BILL NUMBER: AJR 19 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY AUGUST 14, 2012
INTRODUCED BY Assembly Member Hall
(Principal coauthor: Senator Wright)
SEPTEMBER 8, 2011
Relative to Internet gambling taxation
.
LEGISLATIVE COUNSEL'S DIGEST
AJR 19, as amended, Hall. Internet gambling.
Federal taxation.
This measure would urge the Congress of the United States to enact
HR 3729 or S 166 to permanently extend and expand the federal
charitable tax deduction for contributions of food inventory.
This measure would respectfully urge the members of California's
Congressional delegation to preserve the right of the State of
California to opt out of any federal Internet gambling system, and
retain the right to operate its own intrastate Internet gambling
system, or opt into any federal Internet gambling system.
Fiscal committee: no.
WHEREAS, The most recent food insecurity data released by the
United States Department of Agriculture in 2011 shows that nearly 49
million people are at risk of hunger today in America; and
WHEREAS, At the same time, billions of pounds of food are wasted
each year; and
WHEREAS, Since 1976, the United States Congress has permitted a
federal food donation tax deduction to taxpayers that are "C"
corporations that donate food products to charities in need across
the country; and
WHEREAS, This enhanced deduction was temporarily expanded to
taxpayers without regard to whether the taxpayer was a "C"
corporation non-C corporations, such as small businesses and farmers
in 2005, with two-year extensions granted in 2006, 2008, and 2010;
and
WHEREAS, This enhanced deduction for taxpayers without regard to
whether the taxpayer was a "C" corporation non-C corporations expired
at the end of 2011 and is currently up for permanent reauthorization
in HR 3729 and S 166; and
WHEREAS, This enhanced deduction encourages the donating of excess
food to charity, by helping to offset the costs associated with
storing and transporting the excess food; and
WHEREAS, Permanent reauthorization of the enhanced deduction for
taxpayers without regard to whether the taxpayer was a "C"
corporation non-C corporations is needed to maximize the potential
donation opportunity; now, therefore, be it
Resolved by the Assembly and the Senate of the State of
California, jointly, That the Legislature respectfully urges the
Congress of the United States to enact HR 3729 or S 166 to
permanently extend and expand the federal charitable tax deduction
for contributions of food inventory; and be it further
Resolved, That the Chief Clerk of the Assembly transmit copies of
this resolution to each Senator and Representative from California in
the Congress of the United States.
WHEREAS, Leading gaming consultants estimate that in 2005, United
States citizens illegally wagered $4 billion online at off-shore,
non-United States Internet gambling Web sites, and that every week
more than 1.5 million Californians participate in illegal online
gambling on the Internet; and
WHEREAS, Currently hundreds of Internet gambling Web sites operate
outside the United States, unregulated by any United States
governmental entity and in violation of United States laws. Questions
often arise about the honesty and the fairness of the games played
on these Internet Web sites, and about the true purpose for, and use
of, proceeds generated by these unregulated Internet Web sites,
particularly since the United States Department of Justice has
indicted the owners and operators of several of the leading Internet
gaming Web sites for money laundering, bank fraud, and other federal
felony offenses; and
WHEREAS, In October 2006, the United States Congress passed, and
the President signed, the SAFE Port Act to increase the security of
United States ports. Embedded within the language of that bill was a
section called the Unlawful Internet Gambling Enforcement Act of 2006
(UIGEA), which prohibits the use of banking instruments such as
credit cards, checks, or fund transfers for interstate Internet
gambling. The statute, however, has not eliminated illegal,
unregulated Internet gambling, nor has it provided any increased
protection for participants from game operators and others who would
impair the integrity of online gambling activity; and
WHEREAS, Congress included specific provisions in UIGEA for
individual states to permit intrastate Internet gambling, provided
that state laws permitting and regulating that activity could impose
reasonable protections against participation by underage persons or
by persons located outside the boundaries of the states authorizing
that activity. While the federal Indian Gaming Regulatory Act
balanced the interests of three sovereign governments, the state,
Indian tribes, and the federal government, UIGEA was designed to
balance the federal interest in secure financial transactions with
the state power to determine how online gambling should take place
within the states; and
WHEREAS, The Legislature has held numerous hearings and taken
hours of testimony over the past 18 months on the issues and
challenges surrounding intrastate Internet gaming, and those hearings
have been instrumental in identifying problems and solutions that
have narrowed the differences among various stakeholders. Witnesses
have testified that a state regulated Internet gaming framework will
ensure that the games Californians are authorized to play are honest,
that winners are paid when and in amounts due, and that the state
and its citizens, rather than illegal off-shore companies operating
outside the reach of, and contrary to, state and federal laws, will
benefit from economic activity in this state; and
WHEREAS, The Legislature has made a significant amount of progress
on intrastate Internet gaming to the point where, absent unforeseen
circumstances, a sound and objective proposal is fully expected to be
developed for consideration by the Legislature during the 2012
portion of the 2011-12 Regular Session; and
WHEREAS, Congress currently has pending before it several bills
that would authorize and regulate certain forms of online gaming that
could be a disservice to all Californians and place the state at a
severe regulatory, competitive, and financial disadvantage; now,
therefore, be it
Resolved by the Assembly and the Senate of the State of
California, jointly, That the Legislature respectfully urges the
members of California's Congressional delegation to preserve the
right of the State of California to opt out of any federal Internet
gambling system, and retain the right to operate its own intrastate
Internet gambling system as currently permissible under UIGEA, or opt
into any federal Internet gambling system; and be it further
Resolved, That the Chief Clerk of the Assembly transmit copies of
this resolution to each Senator and Representative from California in
the Congress of the United States, and to the author for appropriate
distribution.