BILL ANALYSIS Ó
-----------------------------------------------------------------
|SENATE RULES COMMITTEE | SB 601|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
-----------------------------------------------------------------
THIRD READING
Bill No: SB 601
Author: Yee (D)
Amended: 1/6/14
Vote: 21
SENATE GOVERNMENTAL ORGANIZATION COMMITTEE : 6-0, 1/14/14
AYES: Berryhill, Cannella, Hernandez, Lieu, Padilla, Torres
NO VOTE RECORDED: Wright, Correa, De León, Galgiani, Vacancy
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SUBJECT : Gambling policy
SOURCE : Author
DIGEST : This bill directs the California Gambling Control
Commission (CGCC) to establish a Gaming Policy Advisory
Committee (Committee) and appoint five representatives of
controlled gambling licensees and five members of the general
public to the Committee.
ANALYSIS :
Existing law:
1.The Gambling Control Act provides for the licensure and
regulation of various legalized gambling activities and
establishments by the CGCC and the investigation and
enforcement of those activities and establishments by the
Department of Justice.
CONTINUED
SB 601
Page
2
2.Requires the CGCC to establish and appoint a Gaming Policy
Advisory Committee of 10 members, composed of representatives
of controlled gambling licensees and members of the general
public in equal numbers. The Committee is convened
periodically to discuss matters of controlled gambling
regulatory policy and other relevant gambling-related issues.
3.Requires that, to the extent appropriate, regulations of the
CGCC take into consideration the operational differences of
large and small gambling establishments.
This bill:
1.Directs the CGCC to establish a Committee and appoint five
representatives of controlled gambling licensees and five
members of the general public to the Committee.
2.Directs the Senate Rules Committee and the Speaker of the
Assembly to each appoint one additional person employed by the
Legislature to serve as ex officio members of the Committee.
3.Instructs the executive director of the CGCC to convene the
Committee from time to time to discuss matters of controlled
gambling regulatory policy and any other relevant
gambling-related issues, including, but not limited to, the
following:
A. The extent to which the regulation of permitted games,
game procedures, and gambling expansion impedes the
economic growth of the gambling sector in California.
B. Impacts of the above gaming regulatory policy on state
and local tax and fee proceeds.
C. The impact of new technologies on gambling.
1.Requires the CGCC, when appropriate, to take into
consideration specified fiscal and economic impacts when
adopting regulations.
2.Makes various legislative findings and declarations, noting
among other things that many states are currently examining
their laws governing gambling and are expanding gambling in
CONTINUED
SB 601
Page
3
their states to compete with other states that permit more
expansive gambling and a greater variety of legalized games.
The findings also note that this competition has an economic
impact beyond gambling, including, reduced revenues from
tourism and entertainment and state and local tax proceeds.
3.Repeals a statute requiring the CGCC to investigate various
matters, including the consequences, benefits, and
disadvantages of imposing a state tax on revenue generated by
licensed gambling establishments, and report its findings to
the Legislature and the Governor no later than January 1,
2005.
Comments
According to the author's office, this bill is intended to
encourage consideration of the economic and fiscal impact of
gambling regulation by the State of California so that the state
can compete more effectively with other states for increased
revenues and tax proceeds.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 1/22/14)
Sutter's Place, Inc. (dba Bay 101)
OPPOSITION : (Verified 1/22/14)
California Coalition Against Gambling Expansion
ARGUMENTS IN SUPPORT : Supporters believe that this bill takes
important steps to encourage state policies, laws and
regulations concerning card clubs that will support job creation
and increase economic activity.
ARGUMENTS IN OPPOSITION : The opposition states, "SB 601
provides instruction to the Advisory Committee as to what they
should be studying and reporting to the Commission vis-a-vis
gambling regulations. Unfortunately, the only thing they are
supposed to look at is the negative impacts of such to the
gambling industry, itself, without any real concern for
California taxpayers and communities. SB 601 should be amended
CONTINUED
SB 601
Page
4
to require a balanced look at the laws and regulations governing
gambling, including not only their impeding effect on
the industry, but the social and economic costs inevitably
related to gambling expansion among California families and
communities (e.g., increased debts, foreclosures and
bankruptcies, divorces, suicides, etc.)."
MW:nl 1/22/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
**** END ****
CONTINUED