BILL NUMBER: AB 1290	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 23, 2012
	AMENDED IN ASSEMBLY  MARCH 31, 2011

INTRODUCED BY   Assembly Member  Lara   Hill


                        FEBRUARY 18, 2011

   An act to  amend Section 19817 of   repeal
and add Section 19852.2 of  the Business and Professions Code,
relating to  gambling   gaming  .



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1290, as amended,  Lara   Hill  .
 California Gambling Control Commission: Gaming Policy
Advisory Committee.   Gaming: gambling enterprises.
 
   The Gambling Control Act provides for the licensure of certain
individuals and establishments that conduct controlled games, as
defined, and for the regulation of these gambling activities by the
California Gambling Control Commission. That law provides that, if
the owner of a gambling enterprise is not a person, the owner is not
eligible for a gambling license unless specified persons involved in
the enterprise obtain a gambling license. Existing law authorizes the
commission to exempt specified limited partners in limited
partnerships from the licensing requirements described above solely
for the purpose of the licensure of a card club located on the
grounds of a racetrack that is owned by a limited partnership that
also owns the racetrack.  
   This bill would repeal that licensure exemption. The bill,
instead, would provide, solely for the purpose of the licensure of a
gambling enterprise or gambling establishment that is owned directly
or indirectly by a racetrack limited partnership owner, as defined,
and under specified conditions, that these licensing requirements
shall apply only to a corporation, and its officers, directors, and
key employees, that (1) is directly or indirectly owned by a
racetrack limited partnership owner, (2) leases or owns the gambling
establishment or manages, supervises, or controls the gambling
enterprise, and (3) holds the exclusive right, authority, and
discretion to manage, supervise, conduct, and control the day-to-day
operations, and direct the policies, of the gambling enterprise,
without influence from, or direction by, the racetrack limited
partnership owner, its general partners, or its investment managers
or advisors. The bill would prohibit any other person or entity from
being required to be licensed, except that if the corporation chooses
to retain another person or entity to manage, supervise, control,
and conduct the day-to-day operations, and direct the policies, of
the gambling enterprise, that person or entity would be required to
be licensed in addition to the corporation and its officers,
directors, and key employees. This bill would make a related
statement of legislative intent regarding a specified racetrack and
card club.  
   Existing law establishes the California Gambling Control
Commission and requires the commission to establish a Gaming Policy
Advisory Committee composed of representatives of controlled gambling
licensees and members of the general public. Existing law requires
the executive director of the commission to convene this advisory
committee, from time to time, for the purpose of discussing
recommended controlled gambling regulatory policy.  

   This bill would require the advisory committee to meet at least
twice a year and would require the commission to consult with the
committee on recommended proposed regulations. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    (a) The Legislature hereby finds and
declares the following:  
   (1) The card club located at the Hollywood Park Racetrack has
existed since 1995 and provides significant revenue and economic
activity to the City of Inglewood.  
   (2) The card club provides nearly 1,000 jobs for individuals in
and around the City of Inglewood.  
   (3) Due to the card club's unique nature of being located at a
horseracing track, the Legislature has, since 1995, enacted various
measures necessary to accommodate changes in ownership of the
racetrack where the card club is located in order to ensure the
continued operation of the card club and to maintain the jobs and
economic impact derived from its operation.  
   (4) The Hollywood Park Racetrack is currently owned by a number of
related limited partnerships that are capitalized substantially by
public pension plans.  
   (5) The current law governing licensing of the card club, however,
neither adequately contemplates nor accommodates the ownership of
real property or the improvements thereon, including the premises of
a card club, by a number of related limited partnerships that are
substantially capitalized by public pension plans nor does it
accommodate the role of affiliates of, and advisors to, those
partnerships.  
   (b) It is the intent of the Legislature in enacting this measure
to ensure that the continued operation of the card club located at
the Hollywood Park Racetrack is possible. 
   SEC. 2.    Section 19852.2 of the   Business
and Professions Code   is repealed.  
   19852.2.  (a) Notwithstanding Section 19852 or any other provision
of law to the contrary, and solely for the purpose of the licensure
of a card club located on the grounds of a racetrack that is owned by
a limited partnership that also owns the racetrack, the commission,
in its discretion, may exempt from the licensing requirements of this
chapter:
   (1) The limited partners in a limited partnership that holds
interest in a holding company if all of the following criteria are
met:
   (A) The limited partners of the limited partnership in the
aggregate directly hold at least 95 percent of the interest in the
holding company.
   (B) The limited partner is one of the following:
   (i) An "institutional investor" as defined in subdivision (s) of
Section 19805.
   (ii) An "employee benefit plan" as defined in Section 1002(3) of
Title 29 of the United States Code.
   (iii) An investment company that manages a state university
endowment.
   (2) Other limited partners in a limited partnership described in
paragraph (1), if the partners do not number more than five and each
partner indirectly owns one percent or less of the shares of the
interest in the holding company.
   (3) A limited partner in a limited partnership that holds in the
aggregate less than 5 percent of the interest in a holding company.
   (b) Nothing in this section shall be construed to limit the
licensure requirements for a general partner of a limited partnership
or a limited partner that is not specifically described in this
section. 
   SEC. 3.    Section 19852.2 is added to the  
Business and Professions Code   , to read:  
   19852.2.  (a) Notwithstanding Sections 19851, 19852, and 19853 or
any other provision of law to the contrary, and solely for the
purpose of the licensure of a gambling enterprise or a gambling
establishment that is owned directly or indirectly by a racetrack
limited partnership owner, the licensing requirements of this chapter
shall apply only to the following and no other person or entity
shall be required to be licensed:
   (1) In the case of a corporation, its officers, directors and key
employees, but not its shareholders; provided that (A) such
corporation is directly or indirectly owned by a racetrack limited
partnership owner and (B) (i) such corporation leases or owns the
gambling establishment, or (ii) such corporation manages, supervises,
or controls the gambling enterprise, and such corporation's
officers, directors, or key employees hold the exclusive right,
authority, and discretion to manage, supervise, conduct, and control
the day-to-day operations, and direct the policies, of the gambling
enterprise, without influence from or direction by the racetrack
limited partnership owner, its general partner, or its investment
manager, or advisors, except that the racetrack limited partnership
owner, its general partner, and its investment manager shall have the
right to effectuate the termination or replacement of such
corporation's directors, provided that any replacement director shall
be licensed in accordance with this paragraph; and
   (2) If a corporation described in clause (i) of subparagraph (B)
of paragraph (1) chooses to retain another person or entity to
manage, supervise, control, and conduct the day-to-day operations,
and direct the policies, of the gambling enterprise, then (A) such
corporation's officers, directors, and key employees shall be
licensed in accordance with paragraph (1), and (B) such retained
person or entity shall be licensed in accordance with the applicable
licensing requirements of this chapter.
   (b) This section shall apply to a gambling enterprise or gambling
establishment only if the following conditions are met:
   (1) The gambling establishment is located on any portion of or
contiguous to the grounds on which a racetrack is or had been
previously located and horserace meetings were authorized to be
conducted by the California Horse Racing Board on or before January
1, 2012; and
   (2) Such grounds are directly or indirectly owned by a racetrack
limited partnership owner.
   (c) For purposes of this section, a "racetrack limited partnership
owner" is defined as a limited partnership or, individually or
collectively, a number of related limited partnerships, that are at
least 80 percent capitalized by limited partners that are an
"institutional investor" as defined in subdivision (w) of Section
19805, an "employee benefit plan" as defined in Section 1002(3) of
Title 29 of the United States Code, or an investment company that
manages a state university endowment.  
  SECTION 1.    Section 19817 of the Business and
Professions Code is amended to read:
   19817.  The commission shall establish and appoint a Gaming Policy
Advisory Committee of 10 members. The committee shall be composed of
representatives of controlled gambling licensees and members of the
general public in equal numbers. The executive director shall, from
time to time, convene the committee for the purpose of discussing
matters of controlled gambling regulatory policy and any other
relevant gambling-related issue, provided that the committee shall
meet at least twice a year. The commission shall consult with the
committee on proposed regulations. The recommendations concerning
gambling policy and proposed regulations made by the committee shall
be presented to the commission, but shall be deemed advisory and not
binding on the commission in the performance of its duties or
functions. The committee shall not advise the commission on Indian
gaming.