BILL ANALYSIS Ó
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
SB 162 (Anderson)
Hearing Date: 5/23/2011 Amended: 5/16/2011
Consultant: Maureen Ortiz Policy Vote: G.O. 11-0
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BILL SUMMARY: SB 162 makes changes to the Gaming Policy
Advisory Committee, and prohibits the California Gambling
Control Commission from commencing action against a gambling
establishment for violations that occur by a third-party
provider of proposition player services.
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Fiscal Impact (in thousands)
Major Provisions 2011-12 2012-13 2013-14 Fund
Admin/enforcement expenses
-----------------minor-----------------
Special*
Loss of revenue
--------------unknown-------------------- Special*
*Gambling Control Fund
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STAFF COMMENTS:
SB 162 will sever liability from the cardrooms of violations
that occur by third party providers of proposition players which
may result in unknown loss of penalty and fine revenue to the
Gambling Control Fund. Currently, the Bureau of Gambling
Control within the Department of Justice investigates card clubs
for violations of the Gambling Control Act and if necessary,
files accusations. Then, the California Gambling Control
Commission enforces through disciplinary actions. SB 162 will
prohibit the Commission from commencing an action against a
gambling establishment, its owners, or its employees for
violations committed by a third-party provider of proposition
player services which essentially will prohibit the Bureau from
recovering any costs for its investigations from card clubs.
The possible revenue loss is unknown but would likely be minor
since fines would be collected directly from the third-party
provider.
The Commission has regulatory jurisdiction over cardrooms,
propositional players, and tribal casinos and is charged with
licensing responsibilities within the Gambling Control Act. The
SB 162 (Anderson)
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Bureau of Gambling Control within the Department of Justice is
responsible for enforcing the Gambling Control Act including
conducting ongoing compliance inspections of gambling operations
throughout the state.
The Gaming Policy Advisory Committee (GPAC) serves in an
advisory capacity to the Gambling Control Commission, reviews
proposed regulations, and provides input to the commission. The
GPAC consists of ten members appointed by the Commissioner, half
of which must currently be members of the general public. The
committee is required to convene "from time to time" for the
purpose of discussing recommended controlled gambling regulatory
policy and makes advisory recommendations to the CGCC and the
Department of Justice. The committee is prohibited from
advising on Indian gaming, and receives no per diem or
reimbursement for travel expenses from the state.
SB 162 makes the following changes to the Gaming Policy Advisory
Committee:
a) Eliminates the requirement that the GPAC consist of ten
members,
b) Requires that the committee meet at least twice per year,
and
c) Eliminates the requirement that half the advisory committee
members be representatives of the general public, and instead
requires at least 3 members be from the general public.
SB 162 also prohibits the Gambling Control Commission from
commencing an action against a gambling establishment, its
owners, or its employees for a violation of the Gambling Control
Act that was committed independently by a third-party provider
of proposition player services or an agent or employee of that
provider. Cardrooms frequently contract through a third-party
provider for the services of proposition players. There is no
employer-employee relationship between the club owner and the
proposition player.
This bill is similar to AB 1290 (Lara) pending in the Assembly.
That bill, however, currently contains only the provisions
relating to the Gaming Policy Advisory Committee.
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