California Legislature—2013–14 Regular Session

Assembly BillNo. 356


Introduced by Assembly Member Waldron

February 14, 2013


An act to amend Section 19801 of the Business and Professions Code, relating to gaming.

LEGISLATIVE COUNSEL’S DIGEST

AB 356, as introduced, Waldron. Gaming.

The Gambling Control Act provides for the licensure of certain individuals and establishments involved in various gambling activities, and for the regulation of those activities, by the California Gambling Control Commission.

This bill would make a technical, nonsubstantive change to these provisions.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

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SECTION 1.  

Section 19801 of the Business and Professions
2Code
is amended to read:

3

19801.  

The Legislature hereby finds and declares all of the
4following:

5(a) State law prohibits commercially operated lotteries, banked
6or percentage games, and gambling machines, and strictly regulates
7parimutuel wagering on horse racing. To the extent that state law
8categorically prohibits certain forms of gambling and prohibits
P2    1gambling devices, nothing herein shall be construed, in any manner,
2to reflect a legislative intent to relax those prohibitions.

3(b) The State of California has permitted the operation of
4gambling establishments for more than 100 years. Gambling
5establishments were first regulated by the State of California
6pursuant to legislation which was enacted in 1984. Gambling
7establishments currently employ more than 20,000 people in the
8State of California, and contribute more than one hundred million
9dollars ($100,000,000) in taxes and fees to California’s
10government. Gambling establishments are lawful enterprises in
11the State of California, and are entitled to full protection of the
12laws of this state.

13(c) Gambling can become addictive and is not an activity to be
14promoted or legitimized as entertainment for children and families.

15(d) Unregulated gambling enterprises are inimical to the public
16health, safety, welfare, and good order. Accordingly, no person in
17this state has a right to operate a gambling enterprise except as
18may be expressly permitted by the laws of this state and by the
19ordinances of local governmental bodies.

20(e) It is the policy of this state that gambling activities that are
21not expressly prohibited or regulated by state law may be prohibited
22or regulated by local government. Moreover, it is the policy of this
23state that no new gambling establishment may be opened in a city,
24county, or city and county in which a gambling establishment was
25not operating on and before January 1, 1984, except upon the
26affirmative vote of the electors of that city, county, or city and
27county.

28(f) It is not the purpose of this chapter to expand opportunities
29for gambling, or to create any right to operate a gambling enterprise
30in this state or to have a financial interest in any gambling
31enterprise. Rather, it is the purpose of this chapter to regulate
32businesses that offer otherwise lawful forms of gambling games.

33(g) Public trust that permissible gambling will not endanger
34public health, safety, or welfare requires that comprehensive
35measures be enacted to ensure that gambling is free from criminal
36and corruptive elements, that it is conducted honestly and
37competitively, and that it is conducted in suitable locations.

38(h) Public trust and confidence can only be maintained by strict
39and comprehensive regulation of all persons, locations, practices,
40associations, and activities related to the operation of lawful
P3    1gambling establishments and the manufacture and distribution of
2permissible gambling equipment.

3(i) All gambling operations, all persons having a significant
4involvement in gambling operations, all establishments where
5gambling is conducted, and all manufacturers, sellers, and
6distributors of gambling equipment must be licensed and regulated
7to protect the public health, safety, and general welfare of the
8residents of this state as an exercise of the police powers of the
9state.

10(j) To ensure that gambling is conducted honestly, competitively,
11and free of criminal and corruptive elements, all licensed gambling
12establishments in this state must remain open to the general publicbegin insert,end insert
13 and the access of the general public to licensed gambling activities
14must not be restricted in any manner, except as provided by the
15Legislature. However, subject to state and federal prohibitions
16against discrimination, nothing herein shall be construed to
17preclude exclusion of unsuitable persons from licensed gambling
18establishments in the exercise of reasonable business judgment.

19(k) In order to effectuate state policy as declared herein, it is
20necessary that gambling establishments, activities, and equipment
21be licensed, that persons participating in those activities be licensed
22or registered, that certain transactions, events, and processes
23involving gambling establishments and owners of gambling
24establishments be subject to prior approval or permission, that
25unsuitable persons not be permitted to associate with gambling
26activities or gambling establishments, and that gambling activities
27take place only in suitable locations. Any license or permit issued,
28or other approval granted pursuant to this chapter, is declared to
29be a revocable privilege, and no holder acquires any vested right
30therein or thereunder.

31(l) The location of lawful gambling premises, the hours of
32operation of those premises, the number of tables permitted in
33those premises, and wagering limits in permissible games
34conducted in those premises are proper subjects for regulation by
35local governmental bodies. However, consideration of those same
36subjects by a state regulatory agency, as specified in this chapter,
37is warranted when local governmental regulation respecting those
38subjects is inadequate or the regulation fails to safeguard the
39legitimate interests of residents in other governmental jurisdictions.

P4    1(m) The exclusion or ejection of certain persons from gambling
2establishments is necessary to effectuate the policies of this chapter
3and to maintain effectively the strict regulation of licensed
4gambling.

5(n) Records and reports of cash and credit transactions involving
6gambling establishments may have a high degree of usefulness in
7criminal and regulatory investigations and, therefore, licensed
8gambling operators may be required to keep records and make
9reports concerning significant cash and credit transactions.



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