Amended in Senate April 29, 2013

Amended in Senate April 4, 2013

Senate Bill No. 190

Introduced by Senator Wright

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(Coauthor: Senator Anderson)

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February 7, 2013

An act to add Chapter 4.7 (commencing with Section 19750) to Division 8 of the Business and Professions Code, begin insert to add Section 12012.6 to the Government Code, end insert and to amend Sections 336.9 and 337a of the Penal Code, relating to gambling, and declaring the urgency thereof, to take effect immediately.

LEGISLATIVE COUNSEL’S DIGEST

SB 190, as amended, Wright. Gambling: sports wagering.

(1) The California Constitution prohibits various gaming activities within the state, including casino-style gaming, but authorizes the Governor, subject to ratification by the Legislature, to negotiate and conclude compacts for the operation of slot machines and the conduct of lottery games and banking and percentage card games by federally recognized Indian tribes on Indian lands in California in accordance with federal law. The California Constitution also authorizes the Legislature to provide for the regulation of horse racing, charitable bingo games, the California State Lottery, and charitable raffles.

Existing law prohibits a person, whether or not for gain, hire, or reward, from making a betting pool or placing a bet or wager on the result of any contest or event, including a sporting event, as specified.

The Gambling Control Act provides for the licensure of certain individuals and establishments that conduct controlled games, as defined, and for the regulation of these gambling activities by the California Gambling Control Commission. Existing law provides for the enforcement of those regulations by the Department of Justice. Any violation of these provisions is punishable as a misdemeanor, as specified.

The Horse Racing Law provides for the licensure of every person who participates in, or has anything to do with, the racing of horses, and every employee of a parimutuel department by the California Horse Racing Board. The board is responsible for adopting rules and regulations for the protection of the public, the control of horse racing, and parimutuel wagering, as well as enforcing all laws, rules, and regulations dealing with horse racing and parimutuel wagering. The law permits the board to authorize an association licensed to conduct a racing meeting to also operate a satellite wagering facility at its racetrack inclosure, and for fairs to locate a satellite wagering facility at their fairgrounds, under specified conditions. Any violation of these provisions is punishable as a misdemeanor.

This bill would authorize the owner or operator of a gambling establishment, or the owner or operator of a horse racing track, including a horse racing association, begin insert or of a satellite wagering facility, end insert with a current license, to conduct wagering on professional and collegiate sports or athletic events, other than on collegiate sports or athletic events that take place in California or in which any California college team participates, by applying to the California Gambling Control Commission or the California Horse Racing Board, as specified, for authorization to conduct sports wagering, and by paying an annual fee for deposit in the Gambling Addiction Program Fund. The bill would require each licensed entity to remit to the Treasurer on a monthly basis for deposit in the General Fund, an amount equal to 7.5% of its gross revenues generated by sports wagering activities. The bill would require the commission, the board, and the department to adopt regulations to implement these provisions, including authority to adopt regulations establishing fees in a reasonable amount to recover costs incurred performing their duties pursuant to these provisions.

The bill would require the department, among other things, to investigate any request made by the board or the commission in connection with an application for authorization, and to investigate suspected violations of the above provisions. The bill would authorize the board, commission, and department to regulate sports wagering to the same extent these entities currently regulate other legal gambling in this state, including the ability to audit the books and records of a licensed entity related to the sports wagering activity. The bill would also prohibit a licensed entity from, among other things, accepting a wager from any person who is under 21 years of age or whose name appears on a self-exclusion list. Any violation of these provisions would be punishable as a crime. By creating a new crime, the bill would impose a state-mandated local program.

(2) Existing federal law, the Indian Gaming Regulatory Act of 1988 begin insert (IGRA) end insert , provides for the negotiation and execution of tribal-state gaming compacts for the purpose of authorizing certain types of gaming on Indian lands within a state. The California Constitution authorizes the Governor to negotiate and conclude compacts, subject to ratification by the Legislature. Existing law expressly ratifies a number of tribal-state gaming compacts, and amendments of tribal-state gaming compacts, between the State of California and specified Indian tribes.

This bill would authorize a federally recognized Indian tribe that is not a gambling establishment or a horse racing track, or that has entered into a compact agreement with the state authorizing the operation of a satellite wagering facility, to conduct sports wagering begin delete consistent with the requirements of the federal Indian Gaming Regulatory Act of 1988, and under terms no more stringent than those applicable to any other owner or operator in the state end delete begin insert as authorized by IGRA, pursuant to the model tribal-state sports wagering compact described below end insert .

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This bill would create a model tribal-state sports wagering compact and would provide that, by the enactment of this measure, the state grants a model tribal-state sports wagering compact for the conduct of sports wagering on Indian lands to a federally recognized California Indian tribe that exercises jurisdiction over those Indian lands. The bill would provide for the tribe to adopt the authority through the signature of the tribal chief executive officer, as specified. No further action by the Governor or the state would be required in order to conduct sports wagering, but the tribe would be responsible for submitting a copy of the compact executed by the tribe to the United States Secretary of the Interior for publication of the notice of approval in the Federal Register, pursuant to IGRA.

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(3) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

(4) This bill would declare that it is to take effect immediately as an urgency statute.

Vote: ²⁄₃. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

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

SECTION 1.  

Chapter 4.7 (commencing with Section 19750)
is added to Division 8 of the Business and Professions Code, to
read:

 

Chapter  4.7. Sports Wagering

 

19750.  

The following entities may conduct wagering on sports
events as authorized pursuant to this chapter:

(a) The owner or operator of a gambling establishment with a
begin delete current end delete begin insert valid end insert license issued by the California Gambling Control
Commission pursuant to Chapter 5 (commencing with Section
19800).

(b) The owner or operator of a horse racing track, including a
horse racing association, begin insert or of a satellite wagering facility, end insert with a
begin delete current end delete begin insert valid end insert license issued by the California Horse Racing Board
pursuant to Chapter 4 (commencing with Section 19400). A
licensed horse racing track is authorized to conduct sports wagering
pursuant to this subdivision if it has an agreement in place with
the organization recognized by the board that is responsible for
negotiating purse agreements, satellite wagering agreements, and
all other business agreements on behalf of the horsemen and
horsewomen participating in a racing meeting.

(c) A federally recognized Indian tribe that is not authorized
pursuant to subdivision (a) or (b), or that has entered into a compact
agreement with the state authorizing the operation of a satellite
wagering facility, may conduct sports wagering as authorized by
the federal Indian Gaming Regulatory Act of 1988 (18 U.S.C.
Secs. 1166 to 1168, incl., and 25 U.S.C. Sec. 2701 et seq.), begin delete and
under terms no more stringent than those applicable to any other
owner or operator of a gambling establishment in the state end delete begin insert pursuant
to the model tribal-state sports wagering compact set forth in
subdivision (b) of Section 12012.6 of the Government Code end insert .

19752.  

As used in this chapter, the following definitions apply:

(a) “Board” means the California Horse Racing Board.

(b) “Commission” means the California Gambling Control
Commission.

(c) “Department” means the Department of Justice.

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(d) “Indian lands” means land upon which gaming may be
conducted under the federal Indian Gaming Regulatory Act of
1988 (18 U.S.C. Secs. 1166 to 1168, incl., and 25 U.S.C. Sec. 2701
et seq.).

end insert begin insert

(e) “Indian tribe” means a federally recognized Indian tribe
located within the State of California.

end insert begin delete

(d)

end delete

begin insert (f) end insert  “Licensed operator” means any of the entities listed in Section
19750 that are authorized pursuant to this chapter to conduct sports
wagering.

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(e)

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begin insert (g) end insert  “Prohibited sports event” means any collegiate sport or
athletic event that takes place in California, or a sports event in
which any California college team participates, regardless of the
location at which the event takes place.

begin delete

(f)

end delete

begin insert (h) end insert  “Sports event” shall include any professional sports or
athletic event, and any collegiate sports or athletic event, except
a prohibited sports event.

begin delete

(g)

end delete

begin insert (i) end insert  “Sports wagering” means the business of accepting wagers
on a sports event by any legal system or method of wagering,
including, but not limited to, exchange wagering, parlays, over
and under, money line, and straight bets.

19754.  

(a) (1) An owner or operator of a gambling
establishment seeking to conduct sports wagering shall apply to
the commission for authorization to conduct sports wagering.

(2) An owner or operator of a horse racing track begin insert or a satellite
wagering facility end insert seeking to conduct sports wagering shall apply
to the board for authorization to conduct sports wagering.

(b) The board or the commission, as the case may be, shall hear
and decide promptly, and in reasonable order, all applications to
conduct sports wagering from owners and operators of licensed
gambling begin delete establishments and licensed horse racing tracks. end delete
begin insert establishments, licensed horse racing tracks, and satellite wagering
facilities. end insert Authorization to conduct sports wagering shall not be
unreasonably withheld for any applicant that is in good standing
and has a current license issued pursuant to Chapter 4 (commencing
with Section 19400) or Chapter 5 (commencing with Section
19800).

(c) An owner or operator of a gambling establishment begin delete or end delete begin insert and
an owner or operator of end insert a horse racing track begin insert or satellite wagering
facility end insert that conducts sports wagering shall pay an annual fee of
three thousand dollars ($3,000) to the State Department of Alcohol
and Drug Programs for deposit in the Gambling Addiction Program
Fund.

(d) Each licensed operator shall remit to the begin delete treasurer end delete begin insert Treasurer end insert
on a monthly basis for deposit in the begin delete general fund end delete begin insert General Fund end insert
an amount equal to 7.5 percent of its gross revenues generated by
sports wagering activities. Each monthly payment shall be due on
the 10th day of the following month. For the purposes of
determining gross revenues, the licensed operator and the begin delete treasurer end delete
begin insert Treasurer end insert shall use generally accepted accounting principles.

19756.  

(a) Application for authorization to conduct sports
wagering shall be made on forms furnished by the board and the
commission.

(b) The application for authorization to conduct sports wagering
shall include all of the following:

(1) The name of the licensee.

(2) The name and location of the gambling begin delete establishment or
horse racing track end delete begin insert establishment, horse racing track, or satellite
wagering facility end insert .

(3) The names of all persons directly or indirectly interested in
the business and the nature of the interest.

(4) A description of the proposed sports wagering operation.

(5) Any other information and details the board or the
commission may require in order to discharge its duty properly.

19758.  

The board and the commission shall adopt regulations
for the administration of this chapter, and may adopt regulations
establishing fees in a reasonable amount necessary to recover costs
incurred by the board or the commission relating to the
administration of this chapter. The board and the commission shall
consult with each other in the adoption of regulations pursuant to
this section, and may adopt joint regulations.

19760.  

The regulations adopted by the board and the
commission shall do all of the following:

(a) Provide for the approval of wagering rules and equipment
by the department to ensure fairness to the public and compliance
with state law, including, but not limited to, all of the following:

(1) Acceptance of wagers on a series of sports events.

(2) Types of wagering tickets that may be used.

(3) The method of issuing tickets.

(b) Govern all of the following:

(1) The extension of credit.

(2) The cashing, deposit, and redemption of checks or other
negotiable instruments.

(3) The amount of cash reserves to be maintained by licensed
operators to cover winning wagers.

(4) The provision of reliable records, accounts, and reports of
transactions, operations, and events, the method of accounting to
be used by licensed operators, and the types of records required
to be maintained.

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begin insert 19761. end insert   

The tribal gaming regulatory authority for each Indian
tribe conducting sports wagering pursuant to a model tribal-state
sports wagering compact shall promulgate regulations for the
administration of sports wagering. The regulations shall be
consistent with the terms of the model tribal-state sports wagering
compact set forth in subdivision (b) of Section 12012.6 of the
Government Code.

end insert

19762.  

The sports wagering authorized pursuant to this chapter
may be conducted only at the gambling begin delete establishment or horse
racing track end delete begin insert establishment, horse racing track, or satellite wagering
facility end insert of the licensed operator, or on Indian lands consistent with
the federal Indian Gaming Regulatory Act of 1988 (18 U.S.C.
Secs. 1166 to 1168, incl., and 25 U.S.C. Sec. 2701 et seq.).

19764.  

A licensed operator shall not do any of the following:

(a) Accept a wager on a sports event from any person who is
not physically present at the facility where the sports wagering is
conducted.

(b) Accept a wager from a person using any form of credit to
place the wager.

(c) Accept a wager from a person who is under 21 years of age.

(d) Admit into the sports wagering facility, or accept wagers
from, any person whose name appears on any self-exclusion list.

19766.  

A licensed operator shall establish the odds it will pay
on wagers placed on sports events.

19768.  

(a) A licensed operator shall not conduct any sports
wagering in violation of any provision of this chapter, any
regulation adopted pursuant to this chapter, or any governing local
ordinance.

(b) Any person who willfully violates any provision of this
chapter is guilty of a misdemeanor.

19770.  

(a) The department shall have all of the following
responsibilities:

(1) To investigate any request made by the board or the
commission in connection with an application for authorization
pursuant to this chapter. The department may recommend the
denial or the limitation, conditioning, or restriction of any
authorization.

(2) To monitor the conduct of all licensed operators and other
persons having a material involvement, directly or indirectly, with
a sports wagering operation.

(3) To investigate suspected violations of this chapter.

(4) To investigate complaints that are lodged against licensed
operators, or other persons associated with a sports wagering
operation, by members of the public.

(5) To initiate, when appropriate, disciplinary actions. In
connection with any disciplinary action, the department may seek
restriction, limitation, suspension, or revocation of any license,
permit, authorization, or approval pursuant to this chapter, Chapter
4 (commencing with Section 19400), or Chapter 5 (commencing
with Section 19800), or the imposition of any fine upon any person
licensed, permitted, authorized, or approved pursuant to those
chapters.

(6) To adopt regulations reasonably related to its functions and
duties as specified in this chapter.

(7) To adopt regulations establishing fees in the reasonable
amount necessary to recover costs incurred by the department
relating to the enforcement of this chapter.

(b) The department has all powers necessary and proper to
enable it to carry out fully and effectually its duties and
responsibilities specified in this chapter.

19772.  

(a) The department shall make appropriate
investigations as follows:

(1) To determine whether there has been any violation of this
chapter or any regulations adopted under this chapter.

(2) To determine any facts, conditions, practices, or matters that
it may deem necessary or proper to aid in the enforcement of this
chapter or any regulation adopted under this chapter.

(3) To aid in adopting regulations.

(b) If, after any investigation, the department is satisfied that a
license, permit, authorization, or approval pursuant to this chapter,
Chapter 4 (commencing with Section 19400), or Chapter 5
(commencing with Section 19800) should be suspended or revoked,
it shall file an accusation in accordance with Chapter 5
(commencing with Section 11500) of Part 1 of Division 3 of Title
2 of the Government Code.

(c) In addition to any action that the board or commission may
take against a license, permit, finding of suitability, or approval,
the board or commission may also require the payment of fines or
penalties. However, any fine imposed shall not exceed twenty
thousand dollars ($20,000) for each separate violation of any
provision of this chapter or any regulation adopted under this
chapter.

19773.  

The board, commission, and department shall have the
authority to regulate sports wagering to the same extent that these
entities regulate other legal gambling in this state, including the
ability to audit the books and records of a licensed operator related
to the sports wagering activity.

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begin insert SEC. 2. end insert   

end insert

begin insert Section 12012.6 is added to the end insert begin insert Government Code end insert begin insert , to
read: end insert

begin insert

begin insert 12012.6. end insert   

(a) The Governor of California, authorized by the
Constitution of the State of California with the power to negotiate
the terms of a compact between the state and a federally recognized
Indian tribe, and by the enactment of the act adding this section,
and the concurrence of the State Legislature through the passage
of the act adding this section, hereby grants the following model
tribal-state sports wagering compact for the conduct of sports
wagering on Indian lands, as defined by the federal Indian Gaming
Regulatory Act of 1988 (IGRA), to a federally recognized
California Indian tribe that exercises jurisdiction over those Indian
lands, which, if adopted, constitutes a tribal-state gaming compact
pursuant to IGRA that is limited to sports wagering. Adoption of
the authority granted by this section shall occur upon the signature
of the chief executive officer of the tribal government whose
authority to enter into the compact shall be set forth in an
accompanying tribal law or ordinance or resolution by the
governing body of the tribe, a copy of which shall be provided by
the tribe to the Governor. No further action by the Governor or
the state is required before the compact becomes effective. A tribe
adopting this model tribal-state sports wagering compact is
responsible for submitting a copy of the compact executed by the
tribe to the Secretary of the Interior for publication of the notice
of approval in the Federal Register, pursuant to IGRA. The tribe
shall provide a copy of the executed compact to the Governor. A
tribe shall not be required to agree to terms different than the
terms set forth in the model tribal-state sports wagering compact,
which is set forth below. As a result of the enactment of this section,
the operation and regulation of sports wagering is lawful when
conducted pursuant to a compact that has become effective.

(b) The language of the model tribal-state sports wagering
compact is as follows:

MODEL SPORTS WAGERING COMPACT BETWEEN THE
[NAME OF TRIBE] AND THE STATE OF CALIFORNIA

This compact is made and entered into by and between the [Name
of Tribe], a federally recognized Indian tribe (tribe), and the State
of California (state), with respect to the operation and regulation
of sports wagering on the tribe’s Indian lands as defined in the
Indian Gaming Regulatory Act, 25 U.S.C. Sec. 2703(4).

PART 1. TITLE

This document shall be referred to as the “Sports Wagering
Compact between the [Name of Tribe] and State of California.”

PART 2. RECITALS

a. This Tribal-State Sports Wagering Compact is entered into
on a government-to-government basis by and between the [Name
of Tribe], a federally recognized sovereign Indian tribe, and the
State of California, a sovereign State of the United States, pursuant
to the Indian Gaming Regulatory Act of 1988 (codified at 18 U.S.C.
Sec. 1166 et seq., and 25 U.S.C. Sec. 2701 et seq.; hereafter IGRA),
and any successor statute or amendments.

b. The tribe and the state hereby agree that sports wagering is
a form of class III gaming that may be lawfully operated and
regulated on Indian lands within the state as provided herein, as
a means of generating revenues for specific purposes as authorized
by the IGRA.

PART 3. DEFINITIONS

As used in this compact:

a. “Board” means the California Horse Racing Board.

b. “Class III gaming” means the forms of class III gaming
defined in Section 2703(8) of Title 25 of the United State Code
and by regulations of the National Indian Gaming Commission.

c. “Commission” means the California Gambling Control
Commission.

d. “Compact” means this Tribal-State Sports Wagering Compact
between the state and the tribe.

e. “Effective date” means the date on which the secretary
publishes notice of approval in the Federal Register.

f. “Facility” means any building located on the Indian lands of
the tribe in which sports wagering authorized by this compact is
conducted.

g. “Licensed operator” means a tribal entity licensed by the
tribe to conduct sports wagering.

h. “NIGC” means the National Indian Gaming Commission.

i. “Patron” means any person who is on the premises of a
facility, for the purpose of engaging in sports wagering authorized
by this compact.

j. “Prohibited sports event” means any collegiate sport or
athletic event that takes place in California, or a sports event in
which any California college team participates, regardless of
where the event takes place.

k. “Rules and regulations” means the rules and regulations
promulgated by the Tribal Gaming Regulatory Authority for
implementation of this compact.

l. “Sports event” shall include any professional sports or athletic
event, and any collegiate sports or athletic event, except a
prohibited sports event.

m. “Sports wagering” means the business of accepting wagers
on a sports event by any legal system or method of wagering,
including, but not limited to, exchange wagering, parlays, over
and under, money line, and straight bets.

n. “Secretary” means the United States Secretary of the Interior,
or the secretary’s designee delegated with the authority to approve
and publish notice of approval in the Federal Register.

o. “Tribal Gaming Regulatory Agency” (TGRA) means the tribal
governmental agency that has the authority to carry out the tribe’s
regulatory and oversight responsibilities under this compact.

PART 4. AUTHORIZATION OF SPORTS WAGERING

a. The tribe and the state agree that the tribe is authorized to
accept and regulate sports wagers on any sports event that is not
prohibited by California law, in accordance with this compact and
the IGRA. However, nothing in this compact shall limit or alter
the tribe’s right to operate any game that is: (1) class I or class II
under IGRA or (2) any other class III game that is authorized
under a separate tribal-state compact or procedures issued by the
secretary.

b. Sports wagering authorized pursuant to this compact shall
only be conducted at a facility located on Indian lands consistent
with the provisions of the IGRA.

PART 5. LICENSING

a. A person shall not be employed at a facility unless that person
is licensed by the TGRA in accordance with this compact. Persons
who must be licensed by the TGRA under this compact include,
but are not limited to, all persons in any way connected with the
sports wagering operation or facility who are required to be
licensed or to submit to a background investigation under the
IGRA, all employees and suppliers of the facility, and any other
person who interacts with the tribes’ sports wagering activity that
the TGRA determines should be licensed.

b. In addition to the provisions of this compact that are
applicable to the licensing of all sports wagering employees, the
requirements of Part 556 of Title 25 of the Code of Federal
Regulations, Background Investigations for Primary Management
Officials and Key Employees, and Part 558 of Title 25 of the Code
of Federal Regulations, Gaming Licenses for Key Employees and
Primary Management Officials, apply to key employees and
primary management officials of the facility.

c. Licenses shall be issued for an initial period to be determined
by the TGRA, after which they may be renewed following review
and update of the information upon which the license was based,
provided, the TGRA may extend the period for which the license
is valid for a reasonable time pending the outcome of any
investigation being conducted in connection with the renewal of
that license.

d. The licensing application process shall require the TGRA to
obtain sufficient information and identification from the applicant
to permit a background investigation to determine if a license
should be issued. If the tribe conducts other forms of class II or
class III gaming under another compact, licensing activities related
to the tribe’s sports wagering operations may be conducted under
the tribal licensing regulations promulgated to address background
investigations and licenses for existing class II or class III gaming
activities as required pursuant to IGRA.

e. Pursuant to Part 533 of Title 25 of the Code of Federal
Regulations, all sports wagering management contracts must be
approved by the Chair of the National Indian Gaming Commission.

PART 6. RULES AND REGULATIONS AND MINIMUM
REQUIREMENTS FOR OPERATIONS

a. At all times after the effective date of this compact, the tribe
shall be responsible for all duties which are assigned to it, the
facility, and the TGRA under this compact.

b. All sports wagering activities conducted under this compact
shall, at a minimum, comply with a gaming ordinance duly adopted
by the tribe and approved in accordance with IGRA, and with all
rules, regulations, procedures, specifications, and standards duly
adopted by the TGRA.

c. The tribe shall promulgate any rules and regulations necessary
to implement this compact so that it may operate and regulate a
facility.

d. This compact does not affect the tribe’s right to amend its
rules and regulations, provided that any amendment shall be in
conformity with this compact. The board or commission may
propose additional rules and regulations related to implementation
of this compact to the TGRA at any time, and the TGRA shall give
good faith consideration to those suggestions and shall notify the
board or commission of its response or action with respect thereto.

e. All tribal facilities shall comply with procedures set forth in
this compact, and shall be operated in accordance with the
requirements set forth in this compact. In addition, all facilities
shall comply with tribal internal control standards that provide a
level of control that equals or exceeds those set forth in the
National Indian Gaming Commission’s Minimum Internal Control
Standards, Part 542 of Title 25 of the Code of Federal Regulations.

f. The TGRA shall promulgate regulations related to sports
wagering and sports wagering equipment, which shall include,
but are not limited to, the following:

1. Acceptance of wagers on a series of sports events.

2. Types of wagering tickets that may be used.

3. The method of issuing tickets.

4. The extension of credit.

5. The cashing, deposit, and redemption of checks or other
negotiable instruments.

6. The amount of cash reserves to be maintained to cover winning
wagers.

7. The provision of reliable records, accounts, and reports of
transactions, operations, and events, the method of accounting to
be used, and the types of records required to be maintained.

g. The tribal sports wagering regulations shall prohibit a tribally
licensed facility from each of the following:

1. Accepting a wager on a sports event from any person who is
not physically present at the facility at which the wagering is
conducted.

2. Accepting a wager from a person who is under 21 years of
age.

3. Admitting into the facility, or accepting wagers from, any
person whose name appears on the self-exclusion list maintained
by the facility, the TGRA, or the board or commission.

h. Net revenues that the tribe receives from sports wagering
shall be used solely for one or more of those purposes permitted
under IGRA.

i. The TGRA shall ensure that an annual independent financial
audit of the facility’s conduct of sports wagering activities subject
to this compact is secured consistent with the requirements of
Section 571.12 of Title 25 of the Code of Federal Regulations,
Audit Standards. The audit shall, at a minimum, examine revenues
and expenses in connection with the conduct of sports wagering
in accordance with generally accepted auditing standards and
shall include, but not be limited to, those matters necessary to
verify the determination of adjusted gross revenues.

j. The tribe and TGRA shall be responsible for regulating
activities pursuant to this compact. As part of its responsibilities,
the tribe shall require the facility to do all of the following:

1. Operate the conduct of sports wagering activities in
compliance with this compact, and the tribe’s rules and
regulations.

2. Take reasonable measures to assure the physical safety of
facility patrons and personnel and prevent illegal activity at the
facility.

3. Promptly notify appropriate law enforcement authorities of
persons who may be involved in illegal acts in accordance with
applicable law.

4. Assure that the construction and maintenance of the facility
meets or exceeds federal and tribal standards for comparable
buildings.

5. Prepare adequate emergency access plans to ensure the health
and safety of all sports wagering patrons. Upon the finalization
of emergency access plans, the TGRA or facility shall forward
copies of the plans to the board and the commission.

k. Exclusion. The tribe’s rules and regulations shall require the
facility, at a minimum, to exclude persons based on their prior
conduct at the facility or who, because of their criminal history or
association with criminal offenders, pose a threat to the integrity
of the conduct of sports wagering. The TGRA shall establish a list
of the persons excluded from the facility, even if self-excluded, and
employ its best efforts to exclude persons on the list from entry
into its facility, provided, neither persons who are barred but gain
access to the facility, nor any other person, shall have any claim
against the state, the tribe or the facility, or any other person for
failing to enforce that bar or exclusion.

l. Any patron who believes he or she may be placing sports
wagers on a compulsive basis may request that his or her name
be placed on the exclusion list. All sports wagering employees
shall receive training on identifying players who have a problem
with compulsive playing and shall be instructed to ask them to
leave. Signs and other materials shall be readily available to direct
compulsive players to agencies where they may receive counseling.

m. The tribe agrees to make an annual contribution to the State
Department of Alcohol and Drug Programs for deposit in the
Gambling Addiction Program Fund, in an amount not to exceed
the amount required from any other owner or operator in the state.

PART 7. RULES AND ODDS MAKING FOR SPORTS
WAGERING

a. The tribally licensed operator shall establish the odds it will
pay on wagers placed on sporting events.

b. Summaries of the rules for making a wager on a sporting
event shall be visibly displayed in the facility. Complete sets of
rules shall be available in pamphlet form in the facility.

c. No wagers of any type shall be accepted from a person who
is less than 21 years of age.

PART 8. PRIZE CLAIMS

a. All patron disputes involving sports wagering gaming shall
be resolved in accordance with the procedures established in the
tribe’s NIGC-approved gaming ordinance.

b. Notices explaining the procedure and time limitations with
respect to making prize claims shall be prominently posted in the
facility.

PART 9. ENFORCEMENT OF COMPACT

a. The TGRA may summarily suspend the license of any person
or entity if it determines that the continued licensing of the person
or entity could constitute a threat to the public health or safety or
may violate the TGRA’s licensing or other standards. Any right
to notice or hearing in regard thereto shall be governed by tribal
law.

b. It is the responsibility of the TGRA to conduct on-site gaming
regulation in order to enforce the terms of this compact, IGRA,
and the tribal ordinance with respect to the operation and
regulation of the facility, and to protect the integrity of the sports
wagering activities, the reputation of the tribe, and the confidence
of patrons that sports wagering in a tribal facility in California
meets the highest standards of regulation and internal controls.
To meet those responsibilities, the TGRA shall adopt and enforce
regulations, procedures, and practices as set forth herein.

c. The TGRA shall investigate any reported violation of this
compact and shall require the facility to correct the violation upon
those terms and conditions as the TGRA determines are necessary.
The TGRA shall be empowered by tribal law to impose fines or
other sanctions within the jurisdiction of the tribe against sports
wagering licensees or other persons who interfere with or violate
the tribe’s regulatory requirements and obligations under IGRA,
tribal law, or this compact. The TGRA shall report significant or
continued violations of this compact and failures to comply with
its orders, to the board and commission.

d. The tribe may request the assistance of the board and
commission whenever it reasonably appears that assistance may
be necessary to carry out the purposes described herein, or
otherwise to protect public health, safety, or welfare. If requested
by the tribe or TGRA, the board and commission shall provide
requested services to ensure proper compliance with this compact.
The state shall be reimbursed for its actual and reasonable costs
of that assistance as mutually agreed upon.

e. Notwithstanding that the tribe has the primary responsibility
to administer and enforce the regulatory requirements of this
compact, the board and commission shall have the right to inspect
the tribe’s facility with respect to sports wagering activities subject
to the following conditions:

1. The TGRA, board, and commission shall confer and agree
upon protocols for inspection of public areas and non-public areas
of the facility, inspection of documents and records, and terms for
release of tribal information to other law enforcement agencies.

2. Records received by the board and commission from the tribe
in compliance with this compact, or information compiled by the
board and commission from those records, shall be exempt from
disclosure under the California Public Records Act.

PART 10. JURISDICTION

This compact shall not alter tribal, federal, or state civil
adjudicatory or criminal jurisdiction.

PART 11. FEES

a. No reimbursement is required, unless mutually agreed upon,
by this compact, other than funds distributed to the state for the
purpose of addressing gambling addiction. The tribe is not required
to engage in any type of revenue sharing with the state pursuant
to this compact because the state is not providing the tribe with
any form of exclusivity as to sports wagering.

b. This compact does not authorize the state to impose any tax,
fee, charge or assessment upon the tribe or the sports wagering
activity.

PART 12. DISPUTE RESOLUTION

a. In recognition of the government-to-government relationship
between the tribe and the state, the parties shall make their best
efforts to resolve disputes that occur under this compact by good
faith negotiations whenever possible. Therefore, without prejudice
to the right of either party to seek injunctive relief against the other
when circumstances are deemed to require immediate relief, the
parties hereby establish a threshold requirement that disputes
between the tribe and the state first be subjected to a process of
meeting and conferring in good faith in order to foster a spirit of
cooperation and efficiency in the administration and monitoring
of performance and compliance by each other with the terms,
provisions, and conditions of this compact, as follows:

1. Either party shall give the other, as soon as possible after the
event giving rise to the concern, a written notice setting forth, with
specificity, the issues to be resolved.

2. The parties shall meet and confer in a good faith attempt to
resolve the dispute through negotiation not later than 10 calendar
days after receipt of the notice, unless both parties agree in writing
to an extension of time.

3. If the dispute is not resolved to the satisfaction of the parties
within 30 calendar days after the first meeting, then either party
may call for mediation under the Commercial Mediation
Procedures of the American Arbitration Association (AAA) or any
successor procedures, provided that the mediation does not last
more than 60 calendar days, unless an extension to this time limit
is negotiated by the parties. The disputes available for resolution
through mediation are limited to matters arising under the terms
of this compact. If the parties are unable to resolve a dispute
through the process specified in this part, notwithstanding any
other provision of law, either party may bring an action in a United
States District Court (federal court) having venue regarding any
dispute arising under this compact. If the federal court declines
to exercise jurisdiction, or federal precedent exists that holds that
the federal court would not have jurisdiction over the dispute,
either party may bring the action in the appropriate court of the
State of California. The parties shall be entitled to all rights of
appeal permitted by law in the court system in which the action is
brought.

4. If the parties are unable to resolve a dispute through the
process specified in this part, notwithstanding any other provision
of law, either party may bring an action in a United States District
Court (federal court) having venue regarding any dispute arising
under this compact. If the federal court declines to exercise
jurisdiction, or federal precedent exists that holds that the federal
court would not have jurisdiction over the dispute, either party
may bring the action in the appropriate court of the State of
California. The parties are entitled to all rights of appeal permitted
by law in the court system in which the action is brought.

b. This part shall not be construed to waive, limit, or restrict
any remedy that is otherwise available to either party, and shall
not be construed to preclude, limit, or restrict the ability of the
parties to pursue, by mutual agreement, any other method of
dispute resolution, including, but not limited to, mediation or
utilization of a technical advisor to the TGRA and the board and
commission, provided that neither party is under any obligation
to agree to an alternative method of dispute resolution.

PART 13. LIMITED WAIVER OF SOVEREIGN IMMUNITY

a. For purposes of actions based on disputes between the state
and the tribe that arise under this compact and the enforcement
of any judgment resulting therefrom, the tribe and the state each
expressly waives its right to assert sovereign immunity from suit
and from enforcement of any ensuing judgment, and further
consents to be sued in federal or state court, including the rights
of appeal specified above, as the case may be, provided that:

1. The dispute is limited solely to issues arising under this
compact.

2. Neither side makes any claim for monetary damages. Only
injunctive, specific performance, including enforcement of a
provision of this compact requiring payment of money to one or
another of the parties, or declaratory relief is sought.

3. No person or entity other than the tribe and the state is party
to the action, unless failure to join a third party would deprive the
court of jurisdiction, provided that nothing herein shall be
construed to constitute a waiver of the sovereign immunity of either
the tribe or the state in respect to any third party.

b. In the event of intervention by any additional party into any
action without the consent of the tribe and the state, the waivers
of either the tribe or the state provided for herein may be revoked,
unless joinder is required to preserve the court’s jurisdiction,
provided that nothing herein shall be construed to constitute a
waiver of the sovereign immunity of either the tribe or the state in
respect to any third party.

c. Except as stated herein or elsewhere in this compact, no other
waivers or consents to be sued, either express or implied, are
granted by either party.

PART 14. TERM OF COMPACT AND TERMINATION

a. Once effective, this compact shall continue in full force and
effect for state law purposes until the parties mutually agree to
terminate the compact.

b. Once effective, this compact shall constitute a binding and
determinative agreement between the tribe and the state.

PART 15. AMENDMENTS AND RENEGOTIATIONS

a. The terms and conditions of this compact may be amended at
any time by the mutual and written agreement of both parties.

b. All requests to amend or renegotiate this compact shall be in
writing, addressed to the Tribal Chairperson or the Governor, as
the case may be, and shall include the activities or circumstances
to be negotiated, together with a statement of the basis supporting
the request. If the request meets the requirements of this section,
the parties shall confer promptly and determine a schedule for
commencing negotiations within 30 calendar days of the request.
All matters involving negotiations or other amendatory processes
shall be governed, controlled, and conducted in conformity with
the provisions and requirements of IGRA, including those
provisions regarding the obligation of the state to negotiate in
good faith and the enforcement of that obligation in federal court.
The Chairperson of the tribe and the Governor are hereby
authorized to designate the person or agency responsible for
conducting the negotiations, and shall execute any documents
necessary to do so.

PART 16. NOTICES

Unless otherwise indicated by this compact, all notices required
or authorized to be served shall be served by first-class mail at
the following addresses:

Governor

State Capitol

Sacramento, CA

95814

Tribal Chairperson

[ADDRESS]

PART 17. CHANGES IN IGRA

This compact is intended to meet the requirements of IGRA as
it reads on the effective date of this compact, and when reference
is made to the Indian Gaming Regulatory Act or to an
implementing regulation thereof, the referenced provision is
deemed to have been incorporated into this compact as if set out
in full. Subsequent changes to IGRA that diminish the rights of the
state or the tribe may not be applied retroactively to alter the terms
of this compact, except to the extent that federal law validly
mandates that retroactive application without the state’s or the
tribe’s respective consent.

PART 18. MISCELLANEOUS

a. Except to the extent expressly provided under this compact,
this compact is not intended to, and shall not be construed to,
create any right on the part of a third party to bring an action to
enforce any of its terms.

b. This compact, together with all addenda and approved
amendments, sets forth the full and complete agreement of the
parties and supersedes any prior agreements or understandings
with respect to the subject matter hereof. This compact does not
alter or amend any pre-existing compact between the tribe and
the state.

c. Neither the presence in another tribal-state compact of
language that is not included in this compact, nor the absence in
this compact of language that is present in another tribal-state
compact shall be a factor in construing the terms of this compact.

d. If, after the effective date of this compact, the state enters into
a compact with any other tribe that contains more favorable
provisions with respect to any provisions of this compact, the state
shall, at the tribe’s request, enter into the preferred compact with
the tribe as a superseding substitute for this compact.

PART 19. REPRESENTATIONS

a. By entering into this compact, the tribe expressly represents
that, as of the date of the tribe’s execution of this compact:

1. The undersigned has the authority to execute this compact on
behalf of his or her tribe.

2. The tribe is recognized as eligible by the Secretary of the
Interior for special programs and services provided by the United
States to Indians because of their status as Indians, and is
recognized by the Secretary of the Interior as possessing powers
of self-government.

b. In entering into this compact, the state expressly relies upon
the foregoing representations by the tribe, and the state’s entry
into the compact is expressly made contingent upon the truth of
those representations as of the date of the tribe’s execution of this
compact.

PART 20. AUTHORITY TO EXECUTE

This compact is deemed approved by the State of California. No
further action by the state or any state official is necessary for this
compact to take effect upon approval by the Secretary of the
Interior and publication in the Federal Register.

The undersigned tribal official(s) represents that he or she is
duly authorized and has the authority to execute this compact on
behalf of the tribe for whom he or she is signing.

APPROVED:

[Name of Tribe]

____________________________ Date _________________

[CHIEF EXECUTIVE OFFICER]

end insert

begin delete SEC. 2. end delete
begin insert SEC. 3. end insert   

Section 336.9 of the Penal Code is amended to read:

336.9.  

(a) Notwithstanding Section 337a, and except as
provided in subdivision (b), any person who, not for gain, hire, or
reward other than that at stake under conditions available to every
participant, knowingly participates in any of the ways specified in
paragraph (2), (3), (4), (5), or (6) of subdivision (a) of Section
337a in any bet, bets, wager, wagers, or betting pool or pools made
between the person and any other person or group of persons who
are not acting for gain, hire, or reward, other than that at stake
under conditions available to every participant, upon the result of
any lawful trial, or purported trial, or contest, or purported contest,
of skill, speed, or power of endurance of person or animal, or
between persons, animals, or mechanical apparatus, is guilty of
an infraction, punishable by a fine not to exceed two hundred fifty
dollars ($250).

(b) Subdivision (a) does not apply to any of the following
situations:

(1) Any bet, bets, wager, wagers, or betting pool or pools made
via the Internet.

(2) Betting pools with more than two thousand five hundred
dollars ($2,500) at stake.

(3) Any sports wagering authorized pursuant to Chapter 4.7
(commencing with Section 19750) of Division 8 of the Business
and Professions Code.

begin delete SEC. 3. end delete
begin insert SEC. 4. end insert   

Section 337a of the Penal Code is amended to read:

337a.  

(a) Except as provided in Section 336.9, and as
authorized pursuant to Chapter 4.7 (commencing with Section
19750) of Division 8 of the Business and Professions Code, every
person who engages in one of the following offenses shall be
punished for a first offense by imprisonment in a county jail for a
period of not more than one year or in the state prison, or by a fine
not to exceed five thousand dollars ($5,000), or by both
imprisonment and fine:

(1) Pool selling or bookmaking, with or without writing, at any
time or place.

(2) Whether for gain, hire, reward, or gratuitously, or otherwise,
keeps or occupies, for any period of time whatsoever, any room,
shed, tenement, tent, booth, building, float, vessel, place, stand,
or enclosure, of any kind, or any part thereof, with a book or books,
paper or papers, apparatus, device, or paraphernalia, for the purpose
of recording or registering any bet or bets, any purported bet or
bets, wager or wagers, any purported wager or wagers, selling
pools, or purported pools, upon the result, or purported result, of
any trial, purported trial, contest, or purported contest, of skill,
speed, or power of endurance of person or animal, or between
persons, animals, or mechanical apparatus, or upon the result, or
purported result, of any lot, chance, casualty, or unknown or
contingent event whatsoever.

(3) Whether for gain, hire, reward, or gratuitously, or otherwise,
receives, holds, or forwards, or purports or pretends to receive,
hold, or forward, in any manner whatsoever, any money, thing, or
consideration of value, or the equivalent or memorandum thereof,
staked, pledged, bet, or wagered, or to be staked, pledged, bet, or
wagered, or offered for the purpose of being staked, pledged, bet,
or wagered, upon the result, or purported result, of any trial, or
purported trial, or contest, or purported contest, of skill, speed, or
power of endurance of person or animal, or between persons,
animals, or mechanical apparatus, or upon the result, or purported
result, of any lot, chance, casualty, or unknown or contingent event
whatsoever.

(4) Whether for gain, hire, reward, or gratuitously, or otherwise,
at any time or place, records, or registers any bet or bets, wager
or wagers, upon the result, or purported result, of any trial, or
purported trial, or contest, or purported contest, of skill, speed, or
power of endurance of person or animal, or between persons,
animals, or mechanical apparatus, or upon the result, or purported
result, of any lot, chance, casualty, or unknown or contingent event
whatsoever.

(5) Being the owner, lessee, or occupant of any room, shed,
tenement, tent, booth, building, float, vessel, place, stand,
enclosure, or grounds, or any part thereof, whether for gain, hire,
reward, or gratuitously, or otherwise, permits that space to be used
or occupied for any purpose, or in any manner prohibited by
paragraph (1), (2), (3), or (4).

(6) Lays, makes, offers, or accepts any bet or bets, or wager or
wagers, upon the result, or purported result, of any trial, or
purported trial, or contest, or purported contest, of skill, speed, or
power of endurance of person or animal, or between persons,
animals, or mechanical apparatus.

(b) In any accusatory pleading charging a violation of this
section, if the defendant has been once previously convicted of a
violation of any subdivision of this section, the previous conviction
shall be charged in the accusatory pleading, and, if the previous
conviction is found to be true by the jury, upon a jury trial, or by
the court, upon a court trial, or is admitted by the defendant, the
defendant shall, if he or she is not imprisoned in the state prison,
be imprisoned in a county jail for a period of not more than one
year and pay a fine of not less than one thousand dollars ($1,000)
and not to exceed ten thousand dollars ($10,000). Nothing in this
paragraph shall prohibit a court from placing a person subject to
this subdivision on probation. However, that person shall be
required to pay a fine of not less than one thousand dollars ($1,000)
nor more than ten thousand dollars ($10,000) or be imprisoned in
a county jail for a period of not more than one year, as a condition
thereof. In no event does the court have the power to absolve a
person convicted pursuant to this subdivision from either being
imprisoned or from paying a fine of not less than one thousand
dollars ($1,000) and not more than ten thousand dollars ($10,000).

(c) In any accusatory pleading charging a violation of this
section, if the defendant has been previously convicted two or
more times of a violation of any subdivision of this section, each
previous conviction shall be charged in the accusatory pleadings.
If two or more of the previous convictions are found to be true by
the jury, upon a jury trial, or by the court, upon a court trial, or are
admitted by the defendant, the defendant shall, if he or she is not
imprisoned in the state prison, be imprisoned in a county jail for
a period of not more than one year or pay a fine of not less than
one thousand dollars ($1,000) nor more than fifteen thousand
dollars ($15,000), or be punished by both imprisonment and fine.
Nothing in this paragraph shall prohibit a court from placing a
person subject to this subdivision on probation. However, that
person shall be required to pay a fine of not less than one thousand
dollars ($1,000) nor more than fifteen thousand dollars ($15,000),
or be imprisoned in a county jail for a period of not more than one
year as a condition thereof. In no event does the court have the
power to absolve a person convicted and subject to this subdivision
from either being imprisoned or from paying a fine of not more
than fifteen thousand dollars ($15,000).

(d) Except where the existence of a previous conviction of any
subdivision of this section was not admitted or not found to be true
pursuant to this section, or the court finds that a prior conviction
was invalid, the court shall not strike or dismiss any prior
convictions alleged in the information or indictment.

(e) This section applies not only to persons who commit any of
the acts designated in paragraphs (1) to (6), inclusive, of
subdivision (a), as a business or occupation, but also applies to
every person who in a single instance engages in any one of the
acts specified in paragraphs (1) to (6), inclusive, of subdivision
(a).

begin insert

(f) This section does not apply to sports wagering facilities on
Indian lands that are governed by the terms of the model sports
wagering compact set forth in subdivision (b) of Section 12012.6
of the Government Code.

end insert

begin delete SEC. 4. end delete
begin insert SEC. 5. end insert   

No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.

begin delete SEC. 5. end delete
begin insert SEC. 6. end insert   

This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:

In order to protect the liberty interests of Californians, to ensure
that the state realizes significant revenues from this popular,
pervasive, and legitimate activity, and to ensure that suitable and
qualified persons operate sports betting venues, it is necessary that
this act take effect immediately.