BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 241|
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THIRD READING
Bill No: AB 241
Author: Hall (D)
Amended: As introduced
Vote: 21
SENATE GOVERNMENTAL ORGANIZATION COMM. : 10-1, 6/28/11
AYES: Anderson, Berryhill, Calderon, Cannella, De León,
Evans, Hernandez, Strickland, Wyland, Yee
NOES: Wright
NO VOTE RECORDED: Corbett, Padilla
SENATE APPROPRIATIONS COMMITTEE : 7-2, 8/25/11
AYES: Kehoe, Alquist, Emmerson, Lieu, Pavley, Price,
Steinberg
NOES: Walters, Runner
ASSEMBLY FLOOR : 78-1, 5/31/11 - See last page for vote
SUBJECT : Gambling: moratorium
SOURCE : Author
DIGEST : This bill extends the gambling moratorium
related to the expansion of card rooms and the issuance of
new card room licenses from January 1, 2015 to January 1,
2020.
ANALYSIS :
Existing law :
CONTINUED
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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. Declares 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. Authorizes local governments to approve the existence
and expansion of gambling establishments.
4. 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
card rooms.
5. Limits the authority of a local jurisdiction to expand
gambling, including the authority to increase the number
of tables that a gambling establishment may operate.
6. 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.
7. Defines an "expansion of gambling," in part, as a change
that results in an increase of 25 percent or more in the
number of tables a gambling establishment may operate
based on the number of tables authorized on January 1,
1996.
8. 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
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with DOJ prior to September 1, 2000.
This bill extends the gambling moratorium related to the
expansion of card rooms and the issuance of new card room
licenses from January 1, 2015 to January 1, 2020.
Comments
There are currently two statutory moratoriums in place that
restrict the growth of card clubs in California. One
prohibits the state from issuing licenses for new gambling
establishments. The other limits the amount by which
controlled gambling can expand in local jurisdictions to no
more than 24.99 percent, compared to the percentage amount
that was in effect 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 expire on January 1, 2015.
The author's office states that California has had a
longstanding policy against expansion of gambling
establishments in the state. Since 1995, state law has
discouraged cities and counties from expanding gambling,
particularly in urban and suburban communities.
Extending the current prohibition will not impact existing
gambling facilities in California. Rather, this measure
will provide needed financial stability to local
governments that rely upon revenue from licensed gambling,
and it will continue the state's commitment to limit the
number of gambling facilities operated in the state.
Related Legislation
AB 2193 (Hall), 2009-10 Session, would have extended the
gambling moratorium related to the expansion of card rooms
and the issuance of new card room licenses from January 1,
2015 to January 1, 2020. (Vetoed)
SB 213 (Florez), 2009-10 Session, would have extended the
moratorium on the issuance of new gambling establishments
from January 1, 2015 to January 1, 2020, among other
provisions. (Vetoed)
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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 enacts
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, authorizes
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 three tables
if the ordinance in effect on July 1, 2007, provided for
five to eight tables, and by four tables if the ordinance
in effect on July 1, 2007, provided for 9 to 12 tables.
SB 730 (Florez), Chapter 438, Statutes of 2007, authorizes
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, extends
the moratorium on the expansion of gambling from January 1,
2010, to January 1, 2015.
SB 1198 (Florez), Chapter 181, Statutes of 2006, deletes
"wagering limits" from the list of items that are
considered expansion of gambling pursuant to the moratorium
on the expansion of existing gaming in a locality.
AB 635 (Bermudez), Chapter 694, Statutes of 2005,
authorizes 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, permitts
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, authorizes
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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. The bill extends the moratorium on
the expansion of gambling from January 1, 2007 to January
1, 2010.
SB 100 (Maddy), Chapter 387, Statutes of 1995, enacts the
original moratorium on card room expansion, prohibiting the
creation of new card rooms until January 1, 2001.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Fiscal Impact (in thousands)
Major Provisions 2012-13 2013-14
2014-15 Fund
Moratorium Unknown
potential loss of revenue Special*
of several hundred thousand annually
beginning 2015
*Gambling Control Fund
SUPPORT : (Verified 8/25/11)
California Cities for Self Reliance Joint Powers Authority
California Gaming Association
City of Bell Gardens
City of Hawaiian Gardens
OPPOSITION : (Verified 8/25/11)
Sutter's Place, Inc. dba Bay 1010
ARGUMENTS IN SUPPORT : Supporters state that the card
clubs in their cities provide revenues that pay for
important programs and services, including public safety,
parks, water delivery systems, transportation, and the
like. Supporters state that the cities have millions of
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dollars in long-term debt service that is financed in large
part by club revenues.
Supporters claim that, if the licensing moratorium were to
expire, it would be quickly followed by expanded gaming
activities in adjacent areas and would negatively impact
the fiscal health of our community ÝHawaiian Gardens] and
many others across the state.
ARGUMENTS IN OPPOSITION : Opponents believe that the
existing moratorium on the expansion of gambling already
harms their business, employees, the state and the local
jurisdiction. The rigid nature of the moratorium stifles
innovation and competition. By extending inflexible
regulation for five more years, this bill prevents creation
of additional jobs. Opponents contend that this bill
frustrates their ability to compete and grow.
ASSEMBLY FLOOR :
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, Bill
Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Campos,
Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson,
Donnelly, Eng, Feuer, Fletcher, Fong, Fuentes, Furutani,
Beth Gaines, Galgiani, Garrick, Gatto, Gordon, Grove,
Hagman, Hall, Harkey, Hayashi, Roger Hernández, Hill,
Huber, Hueso, Huffman, Jeffries, Jones, Knight, Lara,
Logue, Bonnie Lowenthal, Ma, Mansoor, Mendoza, Miller,
Mitchell, Monning, Morrell, Nestande, Nielsen, Norby,
Olsen, Pan, Perea, V. Manuel Pérez, Portantino, Silva,
Skinner, Smyth, Solorio, Swanson, Torres, Valadao,
Wagner, Wieckowski, Williams, Yamada, John A. Pérez
NOES: Halderman
NO VOTE RECORDED: Gorell
PQ:do 8/29/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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