BILL ANALYSIS
AB 813
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Date of Hearing: April 30, 2009
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Curren D. Price, Chairman
AB 813 (Hall) - As Amended: April 20, 2009
SUBJECT : Gambling Control Act: administration
SUMMARY : This bill would allow the examination and inspection
of all premises where controlled gambling is conducted during
standard business hours. Specifically, this bill :
1) Amends the Gambling Control Act to require that the
examination and inspection of the equipment, supplies,
documents, papers, books, and records of a (gambling
establishment) card room take place during standard
business hours [Business and Professions Code Section 19827
(a) (2) (A)].
2) Defines "standard business hours," for the purposes of
this bill, as the requirement that the business office be
open five days per week, and at least eight hours per day.
Requires the gambling establishments submit, on January 1
and July 1 of each year, a schedule of the standard
business hours to the Department. The schedule shall take
into account possible closures for state and national
holidays but shall seek to provide access to the Department
at least thirty (30) hours per week during those weeks
which have a holiday [Business and Professions Code Section
19827 (a) (2) (B)].
EXISTING LAW
1) Requires the licensure and regulation of various
legalized gambling activities and establishments by the
California Gambling Control Commission (CGCC) and the
investigation and discipline of those activities and
establishments by the Department of Justice's Division of
Gambling Control (Department).
2) Requires the Department to seize, remove, impound,
photocopy, and audit any equipment, supplies, documents,
papers, books, and records on the premises of a licensed
gambling establishment for examination and inspection.
AB 813
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FISCAL EFFECT : Unknown
COMMENTS : This bill would allow for card clubs to create a
self-governing process that allows the Department to examine and
inspect their facilities when the main operating manager is
present.
Element of surprise taken away ? Under this bill, Department of
Justice officials would continue to have the authority to
randomly inspect card clubs, as specified under law. Any
suspected bad actors would still be subject to inspection.
However, the language prescribed under this bill suggests that
gambling establishments, or cardrooms, would, twice a year, send
a work schedule calendar of when the business office is open for
business, including hours of operation during holidays. This
bill also would define standard business hours as no less than
eight hours a day/five days a week and that the standard
business hours are, at least, 30 hours per week.
Supporters' rationale . Supporters for this bill say this bill
seeks to make a change in the Gambling Control Act to allow card
clubs with the ability to have themselves subject to random
inspections during the hours and days when the operating manager
is on site.
According to some of the bill's supporters, they have described
incidents where Department inspectors conducted late night
audits where the inspectors requested the on-site shift manager
to provide them with receipts, payroll data and other related
records. That manager, then, has to contact the main operating
manager, who has access to the requested information, to avoid
being charged with a misdemeanor, pay a fine, or have both.
According to this bill's sponsor, the language referring to the
inspection and copying of gaming operation papers, books, and
records is basically identical to language contained in the 1999
Tribal Compacts.
Policy consideration . To ensure that there is no loss of
enforcement powers for the Department of Justice, the author may
want to consider a clarifying amendment to AB 813 that would
require the Department of Justice to examine documents requested
in a routine audit at a gambling establishment between the
normal business hours of 8:00 AM to 6:00 PM within a five day
work week schedule, however, this requirement shall not be
construed to take away from the Department of Justice's
AB 813
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investigatory authority and duties.
REGISTERED SUPPORT / OPPOSITION :
Support
Lucky Chances Casino
Lucky Derby
Village Club
Opposition
None on file
Analysis Prepared by : Rod Brewer / G. O. / (916) 319-2531