BILL ANALYSIS                                                                                                                                                                                                    



                                                                AB 2596
                                                                Page  1
        CONCURRENCE IN SENATE AMENDMENTS
        AB 2596 (Portantino)
        As Amended  August 19, 2010
        Majority vote
         
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        |ASSEMBLY:  |74-0 |(June 2, 2010)  |SENATE: |31-4 |(August 24,    |
        |           |     |                |        |     |2010)          |
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         Original Committee Reference:    G.O.

        SUMMARY  :  Clarifies the rules of engagement for the California  
        Gambling Control Commission (CGCC) in the process for gambling  
        establishment owners to process a renewal application for a gambling  
        license.  

         The Senate amendments  :
         
        1)Provide 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 biennially.

        2)Authorize 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)Authorize the CGCC to assess a late penalty of up to three times  
          the renewal fee for late applications.

        4)Add 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. 

        5)Delete the term "late penalties" and replaces it with "delinquency  
          fees."

        6)Make technical clarifying changes. 

         AS PASSED BY THE ASSEMBLY  , this bill clarifies the rules of  
        engagement for the California            Gambling Control Commission  
        (CGCC) in the process for gambling establishment owners to process a  
        renewal application for a gambling license.

         FISCAL EFFECT  :  According to the Senate Appropriations Committee,  








                                                                AB 2596
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        pursuant to Senate Rule 28.8, negligible state costs.

         COMMENTS  :  According to the author's office, this measure 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.

        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.   









































                                                                AB 2596
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        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.  

        This bill, as amended in the Senate, is consistent with Assembly  
        actions.


         Analysis Prepared by  :  Rod Brewer / G.O. / (916) 319-2531


                                                                    FN:  
        0006649