BILL ANALYSIS AB 2596 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 2596 (Portantino) As Amended August 19, 2010 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |74-0 |(June 2, 2010) |SENATE: |31-4 |(August 24, | | | | | | |2010) | ----------------------------------------------------------------- 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 Page 2 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 Page 3 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