BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  AB 2596|
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                                 THIRD READING


          Bill No:  AB 2596
          Author:   Portantino (D)
          Amended:  8/19/10 in Senate
          Vote:     21

           
           SENATE GOVERNMENTAL ORG. COMMITTEE  :  8-0, 6/29/10
          AYES:  Wright, Harman, Calderon, Florez, Negrete McLeod,  
            Padilla, Price, Yee
          NO VOTE RECORDED:  Denham, Oropeza, Wyland

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           ASSEMBLY FLOOR  :  74-0, 6/2/10 - See last page for vote


           SUBJECT  :    Gambling:  licenses

           SOURCE  :     Author


           DIGEST  :    This bill makes various substantive changes to  
          the Gambling Control Act relative to license renewal and  
          payment of annual fees.

           Senate Floor Amendments  of 8/19/10 make technical and  
          conforming changes to the terms in the bill for consistency  
          with the Gambling Control Act.

           ANALYSIS  :    Under existing law, the Gambling Control Act  
          of 1997 established the California Gambling Control  
          Commission (CGCC).  Among other responsibilities, the Act  
          grants the CGCC licensing jurisdiction over the operation  
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          of card clubs and of all persons having an interest in the  
          operation of card clubs.  The Bureau of Gambling Control  
          has the task of investigating and enforcing controlled  
          gambling activities in California.

          Existing law provides that licenses renewed on or before  
          July 31, 2008, shall be for the renewal period in effect at  
          the time of the renewal but shall not expire any sooner  
          than 15 months after the approval of the renewal  
          application, and that licenses renewed on or after August  
          1, 2008, shall expire 24 months after the date of the  
          approval of the renewal application or after the expiration  
          of the prior license, whichever is later, as described.

          Existing law requires that an application for renewal of a  
          license application be filed with the commission no later  
          than 120 days prior to expiration of the current license.   
          Existing law requires the CGCC to act upon any application  
          for renewal prior to the date of expiration of the current  
          license and, upon renewal of any owner license, the  
          commission shall issue an appropriate renewal certificate  
          or validating device or sticker.

          Existing law provides that any owner licensee, who deals,  
          operates, carries on, conducts, maintains, or exposes for  
          play any gambling game after the expiration date of the  
          gambling license is liable to the state for all license  
          fees and penalties that would have been due upon renewal. 

          Under existing law, if an owner licensee fails to renew the  
          gambling license, the CGCC may order the immediate closure  
          of the premises and a cessation of all gambling activity  
          therein until the license is renewed.

          Existing law provides that the CGCC may deem an applicant  
          suitable to hold a state gambling license even if the  
          applicant has a financial interest in another business  
          conducting lawful gambling in California, or another  
          business conducting lawful gambling outside of California  
          that would violate California law if conducted within the  
          state.

          Existing law stipulates that an application for a license  
          or a determination of suitability shall be accompanied by  

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          the deposit of a sum of money that will be adequate to pay  
          the anticipated costs and charges incurred in the  
          investigation and processing of the application, as  
          specified. An applicant may be required to deposit any  
          additional sums as are required to pay final costs and  
          charges of the investigation. 

          This bill:

          1. Provides that the California Gambling Control Commission  
             (CGCC) may extend an owner's license for up to 180 days  
             if it falls behind in processing renewal applications  
             and makes it explicit that a gambling license shall be  
             renewed bieiennially.
          2. Authorizes the CGCC to assess reasonable late penalties  
             in order to expedite the processing of a renewal  
             application that is not filed in a timely manner.

          3. Authorizes the CGCC to assess a late penalty of up to  
             three times the renewal fee for late applications.

          4. Adds a new provision to the Act that allows the CGCC to  
             close a gambling establishment for up to 90 days if an  
             owner licensee fails to make timely payment of annual  
             fees.

           Comments
           
          According to the author's office, under existing law, the  
          CGCC and Bureau of Gambling Control do not have the  
          authority to assess late penalties on those who file their  
          applications for renewal of their gambling licenses late.   
          This has become a significant problem, so much so that the  
          CGCC recently held a hearing to discuss remedies which  
          could be assessed for those who file their applications  
          late. During this hearing, it was suggested that the CGCC  
          assess late penalties on those who file their applications  
          in a tardy fashion.  The CGCC responded that they do not  
          have the legal authority to assess late penalties on those  
          who file their applications for renewal late.  According to  
          the author's office, this bill has been introduced to  
          provide the CGCC with an alternative sanction for those who  
          do not file for the renewal of their gambling licenses in a  
          timely fashion.

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           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

           SUPPORT  :   (Verified  8/3/10)

          Commerce Club
          Hollywood Park Casino
          Village Club


           ASSEMBLY FLOOR  : 
          AYES: Adams, Ammiano, Anderson, Arambula, Bass, Beall, Bill  
            Berryhill, Blakeslee, Block, Blumenfield, Bradford,  
            Brownley, Buchanan, Caballero, Charles Calderon, Carter,  
            Chesbro, Conway, Cook, Coto, Davis, De La Torre, De Leon,  
            DeVore, Emmerson, Eng, Evans, Feuer, Fletcher, Fong,  
            Fuentes, Fuller, Furutani, Gaines, Galgiani, Garrick,  
            Gilmore, Hagman, Hall, Harkey, Hayashi, Hernandez, Hill,  
            Huber, Huffman, Jeffries, Jones, Knight, Logue, Bonnie  
            Lowenthal, Ma, Mendoza, Monning, Nava, Nestande, Niello,  
            Nielsen, V. Manuel Perez, Portantino, Ruskin, Salas,  
            Saldana, Silva, Skinner, Smyth, Solorio, Swanson,  
            Torlakson, Torres, Torrico, Tran, Villines, Yamada, John  
            A. Perez
          NO VOTE RECORDED: Tom Berryhill, Lieu, Miller, Norby, Audra  
            Strickland, Vacancy


          TSM:do  8/22/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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