BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 813|
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THIRD READING
Bill No: AB 813
Author: Hall (D)
Amended: 5/5/09 in Assembly
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE : 9-1, 7/8/09
AYES: Wright, Harman, Calderon, Denham, Florez, Negrete
McLeod, Price, Wyland, Yee
NOES: Benoit
NO VOTE RECORDED: Oropeza, Padilla, Wiggins
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 76-0, 5/28/09 - See last page for vote
SUBJECT : Gambling Control Act: administration
SOURCE : Author
DIGEST : This bill amends the Gambling Control Act to
require the Department of Justice to examine documents
requested in a routine audit at a gambling establishment
between the normal business hours of 8 a.m. to 6 p.m.
within a five-day workweek schedule.
ANALYSIS : Existing law, the Gambling Control Act,
provides for the licensure and regulation of various
legalized gambling activities and establishments by
California Gambling Control Commission and the enforcement
of those activities by the Department of Justice (DOJ).
CONTINUED
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Existing law provides DOJ with all powers necessary and
proper to enable it to carry out fully and effectually the
duties and responsibilities of DOJ specified in the
Gambling Control Act.
Existing law provides that DOJ may take any of the
following actions:
1. Visit, investigate, and place expert accountants,
technicians, and any other person, as it may deem
necessary, in all areas of the premises wherein
controlled gambling is conducted for the purpose of
determining compliance with the rules and regulations
adopted pursuant to the Gambling Control Act.
2. Visit, inspect, and examine all premises where gambling
equipment is manufactured, sold, or distributed.
3. Inspect all equipment and supplies in any gambling
establishment or in any premises where gambling
equipment is manufactured, sold, or distributed.
4. Summarily seize, remove, and impound any equipment,
supplies, documents, or records from any licensed
premises for the purpose of examination and inspection.
However, upon reasonable demand by the licensee or the
licensee's authorized representative, a copy of all
documents and records seized shall be made and left on
the premises.
5. Demand access to, and inspect, examine, photocopy, and
audit all papers, books, and records of an owner
licensee on the gambling premises in the presence of the
licensee or his/her agent.
This bill:
1. Limits the times that DOJ may perform routine audits at
controlled gambling establishments to the normal
business hours, between 8 a.m. to 6 p.m. within a
five-day work week.
2. Provides that the limitation on the times that a routine
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audit may be performed shall not be construed to take
away from DOJ's investigatory authority and duties.
Background
Prior to 1998, California's gambling industry was
essentially unregulated. In 1984, the Legislature enacted
the Gaming Registration Act, which required the Attorney
General's office to provide uniform, minimum regulation of
California's cardrooms. However, the scope of the Attorney
General's authority was extremely limited and funding was
inadequate - it was basically a registration program.
Recognizing the need for broader oversight of California's
gambling industry, the Legislature enacted the Gambling
Control Act [SB 8 (Lockyer, Chapter 867, Statutes of 1997].
The Act created a comprehensive scheme for statewide
regulation of legal gambling.
The provisions of the Act are administered through a
bifurcated system. The Bureau of Gambling Control within
DOJ was created to enforce the provisions of the Gambling
Control Act which includes, among other things, the
authority to demand access to, and inspect, examine,
photocopy, and audit all papers, books, and records of an
owner licensee on the gambling premises in the presence of
the licensee or his/her agent. In addition, the Act
created a five-member, Governor-appointed California
Gambling Control Commission to establish minimum regulatory
standards for the gambling industry and to ensure that
state gambling licenses are not issued to or held by
unsuitable or unqualified individuals.
Tribal-State Gaming Compacts . The provision of the
Compacts related to onsite audits and inspection of records
provides, "Inspection and copying of Gaming Operation
papers, books, and records may occur at any time,
immediately after notice to the Tribal Gaming Agency,
during the normal hours of the Gaming Facility's business
office, provided that the inspection and copying of those
papers, books or records shall not interfere with the
normal functioning of the Gaming Operation or Facility."
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
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SUPPORT : (Verified 8/18/09)
Lucky Chances Casino
Lucky Derby
Village Club
ARGUMENTS IN SUPPORT : According to supporters, "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."
Supporters of the bill described incidents where DOJ
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, had to contact the main operating manager,
who has access to the requested information, to avoid being
charged with a misdemeanor, pay
a fine, or both. According to the supporters of this bill,
the language referring to the inspection and copying of
gaming operation papers, books, and records is basically
the same as language contained in the 1999 Tribal-State
Gaming Compacts.
ASSEMBLY FLOOR :
AYES: Adams, Ammiano, Anderson, Arambula, Bill Berryhill,
Tom Berryhill, Blakeslee, Block, Blumenfield, Brownley,
Buchanan, Caballero, Charles Calderon, Carter, Chesbro,
Conway, Cook, Coto, Davis, De La Torre, De Leon, DeVore,
Duvall, Emmerson, Eng, Evans, Feuer, Fletcher, Fong,
Fuentes, Fuller, Furutani, Gaines, Galgiani, Garrick,
Gilmore, Hagman, Hall, Harkey, Hayashi, Hernandez, Hill,
Huber, Huffman, Jeffries, Jones, Knight, Lieu, Logue,
Bonnie Lowenthal, Ma, Mendoza, Miller, Nava, Nestande,
Niello, Nielsen, John A. Perez, V. Manuel Perez,
Portantino, Price, Ruskin, Salas, Saldana, Silva,
Skinner, Smyth, Solorio, Audra Strickland, Swanson,
Torlakson, Torres, Torrico, Tran, Villines, Bass
NO VOTE RECORDED: Beall, Krekorian, Monning, Yamada
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TSM:mw 8/18/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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