Amended in Senate January 6, 2014

Senate Bill No. 601

Introduced by Senator Yee

February 22, 2013

An act to begin delete add and repeal Section 19803.5 of end delete begin insert amend Sections 19817 and 19840 of, and to repeal Section 19818 of, end insert the Business and Professions Code, relating to gaming.

LEGISLATIVE COUNSEL’S DIGEST

SB 601, as amended, Yee. Gambling begin delete activities and establishments. end delete begin insert policy. end insert

The Gambling Control Act provides for the licensure and regulation of various legalized gambling activities and establishments by the California Gambling Control Commission and the investigation and enforcement of those activities and establishments by the Department of Justice. begin delete Existing law declares the intent of the Legislature in enacting the act, to provide uniform, minimum standards of regulation of permissible gambling activities and the operation of lawful gambling establishments. end delete

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This bill would require the Legislative Analyst to conduct an economic study to be submitted to the Legislature no later than December 1, 2014, analyzing the economic impact of all California laws and regulations on gambling establishments and the state’s economy, as specified. The bill would authorize the Legislative Analyst to submit a claim to the Controller for its expenses associated with the study, to be paid from the Gambling Control Fund upon appropriation of the Legislature.

end delete begin insert

Existing law requires the commission to establish and appoint a Gaming Policy Advisory Committee of 10 members. Existing law requires the committee to be composed of representatives of controlled gambling licensees and members of the general public in equal numbers. Existing law requires the committee to be convened to discuss matters of controlled gambling regulatory policy and any other relevant gambling-related issue.

end insert begin insert

This bill would instead provide that the commission shall appoint 5 representatives of controlled gambling licensees and 5 members of the general public to the committee. The bill would also provide that the Senate Committee on Rules and the Speaker of the Assembly shall each appoint one additional person employed by the Legislature to serve as ex officio members of the committee. The bill would include, among the issues that may be discussed by the committee, the extent to which the regulation of permitted games, game procedures, and gambling expansion impedes the economic growth of the gambling sector in California, the impact of those regulations on state and local tax and fee proceeds, and the impact of new technologies on gambling.

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Existing law requires the commission to investigate the consequences, benefits, and disadvantages of imposing a state tax on revenue generated by gambling establishments and the regulation of advertising for the purpose of limiting exposure of children to materials promoting gambling. Existing law requires the commission to report its findings on these matters to the Legislature and the Governor, as specified.

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This bill would repeal these provisions.

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Existing law authorizes the commission to adopt regulations for the administration and enforcement of the act. Existing law requires that, to the extent appropriate, regulations of the commission and the department take into consideration the operational differences of large and small establishments.

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This bill would additionally require the consideration of any fiscal and economic impact that may result from these provisions.

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Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

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

SECTION 1.  

The Legislature finds and declares all of the
following:

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(1)

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begin insert (a) end insert  Many states are currently examining their laws governing
gambling and, as a result of that examination, are expanding
gambling in their states to compete with other states that permit
more expansive gambling and a greater variety of legalized games.

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(2)

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begin insert (b) end insert  California gambling establishments and tribes compete with
gambling establishments in many states for gambling revenues.
This competition has an economic impact beyond gambling,
including, but not limited to, reduced revenues from tourism and
entertainment and state and local tax proceeds.

begin delete

(3)

end delete

begin insert (c) end insert  Laws and regulations governing gambling establishments
and permitted games, including, but not limited to, the Gambling
Control Act and the Penal Code, the regulations adopted pursuant
to those laws, and the enforcement of those laws and regulations
by the California Gambling Control Commission, the Department
of Justice, and local governments, have an impact on California’s
potential to compete for additional revenues and tax proceeds.

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 19817 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

19817.  

begin insert (a) end insert begin insert   end insert The commission shall establish begin delete and appoint end delete a
Gaming Policy Advisory Committee begin delete of 10 members end delete . The
begin delete committee shall be composed of end delete begin insert commission shall appoint five end insert
representatives of controlled gambling licensees and begin insert five end insert members
of the general public begin delete in equal numbers end delete begin insert end insert begin insert to the committee end insert . begin insert The Senate
Committee on Rules and the Speaker of the Assembly shall each
appoint one additional person employed by the Legislature to serve
as ex officio members of the committee. end insert begin delete The end delete

begin insert (b) end insert begin insert   end insert begin insert The end insert executive director shall, from time to time, convene the
committee for the purpose of discussing matters of controlled
gambling regulatory policy and any other relevant gambling-related
begin delete issue. The end delete begin insert issues, including, but not limited to, the following: end insert

begin insert

(1) The extent to which the regulation of permitted games, game
procedures, and gambling expansion impedes the economic growth
of the gambling sector in California.

end insert begin insert

(2) The impact of the regulation described in paragraph (1) on
state and local tax and fee proceeds.

end insert begin insert

(3) The impact of new technologies on gambling.

end insert

begin insert (c) end insert begin insert   end insert begin insert The end insert recommendations concerning gambling policy made by
the committee shall be presented to the commission, but shall be
deemed advisory and not binding on the commission in the
performance of its duties or functions. The committee begin delete may end delete begin insert shall end insert
not advise the commission on Indian gaming.

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SEC. 2.  

Section 19803.5 is added to the Business and
Professions Code, to read:

19803.5.  

(a) The Legislative Analyst shall conduct an
economic study to be submitted to the Legislature no later than
December 1, 2014, analyzing the economic impact of all California
laws and regulations on gambling establishments and the state’s
economy. At a minimum, the study shall examine the extent to
which the regulation of permitted games and games procedures
and the regulation of the expansion of gaming impedes economic
growth in this sector of the California economy and state and local
tax and fee proceeds. Upon submission of this study to the
Legislature, the Legislative Analyst may submit a claim to the
Controller for its expenses associated with the study. The Controller
may pay those expenses from the Gambling Control Fund upon
appropriation by the Legislature.

(b) A report to be submitted pursuant to this section shall be
submitted in compliance with Section 9795 of the Government
Code.

(c) Pursuant to Section 10231.5 of the Government Code, this
section is repealed on December 31, 2015.

end delete

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 19818 of the end insert begin insert Business and Professions Code end insert
begin insert is repealed. end insert

begin delete

19818.  

(a) The commission shall investigate the following
matters:

(1) The consequences, benefits, and disadvantages of imposing
a state tax on revenue generated by licensed gambling
establishments.

(2) Regulation of advertising for the purpose of limiting
exposure of children to materials promoting gambling.

(b) The commission shall report its findings to the Legislature
and the Governor no later than January 1, 2005.

end delete

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 19840 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

19840.  

The commission may adopt regulations for the
administration and enforcement of this chapter. To the extent
appropriate, regulations of the commission and the department
shall take into consideration the operational differences of large
and small establishments begin insert and any fiscal and economic impact that
may result end insert .