BILL ANALYSIS Ó
Bill No: AB
654
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2013-2014 Regular Session
Staff Analysis
AB 654 Author: Hall
As Amended: March 19, 2013
Hearing Date: June 11, 2013
Consultant: Art Terzakis
SUBJECT
Gambling
DESCRIPTION
AB 654 makes minor modifications to an existing provision
of the Gambling Control Act pertaining to the Gaming Policy
Advisory Committee (GPAC). Specifically, this measure:
1)Requires the executive director of the California
Gambling Control Commission (CGCC) to convene the GPAC,
at least twice per year, for the purpose of discussing
matters of regulatory policy and other relevant issues.
2)Also, requires the CGCC to consult with the GPAC on
proposed regulations.
3)Makes it explicit that the GPAC shall not advise the CGCC
on Indian gaming.
4)Additionally, AB 654 makes technical, nonsubstantive
changes to existing provisions of law, found in the
Government Code (Section 12012.85), pertaining to the
Indian Gaming Special Distribution Fund (SDF).
EXISTING LAW
Existing law, the Gambling Control Act (Act) of 1997,
establishes a regulatory framework for gaming in
California, creating the CGCC with the authority to
approve, deny, revoke, or suspend gambling licenses and
permits for reasonable cause. The Act also provides for a
10-member GPAC, composed of representatives of controlled
AB 654 (Hall) continued
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gambling licensees and members of the general public in
equal numbers.
Existing law also requires the executive director of the
CGCC to convene the GPAC, from time to time, for the
purpose of discussing recommended controlled gambling
regulatory policy. Existing law requires the CGCC to
consult with the GPAC on matters of controlled gambling
regulatory policy and any other relevant gambling-related
issue. The law provides that GPAC's recommendations must be
presented to the CGCC but shall be deemed advisory and not
binding on the CGCC in the performance of its duties or
functions. Additionally, the Act provides that the GPAC
may not advise the CGCC on Indian gaming.
Existing law creates the Special Distribution Fund (SDF) in
the State Treasury for the receipt of revenue contributions
made by tribal governments pursuant to the terms of the
1999 model Tribal-State Gaming Compacts and authorizes the
Legislature to appropriate money from the SDF for the
following purposes: (a) grants for programs designed to
address gambling addiction; (b) grants for the support of
state and local government agencies impacted by tribal
government gaming; (c) compensation for regulatory costs
incurred by the CGCC and the Department of Justice (DOJ) in
connection with the implementation and administration of
compacts; (d) payment of shortfalls that may occur in the
Indian Gaming Revenue Sharing Trust Fund (RSTF); (e)
disbursements for the purpose of implementing the terms of
tribal labor relations ordinances promulgated in accordance
with the terms of the 1999 compacts; and, (f) any other
purpose specified by law. Existing law also establishes a
priority, as specified, for funding from the SDF.
BACKGROUND
Purpose of AB 654: According to the author's office, this
measure is intended to revitalize the GPAC by ensuring that
the committee actually holds meetings, and requires the
CGCC to consult with the committee on recommended proposed
regulations. The author's office states that AB 654 will
reiterate in statute the path of communication for card
club operators and regulators to discuss pertinent issues.
The author's office believes this measure will make the
GPAC more relevant to the CGCC, gaming industry, and the
AB 654 (Hall) continued
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public at large. The CGCC is responsible for appointing
and constituting the Advisory Committee yet, under current
law, there is no requirement that GPAC meet. In fact,
according to the author's office, the GPAC has not met for
more than two years. The author's office notes that this
measure would make it easier for the CGCC to constitute the
GPAC and ensure that it meets at least twice a year.
PRIOR/RELATED LEGISLATION
AB 1290 (Lara) 2011-2012 Session . Similar to AB 654 (Hall)
of 2013 when it passed this Committee on June 28, 2012. AB
1290 was subsequently gutted on the Senate floor (new
author Assembly member Jerry Hill) and proposed to repeal
and recast, as specified, an existing body of law within
the Gambling Control Act pertaining to an exemption from
licensing requirements for a card club on the grounds of a
racetrack (Hollywood Park). (Held on Senate inactive file)
SB 8 (Lockyer), Chapter 867, Statutes of 1997 . Repealed
the Gaming Regulation Act and enacted the Gambling Control
Act of 1997. Also, established CGCC and charged it with,
among other things, the authority to issue, deny, revoke,
suspend, or impose conditions, restrictions, or limitations
on licenses, permits, or approvals to ensure that
unsuitable or unqualified persons are not involved in the
operation of gambling. Furthermore, established the Bureau
of Gambling Control (formerly known as the Division of
Gambling Control) within the Department of Justice and
charged it with specified investigative and enforcement
duties.
SUPPORT: None on file as of June 7, 2013.
OPPOSE: None on file as of June 7, 2013.
FISCAL COMMITTEE: Senate Appropriations Committee