BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 162|
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THIRD READING
Bill No: SB 162
Author: Anderson (R)
Amended: 5/16/11
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE : 11-0, 4/12/11
AYES: Wright, Anderson, Berryhill, Cannella, Corbett, De
León, Evans, Hernandez, Strickland, Wyland, Yee
NO VOTE RECORDED: Calderon, Padilla
SENATE APPROPRIATIONS COMMITTEE : 9-0, 5/23/11
AYES: Kehoe, Walters, Alquist, Emmerson, Lieu, Pavley,
Price, Runner, Steinberg
SUBJECT : California Gambling Control Commission: Gaming
Policy
Advisory Committee
SOURCE : Commerce Club
DIGEST : This bill 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.
ANALYSIS :
Existing law
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1. The Gambling Control Act (Act) establishes a regulatory
framework for gaming in California, creating the
California Gambling Control Commission (Commission) with
the authority to approve deny, revoke, or suspend
gambling licenses and permits for reasonable cause.
2. Establishes the Division of Gambling Control within the
Department of Justice (DOJ) to investigate and enforce
controlled gambling activities in the state. The
Attorney General has established the Bureau of Gambling
Control within DOJ.
3. Authorizes a licensed gambling enterprise to contract
with a third party for the purpose of providing
proposition player services at a gambling establishment
under specified conditions.
4. Requires DOJ to make appropriate investigations whether
there has been any violation of the Act or any
regulations adopted under the Gambling Control Act, and
authorizes the DOJ to suspend a license or permit.
5. Establishes a 10-member Gaming Policy Advisory
Committee, composed of representatives of controlled
gambling licensees and members of the general public in
equal numbers.
6. Requires the executive Director of the Commission to
periodically convene the Advisory Committee to discuss
recommended controlled gambling regulatory policy.
This bill makes the following changes to the Gaming Policy
Advisory Committee (GPAC):
A. Eliminates the requirement that GPAC consist of ten
members.
B. Requires that the committee meet at least twice per
year.
C. Eliminates the requirement that half the advisory
committee members be representatives of the general
public, and instead requires at least three members be
from the general public.
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This bill 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.
Comments
This bill 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 DOJ
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. This bill prohibits 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 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.
GPAC serves in an advisory capacity to the Gambling Control
Commission, reviews proposed regulations, and provides
input to the commission. 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 Gambling
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Control Commission and the DOJ. The Committee is
prohibited from advising on Indian gaming, and receives no
per diem or reimbursement for travel expenses from the
state.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
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
SUPPORT : (Verified 5/24/11)
Commerce Club (source)
Hawaiian Gardens Club
Hollywood Park Casino
Lucky Chances
Lucky Derby
Village Club
ARGUMENTS IN SUPPORT : According to the author's office,
this bill seeks to revitalize the Gaming Policy Advisory
Committee by giving the chair of the Gambling Control
Commission the ability to make more appointments. In
addition, there is currently no statute of limitations
within which an alleged violation of the Gambling Control
Act must be charged. Some allegations have been filed
recently alleging violations that have occurred in 2007,
2008 and reportedly even as far back as 2002. It is very
difficult defending an allegation years after an event.
PQ:do 5/24/11 Senate Floor Analyses
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SUPPORT/OPPOSITION: SEE ABOVE
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