BILL ANALYSIS Ó AB 1039 Page 1 Date of Hearing: April 24, 2013 ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION Isadore Hall, Chair AB 1039 (Hall) - As Introduced: February 22, 2013 SUBJECT : Local Gambling Control SUMMARY : Allows a city, county, or city and county to amend its local ordinance to increase the number of tables by two, above the number of tables authorized by local ordinance in effect on January 1, 2013. Specifically, this bill : 1)Specifies that an amendment authorized by this measure may only occur one time. EXISTING LAW 1)Provides for the licensure and regulation of various legalized gambling activities and establishments by the California Gambling Control Commission and the enforcement of those activities by the Department of Justice (DOJ). 2)Allows a city, county, or city and county to authorize controlled gambling, consistent with state law, if a majority of voters affirmatively approve an ordinance so permitting, as specified. 3)Authorizes a city, county, or city and county to amend the ordinance to increase by two the number of gambling tables that may be operated in a gambling establishment in a city, county, or city and county, above the number of tables authorized in the ordinance in effect on January 1, 2010. The authority to amend a gaming ordinance may occur only one time. 4)Requires that any amendment to a local jurisdiction ordinance relating to gambling establishments or the Act is required to be submitted to DOJ for review and comment before the ordinance is adopted by the local jurisdiction. 5)Places a moratorium on the authorization of legal gaming by a local governing body or local electors and an expansion of gambling, as defined, until January 1, 2020. FISCAL EFFECT : Unknown AB 1039 Page 2 COMMENTS : Purpose of the bill : This measure is intended to allow cities and counties that have card clubs to amend their local ordinance to allow for these clubs to add two more additional tables. Currently many small to medium sized card clubs find that they have insufficient space to accommodate their business on weekends. This measure will allow a city or county to amend the ordinance to increase the number of card tables in order to accommodate those who wish to play in their card clubs Arguments in support : Supporters argue that at this time, many small to medium sized card clubs are unable to accommodate players who wish to play in their club on Friday and Saturday nights. Individuals often come to a card club on Friday or Saturday, and wait an hour or more for an opportunity to sit down and play. Many of these people become discouraged and leave. This measure would allow these clubs to expand the number of tables to accommodate the business which they already have, but which they are unable to serve. Furthermore, the added tables will create employment opportunities in California for those who will be providing services. State and local governments will also benefit by additional fees paid by the cardrooms. Arguments in opposition : According to the California Coalition Against Gambling Expansion (CCAGE), the past few Legislative Sessions have seen a long laundry of gambling expansion legislation of every conceivable form, from a slew of bills to lift specific cardroom limits, to authorizing Off-Track Bettering parlors for horseracing, to permit call-in bingo games, to allow our Lottery to go national, be privatized and remove many of the promised restrictions made to voters, to expand the number of tribal slot machines, to authorize online poker, and the list goes on and on. CCAGE believes that before policymakers consider authoring or supporting more bills to expand gambling activities, they ought to consider the social, economic, and moral impact that more legalized gambling will have on our State and its citizenry. Prior legislation : AB 241 (Hall), Chapter 316, Statutes of AB 1039 Page 3 2011. The bill extended the gambling moratorium related to the expansion of card rooms and the issuance of new card room licenses from January 1, 2015 to January 1, 2020. AB 441 (Hall), Chapter 530, Statutes of 2010. The bill modified provisions of the Gambling Control Act to allow a city, county, or city and county to amend its local ordinance in effect on January 1, 2010, to increase the number of tables by two. AB 163 (Mendoza), Chapter 647, Statutes of 2008. The bill authorized a local government to amend its gambling ordinance to increase the number of tables that may be operated by small clubs. SB 152 (Florez), 2007-2008 Legislative Session. The bill would have allowed a city, county, or city and county that has a gambling ordinance in effect on July 1, 2007, prohibiting more than 12 tables, to modify its ordinance to increase the number of gambling tables by an amount not to exceed 45 percent, without having to obtain voter approval. (Vetoed by Governor) AB 1973 (Bermudez), Chapter 854, Statutes of 2006. The bill made a number of changes to the Gambling Control Act relating to new table fees for problem gambling programs, the hours of operation, the moratorium on the expansion of gambling, and the eligibility requirements of two members of the Gambling Control Commission. AB 635 (Bermudez), Chapter 694, Statutes of 2005. The bill permitted local governments to revise their ordinances without voter approval, and increase the number of gambling tables by up to 24.99% as specified. AB 864 (Firebaugh), Chapter 872, Statutes of 2004. The bill permitted local agencies to amend their ordinances to allow for an increase in the number of gambling tables, hours of operation, or maximum amount wagered, in a gambling establishment. SB 814 (Vincent), Chapter 799, Statutes of 2003. The bill extended the gambling moratorium on new local gambling establishments from January1, 2007, to January 1, 2010. AB 2431 (Wesson), Chapter 738, Statutes of 2002. The bill extended the gambling moratorium on new local gambling AB 1039 Page 4 establishments from January, 1, 2011, to January 1, 2007 as specified. REGISTERED SUPPORT / OPPOSITION : Support Capitol Casino Hollywood Park Casino Lucky Chances Lucky Derby Casino Phoenix Casino The Village Club Opposition California Coalition Against Gambling Expansion Analysis Prepared by : Felipe Lopez / G. O. / (916) 319-2531