BILL NUMBER: AB 635 CHAPTERED 10/07/05 CHAPTER 694 FILED WITH SECRETARY OF STATE OCTOBER 7, 2005 APPROVED BY GOVERNOR OCTOBER 7, 2005 PASSED THE ASSEMBLY SEPTEMBER 8, 2005 PASSED THE SENATE SEPTEMBER 7, 2005 AMENDED IN SENATE AUGUST 31, 2005 AMENDED IN SENATE AUGUST 24, 2005 AMENDED IN SENATE JULY 7, 2005 AMENDED IN SENATE JUNE 15, 2005 AMENDED IN ASSEMBLY MARCH 29, 2005 INTRODUCED BY Assembly Member Bermudez FEBRUARY 17, 2005 An act to amend Section 19961 of, and to add Section 19961.05 to, the Business and Professions Code, relating to gambling. LEGISLATIVE COUNSEL'S DIGEST AB 635, Bermudez Local gambling. (1) Existing law permits a city, county, or city and county to permit controlled gambling, consistent with state law, if a majority of voters affirmatively approve an ordinance so permitting, as specified. Existing law provides that an amendment of an ordinance permitting an expansion of gambling, within a specified threshold, may occur without voter approval. Any amendment to a city or county ordinance relating to gambling establishments or the Gambling Control Act is required to be submitted to the Division of Gambling Control for review and comment before the ordinance is adopted by the city or county. This bill would provide that an amendment of an ordinance permitting an increase of 24.99% in the number of gambling tables that may be operated in a gambling establishment in a city, county, or city and county, or 2 tables, whichever is greater, compared to the ordinance in effect on January 1, 1996, may occur without voter approval. (2) "Expansion of gambling" is defined for the general purpose of those provisions to be an increase of 25% or more in the number of gambling tables that may be operated in a gambling establishment or an increase of 2 tables, whichever is greater. This bill would change that definition to exclude an increase of 2 tables. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 19961 of the Business and Professions Code is amended to read: 19961. (a) (1) Except as provided in paragraph (2), on or after the effective date of this chapter, any amendment to any ordinance that would result in an expansion of gambling in the city, county, or city and county, shall not be valid unless the amendment is submitted for approval to the voters of the city, county, or city and county, and is approved by a majority of the electors voting thereon. (2) Notwithstanding paragraph (1) and Section 19962, an ordinance may be amended without the approval of the electors after the effective date of this chapter to expand gambling by a change that results in an increase of less than 25 percent with respect to any of the matters set forth in paragraphs (1), (2), (3), (5), and (6) of subdivision (b). Thereafter, any additional expansion shall be approved by a majority of the electors voting thereon. (b) For the purposes of this section, "expansion of gambling" means, when compared to that authorized on January 1, 1996, or under an ordinance adopted pursuant to subdivision (a) of Section 19960, whichever is the lesser number, a change that results in any of the following: (1) An increase of 25 percent or more in the number of gambling tables in the city, county, or city and county. (2) An increase of 25 percent or more in the number of licensed card rooms in the city, county, or city and county. (3) An increase of 25 percent or more in the number of gambling tables that may be operated in a gambling establishment in the city, county, or city and county. (4) The authorization of any additional form of gambling, other than card games, that may be legally played in this state, to be played at a gambling establishment in the city, county, or city and county. (5) An increase of 25 percent or more in the hours of operation of a gambling establishment in the city, county, or city and county. (6) An increase of 25 percent or more in the maximum amount permitted to be wagered in a game. (c) The measure to expand gambling shall appear on the ballot in substantially the following form: "Shall gambling be expanded in ____ beyond that operated or authorized on January 1, 1996, by ____ (describe expansion) Yes ____ No ____." (d) The authorization of subdivision (c) is subject to Sections 19962 and 19963 until those sections are repealed. (e) Increasing the number of games offered in a gambling establishment does not constitute an expansion of gambling pursuant to this section. (f) No city, county, or city and county shall amend its ordinance in a cumulative manner to increase gambling by more than 25 percent for the factors listed in subdivision (b), when compared to that authorized on January 1, 1996, without conducting an election pursuant to Section 19961. SEC. 2. Section 19961.05 is added to the Business and Professions Code, to read: 19961.05. Notwithstanding Sections 19961 and 19962, a city, county, or city and county may amend an ordinance to increase the number of gambling tables by two, or 24.99 percent, whichever is greater, compared to the ordinance that was in effect on January 1, 1996.