BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 356
                                                                  Page  1

          Date of Hearing:   August 14, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                      SB 356 (Yee) - As Amended:  June 19, 2013 

          Policy Committee:                             Governmental  
          Organization Vote:                            12 - 0 

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill under certain circumstances removes the prohibition  
          against obtaining a gambling license in California if the  
          person, partner, officer, director or shareholder has a  
          financial interest in an organization engaged in a prohibited  
          form of gambling either in or out of the state. Specifically,  
          this bill: 

          1)Allows a person or entity with a financial interest in a  
            foreign gambling operation to retain a gambling license if  
            that person or entity has been licensed in good standing as an  
            owner for at least five years as of January 1, 2013.

          2)Requires the person to notify the Gambling Control Commission  
            (GCC) and the Department of Justice (DOJ) and receive GCC  
            approval. 

           FISCAL EFFECT  

          Annual costs in excess of $1 million for DOJ to conduct  
          additional background investigations into owners, shareholders,  
          and investors in order to approve an individual with holdings in  
          a foreign gambling operation. 

           COMMENTS  

           1)Purpose  . This measure is intended to allow an individual  
            holding a California gambling license to have a financial  
            interest in other forms of gambling that are legal in other  
            countries but prohibited in California. Therefore, owners of  
            licensed card clubs in this state will no longer be precluded  








                                                                  SB 356
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            from having a financial relationship with gambling  
            establishments in other countries.

           2)Related Legislation  . In 2006, SB 175 (Vincent) would have  
            deemed an applicant suitable to hold a state gambling license,  
            notwithstanding the fact that the applicant has a financial  
            interest in another business that conducts lawful gambling  
            outside the state that may violate California law if it were  
            conducted in California. That bill was held on this  
            committee's Suspense File. 


           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916)  
          319-2081