BILL NUMBER: AB 364 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 30, 2015
INTRODUCED BY Assembly Member Gipson
FEBRUARY 17, 2015
An act to amend Section 326.5 19596.2
of the Penal Business and Professions
Code, relating to gambling.
LEGISLATIVE COUNSEL'S DIGEST
AB 364, as amended, Gipson. Gambling: charity bingo.
Horse racing: out-of-state thoroughbred races: Belmont
Derby Invitational.
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.
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.
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.
This bill would increase the amount described above from $500 to
$1,000.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 19596.2 of the
Business and Professions Code is amended to read:
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 World Cup, the Arkansas
Derby, the Apple Blossom Handicap, the Belmont Derby
Invitational, 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 County or Sacramento Counties.
County.
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 23701
l 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.