BILL ANALYSIS Ó
AB 241
Page 1
Date of Hearing: April 13, 2011
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Isadore Hall, Chair
AB 241 (Hall) - As Introduced: February 3, 2011
SUBJECT : Gambling: moratorium.
SUMMARY : Extends the gambling moratorium related to the
expansion of cardrooms and the issuance of new cardroom licenses
from January 1, 2015 to January 1, 2020.
EXISTING LAW :
1) The Gambling Control Act (Act), generally regulates the
licensing and operation of gambling establishments. The Act is
administered by the California Gambling Control Commission
(CGCC) and is enforced by the Department of Justice (DOJ)
2) Expresses the intent of the Legislature that nothing in the
Act shall be construed to preclude any city, county, or city and
county from prohibiting any gambling activity, from imposing
more stringent local controls or conditions upon gambling than
are imposed by the Act or by CGCC.
3) Existing law, Article 13 (commencing with Section 19960 of
the Business and Professions Code), addresses the authority of
local governments to approve the existence and expansion
of gambling establishments. That article prohibits a local
jurisdiction from issuing a gambling license with respect to any
gambling establishment unless a specified measure was adopted by
the voters of that jurisdiction, or the gambling establishment
is located in a jurisdiction that, prior to January 1, 1984,
expressly authorized the operation of one or more cardrooms. In
addition, Sections 19961 and 19962 limit the authority of a
local jurisdiction to expand gambling, including the authority
to increase the number of tables that a gambling establishment
may operate.
4) Imposes a moratorium on the authority of a local
jurisdiction to amend its gambling ordinance to provide for an
expansion of gambling. This moratorium remains in effect until
January 1, 2015.
5) Defines an "expansion of gambling," in part, as a change
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that results in an increase of 25% or more in the number of
tables a gambling establishment may operate based on the number
of tables authorized on January 1, 1996.
6) Prohibits CGCC, until January 1, 2015, from issuing a
gambling license for a gambling establishment that was not
licensed to operate on December 31, 1999, unless an application
to operate that establishment was on file with DOJ prior to
September 1, 2000.
FISCAL EFFECT : Unknown.
COMMENTS :
There are currently two statutory moratoriums that restrict the
growth of card clubs in California. One moratorium
prohibits the state from issuing licenses for new gambling
establishments. The other limits the amount that controlled
gambling can expand in local jurisdictions to no more than
24.99% compared to the amount that was authorized on January 1,
1999. Most local jurisdictions have modified their gambling
ordinances to realize the maximum amount of growth authorized by
law. Both of these moratoriums are set expire on January 1,
2015.
Purpose of the bill : According to proponents of this measure,
the existing moratorium that is set to expire on January 1, 2015
needs to be extended at this point for an additional five years
because communities that currently benefit from a stable card
room revenue source are unwilling to commit to long term civic
projects and activities unless they can be assured that the
revenue stream from cardrooms will continue to be
available for at least another 10 years. Proponents contend
that eliminating the moratorium altogether and allowing
additional card rooms to open would simply dilute the revenue
within existing communities.
Prior attempts to extend moratorium vetoed by previous Governor :
This bill is substantially similar to two previous bill
which were vetoed by Governor Arnold Schwarzenegger: SB 213
(Florez) in 2009 and AB 2193 (Hall) in 2010. In his veto
message the Governor stated, "There is no compelling rationale
for extending the gambling moratorium at this time, as a similar
extension was approved just three years ago. The gambling
moratorium under existing law does not expire until 2015, which
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gives the Legislature ample time to evaluate whether the
existing moratorium should be extended."
Prior legislation :
AB 2193 (Hall), 2009-10 Session. Would have extended the
gambling moratorium related to the expansion of cardrooms and
the issuance of new cardroom licenses from January 1, 2015 to
January 1, 2020. (Vetoed by Governor)
SB 213 (Florez) 2009-10 Session. Among other things, would have
extended the moratorium on the issuance of new gambling
establishments from January 1, 2015 to January 1, 2020. (Vetoed
by Governor)
AB 441 (Hall), Chapter 530, Statutes of 2010. Modifies
provisions of the Act as it relates to the limit on increases in
the number of gambling tables that a local jurisdiction may
authorize without voter approval.
AB 293 (Mendoza) Chapter 233, Statutes of 2009. Made numerous
changes to the Gambling Control Act, including replacing
references to "gambling establishments" with "gambling
enterprises" in specific sections of the Act.
AB 163 (Mendoza) Chapter 647, Statutes of 2008. Authorized a
city or county, without voter approval, to amend an ordinance to
increase the number of gambling tables that may be operated in a
gambling establishment by 3 tables if the ordinance in effect on
July 1, 2007, provided for 5 to 8 tables, and by 4 tables if the
ordinance in effect on July 1, 2007, provided for 9 to 12
tables.
SB 730 (Florez) Chapter 438, Statutes of 2007. Among other
things, authorized CGCC to issue licenses for a two-year period
and required CGCC to establish a portable key employee license
program.
AB 1973 (Bermudez) Chapter 854, Statutes of 2006. Among other
things, extended the moratorium on the expansion of gambling
from January 1, 2010, to January 1, 2015.
SB 1198 (Florez) Chapter 181, Statutes of 2006. Deleted
"wagering limits" from the list of items that are considered
expansion of gambling pursuant to the moratorium on the
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expansion of existing gaming in a locality.
AB 635 (Bermudez) Chapter 694, Statutes of 2005. Permitted
local governments to revise their ordinances limiting the number
of tables in card rooms by 24.99 percent or two tables,
whichever is greater, as compared with the level or number
operated or authorized on January 1, 1996, without voter
approval.
AB 864 (Firebaugh) Chapter 872, Statutes of 2004. Permitted
cities and counties to adopt ordinances permitting the expansion
of gambling that result in less than a 25 percent increase,
without voter approval.
SB 814 (Vincent) Chapter 799, Statutes of 2003. Authorized CGCC
to renew gambling licenses for a period of up to 2 years.
Specified that for any license issued for more than one year the
licensee shall continue to pay the annual gambling license fee.
Also, extended the moratorium on the expansion of gambling from
January 1, 2007 to January 1, 2010.
SB 100 (Maddy) Chapter 387, Statutes of 1995. Established the
original moratorium on card room expansion, prohibiting the
creation of new card rooms until January 1, 2001.
REGISTERED SUPPORT / OPPOSITION :
Support
California Gaming Association
Opposition
None on file
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531