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