Amended in Assembly April 30, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 364

Introduced by Assembly Member Gipson

February 17, 2015

An act to amend Section begin delete 326.5 end delete begin insert 19596.2 end insert of the begin delete Penal end delete begin insert Business and Professions end insert Code, relating to gambling.

LEGISLATIVE COUNSEL’S DIGEST

AB 364, as amended, Gipson. begin delete Gambling: charity bingo. end delete begin insert Horse racing: out-of-state thoroughbred races: Belmont Derby Invitational. end insert

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The Horse Racing Law authorizes a thoroughbred racing association or fair to distribute the audiovisual signal and accept wagers on the results of out-of-state thoroughbred races conducted in the United States during the calendar period the association or fair is conducting a race meeting, including days on which there is no live racing being conducted by the association or fair, without the consent of the organization that represents horsemen and horsewomen participating in the race meeting and without regard to the amount of purses. Under that law, the total number of thoroughbred races imported by associations or fairs on a statewide basis under these provisions are required to not exceed 50 per day on days when live thoroughbred or fair racing is being conducted in the state, with the exception of prescribed races, including races imported that are part of the race card of the Kentucky Derby, the Kentucky Oaks, the Preakness Stakes, the Belmont Stakes, the Jockey Club Gold Cup, the Travers Stakes, the Arlington Million, the Breeders’ Cup, the Dubai World Cup, the Arkansas Derby, the Apple Blossom Handicap, or the Haskell Invitational.

end insert begin insert

This bill would also exempt from the 50 imported race-per-day limitation, races imported that are part of the race card of the Belmont Derby Invitational.

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The California Constitution authorizes the Legislature, by statute, to authorize cities and counties to provide for bingo games for charitable purposes. Existing law permits a city, county, or city and county to allow bingo, as defined, to be conducted by specified organizations for charitable purposes pursuant to an ordinance that allows those games to be conducted only in accordance with specified requirements. Existing law prohibits the total value of prizes available to be awarded during the conduct of those games from exceeding $500 in cash or kind, or both, for each separate game that is held.

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This bill would increase the amount described above from $500 to $1,000.

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

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

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 19596.2 of the end insert begin insert Business and Professions
Code end insert begin insert is amended to read: end insert

19596.2.  

(a) Notwithstanding any other law and except as
provided in Section 19596.4, a thoroughbred racing association
or fair may distribute the audiovisual signal and accept wagers on
the results of out-of-state thoroughbred races conducted in the
United States during the calendar period the association or fair is
conducting a race meeting, including days on which there is no
live racing being conducted by the association or fair, without the
consent of the organization that represents horsemen and
horsewomen participating in the race meeting and without regard
to the amount of purses. Further, the total number of thoroughbred
races imported by associations or fairs on a statewide basis under
this section shall not exceed 50 per day on days when live
thoroughbred or fair racing is being conducted in the state. The
limitation of 50 imported races per day does not apply to any of
the following:

(1) Races imported for wagering purposes pursuant to
subdivision (c).

(2) Races imported that are part of the race card of the Kentucky
Derby, the Kentucky Oaks, the Preakness Stakes, the Belmont
Stakes, the Jockey Club Gold Cup, the Travers Stakes, the
Arlington Million, the Breeders’ Cup, the Dubai begin insert World end insert Cup, the
Arkansas Derby, the Apple Blossom Handicap, begin insert the Belmont Derby
Invitational, end insert or the Haskell Invitational.

(3) Races imported into the northern zone when there is no live
thoroughbred or fair racing being conducted in the northern zone.

(4) Races imported into the combined central and southern zones
when there is no live thoroughbred or fair racing being conducted
in the combined central and southern zones.

(b) Any thoroughbred association or fair accepting wagers
pursuant to subdivision (a) shall conduct the wagering in
accordance with the applicable provisions of Sections 19601,
19616, 19616.1, and 19616.2.

(c) No thoroughbred association or fair may accept wagers
pursuant to this section on out-of-state races commencing after 7
p.m., Pacific standard time, without the consent of the harness or
quarter horse racing association that is then conducting a live racing
meeting in Orange begin insert County end insert or Sacramento begin delete Counties. end delete begin insert County. end insert

begin delete

SECTION 1.  

Section 326.5 of the Penal Code is amended to
read:

326.5.  

(a) Neither the prohibition on gambling in this chapter
nor in Chapter 10 (commencing with Section 330) applies to any
bingo game that meets all of the following conditions:

(1) It is conducted in a city, county, or city and county pursuant
to an ordinance enacted under Section 19 of Article IV of the State
Constitution, if the ordinance allows games to be conducted only
in accordance with this section and only by organizations exempted
from the payment of the bank and corporation tax by Sections
23701a, 23701b, 23701d, 23701e, 23701f, 23701g, 23701k,
23701w, and 23701l of the Revenue and Taxation Code.

(2) It is conducted by a mobilehome park association, senior
citizens organization, or charitable organization affiliated with a
school district.

(3) The receipts of the bingo game are used only for charitable
purposes.

(b) It is a misdemeanor for a person to receive or pay a profit,
wage, or salary from any bingo game authorized by Section 19 of
Article IV of the California Constitution. Security personnel
employed by the organization conducting the bingo game may be
paid from the revenues of bingo games, as provided in subdivisions
(j) and (k).

(c) A violation of subdivision (b) shall be punishable by a fine
not to exceed ten thousand dollars ($10,000), which fine is
deposited in the general fund of the city, county, or city and county
that enacted the ordinance authorizing the bingo game. A violation
of any provision of this section, other than subdivision (b), is a
misdemeanor.

(d) The city, county, or city and county that enacted the
ordinance authorizing the bingo game may bring an action to enjoin
a violation of this section.

(e) Minors shall not be allowed to participate in any bingo game.

(f) An organization authorized to conduct bingo games pursuant
to subdivision (a) shall conduct a bingo game only on property
owned or leased by it, or property whose use is donated to the
organization, and which property is used by that organization for
an office or for performance of the purposes for which the
organization is organized. This subdivision does not require that
the property owned or leased by, or whose use is donated to, the
organization be used or leased exclusively by, or donated
exclusively to, that organization.

(g) A bingo game shall be open to the public, not just to the
members of the authorized organization.

(h) A bingo game shall be operated and staffed only by members
of the authorized organization that organized it. Those members
shall not receive a profit, wage, or salary from a bingo game. Only
the organization authorized to conduct a bingo game shall operate
the bingo game, or participate in the promotion, supervision, or
any other phase of a bingo game. This subdivision does not
preclude the employment of security personnel who are not
members of the authorized organization at a bingo game by the
organization conducting the game.

(i) An individual, corporation, partnership, or other legal entity,
except the organization authorized to conduct a bingo game, shall
not hold a financial interest in the conduct of a bingo game.

(j) With respect to organizations exempt from payment of the
bank and corporation tax by Section 23701d of the Revenue and
Taxation Code, all profits derived from a bingo game shall be kept
in a special fund or account and shall not be commingled with any
other fund or account. Those profits shall be used only for
charitable purposes.

(k) With respect to other organizations authorized to conduct
bingo games pursuant to this section, all proceeds derived from a
bingo game shall be kept in a special fund or account and shall not
be commingled with any other fund or account. Proceeds are the
receipts of bingo games conducted by organizations not within
subdivision (j). Those proceeds shall be used only for charitable
purposes, except as follows:

(1) The proceeds may be used for prizes.

(2) (A) Except as provided in subparagraph (B), a portion of
the proceeds, not to exceed 20 percent of the proceeds before the
deduction for prizes, or two thousand dollars ($2,000) per month,
whichever is less, may be used for the rental of property and for
overhead, including the purchase of bingo equipment,
administrative expenses, security equipment, and security
personnel.

(B) For the purposes of bingo games conducted by the Lake
Elsinore Elks Lodge, a portion of the proceeds, not to exceed 20
percent of the proceeds before the deduction for prizes, or three
thousand dollars ($3,000) per month, whichever is less, may be
used for the rental of property and for overhead, including the
purchase of bingo equipment, administrative expenses, security
equipment, and security personnel. Any amount of the proceeds
that is additional to that permitted under subparagraph (A), up to
one thousand dollars ($1,000), shall be used for the purpose of
financing the rebuilding of the facility and the replacement of
equipment that was destroyed by fire in 2007. The exception to
subparagraph (A) that is provided by this subparagraph shall remain
in effect only until the cost of rebuilding the facility is repaid, or
January 1, 2019, whichever occurs first.

(3) The proceeds may be used to pay license fees.

(4) A city, county, or city and county that enacts an ordinance
permitting bingo games may specify in the ordinance that if the
monthly gross receipts from bingo games of an organization within
this subdivision exceed five thousand dollars ($5,000), a minimum
percentage of the proceeds shall be used only for charitable
purposes not relating to the conducting of bingo games and that
the balance shall be used for prizes, rental of property, overhead,
administrative expenses, and payment of license fees. The amount
of proceeds used for rental of property, overhead, and
administrative expenses is subject to the limitations specified in
paragraph (2).

(l) (1) A city, county, or city and county may impose a license
fee on each organization that it authorizes to conduct bingo games.
The fee, whether for the initial license or renewal, shall not exceed
fifty dollars ($50) annually, except as provided in paragraph (2).
If an application for a license is denied, one-half of any license
fee paid shall be refunded to the organization.

(2) In lieu of the license fee permitted under paragraph (1), a
city, county, or city and county may impose a license fee of fifty
dollars ($50) paid upon application. If an application for a license
is denied, one-half of the application fee shall be refunded to the
organization. An additional fee for law enforcement and public
safety costs incurred by the city, county, or city and county that
are directly related to bingo activities may be imposed and shall
be collected monthly by the city, county, or city and county issuing
the license. However, the fee shall not exceed the actual costs
incurred in providing the service.

(m) A person shall not be allowed to participate in a bingo game,
unless the person is physically present at the time and place where
the bingo game is being conducted.

(n) The total value of prizes available to be awarded during the
conduct of any bingo games shall not exceed one thousand dollars
($1,000) in cash or kind, or both, for each separate game that is
held.

(o) As used in this section, “bingo” means a game of chance in
which prizes are awarded on the basis of designated numbers or
symbols that are marked or covered by the player on a tangible
card in the player’s possession and that conform to numbers or
symbols, selected at random and announced by a live caller.
Notwithstanding Section 330c, as used in this section, the game
of bingo includes tangible cards having numbers or symbols that
are concealed and preprinted in a manner providing for distribution
of prizes. Electronics or video displays shall not be used in
connection with the game of bingo, except in connection with the
caller’s drawing of numbers or symbols and the public display of
that drawing, and except as provided in subdivision (p). The
winning cards shall not be known prior to the game by any person
participating in the playing or operation of the bingo game. All
preprinted cards shall bear the legend, “for sale or use only in a
bingo game authorized under California law and pursuant to local
ordinance.” Only a covered or marked tangible card possessed by
a player and presented to an attendant may be used to claim a prize.
It is the intention of the Legislature that bingo as defined in this
subdivision applies exclusively to this section and shall not be
applied in the construction or enforcement of any other law.

(p) (1) Players who are physically present at a bingo game may
use hand-held, portable card-minding devices, as described in this
subdivision, to assist in monitoring the numbers or symbols
announced by a live caller as those numbers or symbols are called
in a live game. Card-minding devices may not be used in
connection with any game where a bingo card may be sold or
distributed after the start of the ball draw for that game. A
card-minding device shall do all of the following:

(A) Be capable of storing in the memory of the device bingo
faces of tangible cards purchased by a player.

(B) Provide a means for bingo players to input manually each
individual number or symbol announced by a live caller.

(C) Compare the numbers or symbols entered by the player to
the bingo faces previously stored in the memory of the device.

(D) Identify winning bingo patterns that exist on the stored
bingo faces.

(2) A card-minding device shall not perform functions involving
the play of the game other than those described in paragraph (1).
Card-minding devices shall not do any of the following:

(A) Be capable of accepting or dispensing any coins, currency,
or other representative of value or on which value has been
encoded.

(B) Be capable of monitoring any bingo card face other than
the faces of the tangible bingo card or cards purchased by the
player for that game.

(C) Display or represent the game result through any means,
including, but not limited to, video or mechanical reels or other
slot machine or casino game themes, other than highlighting the
winning numbers or symbols marked or covered on the tangible
bingo cards or giving an audio alert that the player’s card has a
prize-winning pattern.

(D) Determine the outcome of any game or be physically or
electronically connected to any component that determines the
outcome of a game or to any other bingo equipment, including,
but not limited to, the ball call station, or to any other card-minding
device. Other player-operated or player-activated electronic or
electromechanical devices or equipment are not permitted to be
used in connection with a bingo game.

(3) (A) A card-minding device shall be approved in advance
by the department as meeting the requirements of this section and
any additional requirements stated in regulations adopted by the
department. Any proposed material change to the device, including
a change to the software used by the device, shall be submitted to
the department and approved by the department prior to
implementation.

(B) In accordance with Chapter 5 (commencing with Section
19800) of Division 8 of the Business and Professions Code, the
commission shall establish reasonable criteria for, and require the
licensure of, a person that directly or indirectly manufactures,
distributes, supplies, vends, leases, or otherwise provides
card-minding devices or other supplies, equipment, or services
related to card-minding devices designed for use in the playing of
bingo games by a nonprofit organization.

(C) A person or entity that supplies or services a card-minding
device shall meet all licensing requirements established by the
commission in regulations.

(4) The costs of any testing, certification, license, or
determination required by this subdivision shall be borne by the
person or entity seeking it.

(5) On and after January 1, 2010, the Department of Justice may
inspect all card-minding devices at any time without notice, and
may immediately prohibit the use of a device that does not comply
with the requirements established by the department in regulations.
The Department of Justice may at any time, without notice,
impound a device the use of which has been prohibited by the
commission.

(6) The Department of Justice shall issue regulations to
implement the requirements of this subdivision, and the California
Gambling Control Commission may issue regulations regarding
the means by which the operator of a bingo game, as required by
applicable law, may offer assistance to a player with disabilities
in order to enable that player to participate in a bingo game.
However, the means of providing that assistance shall not be
through an electronic, electromechanical, or other device or
equipment that accepts the insertion of a coin, currency, token,
credit card, or other means of transmitting value, and that does not
constitute, or is not a part of a system that constitutes, a video
lottery terminal, slot machine, or device prohibited by Chapter 10
(commencing with Section 330).

(7) The following definitions apply for purposes of this
subdivision:

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

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

(C) “Person” includes a natural person, corporation, limited
liability company, partnership, trust, joint venture, association, or
other business organization.

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