, to its original lack of validity. - As to Attachment 1 of ATTACHMENT E, I challenge the flow chart depicted as it does not accurately represent current State law. For example, "A. Does the device award anything of value other than a free play?... Yes.... Device is an illegal gambling device prohibited by the Penal Code." Not only was this an inaccurate portrayal of the law when drafted, this very. point was concisely stated zotherwise by the APPELLATE DIVISION OF THE SUPERIOR COURT STATE OF CALIFORNIA, COUNTY OF LOS ANGELES, PEOPLE OF THE STATE OF CALIFORNIA V MOUSA which came to the conclusion that "a coin pusher that he found at a Dave & Buster's... only received tokens that could be exchanged for tickets, which in turn (if enough were accumulated) could be used to purchase items at the restaurant gift stores" was not an illegal gambling device. T - • - Furthermore, as Attachment 1 of ATTACHMENT E, the flow chart exhibit completely omits any rationale whatsoever under Section Code 330.5, the "exact consideration" exemption. Finally, I request that a live legal representative that is a proponent of ATTACHMENT E and an active witness to its creation be made available for "cross examination" of their sources and the qualifications of its "ghost." drafter. Secondly, under Section 330b., the "skill' exemption there are several local precedents of our machines being considered legal under the skill exemption (even prior to our compliance under Section 330.5 as argued below): The City of Santa not only acknowledges our machines as legal under the "predominantly games of skill" exemption; but also, proactively licenses and provides serialized stickers for each of our machine locations within their city (please see our exhibit of current machines in Santa Ana with their corresponding sticker license numbers). - The City of Orange has allowed our machines within their city with the caveat that we provide the zip code of any intended locations for their approval. To date, none of our proposed locations in Orange have ever been rejected by the City of Orange. Thirdly, under Section 330.5, the "exact consideration" exemption, our machines comply with State level law for all California jurisdictions. - Section 330.5 of the California Penal Code specifically states "this code shall not apply to music machines, weighing machine and machines which vend cigarettes, candy, ice cream, food, confections or other merchandise, in which there is deposited an exact consideration and from which in every case the customer obtains that which he purchases" - Section 330.5 clearly lays out a second, separate exemption under which machines can be found not to be illegal gambling devices. In fact, Section 330.5 expressly states immediately thereafter: "it is further expressly provided that with respect to the provisions of Section 330.1 to 330.4, of additional chances or free plays or not, are not intended to be and are not included within the term slot machine or device as defined within Sections 330.1 to 330.4, inclusive, of this code." - There is current local legal precedent of nearby cities changing their legal stance in regards to Buy Gum Free Fun machines based solely upon our explanation of the 330.5 "exact consideration" exemption. The City of Colton which previously had had the stance that coin pushers were illegal within their city issued a citation to one of our affiliate sites. After discussions with their Code Enforcement Officer, the City of Colton not only rescinded the code violation citation; but also, issued Buy Gum Free Fun a city license specifically for our placement of our machines within the City of Colton. This license has also been subsequently, and most recently, renewed by the City of Colton (please -attached exhibits to verify). Finally, I appeal to the Planning Commission's sense of patriotism and beliefs in American capitalism: - A long standing adage about capitalism is that: "Success is born from the father of hard work and the mother of invention." Or alternatively, "the goal is to create a better mouse trap." - Buy Gum Free Fun has worked hard, invented and created a better amusement device that clearly is exempt under California Penal Section Code 330.5. - To date the only further qualifications from any case law whatsoever is that some courts have narrowed the exemption in that the exact consideration must be of comparable value of that which the client receives. Thusly, $10 put into a slot machine to play a song is not a valid application of the exact consideration exemption. However, Buy Gum Free Fun strongly advocates that 25 cents is, indeed, the fair market value of a couple of gumballs. - in an economic environment where utilities, rents and wages are all trending upwards in costs, our turn -key, zero- cost profit sharing agreement is a valuable source of extra revenue to our affiliate sites including our first Tustin location, Soapy Lee Coin Laundry. - And perhaps most importantly, we are strongly of the belief that our players are well within their rights to have legal, fun amusement games available to them in their pursuit of happiness. Thank you for your time and this forum in which to address this issue. I attest, and hereby swear, that to the best of my kno edge and legal research that all of the foregoing documentation is true and a valid legal ar ment for the City of Tustin to consider: X 07/ Todd Corporate Attorney/ Owner Buy Gum Free Fun BUSINESS LICENSE CERTIFICATE" ' , CITY-O.F COLTON - The; or corporation ,na;ned .below is granted this certificate -pursuant to. ifie'.prcvisions' of the City Business .License Tax GrOnarice to engage in; carry_ on '.CIVIC Center; or cohi:16khe business, trade, calling, profession, exhibition.or occupation described .: 650 North L8 Cadena Drive below:• Issuance of certificate is not endorsement;.norcertification:of compliance Colton, California .92324 with other ordinances or laws: This certificate is issued' without;iierification .that ; (909) 370-5079' • > ;: `tee..,.. _ . .. i . - . , the taxpayer is subject to'or exempt from licensing by..'the State Of California.. g.USINESS-NAME: Buy, Gum Free Fun' "iBUSINESS j,OCATION: i0• HUGHES #1d6A BUSINESS TYPE: 088 . Todd Iger ' ' VENDINGISERVICE MACHINES BUSINESS OWNER DESCRIPTION:. . Brian Voytovich. BUS' Gl3M'FRlwE FUN .E Business License. Number: 59357' 10 HUGHES_#106A Effective Date:'. -July 01, 2010. IRVINE,"CA92618197'1 " „ Ezplratlon Date• " June 30; 20.16 DISPLAY CONSP[Cuoum AT PLACE 6F BUSINESS FOR WHi6H ISSUED.-. "' 3 C, CITY OF SANTA ANA BUSINESS LICENSE The person firm or eorporation named relow has been issued 'his certificate pursuant to the prov s cn:s of ;he Gd; Sus ness Tax Ordinances 'ssua^co of this licanse is not an endorsement. not cedif"Jan of compliance with other ordinances or laws k is the responsibility of the applicanUlicensee to ensure that the business is operated in compliance with the taws. ordinances and regulations that am now or may hereaher be in force by the United States Government, the State of California and Ute City of Santa Ana pertaining to such business. In the event it is determined that the husiness does not comply, the business license may be revoked. This incense is nontransferable, Please note that it is your e-pzsrbdity to renew and update this license annually. CITY OF SANTA ANA -TREASURY M-15 20 CIVIC CENTER PLAZA -PO BOX 1964 SANTA ANA, CALIFORNIA 92702 PHONE (714) 647-5447 BUY GUM FREE FUN 24842 RED LODGE PL LAGUNA HILLS, CA 92653.5832 THIS LICENSE MUST BE DISPLAYED AT THE PLACE OF BUSINESS BUSINESS TAX NO. 336421 TAX PERIOD: 7111015-6/300016 BUSINESS TYPE: COIN-OPERATED MACHINES BUSINESS ADDRESS: 10 HUGHES #A106 Irvine, CA 92610 BUSINESS NAME. BUY GUM FREE FUN OWNERVREP- ICER ENTERPRISES, [NC. EXPIRATION DATE 0613012016 Powered by Fleetmatics WORK