BILL ANALYSIS                                                                                                                                                                                                    �






                                                       Bill No:  AB  
          1039
          
                 SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
                       Senator Roderick D. Wright, Chair
                           2013-2014 Regular Session
                                 Staff Analysis



          AB 1039  Author:  Hall
          As Introduced:  February 22, 2013
          Hearing Date:  June 25, 2013
          Consultant:  Paul Donahue


                                     SUBJECT  

                  Gambling Control Act: Local gambling control

                                   DESCRIPTION
           
          Allows a city, county, or city and county to amend its  
          local ordinance on a one-time basis in order to increase by  
          two the number of tables above the number of tables  
          authorized by local ordinance that is currently in effect  
          on January 1, 2013.

                                   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  




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            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)Imposes 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.


                                    BACKGROUND
           
           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

           Statements 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.

           Opposition statements  :  The California Coalition Against  
          Gambling Expansion believes that, before policymakers  




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          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/RELATED LEGISLATION
           
          AB 241 (Hall), Chapter 316, Statutes of 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 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)

          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.

          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.





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          AB 2431 (Wesson), Chapter 738, Statutes of 2002.  The bill  
          extended the gambling moratorium on new local gambling  
          establishments from January, 1, 2011, to January 1, 2007 as  
          specified.

           SUPPORT:   

          101 Casino
          Capitol Casino
          Casino 580
          Certified Network M
          Communities for California Cardrooms
          Cordova Casino
          Hollywood Park Casino
          Lotus Casino
          Lucky Chances
          Lucky Derby Casino
          Phoenix Casino
          The River
          Wine Country Casino
          The Village Club

           OPPOSE:   

          California Coalition Against Gambling Expansion
          United Auburn Indian Community

           FISCAL COMMITTEE:   Senate Appropriations Committee



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