BILL ANALYSIS Ó SB 472 Page 1 Date of Hearing: August 21, 2013 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mike Gatto, Chair SB 472 (Hill) - As Amended: August 5, 2013 Policy Committee: Governmental Organization Vote: 15 - 0 Urgency: No State Mandated Local Program: Yes Reimbursable: No SUMMARY This bill creates a three-year licensing exemption for the owners of the card room located at Hollywood Park Racetrack by authorizing the California Gambling Control Commission (GCC) to exempt specified limited partners in limited partnerships from specified licensing requirements. FISCAL EFFECT Costs associated with this legislation should be minor and absorbable within existing GCC resources. COMMENTS Background and Purpose . The Hollywood Park Racetrack and Card Club is owned by a group of public pension plan investors. Some of those same public pension plans also own a share of the currently closed Sahara Hotel in Las Vegas, which is undergoing capital improvements and remodeling. Current law exempts the actual pension plans from being licensed as card club owners, provided that the card clubs are located at an "operating" racetrack. However, current law also prevents an entity owning a card club in California from also owning an interest in a gambling facility that operates gaming that is prohibited in California. The original purchase of the Sahara Hotel by the pension plans was made under the assumption at that time, that leasing out the gaming casino at both the card club at Hollywood Park and the Sahara Hotel would avoid the prohibition referenced above. This SB 472 Page 2 assumption was found to be incorrect as it is not allowed under current law. This bill provides a three-year licensing exemption for the owners of the card club which is intended to allow them time to divest from their Sahara Hotel investments or the card club investments. Analysis Prepared by : Julie Salley-Gray / APPR. / (916) 319-2081