BILL ANALYSIS AB 2596 Page 1 ASSEMBLY THIRD READING AB 2596 (Portantino) As Introduced February 19, 2010 Majority vote GOVERNMENTAL ORGANIZATION 21-0APPROPRIATIONS 12-5 ----------------------------------------------------------------- |Ayes:|Coto, Anderson, |Ayes:|Fuentes, Ammiano, | | |Blakeslee, Chesbro, Cook, | |Bradford, | | |Bradford, Evans, | |Charles Calderon, Coto, | | |Galgiani, Hall, | |Davis, Monning, Ruskin, | | |Hernandez, Hill, | |Skinner, Solorio, | | |Charles Calderon, Ma, | |Torlakson, Torrico | | |Mendoza, Nestande, V. | | | | |Manuel Perez, Portantino, | | | | |Silva, Torres, Torrico, | | | | |Tran | | | | | | | | |-----+--------------------------+-----+--------------------------| | | |Nays:|Conway, Harkey, Miller, | | | | |Nielsen, Norby | | | | | | ----------------------------------------------------------------- SUMMARY : Clarifies the rules of engagement for the California Gambling Control Commission (CGCC) in the process for cardroom owners to process renewal application for a gambling license. Specifically, this bill : 1)Allows the CGCC to assess reasonable late penalties in order to expedite the processing of a license renewal application if it is not filed in a timely manner. 2)Provides that where a complete renewal application has not been submitted within 30 days of the expiration of the existing license and notice has been given to the license, the CGCC may determine that the license is abandoned. EXISTING LAW : 1)Provides for the licensure of certain individuals and establishments involved in various gambling activities, and for the regulation of those activities, by the CGCC. AB 2596 Page 2 2)Provides for the enforcement of gambling activities by the Department of Justice, Bureau of Gambling Control. 3)Requires that an application for renewal of a license application be filed with the CGCC no later than 120 days prior to expiration of the current license. FISCAL EFFECT : According to the Assembly Appropriations Committee: 1)Workload costs for the CGCC to develop regulations related to the late penalties and to implement other administrative changes associated with the penalties under the Gambling Control Fund would likely cost in excess of $35,000 in 2010-2011 and over $115,000 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 : According to the author, this bill seeks to address the CGCC and how they administer the application renewal process for cardrooms. Analysis Prepared by : Rod Brewer / G. O. / (916) 319-2531 FN: 0004647