AB 293 — Gambling regulation.

Summary

(1) The Gambling Control Act provides for the licensure of certain individuals and establishments involved in various gambling activities, and for the regulation of those activities, by the California Gambling Control Commission. Existing law provides for the enforcement of those activities by the Department of Justice. Any violation of these provisions is punishable as a misdemeanor, as specified. Existing law provides that no temporary injunction or other provisional order shall issue to restrain, stay, or otherwise interfere with any action by the department or the commission, except as specified, and that no order may be effective for more than 15 calendar days. This bill instead would provide that, except for preliminary injunctions, no order may be effective for more than 15 calendar days, and no preliminary order may be effective for more than 45 days, except by stipulation of the department or commission. (2) Existing law authorizes the commission, for any cause deemed reasonable by the commission, to deny any application for a license, permit, or approval, to limit, condition, or restrict any license, permit, or approval, or to impose any fine upon any person licensed or approved. This bill would further authorize the commission to condition, restrict, discipline, or take action against the license of an individual owner endorsed on the license certificate of the gambling enterprise whether or not the commission takes action against the license of the gambling enterprise. This bill would also expand the definition of "license" to include any license issued by the commission pursuant to or adopted pursuant to the Gambling Control Act. (3) Existing law authorizes the commission to adopt regulations for the administration and enforcement of the Gambling Control Act. The regulations adopted by the commission are required to prohibit gambling establishments from cashing checks drawn against any federal, state, or county fund. Existing law requires gambling establishments to send the department copies of all dishonored or uncollectible checks at the end of each quarter. This bill would require the regulations to prohibit gambling enterprises from cashing checks drawn against any federal, state, or county fund, and would delete the requirement that copies of dishonored or uncollectible checks be sent to the department. The bill also would require the regulations, by December 31, 2011, to provide procedures, criteria, and timelines for the processing and approval of applications for the licensing, temporary or interim licensing, or findings of suitability for receivers, trustees, beneficiaries, executors, administrators, conservators, successors in interest, or security interest holders for a gambling enterprise so that gambling enterprises may operate continuously in cases including, but not limited to, the death, insolvency, foreclosure, receivership, or incapacity of a licensee. (4) Existing law provides that the owner of a gambling enterprise shall apply for and obtain a state gambling license and other persons who obtain a state gambling license or key employee license shall not receive a separate license certificate. This bill would designate the owner of a gambling enterprise as the owner-licensee, delete an obsolete cross-reference, and make other conforming changes. (5) Existing law provides that an owner of a gambling enterprise that is not a natural person shall not be eligible for a state gambling license unless certain persons individually apply for and obtain a state gambling license, except as specified. This bill would define "gambling enterprise" for purposes of these provisions, and would require that, if the owner is a limited liability company, every officer, manager, member, or owner apply for and obtain a state gambling license as described above. The bill would make other conforming changes. (6) Existing law requires the department to investigate an applicant for a gambling license. Existing law provides that, if denial of the application, or approval of the license with restrictions or conditions on the license, is recommended, the head of the entity within the department that is responsible for enforcing these provisions shall prepare and file with the commission his or her written reasons upon which the recommendation is based. This bill would, in addition, require the head of that entity within the department to file with the commission the reasons for his or her recommendation if he or she recommends approval of the license with restrictions or conditions. The bill also would require the head of that entity to inform the applicant in writing generally of the basis for any proposed recommendation that the application be restricted or conditioned, as specified. (7) Existing law requires a corporation to comply with specified requirements in order to obtain a gambling license, including a requirement that the corporation register as a corporation with the department and supply specified supplemental information to the department. This bill would instead require a corporation to supply supplemental forms and information with the initial license application, and thereafter only on request, to the department, as specified. (8) Existing law requires the owner of any security issued by a corporation that applies for or holds an owner license to immediately offer the security to the issuing corporation for purchase, if at any time the commission denies a license to the individual owner of the security. This bill would instead require the commission, if at any time it denies a license to, or revokes the license of, an individual owner of any security issued by a corporation that applies for or holds an owner license, to immediately notify the individual and the corporation of that fact. The bill would require the owner of the security to sell the security, as specified. (9) Existing law requires a limited partnership to comply with specified requirements in order to obtain a gambling license, including a requirement that the limited partnership be formed under the laws of this state. This bill would impose on all partnerships the requirements for obtaining a gambling license that are applicable to limited partnerships, and would require that a partnership be registered as may be required under the laws of this state instead of being formed under the laws of this state. The bill would modify other applicable requirements, including imposing on partnerships the requirement described in paragraph (6) relative to corporations. The bill would also require that limited liability companies comply with parallel requirements in order to obtain a gambling license. (10) Under existing law, the purported sale, assignment, transfer, pledge, or other disposition of any interest in a limited partnership that holds a gambling license, or the grant of an option to purchase the interest, is void unless approved in advance by the commission. Existing law also requires the commission, if at any time it denies a license to an individual owner of any interest in a limited partnership that holds a gambling license, to immediately notify the partnership of that fact, and requires the partnership to return to the denied owner of the interest in cash the amount of his or her capital account, as specified. This bill would make these provisions applicable to all partnerships and limited liability companies that hold a gambling license, would require the commission to give notice to the individual owner of the interest when it denies or revokes the license of the individual, and would require that individual to sell his or her interest, as specified. (11) Existing law requires that, to the extent required by specified provisions of law, certain persons associated with a limited partnership that holds or applies for a license to own a gambling enterprise be licensed individually. This bill would include members and managers among the persons to whom the above requirement applies and would impose the requirement, in addition, on those persons if they are associated with any partnership or limited liability company that holds or applies for a license to own a gambling enterprise. (12) Existing law prohibits certain security interests from being enforced without the prior approval of the commission and compliance with certain regulations adopted by the department, including a security interest in a security issued by a partnership, except as specified. The department is required to adopt regulations establishing the procedure for the enforcement of a security interest. This bill would, in addition, prohibit enforcement of a security interest without the above approval if the security interest is in a security issued by a limited partnership or limited liability company. The bill would instead require the commission to adopt those regulations. (13) Existing law requires an order of the commission denying an application for a work permit to be reviewed in accordance with specified provisions of law. This bill would, in addition, apply the above requirement to an order of the commission placing restrictions or conditions on a work permit. (14) Existing law prohibits permitting any person under 21 years of age from entering upon the premises of a licensed gambling establishment, except for limited areas, as specified, and requires a separate entrance to those areas. This bill would include among those exceptions a designated pathway to reach those permissible areas, would delete the requirement for a separate entrance, and would permit passage of a person under 21 years of age through the gaming floor by way of a designated pathway if accompanied by a person over 21 years of age or an employee of the gambling establishment. (15) Existing law provides that any person aggrieved by a final decision or order of the commission that limits, conditions, suspends, or revokes any previously granted license or approval, made after hearing by the commission, may petition the Superior Court for the County of Sacramento for judicial review pursuant to specified provisions of law. Existing law provides that the court may summarily deny the petition, or the court may issue an alternative writ directing the commission to certify the whole record of the department in the case to the court. Existing law requires that, if an alternative writ issues, the cause be heard on the whole record of the department as certified by the commission. This bill would, instead, with respect to the above alternative writ, authorize the court to issue that writ to certify the whole record in the case to the court, and would require that, if the alternative writ issues, the cause be heard on the whole record as certified by the commission. (16) The Gambling Control Act authorizes a city or county to permit controlled gambling, consistent with state law, if a majority of voters affirmatively approve an ordinance so permitting, as specified. That law authorizes an amendment of an ordinance permitting an expansion of gambling, within a specified limit, without voter approval, and also authorizes, without voter approval, an amendment to an ordinance permitting an increase of 24.99% in the number of gambling tables that may be operated in a gambling establishment or 2 gambling tables, whichever is greater, compared to the ordinance in effect on January 1, 1996. This bill would authorize, if a gambling establishment is located in an unincorporated area annexed by a city without a local election other than the election to approve the annexation, the city acquiring jurisdiction to adopt an ordinance permitting and regulating controlled gaming in the existing gambling establishment, providing hours of operation, the games to be played, wagering limits, the maximum number of gambling establishments, and the maximum number of tables permitted in each gambling establishment, the same as those limits in any ordinance or resolutions that formerly applied to the gambling establishment. (17) Because any violation of these provisions would be punishable as a misdemeanor, the bill would impose a state-mandated local program by creating a new crime. (18) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.

Bill Text

• Chaptered 10/11/09 - Chaptered Current pdf October 11, 2009
• Enrolled 09/16/09 - Enrolled pdf September 16, 2009
• Amended 04/13/09 - Amended Assembly pdf April 13, 2009
• Introduced 02/13/09 - Introduced pdf February 13, 2009
• AB293 View text html

Action History

1. October 11, 2009

   Chaptered by Secretary of State - Chapter 233, Statutes of 2009.

2. October 11, 2009

   Approved by the Governor.

3. September 25, 2009

   Enrolled and to the Governor at 5 p.m.

4. September 10, 2009

   In Assembly. To enrollment.

5. September 09, 2009

   Read third time, passed, and to Assembly. (Ayes 30. Noes 3. Page 2316.)

6. September 08, 2009

   Read second time. To third reading.

7. September 04, 2009

   From inactive file. To second reading.

8. July 13, 2009

   To inactive file on motion of Senator Negrete McLeod.

9. July 07, 2009

   Read second time. To third reading.

10. July 06, 2009

    From committee: Be placed on second reading file pursuant to Senate Rule 28.8.

11. June 23, 2009

    From committee: Do pass, and re-refer to Com. on APPR. Re-referred. (Ayes 12. Noes 0.) (June 23).

12. May 21, 2009

    Referred to Com. on G.O.

13. May 11, 2009

    In Senate. Read first time. To Com. on RLS. for assignment.

14. May 11, 2009

    Read third time, passed, and to Senate. (Ayes 64. Noes 10. Page 1348.)

15. April 27, 2009

    Read second time. To third reading.

16. April 23, 2009

    From committee: Do pass. (Ayes 11. Noes 2.) (April 22).

17. April 13, 2009

    Re-referred to Com. on APPR.

18. April 13, 2009

    Read second time and amended.

19. April 02, 2009

    From committee: Amend, do pass as amended, and re-refer to Com. on APPR. (Ayes 17. Noes 1.) (April 1).

20. March 04, 2009

    Referred to Com. on G.O.

21. February 14, 2009

    From printer. May be heard in committee March 16.

22. February 13, 2009

    Read first time. To print.

Sponsors

• Mendoza · Primary

Votes

Subjects