BILL ANALYSIS AB 2596 Page 1 Date of Hearing: May 5, 2010 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair AB 2596 (Portantino) - As Introduced: February 19, 2010 Policy Committee: Governmental Organization Vote: 21 - 0 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill allows the California Gambling Control Commission (CGCC) to assess late penalties for licensees who do not renew their licenses in a timely manner. In addition, this bill authorizes CGCC to determine that a license has been abandoned if a renewal application is not submitted within 30 days of the expiration of the existing license. FISCAL EFFECT 1)Workload costs for the CGCC to develop regulations related to the late penalties and to implement other administrative changes associated with the penalties would likely cost in excess of $100,000 in 2010-2011 and over $350,000 in 2011-12. [Gambling Control Fund] 2)The CGCC estimates that the late penalties would generate approximately $17,000 per year in additional revenue for the Gambling Control Fund. COMMENTS Rationale . The author notes that under existing law the Gambling Control Commission and the Bureau of Gambling Control do not have the authority to assess late penalties on those who are late in filing their applications for the renewal of their gambling licenses. In the author's opinion this lack of authority has become a significant problem. This bill seeks to address that problem by allowing CGCC to assess late penalties. AB 2596 Page 2 Analysis Prepared by : Julie Salley-Gray / APPR. / (916) 319-2081