California 2015-2016 Regular Session Status: Passed Assembly

AB 1437 — Gambling: Internet Fantasy Sports Game Protection Act.

Last action — In committee: Set, first hearing. Hearing canceled at the request of author.

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. 3
    Passed Assembly
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2015-2016 Regular Session. It reached “Passed Assembly” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

Existing law, the Gambling Control Act, provides for the licensure and regulation of various legalized gambling activities and establishments by the California Gambling Control Commission and the investigation and enforcement of those activities and establishments by the Department of Justice. Existing law prohibits a person, whether or not for gain, hire, or reward, from making a betting pool or placing a bet or wager on the result of any contest or event, including a sporting event, as specified. This bill would enact the Internet Fantasy Sports Games Consumer Protection Act, which would require a person or entity to apply for, and receive, a license from the department prior to offering an Internet fantasy sports game for play in California. The bill would require the department to issue a license to a person or entity that applies for a license if the person or entity satisfies specified requirements, including, among others, that the applicant is of good character, honesty, and integrity. The bill would also require a person to register with a "licensed operator" prior to participating in an "Internet fantasy sports game" on an "authorized Internet Web site," as those terms are defined. The bill would prohibit a licensed operator from offering an Internet fantasy sports game based on a collegiate sports or athletic event, or any other sports or athletic event in which amateur athletes participate. The bill would require a licensed operator, among other things, to ensure that a registered player is eligible to play on an authorized Internet Web site, and to implement appropriate data security standards to prevent access by a person whose age and location have not been verified. The bill would authorize the department to assess a civil penalty against a licensed operator that violates these provisions according to a specified schedule depending on the number of violations. The bill would require the department to develop an online self-exclusion form on or before July 1, 2017, and to deliver that form to each licensed operator, and would require each licensed operator to make that form available to its registered players. The bill would also require a licensed operator to, among other things, hold the funds in a registered player's account in trust for that registered player. The bill would prohibit a licensed operator from engaging in certain activities, including, among other things, from allowing a registered player to establish more than one account or user name on its authorized Internet Web site, from issuing credit to a registered player, from advertising in publications or other media that are aimed exclusively or primarily at persons under 21 years of age, and from depicting persons under 21 years of age, students, or school or college settings in its advertisements. The bill would also prohibit an officer, director, principal, employee, or contractor of a licensed operator from engaging in certain activities, including, among other things, from playing an Internet fantasy sports game offered by a licensed operator. The bill would require a licensed operator to pay an annual regulatory fee, for deposit into the Fantasy Sports Fund, which the bill would establish in the State Treasury. The bill would continuously appropriate the Fantasy Sports Fund to the department for the reasonable costs of license oversight, consumer protection, state regulation, and other purposes related to the bill. The bill would require each licensed operator to pay a one-time license fee into the General Fund in an unspecified amount. The license fee would be credited against quarterly fees equivalent to an unspecified percentage of the licensed operator's gross income that is attributable to the operation of an authorized Internet Web site in California. The bill would make proprietary information provided by a licensed operator confidential in order to protect the licensed operator and to protect the security of an authorized Internet Web site. The bill would also prohibit a city, county, or city and county from regulating, taxing, or entering into a contract with respect to, any matter governed to the bill's provisions, and would make conforming changes. Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest. This bill would make legislative findings to that effect. This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIIIA of the California Constitution, and thus would require for passage the approval of 23 of the membership of each house of the Legislature. This bill would declare that it is to take effect immediately as an urgency statute.

Bill Text

Action History

  1. In committee: Set, first hearing. Hearing canceled at the request of author.

  2. From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on G.O.

  3. Referred to Coms. on G.O. and RLS.

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

  5. Read third time. Passed. Ordered to the Senate. (Ayes 68. Noes 1. Page 3500.)

  6. Read second time. Ordered to third reading.

  7. From committee: Do pass. (Ayes 15. Noes 0.) (January 21).

  8. In committee: Set, first hearing. Referred to APPR. suspense file.

  9. Re-referred to Com. on APPR.

  10. Read second time and amended.

  11. From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 18. Noes 1.) (January 6).

  12. Re-referred to Com. on G.O.

  13. From committee chair, with author's amendments: Amend, and re-refer to Com. on G.O. Read second time and amended.

  14. Referred to Com. on G.O.

  15. Read first time.

  16. From printer. May be heard in committee March 31.

  17. Introduced. To print.

Sponsors

  • Brown · Cosponsor
  • Gray · Primary
  • Jones-Sawyer · Cosponsor

Sponsorship breakdown

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1 sponsors · 2 co-sponsors · 119 not signed on

Sponsors (1)

  • Gray

Co-sponsors (2)

  • Brown
  • Jones-Sawyer

Not signed on (119)

119 members have not signed on to this bill.

Show all 119 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

AB 1437 GRAY Assembly Third Reading

Passed 68 Yea · 1 Nay · 10 Other
Party YeaNayPresentNot Voting
Unaffiliated 60109
Democratic 4000
Republican 4001
Total 681010
% of votes cast 86%1%0%13%
How each member voted (79)
Member Party Vote
Achadjian — Yea
Alejo — Yea
Bigelow — Yea
Bloom — Yea
Brough — Not Voting
Brown — Yea
Harper — Not Voting
Levine — Nay
Mathis — Yea
Medina — Yea
Mullin — Yea
Obernolte — Not Voting
Ridley-Thomas — Yea
Steinorth — Yea
Waldron — Yea
Williams — Yea
Eggman — Not Voting
Daly — Yea
Gatto — Yea
Jones-Sawyer — Yea
Low — Yea
Salas — Yea
Chávez — Yea
Wagner — Yea
Bonilla — Yea
Frazier — Yea
Gomez — Yea
Gordon — Not Voting
Gray — Yea
Hadley — Yea
Lopez — Yea
Holden — Yea
Kim — Yea
Linder — Yea
Maienschein — Yea
Mayes — Yea
Burke — Yea
Atkins — Yea
McCarty — Yea
Melendez — Not Voting
Nazarian — Not Voting
Campos — Yea
O'Donnell — Yea
Baker — Yea
Chang — Yea
Chau — Yea
Chiu — Yea
Chu — Yea
Cooley — Yea
Cooper — Yea
Dababneh — Yea
Dodd — Yea
Olsen — Not Voting
Quirk — Yea
Rendon — Yea
Rodriguez — Yea
Santiago — Yea
Thurmond — Yea
Ting — Yea
Weber — Yea
Wilk — Yea
Wood — Yea
Beth Gaines — Yea
Cristina Garcia — Yea
Eduardo Garcia — Yea
Jim Patterson — Yea
Lorena Gonzalez — Yea
Mark Stone — Yea
Roger Hernández — Yea
Travis Allen — Not Voting
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Yea
Gipson, Mike A. Democratic Yea
Irwin, Jacqui Democratic Yea
Dahle, Megan Republican Not Voting
Gallagher, James Republican Yea
Grove, Shannon Republican Yea
Jones, Brian W. Republican Yea
Lackey, Tom Republican Yea

Official roll call →

Do pass.

Passed 15 Yea · 0 Nay · 2 Other
Party YeaNayPresentNot Voting
Unaffiliated 13000
Democratic 2000
Republican 0002
Total 15002
% of votes cast 88%0%0%12%
How each member voted (17)
Member Party Vote
Bloom — Yea
Weber — Yea
Eggman — Yea
Chang — Yea
Bonilla — Yea
Gomez — Yea
Daly — Yea
Bigelow — Yea
Holden — Yea
Quirk — Yea
Wagner — Yea
Wood — Yea
Eduardo Garcia — Yea
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Yea
Gallagher, James Republican Not Voting
Jones, Brian W. Republican Not Voting

Official roll call →

Do pass as amended and be re-referred to the Committee on [Appropriations]

Passed 18 Yea · 1 Nay · 2 Other
Party YeaNayPresentNot Voting
Unaffiliated 17101
Republican 0001
Democratic 1000
Total 18102
% of votes cast 86%5%0%10%
How each member voted (21)
Member Party Vote
Achadjian — Not Voting
Alejo — Yea
Linder — Yea
Steinorth — Yea
Cooley — Yea
Cooper — Yea
Jones-Sawyer — Yea
Campos — Yea
Lopez — Yea
Salas — Yea
Gray — Yea
Bigelow — Yea
Waldron — Yea
Wilk — Yea
Daly — Yea
Levine — Nay
Cristina Garcia — Yea
Eduardo Garcia — Yea
Roger Hernández — Yea
Gipson, Mike A. Democratic Yea
Gallagher, James Republican Not Voting

Official roll call →

Subjects

public-safety taxation technology
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Frequently asked questions

What does AB 1437 do?
Existing law, the Gambling Control Act, provides for the licensure and regulation of various legalized gambling activities and establishments by the California Gambling Control Commission and the investigation and enforcement of those activities and establishments by the Department of Justice. Existing law prohibits a person, whether or not for gain, hire, or reward, from making a betting pool or placing a bet or wager on the result of any contest or event, including a sporting event, as specified. This bill would enact the Internet Fantasy Sports Games Consumer Protection Act, which would require a person or entity to apply for, and receive, a license from the department prior to offering an Internet fantasy sports game for play in California. The bill would require the department to issue a license to a person or entity that applies for a license if the person or entity satisfies specified requirements, including, among others, that the applicant is of good character, honesty, and integrity. The bill would also require a person to register with a "licensed operator" prior to participating in an "Internet fantasy sports game" on an "authorized Internet Web site," as those terms are defined. The bill would prohibit a licensed operator from offering an Internet fantasy sports game based on a collegiate sports or athletic event, or any other sports or athletic event in which amateur athletes participate. The bill would require a licensed operator, among other things, to ensure that a registered player is eligible to play on an authorized Internet Web site, and to implement appropriate data security standards to prevent access by a person whose age and location have not been verified. The bill would authorize the department to assess a civil penalty against a licensed operator that violates these provisions according to a specified schedule depending on the number of violations. The bill would require the department to develop an online self-exclusion form on or before July 1, 2017, and to deliver that form to each licensed operator, and would require each licensed operator to make that form available to its registered players. The bill would also require a licensed operator to, among other things, hold the funds in a registered player's account in trust for that registered player. The bill would prohibit a licensed operator from engaging in certain activities, including, among other things, from allowing a registered player to establish more than one account or user name on its authorized Internet Web site, from issuing credit to a registered player, from advertising in publications or other media that are aimed exclusively or primarily at persons under 21 years of age, and from depicting persons under 21 years of age, students, or school or college settings in its advertisements. The bill would also prohibit an officer, director, principal, employee, or contractor of a licensed operator from engaging in certain activities, including, among other things, from playing an Internet fantasy sports game offered by a licensed operator. The bill would require a licensed operator to pay an annual regulatory fee, for deposit into the Fantasy Sports Fund, which the bill would establish in the State Treasury. The bill would continuously appropriate the Fantasy Sports Fund to the department for the reasonable costs of license oversight, consumer protection, state regulation, and other purposes related to the bill. The bill would require each licensed operator to pay a one-time license fee into the General Fund in an unspecified amount. The license fee would be credited against quarterly fees equivalent to an unspecified percentage of the licensed operator's gross income that is attributable to the operation of an authorized Internet Web site in California. The bill would make proprietary information provided by a licensed operator confidential in order to protect the licensed operator and to protect the security of an authorized Internet Web site. The bill would also prohibit a city, county, or city and county from regulating, taxing, or entering into a contract with respect to, any matter governed to the bill's provisions, and would make conforming changes. Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest. This bill would make legislative findings to that effect. This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIIIA of the California Constitution, and thus would require for passage the approval of 23 of the membership of each house of the Legislature. This bill would declare that it is to take effect immediately as an urgency statute.
Who sponsors AB 1437?
AB 1437 is sponsored by Brown, Gray, and Jones-Sawyer.
What is the current status of AB 1437?
This bill died with 2015-2016 Regular Session. It reached “Passed Assembly” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track AB 1437?
Track AB 1437 free on One Click Politics — get push/email alerts when it moves.

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